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City Council Meeting - Council - Agenda - 05/04/2004
mmwr�Tdi :l 16k I City of Kent City Council Meeting Agenda May 4, 2004 Mayor Jim White Julie Peterson, Council President Councilmembers Tim Clark Debbie Raplee Ron Harmon Les Thomas Bruce White Deborah Ranniger KEN T WASHINGTON City Clerk's Office SUMMARY AGENDA KENT CITY COUNCIL MEETING KENT May 4, 2004 W.S H I N G T O N Council Chambers 7.00 p.m. MAYOR Jim White COUNCILMEMBERS Julie Peterson, President Tim Clark Ron Harmon Deborah Ranmger Debbie Raplee Les Thomas Bruce White 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 Legislative Delegation Recognition B. Drinking Driver Task Force Poster Design Contest Award Ceremony C Employee of the Month Presentation D Proclamation—Letter Carver's Food Drive Day 5 PUBLIC HEARINGS None 6 CONSENT CALENDAR A Minutes of Previous Meeting —Approve B. Payment of Bills —Approve C. Locust Lane/Canterbury Glen lVx4,structure Improvements Bill of Sale —Accept D. 145th Place SE Street Vacation Re lution Setting Hearing Date —Adopt E 228th Street Extension Property Acquisition—Approve F. Repeal 1997 Charge in Lieu of Assessment and Authorize New Charge in Lieu of Assessment for the 272nd Corridor Interceptor Sewer—Authorize G. Autumn Glen Sanitary Sewer Latecomer Reimbursement Agreement—Authorize H. 3rd Avenue and Washington Avenue Pump Stations—Accept as Complete I. "Reduce Underage Drinking" Grant Amendment—Accept and Amend Budget J Washington Traffic Safety Commission Grant for Overtime Funding—Accept and Amend Budget K King County Office of Emergency Management and Program Development Contractor—Accept, Amend Budget and Authorize Hiring L Premera Blue Cross Administrative Service Contract for 2004 —Authorize M. King County Housing Authority Amendment to Housing Cooperation Agreement Regarding Harrison House Capital Improvements— Authorize N. Taxable Refundin of the Outstanding Unlimited Tax Housing Bond Ord ce— Adopt 3(p 8 O Western States Arts Federation Grant for Community Participation Pilot Project— Accept P King Conservation District Grant for Canterbury Park—Accept and Amend Budget (continued next page) SUMMARY AGENDA CONTINUED Q. First Quarter Fee in Lieu of Funds from the Christopher Ridge Subdivision— Accept and Authorize Expenditure R 2004 Interlocal Agreement for Waterfowl Management—Authorize S. Interagency Committee Grant Application(& lutions—Adopt j&.0 .7 4 T. Redistribution of 1996-2001 Working Together Federal Drug Elimination Grant Funds—Authorize U. Countywide Planning Policies, Auburn As Urban Center, Amendment Res upon—Adopt C U 1 5 V. emational Building and Fire Codes Ord nances an Res lution Setting Fees— Adopt 3ba 0�` 1 7. OTHER BUSINESS x A Impoundment Reservoir Property, Amendment to Purchase and Sale Agreement— Authorize B. East Hill Skate Park—Update 8. BIDS A Horseshoe Acres Storm Water Pump Station Engine Replacement—Award B S. 228th St. Corridor Grade and Fill—Authorize 9 REPORTS FROM STANDING COMMITTEES AND STAFF • 10 REPORTS FROM SPECIAL COMMITTEES 11 CONTINUED COMMUNICATIONS 12. EXECUTIVE SESSION 13 ACTION AFTER EXECUTIVE SESSION 14 ADJOURNMENT NOTE: A copy of the full agenda packet is available for perusal in the City Clerk's Office and the Kent Library The Agenda Summary page is on the City of Kent web site at www.ci.kent.wa us 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) LEGISLATIVE DELEGATION RECCOGNITION j E'er c `ti v Ej ` c� y B) DRINKING DRIVER TASK FORCE POSTER DESIGN CONTEST AWARD CEREMONY C) EMPLOYEE OF THE MONTH • D) PROCLAMATION- LETTER CARRIER'S FOOD DRIVE DAY A)y V � � CONSENT CALENDAR 6. City Council Action: //- Councilmember ¢ tin moves, Councilmember (e� Cyii►�— seconds to approve Consent Calendar Items A through V. (-0 Discussion Action 6A. Approval of Minutes. Approval of the minutes of the regular Council meeting of April 20, 2004. 6B. Approval of Bills. Approval of payment of the bills received through March 31 and paid on March 31 after auditing by the Operations Committee on April 6, 2004. • Approval of checks issued for vouchers: Date Check Numbers Amount 3/31/04 Wire Transfers 16584672 $1,304,753 26 3/31/04 PrePays & 560883 466,471 53 3/31/04 Regular 561551 2,208,336 42 $3,979,561 21 Approval of payment of the bills received through April 15 and paid on April 15 after auditing by the Operations Committee on April 20, 2004. Approval of checks issued for vouchers: Date Check Numbers Amount 4/15/04 Wire Transfers 1673-1684 $1,023,343 75 4/15/04 PrePays& 561552 324,591.70 4/15/04 Regular 562256 1,022,335.62 $2,370,271 07 Approval of checks issued for payroll for March 1 through March 15 and paid on March 19, 2004: Date Check Numbers Amount • 3/19/04 Advices 161367-162024 $1,150326 87 3/19/04 Checks 275906-276179 211,28917 $ 211,289 17 6B. Approval of Bills. (Continued) Approval of checks issued for payroll for March 16 through March 31 and paid on April 5, 2004: - Date Check Numbers Amount 4/5/04 Advices 162025-162684 $1,173,14914 4/5/04 Checks 276180-276465 213,507.62 4/5/04 Intenm Check 276466 80808 $214,315 70 Approval of checks issued for payroll for April 1 through April 15 and paid on April 20, 2004: Date Check Numbers Amount 4/20/04 Advices 162685-163344 $1,175,451.68 4/15/04 Intenm Check 276467 2976 4/20/04 Checks 276468-276748 216,275 44 $ 216,305 20 • Council Agenda Item No. 6 A-B • KEN T Kent City Council Meeting WASHINGTON April 20, 2004 The regular meeting of the Kent City Council was called to order at 7:00 p.m. by Mayor Pro Tern Clark. Councilmembers present: Harmon,RannigeT, Raplee,Thomas and White. Council President Peterson was excused from the meeting (CFN-198) CHANGES TO AGENDA A. From Council. (CFN-198) Mayor Pro Tem Clark added Public Communications Item A and Consent Calendar Item N B. From the Public. (CFN-198) Continued Communications Item A was added at the request of Officer Rob Scholl Bob O'Brien, Joe Rubio and Ted Kogita asked to speak about Kent Station and did so under Other Business. PUBLIC COMMUNICATIONS ADDED ITEM A. Comprehensive Annual Financial Report. (CFN-104) Finance Director Nachlinger presented the Comprehensive Annual Financial Report award to Paula Barry, who created the report. B. Economic Development Update. (CFN-198) Torgelson gave a bnef overview of economic development, including progress on Kent Station. CONSENT CALENDAR WHITE MOVED to approve Consent Calendar Items A through N Thomas seconded and the motion Gamed. A Approval of Minutes. (CFN-198) The minutes of the regular Council meeting of April 6, 2004 were approved. B Approval of Bills. (CFN-104) No bills were approved at the Operations Committee meeting of April 6, 2004. C. Star Meadow Final Plat. (CFN-1272) The Star Meadow Final Plat was approved and the Mayor was authorized to sign the final plat mylar D. Impoundment Reservoir Comprehensive Plan and Initial Zoning Ordinances. (CFN-745) Ordinance No. 3685 was adopted, which establishes the Impoundment Reservoir Annexation Area comprehensive plan designations of Urban Separator(US) and Single Family, 3 units per acre (SF-3), and zoning designations of Single Family Residential, 1 unit per acre (SR-1) and Single Family Residential, 3.63 (SR-3) E. Disposal of Surplus Vehicles and Equipment. (CFN-136) The equipment and vehicles no longer needed by the City were declared as surplus and staff was authorized to appropriately dispose of the equipment as described and listed in Public Works Director's memo of March 9, 2004 1 Kent City Council Minutes April 20, 2004 F. Condemnation Ordinance for Upper Meridian Valley Creek Improvements Project. (CFN-470) Ordinance No. 3686 was adopted,providing for condemnation of property rights for a portion of three(3)parcels of real property located northeast of the intersection of Southeast 240th Street and 132nd Avenue Southeast as are necessary for reconstruction of a storm drainage culvert for the Upper Meridian Valley Creek Improvement Project. The ordinance also provides for payment to be made out of the Upper Meridian Valley Creek Improvement Project fund, and authorizes the city attorney to prosecute the appropriate legal proceedings, and enter into settlements, stipulations, or other agreements. G. Pacific Highway High Occupancy Vehicle Lanes Agreement with Metro for Construction of Bus Shelter Pads. (CFN-1038) The Mayor was authorized to sign the agreement for right-of- way acquisition and construction of the bus shelter pads, and authorize staff to accept the funds and establish a budget for the funds to be spent within the road improvement project, subject to final modification by the City Attorney and Public Works Director. H. Ordinance Relating to Abolition of Independent Salary Commission. (CFN-1274) Ordinance No. 3687 was adopted, repealing Ch 2.58 of the Kent City Code, entitled"Independent Salary Commission," and amending Chs. 2.01, 2.02, and 2.34 of the Kent City Code relating to the salaries of the Mayor, City Councilmembers, and Municipal Court Judges I. Local and Long Distance Telephone Services Contract Extension. (CFN-1155) The Mayor was authorized to sign a 2-year contract extension with Focal Communications for local and long distance telephone service subject to City Attorney approval of contract documents. J. Replacement of 2004 Police Mobile Data Computers. (CFN-122) The Mayor was authorized to sign purchase orders, payable to Datec Incorporated, not to exceed $65,000 for the purchase of 34 semi-ruggedized laptop computers to replace existing mobile data computers in Police vehicles. K. 2004 General Fund Budget Adiustment Ordinance Relating to Temporary Permit Processing. (CFN-186) Ordinance No. 3688 amending the 2004 budget for adjustments relating to development permit processing, was adopted. L. Resolution Recognizing Vietnamese Heritage Flag. (CFN-198) Resolution No 1667 recognizing the flag of the former Republic of Vietnam as a heritage flag of the Vietnamese- American community, was adopted M Plat of Alvin's Pond Subdivision Infrastructure Improvements Bill of Sale. (CFN-484) The Bill of Sale for Alvin's Pond Subdivision submitted by Mel L. Daley, P.E. for continuous operation and maintenance of 244 feet of watermains, 505 feet of sewers, 621 feet of street improvements, and 535 feet of storm sewer was accepted. ADDED N. Council Absence. (CFN-198) Council President Peterson was excused from tonight's meeting. 2 Kent City Council Minutes April 20, 2004 • OTHER BUSINESS B. Kent Station Purchase and Sale Agreement Amendment. (CFN-171) The Kent Station Purchase and Sale Agreement provides that if Sound Transit ever charges for-non-transit parkers in the Sounder garage after 12 noon during the term of the cinema lease, the City must either develop a voucher system where the City would be responsible for all parking fees to cinema patrons, or provide an equal number of public parking spaces within or adjacent to the Planned Action Ordinance area,which includes the Kent Station site and the Municipal Lot Block. The City proposes amending the Purchase and Sale Agreement to change the boundaries of the area in which the City can provide replacement parking by excluding the Municipal Lot block. Bob O'Brien, 1131 Seattle St., Kent, urged the Council to look at the contract further, noting that construction has not yet begun and that the amendment may result in the city constructing a parking garage. Joe Rubio, 3831 S. 248`h, Kent, said there is no demand for a movie theater and that the college will not be an anchor. Ted Kogita, 25227 Reith Road, Kent, stated that Sound Transit will soon charge for parking. Nathan Torgelson explained the City's two alternatives. He also explained that the proposed amendment would change the boundaries of the area in which the city can provide replacement parking by excluding the municipal lot block. He opined that the amendment would strengthen the agreement RANNIGER MOVED to approve and authorize the Mayor to sign the amendment to the Kent Station Purchase and Sale Agreement to change the boundaries of the replacement parking area. Harmon seconded. After a lengthy discussion, the motion carved upon a roll call • vote, with Clark, Harmon, Ranniger and Thomas in favor, and Raplee and White opposed A. Kent Station Declaration of Covenants, Conditions and Restrictions. (CFN-171) The City and Kent Station LLC have negotiated a Declaration of Covenants, Conditions and Restrictions (CC&Rs) to ensure that the property is maintained as an attractive setting for development, to protect the owners of the property against improper and undesirable uses of the property, and to ensure and encourage the construction of high quality and harmonious develop- ment and attractive improvements on the property,regardless of whom owns or develops it. Torgelson explained this legal document and noted that it is required before the City can close on the property. He added that it has no budget impact to the City. RANNIGER MOVED to approve and authorize the Mayor to sign the Covenants, Conditions and Restrictions for Kent Station and to record the same upon closing of the Initial Takedown Parcel Harmon seconded. White said it is unusual to have a government entity involved in such a document and protect one business from the competition of another Clark disagreed, noting that the City is not the developer Upon a roll call vote, the motion carried 5-1 with White opposed BIDS A. 118th Avenue SE Water Main Connection Project. (CFN-1186) The bid opening for this project was held on April 1, 2004, with 13 bids received. The low bid was submitted by Archer Construction in the amount of$391,025.13 WHITE MOVED to award the 118th Ave S E. Water Main Connection contract to Archer Construction in the amount of 5391,025.13. Hannon seconded and the motion carried. 3 Kent City Council Minutes Apn120, 2004 CONTINUED COMMUNICATIONS . ADDED A. Police Department. (CFN-122) Officer Rob Scholl, President of the Kent Police Officers Association, voiced concern about morale in the department, and expressed full confidence in Chief Crawford's ability to lead the department ADJOURNMENT The meeting adjourned at 8:00 p.m. Brenda Jacober, CMC City Clerk 4 . Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: LOCUST LANE/CANTERBURY GLEN INFRASTRUCTURE IMPROVEMENTS BILL OF SALE —ACCEPT 2. SUMMARY STATEMENT: Authorization to accept the Bill of Sale for Locust Lane/Canterbury Glen Subdivision submitted by Mel L Daley, P.E. for continuous operation and maintenance of 545 feet of sewers, 324 feet of street improvements and 1,022 feet of storm sewer. Bonds to be released after the maintenance period. This project is located at 1261' Place SE and SE 266 h Street. 3. EXHIBITS: Vicinity map i4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: • ACTION: Council Agenda Item No. 6C i SE 256TH ST SE 255 ST E sE 256TH ST 259TH �^ ST a ~� L< S 259TH ^d SE Q261ST259N m ^�� m ow SE 261ST Ui ST Ja SE 251ST SE 262ND d SF > > u > ST Cq 125TH PL SE l 25SE �2� F` SE 63RP SE 264TN ST 2Za 26a M TH S1 2 SI T N N PARK ST >SE 266 Q = n N ¢ n � S 268TH ST SE 268TH ST VICINITY MAP NTS. Locust Lane/Canterbury Glen Infrastructure 126'h Place SE and SE 266'h Street Kent City Council Meeting Date Mav 4, 2004 Category Consent Calendar 1. SUBJECT: 145TH PLACE SE STREET VACATION RESOLUTION SETTING HEARING DATE-ADOPT 2. SUMMARY STATEMENT: Adoption of Resolution No. setting the public hearing on the street vacation petition filed by Schneider Homes for a portion of 145`h Place Southeast Street for June 20, 2004 3. EXHIBITS: Resolution, Public Works Director's memorandum, vicinity map, and application 4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? No Revenue? No Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: • ACTION: Council Agenda Item No. 6D PUBLIC WORKS DEPARTMENT Don E Wickstrom, P E Public Works Director • Phone 253-856-5500 KENT Fax 253-856-6500 w A!H I N O T O N Address 220 Fourth Avenue S Kent,WA 9B032-5895 DATE: April 7, 2004 TO: Public Works Committee FROM: Don Wickstrom,Public Works Director THROUGH SUBJECT: 1451h Place S.E.—Street Vacation MOTION Recommend Council adoption of a resolution setting a public hearing date of June 15, 2004 for the Street Vacation located along a portion of 145`h Place S E SUMMARY: We have received a valid petition to vacate a portion of 145`h Place S E In accordance with state law, a public hearing must be held The Public Works Department recommends adoption of a resolution setting the public hearing date BUDGET IMPACT No Unbudgeted Fiscal/Personnel Impact BACKGROUND: By law upon receipt of a valid street vacation petition the City,via adopting a resolution is required to hold a public hearing thereon within 60 days of passage of said resolution Mayor White and Kent City Council 1 145 h Place S E —Street Vacation r .!m'�#�,. •r7.�..wy �,k!�'zgx�. 4rs•�n r�¢'�t ,�. 1+.� grs�.+ r ZZ ,9F_+ _3" -'si<$ _ - -ts• ylp, t.w: r $a"'�. `w. y ,� � 4y; '�, `r::.o � '��5 t#�i_ t .n. '� k°•'�' /^` ��a_'� R'Y + � 4 izwvll cc fur {'§ ✓ Y '�£ Xv < ' •to # X'�`�° . �' r���� - - j � .��w � lip A AM d 'M'rt Flown-May 2002 145th P L SE Proposed Street Vacation �� R�Ly �. : P w a 3 1 tb Qr- t�n� � Fij � � � Y � .t�� � �• '� aAvr dFy� •`�A� n^St� z-W ., 'r a � � nay 4�Y�� . v rV{h H_ >^.� � -fit¢� G"•�� �' `� t � � � � ''� � laZ�'�x r M� rsa !js '4��n � ' �T�^.�}F rye t •y _ ,3�'���'r�` +'$!04' 4.�Yy`� Flow,) Alay 'Eb 4 ink - �?��~ .• � �= b Z Pry �`��'t �` h A©sed t SE Street Vacation RESOLUTION NO. A RESOLUTION of the city of Kent,Washington, regarding the vacation of a portion of 145th Place SE in the City of Kent, and setting the public hearing on the proposed street vacation for June 15, 2004. RECITALS A. A petition, attached as Exhibit'A" has been filed by Schneider Homes, Inc, to vacate a portion of 145th Place SE in the City of Kent B The petition is signed by the owners of at least two-thirds of the real property abutting those portions of 1451h Place SE to be vacated. C The petition is in all respects proper. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS- RESOLUTION SECTION 1. A public hearing on the street vacation petition requesting the vacation of a portion of 145th Place SE, legally described in Exhibit"A,"shall be held at a regular meeting of the Kent City Council at 7.00 p.m.,Tuesday,June 15,2004,in the Council Chambers of City Hall located at 220 4th Avenue South, Kent, Washington, 98032. SECTION 2. The city clerk shall give proper notice of the hearing and cause the notice to be posted as provided by state law, Ch. 35.79 RCW. 1 Street Vacation— 145a'Place SE SECTION 3. The planning manager shall obtain any other necessary information from appropriate departments and shall transmit the information to thecouncil so that the council may consider the matter at its regularly scheduled meeting on June 15, 2004. PASSED at a regular meeting of the city council of the city of Kent, Washington this day of 2004. CONCURRED in by the mayor of the city of Kent,this day of 2004. JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM TOM BRUBAKER, CITY ATTORNEY I hereby certify that this is a true and correct copy of Resolution No passed b i p y the city council of the city of Kent,Washington,on the day of 2004 (SEAL) BRENDA JACOBER, CITY CLERK P\Ci"KRESOLUTION\STVAC-1651hPIamSE do 2 Street Vacation— 145`h Place SE l� toe �= V A` .fr.tj f•4 p w 4 to IM .yy ,cn b u - . rl 1 w Oa J' - �. �Aa BG.ea 94 69 V -ooE 932.30 th 74.4L a0 as 7C ,G +y o0 60 v 1�' >,• ySgl rr.EO2../ �'arr� 4 aa� g -��•G� �a� t :ao�Ce` .,p. - vo e4 arF ` • :.' t Aa�y+S �e .c N� m D N N D W . is O N v i?oo J_� •- i lb3i2s.+.a�x CN V pND P M Q70 DO �� •v si Y..Q 7Y. c '{ c °p 'Pp0 N BS eo BS 45 D /aa 45 41�J.` W' me (µ:.`.r• r-`r ie Y.G \ a 8�e aD rBu y p J cr N +Lri�O'• 'Tr4�� o i• w i9 D i m g Z S e IO to oS S1pp-'b• {+ ;_,• 1, m p �g D �a ��e _ s: �sisi� 4 1L •p- w •• �'m r £S VO �O N t •bcli.N., a +' % _� ..o�" a°r T. w A ♦ °p 196 `I ry yf _ �4s�- .j w may- rN%.r`-s!4 • r e+,c��I t� 4 .,� v� U _ W t• . .4 em r W `v 0 m a . W O}c•L �y`�'� G .� p�i..i 2 ` 1r p'p V1 W VP v 120 ros r n $ t A „ � N H r Yi • 4 t • G{ mm N m pn V D@ W m t �� rt • � �y -� ��r Q� N O r Qf a ✓ ybD U iHJ M y � �iA i� o!-_�'[ .vr-rE'•o i ; 4 ^'°.vc!•oout Z �6D,y.i0�y'la 6 p N�-rOuG��iO••' •-•..� `:rQk`A7° 44tiao'0` �,Y�� �� y r ;' reS.29 No0-•OOW 207 b� •�� 'e°�w m .Y •_s �• �•r 11rY 164 - 4 '' r CM U i � ECEE WE 4 eA0 � APR - 6 M KENCity f Kent Customer Services wA s H i m o s Avenue South CITY OF VENT Mayor rim White Kent, Vashi gt�5�-5695 1aVA# DEP7q: 284 MAIL TO: Street Vacation Application Fee APPLIC 150.00 150.00 ASS A� G,S6/j BB897 CITY OF I{ENT PLUA: 754 NAME:S .6r r J$11F ' Property Management Customer Information 8.88 6.08 4S/D m MiNEIDER RKS, INC S�/! 220 S.4 Avenue ADDItES Su6Tota1: 158.08 Kent, Washington 99032 Total. _ 150.00 Attn: Jerry McCaughan Check `150.00 Number : 19052 80837798/2/2 4/2/2804 13:36 Brad PHONE: Connecting for Success STREET AND/OR ALLEY VACATION APPLICATION AND P17ITION Dear Mayor and Kent City Council: We, the undersigned abutting property owners, hereby respectfully request that certainee S.&. ) hereby be vacated. Legal Description of Street/Alley Sought to be Vacated (Must Contain Total Square Feet of Area Sought To Be Vacated) BRIEF STATEII' ENT WHY VACATION IS BEING SOUGHT A`_`CURRENT"ownership and encumbrance report must be RECEIVED submitted with this application that covers all the abutting APR D 5 2094 properties contiguous to alley or street sought to be vacated. When Corporations,partnerships, etc. are being signed for, and then PRoPE�ry OF KEW proof of individual's authority to sign for same shall also be MANAGEMEf submitted. Attach a color-coded map of a scale of not less than 1"=200' of the area sought for Yac.!0�1n. (NOTE) Map must correspond with legal description. 22 , 1 �l �2- ABUTTING PROPERTY OWNERS TAX LOT# SIC4NATURES AND ADDRESSES L T BLo f CiK&DPL—AT/S;,T O G - oav / l- t 9aya Z 2 I�fS WA UA� PL. S' l� r M9 c/SG'f z r-o S EXHIBIT "A" WE APR - 6 W04 CM of KENT M CLERK LEGAL DESCRIPTION THAT PORTION Of 145th PL S.E. WITHIN THE PLAT OF LOE ESTATES DIVISION NO. 2, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 160 OF PLATS, PAGES 25 THROUGH 30, IN KING COUNTY, WASHINGTON, LYING SOUTHERLY OF THE WESTERLY PROLONGATION OF LOT 12, SAID PLAT. 6,655 SF RECEIVED APR 4 5 Z444 CITY CF KENT PROPERTY VANAGEMENT EXHIBIT "A" Page 2 of 3 MCEIVED 0 „5 1��Fj° '�9 � ti pA'-�N A Naa.as-°r , N �37 123 68 66 � !0 0 o 9 Do CO go Agoko-O e M 9s 14 -0 a " ro I9 °a 18 IOU $ = 1�it TR. A �, v $ 20GZ� q�f9� yoj6° �° 7 �y°''ZA't f 5z 68 35•la 1 ,vrMob P.coPER'j'Y '1fl � � Aa BD ryPC Ir c SE 247TH ST N 9n•Oa•aa B 336•G8 3s-I w ,os B2 pa 33. 41 14 a" 15 a 16 a 16 N 3 5a a MM zH x9 u 1-2 0 m 95a a o e l 0 6� o IS 3 k° 8°� 304 2 m Ito4� Gti t�'p� 6�Op 2 105 hG. m ,ao as � 1 pl �It 23'ID a �cc istoo 65 94 TR. B 'tr N F1 fh coMMewO/V FRQpER7j, 4 A rYP:� 4qb N C 9A6 raMrauMr[f 98' BE l/ d m TR.C a1TtNrrar J73 ex —4rao ,vo ss790 •,•, ' [H1 rs.da [ •,� f�5 ` G 2 50 9��`' , + 2 3 8 6 07 :: 60 °!�: 9!: e° N n I��f I r v• 460,,, � S0. � � D 9 yo a 0 KID a Y � �r✓� 9 + •F.. :'' z �vr �,� 10� °'� o° o� o° mq° ei°°;' ° 0� 31� rc 1 f ♦,.Ed 39 ee t ,ip •c�? ,�' .x� x4 •�. �t•• '.p ,1 R' r•c,r�rd ,ca "r1~ 0 +• y.� ��0 , oft °' �� + � � �' • � ,� Nit .• +x,r t100 rqf u '.Jri e � f�•� ' r�� '41 39 38 37 36 �,j - r1� efy+; - N' i 2' a M1 1 1 19� Dlto •,�, v�' � 3, re .c�jir` r� e �� �; w,o a �9° j1° ; 35 {• h - `� ! rtx 13 �' "r 't';+�. �Ir•j1'11E F ; . - tf. i , .v se-��• "r.��rfu . Xi 34 o!•Fd f: 1PIN TR C 10 jd.s+� y j0 a2 33 nrio) 0 ��•/T u� ' 4 l //7j 'j Q F NII.i7.J 31 ►? W . ;Z9 �0 'qu :oPFN�Patl9 {° �j;4� o M 0,�,°n o�y0 " B p 9lja;e a N rti'P � '.. 4e'tYc f� ~ ' A�� cnjls••�}1 ,��;. 1'�ryV1'°e 1 r:� � •3 �t 1 a N jr .. r 1h 3 Z'w sY,J,tee�r o;. • of Ai� �• � r 2w jw, � ; � O'�J �.•.�;: e, \i+ v rv° � '� A � r ., t P1 jt/ 26 •., h ' +c �1 . ' ite.fpl 4� .Alf t• : ,. 4 �. 11r 1� 1� Y0 i 34°�/ �; a � ' 90 ti1y,�o p� l�•�* EXHISIP FAF� Pacre 3 of '3+ DEPARTMENT OF PUBLIC WORKS p7KENT Date TO: City Clerlc FROM. Jerry McCaugha RE: Street Vacation Se Regarding subject matter, please be advised that I have reviewed same and found everything in order. Therefore I am filing the original application with you and at the same time, by copy of this memo to the Public Works Director, the process should begin. cc: Don Wickstrom V, Planning Manager✓✓ Attachment: Maps tt vacate pECE KEN Ci{y qf Kea}} p,stonier Se ices W A•N I N O T MY Of KEN1 ` Mayor Jim Wldte Kent, Vashiugtto-50A-5895 KIYA# DEPTH: E64 • MAIL TO: Street Uacat:an Application Fee APPLICAW: 15B.BB t58.B0 `" ' 88897 y , al(p/C/, CITY OF RENT Customer Dforsat:on NAME:• Property Avenue SCIMIDER WES, INC 0.86 B.BB GSG"a nn� (j —ef- 220 S.4 Avenue ADD /Jt rJ�ub 5ab1otal: 158.06 Kent, Washington 98032 Tntal; Attn: Jerry McCaughan Check 15B.B8 Number : 19tw2 ���u �ySL7 10937798/212 4/2/2BB4 13.38 Brad PHONE: Connecting for Success STREET AND/OR ALLEY VACATION APPLICATION AND PETITION Dear Mayor and Kent City Council: �-J We,the undersigned abutti g property owners,hereby respectfully request that certain �+_ ee `�' fie, .s,&. hereby be vacated. Legal Description of Street/Alley Sought to be Vacated (Must Contain Total.Square Feet of Area Sought To Be Vacated) BRIEF STATEMENT WHY VACATION IS BEING SOUGHT A"CiJRRENT"ownership and encumbrance report must be RECEIVED submitted with this application that covers all the abutting properties contiguous to alley or street sought to be vacated. When APR 2004 Corporations,partnerships,eta are being signed for, and then PpOpEpry Or KEWr F m proof of individual's authority to sign for sae shall also be submitted. Attach a color-coded map of a scale of not less than l"=200' of the area sought for vacitkta (NOTE) Map must correspond with legal description. leg— ABUTTING PROPERTY OWNERS TAX LOT# SIC} DRESSES LOT. K 6 &D AT�ISF�C 'N- --2k3zq IqS$ S�E,�(�r�✓R 98G�lL LM EXHIBIT "A" APR - 6 aoaa CM OF KENT GM CLERK L.ECAL DESCRF"nON THAT PORTION OF 145th PL S.E. WITHIN THE PLAT OF LOE ESTATES DIVISION NO. 2, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 160 OF PLATS, PAGES 26 THROUGH 30, IN KING COUNTY, WASHINGTON. LYING SOUTHERLY OF THE WESTERLY PROLONGATION OF LOT 12, SAID PLAT. 6,655 SF RECEIVED APR 0 5 Z004 CITY of KEW PROPERTY µM(,GE EMEM EXHIBIT "A" Page 2 of 3 RECEIVED LIAR 3 12004 March 23,2004 City of Kent Attn: Jerry McCaughan Property Management 220 South 0 Avenue Kent,WA 98032 Re Tax Lot 44397010570 Dear Mr.McCaughan: We,the Board of Directors of the Loe Estates Community Organization,make this petition to request that the City of Kent vacate the proposed right-of-way of 145 Ave SE and merge it with Tract B in plat 439701 as shown on the attached plat map. Schneider Homes,the developer and builder of the Loe Estates Community joins us in this petition. We have been informed that the City of Kent is willing to vacate and merge the portions together and provide title free and clear to the Loe Estates Community Organization under the same conditions as Tract B currently exists According to the letter dated September 29,2003,Mr.Stanley W.Roe,Executive Assistant,indicated that Tract B has no assessed value and the vacated potion of 1456 Ave SE will also have no assessed value The community of Loe Estates has many families with young children who enjoy the safe haven of a dead end street,particularly in light of the well used and community maintained soccer fields on both sides of the requested vacated property Vacating the requested property will not endanger any land,animals or residents in the adjoining areas and will not restrict emergency access to Loe Estates and/or the adjoining Meridian Firs eomplex. There are alternate roads in the area making it unnecessary to have a potentially high speed through way to endangerhomeowners and children making it necessary to then install speed bumps or other speed reducing devices We thank you for your prompt attention to this matter and look forward to a swift transition. Sincerely, I&K RECEIVED Kris Muckerheide Dave Christensen APR 0 5 2004 President Vice President CITY of c W. /• PROPERTY MAH EMENI Edwin Mauer Dennis Alfredson RECEIVED Treasurer Schneider Homes APR 0 2 2004 Eric[ C6TY OF KENT PERMIT CENTER i SEP-29-2003 MON 03:29 ?n SCHNEIDER HOMES INC. HX NU. 20 ZU 4Nd [Gng County DepmvicatofAuea2ments Scott Noble Yjft Covar Mmnatrahm Blip. Assessor $00 Fount A.awc,Room 702 Roan14 WA 9910/-2334 (206)29"19S FAX(206)2%-W" rina aaasorinrn@ruuriu`.tov w w.mro4r.=or/saaaor/ September 29,2003 To: LOE Estates Homeowner Association Trac B in plat 439701 will be merged with a vacated portion of 1450`Avenue SE. Said Trac B is not assessed and the vacated portion which will be merged into Trac B will not be assessed. Sincere] RECEIVED Stanley W Roe APR 2 2�D� Executive Assistant CITY OF FZNT SR swr ?, Elam CEl aN n� schneider homes, inc. 42-6�166 Z� 6510 Southcenter Boulevard•Suite#1 •Tukwila,WA 98188•(206)248-2471 •FAX-=)242-4209 March 2, 2004 Mary Morgan,Registered Agent,Loe Estates Community Organization 25715 102od P1 SE, Ste 103 Kent, WA 98064 RECEIVED Re: Vacation of Portion of 145'h Pi SE APR 0 5 2604 CITY 6F KENT Dear Ms Morgan PROPERTY kIANAGEMENv A few days ago Kris Muckerheide and I talked on the phone She was concerned to know in what state the street end would be left if in fact the City vacates the right-of-way She expressed reluctance to write and sign a letter to the City requesting vacation until her mind was put at ease After examining the current condition of the street end, and with the City's permission, I can commit Schneider Homes to making these improvements- 0 Overlay of the existing course of asphalt treated base with Class B asphalt pavement(approximately 34 feet wide x 110 feet long) This will result in a smooth new pavement,free of bumps and obstacles from manholes and unfinished curb heights • Installation of at least one"DEAD END" sign at the intersection • Paint striping of the vacated pavement if and as desired by the Community Organization • Reshaping of the earth berm at the street end, as well as installation of a barricade-type sign or structure if deemed necessary or appropriate by the City or by Schneider • Installation of bollards in the asphalt path leading east from the street end I trust this list will be found satisfactory My hope is to receive back the signed letter and petition shortly RECEIVED Respectfuly, APR 02 2oo4 SC HOMES, INC. �P�AAi�C�j,� es E Manger of Development&Construction W Ww schnelderhomes com SC HN El 245 Pe tir I schneid r homes, ' gz', e rues, Inc. �L 6510 Southcenter Boulevard•Sulte#1 .Tukwila,WA 98188.(206)248-2471 •FAX(2fl6)242-4209 Date: March 31, 2004 To: Fred Satterstrom, Planning Manager City of Kent 220 4th Ave S Kent, WA 98032-5895 Re: Loe Estates Vacation of Portion of 145th PL SE Attached: • Original petition, signed by the Loe HOA Board • Statement why vacation is sought • Legal description • Right-of-Way Vacation exhibit drawing RECEIVED • Copy of final plat APR 0 5 • Map check rack. �FioPE�y cF rT • Plat certificate MANAGE.MEIyt • Letter from assessor's office RECEIVED • Assessor's map APR 0 2 2004 • Letter from Schneider Homes to Loe HOACITy OF KEN Board PERMITcENTER • Check for $150.00 Finally—the HOA has gotten their stuff back to me They only meet once a quarter, so since they had questions and concems, this took awhile to get together. Please call when you know something about the pa Is i now going to take D n edson, P.E. Ma of Development& Construction www=hnederhomed com soH"f-245 n Tracts A and B,permanent open area: As a requirement for approval,these Tracts are set aside and reserved for permanent open space and recreational use for the benefit of the present and future owner(s) of the lots in this subdivision as authorized by Ordinance No. 8885. As a condition of approval, the undersigned owner(s) of interest in the land hereby subdivided do grant and convey a perpetual easement in Tracts A and B for the use and benefit of all present and future owner(s) of the lots in this subdivision authorized by Ordnance No. 8885. Except as shown on the plat, no building shall be placed on Tracts A and B and such Tracts shall not be j further subdivided or used for financial gain. Tracts A and B shall be dedicated to the Loe Estates Homeowner's Association upon the recording of this plat. Said Homeowner's Association shall be responsible for and burdened with the cost associated with the perpetual maintenance of the trail system and fence within Tracts A and B. Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: 228TH STREET EXTENSION PROPERTY ACQUISITION-APPROVE 2. SUMMARY STATEMENT: Authorize the Mayor to complete the property transactions for the purchase of the City of Seattle property, Quit Claim City of Kent property located within Kent-Highlands Landfill to the City of Seattle and amend the 1977 Transport of Leachate Agreement. 3. EXHIBITS: Public Works Director's memorandum, master agreement for real property, and Leachate Agreement 4. RECOMMENDED BY: Public Works Committee (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6 CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6E NOTE: CHANGES TO THE MOTION and ITEM 5 ADDED IN SUMMARY PUBLIC WORKS DEPARTMENT Don E Wickstrom, RE Public Works Director Phone 253-856-5600 Fax 253-856-6500 KEN T Address 220 Fourth Avenue S W A S H I N O T O N Kent,WA 98032-5895 DATE: April 14,2004 TO: Public Works Committee FROM: Don Wickstrom,Public Works Director SUBJECT: S. 228th Street Extension—Seattle Property MOTION Approve purchase of the City of Seattle Property, Quit Clain City of Kent property located within the Kent-Highlands Landfill to the City of Seattle and amend 1977 Transport of j Leachate Agreement Authorize Mayor White to complete the property transaction SUMMARY: Kent requires property located north of the Kent-Highlands Landfill to complete the S 228th Street Extension The property is owned by the City of Seattle and is directly adjacent to the Landfill Due to the history of this area,there are several components to the property transaction 1 Kent would purchase approximately 47.9 acres from Seattle, 25 3 acres would be used for the S 228th Street Extension and 22 6 acres would be dedicated as Open Space 2 Kent would purchase slope easements on three different areas, totaling 0 54 acres 3 Seattle would Quit Claim to Kent portions of Frager Road and the riverbank along the Green River that Seattle currently owns 4 Kent would Quit Claim 5 1 acres to Seattle that Kent owns within the Kent Highlands Landfill(a Superfund cleanup area) 5. Kent amends 1977 interlocal agreement relating to transporting landfill leachate to Metro interceptor. The purchase price for the transaction is $935,186 00 BUDGET IMPACT No Unbudgeted Fiscal/Personnel Impact The property transaction has been included in the anticipated costs for the S 228th Street Extension BACKGROUND: Kent would purchase property from Seattle needed for the S 228th Street corridor R O W as part of an overall transaction This would divest Seattle from all but several acres of Multi-Family Zoned property it owns near Military Road(which it plans to sell at a later date) The Kent Highlands Landfill Superfund site would be retained by the City of Seattle Appraisals completed in autumn 2003 determined the value of the property in question, and were reviewed by an independent appraiser Seattle also hired an expert appraiser and concurred with the appraised value The adjoirung Kent Highlands Landfill Superfund site is managed by the Washington State Department of Ecology and has been closed since 1986 The Department of Ecology has determined that the sale property included in this proposed transaction is not affected by the Landfill clean-up and can be sold as surplus by the City of Seattle. Mayor White and Kent City Councd I S 228th St Extension—Seattle Property PUBLIC WORKS DEPARTMENT Don E Wickstrom, P E Public Works Director Phone 253-856-5500 Fax. 253-856-6500 KENON WASNINGTON Address 220 Fourth Avenue S Kent,WA 98032-5895 DATE: April 14, 2004 TO: Public Works Committee FROM: Don Wickstrom, Public Works Director SUBJECT: S. 228th Street Extension—Seattle Property MOTION. Approve purchase of the City of Seattle Property and Quit Claim City of Kent property located within the Kent-Highlands Landfill to the City of Seattle Authorize Mayor White to complete the property transaction. SUMMARY: Kent requires property located north of the Kent-Highlands Landfill to complete the S 228th Street Extension The property is owned by the City of Seattle and is directly adjacent to the Landfill Due to the history of this area, there are several components to the property transaction 1 Kent would purchase approximately 47 9 acres from Seattle, 25 3 acres would be used for the S 228th Street Extension and 22 6 acres would be dedicated as Open Space 2. Kent would purchase slope easements on three different areas, totaling 0 54 acres 3 Seattle would Quit Claim to Kent portions of Frager Road and the riverbank along the Green River that Seattle currently owns 4 Kent would Quit Claim 5 1 acres to Seattle that Kent owns within the Kent Highlands Landfill (a Superfund cleanup area) The purchase price for the transaction is $935,186.00 BUDGET IMPACT No Unbudgeted Fiscal,Personnel Impact The property transaction has been included in the anticipated costs for the S 228th Street Extension BACKGROUND: Kent would purchase property from Seattle needed for the S 228th Street corridor R O W. as part of an overall transaction This would divest Seattle from all but several acres of Multi-Family Zoned property it owns near Military Road(which it plans to sell at a later date) The Kent Highlands Landfill Superfund site would be retained by the City of Seattle. Appraisals completed in autumn 2003 determined the value of the property in question, and were reviewed by an independent appraiser Seattle also hired an expert appraiser and concurred with the appraised value The adjoining Kent Highlands Landfill Superfund site is managed by the Washington State Department of Ecology and has been closed since 1986 The Department of Ecology has determined that the sale property included in this proposed transaction is not affected by the Landfill clean-up and can be sold as surplus by the City of Seattle. Mayor White and Kent City Council 1 S 228"St Extension—Seattle Property 0 Attachment 1 Form of MASTER AGREEMENT FOR REAL PROPERTY AND ENVIRONMENTAL FACILITIES This MASTER AGREEMENT FOR REAL PROPERTY AND ENVIRONMENTAL FACILITIES ("Agreement") is entered into as of 2004, between The City of Seattle, Washington, a municipal corporation of the State of Washington acting by and through Seattle Public Utilities ("Seattle"), and the City of Kent, Washington, a municipal corporation of the State of Washington ("Kent") Seattle and Kent sometimes are referred to collectively as the"Parties " RECITALS A Within the City of Kent, Seattle owns the former Kent Highlands Landfill (the "Landfill"), a Superfund site included on the National Priorities List that has been remediated by Seattle, as well as adjacent property currently used by Seattle to monitor its remediation of the Landfill B The City of Kent has undertaken a road improvement project in Kent known as the South 228"' Street Extension Project (the"Project"), and has formed Local Improvement District No 353 ("LID No 353") to provide partial funding for the Project The Seattle-owned property in and adjacent to the Landfill is within the boundaries of LID No 353 and is traversed by the Project The general area of the Project and the Seattle property is shown on EXHIBIT I hereto In order to accommodate the Project, Kent desires to purchase from Seattle a portion of the Seattle-owned property, as well as a slope easement Seattle wishes to accommodate Kent's Project by selling to Kent the property that Kent needs The "Project Area" and three "Slope Easement" areas shown on EXHIBIT I are the areas that Kent deems necessary for the Project C. In order to consolidate and better manage their property for the benefit of the public, Seattle and Kent also desire to convey to each other certain other property and easements near the Project. The properties that Seattle desires to convey to Kent are shown on EXHIBIT I as "Greenspace," "Riverbank" and "Frager Road" The Riverbank and Frager Road are referred to collectively as the "Frager Road Area." Since the Greenspace parcel consists largely of steep slopes and wetlands, the Parties agree that it should be retained in perpetuity as green or open space. Seattle also desires to convey to Kent a public access and utility easement, as shown in EXHIBIT I. The property within the Landfill that Kent desires to convey to Seattle is shown on EXHIBIT I as the"South Parcel" D Kent and Seattle recognize that the contemplated construction of the Project and transfers of real property/property interests will require decommissioning and, in some cases, relocating Seattle's Landfill gas monitoring facilities, as well as relocating a portion of a forcemam that conveys leachate from the Landfill to the King County sewer treatment plant (collectively, the `Environmental Facilities") The parties also recognize that their March 24, 1977 "Agreement for Transport of Leachate through the City of Kent to Metro's West Valley Agreement Page 1 Interceptor Sanitary Sewer System" (the "1977 Agreement') will need to be amended to reflect said relocation of the leachate forcemam. - NOW, THEREFORE,the Parties agree as follows: AGREEMENT 1. CONVEYANCE OF REAL PROPERTIES AND PROPERTY INTERESTS The transaction contemplated under this Agreement involves multiple conveyances of property/property interests all by gwtclaim deed, as follows: A. Real properties/property interests to be deeded to Kent. Seattle shall convey to Kent fee interest with restrictions and reservations of easements in the Project Area, Greenspace, Frager Road and Riverbank, together with all improvements therein, and Seattle also shall convey a Slope Easement and Public Access and Utility Easement, as follows (1) Project Area, the legal description of which is included in EXHIBIT A, (2) Greenspace, the legal description of which is included in EXHIBIT B, (3)Frager Road Area 46 a. Frager Road, the legal description of which is included in EXHIBIT C, b. Riverbank, the legal description of which is included in EXHIBIT D, (4) Slope Easement, the legal description of which is included in EXHIBIT E, and (5) Public Access and Utility Easement, the legal description of which is included in EXHIBIT K. B. Real property to be deeded to Seattle. Kent shall convey to Seattle a fee interest in the "South Parcel," the legal description for which is included in EXHIBIT F, together with all improvements therein. C. General. All property and property interests identified in section LA are sometimes referred to collectively as the "Seattle Property " The property identified in section 1.13 is sometimes referred to as the "Kent Property." In the event of any conflicts between the general property locations/depictions shown in EXHIBIT I or elsewhere and the legal descriptions contained in EXHIBITS A through F and K,the legal descriptions shall control Agreement Page 2 2. DEPOSIT — Upon execution of this Agreement by both Seattle and Kent, Kent shall execute and deliver to Pacific Northwest Title Company of Washington, 116 Washington Avenue N , Kent, Washington 98032 ("Title Company"), Attn: Jean Johnson, Senior Escrow Officer, as escrow agent for the closing of this transaction, a promissory note (the "Earnest Money Note") in the amount of ten thousand dollars ($10,000 00) in the form attached hereto as EXHIBIT G The Earnest Money Note will be converted to cash within 21 calendar days of the mutual execution of this Agreement and will be paid or delivered as earnest money (the "Earnest Money") in part payment for the purchase price of the Property The Deposit will be held by Title Company for the benefit of the parties pursuant to the terms of this Agreement. Interest will accrue on the Deposit for the benefit of Kent, provided, however, that if Kent forfeits the Deposit to Seattle pursuant to the terms of this Agreement, then all interest accrued on the Deposit will be paid to Seattle 3. PURCHASE PRICE As partial consideration for Seattle's conveyance of the Seattle Property, Kent shall pay Seattle, in cash through escrow at closing, Nine Hundred Thirty Five Thousand One Hundred Eighty Six Dollars ($ 935,186.00) (the 'Purchase Price"), of which the Earnest Money is a part The Parties agree that the Purchase Price represents the negotiated net amount obtained after • taking into account the fair market value of the Seattle Property, the value of the Kent Property, and the LID No. 353 assessments that Seattle would have owed on its remaining property,but for Kent's waiver of assessments under section 4 A of this Agreement. 4. ADDITIONAL CONSIDERATION/OTHER OBLIGATIONS A. Waiver of LID No. 353 Assessments. As additional consideration for Seattle's conveyance of the Seattle Property, Kent hereby agrees to waive all LID No 353 assessments against the following Seattle-owned real properties Parcel#000200 0010 Parcel#000200 0011 Parcel #152204 9002 Parcel#152204 9065 Parcel #152204 9066 Parcel #726020 0115 Upon closing of property conveyances hereunder, the City of Kent shall treat all LID No 353 assessments against the above parcels "PAID IN FULL," and there shall be no LID No 353 payments made to Kent by Seattle in connection with any of these parcels The City of Kent represents and warrants that it has the legal authority to waive LID No 353 assessments as set forth in this section. B. Relocating/decommissioning of Environmental Facilities. The Parties' agreement as to responsibilities and costs associated with decommissioning and/or relocating the Environmental Facilities is set forth in EXHIBIT H to this Agreement Agreement Page 3 C. Indemnification. Kent shall indemnify and hold harmless Seattle from all Incremental Costs that Seattle may incur from time to time after the Closing Date to conduct environmental monitoring, remediation activities or any "remedial action," as defined in the Model Toxics Control Act, RCW 70.105D.020(21) in the Project Area, Greenspace, Frager Road Area or Public Access and Utility Easement area (the `Environmental Activities"). As used herein, Incremental Costs shall mean the amount by which the total, actual costs of Environmental Activities exceeds the total cost that Seattle would have incurred for such Environmental Activities had the Project Area, Greenspace, Frager Road Area, Slope Easement Area or Public Access and Utility Easement Area remained undeveloped and not conveyed by Seattle to Kent. D. Amendment of 1977 Agreement. No later than the Closing Date set forth in section TA, Kent and Seattle shall execute an amendment to the 1977 Agreement, substantially in the form set forth in EXHIBIT J hereto. 5. TITLE TO REAL PROPERTY A. Conveyance At closing, and except as set forth in the forms of quitclaim deed attached hereto as EXHIBITS A,B, C, and D, Seattle shall convey to Kent all of Seattle's right, title, and interest in the real properties legally described in said EXHIBITS Likewise, at closing, Kent shall convey to Seattle by quitclaim deed in the form attached as EXHIBIT F all of Kent's right, title, and interest in the real property legally described in said EXHIBIT. Finally, Seattle shall also convey and quit claim to Kent at closing a Slope Easement and a Public Access and Utility Easement in the forms attached as EXHIBITS E and K, over the real property legally described in said EXHIBITS B. Preliminary commitment Seattle may, at its option and at its expense, order a preliminary commitment for title insurance on the South Parcel,to be conveyed to Seattle by Kent Seattle agrees to accept Kent's conveyance of the South Parcel subject to any and all encumbrances of record, except to the extent there exist any monetary encumbrances other than non-delinquent ad valorem property taxes. Kent hereby represents that there do not exist any such monetary encumbrances, and Kent hereby agrees to remove any such monetary encumbrances if they are found to exist. Kent may, at its option and at its expense, order a preliminary commitment for title insurance on any one or all of the properties to be conveyed to Kent by Seattle Kent agrees to accept Seattle's conveyances subject to any and all encumbrances of record, except to the extent there exist any monetary encumbrances other than non-delinquent ad valorem property taxes Seattle hereby agrees to remove any such monetary encumbrances if they are found to exist Agreement Page 4 6. CONDITIONS TO CLOSING A. Kent's contingencies Kent's obligation to purchase the Seattle Property and Kent's other obligations hereunder are expressly contingent upon the following (1) Title Policy. Kent's receipt of Title Company's firm commitment to issue to Kent at closing a standard coverage owner's policy of title insurance insuring Kent's title to the Seattle Property described in EXHIBITS A through D the "Kent Title Policy") in the full amount of the Prh' g ( Y ) Purchase Price, subject to any and all encumbrances of record other than monetary encumbrances excluding non-delinquent ad valorem property taxes The Kent Title Policy must be dated as of the Closing Date. (2) Seattle's compliance Seattle's timely performance of all of its obligations under this Agreement, provided, Seattle will be given notice of any failure on its part to perform obligations pursuant to this Agreement and will have a period of time that is reasonable under the circumstance to cure its nonperformance B. Satisfaction/waiver of Kent's Contingencies Kent's contingencies are solely for the benefit of Kent If any of Kent's contingencies are not timely satisfied, Kent will have the right at its sole election either to waive any of them in writing and proceed with the purchase or to terminate this Agreement If Kent elects to terminate this Agreement, the escrow will be terminated, the Deposit must immediately be returned to Kent, all documents and other funds will be returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement, and except that each party shall pay one-half(1/2) of the cost of terminating the escrow C. Seattle's contingencies Seattle's obligation to purchase the Kent Property and Seattle's other obligations hereunder are expressly contingent upon the following (1) Title Policy. Seattle's receipt of Title Company's firm commitment to issue to Seattle at closing a standard coverage owner's policy of title insurance insuring Seattle's title to the Kent Property (the "Seattle Title Policy") in the amount of no more than $32,500, subject to any and all encumbrances of record other than monetary encumbrances excluding non-delinquent ad valorem property taxes The Seattle Title Policy must be dated as of the Closing Date (2) Kent's compliance Kent's timely performance of all of its obligations under this Agreement, provided, Kent will be given notice of any failure on its part to perform obligations pursuant to this Agreement and will have a period of time that is reasonable under the circumstance to cure its nonperformance Agreement Page 5 D. Satisfaction/waiver of Seattle's Contingencies Seattle's contingencies are solely for the benefit of Seattle if any of Seattle's contingencies are not timely satisfied, Seattle will have the right at its sole election either to waive any of them in writing and proceed with the purchase or to termnate this Agreement If Seattle elects to terminate this Agreement, the escrow will be terminated, the Deposit must immediately be delivered to Seattle, all documents and other funds will be returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement, and except that each party shall pay one-half(1/2)of the cost of terminating the escrow 7. CLOSING A. Closing date This transaction will be closed in escrow by Title Company acting as escrow agent ("Escrow Agent"). The closing will be held at the offices of Pacific Northwest Title Escrow, 116 Washington Avenue N , Kent, Washington 98032. The parties shall work together diligently to accomplish closing as soon as possible after mutual execution of this Agreement, and in no event shall closing occur after June 15, 2004 (the "Closing Date") If closing does not occur on or before the Closing Date, or any later date mutually agreed to in writing by Seattle and Kent, Escrow Agent will immediately terminate the escrow, forward the Deposit to the party entitled to receive it as provided in this Agreement and return all documents to the party that deposited them. B. Closing (1) Seattle's escrow deposits On or before the Closing Date, Seattle shall deposit into escrow the following (a) the duly executed and acknowledged Quitclaim Deeds in the forms attached to this Agreement as EXHIBITS A, B, C and D, (b) the duly executed and acknowledged Slope Easement and Public Access and Utility Easement substantially in the forms attached to this Agreement as EXHIBITS E and K, (c) duly executed and completed Real Estate Excise Tax Affidavits, (d) a non-foreign affidavit pursuant to Section 1445 of the Internal Revenue Code; (e) a duly executed amendment to the 1977 Agreement substantially in the form set forth in EXHIBIT J; (f) any other documents or instruments that Seattle is obligated to provide hereunder to close this transaction; and Agreement Page 6 (g) a certificate reaffirming as of the Closing Date that all of Seattle's representations and warranties under this Agreement are true and correct. (2) Kent's escrow deposits On or before the Closing Date, Kent shall deposit into escrow the following. (a) cash in an amount sufficient to pay the Purchase Price set forth in Section 3 of this Agreement less the Earnest Money then in escrow,plus Kent's share of closing costs, (b) the duly executed and acknowledged Quitclaim Deed in the form attached to this Agreement as EXHIBIT F, (c)duly executed and completed Real Estate Excise Tax Affidavits, (d) a non-foreign affidavit pursuant to Section 1445 of the Internal Revenue Code, (e) a duly executed amendment to the 1977 Agreement substantially in the form attached hereto as EXHIBIT J, (f) any other documents or instruments Kent is obligated to provide pursuant to this Agreement in order to close this transaction, and (g) a certificate reaffirming as of the Closing Date that all of Kent's representations and warranties under this Agreement are true and accurate (3) Additional instruments and documentation Seattle and Kent each shall deposit any other instruments and documents that are reasonably required by Escrow Agent or otherwise required to close the escrow and consummate the conveyances contemplated in this Agreement C. Closing costs (1) Seattle's costs Seattle shall pay the premium for the Seattle Title Policy (including any extended coverage and endorsements if elected by Seattle), plus the cost of recording the deed conveyed by Kent,plus one-half of Title Company's escrow fee (2) Kent's costs Kent shall pay the premium for the Kent Title Policy (including any extended coverage and endorsements, if elected by Kent), plus the cost of recording the deeds and easements conveyed by Seattle, plus one-half of Title Company's escrow fee Agreement Page 7 (3) Kent and Seattle acknowledge that, based on existing State law, they-anticipate that real estate excise taxes will not be payable on any of the conveyances contemplated hereunder If, however, such taxes are imposed, they will (a) cooperate in good faith to seek to obtain any relief, if available, from the obligation to pay such taxes and(b) each pay one-half of such taxes, if imposed 8. ADJUSTMENTS AND PRORATIONS All property taxes payable in the year of closing and assessments on the Seattle Property (excluding the Slope and Public Access and Utility Easements) and on the Kent Property, if any, will be prorated as of the Closing Date. 9. REPRESENTATIONS AND WARRANTIES A. Seattle's representations and warranties Seattle represents and warrants to Kent as follows: (1) Seattle has full power and authority to convey the Seattle Property to Kent (2) Seattle is a municipal corporation duly organized and validly existing under the laws of the State of Washington This Agreement and all documents executed by Seattle that are to be delivered to Kent at closing are, or at the time of closing will be, (i) duly authorized, executed and delivered by Seattle, (n) legal, valid and binding obligations of Seattle, (ui) sufficient to convey title (if they purport to do so), and (iv) in compliance with all provisions of all agreements and judicial orders to which Seattle is a party or to which Seattle or any portion of the Seattle Property is subject (3) As of the date of this Agreement, Seattle is not aware of any default by Kent of any representation or warranty set forth in this Agreement (4) Except as set forth in this Section 9 A , Seattle makes no representations or warranties, express or implied, with respect to, and shall have no liability for- (a)the condition of the Seattle Property or any buildings, structures or improvements thereon, or the suitability, habitability, merchantability, or fitness of the Seattle Property for Kent's intended use or for any use whatsoever; (b) compliance with any applicable building, zoning or fire laws or regulations or with respect to the existence of or compliance with any required permits, if any, of any governmental agency; (c) the availability or existence of any water, sewer or other utility rights; (d) the presence of any hazardous substances on or under the Seattle Property or in any improvements thereon; (e) the accuracy or completeness of any plans and specifications, reports, or other materials provided to Kent; or(f) any other matter relating to the condition of the Seattle Property Agreement Page 8 B. Kent's representations and warranties Kent represents and warrants to Seattle as follows (1) Kent has full power and authority to convey the Kent Property to Seattle (2) Kent is a municipal corporation, duly organized and validly existing under the laws of the State of Washington. This Agreement and all documents executed by Kent that are to be delivered to Seattle at closing are, or at the time of closing will be (i) duly authorized, executed and delivered by Kent, (ii) legal, valid and binding obligations of Kent, (in) sufficient to convey title (if they purport to do so), and (iv) in compliance with all provisions of all agreements and judicial orders to which Kent is a party or to which Kent or any portion of the Kent Property is subject. (3) As of the date of this Agreement, Kent is not aware of any default by Seattle of any representation or warranty set forth in this Agreement (4) Except as set forth in this Section 9 B , Kent makes no representations or warranties, express or implied, with respect to, and shall have no liability for (a) the condition of the Kent Property or any buildings, structures or improvements thereon, or the suitability, habitability, merchantability, or fitness of the Kent Property for Seattle's intended use or for any use whatsoever, (b) compliance with any applicable building, zoning or fire laws or regulations or with respect to the existence of or compliance with any required permits, if any, of any governmental agency, (c) the availability or existence of any water, sewer or other utility rights, (d) the presence of any Hazardous Substances on or under the Kent Property or in any improvements thereon, (e) the accuracy or completeness of any plans and specifications, reports, or other materials provided to Seattle, or(f) any other matter relating to the condition of the Kent Property. 10. CONDITION OF PROPERTY A Kent hereby acknowledges that the Seattle Property borders or is in close proximity to the former Kent-Highlands Landfill ("Landfill") Likewise, Seattle hereby acknowledges that the Kent Property is within the Landfill The Parties further acknowledge that the Landfill has been placed by the United States Environmental Protection Agency on the National Priorities List of "Superfund" sites, that Seattle has conducted an investigation and environmental remediation of the Landfill, and that hazardous substances were detected in, under and around it Kent agrees that each deed by which Kent reconveys any portion of the Seattle Property shall contain the notice provision shown in EXHIBITS A — E and K Likewise, Seattle agrees that each deed by which Seattle reconveys any portion of the Kent Property shall contain the notice provision shown in EXHIBIT F. B Kent acknowledges and agrees that (1) Seattle has made available for Kent's review all documents in Seattle's possession relating to Seattle's investigation and remediation of the Landfill, (2) Kent has been afforded the opportunity to make such investigations and inspections of the Seattle Property and Seattle's records with respect to the Seattle Property and matters Agreement Page 9 related thereto as Kent desires, (3) Kent has had the opportunity to discover the impact, if any, of the Landfill on its intended use, development or resale of the Seattle Property,44) Kent has entered into this Agreement on the basis of its own investigation of the physical condition of the Seattle Property, including subsurface conditions, (5) except as specifically set forth in Section 9.A, Seattle does not make any representations or warranties of any kind whatsoever, either express or implied, with respect to the Seattle Property or any related matter, (6) subject to section 15, the Seattle Property is sold to Kent in an "AS IS" condition as of the Closing Date, (7) Kent assumes the risk that adverse physical conditions may not have been revealed by its investigation and took such risk into account in its decision to enter into this Agreement on the terms set forth herein, and (8) if the contingencies and conditions of closing set forth in Section 6 A are satisfied or waived, Kent will accept title to the Seattle Property "AS IS" subject to all defects and conditions, including such defects and conditions, if any, that may not have been revealed by Kent's investigation C. Seattle acknowledges and agrees that (1) Kent has made available for Seattle's review all documents in Kent's possession relating to any Kent activities with respect to investigation and remediation of the Landfill, (2) Seattle has been afforded the opportunity to make such investigations and inspections of the Kent Property and Kent's records with respect to the Kent Property and matters related thereto as Seattle desires, (3) Seattle has had the opportunity to discover the impact, if any, of the Landfill on its intended use, development or resale of the Kent Property, (4) Seattle has entered into this Agreement on the basis of its own investigation of the physical condition of the Kent Property, including subsurface conditions, (5) except as specifically set forth in Section 9 B, Kent does not make any representations or warranties of any kind whatsoever, either express or implied, with respect to the Kent Property or any related matter, (6) subject to section 15, the Kent Property is sold to Seattle in an "AS IS" condition as of the Closing Date, (7) Seattle assumes the risk that adverse physical conditions may not have been revealed by its investigation and took such risk into account in its decision to enter into this Agreement on the terms set forth herein, and (8) if the contingencies and conditions of closing set forth in Section 6 B are satisfied or waived, Seattle will accept title to the Kent Property "AS IS" subject to all defects and conditions, including such defects and conditions, if any, that may not have been revealed by Seattle's investigation. 11. POSSESSION At closing, Seattle shall deliver possession of the Project Area, Frager Road Area and Greenspace to Kent, and Kent shall deliver possession of the South Parcel to Seattle. 12. EVENTS OF DEFAULT A. By Seattle If there is an event of default under this Agreement by Seattle (including without limitation a breach of any representation, warranty or covenant, before or after closing), Kent will be entitled (1) in addition to all other remedies available at law or in equity, to seek specific performance of Seattle's obligations under this Agreement or(2) to terminate this Agreement by written notice to Seattle and Escrow Agent (if prior to closing). If Kent terminates this Agreement Page 10 Agreement, the escrow will be terminated, the entire Deposit must immediately be returned to Kent, all documents will be immediately returned to the party who deposited then;, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement except that Seattle shall pay any costs of terminating the escrow and any cancellation fee for the preliminary commitment described in section 5 B(2) B. By Kent If there is an event of default under this Agreement by Kent (including without limitation a breach of any representation, warranty or covenant, before or after closing), Seattle will be entitled (1) in addition to all other remedies available at law or in equity, to seek specific performance of Kent's obligations under this Agreement or (2) to terminate this Agreement by wntten notice to Kent and Escrow Agent (if prior to closing) If Seattle terminates this Agreement prior to closing, the escrow will be terminated, the entire Deposit shall be forfeited to Seattle, all documents will be immediately returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement and except that Kent shall pay any costs of terminating the escrow and any cancellation fee for the preliminary commitment described in section 5 B(1) 13. NOTICES Any notice under this Agreement must be in writing and be personally delivered, delivered by recognized overnight courier service or given by mail or via facsimile Any notice given by marl must be sent, postage prepaid, by certified or registered mail, return receipt requested. Except as set forth in EXHIBIT H, all notices must be addressed to the parties at the following addresses or at such other addresses as the parties may from time to time direct in writing Seattle Seattle Public Utilities, RPS 700 Fifth Ave , Suite 4900 P O. Box 34018 Seattle, WA 98124-4018 with a copy to Arlene Ragozm City Attorney's Office 600 Fourth Ave , 4`h Floor P O Box 94769 Seattle,WA 98124-4769 Kent Jerry McCaughan, Property Manager City of Kent 220 Fourth Avenue South Kent, WA 98032 Agreement Page 11 with a copy to- Tom Brubaker City Attorney, City of Kent 220 Fourth Avenue South Kent, WA 98032 Any ndtice will be deemed to have been given, if personally delivered, when delivered, and if delivered by courier service, one business day after deposit with the courier service, and if mailed, two business days after deposit at any post office in the United States of America, and if delivered via facsimile, the same days as verified, provided that any verification that occurs after 5 p.m, on a business day, or at any time on a Saturday, Sunday or holiday, will be deemed to have occurred as of 9 a.m on the following business day. 14.AMENDMENTS This Agreement may be amended or modified only by a written instrument executed by Seattle and Kent. 15. RISK OF LOSS PRIOR TO CLOSING Kent and Seattle (the "Parties") each agree to accept from the other in "as-is" condition the properties to be conveyed pursuant to this Agreement, except as follows Only upon the occurrence prior to closing of a cataclysmic event (including but not limited to a landslide) that seriously damages or changes the character of a property to be acquired may the Party acquiring such property elect to terminate this Agreement. Further, a Party may only exercise such an electron to terminate by providing written notice of termination to the other Parry no later than (a) the seventh (7 h) calendar day after the cataclysmic event, or (b) the Closing Date, whichever occurs first. In the event of termination pursuant to this section 15, the Parties shall attempt in good faith to negotiate an amendment to this Agreement in order to allow the Project to proceed with a modified acquisition by Kent of all or a portion of the Seattle Property, 16. CONTINUATION AND SURVIVAL OF AGREEMENT All terms and conditions set forth in this Agreement (including without limitation all exhibits) are deemed to be material and shall survive the delivery of, and shall not merge with, the several deeds and transfers of title 17. GOVERNING LAW This Agreement will be governed by and construed in accordance with the laws of the state of Washington. 18. ENTIRE AGREEMENT This Agreement, including recitals and exhibits, constitutes the entire agreement between the Parties with respect to the conveyance of the Seattle Property and the Kent Property and to all other obligations of the Parties set forth in this Agreement This Agreement supersedes all Agreement Page 12 prior agreements and understandings between the Parties relating to the subject matter of this Agreement All recitals and exhibits are by this reference made a part of this Agreement 19. TIME OF THE ESSENCE Time is of the essence in this Agreement. 20. EMINENT DOMAIN If at any time after the date of this Agreement either Party receives any notice of any state or federal condemnation proceedings, or other proceedings in the nature of eminent domain, it will promptly send a copy of such notice to the other Party If all or any part of any of the properties to be conveyed by Seattle to Kent pursuant to this Agreement is taken by condemnation or eminent domain Kent may, upon written notice to Seattle, elect to terminate this Agreement, and in such event all monies theretofore paid on account must be returned to Kent, and neither party will have any further liability or obligation under this Agreement. If all or any portion of such properties has been or is hereafter condemned or taken by eminent domain and this Agreement is not canceled, Seattle's right, title and interest in and to any awards in condemnation or eminent domain, or damages of any kind, to which Seattle may have become entitled shall be assigned to Kent 21. WAIVER Neither Seattle's nor Kent's waiver of the breach of any covenant or obligation under this Agreement will be construed as a waiver of the breach of any other covenants or as a waiver of a subsequent breach of the same covenant or obligation 22. NEGOTIATION AND CONSTRUCTION This Agreement and each of its terms and provisions are deemed to have been explicitly g P P Y negotiated between the Parties, and the language in all parts of this Agreement will, in all cases, be construed according to its fair meaning and not strictly for or against either party 23. EXHIBITS The following exhibits are part of this Agreement EXHIBIT A Form of Quit Claim Deed with Restrictions and Reservation, for conveyance of Project Area from Seattle to Kent EXHIBIT B Form of Quit Claim Deed with Restrictions and Reservation, for conveyance of Greenspace from Seattle to Kent EXHIBIT C Form of Quit Claim Deed with Restriction and Reservation, for conveyance of Frager Road from Seattle to Kent EXHIBIT D Form of Quit Claim Deed with Restriction and Reservation, for conveyance of Riverbank from Seattle to Kent EXHIBIT E Form of Slope Easement to be conveyed from Seattle to Kent Agreement Page 13 EXHIBIT F Form of Quit Clain Deed with Restriction, for conveyance of South Parcel from Kent to Seattle - EXHIBIT G Form of Earnest Money Note referenced in Section 2 of this Agreement EXHIBIT H Agreement regarding relocation and decommissioning of Environmental Facilities. EXHIBIT I Drawing depicting the general locations of the properties and easement areas conveyed pursuant to this Agreement EXHIBIT J Form of amendment to 1977 Agreement EXHIBIT K Form of Public Access and Utility Easement to be conveyed from Seattle to Kent THE CITY OF SEATTLE CITY OF KENT Chuck Clarke Tom Brubaker Director, Seattle Public Utilities City Attorney,City of Kent Agreement Page 14 EXHIBIT A AFTER RECORDING MAIL TO Property Management City of Kent 220 4th Avenue South Kent,WA 98032 Reference Number of Related Document N/A Grantor(s) The City of Seattle,a Municipal Corporation Grantee(s) The City of Kent,a Municipal Corporation Abbreviated Legal Description Portion of the Enos Cooper Donation Land Claim Number 38 and of Government Lot 8 and of the S%z of the NW'/4 and of the NW'/4 of the SWK,all in Section 15,Township 22 North,Range 4 East,W M Additional Legal Description is on Page(s)5=6 of Document Assessor's Property Tax Parcel or Account No Portions of the following tax parcels 7260200115, 1522049066, 1522049065, 1522049002,0002000010,0002000011,and the benefited area 1522049008,0002000005, 0002000022,0002000023,0002000001,0002000003 or portions thereof Project South 228th Street Extension, Project Area QUIT CLAIM DEED WITH RESTRICTIONS AND RESERVATION Grantor, THE CITY OF SEATTLE, a Washington municipal corporation, for and in consideration of Ten Dollars($10 00)and other valuable consideration,conveys and quit claims to the CITY OF KENT, a Washington municipal corporation("Grantee")the real estate,including any improvements therein and any after acquired title, situated in the County of King, State of Washington, and described in Attachment A attached and made a part hereto (the"Property") SUBJECT TO THE FOLLOWING: 1 NOTICE GRANTEE ACKNOWLEDGES THAT IT HEREBY IS PLACED ON NOTICE THAT THE PROPERTY HEREIN CONVEYED BORDERS OR IS IN CLOSE PROXIMITY TO THE FORMER KENT HIGHLANDS LANDFILL,A SITE THAT HAS BEEN PLACED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ON THE NATIONAL PRIORITIES LIST OF "SUPERFUND"SITES AND BY THE STATE OF WASHINGTON ON ITS LIST OF HAZARDOUS SITES. Every future deed to transfer all or any portion of the Property shall include the above-stated notice and this paragraph This notice provision shall run with the land,shall be binding upon the Property and Grantee, its successors and assigns, and shall inure to the benefit of Grantor and, if different, The City of Seattle, its successors and assigns Page I of Exhibit A • 2. RESERVATION OF EASEMENT Grantor reserves to itself a perpetual easement over,under and across the Property for environmental monitoring and remediation activities related to the former Kent Highlands Landfill (as legally described in Attachment B, the "Benefited Property"), including without limitation inspection, operation, maintenance, repair and replacement of any gas probes and monitoring wells on the Property and any "remedial action," as defined in the Model Toxics Control Act, RCW 70.105D.020(21) (the"Purpose"). Grantor, its employees and agents shall have the right without prior institution of any suit or proceeding at law,at such time as it may determine,to enter upon the Property for the Purpose, without incurring any legal obligation or liability therefor. In the event that Grantor shall so enter the Property, Grantor shall: (i) notify Grantee at least thirty (30) days prior to beginning any activity on the Property that disturbs the surface of the ground or,in the event of an emergency,notify Grantee as soon as practicable and(u)perform all activities on the Property in accordance with applicable laws and regulations. Except as stated herein,this easement is not intended to impose any legal or other responsibility on Grantor. By way of example only and without limiting the preceding sentence,Grantor shall have no responsibility for maintenance of the Property or payment of any taxes or assessments that may be levied against it This easement and the rights and restrictions contained herein shall run with the land, shall be binding upon the Property and Grantee, its successors and assigns, and shall inure to the benefit of the Benefited Property and Grantor, its successors and assigns. 3. RESTRICTIVE COVENANT Except as provided herein, Grantee shall not divert or direct any surface water or groundwater flows from Grandview Park or the Property to the Benefited Property To that end, with respect to managing surface water or groundwater from Grandview Park or the Property, Grantee shall neither take nor permit any action that(a)has the effect of increasing the annual volume of surface water or groundwater flows to Wetland 11 above the Current Condition or(b) diverts or directs an instantaneous (peak) flow greater than five(5)cubic feet per second to Wetland 11, unless flows in excess of five(5) cubic feet per second are necessary to maintain Wetland I 1 in the Current Condition. Subject to the preceding sentence, Grantee may provide the minimum water flow necessary to maintain Wetland I I in the Current Condition, but not more than such minimum water flow In particular, Grantee may direct, through a flow splrtter or other control mechanism, a portion of the water originating from Grandview Park to Wetland 11,provided that the remainder of the water from Grandview Park and all water flows resulting from the Project shall be directed along the Project roadway to Grantee's stormwater ponds other than Wetland 11, and shall not reach the Benefited Property For purposes of this restrictive covenant, the following definitions shall apply. Current Condition shall mean the boundaries of Wetland 11 as delineated on Figure 22 (attached hereto as Attachment C) of the South 228`h Street Extension Draft Environmental Impact Statement("DEIS") dated November 22, 2000 and such water flows as are necessary to maintain the existing wetlands vegetation in Wetland 1 I as Page 2 of Exhibit A Sdocumented in the DEIS. Grandview Park shall mean the area so named and depicted on Figure 22 (attached hereto as Attachment C) of the DEIS. Protect shall mean the road improvement project undertaken by Grantee in the City of Kent known as the South 228a'Street Extension Project Wetland 11 shall mean the area so named and depicted on Figure 22 (attached hereto as Attachment C) of the DEIS This restrictive covenant shall run with the land,shall be binding upon the Property and Grantee,its successors and assigns, and shall inure to the benefit of Benefited Property and Grantor, its successors and assigns 4 INDEMNIFICATION To the extent permitted by law, Grantee does hereby release, indemnify and promise to defend and save harmless Grantor from and against any and all liability, loss, damage, expense, actions and claims, including costs and reasonable attorneys' fees incurred by Grantor in connection therewith, arising directly or indirectly on account of or out of the exercise by Grantee, its servants, agents, employees and contractors, of its rights under this Quit Claim Deed with Restrictions and Reservation or its obligations hereunder 5 ENFORCEMENT In the event of violation of the notice provision, easement or restrictive covenant in this Quit Claim Deed, Grantor shall be entitled to all remedies at law or in equity to enforce the notice provision, easement or restrictive covenant, as applicable, including without hnutation bringing an action for injunctive relief or specific performance, it being recognized that monetary damages may not provide an adequate remedy to Grantor IN WITNESS WHEREOF,Grantor has caused this instrument to be executed by its proper officers this_day of 12004 THE CITY OF SEATTLE Chuck Clarke, Director Seattle Public Utilities Page 3 of Exhibit A STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke,known to me to be the Director of Seattle Public Utilities of The City of Seattle, the mumcipal corporation that executed the foregoing instrument,and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation,and for the uses and purposes therein mentioned,and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation WITNESS my hand and official seal hereto affixed the day and year first above written Print name. Notary Public in and for the State of Washington, residing at My commission expires Page 4 of Exhibit A ATTACHMENT A - That portion of Section 15, Township 22 North,Range 4 East,W M , the Enos Cooper Donation Land Claim Number 38,and the unrecorded plat of Richard's Hy-Line Acres, all in King County,Washington, described as follows Commencing at the west quarter comer of said Section 15, from which point the northwest comer of said section bears N01°11'45"E 2628 00 feet distant,and from which point the southwest comer of said section bears SO1°19'23"W 2630 04 feet distant, thence S89°51'38"E,along the east west center of section line of said Section 15,a distance of 897 77 feet to the TRUE POINT OF BEGINNING of the herein described tract of land,thence N24°44'21"W 53 34 feet, thence N20°12'27"E 43 53 feet to a point on a 1340 00 foot radius, circular curve to the left, from which point the center of said curve bears N24°42'56"W,thence northeasterly,along said curve,through a central angle of 2°23'08",an arc distance of 55 79 feet to a point of tangency, thence N62°53'56"E 355 76 feet to a point of tangency with a 1960 00 foot radius circular curve to the right, thence northeasterly,along said curve,through a central angle of 10°00'58",an arc distance of 342 64 feet,thence S65°09'08"E 615 63 feet,thence S23°56'42"E 162 95 feet to the east west center of section line of said Section 15, thence S89°51'38"E, along said center of section line,449 78 feet to the center of said Section 15; thence N00°45'27"E, along the north south center of section line of said Section 15,a distance of 340 02 feet to the north line of the south 340 00 feet of the northeast quarter of said Section 15, thence S89°51'38"E, along said north line,325 02 feet to the east line of the west 325 00 feet of said northeast quarter, thence N00°45'277, along said east line, 185 Ol feet to the north line of the south 525 00 feet of said northeast quarter, thence S89°51'387, along said north line, 855 38 feet to the southwesterly line of a tract of land conveyed to the City of Kent by Quit Claim Deed recorded under King County Recording Number 20020829000359, thence N35°03'17"W,along said southwesterly line, 142 81 feet to an angle point in said line,thence continuing along said southwesterly line,N55°45'57"W 257 43 feet to an angle point in the south line of said tract, thence N89°51'00"W, along the south line of said tract, 882 09 feet to the north south center of section line of said Section 15 and an angle point in the south line of said tract,thence continuing along the boundary of said tract and said north south center of section line, N00°45'27"E 26 30 feet to an angle point in the boundary of said tract,thence S89°10'13"W, along the boundary of said tract, 34194 feet to the southwest comer thereof,thence NO3°51'53"E, along the west boundary of said tract and its northerly prolongation, 197 49 feet to an angle point in the southerly boundary of Tract"R"as shown in that certain Record of Survey on file under King County Recording Number 19991123900001, thence N50°08'07"W,along said southerly boundary, 158 37 feet to an angle point in said southerly boundary, thence continuing along said southerly boundary and its southwesterly prolongation, S75°51'53"W 213 39 feet to the west line of the east half of the northeast quarter of the northwest quarter of said Section 15, thence Soo°51'59"W,along said west line,474 22 feet, thence S84031'32"W 40 98 feet to a point of tangency with a 2050 00 foot radius circular curve to the left,thence southwesterly, along said curve,through a central angle of 18°03'57", an are distance of 646 38 feet to the east line of the southwest quarter of the northwest quarter of said Section 15, thence N00°58'32"E,along said east line, 3 60 feet to the north line of the south 415 00 feet of said southwest quarter of the northwest quarter, thence N89051'38"W,along said north line, to the centerline of a logging road as described in Statutory Warranty Deed recorded under King County Recording Number 8304010596, thence southwesterly, along said logging road centerline, to the northeasterly right of way line Military Road South, thence S24°44'21"E,along said northeasterly right of way line, to the northwest corner of Tract 20, in the Page 5 of Exhibit A unrecorded plat of Richards Hy-Line Acres,from which point the west quarter comer of said Section 15 bears N89°44'01"W 876 63 feet distant;thence continuing along said northeasterly right of way line, S24044'21"E 446 89 feet to the south line of the north 405 00 feet of said unrecorded plat,thence S89°44'01"E,along said south line,22 07 feet to a point which bears S24°44'21"E from the TRUE POINT OF BEGINNING,thence N24°44'21"W 449 09 feet to the TRUE POINT OF BEGINNING. Containing 1,101,811 square feet or 25.294 acres 10 Page 6 of Exhibit A 9 ATTACHMENT B Benefited Property This land referred to in this description is situated in the county of King,state of Washington, and described as follows That portion of the west half of the northeast quarter of the southwest quarter of Section 15, Township 22 North,Range 4 East,W M in King County,Washington, lying north of Des Moines-Kent Highway, EXCEPT that portion conveyed to the State of Washington by Deed recorded April 29, 1959,under King County Recording Number 5025699 ALSO That portion of the west 400 feet of the north 1436 feet of the south 1944 feet of Enos Cooper Donation Claim Number 38 lying north of the Kent-Des Moines pavement and being more particularly described as follows Beginning at the intersection of the west line of said Donation Claim with the north boundary of the Kent-Des Moines pavement right of way, thence northerly along west boundary line of Donation Claim Number 38 a distance of450 feet, thence easterly a distance of 400 feet, thence southerly a distance of 220 feet, thence south 36000' west a distant of 440 feet more or less to a point on the north right of way boundary of the Kent-Des Moines pavement, thence northwesterly along said north right of way boundary to the point of beginning, EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO That portion of the Enos Cooper Donation Claim lying within the southeast quarter of Section 15, Township 22 North,Range 4 East,W M King County Washington,described as follows Beginning at a point of intersection with the centerline of Kent-Des Moines Highway and the south line of the north half of said subdivision, thence southerly along said centerline a distance of 135 48 feet, thence north 62°30'00"east 30 feet to the true point of beginning, thence continuing north 62°30'00"east 525 feet, thence northwesterly on a curve to the left and running parallel with the proposed northeasterly margin of SR 516(as shown on that certain map dated May 8, 1969, Sheet 2 of 11 sheets, Jct SR 5 to/Jet SR 167 MP 2 21 to MP 4 83)to the west line of said Donation Claim, thence south along the west line of said Donation Claim to the Centerline of said Highway, thence southeasterly to a point which bears south 62°30'00"west from the True Point of Beginning, thence north 62030'00"east 30 feet to the true point of beginning, EXCEPT that portion defined as follows Beginning at a point of intersection of the west line of the Cooper Donation Claim with the north margin of SSH 5A(Kent-Des Moines Hwy)being the true Page 7 of Exhibit A point of beginning of exception herein described; thence north along said Donation Clain Line 450 feet, _ thence easterly a distance of 400 feet, thence south parallel with the west line of said Donation Clain Line 220 feet; thence south 36'west 440 feet more or less to northerly margin of SSH 5A, thence northwesterly along the northerly margin of SSH 5A to the True Point of Beginning of exception herein described, AND ALSO EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO: Portion of the east one-half of the northeast one-quarter of the southwest one-quarter of Section 15, Township 22 North,Range 4 East,W M, lying northerly of State Route 516(Kent-Des Moines Highway,)ALSO That portion of the Donation Land Claim of the heirs at law of Enos Cooper, deceased,designated as Claim Number 38, in the southeast one-quarter of Section 15,Township 22 North,Range 4 East, W.M, in King County,Washington, lying north of a line 408 feet north of and parallel to the south line of said Claim, EXCEPT that portion conveyed to King County,by deed dated July 14, 1934,recorded July 30, 1934 in Volume 1591 of Deeds,page 612,under Recording Number 2812324, EXCEPT portion condemned in Superior Court Cause Number 748518 for SR-516; EXCEPT that portion conveyed to the City of Seattle by Deed recorded under Recording Number 7705020771, AND EXCEPT that portion conveyed to the City of Kent by deed recorded under Recording Number 7105280484 ALSO Government Lot 10, Section 15,Township 22 North,Range 4 East,W M, in King County, Washington, lying north of SR-516 as condemned in Superior Court Cause Number 748518 Page 8 of Exhibit A a ur�l E '� � M �� .rtklLwl � ♦K t IT% E'F KF\T _ .i-a..r:.0 ••,�••�•••• •�,�•cHmEw '0 •ie 10.1E ER w_E'1Y^.5 INC Mr..ERc. iEXHIBIT B AFTER RECORDING MAIL TO Property Management City of Kent 220 4th Avenue South Kent,WA 98032 Reference Number of Related Document N/A Grantors) The City of Seattle,a Municipal Corporation Grantee(s) City of Kent,a Municipal Corporation Abbreviated Legal Description Portion of Government Lot 8 in Section 15,Township 22 North,Range 4 East, W M and portion of the Enos Cooper Donation Land Claim Number 38,all in S'/z of NE'/<of said Section 15, Township 22 North,Range 4 East,W M Additional Legal Description is on Page(s)4 of Document Assessor's Property Tax Parcel or Account No Portions of the following tax parcels 0002000010,0002000011, 1522049002 and the benefited area 7260200115, 1522049008,0002000005,0002000022,0002000023, 0002000001,0002000003 or portions thereof Project South 228`i' Street Extension, Greenspace QUIT CLAIM DEED WITH RESTRICTIONS AND RESERVATION Grantor,THE CITY OF SEATTLE,a municipal corporation,for and in consideration of ten dollars($10 00)and mutual benefits derived,receipt of which is hereby acknowledged,conveys and quit claims to Grantee,the CITY OF KENT,the real estate,including any improvements therein and any after acquired title, situated in the County of King, State of Washington, and described in Attachment A attached and made a part hereto (the "Property") SUBJECT TO THE FOLLOWING 1. NOTICE GRANTEE ACKNOWLEDGES THAT IT HEREBY IS PLACED ON NOTICE THAT THE PROPERTY HEREIN CONVEYED BORDERS OR IS IN CLOSE PROXIMITY TO THE FORMER KENT HIGHLANDS LANDFILL,A SITE THAT HAS BEEN PLACED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ON THE NATIONAL PRIORITIES LIST OF "SUPERFUND"SITES AND BY THE STATE OF WASHINGTON ON ITS LIST OF HAZARDOUS SITES. 673G Page 1 of Exhibit B Every future deed to transfer all or any portion of the Property shall include the above-stated notice and this paragraph.This notice provision shall nun with the land,shall be binding upon the Property and Grantee, its successors and assigns, and shall inure to the benefit of Grantor and, if different, The City of Seattle,its successors and assigns To the extent permitted by law,Grantee does hereby release, indemnify and pronuse to defend and save harmless Grantor from and against any and all liability, loss,damage,expense, actions and claims,including costs and reasonable attorneys' fees incurred by Grantor in connection therewith, ansmg directly or indirectly on account of or out of Grantee's failure to fulfill its obligations under this notice provision. 2 RESERVATION OF EASEMENT Grantor reserves to itself a perpetual easement over,under and across the Property for environmental monitoring and remediation activities related to the former Kent Highlands Landfill (as legally described in Attachment B, the "Benefited Property"), including without limitation inspection, operation, maintenance, repair and replacement of any gas probes and monitoring wells on the Property and any "remedial action," as defined in the Model Toxics Control Act, RCW 70.105D 020(21)(the "Purpose"). Grantor, its employees and agents shall have the right without prior institution of any suit or proceeding at law,at such time as it may determine,to enter upon the Property for the Purpose, without incurring any legal obligation or liability therefor In the event that Grantor shall so enter the Property, Grantor shall. (i) notify Grantee at least thirty (30) days prior to beginning any activity on the Property that disturbs the surface of the ground or,in the event of an emergency,notify Grantee as soon as practicable and(n)perform all activities on the Property in accordance with applicable laws and regulations. Except as stated herein, this easement is not intended to impose any legal or other responsibility on Grantor By way of example only and without limiting the preceding sentence,Grantor shall have no responsibility for maintenance of the Property or payment of any taxes or assessments that may be levied against it This easement and the rights and restrictions contained herein shall run with the land, shall be binding upon the Property and Grantee, its successors and assigns, and shall inure to the benefit of the Benefited Property and Grantor, its successors and assigns. 3 RESTRICTIVE COVENANT Grantee shall preserve the Property forever as green space or open space. To that end,Grantee shall not construct,install or place,and shall not permit any other party to construct,install or place,any improvement or structure on, over,across or under the Property without obtaining Grantor's prior written approval Grantor's approval or disapproval shall reflect its assessment of the potential impact of the proposed improvement on the Kent Highlands Landfill and approval shall not unreasonably be withheld or delayed. Notwithstanding the foregoing, Grantee may construct and install trails, signage and interpretive facilities on the Property This restrictive covenant, and the rights and restrictions contained herein, shall run with the land, shall be binding upon the Property and Grantee,its successors and assigns,and shall inure to the benefit of the Benefited Property and Grantor, its successors and assigns. 673G Page 2 of Exhibit B 4 ENFORCEMENT - In the event of violation of the notice provision or restrictive covenant in this Quit Claim Deed, Grantor shall be entitled to all remedies at law or in equity to enforce the notice provision, easement or restrictive covenant, as applicable, including without limitation bringing an action for injunctive relief or specific performance, it being recognized that monetary damages may not provide an adequate remedy to Grantor IN WITNESS WHEREOF,Grantor has caused this instrument to be executed by its proper officers this day of 12004. THE CITY OF SEATTLE Chuck Clarke, Director Seattle Public Utilities STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of , 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke, known to me to be the Director of Seattle Public Utilities of The City of Seattle, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, and for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation WITNESS my hand and official seal hereto affixed the day and year first above written Print name Notary Public in and for the State of Washington, residing at My commission expires 673G Page 3 of Exhibit B ATTACHMENT A - That portion of Section 15, Township 22 North,Range 4 East,W M and the Enos Cooper Donation Land Claim Number 38,all in King County,Washington,described as follows Commencing at the west quarter comer of said Section 15, from which point the northwest corner of said section bears N01°11'45"E 2628 00 feet distant,and from which point the southwest comer of said section bears SOl°19'23"W 2630 04 feet distant, thence S89°51'38"E,along the east west center of section line of said Section 15, a distance of 897 77 feet, thence N24°44'21"W 53 34 feet, thence N200 12'27"E 43 53 feet to a point on a 1340 00 foot radius, circular curve to the left, from which point the center of said curve bears N24°42'56"W, thence northeasterly, along said curve, through a central angle of 2°23'08",an arc distance of 55 79 feet to a point of tangency; thence N62°53'56"E 355 76 feet to a point of tangency with a 1960 00 foot radius circular curve to the right, thence northeasterly, along said curve,through a central angle of 10°00'58",an are distance of 342 64 feet, thence S65°09'08"E 615 63 feet,thence S23°56'42"E 162 95 feet to the east west center of section line of said Section 15, thence S89°51'38"E,along said center of section line,449 78 feet to the center of said Section 15 and the TRUE POINT OF BEGINNING of the herein described tract, thence N00°45'27"E, along the north south center of section line of said Section 15,a distance of 340 02 feet to the north line of the south 340 00 feet of the northeast quarter of said Section 15, thence S89°51'38"E,along said north line,325 02 feet to the east line of the west 325 00 feet of said northeast quarter, thence NOO°45'27"E, along said east line, 185 01 feet to the north line of the south 525 00 feet of said northeast quarter, thence S89°51'38"E,along said north line, 855 38 feet to the southwesterly line of a tract of land conveyed to the City of Kent by Quit Claim Deed recorded under King County Recording Number 20020829000359, thence S35°03'17"E, along said southwesterly line,222 19 feet to an angle point in said line, thence continuing along said southwesterly line,N84°32'23"E 258 86 feet to the westerly margin of Frager Road, thence southerly, along said westerly margin, the following courses and distances, thence S21°16'42"W 2 79 feet, thence S25°55'53"W 100 88 feet,thence S16°55'10"W 100 49 feet,thence S06°26'08"W 102 17 feet, thence S00°15'54"W 77 49 feet to the east-west center of section line of said Section 15, thence N89°51'38"W,along said center of section line, 1486 46 feet to the TRUE POINT OF BEGINNING Containing 685,927 square feet or 15 7467 acres 673G Page 4 of Exhibit B ATTACHMENT B Benefited Property This land referred to in this description is situated in the county of King,state of Washington,and described as follows That portion of the west half of the northeast quarter of the southwest quarter of Section 15,Township 22 North,Range 4 East, W M in King County,Washington, lying north of Des Moines-Kent Highway, EXCEPT that portion conveyed to the State of Washington by Deed recorded April 29, 1959,under King County Recording Number 5025699 ALSO That portion of the west 400 feet of the north 1436 feet of the south 1944 feet of Enos Cooper Donation Claim Number 38 lying north of the Kent-Des Moines pavement and being more particularly described as follows Beginning at the intersection of the west line of said Donation Claim with the north boundary of the Kent-Des Moines pavement right of way, thence northerly along west boundary line of Donation Claim Number 38 a distance of 450 feet, thence easterly a distance of 400 feet, thence southerly a distance of 220 feet, thence south 36°00' west a distant of 440 feet more or less to a point on the north right of way boundary of the Kent-Des Moines pavement, thence northwesterly along said north right of way boundary to the point of beginning, EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO That portion of the Enos Cooper Donation Claim lying within the southeast quarter of Section 15, Township 22 North,Range 4 East,W M King County Washington,described as follows Beginning at a point of intersection with the centerline of Kent-Des Moines Highway and the south line of the north half of said subdivision, thence southerly along said centerline a distance of 135 48 feet, thence north 62°30'00"east 30 feet to the true point of beginning, thence continuing north 62°30'00"east 525 feet, thence northwesterly on a curve to the left and running parallel with the proposed northeasterly margin of SR 516 (as shown on that certain map dated May 8, 1969, Sheet 2 of 11 sheets,Jet SR 5 to/Jct SR 167 MP 2 21 to MP 4 83) to the west line of said Donation Claim, thence south along the west line of said Donation Claim to the Centerline of said Highway, thence southeasterly to a point which bears south 62°30'00"west from the True Point of Beginning, thence north 62°30'00"east 30 feet to the true point of beginning, 673G Page 5 of Exhibit B EXCEPT that portion defined as follows Beginning at a point of intersection of the west line of the Cooper Donation Claim with the north margin of SSH 5A(Kent-Des Moines Hwy)being the true point of beginning of exception herein described; thence north along said Donation Clain Line 450 feet, thence easterly a distance of 400 feet, thence south parallel with the west line of said Donation Claim Line 220 feet, thence south 36'west 440 feet more or less to northerly margin of SSH 5A; thence northwesterly along the northerly margin of SSH 5A to the True Point of Beginning of exception herein described; AND ALSO EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO: Portion of the east one-half of the northeast one-quarter of the southwest one-quarter of Section 15, Township 22 North,Range 4 East,W M, lying northerly of State Route 516 (Kent-Des Moines Highway;)ALSO That portion of the Donation Land Claim of the heirs at law of Enos Cooper, deceased,designated as Claim Number 38, in the southeast one-quarter of Section 15, Township 22 North,Range 4 East, W M, in King County, Washington,lying north of a line 408 feet north of and parallel to the south line of said Claim, EXCEPT that portion conveyed to King County,by deed dated July 14, 1934,recorded July 30, 1934 in Volume 1591 of Deeds,page 612, under Recording Number 2812324, EXCEPT portion condemned in Superior Court Cause Number 748518 for SR-516, EXCEPT that portion conveyed to the City of Seattle by Deed recorded under Recording Number 7705020771, AND EXCEPT that portion conveyed to the City of Kent by deed recorded under Recording Number 7105280484 ALSO Government Lot 10, Section 15,Township 22 North,Range 4 East,W M ,in King County, Washington; lying north of SR-516 as condemned in Superior Court Cause Number 748518 673G Page 6 of Exhibit B EXHIBIT C AFTER RECORDING MAIL TO Property Management City of Kent 220 4th Avenue South Kent,WA 98032 Reference Number of Related Document N/A Grantor(s) The City of Seattle,a Municipal Corporation Grantee(s) City of Kent,a Municipal Corporation Abbreviated Legal Description Portions of the Enos Cooper Donation Land Claim Number 38,in SE'/,of NE'/. and SE'/.of SE'/<of Section 15,Township 22 North,Range 4 East,W M Additional Legal Description is on Page(s)4 of Document Assessor's Property Tax Parcel or Account No Portions of the following tax parcels 1522049001,0002000010, 1522049021,and the benefited area 7260200115, 1522049008, 1522049002,0002000005,0002000022, 0002000023,0002000001,0002000003 or portions thereof Project- South 228`b Street Extension, Frager Road QUIT CLAIM DEED WITH RESTRICTION AND RESERVATION Grantor,THE CITY OF SEATTLE,a municipal corporation,for and in consideration of ten dollars($10 00)and mutual benefits derived,receipt of which is hereby acknowledged,conveys and quit claims to Grantee,the CITY OF KENT,the real estate,including any improvements therein and any after acquired title, situated in the County of King, State of Washington, and described in Attachment A attached and made a part hereto(the"Property"). SUBJECT TO THE FOLLOWING 1 NOTICE GRANTEE ACKNOWLEDGES THAT IT HEREBY 1S PLACED ON NOTICE THAT THE PROPERTY HEREIN CONVEYED BORDERS OR IS IN CLOSE PROXIMITY TO THE FORMER KENT HIGHLANDS LANDFILL,A SITE THAT HAS BEEN PLACED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ON THE NATIONAL PRIORITIES LIST OF "SUPERFUND"SITES AND STATE OF WASHINGTON LIST OF HAZARDOUS SITES Every future deed to transfer all or any portion of the Property shall include the above-stated notice and this paragraph This notice provision shall run with the land,shall be binding upon the Property 673G Page 1 ofExhibii C and Grantee, its successors and assigns, and shaII inure to the benefit of Grantor and,if different, The City of Seattle,its successors and assigns.To the extent permitted by law,Grantee does hereby release, indemnify and promise to defend and save harmless Grantor from and against any and all liability,loss,damage, expense,actions and claims,including costs and reasonable attorneys' fees incurred by Grantor in connection therewith, ansing directly or indirectly on account of or out of Grantee's failure to fulfill its obligations under this notice provision 2 RESERVATION OF EASEMENT Grantor reserves to itself a perpetual easement over,under and across the Property for environmental monitoring and remediation activities related to the former Kent Highlands Landfill (as legally described in Attachment B, the "Benefited Property"), including without limitation inspection, operation,maintenance,repair and replacement of any gas probes, monitoring wells or leachate line on the Property, and any "remedial action," as defined in the Model Toxics Control Act, RCW 70.105D 020(21) (the"Purpose") Grantor, its employees and agents shall have the right without prior institution of any suit or proceeding at law,at such time as it may determine,to enter upon the Property for the Purpose, without incumng any legal obligation or liability therefor In the event that Grantor shall so enter the Property, Grantor shall- (i) notify Grantee at least thirty (30) days prior to beginning any activity on the Property that disturbs the surface of the ground or,in the event of an emergency,notify Grantee as soon as practicable and(n)perform all activities on the Property in accordance with applicable laws and regulations. Except as stated herein, this easement is not intended to impose any legal or other responsibility on Grantor. By way of example only and without limiting the preceding sentence,Grantor shall have no responsibility for maintenance of the Property or payment of any taxes or assessments that may be levied against it. This easement and the rights and restrictions contained herein shall run with the land, shall be binding upon the Property and Grantee, its successors and assigns, and shall inure to the benefit of the Benefited Property and Grantor, its successors and assigns 3. ENFORCEMENT In the event of violation of the notice provision in this Quit Claim Deed with Restriction and Reservation, Grantor shall be entitled to all remedies at law or in equity to enforce the notice provision, easement or restrictive covenant,as applicable,including without limitation bringing an action for injunctive relief or specific performance,it being recognized that monetary damages may not provide an adequate remedy to Grantor. 673G Page 2 of Exhibit C it IN WITNESS WHEREOF,Grantor has caused this instrument to be executed by its proper officers this day of 12004 THE CITY OF SEATTLE Chuck Clarke,Director Seattle Public Utilities STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke, known to me to be the Director of Seattle Public Utilities of The City of Seattle, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation,and for the uses and purposes therein mentioned,and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation WITNESS my hand and official seal hereto affixed the day and year first above written Print name Notary Public in and for the State of Washington, residing at My commission expires 673G Page 3 of Exhibit C ATTACHMENT A A strip of land, 60 00 feet in width,within the Enos Cooper Donation Land Claim No 38 in Section 15, Township 22 North,Range 4 East,W M,in King County,Washington,said strip of land having 30 00 feet on each sid@ of the following described centerline Commencmg at the south quarter corner of said Section 15, from which point the southwest corner of said Section bears S89°35'24"W, thence S88°59'57"E 2641 52 feet to the southeast comer of said Section 15 as shown on that certain Record of Survey in Volume 113 of Surveys,page 290,under King County Recording No 9703199001, thence N88°59'57"W,along the south line of the southeast quarter of said Section 15,a distance of 214 50 feet thence N010 00'03"E 221 76 feet to the southeast comer of the Enos Cooper Donation Land Claim No 38 as shown on said survey,thence NO2°07'48"E,along the east line of said donation land claim, 78 78 feet to the TRUE POINT OF BEGINNING of the herein described centerline, thence generally northerly,along said centerline,the following courses and distances, thence N50'51'27"W 40 34 feet,thence N50°36'59"W 93 92 feet;thence N57°09'36"W 94 03 feet thence N61°44'57"W 90 44 feet,thence N58°59'36"W 9109 feet,thence N52016'40"W 94 81 feet, thence N39°05'19"W 81 18 feet to the north line of the south 408 00 feet of said donation land claim and the terminus of the herein described centerline, said point being hereinafter referred to as point"A", Together with a strip of land, 60 00 feet in width,within the Enos Cooper Donation Land Claim No 38 having 30 00 feet on each side of the following described centerline Commencing at aforesaid point"A", thence N39°05'19"W 17 72 feet,thence N 19°34'15"W 83 70 feet, thence N08°16'53"W 41 12 feet,thence N00°07'32"E 44 46 feet, thence N06001'27"E 63 76 feet,thence NI1031'17"E 78.27 feet, thence N22105'50"E 49 52 feet, thence N23°15'12"E 44 44 feet, thence N29018'06"E 45 04 feet, thence N39009'03"E 289 07 feet, thence N37°43'44"E 52 39 feet, thence N30023'18"E 53 48 feet, thence N17°36'10"E 50 77 feet, thence N08°07'14"E 23 50 feet, thence N04056'12"E 3126 feet, thence N00013'23"W 54 73 feet, thence N06°42'12"W 53 86 feet, thence N18037'35"W 68 39 feet, thence N35°16'09"W 62 00 feet, thence N47°02'11"W 52 61 feet, thence N52014'20"W 46 91 feet, thence N55037'56"W 106 98 feet, thence N56°23'20"W 298 79 feet, thence N54044'11"W 118 09 feet, thence N46053'09"W 106 89 feet, thence N22°23'38"W 82 34 feet, thence N08058'02"W 96 03 feet, thence N0405736"W 97 42 feet, thence N03013'13"W 95 04 feet,thence N01042'29"W 98 09 feet, thence N00015'54"E 20 54 feet to the east-west center of section line of said Section 15 and the TRUE POINT OF BEGINNING of the herein described centerline, thence continuing N00015'54"E 75.81 feet, thence N06026'08"E 97 80 feet, thence N16055'10"E 95 37 feet, thence N25055'53"E 99 73 feet, thence N21°16'42"E 19 12 feet to the most southerly point on that certain centerline described in Quit Claim Deed recorded under King County Recording No 19991001001950 and the terminus of the herein described centerline Except those portions, if any, lying within the right of way of Frager Road The sidelines of said strip shall be extended or shortened, as required, to meet at angle points, the east line of the Enos Cooper Donation Land Claim No 38, the north line of the south 408 00 feet thereof, the east- west center of section line of said Section 15 and the property described in the aforementioned Quit Claim Deed 673G Page 4 of Exhibit C ATTACHMENT B Benefited Property This land referred to in this description is situated in the county of King,state of Washington,and described as follows That portion of the west half of the northeast quarter of the southwest quarter of Section 15, Township 22 North, Range 4 East,W M in King County,Washington,lying north of Des Moines- Kent Highway, EXCEPT that portion conveyed to the State of Washington by Deed recorded April 29, 1959,under King County Recording Number 5025699 ALSO That portion of the west 400 feet of the north 1436 feet of the south t944 feet of Enos Cooper Donation Claim Number 38 lying north of the Kent-Des Moines pavement and being more particularly described as follows Beginning at the intersection of the west line of said Donation Claim with the north boundary of the Kent-Des Moines pavement right of way, thence northerly along west boundary line of Donation Claim Number 38 a distance of 450 feet, thence easterly a distance of 400 feet, thence southerly a distance of 220 feet, thence south 36000' west a distant of 440 feet more or less to a point on the north right of way boundary of the Kent-Des Moines pavement, thence northwesterly along said north right of way boundary to the point of beginning, EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO That portion of the Enos Cooper Donation Claim lying within the southeast quarter of Section 15. Township 22 North,Range 4 East,W M King County Washington,described as follows Beginning at a point of intersection with the centerline of Kent-Des Moines Highway and the south line of the north half of said subdivision, thence southerly along said centerline a distance of 135 48 feet, thence north 62°30'00"east 30 feet to the true point of beginning, thence continuing north 62°30'00"east 525 feet, thence northwesterly on a curve to the left and running parallel with the proposed northeasterly margin of SR 516(as shown on that certain map dated May 8, 1969, Sheet 2 of 11 sheets,Jct SR 5 to/Jct SR 167 MP 2 21 to MP 4 83)to the west line of said Donation Claim, thence south along the west line of said Donation Claim to the Centerline of said Highway, thence southeasterly to a point which bears south 62°30'00"west from the True Point of Beginning, 673G Page 5 of Exhibit C thence north 62°30'00"east 30 feet to the true point of beginning, EXCEPT that portion defined as follows.Beginning at a point of intersection of the west line of the Cooper Donation Claim with the north margin of SSH 5A(Kent-Des Moines Hwy)being the true point of beginning of exception herein described; thence north along said Donation Claim Line 450 feet, thence easterly a distance of 400 feet; thence south parallel with the west line of said Donation Claim Line 220 feet; thence south 36'west 440 feet more or less to northerly margin of SSH 5A; thence northwesterly along the northerly margin of SSH 5A to the True Point of Beginning of exception herein described; AND ALSO EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO Portion of the east one-half of the northeast one-quarter of the southwest one-quarter of Section 15, Township 22 North,Range 4 East,W M, lying northerly of State Route 516(Kent-Des Moines Highway,)ALSO That portion of the Donation Land Claim of the heirs at law of Enos Cooper,deceased, designated as Claim Number 38, in the southeast one-quarter of Section 15,Township 22 North,Range 4 East, W M, in King County,Washington, lying north of a line 408 feet north of and parallel to the south Line of said Claim, EXCEPT that portion conveyed to King County,by deed dated July 14, 1934,recorded July 30, 1934 in Volume 1591 of Deeds,page 612,under Recording Number 2812324, EXCEPT portion condemned in Superior Court Cause Number 748518 for SR-516, EXCEPT that portion conveyed to the City of Seattle by Deed recorded under Recording Number 7705020771, AND EXCEPT that portion conveyed to the City of Kent by deed recorded under Recording Number 7105280484 ALSO Government Lot 10, Section 15,Township 22 North,Range 4 East,W M , in King County, Washington, lying north of SR-516 as condemned in Superior Court Cause Number 748518 673G Page 6 of Exhibit C EXHIBIT D AFTER RECORDING MAIL TO Property Management City of Kent 220 4th Avenue South Kent,WA 98032 Reference Number of Related Document N/A Grantor(s) City of Seattle, a Municipal Corporation Grantee(s) City of Kent,a Municipal Corporation Abbreviated Legal Description Portion of the Enos Cooper Donation Land Claim Number 38,in SE'/.of NEY<of Section 15,Township 22 North,Range 4 East,W M Additional Legal Description is on Page(s)4 of Document Assessor's Property Tax Parcel or Account No Portions of the following tax parcels 0002000001,0002000010, 0002000021,and the benefited area 7260200115, 1522049008, 1522049002,0002000005,0002000022, 0002000023,0002000003 or portions thereof Project South 228 b Street Extension, Riverbank QUIT CLAIM DEED WITH RESTRICTION AND RESERVATION Grantor,THE CITY OF SEATTLE,a municipal corporation.for and in consideration of ten dollars(S 10 00)and mutual benefits derived,receipt of which is hereby acknowledged,conveys and quit claims to Grantee,the CITY OF KENT,the real estate,including any improvements therein and any after acquired title, situated in the County of King, State of Washington, and described in Attachment A attached and made a part hereto (the "Property") SUBJECT TO THE FOLLOWING 1 NOTICE GRANTEE ACKNOWLEDGES THAT IT HEREBY IS PLACED ON NOTICE THAT THE PROPERTY HEREIN CONVEYED BORDERS OR IS IN CLOSE PROXIMITY TO THE FORMER KENT HIGHLANDS LANDFILL,A SITE THAT HAS BEEN PLACED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ON THE NATIONAL PRIORITIES LIST OF "SUPERFUND"SITES AND BY THE STATE OF WASHINGTON ON ITS LIST OF HAZARDOUS SITES Every future deed to transfer all or any portion of the Property shall include the above-stated notice and this paragraph This notice provision shall run with the land,shall be binding upon the Property 671G Page 1 of Exhibit D and Grantee, its successors and assigns, and shall inure to the benefit of Grantor and, if different, The City of Seattle,its successors and assigns.To the extent pernutted by law,Grantee does hereby release,indemnify and promise to defend and save harmless Grantor from and against any and all liability,loss,damage, expense,actions and claims,including costs and reasonable attorneys' fees incurred by Grantor in connection therewith, arising directly or indirectly on account of or out of Grantee's failtire to fulfill its obligations under this notice provision 2 RESERVATION OF EASEMENT Grantor reserves to itself a perpetual easement over,under and across the Property for environmental monitoring and remediation activities related to the former Kent Highlands Landfill (as legally described in Attachment B, the "Benefited Property"), including without limitation inspection, operation,maintenance,repair and replacement of any gas probes,monitoring wells or leachate line on the Property, and any "remedial action," as defined in the Model Toxres Control Act, RCW 70 105D,020(21) (the "Purpose") Grantor, its employees and agents shall have the right without prior institution of any suit or proceeding at law,at such time as it may determine,to enter upon the Property for the Purpose, without incurring any legal obligation or liability therefor In the event that Grantor shall so enter the Property, Grantor shall (i) notify Grantee at least thirty (30) days prior to beginning any activity on the Property that disturbs the surface of the ground or,in the event of an emergency,notify Grantee as soon as practicable and(n)perform all activities on the Property in accordance with applicable laws and regulations. Except as stated herein,this easement is not intended to impose any legal or other responsibility on Grantor By way of example only and without limiting the preceding sentence,Grantor shall have no responsibility for maintenance of the Property or payment of any taxes or assessments that may be levied against it This easement and the rights and restrictions contained herein shall run with the land, shall be binding upon the Property and Grantee, its successors and assigns, and shall inure to the benefit of the Benefited Property and Grantor, its successors and assigns 3 ENFORCEMENT In the event of violation of the notice provision in this Quit Claim Deed with Restriction and Reservation, Grantor shall be entitled to all remedies at law or in equity to enforce the notice provision,easement or restrictive covenant,as applicable,including without limitation bringing an action for injunctive relief or specific performance,it being recognized that monetary damages may not provide an adequate remedy to Grantor 673G Page 2 of Exhibit D IN WITNESS WHEREOF,Grantor has caused this instrument to be executed by its proper officers tlus_day of 12004 THE CITY OF SEATTLE Chuck Clarke, Director Seattle Public Utilities STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of , 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke, known to me to be the Director of Seattle Public Utilities of The City of Seattle, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation,and for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation WITNESS my hand and official seal hereto affixed the day and year first above written Print name Notary Public in and for the State of Washington, residing at My commission expires 673G Page 3 of Exhibit D ATTACHMENT A — That portion of the Enos Cooper Donation Land Claim No 38 in Section 15,Township 22 North,Range 4 East,W.M,in King County,Washington,lying easterly of a strip of land, 60 00 feet in width, said strip of land having 30 00 feet on each side of the following described centerline Commencing at the south quarter corner of said Section 15, from which point the southwest corner of said Section bears S89°35'24"W, thence S88°59'57"E 2641 52 feet to the southeast corner of said Section 15 as shown on that certain Record of Survey in Volume 113 of Surveys,page 290,under King County Recording No 9703199001,thence N88°59'57"W,along the south line of the southeast quarter of said Section 15,a distance of 214 50 feet, thence NO1°00'03"E 221 76 feet to the southeast comer of the Enos Cooper Donation Land Claim No 38 as shown on said survey, thence NO2°07'48"E,along the east line of said donation land claim, 78 78 feet, thence N50°51'27"W 40 34 feet, thence N50°36'59"W 93 92 feet, thence N57°09'36"W 94 03 feet thence N61°44'57"W 90 44 feet,thence N58059'36"W 91 09 feet, thence N52°16'40"W 94 81 feet, thence N39°05'19"W 98.90 feet,thence N19°34'15"W 83 70 feet, thence N08°16'53"W 41 12 feet,thence N00°07'32"E 44 46 feet, thence N06001'27"E 63 76 feet,thence N11 031'17"E 78 27 feet, thence N22°05'50"E 49 52 feet, thence N23°15'12"E 44 44 feet,thence N29'18'06"E 45 04 feet, thence N39°09'03"E 289 07 feet, thence N37°43'44"E 52 39 feet, thence N30°23'18"E 53 48 feet, thence N17°36'10"E 50 77 feet,thence N08°07'14"E 23 50 feet, thence N04056'12"E 3126 feet, thence N00°13'23"W 54 73 feet, thence N06°42'12"W 53 86 feet, thence N18037'35"W 68 39 feet, thence N35°16'09"W 62 00 feet, thence N47°02'11"W 52 61 feet, thence N52014'20"W 46 91 feet, thence N55°37'56"W 106 98 feet, thence N56°23'20"W 298 79 feet, thence N54044'1 l"W 118 09 feet,thence N46°53'09"W 106 89 feet,thence N22°23'38"W 82 34 feet, thence N08058'02"W 96 03 feet, thence N04°57'36"W 97 42 feet, thence NO3°13'13"W 95 04 feet, thence N01°42'29"W 98 09 feet, thence N00°15'54"E 20 54 feet to the east-west center of section line of said Section 15 and the TRUE POINT OF BEGINNING of the herein described centerline,thence continuing N00015'54"E 75 81 feet, thence N06°26'08"E 97 80 feet, thence N16°55'10"E 95 37 feet, thence N25055'53"E 99 73 feet, thence N21°16'42"E 19 12 feet to the most southerly point on that certain centerline described in Quit Claim Deed recorded under King County Recording No 19991001001950 and the terminus of the herein described centerline The sidelines of said strip shall be extended or shortened, as required, to meet at angle points, the east- west center of section line of said Section 15 and the property described in the aforementioned Quit Claim Deed Except those portions, if any, lying within the right of way of Frager Road 171G Page 4 of Exhibit D ATTACHMENT B This land referred to in this description is situated in the county of King,state of Washington,and described as follows That portion of the west half of the northeast quarter of the southwest quarter of Section 15,Township 22 North, Range 4 East,W M in King County, Washington,lying north of Des Moines-Kent Highway, EXCEPT that portion conveyed to the State of Washington by Deed recorded April 29, 1959,under King County Recording Number 5025699 ALSO That portion of the west 400 feet of the north 1436 feet of the south 1944 feet of Enos Cooper Donation Claim Number 38 lying north of the Kent-Des Moines pavement and being more particularly described as follows Beginning at the intersection of the west line of said Donation Claim with the north boundary of the Kent-Des Moines pavement right of way, thence northerly along west boundary line of Donation Claim Number 38 a distance of 450 feet, thence easterly a distance of 400 feet, thence southerly a distance of 220 feet; thence south 36°00' west a distant of 440 feet more or less to a point on the north right of way boundary of the Kent-Des Moines pavement, thence northwesterly along said north right of way boundary to the point of beginning, EXCEPT that portion lying southerly of said northeasterly margin of said SR 516 ALSO. That portion of the Enos Cooper Donation Claim lying within the southeast quarter of Section 15, Township 22 North,Range 4 East,W M King County Washington, described as follows Beginning at a point of intersection with the centerline of Kent-Des Moines Highway and the south line of the north half of said subdivision, thence southerly along said centerline a distance of 135 48 feet; thence north 62°30'00"east 30 feet to the true point of beginning, thence continuing north 62°30'00"east 525 feet, thence northwesterly on a curve to the left and running parallel with the proposed northeasterly margin of SR 516(as shown on that certain map dated May 8, 1969, Sheet 2 of 11 sheets,Jct SR 5 to/Jct SR 167 MP 2 21 to MP 4 83) to the west line of said Donation Claim, thence south along the west line of said Donation Claim to the Centerline of said Highway, thence southeasterly to a point which bears south 62°30'00"west from the True Point of Beginning, thence north 62°30'00"east 30 feet to the true point of beginning, EXCEPT that portion defined as follows Beginning at a point of intersection of the west line of the Cooper Donation Claim with the north margin of SSH 5A(Kent-Des Moines Hwy)being the true point of beginning of exception herein described, 61IG Page 5 of Exhibit D thence north along said Donation Claim Line 450 feet; thence easterly a distance of 400 feet; _ thence south parallel with the west]me of said Donation Claim Line 220 feet, thence south 36' west 440 feet more or less to northerly margin of SSH 5A, thence northwesterly along the northerly margin of SSH 5A to the True Point of Beginning of exception herein described, AND ALSO EXCEPT that portion lying southerly of said northeasterly margin of said SR 516. ALSO Portion of the cast one-half of the northeast one-quarter of the southwest one-quarter of Section 15, Township 22 North,Range 4 East,W M, lying northerly of State Route 516 (Kent-Des Moines Highway,)ALSO That portion of the Donation Land Claim of the heirs at law of Enos Cooper,deceased, designated as Claim Number 38,in the southeast one-quarter of Section 15,Township 22 North,Range 4 East, W M., in King County, Washington,lying north of a line 408 feet north of and parallel to the south line of said Claim, EXCEPT that portion conveyed to King County,by deed dated July 14, 1934,recorded July 30, 1934 in Volume 1591 of Deeds,page 612,under Recording Number 2812324, EXCEPT portion condemned in Superior Court Cause Number 748518 for SR-516, EXCEPT that portion conveyed to the City of Seattle by Deed recorded under Recording Number 7705020771, AND EXCEPT that portion conveyed to the City of Kent by deed recorded under Recording Number 7105280484. ALSO Government Lot 10, Section 15, Township 22 North,Range 4 East,W M, m King County, Washington,lying north of SR-516 as condemned in Superior Court Cause Number 748518 673G Page 6 of Exhibit D EXHIBIT E AFTER RECORDING MAIL TO Property Management City of Kent 220 4th Avenue South Kent, WA 98032 Reference Number of Related Document N/A Grantor(s) City of Seattle Grantee(s) City of Kent Abbreviated Legal Description Portions of the S%z of the NW'/<of Section 15,Township 22 North,Range 4 East,W M Additional Legal Description is on Page(s) 4;5 of Document Assessor's Property Tax Parcel or Account No 1522049066 Project- South 228`h Street Extension, Slope Easement SLOPE EASEMENT Grantor, THE CITY OF SEATTLE, a Washington municipal corporation, for and in consideration of Ten Dollars ($10 00)and other valuable consideration,conveys and quit claims to the City of Kent, a Washington municipal corporation("Grantee"),and its successors and assigns,a perpetual easement for the purpose of constructing and maintaining public right-of-way slopes in excavation and/or embankment over, under, through,across and upon the real property situated in King County, Washington and described in Attachment A attached and made a part hereto (the "Easement Area") SUBJECT TO THE FOLLOWING 1 NOTICE GRANTEE ACKNOWLEDGES THAT IT HEREBY IS PLACED ON NOTICE THAT THE EASEMENT HEREIN CONVEYED BORDERS OR IS IN CLOSE PROXIMITY TO THE FORMER KENT HIGHLANDS LANDFILL,A SITE THAT HAS BEEN PLACED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ON THE NATIONAL PRIORITIES LIST OF "SUPERFUND"SITES AND BY THE STATE OF WASHINGTON ON ITS LIST OF HAZARDOUS SITES. 668G doc Page I of Exhibit E 2. Grantee shall at all times exercise its rights under this easement in accordance with applicable statutes,orders,rules and regulations of any public authonty havmg jurisdiction Grantee accepts the Easement Area in its present physical condition,AS IS. To the extent permitted by law, Grantee does hereby release,indemnify and promise to defend and save harmless Grantor from and against any and all liability, loss, damage, expense, actions and claims, including costs and reasonable attorneys' fees incurred by Grantor in connection therewith,ansing directly or indirectly on account of or out of the exercise by Grantee, its servants, agents, employees and contractors of the rights granted in this easement or Grantee's obligations hereunder. 3. This Slope Easement shall be a covenant running with the land,and shall bind Grantor's successors and assigns and all future owners of the real property affected by this easement 4.Grantee may not assign its rights under this Slope Easement without the written consent of Grantor. 5 In the event of violation of the terms of in this Slope Easement,Grantor shall be entitled to all remedies at law or in equity,including without limitation bringing an action for injunctive relief or specific performance, it being recognized that monetary damages may not provide an adequate remedy to Grantor Dated this day of 12004. THE CITY OF SEATTLE Chuck Clarke, Director Seattle Public Utilities 668G doe Page 2 of Exhibit E STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of , 2004_1 before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke known to me to be the Director of Seattle Public Utilities of The City of Seattle, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation,and for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation GIVEN under my hand and official seal this_day of 2004 Prmtname Notary Public in and for the State of Washington, residing at My commission expires 668G doe Page 3 of Exhibit E ATTACHMENT A That portion of Section 15,Township 22 North, Range 4 East, W M, in King County,Washington, described as follows Commencing at the west quarter corner of said Section 15, from which point the northwest corner of said section bears N01°11'45"E 2628 00 feet distant,and from which point the southwest corner of said section bears SO1°19'23"W 2630 04 feet distant, thence S89°51'38"E,along the east west center of section line of said Section 15,a distance of 897 77 feet, thence N24°44'21"W 53 34 feet, thence N20°12'27E 43 53 feet to a point on a 1340 00 foot radius, circular curve to the left,from which point the center of said curve bears N24°42'33"W,and the TRUE POINT OF BEGINNING of the herein described tract of land, thence northeasterly,along said curve,through a central angle of 2°23'31", an arc distance of 55 79 feet to a point of tangency, thence N62°53'56"E 54 79 feet, thence S27°06'04"E 22 52 feet, thence S62°53'52"W 136 24 feet to a point which bears S20°12'27"W from the TRUE POINT OF BEGINNING, thence N20°12'27"E 34 93 feet to the TRUE POINT OF BEGINNING Containing 2816 square feet or 065 acres, together with That portion of Section 15,Township 22 North,Range 4 East, W M , in King County, Washington, described as follows Commencing at the west quarter comer of said Section 15, from which point the northwest corner of said section bears N01011'45"E 2628 00 feet distant, and from which point the southwest corner of said section bears SO1°19'23"W 2630 04 feet distant, thence S89°51'38"E, along the east west center of section line of said Section 15, a distance of 897 77 feet, thence N24°44'21"W 53 34 feet, thence N200 12'27"E 43 53 feet to a point on a 1340 00 foot radius, circular curve to the left, from which point the center of said curve bears N24°42'56"W thence northeasterly, along said cure,through a central angle of 2°23'08",an arc distance of 55 79 feet to a point of tangency, thence N62°53'56"E 137 49 feet to the TRUE POINT OF BEGINNING of the herein described tract of land, thence continuing N62c53'56"E 218 27 feet to a point of tangency with a 1960 00 foot radius curve to the right, thence northeasterly,along said curve,through a central angle of 10°00'58", an are distance of 342 64 feet, thence S65°09'08"E 181 feet, thence S61°59'54"W 139 68 feet, thence S60050'45"W 343 27 feet, thence S74°24'16"W 79 16 feet, thence N27006'04"W 30 00 feet to the TRUE POINT OF BEGINNING Containing 17,644 square feet or 0 405 acres,together with That portion of Section 15,Township 22 North,Range 4 East, W M , in King County, Washington, described as follows Commencing at the west quarter comer of said Section 15, from which point the northwest corner of said section bears N01011'45"E 2628 00 feet distant, and from which point the southwest comer of said section bears SO1019'23"W 2630 04 feet distant, thence S89°51'38"E,along the east west center of 668G doc Page 4 of Exhibit E section line of said Section 15,a distance of 897 77 feet, thence N24°44'21"W 53 34 feet;thence • N2042'27"E 43 53 feet to a point on a 1340.00 foot radius,circular curve to the left,from-which point the center of said curve bears N24°42'56"W;thence northeasterly, along said curve,through a central angle of 2°23'08", an arc distance of 55 79 feet to a point of tangency, thence N62°53'56"E 355 76 feet, thence N27°06'04"W 40 00 feet to a point on a 2000 00 foot radius circular curve to the right from which point the center of said curve bears S27°06'04"E, thence northeasterly,along said curve,through a central angle of 21°37'36", an arc distance of 754.91 feet,thence N05'28'28"W 50 00 feet to the TRUE POINT OF BEGINNING, said point being on a 2050 00 foot radius,circular curve to the left from which point the center of said curve bears S05°28'28"E; thence southwesterly along said curve,through a central angle of 60 11'56",an arc distance of 22179 feet, thence N75°53'04"E 268.54 feet to the west line of the cast half of the northeast quarter of the northwest quarter of said Section 15; thence S00°51'59"W, along said west line,28 54 feet to a point that bears N84°31'32'E from the TRUE POINT OF BEGINNING,thence S84°31'32"W 40 98 feet to the TRUE POINT OF BEGINNING Containing 3012 square feet. 668G doc Page 5 of Exhibit E EXHIBIT F AFTER RECORDING MAIL TO City of Seattle Seattle Public Utilities Real Estate Services 700 5th Ave, Suite 4900 PO Box 34018 Seattle WA 981244018 Reference Number of Related Document N/A Grantor(s) City of KENT,a Municipal Corporation Grantee(s) City of SEATTLE,a Municipal Corporation Abbreviated Legal Description Portion of the Enos Cooper Donation Land Claim Number 38,in the NW ie of the SE'/+of Section 15,Township 22 North,Range 4 East,W M Additional Legal Description is on Page(s) 4 of Document Assessor's Property Tax Parcel or Account No All of Tax lot 0002000022 and the benefited area 7260200115, 1522049009, 1522049002,0002000005,0002000023,000200000 1,0002000003 or portions thereof Project- South 228'h Street Extension, South Parcel QUIT CLAIM DEED WITH RESTRICTION Grantor, THE CITY OF KENT, a Washington municipal corporation, for and in consideration of Ten Dollars (S10 00) and mutual benefits derived, receipt of which is hereby acknowledged, conveys and quit claims to Grantee, THE CITY OF SEATTLE, the real estate, including any improvements therein and any after acquired title, situated in the County of King, State of Washington, and descnbed in Attachment A attached and made a part hereto (the "Property") SUBJECT TO THE FOLLOWING. 1. NOTICE GRANTEE ACKNOWLEDGES THAT IT HEREBY IS PLACED ON NOTICE THAT THE PROPERTY HEREIN CONVEYED IS WITHIN THE FORMER KENT HIGHLANDS LANDFILL,A SITE THAT HAS BEEN PLACED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ON THE NATIONAL PRIORITIES LIST OF "SUPERFUND" SITES 673G Page 1 of Exhibit F Any future deed to transfer all or any portion of the Property shall include the above-stated notice and this paragraph This notice provision shall run with the land, and shall be binding upon the Property and Grantee, its successors and assigns and shall inure to the benefit of Grantor, its successors and assigns. 2 ENFORCEMENT In the event of violation of the notice provision, Grantor shall be entitled to all remedies at law or in equity to enforce the notice provision, including without limitation bringing an action for injunctive relief or specific performance, it being recognized that monetary damages may not provide an adequate remedy to Grantor. IN WITNESS WHEREOF,Grantor has caused this instrument to be executed by its proper officers this_day of 12004 THE CITY OF KENT Jim White, Mayor STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of , 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Jim White,known to me to be the Mayor of The City of Kent,the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, and for the uses and purposes therein mentioned,and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation WITNESS my hand and official seal hereto affixed the day and year first above written Print name: Notary Public in and for the State of Washington, residing at My commission expires• 673G Page 2 of Exbib¢F ACCEPTANCE I, Chuck Clarke,Director of Seattle Public Utilities of The City of Seattle, certify that the interest in real property conveyed to The City of Seattle, a Washington municipal corporation, by this Quit Claim Deed with Restriction dated is hereby accepted on behalf of The City of Seattle, pursuant to the authority conferred by Ordinance Dated , 20 THE CITY OF SEATTLE Chuck Clarke,Director Seattle Public Utilities STATE OF WASHINGTON ) ) ss COUNTY OF KING ) On this day of 200, before me, the undersigned, a Notary Public inand for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke, known to me to be the Director of Seattle Public Utilities of The City of Seattle, the municipal corporation named in and which executed the foregoing document, and stated on oath that he was authorized to execute the foregoing document on behalf of said municipal corporation and signed the same as the free and voluntary act and deed of said municipal corporation for the uses and purposes therein mentioned WITNESS my hand and official seal hereto affixed the day and year in this certificate above written Print Name NOTARY PUBLIC to and for the State of Washington, residing at My commission expires 673G Page 3 of Exhibit F ATTACHMENT A THAT PORTION OF THE ENOS COOPER DONATION CLAIM LYING WITHIN THE SOUTHEAST QUARTER OF SECTION 15, TOWNSHIP 22 NORTH, RANGE 4 EAST, W M, KING COUNTY, WASHINGTON,DEFINED AS FOLLOWS BEGINNING AT A POINT OF INTERSECTION WITH THE CENTERLINE OF KENT-DES MOINES HIGHWAY AND THE SOUTH LINE OF THE NORTH HALF OF SAID SUBDIVISION, THENCE SOUTHEASTERLY ALONG SAID CENTERLINE A DISTANCE OF 135 48 FEET, THENCE NORTH 62030'00"EAST 30 FEET TO THE TRUE POINT OF BEGINNING, THENCE CONTINUING NORTH 62030'00"EAST 525 FEET, THENCE NORTHWESTERLY ON A CURVE TO THE LEFT AND RUNNING PARALLEL WITH THE PROPOSED NORTHEASTERLY MARGIN OF STATE ROUTE 516(AS SHOWN ON THAT CERTAIN MAP DATED MAY 8, 1969, SHEET 2 OF 11 SHEETS, JUNCTION STATE ROUTE 5 TO JUNCTION STATE ROUTE 167 MILEPOST-2 21 TO MILEPOST 4 83)TO THE WEST LINE OF SAID DONATION CLAIM, THENCE SOUTH ALONG THE WEST LINE OF SAID DONATION CLAIM TO THE CENTERLINE OF SAID HIGHWAY, THENCE SOUTHEASTERLY TO A POINT WHICH BEARS SOUTH 62030'00" NEST FROM THE TRUE POINT OF BEGINNING, THENCE NORTH 62030'00" EAST 30 FEET TO THE TRUE POINT OF BEGINNING, EXCEPT THAT PORTION DEFINED AS FOLLOWS BEGINNING AT A POINT OF INTERSECTION OF THE WEST LINE OF THE COOPER DONATION CLAIM WITH THE NORTH MARGIN OF SSH 5A (KENT-DES MOINES HIGHWAY) BEING THE TRUE POINT OF BEGINNING OF EXCEPTION HEREIN DESCRIBED, THENCE NORTH ALONG SAID DONATION CLAIM LINE 450 FEET, THENCE EAST AT RIGHT ANGLES TO SAID DONATION CLAIM LINE 400 FEET, THENCE SOUTH PARALLEL WITH THE WEST LINE OF SAID DONATION CLAIM LINE 220FEET, THENCE SOUTH 360 WEST 440 FEET MORE OR LESS TO NORTHERLY MARGIN OF SSH 5A, THENCE NORTHWESTERLY ALONG THE NORTHERLY MARGIN OF SSH 5A TO THE TRUE POINT OF BEGINNING OF EXCEPTION HEREIN DESCRIBED, AND ALSO EXCEPT THAT PORTION LYING SOUTHERLY OF SAID NORTHEASTERLY MARGIN 673G Page 4 of Exhibit F OF SAID STATE ROUTE 516, 673G Page 5 of Exhibit F E X HI B I T G EARNEST MONEY PROMISSORY NOTE $ 1 0 0 0 0 0 0 ( TEN THOUSAND AND NO! 1 0 0 DOLLARS ) FOR VALUE RECEI VED , t he CI TY OF KE NT , a mu n i c i p a I c o r p o r a t i o n o r g a n 1 z e d u n d e r t h e I a ws o f t h e S t a t a o f Wa s h i n g t o n ( " KE NT " ) , a g r e e s t o p a y t o t h e o r d e r o f P a c i f i c No r t h we s t T i t I e Co in a n y o f Wa s hi n g t on ( " T1 t 1 e Company " ) t he s u m o f t e n t h o u s a n d d o 1 1 a r s ( $ 1 0 , 0 0 0 0 0 ) , wi t h 1 n t we n t y - o n e ( 2 1 ) c a I e n d a r da ys f of 1 owi ng mu u a I a x e c ut i on of t ha t c e r t a n a g r e e me n t b e t we e n KE NT a n d T HE CITY OF SEATTLE entitled " Master Agreement for Real Property and E n v i r o n m e n t a 1 F a c i 1 i t i e s " a nd d a t e d _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 0 4 ( t h e " A T e e me n t " ) . T h i s No t o 1 s evidence of KENT ' S obligation to pa y Ea r n e s t Mone y u n d e r s a i d Ag r e e me n t . KE NT ' S f a i I u r e t o p a y t h e E a r n e s t Mo n e y s t r i c t l y a s a b o v e s h a I 1 c o n s t i t u t a d e f a u I t o n a rC O m O � a 1 0 a o a lu 10 3 iW 1w I 1a I to G I � IL m F 1 0 .• I Do+ u , y u 1uu Oo Q O I o F I o m [A I T n a ? x > w 1 a I H r z u IA3u a I - u iExhibit H Environmental Facilities 1. Gas Probes and Monitoring Wells. No later than September 1, 2004, Kent shall decommission nmeteen(19) of Seattle's gas probes and monitoring wells and install two (2) gas probes on property to be transferred to Kent under this Agreement, approximate locations are shown on Figure H-1 of this EXHIBIT. A. Five(5) probes and wells KMW-6, KGW-201,KGW-204, KGW-206 and KGW-207 may be decommissioned by perforating and pressure grouting because the diameters of the casmg are large enough for injecting grout (See WAC 173-160) B. Fourteen (14) probes and wells shall be drilled out and grouted because they either have multiple well completions within a single borehole, the probe diameter is too small for injecting grout, or there is no well log available to confirm completion information (See WAC 173-160) These probes and wells are as follows• KGH-2 KGP-32 KGP-34 KGP-37 KGP-3 8A KGP-39 KGP-41 KGP-42 KGP-43 KGW-202 KGW-203 KGW-208 KGP-45 KGP-47 C. New probes KGP-32A and KGP-38B shall be installed. These probes have multiple completions within each borehole Each completion of each probe shall be placed within a single borehole (see WAC 173-160), at or near the locations shown on Figure H-1 as KGP-32A and KGP-38B. Replacement probes shall be placed m the same geologic unit as the existing probes D. The following requirements shall apply to the decommissioning and/or installation work specified in section 1 A through 1 C of this EXHIBIT H (1) The decommissioning and installation work shall follow the Minimum Standards for Construction and Maintenance of Wells,Chapter 173-160 WAC (Revised September 2, 1998) (2) A well contractor hcensed in the State of Washington shall complete the decommissioning and installation work(see WAC 173-162-040) Page I of Exhibit H (3) The decommissioning and installation work shall be s upervised b y a professional geologist or hydrogeologist licensed in the State of Washington (4) Upon completion of the work, the well contractor must submit a well report documenting the decommissioning or installation to the Department of Ecology (see WAC 173- 160-420-10),with a copy to Seattle (5) References to the Washington Administrative Code in this Exhibit H shall be deemed to set immmum standards for the work described in section 1; Kent and its contractor(s) shall be responsible for compliance with all other applicable laws and regulations (6) Completed well logs with as-built depths and survey coordinates shall be submitted to the City of Seattle and all new gas probes shall be tested for a period of six months prior to final acceptance by the City of Seattle 2. Relocation of Leachate Line A- The parties acknowledge that completion of Kent's Project necessitates the relocation of portions of a Seattle force main located on the east and west sides of the Green River; the force main conveys ieachate from the Landfill to the King County sewer treatment plant(the "Leachate Line'). The Leachate Line east and west of the Green River will be relocated by Kent • as required to construct the S 2280'Street Extension Seattle wishes to relocate the Leachate Line from under the river, and attach it to the proposed Green River Bridge Kent agrees to relocate the Leachate Line and cap and abandon the existing crossing as part of the overall property transaction. Portions of the Leachate Line cast of the Green River will not be affected by Kent's Project and will remain within the South 228t'Street right of way east of the Green River B Seattle shall be responsible for the design of and obtaining State of Washington permits (if necessary) for, the new river crossing of the Leacbate Line Kent shall be responsible for obtaining construction permits for,and construction and installation of,the temporary portion of the relocated Leachate Line and the permanently relocated Leachate Line Such constmction and installation shall be in accordance with the following requirements: (1) For temporary material,pipe and fitting shall be PVC, Schedule 40,or equivalent. (2) For permanent material,pipe and fitting shall be ductile iron("DI") DI pipe and fittings shall conform to AWWA C151, C152 with cement mortar lining conforming to AWWA C-104. Joints shall be either mechanical or push-on joints Flanged joints shall not be allowed in buried ground. All DI pipe and fitting shall have 8MIL thick polyethylene encasement per ANSJ/AWWA/CI05/A21.5 Method A if clay or organic material is encountered in the pipe trench. Page 2 of Exhibit H i (3) Both temporary and permanent lines shall be restrained in accordance with City of Seattle Standard Plan#330&331 (4) Other than bends required for pipes to cross the bridge,bends shall not exceed 11 degrees (5) Horizontal angle points and vertical grade shall be constructed by deflecting pipe joints,unless otherwise specified. (6) Before any digging,all utility locations shall be verified `Before You Dig"shall be called two days in advance for field location (7) Typical pipeline trench shall be per Seattle Standard Plan No 284 (8) All blocks shall have thrust restrained joints or concrete thrust blocking as agreed upon by Kent and Seattle on the final construction plans. (9) There shall be no field change to the design without the prior written approval by the Seattle Public Utilities Design Engineer. Verbal and written notice will be sent to Jeff Neuner and Phil Woodhouse. (10)Any utilities encountered during construction shall be fully supported • (11)When required by law,Kent's Leachate Line contractor shall submit a shoring plan for the approval of Kent's Design Engineer at least one week prior to the start of excavation. C. Kent shall complete the permanent relocation of the Leachate Line no later than December 31, 2006. 3. Cost of Work on Environmental Facilities. Kent shall be solely responsible for all costs incurred by it in connection with the work on Environmental Facilities described in sections 1 and 2 of this Exhibit H, except that Seattle shall reimburse Kent for the costs of decommissioning KGW-206, KGW-207 and KGP-47 when such work has been completed and approved by Seattle Seattle shall make reimbursement within thirty (30) days of receipt of an invoice for such work, documented. to Seattle's reasonable satisfaction. Seattle shall be solely responsible for all costs incurred by it in connection with the design, permitting, and inspection during construction of the Environmental Facilities 4. Ownersbip of Environmental Facilities. Kent and Seattle agree that, until abandoned or decommissioned in accordance with this EXHIBIT H,all Environmental Facilities are and shall be the property of Seattle. Upon the relocation of Environmental Facilities in accordance with this EXHIBIT H, such relocated facilities shall be the property of Seattle. The parties further agree to execute such documents as may be deemed necessary by either party to evidence Seattle's ownership of such relocated facilities Page 3 of Exhibit H 5. Amendments of Other Documents Seattle and Kent agree (a) on the date of this 46 Agreement, to amend the Agreement for Transport of Leachate through the City of Kent to Metro's West Valley Interceptor Sanitary Sewer System between the parties, dated March 24, 1977, to conform that agreement to the rights and obligations of the parties set forth in this Exhibit H and(b) when the work on gas probes and monitoring wells described in section I has been completed,to amend the legal descriptions of S cattle's reserved easements in the deeds conveying the Seattle Property to Kent to reflect the decommissioning and abandonment of the Environmental Facilities identified in sections LA and I B of this EXHIBIT H and to include new well 38B and,if relocated on property conveyed to Kent,32A. 6. I ndemnification. K ent shall indemnify, defend and hold Seattle and its officers, employees and agents, harmless against any loss, damages, liability, claan, demand or cost of any nature whatsoever (each, a "Loss"), including without limitation any Loss relating to environmental clean-up actions or violations of federal, state or local environmental laws, resulting from injury or harm to persons or property that may anse as a direct or indirect consequence of any act or omission by Kent, its employees, agents, contractors, subcontractors, licensees or invitees with respect to Kent's activities or obligations under this Exlubrt H, including without limitation failure of any of the Environmental Facilities installed by Kent hereunder for a period of one year,provided, that this indemnity shall not extend to any Loss to the extent caused by the negligence of Seattle. Kent expressly waives any immutnty or protection that might be available to it under the Washington State Industrial Insurance Act, Revised Code of Washington Title 51. This waiver has been mutually negotiated by the parties Initialed by Seattle Kent 7. Insurance. Kent shall require its contractor(s) that perform work on the Environmental Facilities to name Seattle as an additional insured on all insurance policies required by Kent and, upon request, Kent shall provide Seattle with evidence thereof acceptable to Seattle 8. Conformity with Law. All actions taken by Kent hereunder shall be stnctly in accordance with all applicable federal, state and local laws and regulations, including without lun Cation environmental laws. 9. Successors and Assigns. Kent shall not assign, apportion or otherwise transfer its rights or obligations hereunder without the prior written approval of Seattle 10. Default and Remedies. If Kent violates any term or condition of this Exhibit H, Kent will have fourteen(14) days after receipt of notice of violation to cure the specified breach or default, or such longer period as is reasonably necessary to effect such cure if cure cannot be accomplished within such fourteen day period, so long as such cure has been commenced within such fourteen day period and is being diligently pursued. If Kent has not cured the violation in Page 4 of Exhibit H accordance with the previous sentence,an Event of Default shall have occurred, and Seattle may seek all remedies available in law or equity. 11. Additional Terms. This EXHIBIT H is part of the Agreement Sections 14, 16, 17, 18, 19, 21, 22 and 23 of this Agreement, and all other sections of the Agreement that reasonably maybe interpreted to apply,shall be deemed to apply to this EXHIBIT H 12. Notices. All notices, reports and approvals required in connection with this Exlubtt H s hall b e i n w nting a nd d eemed t o h ave b een d my given i f p ersonally d ehvered o r s ent b y United States mail or overnight delivery service, each with proof of receipt, to the addresses shown below or as otherwise indicated in written notice from one party to the other If to Seattle If to Kent: City of Seattle City of Kent Seattle Public Utilities 220 Fourth Avenue South 8100 Second Avenue South Kent,WA 98032-5895 Seattle, WA 98108 Attu, Engnneenng Department Attn Jeff Neuner FAX:253-856-6500 FAX: 206-233-2629 • Page 5 of Exhibit H a /J yy �Qg pg pQp� 1� ' o „Qo o= r _Mii.nc �i EXHIBIT I t �� �.--�. �,•_.,.:tom, CITY OF SEATTLE PROPERTY « � SITE MAP l`•= nrm•cam uo,murc cam+r ' �..�. C=� wuwr CITY OF EMNT °i�` av'r c bwr •— - — --' aw«ua,r �«.«niiwr a.: I EXHIBIT J Amendment to Agreement For Transport Of Leachate Through The City Of Kent To Metro's West Valley Interceptor Sanitary Sewer System This Amendment to Agreement For Transport Of Leachate Through The City Of Kent To Metro's West Valley Interceptor Sanitary Sewer System(the"Amendment")is entered into as of , 2004,between the City of Kent, a municipal corporation of the State of Washington("Kent') and The City of Seattle, also a municipal corporation of the State of Waslungton("Seattle") WHEREAS,on March 24, 1977, Seattle and Kent entered into an agreement entitled Agreement For Transport Of Leachate Through The City Of Kent To Metro's West Valley Interceptor Sanitary Sewer System (the"1977 Agreement"), and WHEREAS,the 1977 Agreement allowed Seattle, among other thmgs,to construct, operate,maintain,repair and replace a leachate sewer line and appurtenant facilities within the rights of way of Frager Road,Russell Road, Taylor Road and South 228,b Street, all within the corporate limits of Kent; and WHEREAS,Kent is undertakmg its South 228 h Street Extension Project(the"Project"), which Project includes the construction of a bridge for South 228`s Street over the Green River(the`Bridge");and WHEREAS,the Project requires the relocation of the Leachate sewer line crossing of the Green River and also certain portions of said line east of the Green River, and WHEREAS,Kent and Seattle desire that the river crossing be accomplished by the construction and installation of a new lachate sewer line and appurtenances underneath, and suspended from,the Bridge, and WHEREAS,the parties' responsibilities for the design,construction and installation of such relocated Leachate sewer line and appurtenances, and payment of the costs thereof, are addressed in the Master Agreement for Real Property and Environmental Facilities between the parties,of even date herewith(the"Master Agreement"); and WHEREAS,Kent and Seattle desire to amend the 1977 Agreement to confirm Seattle's right to operate, maintain,repair and replace said Leachate sewer line and appurtenances as relocated to the Bridge,and to clarify the relationship between the Master Agreement and the 1977 Agreement with respect to the relocation of said Leachate sewer line and appurtences , NOW, THEREFORE,in consideration of the requirements of the Master Agreement and the mutual benefits to be derived from the Project, and maintaining the 1977 Agreement wholly intact except as specifically stated herein, Seattle and Kent agree as follows- Page I of Exhibit J I Section 1 b)of the 1977 Agreement Section 1 b)of the 1977 Agreement is hereby amended and now reads as follows: Kent hereby authorizes Seattle to construct, operate,maintain, repair and replace said leachate sewer line and required appurtenant facilities within the rights of way of Frager Road,Russell Road,Taylor Road,and South 228th Street including the Bridge, all withm the corporate limits of Kent, subject to the terms and conditions set forth herein 2 Section 4 of the 1977 Agreement The first three lines of the second paragraph of Section 4 of the 1977 Agreement are hereby amended and now read as follows. The terms and conditions of the use and occupancy of the rights of way of Frager Road,Russell Road,Taylor Road,and South 228`i`Street including the Bridge in the City of Kent by Seattle under authonty of this agreement shall be as follows 3 Section 8 of the 1977 Agreement. Section 8 of the 1977 Agreement is hereby amended and now reads as follows: If,during the term of this agreement,Kent determines to vacate any portion of the rights of way over Frager Road,Russell Road, Taylor Road and/or South 228a'Street(including the Bridge)that are covered by this agreement,Kent shall,prior to the legal vacation of the right of way,provide Seattle with easements conveying a 20-foot wide right of way for the purpose of operating, maintaining,repairing and reconstructing the leachate sewer facilities 4 Remainder of 1977 Agreement The 1977 Agreement remains fully intact, unaltered, and unchanged,except as expressly set forth above in sections 1, 2, and 3 of this Amendment and as follows the parties intend and agree that(a)the terms of the Master Agreement(and not the 1977 Agreement)shall govern the parties'responsibilities for the relocation of the leachate sewer]me as described in the Master Agreement and(b) Seattle's indenuvfication of Kent in the second paragraph of section 10 of the 1977 Agreement shall not apply to the construction or installation of said relocated leachate Page 2 of Exhibit J isewer line IN WITNESS WHEREOF,the parties hereto have executed this Amendment as of the day and year first above wntten. CITY OF KENT By Mayor ATTEST By City Attorney THE CITY OF SEATTLE • By Director, Seattle Public Utilities i Page 3 of Exhibit J EXHIBIT K AFTER RECORDING RETURN TO Property Management City of Kent 220 4th Avenue South Kent WA 98032 GRANTORS) City of Seattle GRANTEE(S).City of Kent ABBREVIATED LEGAL DESCRIPTION Portion of the Enos Cooper Donation Land C1aunNumber 38,in E% of SE`/.of Section 15,Township 22 North,Range 4 East,W M ADDITIONAL LEGAL DESCRIPTION IS ON PAGE 5 OF DOCUMENT ASSESSOR'S PROPERTY TAX PARCEL NO Portions of the following tax parcels 1522049001,0002000010,and the benefited area 7260200115, 1522049008, 1522049002, 0002000005, 0002000022, 0002000023, 000200000 1, 0002000003 or portions thereof PROJECT NAME: South 228ffi Street Extension PUBLIC ACCESS AND UTILITY EASEMENT AGREEMENT GRANTOR,THE CITY OF SEATTLE,a Washington municipal corporation,for and in consideration of Ten Dollars($10 00) and other valuable consideration,receipt of which is hereby acknowledged by Grantor, conveys and quit claims to the CITY OF KENT, a Washington municipal corporation ("Grantee"), a public access and utility easement for the installation, operation,inspection,maintenance,extension,construction,alteration,reconstruction and repair of public access areas and facilities and utilities, including vehicular access,pedestrian access to the Green River, and recreational uses (the "Purposes'), over, across and upon the currently existing surface of the real property situated in King County,Washington and described in Attachment A and made apart hereto (the"Easement Area') SUBJECT TO THE FOLLOWING: 1. Grantee acknowledges that it hereby is placed on notice that the property subject to this Public Access and Utility Easement Agreement(the"Easement Agreement')is within the former Kent Highlands Landfill(the"Landfill'),a site that has been placed by the United States Environmental Protection Agency on the National Priorities List of"Superfund"sites and by the State of Washington on its list of hazardous sites and is the subject of a Consent Order dated May 26, 1987, as amended, a Deed Notice of Consent Order, filed June 26, 1987, and a Restnctive Covenant filed February 10, 1999 (Recording Number 19902100823). Use of the Easement Area is subject to the restrictions stated therein and all State of Washington Page 1 of Exhibit K Department of Ecology("Ecology')requirements. 2. Grantee shall have the right,without prior institution of suit or proceeding at law,at times as may be necessary,to enter upon the Easement Area with the necessary equipment far anyof the Purposes of the Easement,without incurring any legal obligation or liability for the entry,but subject to all condihons,requirements and mdemmfications in this Easement Agreement Grantee's utilities,if any,shall be located above the currently existing surface within clean fill materials to be imported by Grantee.Grantee shall be responsible for all costs ofGrantee's facilities and all costs for adjustment or alteration of Grantee's facilities in accordance with Section 3. "Grantee's facilities" means facilities or improvements installed by Grantee within the Easement Area subsequent to the date upon which this Easement is conveyed. Grantee shall be responsible for maintaining the Easement Area, including Frager Road. Grantee shall at all times exercise its rights under this Easement Agreement in accordance with the requirements of all applicable statutes,orders,rules and regulations of any public authority having jurisdiction 3. A. Except as provided in Section 3B, Grantor shall retain the right to use the surface and subsurface of the Easement Area so long as that use does not unreasonably or permanently interfere with the Purposes described in this Easement Agreement B. Notwithstanding Section 3A, Grantor retains, in its ownership of the underlying fee,the right to permanently or temporarily interfere with Grantee's use of the Easement Area to insure regulatory compliance relating to the Landfill, including without limitation, inspection, operation, maintenance, repair and replacement of any gas probes, monitoring wells, storm water facilities,leachate lines or other facilities,and any"remedial action," as defined in the Model Toxics Control Act("MTCX),RCW 70.105D 020(21) Grantor,its employees and agents shall have the right, without prior notice, at such time as it may determine, to enter upon the i Easement Area,without incurring any legal obligation or liability therefor In the event that Grantor shall so enter the Easement Area,Grantor shall- (i)notify Grantee at least thirty(30) days prior to beginning any activity on the Easement Area that disturbs the surface of the ground or, in the event of an emergency,notify Grantee as soon as practicable and(n)perform all activities on the Easement Area in accordance with applicable laws and regulations. Except as stated herein,this easement is not intended to impose any legal or other responsibility on Grantor All alterations, moving or adjustment of Grantee's facilities necessitated by remedial actions as defined in MTCA under applicable statutes,orders,rules and regulations of any public authority having junsdiction shall be performed by Grantee at no cost to Grantor. 4 Plus Easement Agreement and any rights granted to the Grantee hereunder may not be assigned without the prior written consent of the Grantor. 5 This Easement Agreement shall be a covenant running with the land,and shall bind Grantee's successors and assigns and all future owners of the real property affected by this Easement Agreement. Page 2 of Ddabit K 6. To the extent permitted by law,Grantee releases,indemnifies and promises to defend and save harmless Grantor,or any affiliate of Grantor,from and against any and all liability,loss, damage, expense, actions, and claims,including costs and reasonable attorney's fees incurred by Grantor in connection with, ansing directly or indirectly on account of or out of the exercise by Grantee, its servants, agents, employees and contractors of the rights and Purposes granted in this Easement Agreement Provided, however, Grantee's indemnification shall not apply to liability ansing from the hazardous substance conditions that exist on the Easement Area as of the date ofthis Easement Agreement and that are unrelated to the exercise by Grantee, its servants, agents, employees and contractors of the rights and Purposes granted in this Easement Agreement. Grantor does hereby release,indemnify and promise to defend and save harmless Grantee from and against any and all liability, loss, damage, expense actions and claims, including costs and reasonable attorney's fees incurred by Grantee in connection therewith,ansing directly or indirectly on account of the hazardous substance conditions that exist on the Easement Area as of the date of this Easement Agreement unrelated to the exercise by Grantee, its servants, agents, employees and contractors of the rights and Purposes granted in this Easement Agreement, except as otherwise provided in settlement agreements or orders entered into by Grantor and Grantee related to the Kent Highlands Landfill prior to the date of this Easement Agreement. 7. In the event of violation of the notice provision or the reservations and restrictions contained in this Easement Agreement,Grantor shall be entitled to all remedies at law or in equity to enforce the notice provision, restrictive covenant, reservations and restrictions, as applicable, including without limitation bringing an action for injunctive relief or specific performance,it being recognized that monetary damages may not provide an adequate remedy to Grantor. Dated this day of 2004 THE CITY OF SEATTLE By. Chuck Clarke, Director Seattle Public Utilities THE CITY OF KENT By: Page 3 of Exhibit K STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Chuck Clarke,known to me to be the Director of Seattle Public Utilities of The City of Seattle, the municipal corporation that executed the foregomg instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation,and for the uses and purposes therein mentioned,and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation. WITNESS my hand and official seal hereto axed the day and year first above written Print name. Notary Public in and for the State of Washington,residing at My commission expires STATE OF WASHINGTON) )ss COUNTY OF KING ) On this day of 2004, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared ,known to me to be the of The City of Kent, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation,and for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument and that the seal affixed is the corporate seal of said municipal corporation WITNESS my hand and official seal hereto affixed the day and year first above written. Print name: Notary Public in and for the State of Page 4 of Extubit K Washington,residing at My commission expires. Page 5 of Exhibit K . ATTACHMENT A A strip of land,60 00 feet in width,witlun the Enos Cooper Donation Land Claim No 38 in Section 15, Township 22 North,Range 4 East,W M,in King County,Washington,said strip of land having 30 00 feet on each side of the following described centerline Commencing at the south quarter corner of said Section 15,from which point the southwest comer of said Section bears S89°35'24"W, thence S88°59'57"E 264152 feet to the southeast corner of said Section 15 as shown on that certain Record of Survey in Volume 113 of Surveys,page 290,under King County Recording No 9703199001,thence N88°59'57"W,along the south line of the southeast quarter of said Section 15, a distance of 214 50 feet,thence NO 1000'03"E 221 76 feet to the southeast comer of the Enos Cooper Donation Land Claire No 38 as shown on said survey, thence NO2°07'48"E,along the east line of said donation land claim,78 78 feet,thence N50'5 1'27"W 40 34 feet,thence N50036'59"W 93 92 feet, thence N57°09'36"W 94 03 feet thence N61°44'57"W 90 44 feet, thence N58°59'36"W 9109 feet, thence N52°16'40"W 94 81 feet,thence N39°05'19"W 81 18 feet to the north line of the south 408 00 feet of said donation land claim and the TRUE POINT OF BEGINNING of the herein described strip of land, thence continuing N39°05'19"W 17 72 feet,thence N19°34'15"W 83 70 feet,thence NO8°l6'53"W 41 12 feet,thence NOG°07'32"E 44 46 feet,thence N06°O1'27"E 63 76 feet,thence NI 191'17"E 78 27 feet, thence N22°05'50"E 49 52 feet,thence N23°15'12"E 44 44 feet,thence N29°18'06"E 45 04 feet,thence N39009'03"E 289.07 feet, thence N37°43'44"E 52 39 feet, thence N30023'18"E 53 48 feet, thence N17036'10"E 50 77 feet, thence N08007'14"E 23 50 feet,thence N04056'12"E 3126 feet,thence N00013'23"W 54 73 feet, thence N06042'12"W 53 86 feet,thence N18037'35"W 68 39 feet,thence N350 16'09"W 62 00 feet,thence N47°02'11"W 52 61 feet,thence N52°14'20"W 46.91 feet, thence N55037'56"W 106 98 feet,thence N56°23'20"W 298 79 feet, thence N54044'11"W 118 09 feet,thence N46053'09"W 106 89 feet,thence N22023'38"W 82 34 feet,thenceN08°58'02"W 96 03 feet,thence N04057'36"W 97 42 feet,thence N03013'13"W 95 04 feet,thence NOl°42'29"W 98 09 feet,thence N000 15'S4"E 20 54 feet to the east-west center of section line of said Section 15 and the terminus of the herein described centerline The sidelines of said strip shall be extended or shortened,as required,to meet at angle points,the north line of the south 408 00 feet of the Enos Cooper Donation Land Claim No 38 and the east-west center of section line of said Section 15 Together with that portion of said donation land claim lying north of the south 408 00 feet thereof;south of the east-west center of section line of said Section 15,east of the above described 60 00 foot strip and west of the Green River Page 6 ofExlubitK CITY OF SEATTLE - CITY OF KENT AGREEMENT FOR TRANSPORT OF LEACHATE THROUGH THE CITY OF KENT TO METRO'S WEST VALLEY INTERCEPTOR SANITARY SEWER SYSTEM THIS AGREEMENT dated this 24th day of March , 1977, between the CITY OF KENT, a municipal corporation of the State of Washington, hereinafter called "Kent," and the CITY OF SEATTLE, a municipal corporation of the State of Washington, hereinafter called 'Seattle.' WITNESSETH: WHEREAS, Seattle's Solid Waste Utility has been operating a sanitary land- fill in Kent on the hillside west of the Green River, between Frager Road and iMilitary Read, northeasterly of the Kent-Des Moines Road (SR 516), and WHEREAS, the operation of said landfill has resulted in the generation of contaminated runoff waters from the landfill site hereinafter called "leachate," and WHEREAS, said waters presently drain or are deposited into the Green River,,' „ a vital part of the eco-system of Kent and the area known as the Green River Valley, and WHEREAS, Seattle has been directed by the State of Washington Department of Ecology (DOE) to eliminate discharge of leachate into the Green River in a timely manner, and WHEREAS, Seattle has agreed with the DOE that the most effective way of accomplishing the elimination of the discharge of leachate to the Green River is to construct a facility to collect said leachate at the site of the land- fill and transport said leachate directly to the Municipality of Metropolitan Seattle's (METRO) West Valley Interceptor, and WHEREAS, METRO, under the terms of an existing local agreement with Seattle, will bill all charges for sewer services and high strength waste discharge dir- ectly to Seattle, and will hold Seattle responsible for any further pre-treat- ment necessary to meet Federal and State requirements, and WHEREAS, it will be necessary for Seattle to construct a leachate sewer . line from the landfill site to the METRO West Valley Interceptor, said construc- tion to occur within Kent's corporate limits and street rights-of-way, and WHEREAS, Seattle's Solid Waste Utility or its successor shall be responsible for continued maintenance of said leachate collection and transport facilities for so long as the leachate sewer line remains in operation, and WHEREAS. the planning for said leachate facilities requires continued cooperation between Seattle and Kent in terms of compiling engineering data, feasibility studies, environmental impact assessments, public hearings, shore- line management permits, river crossing permits, and construction permits for the construction, operation and maintenance of the leachate sewer facilities, and WHEREAS, under the terms of an existing agreement between METRO and Kent, direct discharge to the METRO System must meet Kent's approval and be so documented; NOW THEREFORE, in consideration of the mutual benefits to be derived from development of the project, and in consideration of the terms, conditions, covenants and performances contained herein, Seattle and Kent agree as follows: Section 1. General Provisions a) Kent hereby approves Seattle's proposal to collect leachate flowing from the sanitary landfill and to transport the leachate through a leachate sewer line from the landfill site to the Municipality of Metropolitan Seattle (METRO) West Valley Interceptor located at South 228th Street and the West Valley Road. b) Kent hereby authorizes Seattle to construct, operate, maintain, re- pair and replace said leachate sewer line and required appurtenant facilities within the rights of way of Frager Road, Russell Road. Taylor Road and South 228th Street, all within the corporate limits of Kent, subject to the terms and conditions set forth herein. c) Seattle will prepare all plans, specifications and estimat s; acquire all necessary rights of way; obtain all permits required b law, pre- pare funding applications to the State of Washington Department of Ecology (DOE), and the United States Environmental Protection Agency (EPA), in accordance with EPA/DOE Grant requirements; and obtain all necessary approvals from METRO. Section 2. Construction of leachate Sewer Line. Seattle agrees that it will design the facilities and will administer and inspect the construction of the leachate facilities generally described in Exhibit A attached hereto. -2- . The engineering plans and specifications for such facilities shall be approved by Kent in writing prior to their submittal to DOE. The contract for construc- tion of such facilities shall be let by Seattle and the inspection of construc- _tion shall be performed by Seattle. Seattle will pay all construction, right of way and engineering costs. Kent will review said plans and specifications in a timely manner so as to enable construction of the leachate sewer line in accordance with Order Docket No. DE 76-199 from the DOE, attached hereto as Exhibit C. Prior to commencing any construction work Seattle shall obtain all necessary permits from Kent and other agencies having jurisdiction and shall comply with the terms and conditions of those permits. Kent shall have the right to inspect and regulate the construction and shall keep a record of the permit and the work done thereunder. Seattle shall pay to Kent such amounts as are reasonably necessary to investigate and process any application for construction work, to inspect such work, and to plat such locations on the permanent records of Kent. Upon completion of construction, Seattle shall supply Kent with complete "As- Built" drawings of the leachate sewer line. Section 3. Connection to METRO Sewerage System. Upon completion of con- struction of the leachate sewer line shown on Exhibit B, Seattle shall connect same to the METRO Interceptor at the connection point designated on Exhibit B. Such connection shall be accomplished at the expense of Seattle and in accordance with the rules and regulations of METRO. Kent and Seattle agree that the facilities described an Exhibit A and Exhibit 8 shall be completed, connected and ready for operation by January 31. 1978, pro- vided that such date may be extended by any time consumed in excess of two months in obtaining necessary approvals by the Environmental Protection Agency, the Department of Ecology, the City of Kent, or other governmental agencies, or by any time consumed hereafter by acts of God, strikes, material shortages beyond the control of Seattle, its contractors, or In litigation or in legal procedure required as the result of litigation, which actually delays the authorization or construction of said facilities, or in litigation required to acquire the right of way therefor, Section 4. Operation, Maintenance, Use of Leachate Facilities. Immediately upon connection to the METRO Interceptor, Seattle shalt have the sole duty and obligation to operate, maintain, repair and replace the 1 eachate sewer facilities and shall have the exclusive right to use said leachate sewer line for the trans- • portation of leachate collected from Seattle's landfill site. 'Maintenance shall be understood to include inspection, cleaning and repair. Seattle shall exercise reasonable care, diligence and judgment in performing the work and shall in particular undertake preventative maintenance precautions wherever practicable. Seattle shall give Kent 24-hour prior notice of intent to perform any mainte- nance, repair, improvement or replacement work on the leachate sewer line or required appurtenant facilities located in Kent street rights of way, except that in emergency conditions Seattle shall take immediate appropriate action, and notice of action taken shall be given to Kent as soon as practicable consider- ing the seriousness of the emergency. The terms and conditions of the use and occupancy of the rights of way of Frager Road, Russell Road, Taylor Road and South 228th Street in the City of Kent by Seattle under authority of this agreement shall be as follows: 1. Seattle shall have the right to enter upon and occupy said street rights of way for the purposes of constructing, maintaining, im- proving, repairing and reconstructing the leachate setter line or appurtenant facilities and for placing any temporary leachate detour sewer line that may be required during maintenance, repair or reconstruction work, provided that: a) Seattle shall give Kent prior notification of the intent to use said streets, except in emergency conditions as provided for elsewhere in this agreement; b) Seattle shall first obtain all permits as may be required for any construction or reconstruction work; except in emergency conditions when Seattle shall take immediate appropriate action and obtain the necessary permits therefor as soon as practicable considering the seriousness of the emergency; c) Seattle shall, to the extent possible, keep said streets open to vehicular and pedestrian travel, access, ingress and egress; d) Seattle shall provide all necessary detours, flagmen, temporary traffic controls and other devices for pedestrian and vehicular safety in accordance with the U. S. Department of Transportation Manual on Uniform Traffic Control Devices for Streets and Highways, pursuant to Title 23, United States Code, and e) Seattle shall restore said street rights of way to at least their condition at the time of any of the construction or other _A_ activities contemplated in this section. 2. Kent shall notify Seattle of any construction work to be performed or authorized by kent in said street rights of way. — 3. Any new street or utility improvement performed or authorized by Kent in said street rights of way shall be designed, located and constructed so as to minimize, to the greatest extent possible, any need to relocate or otherwise disrupt the operation of any part of the leachate sewer facility. If at any time during the term of this agreement it becomes necessary to relocate the leachate sewer line, Seattle or its agent shall perform all relocation work. If the relocation work is required to accommodate a street, sanitary sewer, water, or storm drainage improvement, all costs directly associated with said relocation shall be borne by Seattle. If relocation of the leachate sewer facility is required to accommodate construction of any other utility facility or improvement all costs directly associated with the leachate sewer relocation work shall be borne by the utility, agency, company or party creating the need for relocation. Section 5. Fees, Service Charges and Costs. Seattle shall be responsible for the delivery to the Metropolitan Sewerage System of leachate collected from the landfill site, for the construction, maintenance and operation of the leachate collection, required pretreatment and transport fatalities, and for the payment of all costs incidental to the collection of such leachate and its trans- port to the Metropolitan Sewerage System, except as provided in Section 10, herein. All connection charges, user fees and/or service charges as required by METRO shall be paid by Seattle directly to METRO and Kent shall not impose any additional user fees or service charges of any kind on Seattle for the trans- port of leachate to the METRO Interceptor line. This liability and responsibility for the payment of all METRO charges by Seattle shall continue until such time as the line is abandoned or transferred pursuant to Section 9, herein, and shall remain an obligation of Seattle regard- less of whether or not Seattle has ceased landfill operations on the site. Section 6. Successors and Assigns, This agreement and each and all of the terms, conditions, provisions and covenants hereof shall be binding upon the parties hereto and upon their respective successors and assigns, except that Seattle shall not have the right to assign this Agreement or any of its -5- rights and obligations hereunder by voltmtary agreement without the written consent of Kent and neither party may terminate its obligations hereunder by dissolution or otherwise without first securing the written consent of the other party. This agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto. In the event that the responsibilities and obligations of Seattle's Solid Waste Utility for operating the Kent-Highlands landfill and the leachate collection and transport facilities are assumed by or transferred to another entity pursuant to law, then all responsibilities, obligations, privileges, liabilities and authorities as contained herein shall be assigned to that entity without the approval of Kent. Section 7. Use of Sewer Line for Conveyance of Leachate. This agreement does not authorize use of said ieachate sewer line for any purpose other than conveying leachate from the landfill to the METRO trunk. Seattle shall not use said ieachate sewer line to accept and/or transport sewage or waste from any person, firm, private corporation, water district or sewer district with- out amendment to this agreement and the written consent of METRO. Section a. Street Vacation. If, during the term of this agreement, Kent determines to vacate any portion of the rights of way of Frager Road, Russell Road. Taylor Road and/or South 228th Street, which are covered by this agreement, Kent shall, prior to the legal vacation of the right of way, provide Seattle with easements conveying a 20-foot wide right of way for the purpose of operating, maintaining, repairing and reconstructing the ieachate sewer facilities. Section 9. Abandonment or Transfer. At such future time as the leachate flow from the sanitary landfill becomes of such quality that it no longer represents a pollution problem according to Federal and State water quality standards, Seattle, upon approval from the appropriate water quality control agency and METRO, may cease collection of the leachate flow, and subject to such approvals, shall have the right to abandon, transfer or otherwise dispose of the leachate sewer line and appurtenant facilities, except, that Seattle shall not transfer ownership or convey any legal interest to said leachate line to any person, firm, corporation or utility without written consent from Kent and METRO. Seattle agrees to provide Kent with at least six months' advance notice of any intention to abandon, transfer or otherwise dispose of the said leachate -6- sewer line, with the City of Kent having right of first refusal For purchase of said leachate sewer line. Section 10. Indemnity. Kent shall indemnify and hold harmless Seattle from and against all claims, costs, demands, expense and liability for any injury or death or for any damage, loss or destruction of property, resulting from any damage to, or disruption of the leachate sewer facilities caused by the negligence of any employee or agent of Kent, and except as provided for in Section 4 (3) of this Agreement. Seattle shall indemnify and hold harmless Kent from and against all claims, costs, demands, expense and liability which may result directly from construction, repair, maintenance or operation of the leachate sewer facility. Seattle shall indemnify and hold harmless Kent from any liability or responsibility for non-compliance with Federal, State and 14ETRO regulations and standards for quality of the discharge from said leachate sewer line. Seattle shall comply with all laws and lawful regulations of Federal and State authorities regarding the collection, transport, discharge and treat- ment of leachate from the sanitary landfill site, including applicable regula- tions of METRO. Following construction of the leachate facilities, Seattle shall indemnify and hold harmless Kent against and from all fines and penalties, liability, loss, damage, claims, costs and expenses which may arise out of any failure by Seattle to comply with said laws and lawful regulations. Section 11. Waiver. No waiver by either party of any term or condition of this agreement shall be deemed or construed as a waiver of any other term or condition, nor shall a waiver of any breach be deemed to constitute a waiver of any subsequent breach whether of the sane or a different provision of this agreement. Section 12. Entirety. This agreement merges and supersedes all prior negotiations, representations and agreements between the parties hereto relating to the subject matter hereof and constitutes the entire contract between the parties. This agreement shall remain in full force and effect until Seattle has abandoned, transferred, assigned or otherwise disposed of said leachate sewer line as provided for herein. -7- IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written. CITY OF KENT l ' Mayor ATTEST: Cltj ie k Y ` CITY OF SEATTLE By l"'�Mayor� � ATTEST: City oG mptroTTerr ze p � F � SIX •:� r ,ilk �y r �y}i•,J�1� f ��t j�� f �� kk rf� ���•��?ne I I IF _- �t ,F i y-�j C ���� t 1•t � II i '� r< '.r rf- . tFTY_i �t• :%+emu, l�aJ py_�'�r i�`�}%. � �+•`'�_ -`�� ,t jj� f S 1'rtirb, � tf••fr•J t ut�,`ry+s4�a t f .• r. �.� , '�y m f.Jr... ;,� Yu-�f'71 s �y�, 3,�p.. j 1t;If •u Y�f• 4 If �. �f`m '.f�?t;;cN`k�,•t�?�•�%�1��'�Ij=•i"_'c:,., ,��Y 'i,�71 � � ' i'ci r���'�'aSr� �•',;t ZA � A`Trr �� h Jr, •r t,N •� tM fi •;:;m'r� ''D'� LlnTAH ,� r Pt i�W f x N ( r• t } 1 k rYl , o f Crr• H �u: • ° r tii lll� f �f `r fy r 1 •r ` '`t ,5 � f Ij rl IF r�'trf t"f�c T � �• t .r r� ' f � 4 IF Y41t, r lsa I' ,� •7 r y;tr � t y .0 �• it . Is ' DEPARTMEIlf OF ECOLOGY IiI iilE fIAiTER OF CO &LIAIICC BY } CITY OF SLIuTLC Ei:GLICLItIfl6 DEPT. ) (I'M11-III6IiLAIluS LAODFILL) ) OCDER with Chapter 90 4': RLII and the } Docket flu. DE 76-199 Rules and itcgulaLions of the ) Departnent of Ecology ) To City of Seattle Lngincering Department Seattle itunicipal Building Seattle, Ilashington 9u104 Cy Ilotice of Violation, dated May 7, 1976, this departpnent notified the City of Seattle Lnyineering Department of their failure to comply urth LundiLion S3.2 of ifPDLS Ilaste Discharge Permit No. IIA-U02976-9. A response to the notice of Violation was received on June 9, 197f,, and the content thereof wds considered in the formula-Lion of this Order. In view of the foregoing and in accordance with n.he provisions of RCII 90.43.12D IT IS ORUERCU THAT the City of Seattle sliall, upon receipt of this Order, take aoprupriate action in accordance uith the following instructions. Comply with Conditions S3 2 and S3,3 of iIPDES Haste Discharge Pen,nt No. IIA-001976-9 as wodificd herein. Condition S3.2 of tine pennit is amended to read as follows: "SuLnit plans and specifications for Part 1, suitable for bidding, and amended application to proceed from Step II to Step IIi for waste uatcr construction grant program not later than Harch 26, 1977." 1 Condition S3.3 of the permit is amended to read as follows. "Complete construction of Part 2 within 160 trorkinp days from the date of the Step III grant offer." This Order is issued under the provisions of RCII 90.48.120. Any per- son feeling aggrieved by the sane may obtain review thereof by application, within chirty (3U) days of receipt of this Order, to the Uashm}ton Pollu- tion Control Hearings Board under the provisions of Chapter 412113 RCII, and the rules and regulations adopted thereunder. DATED at Olympia, Ilashington, this y of August, 1976. 111i. Drucc !. Cm,;eran Assist"nt Director / Dcpart,nCnL o Ecology Stale a€ 1]asiiii;ton EXHIBIT C ��'r it I f. ,`�``�I -� 4➢ 1 - - - .,P-"1� � r% -%-ice -, _.-� �, '� ��,\tD.r � -ti .•fir �� � f / _ Z\ �•.�" "✓✓ - , 1- f �_} 1�\ J `OOP OM= 1 f ' mz m � r r" II i O n r� � j ❑ O 4// / t M m 6y O RU55ELL ROAD !; N 0a o q Zm N mm r !� O Z om 7C o z m z EXISTING 24`rSEWER S llllllll 5 64tliyly 1hSt V KE i�NT)vv��4C _ 0 ,.. � c , zO > t' m o Z $ nm Q , " " o v z Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: REPEAL 1997 CHARGE IN LIEU OF ASSESSMENT AND AUTHORIZE NEW CHARGE IN LIEU OF ASSESSMENT FOR THE 272ND CORRIDOR INTERCEPTOR SEWER- AUTHORIZE 2. SUMMARY STATEMENT: Authorization to repeal 1997 Charge in Lieu of Assessment and authorization to establish new Charge in Lieu of Assessment for the 272°d Corridor Interceptor sewer. 3. EXHIBITS: Public Works Director's memorandum and vicinity map 4. RECOMMENDED BY: Public Works Committee (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount S Unbudgeted Revenue: Fund Amount S 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION- ACTION: Council Agenda Item No. 6F • PUBLIC WORKS DEPARTMENT Don E Wickstrom, P E Public Works Director Phone 253-856-5500 Fax 253-856-6500 K E N T Address 220 Fourth Avenue S W*SH INGTG N_ Kent, WA 98032-5895 DATE: TO: Public Works Committee FROM: Don Wickstrom, Public Works Director THROUGH SUBJECT: 272"d Corridor Interceptor Sewer-Charge in Lieu of Assessment MOTION Recommend to council that the charge in lieu of assessment reflected in Attachment "A"be repealed and that the charge in lieu of assessment reflected in Attachment`B" be authorized SUMMARY: The City spent$131,977 35 associated with Metro's 272'd Corridor interceptor sewer enabling it to be used to service the surrounding area Said interceptor can now be used to service approximately 284 acres The Department is requesting that a charge in lieu of assessment of S572 87 per acre be established on said 284 acres (attachment "B") Further, within the area there also exists an existing charge in lieu of assessment of$3.028 35 per acre associated with upsizmg a down stream City trunk sewer(Attachment"A") which is no longer required due to the availability of the Metro interceptor The Department is requesting that this charge in lieu of assessment be relinquished Attachment"C"reflects the affected areas of both charge in lieu of assessments BUDGET IMPACT No Unbudgeted Fiscal/Personnel Impact BACKGROUND: Around 1994 the Kent School District developed their Meadow Hills Elementary School To provide sewer service to the site, the School District extended the city's sewer system outside of its originally intended service basin By doing so, they made another 94 acres of property serviceable by said sewer system The downstream sewer trunk system however was inadequately sized to handle this additional acreage upon full build out of the service basin. In order to provide service to the new school without requiring the District to upsize the downstream sewer trunk system at an estimated cost of$282,199 the council in 1994 authorized a charge in lieu of assessment($3,028 59/gross acre) to be levied on those 94 additional acres (see Attachment"A") to compensate the City for the cost associated with upsizmg the down stream trunk system [Please keep in mind that a charge in lieu assessment while it is a recorded instrument and will show up on a property's title report is only collectable at the time the property connects to the City's sewer system(no connection, then no collection)] Prior to the City actually upsizmg said down stream system, and as a result of the City proceeding with the construction of its 272nd St corridor project, King County Metro determined Mayor White and Kent City Council 1 Charge in Lieu of Assessment it wanted to construct a new interceptor sewer line within and along the alignment of the 272"d corridor route The purpose of their interceptor line was to meet their long term contractual obligation to both Kent and to Soos Creek Water and Sewer district to provide a direct service link to the District's sewer system versus having Kent being the intermediary provider to the District. The critical driving factor for Metro however was that both the City's east hill sewer system and Metro's valley floor sewer system were experiencing over flow situations with every heavy ram fall event One side benefit of Metro's decision to use the 272"d corridor alignment as it relates to this issue was that the City spent$131,977 35 of City sewer utility monies thereon enabling the City to use Metro's interceptor system to service the adjacent area By doing so upsizmg the down stream City trunk sewer as proposed via the charge in lieu of assessment scenario is no longer required In addition instead of 94 acres of additional service area, the new service area is more like 284 acres (See Attachment"B") Thus with a larger service area and a smaller cost the previous charge in lieu of assessment can be reduced from$3028 59/gross acres to$572 87 As such the Public Works Department recommends repealing the prior charge in lieu of assessment as reflected in Attachment"A"and authorize the new charge in lieu of assessment reflected in Attachment"B" Mayor White and Kent City Council 2 Charge in Lieu of Assessment ATTACHMENT A September 20, 1994 STREET the LID would finance the sidewalks, the street IMPROVEMENTS lights, and part of the sewers, and that the total project cost is $708,565. 00. He noted that this is a high volume street, and that sidewalks would tie the industrial area to recreation areas along the Green River and the Interurban Trail, and would make bus service more compatible to the businesses in the area. Wickstrom noted that this LID contains 51 parcels and that there are no-protest covenants in the amount of 14% for sidewalks, 38% for street lights, and 50% for sewers. He noted that owners with a combined 33.61 of the total LID assessments are at this time obligated to participate in this street improvements LID via executed no-protest covenants or letters re- questing service. He pointed out that sewers are assessed only to those properties that do not have sewer, and noted that no protests have been received. Mayor White opened the public hearing. There were no comments from the audience and WOODS MOVED to close the public hearing. Orr seconded and the motion carried. MANN MOVED to direct the City Attorney to prepare the ordinance creating LID 346 for the improvement of S. 212th Street from the Green River to SR 167. Houser seconded and the motion carried. TRAFFIC (CONSENT CALENDAR - ITEM 3I) CONTROL L112 344 - Traffic Signal at 108th 5 240th AUTHORIZATION to accept as complete the contract with Breaker Construction, Inc. for LID 344, 108th & 240th Traffic Signal project, and re- lease of retainage after receipt of State releases, as recommended by the Public Works Director. The final construction cost is $84,724.00. SEWER (CONSENT CALENDAR - ITEM 3F) Meadow Ridge Elementary #26 Area AUTHORIZATION "r to implement a Charge in Lieu of Assessment for sewer service in the Meadow Ridge Elementary School area (108th Avenue and 275th block) , as i 3 September 20, 1994 SEWER � �{ recommended by the Public Works Committee, This I would enable the involved properties to connect to the sewer system upon paying their prorata share of the downstream upsizing cost. PUBLIC WORKS (BIDS - ITEM 5C) Four-Wheel Drive Power Unit and Mower. Bid opening for the four Wheel Drive Power Unit and Mower was held on September 12, 1994, with Western Equipment Distributors, Inc. being the only bidder. The Public Works Director recom- mends accepting the bid of $27,780. 35 including sales tax, from Western Equipment Distributors, Inc. MANN SO MOVED. Johnson seconded and the motion carried. SURPLUS (BIDS - ITEM 5A) EQUIPMENT Sale of Surplus Water Meters, Pipe and Fittings. One bid was received and opened on May 19 , 1994, for the sale of surplus water meters, pipe and fittings. Since only one bid was received, the project was readvertised and reopened on September 2nd. One bid was submitted by David Q. Price in the amount of $1, 637 .28 including sales tax. The Public Works Director recommends acceptance of the bid in the amount of $1, 637. 2B. MANN MOVED that the surplus water meters, pipe and fittings be sold to David Q. Price in the bid amount of $1, 637 .28 including sales tax. Johnson seconded and the motion carried. COMMUNITY (PUBLIC HEARINGS - ITEM 2B) DEVELOPMENT 1995 Community Development Block Grant Program. BLOCK GRANT This date has been set for a public hearing to consider adoption of the proposed 1995 Community Development Block Grant Program, including the contingency plans for estimated entitlement changes, as recommended by the Planning Com- mittee and the Human Services Commission. Betsy Czark of the Planning Department stated that the City has received eleven applications for funding. She noted that there has been a revision to the list which appears in the agenda 4 (5157 i __ - E r e W 7t t Pdkr •Pp KENT-14ERtOlAN F * /, > ..USE F > 7p �aR HI SCHOOL. ,^•, 5E 256TH ST 0 ST w N y29 28 25 30 X W . i i $ .�5711L T lu ti,• �� g 1,3, �• v �i n•D J_ ` ^ 4 Gv 19 Y , 1•�I, `•v0� (�� 3E I974 `/•sltN I SE 260T}I ST ~ 260TH 'Q�E 5T "r'CHIC HILL ST Y I F NTA RY a Rp,p S' HOOL 1 � 7 i i SEQUOIA y \ •�1 JR HI S 252ND PI_ ` SCHOOL 1 77-1 Hlrll�O FIrW SE 254TH' a I \ SE 264TH, ST 's s 5 '^ = W �� nro 06 F '65 3' ~♦ a0 Ste p FL F O SE 2651s 01 > Water BE 2 TH PL y, I 1 < .Hesery ST ` BE 267TH ST 1 Y L+ SE 26TTH F I W •oQ _ � W ST W yh + N44 BE 268TN s` Oe`f•,' N N 5£ 268TH P = r r P6 = s 1> �yi OF • T ',E 2v91ti St F ~ 2 S �` 0'Y ` srti i O't"o p�P,y o4 SE 27QT[f �"'.�,` �♦ ST c sf 1 '^I! ,t 6 2TIST ` 4~ I 1 ST= R�YFR 31 2a SIE ND ST "`" ¢ 29 28 3 32 32 Y e r 0 7O W!' Sr T y SE 2 � 5 SEWER CONNECTION CHARGE It TRIER $ 3,028.59 PER ACRE E "E`TARY OF SERVICABLE PROPERTY /! 40 I SE 2e0 w SE 28IST ST m SE a > Q 1" r SE N SE 284TH = ST VICINITY MAP 9/8/94 ATTACHMENT B J ,. � � � — ,� d .�qll� RUi��-gym ,. . , 2.pI .: � •!�. ! ��4'• �•l7G uld ..�I �' Ii Yal u� � �n ,5..7�u rrI `j 1 1 T �:.�I_ 1 �«�►�r, Pact �i L• �t r�r r at S. ,�i11 r.,.1IiIG3i � rrr r 1. aJ�r1I ii ��U J .� ^CC11�•�� uoi iMuR111- , w f6!C■ ROE, Y�■1f.�i it ;fYV 1 �R l.�i■u v 1 u�a�uun i ice■,:rru n w nC+[��J.R .. FL l ■ v ■.i rL n 1 u rain ■�. �it� I ca uari i.•ttt n__:u Air owls ar . 1 , ATTACHMENT C The area highhghted in yellow and outlined in blue is associated with Charge in Lieu of Assessment descnbed in Attachment A r1"I { � n r d ��IN��np�.•.: g a l p � ,7 n A '�,.1.) r ■+ �. an I LE t I� ��<'J•sl+Jr�l R , ♦ -'_i�^+`i i� 'aiia .�1c iiii t2zz � J . `_� � Ate.` F `r ``•� r L ■L���'�� ri1+Ilti WK Iri pp r...•�L.�.,.a WAA. .'=a i�r Ya�il ■J rt�l f\fl log'—n NJw7 ..� utiArm iiit i411044;14�31r�ra I`J L'w1�J r/1-- inI;ij� r_-_.eJ ii11a 'l 1 �I'■�+rr.+ .. r rip t„f111 . �►� �' l i���Q!] +u rrra riw n■� to 61n ._lEc�IJ G7:J �� i i1f+1IIII M ra WEEK L AWWI- as �1 L IN AN r Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: AUTUMN GLEN SANITARY SEWER LATECOMER REIMBURSEMENT AGREEMENT—AUTHORIZE 2. SUMMARY STATEMENT: Authorization for the Public Works Director to execute a Sanitary Sewer Latecomer Agreement with Bennett Sherman, LLC, for the Autumn Glen Sanitary Sewer Extension. 3. EXHIBITS: Latecomer Agreement w4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION. ACTION: Council Agenda Item No. 6G PUBLIC WORKSDEPARTMENT Don E Wickstrom, P E Public Works Director Phone 253-856-5500 Fax 253-856-6500 KEN T Address 220 Fourth Avenue S w A 5 N l N o T o N Kent,WA 98032-5895 DATE: April 14, 2004 TO: Public Works Committee FROM: Don Wickstrom,Public Works Director SUBJECT: Autumn Glen Sanitary Sewer Latecomer Reimbursement Agreement MOTION Recommend Council authorize the Public Works Director to execute a Sanitary Sewer Latecomer Agreement with the Bennett Sherman, LLC for the Autumn Glen Sanitary Sewer Extension SUMMARY: The developer,Bennett Sherman, LLC,has requested a sanitary sewer latecomer agreement for the extension of the City's sanitary sewer main in the vicinity of S E 272nd Street between 104`h Avenue S E and 108th Avenue S E The City determined only the cost associated with the extra depth would be considered for reimbursement There are 34 parcels that may benefit from the extra depth portion of the sanitary sewer extension The Public Works Director requests authorization to enter into a latecomers agreement with this developer for the 34 parcels BUDGET IMPACT No Unbudgeted Fiscal./Personnel Impact BACKGROUND: State law allows the City to enter into an agreement with developers for reimbursement of costs incurred per construction of utility improvements to service his development that benefit other properties These reimbursement costs are paid by the neighboring properties at the time they connect or extend the improvement The developer of the Plat of Autumn Glen was required to deepen the sewer he constructed to service his development as well as surrounding properties as reflected in the City's adopted Sewer Comprehensive Plan It is that additional cost associated with deepening the sewer that he is entitled to get reimbursement for The Public Works Department recommends authorizing this Latecomer Reimbursement Agreement i Mayor White and Kent City Council Autumn Glen Sanitary Sewer April 19,2004 1 Latecomer Reimbursement Agreement • ATTACHMENT A Area associated with proposed Latecomer Charge Area associated with an existing Charge in Lieu of Assessment Public Works recommends repealing Area Public Works recommends new Charge in Lieu of Assessment Far properties affected by all three charges noted above the net reduction is $248 57 per acre i r •) ___Q J d�U. �!� r :'/ 1�.'a �7,uti•J41�@ It�L 1' ®�i�'.�®''���-I�.CHI�'6 _`.•C5_ c �f-�, t�;J1��1%�ri e�� :vaV rq r,r ,, • ly'V +��� 1 �� ,'1 Cw jr, IL' 1 ` .�'�rl J[ �+ � -:i� w�irri L�r+ry ` •�ij� ■IL�riiY3a1LL711S'3i1 I ` �l, t r r ,JJ .r� � �� � (1l♦ ��Yi Mi� ryY ' iiJ hr rar."S 1m urrn l. r W f1.1 YL.. " pJIM 1w'li. �FjlrYtj. z tolyu nsl�[ii VI1 3 r. aJ nr{RAiI n[� L!G7n 4 � � ► Lull MJI. �rca. J ..G�G::...�7G..: '►�: hall all Yi7 ENDLA 11F3 ■ * oCV � ili r AFTER RECORDING RETURN DOCUMENT TO. . City of Kent 220 4th Avenue South Kent, Washington 98032 Attn: Property Management Reference Number of Related Document: Grantor(s) : Bennett Sharman, LLC Grantee(s) : City of Kent Abbreviated Legal Description: PTN. E1/2, NW1/4, NE1/4, NW1/4 SEC.32 T22N R5E Additional Legal Description is on Page(s) 4 of Document Assessor Tax Parcel No •322205-9021 PROJECT NAME. Autumn Glen LATECOMER AGREEMENT This Agreement made this day of 20 between the City of Kent, a Municipal Corporation, hereafter called the "City", and Bennett Sherman, LLC hereafter called the "Owner". WHEREAS Owner has constructed at its expense a SANITARY SEWER (at Extra Depth) line, hereafter called "improvements", and; WHEREAS the parties desire to provide that any party thereafter tapping, connecting, or benefiting from said improvements will pay a pro-rata cost of said line in accordance with Chapter 35.91 of the revised Code of Washington and the terms thereof. This notice DOES NOT constitute a lien on the properties described herein and is collectable only when an application is made to connect or tap into the line herein described. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows• 1. The Owner has constructed an 8^ SEWER LINE WITH RELATED APPURTENANCES AT AN EXTRA DEPTH. OF WHICH THE COST FOR THE EXTRA DEPTH PORTION WAS CALCULATED AT $89,534.00 Autumn Glen-LATECOMER AGREEMENT Page 1 of 4 2. The Owner does grant and convey the above described improvements to the City free of any liens or — encumbrances and the City hereby approves and accepts said improvements which approval and acceptance was authorized by motion duly seconded and passed at a regular City Council meeting on the day of 2004 3 The above referenced improvements constructed by the Owner is a special benefit to the following described property in King County, Washington. SEE ATTACHED EXHIBIT "B' Boundary Map attached? Yes X No 4 The Owner constructed the above referenced improvements for a total cost of $ 89,534.00 of which a portion of this cost shall be distributed to the above described properties. 5. In accordance with Chapter 35.91 of the revised Code of Washington, any party other than the Owner tapping or connecting to said improvements will be required to pay the Owner on the following basis. SEE ATTACHED EXHIBT "B^ 6. The Citya b agrees to ear all further costs of maintaining and operating the above referenced improvements 7. After acceptance of said improvements by the City and after the expiration of any period during which said improvements are warranted as to workmanship by the Owner the City shall thereafter be responsible for any and all maintenance and operation costs of said improvements. Said improvements shall be adopted as a facility of the City and the City may charge such rates as it may be authorized by law to establish. Autumn Glen-LATECOMER AGREEMENT Page 2 of 4 8 The contract will be effect,ve for fifteen years - from the date hereof, and if any owners of any properties described in Paragraph 3 above desire to tap into the improvements, the City will require that payment on behalf of the Owner be made in accordance with Section 5 above, prior to any such tap being made 9 Authorization for this Agreement approved by City Council on the day of 2004 IN WITNESS WHEREOF the parties have caused this Agreement to be executed on the day and year first above written. WITNESS OWNER(S) DATE MAKE CHECK PAYABLE TO: Bennett Sherman, LLC MAIL CHECK TO: 2100-12 Avenue N.E. suite 100 Bellevue, WA 98005 { WITNESS CITY OF KENT I BY. / / BY. DATE GERALD B. McCAUGHAN DON WICKSTROM, P.E. PROPERTY MANAGER DIRECTOR OF PUBLIC WORKS Autumn Glen-LATECOMER AGREEMENT Page 3 of 4 EXHIBIT "A" That portion of the East Half of the Northwest Quarter of the Northeast Quarter of the Northwest Quarter of Section 32, Township 22 North, Range 5 East, Willamette Meridian, in King County, Washington, described as follows: Commencing at the Southeast corner of said East half; Thence along the East line thereof North 02"26'27' East 28.05 feet to the true point of beginning; Thence North 87019'14" West 325.16 feet to the West Line of said East half; Thence North 02°27110" East along said West line 623.42 feet to the Northwest corner of said East half; Thence South 87°55147" East 325.45 feet along the North line of said East half, to the Northeast corner thereof; Thence South 02026127" West along the East line of said East half to the true point of beginning; Except the North 30 feet thereof conveyed to King County for Southeast 272" Street (B.C. Fitzhenry Road) by Deed Recorded under Recording Number 2748341 Autumn Glen-LATECOMER AGREEMENT page 4 of 4 Exti1a 1T SANITARY SEWER REIMBURSEMENT AGREEMENT ASSESSMENT ROLL PROJECT AUTUMN GLEN Extra Depth Sanitary Sewer DEVELOPER Bill Sherman/Fred Herber Bennett Sherman, LLC 2100-1241h Avenue N E ,Suite 112 Bellevue,WA 98005 (425)641-3939 phone / (425)885.3939 fax ASSESSMENT BASIS = Acreage (Proportionate Share) TOTAL POTENTIAL ACREAGE = 5538 TOTAL REIMBURSABLE ACREAGE = 4057 IReduclion for Tax Parcels Split by Boundary) TOTAL COST = $89.534 TOTAL REIMBURSEMENT AMOUNT = $79,757 (Reduction for Autumn Glen share) Parcel No Reimbursement Amount 292205.9153 $2,095 292205.9205 $860 292205.9201 $1,343 292205-9043 $1,101 292205-9197 $904 292205-9098 $2,740 292205-9100 $618 292205-9156 $1,433 292205-9300 $1,433 292205-9206 $1,370 292205-9152 $2,274 292205-9183 $2,077 292205-9162 $3,886 292205-9164 $1,916 292205-9222 $967 292205-9224 $967 292205-9221 $985 292205-9170 $770 292205-9133 $1,433 322205-9020 $770 322205-9155 $5,712 322205.9153 $886 1213M3 10324017A, / e�3 EXNLt3 ��" � J3t Parcel No Reimbursement Amount 322205-9154 $1,039 322205-9021 $9,777 (Autumn Glen Parcel) 322205-9022 $6,133 322205-9192 $3,554 322205-9049 $14,226 322205-9098 $4,835 322205-9147 $2,605 322205-9148 $3,116 322205-9052 $2,498 322205-9051 $1,961 322205-9050 $1,083 322205-9011 $2,167 Total $89,534 Less Proportionate Share Pald by Autumn Glen Project $9,777 TOTAL REIMBURSEMENT AMOUNT $79,757 177 W3 W324017.6 � ��3 ExHtS17- S . d 2 � -- \\ § 2 � | \ 7 \ � � k ; | � 2 292205- B 7 � � \ 01 § ■ § § R ---s--- --- § B � � a §� §i 3 �� � Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: 3RD AVENUE AND WASHINGTON AVENUE PUMP STATIONS — ACCEPT AS COMPLETE 2. SUMMARY STATEMENT: As recommended by the Public Works Director, accept as complete the 3`d Avenue and Washington Avenue Pump Stations project and release the retainage to Archer Construction upon standard releases from the state and release of any liens The original contract amount was $349,991.98. The final contract amount was $380,109.05. 3. EXHIBITS: None 4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6H Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: "REDUCE UNDERAGE DRINKING" GRANT AMENDMENT— ACCEPT AND AMEND BUDGET 2. SUMMARY STATEMENT: An additional grant award of$10,000.00 was awarded from the Federal Office of Juvenile Justice and Delinquency Prevention through the Department of Social and Health Services has awarded an additional amount for expenses incurred to conduct a statewide survey of community readiness in underage drinking prevention activities. 3. EXHIBITS: Award letter dated 3/12/04 from Dept of Social and Health Services; contract amendment No. 1 DSHS 0261-15795; and memo dated 3/22/04 from Nancy Mathews on reimbursable program expenses • 4. RECOMMENDED BY: Public Safety Committee 4/15/04 (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? X Currently in the Budget? Yes No X If no: Unbudgeted Expense: Fund N00302.53312 Amount $10,000.00 Unbudgeted Revenue: Fund N00302 Amount $10,000.00 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6I POLICE DEPARTMENT /�,,� Ed Crawford, Chief of Police 253-856-5888�� RChone INT _ P Fax 253-856-6802 w.,..l.oT Address 220 Fourth Avenue S Kent, WA 98032-5895 DATE: Apnl 15, 2004 TO: Public Safety Committee FROM: Chief Ed Crawford SUBJECT: Kent Police Department requests authorization to accept the additional amount of $10,000.00 for the Reduce Underage Drinking grant and to adjust the budget MOTION: I move to recommend authorizing the Kent Police Department to accept the increase of $10,000.00 for the Reduce Underage Drinking grant from OJJDP and to adjust the budget, and to place this on the Consent Calendar for the May 4, 2004 Consent Calendar SUMMARY: An additional amount was awarded from the federal Office of Juvenile Justice and Delinquency Prevention through the Department of Social and Health Services. This is a reimbursement grant for expenses incurred to conduct a statewide survey of community readiness in underage drinking prevention activities. EXHIBITS: Award letter dated 03/12/04 from Department of Social and Health Services Contract Amendment No. 1 DSHS 0261-15795 Memo dated 3/22/04 from Nancy Mathews on reimbursable program expenses BUDGET IMPACT• Amend established budget by S 10,000.00 increase No matching funds required BACKGROUND: The prior grant award was $60,200 00 The increase of$10,000.00 now brings the total grant award to $70,200.00. Kent City Council Wal)amendment Apn115,2004 POLICE DEPARTMENT Ed Crawford, Chief of Police Phone 253-856-5888 K E N T Fax 253-856-6802 W A 5 H I N c T o N Address 220 Fourth Avenue S Kent, WA 98032-5895 i Memorandum DATE: March 22, 2004 TO Public Safety Committee FROM: Nancy Mathews CC: Captain Mike Painter RE. Amendment to Reduce Underage Drinking Grant Attached is the original signed contract amendment to the Reduce Underage Drinking Grant (RUaD) from Division of Alcohol and Substance Abuse (RASA). The increase is $10,000 and has no match requirement. It will reimburse the City for program and overtime expenses to conduct a statewide survey of community readiness in underage drinking prevention activities Salaries & Benefits Survey Task Amendment $ 9,680.00 Travel & Subsistence For staff to attend training and meetings $ 100.00 Good& Services Supplies to support survey project $ 220.00 Grant Amendment Total $10,000.00 Total Grant as Amended $70,200.00 The source of funds is the federal Office of Juvenile Justice and Delinquency Prevention (OJJDP) Discretionary Grant#2002-AH-FX-0055 The Catalog of Federal Domestic Assistance Number is 16.727. Request Council accept the funds and approve a budget adjustment. TSf GF 4 r Hr�F,S]tlR9 iAN STATE OF WASHINGTON 17 2, DEPARTMENT OF SOCIAL AND HEALTH SERVIGf,�, ,, Division of Alcohol and Substance Abuse oliz March 12, 2004 Chief Ed Crawford City of Kent 220 4 h Avenue South Kent, Washington 98032-5985 DASA Contract # 8211-1 Dear Contractor. Enclosed is a fully executed copy of the Contract Amendment between you and the Division of Alcohol and Substance Abuse (DASA) If you have questions, please call your Contract Manager. Sincerely, 4F,k � Eric Crawford, Contracts Program Manager Division of Alcohol and Substance Abuse Contracts Section Post Office Box 45330 Olympia, Washington 98504-5330 (360) 438-8493 EC rmh Enclosure • CONTRACT AMENDMENT DSHS CONTRACT NUMBER. r Washmgrort Svre 7DE ^ 7, OCIAL&HEA OF / Isar SERVIC�ESLT F RUaD 0261-15795 Amendment No 01 Program Contract Number This Contract Amendment is between the State of Washington Department 8211-1 - of Social and Health Services (DSHS) and the Contractor identified below Contractor Contract Number CONTRACTOR NAME CONTRACTOR doing business as(DBA) City of Kent Kent Police Department CONTRACTOR ADDRESS WASHINGTON UNIFORM DSHS INDEX NUMBER BUSINESS IDENTIFIER(USI) 220 4th Ave South 22475 Kent, WA 98032-5895 CONTRACTOR CONTACT CONTRACTOR TELEPHONEFCONTRACTOR FAX CONTRACTOR E-MAIL ADDRESS Chief Ed Crawford (253)856-5883 Ext 856-6802 nmathews@cl kent wa us DSHS ADMINISTRATION DSHS DIVISION DSHS CONTRACT CODE Health and Rehabilitative Services Division of Alcohol and 4000LC Administration Substance Abuse DSHS CONTACT NAME AND TITLE DSHS CONTACT ADDRESS Michael Langer PO Box 45330 Supervisor, Prevention Services Olympia, WA 98504-5330 DSHS CONTACT TELEPHONE DSHS CONTACT FAX DSHS CONTACT E-MAIL ADDRESS 360 438-8096 Ext 360 438-8057 Ian eme dshs wa gov IS THE CONTRACTOR A SUBRECIPIENT FOR PURPOSES OF THIS CONTRACT? CFDA NUMBERS Yes 16 727 AMENDMENT START DATE CONTRACT END DATE 03/01/2004 06/30/2004 PRIOR MAXIMUM CONTRACT AMOUNT AMOUNT OF INCREASE OR DECREASE TOTAL MAXIMUM CONTRACT AMOUNT $60,200 00 $10,000 00 $70,200 00 REASON FOR AMENDMENT, CHANGE OR CORRECT OTHER- SEE PAGE TWO ATTACHMENTS. When the box below is marked with an X, the following Exhibits are attached and are incorporated into this Contract Amendment by reference- [:] Additional Exhibits (specify) This Contract Amendment,including all Exhibits and other documents incorporated by reference,contains all of the terms and conditions agreed upon by the parties as changes to the original Contract No other understandings or representations,oral or otherwise, regarding the subject matter of this Contract Amendment shall be deemed to exist or bind the parties. All other terms and conditions of the original Contract remain in full force and effect The parties signing below warrant that they have read and understand this Contract Amendment, and have authority to enter into this Contract Amendment CONT TOR IGNATUR PRINTED NAM ND TITLE DATE SIGNED cad &AC� \ A DSHS SIGNATURE PRINTED NAME AND TITLE DATE SIGNED Sheryl Turner, Contracts Administrator /G�/Q Division of Alcohol and Substance Abuse C IE MAR p 3 2�a4 DSHS Central Contract Services S Page 1 Contract Amendment #6024PF(2-25-99)Rev. 12-13-00 pASAIQF This Contract between the State of Washington Department of Social and Health Services (DSHS) and the Contractor is hereby amended as follows: 0- The following are added to the Statement of Work, Exhibit A: Survey of Community Readiness in Underage Drinking Prevention Activities - =:a 3 �° d�' -_ To be completed b# Work Item 1 Conduct a pilot of the survey in one community, to be approved by the RUaD 3/31104 Contract Monitor , 2 Conduct telephone interviews with selected stakeholders in communities 5131/04 using the survey instrument and data collection tools provided by the RUaD Contract Monitor 3 Provide bi-monthly data exports of collected survey data to the RUaD 5/31/04 Contract Monitor. 4 Meet with the RUaD Contract Monitor and DASA Research Manager a 5/31104 minimum of 2 times per month during the duration of this project 2. The maximum consideration for this contract is increased by $10,000 from $60,200 to $70,200 The source of funds is the federal Office of Juvenile Justice and Delinquency Prevention (OJJDP), Discretionary Grant#2002-AH-FX-0055 The Catalog of Federal Domestic Assistance Number is 16.727 All other terms and conditions of this Contract remain in full force and effect DSHS Central Contract Services Page 2 Contract Amendment #6024PF(2-25-99)Rev 12-13-00 Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: WASHINGTON TRAFFIC SAFETY COMMISSION GRANT FOR OVERTIME FUNDING—ACCEPT AND AMEND BUDGET 2. SUMMARY STATEMENT: This grant will provide supplemental overtime Funding for intense traffic safety enforcement for up to $5,000.00, or approximately 100 hours of traffic enforcement overtime. This campaign will begin on May 10th and extend through June 6, 2004. The application deadline is May 7, 2004. 3. EXHIBITS: Award letter dated 3/30/04 from Washington Traffic Safety Commission and Memorandum of Understanding, WTSC 4. RECOMMENDED BY: Public Safety Committee 4/15/04 (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? X Currently in the Budget? Yes No X If no: Unbudgeted Expense: Fund undetermined Amount $ undetermined Unbudgeted Revenue: Fund undetermined Amount $ undetermined 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: • ACTION: Council Agenda Item No. 6J POLICE DEPARTMENT Ed Crawford, Chief of Police - Phone K CN T Fax 253-856-6802 WS .pTpM Address 220 Fourth Avenue S Kent,WA 98032-5895 DATE: April 15, 2004 TO: Public Safety Committee FROM: Chief Ed Crawford SUBJECT: Kent Police Department requests authorization to apply for the Washington Traffic Safety Commission grant in the amount of$5,000 00. MOTION: I move to recommend authorizing the Kent Police Department to apply for the Washington Traffic Safety Commission grant in the amount of$5,000 00, and placing this on the Consent Calendar for the May 4, 2004 Consent Calendar. SUMMARY: This grant will provide supplemental overtime funding for intense traffic safety enforcement for up to S5,000.00, or approximately 100 hours of traffic enforcement overtime. This campaign will begin on May loth and extend through June 6, 2004 EXHIBITS: Award letter dated 03/30/04 from Washington Traffic Safety Commission Memorandum of Understanding, WTSC BUDGET IMPACT Reimbursement of overtime. BACKGROUND: Recently, the Legislature has indicated its desire for a more broad traffic safety campaign. The focus will be on four critical traffic safety issues: Speed, DUI, Aggressive Driving and Seat Belt Use. The emphasis must be done during daylight hours and include three criteria: • High crash areas • Multi junsdictional approaches • Low seat belt use rate areas We are proposing to coordinate our efforts with the King County Traffic Safety Coalition and focus on multi jurisdictional state routes through our city, as well as identified high crash and aggressive driving locations on city streets. The WTSC will purchase media spots that will air before the enforcement begins to promote the program and to attempt to educate motorists. We anticipate submitting reimbursement for up to $5,000 00, as we have in the past under similar grants. Kent City Council WTSC grant—intense Apnl 15,2004 ^q,6'TATE O O j � - S f sY� �Hd Duey a� STATE OF WASHINGTON WASHINGTON TRAFFIC SAFETY COMMISSION 1000 S.Cherry St,PO Sox 40944•Olympia, Washington 98504-0944•(360)753-6197 March 30,2004 TO: Washington State Law Enforcement Agencies 3-FLAGS Participants FROM: Angie Ward,Program Manager j (360) 753-0577, award()wtsc.wa.gov RE: Overtime Funding for Intense Traffic Safety Enforcement Campaign BACKGROUND The Washington Traffic Safety Commission (WTSC)is coordinating a May/June Traffic Safety Enforcement mobilization and media campaign. This high-visibility enforcement campaign will run from May 10 through June 6, 2004. As you may know, for the past two years the WTSC has coordinated a Click-it Or Ticket campaign during tlus timeframe. Recently the Legislature indicated its desire for a more broad traffic safety campaign. Based on this input this campaign will focus on four critical traffic safety issues: Speed,DUI,Aggressive Driving and Seat Belt Use. As most of you know by now,the concept is simple. It starts with a statewide public information effort to educate motorists about the upcoming traffic safety enforcement wave and is followed up with an intensive period of increased enforcement. The WTSC will be spending a substantial amount of money on paid media spots including radio public service announcements and billboards placed around the state containing a clear message about the coming enforcement These spots will air both the week before and the weeks during the mobilization. GRANT AVAILABILITY As an integral part of this mobilization,the WTSC is pleased to announce the availabihty of overtime grant funds for."Intense Traffic Safety Enforcement." The focus of this campaign is speeding, DUI, aggressive driving and seat belt enforcement. The enforcement activity will be begin on May 10 and extend through June 6, 2004. These patrols must be conducted during DAYLIGHT HOURS. The goal of this federal grant is to save lives and prevent serious injuries on Washington's roadways. Funding for this mobilization will be awarded based on three criteria: • High crash areas • Multi jurisdictional approaches • Low seat belt use rate areas - i"J It is our intent to fund every agency that applies. Should requests for funding exceed our ability to fiord them,the above criteria will be used to prioritize the requests. A multi jurisdictional approach could be something as simple as coordinating the dates for overtime with a neighboring city or county or working with the WSP. In addition,performance on previous WTSC overtime grants will also be taken into account. A)Eligibility- All state,county,local and tribal law enforcement agencies are eligible and encouraged to participate in this project. The use of commissioned reserve officers for this overtime detail is approved as long as a pay structure exits. Funding availability is on a first-come basis based on agency size and the number of full-time commissioned personnel as follows: # of Commissioned Officers Mav request funding up to: 1-10 $1,000 11-25 $2,000 26-50 $3,000 51-100 $3,500 101 + $5,000 B) Funding Guidelines- Funding will be on a"reimbursement"basis and requires the submission of a State invoice voucher(Form A-19—attached)upon completion of activity. Support documents for reimbursement must include signed overtime slips or payroll/expense records showing payments made, officer activity logs demonstrating performance, and a combined activity log totaling all officer activity logs for the mobilization. • Performance standards for funded personnel are a minimum of three(3)self-initiated contacts per hour funded with a "desired outcome" of three (3) traffic citations per hour with an emphasis on Speed,DUI, Aggressive Driving and Seat Belt violations. It is expected that Notices of Infraction(NOI's)will be issued at contact unless circumstances dictate otherwise. It is understood that violator contacts may result in related time-consuming activity. Such activity will be considered for reimbursement. Activity other than that initiated through emphasis patrol contact(investigating collisions, emergency responses, etc) will be the responsibility of the contracting agency and may not be considered for reimbursement. • Allowable use of funds will be for overtime salary(@ 1.5 times normal rate),and wages and benefits of commissioned personnel in direct support of operational activity.No equipment purchases are authorized. C)Application for Funds— Application for funding must be received by WTSC by May 7,2004 and must include the following elements: 1. A grant letter requesting overtime funding. The letter must contain the following elements (See attached sample letter): • A schedule of planned enforcement dates during the May 10—June 6 Mobilization(dates may be changed later due to operational requirements) and the number of personnel committed to each date; • The amount of funds requested; • The designation of a single"point of contact"for the purposes of the project management, administration and activity reporting; • The designation of a single"point of contact"for media and public education purposes. (May be the same as the project manager); and • Information addressing the three qualifying criteria listed above (optional, but this information might increase your chances for funding if we need to prioritize grantees). 2. A signed Memorandum of Understanding(MOU- attached) D) Funding Approval— A copy of the approved MOU will be returned to your agency prior to planned activity. E) ReimbursemenvReporting- To receive reimbursement, the following must be submitted to WTSC no later than July 9, 2004: • A Completed Invoice Voucher, A19-IA Form(attached). Please note that we cannot accept a FAX. We must have your agency identified as the "Claimant", a Federal Tax ID#and an original signature of the agency head, command officer or contracting officer on the A-19 form. • Payroll support documents such as signed overtime slips or payroll/expense records showing rate of pay or payments made; and • Activity logs for each officer and a combined activity log with totals for the entire mobilization. Important Note:If it is not possible to bill the WTSC by July 9,2004 you must at least send the statistics by that data You do not need to contact our office if your billing will be late. COMMENTS Please contact me at (360) 753-0877 or email award ,wtsc.wa goy if you have any questions. Attachments: Memorandum of Understanding Activity Log Combined Activity Log Sample grant request letter A-19 Invoice Voucher(for use at time of billing) o 'E � o mr`� MEMORANDUM OF UNDERSTANDING WASHINGTON TRAFFIC SAFETY COMMISSION 1000 So. Cherry St., PO Box 40944, Olympia,WA 98504-0944 THIS AGREEMENT is made and entered into by and between. (insert your agency name above) Hereinafter referred to as "Contractor" and the WASHINGTON TRAFFIC SAFETY COMMISSION, hereinafter referred to as"WfSC" IT IS THE PURPOSE OF THIS AGREEMENT to provide overtime funding to law enforcement agencies to conduct "Intense Traffic Safety Enforcement Patrols"during the penod between May 10 and June 6, 2004 The goal of this project is to contact as many violators as possible with an emphasis on Speeding, DUI, Aggressive Driving and Seat Belt violations IT IS,THEREFORE, MUTUALLY AGREED THAT: 1. Contractor will provide a commissioned police officer(active or paid reserve)with appropriate equipment (vehicle, radar, etc)on an "overtime' basis (not to exceed 1 5 times normal salary)to enforce speeding, DUI, Aggressive Driving and Seat Belt laws. No on-duty personnel will be funded 2. The period of activity will begin on May 10 and extend through June 6, 2004. Funding is not available for activity before or after this period and funding may not exceed the amount prescribed in the attached • Request for Proposal These patrols will be conducted during daylight hours. 3. Performance standards for funded personnel are a minimum of three (3)self-initiated contacts per hour funded with a "desired outcome"of three (3)speeding. DUI.Aggressive Driving or seat belt citations per hour. It is expected Notices of Infraction (NOI's)will be issued at contact unless circumstances dictate otherwise. It is understood that violator contacts may result in related, time-consuming activity Such activity will be considered for reimbursement Activity other than that initiated through emphasis patrol contact (investigating collisions, emergency responses, etc)will be the responsibility of the contracting agency and may not be considered for reimbursement 4. Contractor must submit for reimbursement no later than July 9, 2004. Billings will include. ♦ Invoice Voucher, Al9-1A Form (attached). Please note that we cannot accept a FAX We must have your agency identified as the "Claimant, a Federal Tax ID # and an original signature of the agency head, command officer or contracting officer on the A-19 form ♦ Payroll support documents (overtime slips, payroll documents, etc), ♦ Officer worksheets (showing 3 or more self-initiated contacts per hour), and ♦ Combined activity log with totals for the entire mobilization 5. Disputes arising under this agreement shall be resolved by a panel consisting of one representative of the Washington Traffic Safety Commission, one representative from your agency and a mutually agreed upon third party. The dispute panel shall thereafter decide the dispute with the majority prevailing. 6. Either party may terminate this agreement upon (30) days wntten notice to the other party In the event of termination of this agreement, the terminating party shall be liable for the performance rendered prior to the effective date of termination. IN WITNESS WHEREOF, PARTIES HAVE EXECUTED THIS AGREEMENT. APPROVEDIDISAPPROVED Agency Washington Traffic Safety Commission Return to: WTSC Contracting Agent(Pnntttype Name) PO Box 40944 Olympia,WA 98592-0944 Signature Date Kent City Council Meeting • Date May 4, 2004 Category Consent Calendar 1. SUBJECT: KING COUNTY OFFICE OF EMERGENCY MANAGEMENT AND PROGRAM DEVELOPMENT CONTRACTOR— ACCEPT,AMEND BUDGET AND AUTHORIZE HIRING 2. SUMMARY STATEMENT: The Emergency Management Division received a reimbursable grant not to exceed $23,933.00 from the King County Office of Emergency Management. The monies are to be used for reimbursement of salaries, goods/services, supplies/matenals, mail/postage, printing/reproduction, and hiring of a contractor (not to exceed $10,000) to assist with establishing background checks for volunteer(CERT) emergency workers, developing a system to pre-register and track emergency workers and establishing a team development program. 3. EXHIBITS: Notification letter from KC Office of Emergency Management and grant application estimates submitted 4. RECOMMENDED BY: Public Safety Committee 4/15/04 (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? X Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund 10003100.5308 Amount $ Unbudgeted Revenue: Fund 10003100.6xxxx.2150 Amount $ i 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6K ^4�� FIRE DEPARTMENT Jim Schneider, Fire Chief Phone-253-856-4300 Fax 253-856-6300 KENT W A 5 H I N G T O N Address: 24611 116�"Ave SE Kent, WA 98030-4939 DATE: April 15, 2004 TO: Public Safety Committee FROM: Jim Schneider, Fire Chief SUBJECT: Community Emergency Response Team '03 Reimbursable Grant Hiring of Program Development Contractor MOTION: I move to recommend accepting the grant from King County Office of Emergency Management and also recommend the Council authorize the Kent Fire Department to hire a Program Development Contractor as outlined in the grant application estimates and placing this item on the Consent Calendar of the May 4, 2004 Council Meeting, and to establish budget documents as required. SUMMARY: Our Emergency Management Division received a reimbursable grant not to exceed $23,933 from the King County Office of Emergency Management. Washington Commission for National and Community Service (WCNCS) awarded Washington's Homeland Security Region 6 (King County) $52,700 to be passed through as sub- grants to communities providing CERT Programs. The monies are to be used for reimbursement of salaries, good/services, supplies/materials, mail/postage, printing/reproduction, and hinng of a contractor(not to exceed $10,000) to assist with establishing background checks for volunteer (CERT) emergency workers, develop a system to pre-register and track emergency workers and establish a team development program. EXHIBIT: Notification letter from KC Office of Emergency Management Grant Application Estimates submitted BUDGET IMPACT: $23,933 —Grant Revenues/Expenditures Kent Council Public Safety Committee KC OEM CERT grant April 15,2004 O - - King County Office of Emergency Management Department of Executive Services 3511 Northeast Second Street Renton, WA 98056 206-296-3830 TTY Relay: 711 March 26, 2004 Larry Rabel, Emergency Manager City of Kent, Emergency Management 220Fourth Avenue S. Kent WA 98032-5895 Dear Mr. Rabe[: Congratulations! This letter is to inform you of your award, which will not exceed the amount of $23,933.00 from the Community Emergency Response Team '03 grant(WCNCS Interagency Grant Agreement No. 5060-04; CFDA No. 83.564) This grant is a reimbursable grant and funds will be transmitted when receipts are submitted to the Office of Emergency Management for eligible Items or expenses. Eligible expenses are identified in Attachment A. "Performance Period" is from September 1,2003 to August 31, 2004. A final report and budget sum,^Tary will be due no later than September 10, 2004. Therefore, in order for OEM to meet the timeline for this process, receipts for all eligible items must be into the OEM no later than September 10, 2004. Any receipt or invoice received after 4 30 p m on September 10, 2004 will not be eligible for reimbursement under this grant- Original receipts must be submitted along with Itemization of Items into categories of budgetary expenditures. All training, travel and purchases of goods and services must be completed within the grant performance period. Attached Invoice form will be used to list your expenses Into the categories needed to complete the proper accounting. Again, congratulations! Sincerely, Timothy . Doyle Office of Emergency Management Concu6: 1194111 Title. 1 / Date. 200 + CITY OF KENT 2004 CERT SCHEDULE Grant Application Estimates SALARIES Overtime is excluded Hourly rate is estimated and does not include benefits 2004 Spring CERT Schedule 2 Classes with 30 participants each. Afternoon Class 1:00 p.m. - 4:30 p.m. . Evening Class 6:00 p.m. - 9:30 p.m Preparation time for Spring Schedule Duties Attached One Coordinator @$27.00/hour x approximately 149 hours 4,028 CERT Introduction Tuesday, March 2 at Kent Fire Station 73 1 Coordinator @ $27.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 162 1 Coordinator @ $24.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 144 MODULE I - Disaster Preparedness Tuesday, March 9 at Kent Fire Station 73 1 Coordinator @ $27.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 162 1 Coordinator @ $24.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 144 MODULE III - Disaster Medical I Tuesday, March 16 at Fire Station 73 1 Coordinator @ $27.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 162 1 Instructor @$37.00/hour est. x 6 hours regular salary and 4 hours overtime (Excluded) 222 MODULE IV - Disaster Medical II Tuesday, March 23 at Fire Station 73 1 Coordinator @ $27.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 162 1 Instructor @$37.00/hour est. x 6 hours regular salary and 4 hours overtime (Excluded) 222 MODULE II and MODULE VIII - Disaster Fire Suppression &Terrorism Tuesday, March 30 at Police/Fire Training Ctr. 1 Coordinator @ $24.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 144 1 Public Educator @24.00/hour x 6 hours regular salary and 4 hours overtime (excluded) 144 1 Burn Prop Operator @$37.00/hour est. x 6 hours regular salary &4 hrs overtime (Excl.) 222 MODULE V - Disaster Search &Rescue Tuesday, April 6 at Police/Fire Training Ctr. 1 Coordinator @ $24.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 144 1 Instructor @$37.00/hour est. x 6 hours regular salary and 4 hours overtime (Excluded) 222 MODULE VI - Psychological &Team Organization Tuesday, April 20 at Fire Station 73 1 Coordinator @ $27.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 162 1 Coordinator @ $24.00/hour x 6 hours regular salary and 4 hours overtime (Excluded) 144 MODULE VII - Course Review, Disaster Simulation &Graduation Friday, April 23, Set up for Saturday Simulation 1 Coordinator @27.00/hour x 2 hours regular salary 54 1 Coordinator @24.00/hour x 2 hours regular salary 48 Saturday, April 24, Police/Fire Training Center All Overtime (Excluded) 0 Monday, April 26. Set up for Tuesday Simulation 1 Coordinator @27.00/hour x 2 hours regular salary 54 1 Coordinator @24.00/hour x 2 hours regular salary 48 Tuesday, April 27, Police/Fire Training Center 1 Coordinator @ $27.00/hour x 6 hours regular salary 162 1 Coordinator @ $24.00/hour x 6 hours regular salary 144 1 Burn Prop Operator @37.00/hour x 6 hours regular salary 222 j 2 Instructors @37.00/hour each x 6 hours regular salary 444 1 Instructor @36.00 hour x 6 hours regular salary 216 1 Moulage/victim coordinator @26.00 x 6 hours regular salary 156 Finalization of Spring Programs Film development, print, sign and mail certificates, post graduation photo on website, Inventory and replenish supplies, reorganize storage, submit mission completion to State 1 Coordinator @27.00/hour x approx. 10 hours regular salary 270 Total Spring Schedule Salaries $8408 2004 CERT CONTINUED EDUCATION CLASSES Three Continued Education Classes to be held in May 2004 One Afternoon Class and Two evening Classes 1 Coordinator @27.00 per hour x 12 hours preparation time (4 per class) 324 Registration, lesson plan development, room scheduling, printing, etc. 1 Coordinator @27.00 per hour x 6 hours regular time and 8 hours overtime (Excluded) 162 1 Coordinator @24.00 per hour x 6 hours regular time and 8 hours overtime (Excluded) 144 Total Continued Education Salaries $630 TRAVEL & PER DIEM City of Kent rate = .375/mde 5 Spring Program Classes held at Kent Fire Station 73 located approx 6 miles from Coord Office 3 Roundtnps (one set up, one classbme and one take down) = 36 miles 14 2 Continued Education Classes (location to be determined) Estimated mileage = 30 miles 11 Kent Cornucopia Days - Picking up, deliverying and returning trailer = approx. 50 miles 19 Covington Whistlestop Days - Picking up, delivering and returning trailer= approx. 50 mill 19 Total Travel $63 SUPPLIES Manuals/Binders—60 @ $10 $600 Miscellaneous supplies$200 per Class 400 coffee, drinks, paper supplies, propane, triage 3m tape, masking tape, duct tape bandages, moulage makeup, paper, markers, photocopying, laminating, medical gloves, film and development, Portable lights to be used for outside evening CERT training 2 Quick lites Model #536 side mounted bottom raised 650 watt @$457.60 each 916 Whelen Engineering - Kent Bruce at 253-639-9266 CERT Search and Rescue backpack- to be used during CERT Training. 220 CERT Medical Backpack- to be used during CERT Training 155 Total Supplies $2291 Additional supplies needed were procured through 2003 CERT Grant May need to be replenished by Fall 2004 MAIL & POSTAGE 3 Mailings to Current CERT Members for January 2004-August 2004 1 CERT Newsletter, 1 Continued Education Registration Letter and 1 Incentive Recruitment Letter 487 CERT Members x .37 x 3 mailings = 541 Total Postage $541 CONSULTANT FEES 2 ATC-20 Post Earthquake Safety Evaluation of Buildings Classes Estimated $500 per class 111000 Total Consultant Fees $1000 EMERGENCY WORKER VOLUNTEER PROGRAM DEVELOPMENT Hire Contractor to complete program as per attachment 10,000 Develop universally acceptable background checks, preregister, Budd database, team development program, mapping of teams and areas of responsibility Total Contractor Fees 10000 TOTAL COST ESTIMATES $22933 Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: PREMERA BLUE CROSS ADMINISTRATIVE SERVICE CONTRACT FOR 2004—AUTHORIZE 2. SUMMARY STATEMENT: As recommended by the Operations Committee, authorize the Mayor to sign the Premera Blue Cross 2004 Administrative Services Contract. Premera has agreed not to increase the administration fee of$54.73 per employee per month for the 2004 contract. The annual cost is approximately$560,000. For 2005 and 2006 Premera has agreed to guarantee a 6% yearly increase in administration fees paid by the city. The projected budget for the self-funded Premera Blue Cross program for 2004 is $9,059,259. • 3. EXHIBITS: Premera Blue Cross 2004 Administrative Services Contract 4. RECOMMENDED BY: Operations Committee (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6L ADMINISTRATIVE SERVICE CONTRACT BETWEEN PREMERA BLUE CROSS AND CITY OF KENT This Contract is effective January 1,2004,by and between the group named above(hereinafter referred to as the "Plan Sponsor"), and Premera Blue Cross(hereinafter referred to as the "Claims Admrmstrator") WHEREAS,the Plan Sponsor has established an employee benefit plan(hereinafter referred to as the "Plan")which provides for payment of certain welfare benefits to and for certain eligible individuals as defined by the Plan Document, such individuals being hereinafter referred to as "Participants,Dependents and Beneficiaries",and, WHEREAS,the Plan Sponsor has chosen to self-msure the benefit program(s)provided under the Plan,and WHEREAS, the Plan Sponsor desires to engage the services of the Claims Adrrumstrator to provide administrative services for the Plan, NOW THEREFORE, in consideration of the mutual covenants and conditions as contained herein the parties hereto agree to the provisions in this Contract,including any Attachments and endorsements thereto The parties below have signed as duly authorized officers and have hereby executed this Contract If this Contract is not signed and returned to the Claims Administrator within sixty(60)days of its delivery to the Plan Sponsor or its agent,the Claims Admunstrator will assume the Plan Sponsor's concurrence and the Plan Sponsor will be bound by its terms IN WITNESS WHEREOF the parties hereto sign their names as duly authorized officers and have executed this Contract CITY OF KENT BY. DATE Title ADDRESS PREMERA BLUE CROSS BY. � DATE March 2,2004 H.R.Brereton Barlow President and Chief Executive Officer P O Box 327 Seattle,WA 98 1 1 1-0327 7486T l SECTION I DUTIES AND RESPONSIBILITIES OF THE PLAN SPONSOR 101 The Plan Sponsor shall provide the Claims Administrator with a copy of the Plan Document and any other documents describing the benefit program(s)that the Clamis Administrator may rely upon in performing its responsibilities under this Contract 102 The Plan Sponsor shall have final discretionary authority to determine the benefit provisions and to construe and interpret the terns of the Plan 1 03 The Plan Sponsor shall have final discretionary authority to determine eligibility for benefits and the amount to be paid by the benefit program(s) 104 Unless specifically delegated to the Clauns Administrator by this Contract,the Plan Sponsor shall be responsible for the proper administration of the Plan mcludmg a. providing the Claims Administrator a complete and accurate list of all individuals eligible for benefits under the benefit program(s) and to update those lists monthly. The Claims Administrator shall be entitled to rely on the most recent list until it receives documentation of any change thereto b notifying the Claims Administrator on a monthly basis of changes in eligibility; c distributing to all eligible Participants,Dependents and Beneficiaries all appropriate and necessary materials and documents,including but not limited to benefit program booklets,summary plan descriptions,material modifications, identification cards,enrollment applications and notices required by law or that are necessary for the operation of the Plan, d providing the Claims Administrator with any additional information necessary to perform its functions under this Contract as may be requested by the Claims Administrator from time to time, f maintaining adequate funds from which the total cost of all claims for each preceding week will be paid to the Claims Administrator by wire transfer Funds must be provided within forty-eight(48)hours of phone notification by the Claims Administrator to a person designated by the Plan Sponsor If timely payment for the claims is not received by the Claims Adrmnistrator,the Plan Sponsor shall pay the Claims Administrator a daily late charge. This late charge is calculated from the first day following the forty-eight(48)hour period stated above This late charge is based on the average monthly prime rate posted by Bank of Amenca/Nations Bank during the Contract Period,plus two(2)percent on the amount of the late payments for the number of days late Late charges are due at the end of the Contract Period as part of the annual accounting or,if earlier,upon ternunation of the Contract. 105 The Plan Sponsor shall be responsible for all taxes,assessments and fees levied by any local,state or federal authority in connection with the Claims Admunstrator's duties pursuant to this Contract 106 The Plan Sponsor shall be responsible for the Plan's continuing compliance with federal,state and local laws and regulations, including but not lumted to the Internal Revenue Code,the Employee Retirement Income Security Act of 1974 (ERISA),the 7486T 2 Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA),the Health Insurance Portability and Accountability Act of 1996(HIPAA),and the Balanced Budget Act of 1997. The Plan Sponsor,and not the Claims Administrator, is the "plan adnnnistrator"for purposes of all federal laws that impose duties or obligations on such entities The Plan Sponsor shall be responsible for determining whether it is subject to COBRA and for notifying Participants,Dependents and Beneficiaries of their COBRA rights both initially and upon the occurrence of a qualifying event, for calculating and collecting premiums for COBRA continuation of coverage and for promptly notifying the Claims Administrator when an individual is no longer eligible for COBRA continuation of coverage 107 The Plan Sponsor shall be responsible for defending any legal action brought against the Plan, including a claim for benefits by or on behalf of any individual or entity, including but not limited to any Participant or former Participant,Dependent, Beneficiary, any fiduciary or other party This responsibility includes the selection and payment of counsel. The Plan Sponsor shall not settle any legal action or claim without the prior consent of the Claims Administrator if the action or claim could result in the Claims Administrator being liable,including for example,any liability for contribution to or indemnification of the Plan Sponsor or other third party either directly or indirectly L08 In the event the Claims Administrator does not have adequate information to complete the Certificate of Group Health Coverage as required by HIPAA,the Plan Sponsor shall be responsible for completing the missing information on the Certificate and forwarding it to the Participant,Dependent or Beneficiary upon their termination from the Plan or upon request within 24 months of ternunation 109 If the Plan Sponsor writes or revises its benefit booklet,the Claims Adrrunistrator must review and approve in advance the draft of the benefit booklet that is printed and distributed to Participants. 1 10 If an adverse decision is made in the Claims Administrator's second level of review, the Plan Sponsor shall offer the Participant a review by an Independent Review Organization(IRO) The Plan Sponsor shall pay all costs of the IRO review 1 11 If the Plan Sponsor elects to opt out of compliance with certain federal mandates as allowed by HIPAA,the Plan Sponsor is responsible to file its opt-out with federal regulators for each contract period and to notify Participants,Dependents,and Beneficiaries of the opt-out in accordance with federal law and regulations then in effect The Plan Sponsor agrees to hold the Claims Administrator harmless for any and all consequences ansing from the Plan Sponsor's failure to file an opt-out as required by law for a given contract period, errors in the opt-out filing, or failure to notify an enrollee as required by federal law SECTION II DUTIES AND RESPONSIBILITIES OF THE CLAIMS ADMINISTRATOR 201 The Claims Administrator agrees to perform the following administrative services for the Plan Sponsor The Claims Administrator shall a assist in the preparation and printing of the benefit program booklets, identification cards,and other materials necessary for the operation of the Plan; b process all eligible claims incurred after the effective date of this Contract which are properly submitted in accordance with the procedures set forth in the Plan Sponsor's benefit booklet Checks will be issued on the Clainis 7486T 3 Administrators check stock,but the responsibility for funding benefits is the Plan Sponsor's and the Clarms Admmstrator is not acting as an insurer. The Claims Administrator shall make reasonable efforts to determine that a claim is covered under the terms of the benefit program(s) as described in the benefit booklet,to apply the coordination of benefits provisions,identify subrogation claims,and make reasonable efforts to recover subrogated amounts administratively as stated in section 7 01,and prepare and distribute benefit payments to Participants,Dependents and Beneficiaries and/or service providers; c notify the Group weekly by telephone or electronic medium of the amount due for the prior week's claims, d. perform reasonable internal audits as stated in Section VI, e answer mquines from the Plan Sponsor,Participants,Dependents and Beneficiaries,and service providers regarding the terms of the Plan, although final authority for construing the terms of the Plan's eligibility and benefit provisions is the Plan Sponsors, f prepare and provide to the Plan Sponsor reports in accordance with Attachment B; g prepare and provide the Plan Sponsor of the operations of the Plan in accordance with Attachment B, h coordinate with any stop-loss insurance carrier, i when"preferred provider"benefits are provided,maintain a network of hospital and professional providers,paid clamis will reflect any negotiated provider discounts, 1 perform utilization management services(as identified) k provide a Certificate of Group Health Coverage to Participants,Dependents and Beneficiaries when their coverage under this Plan terminates or upon their request within 24 months of termination In the event the Claims Administrator does not have adequate information to complete the Certificate,the Plan Sponsor will be responsible for completing the missing information on the Certificate and forwarding it to the Participant, Dependent or Beneficiary 1 review and respond to the initial appeals of adverse benefit determinations as described in the benefit booklet provided by the Claims Admimstrator for this Plan The Claims Administrator shall also provide a second review of adverse appeal decisions made after its initial review This review will be conducted as described in the benefit booklet provided by the Claims Administrator for this Plan An"adverse benefit determination"means any of the following a denial, reduction,or termination of,or a failure to provide or make payment(in whole or in part)for,a benefit,including payment that is based on a determination of the eligibility of a Participant,Dependent, or Beneficiary to participate in the Plan This includes any denials,reductions,or failures to provide or make payment resulting from the application of utilization review or limitations on experimental and investigational services,medical necessity,or appropriateness of care 7486T 4 If an adverse decision is made in the Claims Administrator's second level of review,the Claims Admimstrator also agrees to facilitate a review of the appeal by an Independent Review Organization(IRO)on behalf of the Plan Sponsor The Clamps Admmustrator will subrmt all documentation regarding the appeal to the IRO and work with the IRO as needed to complete its review. The Claims administrator shall pass all costs of the IRO review on to the Plan Sponsor SECTION III LIMITS OFTHE CLAIMS ADMINISTRATOR'S RESPONSIBILITY 301 It is recognized and understood by the Plan Sponsor that the Claims Administrator is not an insurer and that the Claims Administrator's sole function is to provide claims admimstration services and the Claims Administrator shall have no liability for the funding of benefits. The Claims Admimstrator is empowered to act on behalf of the Plan Sponsor in connection with the Plan only as expressly stated in this agreement or as mutually agreed to in writing by the Claims Administrator and the Plan Sponsor 3.02 If,during the course of an audit performed internally by the Clam-is Administrator pursuant to Section 2.01 d or by the Plan Sponsor pursuant to Section VI of this Contract,any error is discovered,the Claims Administrator shall use reasonable efforts to recover any loss resulting from such error 303 The Claims Administrator is an independent contractor with respect to the services being performed pursuant to this Contract and shall not for any purpose be deemed an employee of the Plan Sponsor. 304 This Contract is between the Claims Adrrumstrator and the Plan Sponsor and does not create any legal relationship between the Claims Administrator and any Participant,Dependent, Beneficiary or any other individual 3 05 It is recognized by the parties that errors may occur and it is agiced that the Claims Adrmnistrator will not be held liable for such errors unless they resulted from its gross negligence or willful misconduct The Plan Sponsor agrees to defend, indemnify,and hold harmless the Clam-is Administrator from all claims,damages, liabilities,losses, and expenses ansmg out of the Claims Administrator's performance of administration services under the terms of this Contract,so long as they did not arise out of the Claims Administrator's gross negligence or willful nusconduct SECTION IV FEES OF THE CLAIMS ADMINISTRATOR 401 By the first of each month,The Plan Sponsor shall pay the Claims Administrator in accordance with the fee schedule set forth in Attachment C that is incorporated herem by reference 402 Late Payments a If,for any reason whatsoever,the Plan Sponsor fails to make a timely payment required under this Contract by the tenth day of the month in which payment is due, the Claims Adnnmstrator may suspend performance of services to the Plan Sponsor, including processing and payment of claims, 7486T 5 until such time as the Plan Sponsor makes the required payment, including interest as set forth in b below b In the event of late payment,the Claims Administrator may terminate this Contract pursuant to Section 9 05 Acceptance of late payments by the Claims Administrator shall not constitute a waiver of its right to cancel this Contract due to delinquent or nonpayment of fees. c The Claims Administrator will charge interest to the Plan Sponsor on all payments received after the tenth day of the month in which they are due, including amounts paid to reinstate this Contract after termination pursuant to Section 9 05,at the average prime rate posted by Bank of America/Nations Bank during the Contract Period plus two(2)percent on the amount of the late payments for the number of days late Interest will be in addition to any other amounts payable under this Contract SECTION V BLUECARD0 PROGRAM 501 Premera Blue Cross,like all Blue Cross and/or Blue Shield Licensees,participates in a program called"B1ueCard." Whenever enrollees access health care services outside Washington and Alaska,the claim for those services may be processed through BIueCard and presented to us for payment Payment is made according to the terms and limitations of your plan document and network access rules in the BIueCard Policies then in effect. Under B1ueCard,when enrollees receive covered services within the area served by another Blue Cross and/or Blue Shield Licensee (called the"Host Blue"in this section),Premera Blue Cross remains responsible for fulfilling our obligations under this contract The Host Blue will only be responsible for such services as contracting with providers and handling all interaction with contracting providers The Host Blue must perform these duties in accordance with applicable B1ueCard Policies. The financial terms of BIueCard are described generally below 502 Liability Calculation Method Per Claim The amount the enrollee pays for covered services obtained outside {Washington and Alaska/Washington/this Plan's service area} through BIueCard is calculated on the lower of 1)the billed charges for the enrollee's covered services,or 2)the "negotiated price"that the Host Blue passes on to Premera Blue Cross for the enrollee's covered services Most often,the Plan Sponsor's liability for covered services processed through BIueCard is calculated on the same amount on which the enrollee's liability is calculated However, in rare cases required by the Host Blue's contract with the provider,the Plan Sponsor's liability will be calculated on the Host Blue's negotiated price even when that price exceeds the billed charge The methods used to determine the negotiated price will vary among Host Blues according to the terms of their provider contracts Often,the negotiated price will consist of a smiple discount,which reflects the actual price allowed as payable by the Host Blue. But,sometimes,it is an estimated price that factors in the Host Blue's expected settlements,withholds,any other contingent payment arrangements and non-clamors transactions with the enrollee's health care provider or with a specified group of providers The negotiated price may also be a discount from billed charges that reflects an average expected savings with the enrollee's health care provider or a specified group of providers The price that reflects average savings may result in greater variation above or below the actual price than will the estimated price In accordance with national B1ueCard policy,these estimated or 7486T 6 it average prices will also be adjusted from time to time to correct for overestimation or underestimation of past prices However,the amount on which the enrollee's and the Plan Sponsor's payments are based remains the final price for the covered services billed on that claim In addition,if the Host Blue's negotiated price is an estimated or average price,as described above, some portion of the amount the Plan Sponsor pays may be held in a variance account by the Host Blue,pending settlement with its contracting providers Because all amounts paid are final,any funds held in a variance account do not belong to the Plan Sponsor and are eventually exhausted by provider settlements and through prospective adjustments to the negotiated prices Some states may mandate a surcharge or a method of calculating what enrollees must pay on a clann that differs from BlueCard's usual method noted above and is not pre-empted by federal law If such a mandate is in force on the date the enrollee received care in that state, the amounts the enrollee and the Plan Sponsor must pay for any covered services will be calculated using the methods required by that state's mandate Such methods might not reflect the entire savings expected on a particular claim The calculation methods described above in this section 5 02 do not apply to BlueCard Worldwide claims Under BlueCard,recoveries from a Host Blue or from contracting providers of a Host Blue can arise in several ways Examples are antifraud and abuse audits, provider/hospital audits,credit balance audits, utilization review refunds,and unsolicited refunds In some cases, the Host Blue will engage third parties to assist in discovery or collection of recovery amounts The fees of such a third party are netted against the recovery Recovery amounts,net of any fees, will be applied in accordance with applicable BlueCard Policies,which generally require correction on a claim-by-claim or prospective basis 5 03 BlueCard Worldwide® If enrollees are outside the United States,the Commonwealth of Puerto Rico, Jamaica and the British and U S Virgin Islands,they may be able to take advantage of BlueCard Worldwide BlueCard Worldwide is unlike the national BlueCard program in certain ways For instance, although BlueCard Worldwide provides a network of contracting hospitals,it offers only referrals to doctors and other health care providers When receiving care from doctors or other health care providers, enrollees will have to submit claim forms on their own behalf to obtain reimbursement for the services provided through BlueCard Worldwide 504 BlueCard Fees and Compensation-Overview The Plan Sponsor understands and agrees to the following• a To pay certain fees and compensation to us which we are obligated under BlueCard to pay to the Host Blue,to the Blue Cross and Blue Shield Association,or to the BlueCard vendors These fees are billed to the Plan Sponsor as shown in Attachment C,"Fees of the Claims Administrator" b That fees and compensation under BlueCard may be revised from time to time without the Plan Sponsor's prior approval in accordance with the Blue Cross and Blue Shield Association's standard provisions for revising fees and compensation under BlueCard 7486T 7 Some of these fees and compensation apply each time a claim is processed through B1ueCard Examples of these are access fees(see 5 05 and 5 06 below), administrative expense allowance fees,Central Financial Agency Fees, and ITS Transaction Fees Also, some of these claim-based fees,such as the access fee and the admustrative expense allowance fee,may be passed on to the Plan Sponsor as an additional claim liability. Examples of fees not applied on a per-claim basis are an 800 number fee and a fee for providing provider directories If you want an updated listing of these types of fees or the amount of these fees paid directly by you,please contact us 505 Access Fees Host Blues may charge the Claims Administrator an access fee for making their discounted rates and the resulting savings available on claims incurred by the Plan Sponsor's Participants and Beneficiaries Access fees are based on the difference between the amount paid by the Host Blue and the amount this Plan would have paid if it had dealt with the out-of-area provider directly The access fee,if one is charged,may equal up to 10 percent of the Host Licensee's discount/differential savings,but may not exceed$2,000 per claim The access fee may be charged only if the Host Blue's arrangement with the provider prolubits billing enrollees for amounts in excess of the discounted rate However,providers may bill for deductibles,coinsurance, amounts in excess of stated benefit maximums,and charges for noncovered services In the event a participating provider discount cannot be passed along to the Participant or Beneficiary,no discount or access fee will apply 506 How Access Fees Affect The Plan Access fees are considered a claims expense because they represent claims dollars the Plan Sponsor is unable to avoid paying Instances may occur in which the Claims Administrator does not pay a claim(or pays only a small amount)because the amounts eligible for payment were applied to the deductible and/or coinsurance In these instances,the access fee would still apply even though little or none of the claim was paid SECTION VI AUDIT 601 Within thirty(30)days of written notice from the Plan Sponsor, the Claims Administrator shall allow an authorized agent of the Plan Sponsor to inspect or audit all records and files maintained by the Claims Administrator which are directly pertinent to the administration of the Plan for the current or most recently ended contract period Such documents shall be made available at the administrative office of the Claims Administrator during normal business hours The Plan Sponsor shall be liable for any and all fees charged by the auditor All audits shall be subject to the Claims Administrator's audit policies and procedures then in effect To the extent that the Plan Sponsor requests data and reports that are beyond the scope of the Claim Administrator's audit policies and procedures,the Plan Sponsor shall reimburse the Claims Administrator for the additional adrninistrative costs incurred in producing such data and reports Any agent or auditor who has access to the records and files maintained by the Clauns Administrator shall agree not to disclose any proprietary or confidential information used in the business of the Claims Administrator 7486T 8 SECTION VII SUBROGATION 701 The Claims Administrator shall make reasonable efforts to pursue subrogation claims administratively on behalf of the Plan. However,the Clam-is Administrator shall have no affirmative duty to pursue subrogation claims beyond those specified in section 2 01 b The Plan Sponsor shall have the sole discretion to bring any legal claim or action to enforce the Plan's subrogation provisions The Claims Administrator will cooperate with the Plan Sponsor in the event the Plan Sponsor brings any legal action to enforce the subrogation provisions of the Plan Any costs and attorneys'fees incurred in pursuing such subrogation clamms shall be the responsibility of the Plan Sponsor SECTION VIII TERM OF CONTRACT 901 The term of this Contract shall be the period from 12 01 a in.on January 1,2004,to midnight on December 31,2004(hereinafter referred to as the "Contract Period") 802 Except as stated otherwise in section 9 03 below,the terms and conditions of this Contract and the fee schedule set forth in Attachment C are established for the Contract Period 8,03 The Plan Sponsor acknowledges that the fee schedule set forth in Attachment C and the services provided for in this Contract are based upon the terms of the Plan and the enrollment as they exist on the effective date of this Contract Any substantial changes,whether required by law or otherwise,in the terms and provisions of the Plan or in enrollment may require that the Claims Administrator incur additional expenses The parties agree that any substantial change, as determined by the . Claims Administrator, shall result in the alteration of the fee schedule, even if the alteration is during the Contract Period The phrase"any substantial change"shall include,but not be]muted to a a fluctuation of twenty-five(25)percent or more in the number of Participants,Dependents and Beneficiaries as set forth on the census information included in Attachment A which is herein incorporated by reference and made a part of this Contract, b the addition of benefit program(s)or any change in the terms of the Plan's eligibility rules,benefit provisions or record keeping rules that would increase administration costs by more than$2,000, c any change in claims administrative services, benefits or eligibility required by law; d any change in administrative procedures from those in force at the inception of this Contract that is agreed upon by the parties, e any additional services which the Claims Administrator undertakes to perform at the request of the Plan Sponsor which are not specified in this Contract such as the handling of mailings or preparation of statistical reports and surveys not specified in this Contract. • SECTION IX TERMINATION 901 The Plan Sponsor may terminate this Contract at any time by giving the Clamis Administrator thirty(30)days written notice 7486T 9 902 This Contract will terminate on the last day of the Contract Period or the last day of any extension of the Contract Period granted by the Plan Administrator 9.03 Either party may terminate this Contract effective immediately by giving written notice to the other if a party becomes insolvent,makes a general assignment for the benefit of creditors,files a voluntary petition of bankuptcy, suffers or permits the appointment of a receiver for its business or assets, or becomes subject to any proceeding under any bankruptcy or insolvency law,whether foreign or domestic. A party is insolvent if it has ceased to pay its debts in the ordinary course of business,cannot pay its debts as they become due, or the sum of its debts is greater than the value of its property at a fair valuation 904 If loss of services is caused by,or either party is unable to perform any of its obligations under this Contract,or to enjoy any of its benefits because of natural disaster,action or decrees of governmental bodies or communication failure not the fault of the affected party, such loss or inability to perform shall not be deemed a breach The party who has been so affected shall immediately give notice to the other party and shall do everything possible to resume performance, Upon receipt of such notice, all obligations under this Contract shall be immediately suspended If the period of nonperformance exceeds thirty(30)days from the receipt of such notice,the party whose performance has not been so affected may,as its sole remedy, terminate this Contract by written notice to the other party effective immediately. In the event of such termination,the Plan Sponsor shall remain liable to the Claims Administrator for all payments due,together with interest thereon as provided for in Section 4 02 905 The Claims Administrator may,at its sole discretion, terminate this Contract effective as of a missed payment due date in the event that the Plan Sponsor fails to make a timely payment required under this Contract. 906 In the event this Contract is terminated prior to the end of the Contract Period,the Plan Sponsor shall remain liable to the Claims Admmnistrator for all delinquent sums together with interest thereon as provided for in section 4 02 above Furthermore,the Claims Adrmmstrator will have incurred fixed costs which,but for the termination,would have been recouped over the course of the Contract Period. Therefore,in the event that the Contract terminates pursuant to Section 9 01 or 9 05,the Plan Sponsor shall also pay the Claims Administrator as liquidated damages,and not as a penalty,an amount equal to two(2)months administration fees. This monthly fee shall be determined by multiplying the rate set forth in Attachment C multiplied by the average number of Participants,Dependents and Beneficiaries covered by the Plan for the immediately preceding six(6)month period or such shorter period if this Contract has not been in effect for a period of six(6)months. The Plan Sponsor shall remain liable for claims incurred during the Contract Period but not paid during the Contract Period and for the claims run-out processing fee set forth in subsection C of Attachment C 907 Within one hundred twenty(120)days of termination by either party,the Claims Administrator shall deliver to the Plan Sponsor an interim accounting Within fifteen(15)months of termination the Claims Administrator shall deliver to the Plan Sponsor a complete and final accounting of the status of the Plan At the expense of the Plan Sponsor,the Claims Administrator shall make available a record of deductibles and coinsurance levels for each Participant, Dependent and Beneficiary and deliver this information to the Plan Sponsor or its authorized agent 7486T 10 908 For the twelve(12)month period following termination of this Contract,the Claims Administrator shall continue to process eligible claims incurred prior to termination at the clauns run-out processing fee rate set forth in Attachment C SECTION X DISCLOSURE 1001 It is recognized and understood by the Plan Sponsor that the Claims Administrator is subject to all laws and regulations applicable to Claims Administrators and health care service contractors 1002 It is recognized and understood by the Plan Sponsor that the Claims Administrator is not acting as an insurer and also is not providing stop-loss insurance SECTION XI OTHER PROVISIONS 1101 Choice of Law The validity,interpretation, and performance of this Contract shall be controlled by and construed under the laws of the state of Washington,unless federal law applies Any and all disputes concerning this Contract shall be resolved in WASHINGTON King County Superior Court or federal court as appropriate 11,02 Trademarks The Claims Administrator reserves the right to,the control of,and the use of the words "Premera Blue Cross" and"Premera Blue Cross Blue Shield of Alaska"and all symbols,trademarks and service marks existing or hereafter established. The Plan Sponsor shall not use such words, symbols,trademarks or service marks in advertising,promotional materials,materials supplied to Participants,Dependents and Beneficiaries or otherwise without the Claims Administrator's prior written consent which shall not be unreasonably withheld 1103 Independent Corporation The Plan Sponsor hereby expressly acknowledges,on behalf of itself and all of its eligible employees and their eligible dependents,its understanding that this Administrative Service Contract constitutes a Contract solely between the Plan Sponsor and the Claims Administrator,that the Claims Admunistrator is an independent corporation operating under a license with the Blue Cross and Blue Shield Association,an association of independent Blue Cross and Blue Shield Plans (the "Association")permitting the Claims Adrnuustrator to use the Blue Cross Service Mark in the States of Washington and Alaska,and that the Claims Admnistrator is not contracting as the agent of the Association The Plan Sponsor further acknowledges and agrees that it has not entered into this Administrative Service Contract based upon representations by any person other than the Claims Adrmnistrator, and that no person,entity or organization other than the Claims Adrmnistrator shall be held accountable or liable to the Plan Sponsor for any of the Claims Administrator's obligations to the Plan Sponsor created under this Administrative Service Contract This provision shall not create any additional obligations whatsoever on the Clauns Administrator's part other than those obligations created under other provisions of this Administrative Service Contract 7486T 11 1104 Notice Except for the notice given pursuant to section 104 f, any notice required or permitted to be given by this Contract shall be in writing and shall be deemed delivered three(3)days after deposit in the United States mail,postage fully prepaid,return receipt requested, and addressed to the other party at the address as shown on the Face Page of this Contract 1105 Integration This Contract,including any appendices or attachments incorporated herein by reference,embodies the entire Contract and understanding of the parties and supersedes all prior oral and written communications between them Only a writing signed by both parties hereto hereof may modify the terms 1106 Assignment Neither party shall assign this Contract or any of its duties or responsibilities hereunder without the prior written approval of the other SECTION XII ATTACHMENTS TO THE ADMINISTRATIVE SERVICE CONTRACT 1201 The following attach to and become part of the body of this Contract and they are herein incorporated by reference Attachment A-Census Attachment B-Reporting Attachment C-Fee Schedule Attachment D—Business Associate Agreement Attachment E -Right Of Conversion I i 7486T 12 ATTACHMENT A CENSUS INFORMATION Administration Fees,effective January 1,2004,are based on the following Number of Active and Retired Enrollees: Employee Spouse Children Medical/Rx 767 536 841 Dental 807 554 876 Vision 59 25 0 Number of COBRA Enrollees: Employee Spouse Children i Medical/Rx 6 0 4 Dental 6 0 4 Vision 0 0 0 Other Carriers Offered: Group Health Cooperative PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99,13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 ATTACHMENT B REPORTING The following reports will be provided to the Plan Sponsor within the fees set forth in Attachment C Report Title Frequency Weekly Claims Recap Weekly Detail Claim Runs Monthly Premumi/Claims Report Monthly Large Claims Analysis Yearly PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01,13596-99,13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 ATTACHMENT C FEES OF THE CLAIMS ADMINISTRATOR Pursuant to the Administrative Service Contract,the Group shall pay the Claims Administrator a fee,as set forth below,for administrative services A. Administration Fees Co osite 2004 2005 2006 13596-99 $56 03 $59 39 $61 77 17620,-01 $54 73 $58.01 $60 33 22066, -01 $54 73 $58 01 $60 33 13597, -01 $8 07 $8 55 $8 89 Premera Blue cross reserves the right to adjust the guaranteed administrative fees for 2005 and 2006 in the following circumstances • City of Kent makes benefit modifications or changes in the way the plan operates that would materially increase Premera's cost to administer the plan(a change to the Dimensions platform would not be deemed to materially increase Premera's cost) • Legislated tax changes increase Premera's cost • City of Kent enrollment(members and/or contracts)fluctuate+1- 10%per contract year • City of Kent offers employees healthcare options other than Premera Blue Cross and Group Health Cooperative B Other Fees Booklets $2 05 per book I D Cards $0 88 per card Prescription Drug Charge $1 40 per claim Conversion Contract Fee $1,000 per conversion C Brokerage Fees and Commission Medical $2.36 per employee per month Freestanding Dental $ 36 per employee per month D Claims Runout Processing Fee 10 00%of runout claims processed by PBC E B1ueCard Fees Tracked and billed as part of the annual accountmg for the Contract Period PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 ATTACHMENT D BUSINESS ASSOCIATE ATTACHMENT TO ADMINISTRATIVE SERVICE CONTRACT FOR ERISA GROUPS This Business Associate Attachment(the"Attachment")shall be entered into by and between the Claims Administrator,the Plan Sponsor and the Group Health Plan(the"GHP")(as defined below)on the effective date of this Contract. Recitals 1 In 1996,Congress enacted the Health Insurance Portability and Accountability Act("HIPAA"), which required,among other things,the promulgation of privacy rules governing the use and disclosure of protected health mformation, 2. In pertinent part,the HIPAA privacy rules,codified at 45 C F R.Parts 160 and 164, subparts A and E,and as amended(the"Privacy Rule")require that covered entities, including the GHP, maintain business associate agreements wrath third parties that provide certain services for and on behalf of the GHP,including the Claims Administrator, and outline specific contractual requirements to be incorporated into the business associate agreements 3 In addition to being the business associate of the GHP,the Clamis Administrator is also a covered entity,as defined in the Privacy Rule,and has policies,procedures and practices in place to ensure compliance with the Privacy Rule 4. Because the Clamrs Administrator is regulated under other state and federal privacy laws, it has adopted the term"protected personal information"or"PPI"(as defined below)and will apply the obligations contained in this Attachment to that information NOW,THEREFORE, in consideration of these premises and the mutual promises and agreements hereinafter set forth,the Plan Sponsor,the GHP and the Claims Administrator hereby agree as follows 1 Definitions. The following definitions shall apply in interpreting this Agreement Terms used,but not otherwise defined shall have the same meaning as those terms in the Privacy Rule(as defined below) 1 I Group Health Plan or GHP The GHP shall be defined consistent with 45 CFR 164 103, and as amended 12 Individual. "Individual"shall mean the person who is the subject of the PPI or their personal representative(as defined in§164 502(g)of the Privacy Rule) 13 Protected Personal Information or PPI "PPI"shall mean any and all information created or received by the Clarrns Administrator,that identifies or can readily be associated with the identity of an Individual,whether oral or recorded in any form or medium,that directly related to: (1)the past,present or future physical,mental or behavioral health or condition of an Individual;(2)the past,present or future payment for the provision of health care to an Individual, (3)the provision of health care to an Individual,and(4)the past,present or future finances of an Individual, including,without limitation,an Individual's name, address, telephone number, Social Security Number, subscriber number or wage information PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 14 Secretary "Secretary"shall mean the Secretary of the Department of Health and Human Services or his designee • 2. GHP. The Claims Administrator,Plan Sponsor and GHP all agree to add the GHP as a party to the Contract and acknowledge that the GHP's obligations under the Contract are contained completely in this Attachment 3. Safeguard of PPI. The Claims Administrator will maintain reasonable and appropriate admirnstrative,technical and physical safeguards,as required by applicable laws to protect against reasonably anticipated threats or hazards to,and to ensure,the security and integrity of PPI,to protect against reasonably anticipated unauthorized use or disclosure of PPI,and to reasonably safeguard PPI from any intentional or unintentional use or disclosure in violation of the Attachment 4. Permitted Uses and Disclosures of PPI by the Claims Administrator. 41 Functions and Activities on the GHP's Behalf The Claims Administrator shall be permitted to use and disclose PPI for(a)the management,operation and administration of the GHP and(b)as otherwise necessary to provide the services set forth in the Contract, including,but not limited to activities related to Payment and Health Care Operations as defined in§164 501 of the Privacy Rule 42 Disclosures to the Plan Sponsor,the GHP or other Business Associates of the GHP Except as otherwise permitted by this Attachment or another written directive from GHP, the Claims Administrator,will not disclose PPI to the Plan Sponsor, the GHP or to another business associate of the GHP The Claims Administrator,may disclose PPI only to those individuals employed by the GHP,Plan Sponsor or other business associates of the GHP, including,without lunitatron,the GHP's broker, identified in Exhibit D-1, which is attached hereto and incorporated herein The GHP must promptly notify the Claims Adm imstrator of any changes to Exhibit D-1 43 Functions and Activities on the Claims Adrrunrstrator's Behalf The Claims Administrator shall be permitted to use PPI as necessary for the Claims Administrator's management and administration or to carry out its legal responsibilities as permitted or required by law. The Claims Administrator shall also be permitted to disclose PPI to its business associates, subcontractors or other third parties as necessary for proper management and administration of the Claims Administrator, or to carry out the Claims Administrator's legal responsibilities(a) if the disclosure is required by law or(b)if before the disclosure is made,the Claims Adriumstrator,obtains a contract from the entity to which the disclosure is to be made containing reasonable assurances that the entity will also comply with the Privacy Rule's business associate requirements 5. Minimum Necessary. The GHP and the Plan Sponsor will make reasonable efforts to request from the Claims Adrinstrator only the minimum amount of PPI necessary for its needed purpose In addition,the GHP and the Plan Sponsor will make reasonable efforts to only disclose to the Claims Administrator the mrmmum amount of PPI necessary for the Claims Administrator to perform the services identified in the Contract and other functions and activities referenced in Section 3 of this Attachment. Finally,the Claims Administrator will make reasonable efforts to use, disclose, or request only the minimum amount of PPI necessary from any third party to perform the services identified in the Contract and other functions and activities referenced in Section 3 of this Attachment PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 6. Other Prvacv Oblieations of the Claims Administrator The Claims Admimstrator shall 6.1 Not use or further disclose PPI other than as pernutted or required by the Contract,the Attachment or law; 62 Report to GHP any actual use or disclosure of PPI concerning GHP's Participants, Dependents and Beneficiaries not pemutted or required by the Contract,the Attachment or law of which it becomes aware, 6.3 Ensure that any agents,including a subcontractor,to whom it provides PPI received from, or created or received by the business associate on behalf of,the GHP agree to the same restrictions and conditions as outlined in the Privacy Rule that apply to a business associate with respect to such information, 64 Make available PPI as required by§164 524; 65 Make available PPI for amendment and incorporate any amendments to PPI as required by§164 526, 66 Make available the mformation required to provide an accounting of disclosures as required by§164 528, 67 Make its internal practices,books,and records relating to the use and disclosure of PPI received from,or created or received by the Claims Administrator on behalf of, the GHP available to the Secretary for purposes of determining the GHP's compliance with the Privacy Rule,and 68 Restrict the use and disclosure of PPI in accordance with§164 522 and consistent with the Claims Administrator's policies,procedures and practices 7. The Claims Administrator's Privacy-Related Services Reeardine Requests by Individuals Upon receipt,the GHP shall immediately provide notice to and forward any and all individual requests received pursuant to §164 522, §164 524, §164 526 or§164 528 of the Privacy Rule (collectively referred to as the"Requests")consistent with Exhibit D-2 Upon the Claims Administrators receipt of the Requests, either from the GHP or directly from the Individual,the Claims Administrator shall• 7 1 Evaluate each request consistent with the Privacy Rule and the Claims Administrator's policies,procedures and practices, 7.2 For Requests that may affect the policies,procedures or practices of the GHP,coordinate with the GHP about evaluation of the Requests and mutually agree on the result, 7.3 For Requests that may involve the GHP's other business associates,request information from the business associates identified by the GHP necessary for fulfilling the Requests, 74 Communicate the result of the evaluation directly to the Individual within the legal timeframes established for each type of request;and 7 5 Notify the GHP of the outcome of each Request identified by the GHP at the time of notice to the Claims Administrator,and 76 Implement each Request that is granted PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99,13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 Such services shall be included in the Claims Administrator's Administration Fee set forth in Attachment C S. GHP's Notice of Privacy Practices 8 1 Preparation of the GHP's Notice of Privacy Practices Claims Administrator will provide the GHP a copy of notice of privacy practices as it relates to the Claims Adnumstrator's functions and activities contained m the Contract and this Attachment,which the GHP shall mcorporate into the GHP's Notice of Privacy Practices(the"Privacy Notice") 8.2 Amendment of the GHP's Privacy Notice the GHP shall be responsible for modifying the Privacy Notice in the event that the GHP, the Plan Sponsor or the Claims Administrator materially changes its privacy policies,procedures or practices that affect the Prvacy Notice The party necessitating the change to the Privacy Notice shall bear any reasonable costs associated with revising and distributing the Privacy Notice The GHP,the Plan Sponsor and the Claims Administrator will not institute such material change before the effective date of the GHP's revised Privacy Notice 83 Distribution of the GHP's Privacy Notice of Privacy Practices The GHP shall be responsible for the distribution of its Privacy Notice, and any revisions to its Privacy Notice within a reasonable time 9. Term and Termination 91 Term The Term of this Attachment shall begin as of the Effective Date contained herein and shall remain in effect for the duration of the Contract 92 Termination for Breach of Privacy Obligations The GHP will have the right to ternunate the Contract if the Claims Administrator has engaged in a pattern of activity or practice that constitutes a material breach or violation of the Claims Administrator's obligations regarding PPI under this Attachment The contractual requirements for termination are outlined in the Contract 93 Effect of Termination a Return or Destruction of PPI Upon Termination of Contract upon cancellation, termination,expiration or other conclusion of the Contract,the Claims Administrator will,if feasible,return to the GHP or else destroy PPI, in whatever form or medium that the Claims Administrator,created or received for or from the GHP,mcluding all copies of and any data or compilations derived from such PPI that allow identification of any Individual The Claims Administrator will complete such return or destruction as promptly as practical, but not later than sixty days after the effective date of the cancellation, termination, expiration or other conclusion of the Contract b Reimbursement The Plan Sponsor will reimburse the Claims Adrriimstrator's reasonable costs and expenses incurred in returning or destroying such PPI c Disposition When Return or Destruction of PPI is Not Feasible In the event that returnmg or destroying the PPI is not feasible as determined by the Clanns Administrator,the Claims Administrator will limit further use or disclosure of the PPI to those purposes that make their return to the GHP or destruction infeasible and shall extend the privacy protections contained herein to that PPI for as long as the Clamis Administrator retams it PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 10. Order of Precedence. This Attachment shall supercede and replace any and all provisions in the Contract concerning confidentiality or privacy. In addition,the notice provisions of tlus Attachment shall prevail over the Contract only to the extent that such notice is related to the obligations contained herein Except as otherwise provided in this section,in the event that any other terms or conditions contained in this Attachment conflict or are inconsistent with the Contract,the terms and conditions of the Contract shall prevail. IN WITNESS WHEREOF,the parties have signed this Attachment effective as of the date indicated above CLAIMS ADMINISTRATOR Its: President and Chief Executive Officer PLAN SPONSOR Its: Dated: GHP Its: Dated: PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99,13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 EXHIBIT D-1 ERISA GROUP BUSINESS ASSOCIATE ATTACHMENT GHP's Authorized Representatives GHP authorizes the Claims Administrator to disclose PPI to achieve the purpose(s)as outlined below to the following people that are(a)employed by the GHP,(b) employed by the Plan Sponsor or(c)employed by a business associate of the GHP Date Entity Name Purpose for Disclosure (mm/dd/ GHP or Plan Sponsor) PLAN SPONSOR: Citv of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 EXHIBIT D-2 ERISA GROUP BUSINESS ASSOCIATE ATTACHMENT Notification Requirements Privacy-Related Services Regarding Requests All notices required under Section 7 of this Attachment shall be given in writing,delivered by facsimile or in person,and addressed as follows• GHP: (Name) (Department) (Telephone Number) (Fax Number) Claims Administrator: Premera Blue Cross Complaints and Appeals Department P O Box 91102 Seattle, WA 981 1 1-9202 Telephone- 1 800.345.6784 Fax. 425 918 5592 PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1, 2004 ATTACHMENT E RIGHT OF CONVERSION FOR TERMINATED PLAN PARTICIPANTS AND THEIR DEPENDENTS The Plan Sponsor requests that the Claims Adinimstrator provide a conversion privilege to terminated Plan Participants and their dependents in consideration of the following Responsibilities of the Claims Administrator The Claims Administrator shall make available to Plan Participants and their dependents an opportunity to obtain health care coverage(hereinafter referred to as Conversion Contract)when they are no longer eligible for coverage under the Plan due to. • Termination of employment • Termination of benefits for the class in which the Plan Participant or dependent belongs • A covered dependent's attainment of the limiting age • A covered spouse's legal separation or divorce • Death of a covered employee The Claims Adirunistrator shall not be required to issue a Conversion Contract if the Plan Participant or dependent becomes covered under a group health insurance policy within 31 days after termination of his or her coverage under the Plan Application and payment of the applicable rate for the Conversion Contract must be made by the Plan Participant or dependent within 31 days after such individual's conversion privilege of its group health coverage contracts Rates for the Conversion Contract shall be deternned by the Claims Administrator and be the same as those then in effect for coverage offered under the standard conversion privilege of its group health coverage contracts Rates will not be guaranteed and the Claims Administrator will have the right to change the rate of any Conversion Contract Compensation The Plan Sponsor shall pay the Claims Admimstrator a$1,000 conversion privilege fee for each conversion contract issued to a former Plan Participant or dependent The Claims Adrnui strator shall notify the Plan Sponsor of the conversion privilege fees owed in connection with the weekly notification of claims paid PLAN SPONSOR: City of Kent PLAN NUMBER: 17620,22066,-01, 13596-99, 13597,-01 PLAN DOCUMENT EFFECTIVE DATE: January 1,2004 Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: KING COUNTY HOUSING AUTHORITY AMENDMENT TO HOUSING COOPERATION AGREEMENT REGARDING HARRISON HOUSE CAPITAL IMPROVEMENTS —AUTHORIZE 2. SUMMARY STATEMENT: Approval of the amendment to the Interlocal agreement between the city and the King County Housing Authority. The "Harrison House"project was authorized by Ordinance No. 2948 adopted on November 6, 1990, which authorized the issuance of$6.7 million in Unlimited Tax General Obligation Bonds for the construction of the project. On June 4, 1991, the City adopted Ordinance No. 2985 authorizing the City to enter into the Housing Cooperation Agreement (Interlocal agreement) with the King County Housing Authority. The bonds were subsequently refunded to lower the interest rate. There are $3,210,000 plus unamortized discounts currently outstanding on these bonds. • 3. EXHIBITS: Interlocal agreement 4. RECOMMENDED BY: Operations Committee (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Reduction of$17,280 in subsidies for rental assistance Expenditure? X Revenue? Currently in the Budget? Yes No X If no: Unbudgeted Expense: Fund General Amount $_(17,280) Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6M FIRST AMENDMENT TO HOUSING COOPERATION AGREEMENT This is a first amendment to that certain Housing Cooperation Agreement dated June 13, 1991 (the "HCA"), between the HOUSING AUTHORITY OF THE COUNTY OF KING, a public body corporate and politic formed under Washington law (the "Authority") and the CITY OF KENT, a Washington municipal corporation (the "City") Capitalized terms not defined in this First Amendment shall have the meaning ascribed to them in the HCA. I . RECITALS WHEREAS, The Authority and the City entered into the HCA to facilitate their cooperation in financing, developing and operating housing for low-income senior citizens in the City of Kent The City's participation in the Protect was specifically authorized by City Ordinance No. 2948, passed on November 6, 1990, authorizing issuance of$6 7 million Unlimited Tax General Obligation (UTGO) Bonds to finance the construction of the Project, Ordinance No. 2985, passed on June 4, 1991, authorizing the City to enter into the HCA, and Ordinance No. 3115, passed on May 18, 1993, authorizing the City to issue UTGO Refunding Bonds to refinance the original $6 7 million in bonds at a lower rate of interest WHEREAS, Pursuant to the HCA, the City designed and constructed the Project which consists of a 94 unit apartment building for low income senior citizens known as Harrison House, located at 615 W Harrison Street in downtown Kent Following completion of construction, on December 15, 1992, the City transferred, and the Authority accepted, the Project On the same day, public notice of the restrictions contained in the HCA was recorded under King County recording No 9212150717 WHEREAS, It has been discovered that Harrison House has suffered a failure of its stucco building envelope due to moisture penetration. It is now essential that remedial action be undertaken to repair and prevent further structural damage, and to make other needed improvements to the building The present estimate of the cost of repairing structural damage, replacing the building envelope, rebuilding the exterior decks and undertaking other needed capital improvements is approximately$2 4 million t First Amendment to Housing Cooperation Agreement (between Housing Authority of King County and City of Kent) (April 19, 2004) WHEREAS, The Authority proposes to minimize the impact on the rents of the low income senior citizens currently residing at Harrison House by financing the needed repairs and capital replacements by utilizing federal Section 8 rental assistance in combination with a low interest loan from the King County Housing Finance Program, and the equity proceeds from syndication of Low Income Housing Tax Credits allocated by the Washington State Housing Finance Commission (collectively"Funding Sources"). WHEREAS, To qualify for and undertake the needed financing, it will be necessary to amend the HCA to eliminate certain restrictions and to permit the Authority to i To use rental revenues for the repayment of loans, debt, financing related fees and costs, development fees and costs, lease payments and to pledge rental revenues to secure debt and equity financing for the Project n Encumber the Project with instruments providing security for repayment of borrowed funds and/or performance of covenants related to borrowed, granted or invested funds and the allocation of Low Income Housing Tax Credits III. Enter into a long-term lease of the Project to a tax credit limited partnership, limited liability partnership, or limited liability company ("Partnership")of which the Authority will be the sole managing general partner or managing member ("Managing Partner" and the tax credit investor(s) will be the limited partners or members ( "Investment Partner(s)") IV Establish an admission policy that gives priority for admission for 50% of the housing units at Harrison House to very low income seniors with incomes at or below 30% of the King County median income V. Retain fee simple title to the Protect throughout the term of the Authority's financing obligations by restricting transfer or reversion of the property to the City while these obligations are outstanding, so long as the Project continues to be used to provide affordable housing opportunities for low income seniors WHEREAS, The Authority, in connection with the new financing, proposes to i. Provide Section 8 rental assistance to approximately 54 low income senior citizens at Harrison House u Relieve the City of its obligation to subsidize the rent of 12 very low income senior citizens saving the City approximately$17,280 per year ni Pay in full an outstanding LID assessment of $71,412 in connection with LID No. 351. 2 First Amendment to Housing Cooperation Agreement (between Housing Authorty of King County and City of Kent) (Apnl 19, 2004) WHEREAS, Leasing the Project to a private Partnership for the purpose of obtaining and utilizing Low Income Housing Tax Credits will require the City to take "remedial action" as defined by the IRS Code and accompanying Treasury regulations with respect to an allocable portion of the 1993 UTGO Refunding Bonds by advance refunding the outstanding tax exempt bonds with the proceeds of a newly issued, taxable, UTGO refunding bond issue NOW THEREFORE, to undertake the needed repairs at Harrison House with minimal impact to the building's current residents and to preserve the building and the critical services it provides to the community, the Authority and the City have agreed to amend the HCA as follows, II . AMENDMENT 1 Partnership Transactions Authorized Notwithstanding any other provisions of the HCA, the City agrees that the Authority may, to facilitate the syndication of Low Income Housing Tax Credits, enter into a long-term lease of the bare ground and all improvements to a Partnership to be formed for that purpose, in which the Authority will be the sole Managing Partner and shall remain as the sole Managing Partner unless removed from such position as a result of its default of material provisions of the partnership or operating agreement, provided, however, that the lease must specifically incorporate by reference the terms and conditions of the HCA, as amended 2 Defeasance or Refunding of Bonds The City agrees that no later than , 2004, it will take "remedial action" as required by the Internal Revenue Code and accompanying Treasury regulations by defeasing or refunding that portion of the 1993 Refunding Bonds authorized by City Ordinance No. 3115 allocable to the Harrison House Apartments (the "Harrison House Bonds"), which defeasance or refunding shall be accomplished by the issuance of taxable bonds or with any other funding source selected by the City and approved by the City's bond counsel The City agrees that it will issue the maximum amount of refunding bonds permitted by the Refunding Bond Act and supported by the City's current levy rate, as determined by the City's Bond Counsel, and the Authority agrees to pay in cash upon the closing and issuance of the Refunding Bonds an amount sufficient, together with the amounts available from the refunding bonds, to effect the defeasance or refunding of the Harrison House Bonds 3 First Amendment to Housing Cooperation Agreement (between Housing Authority of King County and City of Kent) (Apnl 19, 2004) 3. Payment of LID Assessment The Authority shall pay the full balance due on City L I D. No 351, Assessment No 035600 no later than July 5, 2004 4 Indemnification a The Authority shall indemnify and hold harmless the City from any and all claims and disputes arising from the repairs and capital improvements undertaken with the grants and borrowings addressed in Section 115 a. of this First Amendment. b Section III 4 of the HCA is deleted in its entirety 5. Grants and Borrowinqs a The City hereby consents that the Authority or the Partnership may obtain grants, forgivable loans, borrow money, and enter into or create other debt obligations to finance the long term lease of the Protect to the Partnership, to fund repairs or capital improvements to the Protect or pay for other costs, fees, and expenses associated with the development and rehabilitation of the Protect or with the lease of the protect to the Partnership. The Authority may encumber the Protect with liens and covenants to secure repayment or performance of obligations in connection with the tax credit allocation, grants, loans, borrowings or debt obligations Notwithstanding any other provisions of the HCA, the Authority or the Partnership may establish rents at rates sufficient to repay loans, borrowings or debt obligations of the Authority or the Partnership related to the Project, make required lease payments, meet Operating Expenses and to meet other Internal Revenue Service or Washington State Housing Finance Commission requirements with respect to the operation of the Project in accordance with the requirements of the Low Income Housing Tax Credit Program b. The City agrees that, notwithstanding any other provisions of the HCA and the provisions of the Bargain and Sale Deed from the City to the Authority dated December 11, 1992, which is recorded under King County, Washington, recording No 921250716, so long as either (i) the Low Income Housing Tax Credit Partnership lease of the Project remains in effect or (u) the Protect remains encumbered by the grants or borrowings contemplated by the provisions of 5 a above, or any low income i 4 First Amendment to Housing Cooperation Agreement (between Housing Authority of King County and City of Kent) (Apnl 19, 2004) housing covenants, restrictions or regulatory use agreements required by such borrowings or the low income housing tax credits, the City may not exercise the right to re-enter the Project, terminate the HCA or to otherwise terminate or limit the fee estate of the Authority in the Project or the leasehold estate of the Partnership in the Project The City further agrees to execute and record such additional documentation as may be required by Project lenders or the tax credit Investment Partner(s) to effectuate this provision c Sections IV. 7 and IV 12 of the HCA are deleted in their entirety and are replaced by the provisions of 4 a. above. d Sections IV 9. and Section V 1. of the HCA are deleted in their entirety and are replaced by the provisions of 4 b. above. 6 Termination of City Tenant Subsidies The Authority agrees to substitute Section 8 rental assistance for the 12 housing Units at the Project that are currently being subsidized by the City at an annual cost to the City of $17,280, whereupon the City may terminate its subsidy payments 7 Admissions Priorities. a Section IV 4 of the HCA is hereby deleted in its entirety, and replaced with the following new Section IV 4 "4 Subject to approval of the City, the Authority will establish an admissions policy which gives priority for admission to the Senior Housing Project to Kent residents, but only to the extent that doing so will not violate the terms of any local, state or federal laws, or the terms and conditions imposed by funding sources to the Project including the King County Housing Finance Program, the Washington State Housing Finance Commission and the U S Department of Housing and Urban Development " b Section IV 5 of the HCA is hereby deleted in its entirety, and replaced with the following new Section IV.5 5 First Amendment to Housing Cooperation Agreement (between Housing Authority of King County and City of Kent) (April 19, 2004) "5 Subject to approval by the City, the Authority will establish an admissions policy which conforms with the covenants of the Funding Sources for the Project and targets for admission to 50% of the housing units at the Project very low income Seniors with incomes at or below 30% of King County median income, and targets for admission to the balance of the housing units to Seniors with incomes at or below 50% of King County median income; provided, however, that it is mutually understood and agreed that this admissions policy must meet the test of compliance with local, state and federal laws, and that those laws may be altered in the future " 8. Miscellaneous Provisions a The second sentence of Section VI 1. of the HCA is hereby deleted in its entirety and is replaced with the following. "Any and all awards granted as a result of said condemnation whether or not this Agreement is terminated as a result of said condemnation proceedings, shall be paid over to the City, but only after first satisfying all outstanding debt or other financial obligations of the Partnership and the Authority in connection with the Project" b The first sentence of Section VI 2 is deleted in its entirety and replaced with* "2 Insurance, During the term of this Agreement, the Authority or the Partnership shall also maintain in effect an industry standard, all risk property policy based on replacement value for buildings and contents with a deductible not to exceed $50,000 " c Section VI 3. is hereby deleted and replaced with: "3 Damage or Destruction of Proiect In event the structures and facilities are destroyed by fire or other casualty, or are partially destroyed so as to render it unfit for occupancy, or in case it is so badly damaged that it cannot be repaired within a reasonable amount of time, then the Authority or the Partnership, in consultation with the City, may elect not to 6 First Amendment to Housing Cooperation Agreement (between Housing Authority of King County and City of Kent) (April 19, 2004) restore the Project If such an election is made, this Agreement shall terminate and the Authority shall acquire the Partnership's interest in the Project and shall then surrender the Project and all interest in the Protect to the City provided that all outstanding debt or other financial obligations of the Partnership and the Authority in connection with the Project have been satisfied Available insurance proceeds shall be paid directly to the City, but only after those proceeds are first used to satisfy all outstanding debt or other financial obligations of the Partnership and the Authority in connection with the Project " DATED for reference purposes as of this day of , 2004 IN WITNESS WHEREOF, the Authority and City have executed this First Amendment through their duly authorized representatives. AUTHORITY: CITY: Housing Authority of the City of Kent County of King, Washington By By Print Name. Stephen J Norman Print Name Jim White Its Executive Director Its Mayor Date Date APPROVED AS TO FORM: By Print Name Tom Brubaker Its City Attorney P 1CmI1FILES1OpenFAes10849WousmgCooperaoonAgmement-Clean-KCHARehsions doo 7 First Amendment to Housing Cooperation Agreement (between Housing Authority of King County and City of Kent) (April 19, 2004) • Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: TAXABLE REFUNDING OF THE OUTSTANDING UNLIMITED TAX HOUSING BONDS ORDINANCE—ADOPT 2. SUMMARY STATEMENT: Adoption of Ordinance No. relating to Unlimited Tax Housing Bonds. The modification of the existing Housing Cooperation Agreement creates a new entity which will have an ownership interest in the property until the obligations used to finance it are retired. This entity is not a governmental entity under the rules of the Internal Revenue Service and as such, cannot have tax exempt bonds outstanding on the Project. The City must replace the outstanding debt on the Project with taxable debt to remain in compliance with the IRS rules. The additional costs between the tax exempt and taxable debt as well as all of the costs of this transaction will be paid for by the Authority. The City will incur no additional costs due to this refunding. 3. EXHIBITS: Bond ordinance and official statement 4. RECOMMENDED BY: Operations Committee (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6N ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, relating to contracting indebtedness; providing for the issuance of $ par value of Unlimited Tax General Obligation Refunding Bonds, 2004, of the City to provide funds with which to pay the cost of advance refunding a portion of the City's outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, and paying the administrative costs of such refunding and the costs of issuance and sale of such bonds, fixing the date, form, maturity, interest rate, options of redemption,terms and covenants of the bonds, providing for and authorizing the purchase of certain obligations out of the proceeds of the sale of the bonds herein authorized and for the use and application of the money derived from those investments, authorizing the execution of an agreement with _ of [Seattle, Washington], as refunding trustee, establishing a bond redemption fund, providing for bond insurance, and approving the sale and providing for the delivery of the bonds to Lehman Brothers Inc of Seattle, Washington PASSED MAY 4, 2004 This document prepared by Foster Pepper& Shefelman PLLC 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 (206) 447-4400 5042694401 UTGO Refunding Bonds, 2004 f TABLE OF CONTENTS Page SECTION 1 -Definitions . 3 SECTION 2 -Authonzation and Purposes of Bonds. 6 SECTION 3 -Description of Bonds 6 SECTION 4 -Registration and Transfer of Bonds 6 SECTION 5-Payment of Bonds . 8 SECTION 6 -Redemption Provisions and Open Market Purchase of Bonds 8 SECTION 7. -Notice of Redemption 10 SECTION 8 -Failure To Redeem Bonds 10 SECTION 9 . -Pledge of Taxes 11 SECTION 10 -Bond Fund and Deposit of Bond Proceeds 11 SECTION 11 -Refunding of the Refunded Bonds 11 SECTION 12 -City Findings with Respect to Refunding 14 SECTION 13. - Form and Execution of Bonds 14 SECTION 14 . -Bond Registrar 15 SECTION 15 -Refunding orDefeasance of the Bonds 16 SECTION 16 -Approval of Bond Purchase Agreement. . 17 SECTION 17 -Preliminary Official Statement Deemed Final 18 SECTION 18 - Undertaking to Provide Continuing Disclosure 18 5042994401 LTGO Refunding Bonds, 2004 SECTION 19 -Bond Insurance ..21 SECTION 20 : -Severabibty .. . 21 SECTION 21 -Effective Date .22 5042694401 LTGO Refunding Bonds, 2004 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, relating to contracting indebtedness, providing for the issuance of $ par value of Unlimited Tax General Obligation Refunding Bonds,2004, of the City to provide funds with which to pay the cost of advance refunding a portion of the City's outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, and paying the administrative costs of such refunding and the costs of issuance and sale of such bonds, fixing the date, form, maturity, interest rate, options of redemption,terms and covenants of the bonds; providing for and authorizing the purchase of certain obligations out of the proceeds of the sale of the bonds herein authorized and for the use and application of the money derived from those investments, authorizing the execution of an agreement with of [Seattle, Washington], as refunding trustee, establishing a bond redemption fund, providing for bond insurance, and approving the sale and providing for the delivery of the bonds to Lehman Brothers Inc of Seattle, Washington RECITALS A Pursuant to Ordinance No 2948,the City heretofore issued its$6,700,000 par value Unlimited Tax General Obligation Bonds, 1990 (the "1990 Bonds"), for the purpose of paying part of the cost of aiding and cooperating with the Housing Authority of King County (the "Authority") in the planning, designing, acquiring, development, constructing, rehabilitating and equipping of housing,together with related facilities, in the City for low-income senior citizens (the "Project") B. Pursuantto Ordinance No. 3115,the City heretofore issued its$14,085,000 par value Unlimited Tax General Obligation Refunding Bonds, 1993 (the"1993 Bonds"), a portion of which 1993 Bonds were used to pay the cost of advance refunding the callable portion of the 1990 Bonds 50428NA 01 1 UTGO Refunding Bonds, 2004 C There are presently outstanding $3,210,000 par value of 1993 Bonds allocable to the 1990 Bonds as more fully described herein (the 'Refunded Bonds") D. Pursuant to that certain Housing Cooperation Agreement dated June 13, 1991 (the "HCA"), between The Housing Authority of the County of King, a public body corporate and politic formed under Washington law(the"Authority"), and the City, the City on December 15, 1992, transferred the Project to the Authority for operation by the Authority, and the Authority has operated the Project since that time E. Pursuant to a First Amendment to Housing Cooperation Agreement dated , 2004 (the"HCA Amendment'), between the Authority and the City, the City has agreed to permit the Authority to enter into certain transactions with a tax credit limited partnership in which the Authority will be the sole managing partner(the"Partnership")for the purpose of enabling the Authority and the Partnership to finance the cost of needed repairs and capital replacements for the Project at a cost of approximately$2,400,000 F The Partnership will be a nongovernmental person, and the transactions between the Authority and the Partnership may cause the 1990 Bonds and the 1993 Bonds to be treated as taxable private activity bonds unless the City takes a remedial action with respect to the Refunded Bonds in the manner permitted by applicable United States Treasury Regulations issued by the Internal Revenue Service under the Internal Revenue Code of 1986, as amended. G After due consideration, it appears to the City Council that a remedial action may be accomplished with respect to the Refunded Bonds by the issuance and sale of the taxable unlimited tax general obligation refunding bonds authorized herein(the"Bonds")to refund and defease the Refunded Bonds, which refunding will be effected by (a) The issuance of the Bonds and the payment of the costs of the issuance of the Bonds and the costs of the refunding; and (b) The payment of the principal of and interest on the Refunded Bonds when due up to and including their maturity 5042894401 2 UTGO Refunding Bonds, 2004 H To effect that refunding in the manner that will be most advantageous to the City it is found necessary and advisable that certain Acquired Obligations (hereinafter defined) bearing interest and maturing at such time or times as necessary to accomplish the refunding as aforesaid be purchased out of the proceeds of the Bonds and otherfunds provided by the Authority to the extent, if any, necessary under the requirements of Chapter 39 53 RCW applicable to the Bonds, in accordance with the HCA Amendment I The City Council deems it to be in the best interests of the City to issue and sell the Bonds to pay the cost of advance refunding the Refunded Bonds and to pay the administrative costs of such refunding and the costs of issuance and sale of the Bonds J. of , New York ("Bond Insurer"), has made a commitment to issue an insurance policy (the "Municipal Bond Insurance Policy") insuring the payment when due of the principal of and interest on the Bonds as provided therein, and the City Council of the City deems that the purchase of the Municipal Bond New Issue Insurance Policy is in the best interest of the City K Lehman Brothers Inc of Seattle,Washington, has offered to purchase the bonds authorized herein under the terms and conditions hereinafter set forth in the form of a Bond Purchase Agreement NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION 9.-Definitions As used in this ordinance,the following words shall have the following meanings "Acquired Obligations"means those direct, noncallable obligations of the United States of America purchased to accomplish the refunding of the Refunded Bonds as authonzed by this ordinance and Chapter 39 53 RCW 50428944 01 3 UTGO Refunding Bonds, 2004 "Bond Fund"means the Unlimited Tax General Obligation Refunding Bond Fund, 2004, created by this ordinance for the payment of the Bonds "Bond Insurer" means "Bond Register" means the books or records maintained by the Bond Registrar containing the name and mailing address of the owner of each Bond and the principal amount and number of Bonds held by each owner "Bond Registrar" means the Fiscal Agent "Bonds"means the$ par value Unlimited Tax General Obligation Refunding Bonds, 2004 (Taxable), of the City issued pursuant to and for the purposes provided in this ordinance. "City° means the City of Kent,Washington, a municipal corporation duly organized and existing under and by virtue of the laws of the state of Washington "Code" means the United States Internal Revenue Code of 1986,as amended,and applicable rules and regulations promulgated thereunder "DTC° means The Depository Trust Company, New York, New York "Finance Director" means the Finance Director of the City "Fiscal Agent" means the fiscal agent of the state of Washington, or any other paying agent/registrar of the City, as the same maybe designated from time to time "Letter of Representations"means the Blanket Issuer Letter of Representations dated March 16, 1999, between the City and DTC, as it may be amended from time to time 5042894401 4 UTGO Refunding Bonds, 2004 "Municipal Bond Insurance Policy" means the policy issued bythe Bond Insurer insuring the payment of the principal of and interest on the Bonds. "Refunded Bonds" means the outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, of the City issued pursuant to Ordinance No 2948,the refunding of which has been provided for by this ordinance,which are more particularly described as follows Maturity Date Principal Interest (December 1) Amounts Rates 2004 $480,000 5 20% 2005 515,000 530 2006 540,000 540 2007 530,000 550 2008 555,000 555 2009 590,000 560 i "Refunding Plan means (a) the placement of sufficient proceeds of the Bonds which, with other money legally available, if necessary, will acquire the Acquired Obligations to be deposited, with cash, if necessary, with the Refunding Trustee, (b) the payment of the principal of and interest on the Refunded Bonds when due up to and including their respective maturities, and (c) the payment of the costs of issuing the Bonds and the costs of carrying out the foregoing elements of the Refunding Plan "Refunding Trust Agreement"means a Refunding Trust Agreement between the City and the Refunding Trustee substantially in the form of that which is on file with the Finance Director and by this reference incorporated herein "Refunding Trustee" means of [Seattle, Washington], serving as trustee or escrow agent or any successor trustee or escrow agent 5042994401 5 UTGO Refunding Bonds, 2004 SECTION 2.-Authonzation and Purposes of Bonds The City shall borrow money on the credit of the City and issue negotiable taxable unlimited tax general obligation bonds evidencing that indebtedness in the amount of$ to provide the funds to carry out the Refunding Plan The general indebtedness to be incurred shall be within the limit of up to 2-1l2% of the value of the taxable property within the City issued pursuant to a vote of the qualified votes of the City SECTION 3 -Descnphon of Bonds The Bonds shall be in the aggregate principal amount of $ , shall be dated their date of initial delivery; shall be in the denomination of $5,000 or any integral multiple thereof within a single maturity, shall be numbered separately in the manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification,shall bear interest(computed on the basis of a 360-day year of twelve 30-day months) payable semiannually on each June 1 and December 1, commencing December 1, 2004, to the maturity of the Bonds, shall bear interest at the rate of % per annum, and shall mature on December 1, 2009 Interest on the Bonds will not be excluded from gross income of the registered owners for federal income tax purposes [$ of principal of the Bonds shall constitute nonvoted debt of the City_] SECTION 4 -Registration and Transferof Bonds The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on the Bond Register The Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar Any exchange or transfer shall be without cost to the owner or transferee The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days preceding any principal or interest payment date 5042894401 6 UTGO Refunding Bonds, 2004 The Bonds initially shall be registered in the name of Cede &Co , as the nominee of DTC The Bonds so registered shall be held in fully immobilized form by DTC as depository in accordance with the provisions of the Letter of Representations Neither the City nor the Bond Registrar shall have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds regarding accuracy of any records maintained by DTC or DTC participants of any amount in respect of principal of or interest on the Bonds, or any notice which is permitted or required to be given to registered owners hereunder(except such notice as is required to be given by the Bond Registrar to DTC). For as long as any Bonds are held in fully immobilized form, DTC, its nominee or its successor depository shall be deemed to be the registered owner for all purposes hereunder and all references to registered owners, bondowners, bondholders or the like shall mean DTC or its nominee and shall not mean the owners of any beneficial interests in the Bonds. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except (i) to any successor of DTC or its nominee, if that successor shall be qualified under any applicable laws to provide the services proposed to be provided by it, ( i) to any substitute depository appointed by the City or such substitute depository's successor, or(nu) to any person if the Bonds are no longer held in immobilized form Upon the resignation of DTC or its successor (or any substitute depository or its successor)from its functions as depository, or a determination by the City that it no longer wishes to continue the system of book-entry transfers through DTC or its successor(or any substitute depository or its successor), the City may appoint a substitute depository Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it If(i) DTC or its successor(or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (u) the City determines that the Bonds are to be in certificated form, the ownership of Bonds may be 5042894401 7 UTGO Refunding Bonds, 2004 is I transferred to any person as provided herein and the Bonds no longer shall be held in fully immobilized form SECTION 5-Payment of Bonds Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America Interest on the Bonds shall be paid by checks or drafts of the Bond Registrar mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners to the Bond Registrar Notwithstanding the foregoing,for as long as the Bonds are registered in the name of DTC or its nominee, payment of principal of and interest on the Bonds shall be made in the manner set forth in the Letter of Representations SECTION 6 -Redemption Provisions and Open Market Purchase of Bonds The Bonds shall be issued without the right or option of the City to redeem those Bonds priorto their stated maturity or mandatory redemption dates The Bonds are Term Bonds and, if not purchased in the open market under the provisions set forth below, shall be called for redemption by lot (m such manner as the Bond Registrar shall determine) at par plus accrued interest on December 1 in years and amounts as follows- 5042894401 8 UTGO Refunding Bonds, 2004 Mandatory Mandatory Redemption Redemption Years Amounts 2004 2005 2006 2007 2008 2009 If the City shall purchase Term Bonds in the open market as set forth below,the par amount of the Term Bonds so purchased (irrespective of their actual purchase prices)shall be credited against [the t ie>°scfterluled rnanciatory'redemption amount for those Term Bondg,lhat'is-not ea'rlier__than".60 days"after the da#e_of the optional redemption or purchase][the last scheduled mandatary redemption,aimountforthose Term Bonds][one or more schedutedaiianiiatotytederiiptlon amounts for fhose`Term Bonds (as allocated by the City) beginning,not earlier_-than 60 days after the date of the optional redemption oT purchase,and the City shall pro-mptly,notify the Bond Registrar'in writing of the manner-in whichthe-credit for�theTerm Bonds so-redeemed or purchased has been allocated] Portions of the principal amount of any Bond, in installments of $5,000 or any integral multiple thereof, may be redeemed If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the registered owner, without charge therefor, a new Bond (or Bonds, at the option of the registered owner) of the same maturity and interest rate in any of the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed. The City further reserves the right and option to purchase any or all of the Bonds in the open market at anytime at any price plus accrued interest to the date of purchase All Bonds purchased or redeemed under this section shall be canceled 5042894401 9 UTGO Refunding Bonds, 2004 Notwithstanding the foregoing,for as long as the Bonds are registered in the name of DTC or its nominee, selection of Bonds for redemption shall be in accordance with the Letter of Representations. SECTION 7 - Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mad, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the registered owner of any Bond Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Moody's Investors Service, Inc , and Standard & Poor's at their offices in New York, New York, or their successors, to Lehman Brothers Inc at its office in Seattle, Washington, or its successor, to the Bond Insurer at its principal office in New York, New York, or its successor, to each NRMSIR or the MSRB and to such other persons and with such additional information as the Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds Notwithstanding the foregoing, for as long as the Bonds are registered in the name of DTC or its nominee, notice of redemption shall be given in accordance with the Letter of Representations SECTION 8 - Failure To Redeem Bonds If any Bond is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or call date until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds S042894401 10 UTGO Refunding Bonds, 2004 SECTION 9 - Pledge of Taxes For as long as any of the Bonds are outstanding,the City irrevocably pledges to levy taxes annually without limitation as to rate or amount on all of the taxable property within the City in an amount sufficient, together with other money legally available and to be used therefor,to paywhen due the principal of and interest on the Bonds, and the full faith, credit and resources of the City are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest SECTION 10. -Bond Fund and Deposit of Bond Proceeds The Bond Fund is created and established in the office of the Finance Director as a special fund designated as the Unlimited Tax General Obligation Refunding Bond Fund, 2004 (Taxable), for the purpose of paying principal of and interest on the Bonds Accrued interest on the Bonds, if any, received from the sale and delivery of the Bonds, together with any net premium and/or contingency amounts received from Lehman Brothers Inc. that are not necessary to pay the administrative costs of the refunding and the costs of issuance and sale of the Bonds, shall be deposited into the Bond Fund The remaining principal proceeds of the sale of the Bonds shall be deposited with the Refunding Trustee in accordance with the provisions of Section 11 herein All taxes and other funds collected for and allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund SECTION 11 -Refunding of the Refunded Bonds (a) Appointment of Refunding Trustee of Seattle, Washington, is appointed Refunding Trustee (b) Use of Bond Proceeds, Acquisition of Acquired Obligations All of the proceeds of the sale of the Bonds, exclusive of the accrued interest thereon and any contingency amount which shall be paid into the Bond Fund, shall be deposited immediately upon the receipt thereof with the Refunding Trustee and used, together with other funds legally available, if necessary, to discharge the obligations of the City relating to the Refunded Bonds under Ordinance No 3115 by providing for the payment of the 5042894401 11 UTGO Refunding Bonds, 2004 amounts required to be paid by the Refunding Plan To the extent practicable, such Isobligations shall be discharged fully by the Refunding Trustee's simultaneous purchase of the Acquired Obligations,bearing such interest and maturing as to principal and interest in such amounts and at such times so as to provide,togetherwrth a beginning cash balance, if necessary, for the payment of the amount required to be paid by the Refunding Plan The Acquired Obligations are listed and more particularly described in Exhibit A attached to the Refunding Trust Agreement between the City and the Refunding Trustee, but are subject to substitution as set forth below Any Bond proceeds or other money deposited with the Refunding Trustee not needed to purchase the Acquired Obligations and provide a beginning cash balance, if any, and pay the costs of issuance of the Bonds shall be returned to the City at the time of delivery of the Bonds to the initial purchaser thereof and deposited in the Bond Fund to pay interest on the Bonds on the first interest payment date (c) Substitution of Acquired Obligations Prior to the purchase of any Acquired Obligations by the Refunding Trustee,the City reserves the right to substitute other direct, noncallable obligations of the United States of America("Substitute Obligations")for any of the Acquired Obligations and to use any savings created thereby for any lawful City purpose if, (a) in the opinion of Foster Pepper &Shefelman PLLC,the City's bond counsel, the interest on the Bonds and the Refunded Bonds will remain excluded from gross income for federal income tax purposes under Sections 103, 148, and 149(d) of the Code, and (b) such substitution shall not impairthe timely payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally recognized independent certified public accounting firm After the purchase of the Acquired Obligations by the Refunding Trustee, the City reserves the right to substitute therefor cash or Substitute Obligations subject to the conditions that such money or securities held by the Refunding Trustee shall be sufficient to carry out the Refunding Plan, that such substitution will not cause the Refunded Bonds to be arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in effect on the date of such substitution and applicable to obligations issued on the issue date of the Bonds, and that the City obtain, at its expense (1) a verification by a nationally recognized independent certified public accounting firm 50428944 01 12 UTGO Refunding Bonds, 2004 acceptable to the Refunding Trustee confirming that the payments of principal of and interest on the substitute securities, if paid when due, and any other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan, and (2) an opinion from Foster Pepper& Shefelman PLLC, bond counsel to the City, or its successor, to the effect that the disposition and substitution or purchase of such securities, under the statutes, rules, and regulations then in force and applicable to the Bonds,will not cause the interest on the Refunded Bonds to be included in gross income for federal income tax purposes and that such disposition and substitution or purchase is in compliance with the statutes and regulations applicable to the Bonds Any surplus money resulting from the sale, transfer, other disposition, or redemption of the Acquired Obligations and the substitutions therefor shall be released from the trust estate and transferred to the City for deposit into Bond Fund (d) Administration of Refunding Plan The Refunding Trustee is authorized and directed to purchase the Acquired Obligations(or Substitute Obligations)and to make the payments required to be made by the Refunding Plan from the Acquired Obligations (or Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this Ordinance All Acquired Obligations(or Substitute Obligations)and the money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied in accordance with the provisions of Ordinance No 3115, this ordinance, chapter 39 53 RCW and other applicable statutes of the state of Washington and the Refunding Trust Agreement All necessary and proper fees, compensation, and expenses of the Refunding Trustee and all other costs incidental to the setting up of the escrow to accomplish the refunding of the Refunded Bonds and costs related to the issuance and delivery of the Bonds, including bond printing,verification fees, bond insurance premium, bond counsel's fees, and other related expenses, shall be paid out of the proceeds of the Bonds (e) Authorization for Refunding Trust Agreement To carry out the Refunding Plan provided for by this ordinance,the Mayor or Finance Director of the City is authorized and directed to execute and deliverto the Refunding Trustee a Refunding Trust Agreement substantially in the form on file with the Finance Director and by this reference made a part 5042894401 13 UTGO Refunding Bonds, 2004 hereof setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection with the payment, redemption, and retirement of the Refunded Bonds as provided herein and stating that the provisions for payment of the fees, compensation, and expenses of such Refunding Trustee set forth therein are satisfactory to it Prior to executing the Refunding Trust Agreement, the Mayor or Finance Director of the City is authorized to make such changes therein that do not change its substance and purpose SECTION 12 - City Flndings with Respect to Refundmg The City Council finds and determines that the issuance and sale of the Bonds at this time is necessary and in the best interest of the City and its taxpayers and in the public interest in order to comply with the City's covenants in the ordinances of the City authorizing the issuance and sale of the 1990 Bonds and the 1993 Bonds not to take or permit any use of proceeds of those bonds at any time during the term of those bonds that would cause interest on those bonds to be included in gross income for federal income tax purposes The City Council further finds and determines that the money to be deposited with the Refunding Trustee for the Refunded Bonds in accordance with Section 11 of this . Ordinance will discharge and satisfy the obligations of the City under Ordinance No 3115 with respect to the Refunded Bonds, and the pledges, charges, trusts, covenants, and agreements of the City therein made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be deemed to be outstanding under Ordinance No 3115 immediately upon the deposit of such money with the Refunding Trustee SECTION 13 - Form and Execution of Bonds The Bonds shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance and state law and shall be signed by the Mayor and City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon Only Bonds bearing a Certificate of Authentication in the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance i5042894401 14 UTGO Refunding Bonds, 2004 CERTIFICATE OF AUTHENTICATION This Bond is one of the fully registered City of Kent, Washington, Unlimited Tax General Obligation Refunding Bonds, 2004 (Taxable), described in the Bond Ordinance WASHINGTON STATE FISCAL AGENT, Bond Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed,authenticated and delivered and are entitled to the benefits of this ordinance If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City,those Bonds nevertheless may be authenticated, issued and delivered and,when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bonds SECTION 14 - Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times The Bond Registrar is authorized, on behalf of the City,to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent forthe Bonds and to carry out all of the Bond Registrar's powers 5042894401 15 UTGO Refunding Bonds, 2004 and duties under this ordinance and City Ordinance No. 2418 establishing a system of registration for the City's bonds and obligations The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on the Bonds The Bond Registrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners I SECTION 15 - Refunding or Defeasance of the Bonds The City may issue refunding bonds pursuant to the laws of the state of Washington or use money available from any other lawful source to pay when due the principal of and interest on the Bonds, or any portion thereof included in a refunding or defeasance plan, and to redeem and retire, refund or defease all such then-outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the costs of the refunding or defeasance If money and/or direct obligations of the United States of America maturing at a time or times and bearing interest in amounts (together with money, if necessary) sufficient to redeem and retire, refund or defease the defeased Bonds in accordance with their terms are set aside in a special trust fund or escrow account irrevocably pledged to that redemption, retirement or defeasance of defeased Bonds (hereinafter called the "trust account"), then all right and interest of the owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void The owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds from the trust account The City shall include in the refunding or defeasance plan such provisions as the City deems necessary for the random selection of any defeased Bonds that constitute less than all of a particular maturity of the Bonds, for notice of the defeasance to be given to the owners of the defeased Bonds and to such other persons as the City shall determine, and for any required replacement of Bond certificates for defeased Bonds The defeased Bonds shall be deemed no longer outstanding, and the City may apply any money in any other fund or 5042894401 16 UTGO Refunding Bonds, 2004 account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall detenrnne. If the Bonds are registered in the name of DTC or its nominee, notice of any defeasance of Bonds shall be given to DTC in the manner prescribed in the Letter of Representations for notices of redemption of Bonds Notwithstanding anything in this section to the contrary, if the principal of and/or interest due on the Bonds is paid by the Bond Insurer pursuant to the Municipal Bond Insurance Policy,the Bonds shall be treated as remaining outstanding for all purposes and shall not be considered paid by the City, and the covenants, agreements and other obligations of the City to the registered owners of the Bonds shall continue to exist and run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights of the registered owners SECTION 16 -Approval of Bond Purchase Agreement Lehman Brothers Inc of Seattle,Washington, has presented a purchase contract(the'Bond Purchase Agreement') to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Agreement,which written Bond Purchase Agreement is on file with the City Clerk and is incorporated herein by this reference The City Council finds that entering into the Bond Purchase Agreement is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials The Bonds will be printed at City expense and will be delivered to the purchaser in accordance with the Bond Purchase Agreement,with the approving legal opinion of Foster Pepper& Shefelman PLLC, bond counsel of Seattle, Washington, regarding the Bonds. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to Lehman Brothers Inc and for the proper application and use of the proceeds of the sale thereof 5042894401 17 UTGO Refunding Bonds, 2004 SECTION 17 -Preliminary Official Statement Deemed Final. The City Council has 10 been provided with copies of a preliminary official statement dated , 2004 (the"Preliminary Official Statement"), prepared in connection with the sale of the Bonds. For the sole purpose of Lehman Brother's compliance with Securities and Exchange Commission Rule 15c2-12(b)(1),the City"deems final"that Preliminary Official Statement as of its date, except for the omission of information as to offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity,maturity dates, options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such matters SECTION 18 - Undertaking to Provide Continuing Disclosure To meet the requirements of United States Securities and Exchange Commission ("SEC") Rule 15c2- 12(b)(5) (the "Rule"), as applicable to a participating underwriter for the Bonds, the City makes the following written undertaking(the"Undertaking")for the benefit of holders of the Bonds (a) Undertaking to Provide Annual Financial Information and Notice of Material Events The City undertakes to provide or cause to be provided, either directly or through a designated agent (i) To each nationally recognized municipal securities information repository designated by the SEC in accordance with the Rule ("NRMSIR") and to a state information depository, if any, established in the state of Washington (the"SID") annual financial information and operating data of the type included in the final official statement for the Bonds and described in subsection (b)of this section ("annual financial information"), (u) To each NRMSIR or the Municipal Securities Rulemaking Board ("MSRB"), and to the SID, timely notice of the occurrence of any of the following events with respect to the Bonds, if material- (1) principal and interest payment delinquencies, (2) non-payment related defaults, (3) unscheduled draws on debt service reserves reflecting financial difficulties, (4) unscheduled draws on credit enhancements reflecting financial difficulties, (5) substitution of credit or liquidity providers, or their failure to perform, (6) adverse tax opinions or events affecting the tax-exempt status of the Bonds, (7) modifications to rights of holders of the Bonds, (8) 50428944 01 18 UTGO Refunding Bonds, 2004 Bond calls (other than scheduled mandatory redemptions of Term Bonds), (9) defeasances, (10) release, substitution, or sale of property securing repayment of the Bonds, and (11)rating changes, and (ui) To each NRMSIR or to the MSRB, and to the SID, timely notice of a failure by the City to provide required annual financial information on or before the date specified in subsection (b) of this section (b) Type of Annual Financial Information Undertaken to be Provided The annual financial information that the City undertakes to provide in subsection (a) of this section (i) Shall consist of (1) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles applicable to governmental units, as such principles may be changed from time to time and as permitted by State law, which statements shall not be audited, except, however, that if and when audited financial statements are otherwise prepared and available to the City they will be provided, (2) a statement of the City's general obligation debt service requirements, and (3) an update of the information set forth in tables 1, 3, 4 and 10 of the Official Statement for the Bonds; (u) Shall be provided to each NRMSIR and the SID, not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2004, and (in) May be provided in a single or multiple documents, and may be incorporated by reference to other documents that have been filed with each NRMSIR and the SID, or, if the document incorporated by reference is a "final official statement"with respect to other obligations of the City, that has been filed with the MSRB (c) Amendment of Undertaking The Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. 5042894401 19 UTGO Refunding Bonds, 2004 The City will give notice to each NRMSIR or the MSRB, and the SID, of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment Ifthe amendment changes the type of annual financial information to be provided,the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided (d) Beneficiaries The Undertaking evidenced by this section shall inure to the benefit of the City and any holder of Bonds, and shall not inure to the benefit of or create any rights in any other person. (e) Termination of Undertaking The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds In addition, the City's obligations under the Undertaking shall terminate if those provisions of the Rule which require the City to comply with the Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such termination to each NRMSIR or the MSRB and the SID (f) Remedy for Failure to Comply with Undertaking As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Bonds The sole remedy of any holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court,to compel the City or other obligated person to comply with the Undertaking (g) Designation of Official Responsible to Administer Undertaking The Finance Director (or such other officer of the City who may in the future perform the duties of that office) or his or her designee is authorized and directed in his or her discretion to take such further actions as may be necessary, appropriate or convenient to carry out the Undertaking set forth in this section and in accordance with the Rule, including, without limitation, the toilowing actions (i) Preparing and filing the annual financial information undertaken to be provided, 5042894401 20 UTGO Refunding Bonds, 2004 (n) Determining whether any event specified in subsection (a)(ii) has occurred, assessing its materiality with respect to the Bonds, and, if matenal, preparing and disseminating notice of its occurrence; (ni) Determining whether any person other than the City is an"obligated person°within the meaning of the Rule with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of material events for that person in accordance with the Rule, (iv) Selecting, engaging and compensating designated agents and consultants, including but not limited to financial advisors and legal counsel,to assist and advise the City in carrying out the Undertaking, and (v) Effecting any necessary amendment of the Undertaking SECTION 19 - Bond Insurance The District is authorized to purchase from the Bond Insurer the Municipal Bond Insurance Policy issued by the Bond Insurer insuring the prompt payment of the principal of and interest on the Bonds and agrees to the conditions for obtaining that policy, including the payment of the premium therefor The Mayor or Finance Director is hereby authorized to execute the Bond Insurer's Commitment for Municipal Bond Insurance SECTION 20, - Severabdity 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 5042894401 21 UTGO Refunding Bonds, 2004 0 SECTION 21: - Effective Date This ordinance shall take effect and be in force five (5)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 FOSTER PEPPER &SHEFELMAN PLLC Special Counsel and Bond Counsel PASSED day of May, 2004 APPROVED day of May, 2004 PUBLISHED. day of May, 2004 1 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 5042894401 22 UTGO Refunding Bonds, 2004 PRELIMINARY OFFICIAL STATEMENT DATED APRII,23,2004 o RATINGS Moody': v NEW ISSUE -BOOK-ENTRY ONLY Standard f�POOr' 4 6 �o „ mBUr v L w o e See"RATINGS"herein a o a In the opinion ofFmter Pepper 6,Shefelmao PLLC,Bond Couasei interest on the Bonds is not excluded from gross income for federal income tar purposes Seethe caption"TAX 7RE'AMENTOF71EBONDS" 3 u o s $3,375,000• z KENT CITY OF KENT, WASHINGTON UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2004 CrAXABLE) z - Dated: Date of Delivery Due December 1,as shown on the inside cover a� � E; = The above captioned bonds(the"Bonds")are being issued by the City of Kent,Washington (the"City"),pursuant to Ordinance No _ r= adopted on May 2004, by the City Council (the "Ordinance") to refund a portion of the City's outstanding Unlimited Tax General .o Obligation Refunding Bonds,1993,to pay the costs of issuing the Bonds and to pay the costs of the refunding G"° The Bonds will be issued as fully registered bonds in denominations of$5,000 or integral multiples thereof within a single maturity Principal E N r and premium,if any,will be payable upon presentation and surrender of the Bonds at the principal corporate trust office of the Washington State Fiscal Agent(the"Bond Registrar"),which currently is The Bank of New York,in New York,New York Interest on the Bonds will be x e-B payable on each December 1 and June 1,commencing on December 1,2004,to maturity of the Bonds or to the date of mandatory sinking fund redemption,whichever occurs fast Payment of each installment of interest shall be made to the registered owner whose name appears on the g Bond Register at the close of business on the fifteenth day of the calendar month preceding such interest payment date by check or draft of a the Bond Registrar mailed to such registered owner on the due date at the address appearing on the Bond Register,or at such other address as maybe furnished in writing by such registered owner to the Bond Registrar t MATURITY,PRINCIPAL AMOUNT,INTEREST RATE,YIELD AND CUSIP NO Due Principal Interest Dec—ember-1. Amount Ratc Yield Cl TSIP_Na G s 2009 $3,375,000 0 ry f The Bonds are not subject to optional redemption prior to maturity However,the Bonds are subject to mandatory smkmg fund redemption See"DESCRIPTION OF THE BONDS-Redemption Provisions"herein c" The Bonds constitute valid and legally binding general obligations of the City The full faith,credit and resources of the City are irrevocably = _ = pledged for the punctual payment of the principal of and interest on the Bonds The City has irrevocably pledged and is obligated by law to _ provide for the levy and collection annually of ad valorem taxes without limitation as to rate or amount on all taxable property in the City to pay the principal of and interest on the Bonds The Bonds do not constitute a debt or indebtedness of King County,the state of Washington o= or any other political subdivision thereof other than the City See"SECURITY AND SOURCES OF PAYMENT FOR THE BONDS" herein —� This cover page contains certain information for quick reference only It is not a summary of this issue Investors must read the entire Official H = Statement to obtain information essential to the making of an informed investment decision G .c c' y a The Bonds are offered when, as and if issued and received by the Underwnter, subject to the approval of legality by Foster Pepper& c v Shefelman PLLC, Seatt& Washington, Bond Counsel, and to certain other conditions Certain legal matters will be passed upon for the fi = Underwnterby its counsel Lmbns&Aoms,,PS,Bellevue, Washmgton Itisexpectedthat delivery of the Bonds wrll occur onoraboutMay 2004,at The Depository Trust Company in New York,New York � oL E _ " LEHM.AN BROTHERS � W - r c � o *Preliminary,subject to change i� �& i 4 3r,�E ry ii �Y°,ZST✓ 3. 'TY �' � `j e.,23�j k_` p 37 +rj`{pf '.L�� ,� •� > -L^i�a�,.`�L.vr�= { '<`=:`ri ��` _ d'i�} X p �y�, i . fartrc T a� NO DEALER,BROKER,SALES REPRESENTATIVE OR OTHER PERSON HAS BEEN AUTHORIZED BY THE CITY OR LEHMAN BROTHERS INC (THE"UNDERWRITER")TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS WITH RESPECT TO THE BONDS OTHER THAN THOSE CONTAINED HEREIN AND,IF GIVEN OR MADE,SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY ANY OF THE FOREGOING THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY,NOR SHALL THERE BE ANY SALE OF THE BONDS BY ANY PERSON,IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL FOR SUCH PERSON TO MAKE SUCH OFFER,SOLICITATION OR SALE THE INFORMATION SET FORTH HEREIN HAS BEEN FURNISHED BY THE CITY, KING COUNTY, FINANCIAL GUARANTY INSURANCE COMPANY,DTC AND CERTAIN OTHER SOURCES THAT ARE BELIEVED TO BE RELIABLE BUT IS NOT GUARANTEED AS TO ACCURACY OR COMPLETENESS BY, AND IS NOT TO BE CONSTRUED AS A REPRESENTATION BY, THE UNDERWRITER THE INFORMATION AND EXPRESSIONS OF OPINION CONTAINED HEREIN ARE SUBJECT TO CHANGE WITHOUT NOTICE ANY STATEMENTS MADE IN THIS OFFICIAL STATEMENT INVOLVING MATTERS OF OPINION OR ESTIMATES,WHETHER OR NOT SO EXPRESSLY STATED,ARE SET FORTH AS SUCH AND NOT AS REPRESENTATIONS OF FACT OR REPRESENTATIONS THAT THE ESTIMATES WILL BE REALIZED IN CONNECTION WITH THIS OFFERING,THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT LEVELS ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET SUCH STABILIZATION,IF COMMENCED,MAY BE DISCONTINUED AT ANY TIME THIS OFFICIAL STATEMENT IS NOT TO BE CONSTRUED AS A CONTRACT WITH THE PURCHASERS OF THE BONDS STATEMENTS CONTAINED IN THIS OFFICIAL STATEMENT WHICH INVOLVE ESTIMATES, FORECASTS OR MATTERS OF OPINION, WHETHER OR NOT EXPRESSLY SO DESCRIBED HEREIN,ARE INTENDED SOLELY AS SUCH AND ARE NOT TO BE CONSTRUED AS REPRESENTATIONS OF FACT THE UNDERWRITER HAS PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN THIS OFFICIAL STATEMENT THE UNDERWRITER HAS REVIEWED THE INFORMATION IN THE OFFICIAL STATEMENT IN ACCORDANCE WITH,AND AS A PART OF, ITS RESPONSIBILITIES TO INVESTORS UNDER THE FEDERAL SECURITIES LAWS AS APPLIED TO THE FACTS AND CIRCUMSTANCES OF THIS TRANSACTION BUT THE UNDERWRITER DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION THE INFORMATION AND EXPRESSIONS OF OPINION HEREIN ARE SUBJECT TO CHANGE WITHOUT NOTICE,AND NEITHER THE DELIVERY OF THIS OFFICIAL STATEMENT NOR ANY SALE HEREUNDER SHALL,UNDER ANY CIRCUMSTANCES,CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITt OR ANY OTHER PERSON DESCRIBED HEREIN SINCE THE DATE HEREOF THIS PRELIMINARY OFFICIAL STATEMENT HAS BEEN DEEMED FINAL AS OF ITS DATE BY THE CITY PURSUANT TO RULE 15C2-12 OF THE SECURITIES AND EXCHANGE COMMISSION PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, EXCEPT FOR INFORMATION PERMITTED TO BE OMITTED THEREFROM BY RULE 15C2-12 THE CITY HAS UNDERTAKEN TO PROVIDE CONTINUING DISCLOSURE ON CERTAIN MATTERS,INCLUDING ANNUAL FINANCIAL INFORMATION AND SPECIFIC MATERIAL EVENTS, AS MORE FULLY DESCRIBED HEREIN SEE APPENDIX C ENTITLED "UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE" IT HAS BEEN THE PRACTICE OF THE UNDERWRITER TO MAINTAIN A SECONDARY MARKET IN MUNICIPAL SECURITIES THAT IT SELLS THE UNDERWRITER PRESENTLY INTENDS TO ENGAGE IN SECONDARY MARKET TRADING OF THE BONDS,SUBJECT TO APPLICABLE SECURITIES LAWS THE UNDERWRITER, HOWEVER, IS NOT OBLIGATED TO ENGAGE IN SECONDARY TRADING OR TO REPURCHASE ANY OF THE BONDS AT THE REQUEST OF THE OWNERS THEREOF NO ASSURANCE CAN BE GIVEN THAT A SECOND 4RY MARKET FOR THE BONDS WILL BE AVAILABLE AND NO ASSURANCE CAN BE GIVEN THAT THE INITIAL OFFERING PRICES FOR THE BONDS WILL CONTINUE FOR ANY PERIOD OF TIME THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933 A PURCHASER HAS NO RIGHT TO REQUIRE SUCH REGISTRATION IN ADDITION,THESE SECURITIES MAYBE SUBJECT TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF VARIOUS STATES, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH LAWS THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED, IF ANY, AND EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES,SHALL NOT BE REGARDED AS A RECOMMENDATION THEREOF NO STATE OR ANY STATE OR FEDERAL AGENCY HAS PASSED UPON THE MERITS OF THESE BONDS OR T14F ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE � -111- CITY OF KENT King County,Washington 220 Fourth Avenue South Kent, Washington 98032-5895 (253)856-5200 Mayor Term Expires Jim White December 31, 2005 City Council Term Expires Tim Clark December 31, 2005 Ron Harmon December 31, 2007 Julie Peterson December 31, 2005 Deborah Ranniger December 31, 2007 Debbie Raplee December 31, 2007 Les Thomas December 31, 2007 Bruce White December 31, 2005 Principal Administrative Officers Mike Martin Chief Administrative Officer Robert J.Nachlinger Finance Director Brenda Jacober City Clerk Tom Brubaker City Attorney Bond Counsel Foster Pepper& Shefelman PLLC Seattle, Washington -iv- 0 TABLE OF CONTENTS INTRODUCTION .. . ... . ..... .. ...... .. ... ...... .......... .... ..... . ...... ..... .... ..... . ... .. . . ...... . ......I TheCity.. . ....... ......... . ............ .. .... .......... .. .... .... .... .................. ........ . ............... . .. ......I Purposeof the Bonds. ............... . . .. .......... .. .............. ............... .. ..... .................... .. .. ......I Authority for Issuance.. ............. ......... ............... .......... .. . ...... .... .. . . ................ .. .. .. .... 1 Security and Sources of Payment for the Bonds.. ............. .. ............ .... ................. ... . .........2 BondInsurance ........ ................. ......................... ....... .. .. .. ....... ... . .. ...... ........ .. 2 Commitment to Provide Continuing Information... .. ....... ........ ......... .. .... ........ .. . . . 2 OtherInformation ............................... ................ ....... .. .. ........ .... ........ .... . ... . . . .. 2 DESCRIPTION OF THE BONDS.......... .......... . . .... ..... .. .. .. .. . .... ..... ......... . . . .. 4 General..... .. .......... .... .............. .. ....... .. .......... ....... .. ..... . .. .. ...... .. .... ...... ... .... 4 Methodof Payment . .. ........ ..... ........... ............. . ..... .. ...... . .. . ..... . . .......... ... . ..... . ..4 Redemption Provisions.. .. ............ .. ....... . ....... .. ....... .. ........ . .. .... .. .... .. ....... ... . .. .. .. 4 PayingAgent.. ... ....... .......... .. .............. .. ....... .. .... .. ..... .. .. ....... .. .. ....... .. ....... ...... .. .. 5 Book-Entry Only System..... .................................... ......... . .......... ............. . ........... . ..... . 6 Transfer and Exchange of Bonds. . . ........ .. ....... . . .... . . ....... .... .. .. .... . ......... .. . ... ..... 6 Defeasance of the Bonds...... .. .. ........... . . ............. .. ..... .. .. .... .. .. . .... .. .. .... ... . .. . . 6 APPLICATION OF THE BOND PROCEEDS .. .. 7 REFUNDING PLAN.... .. .. 7 Purpose . .......... ....... .. ....... .. ....... ........ . ... .. ....... ...... ... .......... ... ...... .... .. ... . .. . 7 Refunding Procedure......... ..... .. . ..... .. ....... .. ....... ...... .. .. ... .. . .... . ......... .. 7 Verification of Mathematical Calculations.. .... . .. . ... .. . .... .. ... ... . .... 8 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS. . .. .. . 8 Pledge of Full Faith, Credit and Resources ........ .. ... . .... ... ... .. . ... .. ..... . ... . ......8 CITY TAXING AUTHORITY . . .. ... . . ..... . . . ... . . . . .. . .8 Regular Property Taxes... ............. .. ....... ....... ........... ...... .......... ........ ... . 9 Excess Property Taxes....... ......... . .. ... . ....... . .... .......... . ..... . ..... .. .. ... .. .10 Levyof Taxes . ..... .... .... .. .... .. .. ..... .... ...... . ... ..... . .. .... . .. . ..... . .10 Tax Collection Procedures.... ..... . . .................. ............ ..... .. ...... . ..... .. ...... ........ . . ..11 Tax Liens and Foreclosure. .. ..... .. . ....... ...... .. . ... ..... .. ...... .... . . ... 12 Collection of Other Taxes........ ...... .......... .... .. . ..... ............. .................. ..... .. . . . . .... .13 DEBT LIMITATIONS OF THE CITY. .................. ..................... ........ .......... ...... . .... . ...... 15 DebtRepayment Record....... ........ .......... ............ .............. ...................... .................... .......16 THECITY .. ... ... .. . .... . .... ........... . ....... ....... . .. ....... .. . ... ..... .. . ..... ..... .. . ... . ... . .. —.16 Introduction.. ....... ................. ......... ..... ....... ......... .... .. .. ........ ..... ... .. .... ........... .. . ..16 Mayorand City Council............. ........ .. ...... ....... . ... ....... ...... ...... .... ... .. .......... . .. .. . .17 Administration of the City ...... . ................. . ... ......... ....... ... . .... ........ .. . ...... ... .... .17 Principal Governmental Services of the City... ..... .... .. .... .. ... ..... . ....... . ...... .. . .. . 17 Accounting....... . .. . .. ..... . ....... .. ....... ............... .... .. . . .......... ..... ..... ... .. ...... . . .... . 18 Investments . ....... ... ... .. ......... ................ ........ ... . ... .. ... . ....... ......... ... . ... .... ..18 EmployeeRelations ... .. ... .. ...... . ....................... . .. .. .. ................ ...... . .. ............. ...19 PensionPlans ....... ..... . ..... .. .................. .... .. ...... .. .. . ........ ...... ....... .. ...... ......... ...19 Insurance . . ... ....... . .... ..... ...... ..... .... . . ... ... .. ............... ..... .. .. ... . .... .. . .... ...20 BudgetaryProcess.. ........... .. .... ..... .. ..... . . .. .............. ...... .. .... .. .. ... .. . .. ..... .. ....... .20 INITIATIVE AND REFERENDUM ... . ... . .. .. ...... .. . . . . . .. ..... .. .. .... .. .. . . ..... .21 General....... ... . .. ..... .... ... .............. ...... .. ...... ... . ... ......... ... ... . .. .. . . . .. . 21 FutureInitiatives............. ............................................ . .. .. ........ . . ... .. . . ..... .. .. ....21 OUTSTANDING DEBT AND OTHER OBLIGATIONS 21 Debt Service Requirements of the City ......... ...... ... .. . . 21 Estimated Future Financing........................... ......... ... . ... . . . . . . .. 22 Direct and Overlapping General Obligation Debt. ................... . . . .. 22 GENERAL AND ECONOMIC INFORMATION.. .. . . . 26 Major Employers . . .... .. .. .. ........... ........ . . ..... . .. . . . .. .. . . . 26 Education............... ... ..... .... .... . . . . . .. . ... ... . .... . . .. . .. . .. .. ..... .. .28 Transportation 29 Local Development .. . . . . ............. .. ... .... . . . .. .... ......... .... . ................ ... ... .....29 TAX TREATMENT OF THE BONDS .. .. . ..... .. . . . . . .. .. .... .... ... .. ... . . . .. .30 APPROVAL OF LEGAL PROCEEDINGS... . . ... .... .. . ... . .. . . . . .... ............. . . . . ... ..30 LITIGATION. . .. . ..... . ..... .... . . ..... 30 RATINGS .. . . ..... ..... .. .. .... .. 31 UNDERWRITING . . .. .. . . ... ........ .. .... .. . .31 ADDITIONAL INFORMATION . .. .. . . ... . . .. 31 MISCELLANEOUS... .... . . . .. ...... . 32 APPENDIX A. Proposed Form of Opinion of Bond Counsel APPENDIX B• 2002 Audited Annual Financial Statements and 2003 Unaudited General Fund Budget Analysis APPENDIX C: Undertaking to Provide Continuing Disclosure APPENDIX D Book-Entry System APPENDIX E Specimen Bond Insurance Policy PRELIMINARY OFFICIAL STATEMENT OF THE CITY OF KENT KING COUNTY,WASHINGTON UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS,2004 (TAXABLE) PRINCIPAL AMOUNT OF$3,375,000* INTRODUCTION This Official Statement, including the cover page, appendices hereto and the documents incorporated herein by reference, is being provided by the City of Kent, Washington (the "City"), to furnish information in connection with the issuance of $3,375,000* aggregate principal amount of its Unlimited Tax General Obligation Refunding Bonds, 2004 (Taxable) (the "Bonds"). Unless otherwise defined in this Official Statement, capitalized terms used herein will have the meaning or meanings as set forth in Ordinance No. of the City Council, passed on May_, 2004 (the"Ordinance"). This Introduction is not a summary of this Official Statement It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and the appendices hereto, and the documents ' summarized or described herein A full review should be made of the entire Official Statement before purchasing the Bonds The offering of the Bonds to potential investors is made only by means of the entire Official Statement The City Located in the Puget Sound area of the state of Washington (the "State"), the City is an optional municipal code city. The City was incorporated in 1890. Its estimated population in 2003 was 84,210. The City is governed by a Mayor and a seven-member City Council For more complete information, see"THE CITY"herein Purpose of the Bonds The City will use the proceeds of the Bonds to refund a portion of its outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, to pay the costs of issuing the Bonds and to pay costs of the refunding See"APPLICATION OF THE BOND PROCEEDS"herein Authority for Issuance The Bonds will be issued pursuant to the Ordinance and in accordance with the provisions of chapters 35A 40, 39.36, 39.46 and 39.53 RCW Preliminary,subject to change 1 Security and Sources of Payment for the Bonds For as long as any of the Bonds are outstanding, the City has irrevocably pledged and is obligated by law to provide for the levy and collection annually of ad valorem taxes without limitation as to rate or amount on all taxable property in the City in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bonds, and the full faith, credit and resources of the City have been pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS"herein. Bond Insurance The following information has been furnished by (the "Insurer") for use in this Official Statement. Reference is made to Appendix E for a specimen of the Insurer's policy. [Insurer's language to be inserted here.] Commitment to Provide Continuing Information Pursuant to Rule 15c2-12 ("Rule 15c2-12") of the Securities and Exchange Commission (the "SEC"), the City has undertaken for the benefit of holders of the Bonds to provide certain financial information and operating data relating to the City by not later than nine months after the end of each fiscal year, commencing on or before September 30, 2005 (the "Annual Financial Information"), and to provide notices of the occurrence of certain enumerated events, if material The Annual Financial Information will be filed by or on behalf of the City with each Nationally Recognized Municipal Securities Information Repository formally recognized by the SEC ("NRMSIR") and with the State Information Depository for the State, if one is hereafter recognized by the SEC for purposes of Rule 15c2-12 (the "SID") Notices of material events will be filed by or on behalf of the City with the NRMSIRs or with the Municipal Securities Rulemakmg Board, and with the SID, if any The City's undertaking to provide ongoing disclosure will be substantially in the form set forth in Appendix C hereto. To date, the City has fulfilled its prior obligations with respect to Rule 15c2-12 Other Information This Official Statement speaks only as of its date, and the information contained herein is subject to change. Neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. The information set forth herein has been furnished by the City and certain other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Underwriter. The information and expressions of opinion contained herein are subject to change without notice. Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set 2 forth as such and not as representations of fact or representations that the estimates will be is realized. A brief description of the Bonds is included in this Official Statement. In addition, included herein as Appendix A is a form of Bond Counsel's opinion, as Appendix B are the City's 2003 Unaudited General Fund Budget Analysis and the City's 2002 Audited Financial Statements and as Appendix C is the City's continuing disclosure undertaking. All summaries herein of documents, provisions and agreements are qualified in their entirety by reference to the actual instruments, copies of each of which are available for inspection at the offices of the City No dealer, broker, salesman or other person has been authorized by the City or by the Underwriter to give any information or to make any representations, other than as contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall there be any sale of the Bonds by any person, in anyjurisdiction in which it is unlmvful for such persons to make such offer, solicitation or sale End of Introduction 3 DESCRIPTION OF THE BONDS General The Bonds will be issued as fully registered bonds in denominations of $5,000, or integral multiples thereof within a single maturity, will be in the aggregate principal amount of $3,375,000% will be dated as of their date of delivery, and will mature on December 1, 2009, in the amount set forth on the cover page of this Official Statement. The Bonds are not subject to optional redemption prior to their stated date of maturity. However, the Bonds are subject to mandatory sinking fund redemption. The Bonds shall bear interest from their dated date at the rate set forth on the cover page of this Official Statement. Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months, and shall be payable commencing December 1, 2004, and semiannually thereafter on each June 1 and December 1 to the date of maturity or prior mandatory sinking fund redemption of the Bonds,whichever occurs first. Method of Payment The principal of and interest on the Bonds shall be payable in lawful money of the United States of America to the registered owners thereof whose names and addresses appear on the Bond Register. . Payment of each installment of interest shall be made to the registered owner whose name appears on the Bond Register at the close of business on the fifteenth day of the calendar month preceding each semiannual interest payment date, and shall be paid by check or draft of the Washington State Fiscal Agent, currently The Bank of New York, in New York, New York (the "Bond Registrar") mailed to such registered owner on the due date, at the address appearing on the Bond Register, or at such other address as may be furnished in writing by such registered owner to the Bond Registrar. The principal of each Bond shall be paid to the registered owner thereof upon presentation and surrender of each Bond on or after the date of maturity or prior mandatory sinking fund redemption, at the principal corporate trust office of the Bond Registrar. The City and the Bond Registrar may deem and treat the registered owner of each Bond as the absolute owner of such Bond for the purpose of receiving payments of principal and interest due on such Bond and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Redemption Provisions No Optional Redemption. The Bonds are not subject to optional redemption prior to their stated date of maturity. Mandatory Sinking Fund Redemption. The Bonds are Term Bonds and are subject to mandatory sinking fund redemption prior to maturity, in part, by lot in such manner as the • 'Preliminary,subject to change 4 Registrar shall determine on December 1 in the years 2004 through 2008, inclusive, at 100 percent of the principal amounts set forth in the following schedule, plus accrued interest, if any, to the date of redemption, from mandatory sinking fund deposits into the Bond Fund in the principal amounts set forth below: Mandatory Sinking Fund Mandatory Sinking Fund Redemption Dates Redemption Amounts December 1,2004 $ December 1,2005 December 1,2006 December 1, 2007 December 1,2008 December 1,2009* *Maturity Effect of Redemption. When so called for mandatory sinking fund redemption, such Bonds shall cease to accrue interest on the specified mandatory sinking fund redemption date, provided funds for mandatory sinking fund redemption are on deposit at the place of payment at that time, and such Bonds shall not be deemed to be Outstanding as of such mandatory sinking fund redemption date. Notice of Redemption. For so long as DTC is the securities depository for the Bonds, the Registrar shall send redemption notice to DTC and not to the beneficial owners of the Bonds. The City makes no representation that any beneficial owner will receive such notices from DTC Except while the Bonds are held in DTC's book-entry system or unless waived by the Registered Owner of any Bond to be redeemed, notice of any such mandatory sinking fund redemption shall be sent by the Registrar by first-class mail, postage prepaid, not less than 30 nor more than 60 days prior to the date fixed for mandatory sinking fund redemption, to the Registered Owner of each Bond to be redeemed at the address shown on the Bond Register. Such requirement shall be deemed to be complied with when notice is mailed as herein described, regardless of whether it is actually received by the Registered Owner of any Bond to be redeemed. Open Market Purchase. The City has reserved the right to purchase the Bonds on the open market at any time, at any price. To the extent the City purchases Term Bonds on the open market, the City may reduce, at its discretion, the amount of any mandatory sinking fund deposit or deposits by an aggregate principal amount equal to the principal amount of the Term Bonds so purchased. Paying Agent Principal of and interest on the Bonds will be payable by the Bond Registrar(or such other fiscal agency or agencies as the City may from time to time designate). So long as Cede & Co. is the registered owner of the Bonds, principal of and interest on the Bonds are payable by wire transfer by the Bond Registrar to DTC, which, in turn, is obligated to remit such principal and 5 interest to the DTC Participants for subsequent disbursement to the Beneficial Owners of the Bonds, as further described herein under the caption"Book-Entry Only System." Book-Entry Only System The information set forth in Appendix D has been provided by DTC. Beneficial Owners should confirm the information contained in Appendix D with DTC or the Participants. Transfer and Exchange of Bonds Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days preceding any principal payment or mandatory sinking fund redemption date. Defeasance of the Bonds If the principal or redemption price of any Bonds becoming due together with all interest accruing thereon to the due date, has been paid or provision therefor made in accordance with the Ordinance, all interest on such Bonds shall cease to accrue on the due date and all liability of the City with respect to such Bonds shall cease as of the date such principal and interest is so provided for Thereafter the registered owners of such Bonds shall be restricted exclusively to the money so deposited for any claim of whatsoever nature with respect to such Bonds, and the Bond Registrar shall hold such money in trust for such registered owners uninvested and without interest 6 APPLICATION OF THE BOND PROCEEDS The following table depicts the estimated sources and uses of the Bond proceeds. Sources of Funds Principal Amount of the Bonds $3,375,000` Plus: Original Issue Premium Less: Original Issue Discount O Less: Underwriter's Discount _0 Total Uses of Funds Escrow Requirements $ Estimated Cost of Issuance(" Deposit to Debt Service Fund Total $ (1) Includes Bond Counsel fees,municipal bond insurance premium,rating fees and other fees and costs The net proceeds of the sale of the Bonds will be used to refund prior to their maturity a portion of the City's outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, and to pay the costs of issuing the Bonds and the costs of the refunding. REFUNDING PLAN Purpose . The Bonds are being issued so that the City can defease $3,210,000 of the City's outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, dated June 1, 1993, which mature on December I in the years 2004 through 2009, inclusive (the "Refunded Bonds") as they become due. A portion of the proceeds of the Bonds will be placed in an irrevocable escrow to pay the principal of and interest on the Refunded Bonds. A portion of the proceeds of the Bonds will also be used to pay the administrative costs of the refunding and to pay the costs of issuance of the Bonds. Refunding Procedure From the proceeds of the Bonds, and with other money available, the City will purchase certain direct non-callable United States government obligations (referred to herein as "Government Obligations"). These Government Obligations will be deposited in the custody of U.S. Bank National Association (the "Refunding Trustee"). The maturing principal of the Government Obligations, interest earned thereon, and necessary cash balance, if any, will be used to provide payment of the interest on and principal of the Refunded Bonds as they become due The Government Obligations, interest earned thereon, and necessary cash balance, if any, will irrevocably be pledged to and held in trust for the benefit of the owners of the Refunded Bonds `Preliminary,subject to change 7 by the Refunding Trustee, pursuant to a refunding trust agreement to be executed by the City and the Refunding Trustee. Information on the Refunded Bonds is as follows: Refunded Bonds Maturity Years Principal Interest Redemption Years CUSIP (December 1) Amounts Rates (December 1) Numbers 2004 $480,000 5 20% 2004 409746P 2005 515,000 5.30 2005 409746P_ 2006 540,000 5.40 2006 409746P_ 2007 530,000 5.50 2007 409746PG3 2008 555,000 5.55 2008 409746PHI 2009 590,000 5.60 2009 409746PJ7 Verification of Mathematical Calculations The Arbitrage Group, Inc., Sugar Land, Texas, a firm of independent arbitrage consultants, will verify the accuracy of the mathematical computations concerning the adequacy of the maturing principal amounts of and interest earned on the Government Obligations, to be placed together with other escrowed money in the Escrow Account to pay when due, pursuant to the call for redemption, the principal of and interest on the Refunded Bonds SECURITY AND SOURCES OF PAYMENT FOR THE BONDS Pledge of Full Faith,Credit and Resources The Bonds are unlimited tax general obligations of the City. For as long as any of the Bonds are outstanding, the City has irrevocably pledged and is obligated by law to provide for the levy and collection annually, of ad valorem taxes without limitation as to rate or amount on all taxable property in the City in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bonds, and the full faith, credit and resources of the City have been pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. See "Limitation on Sources of Payment for the Bonds" below. The Bonds are not obligations of King County (the "County"), the State or any other political subdivision thereof other than the City For a description of the manner in which taxes are levied and collected, see"TAX LEVY PROCEDURES"herein. CITY TAXING AUTHORITY Cities are authorized to levy both regular and excess property taxes as described below: 8 Regular Property Taxes Regular property taxes are subject to limitations on rates and amounts, and are imposed for general municipal purposes including the payment of debt service on limited tax general obligation indebtedness. Any levies established by a city must be charged at the same rate throughout the city. Cities in the State may levy annual property taxes for general purposes, including debt service on any limited tax debt, at a rate not to exceed $3.60 per $1,000 of assessed valuation, without a vote of the people. Under certain circumstances this limit is reduced The principal of and interest on limited tax general obligation bonds must be paid from the regular property taxes unless funds are available from other sources. The total dollar amount of regular property taxes levied by an individual taxing district may not exceed the highest property tax levy of the three most recent years multiplied by 101 percent (unless a greater amount is approved by a simple majority of voters), plus an adjustment for new construction, annexation, improvements and state-assessed property. Since the limit factor applies to the dollar amount levied rather than to levy rates, increases in property values exceeding one percent per year may result in decreasing tax levy rates, and increases in property values by less than one percent per year may result in increasing tax levy rates Additionally, taxing districts may establish the property tax levy at a higher amount if they have not levied the full amount of taxes allowed under chapter 84.55 RCW each year since 1986. In addition to the limitations described above, the constitution and laws of the State impose other limitations on regular property taxes. The aggregate of all tax levies upon real and personal property by the State and all taxing districts (except port districts and public utility districts) cannot exceed, in any year, $10.00 per $1,000 of the true and fair value of such property In addition, the aggregate levies of all taxing districts, other than the State, cannot exceed $5 90 per $1,000 assessed valuation, unless certain limited exceptions apply. If either aggregate limitation on regular property taxes is exceeded in a year, the county assessor must reduce the levy rates for various junior taxing districts (not including the State, counties or cities) on a pro rata basis according to a priority established by statute. Article VII, Section l of the Washington Constitution requires that property taxes be levied at a uniform rate upon the same class of property within the territorial limits of a taxing district levying such taxes. It is possible, because of different overlapping taxing districts in different areas of the City that the maximum permissible levy might vary within the City. In that event, to comply with the constitutional requirement for uniform taxation, the lowest permissible rate for any part of the City would be applied to the entire City. RCW 84.52 052 authorizes the levy of taxes in excess of the $5.90/$1,000 and one percent limit imposed by RCW 84.52.043 and 84.52.050, respectively, by any taxing district except school districts, when a larger levy is necessary in order to prevent the impairment of the obligation of contracts. Any such taxing district may also levy taxes in excess of the rates specified by statute when authorized to do so by the voters of such taxing district. II 9 Excess Property Taxes Cities may impose excess property tax levies if authorized by a 60 percent affirmative vote of the electorate at an election at which 40 percent of the voter's casting votes in the last general election cast a ballot. Excess levies are not subject to limitations other than the specific terms of the proposition approved by the voters. The Bonds are payable from such excess property tax levies. Levy of Taxes For purposes of determining the total amount levied on each property within the county, the county assessor must compile the aggregate levies of the State and all taxing districts within the county. The amount of taxes to be levied for State purposes must be submitted to each county assessor by the Department of Revenue. By November 15 each year, code cities, such as the City, must certify to the county legislative authority the city's budget or the estimated amount to be raised for the city by property taxes. The county legislative authority then levies the taxes of such cities taxes based on the information submitted Upon receiving the levy requirements of each taxing district, the county assessor must calculate and extend on the county tax rolls all taxes to be collected within the county. The levy rate for each taxing district in the county is stated in terms of a specified dollar amount per each $1,000 of a property's assessed value. The rate of all taxes levied for purposes of all taxing districts within the county must be calculated by the county assessor Property may be subject to taxes levied by multiple over-lapping taxing districts. All property in the county is subject to taxation unless specifically exempted by statute. Exempt property includes property owned by the United States, the State, any county or municipal corporation, property on which cemeteries and churches are located; certain property owned and used by non-profit organizations, and property owned as a primary residence by a retired person who is either over the age of 61 years or is no longer employed because of a physical disability In 2004, approximately 7 5% of the property (on the basis of assessed value)within the City is exempt from taxation 10 TABLE 1: TAX LEVY RATE HISTORY (Rates per$1,000 Assessed Value) Year Regular Levy Excess Levy Total Levv 2004 $2.628 $0 219 $2.847 2003 2 655 0 217 2.872 2002 2.721 0 234 2.955 2001 2.765 0 239 3 004 2000 2,921 0 283 3204 TABLE 2: TEN LARGEST TAXPAYER ACCOUNTS WITHIN THE CITY--BASED ON ASSESSED VALUE As of December 31,2003 Assessed % of Total Taxpayer Business/Activity Valuation(AV) City AV Boeing Company Aerospace&computer research $416,053,792 5 1% George McElroy George&Associates Paper products 133,055,700 1 6 Puget Sound Energy Electric and gas utility 122,944,375 1 5 AMB Property LP Holding company 89,859,900 1 1 U.S West Local telephone service 60,700,531 07 Property Reserve,Inc Office Budding 38,049,400 05 Hexcel Corporation Aerospace components 25,565,880 0 3 First American Tax Valuation Loan services 20,592,800 01 Mikron Industries Plastic molding manufacturing 19,577,700 02 Pacific Northwest Group A Paper products 19,169,772 02 Subtotal 945,569,850 115 All others 7,202,752.596 88 5 Total $8,148,322 446 100 0% Source King County Assessor's Office Tax Collection Procedures General The county treasurer collects all taxes extended upon the county tax roll, together with any fines, forfeitures or penalties thereon. The county assessor must deliver the aggregate tax rolls to the county treasurer by January 15 of each year. Upon receiving the tax rolls, the treasurer must post all real and personal property taxes from the county tax roll to the treasurer's tax roll. By the first Monday in January, the county auditor must issue a warrant to the county treasurer authorizing the collection of the taxes listed on the county tax roll The county treasurer can commence collecting such taxes after February 15. All taxes are due annually by April 30. Nevertheless, if the total amount of the tax is $50 or more, then one half of the tax may be paid on or before April 30, together with interest and penalty on the full amount of the tax, and the remainder of the tax may be paid on or before October 31. Distribution to Cities. On or before the loth day of each month, the county treasurer must remit to each city treasurer the city's pro rata share of all taxes collected for the previous month 11 Interest and Penalties. Delinquent taxes currently are subject to interest at the rate of 12% per annum computed on a monthly basis from the date of delinquency until paid. A 3% penalty is assessed on the taxes delinquent as of June 1 of the year in which the tax is due, and an additional 8%penalty is assessed on any taxes delinquent as of December 1. TABLE 3: PROPERTY TAX COLLECTION RECORD Levy Collection during Collected as of Extended by Year of Levy December 31,2003 Year Assessed Value Assessor Amount Percentage Amount Percentage 2004 $8,453,034,167 $24,073,724 N/A N/A N/A N/A 2003 8,175,782,374 23,479,121 $23,003,573 97.97% $23,003,573 97 97% 2002 7,582,349,300 22,407,171 21,920,363 9783 22,285,352 9946 2001 7,153,949,127 21,432,223 21,289,948 9745 21,364,348 99 68 2000 6,468,731,941 20,728,146 20,513,626 9896 20,712,986 99 93 Source King County Assessor's Office and the City Tax Liens and Foreclosure Liens. Property taxes and all charges and expenses relating to the taxes constitute a statutory lien on the property taxed. The lien attaches to the property from and including January 1 in the year in which the tax is levied, and is discharged only when the taxes are paid. Such liens have priority to liens for mortgages,judgments, debts and other obligations. The State courts have not decided whether or not the homestead law (chapter 6.13 RCW) gives the occupying homeowner the right to retain the first $40,000 proceeds of forced sale of a family residence for delinquent general property taxes. However, the State appellate court has held that the homestead right is superior to the lien for local improvement district assessments. Foreclosure. If taxes are not paid within three years after becoming delinquent, the county treasurer may issue certificates of delinquency to the county for such taxes, together with any interest and costs thereon. The county treasurer may commence foreclosure proceedings in superior court upon all tax liens embraced by the certificate of delinquency The county treasurer must immediately sell the property to the highest and best bidder for cash upon entry of the order of foreclosure. The minimum bid allowable is the total amount of the taxes, interest, penalty and costs due To the extent property is stricken to a county at a foreclosure sale, that property is exempt from taxation for so long as it is held by the county A property owner may redeem its property at any time prior to the foreclosure sale by paying to the county treasurer the amount of the certificate of delinquency and all taxes, interest and costs accruing after the certificate of delinquency is issued, together with interest on such amount at the rate of 12% per annum. However, if the property is owned by a minor or a person deemed to be mentally incompetent, it may be redeemed at any time within three years after the date of the foreclosure sale. 12 Collection of Other Taxes In addition to its regular property tax levy,the City also collects various other taxes, including an admissions tax, a gambling tax, a leasehold excise tax, a retail sales or use tax, a utilities tax and a real estate excise tax, among others. Retail Sales and Use Tax. In addition to the State and the County, the City imposes a sales and use tax in the amount of 0.9415% of the selling price for value on any retail sale or use of tangible personal property within the City upon which the State also imposes a sales and use tax. The City's sales and use tax is collected by the State Department of Revenue under a contract with the City that provides for a deduction by the Department of a percentage (not exceeding 2% of the tax collected) for the Department's expenses. The Department of Revenue distributes the City's portion of the retail sales and use tax on a monthly basis. In 2003, the revenue generated from the City's retail sales and use tax was $20,274,192. Such money was deposited into the City's General Fund, the Criminal Justice Fund and the Capital Improvement Fund By statute, the City's retail sales and use tax is limited to a rate of 0.9415% which rate the City increased most recently in 1990. Utility Tax The City levies a utility tax on the gross income of certain utilities operating within the City, including. (i) a 6% tax on the gross income of businesses furnishing electric light or power, selling natural or manufactured gas, providing telephone service (to the extent such income is derived within the City), operating public wastewater collection and treatment systems, and/or selling or furnishing water; (ii) a 5% tax on the gross income of businesses providing cable television services; and (iii) a 7.8% tax on the gross income of businesses providing solid waste collection service. Such taxes are paid on a monthly basis to the City Treasurer, with certain exceptions The City taxes itself for income derived from its sewage and storm water systems. The City charges taxpayers both penalty and interest for delinquent payments. During 2003, the total amount received by the City from its utility taxes was $12,170,245, which was deposited into the City's General Fund and youth teen and environmental special revenue funds. The City can not impose a tax on the privilege of conducting an electrical energy, natural gas, steam energy or telephone utility of more than 6% unless approved by a majority of the voters in the City (RCW 35.21 870). 13 D\ 00 00 M (7\ 00 � cn 00 �D 00 w C L w 40 O N ON � M V) 00 en O M 0 O 01 N ,t 00 r Vl M N 0\ N C) 3 p V 07 d' � M N V1 "D O r � O .4 U N U o M O b9 d9 O U N h C v�I vi O 0 0 0 0 0 Cl 0 0 O G R 4\ O O O O O Cl w 0 0 0 C R a O .• �D �D �D �O lD h �o vl O oA N L N d 00 r. 01 00 O\ m N U ON a, CDM r 0 -+ M O 7 V1 00 M [ �o e+ @ U 7 01 M 00 cD - N cn 7 h 0 O 7 O r N 00 N M N — 0, N �o M �--� .-. � � N O X M O O -Zt�•-• •-• M N M c� N N 69 L O C N o _U D O vU Vl O 0 0 0 0 0 0 0 0 C) R N � O� O 00 00 00 0000 00 00 O �y O —4 V V V 7 7 r v V) O O M d L L N o It000rrn \a0000rn "o A ^O N Q1 h 00 N N C y y vi M h M kn N to �D N 0) N 7 cd ai O u 00 ll- M O O N M 00 \O 01 to r M h N h M O +� U O O CG N U rq \' w 7 O O y v O O O O O O O O O O U O` N C, O DO 00 00 00 00 00 00 O V1 U O ttl 7 U �i O vavvvr �tN O CL i V' Vl .ti Vl Ln O U 1.0 O h m r \D O+ h CQ O O U bb o0 U C1 r en V7 .r O lD 7 U G O w N O V7 V O, O V' h lD M %C M N N --+ C vi 7 00 L W N a0 U a� Con � � 3 a1 0 00 00 00 00 00 00 o '= o vvva � ravi o � � � 00 O, M N h h V1 O N V r T j N r Q1 M o0 O V) O'n N 00 N � 7 h U V N�D V cn h -� 01 r M 01 rfn �o cn w 00 O lD V NC14 N y y U N E�9 itl N cCC O L RI V) C 0000000C O .m. W 0 GO CD m = 00 00 C> ,I- 'ct -zl- r 7 O N V1 � N � U x cl o y 2 a"'w C C i. � w � U d 0 D 3 /row ( IL "? z «, Real Estate Sale Excise Tax The other significant source of tax revenue for the City is its real g estate sale excise tax, which is levied on each sale of real property within the City at the rate of 0.50% of the selling price. The King County Treasurer collects this tax and retains 1.53% of the gross proceeds The remaining proceeds are placed into the City's Capital Improvement Fund. During 2003,the total amount of revenue derived from the City's real estate sales excise tax was $3,650,413. By statute the City's real estate sale excise tax is limited to a rate of 0.50% at the selling price. In 1998, the City levied the second 0 25%allowable for real estate excise tax to be used exclusively for park development. Streamlined Sales Tax The State may enact, at some point in the future, the model legislation for the implementation of the national streamlined sales tax. When enacted by the federal legislature this will provide for sales tax on catalog and internet sales Washington will be required to move from its current model of point of sale to determine tax situs to a point of delivery model As the City is a manufacturing and distribution center, the "sourcing" move could negatively impact the revenue received from the local portion of sales tax by an estimated $3.8 million Business and Occupation Tax The City does not levy a business and occupation tax. DEBT LIMITATIONS OF THE CITY The amount of indebtedness that a city may legally incur is limited by the Constitution and laws of the State. For State law purposes, "debt" generally includes any unconditional obligation that is generally payable from and secured by a pledge of tax revenues. The debt limitations applicable to cities are set forth in terms of debt for general purposes and debt for special purposes. Without the approval of its voters, a city may incur debt in the aggregate amount of up to 1'/z% of the assessed value of taxable property within the city Upon the approval of 60% of the city's voters, a city can incur total indebtedness, including non-voted debt. in an amount not to exceed 2%%of the assessed value of taxable property within the city. In addition to the indebtedness authorized for general purposes, a city may incur debt for (i) water, artificial light and sewers in an amount not exceeding 2'/2% of the assessed value of taxable property within the city; and (ii) open space and parks in an amount not to exceed 2'/2% of the assessed value of taxable property within the city. Before incurring such additional indebtedness for special purposes, a city must receive the approval of 60% of its voters. Accordingly, the aggregate indebtedness a city may incur for general and special purposes is equal to T/z% of the assessed value of taxable property within the city. The City has not incurred any general obligation debt which would count against the City's debt capacity for water, artificial light and sewer purposes or open space and parks purposes. For a discussion of the outstanding debt of the City, see "OUTSTANDING DEBT AND OTHER OBLIGATIONS" herein. In determining the total amount of indebtedness outstanding, a city is allowed to offset certain assets against the aggregate amount of debt outstanding. Such assets include taxes levied for the current year, uncollected taxes that are not delinquent for longer than six years, and cash on hand 15 and received for general business purposes. The following table sets forth the calculations of the City's debt limitations. TABLE 5: CALCULATION OF DEBT LIMIT As of March 1,20040x31 Assessed Value within the Ctty(2) $8,453,034,167 NONVOTED DEBT CAPACITY(per RCW 39 36 020) 1'/z%of the value of taxable property $126,795,513 Less: Nonvoted Debt Outstanding- (67,550,000) Plus- Cash and investment balances in the City's General Fund131. 2,295,166 REMAINING NONVOTED DEBT CAPACITY: 61.540.679 TOTAL DEBT CAPACITY FOR GENERAL PURPOSES: (Nonvoted and Voted,per RCW 39.36 020)2'/z%of the value of taxable property $211,325.854 Less: Voted Debt Outstandtngtil. (3,040,000)• Less- Nonvoted Debt Outstanding. (67,550,000) Less The Bonds (3,375,000)* Plus. Cash and investment balances in the City's Debt Service Fund(3) 1,341 REMAINING DEBT CAPACITY: $137,362.195 (1) As adjusted for issuance of the Bonds (2) As of December 31,2003 (3) As of January 1,2004 Debt Repayment Record The City has never defaulted on a payment of principal or interest on any of its general obligation bonds. Furthermore, the City has never issued refunding bonds for the purpose of avoiding an impending default on its general obligation bonds THE CITY Introduction The City, an optional code city of the State, is located in the southern portion of the County For a discussion of the economy of the City, see "GENERAL AND ECONOMIC INFORMATION" herein. The City encompasses an area of approximately 28 square miles. The City was incorporated in 1890 and has a mayor-council form of government, with a mayor and seven- member council A Chief Administrative Officer is appointed to provide administrative direction to the City. `Preliminary,subject to change 16 Mayor and City Council The City has a full-time Mayor who is elected to a four-year term The Mayor administers the policies established by the City Council. The City Council is the legislative authority of the City and establishes and controls policy for the City. Councilmembers are elected to staggered four- year terms by the qualified electors of the City If a Councilmember is appointed to fill a vacancy on the City Council, the Councilmember serves for the unexpired portion of the vacated term Administration of the City Principal City officials include the following: Mike Martin, Chief Administrative Officer, was appointed to this position in November 2001. Before joining the City, he worked in the Mayor's office in the City of San Francisco from 1993 to 2001. He acted as a public safety budget analyst and later as the City of San Francisco's Budget Manager Mr. Martin was then appointed by then Mayor Willie Brown to oversee a $167 million project to rebuild the city's entire 911 system Prior to his work in San Francisco, Mr. Martin worked as a management analyst for the City of Fresno, California. He also worked as a journalist covering local government issues from 1984 to 1991. Robert J. Nachlinger, Finance Director,joined the City in December, 2003. The duties of the Finance Department include accounting, financial planning and budget, treasury, utility billing, purchasing and central services. Prior to Joining the City, Mr. Nachlinger was Assistant City Manager for Finance and Administration for the City of Miami, Florida, Finance Director for the City of Homestead, Florida; and Finance Director for the City of Miami Beach, Florida He is a past member of the Government Finance Officer's Associations "Review Committee for the Certificate of Conformance;" former officer with the Florida Government Finance Officer's Association; and past president of the Dade-Broward Finance Officers Association Tom Brubaker, City Attorney, was appointed to his position in February 2002. In this capacity, he heads the City's Legal Department. Mr. Brubaker has been with the City since November 1990. He was Assistant City Attorney from 1990 until 1999, when he was appointed Deputy City Attorney. Prior to his employment with the City, he was in private practice with the law firm of Harris, Orr and Wakayama. Mr. Brubaker has a Bachelor of Arts degree from Southern Illinois University, and he is a graduate of Seattle University School of Law. Brenda Jacober, City Clerk, has been employed in the Office of the City Clerk since 1975 She became Deputy City Clerk in 1986. She is a Certified Municipal Clerk, having completed her training in 1989. Ms. Jacober was appointed City Clerk in 1991. Principal Governmental Services of the City Police and Fire Protection. The City provides police and fire protection for its inhabitants, and employs approximately 179 people (on a full-time equivalent ("FTE") basis) in its police department and 158 people (FTE) in its fire department. For 2004, approximately 31.6% of the City's annual General Fund budget is allocated to the police department, and 28% of the annual 17 General Fund budget is allocated to the fire department. Such appropriations are funded primarily from regular property and sales tax collections. Road Maintenance. The City maintains approximately 750 lane miles of streets, roads and alleys with a public works department consisting of approximately 150 employees (FTE). The City is responsible for paving and repairing roads, as well as clearing snow, ice and debris from the roads when necessary. Approximately $4,260,992 (6 81/6) of the City's 2004 General Fund budget is allocated to the City's Street Division and Public Works Department, which amounts are to be funded in part by State gasoline tax receipts, sales tax receipts and regular property tax receipts, among other sources. Parks. The City maintains 1,349 acres of parks and greenbelts, the operating budgets for which are funded primarily with regular property and sales tax receipts Water, Sewer and Storm Drainage Services. The City has a water collection and distribution system, and a sewer and storm drainage collection system, all of which are supported entirely with revenues from their operation. Sewer treatment is handled by the County Accounting The accounting and reporting policies of the City conform to generally accepted accounting principles for municipal governments and are regulated by the State Auditor's Office, Division of Municipal Corporations The City's Finance Director maintains general supervision over financial transactions of all City funds. The City received the Certificate of Achievement for Excellence in Financial Reporting for its 1994 through 2002 Comprehensive Annual Financial Report awarded by the Government Finance Officers Association of the United States and Canada. Summaries of the financial statements of the City for each of the calendar years 2000 through 2003, together with the budget for 2004, are set forth in Table 10 on page 26 Except for the financial information shown for the year 2003, the data were derived from the financial statements of the City that were audited by the Office of the State Auditor, Division of Municipal Corporations. Investments The City has an investment policy adopted by the City Council. The investment policy was awarded the Municipal Treasurer's Association "Certificate of Excellence" in January 1996 and was commended for achieving fiscal responsibility. Pursuant to the investment policy, the City's Finance Director invests all temporary available cash surpluses, including amounts in the Bond Fund, in securities issued by the United States government and its agencies, municipal securities, certificates of deposit and the local government investment pool administered by the Washington State Treasurer (the "LGIP"). The Finance Director invests the City's debt service funds, separately from other funds, in accordance with the policies established by the City All investments of the City are held by the City's primary bank, with the exception of certificates of deposits; money invested through the LGIP; United States Treasury SLGS; and mutual funds 18 (Fire Relief and Pension Fund) registered in the name of the City. The City's policy is to hold all investments to maturity. Employee Relations The City, as of January 1, 2004, had approximately 730 FTE employees State law requires municipalities to bargain collectively with formally recognized collective bargaining units Currently, 6 unions represent 70% of the City's employees. There have been no strikes for at least the last 30 years and the City considers its employee relations to be satisfactory. TABLE 6: LABOR BARGAINING UNITS As of January 1,2004 Approximate No. Contracts Name of Unit of Employees Expire(12/31) Teamsters Local 117 121 2005 International Association of Firefighters 146 2004 Police Officers Association 114 2004 Police Officers Association,Management 9 2004 American Federation of State,County 146 2005 &Municipal Employees(AFSCME) IAFF,Management 2 20020) (1) The City and the union are still in negotiations to renew contract Pension Plans The City participates in three retirement and pension plans the City's Firemen's Pension Fund, which is a single employer-defined benefit pension plan, and the Law Enforcement Officers and Firefighters System ("LEOFF") and the Public Employees Retirement System ("PERS"), which are contributory multi-employer cost-sharing systems operated by the State. There is currently one City employee that are members of the City's Firemen's Pension Fund. State Retirement Systems. All full-time employees and some part-time employees of the City are covered by either LEOFF or PERS. City officials have stated that all required contributions are being made to those systems In 2003, the major sources of funding for LEOFF were property taxes, investment earnings and contributions. The major sources of funding for PERS were contributions and investment earnings. Contributions by the City to LEOFF and PERS, in the aggregate, have been as follows: 1999 2000 2001 2002 2003 $2,125,044 $1,876,066 $1,562,349 $973,951 $1,020,785 Firemen's Pension Fund. The City's Firemen's Pension Fund is a single employer-defined pension fund established and administered by the City in accordance with the requirements of State law. Since the effective date of LEOFF on March 1, 1970, no payroll for active employees has been covered by this pension plan. The Firemen's Pension Fund provides retirement benefits to all firefighters who retired prior to March 1, 1970, and limited benefits to those 19 retiring after that date who are mainly covered by the LEOFF system. Firefighters hired after October 1, 1977, are not covered by the Firemen's Pension Fund. In 2003, the major sources of funding for the Firemen's Pension Fund were investment earnings and the State fire insurance premium tax. The last actuarial valuation study for the plan was performed as of January 1, 2002, which study reported no unfunded pension benefit obligation As of December 31, 2002, the Firemen's Pension Fund had net assets of $3,647,923 that exceeded the actuarial present value of future benefits of$2,002,000 by $1,645,923. The City last made a contribution to the fund in 1986. Insurance The City is a charter member of Washington Cities Insurance Authority (the"Authority"),which now includes cities and interlocal agencies totaling 108 participants Coverages provided by the Authority are comprehensive general liability, including vehicle liability, false arrest and errors and omissions Member cities share in the payment of claims under a self-insured retention in the amount of$1,000,000 per occurrence. The City has opted to self insure up to $100,000 per occurrence, thus saving significant premium costs. The Authority purchases insurance covering losses in excess of $2,900,000 to a limit of $10,000,000 per occurrence, with total coverage amounting to $14 million annual aggregate. The Authority recorded $21.8 million in 2002 and $19 million in 2001 for expenses that included assessments from the Authority, insurance premiums, claims, incurred but not reported claims and operating expenses of the City The Authority and its members are involved in ongoing litigation and claims processing of which the total dollar value of the risk posed is unknown but would be unlikely to exceed total liability insurance coverages. The City had assets of approximately $58 million in its Liability Self Insurance Fund as of December 31, 2002, with claims reserves of approximately $27.2 million The Authority had assets of approximately $1,511,161 million as of December 31, 2003, with claims and members reserves of approximately $1,398,131 million Budgetary Process Operations of the City are guided by an annual budget prepared under the direction of the City's Chief Administrative Officer pursuant to statute All estimates for receipts and expenditures for the ensuing year must be fully detailed in the annual budget and must be classified according to standards prescribed by the State Auditor. In September of each year, the Chief Administrative Officer and the heads of each City department must file detailed estimates of the probable revenues and expenditures of the City for the ensuing fiscal year. Upon receiving the estimates, the Chief Administrative Officer prepares the estimates for debt service requirements of the City By the first business day of October, the Chief Administrative Officer and the Mayor submit a proposed preliminary budget to the Council for the ensuing fiscal year. After a series of public hearings, the City Council must hold a final hearing on the budget by the first Monday of December. After the final hearing, the City Council must adopt the budget in its final balanced form by December 31 of each year. By statute, the final budget must be balanced Once adopted, the annual budget may be revised or amended by Council action by emergency ordinance 20 INITIATIVE AND REFERENDUM General Under the State constitution, the voters of the State have the ability to initiate legislation and to modify existing statutes through the powers of initiative and referendum. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiatives) and four percent (referenda) of the number of voters registered and voting for the office of Governor at the preceding regular gubernatorial election Any law approved in this manner by a majority of the voters may not be amended or repealed by the State legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the legislature, but thereafter is subject to amendment or repeal by the State legislature in the same manner as other laws. Future Initiatives Initiative petitions affecting tax collections, levy rates and other matters may be filed in the future. The District cannot predict whether any such initiatives will qualify to be submitted to the voters or, if submitted, will be approved. Likewise, the District cannot predict what actions the State legislature might take, if any, regarding future initiatives approved by voters OUTSTANDING DEBT AND OTHER OBLIGATIONS General Obligation Bonds. As of the issuance of the Bonds, the City will have outstanding $6,415,000 of unlimited tax general obligation bond indebtedness. In addition, the City will have outstanding approximately$67,550,000 of non-voted general obligation bonds. Revenue Bonds. As of December 31, 2003, the City had outstanding $4,445,000 principal amount of revenue bonds. Such revenue bonds are payable solely from revenue derived from the system or facilities financed with the proceeds of such bonds and are not in any manner or to any extent general obligations of the City or a charge upon any other revenues, including taxes, or property of the City not specifically pledged thereto. Special Assessment District Bonds. As of December 31, 2003, the City had outstanding $14,923,438 of local improvement district bonds. Such bonds are payable solely from assessments levied upon all property specially benefited within each individual local improvement district and by amounts in the City's local improvement guaranty fund. Other Obligations. As of December 31, 2003, the City had state trust fund loans payable to the State in the amount of$20,346,602. Such loans are payable solely from the City's water fund and sewerage fund. The City has no land purchase contracts. Such arnount is considered to be a non-voted general obligation of the City. Debt Service Requirements of the City The City has established a Bond Fund from which it expects to pay all principal and interest on the Bonds as such becomes due and payable. The City has pledged to deposit into the Bond Fund amounts, sufficient to pay principal of and interest on the Bonds when due, from tax levies 21 on all of the taxable property within the City without limitation as to rate or amount and other amounts available and to be used therefor. The annual principal and interest requirements of the Bonds are set forth in Table 7. TABLE 7: UNLIMITED TAX GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS OF THE CITY (as of May 19,2004) Outstanding The Bonds* Year UTGO Bonds(i) Principal Interest Total 2004 $1,126,220 $ 505,000 $ 64,800 $1,696,020 2005 1,121,040 560,000 103,320 1,784,160 2006 1,122,510 575,000 83,160 1,780,670 2007 0 560,000 62,460 622,460 2008 0 575,000 42,300 617,300 2009 0 600,000 21,600 621,600 Total $3,369,770 $3,375,000 $177,640 $7,122,410 (1) Adjusted to exclude the Refunded Bonds *Prehmmary;subject to change .Source Lehman Brothers Estimated Future Financing The City does not expect to issue additional unlimited tax general obligation debt within the next 12 months. The City does not anticipate issuing any revenue bonds in the next 12 months Direct and Overlapping General Obligation Debt As of December 31, 2003, the total net direct and estimated overlapping general obligation debt within the City, including City indebtedness, was $276,654,720 The direct and overlapping general obligation bond debt is detailed in Table 8 An analysis of the direct and overlapping debt is set forth in Table 9. 22 TABLE 8: DIRECT AND OVERLAPPING GENERAL OBLIGATION BOND DEBT FOR POLITICAL SUBDIVISIONS WITHIN THE CITY Bonded DIRECT DEBT Percentage Amount Net Debt(l) Applicable Applicable General long-term debt of Government Funds Compensated balances payable $ 3,874,102 Contracts payable(2) 6,071,392 100.00% $ 6,071,392 The Bonds(3) 3,375,000 100.00 3,175,000 General obligation bonds payable(4) 76,913,000 100.00 80,320,000 Total general tong-term debt $90,233,494 $89,766,392 Less amount in General Obligation Debt - Service Fund $ (1,341) Net Direct Debt 90.233.494 89.765.051 OVERLAPPING DEBT King County $715,919,359 3 5970% $ 25,751,619 Port of Seattle 217,285,000 3 5970 7,815,741 School District No.210 111,907,508 70912 8,077,409 School District No 401 155,458,853 1 1605 1,804,100 School District No 403 240,460,260 4 2138 10,132,514 School District No.408 106,104,867 00039 4,138 School District No.409 50,334,850 00038 1,913 School District No.415 225,111,354 54 4636 122,603,747 Hospital District No 1 45,695,000 29 6312 13,539,977 Rural Library District 29,863,072 1.8847 562,829 Total Estimated Net Overlapping Bonded Debt $1.900.140 123 $190.293.987 Total Net Direct and Overlapping Bonded Debt $280,059,038 (1) Includes both bonded and nonbonded general long-term debt (2) Includes City portion of Valley Comm bonds$2,193,000,trust fund loans of$65,015 recorded as a liability of the Water Fund and$1,281,587 recorded as a liability of the Sewerage Fund and lease purchase contracts payable of$14,812 recorded as a liability of the Golf Complex Fund (3) Preliminary, subject to change (4) Includes$6,340,000 recorded as a liability of the Sewerage Fund and$3,390,000 recorded as a liability of the Golf Complex Fund. Source King County Assessor's Office and Department of Finance 23 TABLE 9: ANALYSIS OF DIRECT AND ESTIMATED OVERLAPPING DEBT Net Direct Debt $ 89,765,051 Overlapping Debt 190.293,987 Total Net Direct Plus Estimated Overlapping Debt 280.059,035 Assessed Value $8,453,034,167 Estimated Population 84,210 Total Assessed Value Per Capita $100,380 Debt Ratios: Total Net Direct Debt to Assessed Value l 06% Total Net Direct Plus Estimated Overlapping Debt to Assessed Value 3 31% Total Net Direct Debt Per Capita $1,066 Total Net Direct Plus Estimated Overlapping Debt Per Capita $3,326 Source City of Kent for Direct Debt, Overlapping Debt from King County Assessor's office and City's Department of Finance 24 TABLE 10: GENERAL SPECIAL REVENUE AND DEBT SERVICE FUNDS Revenues by Source and Expenditures by Program Actuals(') Budget(') REVENUES 2000 2001 2002 2003 2004 Taxes Property $20,605,973 $21,081,042 $22,338,412 $23,391,185 $24,073,725 Sales and use 21,986,128 21,917,014 21,106,522 20,274,192 21,891,099 Utility 10,272,577 11,460,087 10,529,816 12,170,245 13,056,618 Other 3,438,672 3,643,685 3,698,850 4,069,373 4,150,047 Licenses and permits 1,743,034 1,523,943 1,645,214 1,730,623 1,771,749 Intergovernmental revenue 8,480,852 9,089,092 9,512,529 8,516,685 8,206,110 Charges for services 3,716,330 2,779,725 2,857,967 3,015,073 2,993,092 Fines and forfeitures 1,405,622 2,015,593 1,506,127 1,553,071 1,562,857 Special assessments 1,988,946 2,458,274 2,384,925 2,347,459 1,671,898 Interest income 2,746,351 3,009,875 2,123,835 1,625,410 1,462,885 Miscellaneous revenue 1,900,828 1 094,925 936,284 1064,552 8 22.916 TOTAL REVENUES $7g285313 R80073,25� $78640,481 $79J57873 OPERATING EXPENDITURES General government $ 9,491,915 $ 9,132,746 9,090,967 9,091,627 8,552,611 Public safety 34,635,020 39,328,830 39,972,657 40,840,241 42,107,846 Public works 5,170,906 5,701,786 5,900,636 5,445,763 5,437,323 Leisure services 6,655,356 6,526,375 6,580,406 7,017,057 7,220,133 Health and human services 3,991,944 4,029,356 4,377,695 4,624,001 4,536,048 Debt service 9,679,824 12232567 11 971206 13 203,682 11,967,959 TOTAL OPERATING EXPENDITURES $69 62d 965 $76 951.66D $77 792 667 R8,_0 7?7„r 71 $79 821 920 REVENUE OVER(UNDER) EXPENDITURES $ 8,660,348 $ 3,121,595 $ 847,814 (S 464,498) $ 1,961,076 OTHER FINANCIAL SOURCES(USES) Proceeds from special assessments debt issuance 536,721 Proceeds from mterfund note Prior period adjustment 192,339 (57,737) Operating transfers in 6948,051 9672,520 9,601,453 9,691,355 9,549,091 Operating transfers out (4,507,676) (8,310,388) (7,983,391 (8 446 673) (8,849,703) Net other financial sources(uses) $ 2,340,375 $ 2,091,192 $ 1,578,775 $1,245,132 ($ 300,612) Capital project transfers out (9,852,702) (7,629,213) (6,257,179) (3,244,617) (3,065,791) INCREASE(DECREASE)IN FUND BALANCE $ ),148,021 $ (2,416,426) ($ 3,830,590) ($ 2,463,983) ($1,505,327) BEGINNING FUND BALANCE") $18,366,322 $19,514,343 $17,097,917 13,267,327 S10,803,344 ENDING FUND BALANCE Reserved 231,832 256,526 18,475 881 258,937 Reserved for debt service 2,521,668 2,642,411 1,847,613 2,459,954 2,018,422 Unreserved but designated 5,988,787 5,988,787 5,716,990 4,368,780 3,403 469 Unreserved 10,772,056 8,210,193 5,684249 3.973 729 3,617,18 TOTAL ENDING FUND BALANCE 1$ 9-514,343 $17.097 917 $13 267 327 $]0.803 344 8 7 (1) From City of Kent Comprehensive Annual Report Statistics (2) Based on 2004 Approved Budget (3) Beginning Fund Balance for 2004 based on preliminary 2003 actuals,not budget Source Crry ofKentAnnual Financial Reports and the 2004frnal budget 25 GENERAL AND ECONOMIC INFORMATION The City is located in the southern portion of the County, in the Green River Valley, approximately 18 miles south of Seattle and 18 miles northeast of Tacoma. State Highways Nos. 167, 181 and 516 pass through the City, and Interstate 5 passes through the City's west side. The economy of the City was originally based on agriculture, logging and the processing of farm products. The City's close proximity to expanding urban markets helped foster its growth. Farming remained a dominant industry in the area until the 1950s when the economy diversified to include industrial development. As of 2004 within the City's 28 square mile city limit, approximately 22% of land is zoned for industrial use, including about 938 acres of vacant land, according to the City's Planning Department. TABLE II: POPULATION OF THE CITY AND THE COUNTY Year City of Kent King County 2003 84,210 1,779,100 2002 84,275 1,744,312 2001 82,782 1,758,300 2000 79,524 1,737,034 1999 73,140 1,677,000 1990 37,960 1,507,319 Source 1990 and 2000 figures, US Census Bureau, all other figures, Washington State ice of Financial Management Major Employers The Boeing Company, which currently has approximately 53,541 employees throughout the State, employs approximately 4,478 people at its Kent Defense and Space Center complex. The Defense and Space Center, which has been located in the City since 1964, is primarily an engineering and technical center for research and development and computer services, with some production of aerospace equipment conducted in the plant Some of the other major employers in the City are listed in Table 12. 26 TABLE 12: MAJOR EMPLOYERS IN THE CITY As of 2/19/04 Approximate Number of Enti Nature of Business Employees Boeing Company(Kent Space Ctr) Aerospace research and computer research 4,478 Kent School District No 415 Public education 3,165 The City of Kent City Government 802 R.E.I Inc. Recreational clothing and equipment 689 King County Regional Justice Center County court and corrections facility 630 Hexcel Corporation Plant 1 Aerospace components 600 Sysco Food Services of Seattle,Inc Wholesale food distributor 600 Mikron Industries,Inc. Plastic molding manufacturer 490 Oberto Sausage Company Specialty Meat sales and manufacturing 447 United Airlines Airline reservation call center 415 Patient Accounting Service Center Process medical accounts 407 Food Services of America Food warehouse 361 Starbucks Coffee Company#087 Coffee roasting and packaging 350 The Office Depot#1078 Supplies 341 Dreyer's Grand Ice Cream Frozen foods 300 Exotic Metals Forming Company Aircraft parts manufacturer 294 Flow International Corporation Waterlet cutting systems manufacturer 290 Source City of Kent Business License System The following table provides information regarding average annual non-agricultural employment by industry in the Seattle-Bellevue-Everett Primary Metropolitan Statistical Area ("PMSA") for the years 1999 through 2003. 27 TABLE 13: AVERAGE ANNUAL NON-AGRICULTURAL WAGE AND SALARY WORKERS SEATTLE-BELLEVUE-EVERETT PMSA") (OOOs)1�1 1999 2000 2001 2002 2003191 TOTAL(3) 1,3824 1,405 0 1,1525 1,358 6 1,119 , MANUFACTURING 2140 1970 1804 173.0 149.9 Durable Goods 1699 154 8 1407 133.6 118.5 Nondurable Goods 44 1 422 39 7 39.4 314 MINING&QUARRYING 07 1 1 1 0 1 1 1 3 CONSTRUCTION 784 78 8 729 764 75.5 TRANSP. COMM. &PUBLIC UTIL. 840 88.0 81 1 808 261.3 WHOLESALE&RETAIL TRADE 325 0 324 0 312 2 3IT1 2114 FINANCE,INS. &REAL EST 846 860 877 879 91 4 SERVICES 4087 433.5 4149 4181 4161 GOVERNMENT 1870 1966 2023 2042 2028 (1) Area composition of annual average total is approximately King County 81%,Snohomish County 18%,and Island County 1% (2) Numbers may not add due to rounding (3) Excludes proprietors,self-employed,members of the armed services,workers in private households and agricultural workers (4) Preliminary Source State of Washington Employment Security Department TABLE 14: EMPLOYMENT STATISTICS--SEATTLE-BELLEVUE-EVERETT PMSAM 1999 2000 2001 2002 200f) Civilian Labor Force 1,404,800 1,392,400 1,363,000 1,415,600 1,407,300 Employment 1,357,200 1,340,900 1,292,600 1,327,200 1,320,600 Unemployment 47,500 51,600 70,400 98,400 86,700 Unemployment(percent) 3 4% 3 7% 5 2% 7 3% 6.8% State of Washington Unemployment(percent) 4.5% 5.2% 6 4% 6 2% 6.2% (1) Area composition of annual average total is approximately King County 81%, Snohomish County 18%,and Island County 1% (2) Preliminary Source State of Washington Employment Security Department Education Portions of four different school districts are located within the City Highlme, Renton, Federal Way and Kent. The major district serving most of the City is Kent School District No 415, which consists of twenty-eight elementary schools, seven junior high schools, five senior high schools, a special education school and a head start facility Green River Community College near Auburn and Highline Community College at Midway are within ten minutes' driving time of the City The University of Washington, Seattle University 28 and Seattle Pacific University are in Seattle_ Pacific Lutheran University and the University of Puget Sound in Tacoma are within commuting distance of the City. Day and night adult education courses are conducted as part of the Green River Community College program. Transportation Rail service is provided by Burlington Northern and Union Pacific. The City is served by all major truck lines serving the Seattle-Tacoma area. Bus travel is furnished to all parts of the County by Metro Transit Lines. Commuter train service to Seattle and Tacoma is provided by Sound Transit. Seattle-Tacoma International Airport is 15 minutes away from the City The Auburn Municipal Airport, located south of Kent, serves the area as does Crest Air Park east of the City. Local Development The City in January 2004 sold 10 acres in downtown to Tarragon Development of Seattle. Construction on the first phase of the development will begin in July 2004 with an anticipated completion date of May 2005 Tarragon will invest $39 million in the first phase, building 130,000 square feet of mixed-use development, as well as a 21,000-square-foot civic plaza in the project's center. When the 18-acre site(Tarragon has an option to purchase an additional 8 acres adjacent to the 10 acres they already purchased) is fully developed, the $100 million project will include 470,000 square feet of retail, office, residential, educational and entertainment facilities The City is making $2.3 million in infrastructure improvements at the site, including Ramsay Way, the main street through the project which will connect to the City's existing downtown TABLE 15: BUILDING PERMITS—CITY OF KENT New Construction Value of New Construction Single Multi- Total Value Family Family Single Family Other of All Permits Residences Units Commercial Residences PermitsM Issued 2003 309 0 $31,265,982 $54,783,534 $34,112,468 $120,161,984 2002 289 56 19,743,621 47,037,467 32,111,068 98,892,156 2001 185 263 37,593,036 39,306,967 32,901,247 109,801,250 2000 302 262 33,357,663 43,879,655 76,281,793 153,521,111 1999 301 803 41,888,457 39,648,148 79,174,912 161,595,217 (1) Includes commercial, industrial and residential remodels, and amounts for governmental, demolition and alterations Source City of Kent, Washington 29 TABLE 16: TAXABLE RETAIL SALES (as of 12/31) Year City of Kent King County 2003 $ 345,924,4111" $26,288,555,499(') 2002 2,099,571,848 35,156,210,451 2001 2,195,416,919 36,113,326,150 2000 2,239,262,071 37,771,529,228 1999 2,070,326,188 34,517,504,249 (1) Figure is for first three quarters of 2003 only, fourth quarter information still unavailable Source Washington State Department of Revenue TAX TREATMENT OF THE BONDS In the opinion of Foster Pepper & Shefelman PLLC ("Bond Counsel"), interest on the Bonds is not exempt from federal income taxation, and is included in gross income for all federal income tax purposes. APPROVAL OF LEGAL PROCEEDINGS Legal matters incident to the authorization, issuance and sale of the Bonds by the City are subject to the approving legal opinion of Bond Counsel The form of the opinion of bond counsel with respect to the Bonds is attached as Appendix A. The opinion of Bond Counsel is given based on factual representations made to Bond Counsel, and under existing law, as of the date of initial delivery of the Bonds, and Bond Counsel assumes no obligation to revise or supplement its opinion to reflect any facts or circumstances that may thereafter come to its attention, or any changes in law the may thereafter occur. The opinion of Bond Counsel is an expression of its professional judgment on the matters expressly addressed in its opinion and does not constitute a guarantee of result Bond Counsel has reviewed this document only to confirm that the portions of its describing the Bonds and the authority to issue them conform to the Bonds and the applicable laws under which they are issued Certain legal matters will be passed upon for the Underwriter by its counsel, Lukins & Annis, P S , Bellevue, Washington Bond Counsel and underwriter's counsel will be compensated only upon the issuance and sale of the Bonds. LITIGATION There is no action, suit or proceeding known to be pending or threatened, restraining or enjoining the issuance, sale, execution, or delivery of the Bonds or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or sale thereof, or the power of the City to levy and collect the taxes pledged to the payment of the Bonds. 30 RATINGS As noted on the cover page of this Official Statement, Moody's Investors Service ("Moody's"). New York, New York, and Standard & Poor's Ratings Group ("S&P"), a division of McGraw Hill, New York, New York, have assigned their municipal bond ratings of _ and _, respectively, to the Bonds. As of the date of this Official Statement, the underlying ratings on the Bonds are_and AA-by Moody's and S&P, respectively. No application was made to any other rating agency for the purpose of obtaining an additional rating on the Bonds. Each rating reflects only the view of the applicable rating organization and an interpretation of such rating may be obtained only from the rating agency furnishing the same, at the following addresses: Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007, Standard & Poor's Ratings Group, a Division of The McGraw-Hill Companies, 55 Water Street, New York, New York 10041. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by the rating agencies, if, in the judgment of such agencies, circumstances so warrant. Any such revision or withdrawal of either such rating may have an adverse effect on the market price of the Bonds. UNDERWRITING The Bonds are to be purchased by the Underwriter. The Underwriter has agreed, subject to certain conditions, to purchase the Bonds at a price of $ which reflects the principal amount of the Bonds, less an original issue discount of$ , plus an original issue premium of $ , and an underwriter's discount of $ The Bonds will be reoffered at an average price of %. The Bond Purchase Contract provides that the Underwriter will purchase all Bonds if any are purchased The Bond Purchase Contract provides that the Underwriter may offer and sell the Bonds if any are purchased The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the initial offering prices set forth on the cover page hereof, and such initial offering prices may be changed, from time to time, by the Underwriter. ADDITIONAL INFORMATION The City will enter into a contractual commitment to provide certain information on a continuing basis to holders of the Bonds, as described under the heading"INTRODUCTION - Commitment to Provide Continuing Information" herein. The descriptions herein of the Ordinance and other documents are brief summaries of certain provisions thereof. Such summaries do not purport to be complete, and reference is made to such documents and contracts, copies of which are available, upon request and upon payment to the City of a charge for copying, mailing and handling, from the City's Finance Director, City of Kent, 220 Fourth Avenue South, Kent, Washington 98032. 31 0 MISCELLANEOUS All estimates included in this Official Statement,whether or not so stated, are not to be construed as representations that the same will be realized Section headings, table headings and captions are included for convenience only and should not be construed as modifying the text of this Official Statement. All projections and other statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the City and the registered owners of any of the Bonds. The execution and delivery of this Official Statement has been duly authorized by the City. DATED: May_, 2004. CITY OF KENT, WASHINGTON By: Jim White, Mayor 32 FOSTER PEPPER & SHEFELMAN PLLC ATTORNEYS AT LAW Im APPENDIX A: PROPOSED FORM OF OPINION OF BOND COUNSEL City of Kent, Washington 220 Fourth Avenue South Kent, Washington 98032 Re: City of Kent, Washington, $ ,000 Unlimited Tax General Obligation Refunding Bonds,2004 (Taxable) We have served as bond counsel to the City of Kent, Washington (the "City"), in connection with the issuance of the above-referenced bonds (the "Bonds"), and in that capacity have examined such law and such certified proceedings and other documents as we have deemed necessary to render this opinion. As to matters of fact material to this opinion, we have relied upon representations contained in the certified proceedings and other certifications of public officials furnished to us,without undertaking to verify the same by independent investigation The Bonds are issued by the City pursuant to Ordinance No (the "Bond Ordinance") to provide funds with which to pay the cost of advance refunding a portion of the City's outstanding Unlimited Tax General Obligation Refunding Bonds, 1993, under and in accordance with the Constitution and laws of the State. For as long as any of the Bonds are outstanding, the City irrevocably has pledged to levy taxes annually without limitation as to rate or amount on all of the taxable property within the City in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bonds, and the full faith, credit and resources of the City have been pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. We have not been engaged to review and thus express no opinion concerning the completeness or accuracy of any official statement, offering circular or other sales or disclosure material relating to the issuance of the Bonds or otherwise used in connection with the Bonds. A-1 Based upon the foregoing, as of the date of initial delivery of the Bonds to the purchaser thereof and full payment therefor, it is our opinion that under existing law: 1. The City is a duly organized and legally existing code city under the laws of the State of Washington; 2 The Bonds have been duly authorized and executed by the City and are issued in full compliance with the provisions of the Constitution and laws of the State of Washington and the ordinances of the City relating thereto; 3. The Bonds constitute valid and binding general obligations of the City payable from annual ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable property within the City, except only to the extent that enforcement of payment may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the application of equitable principles and the exercise of judicial discretion in appropriate cases;and The City, in the Bond Ordinance, has declared its intention that the interest on the Bonds be includable in gross income for federal tax purposes. We express no opinion regarding any federal tax consequences of receipt of interest on the Bonds. This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention,or any changes in law that may hereafter occur. We bring to your attention the fact that the foregoing opinions are expressions of our professional judgment on the matters expressly addressed and do not constitute guarantees of result. Respectfully submitted, A-2 APPENDIX B: 2003 UNAUDITED GENERAL FUND BUDGET ANALYSIS AND 2002 AUDITED ANNUAL FINANCIAL STATEMENTS GENERALFUND BUDGET ANALYSIS Preliminary As of December 31,2003 2002 2003 2003 Adjustments 2003 2004 Actual Budget YTD raw(Unfav) Est Act Budget REVENUES Taxes: Property 20.457,910 21,704,264 21,620,708 (83,556) 21,620,708 1 22,298,724 Sales Tax 14,768,638 16,522635 14,966,245___ - (1,556,389}-- ---14,866,-246 2- -16,078;93T --' - - To75125split - - - (1,020,559) Utility 7,B81,792 B,1D0,184 8,42D,190 320,DD8 8,420,19D 3 8,088,959 Additional tax due to rate change 940,434 977,687 37,153 977,587 2,341,217 Other 297.933 298.987 303,268 4,280 303.267 311,148 Licenses and permits 1.645,213 1,707,730 1,730,623 22,895 1,730,625 4 1,771,749 Intergovernmental revenue 5.094,763 4,632,294 5,154,484 522,190 5,154.464 4,875,150 Charges for services 2,844,511 2,996,302 3,016,789 2,874 2,993,176 5 2,993,092 Fines and forfertures 1,310,379 1,378,557 1,488,703 110,145 1.488.702 1,522,667 Interest income 888,215 1,D84,050 440,172 (643.877) 44D,173 395,312 Fair Market Value Gain (Loss) (173,548) (85,637) (85,637) (85.637) Miscellaneous revenue 804,398 815,903 1,034,914 218,115 1,034.018 814,924 TOTAL REVENUES 55.820.204 60,180,340 59,068,047 (1,131,801) 59,04B,539 60,472.510 EXPENDITURES Salaries&Benefits 46,147.756 48,594,452 48,644,146 (49,694) 48,644,146 48.597,778 2004 Attrition cuts (660.000) Supplies 2,090,647 2,346,578 1,880,731 465,847 1,88D,731 2,360.437 Services&charges 16,120,968 16,706.196 15,06,338 799,858 15,906,338 17,114,688 Capital outlay 24,502 19,500 16,157 3,343 16,157 94,001) Cost allocation (4,287,692) (4,701,661) (4,641,733) (59,929) (4,641,733) (4,786,587) TOTAL EXPENDITURES 60,096,181 62,965,065 61,805,639 1,159,426 61,805,639 6 62,720.314 REVENUES OVER(UNDER) (4,275,978) (2,784,725) (2,737.592) 27,625 (2,757,100) (2,247,804) TRANSFERS IN FROM(OUT TO): From Capital Improvement Fund 331.000 100,000 (100,000) 1 To Capital Improvement Fund Youth I Teen Programs 499,988 559,595 559,595 559,5g5 5 Police Operating Projects 10,331 (18.689) (19,020) (331) (19.020) City Art$2 per capita (77,558) (74,179) (76,354) (2,175) (76.354) (66,872) Criminal Justice Fund 24,111 24,473 24,473 24,473 24,473 Street Fund 100,000 Other projects 19,729 (11,094) (11,094) (11,094) (6,000) Transfer to Kent Mandan Pool (20,000) (20,000) (20,000) From Fire Equipment 40D,000 200,000 200,DDD 200,000 Transfer from Facilities Fund 300,000 Transfer from Fleet Services Fund 701,D00 450,000 450,000 453,000 Transfer-closed projects I Guaranty fund 270,000 270,000 276,211 6,211 276,211 200,00D TOTAL NET TRANSFERS 2,578,601 1,480,106 1,383,811 (96,295) 1,383,811 811,196 INCREASE(DECREASE) (1,697,377) (1,304,619) (1,353,781) (68,670) (1,373,289) (1,436,60B) BEGINNING FUND BALANCE 7,432,087 6,093,410 5,734,710 (358,700) 5,734.710 4.840,075 ENDING FUND BALANCE Designated for Contingency 6.009,618 6,296,507 6,18D,564 (115,943) 6,180,564 6,272,031 Undesignated (274.908) (1,507,716) (1,799,635) (311.427) (1,819,143) (2,B68,564) TOTAL ENDING BALANCE 5,734.710 4,788,791 4,380,929 (427,37D) 4,361.421 3,403,467 9.5% 7 6% 7 1% 5 4% Original Budget Ending Fund Balance 3,877,035 6.1% Variance from preliminary budget (478,654) *Preliminary,subject to change B-1 2/1712004 00112As GENERAL FUND BUDGET ANALYSIS As of December 31, 2003 2002 2003 2003 2003 2004 Actual Budget YTD Est Act Budget Beginning Fund Balance 7,432,537 6,093,410 5,734,710 5,734,710 4,840,075 Revenues Taxes Property 20,457,910 21,704,264 21,626,394 21,626,394 22,298,724 Sales Tax 14,768,638 16,522,635 14,966,245 14,966,246 16,078,938 To 75125 split (1,020,559) Utility 7,881,792 8,100,184 8,420,190 8,420,190 8,088,959 Additional tax due to rate change 940,434 977,587 977,587 2,341,217 Other 297,933 298,987 299,768 299,767 311,148 Licenses and permits 1,645,213 1,707,730 1,730,573 1,730,575 1,771,749 Intergovernmental revenue 5,094,763 4,632,294 5,154,484 5,154,484 4,875,150 Charges for services 2,844,511 2,995,302 2,998,964 2,998,966 2,993,092 Fines and forfeitures 1,310,379 1,378,557 1,488,703 1,488,702 1,522,857 Interest income 888,215 1,084,050 440,172 440,173 396,312 Fair Market Value Gam (Loss) (173,548) (85,637) (85,637) Miscellaneous revenue 804,398 815,903 1,023,144 1,023,145 814,924 Total Revenues 55,820,204 60,180,340 59,040,588 59,040,592 60,472,511 Transfers In 2,636,099 1,604,068 1,460,825 1,460,825 884,068 TOTALRESOURCES 65,888,839 67,877,818 66,236,123 66,236,127 66,196,654 Operating Expenditures Salaries&Benefits 46,147,756 48,594,452 48,629,146 48,629,146 48,597,775 2004 Attrition cuts (650,000) Supplies 2,090,647 2,346,578 1,880,731 1,880,731 2,350,437 Services&charges 16,120,968 16,706,196 15,891,851 15,891,851 17,114,688 Capital outlay 24,502 19,500 16,157 16,157 94,000 Cost allocation (4,287,692) (4,701,661) (4,641,733) (4,641,733) (4,786,587) Total Operating Expenditures 60.096,181 62,965,065 61,776,152 61,776,152 62,720,313 Transfers Out 57,948 123,962 77,014 77,014 72,872 TOTAL EXPENDITURES&USES 60,154,129 63,089,027 61,853,166 61,853,166 62,793,185 Increase(Decrease) (1,697,827) (1,304,619) (1,351,753) (1,351,749) (1,436,606) Ending Fund Balance Designated for Contingency 6,003,823 6,284,110 6,169,914 6,169,914 6,264,744 Undesignated (269,113) (1,495,319) (1,786,957) (1,786,953) (2,861,275) Total Ending Balance 5,734,710 4,788,791 4,382,957 4,382,961 3,4D3,469 9 5% 7 6% 7 1% 5 4% Original Budget Ending Fund Balance 3,877,035 6.1% Variance from preliminary budget (457,114) B-2 • x0 Washington State Auditor FAX 0)9 -037046 Legislative Building PO Box 40021 Brian Sonntag TDD Relay 1.800-833-6388 Olympia,Washington 98504-0021 httpJ/www.sao.wa gov --____�---- Septernber9,2003 Mayor and City Council,City of Kent We have audited the accompanying basic financial statements of the City of Kent,King County,Washington,as of and for the year ended December 31, 2002, as listed in the table of contents. These financial statements are the responsibility of the City's management Our responsibility is to express an opinion on these financial statements based on our audit We conducted our financial audit in accordance with governmental auditing standards generally accepted in the United States of America, issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit Includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was performed pursuant tol the Revised Code of Washington 43.09 260, under which a full report on the results of this audit will be issued. This repoft may include findings and recommendations on compliance matters, internal control procedures, and questionable costs Pr contingencies that would not be material in relation to the basic financial statements taken as a whole. In our opinion, the basic financial statements referred to above present fairly,in all material respects,the financial position of the City of Kent, King County,Washington, as of December 31,2002, and the changes in financial position and cash flows, where applicable, thereof,for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 1 and other notes to the financial statements,during the year ended December 31, 2002,the City has implemented Governmental Accounting Standard's Board Statement 34, Basic Financial Statements— and Management's Discussion and Analysis for State and Local Governments, Statement 37, Basic Financial Statements—and Management's Discussion and Analysts for State and Local Governments—Omnibus, and Statement 38, Certain Financial Statement Note Disclosures. In accordance with Government Auditing Standards in the United States of America, we will also issue our report on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws,regulations,contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The management's discussion and analysis information on pages 13 through 25, and the schedule of funding progress on page 95 are not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The combining, individual fund,and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of the City of Kent, King County, Washington. Such information has been subjected to auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The other data included in this report, designated as the statistical section in the table of contents,has not been audited by us and,accordingly,we express no opinion on such data. B-3 i Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying introductory section, pages 1 through 10; combining and individual nonmajor fund financial statements,pages 98 through 102; and statistical tables pages 138 thru 156; are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements taken as a whole. The introductory section and the statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly,we express no opinion on them. -- -S—ince-r-elF, -- ----- - ---- - - -- - - BRIAN SONNTAG,CGFM STATE AUDITOR 12 B-4 INAW r%�, N Ir W A S H I N G T 0 N B-s 27 r .City of Kent STATEMENT OF NET ASSETS December 31,2002 Primary Government Governmental Business Type Activities Activities Total ASSETS Cash and equity in pooled investments(Note 3) $ 16,502,601 $ 320,875 $ 16,823,476 Cash with fiscal agent/trustee 553,185 28,981 582,166 Investments, at fair value(Note 3) 26,218,696 22,612,475 4B,831,171 Receivables(net of allowances)(Note 4) 28,805,841 3,687,349 32,493,190 Due from other funds(Note 40 286,525 286,525 lnterfund loans receivable(Note 4e) 450,000 2,767,738 3,217,738 Due from other governments 4,037 4,037 Inventory,at cost(Note 5) 131,522 334.841 466,363 Prepaid items 256.327 11,246 267,573 Property,plant,and equipment(net of - accumulated depreciation)(Note 6) 264,374,031 189,195,997 453,570,028 TOTAL ASSETS 337,582,765 218,959.502 556,542,267 LIABILITIES: Current Liabilities: Vouchers payable 2,978,639 1,029,636 4,008,275 Matured bondshnterest payable 553.185 28,981 582,166 Accounts/payroll payable 3,738,671 840,250 4,578,921 Incurred but not reported claims payab a 2,688,662 2,688,662 Due to other funds(Note 40 67,924 218,601 286,525 lnterfund loans payable(Note 4e) 2,767,738 450,000 3,217,738 Due to other governments 9,475 9,475 Accrued interest payable 629,548 232,418 861,966 Deposits and deferred revenues 20.093,195 171,192 20,264,387 Non-current liabilities - Due within one year Contracts, leases,notes,assessments - and compensated absences(Note 8) 2,959,840 146,118 3,105,958 General obligation bonds payable(Note 8) 5,640,000 720,000 6,360,000 Special assessment bonds payable 2,405,000 2,405.000 Revenue bonds payable,current portion (net - of unamortized discount)(Note 8) 805,000 805,000 Due in more than one year - Contracts, leases,notes,assessments - and compensated absences(Note 8) 14,209,721 16,458,740 30,668,461 General obligation bonds payable, non current portion(net of - unamortized discount,premiums,and deferred)(Note 8) 62,123,170 9,407,910 71,531,080 Special assessment bonds payable 13,760,000 13,760,000 Revenue bonds payable, noncurrent portion (net - of unamortized discount)(Note 8) 4,339,323 4,339,323 TOTAL LIABILITIES 134,624,768 34,848,169 169,472,937 NET ASSETS Invested in capital assets 181,746,963 165,273,239 347,020,202 Restricted for. - Capital projects - Debt service 2,572,217 437,863 3,010,080 Community development projects - Other purposes - Unrestricted(deficit) 18,638,817 18,400,231 37,039,048 TOTAL NET ASSETS $ 202,957,997 $ 184,111,333 $ 387,069,330 See accompanying notes to financial statements B-6 28 Component Units Kent Kent Downtown Economic Public Market Development Development Corporation Authority $ 3,640 $ 972 25,000 30,333 938 2,090 1,204,114 29,578 •1,237,509 I 2,105 13,744 I 651,159 - 667,008 664.903 29,578 (94,402) $ 29,578 $ 570,501 B-7 29 City of Kent STATEMENT OF ACTIVITIES For the Year Ended December 31,2002 Program Revenues Charges for Operating Grants Capital GrOM FUNCTIONS/PROGRAMS Expenses Services and Contributions and Contributio Primary Government: Govemmental Activities: General Government $ 5,524,141 $ 247,074 $ $ 7,440 Judicial 1,734,472 1,617,997 Public Safety 39,596,544 651,939 4,852,376 Community Development 3,712,593 1,665,498 49,936 Public Works 6,153,710 3.290,472 456,285 21,870,657 Leisure services 7,906,075 1,243,939 35,921 1,236,143 Health and human services 4,557,522 726,551 668,979 1,766 Library 82,373 Interest on long-term debt 4,791,531 Total governmental activities 74,058,961 9,443,470 6,066,497 23,116,006 Business-type Activities: Water 7,560,110 6,978,146 16,479 5,213,339 Sewerage 20,726,554 22,043,249 1,711,482 Golf Complex 2,895,924 2,808,866 - Total business type achvibes 31,182,588 31,830,261 16,479 6,924,821 Total Primary Government $ 105,241,549 $ 41,273,731 $ 6,082,976 $ 30,040,827 Component Units: Kent Economic Development Corporation $ 6,904 $ 4,832 $ $ Kent Downtown Public Market Development Authority 77,925 36,000 Total Component Units $ 84,829 $ 40,832 $ $ General revenues: Taxes: Propertytaxes levied for general purpose Property taxes levied for debt service Sales taxes Utility taxes Othertaxes Grants and contributions not restricted to specific programs Investment earnings Miscellaneous Transfers Total general revenues,special Items,and transfers Change in net assets Net assets-beginning Net assets-ending See accompanying rotes to financial statements B-8 30 Net(Expenses)Revenue and Changes in Net Assets Component Units Kent Downtown Primary Government Kent Economic Public Market Governmental Business-Type Development Development Activities Activities Total Corporation Authority $ (5,269,627) $ (5,269,627) (116,475) (116,475) (34,092,229) (34,092.229) (1,997,159) (1,997,159) 19,463,704 19.463,704 (5,387,072) (5,387,072) (3,160,226) (3,160,226) (82,373) (82,373) (4,791,531) (4,791,531) (35,432,988) (35,432,988) $ 4,647,854 4,647,854 3,028,177 3,028,177 (87,058) (87,058) 7,588,973 7,588,973__ $ (35,432,988)$ 7,588.973 $ (27,644,015) $ (2,072) $ (41,925) $ (2,072) $ (41,925) 20.775,828 20,775,828 1,770,903 1,770,903 21,529,816 1 ,529,522 816 10,529,816 10,529,816 3,698,850 3,698,850 1,106,829 1,106,829 2,583,081 702,445 3,285,526 493 311 309,355 309,355 511,198 (556,198) (45,000) 45,000 - 62,392,382 146,247 62,538,629 493 45,311 26,959,394 7,735,220 34,694,614 (1,579) 3,386 175,998,603 176,376,113 352,374,716 31,157 567,115 $ 202,957,997 $ 184,111,333 $ 387,069,330 $ 29,578 $ 570,501 B-9 31 City of Kent 'GOVERNMENTAL FUNDS BALANCE SHEET December 31,2002 General Capital Special Street Fund Improvement Assessments Projects ASSETS Cash and equity in pooled investments $ 6,981,248 $ 454,732 $ 817,402 $ 301,791 Cash with fiscal agent 552,166 Investments,at fair value 3,784 1,800,415 11,500,355 Receivables(net of allowances for estimated uncollectables): Taxes 2,812,871 888,174 202 Accounts 449,802 161 4,181 2,175,099 Special assessments Current 1,597,418 Delinquent 261,275 Deferred 16,564,098 Penalty and Interest 1,302,817 Accrued interest 147,456 3,073 15,365 Due from other funds 67,924 218,601 Interfund loans receivable Due from other governments Prepaid items 17,720 TOTAL ASSETS $ 10,476,721 $ 1,346,851 $ 22,903,047 $ 14,211,211 LIABILITIES AND FUND BALANCE LIABILITIES Vouchers payable $ 1,146.126 $ 3,631 $ $ 1,060,516 Matured bondsCnterest payable 552.166 Accounts/payroll payable 2,662,970 10,313 49,268 233.508 Due to other funds 3,784 6,803 2,296 Due to other governments 8,801 Interfund loans payable Deposits and deferred revenue 924,114 19,726,375 Total Liabilities 4,742,011 17,728 20,334,612 1.296,320 FUND BALANCE Reserved for. Prepaid items 17,720 Interfund loans Bond retirement Assessment debt guaranty 1,843,831 Unreserved,but designated for contingencies 5,716,990 Unreserved,reported in: Special revenue funds 1,329,123 Debt service funds 724,604 Capital projects funds 12,914,891 Total Fund Balance 5,734,710 1,329,123 2,568,435 12,914,891 TOTAL LIABILITIES AND FUND BALANCE $ 10,476,721 $ 1,346,851 $ 22,903,047 $ 14.211,211 See accompanying notes to financial statements i B-10 32 Other Total Other Governmental Governmental Reconciliation of total Governmental Fund Balances to Net Projects Funds Funds Assets of Governmental Activities as of December 31,2002 Fund Balance-Total Governmental Funds(this page) $ 33,988,761 $ 417,773 $ 6,820,680 $ 15,793,626 1,019 553,185 Capital assets used in governmental activities are not financial 3,863,113 2,251,314 19,418,981 resources and,therefore,are not reported in the funds 254,199,111 Internal service funds are used by management to charge the 679,917 4,381,164 costs of fleet management,central services,management 806,451 3,435,394 information systems,facAty rental and maintenance,and insurance costs to individual funds. The assets and liabilities 1,597,418 are Included in governmental activities in the statement of net 261,275 assets 15,760,612 16,664,098 1,302,817 Interest accrued on governmental long term debt,but not due 8,384 174,278 and payable in the current period,and not reported in the 286,625 governmental funds. (629,548) 4,037 4,037 Deferred revenue reported for property taxes that are current 755 18,475 and prior year tax levies that were not collected and available to pay current year liabilities applicable to beginning net assets $ 4,280,886 $ 10,572,567 $ 63,791,273 and current year revenues. 660,965 Amortized issuance discounts,premiums,and deferred amounts on refunded debt for governmental bonds. 751,830 $ 54,825 $ 243,010 $ 2,508,108 Lang-term liabilities,including bonds payable,are not due and 1,019 553,185 payable In the current period and therefore are not reported In 236,025 3,191,084 the governmental funds_ (101,773,734) 3,113 46,727 62,723 40 634 9,475 Net Assets-ending of Governmental Activities(page 28) $ 202,957,997 1,200,000 1,567,738 2,767,738 59,710 20,710,199 1,257.978 2,153,863 29,802,512 755 18,475 3,782 3,782 1,843,831 5,716,990 3,630,522 4,959,645 724,604 3,022,908 4,783,635 20,721,434 3,022,908 8.418,694 33,988,761 $ 4,280,886 $ 10,572,557 $ 63,791,273 See accompanying notes to financial statements B-11 33 City of Kent GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES For the Year Ended December 31,2002 General Capital Special Street Fund Improvement Assessments Projects REVENUES Taxes: Property $ 20,457,910 $ $ $ Sales and use 14,768,638 4,758,114 Utility 7,881,791 Lodging Gambling and leasehold 297,933 3,273,527 Licenses and permits: Building permits 942,789 Other licenses and permits 702,425 Intergovernmental revenue: Fire District ill!37 Contract 3,936,036 Other grants and shared revenue 1,158,727 48,875 17,964,446 Charges for services: Park and recreation fees 1,151,446 Other fees and charges 1,693,065 3,961 Fines and forfeitures 1,310,379 Miscellaneous revenue: Special assessments 2,384,925 109,113 Interest income 888,216 59,465 1,276,950 147,008 Net increase in fair value of investments (173,548) 4,040 475 Other miscellaneous revenue 785,987 1,507,869 TOTAL REVENUES 55,801,794 8,139,981 3,665,915 19,732,872 EXPENDITURES Current. General government 5,173,611 173,780 Judicial 1,716,299 Public safety 34,715,127 3,632 Community development 3,464,833 95,965 Public works 4,801,548 Leisure services 6,555,270 180 Health and human services 3,644,993 1,618 Debt service, Principal 2,425,000 Interest 1,026,332 Issuance costs Capital outlay 24,502 27,169 23,070,642 TOTAL EXPENDITURES 60,0 9 66,183 002,344 3,451,332 23,070,642 DEFICIENCY OF REVENUES OVER EXPENDITURES (4,294,389) 7,837,637 214,583 (3,337,770) OTHER FINANCING SOURCES(USES) Proceeds from general obligation bonds 5,900,000 Sale of capital assets 18,450 10,000 Prior period correction (57,737) Operating transfers in 2,636,099 2,373,288 Operating transfers out (57,498) (9,244,291) (270,000) (1,118,340) Transfers to component units (45,000) TOTAL OTHER FINANCING SOURCES(USES) 2,539,314 (9,289,291) (270,000) 7,164,948 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES (1,755,076) (1,451,654) (65,417) 3,827,178 FUND BALANCE,January 1 7,489,785 2,780,777 2,623,852 9,087,713 FUND BALANCE,December 31 $ 5,734,710 $ 1,329,123 $ 2,568,435 $ 12,914,891 See accompanying notes to financial statements B-12 34 Other Total Reconciliation of Statement of Revenues,Expenditures,and Other Governmental Governmental Changes In Fund Balances of Governmental Funds to the Projects Funds Funds Statement of Activities for the Year Ended December 31,2002 Amounts reported forgovemmental activities In the statement of activities(Page )are different because: $ $ 1,880,502 22,338,412 1,579,770 21,106.522 Net change In fund balances-total governmental funds(this page$ 3,237,003 2,648,025 10,529,816 127,390 127,390 3,571,460 Governmental funds report capital outlays as expenditures In the statement of activities,the cost of those assets is allocated 942,789 over their estimated lives and reported as depreciation expense. 702,426 Capital outlays 33,354,153 Depreciation expense (3,482,965) 3,936,036 5,440,414 24,612,462 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 1,151,446 Additional accruals, property tax 208,319 14,863 1,711,889 195,748 1,506,127 Long-term debt issuances provides current financial resources to governmental funds,while the repayment of the principal of long- 2,494,038 term debt consumes the current financial resources of 77,126 90,336 2,539,t01 governmental funds,. Neither transaction has any effect on net (4,107) (173,140) assets. Also governmental funds report the effect of issuance 382,174 21676,030 costs,premiums,discounts,and similar items when debt is first issued,whereas these amounts are deferred and amortized 77,126 12,355,1 t5 99,772,803 in the statement of activities Bond proceeds (13,685,000) Debt principal payments 7,388,000 Current year amortization (143,660) 103,591 ,.716 1 ,29971699 Some expenses reported in the statement of activities do not 3,403,540 38,122,299 require the use of current financial resources and,therefore,are 78,287 3,639,085 not reported as expenditures in governmental funds. 1,073,096 5,874,644 Compensensated absences (278,3B3) 6,556,450 Interest expense accnral 18,380 730,361 4,376,972 Internal service funds are used by management to charge the 4,963,000 7,388,000 costs of fleet management,central services,management 3,556,874 4,683,205 83,045 83,045 825,469 9,406,371 33,354,153 information systems,facility rental and maintenance,and insurance costs to individual funds. The net revenue of certain 908,514 23,315,120 111,144,135 activities of internal service funds is reported with governmental activities. (831,388) (10,960,005) (11,371,332) Revenue 343.547 7,785,000 13,685,000 Change in net assets of governmental activities(page 31) $ 26,959,394 28,450 (57,737) 1,369,821 16,417,162 22,796,370 (6,484,838) (4,623,781) (21,798,748) (45,000) 2,669,983 11,793,381 14,608,335 1,838,595 833,376 3,237,003 1,184,313 7,585,318 30,751,758 $ 3,022,908 $ 8,418,694 $ 33,988,761 See accompanying notes to financial statements B-13 35 City of Kent i 4GENERALFUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2002 2002 Budget Original Final Actual Variance REVENUES Taxes: Property $ 20,632,135 $ 20,632,135 $ 20,457,910 $ (174,225) Sales and use 16,022,813 16,022,813 14,768,638 (1,254,175) utility 9,313,990 9,313,990 7,881,791 (1,432,199) Gambling and leasehold 406,909 406,909 297,934 (108,975) Licenses and permits: Building permits 1,426,354 1,426,354 942,789 (483,565) Other licenses and permits 577,442 577,442 702,425 124,983 Intergovernmental revenue: Fire District#37 Contract 2,955,411 2,942,867 3,086,248 143,381 Other grants and shared revenue 1,973,584 2,020,311 2,008,515 (11,796) Charges for services: Park and recreation fees 1,121,073 1,121,073 1,151,446 30,373 Other fees and charges 2,392,244 2,390,959 1,693,065 (697,894) Fines and forfeitures 1,337,771 1,378,436 1,310.379 (68,057) Miscellaneous revenue: Interest income 1,082,292 1,082,292 888,216 (194,076) Net Increase(decrease)In fair value of investments (173,548) (178,548) Other miscellaneous revenue 582,691 741,676 785,986 44,310 TOTAL REVENUES 59,824,709 60,057,257 55,801,794 (4,255,463) EXPENDITURES Current: General government 5,591,916 5,417,896 5,173,611 244,285 Judicial 1,710,025 1,789,979 1,716,299 73,680 Public safety 37,633,051 36,666,474 34,715,127 1,951,347 Community development 3,847,027 3,734.752 3,464,833 269,919 Public works 5,314,663 4,929.174 4,801,548 127,626 Leisure services 7,140,014 6,939,667 6,555,270 384,397 Health and human services 3,320,775 3,570,224 3,644,993 (74,769) Capital outlay 24,000 24,000 24,502 (502) TOTAL EXPENDITURES 647581,470 63,072,166 60.096,183 2,975,983 DEFICIENCY OF REVENUES OVER EXPENDITURES (4,756,761) (3,014,909) (4,294,389) (1,279,480) OTHER FINANCING SOURCES(USES) Proceeds from fixed asset sales 18,450 18,450 Prior period correction (57.737) (57,737) Transfers In 2,183,733 2,696,783 2,636,099 (60,684) Transfers out (97,392) (84,992) (57,498) 27,494 TOTAL OTHER FINANCING SOURCES(USES) 2,086,341 2,611,791 2,539,314 (72,477) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES (2,670,420) (403,118) (1,755,075) (1,351,957) FUND BALANCE,January 1 8,091,435 7,495,955 7,489,785 (6,170) FUND BALANCE,December 31 $ 5,421,015 $ 7,092,837 $ 5,734,710 $ (1,358,127) See accompanying notes to financial statements B-)4 36 / A S H I N G T N B-is 37 City of Kent PROBRIETARY FUNDS STATEMENT OF NET ASSETS December 31,2002 With Comparative Totals for December 31,2001 Business-type Activities-Enterprise Funds Water Water Sewerage Sewerage 2002 2001 2002 2001 ASSETS CURRENT ASSETS Cash and equity in pooled Investments $ 112,719 $ 423,295 $ 143,549 $ 943,635 Cash with fiscal agent Investments,at fair value 11,833,705 14,635,898 9.323,719 7,356,542 Receivables(net of allowances for estimated uncollectables): Accounts 781,749 743,299 2,755,367 7,537,118 Notes 241 241 Accrued interest 12,829 59,754 82,362 102,070 Due from other funds Interfund loan receivable 2,767,738 7,100.938 Inventory,at cost 225,804 227,145 26,815 19,961 Prepaid expenses 10,783 16,068 18 7,200 Total Current Assets 15,745,568 23,206,648 12,331,830 15,966,526 RESTRICTED ASSETS For bond redemption: Cash and equity in pooled investments 13,675 123,932 12,348 148,666 Investments,at fair value 235,000 110,000 275,000 65,000 For bond reserve: Cash and equity in pooled investments ' 14,430 16,666 10,977 12,923 Investments,at fair value 200,000 665,000 695,000 725,000 Total Restricted Assets 463,105 115,598 9 33,325 951,579 PROPERTY,PLANT AND EQUIPMENT Land 1,166,451 1,166,451 3,185,922 3,185,922 Buildings 1,909,293 1,912,857 75,522 77,182 Site improvements 62,958,147 58,084,194 91,696,710 90,377,938 Equipment 1,716,689 1,969,713 331,568 428,392 Less accumulated depreciation (19,668,382) (18,540,117) (25,149,386) (23,117,692) Construction in progress 25,163,721 11,261,605 35,989,567 29,428,805 Total Property,Plant and Equipment 73,245,919 55,854,763 106,129,903 100,380,547 TOTAL ASSETS $ 89,454,592 $ 799 976,949 $ 119,455,058 $ 117,298,652 See accompanying notes to financial statements B-16 38 Business-type Activities-Enterprise Funds Governmental Activities Golf Golf Internal Internal Complex Complex Totals Totals Service Funds Service Funds 2002 2001 2002 2001 2002 2001 $ 13,177 $ 13,B15 $ 269,445 $ 1,380,745 $ 708,975 $ 630,619 28,981 28,981 28,981 28,981 50,051 110,283 21,207,475 22,102,723 6,799,715 8,660,672 54,801 103,392 3,591,917 8,383,809 1,043,133 556,695 241 241 15,702 16,702 95,191 161,834 30,562 43,485 2,767,738 7,100,938 450,000 460,000 82,222 56,371 334,841 303,477 127,906 132,291 445 14,640 11,246 37,908 237,852 123,049 229,677 327,482 28,307,075 39,500,656 9,413,845 10,622,413 26,023 272,588 510,000 175,000 407 29,589 8 5,000 1,390,000 1,456,430 1,867,177 5,342,508 5,342,508 9,694,881 9,694,881 2,587,505 2,602,600 4,572,320 4,592,639 973,332 796,737 4,540,222 4,294,490 159,195,079 162,756,622 243,164 245,228 489,131 624,077 2,537,388 3,022,182 17,275,281 17,512,682 (3,272,759) (3,096,246) (48,090,527) (44,754,055) (11,377,953) (10,924.516) 133,568 356,208 61,286,856 41,046,618 3,061,096 2,573,426 9,820,175 10.123,637 189,195,997 166,358,887 10,174,920 10,203,557 $ 10,049,852 $ 10,451,119 $ 218,959,502 $ 207,726,720 $ 19,568,T65 $ 20,825,970 B-17 39 City of Kent PROPRIETARY FUNDS 97A rEMENT OF NET ASSETS December 31,2002 With Comparative Totals for December 31,2001 Business-type Activities-Enterprise Funds Water Water Sewerage Sewerage 20D2 2001 2002 2001 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Vouchers payable $ 303,513 $ 254,997 $ 681,868 $ 550,535 Matured bondsfinterest payable Accounts/payroll payable 255,129 238,491 483,002 319,757 Incurred but not reported claims payable Due to other funds 218,601 218,601 Interfund loans payable Accrued Interest payable General obligation bonds payable-current portion 325,000 310,000 Notes payable,current portion 21,672 21,672 84,252 81,215 Deposits and deferred revenue 40,590 43,092 42,042 46,943 Total Current Liabilities 620,904 558,252 1,834,765 1,527,051 CURRENT LIABILITIES PAYABLE FROM RESTRICTED ASSETS For band redemption: Accrued interest payable 112,541 31,074 101,026 108,426 Revenue bonds payable,current portion 195,000 1,140,000 610,000 585,000 Total Current Liabilities Payable from Restricted Assets 307,541 1,171,074 711,026 693,426 LONG-TERM LIABILITIES Compensated absences payable 31,223 24,880 47,077 31,461 Notes payable 34,032,095 9,586,667 1,281,587 1,365,839 Less: deferred costs (18,967,080) General obligation bonds payable 6,340,000 6,665,000 Plus: unamorlized premium Less: unamortized deferred refunding Less: unamortized discount (92,226) Revenue bonds payable 205,000 400,000 4,240,000 4,850,000 Less unamortized deferred refunding (12,551) (43,6D0) Less unamortized discount (5,232) (7,962) (87,894) (194,860) Total Long-Term Liabilities 15,283,455 9,960,005 11,728,544 12,717,440 Total Liabilities 16,211,900 11,689,331 14,274,335 14,937,917 NET ASSETS Invested in capital assets,net of related debt 65.634,024 54,257,9D6 93,429,184 86,718,353 Restricted for debt service 155,564 (255,476) 282,299 268,153 Unrestricted 7,453,104 14,285,188 11,469,240 15,384,229 TOTAL NET ASSETS $ 73,242,692 $ 68,287,618 $ i05,180,723 $ 102,360,73E See accompanying notes to financial statements B-18 40 Business-type Activities-Enterprise Funds Governmental Activities Golf Golf Internal Internal Complex complex Totals Totals Service Funds Service Funds 2002 2001 20D2 2D01 2002 2001 $ 44,255 $ 83,674 $ 1,029,636 $ 889,206 $ 470,531 $ 507,248 28,981 28,981 28,981 28,981 102,119 77,182 840,250 635,430 547,587 656,488 2,688,662 2,839,675 218,601 218,601 5,201 10,284 450,000 460,000 450,000 460,000 18,851 20,872 18,851 20,872 395,000 370,000 720,000 680,000 40,194 33,600 146,118 136,487 88,560 73,884 171,192 163,919 43,961 32,063 1,167,960 1,148,193 3,623,629 3,233,496 3,755,942 4,045,758 213,567 139.500 805,000 1,725,000 1,018,567 1,864,500 19,024 15,188 97,324 71,529 75,827 59,265 14,814 55,007 35,328,496 11,007,533 (1 , ,00) 9 3,390,000 3,785,000 ,730730,000 10,450,000 36,734 41,374 36,734 41,374 (224,193) (273,642) (224.193) (273,642) (42,405) (47,761) (134,631) (47,761) 4,445,000 5,250,000 (12,551) (43,600) (93,126) (202,822) 3,193,974 3,575,166 30,205,973 26,252,611 75,827 59,265 4,361,934 4,723,359 34,848,169 31,350,607 3,831,769 4,105,023 6,210,031 6,160,059 165,273,239 147,136,318 10,174,920 5,497,176 437,863 2,677 (522,113) (432,299) 18.400,231 29,237,118 5,582,076 11,223,772 $ 5,667,918 $ 5,727,760 $ 184,111,333 $ 176,376,113 $ 15,756,996 $ 16,720,947 B-19 41 City of Kent 'OROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET ASSETS For the Year Ended December 31,2002 With Comparative Totals for Year Ended December 31,2001 Business-type Activities-Enterprise Funds Water Water Sewerage Sewerage 2002 2001 2002 2001 OPERATING REVENUES Sales $ 6,873,455 $ 6,707,356 $ $ Charges for services 99,855 105,825 22,040,389 20,180,963 Contributions Rental and lease income Other operating revenue 4,836 1,919 2,860 1,283 TOTAL OPERATING REVENUES 6,978,146 6,815,100 22,043,249 20,182,346 OPERATING EXPENSES Salaries and wages 1,483,755 1,332,966 1,764,496 1,608,668 Benefits 413,081 393,087 486,252 463,341 Supplies 411,683 418,643 133,942 128,537 Services and charges - 3,574,105 3,296,467 15,447,974 14,164,715 Depreciation 1,319,582 1.356,664 2,091,280 2,003,478 TOTAL OPERATING EXPENSES 7,202,206 6,797,827 19,923,944 18,368,739 OPERATING INCOME (224,060) 17,273 2,119,305 1,813,607 NON-OPERATING REVENUES(EXPENSES) Interest income 523,532 1,091,725 368,187 891,538 Net increase(decrease)in fair value of investme s (8,628) 120,630 (182,862) 179,848 Miscellaneous non-operating revenues 16,479 22,485 17,968 Miscellaneous non-operating expense Prior period adjustment (126,049) 153,090 (43,294) Interest expense (231,855) (197,257) (759,316) (804,252) TOTAL NON-OPERATING REVENUES(EXPENSES) 173,479 1,190,673 (617 8585) 234,402 INCOME(LOSS)BEFORE CONTRIBUTIONS AND TRANSFERS (50,581) 1,207,946 1,502,020 2,098,009 Capital contributions 5,213,339 1,029,768 1,711,482 8,753,895 Transfers in Transfers out (207,684) (298,905) (393,514) (546,370) INCREASE(DECREASE)IN NET ASSETS 4,955,074 1,938,809 2,819,988 10,305,534 NET ASSETS,January 1 68,287,618 66,348,809 102,360,735 92,055,201 NET ASSETS,December 31 $ 73,242,692 $ 66,267,618 $ 1D5,180,723 $ 102,360,735 See accompanying notes to financial statements i B-20 42 Business-type Activities-Enterprise Funds Governmental Activities Golf Golf Internal Internal Complex Complex Totals Totals Service Funds Service Funds 2002 2001 2002 2001 2002 2001 $ 391,611 $ 15B,684 " $ 7.265,066 $ 6,866,040 $ 416,131 $ 652,456 2,133,675 2,028,760 24,273,919 22,315,548 10,151,700 10,051,678 9.340,741 8,785,238 281,912 318,559 281,912 318,559 1,668 27,526 9,364 30,828 13,059 11,981• 2,808,866 2,533,529 31,830,261 29,530,975 19,921,631 19,501,353 741,502 694,963 3,989,783 3,536,597 3,553,119 3,429,368 192,295. 183,404 • 1,091,628 1,039,832 931,723 942,440 433,572 254,221 979.197 801,401 1,382,723 1,422,298 880,829 737,152 " 19,902,908 18,198,334 13,206,795 12,818,304 307,044 357,610 '" 3,717,906 3,717,752 1,303,882 1,405,895 2,555,242 2,227,350 29,681,392 27,393,916 20,378,242 20,018,305 263,624 306,179 2,148,869 2,137,059 (456.611) (516,952) 2,448 7,994 894,167 1,991,257 249,866 457,811 (232) (428) ( 1,722) 300,050 (32,746) 37,285 6,479 39.753 40,620 185,050 (87,299) (38,463) 100,000 ( 07,806) 253,090 (251,985) (7,217,960) (302,2191 (340,490) (1,293,390) (1,341,999) (338,466) (232,924) (782,272) 1,242,151 (81,544) (6,537.804) (84,842) 73,255 1,366,597 3,379,210 (538,155) (7,054,756) 252,686 6,924,821 10,036,349 15,628 1,673,500 45,000 45,000 1,265,126 369,731 (601,198) (845,275) (1,706,550) (696,617) (39,842) 325,941 7,735,220 12,570,284 (963,951) (5,708.142) 5,727,760 5,401,819 176,376,113 163,805,829 16,720,947 22,429,089 $ 56�87918 $ 5,727,760 $ 184,111,333 $ 176,376,113 $ 15,756,996 $ 16,720,947 B-21 43 City of Kent PROPRIETARY FUNDS ' r STATEMENT OF CASH FLOWS For the Year Ended December 31,2002 With Comparative Totals for Year Ended December 31,2001 Business-type Activities-Enterprise Funds Water Water Sewerage Sewer 2002 2001 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customer; $ 6,932,359 $ 6,922,976 $ 26,817,241 $ 15,318,831 Cash received from other funds for services Cash payments to employees (1,877,773) (1,715,836) (2,205,154) (2,049,485) Cash payments to suppliers (3,926,729) (3,977,207) (15,316,98B) (13,914,440) Other cash received 4,836 1,919 2,860 1,3B3 Net cash provided by operating activities 1,132,693 1.231,852 9,297,959 (644,211) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan Issued for norlcapitat purposes Interfund loan payment for noncapital purposes Operating grants/non-operating revenue received 16,479 175,575 17,268 Interest paid on Interfund loan Prior period adjustments Transfers out (298,905) (546,370) Net cash provided by(used for)noncapital financing 16,479 (123,330) (529,102) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from general obligation refunding bonds Proceeds from intergovernmental loan 5,500,000 9,500,000 Proceeds from lease purchase agreements Proceeds from fixed asset removal 125,935 45,295 Net assets retired under$5,000 capitalization limit (126,049) (43,294) Principal repayment on interfund loan 4,333,200 999,062 Transfer of plant to Governmental Fixed Assets Acquisition and construction of capital assets (18,836,733) (8,997,946) (7,885,932) (13,991, Interfund loan for capital outlays (3,900,000) Defease refunded bonds Principal paid on bonds and equipment contracts (1,161,672) (1,171,672) (976.215) (938,318) Interest paid on bonds and equipment contracts (116,609) (121,715) (751,976) (796,492) Transfers in Transfers out (207,684) (213,930) (393,514) (897,734) Capital contributed by subdividers,capital grants,local impr.districts 5,213.339 1,029,768 1,711,481 9,651,629 Net cash(used for)capital&related financing (5,276,273) (2,876,433) (8,294,155) (6,972,123) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investment securities (20,229,979) (57,001,887) (36,885,436) (49,906,295) Proceeds from sale and maturities of investments 23,363,544 57,875,395 34,555,397 58,1CZ640 Interest and dividends on investments 570,467 1,209,924 387,895 918,628 Net cash provided by(used for)investing activities 3,704,032 2,083,432 (1,942,144) 9,114,973 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (423,069) 315,521 (938,340) 969,637 CASH AND EQUITY IN POOLED INVESTMENTS,January 1 563,893 248,372 1,105,214 135,677 CASH AND EQUITY IN POOLED INVESTMENTS,December 31 $ 140,824 $ 563,893 $ 166,874 $ 1,105,214 CASH AND EQUITY IN POOLED INVESTMENTS AT DECEM13ER 31 CONSISTS OF: Current Assets: Cash and equity in pooled investments $ 112,719 $ 423,295 $ 143,549 $ 943,635 Restricted for Bond Redemption: Cash&pooled invest. 13,675 123,932 12,348 14B,656 Restricted for Bond Reserve Cash&pooled invest. 14,430 16,666 10,977 12,923 $ 140,824 $ 563,893 $ 166,B74 $ 1,105,214 See accompanying notes to financial statements 0 B-22 44 Business-type Activities-Enterprise Funds Governmental Activities Golf Golf Internal Internal Complex Complex Totals Totals Service Funds Service Funds 2002 2001 2002 2001 2002 2001 $ 2,870,466 $ 2,426,876 $ 36,620,066 $ 24,668,183 $ 10,624,988 $ 11,130,672 8,809,579 9,144,804 (918,870) (879,343) (5,001,797) (4,644,664) (4,449,136) (4,358,127) (1,351,629) (1,031,156) (20,595,346) (18,922,803) (15,021,331) (14,577,209) 1,668 27,520 9,364 30,628 13,059 11,981 601,635 543,903 11,032,287 1,131,544 (22,841) 1,352,121 450,000 460,000 450,000 460,000 (450,000) (460,000) (460.000) (400,000) (460,000) (400,000) 460,000 400,000 100,000 16,479 292,843 167 57,193 (5,982) (5,982) (11,244) (11,244) (112,705) 2,083,165 (845,275) (1,401,000) (696,617) (27,226) 160,000 (10,747) (492,432) (1,503,538) 1,383,741 5,500,000 9,500,000 27,219 198,449 383,505 8,659,465 (27,219) (196,562) (143,401) 4,333,200 999,062 (13,978,070) (30,803) (322,641) (26,753,468) (23,311,795) (1,701,476) (2,935,525) (3,900,000) (403,599) (386,076) (2,541,486) (2,496,066) (248,093) (288,872) (1,116,678) (1,207,079) 50,063 45,000 260,594 45,000 260,594 1,265,126 1,134,875 (601,198) (1,111,664) (305,550) (7,908) 6,924,820 10,673,489 15,628 538,625 (637,495) (744,903) (14,207,923) (10,593,459) (486,167) (6,530,567) (1,465,000) (1,765,000) (58,580,415) (108,673,182) (16,460,869) (42,103,580) 1,525,000 1,710,000 59,443,941 117,688,035 18,285,146 42,305,159 2,448 7,994 960,810 2,135,546 266,625 470,216 62,448 (47,006) 1,824,336 11,151,399 2,090,902 671,795 (638) (88.006) (1,362,047) 1,197,052 78,356 (3,122,910) 13,815 101,821 630,619 630,619 630,619 3,753,529 $ 13,177 $ 13,815 $ (731,428)$ 1,827,671 $ 708,976 $ 630,619 $ 13,177 $ 13,815 $ 269,445 $ 1.380,745 $ 708,975 $ 630,619 26,023 272,588 25,407 29,589 $ 13,177 $ 13,815 $ 320,875 $ 1,682,922 $ 708,975 $ 630,619 B-23 45 City of Kent PROPRIETARY FUNDS e TATEMENT OF CASH FLOWS For the Year Ended December 31,2002 With Comparative Totals for Year Ended December 31,2001 Business-type Activities-Enterprise Funds Water Water Sewerage Sewer 2002 2001 2002 2001 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) _ $ (224,060)$ 17,273 $ 2,119,305 $ 1,813,607 Adjustments to reconcile operating Income to net cash provided by operating activities: Depreciation expense 1,319,582 1,356,664 2,091,280 2,003,478 Change In assets and liabilities: (Increase)Decrease in accounts receivable (38,449) 80,669 4,781,753 (4,892,107) (Increase)Decrease in due from other funds 13,630 88,369 (Increase)Decrease in inventory 1,341 (20,632) (6,854) 109 (increase)in prepaid expenses 5,285 (13,946) 7,182 (5,996) Increase(Decrease)In vouchers payable 48,516 (219,510) 131,333 196,755 Increase(Decrease)In accounts/payroll payable (87,573) 37,229 163,245 182,489 Increase in incurred but not reported claims payable Increase(Decrease)in due to other funds (57,734) (69,520) Increase to deposits and deferred revenues (2,502) 29,126 (4,901) 29,475 Increase in compensated absences• 110,553 9,083 15,616 9,110 Total Adjustments 1,356,753 1,214,579 7,178,654 (2,457,818) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 1,132,693 $ 1,231,852 $ 9,297,959 $ (644,211) SCHEDULE OF NONCASH INVESTING,CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets contributed $ 4,601,949 $ 608,438 $ 631,036 $ 2,862,697 Increase(Decrease)in lair value of investments (6,628) 120,630 (182,862) 179,848 Amortization of premium/discount of investment urchases 80,639 140,561 (40,307) 87,794 i See accompanying notes to financial statements B-24 46 41 Business-type Activities-Enterprise Funds Governmental Activities Golf Golf Internal Internal Complex Complex Totals Totals Service Funds Service Funds 2002 2001 2002 2001 2002 2001 $ 253,624 $ 306,179 $ 2,148,869 $ 2,137,059 $ (456,611) $ (516,952) 307,044 357,610 3,717,906 3,717,752 1,303,882 1,405,895 48,592 (81,125) 4,791,896 (4,892,563) (486,500) (89,161) 4,786 106,805 60 689,252 (25,851) (47,150) (31,364) (67,673) 4,384 (57,009) 14,195 (2,032) 26,662 (21,974) (114,803) (36,133) (39,419) 9,374 140,430 (13,381) (36,717) (201,720) 24,938 (5,122) 100,610 214,596 (109,437) 63,166 (151,013) 449,833 (4,184) (131,438) (5,083) (551,280) 14,676 1,998 7,273 60,599 12,435 (13,987) 3,836 3,569 130,005 21,762 16,562 10,217 348,011 237,724 8,883,418 (1,005,615) 433,770 1,869,073 $ 601,635 $ 543,903 $ 11,032,287 $ 1,131,544 $ (22,841) $ 1,352,121 $ $ $ 11232,985 $ 3,471,135 $ 192,628 $ 332,731 (232) (428) 191,722) 300,050 (37,830) 11,610 40,332 228,355 (3,385) 39,718 B-25 47 City of Kent r ,, FIREMEN'S RELIEF AND PENSION TRUST FUND STATEMENT OF DEFINED BENEFIT PENSION PLAN NET ASSETS December 31,2002 and 20D1 2002 2001 ASSETS Cash and equity In pooled investments $ 5,473 $ 4,710 investments,at fair value 3,696,493 3,607,989 Receivables(net of allowances for estimated uncollectabies): Accrued interest 27,088 35,224 TOTAL ASSETS 3,729,054 3,647,923 LIABILITIES Accounts✓payrollpayable 3,944 3,661 Deferred compensation payable Deposits Total Liabilities 3,944 3,661 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS $ 3,725,110 $ 3,644,262 See accompanying notes to financial statements B-26 48 City of Kent FIREMEN'S RELIEF AND PENSION TRUST FUND l , COMPARATIVE STATEMENT OF CHANGES IN PLAN NET ASSETS For the Years Ended December 31,2002 and 2001 2002 2001 ADDITIONS Fire insurance premium tax $ 76,960 $ 73,072 Investment Income: Net appreciation(depreciation)in fair value of investments 89,297 51,525 Interest Income 186,725 209,920 TOTAL ADDITIONS 352,982 334,517 DEDUCTIONS Benefits 268,834 218,175 Administrative expense 3,30D TOTAL DEDUCTIONS 272,134 218,175 NET INCREASE(DECREASE) 80,848 116,342 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS,January 1 3,644,262 3,527,920 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS,December 31 $ 3.725,110 $ 3,644,262 See accompanying notes to financial statements B-27 49 AS H I N GT0Iy B-28 50 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Kent,King County,Washington,was incorporated on May 28, 1890 and operates under a Mayor/Council form of government under the laws ofthe State of Washington applicable to an optional code city(RCW 35A).The City ofKent is served by a full-time Mayor and seven part-time council members,all elected at large to four-year terms. The City of Kent provides the full range of municipal services including a water utility, sewer and drainage utility, a municipal golf complex, and municipal court. The accounting policies of the City ofKent conform to generally accepted accounting principles(GAAP)applicable to governmental units,and are regulated by the Washington State Auditor's Office. In 2002,the City adopted Governmental Accounting Standards Board(GASB)34,"Basic Financial Statements and Management Discussion and Analysis for State and Local Governments". Significant changes implemented by GASB 34 are: a. A Management Discussion and Analysis (MD&A) section that provides an analysis of the City's overall financial position and results of operations. b. Financial statements utilizing the full accrual basis of accounting and reporting the City as a whole with interf ind transactions eliminated. C. Fund financial statements focusing on the City's major funds. The following provides a summary of the City's more significant accounting policies. They are presented to assist the reader in interpreting the financial statements and other data in this report. a. REPORTING ENTITY Based on the criteria of Statement No. 14 of the Government Accounting Standards Board (GASB),"The Financial Reporting Entity",the City's Comprehensive Annual Financial Report(CAFR)includes the financial position and results of operations of all funds, account groups, agencies and boards for which the City is financially accountable. Financial accountability is defined as appointment of a voting majority of the component units board,and either the ability to impose will by the primary government,or the possibilitythat the component unit will provide a financial benefit to or impose a financial burden on the primary government. The Kent Economic Development Corporation and Kent Downtown Public Market Development Authority meet these criteria. In each case the City appointed a voting majority of the board, and each organization presents a potential financial benefit or burden to the City. They are discretely presented in the financial statements in a separate column on the Basic Financial Statements. See Note 14. See Note 13-JOINT VENTURE for discussion of the Valley Communications Center which is a joint public safety dispatching authority for four member cities. The City reports its equity in the joint venture. b. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements(the Statement ofNet Assets and the Statement of Changes in Net Assets) report on all non-fiduciary activities of the City and its component units. The effect of interfund activity has been mainly removed from these statements. These statements are divided between governmental and business-type activities. The primary government is separated from its component units. B-29 51 City of Kent NOTES TO FINANCIAL STATEMENTS ' December 31,2002 The statement of activities reports the amount that direct expenses of a program or function is offset by program revenues. Direct expenses are clearly identifiable with a specific function or program. Program revenues include: charges to customers (user charges) who purchase, use or directly benefit from these programs,and grants or contributions directly related to the programs. Taxes and other revenues that are not directly identifiable with the program expenses are included as general revenues. Separate financial statements are included for governmental funds, proprietary funds, and fiduciary funds, though fiduciary funds are excluded from the government-wide financial statements. Major governmental and enterprise funds are reported in separate columns in the fund financial statements,while non-major funds are combined into one column C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements use the economic resources measurement focus,and the accrual basis of accounting,as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses when a liability is incurred,regardless of the timing of cash flows. Property taxes are recognized in the year forwhich they are levied. Grants and similar items revenue is recognized when the eligibility requirements imposed by the provider are met. The nwdrfied accr al base of accounting is used by governmental funds. Revenues and other financial resources are reco ized when they become susceptible to accrual,i.e.,when the related funds become both measurable and av F ilable to finance expenditures of the current period. To be considered"available",revenue must be collected during the current period or soon enough thereafter to pay current liabilities. However,debt service expenditures,and payments for compensated absences and claims and judgments are recorded when due. Property,sales,use,utility, and gambling taxes are susceptible for accrual. Intergovernmental revenues that reimburse expenditures are accrued. Investment earnings are accrued when earned. Charges for services,fines and forfeitures,licenses and permits, and other miscellaneous revenues are recorded on receipt and are not susceptible for accrual. Expenditures are recognized when the related fund liability is incurred. Since the recognition of depreciation does not reduce net financial resources,it is not considered as a expenditure. Other exceptions include(I)inventories of materials and prepaid items are reported as expenditures when purchased, (2)interest on long-term debt is not accrued,but is recorded as an expenditure when due, (3) accumulated unpaid vacation and sick pay are considered expenditures when paid. The government reports the following major governmental funds. General Fund-The General Fund is the principal operating fund of the City and accounts for the financial resources of the City which are not accounted for in any other fund. Principal sources of revenue are comprised of property taxes, sales and use taxes, utility taxes, licenses and permits, state shared revenues, charges for services and interest income. Primary expenditures are for general city government,police and fire protection,park and street maintenance,cultural and recreational services,and health and human services. Capital Improvements Fund—This special revenue fund accounts for a portion ofthe City's sales tax that is utilized to provide funding for governmental non-street related capital and operating projects, and debt on those projects. B-30 52 City of Kent NOTES TO FINANCIAL STATENVIENTS December 31,2002 Special Assessments Fund—This debt service fund records payments from property owners for special assessments related to those properties,and the payment of debt service of local unprovement districts'bond issues. A large portion of the City's infrastructure capital improvements have been paid through the issuance of local improvement district bonds. Street Projects Fund—This capital projects fund accounts for the resources and payments for transportation and related improvements to the City's infrastructure. The funds resources include grants and contracts,street related excise taxes,and utility taxes. Other Projects Fund—This capital projects fund accounts for general government bond issues, and non street, parks, information technology, and facility capital projects. Public Safety and general government capital projects are accounted for in this fund. The City reports the following major proprietary funds: Water Fund—This enterprise fund accounts for the water distribution system ofthe City. The utility recovers its costs through user charges. Sewerage Fund—This enterprise fund accounts for the sewer and storm drainage systems of the City. The utility recovers its costs through user charges. Golf Fund—This enterprise fund accounts for the golf complex of the City that includes a par 27 9 hole golf course,an 18 hole pear 72 golf course,a driving range,and a mini putt facility. The utility recovers its costs through user fees. Additionally,the City reports the following fund types: Internal Service Funds-Internal Service Funds are used to account for the financing of specific services performed by designated organizations within the City for other organizations within the City. The City's internal service funds are comprised ofthe Equipment Rental,Central Service,Fire Equipment,Facilities and Insurance funds. Trust Funds-Trust Funds are used to account for assets held by the City as trustee or agent for individuals, private organizations or other governmental units. The City's pension trust fund,the Firemen's Relief&Pension Fund,accounts for pension benefits for former City firefighters. The City's agency fund functions primarily as a clearing mechanism for cash resources which are collected by the City of Kent,held for a period of time and then disbursed to authorized recipients or funds. The accrual basis of accounting is used by proprietary fund types and the pension trust funds. Under this method,revenues are recognized when earned, and expenses are recognized when incurred. The City has chosen to apply GASB pronouncements pursuant to GASB Statement No.20,Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting,pronouncements to its proprietary funds and not to follow FASB pronouncements issued after November 30, 1999. B-31 53 City of Kent NOTES TO FINANCLAL STATEMENTS December 31,2002 The accounts ofthe City are organized on the basis of funds,each ofwhich is considered a separate accounting entity. Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds according to the purpose for which they are spent and how they are controlled. As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes,and other charges between the City's utilities and the other functions of the City. By eliminating those charges,it would distort the direct costs and program revenues for the various functions reported. Amounts that are reported as program revenues include user charges and sales, operating grants and contributions and capital grants and contributions including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues,and general revenues also include all taxes. Proprietary funds distinguish operating revenues and expense from non-operating. Operating revenues and expenses derive from providing goods and services in connection with the fund's principle on going operation. d. BUDGET AND BUDGETARY ACCOUNTING Budgets serve as control mechanisms in the operations of governmental units. Legal budgetary(expenditure) control in the City of Kent is at the fund level,but budget and actual information is maintained by project, organization,program and object. Supplemental appropriations that amend total expenditures or in the case of Proprietary and Fiduciary Funds amend working capital require a City Council ordinance. Annual appropriated budgets are adopted for the general and certain special revenue funds on the modified accrual basis of accounting. The budget is based on generally accepted accounting principles(GAAP). There is no difference between budget basis and GAAP; thus, the City makes no reconcihatwn. Budgets for project/grant related special revenue funds and capital project funds are adopted at the level of the individual project and for fiscal periods that correspond to the lives of projects. Since these funds are not budgeted on an annual basis,budgetary comparisons are not presented. Legal budgetary control is established at the fund level,i.e.,expenditures for a fund may not exceed the total appropriation amount. Any unexpended appropriation balances for annually budgeted funds lapse at the end of the year. Appropriations for other special purpose funds that are non-operating in nature are adopted on a "project-length" basis and, therefore, are carried forward from year to year without re-appropriation until authorized amounts are fully expended or the designated purpose of the fund has been accomplished. The individual funds within each fund type which are included in the City's annual operating budget are listed below. General Fund Special Revenue Funds Youth/Teen Programs Fund B-32 54 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 The City adopts its annual budget in December of the preceding fiscal year following almost a full year of analysis by staff and Council. The first step in analysis involves the development of service issues and goals and their priontization by Council. The second step involves the establishment ofthe baseline budget required to carry existing programs into the next year. The emphasis is placed on the General and Special Revenue Funds since the operation of other funds are tied to ordinances, contractual agreements or separately established rate structures. Once the baseline operations have been reviewed and adjusted based on administrative policy,additional services are included to the level of projected available resources after the establishment of sufficient fund balances. The steps in the budget process are as follows: (1) The ChiefAdministrative Officer and Mayor submit a proposed budget to the City Council. This budget is based on priorities established by the Council, cost estimates provided by the City departments and balanced with revenue estimates. (2) The City Council conducts public hearings on the proposed budget in August and November. (3) The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced budget no later than December 31. (4) The final operating budget as adopted is published and distnbuted within the first two months of the following year. Copies of the budget are made available to the public. Annual appropriated budgets are adopted atthe fund level.Transfers or revisions within budgets are allowed if approved by the Director of Operations. Only City Council has the authority to increase a given funds annual budget. A single budget ordinance summarizing all the Council approved increases or adjustments is adopted by ordinance at year-end. The budget amounts in the financial statements are the final amounts as revised during the year. The non-annually budgeted special revenue funds are not included in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual comparison,since they are a combination of operating and project budgets,and are for management purposes only. These non-annually budgeted funds are the Street,Lodging Tax,Capital Improvement,Criminal Justice, Environmental Mitigation,Housing&Community Development and Operating Grants&Projects funds. I Appropriation amounts shown on the accompanying financial statements reflect final budget values,including all adopted adjustments to original budget amounts. Original Supplemental Final Fund Budget Appropriations Budget General Fund $64,581,470 $(1,509,304) $63,072,166 Special Revenue Fund: Youth/Teen Programs 790,886 (22,050) 768,836 Total 65.372.356 $0,531.3541 $63.841.002 i B-33 55 City of Kent NOTES TO FINANCIAL STATEMENTS ' December 31,2002 e. ENCUMBRANCES The City of Kent does not formally use the encumbrance mode of accounting. City departments that are currently utilizing the City's new purchasing system have the option to record encumbrances for their budget status reports, but the City does not take them into account for year-end reporting. For operating funds, amounts not expended within the budget year lapse. For project funds, budgets remain available until completion of the project £ INTERFUND TRANSACTIONS AND TRANSFERS Because governmental units operate with a number of funds,each performing its specific functions,there are instances where funds are required to do business with each other. This business can be categorized as either an interf mid transaction or an interfund transfer. (1) Interfnnd Transactions Interfund transactions are divided into two categories: quasi-extemal transactions and reimbursement transactions. Quasi-extern pi transactions are those transactions that would be treated as revenues,expenditures or expenses if thiy involved parties external to the City. These types of transactions are accounted for as ordinary rev nues, expenditures or expenses of the funds involved. An example of this type of transaction is when the Parks Department buys water from the Water Department. This transaction is treated as an expenditure to the Parks Department and as a revenue to the Water Department. Reimbursement transactions occur when an expenditure is initially made from one fund but is more appropriately applicable to another fund. These items are recorded as expenditures or expenses in the reimbursing fund and as a reduction of expenditures or expenses in the fund initially charged. An example of this type of transaction occurs when the Public Works and Finance Departments allocate a certain amount oftheir time to provide services for their Utility Divisions. The expense is transferredto the Utility Divisions with a corresponding reduction of expense in the Public Works and Finance Departments. These reductions are accounted for in a separate organizational unit so both gross and net expenditures are reported. (2) Interfund Transfers Transfers are required where revenue is generated in one fund and expenditures are paid for in other funds.Themajority of transfers occur with respect to capital projects where certain General and Special Revenue Fund revenues are transferred to finance various capital projects. Other operating transfers of a recurring nature are required to fund debt service. B-34 56 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 A summary of transfers by fiord type is as follows: Transfers In Transfers Out TRANSFERS: Governmental Major Funds General Fund $ 2,636,099 $ 57,498 Capital Improvement 9,244,291 Special Assessments 270,000 Street Capital Projects 2,373,288 1,118,340 Other Capital Projects 1,369,821 _ 6,484,838 Sub-total 6,379,208 _17,174,967 Non Major Funds Street $ 227,314 $ 3,661,105 Lodging 85,000 Youth Teen 698,836 Criminal Justice 4,669 59,111 Enviro ental 100,000 Other 9perating Projects 19,729 Non-v ted Debt Service 6,733,371 Jarks Capital Projects 6,637,443 Technology Projects 2,027,774 Facilities Projects 786,591 Sub-total 16,417,162 4,623,781 Business-type Major Funds Water Enterprise $ 207,684 Sewerage Enterprise 393,514 Golf Enterprise $ 45,000 Sub-total 45,000 601,198 Internal Service Funds Fleet Management $ 177,000 $ 701,000 Fire Equipment 826,523 400,000 Facilities 261,603 605,550 Sub-total 1,265,126 1,706,550 Total $24.106.496 $ 24.106.496 g COMPARATIVE DATA Comparative data for each individual fund for the prior year has been presented in the basic financial statements only for proprietary funds in the fund financial statements in order to provide an understanding of changes in their financial position,and the results of their operations and cash flows. B-35 57 City of Kent NOTES TO FINANCIAL STATEMENTS ■ - December 31,2002 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions, and there have been no expenditures exceeding legal appropriations in any of the funds of the City. 3. CASH AND INVESTMENTS The cash and investment practices of the City of Kent are accounted for with a modified pooled cash arrangement. Allowable investments consist of the State Treasurer's Investment Pool,banker's acceptances,certificates of deposit, U.S.government securities,and U.S.governmental agency securities. The City implemented GASB 31,"Accounting and Financial Reporting for Certain Investments and for External Investment Pools"in the year ended December 31, 2001. Investments in the State Treasurer's Investment Pool are carried at cost because this pool invests only in short term instruments. Each month,earnings from the State Investment Pool are credited to the City's bank account. The State Investment Pool was created by State statute,and is governed by the State Finance Committee and administered by the State Treasurer. The City pools part of its investments. The General Fund benefits from this pooling arrangement. At December 31,1997,the fair value gain on investments in the pool on equities earned by other funds was$67,924.This was shown as Due to other funds in the General Fund. See Note 41 A recap of the gain(loss)on fair value by fund type follows: Unrealized Gain Due to Increase in Fair Value Fund Tvae of Investments Governmental Activities Major Funds General $ (173,548) Capital Improvement Special Assessments 4,040 Street Capital Projects 475 Non Major Funds(Combined) (4,107) Business Type Activities Major Funds Water (8,628) Sewerage (182,862) Golf (232) Internal Service Funds (32,746) Total aU9 081 For the purposes of the Statement of Cash Flows,the City considers all highly liquid investments with amaturity of three months or less when purchased,to be cash equivalents.The cash and investment position by individual fund or account, where required by bond covenant,in combination with the fund or account's projected cash receipts and disbursements is used in determining the individual investment amount and maturity requirements If the individual fund's cash and investment position changes prior to investment matunty,the fund's equity in the investment is sold to another fund. In addition to individual fund investments,residual cash is invested with interest income accruing to the General Fund. B-36 58 City of Kent NOTES TO FINANCIAL STATEMENTS , December 31, 2002 As of December 31,2002,the City's cash and investment position for all funds,including what is shown as restricted assets,was as follows: Cash and equity in pooled investments $ 16,772,046 Other investments 47,426,172 Restricted cash and residual investments 51,429 Restricted other investments 1,405,000 Total 65.654.647 Cash on hand and in the bank $ (1,354,072) Certificates of deposit 3,254,874 Total 1,900,802 Investments 63,753,845 Total 65,654.647 At year-end,the carrying amount of the City's deposits and cash on hand was$1,900,802. The City is insured up to $100,000 byfederal depository insurance,the remaining deposits were covered by collateral held in a pool contributed to by qualified public depositories administered by the Washington Public Deposit Protection Commission. The cash on hand is insured by a public e�ployee dishonesty bond. This relieves the City of responsibility of liability for any loss resulting from failure or def It. The City's portfolio is diversified by investment type and institution. The City has established centralized safekeeping arrangements at the City s primary bank. The following shows the category of risk of each investment type and the approximate market value as of December 31,2002. In accordance with GASB Statement No.3 the investments are categorized based on risk. Category 1 includes investments that are insured or registered or for which securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent but not in the City's name. The City does not have any Category 2 or 3 investments. Category 1 Fair Cad Fair Value Cost Value U S. Government securities $22.836.450 $22,167,533 $22,836,450 Investments in State Treasurer's Investment Pool* 40,917,397 40,917,397 Total 161042R $63.753,847 *Cost and fair value equate since the pool is made up of short term investments with under a one year maturity. The City provides a deferred compensation program for its employees. 4. RECEIVABLES The City of Kent uses the modified accrual basis of accounting for its Governmental Funds and the full accrual basis of accounting for its Proprietary and Pension Trust Funds as described in Note 1.c, In adopting this basis of accounting, the City recognizes revenue by recording various receivables and accrued revenue in its financial statements. The revenue recognition criteria by source is as follows: 0 B-37 59 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 i a. TAXES RECEIVABLE Taxes receivable consists of property taxes,sales taxes,and City assessed utility,lodging,real-estate excise taxes,and gambling taxes. Property taxes are levied as of January I of each year. The taxes receivable at year end reflect only delinquent taxes. Revenue is recognized to the extent of collections within sixty days of year end. Taxes to be received beyond this period are recorded as deferred. See Note 10 for additional details on property taxes Sales tax and lodging tax are collected by the state and remitted to the City on the last day of each month. Sales tax revenue is accrued at year end per GASB Statement 22, "Accounting for Taxpayer-Assessed Tax Revenues in Governmental Funds." City assessed utility taxes are primarily due monthly and gambling taxes are due quarterly. The payment is due on the last day of the following month. Revenue is recognized to the extent of collections within sixty days of year end. b. ACCOUNTS RECEIVABLE In the General Fund, accounts receivable represent billing for miscellaneous licenses,permits, fines, and damages. In the Special Revenue and Capital Project Funds,accounts receivable represents reimbursement for grants particularly Housing and Community Development block grants for which the services have been provided. Enterprise Funds accounts receivable are primarily for utility amounts billed but uncollected at year end plus accruals for unbilled revenues. Accounts receivables are shown at net See note 4.d.for allowance for estimated uncollectible amounts by fund type. C. ASSESSMENTS AND NOTES RECEIVABLE The Debt Service Fund accounts for assessments receivable used for redeeming assessment bonds. The City has assessments and miscellaneous notes receivable in its Proprietary Funds for development charges and notes in lieu of assessments. d. ACCRUED INTEREST RECEIVABLE Accrued investment interest totaling $300,031 was recognized at December 31, 2002. This interest was recorded in each fund based on its investment position. B-3 8 60 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 ' The following table lists the receivables and accrued revenue by fund type and by source: Allowance for Assessments Accrued Taxes Accounts Uncollectibles &Notes Interest Total Governmental Activities General $2,812,871 $ 460,976 $ (11,474) $ $147,456 $3,409,829 Capital Improvement 888,174 161 888,335 Special Assessments 202 4,181 19,725,608 3,073 19,733,064 Street Projects 2,175,099 15,365 2,190,464 Other Governmental Funds 679,917 806,451 8,384 1,494,752 Subtotal 4,381,164 3,446,868 (11,474) 19,725,608 174,278 27,716,444 Business-type Activities Water Fund $ 784,657 $ (2,908) $ 241 $ 12,829 $794,819 Sewerage Fund 2,762,139 (6,772) 82,362 2,837,729 Golf Fund 57,789 (2,988) 54,801 Internal Service Fund 1,043,156 (23) 15,702 30,562 1,089,397 Subtotal 4,647,741 (12,691) 15,943 125,753 4,776,746 Total 4 64 460 $ (24_]65) 19.741.551 31 $32.493_]90 e. INTERFUND LOANS Interfund Loan Interfund Loan Receivable Payable Governmental Activities Park Projects-Non-Major Fund $ 1,567,738 Other Projects-Major Fund 1,200,000 Business-type Activities Water 2,767,738 Golf Complex 450,000 Internal Service Equipment Rental 450,000 $ 3,217 738 $ 3.217.738 In November 2000,the City executed a$4,200,000 interest bearing three year interfund loan from the Water Fund to the Parks Capital Projects Fund for property purchased for the future site of Clark Lake Park. The balance of that loan at December 31, 2002 was $1,567,738. In December 2000, the City executed a $3,900,000 interest bearing three year interfund loan from the Water Fund to the Other Capital Projects Fund for property purchased for the future site of Kent Station. The balance of that loan at December 31,2002 was $1,200,000. In December 2002, the City Council approved a $450,000 three-year line of credit from the Equipment Rental Fund to the Golf Complex Fund bearing interest at the City's daily funds rate through December 2005. As part of that approval,a$450,000 interfund loan from the Equipment Rental Fund to the Golf Complex Fund was issued in December 2002 to provide working capital. B-39 61 City of Kent NOTES TO FINANCIAL STATEMENTS " December 31,2002 f INTERFUND RECEIVABLES AND PAYABLES The following are the interfund balances at December 31,2002: FAIR VALUE ADJUST.-CASH POOL JNTERFUND NOTE-OTHER TOTAL Due from Due to Due from Due to Due from Due to other funds other funds other funds other funds other funds other funds Governmental Activities General Fund $66,714 $ $ 1,210 $ $ 67,924 $ Capital Improvement 3,784 3,784 Special Assessments 6,803 6,903 Street Projects 2,296 218,601 218,601 2,296 Other Projects 3,113 3,113 Other Governmental Funds Street 4,874 1,210 6,084 Lodging Tax 178 178 Youth/Teen Programs 86 86 Criminal Justice 4,062 4,062 Environmental 438 438 Housing&Community Development 288 288 Operating Grants and Projects 1,917 1,917 Voted Park Projects 1 8,719 8,719 Technology Projects 22,846 22,846 Facility Projects 2,109 2,109 Sub-Total 6if7 44 61,513 219,811 1,210 286,525 62,723 Business-type Activities Enterprise Water Sewerage 218,601 218,601 Golf Sub-Total 218,601 218,601 Internal Service Equipment Rental 468 468 Central Services 3,149 3,149 Fire Equipment 433 433 Facilities 432 432 Insurance 719 719 Sub-Total 5,201 5,201 �66 714 2LS 5. INVENTORIES Inventories carried in Proprietary Funds are valued under the first-in first-out method. A physical count is taken at year-end. Governmental Funds use the purchase method whereby inventory items are considered expenditures when purchased. Governmental activities have not recorded inventories on the books,and they are not presented in the basic statements. This will be considered in the future, but the City does not consider these to be material items when reporting governmental activities. i B-40 62 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 6. PROPERTY, PLANT, EQUIPMENT AND DEPRECIATION For an item to be-capitalized as Property,Plant and Equipment,itmust be a fixed asset type expenditure with a cost of at least$5,000 and have a useful life of more than three years a. GOVERNMENTAL ACTIVITIES CAPITAL ASSETS Property,Plant and Equipment for governmental activities is stated at historical cost or market value at date received in the case of contributions. Purchase and construction of such assets is recorded as an expenditure in the appropriate Governmental Fund and capitalized. Incomplete capital projects are capitalized as construction in progress at year end as are, beginning this year, streets and related infrastructure such as sidewalks. Street related right of way purchases have been recorded as land purchases. Maintenance and repairs are charged as expenditures in the various Governmental Funds and arenot capitalized. Depreciation is recorded on the government-wide statements. DEPRECIATION SCHEDULE Buildings 10-50 years Site Improvements 10-50 years Other Capital 3-10 years Below is a summary of2002 changes in governmental fixed assets: Balance Transfers& Balance 1-1-02 Additions Retirements 12-31-02 � Governmental Activities Capital Assets,not being depreciated: Land $ 43,920,690 $ 93,836 $ $44,014,526 Construction in Progress 130,499,118 29,818,574 160,317,692 Investment in Joint Venture 5,464,334 724,517 6,188,901 Total Capital Assets, not being depreciated 179,884,192 30,636,927 210,521,119 Capital Assets,being depreciated: Buildings 46,291,650 2,268,780 (81,983) 48,478,447 Site Improvements 16,433,095 173,491 (271,672) 16,334,914 Other Capital 23,927,404 332,725 (2,281,850) 21,978,279 Infrastructure 866,912 866,912. Total Capital Assets,being depreciated 86,652,149 3,641,908 (2,635,505) 87,658,552 Less accumulated depreciation: Buildings (14,323,385) (1,260,046) (15,583,431) Site Improvements (4,549,792) (632,858) (5,182,650) Other Capital (11,449,398) (1,590,161) (13,039,559) Infrastructure Total accumulated depreciation (30,322,575) (3,483,065) (33,805,640) Total Capital Assets, being depreciated,net 56,329,574 158,943 (2,635,505) 53,852,912 Governmental Activities Capital Assets,net23b.213.766 30.795.770 $ (2,635.505)$�43 374.03] B-41 63 City of Kent NOTES TO FINANCIAL STATEMENTS ` December 31,2002 b. BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS Property, Plant and Equipment in the Proprietary Funds is stated at cost, or in the case of contributions at market value at the date received. Maintenance and repairs are expensed as incurred Replacements which improve or extend the life of the asset are capitalized. Depreciation is computed on the straight-line method over the established useful life of the asset group as shown in the table below: A summary of Business-type Property,Plant and Equipment at December 31,2002 follows: Balance Transfers& Balance 1-1-02 Additions Retirements 12-31-02 Business-type Activities Capital Assets,not being depreciated: Land $ 9,694,881 $ $ $9,694,881 Construction in Progress 41,046,618 20,240,238 61,286,856 Total Capital Assets, not being depreciated 50,741,499 20,240,238 70,981,737 Capital Assets,being depreciated: Buildings 4,592,639 (20,319) 4,572,320 Site Improvements 152,756,622 6,499,131 (60,674) 159,195,079 Other Capital 3,022,182 14,098 (498,892) 2,537,338 Infrastructure Total Capital Assets,being depreciated 160,371,443 6,513,229 (579,885) 166,304,787 Less accumulated depreciation: Buildings (2,623,680) (148,876) 16,058 (2,756,498) Site Improvements (40,008,119) (3,410,798) 16,436 (43,402,481) Other Capital (2,122,256) (158,233) 348,941 (1,931,548) Infrastructure Total accumulated depreciation �(44,754,055) (3,717,907) 381,435 (48,090,527) Total Capital Assets, being depreciated,net 115,617,388 2,795,322 (198,450) 118,214,260 Business-type Activities Capital Assets,net $ 166,358.887 23,035.560 $ (198,4501$ 189.195.997 B-42 64 City of Kent NOTES TO FINANCIAL STATEMENTS December 31, 2002 C. DEPRECIATION EXPENSE BY FUNCTION/PROGRAM Depreciation expense was charged to functions/programs of the primary government as follows. Governmental activities: General government $ 1,815 Judicial 7,821 Public safety 703,319 Community development 1,808 Public works 95,622 Leisure services 1,165,977 Health and human services 120,348 Library 82,373 Internal Service 1,303,882 Total depreciation expense—governmental activities $14Q9-0 Business-type activities: Water $1,319,582 Sewerage 2,091,280 Golf 307,044 Total depreciation expense—business-type activities $3,711,906 7. LEASES Cperatine Leases The City leases building and office facilities from three locations: Lumberman Barn,Gowe Street Station and Kent Municipal Court. • The City leases space from King County for the Aukeen Kent Municipal Court located at 1220 South Central Avenue in Kent. The City paid$69,000 in 2002 In 2003,the City will pay$73,950. • The City leases space from Gowe Street Associates,LLC at Gowe Street Station located at407 West Gowe Street in Kent. The City paid a total of$100,446 for 2002. The City will pay$77,412 for 2003. The lease expires in September 2003. • The City leased space from Kent Downtown Public Market Authority"PDA"at the Lumberman"Red Barn"located at 206 Railroad Avenue North in Kent. The annual lease requirement for 2002 and 2003 is $24,000. Effective in July 2003, all assets and liabilities of the PDA,including the Red Barn,were transferred to the City. B-43 65 City of Kent NOTES TO FINANCIAL STATEMENTS • December 31,2002 Capital Leases The City entered into a lease agreement with Bank of the West for financing the acquisition of Golf equipment which includes two John Deere 2-wheel drive tractors and Toro Mowers. These items are included in note 8. • The John Deere 2-wheel drive tractors lease requires monthly payments of$536 Total lease payments for 2002 and 2003 are$6,433 per year. In 2004,the City will pay a total$2,681 because the terms of the lease expires in June 2004. • The Toro Mowers lease requires monthly payments of$3,110. The lease payments for 2002 and 2003 are $37,322 per year. In 2004,the City will pay a total of$12,442 because the terms of the lease expires in May 2004. 8. LONG-TERM INDEBTEDNESS The City of Kent has two types of long-term debt: (a)bonded debt(net ofunamortized discount)ofS99,200,403 and (b)nonbonded debt of$33,494,300 for a total of$132,694,703 in long-term indebtedness. a. BONDED DEBT Bonded debt has Ibligation ee components: General Obligation,Special Assessment,and Revenue. (1, General Bonds General Obligation Bonds totaling$78,965,000 are direct obligations of the City for which its full faith and credit is pledged. They have been issued for governmental and business-type activities. Debt service for governmental activities is paid from the General Obligation Debt Service voted and non-voted Funds. Debt service for voted bond issues is funded with special property tax levies. B-44 66 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 Debt service for councilmanic(non-voted)bond issues is funded by transfers from operating funds. Debt service for business-type activities are paid for by the Water, Sewerage and Golf enterprise funds. Additional councilmanic capacity at December 31,2002 is$38,517,510. Total additional general obligation capacity for all purposes at December 31,2002 is$521,387,928. The general obligation bonds have various interest rates between 2.8 percent and 7.1 percent with maturity dates to 2026. The City's general obligation bonds carry a Moody's"Aaa"rating and Standard and Poor's "AAA"rating. (2) Special Assessment Bonds Special Assessment Bonds totaling $16,165,000 are paid through the collection of special assessments. In accordance with GASB Statement No.6,special assessments debt is reported in the government's financial statements. The special assessment bonds are supported solely by the property owners and the Local Improvement Guarantee Fund and are not a general obligation of the City. As ofDecember 3l,2002 the guaranty reserve was$1,637,433 which amounts to 10.1 percent of net outstanding debt. The account is funded with transfers from closed special assessment districts, interest income, and in 1983 and 1984,by a special property tax levy against all City of Kent property owners. This special levy was authorized for a two year period only. As of 1985, State legislation permits the funding of guaranty account as part of the cost of establishing a special assessment district. This was done for the 1999 LID 340,349 consolidated bond issue and 2001 LID 351 bond issue. (3) Revenue Bonds Revenue Bonds are payable from pledged revenues generated by the respective Proprietary Funds. fu The Water Fund's outstanding bonds at December 31,2002 totaled$400,000 for its 1995 rending issue.The Sewerage Fund's outstanding bonds at December 31,2002 totaled$4,850,000 for its 1993 issue. The interest rates of all revenue bonds range from 2.5 percent to 5.5 percent with maturity dates to 2013. The proprietary funds must have income,as defined in the bond ordinances, at least equal to 125 percent of debt service requirements. The Water Fund covered its annual debt service in 2002 by 121 percent. The Sewerage Fund covered its annual debt service in 2002 by324 percent. The water revenue bonds carry a Moody's"Aaa"rating and a Standard and Poor's"AAA"rating. The sewerage revenue bonds carry a Moody's"Aaa"rating and a Standard and Poor's"AAA"rating. (4) Refundings The City has refunded in full or partiallywith"advance refunding bonds"the following bond issues: (a) In 1985 the City refunded by the "defeasance"method its 1982 Water Revenue Bonds of $4,800,000. The liability for the old issue was removed from and the new issue was recorded in the Water Fund. The 1982 issue was defeased in 2002. B-45 67 City of Kent NOTES TO FINANCIAL STATEMENTS December 31, 2002 Debt service for councihnanic(non-voted)bond issues is funded by transfers from operating funds. Debt service for business-type activities are paid for by the Water, Sewerage and Golf enterprise funds. Additional councilmanic capacity at December 31,2002 is$38,517,510. Total additional general obligation capacity for all purposes at December 31,2002 is$521,387,928. The general obligation bonds have various interest rates between 2.8 percent and 7.1 percent with maturity dates to 2026. The City's general obligation bonds carry a Moody's"Aaa"rating and Standard and Poor's "AAA"rating. (2) Special Assessment Bonds Special Assessment Bonds totaling $16,165,000 are paid through the collection of special assessments. In accordance with GASB Statement No.6,special assessments debt is reported in the government's financial statements. The special assessment bonds are supported solely by the property owners and the Local Improvement Guarantee Fund and are not a general obligation of the City. As of December 31,2002 the guaranty reserve was$1,637,433 Which amountsto 10.1 percent of net outstanding debt. The account is fimded with transfers from closed special assessment districts, interest income,and in 1983 and 1984,by a special property tax levy against all City of Kent property owners. This special levy was authorized for a two year period only. As of 1985, State legislation permits the funding of guaranty account as part of the cost of establishing a special assessment district This was done for the 1999 LID 340,349 consolidated bond issue and 2001 LID 351 bond issue. (3) Revenue Bonds Revenue Bonds are payable from pledged revenues generated by the respective Proprietary Funds. The Water Fund's outstanding bonds at December 31,2002 totaled$400,000 for its 1995 refunding issue.The Sewerage Fund's outstanding bonds at December 31,2002 totaled$4,850,000 for its 1993 issue. The interest rates of all revenue bonds range from 2.5 percent to 5.5 percent with maturity dates to 2013. The proprietary funds must have income, as defined in the bond ordinances,at least equal to 125 percent of debt service requirements. The Water Fund covered its annual debt service in 2002 by 121 percent. The Sewerage Fund covered its annual debt service in 2002 by324 percent. The water revenue bonds carry a Moody's"Aaa"rating and a Standard and Poor's"AAA"rating. The sewerage revenue bonds carry a Moody's"Aaa"rating and a Standard and Poor's "AAA"rating. (4) Refundines The City has refunded in full or partially with"advance refunding bonds"the following bond issues: (a) In 1985 the City refunded by the "defeasance"method its 1982 Water Revenue Bonds of $4,800,000. The liability for the old issue was removed from and the new issue was recorded in the Water Fund. The 1982 issue was defeased in 2002. i B-45 67 City of Kent NOTES TO FINANCIAL STATEMENTS ' December 31,2002 (b) In 1992,the City refunded by the"defeasance"method its 1985 General Obligation Bonds of $1,035,000, its 1986 General Obligation Bonds of $6,195,000, and its 1987 General Obligation Bonds of$2,325,000. The liability for the old issues were removed from and the new issue was recorded in the General Long-Term Debt Fund. The 1985 issue was defeased in 2001,and the balance of the 1986 issue at December 31,2002 was$1,750,000,and the 1987 issue's balance at 12/31/02 was$1,370,000. (c) In 1993,the City refunded by the"defeasance"method its 1986 General Obligation Bonds of $8,250,000,and its 1990 General Obligation Bonds of$4,280,000. The liability for the old issues was removed from and the new issue was recorded in the General Long-Term Debt Fund. The balance at December 31,2002 of the 1986 issue was$3,945,000,and of the 1990 issue was$3,545,000. (d) In 1993,the City refunded by the"defeasance"method its 1989 General Obligation Bonds of " $1,945,000. The liability for the old issue was removed from and the new issue was recorded in the General Long-Term Debt Fund. The balance at December 31,2002 of the 1989 issue was$590,000. (e) In 1993,the City refunded by the"defeasance"method its 1986 Sewerage Revenue Bonds of $3,1 0,000. The liability for the old issue was removed and the new issue was recorded in the Sew rage Fund. The balance at December 31,2002 of the 1986 issue was$1,515,000. (f) In T995, the City refunded by the "defeasance" method its 1988 Golf Revenue Bonds of $4,510,000. The liability for the old issue was removed from and the new issue was recorded in the Golf Complex Fund The balance at December 31, 2002 of the 1988 issue was $2,550,000. (g) In 1995,the City refunded,by the "defeasance"method, its 1978 Water Revenue Bonds of $1,470,000,its 1985 Water Revenue Bonds of$3,100,000,and its 1987 Water Revenue Bonds of$2,020,000. The liabilities for the old issues were removed from and the new issue was recorded in the Water Fund. The 1978 and 1985 issues were defeased in 2002, and the balance of the 1987 issue at December 31,2002 was$560,000. (h) In 2000,the City refunded,by the"defeasance"method,its 1995 General Obligation Bonds of $1,035,000,and its 1999 General Obligation Bonds of$7,965,000. The liability for the old issues were removed and the new issues were recorded in the Golf Complex Fund for the 1995 refunded issue, and the General Long Term Debt Fund for the 1999 refunded issue. The balance at December 31,2002 for the 1995 issue was$1,035,000,and of the 1999 issue was $7,965,000. B-46 68 City of Kent NOTES TO FINANCIAL STATEMENTS December 31, 2002 ' The following is a summary of long-term bonded debt transactions of the City for the year ended December 31,2002: Governmental Activities Business-type Activities General Special General Obligation Assessment Obligation Revenue Total Net Bonded Long-Term Debt Payable at 1/01/02 $62,120,000 $18,590,000 $10,071,119 $5,102,430 $95,883,549 Remove Valley Communications Bond (2,455,000) (2,455,000) Add Current Portion-Prior Year 680,000 1,725,000 2,405,000 Add Unamortized Discount-Prior Year 420,255 147,570 567,925 Less Unamortized Premium-Prior Year (41,374) (41,374) Bonded Long-Term,Debt Payable at 1/01/02 59,665,000 18,590,000 11,130,000 6,975,000 96,360,000 New Issues 13,685,000 13,685,000 Debt Retired,Extinguished, and Amortized (4,835,000) (2,425,000) (680,000) (1,725,000) (9,665,000) Bonded Long-Tenn Debt I Payable at 12/31/02 68,515,000 16,165,000 10,450,000 5,250,000 100,380,000 Plus Unamortized Premium (79,580) 36,734 (42,846) Less Unamortized Discount/Deferred (672,250) (358,824) (105,677) (1,136,751) Net Bonded Long-Term Debt Payable at 12/31/02 $67.763.170 16.165.000 10.127.9]0 5.144323 $99.200.403 Current Portion �5.640.000 405 00 $720.000 $805.000 $R570.000 B-47 69 City of Kent NOTES TO FINANCIAL STATEMENTS ' December 31,2002 The following is a summary of bonded debt issuance and redemption information as of December 31,2002: Issuance Maturity Interest Original Redemption Outstanding Due Within Date Date Rate Amount to Date 12/31/02 One Year GENERAL BONDED DEBT GENERAL OBLIGATION BONDS-GOVERNMENTAL ACTIVITIES Voted General Purpose 1993 2009 2.8/5 6 $14,085,000 $6,460,000 $ 7,625,000 $1,375,000 Less unamortized discount 47,877 (47,877) Less unamortized deferred refunding 245,160 (245,160) Councilmanic General Purpose 1992 2007 3.3/6.6 $10,575,000 $7,380,000 $ 3,195,000 $1,115,000 Less unamortized discount 77,703 (77,703) Less unamortized deferred refunding 79,151 (79,151) General Purpose 1993 2004 2.8/5.2 2,765,000 2,175,000 590,000 290,000 Less unamortized discount 4,105 (4,105) Less unamortized deferred refunding 9,796 (9,796) Parks/Street 1996 2006 3 9/5.75 5,595,000 1,120,000 4,475,000 220,000 Less unamortized discount 28,367 (28,367) Less unamortized deferred refunding Facilities 1996 2026 3.9/7.13 12,310,000 885,000 11,425,000 235,000 10 Less unamortized discount 110,316 (110,316) Less unamortized deferred refunding General Purpose 1999 2019 4015.1 21,205,000 11,720,000 9,485,000 1,345,000 Less unamortized discount 176,491 (I76,491) Less unamortized deferred refunding General Purpose 2000 2020 4.515.5 19,070,000 1,035,000 18,035,000 495,000 Less unamortized discount 183,915 (183,915) Plus unamortized deferred refunding (254,527) 254,527 General Purpose 2002 2022 3.0/5.0 13,685,000 13,685,000 565,000 Less unamortized discount 43,476 (43,476) Less unamortized deferred refunding Total General Obligation-Councilmanic 85,205,000 24,773,793 60,431,207 4,265,000 GOVERNMENTAL ACTIVITIES $99,290,000 $31,526,830 $67,763,170 $5,640,000 B-48 70 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 GENERAL OBLIGATION BONDS-BUSINESS-TYPE ACTIVITIES Councilmanic Golf Complex 1995 2010 5.3/6.3 $ 5,420,000 $ 2,690,000 $ 2,730,000 $395,000 Less unamortized discount 42,405 (42,405) Less unamortized deferred costs 170,926 (170,926) Golf Complex Refunding 2000 2010 4.5/5.5 1,075,000 20,000 1,055,000 Plus unamortized premium (36,734) 36,734 Less unamortized deferred costs 53,267 (53,267) Total (Net) 6,495,000 2,939,864 3,555,136 395,000 Drainage 1996 2026 3 9/5.75 8,340,000 1,675,000 6,665,000 325,000 Less unamortized discount 92,226 (92,226) Total(Net) 8,340,000 1,767,226 6,572,774 325,000 BUSINESS-TYPE ACTIVITIES $ 14,835,000 $ 4,707,090 $10,127,910 $720,000 TOTAL GENERAL OBLIGATION BONDS 1LL4J2i.M S77,891,080 6.360.000 Issuance Maturity Interest Original Redemption Outstanding Due Within Date Date Rate Amount to Date 12/31/02 One Year SPECIAL ASSESSMENT BONDS-GOVERNMENTAL ACTIVITIES LID 327 1999 2009 73/7.9 $ 2,296,074 $ 1,886,074 $ 410,000 105,000 LID 328,334 1990 2012 6A/7.7 1,697,303 1,292,303 405,000 155,000 LID 330 1990 2005 6.3/7.6 4,033,732 3,783,732 250,000 140,000 LID 336 1991 2006 5.3/7 2 1,888,078 1,563,078 325,000 120,000 LID 333,338,339 1993 2005 3.515.9 397,413 387,413 10,000 10,000 LID 345 1996 2008 4 0/5 4 781,625 561,625 220,000 95,000 LID 346 1995 2005 4.0/5.4 518,162 433,162 85,000 40,000 LID 347,348 1998 2010 4.3/5.6 942,617 367,617 575,000 55,000 LID 340,349 1999 2014 4.1 /5.9 13,221,661 3,416,661 9,805,000 1,085,000 LID351 2001 2015 3.75/5.5 5,367,217 1,287,217 4,080,000 600,000 TOTAL SPECIAL ASSESSMENT BONDS $ 31,143,882 $14,978,882 $16,165 000 $2,405,000 TOTAL GENERAL BONDED DEBT $145.268.882 512]2,802 94A56.o80 8.765.000 B-49 71 City of Kent NOTES TO FINANCIAL STATEMENTS ' December 31,2002 REVENUE BONDS-BUSINESS-TYPE ACTIVITIES Water Fund Water 1995 2004 4.014.6 $ 7,790,000 $ 7,390,000 $ 400,000 195,000 Less unamortized discount 5,232 (5,232) Less unamortized deferred costs 12,551 (I2,551) Total(Net) $ 7,790,000 $ 7,407,783 $ 382,217 $195,000 Sewerage Fund Drainage 1993 2013 2.515.5 $ 8,690,000 $ 3,840,000 $ 4,850,000 610,000 Less unamortized discount 87.894 (87,894) Total(Net) $ 8,690,000 $ 3,927,894 $ 4,762,106 $610,000 TOTAL REVENUE BONDS 16,480.000 $]1._3� 5.144.323 8 0 TOTAL BONDED DEBT l 61.748.882 62.548.479 99.200.403 0 0 Annual requirements to amortize bonded long-term debt to maturity at December 31,2002 is shown in the following table. Special Assessment Bonds amortization amounts are estimated since they are not term bonds but are callable as special assessment revenue collected. % Governmental Activities Business-type Activities General Special Water Sewerage Obligation Assessment Revenue Revenue Year Bonds Bonds Bonds Bonds Total 2003 $10,502,704 $2,332,102 $213,205 $867,795 $13,915,806 2004 10,372,376 2,639,795 214,430 867,295 14,093,896 2005 9,115,336 2,426,410 859,655 12,401,401 2006 9,120,191 2,135,610 835,075 12,090,876 2007 7,511,656 2,012,940 399,300 9,923,896 2008 6,985,104 1,872,485 399,175 9,256,764 2009 6,929,631 1,705,680 398,225 9,033,516 2010 5,711,296 1,595,270 396,450 7,703,016 2011 5,149,096 1,442,300 398,850 6,990,246 2012 5,148,143 1,363,840 395,150 6,907,133 2013 4,898,181 1,285,970 395,625 6,579,776 2014 4,898,244 848,690 5,746,934 2015 4,906,494 63,240 4,969,734 2016 4,899,750 4,899,750 2017 3,707,494 3,707,494 2018 3,711,563 3,711,563 2019 3,707,775 3,707,775 2020 2,656,113 2,656,113 2021 1,803,575 1,803,575 2022 1,805,563 1,805,563 2023 888,250 888,250 2024 892,425 892,425 2025 889,012 889,012 2026 888,300 888,300 Total $117,098,252 $21,724,332 $427,635 $6,212,595 $145,462,814 B-50 72 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 Arbitrage Compliance All arbitrage compliance as per Section 148(f)of the Internal Revenue Service regulations,as amended, of the Internal Revenue Code for the City's tax-exempt bonds is current. For all the bonds there is a negative arbitrage balance as per Arbitrage Compliance Specialists,Incorporated's summary dated July 11,2003. b. NONBONDED LONG-TERM DEBT Special assessments on City property,notes,contracts,capital leases and compensated absences payable for a period greater than one year are recorded in the General Long-Term Debt Fund for Governmental Funds and as long-term liabilities in the individual Proprietary Funds. The City has entered into an agreement to participate in the Second Supply Project. Four Washington municipalities are participants in the Second Supply Project in the following fractional shares: Tacoma-15/36; Kent-7/36;Covington—7/36;and Lakehaven—7/36("Participant Shares"). Each participant has a contractual right(i)to use an undivided share of the Project equal to its Project Capacity Share and to use available Excess Project Capacity;(ii)to schedule for delivery and receive its Participant Share of Second Diversion Waterat its points of delivery;(iii)to schedule for delivery and receive additional water at its points of delivery;and(iv)to its Participant Share of storage. Each participant has a contractual obligation, among others, (i)to receive Second Diversion Water and Additional Water scheduled for delivery and delivered and (ii) to pay its Participant Share of project costs. In December 2002,Tacoma Water issued$82,700,000 of Regional Water Supply System Revenue Bonds,2002. As a participant in the Second Supply Project,the City ofKent will pay its Participant Sharrb of the obligation which is$18,967,080. It has been determined that the Second Supply Project "r Ageement is a Contract Resource Obligation"ofthe water utility. As such,the obligation ofthe City tY to make payments of debt service on the bond constitutes a"contract resource obligation"payable and shall be an operation and maintenance expense of the water utility. The City has a contract with King County for road improvements. These are direct obligations of the City for which its full faith and credit is pledged. Debt service is paid from the General Obligation Debt Service Fund It is funded by transfers from operating funds. In accordance with GASB Statement 16,the long-term portion of compensated absences of$1,122,961 is recorded in the General Long-Tenn Debt Fund. See Note I I for additional information pertaining to compensated absences,and Note 15 for contingency payable. The City has non bonded Proprietary Fund long-term debt payable from revenue generated by respective Proprietary Funds. The Water and Sewerage Funds have intergovernmental loans for specific capital projects, and the Golf Complex has equipment lease purchase agreements. Long-term debt for the long-term portion of compensated absences of$97,324 is recorded in the Proprietary Funds. See Note ]la for additional information pertaining to compensated absences. B-51 73 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 The following is a summary of long-term nonbonded debt transactions of the City for the year ended December 31,2002: Governmental Activities Business-Tyne Activities General Obligation &Internal Service Water Sewerage Golf Total Nonbonded long-term debt payable at 1/01/02 $ 17,009,196 $9,611,567 $1,397,300 $70,195 $28,088,258 Add current portion-prior year 21,672 81,215 33,600 136,487 Nonbonded long-term debt payable at 1/01/02 17,009,196 9,633,239 1,478,515 103,795 28,224,745 New issues 4,024,628 5,531,223 47,077 19,024 9,621,952 Debt retired (3,864,263) (46,552) (112,676) 48788 (4,072,279) Nonbonded long-term debt payable at 12/31/02 17,169,561 15,117,910 1,412,916 74,031 33,774,418 Less current portion (134,000) (21,672) (84,252) 40194 (280,118) Net nonbonded long-term debt payable at I2/31/02 17. 35,561 U5 096.238 $1.328.664 33 33.494.300 B-52 74 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 The following is a summary of nonbonded debt issuance and redemption information as of December 31,2002: Issuance Maturity Interest Original Redemption Outstanding Type Date Date Rate Amount to Date 12/31/02 GOVERNMENTAL ACTIVITIES GENERAL OBLIGATION Contracts Payable-Intergovernmental 1996 $ 1,810,709 $ $ 1,810,709 Contracts Payable-Valley Comm 2000 4.3/5.375 2,551,600 224,600 2,327,000 Notes Payable-Intergovermnental 2001 2003 2.0/4.0 9,000,000 9,000,000 Notes Payable-LID 342 1994 2004 5.17 57,989 54,028 3,961 Notes Payable-LID 344 1994 2004 5.17 66,097 62,834 3,263 Compensated Absences 3,948,801 3,948,801 17,435,196 341,462 17,093,734 Less current portion-debt 134,000 (134,000) Less current portion-compensated absences 2,825,840 (2,825,840) TOTAL GENERAL OBLIGATION NON-BONDED LONG-TERM DEBT $17,435,196 $ 3,301,302 $14,209,721 INTERNAL SERVICE Equipment Rental Fund Compensated Absences $ 4,298 $ 4,298 Central Si rvice Fund Compensated Absences 32,158 32,158 Facilities Fund Compensated Absences 31,013 31,013 Insurance Fund Compensated Absences 8,358 8,358 TOTAL INTERNAL SERVICE NON-BONDED LONG-TERM DEBT $ 75,827 $ 75,827 TOTAL GOVERNMENTAL ACTIVITES NON-BONDED LONG-TERM DEBT $17.S1].023 4 2 $]7.035.561 B-53 75 City of Kent NOTES TO FINANCIAL STATEIvENTS December 31,2002 BUSINESS-TYPE ACTIVITIES PROPRIETARY FUNDS Water Fund Trust Fund Loan-1986 1986 2006 3.0 $ 400,000 $313,313 $ 86,687 Trust Fund Loan-2001 2001 2021 0.5 9,500,000 9,500,000 Trust Fund Loan-2002 2002 2022 0.5 5,500,000 5,500,000 Compensated Absences 31,223 31,223 15,431,223 313,313 15,117,910 Less Current Portion 21,672 Q L672) Total $15,431,223 $334.985 $15,096,238 Sewerage Fund Trust Fund Loan 1987 2007 1.0 $ 355,000 $261,579 $ 93,421 Trust Fund Loan 1997 2016 4.8 1,572,646 300,228 1,272,418 Compensated Absences 47,077 47,077 1,974,723 561,807 1,412,916 Less Current Portion 84,252 (84,252) Total $1,974,723 $646,059 $1,328,664 Golf Complex Fund Leases 2000 2004 9.65 $ 147,031 $ 92,024 $ 55,007 Compensated Absences 19,024 19,024 166,055 92,024 74,031 Less Current Portion 40,194 (40,194) Total 166,055 132,218 33,837 TOTAL BUSINESS ACTIVITIES NON-BONDED LONG-TERM DEBT $17,572,001 $1,113,262 $16,458,739 TOTAL NON-BONDED LONGTERM DEBT $3 1.588.724 $33.494.300 9. FUND EQUITY Fund balance has been classified as appropriate in the governmental fund financial statements as follows: (1) Reserved-Amounts are segregated to indicate that they are legally restricted and are not available spendable resources. The City has the following reserves: (a) Reserve for Prepaid Items Prepayments area component of net current assets but are not available spendable resources;$17,720 is so reserved in the General Fund and$755 in Street Special Revenue Fund. (b) Reserve for Contingency A contingency reserve for a worker's compensation claim was setup in 1990 in the Insurance Internal Service Fund. The December 31,2002 amount was$165,286. (c) Reserve for Debt Service Resources are legally restricted for the payment of long-term debt principal and interest amounts maturing in future years. The Debt Service and Enterprise Fund's reserves reflect this restriction. (d) Reserve for Trust and Agency Funds Represents the fund balance of the City's Firemen's Relief and Pension Fund reserved for future pension payments. Note 1 ib(3). B-54 76 City of Kent NOTES TO FINANCIAL STATEMENTS , December 31,2002 (2) Unreserved (a) Unreserved,but designated. In 2002,the Council designated$5,716,990 ofunreserved fund balance in the General Fund for contingencies. This designation of unreserved fund balance is to maintain an adequate cash position during the year,and to have funds available for unanticipated needs. (b) Unreserved fund balance is the excess of the current assets over the current liabilities,net of reserves or designations. The unreserved retained earnings is the accumulation of earnings of a proprietary fund, net of reserves. (c) Deficit fund balance is excess of current liabilities over current assets and deficit retained earnings is the excess of liabilities and capital contributions over the assets of the fund. None of the funds had a deficit fund balance as of December 31,2002. 10. INFORMATION ON ENTERPRISE FUNDS The City has three Enterprise Funds. Information pertaining to each fund is presented below: a. WATER The Water Fund collects all revenues for the City's water utibty,pays the expenses ofthe utility,pays amounts as required by bond covenants for debt service and expends certain monies to fund improvements to the system. Water rate increases were passed in 1982 and 1984. These increases were needed to fund a five year, 16.8 million dollar capital improvement program to increase the system's capacity and reliability.The largest component ofthe program is for the development of storage facility to meet peA demand needs and for the upgrading of the transmission system. Water rates were decreased overall in 1992 from$1.64 per 100 cubic feet to a tiered rate structure. On November 16, 1999 water rates were increased to provide funding for a second water supply source. This rate increase was effective beginning on December 31, 1999. It is estimated that Kent's cost for partial ownership of a new water source will be $28 million. Rates were increased again effective January 1,2003,to provide additional funding for the second supply water source pipeline. The changes from the old rate structure to the new are shown as follows: Inside City Limits Outside City Limits Old Rates(Monthly) Sumner(511 thru 9/30) First 700 cu.fL $1.64 per 100 cu.ft. $2.00 per 100 cu ft. Over 700 cu.ft. $2.09 per 100 cu.fL $2.46 per 100 cu.ft. Winter(10/1 thru 4/30) First 700 cu.ft. $1.24 per]00 cu. ft. $1.64 per 100 cu.ft. Over 700 cu.fL $1.69 per 100 cu.ft. $2.09 per 100 cu.ft. New Rates(Monthly) Sumner(5/1 thru 9/30) First 700 cu.ft. $1.72 per 100 cu.ft. $2.10 per 100 cu.ft. Over 700 cu.ft. $2.19 per 100 cu.ft. $2.58 per 100 cu.ft. Winter(10/1 thru 4/30) First 700 cu ft. $1 30 per 100 cu.ft. $1.72 per 100 cu.ft Over 700 cu.ft. $1 77 per 100 cu.ft. $2.I9 per 100 cu ft. The Water fund had sufficient retained earnings to meet its current capital improvement plans at December • 3],2002. B-55 77 City of Kent NOTES TO FINANCIAL STATEMENTS December 3l,2002 b. SEWERAGE The Sewerage Fund is a combined fund for Sewer and Drainage operations. The Fund collects all revenues for the utility,pays the expenses of the utility,and expends certain monies to fund sewer and drainage system improvements. The sewer operation is a collection system which pumps wastes to METRO, a regional treatment agency under King County.All collection districts in King County contract with METRO for sewage treatment. Rate increases for sewer are primarily related to pass through charges from METRO. The drainage operation started in May 1985 and collects revenue to fund operating charges and to make debt payments on the 1993 bond issue for drainage capital improvements. Drainage rates were increased in 1992 to a tiered rate structure to cover major improvements to the City's storm drainage system. Incremental increases were also approved for 1996 thru 1998 initiated in three steps. The following shows the separation of the Sewerage Fund into its components. Amounts are shown in thousands. Sewer Drainage Total Operating revenues $14,345 $7,698 $22,043 Operating expenses 14 8 0 (5,034) (19,924) Operating income (5451 664 11 C. GOLF COMPL) X In 1981,the City purchased a golf facility that included a 9-hole executive golf course, a mini-putt facility, and a driving range. An 18-hole golf course was completed in 1989 funded by the issuance of revenue bonds. The revenue bonds were refunded in 1995 with a limited-tax general obligation issue that also included some new money for driving range and mini-putt improvements. On June 1, 1993,the City contracted with a private corporation to operate the City's Golf Complex. Due to the retirement ofthe key management person of the corporation,the management contract was terminated on December 31,1999. The City took over all golf operations and continued a contract for merchandising at January 1,2000. During 2000,the City entered into a separate management contract to operate the 9-hole executive course,mini-putt facility,and the driving range. The same contractor entered into a lease agreement with the City to build and operate a new restaurant at the 18-hole course. In 2001,the golf merchandise contractor closed its store at the complex. The City Council passed the golf merchandising program on November 20,2001 to be effective December 1,2001. The City operates the 18-hole course,runs the merchandising operation,and provides all of the maintenance at the complex. The Golf Complex Fund collects all revenues and pays all expenses. The complex had a decrease in net assets of$39,842 in 2002,and net assets of$5,687,918 at December 31,2002. 11. PROPERTY TAXES The County Treasurer acts as an agent in collecting property taxes for all taxing authorities in the County. Taxes are levied annually on January 1,on property value listed as of the prior July 31. They become alien on the first day ofthe levy year. Assessed values are established by the County Assessor at 100 percent of fair market value. A reevaluation of all property is required every two years. Tax bills are mailed on February 14 and are due on April 30. They may be paid in two equal installments on April 30 and October 31. If not remitted by April 30,the whole amount becomes delinquent with penalties and delinquent interest assessed on that amount. The County Treasurer remits collections to the individual taxing districts daily by electronic funds transfer as amounts are received and allocated to taxing districts. General and Debt Service Funds receivables include$802,388 for delinquentproperty taxes. No estimate of uncollectible taxes is made since state law allows for sale of property for failure to pay taxes. B-56 78 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 The City is permitted bylaw to levyup to$3 60 per$1,000 of assessed valuation for general government services.This amount is reduced for the following reasons: a The Washington State Constitution limits the total statutory property tax levy to$10.00 per$1,000 of assessed valuation. This 1 percent value limit is subject to additional reduction of 10 percent on all regular taxing rates except for Port and Utility Districts, Conservation Futures, Emergency Medical Services and State levies. The effective levy limit is$5.55 per$1,000 assessed valuation as follows. $1.80 for the County,$3.60 for the City and $.15 is a floating limitation where applicable.In addition,the City has given$.50 to the Countyto fund the library. b. Washington State law in RCW 84.55.010 limits the growth of regular property tax revenue to six percent per year, after adjustments for new construction. If total city assessed valuation increases by more than six percent,the levy rate is proportionally decreased. c. Referendum 47passed in November 1997 limited the growth of the property tax levy to the lesser of 6% or inflation. d. initiative 747 passed in November 2001 further limits property tax levy growth by the lesser of 1%or inflation. e. The City may voluntarily levy taxes below the legal limit. Special property tax levies a roved by the voters are not subject to the above limitations. For 2002,the City's regular t levy was$2.721 per$1,000 of assessed valuation based on the 2001 assessed valuation of $7,582,349,300 for a total regular levy of$20,632,135. Additionally,special levies for debt service on voter approved General Obligation Bonds totaled$.234 per$1,000 on total assessed valuation fortotal special levies of$1,775,000. The total City of Kent levy was$2.955 per$1,000 of assessed valuation for a total levy of$22,407,135. 12. PERSONNEL BENEFITS a. SICK,VACATION AND COMPENSATORY LEAVE Eligible employees earn twelve days sick leave and twelve to twenty-two days vacation leave per year depending on the employee's length of service and union agreement. Law enforcement officers and firefighters hired on or before September 30, 1977 receive unlimited sick leave. Maximum sick leave accruable for other employees is I30 days. Compensatory leave is time off in lieu ofpay,but is due and owing to employees upon termination. Employees leaving the City of Kent are entitled to be paid for all unused vacation and compensatory leave. Police officers are eligible to receive compensation for accrued sick leave exceeding 1,040 hours at December 31 to be paid by January 20 ofe following year. Since no sick leave benefit is paid on termination for any employees only compensated absences payable for vacation and compensatory leave are recorded per GASB 16. The City pays employees a sick leave incentive amount in January based on the number of sick days accrued at year end The amount paid equates from 8 to 32 hours of base pay. In the Governmental Activities Statement of Net Assets, the current portion of compensated absences plus estimated benefits thereon is estimated to be$2,825,840 and the estimated long term portion including internal services is$1,198,788. They are recorded in the Governmental Activities Statement of Net Assets. In the Proprietary Funds, the current portion is that amount which is anticipated to be paid within the next fiscal period. The Proprietary Funds fully accrue compensated absences plus estimated benefits thereon,and separate current and long-term portions for balance sheet purposes only In the Business-type Activities Statement of Net Assets,the estimated current amount is$277,525 and the estimated long-term portion is$97,324. B-57 79 City of Kent NOTES TO FINANCIAL STATEMENTS • 4 December 31, 2002 b. RETIREMENT The City's contributions to retirement programs in 2002 were: To Federal Social Security System $3,014,187 To State administered employee retirement systems(PEAS&LEOFF) 973,950 Total 1-3.988.137 Retirement payments to City employees from all City funds in 2002 were: From Firemen's Relief and Pension Fund 26 8 4 Substantially, all City full-time and qualifying part-time employees participate in one of the following statewide local government retirement systems administered by the Department ofRetirement Systems(DRS), a department under the primary government ofthe State of Washington,under cost-sharing multiple-employer public employee retirement systems. The City of Kent contributes monthly to the Public Employees Retirement System(PEAS)and the Law Enforcement Officers and Fire Fighters Retirement System(LEOFF) The State legislature is responsible for establishing and amending plan provisions. DRS issues a comprehensive annual financial report(CAFR)that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained from: Department of Retirement Systems Communications Unit P. O.Box 48380 Olympia,WA 98504-8380 The following disclosures are made pursuant to GASB Statement 27,Accounting for Pensions by State and Local Government Emp]oyers. (1) Public Employees'Retirement System (PERS) PERS is a cost-sharing multiple-employer system. Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than judges in a judicial retirement system);employees of legislative committees;college and university employees not in national higher education retirement programs,judges of district and municipal courts;and employees of local governments. PERS contains two defined benefit"plans"and one combination defined benefit/defined contribution "plan". (As used in this context, "plans"refers to tiers within PERS. The actual plan is PERS.) Participants who joined the system by September 30, 1977,are Plan 1 members. Those joining on or after October 1, 1977 and by August 31,2002 are enrolled in Plan 2 unless they exercise an option to transfer their membership to Plan 3. PERS participants joining the system on or after September 1,2002 have the option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. Retirement benefits are financed from employee and employer contributions and investment earnings. PERS retirement benefit provisions are established in state statute and may be amended only by the State Legislature. B-5 8 80 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 1 Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan I members are eligible for retirement after 30 years of service, or at the age of 60 with five years of service,or at the age of 55 with 25 years of service. The annual pension is two percent of the final average salary per year of service,capped at 60 percent. The average final compensation is based on the greatest compensation during any 24 eligible consecutive compensation months. If qualified,after reaching age 66,a cost-of-living allowance is granted based on years ofservice credit and is capped at 3%annually. Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may retire at the age of 65 with five years of service, or at 55 with 20 years of service,with an allowance of two percent per year of service of the final average salary. Plan 2 retirements prior to 65 are actuarially reduced. If retirement is at age 55 with 30 years of service,a 3 percent per year reduction applies,otherwise an actuarial reduction will apply. There is no cap on years of service credit and a cost-of-living allowance is granted,capped at 3%annually. Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component, and member contributions finance a defined contribution component. The defined benefit portion provides a benefit calculated at one percent of the average final compensation per year of service. The average final compensation is based on the greatest compensation during any eligible consecutive 60-mouth period. Plan 3 members become eligible for retirement if they have: at least ten years of service; or five years including twelve months that were earned after age 54, or five service credit years earned in PERS Plan 2 prior to June 1,2003. Plan 3 retirements prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service,a three percent per year reduction applies;otherwise an actuarial reduction will apply. There is no cap on years of service credit; and Plan 3 provides the same cost-of-living allowance as Plan 2. The defined contribution portion can be distributed in accordance with an option selected by the member, either as a lump sum or pursuant to other options authorized by the Employee Retirement Benefits Board. There are 1,155 participating employers in PERS. Membership in PERS consisted ofthe following at September 30,2001: Retirees and Beneficiaries Receiving Benefits 62,189 Terminated Plan Members Entitled to but not Receiving Benefits 18,412 Active Plan Members Vested 97,777 Active Plan members Nonvested 55,159 Total 233,537 Fundine Policy Each biennium the state Pension Funding Council adopts Plan 1 employer contribution rates and Plan 2 employer and employee contribution rates. Employee contribution rates for Plan I are established by statute at 6 percent and do not vary from year to year. The employer and employee contribution rates for Plan 2 and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of PIan 3. All employers are required to contribute at the level established by the Legislature. PERS Plan 3 defined contribution is a non-contributing plan for employers. Employees who participate in the defined contribution portion of PERS Plan 3 do not contribute to the defined benefit portion of PERS Plan 3. The Employee Retirement Benefits Board sets Plan 3 employee contribution rates. B-59 81 City of Kent NOTES TO FINANCIAL STATEMENTS " December 31,2002 0 Six rate options are available ranging from 5 to 15 percent;two of the options are graduated rates dependent on the employee's age. The methods used to determine the contribution rate are established under state statute in accordance with Chapters 41.40 and 41.45 RCW. The City's contribution rates expressed as a percentage of covered payroll, for the year ending December 31,2002 were: Plan 1 Plan 2 Plan 3 Required Required Required Employer* 1.32% 1.32% 1.32% Employee 66^00% 0_65% * ** Total 7.32% —L910/0 L 200 *The employer rates include the employer administrative expense fee currently set at 0.22%. *Plan 3 defined benefit portion only. ***Variable from 5.0%minimum to 15.0%maximum based on rate selected by the PERS 3 member. Both the City and the employees made the required contribution. The City's required contributions for the years ended December 31,were: PERS Plan 1 PERS Plan 2 PERS Plan 3 002 $50,172 $367,848 $558 001 $114,193 $797,063 n/a 2000 $162,831 $982,863 n/a 1999 $210,588 $1,148,962 n/a 1998 $250,826 $1,217,821 n/a (2) Law Enforcement Officers'and Fire Fighters'Retirement System(LEOFF) LEOFF is a cost-sharing multiple-employer defined benefit pension plan. Membership includes all full-time,fully compensated,local law enforcement officers and fire fighters. Retirement benefits are financed by employee and employer contributions, investment earnings and legislative appropriation. LEOFF is comprised solely of non-state employees. The LEOFF system contains two defined benefit pension plans. Participants who joined the system by September 30, 1977 are Plan 1 members. Those who joined thereafter are enrolled in Plan 2 Retirement benefits are vested after completion of five years of eligible service Retirement benefit provisions are established in state statute and may be amended only by the state legislature. Plan 1 participants are eligible to retire with five years of service at age 50. The benefit per year of service is as follows,with a cost-of-living allowance granted,capped at 3%annually. The average salary is based on salary received during the last 2 years of service. Term of Service Percent of Final Averag 20+ 2.0% 10-20 1.5% 5-10 1.0% Plan 2 participants are eligible to retire at the age of 50 with 20 years of service or at 53 with five years of service. Retirement benefits prior to age 53 are actuarially reduced 3 percent for each year that the benefit commences pri6rto age 53 The benefit is two percent of average salary per year of service The average salary is based on the highest consecutive 60 months. There is no cap on years of service credit and a cost-of-living allowance is granted,capped at 3%annually. B-60 82 City of Kent NOTES TO FINANCIAL STATEMENTS x December 31,2002 There are 359 participating employers in LEOFF. Membership in LEOFF consisted of the following at September 30,2001: Retirees and Beneficiaries Receiving Benefits 8,078 Terminated Plan Members Entitled to but not Receiving Benefits 332 Active Plan Members Vested 10,894 Active Plan Members Nonvested 4,006 Total 23,310 Funding Policy Plan I employer and employee contributions are established by statute. State contribution rates for Plan I are set by the Pension Funding Council to fully amortize the total costs of the plan. Starting on July 1,2000,Plan 1 employers and employees will contribute zero percent as long as the plan remains fully funded. Employer and employee contribution rates for Plan 2 are set by the director of DRS based on recommendations by the Office of the State Actuary to fully fund the plan. Plan 2 employers and employees are required to contribute at the level required by state law.The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.26 and 41.45 RCW The City's required contribution rates expressed as a percentage of covered payroll, for the year ending December 31,2001 were: Plan 1 Plan 2 Required Required Employer* 0.22% 2.86% Employee 0.00% 4.39% State N/A 1 75% Total *The employer rates include the employer administrative expense fee currently set at 0.23% Both the City and the employees made the required contribution. The City's required contributions for the years ended December 31,were: LEOFF Plan I LEOFF Plan 11 2002 $ 3,418 $525,702 2001 $ 3,572 $647,521 2000 $ 3,914 $726,458 1999 $ 86,696 $678,798 1998 $ 111,868 $849,459 (3) Firemen's Relief and Pension System The Firemen's Relief and Pension system is a single employer defined benefit pension plan. Membership is limited to firefighters employed priorto March 1, 1970. The City's liability under the system is composed of all benefits for firefighters retired priorto March 1,1970,who are members of the system The system is a trust fund in the financial reports of the City,and is administered by the Firemen's Relief and Pension Board made up of two members of the system, the Mayor, and a Councilmember. The plan is governed by State statute, and does not issue a stand-alone financial report. As of December 31,2002 there were a total of 15 individuals covered by this system ofwhich two are on the City's current payroll and 13 are drawing benefits. The City's covered payroll for year ending December 31, 2002 was $94,401. The most recent actuarial study of the system was done by Milliman&Robertson,Inc.to determine the funding requirements as of January 1,2002. As of this date,the fair value of all assets was$3,647,923 and the actuarial present value of future benefits was $2,002,000. The City made no contribution in 2002. The actuary computed the annual required B-61 83 City of Kent NOTES TO FINANCIAL STATEMENTS a December 3l,2002 contribution (ARC) using the Entry Age Normal Cost Method. Since nearly all members have already retired,the amount of the annual Normal Cost is small. Other actuary assumptions in the study were a 4%inflation rate,a 7%investment return,and an annual 5%increase in salaries and post retirement benefits. The amortization method used is level dollar ofprojected payroll over a 30 year closed period. The Firemen's Relief and Pension System's investments at 12/31/02 of$3,696,493 recorded at fair market value were in the following obligations: Market Value Refcorp,Fico $1,060,120 Government Agencies 1,586,373 State Investment Pool 1,050,000 3.696.493 " GASB STATEMENT No.27 THREE-YEAR TREND INFORMATTON " December 31,2000 December 31,2001 December 31,2002 1. Annual Normal Cost(BOY) $ 1,579 $ 1,579 $ 960 2. Amortization of UAAL(BOY) (84,641) (84,641) (128,307) 3, Interest to EOY[(1)+(2)] (5,814) (5,814) (8,914) 4. ARC at EOY[(1)+(2)+(3)],not Less than zero $ 0 $ 0 $ 0 S. Interest o NPO (12,135) (15,723) (20,728) 6. Adjustor nt to ARC (13,196) (17,296) (23,087) 7. AnnuaI ension cost(4)+(5)-(6)$ 1,061 $ 1,573 $ 2,359 8. Employer Contributions** 52,319 73,071 76,960 9. Change in NPO[(7)-(8)] $ (51,258) $ (71,498) $ (74,601) 10. NPO at BOY[(11)prior year] $(173,358) $(224,616) $(296,114) 11. NPO at EOY[(9)+(10)] $(224,616) $(296,114) $(370,715) *Assumed amounts will be replaced at year-end with actual amounts **Fire insurance Premiums GASB STATEMENT No.25 SCHEDULE OF EMPLOYER CONTRIBUTIONS Actual Annual Total Annual Required Fiscal Year Employer Fire Insurance Employer Contribution Percentage of Ending Contribution Premiums Contributions (ARC) ARC Contributed Dec.31, 1998 $0 $79,607 $79,607 $0 NA Dec.31, 1999 $0 $94,175 $94,175 $0 NA Dec.31,2000 $0 $52,319 $52,319 $0 NA Dec.31,2001 $0 $73,071 $73,071 $0 NA Dec.31,2002 $0 $76,960 $76,960 $0 NA Prior information to determine funding requirements for Firemen's Relief and Pennon system do not meet the parameters for actuarial calculations for defined pension plans. Historical data prior to 1998 is not shown. B-62 84 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 (4) Retirement Health Care Benefits-LEOFFI Retirement System In addition to providing pension benefits,the government provides health care benefits for public safety employees who retired under the Law Enforcement Officers' and Fire Fighters'Retirement System,Plan I. Per state statute,employees who joined the system prior to September 30, 1977 are eligible for this benefit if they reach normal retirement age while working for the government. Presently, 59 former LEOFF employees and 2 current employees in non-LEOFF positions are drawing benefits and 18 employees not drawingbenefits are on the City's current payroll. The cost of retiree health care is recognized as an expenditure as claims are paid. For 2002, those costs totaled$181,702. State statute provides that the City's responsibility for medical payments under LEOFF I is secondary to other coverage retirees receive or are eligible to receive. The City reimburses the full amount of premiums for part B of Medicare for each retiree eligible for Medicare. C. LIFE}INSURANCE Life insurance is provided for full time employees through Standard Life Insurance Company. Full-time employees are covered immediately. All employees have paid life insurance equal to their annual salary The City contributed$1 0,820 during 2002 for this coverage. d. DEFERRED CO;PENSATION In 1984 the City established a deferred compensation program for its employees in accordance with Internal Revenue Code Section 457. The plan,available to all City employees,permits them to defer a portion oftheir salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination,retirement, death,or unforeseeable emergency. All amounts of compensation deferred underthe plan,all property and rights purchased with those amounts,and all revenue attributable to those amounts, property, or rights are(until paid or made available to the employee or other beneficiary) deposited to a trust. The City has no claim to these assets and,as of January 1, 1998,no longer records the fair value of the assets of the deferred compensation program on its books.The Citymakes no contributions to the plan,but allows its employees to contribute to one of two plans,Nationwide Funds and Intemational City Managers Association(ICMA)plans. 13. RISK MANAGEMENT The City maintains consolidated insurance operations in one Insurance Internal Service Fund. The Unemployment, Worker's Compensation,a portion of the Liability and Property,and Medical and Dental Insurance Programs are self insured. This fund is made up of separate subfunds for Unemployment Compensation, Worker's Compensation, Liability and Property,and Medical and Dental Insurance. There were no significant reductions in insurance coverages and no claims exceeded insurance coverages for the past three years. Following is a table of changes in estimated claims liabilities for 2000 and 1999 as carried in the City's Internal Service Funds: Worker's Comnensation Medienl and Dental Liability Total 2002 2001 2002 2001 2002 2001 2002 2001 Claims Liabilities Jan. 1 $774,334 $52:;012 $ 979,974 $ 869,983 $1,085 67 $996,847 $2,839,675 $2,389,842 Less. Claims Paid (813,682) (648,856) (6,956,784) (5,786,982) (412,285) (618,385) (8,182,751) (7,054,223) Plus. Claims and Changes in Estimates $87,061 900,178 6,859,810 5.896S73 284,867 706.905 8,031,738 7,504.056 Claims Liabilities,Dec 31 $139171 $ZZ $�83 Qq $ 2Z2. 5-9J 9Q n $2�80 2 2f2� B-63 85 City of Kent NOTES TO FINANCIAL STATEMENTS ' `December 31, 2002 Estimated City Disnatchahle Calls Percent of Total City Charges Kent 91,625 28.08% $1,444,492 Renton 63,378 19.07% 980,653 Auburn 66,908 20 19% 1,038,622 Tukwila 37,980 10.96% 563,597 Federal Way 71,629 21.70% 1,116,148 Totals 331.520 100.00% 5 143 In August 1993,Valley Corn entered into an Interlocal Cooperation Agreement,Pursuant to Chapter 39.34 RCW,with the subregions of King County, Seattle and Eastside Public Safety Communications Agencies (EPSCA). This agreement governs the development,acquisition and installation of the 800 MHz emergency radio communications system(System)funded by the$57 million King County levy approved in November 1992. This agreement provides that upon voluntary termination of any subregion's participation in the System,it surrenders its radio frequencies,relinquishes its equipment and transfers any unexpended levyproceeds and associated equipment replacement reserves to another subregion or consortium of subregions. Thus,in accordance with this Agreement,the principals of Valley Coin have no equity interest in Valley Com's 800 MHz Contributed Capital of$6,915,200 as of December 31,2002. The share of equity belonging to the five participating cities is as follows: Kent Renton Auburn Tukwila Federal Way Total Percent of Equity 30.01% 22.25% 20.93% 14.51% 12.30% 100.00% Equity 111102 $5,464,384 $4,087,259 $3,787,975 $2,692,643 $1,971,762 $18,004,023 Current Yr Increase 724,517 501,185 528,971 300,397 566,193 2,621,263 Equity 12/31/02 $6.18g_901 4 88 444 l 4 �2.993.040 2.537.955 20,625.286 Liabilities are the responsibility of the five participating cities in direct proportion to their equity position The City recorded 1/5`"of a 2000 Limited Tax General Obligation bond issue for a new Communications Facility in its General Long Term Debt Fund. The five participating cities agreed to paythe debt service costs forthis issuethrough Valley Communications Development Authority. The balance of the City of Kent's obligation was $2,327,000 at 12/31/2002. The new Valley Communications Center was opened in early summer 2002. A copy of Valley Communication Center's audited financial statements is available at their new offices located at 27519-108`'Avenue SE,Kent, WA 98030. 15. COMPONENT UNITS a. Economic Development Corporation The City of Kent established an Economic Development Corporation in August of 1983. The corporation was established pursuant to State legislation enacted in 1981 and codified in Chapter 39.84 of the Revised Code of Washington. The Corporation was established for the purpose of facilitating economic development and employment opportunities fi oughthe financing of industrial development facilities bynonrecourse revenue obligations. The City has no financial liability for these obligations. The aggregate principal amount payable for 15 series issued prior to July 1, 1995,could not be determined;however,their original issue amounts are listed as follows: B-64 90 City of Kent NOTES TO FINANCIAL STATEMENTS December 31,2002 t Development Issue Date Amount Associated Grocers 12/18/84 $ 9,500,000 H&H Continental Mills 12/28/84 1,200,000 Cascade Development 4/30/85 3,750,000 Brotherton Pleas 5/10/85 1,000,000 Northwest Aluminum 9/10/85 2,300,000 Elder/Quinn&McGill 10/31/85 1,300,000 Landry 11/27/85 1,250,000 Reynolds Aluminum 12/11/85 750,000 Holman Distribution Center 12/11/85 4,500,000 Colonial Cedar 12/16/85 2,000,000 T.J.Cycles,Ltd. 12/18/85 2,000,000 Worldwide Distributors,Inc. 12/24/85 1,400,000 Northwest Aluminum 2 12/17/86 700,000 H&S Machine . 7125/90 850,000 Baer Family Partnership 9/25190 3,000,000 $35.500A00 The Fund receives a nonrefundable application fee of$1,500 and an annual administration fee of.125 percent of the outstanding principal amount of the bonds not to exceed$2,500 received at bond closing and annually thereafter. Expenses of the Corporation are to reimburse the City for services rendered in particular those of the City Clerk and the City Attorney who act Ricers of the corporation. ;�he Corporation generated$4,832 in revenue in 2002 and had net assets of$29,578 at 12/31/02.Per GASB 14,"The Financial Reporting Entity",the City has chosen to include this entity in the City's financial statements utilizing the discreet presentation method. Net assets continue to fall as bond issues are defeased. b. Kent Downtown Public Market Development Authority The City of Kent established the Kent Downtown Public Market Development Authority(PDA)on March 3,1998. The corporation was established pursuant to State legislation and codified under RCW 35.21.730 through RCW 35.21.755,apublic authority with powers and limitations as set forth in state law. The Authority was established to provide funding for the renovation of property the City had donated to the Authority as the new home for the Kent Downtown Market. The City donated$600,000 in assets to the PDA of cash,property,plant,and equipment. In 1999, the PDA borrowed$700,000 to provide funding for renovation to the property. The renovation began in April 1999 and was completed for occupancy in November 1999. A ten-year lease agreement was entered with Kent Downtown Partnership,a non-profit corporation for the purpose of operating the Kent Downtown Market. In 2002, the PDA had operating income of$6,691.Total property,plant,and equipment at 12/31/02 totaled$1,204,114.The City granted$45,000 to the PDA in 2002. In 2002,the Kent Downtown Market presence was reduced,and a portion of the building was rented to the City Parks Department. At the end of 2002,because of economic pressures,the Kent Downtown Partnership terminated its lease for the market with the PDA effective on December 31,2002. The City continued to rent a portion of the building from the PDA in 2003 until the PDA's dissolution on July 15,2003. Prior to the dissolution of the PDA,the City was contingently liable for the outstanding debt on the bank loan of the PDA. As of December 31,2002,it was$664,903. The City has chosen to include this entity in the City's financial statements utilizing the discreet presentation method. B-65 91 City of Kent NOTES TO FINANCIAL STATEMENTS x December 31,2002 16. CONTINGENT LIABILITIES Per the City Attorney,there is no litigation currently pending which if settled unfavorably to the City of Kent would materially affect the City's financial position. 17. COMMITMENTS As of December 31,2002,the City had the following budgeted commitments for uncompleted projects by fund: Street Capital Projects Fund $ 19,920,837 Parks Capital Projects Fund 4,311,961 Other Capital Projects Fund 14,549,361 Technology Capital Projects 3,827,998 Facility Capital Projects 1,980,412 Water Capital Projects 17,241,620 Sewerage Capital Projects 12,446,607 Golf Capital Projects 22,873 Equipment Rental Capital Projects 38,590 Fire Equipment Capital Projects 528,257 Facilities Capital Projects 77,649 Total 8 .598.421 Substantial contract commitments relate to these amounts. 18. PRIOR PERIOD ADJUSTMENT In 2002,the City adopted new standards for capitalizing assets. For an item to be capitalized as Property,Plant and Equipment,it must be a fixed asset type expenditure with a cost of at least$5,000 compared to the$1,000 threshold used prior to 2002. In the proprietary and internal service funds,the net asset value for the assets capitalized that were below the new capitalization threshold were written offto small tool expense. The following prior period adjustments were made: Fund Amount Water $ (125,936) Sewerage (45,294) Golf (27,219) Equipment Rental (129,490) Central Services (43,892) Fire Equipment (46,718) Facilities (29,427) $ (447,976) Removal of assets from insurance funds to general government. Fund Amount Unemployment $ (6,814) Workers Comp (1,378) Health (10,195) Liability 868 $(19,255) Record deferred revenue estimate for recreation programs for 2001 that should have come into the year ended December 31,2002. Based on December 2001 receipts the General Fund revenue was increased by$60,917. B-66 92 City of Kent NOTES TO FINANCIAL STATEMENTS December31, 2002 t Adjusted Golfs sales tax payable account as of January 1,2002, to the amount owing. $4,756 should have been charged to the expense account instead of the liability account. Adjust sales tax payable at December 31,2002 as follows: Fund Amount General (5,680) Water (113) Facilities (185) Central Services 12 (5,966) A prior period adjustment was made for($16,000)to accrue purchases of Golf inventory for resale received in 2001 which were not included in the payables system until 2002. Therefore,not included in original year-end inventory and Cost of Goods Sold adjustment. Correct 2001 revenue for General Fund. $2,500 from King County was recorded twice. An adjustment of$2,000 was made to the Sewerage fund for under capitalizing East Hill Interceptor project. 19. SUBSEQUENT EVENTS On July 15, 2003, City Council authorized the dissolution of the Kent Downtown Public Market Development Authority(PDA)and the transfer of all assets and liabilities from the PDA to the City. Upon dissolution,the City received cash of$24,735; land and building less depreciation of$1,204,114; and liability of the bank loan with outstanding principal amount of$658,153. Effective January 1,2003,a water rate increase of approximately 5%was instituted to provide funds forKent's portion of additional debt service created by issuance of revenues bonds by Tacoma for the Tacoma Pipeline project in late 2002. On April 29,2003,City Council adopted ordinance 3642 providing for the issuance of$1,363,439 par value of special assessment bond to the Bank ofAmerica,N.A.of Seattle,Washington. The bond proceeds provided funding for three local improvement districts: LID 350 for sewer improvements,LID 352 for storm drainage improvements, and LID 354 for street,and sidewalk improvements. On June 3,2003,City Council approved a utility tax rate increase from 4.8%to 6.0%effective August 3,2003. This increase applied to electric,gas and phone utilities B-67 93 1 i �5 urmw arw A H d T C B-69 94 APPENDIX C: UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE To meet the requirements of United States Securities and Exchange Commission ("SEC") Rule 15c2-12(b)(5) (the "Rule"), as applicable to a participating underwriter for the Bonds, the City makes the following written undertaking (the "Undertaking") for the benefit of holders of the Bonds: (a) Undertaking to Provide Annual Financial Information and Notice of Material Events The City undertakes to provide or cause to be provided, either directly or through a designated agent: (i) To each nationally recognized municipal securities information repository designated by the SEC in accordance with the Rule ("NRMSIR")and to a state information depository, if any, established in the State of Washington (the "SID") annual financial information and operating data of the type included in the final official statement for the Bonds and described in subsection (b) of this section ("annual financial information"); (ii) To each NRMSIR or the Municipal Securities Rulemaking Board ("MSRB"), and to the SID, timely notice of the occurrence of any of the following events with respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties, (5) substitution of credit or liquidity providers, or their failure to perform; (6) modifications to rights of holders of the Bonds; (7) Bond calls (other than scheduled mandatory redemptions of Term Bonds); (8) defeasances; (9) release, substitution, or sale of property securing repayment of the Bonds;and(10) rating changes,and (iii) To each NRMSIR or to the MSRB, and to the SID, timely notice of a failure by the City to provide required annual financial information on or before the date specified in subsection(b)of this section. (b) Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in subsection (a) of this section: C-1 (i) Shall consist of(1) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles applicable to governmental units, as such principles may be changed from time to time and as permitted by State law, which statements shall not be audited, except, however, that if and when audited financial statements are otherwise prepared and available to the City they will be provided; (2) a statement of the City's general obligation debt service requirements; and (3) an update of the information set forth in tables 1, 3, 4, 5, 8, 9 and t0 of the Official Statement for the Bonds; (ii) Shall be provided to each NRMSIR and the SID, not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law,commencing with the City's fiscal year ending December 31, 2004 and (iii) May be provided in a single or multiple documents, and may be incorporated by reference to other documents that have been filed with each NRMSIR and the SID, or, if the document incorporated by reference is a "final official statement" with respect to other obligations of the City, that has been filed with the MSRB. (c) Amendment of Undertaking The Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. The City will give notice to each NRMSIR or the MSRB, and the SID, of the substance (or provide a copy)of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided (d) Beneficiaries The Undertaking evidenced by this section shall inure to the benefit of the City and any holder of Bonds,and shall not inure to the benefit of or create any rights in any other person. (e) Termination of Undertaking. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under the Undertaking shall terminate if those provisions of the Rule which require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such termination to each NRMSIR or the MSRB and the SID. C-2 (fl Remedy for Failure to Comply with Undertaking. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Bonds. The sole remedy of any holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking C-3 APPENDIX D: BOOK ENTRY SYSTEM Portions of the following information concerning DTC and DTC's book-entry system have been obtained from DTC. The City and the Underwriter make no representation as to the accuracy of such information. Book-Entry Only System 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the bonds (the "Bonds"). The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for the Bonds, in the aggregate principal amount of such issue, and will be deposited with DTC. 2. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a"clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U S equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations DTC is a wholly- owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC") DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC. and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc , the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc Access to the DTC system is also available to others such as both U.S and non-U.S securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants") DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the D-1 Direct and Indirect Participants' records Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. 4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers 5 Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to theirs of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them 6. Redemption notices shall be sent to DTC If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co 's consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede& Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Bond Registrar, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to D-2 Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the Bond Registrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Bond Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Bond Registrar, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Bond Registrar. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Bond Registrar's DTC account 10 DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Bond Registrar. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. 11. The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. D-3 APPENDIX E: SPECIMEN BOND INSURANCE POLICY Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: WESTERN STATES ARTS FEDERATION GRANT FOR COMMUNITY PARTICIPATION PILOT PROJECT—ACCEPT 2. SUMMARY STATEMENT: Accept the $10,000 grant from Western States Arts Federation (WESTAF) and authorize expenditure of funds to support the Community Participation Pilot Project. The Kent Arts Committee is one of only three organizations in the western U.S. selected to participate. The project is intended to help performing arts organizations develop effective on-going programs resulting in greater audience participation by members of underserved populations, particularly ethnic minorities. A project will be developed with assistance from the staff of"Grand Performances," an organization with a long history of cultivating diverse audiences. 3. EXHIBITS: Contract from WESTAFF 4. RECOMMENDED BY: Parks & Human Services Committee & Parks Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? X Currently in the Budget? Yes No X If no: Unbudgeted Expense: Fund 10006222.64190.4310 Amount $10,000.00 Unbudgeted Revenue: Fund 10006222.56710.4310 Amount $1000.00 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds • DISCUSSION: ACTION: Council Agenda Item No. 60 7 January 7, 2004 2003-2004 Community Participation Pilot Project City of Kent Arts Commission 220 4ei Avenue South Kent, Washington 98032 CPPP Grant Award Amount: $10,000.00 Grand Performances (GP) shall designate the grant award amount for the presenter listed above following the return of a signed copy of this contract within 30 days of the date on the attached cover letter Failure to return a signed copy of this contract in accordance with the schedule shall result in the forfeiture of the grant award. GP shall pay the presenter 50% of the award amount listed above following the development of the draft timeline and budget for the Community Participation Pilot Project (CPPP) and the preliminary meeting with the Presenter A subsequent payment of 25% of the grant shall be made as outlined in the Timeline and the final 25% of the grant shall be paid upon the timely return of a completed 2003-2004 CPPP Final Report within 30 days following the engagement, which shall be following all activities outlined in the Timeline. In addition to the final report, GP shall receive a final project budget, a copy of any performance programs, current season brochures, published press releases, feature stones, and/or reviews related to the CPPP. Because ongoing reporting is vital to the success of this pilot project, presenters are expected to participate in a CPPP list-sery and Web log established for the facilitation of communication between the three chosen presenters, GP and WESTAF. All information and conditions contained in the Community Participation Pilot Project application j information and guidelines are incorporated herein. By signing this contract, the presenter agrees to comply with Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 20OOd et seq.); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and the Americans with Disabilities Act of 1990 ("ADA") (42 U.S.C. 1 21 01-1 221 3); the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.); Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.); and The Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq. And 45 C.F.R.pt. 1154); as well as all regulations of the National Endowment for the Arts issued pursuant to these statutes; and the applicant thereby gives assurance to immediately take any measures necessary to comply. Copies of these assurances have been attached. Grantees must clearly acknowledge support from the National Endowment for the Arts,their state arts agency and the Western States Arts Federation (WESTAF) in their programs and promotional materials related to this project.Acknowledgement should be given in text and graphically by using the NEA, state arts agency (where available) and WESTAF logos. Copies of both the WESTAF and NEA logos may be found on the WESTAF Web site. Please point your browser to http://www.westaf.org. Alternately, you may request copies of these logos via regular or electronic mail by calling 303-629-1166. Acknowledgement of the Endowment, the state arts agency and WESTAF's support can be phrased in a variety of ways—for example: Funding for the activities of[GRANTEE'S NAME]tnvolvement in the Community Participation Pilot Project is provided by the Western States Arts Federation, the Washington State Arts Commission and the National Endowment for the Arts This project received support from the Washington State Arts Commission; WESTAF, the Western States Arts Federation, and the National Endowment for the Arts. 8 ASSURANCE OF COMPLIANCE Attachment A By signing the application form, the applicant assures and certifies that it is in compliance with the statutes outlined below and all related WESTAF/National Endowment for the Arts regulations, and will maintain records and submit reports necessary to determine compliance. The applicant further assures and certifies that all subrecipients of WESTAF/Endowment funds are in compliance with these nondiscrimination requirements and that it will obtain assurances of compliance from all subrecipients. WESTAF may conduct a review of the applicant organization to ensure that it is in compliance. If WESTAF determines that a grantee has failed to comply with these statutes, it may suspend, terminate, and/or recover funds awarded. This assurance is subject to judicial enforcement. 1. Nondiscrimination Statutes. The Applicant certifies that it will not discriminate: • On the grounds of race, color, or national origin, in accordance with Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.). • On the grounds of disability, in accordance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and the Americans with Disabilities Act of 1990 ("ADA") (42 U.S.C. 12101-12213). The ADA's requirements apply regardless of whetheror not you receive federal funds. • On the basis of age, in accordance with the Age Discrimination Act of 19715 (42 U.S.C. 6101 et seq.). • On the basis of sex, in any education program or activity, in accordance with Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.). For further information and copies of the nondiscrimination regulations identified above, contact the National Endowment for the Arts Office of Civil Rights at (202) 682-5454 or (202) 682-5695 Voice/T.T., or link to them through the Endowment's Web site at http://arts.endow.gov. 2. Regulations relating to Debarment and Suspension (45 C.F.R. pt. 1154)in which the applicant certifies that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in covered transactions by any federal department or agency, nor has, within the three years preceding the submission of this application, been convicted of or had a civil judgment rendered against it for commission of fraud or a criminal offense in connection with a public (federal, state, or local) transaction or a contract under a public transaction; for violation of federal or state antitrust statutes; for commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; had any public transactions terminated for cause or default; or is presently indicted for or otherwise criminally or civilly charged by a governmental entity with any of the preceding offenses. 3. The Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq. and 45 C.F.R. pt. 1154) requires that grantee organizations, within 30 days of receiving a grant, make a continuing, good-faith effort to maintain a drug-free workplace through implementation of the following: 9 • Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of the prohibition. (For the purposes of this Act, alcohol is not considered a controlled substance.) The grantee shall give a copy of the statement to each employee who will be involved in grant-supported activities and notify such employees that they are expected to abide by the terms of the statement. For the purposes of this law, "employees" include Contractors and temporary personnel (but not volunteers) who are directly engaged in work under the grant and who are on the grantee's payroll. The grantee should maintain on file the address of each site where work is performed under the grant. • Establish a drug-free awareness program that will inform employees about the dangers of drug abuse in the workplace; the grantee's policy of maintaining a drug- free workplace; any available drug counseling, rehabilitation, and employee assistance programs; and the penalties that might be imposed for workplace drug abuse violations. Employees should be informed that any conviction for a violation of a criminal drug statute that occurs in the workplace must be reported to the employer, in writing, no later than five calendar days after such a conviction.The grantee, in turn, must notify the WESTAF Programs Director, in writing, within 10 calendar days of receiving such notice from its employee. The grantee's notice to WESTAF must include the convicted individual's position title and the number(s) of each affected grant. • Within 30 calendar days of receiving notice of an employee's criminal drug conviction, a grantee should take appropriate personnel action against the convicted employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or require the employee to participate satisfactorily in a drug abuse assistance or rehabilitation program that has been approved for such purposes by a federal, state, or local health, law enforcement, or other appropriate agency. 4. The Native American Graves Protection and Repatriation Act of 1990 (25 U.S.C. 3001 et seq.), which applies to any organization that controls or possesses Native American human remains and associated funerary objects and that receives federal funding, even for a purpose unrelated to the Act. 5. Federal Debt Status (OMB Circular A-129). The applicant certifies that it is not delinquent in the repayment of any federal debt or, if it is, provides explanatory information. Examples of relevant debt include delinquent payroll or other taxes, audit disallowances, and benefit overpayments. 10 Compliance is mandatory with all requirements, paperwork, and related timelines as described herein; failure to do so may jeopardize current and/or future funding from WESTAF The Community Participation Pilot Project is made possible through support from the National Endowment for the Arts, (WESTAF), and its participating state arts agencies. Support is contingent on available funds. We the undersigned understand and will comply with the terms of this contract. Jf M, z zeo for Grand Pe ormances Date ADecember 9 2003 for WESTAF Date '�*L L AL�:: t for P tn r Dat John Hodgson, Director, Kent Parks, Recreation & Community Services Name and title (typed) 220 Fourth Ave. S. Address Kent, WA. 98032-5895 _ City, State Zip 253-856-5100 253-856-6050 Jhodgson@ci.kent.wa.us _ Phone/Fax/E-mail Please return both pages to: GRAND PERFORMANCES 350 SOUTH GRAND AVENUE, SUITE A-4 LOS ANGELES, CA 90071 Please direct questions to: Michael Alexander (213) 687-2190 (213) 687-2191 fax <MAlexander(a7GrandPerformances.org> • Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: KING CONSERVATION DISTRICT GRANT FOR CANTERBURY PARK—ACCEPT AND AMEND BUDGET 2. SUMMARY STATEMENT: Accept the King Conservation District No. 9 Grant in the amount of$7,901.19 and authorize expenditure of funds to support the Canterbury Park Neighborhood Park Project. Staff submitted an application to King Conservation District for reimbursement of native trees and shrubs planted around the storm water retention pond at Canterbury Neighborhood Park. The goal of the project is to provide a maintenance efficient and aesthetically pleasing natural storm water retention pond that provides new wildlife to make up for habitat that has been lost from adjacent developments. • 3. EXHIBITS: Award letter and agreement from King Conservation District 4. RECOMMENDED BY: Parks & Human Services and Parks Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? X Currently in the Budget? Yes No _ X If no: Unbudgeted Expense: Fund P20096 Amount $7,901.19 Unbudgeted Revenue: Fund P20096.56710 Amount $7,901.19 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: • ACTION: Council Agenda Item No. 6P 15 King Conservation District 935 Powell Avenue 5W•Renton,WA 98055•Phone(206)764-3410•Fax(206)764-6677•E-mail drstr0O)kmgcd org March 12,2004 Shane Gilbertson City of Kent 220 -4�b Avenue South Kent,WA 98032 Dear Shane, Enclosed are two copies of an Agreement for Award of Noncompetitive Grant for the Canterbunj Retention Pond PIanting Project. This grant is funded with King Conservation District Special Assessment funds allocated to the City of Kent and collected in assessment years 1994 through 2000. After obtaining the required signatures from City of Kent representatives, return both copies of the Agreement to me. I will obtain the required signatures from King Conservation District representatives and forward a signed original for your records. At that time,I will also forward a check for the amount of the grant. I am available to answer any questions you may have. Please do not hesitate to contact me. Sincerely, randy Reed District Co-Coordinator Enclosures (2) KCD Ref: KCD 04-039 Shane Gilbertson,City of Kent C. o Pr,/ 1 0 16 AGREEMENT FOR AWARD OF NONCOMPETITIVE GRANT City of Kent This Agreement is made between the King Conservation District Number 9, a municipal corporation in King County, Washington, located at 935 Powell Ave. SW, Renton, WA 98055 (referred to herein as "District"), and the City of Kent, a municipal corporation in King County, Washington, operating through the City of Kent Parks Department, and located at 220 — 4 h Ave South,Kent Washington 98032 (referred to herein as"Recipient"), for the purposes set forth herein. SECTION 1. RECITALS 1.1 Whereas, the District is a special purpose district organized and existing under authority of Chapter 89.08 RCW. The District engages in and provides certain conservation activities that are authorized and described in RCW 89.08.220; and 1.2 Whereas, on November 15, 1993,the Metropolitan King County Council enacted King County Ordinance No. 10981 which, among other things,provides for the distribution of noncompetitive grant funds from a portion of the special assessments imposed by King County Ordinance No. 10981 and collected by the District pursuant to Chapter 89.08 RCW; and 1.3 Whereas, on December 19, 1995,the Metropolitan King County Council enacted King County Ordinance No. 12095 which, among other things,provides for the distribution of noncompetitive grant funds from a portion of the special assessments imposed by King County Ordinance No. 12095 and collected by the District pursuant to Chapter 89.08 RCW; and 1.4 Whereas, on December 15, 1997,the Metropolitan King County Council enacted King County Ordinance No. 12959 which, among other things,provides for the distribution of noncompetitive grant funds from a portion of the special assessments imposed by King County Ordinance No. 12959 and collected by the District pursuant to Chapter 89.08 RCW; and 1.5 Whereas, on November 19, 1998, the District adopted Resolution No. 98-20 relating to the policy and procedures governing the District's award of any noncompetitive grants authorized by King County; and 1.6 Whereas, the District has reviewed the grant application submitted by Recipient and has determined that the application meets the requirements of Chapter 89 08 RCW and the District's policy and procedures for awarding noncompetitive grants; and 17 Whereas,the District and Recipient desire to enter into this Agreement for the purpose of establishing the terms and conditions relating to the District's award of a noncompetitive grant to Recipient. 17 SECTION 2. AGREEMENT 2.1 The District agrees to award Recipient a grant in the total amount of Seven thousand nine hundred one dollars and nineteen Cents ($7,901.19) ($3,412.57 from 2000 Assessments, $4,132.39 from 1999 Assessments, and$356.24 from 1994- 1997 Assessments). Grant funds shall be used by Recipient solely for the performance of the work described in Exhibit A which is attached hereto and incorporated herein by this reference. The District shall pay the grant funds to Recipient in accordance with the following paragraphs. 2.1.1 Grant funds from 1994-1997, 1999, and 2000 Assessments shall be paid by District to Recipient within five (5)business days after District's receipt of a fully executed Agreement. 2.2 Recipient represents and warrants that it will only use the grant funds for the work described in Exhibit A, which may be amended by the parties pursuant to Paragraph 3.3 of the Agreement. Recipient shall be required to refund to the District that portion of any grant funds which are used for unauthorized work. Further, Recipient agrees to return to the District any grant funds that are not expended and/or remain after completion of the work covered by this Agreement. 2.3 Recipient acknowledges and agrees that the grant funds may only be expended on work which shall be entirely within the District's jurisdictional boundaries. The following municipal entities are not within the District's jurisdictional boundaries: Enumclaw,Federal Way, Milton, Pacific, Skykomish and Tukwila. Recipient shall be required to refund to the District that portion of any grant funds which are used for work performed outside the District's jurisdictional boundaries. 2.4 In the event the scope of work authorized by this Agreement includes the use of grant funds to purchase houses located on real property within a flood hazard area,Recipient acknowledges and agrees that grant funds may only be used for such purposes if the houses to be purchased were constructed before floodplain mapping or sensitive areas regulations were in place for that area. Recipient shall be required to refund to the District that portion of any grant funds which are used for unauthorized purposes. 2.5 Recipient shall be required to provide the District with biannual financial and project progress reports, along with an annual summary report. Financial and project reports shall be due May 31 and November 30 each year. The Recipient shall also be required to submit to the District a final report which documents the Recipient's completion of the work in conformance with this Agreement within thirty(30) days after the completion of the work. The final report shall, among other things, summarize the project's successes and shall address the regional benefits accomplished by the work. The final report shall also identify any obstacles or challenges which were encountered during the work, along with general recommendations regarding ways to avoid such obstacles or challenges in the future. If requested, Recipient agrees to provide the District with additional financial or progress reports from time to time, at reasonable intervals. - 2 - 18 2.6 Recipient's expenditures of grant funds shall be separately identified in the Recipient's accounting records. If requested, Recipient shall comply with other reasonable requests made by the District with respect to the manner in which project expenditures are tracked and accounted for in Recipient's accounting books and records. Recipient shall maintain such records of expenditures as may be necessary to conform to generally accepted accounting principals and to meet the requirements of all applicable state and federal laws. 2.7 Recipient shall be required to track project expenses using the Budget Accounting and Reporting System for the State of Washington("BARS"). 2.8 The District or its representative shall have the right from time to time, at reasonable intervals, to audit the Recipient's books and records in order to verify compliance with the terns of this Agreement. Recipient shall cooperate with the District in any such audit. 2.9 Recipient shall retain all accounting records and project files relating to this Agreement in accordance with criteria established in the Revised Code of Washington and the Washington State Archivist. 2.10 Recipient shall ensure that all work performed by Recipient or its employees, agents, contractors or subcontractors is performed in a manner which protects and safeguards the environment and natural resources and which is in compliance with local, state and federal laws and regulations. Recipient shall implement an appropriate monitoring system or program to ensure compliance with this provision. 2.11 Recipient agrees that in the event a court of competent jurisdiction finds that the imposition or collection of the special assessments authorized by King County Ordinance No. 10981,No. 12095, and No. 12959 are unlawful and orders the repayment of such assessments, Recipient agrees to reimburse the District for the full amount of the grant award,including any interest which may be awarded by the court. 2.12 Recipient agrees to indemnify, defend and hold harmless the District, its agents, officers, officials and employees from all claims, alleged liability, damages, losses to or death of person or damage to property allegedly resulting from the acts of the Recipient or any of its employees, agents,contractors or subcontractors in connection with this Agreement. 2.13 Recipient agrees to acknowledge the District as a source of funding for this project on all literature, signage or press releases related to said project. SECTION 3. GENERAL PROVISIONS 3.1 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. - 3 - 19 3.2 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. No prior or contemporaneous representation, inducement,promise or agreement between or among the parties which relate to the subject matter hereof which are not embodied in this Agreement shall be of any force or effect. 3.3 No amendment to this Agreement shall be binding on any of the parties to this Agreement unless such amendment is in writing and is executed by the parties. The parties contemplate that this Agreement may from time to time be modified by written amendment which shall be executed by duly authorized representatives of the parties and attached to this Agreement. 3.4 Each party warrants and represents that such party has full and complete authority to enter into this Agreement and each person executing this Agreement on behalf of a party warrants and represents that he/she has been fully authorized to execute this Agreement on behalf of such party and that such party is bound by the signature of such representative. 3.5 Expenditure of grant funds shall be subject to appropriation by the Metropolitan King County Council. DISTRICT: RECIPIENT: By By Name Name Title Title Date Date Approved as to Form: Approved as to Form: PP PP DISTRICT LEGAL COUNSEL: RECIPIENT'S ATTORNEY: By f By _ Name L , C, C F i\'yI O A} Name Date U L) Date -4 - 20 Exhibit A i 21 King Conservation District 1 Municipality Noncompetitive Grant Application Project Name: Canterbury Retention Pond Contact: Shane Gilbertson Planting Applicant: City of Kent Parks Department Title: Project Manager Principal Partners (if any): Address: Volunteers 220 4"'Ave S Kent,Wa 98032 Total Project Cost: $9,047.19 Phone: 253 856-5115 KCD Funding Requested: $7,901 19 Fax: 253 856-6050 Project Start Date: June 9, 2003 E-mail: Sgiblertsongci.kent wa.us Project End Date: November 15, 2003 1. Brief Project Description (—200 words): Conduct a demonstration project at a storm water retention pond that accelerates the succession process by planting native trees and shrubs over a multi-year period.The goal of the project is to provide a naturalized storm water retention pond that provides wildlife habitat value and function of a forested wetland and restoration of habitat lost due to adjacent developments. Our goal is to achieve a landscape that is easy to maintain and aesthetic instead of an eyesore.A typical storm water pond has invasive plants,grasses and a few trees; it is challenging to maintain,and has little habitat or aesthetic value. 2. Project Objectives (Citing specific paragraphs and subtexts,provide a brief description of how the project meets one RCW 89.08 criteria and one KCD Strategic Plan Initiative criteria outlined in the Policy and Procedure Overview): One objective of the project is to enhance wildlife habitat in urban areas. The project meets criteria in RCW 89.08 46.2 a because it restores native wildlife habitat around a typical storm water retention pond, no soil will be removed, and low-maintenance native vegetation will be planted.The project meets the goal of the State of Washington in 89.08 450 to " . restore the natural resources of the state. Strategic Plan Initiative Promoting Natural Habitat Protection and restoration. (iib) This project restores native plant habitat and wildlife habitat in the Kent urban area 3. Project Activities and Measurable Results: Native Tree and Shrub purchase: Approximately 55 native trees and 295 native shrubs have been purchased and planted by City of Kent staff, and will be thriving one year. Native Tree and Shrub planting City of Kent, and volunteers have planted the trees and shrubs in the fall to take advantage of winter moisture to get established After three(3)years staff will not need to water initial plantings Native Tree and Shrub Measurable Results Within three(3)years native plants have matured and proven effective in out competing invasive plants,and will provide habitat value.Three to five(3-5) years after initial planting,typical under story native ground covers and shrubs will be planted and grasses removed. Within seven(7)years,a typical retention pond will be"naturalized". King Conservation District 2 22 Municipality Noncompetitive Grant Application 4. Budget Expenses Budget Item KCD Other Other Total Funds Funds Funds (specify) Salaries and Benefits City of $960.00 $960.00 Kent Travel/Meals/Mileage Office/Field Supplies $7,901.19 $7,901.19 Trees, Shrubs,and Multch Contracted/Professional Services Land Acquisition Permits Other Labor Planting Volunteer $286.00 $286.00 Labor TOTAL $9,047.19 1. Describe how KCD funding will be acknowledged over the duration of the project. 1. In the quarterly brochure following planting and the grant award, the grant and project will be described. 2. Funding assistance will be acknowledged on the City of Kent's web site. o a Auth rize Signature Date Kent City Council Meeting Date May4, 2004 Category Consent Calendar 1. SUBJECT: FIRST QUARTER FEE IN LIEU OF FUNDS FROM THE CHRISTOPHER RIDGE SUBDNISION—ACCEPT AND AUTHORIZE EXPENDITURE 2. SUMMARY STATEMENT: Accept the fee-in-lieu of funds from the Christopher Ridge Subdivision in the amount of$6,375.00 and authorize expenditure of funds to support the Canterbury Neighborhood Park Project. From January through March 2004, the City of Kent received a total of$6,375.00 from developer Scott Otey,who voluntarily paid fees in lieu of dedicating park land to mitigate the development of single family homes at Christopher Ridge Subdivision. City Ordinance 2975 requires developers to construct a park or leave open space in proximity to new construction sites or qualify to pay "fee-in-lieu" funds, which are used for projects at an existing park closest to the development. 3. EXHIBITS: Revenue Report 4. RECOMMENDED BY:Parks & Human Services Committee and Parks Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? X Currently in the Budget? Yes No X If no: Unbudgeted Expense: Fund P20096 Amount $6,375.00 Unbudgeted Revenue: Fund P200913.56730 Amount$6,375.00 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6Q PARKS, RECREATION AND COMMUNITY SERVICES KENT John M. Hodgson, Director WASHINGTON Phone. 253-856-5100 Fax: 253-856-6050 Address- 220 Fourth Avenue S Kent, WA. 98032-5895 DATE: April 15, 2004 TO: Kent City Council Parks and Human Services Committee FROM: Lori Flemm, Superintendent of Parks Planning and Development THROUGH: John M. Hodgson, Director Parks, Recreation & Community Services SUBJECT: First Quarter Fee-In-Lieu of Funds - Accept MOTION: Recommend accepting fee-in-lieu funds from the Christopher Ridge Subdivision in the amount of$6,375.00 and authorizing expenditure of funds to support the Canterbury Neighborhood Park Project. SUMMARY: From January through March 2004, the City of Kent received a total of $6,375..00 from developer Scott Otey, who voluntarily paid fees in lieu of dedicating park land to mitigate the development of single family homes at Christopher Ridge Subdivision. City Ordinance 2975 requires developers to construct a park or leave open space in proximity to new construction sites or qualify to pay"fee-in-lieu" funds. The obligation fee- in-lieu is based on lot and land size, and is concluded during the plan review process. The city has five years from the date of deposit to spend these funds for park acquisition, development, or open space. Fee-in-lieu-of funds are used for projects at an existing park closest to the development. EXHIBITS: Copy of Finance Revenue Report BUDGET IMPACT: Unbudgeted $6,375.00, impacts the Canterbury Park revenue account no. P200913.56730 and expense account no. P20096. City of Kent Search GL by Business Unit Doc Type/# PO# Ref 2 Vendor De 00) JK 20734 04-46104 33857 Oley,scott 00) 00) Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: 2004 INTERLOCAL AGREEMENT FOR WATERFOWL MANAGEMENT—AUTHORIZE 2. SUMMARY STATEMENT: Authorize the Mayor to sign the 2004 Interlocal Agreement for Waterfowl Management. The goal of the Waterfowl Management Program and subsequent agreement is to reduce and/or alleviate property damage and human health and safety concerns from waterfowl, including contamination of potable water and recreation areas within King County. Each year the Interlocal Agreement must be renewed and authorized by each city involved in the agreement with the Wildlife Services Program of the U.S. Department of Agriculture. 3. EXHIBITS: 2004 Interlocal Waterfowl Agreement 4. RECOMMENDED BY: Parks & Human Services Committee and Parks Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6R 31 For Your Action 2004 Interlocal Agreement for Waterfowl (Canada Goose) Management Program Please Note: Final Form Ready for Your Submittal for Signature and Funding Authorization n staffosp\dhNwaterfwl\agreemnt\lnter2000 1 32 0 2004 INTERLOCAL AGREEMENT FOR WATERFOWL (CANADA GOOSE) MANAGEMENT PROGRAM WHEREAS, Chapter 39.34.040 RCW(Interlocal Cooperation Act)permits local government units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services in a manner pursuant to forms of government organization that will accord best with recreational, park and natural resources and other factors influencing the needs and development of local communities and WHEREAS, the various agencies, cities, counties, Washington State and agencies of the Federal Government listed in Exhibit A-Page 6 of this Agreement, desire to manage waterfowl, especially Canada Geese; and WHEREAS, all parties require assistance from the Wildlife Services Program of the U.S. Department of Agriculture,to reduce negative impacts on water quality, minimize resource damage, ensure safety from disease for park visitors, and enhance other property managed; and WHEREAS, information dating to a 1989 Waterfowl Research Project done by the University of Washington and current data indicates a large surplus of geese and other waterfowl species in the greater Seattle area; and WHEREAS, this program will be an ongoing resource management activity attempting to maintain a manageable number of birds on a year-to-year basis; and NOW, THEREFORE, in consideration of the covenants herein, it is mutually agreed as follows: SECTION I -PURPOSE The purpose of this Agreement is to provide joint funding for an egg addling program, lethal control, population monitoring and census; mainly of Canada Geese, within King County. This program will assist each party in maintaining and managing public and selected and approved private sites that are impacted by a surplus of waterfowl. n staffosp\dh\waterfwl\agrec=t\Inter2000 2 33 SECTION II-SCOPE OF PROGRAM Wildlife Services (WS)will receive funds from each participating member for the continuation of an egg addling program, lethal control and evaluation during spring and summer 2004. Using best management practices WS will carry out an egg addling program, seeking as many accessible nesting areas as possible and will make every effort to mininuze damage to the surrounding environment. WS will also implement a program of"lethal control" as requested by the Waterfowl Management Committee, subject to the terms and conditions of a permit to be issued by the U.S. Fish and Wildlife Service. This will be done on a case by case basis in situations where an over population of Canada geese may result in an impact on human health and safety, such as potable water contamination, bird aircraft strikes, disease transmission or other situations as determined by WMC members. Agency and corporate participants acknowledge by approval signature (below) that their participation includes a request to WS for direct assistance through the removal of Canada geese, and will rely on the experience and expertise of WS to identify locations where goose removal is appropriate. Participants may identify locations where control is not to be carried out. Approved by: for Agency Date: WS will provide an annual report to the members of the WMC which will include information regarding egg addling, the general location of nests and number of eggs addled, number of geese removed, difficulties encountered and whatever other information would be valuable to the WMC. 2004 will be the twelfth year of an egg addling program and the fifth year utilizing "lethal control". All methods and tools utilized to accomplish addling and "lethal control' activities in 2003 will again be used in 2004. A census of urban Canada Geese will be conducted during 2004, however as in 2003 these census counts will be expanded using staff from local agencies and participants at times and places to be specified. Where possible, educational programs will be initiated to inform the public about urban Canada Geese, the associated problems, and the efforts of tlus conumttee at addressing those problems. 34 SECTION III-RESPONSIBILITIES Each party, represented on the Waterfowl Management Committee, as shown on Exhibit "A", and incorporated by reference herein, will share in the ongoing review of the programs carried out by WS. Each party agrees that if necessary, an Oversight Committee will be appointed to monitor and report back to the general committee on a regular basis. Three members of the Committee will make up the Oversight Committee chaired by the City of Seattle representative. SECTION IV - COMPENSATION The total cost of the 2004 waterfowl management program shall not exceed Thirty one thousand, five hundred dollars ($31,500). Each party shall contribute to the financial costs of the program as shown in Table I. SECTION V -TERM AND EXTENSION The Term of this Agreement is from January 1,2004 to December 31, 2004. This Agreement may be extended in time, scope or funding by mutual written consent from all parties referenced herein. SECTION VI- TERMINATION This agreement may be unilaterally terminated by any of the parties referenced herein or Wildlife Services upon presentation of written notice to the Oversight Committee at least 30 days in advance of the severance date shown in Section V. Should termination of this agreement occur without completion of the egg addling, each party shall pay only its' pro rata share of any expenses incurred under the agreement at the date of the termination, and each party shall receive copies of all products resulting from the addling activities up to the time of the termination. SECTION VII- DELIVERABLE Wildlife Services will make every effort to conduct a 1,000-2,000 egg addling program. Field conditions or changing conditions may increase or decrease these numbers. Lethal control will be implemented as necessary and the total numbers are established by the U.S. Fish and Wildlife Service Permit. Participants will receive a report on the number of eggs addled and geese euthanized in 2004. 4 35 SECTION VIII-FILING As provided by RCW 39.34.040, this agreement shall be filed prior to its entry and force "th the City or County Clerks of the participating parties, the County Auditor and the Secretary of State, and, if found to be necessary,with the State Office of Community Affairs as provided by RCW 39.34.120. SECTION LY - LIABILITY Each party to this agreement shall be responsible for damage to person or property resulting from the negligence on the part of itself, its employees, its agents or its officers. No party assumes any responsibility to another party for the consequences of any act or omission of any person, firm,or corporation not at party to this agreement. i 5 36 EXHIBIT A j WATERFOWL MANAGEMENT COMMITTEE PARTICIPANTS Cityof Bellevue................................................................................................................ Pat Harris City of Federal Way......................................... ................................. ....Kurt Reuter Cityof Kent........................ ........................................... ...................Rick Weiss City of Kirkland.............................................. .......... .......... .. ................ ...... .........Mark Johnston City of Mercer Island............................... ...................................... ..............................Greg Brown City of Mountlake Terrace......... ............. ...................................................................Don Sarcletti City of Redmond.........................................................................................................Teresa Kluver City of Renton........................................................ .... ...........................................Terrence Flatley City of Seattle Department of Parks and Recreation.... ....................................... . Barbara DeCaro City of Seattle Department of Public Utilities......... .......... .....................................Mike Bonoff City of Woodinville..............................................................................Brian Meyer University of Washington...... ..................... ......... . .. ................Charles Easterb berg U.S.D.A. Wildlife Services....................................... ... ...................... ....Mike Linnel U.S.D.I. Fish and Wildlife Service...............................................................................BradBortner 6 37 TABLE AGENCIES CONTRIBUTIONS City of Bellevue 2410 City of Federal Way 2410 City of Kent 2410 City of Kirkland 2410 City of Mercer Island 2410 City of Mountlake Terrace 2410 City of Redmond 2410 City of Renton 2410 City of Woodinville 2410 Seattle Department of Parks and 3700 Recreation Seattle Public Utilities 3700 University of Washington 2410 TOTAL $31,500 All checks will be made payable to the USDA-APHIS-ADC, earmarked for the Wildlife Services and sent to the following addresses: Mr.Roger Woodruff State Director-Wildlife Services Program U.S.Department of Agriculture 720 O Leary Street Northwest Olympia,Washington 98502 (360)753-9884 In case of procedural questions regarding this project,please contact: Maggie Rayls,Administrative Officer Wildlife Services Program (360)753-9884 FAX: 753-9466 For questions regarding implementation of control measures and census,please contact. Keel Price (360) 337-2779 SECTION X. - SEVERABILITY If any section of this agreement is adjudicated to be invalid, such action shall not affect the validity of any section so adjudged. 7 38 This agreement shall be executed on behalf of each party by its authorized representative. It shall be deemed adopted upon the date of execution by the last so authorized representative. This agreement is approved and entered into by the undersigned county and local government units, university and other private parties. City of Bellevue City of Renton By By: Patrick Foran,Director of Parks and Community Jesse Tanner,Mayor Services Date. Date City of Federal Way City of SeaTac By: By- Jennifer Schroder,Director of Parks,Recreation and Calvin Hoggart,City Manager Cultural Sevices Date: Date: City of Kent City of Woodinville By: By: John Hodgson,Director Donald D.Rose,City Manager_ Date. Date: City of Kirkland King County By: By: David Ramsey, City Manager Craig Larsen,Director of Date: King County Parks System Date. City of Mercer Island Seattle Department of Parks and Recreation By: By: Rich Conrad,City Manager Kenneth R Bounds,Superintendent Date: Date: Seattle Public Utilities City of Mountlake Terrace By _ By Chuck Clark,Managing Director Name/Title: Date: Date: City of Redmond University of Washington By, By. — Rosemarie Ives,Mayor Karen VanDusen Date: Director of Env.Health&Safety Date: 8 Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: INTERAGENCY COMMITTEE GRANT APPLICATION RESOLUTIONS—ADOPT 2. SUMMARY STATEMENT: Adoption of Resolution Nos. , , and , authorizing application to the Interagency Committee for Outdoor Recreation to fund the development of West Hill Park, Eagle Creek Park, Riverview Park, Lake Meridian Park Boat Launch, Canterbury Neighborhood Park, and Clark Lake Property Acquisition. 3. EXHIBITS: Resolutions 4. RECOMMENDED BY: Parks and Human Services (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6S 41 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 state funding assistance for a Boating Facilities Program ("BFP") as provided in Ch. 79A 25 RCW. RECITALS A. The City of Kent has approved a comprehensive plan that includes the Lake Meridian Park Boat Launch development project. B Under the provisions of the ALEA program, state funding assistance has been requested to aid in financing the development cost of the Lake Meridian Park boat launch. C The City of Kent considers it in the best public interest to complete the development project described in the application in order to develop the Lake Meridian Park boat launch NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS 1 /AC Resolution— Lake Meridian Park Boat Launch 42 RESOLUTION SECTION 1. - Application. The City's director of Parks, Recreation, and Community Services is authorized to make formal application to IAC for funding assistance SECTION 2. - Use of Funds. Any funding assistance received will be used for the implementation of the project referenced above, which is the development of the Lake Meridian Park boat launch. SECTION 3. - Non-cash Commitments. The City of Kent acknowledges that it is responsible for supporting all non-cash commitments to the sponsor share should they not materialize. SECTION 4. - Use Retained in Perpetuity 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 and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent and IAC SECTION 5. - Resolution - Part of Application. This resolution may become part of a formal application to IAC. SECTION 6. - Public Comment The City of Kent provided opportunity for public comment on this application at a Parks Committee public meeting on February 19, 2004. SECTION 7. - 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 2 IAC Resolution— Lake Meridian Park Boat Launch 43 SECTION 8. - Ratification Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed SECT/ON 9. - 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 2004 CONCURRED in by the Mayor of the City of Kent this _ day of JIM WHITE, MAYOR ATTEST• BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM. TOM BRUBAKER, 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 , 2004. BRENDA JACOBER, CITY CLERK n ro.naEsowno�nca.w,.u..avroao®aa+a eo. 3 /AC Resofution- Lake Meridian Park Boat Launch 44 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 state funding assistance for a Washington Wildlife and Recreation Program ("WWRP") as provided in Ch. 79A 15 RCW. RECITALS A The City of Kent has approved a comprehensive plan that includes the West Hilt Park development project. B. Under the provisions of the WWRP, state funding assistance has been requested to aid in financing the development cost of the West Hill Park C. The City of Kent considers it in the best public interest to complete the development project described in the application in order to develop the West Hill Park area. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: 1 IAC Resolution- t West Hill Park Development 45 RESOLUTION SECTION I. — Application. The City's director of Parks, Recreation, and Community Services is authorized to make formal application to IAC for funding assistance. SECTION 2. — Use of Funds. Any funding assistance received will be used for the implementation of the project referenced above, which is the development of the West Hill Park area. SECTION 3. —Non-cash Commitments. The City of Kent acknowledges that it is responsible for supporting all non-cash commitments to the sponsor share should they not materialize. SECTION 4. — Use Retained in Perpetuity. 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 and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent and IAC. SECTION 5. — Resolution — Part of Application. This resolution may become part of a formal application to IAC. SECTION 6. — Public Comment The City of Kent provided opportunity for public comment on this application at a Parks Committee public meeting on February 19, 2004. SECTION 7. — Severabilrty. 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. 2 IAC Resolution— West Hill Park Development 46 SECTION 8. — Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 9. — 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 Cit�t of Kent, Washington, this day of , 2004. CONCURRED in by the Mayor of the City of Kent this day of JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, 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 , 2004. BRENDA JACOBER, CITY CLERK P Y]NlHF.9IX.V IIpNACAerWeNYYPoh.6x 3 fA C Resolution— West Hill Park Development 0 47 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 federal funding assistance for a Land and Water Conservation Fund ("LWCF") program as provided in the LWCF Act of 1965, as amended and codified at USC §§ 4601, et seq. RECITALS A. The City of Kent has approved a comprehensive plan that includes the Clark Lake Park area. B. Under the provisions of the LWCF, federal funding assistance has been requested to aid in financing the cost of the land acquisition in order to expand the Clark Lake Park area. C. The City of Kent considers it in the best public interest to complete the land acquisition project described in the application in order to expand the Clark Lake Park area. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: 1 lAC Resolution-Clark Lake Park Lake Property Acquisition 48 i RESOLUTION SECTION 1. — Application. The City's director of Parks, Recreation, and Community Services is authorized to make formal application to IAC for funding assistance. SECTION 2. — Use of Funds. Any funding assistance received will be used for the implementation of the project referenced above, which is the acquisition of additional land in order to expand the current Clark Lake Park area. SECTION 3. —Non-cash Commitments. The City of Kent acknowledges that it is responsible for supporting all non-cash commitments to the sponsor share should they not materialize. SECTION 4.— Use Retained in Perpetuity. The City of Kent acknowledges that any property acquired with IAC financial aid must be placed in use as an outdoor recreation facility and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent, IAC, and the National Park Service. SECTION 5. — Resolution — Part of Application. This resolution may become part of a formal application to IAC. SECTION 6. — Public Comment. The City of Kent provided opportunity for public comment on this application on October 29, 1998: July 31, 2000; and March 12,2003. Another opportunity for public comment was given at a Parks Committee public meeting on May 12, 2003. SECTION 7. — Federal Laws. The City of Kent acknowledges that LWCF grants are federal funds and, as such, the City of Kent must comply with all applicable federal laws. 2 IAC Resolution—Clark Lake Park Lake Property Acquisition 49 SECTION 8. - 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 9. - Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed SECTION 10. - 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 12004. CONCURRED in by the Mayor of the City of Kent this day of JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM- TOM BRUBAKER CITY ATTORNEY 3 IAC Resolution-Clark Lake Park Lake Property Acquisition 50 1 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 . 2004. BRENDA JACOBER, CITY CLERK P�hME6plfilQfY.GAn1]itXlaksParklaM%YWhAbn Oac l 4 IAC Resolution-Clark Lake Park Lake Property Acquisition 51 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 state funding assistance for a Washington Wildlife and Recreation Program ("WWRP"), as provided in Ch. 79A.15 RCW. RECITALS A. The City of Kent has approved a comprehensive plan that includes the Eagle Creek Park development project. B. Under the provisions of the WWRP, state funding assistance has been requested to aid in financing the development cost of the Eagle Creek Park. C. The City of Kent considers it in the best public interest to complete the development project described in the application in order to develop the Eagle Creek Park area. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: 1 IA Resolution— Eagle Creek Park Development 52 RESOLUTION SECTION 1. — Application. The City's director of Parks, Recreation, and Community Services is authorized to make formal application to IAC for funding assistance. SECTION Z — Use of Funds. Any funding assistance received will be used for the implementation of the project referenced above, which is the development of the Eagle Creek Park area. SECTION 3. — Non-cash Commitments. The Cityof Kent acknowledges that it 9 is responsible for supporting all non-cash commitments to the sponsor share should d they not materialize. SECTION 4. — Use Retained in Perpetuity. 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 and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent and IAC. SECTION 5. — Resolution — Part of Application. This resolution may become part of a formal application to IAC. SECTION 6. — Public Comment. The City of Kent provided opportunity for public comment on this application at a Parks Committee public meeting on February 19, 2004. SECTION 7. — Severabdity. 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. 2 IAC Resolution— Eagle Creek Park Development 53 SECTION 8. — Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed SECTION 9. — 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 2004. CONCURRED in by the Mayor of the City of Kent this day of JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, 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 , 2004. I BRENDA JACOBER, CITY CLERK r,uww[saurax.c.w.e.w.cr..xv.n.mc 3 /AC Resolution— Eagle Creek Park Development 54 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 federal funding assistance for a Land and Water Conservation Fund ("LWCF") program as provided in the LWCF Act of 1965, as amended and codified at USC §§ 4601, et seq. RECITALS A. The City of Kent has approved a comprehensive plan that includes the Canterbury Neighborhood Park development project. B. Under the provisions of the LWCF, federal funding assistance has been requested to aid in financing the cost of the land acquisition in order to expand the Canterbury Neighborhood Park area. C. The City of Kent considers it in the best public interest to complete the land acquisition project described in the application in order to expand the Canterbury Neighborhood Park area. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS; 1 IAC Resolution Canterbury Neighborhood Park- Andreola Property Acquisition 55 RESOLUTION SECTION 1. — Application. The City's director of Parks, Recreation, and Community Services is authorized to make formal application to IAC for funding assistance SECTION 2. — Use of Funds. Any funding assistance received will be used for the implementation of the project referenced above, which is the acquisition of additional land in order to expand the current Canterbury Neighborhood Park area. SECTION 3. — Non-cash Commitments. The City of Kent acknowledges that it is responsible for supporting all non-cash commitments to the sponsor share should they not materialize. SECTION 4. — Use Retained in Perpetuity. The City of Kent acknowledges that any property acquired with IAC financial aid must be placed in use as an outdoor recreation facility and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent, IAC, and the National Park Service. SECTION 5. — Resolution — Part of Application. This resolution may become part of a formal application to IAC. SECTION 6. — Public Comment. The City of Kent provided opportunity for public comment on this application at a Parks Committee public meeting on February 19, 2004. SECTION 7. — Federal Laws. The City of Kent acknowledges that LWCF grants are federal funds and, as such, the City of Kent must comply with all applicable federal laws SECTION 8. — Severabrlity. If any section, subsection, paragraph, sentence, clause or phrase of this resolution is declared unconstitutional or invalid for any 2 1AC Resolution Canterbury Neighborhood Park- Andreola Property Acquisition 56 reason, such decision shall not affect the validity of the remaining portions of this resolution SECTION 9. — Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 10. — 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 . 2004. CONCURRED in by the Mayor of the City of Kent this day of JIM WHITE, MAYOR 10 ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY 3 IAC Resolution Canterbury Neighborhood Park- Andreola Property Acquisition 57 1 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 12004. BRENDA JACOBER, CITY CLERK 4 [AC Resolution Canterbury Neighborhood Park- Andreola Property Acquisition 58 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 state funding assistance for an Aquatic Lands Enhancement Account ("ALEA") program as provided in RCW 79.90.245. RECITALS A. The City of Kent has approved a comprehensive plan that includes the Riverview Park development project. B. Under the provisions of the ALEA program, state funding assistance has been requested to aid in financing the development cost of the Riverview Park area. C. The City of Kent considers it in the best public interest to complete the development project described in the application in order to develop the Riverview Park area. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: 1 /AC Resolution— Riverview Park Development 59 RESOLUTION SECTION 1. — Application. The City's director of Parks, Recreation, and Community Services is authorized to make formal application to IAC for funding assistance. SECTION 2. — Use of Funds. Any funding assistance received will be used for the implementation of the project referenced above, which is the development of the Riverview Park area. SECTION 3. — Non-cash Commitments. The City of Kent acknowledges that it is responsible for supporting all non-cash commitments to the sponsor share should they not materialize. SECTION 4. — Use Retained in Perpetuity. 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 and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent and IAC. SECTION 5. — Resolution — Part of Application. This resolution may become part of a formal application to IAC. SECTION 6. — Public Comment. The City of Kent provided opportunity for public comment on this application at a Parks Committee public meeting on February 19, 2004. SECTION 7. — 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. 2 IAC Resolution— Riverview Park Development 60 SECTION S. — Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 9. — 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 , 2004. CONCURRED in by the Mayor of the City of Kent this day of JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, 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 , 2004. BRENDA JACOBER, CITY CLERK A IgMRESCLUI10NaAl HpA1.sNnPwFO.wkpTarc.C¢ 3 /AC Resolution— Riverview Park Development • Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: REDISTRIBUTION OF 1996-2001 WORKING TOGETHER FEDERAL DRUG ELIMINATION GRANT FUNDS—AUTHORIZE 2. SUMMARY STATEMENT: An existing budget balance carryover will be moved from 1996-2001 Working Together Federal Drug Elimination grant to General Fund accounts and a Criminal Justice Fund account. A large portion of this carryover will cover the costs of replacement vests for all police officers. 3. EXHIBITS: Explanation and Request for Redistribution 4. RECOMMENDED BY: Public Safety Committee 4/15/04 (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6T POLICE DEPARTMENT \ Ed Crawford, Chief of Police v Phone KENT Fax 253-856-6802 WASMINGTON Address 220 Fourth Avenue S Kent,WA 98032-5895 DATE: April 15, 2004 TO: Public Safety Committee FROM: Chief Ed Crawford SUBJECT: Request authorization for redistribution of 1996-2001 Working Together Federal Drug Elimination grant funds from N00201 project. MOTION: I move to recommend authorizing the redistribution of grant funds in the amount of $54,738.00 from the N00201 project to the General fund and the Criminal Justice fund and to place this on the Consent Calendar for the May 4, 2004 Consent Calendar. SUMMARY: The remaining balance of funds in the N00201 project are no longer necessary as the account will be closed out. These funds were set up in the police budget for projected costs with the Sprmgwood project The funds will now be used to provide replacement vests for all police officers EXHIBITS: Budget Balance Carryover Explanation and Request for Redistribution BUDGET IMPACT None BACKGROUND: Public Safety Committee Redistribution-Vests April 15,2004 Kent Police Department 1996-2001 Working Together Federal Drug Elimination Grant Budget Balance Carryover Explanation and Request for Redistribution Federal Grant Federal share City share Grant Year amount carryover City share carryover 1996-97 $ 148,228.00 0 $ 7,224.00 $ 5,108.00 1997-98 $ 84,452.00 0 $ 5,862.00 $ 4,837.00 1998-99 $ 84,452.00 0 $ 12,257.00 $ 8,618.00 1999-2000 $ 84,452.00 0 $ 13,878.00 $ 12,536.00 2000-2001 $ 84,452.00 0 $ 15,277.00 $ 11,672.00 2001-2002 $ 86,985.00 0 $ 13,447.00 $ 11,967.00 Carryover from N009DI $54,738.00 Request distribution of City Share carryover to Division Budget Desc. Account No. Purpose Amount Patrol Uniforms/Clothing 10002331.63130.3300 Vest replacement $ 35,000.00 Patrol Uniforms/Clothing 16002331.63130.3300 Vest replacement $ 2,000.00 Patrol/SRT Uniforms/Clothing 10002331.63130.3330 Vest replacement $ 5,000.00 Patrol Sal - Reg Full time 10002331.61100.3300 Salaries $ 12,738.00 Total request for redistribution $54,738.00 Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: COUNTYWIDE PLANNING POLICIES, AUBURN AS URBAN CENTER, AMENDMENT RESOLUTION—ADOPT 2. SUMMARY STATEMENT: Adoption of Resolution No. ratifying the proposed amendment to the Countywide Planning Polices to designate downtown Auburn as an Urban Center. The Planning & Economic Development Committee recommends ratification of the amendment on behalf of the City of Kent. 3. EXHIBITS: Resolution, 4/12/04 staff memo to Planning & Economic Development Committee, King County Ordinance No. 14844, and Growth Management Planning Council Motion No. 03-2 4. RECOMMENDED BY: Planning and Economic Development Committee (3-0) (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? No Revenue? No Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6U 10 RESOLUTION NO. A RESOLUTION of the City Council of Kent, Washington, regarding King County Countywide Planning Policies adopted by the Metropolitan King County Council pursuant to the Growth Management Act. RECITALS A. Pursuant to RCW 36.70A 210, the Growth Management Act requires the adoption of Countywide Planning Policies to provide a countywide framework from which local comprehensive plans are to be developed King County, the City of Seattle,and the incorporated suburban cities and towns in King County established a process for the development, adoption, and ratification of Countywide Planning Policies by an mterlocal agreement. This agreement established the Growth Management Planning Council (GMPC), a group consisting of elected officials from King County, suburban cities,and the City of Seattle,who were authorized to develop a set of recommended countywide planning policies for consideration by the King County Council B. The GMPC met on September 17,2003,and voted to pass an amendment to the Countywide Planning Policies to designate downtown Auburn (the Auburn Central Business District) as an Urban Center (GMPC Motion 03-2). The King County Council approved and ratified this amendment on behalf of King County on March 8, 2004,pursuant to King County Ordinance 14844. The Kent Planning & Economic Development Committee reviewed this amendments at its meeting on April 19, 2004 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: 1 Countywide Planning Policy Amendments-2004 i RESOLUTION SECTION 1. The City of Kent, acting pursuant to the mterlocal agreement among King County, the City of Seattle, and incorporated suburban cities, hereby ratifies the proposed amendment to the Countywide Planning Polices as adopted by the Metropolitan King County Council in King County Ordinance 14844 SECTION 2. The amendments to the Countywide Planning Policies adopted herein shall be filed with the City Clerk and in the planning services office and made available for public inspection. Passed at a regular meeting of the City Council of the City of Kent,Washington this day of 2004. Concurred in by the Mayor of the City of Kent, this day of 2004. JIM WHITE, MAYOR ATTEST. BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM. TOM BRUBAKER, CITY ATTORNEY I 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 , 2004. (SEAL) BRENDA JACOBER, CITY CLERK P kCimilRe olutim\CountymdePlammngPohcyAmend-2004 doc 2 Countywide Planning Policy Amendments-2004 COMMUNITY DEVELOPMENT Fred N Satterstrom, AICP, Director • PLANNING SERVICES KEN T Charlene Anderson,AICP, Manager Phone 253-856-5454 Fax- 253-856-6454 Address 220 Fourth Avenue S Kent, WA 98032-5895 DATE: APRIL 12,2004 TO: CHAIR TIM CLARK AND PLANNING & ECONOMIC DEVELOPMENT COMMITTEE MEMBERS FROM: CHARLENE ANDERSON,AICP,PLANNING MANAGER THROUGH: MAYOR JIM WHITE SUBJECT: COUNTYWIDE PLANNING POLICIES -AMENDMENT KING COUNTY COUNCIL ORDINANCE#14844-AUBURN AS URBAN CENTER TION: I move to recommend/not recommend ratification of an amendment to the Countywide Planning Policies designating Downtown Auburn as an Urban Center, approved under GMPC Motion No 03-2, and to forward to the Full City Council for final action SUMMARY: The adoption of countywide planning policies is required under the State Growth Management Act (GMA), pursuant to RCW 36 70A 210 The Countywide Planning Policies (CPPs) provide a framework for Kent and other cities in King County to conduct planning under the requirements of GMA This framework ensures that city and county comprehensive plans are consistent On March 8a', the King County Council approved and ratified an amendment that had been approved by the Growth Management Planning Council (GMPC) designating Downtown Auburn as an Urban Center Now the amendment is presented to jurisdictions in King County for ratification BUDGET IMPACT: None BACKGROUND: The Cityof Kent ratified the original CPPs on September 15 1992, with Resolution P , No 1326 and ratified Phase II amendments to the CPPs on November 16, 1994 Over the years, the City has ratified other proposed amendments Through the Growth Management Planning Council (GMPC), jurisdictions within King County work together to plan for economic and population growth in King County,including consideration of CPPs The Countywide Planning Policies become effective when ratified by ordinance or resolution of at least 30 percent of the city and county governments representing 70 percent of the population of King County according to the established Interlocal Agreement A city will be deemed to have ratified the amendments to the Countywide Planning Policies unless the city takes legislative action to disapprove the amendments within 90 days of adoption by King County GMPC Motion No. 03-2 to amend the CPPs by designating Downtown Auburn as an Urban Center was approved and ratified by the full County Council on March 8, 2004 The 90-day deadline for legislative action on the proposed amendment is June 7,2004 CA\pm S\Permit\PlanlCompPlanAmdments\Z0041cpppedc041904 doc Hne March 18,2004 letter from King County Council including Ordmance14844,GMPC Motion No 03-2,and Revised King County Staff Report 42004-0033 cc Fred N Satterstrom,AICP,C D Director Charlene Anderson,Planning Manager KING COUNTY 1200 King County Courthousc 516 Thud Avcnue Seattle,WA 98104 Signature Report March 8, 2004 Ordinance 14844 Proposed No. 2004-0033.2 Sponsors Patterson and Hammond 1 AN ORDINANCE adopting amendments to the 2 Countywide Planning Policies; designating downtown 3 Auburn as an Urban Center;ratifying the amended 4 Countywide Planning Policies for unincorporated King 5 County; and amending Ordinance 10450, Section 3,as 6 amended,and K.C.C.20.10.030 and Ordinance 10450, 7 Section 4, as amended,and K.C.C.20.10.040. 8 9 10 BE IT ORDAINED BY THE COUNCIL OF KING COUNTY: 1 l SECTION 1. Findings. The council makes the following findings: 12 A. The metropolitan King County council adopted and ratified the Growth 13 Management Planning Council recommended King County 2012-Countywide Planning 14 Policies (Phase I)in July 1992,under Ordinance 10450. 15 B. The metropolitan King County council adopted and ratified the Phase II 16 amendments to the Countywide Planning Policies on August 15,1994,under Ordinance 17 11446. 1 Ordinance 14W 18 C. The Growth Management Planning Council met on September 17, 2003; and 19 voted to recommend amendments to the King County 2012-Countywide Planning 20 Policies, designating downtown Auburn as an Urban Center. 21 SECTION 2. Ordinance 10450, Section 3,as amended, and K.C.C.20.10.030 are 22 each hereby amended to read as follows: 23 Phase 11. 24 A. The Phase 11 Amendments to the King County 2012 Countywide Planning 25 Policies attached to Ordinance 11446 are hereby approved and adopted. 26 B. The Phase II Amendments to the King County 2012-Countywide Planning 27 Policies are amended,as shown by Attachment 1 to Ordinance 12027. 28 C. The Phase 1I Amendments to the King County 2012-Countywide Planning 29 Policies are amended,as shown by Attachment I to Ordinance 12421. 30 D. The Phase 11 Amendments to the King County 2012- Countywide Planning 31 Policies are amended,as shown by Attachments 1 and 2 to Ordinance 13260. 32 E. The Phase II Amendments to the King County 2012 -Countywide Planning 33 Policies are amended,as shown by Attachments 1 through 4 to Ordinance 13415, 34 F. The Phase II Amendments to the King County 2012-Countywide Planning 35 Policies are amended,as shown by Attachments I through 3 to Ordinance 13858. 36 G. The Phase II Amendments to the King County 2012—Countywide Planning 37 Policies are amended,as shown by Attachment 1 to Ordinance 14390. 38 H. The Phase II Amendments to the King County 2012—Countywide Planning 39 Policies are amended,as shown by Attachment 1 to Ordinance 14391. 2 it Ordinance14844 40 I. The Phase 11 Amendments to the King County 2012—Countywide Planning 41 Policies are amended, as shown by Attachment 1 to Ordinance 14392. 42 J. The Phase II Amendments to the King County 2012- Countywide Planning 43 Policies are amended, as shown by Attachment 1 to Ordinance 14652. 44 K. The Phase 11 Amendments to the King County 2012 -Countywide Planning 45 Policies are amended,as shown by Attachments 1 through 3 to Ordinance 14653. 46 L. The Phase H Amendments to the King County 2012-Countywide Planning 47 Policies are amended, as shown by Attachment 1 to Ordinance 14654. 48 M. The Phase II Amendments to the King County 2012-Countywide Planning 49 Policies are amended, as shown by Attachment 1 to Ordinance 14655. 50 N. The Phase lI Amendments to the King County 2012 -Countywide Planning 51 Policies are amended, as shown by Attachments 1 and 2 to Ordinance 14656. 52 O. The Phase 11 Amendments to the King County 2012-Countnide Planning 53 Policies are amended, as shown by Attachment A to this ordinance. 54 SECTION 3. Ordinance 10450,Section 4,as amended,and K.C.C. 20.10.040 are 55 each hereby amended to read as follows: 56 Ratification for unincorporated King County. 57 A. Countywide Planning Policies adopted by Ordinance 10450 for the purposes 58 specified are hereby ratified on behalf of the population of unincorporated King County. 59 B. The amendments to the Countywide Planning Policies adopted by Ordinance 60 10840 are hereby ratified on behalf of the population of unincorporated King County. 61 C. The amendments to the Countywide PIanning Policies adopted by Ordinance 62 11061 are hereby ratified on behalf of the population of unincorporated King County. 3 Ordinance 14844 63 D- The Phase II amendments to the King County 2012 Countywide Planning 64 Policies adopted by Ordinance 11446 are hereby ratified on behalf of the population of 65 unincorporated King County. 66 E. The amendments to the King County 2012-Countywide Planning Policies,as 67 shown by Attachment I to Ordinance 12027 are hereby ratified on behalf of the 68 population of unincorporated King County. 69 F. The amendments to the King County 2012-Countywide Planning Policies,as 70 shown by Attachment 1 to Ordinance 12421, are hereby ratified on behalf of the 71 population of unincorporated King County. 72 G. The amendments to the King County 2012-Countywide Planning Policies, as 73 shown by Attachments I and 2 to Ordinance 13260,are hereby ratified on behalf of the 74 population of unincorporated King County. 75 H. The amendments to the King County 2012-Countywide Planning Policies,as 76 shown by Attachment I through 4 to Ordinance 13415,are hereby ratified on behalf of 77 the population of unincorporated King County. 78 I. The amendments to the King County 2012-Countywide Planning Policies, as 79 shown by Attachments 1 through 3 to Ordinance 13858,are hereby ratified on behalf of 80 the population of unincorporated King County. 81 1 The amendments to the King County 2012-Countywide Planning Policies,as 82 shown by Attachment 1 to Ordinance 14390, are hereby ratified on behalf of the 83 population of unincorporated King County. 4 Ordinance14844 84 K. The amendments to the King County 2012 -Countywide Planning Policies,as 85 shown by Attachment 1 to Ordinance 14391,are hereby ratified on behalf of the 86 population of unincorporated King County. 87 L. The amendments to the King County 2012-Countywide Planning Policies, as 88 shown by Attachment 1 to Ordinance 14392,are hereby ratified on behalf of the 89 population of unincorporated King County. 90 M. The amendments to the King County 2012 - Countywide Planning Policies, as 91 shown by Attachment 1 to Ordinance 14652,are hereby ratified on behalf of the 92 population of unincorporated King County. 93 N. The amendments to the King County 2012-Countywide Planning Policies,as 94 shown by Attachments 1 through 3 to Ordinance 14653, are hereby ratified on behalf of 95 the population of unincorporated King County. 96 O. The amendments to the King County 2012-Countywide Planning Policies,as 97 shown by Attachment 1 to Ordinance 14654,are hereby ratified on behalf of the 98 population of unincorporated King County. 99 P. The amendments to the King County 2012- Countywide Planning Policies,as 100 shown by Attachment 1 to Ordinance 14655,are hereby ratified on behalf of the 101 population of unincorporated King County. 102 Q. The amendments to the King County 2012-Countywide Planning Policies,as 103 shown by Attachments I and 2 to Ordinance 14656, are hereby ratified on behalf of the 104 population of unincorporated King County. 5 Ordinance14844 105 R. The amendments to the King,County 2012-Countywide Planning Policies,as 106 shown by Attachment A to this ordinance, are hereby ratified on behalf of the population 107 of unincorporated King County. 108 Ordinance 14844 was introduced on 1/20/2004 and passed by the Metropolitan King County Council on 3/8/2004,by the following vote: Yes: 12 -Mr. Phillips,Ms.Edmonds,Mr.von Reichbauer,Ms.Lambert,Mr. McKenna,Mr.Ferguson,Mr.Hammond,Mr. Gossett,Ms. Hague,Mr. Irons, Ms. Patterson and Mr. Constantine No: 0 Excused: 1 -Mr.Pelz KING COUNTY COUNCIL KING COUNTY,WASHINGTON Larry Philli ,Chair ATTEST: Anne Noris,Clerk of the Council APPROVED this C day of ! ' 2004. Ron Sims,County Executive 75 o . � s aC-) -zm 00 M Attachments A.GMPC Motion No.03-2 -v o s rn 6 14844 Attachment A . September 17,2003 Sponsored By: Executive Committee I MOTION NO. 03-2 2 A MOTION to amend the Countywide Planning Policies by 3 designating Downtown Auburn (the Auburn Central Business 4 District) as an Urban Center. Downtown Auburn is added to 5 the list of Urban Centers following Countywide Planning 6 Policy LU-39. 7 8 9 WHEREAS, A goal of the Growth Management Act is to encourage development in Urban 10 Areas where adequate public facilities exist or can be provided in an efficient manner; 11 12 WHEREAS, Policy LU-39 of the Countywide Planning Policies of King County describes 13 the criteria for Urban Center designation; 14 15 WHEREAS, Policy LU-40 of the Countywide Planning Policies of King County describes 16 standards for planned land uses within Urban Centers; 17 18 WHEREAS, the City of Auburn has demonstrated that Downtown Auburn meets the 19 criteria for designation as an Urban Center, and 20 21 WHEREAS, King County Comprehensive Plan Policy U-106 supports the development of 22 Urban Centers to meet the region's needs for housing, jobs, services, culture and 23 recreation. 24 25 26 27 28 29 30 31 32 33 14844 Attachment A 1 2 3 4 TIC GROWTH MANAGEMENT PLANNING COUNCIL OF KING COUNTY 5 HEREBY MOVES AS FOLLOWS: 6 7 Downtown Auburn is designated as an Urban Center. The list of Urban Centers following 8 Countywide Planning Policy LU-39 is modified to include Downtown Auburn. 9 10 ADOPTED by the Growth Management Planning Council of King County on 11 September 17,2003 in open session. 12 13 14 15 16 17 18 19 20 Ron Sims,Chair,Growth Management Planning Council I Metropolitan King County Council Growth Management and Unincorporated Areas Committee Revised Staff Report Agenda Item: Name: Lauren Smith Proposed Ordinance: 2004-0033 Date: SUBJECT: The Growth Management Planning Council recommends amending the Countywide Planning Policies by designating downtown Auburn as an Urban Center. Proposed Ordinance 2004-0033 would adopt this amendment, and ratify the amended Countywide Planning Policies on behalf of unincorporated King County. BACKGROUND: The Growth Management Planning Council and Countywide Planning Policies The Growth Management Planning Council(GMPC)is a formal body comprised of elected officials from King County, Seattle, Bellevue, the Suburban Cities,and Special Districts. The GMPC was created in 1990 in response to a provision in the Washington State Growth Management Act(GMA) requiring cities and counties to work together to adopt Countywide Planning Policies(CPPs). Under GMA, countywide planning policies serve as the framework for each individual jurisdiction's comprehensive plan, and ensure countywide consistency with respect to land use planning efforts. The GMPC drafted the CPPs, which were then adopted by the King County Council and ratified by the cities- Subsequent amendments to the CPPs are recommended by the GMPC, adopted by the King County Council, and ratified by the cities. They become effective when ratified by ordinance or resolution by at least 30% of the city and county governments representing 70% of the population of King County. A city shall be deemed to have ratified an amendment to the countywide planning policies unless,within 90 days of adoption by King County, the city by legislative action disapproves it. The City of Auburn's Request to become an Urban Center In 2003, the City of Auburn requested that its downtown core be designated as an Urban Center in the Countywide Planning Policies. Urban Centers are envisioned in the CPPs as areas of concentrated employment and housing,with direct service by high-capacity transit, and a wide range of other land uses. They are expected to account for up to one half of King County's employment growth and one quarter of hoysehold growth over the next 20 years. Designating Auburn's central business district as an Urban Center would involve amending Countywide Planning Policy LU-39 to add it to the list of existing Urban Centers, which currently includes: f Bellevue s Kirkland + Seattle(5) Kent r Redmond (2) Tukwila Federal Way r Renton C IDOCUME—t�Pedrozme�LOCM.S-71TmpVegtemplzBW aoc 2J7712GW 333PM Urban Center Requirements In order to be designated as an Urban Center,jurisdictions must meet specific criteria in the Countywide Planning Policies, including having planned land uses to accommodate: :• A minimum of 15,000 jobs within one-half mile of a transit center, s At a minimum, an average of 50 employees per gross acre; and At a minimum, an average of 15 households per acre. In addition to these requirements, Policy LU-40 states that fully realized Urban Centers shall be characterized by the following: Clearly defined geographic boundaries; An intensity/density of land uses sufficient to support effective and rapid transit; Pedestrian emphasis within the Center, a Emphasis on superior urban design which reflects the local community; a Limitations on single-occupancy vehicle usage during peak commute hours; > A broad array of land uses and choices within those land uses for employees and residents; s Sufficient public open spaces and recreational opportunities; and I Uses which provide both daytime and nighttime activities in the Center. City of Auburn's Existing and Planned Conditions The existing conditions in Auburn's proposed Urban Center are as follows. 6,000 jobs within one-half mile of a transit center; An average of 14 employees per gross acre; and s An average of less than 1 household per acre. The Countywide Planning Policies recognize that Urban Centers vary substantially in the number of households and jobs they contain at the time of their initial designation, and thus the decision to designate an Urban Center is based on planned, not existing, densities. A jurisdiction shows its commitment to realizing these densities through its comprehensive plan policies, a supportive regulatory environment and a commitment to provide adequate infrastructure. GMPC Recommendation The GMPC, through the unanimous adoption of Motion 03-2, has declared that the City of Auburn has demonstrated its commitment to developing a fully realized Urban Center as envisioned in the Countywide Planning Policies. Specific findings include: s The city has completed the necessary planning to support an Urban Center designation, including the adoption of a new downtown plan in 2001. a Auburn's new downtown plan supports increased transit-oriented development, pedestrian amenities and strong urban design, and a commitment to eliminating automobile oriented uses in the downtown area. > Auburn is the site of a major transit hub,which is the centerpiece of approximately$67 million in public works investments in the downtown core. Recent zoning code amendments include the removal of building height limitations in the Urban Center, and reduced parking requirements for uses close to the transit center. C_1DOCUME-flped o0a LOCALS-1tTeFW*gt"12&U Doc WTQ000 3 33 PM 1 Other comprehensive plan policies are in place to support transit use, pedestrian access, economic development, and urban design standards. SUMMARY: Proposed Ordinance 2004-0033 would amend the Countywide Planning Policies by. •s Adding downtown Auburn to the list of Urban Centers in Policy LU-39 Additionally, the ordinance would ratify the change on behalf of the population of unincorporated King County, as required by Countywide Planning Policy FW-1, Step 9. CAOOCUME-71PeMou LOCALS-1\TemPYegilempl2844doc 2/2712DO4 333PM Kent City Council Meeting Date May 4, 2004 Category Consent Calendar 1. SUBJECT: INTERNATIONAL BUILDING AND FIRE CODES - ORDINANCES AND RESOLUTION SETTING FEES -ADOPT 2. SUMMARY STATEMENT: Adoption of Ordinance Nos. and and Resolution No. which adopt and amend the International Building, Residential, Mechanical, and Fire Codes and the Uniform Plumbing Code with the City's local amendments to those codes, and the proposed fee schedules for those codes. Pursuant to a new state law, effective July 1, 2004, the 2003 editions of the above referenced codes will replace the prior Uniform Building, Mechanical, Fire, and Plumbing Codes as the building codes of the State of Washington. Accordingly, it is proper for the City to adopt those codes and to amend them for consistency with local code applications. 3. EXHIBITS: Ordinances, resolution, and memo to the Planning and Economic Development Committee, dated April 12, 2004 4. RECOMMENDED BY: Planning and Economic Development Committee (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? No Revenue? Yes Currently in the Budget? Yes No X If no: Unbudgeted Expense: Fund N/A Amount $ N/A Unbudgeted Revenue: Fund General Fund Amount $10,000 plus in 2004 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6V COMMUNITY DEVELOPMENT 4e"S�*, Fred N. Satterstrom, AICP, Director BUILDING SERVICES NT Robert Hutchinson, Manager KE WAS MIN OTON Phone:253-856-5401 Fax, 253-856-6421 Address 220 Fourth Avenue S Kent, WA 98032-5895 DATE: APRIL 12,2004 TO: CHAIR TIM CLARK AND PLANNING& ECONOMIC DEVELOPMENT COMMITTEE MEMBERS FROM: BOB HUTCHINSON,BUILDING OFFICIAL SUBJECT: BUILDING AND FIRE CODES ADOPTION AND AMENDMENTS MOTION: I move to recommend that the City Council enact ordinances adopting the International Building, Residential, Mechanical, and Fire Codes and the Uniform Plumbing Code, together with the City's local amendments to those codes, and that the Council adopt the proposed fees resolution for those codes, subject to final review and amendment by the City Attorney. SUMMARY: As discussed at this Committee's last meeting on March 15'h,the 2003 edition of the International Building, Residential,Fire and Mechanical Codes and the 2003 Uniform Plumbing Code, with statewide amendments, will replace the 1997 Uniform Budding,Fire and Mechanical Codes and the 2000 Uniform Plumbing Code, effective July I, 2004. Attached are a proposed ordinance to adopt and amend the new Fire Code(IFC);another proposed ordinance to adopt and amend the new Building, Residential, Mechanical and Plumbing Codes, and a proposed resolution to establish updated permit fees and related fees. BUDGET IMPACT: The fees resolution increases plumbing and mechanical permit and plan review fees by approximately 15%, resulting in a revenue increase projected to about $10,000 for the last half of 2004. Some additional revenue increase is likely from other increases, but is not projected to be substantial. BACKGROUND: As discussed at this Committee's last meeting on March 151",the replacement of the older editions of the Uniform Codes with the 2003 editions of the International Codes and Uniform Plumbing Code July 1, 2004 is mandated by the Chapter 19 27 of the Revised Code of Washington and Chapters 51-50, 51-51, 51-52, 51-54 and 51-57of the Washington Administrative Code.The attached proposed ordinances provide local amendments which retain many current administrative provisions including: • Administration of grading regulations and flood plain regulations by the Public Works Director, • Appeals being heard by the City's Hearings Examiner, • Building permit exemptions for accessory buildings being limited to 120 square feet, • Consistent code enforcement procedures and penalties, and • Establishment of fees by City Council resolution. In addition,many of the proposed local amendments incorporate stand-alone fire protection requirements currently contained in Kent City Code Title 13 into the International Fire Code. Many other changes incorporated in the proposed ordinances simply update various Kent City Code references from "Uniform" to"International'Codes. The proposed fee resolution updates current fees related to the building and fire codes by. • Retaining the current basis of assessing building permit plan review fees at 65% of permit fees, plumbing and mechanical plan review fees at 25%of the permit fees, • Increasing plan review fees for"basic"single-family residence designs for repetitive use from $50 to$64,reflecting cumulative inflation since they were last set in 1994, • Increasing hourly charges for plan review of revisions, inspections outside of business hours, reinspections,and hydrant flow requests from$75 to$86, reflecting cumulative inflation since the last adjustment in 1998, • Retaining the current building permit fee table without changes, since periodic staff updating of cost figures used to calculate valuation keep building permit fees reasonably current, • Retaining the current provision of an investigation fee equal to the amount of the permit fee when work is illegally commenced prior to obtaining required permits, • Retaining the current appeal filing fee of$200, and • Adjusting certain fire code fees to reflect inflation since the last adjustment in 1998,while retaining current fees for others and increasing some fire code fees to more fairly reflect relative costs of administration and enforcement. RDMpm S 1PermrilDs\l-Codes April Plan Comm doc cc Fred Satlerstrom,AICP, Community Development Director Planning Committee Meeting August 19,2003 Page 2 of 2 II I ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, amending, as of July 1, 2004, Title 14 of the Kent City Code to repeal the adoption of the 1997 edition of the Uniform Budding Code, the Uniform Mechanical Code, and the Uniform Plumbing Code; to adopt the 2003 edition of the International Building Code, International Residential Code, International Mechanical Code, and the Uniform Plumbing Code, as amended by the Washington State Building Code Council; and to make other housekeeping amendments to various Kent City Code provisions to reference the International Codes as opposed to the Uniform Codes. i { RECITALS i A. As set forth in Title 14 of the Kent City Code,the City has adopted various Washington state and uniform building codes. B Pursuant to Ch 19.27 RCW,the 2003 editions of the International Building Code, the International Residential Code, the International Mechanical Code, and the Uniform Plumbing Code, as adopted by the State of Washington, apply to all cities,I including the City of Kent, effective July 1, 2004; therefore, it is appropriate to amend the Kent City Code to formally adopt the same THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS. International Building Codes- 1 Adoption ORDINANCE SECTION 9. - Amendment. Chapter 14 01 of the Kent City Code, entitled Building Codes," is amended as follows: i CHAPTER 14.01 BUILDING CODES Sec. 14.01.010. Building codes - Adopted. In accordance with Ch 19 27 RCW,Tthe following codes, hereiRafte jcollectivelyy,refez�as the "building codes") together with any additions, deletions, and exceptions as-currently enacted or as may be and as amended from time to time by the State of Washington through its Building Code Council pursuant to the Washington Administrative Code "WAC" , and as further amended in this chapter, are hereby adopted by references feAewRs: A. The International Budding CodeUnifeFrn Building Code, 49972003 Edition, published by the International Code Council. Inc., as amended pursuant to Chapter 51-50 51-40-WAC B. The International Residential Code, 2003 Edition, published by the International Code Council. Inc , as amended pursuant to Ch 51-51 WAC s CB. The International Mechanical Code1JR1foFm MeGhaniGal Cede, 19972003 Edition, published by the IRterRational GGRfeFeFlGe of Bulldmg OffiGialsInternational Code t Council. Inc., as amended pursuant to Chapter 51-52 51-42 WAC. DC. The Uniform Plumbing Code, V4972003 Edition, published by the International ' Association of Plumbing and Mechanical Officials, as amended pursuant to Chapter 51-56 54-46 WAC and The Uniform Plumbing Code Standards i (Appendixces A, B. and I to the Uniform Plumbing Code), 1O97 Ed-tan, f amended puFsu +nf to Chapter 51 47 In/or published by the International I as amended pursuant to Chapter 51-57 WAC. ED. The Uniform Housing Code, 1997 Edition, published by the International Conference of Building Officials. F€. The Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition, published by the International Conference of Building Officials. GF. The Washington State Energy Code as written by the Washington State Building Code Council pursuant to Chapter 51-11 WAC. International Building Codes- 2 Adoption j HG. The Washington State Ventilation and Indoor Air Quality Code as written by the Washington State Building Code Council pursuant to Chapter 51-13 WAC. i One (1) copy of each of these codes is on file with the City's building official. Sec. 14.01.020. Code conflicts. To the extent allowed by RCW 19 27 040, if a conflict exists between the provisions of the state building codes adopted by the Washington State Budding Code Council and the provisions of Chapter 14 01 of the Kent City Code, the Kent City Code provisions shall govern Sec. 14.01.030020. Amendments to the International Building CodeUnifofm Building cede. The following local amendments to the International Buildinq Code ereviously adopted in KCC 14.01.0107 are hereby adopted and incorporated into the International Building Code A. General-Building code appendices adopted. Section 101 of the International Building Code, entitled "General." is amended by adding the following new subsection 101 5 i Sec. 101.5 Building code appendices adopted. Appendixces C and Jef to the URifo m Q— u Codelnternational Building Code, , are hereby adopted,- except „athowever, F the public works director ^f ^"+ I' rV Shall have the authority to enforce and interpret Appendix J Ghapter-� the Appendix of the N^ferm B u'Irl nn Cede 1997 Edition and accordingly,all references to the"building official"in Appendix ; J shall be substituted with the words "public works directo. pab! G works." B. Duties and powers of building official-Lot lines and setback lines. Section 104 of the International Building Code, entitled "Duties and Powers of Building Official " is amended by adding the following new subsection 104 12. Sec. 104.12 Lot lines and setback lines. Notwithstanding the authority of the building official to administer and enforce the budding code, the budding official shall have no duty to verify or establish lot lines or setback Imes. No such duty is created by this codeshapter, and none shall be implied. The s International Building Codes- 3 Adoption the app"GanVoww. C. Permits - Expiration of project permit application. 1. Section 105 of the International Building Code, entitled "Permits," is amended bV substituting subsection 105.3.2 with the following: Sec. 105.3.2 Expiration of project permit application. Proiect permit applications that are subiect to Ch. 12.01 KCC or that require SEPA review are subiect to those deadlines. All other project permit applications shall expire bV limitation if no permit is issued 180 days after the determination that a fully complete Proiect permit application, as defined in KCC 14.11 020, has been submitted, unless that application has been pursued in good faith. The budding official may extend the time for action on the permit application for one or more periods, each period not exceeding 90 days, upon written request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken. If an application has expired, plans and other data previously submitted for review maV thereafter be returned to the applicant or destroyed by the building official. In order to I renew action on an expired application, the applicant shalt resubmit plans and pay a new review fee ! I PeFMappORSdG ROt FequiFe SEPA Feview shall expire by IlmltatiGn if Re permit is issued WIthIR GRe I i permit) I I i submitted fer review may thereafteF be returRed to the a-P.-IiGant GF destroyed by the aofien frem be;Rg taken An appliGatIOR shall Rc)t be extended mere thaR ORGO. in orde rnvirc�-� -�fcc 2 D 4 permit n "G fin c u b eGt to Ch. 42.01 KGG aree nr,t oUti Kt to texpiration dates abeve. Said pMeGt peFmit app"Gat'ORS shall be subjeGt te the deadHnes in Ch. 12.91 KGG International Building Codes- 4 Adoption D. Board of Appeals Section 112 of the International Building Code, entitled"Board i of Appeals," is amended by substitutinq Section 112 with the following: Sec. 112 Board of appeals. The City of Kent hearings examiner is designated as the board of appeals in order to hear and decide appeals of orders, decisions, or determinations made by the budding official relative to the suitability of alternate materials, design, and methods of construction and appeals of the reasonable application and interpretation of the building codes Appeals shall be made as set forth in section 14 01 100 of the Kent City Code. Sec. 14.01.040. Amendments to the International Residential Code. The following local amendments to the International Residential Code previously adopted in KCC 14.01 010 are hereby adopted and incorporated into the International Residential Code. A Duties and powers of budding official-Lot Imes and setback lines. Section R104 of the International Residential Code, entitled "Duties and Powers of Building Official," is j amended by adding the following new subsection R104.12: Sec. R104.12 Lot lines and setback lines. € Notwithstanding the authority of the building official to administer and enforce the building code,the budding official shall have no duty to verify or establish lot Imes or setback lines. No such duty is created by this code, and none shall be implied I B Permits - Work exempt from permit Subsection R105 2 of the International ; Residential Code, entitled"Work Exempt from Permits "is amended to reduce the permit exempton for one-story detached accessory structures from 200 square feet to 120 square feet. The amended subsection R105 2 reads as follows- Sec. R105.2 Work exempt from permit. Permits shall not E be required for the following Exemption from the permit requirements of this code shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of this jurisdiction. Building: i International Building Codes- 5 Adoption 1 One-story detached accessory structures, provided the floor area does not exceed 120 square feet 1115m2 . C Permits - Substantially improved or substantially damaged existing buildings in areas prone to flooding Section R105 of the International Residential Code, entitled "Permits," is amended by substituting subsection R105.3 1.1 with the followinq Sec R105.3.1.1 Substantially improved or substantially damaged existing buildings in areas prone to flooding. The building official may require that all applications for reconstruction rehabilitation addition, or other improvement of existing buildings or structures located in an area prone to flooding be submitted in accordance with Ch 14 09 KCC. D. Permits - Expiration of protect permit application. 1 Section R105 of the International Residential Code, entitled "Permits" is ! amended by substituting subsection R105 3 2 with the followinq: Sec R105 3 2 Expiration of proiect permit application. Project permit applications that are subject to Ch. 12 01 KCC 1 or that require SEPA review are subject to those deadlines I All other project permit applications shall expire by limitation if no permit is issued 180 days after the determination that a j fully complete proiect permit application as defined in KCC 14.11 020 has been submitted unless that application has been pursued in good faith The building official may extend the time for action on the permit application for one or more periods each period not exceeding 90 days, upon written request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken If an application has expired plans and other data previously submitted for review may thereafter be returned to j the applicant or destroyed by the building official In orderto renew action on an expired application the applicant shall ! resubmit plans and pay a new review fee. E. Fees- Budding permit valuations Section R108 of the International Residential Code enfitled "Fees," is amended by substituting Section R108 3 with the following Sec R108 3 Building permit valuations. The permit applicant shall provide an estimated permit value at time of application Permit valuations shall include total value of the I International Building Codes- 6 Adoption I work including materials and labor, for which the permit is being issued. (The work would include, for example and without limitation, electrical, gas, mechanical, and plumbing equipment and other permanent systems.) If the building official decides that the permit valuation is underestimated, the permit application shall be denied, unless the applicant can show detailed estimates to meet the approval of the building official. Final building permit valuation shall be set by the budding official F Certificate of occupancy Section R110 of the International Residential Code, entitled "Certificate of Occupancy." is hereby repealed. G Board of appeals Section R112 of the International Residential Code, entitled "Board of Appeals," is amended by substituting Section R112 with the following- Sec. R112.1 Board of appeals. The City of Kent hearings examiner is designated as the board of appeals in order to f hear and decide appeals of orders, decisions, or determinations made by the building official relative to the suitability of alternate materials, design, and methods of construction and appeals of the reasonable application and interpretation of the building codes. Appeals shall be made as set forth in section 14 01 100 of the Kent City Code. Any appeal to an order, decision, or determination of the public works director with respect to an area within the flood hazard I shall be made in accordance with Ch 14 09 KCC. Sec. 14.01.050. 444t 030.Amendments to the Uniform Plumbing Code. ; The following local amendments to the Uniform Plumbing Code previously adopted in KCC 14.01 010 is h are hereby adopted and incorporated into the Uniform Plumbing Code f A. Title, scope, and general - Appendices adopted Section 101 of the Uniform Plumbing Code, entitled "Title.Scope, and General," is amended by adding the following ' new subsection 101 6: I Sec. 101.6 Appendices adopted. The Uniform Plumbing Code standards set forth in Appendices A, B, and I of the Uniform Plumbing Code are hereby adopted. B Organization and enforcement - Penalties. Section 102-3 of G#aptef- a he Uniform Plumbing Code, entitled "Organization and Enforcement," °^��is International Building Codes- 7 Adoption hereby-amended by substituting amending-subsection 102.3 2 +'^ 'r s e#irety-with the �I following Sec. 102.3.2 Penalties. Any person who violates a provision of this code or fails to comply with any of its requirements or who erects installs, alters, or repairs plumbing work in violation of (a)the approved construction documents (b)a directive of the building code official, or(c) a permit or certificate issued under the provisions of this code shall be subject to penalties as set forth in Ch. 14 08 KCC or as otherwise provided by law. S r- 102 3 2 Penalties ^ ^^ f FFn OF GGFPeF fire a dl ....�... eRt M. set fort I^ Ghaptor 14.088. i C. Organization and enforcement- Board of appeals Section 102 of the Uniform Plumbing Code entitled "Organization and enforcement," is amended by substitutinq subsection 102.4 a subsection that was added to the state code in accordance with WAC 51-56-0100 with the following: Sec 102.4 Board of appeals The City of Kent hearings 4 examiner is designated as the board of appeals in order to i hear and decide appeals of orders decisions, or j determinations made by the building official relative to the suitability of alternate materials designs and methods of construction and appeals of the reasonable application and interpretation of the building codes Appeals shall be made j as set forth in section 14 01 100 of the Kent City Code I D Permits and inspections-Expiration of proiect permit application Section 103 of the Uniform Plumbing Code entitled Permits and Inspections is amended byi substituting subsection 103.4 3 with the following I Sec 103 4 3 Expiration of project permit application. Protect permit applications that are subject to Ch. 12.01 KCC or that require SEPA review are subject to those deadlines. All other proiect permit applications shall expire by limitation if no permit is issued 180 days after the determination that a fully complete proiect permit application as defined in KCC 14.11 020 has been submitted unless that application has been pursued in good faith The building official may extend the time for action on the permit application for one or more periods each period not exceeding 90 days, upon written request bV the applicant showing that circumstances beyond International Building Codes- 8 Adoption applicant have prevented action from being the control of the app p g taken If an application has expired plans and other data Previously submitted for review may thereafter be returned to the applicant or destroyed by the building official. In order to renew action on an expired application the applicant shall resubmit plans and pay a new review fee Sec. 14.01.060. Amendments to the International Mechanical Code. The following local amendments to the International Mechanical Code previously adopted in KCC 14.01 010 are hereby adopted and incorporated into the International Mechanical j� Code as if fully set forth therein A Permits-Expiration of project permit application Section 106 of the International _Mechanical Code entitled "Permits," is amended by adding the following new subsection 10632- I Sec. 106.3.2 Expiration of project permit application. i Project permit applications that are subject to Ch 12 01 KCC or that require SEPA review are subject to those deadlines. i All other proiect permit applications shall expire by limitation if no permit is issued 180 days after the determination that a fully complete project permit application, as defined in KCC 14 11 020 has been submitted, unless that application has been pursued in good faith The building official may extend i the time for action on the permit application for one or more periods each period not exceeding 90 days, upon written request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken. If an application has expired, plans and other data ; Previously submitted for review may thereafter be returned to the applicant or destroyed by the building official In order to renew action on an expired application, the applicant shall resubmit plans and pay a new review fee. B. Violations-Penalties. Section 108 of the International Mechanical Code,entitled "Violations," is amended by substituting subsection 108 4 with the following. Sec. 108.4 Penalties. Any person who violates a provision of this code or fails to comply with any of its requirements or who erects, installs, alters, or repairs mechanical work in violation of: (a) the approved construction documents, (b) a directive of the building code official, or (c) a permit or certificate issued under the provisions of this code, shall be International Building Codes- 9 Adoption subject to penalties as set forth in Ch 14 08 KCC or as (, otherwise provided by law, i C. Means of appeal-Board of appeals Section 109 of the International Mechanical Code, entitled "Means of Appeal," is amended by substituting Section 109 with the following: Sec. 109 Board of appeals. The City of Kent hearings examiner is designated as the board of appeals in order to hear and decide appeals of orders, decisions, or determinations made by the building official relative to the suitability of alternate materials, designs, and methods of construction and appeals of the reasonable application and interpretation of the building codes. Appeals shall be made as set forth in section 14.01 100 of the Kent City Code t, Sec. 14.01.070050. Amendments to the Uniform Housing Code. The following local amendments to the Uniform Housing Code previously adopted in KCC 14.01 010 are hereby adopted as if fully set forth therein -is heFeby arne A Repealer Section 202 of Chapter 2 and Chapters 11 through 16 of the Uniform Housing Code , 12-�,�' 'a are hereby repealed. B. Board of appeals. Section 203 of the Uniform Housing Code, entitled 'Board of appeals," is amended by substituting Section 203 with the following. I Sec. 203 Board of appeals. The City of Kent hearings examiner is designated as the board of appeals in order to hear and decide appeals of orders, decisions, or determinations made by the budding official relative to the suitability of alternate materials, design, and methods of I construction and appeals of the reasonable application and interpretation of the budding codes. Appeals shall be made as set forth in section 14 01.100 of the Kent City Code C Violations. Section 204 of the Uniform Housing Code, entitled "Violations," is amended by substitutinq Section 204 with the following- Sec. 204 Violations 204.1 Unlawful acts. It shall be unlawful for any person, firm, or corporation to erect, construct, alter, extend, repair, move, remove, demolish, or occupy any budding, structure, International Building Codes- 10 Adoption or equipment regulated by this code, or cause same to be done in conflict with or in violation of any of the provisions of this code. it i 204.2 Violation penalties. Any person who violates a iprovision of this code or fails to comply with any of its requirements or who erects, constructs, alters or repairs a building or structure in violation of- (a) the approved construction documents, (b)a directive of the building official, or (c) a permit or certificate issued under the provisions of this code, shall be subiect to penalties as set forth in Ch 14 08 KCC or as otherwise provided by law Sec. 14.01.080060. Amendments to the Uniform Code for the Abatement of '! Dangerous Buildings. The following local amendments to the Uniform Code for the Abatement of Dangerous Buildings previously adopted in KCC 14.01 010 are hereby adopted as if fully set forth therein. A. Abatement of dangerous buildings Section 202 of the Uniform Code for the i Abatement of Dangerous Buildings, entitled "Abatement of Dangerous Buildings," th+s j cede is hereby-amended by substituting Section 202 with the te4ead-as-foliowEgs I I Sec. 202. Abatement of dangerous buildings. All i buildings or portions thereof which are determined after inspection by the building official to be dangerous as defined i in this code are hereby declared to be public nuisances and shall be abated by repair, rehabilitation, demolition or removal I B. Violations. Section 203 of the Uniform Code for the Abatement of Dangerous I Buildings. entitled "Violations,"is amended by substituting Section 203 with the following I Sec. 203 Violations. i i 203.1 Unlawful acts. It shall be unlawful for any person, firm, or corporation to erect, construct, alter, extend, repair, move, remove, demolish, or occupy any building, structure, or equipment regulated by this code,or cause the same to be done, in conflict with or in violation of any of the provisions of this code. 203.2 Violation penalties. Any person who violates a provision of this code or fails to comply with any of its requirements or who erects, constructs, alters or repairs a building or structure in violation of: (a) the approved International Building Codes- Adoption I I construction documents.(b)a directive of the building official, or (c) a permit or certificate issued under the provisions of this code shall be subject to penalties as set forth in Ch. 14 08 KCC or as otherwise provided by law. I. CB. Board of Appeals Section 205 of the Uniform Code for the Abatement of Dangerous Buildings entitled "Board of Appeals," is amended by substituting Section 205 with the following: Sec 205 Board of appeals. The City of Kent hearings examiner is designated as the board of appeals in order to hear and decide appeals of orders, decisions, or determinations made by the building official relative to the suitability of alternate materials, designs, and methods of construction and appeals of the reasonable application and interpretation of the budding codes. Appeals shall be made as set forth in section 14.01 100 of the Kent City Code. D. Repealer. G"^^'�and Chapters 4 through 9 , f the Uniform Code for the Abatement of Dangerous Buildings '°0,�; =d.n are hereby repealed EQ General - Definitions. Section 301 of the Uniform Code for the Abatement of Dangerous Buildings this Goths hereby amended to read as follows Sec. 301: General. For the purpose of this code, certain terms, phrases, words, and their derivatives shall be construed as specified in either this chapter or as specified in i the budding code or the housing code. Where terms are not I defined, they shall have their ordinary accepted meanings within the context with which they are used. "Webster's Third New International Dictionary of the English Language, Unabridged,"copyright 1986, shall be construed as providing ordinary accepted meanings. Words used in the singular include the plural and the plural the singular. Words used in I the masculine gender include the feminine and the feminine the masculine Building code is the International Budding Code or the International Residential Code as may be applicable, promulgated by the t w,t Anal GenferenGe of 13 „idiRg nfF^is International Code Council, Inc., as adopted by this jurisdiction. Dangerous building is any building or structure deemed to be dangerous under the provision of section 302 of this code. Endangered as used in section 302 means negatively affected, to any degree, by any and all conditions, actions or omissions which, singularly or together, reduce or are likely to reduce or negatively impact the life or limb, health, International Building Codes- 12 Adoption property or safety of the public, including but not limited to, economy in the provision of public service, general welfare, economic viability, or security in the enjoyment of the community. Health officer as used in this code shall mean the building official or his or her designee. Housing code is the Uniform Housing Code promulgated by the International Conference of Budding Officials, as adopted by this jurisdiction. it Sec. 14.01.090070-. Building codes - Fees. The City Council shall, by resolution, establish the fees to be assessed for easki-ci the codes adopted in Ch 1401 KCCI 4 01 010 IR the eve t aRy aFtIG lar fee is not so established by nn„nr 1 rocnl f nthe Gity shall assess fees 1R aGG9FdaRGe with the fee sGhedules set f9i4h iR 6aid Gedes, i tly established or hereinafter aFneRded n rs, ant tee the Wash,n Administrative Code. Sec. 14.01.100080_Appeals. A. Appeals to the hearing examiner. ` 1 Jurisdiction In erdertn hear and daGide appeals of orders, deteinrnmatleRS made by the building OffiGial relative to the suitability of alternate Gode the UnA9P44 Plumbing C06(e, and the UpAqFm Housing Code, the City of KeRt f heaRRg eXaM!ReF is hereby designated as the bGaFd Gf appeals rreated pursuant to 1 Code, � . The City hearings examiner has been designated as Shall GORI;fitlitpthe board of appeals and shall have iurlsdictlon over #er-all matters I concerning the application of the off-building codes cited in Ch. 14 01 KCCthis sestlE)n The City hearings examiner, however, shall have no authority relative to interpretation of the administrative provisions of these codes, nor shall the City hearings examiner be empowered to waive requirements of these building codes 2. Filing. Appeals shall be filed with the hearings examiner by 5.00 p m of the fourteenth 1( 4'h1 calendar day following the date of the order, determination, or decision being appealed. When the last day of the appeal period so computed is a International Building Codes- 13 Adoption Saturday, Sunday, or federal or City holiday, the period shall run until 5 00 p.m. on the next business day. The appeal shall be accompanied by payment of the filing fee. Specific objections to the building official's decision and the relief sought shall be stated in the written appeal. I 3. Standing. Standing to bring an appeal under this chapter is limited to the following persons: a. The applicant and the owner of property to which the permit decision is directed. b. Another person aggrieved or adversely affected by the order, j determination, or taadu6e decision, or who would be aggrieved or adversely affected by a reversal or modification of the order,determination,or land use decision. A person who I ' is aggrieved or adversely affected within the meaning of this section only when all of the following conditions are present: i. The order, determination, or aPA—ase_decision has prejudiced or is likely to prejudice that person, ii. A judgment in favor of that person would substantially eliminate or redress the prejudice to that person caused or likely to be caused by the4and use order, determination, or decision; and iii. The appellant has exhausted his or her administrative remedies to the extent required by law. i I B. Appeals to superior court. Appeals to the hearings examiner shall be made pursuant to Ch 2.32 KCC. The decision of the hearings examiner shall be final and conclusive unless within twenty-one (21) calendar days of the hearings examiner's decision an appeal is filed with the superior court.When the last day of the appeal period so computed is a Saturday, Sunday, or federal or City holiday, the period shall run until the next business day. SECTION 2. - Amendment. Section 1 04.130 of the Kent City Code, entitled "Conflicting code provisions," is amended as follows. Sec. 1.04.130. Conflicting code provisions. In the event a conflict exists between the enforcement provisions of this chapter and the enforcement provisions of any International Building Codes- 14 Adoption I international or uniform code, statute, or regulation that is adopted in the Kent City Code !, that-afe and subject to the enforcement provisions of this chapter, the enforcement provisions of this chapter will prevail, unless the enforcement provisions of this chapter are preempted or specifically modified by said code, statute, or regulation. it SECTION 3.-Amendment. Chapter 2.40 of the Kent City Code,entitled"Building '! and Development Services Office," is amended as follows: CHAPTER 2.40 BUILDING AND DEVELOPMENT SERVICES OFFICE i Sec. 2.40.010. Office created. There is hereby created the office known as the building and development services office for the purpose of performing all budding and development service functions of the City, including budding plans examinations, building inspections, and code enforcement The office shall be supervised by the building officialand deyei.,... eRt manager Sec. 2.40.020. Building official and development cervices n:anaW - Position created and appointment. There is hereby created the position known as building officialand develepmeRtserviGes MaRager The position is created in accordancel with the City of Kent Policies and Procedures Manual The building offic,al acid development se^:.cec manager shall be appointed by the chief administrative officer in accordance with the provisions of the City of Kent Policies and Procedures Manual solely on the basis of professional experience, education, and demonstrated knowledge of accepted practices relating to the duties of the office Sec. 2.40.030. Qualifications. The budding officialand development --o^ ^GE manager must have the following or equivalent qualifications: he or she must be a graduate of a recognized college or university, and-have at least three (3) years' experience in the field of budding and land development, aPA--be familiar with the international and uniform building codes,or have experience in a similar field as deemed appropriate to the position by the appointing authority I International Building Codes- 15 Adoption Sec.2.40.040. Duties and powers. It shall be the duty of the budding officialand j developme^t serviGes manager to examine building plans, perform budding inspections, li and perform code enforcement functions as prescribed by the Kent City Code. I' The building offdaland deyelOpMe^+ so^"^^^ m^^^W shall perform such other II I duties as the chief administrative officer, or his or her designee, may direct or as may be required by the laws of the state. Sec. 2.40.050. Salary. The salary of the budding officialand development shall be that as established in the annual City budget I SECTION 4. - Amendment Section 2 42 030 of the Kent City Code, entitled "Qualifications," is amended as follows: Sec. 2.42.030. Qualifications. The permit center manager must have the following or equivalent qualifications: he or she must be a graduate of a recognized college or university_-aad-have at least three (3)years' experience in the field of budding and land development,aad-be familiar with the international and uniform building codes, or have experience in a similar field as deemed appropriate to the position by thel appointing authority SECTION 5. - Amendment. Section 7.04 070 of the Kent City Code, entitled Construction standards, is amended as follows: I Sec. 7.04.070. Construction standards. All side sewers shall be installed in " strict accordance with specifications contained in any existing City ordinance or code and any construction standards or international or uniform codes that the City has adopted or adopts m the""ih ^h m v h^ ^+ ^..,+,,,o , +h^future ^d^^+^d by the ^' ".All construction shall be subject to the inspection of the director or his or her designee. iI International Building Codes- 16 Adoption SECTION 6. - Amendment. Section 7.05.074 of the Kent City Code, entitled "Construction standards," is amended as follows: Sec. 7.05.074. Construction standards. All storm and surface water systems, whether public or private, shall be installed in strict accordance with specifications contained in any existing City ordinance or code and any construction standards or international or uniform codes that the City either has adopted or adopts in the future.All construction and maintenance of those systems shall be subject to the inspection by the director or his or her designee SECTION 7. - Amendment. Section 7.07.114 of the Kent City Code, entitled "Construction standards," is amended as follows: Sec. 7.07.114. Construction standards. All surface water and storm drainage systems, whether public or private, shall be installed in strict accordance with I specifications contained in any existing City ordinance or code and any construction standards or international or uniform codes that the City either has adopted or adopts in the future All construction and maintenance of those systems shall be subject to the inspection by the director or his or her designee. SECTION B. -Amendment Section 7 10 060(A) of the Kent City Code, entitled "Design standards," is amended as follows: Sec. 7.10.060. Design standards. A. All conductors, switches,transformers and regulating devices shall be installed in accordance with the applicable national, state, and local safety standards All structural devices shall be designed in accordance with the provisions of the edition Gf the UnifA-Rn International Budding Code, the Intemational Residential Code, or other applicable building codes, as adopted and amended by Gity in Ch. 14.01 KCC. All underground facilities provided for in this section shall be installed in such manner as to coordinate with other underground facilities, e.g ,water, sewer and gas pipeline, traffic control and other signal systems Whenever such coordination requires installation practices more restrictive or demanding than the minimum standards required by applicable national, International Building Codes- 17 Adoption state and local codes and safety standards, the requirements of such coordination shall be governing and controlling. SECTION 9. - Amendment. Section 12 04 235(C)(3) of the Kent City Code, entitled "Standards for the subdivision of land and any dedications," is amended as follows. Sec. 12.04.235. Standards for the subdivision of land and any dedications. C The alignment of all streets shall be reviewed and approved by the public works department.The following standards shall apply unless otherwise approved by the public works department, in consultation with the planning services office and the fire prevention division. 3 No street grades shall exceed fifteen (15) percent A grading permit shall be required as—per Appendix 'n of the IJR'feFM International Budding Code,. the International Residential Code, or other applicable building codes, as adopted and amended in Ch 14 01 KCC 14.O1.010 prior to any grading. SECTION 10. - Amendment. Section 12 04 545(C)(3) of the Kent City Code, entitled "Standards for the subdivision of land and any dedications," is amended as follows. Sec. 12.04.545. Standards for the subdivision of land and any dedications. C. The alignment of all streets shall be reviewed and approved by the public works department.The following standards shall apply unless otherwise approved by the public works department in consultation with the planning services office and the fire prevention division. 1101 International Building Codes- 18 Adoption 3. No street grades shall exceed fifteen (15) percent. A grading permit shall be required as per Appendix 78-ef-the URIferM International Building Code. the International Residential Code or other applicable building codes, as adopted and amended in Ch. 14 01 KCC� 14 01.010 prior to any grading SECTION 11. - Amendment Section 12 04 745(C)(3) of the Kent City Code, entitled "Standards for the subdivision of land and any dedications," is amended as follows. Sec. 12.04.745. Standards for the subdivision of land and any dedications. C. The alignment of all streets shall be reviewed and approved by the public works department. The following standards shall apply unless otherwise approved by the public works department in consultation with the planning services office and the fire prevention i division. 3 No street grades shall exceed fifteen (15) percent A grading permit shall be required as per Appead:x '�Tthe-I1n+ferM International Budding Code, the International Residental Code, or other applicable b ilding codes ne nrin.nfed and\ I l applicable VUIIV�I amended in Ch. 1401 KCC, 14 01.010 prior to any grading SECTION 12.-Amendment Section 12.05.140(B)of the Kent City Code,entitled "Compatibility with existing land use and plans," is amended as follows: Sec. 12.05.140. Compatibility with existing land use and plans. B. The location of all streets shall conform to any adopted plans for streets in the City If a mobile home park is located in the area of an officially designated trail, provisions may be made for reservation of the right-of-way or for easements to the City for trail purposes. A grading permit shall be required as pei-Chapter-70-efthe Uniform InternatronalBuilding Code,,the International Residential Code, or other applicable building codes, as adopted International Building Codes- 19 Adoption and amended by-sityin Ch. 14 01 KCC, prior to any grading or filling SECTION 13. - Amendment. Section 12.13.130(G)(1) of the Kent City Code, entitled "Impact fee accounts and refunds," is amended as follows G. A developer may request and shall receive a refund, including interest earned on the impact fees, when: 1. The developer does not proceed to finalize the development activity as required by statute or City code including the 1.1n+fermInternationa/ Budding Code, the International Residential Code, or other applicable building codes, as adopted and amended in Ch 14 01 KCC; and SECTION 14.-Amendment. Section 14 08 020(1)of the Kent City Code,entitled "Definitions," is amended as follows- Sec. 14.08.020. Definitions. The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning 1 Building codes means and includes the Un+fenn International Budding Code,the International Residential Code,the 1.1n+ferrn International Mechanical Code,the International Fire Code, the Uniform Plumbing Code, the Uniform Housing Code, the Uniform Code forAbatement of Dangerous Buildings,the Washington State Energy Code, and the Washington State Ventilation and Indoor Air Quality Code, as now or hereafter adopted, amended, and/or supplemented pursuant to KCC Title 14,the Revised Code of Washington, and/or the Washington Administrative Code. International Building Codes- 20 Adoption 10 SECTION 15. -Amendment. Section 14.08.100 of the Kent City Code, entitled "Stop work order," is amended as follows- Sec. 14.08.100. Stop work order. The building official may issue a stop work order pursuant to the provisions of the Up4ofmInternational Building Code, the International Residential Code,or any other applicable building code,or may Issue sash a stop work order wheneveF a continuing violation of any of the building codes will materially impair the building official's ability to secure compliance, or when a continuing violation threatens the public health,of�-safety, or welfare-Gf-t pa SECTION 16. - Amendment. Section 14 08.240 of the Kent City Code, entitled "Violation - Penalty," is amended as follows: Sec. 14.08.240. Violation — Penalty. A. Civil. Any violation of any provision of a building code enforced under this chapter constitutes a civil violation under Ch. 1 04 KCC for which a monetary penalty may be assessed and abatement may be required and/or otherwise enforced as provided therein B Cnminal. In addition or as an alternative to any other enforcement procedure or penalty in this chapter, a violation of any provision of this chapter or a code enforced by I this chapter shall constitute a misdemeanor punishable by imprisonment in ;ail for a maximum term fixed by the court of not more than ninety (90) days, or by a fine in an amount fixed by the court of not more than one thousand dollars($1,000),or by both such imprisonment and fine All misdemeanor charges filed under this section shall be filed with the Kent municipal court and shall bear the signature of the Kent City attorney or his or her designee When the City files a criminal offense pursuant to this subsection,it shall have the burden of proving beyond a reasonable doubt that the violation occurred le additeGn eF as aR alteMative te aRy other penalty provid-d-1- this Ghapter or by law, an peFSOR shall be deemed guilty of a FnisdemeaRGr and, 61PGR GGRViGtiGR thereof,shall be 1. Vielations of KGG 14.08 200( • , 2 V Iat' c f KGG 1 A 09 200(D\ nil /C1 whore the noronn has hart a G'V I rrorrn.vrrvvrrcvv�-r-o�cvvjv7-errv-���, ...., �...,....,�. .�.,.,.... ., .,.. International Building Codes- 21 Adoption ii idgFnGnt,miler KGG 14 08 220 ro, hoorfen (A)of this sent enl or omy of its predoGessero rendered agaIRot Grim rtnrinq the last five (5)yeaFs; r standards er requirements of the building Genes• possible. C. Each day that anyone shall continue to violate or fad to comply with any of the foregoing provisions shall be considered a separate offense. SECTION 17. - Amendment Section 15.02 268 of the Kent City Code, entitled "Modular home," is amended as follows: Sec. 15.02.268. Modular home. Modular home means a single-family dwelling constructed in a factory and shall be constructed and installed in accordance with applicable provisions of the Unifer International Budding Code, the International Residential Code, or other applicable building codes, and shall beartftg the appropriate insignia indicating sash--compliance with those codes. This definition includes "prefabricated," "panelized," and "factory built" units SECTION 18.-Amendment. Section 15.04 180(32)of the Kent City Code,entitled "Agricultural and residential land use development standard conditions," is amended as follows: Sec. 15.04.180. Agricultural and residential land use development standard conditions. 32. For multifamily townhouse developments that attach three (3) units, the minimum building to building separation shall be ten (10) feet For duplex and single- family condominium townhouse developments, the minimum building to building separation shall be established through the I IntferfrtInternational Building Code(OIBC)or International Residential Code (IRC), as may be applicable. International BuildingCodes- 22 Adoption 0 SECTION 19. - Amendment Section 15 08.350(B)(4) of the Kent City Code, entitled "Accessory dwelling unit regulations — Standards and criteria," is amended as follows; Sec. 15.08.350. Accessory dwelling unit regulations. B. Standards and cntena 4. The design and size of an ADU shall conform to all applicable standards in the building, plumbing,electrical, mechanical,fire, health,and any other applicable codes When there are practical difficulties involved in carrying out the provisions of this section, the building official may grant modifications for individual cases pursuant to SeGboR 106 of the URifemnInternational Building Code,. the International Residential Code, or other applicable building codes, and as subsequently amended or recodified. SECTION 20. - Amendment. Section 15 08.359(B)(4) of the Kent City Code, entitled "Accessory living quarters — Standards and criteria," is amended as follows: Sec. 15.08.359. Accessory living quarters. B Standards and cntena. 4. The design and size of an ALQ shall conform to all applicable standards in the building, plumbing, electrical, mechanical,fire, health,and any other applicable codes. When there are practical difficulties involved in carrying out the provisions of this section, the building official may grant modifications for individual cases pursuant to sest'An 106 A the URifermlnternatfonal Building Code, the International Residential Code, or other applicable building codes, and as subsequently amended or recodified. International Building Codes- 23 Adoption SECTION 21.—Saving s The existing sections of the Kent City Code, which are repealed, replaced,and/or amended by this ordinance,shall remain in full force and effect until the effective date of this ordinance. SECTION 22. — Severabdity If any one or more section, 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 23.-Effective date. This Ordinance shall take effect and be in force on July 1, 2004. JIM WHITE, MAYOR I ATTEST: BRENDA JACOBER, CITY CLERK I APPROVED AS TO FORM. TOM BRUBAKER, CITY ATTORNEY PACrvA10RDINMCEeuildmgCo 5,Adoptw dm International Building Codes- 24 Adoption PASSED: day of May, 2004. APPROVED: day of May, 2004. PUBLISHED: day of May, 2004 1 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\CiviI10RDINANCE1BwidingCodes-Adoption doc I I International Building Codes. 25 Adoption I ORDINANCE NO. I 1 AN ORDINANCE of the City Council of the City of Kent, Washington, amending, as of July 1, 2004, Title 13 of the Kent City Code to repeal the adoption of the 1997 edition of the Uniform Fire Code; to adopt the 2003 edition of the International Fire Code, as amended by the Washington State Building Code Council in Ch. 51-54 of the Washington Administrative Code ("WAC"), and to make other housekeeping amendments to various Kent City �! Code provisions to reference the International Fire Code as li opposed to the Uniform Fire Code y RECITALS A As set forth in Title 13 of the Kent City Code, the City previously adopted the state Uniform Fire Code. f j B Pursuant to Ch 19.27 RCW, the 2003 edition of the International Fire f Code, as adopted by the State of Washington, applies to all cities, including the City of i Kent, effective July 1, 2004; therefore, it is appropriate to amend the Kent City Code to repeal the Uniform Fire Code, to adopt the International Fire Code with local amendments, and to make other housekeeping amendments to reference the t -international Fire Code. i E THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES 'HEREBY ORDAIN AS FOLLOWS: i i 1 International Fire Code-Adoption ORDINANCE SECTION 1. — Amendment. Title 13 of the Kent City Code, entitled "Fire revention and Protection," is amended by the addition of a new chapter, Ch 13 01, s follows: CHAPTER 13.01 FIRE CODES Sec. 13.01.010. Fire code — Adopted. In accordance with Ch. 19 27 RCW, he International Fire Code, 2003 edition, published by the International Code Council, nc., together with any additions, deletions, and exceptions currently enacted or as ay be amended from time to time by the State of Washington through its Building I (Code Council pursuant to the Washington Administrative Code ("WAC"), and as further amended in this chapter, is hereby adopted and incorporated by this reference One (1) copy of the International Fire Code and the appendices adopted in kCC 13.01 030(A) below are on file with the City's fire code official. Sec. 13.01.020. Code conflicts. To the extent allowed by RCW 19.27,040, if ! a conflict exists between the provisions of the International Fire Code adopted and ;'amended by the Washington State Building Code Council and the provisions of Chapter 13 01 of the Kent City Code, the Kent City Code provisions shall govern Sec. 13.01.030. Amendments to the International Fire Code - Chapter 1, ' ,Administration. The following local amendments to Chapter 1 of the International i dire Code, entitled "Administration," are hereby adopted and incorporated into the Ynternational Fire Code �I �. General - Fire code appendices adopted Section 101 of the International Fire Gode, entitled "General," is amended by adding the following new subsection 101.6. j' Sec. 101.6 Fire code appendices adopted. Appendices B, C, D, E, F, and G to the International Fire Code are hereby adopted. 2 International Fire Code-Adoption B. General authority and responsibilities— Retained authority. Section 104 of the International Fire Code, entitled "General Authority and Responsibilities," is amended by adding the following new subsection 104.1.1: Sec. 104.1.1 Retained authority - Additional conditions. The fire code official retains the authority to impose additional conditions where the official determines it necessary to mitigate identified fire protection impacts These conditions may include, by way of example and without limitation, increased setbacks, use of fire retardant materials, installation of standpipes, fire sprinkler and fire alarm systems I C General authority and responsibilities — Lot lines and setback lines Section 104 of the International Fire Code, entitled "General Authority and Responsibilities," is amended by adding the following new subsection 104 12: +� Sec. 104.12 Lot lines and setback lines. I i Notwithstanding the authority of the fire code official to i! administer and enforce the fire code, the fire code official i shall have no duty to verify or establish lot lines or setback lines No such duty is created by this code and none shall be implied I D. Permits - Fees. Section 105 of the International Fire Code, entitled "Permits," is amended by adding the following new subsection 105 1 4. Sec. 105.1.4 Fees. The fire code official shall prepare a resolution establishing a schedule of fees for council consideration, which fees shall include the cost involved in the processing, issuance, and renewal of permits and certificates. Any fee schedule adopted by resolution shall govern the fee amount to be assessed for any permit or certificate and the fire code official shall collect those fees as a condition to issuance or renewal of any permit or certificate. Failure to pay for either an original permit or the required renewal within 30 days of the date notice is given, shall result in the City's termination of the permit or certificate application. f E. Permits - Term. Section 105 of the International Fire Code, entitled "Permits," is amended by adding the following new subsection 105.1 5: 3 International Fire Code-Adoption Sec. 105.1.5 Term. Permits and certificates issued in accordance with this code shall be valid for a 12 month period and are renewable at the end of that 12 month term. F. Permits - Expiration of project permit application. Section 105 of the International Fire Code, entitled "Permits," is amended by substituting subsection 105.2.3 with the following: Sec. 105.2.3 Expiration of project permit application. Project permit applications that are subject to Ch 12.01 KCC or that require SEPA review are subject to those deadlines. All other project permit applications shall expire by limitation if no permit is issued 180 days after the determination that a fully complete project permit application has been submitted, unless that application has been pursued in good faith The fire code official may extend the time for action on the permit application for one or more periods, each period not exceeding 90 days, upon written request by the applicant showing that I circumstances beyond the control of the applicant have prevented action from being taken If an application has expired, plans and other data previously submitted for review may thereafter be returned to the applicant or destroyed by the fire code official. In order to renew action on an expired application, the applicant shall resubmit plans and pay a new review fee G. Board of appeals. Section 108 of the International Fire Code, entitled "Board of E appeals," is amended by substituting section 108 with the following- Sec. 108 Board of appeals. The City of Kent hearings examiner is designated as the board of appeals in order to hear and decide appeals of orders, decisions, or determinations made by the fire code official relative to the suitability of alternate materials, designs, and methods of i construction and appeals of the reasonable application and interpretation of the building and fire codes. Appeals shall be made as set forth in section 13.01.120 of the Kent City I Code. it H. Violation penalties. Section 109 of the International Fire Code, entitled "Violations," is amended by substituting subsection 109 3 with the following. I �ISec. 109.3 Violation penalties. Any person who violates a provision of this code or fails to comply with any of its ' 4 International Fire Code-Adoption requirements or who erects, constructs, alters, or repairs a building or structure in violation of (a) the approved construction documents, (b) a directive of the fire code official, or (c) a permit or certificate issued under the provisions of this code, shall be subject to penalties as set forth in Ch. 13 02 of the Kent City Code or as otherwise provided by law. Sec. 13.01.040. Amendments to the International Fire Code — Chapter 2, Definitions. The following local amendments to Chapter 2 of the International Fire Code, entitled "Definitions," are hereby adopted and incorporated into the International Fire Code: IN. General definitions. Section 202 of the International Fire Code is amended to ! 1 i dd the following four general definitions: �I APWA is the American Public Works Association. ` i AWWA is the American Water Works Association II ' PRIVATE HYDRANT is a fire hydrant situated and maintained to provide water for firefighting purposes with restrictions as to use. 1 PUBLIC HYDRANT is a fire hydrant situated and maintained to provide water for firefighting purposes without restrictions as to use for that purpose and is accessible for immediate use at all times. i Sec. 13.01.050. Amendments to the International Fire Code - Chapter p 3, General Precautions Against Fire. The following local amendment to Chapter 3 of the International Fire Code, entitled "General Precautions Against Fire," is hereby I I ' adopted and incorporated into the International Fire Code: it IA. Vacant premises - Fire protection systems. Section 311 of the International Fire Code, entitled "Vacant Premises," is amended by substituting subsection 311 2.2 ,with the following: II s I Sec. 311.2.2 Fire protection. Fire alarm, sprinkler, and , standpipe systems shall be maintained in an operable condition at all times t 5 International Fire Code-Adoption Exception: If, in the opinion of the fire code official, the premises (a) has been cleared of all combustible materials and debris, (b) is of the type of construction with sufficient fire separation distance so as to not create a fire hazard, (c) has been secured to prohibit entry by unauthorized persons, and (d) has buildings that will not be heated, potentially exposing fire jprotection systems to freezing temperatures, then the fire code official may allow fire alarm and sprinkler systems to be placed out of service and may allow standpipes to be maintained as dry systems (without an automatic water supply). Sec. 13.01.060. Amendments to the International Fire Code - Chapter 5, I Fire Service Features. The following local amendments to Chapter 5 of the f International Fire Code, entitled "Fire Service Features," are adopted and incorporated , into the International Fire Code: A. Fire service features - Fire apparatus access roads Section 503 of the International Fire Code, entitled "Fire Apparatus Access Roads," is hereby adopted B. Fire apparatus access roads - Dimensions. Section 503 of the International ' Fire Code, entitled "Fire Apparatus Access Roads," is amended by substituting subsection 503.2 1 with the following. t Sec. 503.2.1 Dimensions. The following minimum dimensions shall apply for fire apparatus access roads: 1. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm), except for approved security gates in accordance with section 503.6, and an unobstructed vertical clearance of not less than 13 feet 6 inches (4115 mm). 2 In the immediate vicinity of any budding or portion thereof in excess of 28 feet in height, the fire apparatus access road shall have an unobstructed width of not less than 26 feet (7924 mm) and an unobstructed vertical clearance of not less than 13 feet 6 inches (4115 mm). 3 At least one of the required fire apparatus access roads shall be located a minimum of 15 feet and a maximum of 25 feet from each budding on the premises and shall be positioned parallel to one entire side of each i budding. The measurement for this requirement shall be taken from the exterior wall of the building to the nearest i ! edge of the fire apparatus access road. �j 6 International Fire Code-Adoption IC. Fire apparatus access roads - Bridges and elevated surfaces. Section 503 of the International Fire Code, entitled "Fire Apparatus Access Roads," is amended by substituting subsection 503.2 6 with the following: Sec. 503.2.6 Bridges and elevated surfaces. Where a bridge or an elevated surface is part of a fire apparatus access road, the bridge or elevated surface shall be constructed and maintained in accordance with specifications established by the fire code official and the City's public works director, or their designees; at a minimum, however, the bridge or elevated surface shall be constructed and maintained in accordance with AASHTO Standard Specifications for Highway Bridges. Bridges and elevated surfaces shall be designed for a live load sufficient to carry the imposed loads of a 30 or more ton I fire apparatus, the total imposed load to be determined by i f the fire code official. Vehicle load limits shall be posted at both entrances to bridges when required by the fire code I official. Where elevated surfaces designed for emergency vehicle use are adjacent to surfaces which are not designed for that use, approved barriers or approved ; signs, or both, shall be installed and maintained, if required by the fire code official. 6 i , D Fire apparatus access roads - Marking Section 503 of the International Fire Code, entitled "Fire Apparatus Access Roads," is amended by substituting subsection 503 3 with the following: Sec 503.3 Marking. Fire apparatus access roads shall be marked whenever necessary to maintain the unobstructed minimum required width of roadways. Subject to the fire code official's prior written approval, marked fire apparatus access roads, or "fire lanes" as defined in section 502.1 of the code, may be established or relocated at the time of plan review, pre-construction site inspection, and/or post construction site inspection as well as any time during the life of the occupancy. Only those fire apparatus access roads established by the fire code official can utilize red marking paint and the term "fire lane." Fire lanes shall be marked as directed by the fire code official with one or more of the following types of marking. 503.3.1 Type 1. The following shall apply to Type 1 marking: i i 7 International Fire Code-Adoption I' 1. Curbs shall be identified by red traffic paint with a 6 inch wide stripe on the top and front, extending the length of the designated fire lane. 2. Rolled curbs shall be identified by red traffic paint with a 6 inch wide stripe on the curb, extending the length of the designated fire lane. 3. Lanes without curbs shall be identified by red traffic paint with a 6 inch wide stripe on the pavement, extending the length of the designated fire lane. 4 The words "NO PARKING — FIRE LANE" shall be in 3 inch stroke white letters 18 inches in height, and placed 8 inches measured perpendicular from the red paint stripe on the pavement. In most cases, both sides of the access road shall be marked. Where long drives are to be marked, the repetitions shall alternate sides of the drive. 503.3.2 Type 2. The following shall apply to Type 2 marking: 1. In addition to the requirements for Type 1 marking, Type 2 marking shall also include the addition of metal signs stating "NO PARKING — FIRE LANE" to be installed at intervals or locations designated by the fire code official. The signs shall be approximately 12 inches in width and 18 inches in height and have red letters on a white background. Metal signs shall be installed on either 2 inch metal pipes, for private property, or treated 4 inch by 4 inch wood posts, for public property, and shall be located so that the bottom of the sign is a minimum of 7 feet above the curb. See, City of Kent engineering standard detail 6- 36(a) or (b) for post installation. Sign mounting shall be installed per City of Kent engineering standard detail 6-38. Where fire lanes are adjacent to buildings or structures and when approved or directed by the fire code official, the signs may be placed on the face of the building or structure li 503.3.3 Type 3 The following shall apply to Type 3 marking. 1. Where directed by the fire code official, specific areas shall be designated and those areas are to be marked with diagonal striping across the width of the fire lane Diagonal marking shall be used in conjunction with painted curbs and/or edge j striping and shall run at an angle of 30 to 60 I degrees from one side to the other. These 8 International Fire Code-Adoption E diagonal Imes shall be in red traffic paint, parallel I with each other, at least 6 inches in width, and 24 inches apart. Lettering shall occur as with Type 1 marking. I; j 503.3.4 Alternate materials and methods. The fire code official may modify, on a case-by-case basis, any of the marking provisions in this subsection 503.3 where practical difficulties exist. Modification requests shall be submitted in writing to the fire code official setting forth a suggested alternative jH E Access to budding openings and roofs — Required access. Section 504 of the International Fire Code, entitled "Access to Building Openings and Roofs," is amended by substituting subsection 504.1 with the following: Sec. 504.1 Required access. The following points of access must be provided: + 1. Exterior doors and openings required by this code or the International Budding Code shall be maintained readily accessible for emergency access by the fire department. 2 Each tenant space provided with a secondary exit to the exterior or exit corridor shall be provided with tenant identification by business name and/or address. Letters and numbers shall be posted on the corridor/exterior side of the door, be plainly legible, and shall contrast with their background. 3. An approved access walkway shall be provided to connect fire apparatus access roads to exterior openings 4. All rescue windows shall be accessible by a 35- foot ground extension ladder placed so that the inclination of the ladder does not exceed 70 degrees. An area of discharge, 36 inches in all directions around the base of the ladder, shall be provided. Ladders and associated areas of discharge shall be located within the property F lines. 5. All occupancies shall be required to provide E approved life safety rescue access, as defined in section 902 of this code. I Exception: Group U occupancies. 6. The provisions of this subsection shall apply if, at the time of the first permit application, the county assessed I valuation for the budding(s) subject to the permit application will increase by more than 50 percent due to alterations or repairs to the building(s) within any 70 month f� 9 International Fire Code-Adoption € II time period. Additions to an existing structure shall be considered new construction and subject to the provisions of this section. If additions to an existing structure cause a building to meet the area, number of floor levels, or units that would subject a new budding to the requirements of this section, the entire budding will then be required to comply with this section. I� F. Fire protection water supplies— Existing non-conforming hydrants. Section 508 of the International Fire Code, entitled "Fire Protection Water Supplies," is amended to, add anew subsection 508.1.1 as follows: Sec. 508.1.1 Existing non-confirming hydrants. At jsuch time as an existing hydrant, which does not conform + to the requirements and standards of this section, is replaced, it shall be replaced with a hydrant that does conform to the standards and requirements of this section. G. Fire protection water supplies — Where required. Section 508 of the International Fire Code, entitled "Fire Protection Water Supplies," is amended by; substituting subsection 508.5 1 with the following: Sec. 508.5.1 Where required. All buildings or structures shall be located so that there is at least 1 hydrant within 150 feet, and no portion of the building or structure is more than 300 feet from a hydrant, as measured by an approved ! route H. Fire protection water supplies — Installation requirements. Section 508 of the International Fire Code, entitled "Fire Protection Water Supplies," is amended by, substituting subsection 508.5.7 with the following. Sec 508.5.7 Installation requirements. All fire hydrants shall be installed in accordance with the specifications i established by the fire code official or his or her designee, or at a minimum, in accordance with the latest NFPA, APWA, or AWWA standards. In addition, unless modified I by written decision of the fire code official, the following requirements shall apply to all building construction projects• j 1. All fire hydrant piping, valves, and related appurtenances shall be approved by the City's public works department. 10 International Fire Code-Adoption 2. The fire hydrant installation and its attendant water system connection shall conform to the City's specifications and design and construction standards. 3. An auxiliary gate valve shall be installed at the +i main line tee to permit the repair and replacement of the hydrant without disruption of water service. 4. All hydrants shall be plumb, plus or minus 3 idegrees, to be set to finished grade with the bottom flange 2 inches above the ground or curb grade and have no less than 36 inches in diameter of clear area around the hydrant for the clearance of hydrant wrenches on both outlets and the operating nut. 5. The largest port shall face the most likely direction of approach and location of the fire apparatus while pumping as determined by the fire code official. Distance from the pumper port to the street curb shall be no further than 10 feet. 6. The lead from the service main to the hydrant shall be no less than 6 inches in diameter Any hydrant !J leads over 50 feet in length from the water main to hydrant shall be no less than 8 inches in diameter. 7 All hydrants installed in single family residential areas shall be supplied by not less than 6 inch mains and shall be capable of delivering 1,000 gpm fire flow over and above average maximum demands at the farthest point of the installation. 8 All hydrants shall have at least 5 inch minimum s valve openings, "O" ring stem seal, two 2%2 inch national standard thread hose ports, one 4'/2 inch steamer port with national standard threads or otherwise determined by the fire code official. In addition, all hydrants shall meet ' AWWA standards for public hydrants and be of a type approved for use in the City by the City's public works i department. 9. All pipe shall meet the City standards as determined by the public works department. Piping located entirely within private property and maintained by f the property owner shall meet the requirements and be ! approved by the fire code official The fire code official may approve any piping material that has been tested and approved by a nationally recognized testing laboratory. 10. The maximum distance between hydrants in single family use district zones shall be 600 feet. 11. The maximum distance between hydrants in I commercial, industrial, and apartment (including duplex) use zones shall be 300 feet. 12. Lateral spacing of hydrants shall be predicated on hydrants being located at street intersections. 13 The appropriate water authority and the fire department shall be notified in writing of the anticipated 11 International Fire Code-Adoption date the hydrant installation and its attendant water connection system will be available for use. I. Fire protection water supplies — Notification. Section 508 of the International Fire Code, entitled "Fire Protection Water Supplies," is amended by adding a new subsection 508.6 as follows: Sec. 508.6 Notification. The owner of property on which private hydrants are located and the public agencies that own or control public hydrants must provide the fire code official with the following written service notifications Sec. 508.6.1 In-service notification. The fire code official shall be notified when any newly installed hydrant or main is placed into service. Sec. 508.6.2 Out-of-service notification. Where any hydrant is out of service or has not yet been placed in service, the hydrant shall be identified as being out of service and shall be appropriately marked as out of service, by a method approved by the fire code official. J Fire protection water supplies—Dead-end mains prohibited. Section 508 of the i International Fire Code, entitled "Fire Protection Water Supplies," is amended by adding a new subsection 508 7 as follows. Sec. 508.7 Dead-end mains prohibited. When appropriate, all water mains in any project shall be looped. K. Fire protection water supplies— Building permit requirements. Section 508 of the International Fire Code, entitled "Fire Protection Water Supplies," is amended bye adding a new subsection 508.8 as follows. Sec. 508.8 Building permit requirements. No budding permit shall be issued until all plans required by this section have been submitted and approved in accordance with the provisions of this section. No construction beyond j the foundation shall be allowed until all hydrants and mains ! required by this section are in place and approved. 12 International Fire Code-Adoption L. Fire department access to equipment - Identification. Section 510 of the International Fire Code, entitled "Fire Department Access to Equipment," is amended by substituting subsection 510.1 with the following: Sec. 510.1 Identification. The following identification requirements shall apply to access to equipment. 1. Fire protection equipment and fire hydrants shall be clearly identified in an approved manner to prevent parking and/or other obstructions. 2. Entrances to rooms containing controls for air- conditioning systems, sprinkler risers and valves, or other fire detection, suppression, or control elements shall be identified for the use of the fire department. 3. Approved signs are required to identify fire protection equipment and equipment location. Signs shall be constructed of durable materials, permanently installed, and readily visible. 4. All fire department connections shall have a sign approved by the fire code official. The sign shall specify i the type of water-based fire protection system it serves and !I the building areas served. 5. All main control valves and sectional valves for water-based fire protection systems shall have a sign ! specifying what the valves control. ! 6. All sprinklers and standpipe risers shall have signs to indicate which type of water-based fire protection system is being used. Sec. 13.01.070. Amend[Mlens to the Inter nat:cn al Fire Code - Chapter 9,� Fire Protection Systems. The following local amendments to Chapter 9 of the! International Fire Code, entitled "Fire Protection Systems," are hereby adopted and incorporated into the International Fire Code as if fully set forth therein. A. Fire protection systems — Scope and application. Section 901 of thel International Fire Code, entitled "General," is amended by substituting subsection 901.1 with the following: Sec. 901.1 Scope and application. The provisions of this chapter shall apply to all occupancies and buildings, shall specify where fire protection systems are required, and shall apply to the design, installation, inspection, operation, testing, and maintenance of all fire protection systems, however, nothing contained in this chapter shall diminish or reduce the requirements of any duly adopted 13 International Fire Code•Adoption budding codes, including state and local amendments, or other City ordinances, resolutions, or regulations. In the event of any conflict in requirements among these codes, ordinances, resolutions, or regulations, the more stringent provision shall apply. B. Fire protection systems — Alterations, repairs, and additions. Section 901 of the International Fire Code, entitled "General," is amended by adding a new subsection 901.1.1 as follows- Sec. 901.1.1 Alterations, repairs, and additions. The j provisions of this subsection shall apply if, at the time of the first permit application, the county assessed valuation for the budding(s) subject to the permit application will increase by more than 50 percent due to alterations or repairs to the building(s) within any 70 month time period Additions to an existing structure shall be considered new construction and subject to the provisions of this section If additions to an existing structure cause a budding to meet I the area, number of floor levels, or units that would subject a new budding to the requirements of this section, the entire building will then be required to comply with this section. C. Fire protection systems - Standards. Section 901 of the International Fire Code, entitled `General," is amended by substituting subsection 901.61 and Table 901 6 1 with the following. i i Sec. 901.6.1 Standards. Fire protection systems shall be inspected, tested, and maintained in accordance with the National Fire Protection Association ("NFPA") standards listed in Table 901.6.1 below. I i ' I f � 14 International Fire Code-Adoption l Table 901.6.1 FIRE PROTECTION SYSTEM MAINTENANCE STANDARDS SYSTEM STANDARD Carbon dioxide fire-extinguishing systems NFPA 12 i Clean agent fire-extinguishing systems NFPA 2001 Dry chemical fire-extinguishing systems NFPA 17 Emergency power systems NFPA 110 & NFPA 111 Fire alarm systems NFPA 72 j' Fire doors NFPA 80 I Foam fire-extinguishing systems NFPA 11 Halogenated fire-extinguishing systems NFPA 12A Smoke-control systems NFPA 92A Underground fire lines and hydrants NFPA 25 !' Water-based fire protection systems NFPA 25 Water-mist systems NFPA 750 Wet chemical fire-extinguishing systems NFPA 17A I D Fire protection systems - Records. Section 901 of the International Fire Code,l entitled "General," is amended by substituting subsection 901 6 2 with the following: Sec. 901.6.2 Records. Records of all system inspections, tests, and maintenance required by the referenced standards shall be maintained on the premises for a minimum of 3 years. A copy of each inspection, test, or maintenance record shall be forwarded to the fire code official within 30 days of the date the inspection, test, or maintenance occurred. f i I E. Fire Protection Systems — Definitions. Section 902 of the International Fire Code, entitled "Definitions," is amended by adding the following three definitions: FIRE FLOW. A measure of the sustained flow of available water for firefighting at a specific building or within a specific area at 20 pounds-per-square-inch residual pressure. FIRE WALL. An approved wall of not less than 4 hour fire- resistive construction with no openings, which extends vertically from the foundation to terminate in a parapet not less than 30 inches above the roof, and which extends horizontally to the furthest projection of any portion of the 15 International Fire Code-Adoption building or to a point 30 inches beyond the intersecting i exterior wall, whichever is furthest. As an alternative to the horizontal requirements, such fire wall may be extended a minimum of 30 inches along both sides of the intersecting exterior wall, provided there are no projections beyond the intersecting exterior wall. I! LIFE SAFETY RESCUE ACCESS. Unobstructed access to all floor levels and each roof level of a building on not less than 20 percent of the budding perimeter by utilizing a 35 foot ladder. An alternate method would be at least 1 stairway enclosure with exit doorways from each floor level and with a door opening onto each roof level which conforms to the requirements of the International Building Code. �i F. Automatic sprinkler systems - Where required. Section 903 of the International Fire Code, entitled "Automatic Sprinkler Systems," is amended by substituting subsection 903.2 with the following. Sec. 903.2 Where required. Approved fire sprinkler systems shall be installed as follows: G 1. In all buildings without adequate fire flow as { required by this code E Exception: Group U Occupancies. E 2 All new buildings and structures with a gross floor area of 10,000 or more square feet (929 mZ), or where this code provides a more restrictive floor area requirement, and shall be provided in all locations or where described by this code. Exception: Spaces or areas in telecommunications buildings used exclusively for telecommunications equipment, associated electrical power distribution , equipment, batteries, and standby engines, provided those spaces or areas are equipped throughout with an automatic fire alarm system and are separated from the remainder of the building by a wall with a fire- resistance rating of not less than 1 hour and a j floor/ceding assembly with a fire-resistance rating of not less than 2 hours. 3. Where this code requires the installation of an automatic sprinkler system to protect an occupancy within an otherwise non-sprinklered budding, then automatic 16 International Fire Code-Adoption sprinkler protection will be required throughout the entire building. I G. Automatic sprinkler systems - Group A-3. Section 903 of the International Fire Code, entitled "Automatic Sprinkler Systems," is amended by substituting subsection j 903.2.1.3 with the following: Sec. 903.2.1.3 An automatic sprinkler system shall be provided for Group A-3 occupancies where one of the following conditions exists. 1. The fire area exceeds 12,000 square feet (1115 m2)• 2. The fire area has an occupant load of 300 or more. 3. The fire area is located on a floor other than the level of exit discharge. 4. Dance halls where the total gross floor area exceeds 5,000 square feet(465 m2). H. Automatic sprinkler systems — Speculative use warehouses. Section 903 of the International Fire Code, entitled "Automatic Sprinkler Systems," is amended by� adding the following new subsection 903 2.8.3: Sec. 903.2.8.3. Speculative use warehouses. Where the occupant, tenant, or use of the building or storage i commodity has not been determined or it is otherwise a speculative use warehouse or building, the automatic sprinkler system shall be designed and installed in accordance with the following: i 1. The design area shall be not less than 5,600 square feet (520 m2). 2. The density shall be not less than that for class IV non-encapsulated commodities on wood pallets, with no solid, slatted, or wire mesh shelving, and with aisles that are 8 feet or more in width and up to 20 feet in height 3. Sprinkler piping that is 4 inches and larger in width shall be used and the structural engineer of record shall provide written verification approving of the point and dead ! loads. I. Automatic sprinkler systems - Alarms. Section 903 of the International Fire Code, entitled "Automatic Sprinkler Systems," is amended by substituting subsection 903.4.2 with the following. 17 International Fire Code-Adoption Sec. 903.4.2 Alarms — Exterior notification. Approved audible alarm devices shall be connected to every automatic sprinkler system. Such sprinkler water-flow alarm devices shall be activated by water flow equivalent to the flow of a single sprinkler of the smallest orifice size j installed in the system. Alarm devices shall be water-motor operated and shall be provided on the exterior of the building in an approved location at each riser or riser group. Exception: NFPA 13D and NFPA 13R sprinkler systems may utilize an electrically operated alarm bell on the exterior of the building in an approved location at each riser or riser group, provided that the electrically operated alarm bell cannot be silenced during water flow. 9.03.4.2.1 Alarms — Interior notification. Actuation of the automatic sprinkler system shall actuate interior I(I audible/visual notification appliances as outlined in NFPA I 72 at all exits from all floors or where a fire alarm system is installed. The fire alarm system notification circuits shall provide the interior notification. i Exception: NFPA 13D and NFPA 13R sprinkler I systems do not require interior audible/visual notification appliances, except if a fire alarm system is installed, then the fire alarm system notification circuits shall provide the interior notification J Fire alarm and detection systems — General. Section 907 of the International Fire Code, entitled "Fire Alarm and Detection Systems," is amended to add subsection 907.1.3 as follows- Sec 907.1.3 Fire detection system. In addition to any requirement of subsection 907 2 or 907.3, all occupancies f exceeding 7,000 square feet gross floor area shall be required to provide an approved automatic fire detection system. Fire walls as noted in the International Building Code shall not be considered to separate a budding to enable deletion of the required fire detection system unless the fire walls are as defined in section 902 of this code j Exceptions: 1. Group U Occupancies I` 2. Occupancies protected throughout by an . approved/monitored automatic sprinkler system can delete heat detectors from the system 3. One and two family residences. 18 International Fire Code-Adoption +1 K. Fire alarm and detection systems - Duct smoke detectors. Section 907 of the International Fire Code, entitled `Fire Alarm and Detection Systems," is amended to repeat Exception 1 in subsection 907 12 The amended subsection 907.12 reads as follows: Sec. 907.12 Duct smoke detectors. Duct smoke detectors shall be connected to the building's fire alarm control panel when a fire alarm system is provided. Activation of a duct smoke detector shall initiate a visible and audible supervisory signal at a constantly attended location. Duct smoke detectors shall not be used as a substitute for required open area detection Exception: In occupancies not required to be equipped with a fire alarm system, actuation of a smoke detector shall activate a visible and an audible signal in an approved location. Smoke detector trouble conditions shall activate a visible or audible signal in an approved location and shall be identified as air duct detector trouble Sec. 13.01.080. Amendments to the International Fire Code - Chapter 14, Fire Safety During Construction and Demolition. The following local amendment to! Chapter 14 of the International Fire Code, entitled "Fire Safety During Construction] and Demolition," is hereby adopted and incorporated into the International Fire Code as if fully set forth therein s A Water supply for fire protection - When required Section 1412 of the International Fire Code, entitled "Water Supply for Fire Protection," is amended by! substituting subsection 1412 1 with the following: Sec 1412.1 When required. An approved water supply for fire protection shall be made available as soon as combustible material arrives on the site. F Sec. 13.01.090. Amendments to the International Fire Code - Chapter 27, Hazardous Materials - General Provisions. The following local amendment to Chapter 27 of the International Fire Code, entitled "Hazardous Materials - General 19 International Fire Code-Adoption Provisions," is hereby adopted and incorporated into the International Fire Code as if fully set forth therein. A. Storage— Ventilation— System requirements. Section 2704 of the International Fire Code, entitled "Storage," is amended by substituting subsection 2704.3.1 with the I. following: Sec. 2704.3.1 System requirements. Exhaust ventilation systems shall comply with all of the following. 1. Installation shall be in accordance with the International Mechanical Code. 2. Mechanical ventilation shall be at a rate of not less than 1 cubic foot per minute per square foot [0 00508 m3/(s mz)] of floor area over the storage area 3. Systems shall operate continuously unless alternative designs are approved. 4. A manual shutoff control shall be provided outside of the room in a position adjacent to the access door to the room or in another location, if approved by the fire code official. The switch shall be of the break-glass type and i shall be labeled: VENTILATION SYSTEM EMERGENCY SHUTOFF. FIRE DEPARTMENT USE ONLY. 5 Exhaust ventilation shall be designed to consider the density of the potential fumes or vapors released. For j fumes or vapors that are heavier than air, exhaust shall be I taken from a point within 12 inches (305 mm) of the floor. 6 The location of both the exhaust and inlet air openings shall be designed to provide air movement across all portions of the floor or room to prevent the accumulation of vapors. € F 7. Exhaust ventilation shall not be recirculated within I the room or budding if the materials stored are capable of emitting hazardous vapors I Sec. 13.01.100. Amendments to the International Fire Code—Appendix D, Fire Apparatus Access Roads. The following local amendments to Appendix D to the International Fire Code, entitled "Fire Apparatus Access Roads," are hereby adopted and incorporated into the International Fire Code as if fully set forth therein. A. Required access - Access and loading Section D102 of the International Fire Code, entitled "Required Access," is amended by substituting subsection D102.1 with ' the following 20 International Fire Code-Adoption Sec. D102.1 Access and loading. Facilities, buildings, or portions of buildings hereafter constructed shall be accessible to fire department apparatus by way of an approved fire apparatus access road with asphalt, concrete, or other approved driving surface capable of supporting the imposed load of fire apparatus weighing at least 30 tons (27,240 kg). l� B. Minimum specifications - Access road width with a hydrant Section D103 of the International Fire Code, entitled "Minimum specifications," is amended by substituting subsection D103.1 with the following: Sec D103.1 Access road width with a hydrant. Where a fire hydrant is located on a fire apparatus access road, the minimum road width shall be 26 feet (7925 mm). C. Minimum specifications - Dead-end fire apparatus access road turnaround —) Figure D1031. Figure D1031, entitled "Dead-end fire apparatus access road turnaround," which is included within Appendix D to the International Fire Code is hereby repealed. D. Minimum specifications - Grade. Section D103 of the International Fire Code,' entitled "Minimum specifications," is amended by substituting subsection D103 2 with! the following. i Sec. D103.2 Grade. Fire apparatus access roads shall not exceed 15 percent longitudinal and/or 6 percent laterally in grade. Approach and departure angle for fire apparatus access shall be as determined by the fire code official. i E. Minimum specifications — Turning radius. Section D103 of the lnternatlonal� Fire Code, entitled "Minimum specifications," is amended by substituting subsection! D103 3 with the following: Sec D103.3 Turning radius. The fire apparatus access road shall have a 23 foot minimum inside turning radius and a 45 foot minimum outside turning radius. 21 International Fire Code-Adoption i F. Minimum specifications — Requirements for dead-end fire apparatus access roads. Section D103 of the International Fire Code, entitled "Minimum Specifications," 1 is amended by substituting Table D103.4 with the following, TABLE D103.4 REQUIREMENTS FOR DEAD-END FIRE APPARATUS ACCESS ROADS LENGTH WIDTH TURNAROUNDS REQUIRED (feet) (feet) 0-150 20 None required 151-500 20 140-foot Hammerhead, 60-foot "Y" or 90-foot-diameter cul-de-sac 501-750 26 140-foot Hammerhead, 60-foot "Y" or 90-foot-diameter cul-de-sac Over 750 Special approval required G. Aerial fire apparatus access roads — Where required. Section D105 of the International Fire Code, entitled "Aerial fire apparatus access roads," is amended by substituting subsection D105.1 with the following. Sec. D105.1 Where required. Buildings or portions of buildings or facilities exceeding 28 feet (8535 mm) in height above the lowest level of fire department access shall be provided with approved fire apparatus access roads that are capable of accommodating fire department f aerial apparatus i i Sec. 13.01.110. Fire codes — Fees. The City Council shall, by resolution, establish the fees to be assessed for the fire codes adopted in this title. F Sec. 13.01.120. Appeals. A Appeals to the hearing examiner 1 Jurisdiction. In order to hear and decide appeals of orders, determinations, or decisions made by the fire code official relative to the suitability of alternate materials, designs, and methods of construction, and to provide for reasonable application and interpretation of the provisions of the International Fire i Code, the City of Kent hearings examiner is hereby designated as the board of appeals created pursuant to section 108 of the International Fire Code adopted in 22 International Fire Code-Adoption KCC 13.01 030 for all matters concerning the application of the fire codes. The City H hearings examiner, however, shall have no authority relative to interpretation of the i administrative provisions of these codes, nor shall the City hearings examiner be -! empowered to waive requirements of these codes. j� I 2. Filing. Appeals shall be filed with the hearings examiner by 5.00 p m of the fourteenth (14th) calendar day following the date of the order, determination, or decision being appealed. When the last day of the appeal period so computed is a Saturday, Sunday, or federal or City holiday, the period shall run until 5 00 p m. on the j! next business day. The appeal shall be accompanied by payment of the filing fee. Specific objections to the fire code official's decision and the relief sought shall be it stated in the written appeal. 3. Standing. Standing to bring an appeal under this chapter is limited to the following persons: a. The applicant and the owner of property to which the permit decision is directed. b. Another person aggrieved or adversely affected by the order, determination, or decision, or who would be aggrieved or adversely affected by a reversal or modification of the order, determination, or decision. A person who is I aggrieved or adversely affected within the meaning of this section only when all of the following conditions are present: i The order, determination, or decision has prejudiced or is likely to prejudice that person; , ii. A judgment in favor of that person would substantially E eliminate or redress the prejudice to that person caused or likely to be caused by the order, determination, or decision; and w. The appellant has exhausted his or her administrative remedies to the extent required by law B. Appeals to superior court. Appeals to the hearings examiner shall be made " !; pursuant to Ch 2 32 KCC The decision of the hearings examiner shall be final and conclusive unless within twenty-one (21) calendar days of the hearings examiner's decision an appeal is filed with the superior court. When the last day of the appeal period so computed is a Saturday, Sunday, or federal or City holiday, the period shall f 23 International Fire Code-Adoption run until the next business day. i+ 1' SECTION 2. — Repealer. Chapter 13.02 of the Kent City Code, entitled "Fire j Codes," is hereby repealed in its entirety SECTION 3. — Amendment A new Chapter 13 02 is added to the Kent City Code as follows CHAPTER 13.02 ENFORCEMENT OF THE FIRE CODES Sec. 13.02.010. Scope. This chapter shall govern enforcement actions conducted by the fire code official, pursuant to this title, of the fire codes adopted in KCC Title 13. Sec. 13.02.020. Definitions. The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning Fire code official means the fire chief or other designated authority charged with the administration and enforcement of the fire codes. i E Fire codes means and includes the International Fire Code as now or hereafter adopted, amended, and/or supplemented pursuant to KCC Title 13, the Revised Code of Washington, and/or the Washington Administrative Code f P i Sec. 13.02.030. Administration and enforcement. ` A It shall be the duty of the fire code official to enforce the fire codes in the manner generally described in the codes and as more particularly described in this = i chapter All enforcement of the fire codes shall only be performed by the fire code official or with his or her concurrence The fire code official may call upon the police or other appropriate City department(s) to assist in enforcement. B. It is the intent of this chapter to place the obligation of complying with the requirements of the fire codes upon the owner, occupier, or other person responsible 24 International Fire Code-Adoption j for the condition of the buildings, structures, dwelling units, or premises within the jscope of the fire codes. C. In case of conflict between the provisions of the fire codes and of this chapter, the provisions of this chapter shall control. i Sec. 13.02.040. Investigation and notice of violation. A. The fire code official shall investigate any building, structure, dwelling unit, or premises which the fire code official reasonably believes does not comply with the standards and requirements of the fire codes B. If, after investigation, the fire code official determines that the standards or requirements of the fire codes have been violated, the fire code official may seek compliance and serve a notice of violation on the owner, tenant, or other person responsible for the condition or may otherwise enforce the fire codes pursuant to this chapter and KCC 13.02 090. If a notice of violation is directed to a tenant or person other than the owner, a copy of the notice shall be sent to the owner of the property f Sec. 13.02.050. Stop work order. The fire code official may issue a stop I� work order pursuant to the provisions of the section 111 of the International Fire Code j or may issue such order wherever a continuing violation cf any of the fire codes will .' materially impair the fire code official's ability to secure compliance, or when a continuing violation threatens the health or safety of the public. A stop work order may include the placement of a stop work or stop use red tag upon the budding, structure, dwelling unit, or premises. Sec. 13.02.060. Emergency order. A. Whenever any building, use, dwelling unit, and/or premises, which violates the i' fire codes threatens the health and safety of the occupants of the building, dwelling unit, premises, or any member of the public, the fire code official may issue an emergency order requiring that the budding, dwelling unit, and/or premises be restored to a condition of safety, and specify the time set for compliance. In the alternative, the I 25 International Fire Code-Adoption !'order may require that the building, dwelling unit, and/or premises be immediately i vacated and closed to entry. i B. The emergency order shall be posted on the building, dwelling unit, and/or !premises and shall be mailed by regular, first class mail to the last known address of the owners, and if applicable, to the occupants. it C. Any budding, dwelling unit, and/or premises subject to an emergency order which is not repaired within the time specified in the order is hereby found and i declared to be a public nuisance, and the fire code official is authorized to abate that ,nuisance by any means and with any assistance that may be available to the official, and all abatement costs shall become a lien against the property and shall be recovered by the fire code official in any manner provided by law f Sec. 13.02.070. Extension of compliance date. I A The fire code official may grant an extension of time for compliance with any notice or order, whether pending or final, upon finding that substantial progress toward compliance has been made and that the public will not be adversely affected by the E extension. I B An extension of time may be revoked by the fire code official (1) if the I conditions at the time the extension was granted have changed, (2) if the fire code official determines that a party is not performing corrective actions as agreed, or (3) if the extension creates an adverse effect on the public The date of revocation shall then be considered as the compliance date Sec. 13.02.080. Violations. A. It shall be unlawful to fad to comply with a notice of violation, final order, stop !work order, condemnation tag or any other order or restriction imposed by the fire code official and issued pursuant to this title B. It shall be unlawful to remove or deface any sign, notice, complaint, or order required by or posted by the fire code official in accordance with his or her enforcement duties under this title. i 26 International Fire Code-Adoption 1IC. It shall be unlawful for any person to obstruct, impede, or interfere with any lawful attempt to correct a violation or to comply with any notice of violation, final !'order, stop work order, or condemnation tag. iI 1 D It shall be unlawful for any person to fail to comply with an emergency order !['issued by the fire code official requiring that the building, dwelling unit, and/or premises be restored to a condition of safety by a specified time. E. It shall be unlawful for any person to use or occupy, or to cause or permit any person to use or occupy the building, dwelling unit, and/or premises after the date provided in an emergency order requiring the budding, dwelling unit, and/or premises to be vacated and closed, until the fire code official certifies that the conditions ;described in the emergency order have been corrected and the budding, dwelling unit, and/or premises have been restored to a safe condition Sec. 13.02.090. Violation — Penalty. A. Civil. Violation of any provision of this title constitutes a civil violation under Ch 1 04 KCC for which a monetary penalty may be assessed and abatement may be required and/or otherwise enforced as provided therein ! B. Criminal. In addition or as an alternative to any other enforcement procedure or penalty in this chapter, a violation of any provision of this chapter or a code enforced by this chapter shall constitute a misdemeanor punishable by imprisonment 'in jail for a maximum term fixed by the court of not more than ninety (90) days, or by a fine in an amount fixed by the court of not more than one thousand dollars ($1,000), or ,,by both such imprisonment and fine All misdemeanor charges fled under this section shall be filed with the Kent municipal court and shall bear the signature of the Kent city attorney or his or her designee. When the City files a criminal offense pursuant to this subsection, it shall have the burden of proving, beyond a reasonable doubt, that the violation occurred. C Separate offense. Each day that anyone shall continue to violate or fad to comply with any of the foregoing provisions shall be considered a separate offense. 27 International Fire Code-Adoption Sec. 13.02.100. Additional relief. The fire code official may seek legal or equitable relief to enjoin any acts and practices and abate any condition which constitutes or will constitute a violation of the fire codes when civil or criminal penalties are inadequate to effect compliance Nothing in this chapter shall be deemed to limit 'or preclude any other action or proceeding relating to the enforcement of the fire codes. I SECTION 4. - Repealer. Chapter 13.03 of the Kent City Code, entitled "Fire Suppression Systems," is hereby repealed in its entirety SECTION 5. - Repealer. Chapter 13.04 of the Kent City Code, entitled "Fire Hydrants," is hereby repealed in its entirety. SECTION 6. - Repealer Chapter 13 14 of the Kent City Code, entitled "Enforcement," is hereby repealed in its entirety. SECTION 7. - Amendment. Section 9 01.120 of the Kent City Code, entitled "Enhanced 911 (E-911) service -Appeals" is amended as follows. I i Sec. 9.01.120. Enhanced 911 (E-311) service -A;.peals. Any party affected I by a decision of the fire chief not to issue a permit or certification of occupancy ' i pursuant to KCC 9.01 110 herein may, within fifteen (15) days after the date of the ; decision, only petition the superior court for review of the fire chiefs decision There &gal,-bey— .Appeals from KCC 9 01 040 through 9 01 120 to the board of appeals as provided in section 2 303 108 of the IJR)ferra International Fire Code, adopted in KCC !f 13.01 01043 02 010 are not allowed SECTION 8. - Amendment. Subsection 15 08.050(D)(9)(g) of the Kent City Code, which pertains to site development standards is amended to revise the reference from the Uniform Fire Code to the International Fire Code as follows- I 28 International Fire Code-Adoption it I) � Sec. 15.08.050(D)(9). Hazardous substances or wastes. if ;! (g) Hazardous substance land uses shall comply with Artide 80 e# the Uniferm International Fire Code as revise ' OR 1988 and therea��r i! SECTION 9. — Savings. The existing chapters and sections of the Kent City i; Code, which are repealed and replaced by this ordinance, shall remain in full force and effect until the effective date of this ordinance. �f SECTION 10. - Severability. If any one or more section, 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 11. —Effective Date. This ordinance shall take effect and be in force on July 1, 2004 JIM WHITE, MAYOR I ATTEST: I BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY i 29 International Fire Code-Adoption (PASSED: day of May, 2004 APPROVED: day of May, 2004. PUBLISHED: day of May, 2004 i 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. I j (SEAL) j BRENDA JACOBER, CITY CLERK P\Civil\ORDINANCE\FimCode-Adopwn doo i s E I, 30 International Fire Code-Adoption RESOLUTION NO. A RESOLUTION of the City Council of the City of Kent, Washington, adopting a schedule of fees for permits, certificates, and inspections issued and conducted under the provisions of the International Building Code, the International Residential Code, the International Mechanical Code, the Uniform Plumbing Code, and the International Fire Code, effective July 1, 2004. RECITALS A. Sections 13 01.110 and 14.01.090 of the Kent City Code authorize the City Council, by resolution, to establish a schedule of fees applicable to permits, certificates, and inspections issued and conducted under the International Building Code, the International Residential Code, the Intemational Mechanical Code, the Uniform Plumbing Code, and the International Fire Code B. It is appropriate to adjust the fees previously adopted by Resolution No 1559 relating to the 1997 editions of the Uniform Budding Code, the Uniform Mechanical Code, the Uniform Plumbing Code, and the Uniform Fire Code, which will cease to exist within the City of Kent effective July 1, 2004. C. The schedule of fees in this resolution have been proposed by the City's building code official and fire code official, and include the cost of administration and inspection involved in the processing, issuance, and renewal of such permits and certificates. 1 Fee Schedule Under the lntemational Building, Residential,Mechanical and Fire Codes and the Uniform Plumbing Code NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS' RESOLUTION SECTION 1. —Fees Established The following fee schedules shall govern the monetary charges assessed by City departments for reviewing and processing permit applications and for issuing permits under the International Building Code, the International Residential Code, the International Mechanical Code, the Uniform Plumbing Code, the International Fire Code, and related codes: A International Building Code and International Residential Code - Building permit and plan review fees. Pursuant to Section 14 01.090 of the Kent City Code, the fees to be assessed for building permits and related inspections under the International Building Code or the International Residential Code shall be as set forth in Exhibit "A,° which is attached and incorporated into this ordinance, with the following modifications 1. Standard plan review fees. Whenever construction documents, as defined in the International Building Code and International Residential Code, are submitted for review pursuant to section 106 of the International Building Code or section R106 of the International Residential Code, a plan review fee equal to sixty- five (65) percent of the building permit fee shall be assessed 2 Basic plan review fees. The basic plan review fee, after and in addition to the payment of the initial standard plan review fee set forth in subsection (1) above, shall be a fee of $64.00 for each permit issued upon a certified basic plan. Additional plan review fees shall also be assessed at a rate of eighty-six dollars ($86.00) per hour or a portion thereof for additional plan review required for changes, additions, or revisions to plans 3. Administration of basic plans Basic plans shall be administered as follows: 2 Fee Schedule Under the International Building, Residential,Mechanical and Fire Codes and the Uniform Plumbing Code a. "Basic plans' are defined as complete plans for an entire detached single family residential building, approved as such by the building official, which: (i) Are clearly marked as being approved and certified as "basic" by the budding official, (ii) Bear the author's (including but not limited to architect, engineer, or others) acknowledgment and approval of the plans submitted for use in the construction of a number of buildings, without any limitation of quantity or location. If any portion is designed by a licensed architect or engineer, this acknowledgment shall bear the author's stamp and signature. (iii) Basic plan review fees shall apply only to detached single family residential buildings and shall apply only to the originating owner or applicant. (iv) Changes to basic plans which alter the exterior dimensions or structure of the building shall be treated as a new permit application. b. The process for administering basic plans shall be as follows. (i) Any person may apply for plan review and certification of a basic plan by filing an application for such plan review and certification, along with two (2) or more complete sets of plans and the standard plan review fee. (n) Upon completion and approval of plan review, the applicant shall provide reproducible copies of complete, approved plans to the building official. c The City's building official is authorized and empowered to interpret and determine the applicability and administration of the provisions of this resolution 3 Fee Schedule Under the International Building, Residential,Mechanical and Fire Codes and the Uniform Plumbing Code B. International Mechanical Code - Mechanical permit and plan review fees. Pursuant to Section 14.01.090 of the Kent City Code, the fees to be assessed for mechanical permits issued for the installation of mechanical equipment under the International Mechanical Code or the International Residential Code, as may be applicable, shall be as set forth in Exhibit T," which is attached and incorporated into this ordinance, with the following modifications: 1. Standard plan review fees. Whenever construction documents, as defined in the International Mechanical Code or the International Residential Code, are submitted for review pursuant to section 106 of the International Mechanical Code or section R106 of the International Residential Code, a plan review fee equal to twenty-five (25) percent of the mechanical permit fee shall be assessed. C. Uniform Plumbing Code — Plumbing permit and plan review fees Pursuant to Section 14.01 090 of the Kent City Code, the fees to be assessed for plumbing permits issued for the installation of plumbing equipment under the Uniform Plumbing Code or the International Residential Code, as may be applicable, shall be as set forth in Exhibit "C," which is attached and incorporated into this ordinance, with the following modifications 1. Whenever construction documents, plans, specifications, engineering calculations, diagrams or other data are submitted for review pursuant to section 103 of the Uniform Plumbing Code or section R106 of the International Residential Code, a plan review fee equal to twenty-five (25) percent of the plumbing permit fee shall be assessed. D. International Fire Code — Fire permit and plan review fees. Pursuant to Section 13.01.110 of the Kent City Code, the fees to be assessed for fire permits or certificates and related inspections under the International Fire Code shall be as set forth in Exhibit "D," which is attached and incorporated into this ordinance. SECTION 2. - Repealer. Resolution No. 1559 is hereby repealed in its entirety on the effective date of this resolution 4 Fee Schedule Under the International Building,Residential, Mechanical and Fire Codes and the Uniform Plumbing Code SECTION 3. — Savin s. Resolution No. 1559 and the fees established in that resolution, which are repealed and replaced by this resolution, shall remain in full force and effect until the effective date of this resolution. SECTION 4. — Severabillty. 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 5. - Effective Date. The effective date of this resolution shall be the effective date of the two (2) ordinances considered concurrently with this resolution amending Title 13 and Ch. 14.01 of the Kent City Code, which shall be July 1, 2001. PASSED at a regular open public meeting by the City Council of the City of Kent, Washington, this day of May, 2004. CONCURRED in by the Mayor of the City of Kent this day of May, 2004 JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY 5 Fee Schedule Under the International Building,Residential, Mechanical and Fire Codes and the Uniform Plumbing Code 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 May, 2004. BRENDA JACOBER, CITY CLERK 6 Fee Schedule Under the international Building,Residential,Mechanical and Fire Codes and the Uniform Plumbing Code Exhibit "A" City of Kent Building Permit Fees Total valuation determined by building official Permit Fee Assessed $1 00 to$500.00 $23 50 $501.00 to $2,000.00 $23.50 for the first$500 00, plus $3.05 for each additional $100 00, or fraction thereof, to and including $2,000 00 $2,001.00 to$25,000 00 $69.25 for the first$2,000 00, plus$14 00 for each additional $1,000.00, or fraction thereof,to and including $25,000 00. $25,001 00 to$50,000 00 $391.25 for the first$25,000 00, plus $10.10 for each additional $1,000.00, or fraction thereof,to and including $50,000 00. $50,001.00 to$100,000.00 $643 75 for the first$50,000.00, plus $7 00 for each additional $1,000 00, or fraction thereof, to and including $100,000.00 $100,001.00 to$500,000 00 $993. 75 for the first$100,000.00, plus$5 60 for each additional $1,000 00, or fraction thereof, to and including $500,000.00. $500,001 00 to $1,000,000 00 $3,233.75 for the first$500,000 00, plus$4.75 for each additional $1,000 00, or fraction thereof, to and including $1, 0 00 $1,000,001 00 and up $5,608.75 8.75 for for the first$1,000,000 00, plus $3 15 for each additional $1,000 00, or fraction thereof. Other Inspections and Fees For inspections outside of normal business hours (minimum charge—two hours).. . ... . . $86 00 per hour Remspection fees assessed when work for which an inspection is requested is not complete,when required corrections have not been made, when work is not accessible, or when the permit or approved plans are not made readily available. .. ... .. .... .. . . . .. $86 00 per hour Additional plan review required by changes, deferred submittals, additions, or revisions to plans .. .. ...... . .. . ...... . . ......... .... .. .. ... . .... $86.00 per hour Investigation fee when work is commenced prior to obtaining required Building, mechanical, or plumbing permit . . . . ..... . .. ... . ...... . . ... 100%of permit fee Appeal filing fee..... .. ........ . .. .. .. . $200.00 1 Exhibit A— Building Permit Fees Exhibit "B" City of Kent Mechanical Permit Fees Permit Issuance Fees: 1 For the issuance of each mechanical permit . . . . ... ... . . . . . . $27 00 2 For issuing each supplemental permit for which the original permit has not expired, been canceled, or finalized . . $8 00 Unit Fee Schedule: 1 For each forced-air or gravity-type furnace or boiler, including ducts and vents attached, up to and including 100,000 Btu/h (29 3 kW) $17.00 2 For each forced-air or gravity-type furnace or boiler, including ducts and vents attached, over 100,000 Btu/h (29 3 kW) . ... ... ... $21 00 3. For each floor furnace, suspended heater, recessed wall heater or floor-mounted heater, including vent........ .. . . . . ..... ... ... .... $17 00 4 For each appliance vent not included in an appliance permit. $8 00 5. For repair of, alteration of, or addition to each heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption, or evaporative cooling system, including controls, regulated by the mechanical code or residential code . . ..... . . . . $16 00 6. For each boiler or compressor: ■ to and including 3 horsepower(10 6 kW), or each absorption system to and including 100,000 Btu/h (29.3 kW). 1700 • over 3 horsepower(10 6 kW)to and including 15 horsepower (52 7 kW), or each absorption system over 100,000 Btu/h (29 3 kW) to an including 500,000 Btu/h (146 6 kW) $31 00 • over 15 horsepower(52 7 kW)to and including 30 horsepower (105 5 kW), or each absorption system over 500,000 Btu/h (293 1 kW) to and including 1,000,000 (293 1 kW) . . $43 00 • over 30 horsepower (105 5 kW)to and including 50 horsepower (176 kW), or each absorption system over 1,000,000 Btu/h (293.1 kW)to and including 1,750,000 (512 9 kW)....... .. $64 00 • over 50 horsepower (176 kW)or each absorption system over 1,750,000 Btu/h (512.9 kW). $107 00 7. For each air-handling unit to and including 10,000 cubic feet per minute (cfm)(4,719 Us), including ducts attached thereto,which is not a portion of factory assembled appliance or unit for which a permit is required $12 00 • over 10,000 cfm (4,719 Us). . .... . ........ .. .. $21 00 8 For each evaporative cooler other than portable type $12 00 9. For each ventilation fan connected to a single duct $8 00 10. For each ventilation system which is not a portion of any heating or air-conditioning system authorized by a permit $12 00 11. For each hood served by mechanical exhaust, including the ducts for such hood .. ..... . . . .. ... . .. $12 00 12 For each domestic-type incinerator.. $21 00 13 For each commercial or industrial-type incinerator . .. .. . . ... $17 00 1 Exhibit B— Mechanicai Permit Fees (CONY.) Exhibit "B" City of Kent Mechanical Permit Fees Unit Fee Schedule (cont)• 14. For each mechanical appliance or piece of equipment regulated by the mechanical code or the residential code, not classed in other appliance categories, or for which no other fee is listed in this table .. .. .. .. .... ..... .. .... ..$12 00 15. For each fuel gas or fuel oil piping system of one to five outlets.. . . .... ......... .. $6.00 16. For each additional piping system outlet, per outlet ..... ................. ... ......... ... $1.00 Other Inspections and Fees- For inspections outside of normal business hours (minimum charge—two hours)... . . . ...... ........... .. $86 00 per hour Remspection fees assessed when work for which an inspection is requested is not complete, when required corrections have not been made, when work is not accessible, or when the permit or approved plans are not made readily available.. . . .. . .... .. .. . ....... . . ..... .. . $86 00 per hour Additional plan review required by changes, deferred submittals, additions, or revisions to plans $86 00 per hour Investigation fee when work is commenced prior to obtaining required budding, mechanical, or plumbing permit 100% of permit fee Appeal filing fee... . ....... ... .. . . . . . . . $200 00 2 Exhibit B— Mechanical Permit Fees Exhibit "C" City of Kent Plumbing Permit Fees Permit Issuance Fees: 1. For the issuance of each plumbing permit .. . . .... . .. . .... . ... $23 00 2 For issuing each supplemental permit for which the original permit has not expired, been canceled or finalized. . $12 00 Unit Fee Schedule. 1. For each plumbing fixture on one trap or a set of fixtures on one trap, including water, drainage piping and backflow protection therefore . .. . . .. $8 00 2. For each budding sewer and each trailer park or mobile home park sewer .$17.00 3 Rainwater systems-per drain (inside building) . . . $8 00 4 For each water heater and/or vent. .$8 00 5. For each industrial waste pretreatment interceptor including its trap and vent, except kitchen-type grease interceptors functioning as fixture traps $8 00 6. For each installation,alteration or repair of water piping and/or water treating equipment, each .. . .... .. . ....... . . . .. ........... ........ ........ . .. . . .. . . . . .. $8 00 7. For each repair or alteration of drainage or vent piping, each fixture . . . . . . $8 00 8. For each lawn sprinkler system on any one meter including backflow protection devices therefore ... . .. .$8 00 9 For atmospheric-type vacuum breakers not included in item 8. 1 to 5 vacuum breakers . . $6 00 over 5 vacuum breakers, each 1 00 10 For each backflow protective device other than atmospheric-type vacuum breakers 2 inch (51 mm)diameter or smaller $8 00 over 2 inch (51 mm)diameter . . . .... $17 00 11 For each graywater or reclaimed water system . . $46 00 12 For each medical gas piping system for a specific gas 1 to 5 inlets/outlets... ... .................... .. .. .. . . .. ....................... $58.00 over 5 inlets/outlets, each . . . . $6 00 Other Inspections and Fees- For inspections outside of normal business hours (minimum charge—two hours).. ........ . . $86 00 per hour Remspection fees assessed when work for which an inspection is requested is not complete, when required corrections have not been made, when work is not accessible, or when the permit or approved plans are not made readily available $86 00 per hour Additional plan review required by changes, deferred submittals, additions, or revisions to plans . ... . . ... .. ... $86 00 per hour Investigation fee when work is commenced prior to obtaining required building, mechanical, or plumbing permit. . .. 100% of permit fee Appeal filing fee . ....... . . .. . ... ... . .. ...... $200 00 1 Exhibit C— Plumbing Permit Fees Exhibit "D" City of Kent Fire Permit Fees Permit Issuance Fees: 1. For the issuance of each annual permit under the fire code .. . . ..... . ........... $57.50 2. For the issuance of each annual fire protection system permit, per building ... .. .... . .. ........ . .. . ... $75.00 3. For the issuance of a residential home heating fuel tank removal permit, per application............ .......... . ...... . ..... . . . . .. $75 00 4. For the issuance of a fireworks permit for a fireworks stand, per application . $100 00 5. For the issuance of a fireworks permit for a fireworks display, per application $100 00 Other Inspections and Fees. For each hydrant flow request . .. ... ... ....... ...... ......... . .... .... ... $86 00 per hour Initial fire and life safety inspection for new business, per application .. . .. ... . . . .. . $50 00 For inspections outside of normal business hours (minimum charge—two hours) .... .. ...... . $86 00 per hour Reinspection fees assessed when work for which an inspection is requested is not complete, when required corrections have not been made, when work is not accessible, or when the permit or approved plans are not made readily available.... .... .. . .. ....... . . . . . . .. .. ... . ... . . ... $86 00 per hour Appeal filing fee. $200 00 Penalty Fees Failing to mark or maintain the marking of a designated fire lane.... .. $150 00 1 Exhibit D— Fire Permit Fees Kent City Council Meeting Date May 4, 2004 Category Other Business 1. SUBJECT: IMPOUNDMENT RESERVOIR PROPERTY, AMENDMENT TO PURCHASE AND SALE AGREEMENT — AUTHORIZE 2. SUMMARY STATEMENT: Yarrow Bay Development, LLC, the purchaser of the reservoir impoundment property, is ready to remove the feasibility contingency on the property, which ends May 7, 2004, and proceed with payments to the City in the total of $11.5 million. Because Yarrow Bay originally assumed a development capacity on the site slightly higher than the zoning that was adopted, they have requested a change in the timing of their payments. The amendment proposes three earnest money payments applicable to the purchase price ($500,000 at removal of the feasibility period, $1 million on July 1, 2004, $1 million on October 1, 2004), and the remainder at closing on April 1, 2005. 3. EXHIBITS: Proposed Addendum 6 to the Real Estate Purchase & Sale Agreement 4. RECOMMENDED BY: Staff (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenues N/A Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember V�� Q seconds to authorize the Mayor to sign the addendum to the Purchase and Sale Agreement between Yarrow Bay Development, LLC and the City of Kent for the sale of the Impoundment Reservoir Property. DISCUSSION: LAk6 ACTION: MC (n -/ Council Agenda Item No. 7A OFFICE OF THE MAYOR Jim White, Mayor Phone 253-856-5700 Fax 253-856-6700 KENT W A 5 H I N G T O N Address 220 Fourth Avenue S Kent,WA 98032-5895 April 28, 2004 TO: All Councilmembers FROM: Nathan Torgelson, Economic Development Manager THROUGH Mayor Jim White SUBJECT: Amendment to Reservoir Property Purchase and Sale Agreement Below for your information is a comparison of the payment schedule in the existing purchase and sale agreement, and what is proposed in the amendment. The original purchase and sale agreement called for the City to receive $500,000 in earnest money (applicable to the purchase price) at the removal of the buyer's feasibility period, S8 5 million in cash at Closing(10 days later), and the remainder of the $11 5 million payable upon a Notice of Completeness on a PUD or Plat application or December 1, 2005. whiche"er is sooner The amendment proposes three earnest money payments applicable to the purchase price ($500,000 at removal of the feasibility period, $1 million on July 1, 2004, $1 million on October 1, 2004), and the remainder of the $11 5 million at closing on April 1, 2005, or earlier if the buyer desires. Kent Council Operations Committee 1 Kent Station PSA Amendment April 6,2004 ADDENDUM SIX TO THE REAL ESTATE PURCHASE AND SALE AGREEMENT BETWEEN YARROW BAY DEVELOPMENT, LLC. AND THE CITY OF KENT Yarrow Bay Development, LLC ("Buyer"), with offices located at 825 Fifth Avenue, Suite 202, Kirkland, Washington, and the City of Kent ("Seller") with offices located at 220 — 4`h Avenue South, Kent, Washington 98032, hereby enter into this Addendum S ix t o t he R eal E state P urchase a nd S ale A greement s igned o n o ctober 8, 2003, as amended by Addendum One signed on December 18, 2003, Addendum Two signed o n F ebruary 13, 2004, A ddendum T hree s igned o n M arch 1 , 2 004, A ddendum Four signed on March 8, 2004, and Addendum Five signed on April 13, 2004 (collectively the "Agreement'). 1. Section 2. of the Agreement shall be amended as follows. 2. EARNEST MONEY. Buyer shall pay earnest money in the amount of Two Million Five Hundred Thousand Dollars and N o/100 ($2,500,000.00). Payments shall be made to the Closing Agent, Pacific Northwest Title, whose address and telephone number is 116 Washington Avenue North, Kent, Washington 98032-5717, (253)520- 0805 The Closing Agent shall disburse the earnest money payments to the City upon the Closing Agent receiving payments from Buyer as follows (a) Five Hundred Thousand and No/100 Dollars (S500,000 00) in the form of a promissory note, as seen in Exhibit B attached and incorporated herein (Earnest Money Note), payable upon the satisfaction and removal of Buyer's Feasibility Study contingency in subsection 4(c) Seller acknowledges receipt of the Earnest Money Note. Following the satisfaction and removal of Buyer's Feasibility Study, this first installment of the earnest money shall be nonrefundable, except in the case of Seller's default, and shall be applicable to the purchase price. (b) One Million Dollars and No/100 ($1.000,000 00) in cash on July 1, 2004. This second installment of the earnest money shall be nonrefundable, except in the case of Seller's default, and shall be applicable to the purchase price. (c) One Million Dollars and No/100 ($1,000,000 00) in cash on October 1 , 2 004. T his third t nstallment o f t he e amest in oney s hall b e nonrefundable, except in the case of the Seller's default, and shall be applicable to the purchase price 2. Section 3 of the Agreement shall be amended as follows: 3 PURCHASE PRICE. The purchase price for the Property is Eleven Million Five Hundred Thousand Dollars and No/100 ($11,500,000.00). The balance of ADDENDUM SIX TO REAL ESTATE PURCHASE AND SALE AGREEMENT BETWEEN YARROW BAY DEVELOPMENT, LLC AND THE CITY OF KENT Page 1 of 2 the purchase price remaining after payment of the earnest money shall be paid in cash at Closing. 3. Section 7 of the Agreement shall be amended as follows• 7. CLOSING OF THE SALE With the understanding that time is of the essence for,this Agreement, this sale shall be closed on April 1, 2005, or sooner at Buyer's option, unless said date is extended in wnting by mutual agreement of the parties ("Closing"). When notified, the Buyer and Seller will deposit, without delay, with the Closing Agent, all instruments and monies required to complete the transaction in accordance with this Agreement At Closing, all documents will be executed and the sale proceeds will be available for disbursement to the Seller 4. Section 8. of the Agreement shall be amended as follows 8. POSSESSION AND RIGHT OF ENTRY. Buyer shall be entitled to possession upon Closing Prior to Closing and upon satisfaction and removal of the Feasibility Study contingency, Buyer is granted a right of entry on the Property for additional testing that may be necessary to submit an application to the City for a preliminary plat or planned unit development. The Buyer agrees to repair any damage to the Property caused by the Buyer's use of the right of entry The Buyer agrees to keep all holes dug in the ground covered whenever the holes are not being directly monitored by an individual on the Property The Buyer further agrees to indemnify, defend, and hold the Seller harmless from and against any and all damages, losses, and expenses ansmg out of or resulting from any claim, action, or other proceeding that is based upon any negligent act or omission or willful misconduct of the Buyer or its employees or agents, ansmg in connection with the right of entry. 5. Section 11. of the Agreement shall be amended as follows• 11. DEFAULT AND ATTORNEY'S FEES (a) Default. (i) In the event Buyer fails, without legal excuse, to complete the purchase of the Property, Seller shall be entitled to all rights and remedies otherwise available at law or in equity (n) In the event that Seller fails, without legal excuse, to complete the sale of the Property, Buyer shall be entitled to all rights and remedies otherwise available at law or in equity (b) Attorney's Fees and Costs In the event of litigation or a claim of any kind to enforce any of the terms or provisions herein, each party shall be responsible to pay all of its attorney's fees and costs incurred in bringing or defending the claim or suit. ADDENDUM SIX TO REAL ESTATE PURCHASE AND SALE AGREEMENT BETWEEN YARROW BAY DEVELOPMENT, LLC AND THE CITY OF KENT Page 2 of 2 6 Except as modified by this Addendum Six, all the terms and conditions of the Agreement will remain in full force and effect. 7. Facsimile signatures on this Addendum Six shall be considered originals. This Addendum Six will take effect on the last date entered below. SELLER: BUYER: CITY OF KENT YARROW BAY DEVELOPMENT, LLC By: By: Jim White, Mayor Managing Member Dated. Dated- APPROVED AS TO FORM: By- Kent City Attorney Dated: P 10v�1\FILES�OpenFdes`,0751\REPSA-Addrndu.6 da ADDENDUM SIX TO REAL ESTATE PURCHASE AND SALE AGREEMENT BETWEEN YARROW BAY DEVELOPMENT,LLC AND THE CITY OF KENT Page 3 of 2 Kent City Council Meeting Date ME 4, 2004 Category Other Business 1. SUBJECT: EAST HILL SKATE PARK 2. SUMMARY STATEMENT: Parks Director Hodgson will report on the status of the master plan and the status of the land donation by Arbor Village to create a larger park facility and add multi-generational amenities. 3. EXHIBITS: None 4. RECOMMENDED BY: (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? N/A Revenue? N/A Currently in the Budget? Yes No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 7B Kent City Council Meeting Date May 4, 2004 Category Bids 1. SUBJECT: HORSESHOE ACRES STORM WATER PUMP STATION ENGINE REPLACEMENT—AWARD 2. SUMMARY STATEMENT: The bid opening for this project was held on April 20, 2004, with six bids received. The low bid was submitted by T. Miller Construction in the amount of$322,809.60. The Engineer's estimate was $359,584.00. 3. EXHIBITS: Public Works Director's memorandum 4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: Councilmember [t)kct moves, Councilmember seconds that the Horseshoe Acres Stormwater Pump Station contract be awarded to T. Miller Construction in the amount of S322,809.60. DISCUSSION: ACTION: lyc, Council Agenda Item No. 8A PUBLIC WORKS DEPARTMENT Don E Wickstrom, P E Public Works Director Phone 253-856-5500 Fax 253-856-6500 KENT Address 220 Fourth Avenue S W 4 5 H N G O N Kent, WA 98032-5895 Memorandum DATE April 20, 2004 TO Mayor White and Kent City Council FROM Don Wickstrom, Public Works Director RE Horseshoe Acres Stormwater Pump Bid opening for this project was held on April 20, 2004 with six bids received The low bid was subrmtted by T Miller Construction in the amount of$322,809 57 The Engineer's estimate was $359,584 00 The Public Works Director recommends awarding this contract to T Miller Construction Bid Summary T Miller Construction $322,809 60 VLS Construcion, Co , Inc $338,053 57 David L Sack Construction Co , Inc $338,550 78 Standard Construction, Inc $348,704 00 Omega Contractors, Inc $391,462 40 Stouder General Construction, LLC $441,401 60 Engineer's Estimate $359,584 00 Kent City Council Meeting Date May 4, 2004 Category Bids 1. SUBJECT: S. 228TH ST. CORRIDOR GRADE AND FILL —AUTHORIZE 2. SUMMARY STATEMENT: The proposed motion will authorize the contract award for the South 228th Street Corridor 2004 Grade and Fill project, which will complete the first stage of construction on the S. 228th Street Corridor Extension project. Approximately 500,000 cubic yards of earth embankment will be constructed near the Green River. The fill material for this embankment would come from property currently owned by the City of Seattle. This contract will not be awarded until the City of Seattle has approved that sale, which should occur within approximately two weeks. Bids for this project were opened on Monday, May 3. Don Wickstrom, Public Works Director, will make a brief presentation to identify the successful bidder. 3. EXHIBITS: Public Works Director's memorandum 4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. FISCAL IMPACT Expenditure? X Revenue? Currently in the Budget? Yes X No If no: Unbudgeted Expense: Fund Amount $ Unbudgeted Revenue: Fund Amount $ 6. CITY COUNCIL ACTION: nn Councilmember moves, Councilmember lX ccn k seconds to award the 228th Street Extension Grade and Fill project contract to in the amount of$ A05'� 114-7 q D , subject to approval of the sale of a portion of the Kent Highlands property to the City of Kent by the Seattle City Council and Mayor Greg Nichols. DISCUSSION: ACTION: Council Agenda Item No. 8B COMMUNITY DEVELOPMENT Page 1 of 2 Jacober, Brenda From Perschek,Janet Sent: Wednesday,April 28, 2004 1 38 PM To: Jacober, Brenda Subject: PW MEMO_0426041 doe -" UBLIC WORKS DEPARTMEI Don E Wickstrom, P E. Public Works Direc Phone 253-856-5 Fax 253-856-6 Address 220 Fourth Avenu Kent,WA 98032-5 April 28, 2004 TO: Kent City Council FROM: Don Wickstrom, Public Works Director SUBJECT: S. 228th Street Extension—2004 Grade and Fill Project SUMMARY: The South 228th Street Corridor 2004 Grade and Fill project would complete the first stage of construction on the S 228th Street Extension. Approximately 500.000 cubic yards of earth embankment would be constructed near the Green River. The fill material for this embankment Ni ould come from property currently owned by the City of Seattle. Staff expects to finalize the Seattle property sale to Kent in June Public Works is requesting the motion to authorize Mayor White to sign the construction contract for the 2004 Grade and Fill in order to expedite construction If the matter were to wait for the 5/18/04 Council meeting, two weeks of the construction season would be lost. Important advance construction work can be done in these two weeks. This contract previously went to advertised bids, but the City decided to reject all bids because of certain bid discrepancies. In order to meet construction season deadlines, staff immediately re-advertised the project, setting a new bid opening date of Monday, June 3. Because the date of printing this memo precedes the bid opening date, staff is unable to post the low bid for the project. Public Works Director Don Wickstrom will make a presentation on this matter and identify the bidder to be awarded the contract, as well as the contract amount. BUDGET IMPACT: No Unbudgeted Fiscal/Personnel Impact. The construction project has been included in the anticipated costs for the S 228th Street Extension Based on bids received and rejected on 4/21/04, it is anticipated that bids will come in well below the engineer's estimate of$3,585,720. BACKGROUND: The Seattle City Council approves the sale of this property to Kent on May 3, 2004. In order to complete the property transaction, Seattle Mayor Greg Nickels must sign the ordinance passed by Council. Following Mayor Nickel's signature, Seattle's mandatory 30-day appeal penod begins. Dunng this time, Mayor White would execute the construction contract and portions of the Grade and Fill project that could be completed without using the Seattle property could begin. If Kent 4/�R/7r1r1d COMMUNITY DEVELOPMENT Page 2 of 2 were to wait for the mandatory 30-day appeal period to end, one month of the construction season would be lost. Construction activities that could be completed without the Seattle property would be performed during this month Seattle staff do not anticipate any appeals to the property sale Bids were received and opened for this project on April 21, 2004 The bids were rejected because of certain bid discrepancies. The project was re-advertised on April 26 and 27, with bids opening May 3, 2004. Therefore, the low bidder and bid price cannot be included in this memorandum. However, the low bid on April 21 was roughly $3,000,000, or about $600,000 less than the engineer's estimate, which indicates the bidding climate is favorable. We anticipate that the second round of bids will be in the same range as the first. REPORTS FROM STANDING COMMITTEES AND STAFF A. COUNCIL PRESIDENT B. OPERATIONS COMMITTEE �x G�t�L {� 0-1 � y co- - 4,0-� C. PUBLIC SAFETY COMMITTEE D. PUBLIC WORKS E. PLANNING COMMITTEE cvvlL `� - 1-7 F. PARKS COMMITTEE G. ADMINISTRATIVE REPORTS i REPORTS FROM SPECIAL COMMITTEES all , ZW- c� Operations Committee Minutes April 6, 2004 Committee Members Present Chair Tim Clark, Julie Peterson, Bruce White The meeting was called to order by Tim Clark, Chair at 4 06 p m Chair Tim Clark advised that Item No 8 of the agen da is removed from this agenda It will be placed on the April 20, 2004, agenda APPROVAL OF MINUTES OF MARCH 16, 2004 Bruce White moved to approve the minutes of the March 16, 2004, Operations Committee meeting. The motion was seconded by Julie Peterson and passed 3-0. APPROVAL OF VOUCHERS DATED MARCH 31, 2004 Finance Director Bob Nachl roger presented the vouchers for March 31, 2004, for approval Julie Peterson moved to approve the vouchers dated March 31, 2004. Bruce White seconded the motion, which passed 3-0. INDEPENDENT SALARY COMMISSION ORDINANCE ABOLITION Chief Administrative Officer Mike Martin advised the Operations Committee that by adoption of Ordinance No 3617 on October 1, 2002, the City Council established an Independent Salary Commission to set the salaries of the City's elected officials The Mayor would like the City Council to consider abolishing the commission If the commission is abolished, it is necessary to repeal the Kent City Code provision that established the commission and to amend other sections of the Kent City Code to set forth the current salaries paid to Kent's elected officials The salaries set forth in the proposed ordinance are the current salaries paid to each elected official as established by the Salary Commission for 2004 The ordinance does not increase or reduce the salaries of the City's elected officials This ordinance merely amends the City code so that it accurately reflects the salaries set by the Independent Salary Commission when it adopted its current salary schedule on December 19, 2002 Deputy City Attorney Pat Fitzpatrick advised that decreases would not affect the councilmembers' current salaries Bruce White moved to recommend that Council adopt the proposed Ordinance repealing Ch. 2.58 of the Kent City Code, entitled "Independent Salary Commission," and amending Chs. 2.01, 2.02, and 2.34 of the Kent City Code relating to the salaries of the Mayor, City Councilmembers, and Municipal Court Judges. The motion was seconded by Julie Peterson and passed 3-0. Operations Committee, 4/6/2004 • LOCAL & LONG DISTANCE TELEPHONE SERVICE CONTRACT EXTENSION Information Technology Director Stan Waldrop presented the Local & Long Distance Telephone Service Contract Extension with Focal Communications. The City currently obtains local and long distance telephone service through Focal Communications which the City has contracted with since 2001 Mr. Waldrop advised Focal Communications provide a unique configuration for the City's long local and long distance services and that he is recommending the City extend the current contract for an additional 2-year period with new, lower rates proposed by Focal Communications that will reduce the City's primary local and long distance cost by approximately 8%. Julie Peterson moved to recommend the Kent City Council authorize the Mayor to sign a 2- year contract extension with Focal Communications for local and long distance telephone service subject to City Attorney approval of contract documents. The motion was seconded by Bruce White and passed 3-0. 2004 POLICE MDC REPLACEMENT Information Technology Director Stan Waldrop presented 2004 Police MDC Replacement agenda item Mr Waldrop stated that the Police Department has 47 mobile data computers (MDCs) These are semi-ruggedized laptop computers used for data communication with Valley Communication Center Our normal workstation replacement interval is 4 years However, these workstations are on a 3-year replacement cycle due to the more strenuous environment in which they operate Previously, a fully ruggedized unit was used because of the operating environment. However, after careful evaluation in cooperation with the Police Department, it was determined that semi- ruggedized units could be utilized allowing more modern technology and a reduced cost The City is proposing to replace 34 of these computers at this time The cost is $1,859 per unit Julie Peterson moved to recommend the Council authorize the Mayor to sign purchase orders for replacement MDCs, payable to Datec Incorporated, not to exceed $65,000. The motion was seconded by Bruce White and passed 3-0. 2004 GENERAL FUND BUDGET ADJUSTMENT ORDINANCE RELATING TO TEMPORARY PERMIT PROCESSING Finance Director Bob Nachlinger presented the 2004 General Fund Budget Adjustment Ordinance Relating to Temporary Permit Processing Mr Nachlinger advised that the permit activity for the City of Kent is showing an unprecedented increase In addition to the major projects i n for approval there is a major increase in the number of subdivisions in line for approval All of these items are unanticipated in the 2004 annual budget and the volume of requests is causing a slowdown in the process The City anticipates a minimum of an additional $200,000 in revenue from this additional activity and proposes to use that increase to fix the problem with the addition of part-time staff for the duration of the increased workload and additional overtime for some functions. Mr. Nachlinger advised that the General Fund budget would be increased by $200,000 in both revenues and expenditures Bruce White moved to recommend the 2004 General Fund Budget Adjustment Ordinance Relating to Temporary Permit Processing be forwarded to Council for adoption at the April 20, 2004, City Council meeting. The motion was seconded by Julie Peterson and passed 3-0. 2 Operations Committee, 4/6/2004 RECOGNITION OF VIETNAMESE HERITAGE FLAG Recognition of the Vietnamese Heritage Flag was tabled at the March 16, 2004, Operations Committee meeting at the request of Committee Member Bruce White to be discussed and considered at the April 6, 2004, Operations Committee meeting As previously advised on this issue Assistant Chief Administrative Officer Dena Laurent stated that the City of Kent has been requested to adopt a resolution recognizing the flag of the former Republic of Vietnam as a heritage flag of the Vietnamese-American community Ms Laurent advised that the requesting party was available in the audience should the Committee have any questions, as well as having attached several news articles which report some viewpoints from the Vietnamese-American community Tim Clark inquired of other cities in King County which have adopted a similar resolution Ms Laurent advised that she is familiar with cities in Pierce County which have adopted similar ordinances Bruce White stated that he would support passage of a resolution allowing for recognition of the Vietnamese heritage flag, however, he was not comfortable with Section 2 of the resolution which he felt encroached on other jurisdictions rights on this issue He stated he would be in support of the resolution as long as section 2 of the resolution, entitled "Encouragement" was striken Julie Peterson supported the revised have Bruce White moved to recommend to the Kent City Council adoption of this resolution, upon removal of Section 2 of resolution, recognizing the flag of the former Republic of Vietnam as a heritage flag of the Vietnamese-American community. The motion was seconded by Julie Peterson and passed 3-0. The meeting was adjourned at 4 21 p m Renee Cameron Operations Committee Secretary 3 3 PLANNING&ECONOMIC DEVELOPMENT COM TrTEE MINUTES March 15,2004 COMMITTEE MEMBERS: Chair Tim Clark, Ron Harmon,Bruce White The meeting was called to order by Chair Clark at 4:10 P.M. Approval of Minutes of October 21,2003 Committee Member Harmon moved and Chair Clark seconded a motion to approve the minutes of the October 21, 2003 meeting. The motion carried 2-0 with Chair Clark noting he has the approval of Member White. Building Codes Update Building Official, Bob Hutchinson stated that the new building codes will be effective Statewide July 1, 2004 in accordance with the State Building Code Act and the Washington Administrative Code Rules as promulgated by the State Building Code Council. These changes adopt the 2003 additions of the International Building Code, Residential Code and Mechanical Code, and will include the Uniform Plumbing Code in the 2003 edition Mr. Hutchinson stated that the International Codes replace the Uniform Codes. He described how the new International Codes were created and how these codes will regulate buildings and their construction. Mr. Hutchinson stated that staff intends to bring a proposal for a resolution and subsequent adoption of an ordinance back to the Planning and Economic Development Committee incorporating amendments that integrate the new codes into the City's organizational structure, incorporating housekeeping changes and updating fees charged for permits and plan review. Mr. Hutchinson addressed Chair Clark's concerns regarding transitioning to the new code and Member Harmon's concerns regarding manufactured housing standards. Planning Services Work Program - 2004 Planning Manager Charlene Anderson presented the Planning Services Work Program to the Board for the 2004 year. She stated that Planning Services is responsible for land use planning matters in Kent including the Comprehensive Plan, zoning, subdivision, and various other regulatory codes. Ms. Anderson described the various projects and the timelines allocated to complete the projects Planning Services will be working on in 2004 Urban Center/Downtown Analysis Planning Manager Charlene Anderson stated that this subject was brought before the Committee at their October 21, 2003 meeting for discussion. She stated that initiating this study was the result of a letter received from a citizen requesting that the City analyze the area east of Railroad in relation to the City's downtown planning efforts. Ms. Anderson stated that staff has considered broadening the scope of this analysis to include the downtown area covered by the Downtown Strategic Action Plan She stated that after staff has completed their research, the first public outreach is tentatively scheduled for May 17 with a second public open house scheduled in June, to be followed with a workshop before the Land Use and Planning Board, including a SEPA analysis then coordinating this effort with the annual comprehensive plan amendments for completion by years end. Chair Clark expressed concerns with the potential for traffic impacts caused by the development of the Kent Station property and the relocating of the buses from the King County Metro Park and Ride Facility over to the Kent Station. Chair Clark adjourned the meeting at 4:45 p.m. Pamela Mottram, Admin Secretary,Planning Services S IPermitOanlPlanwng CommttteeVO04LNtnutes103l504pe-min doe 1 PUBLIC WORKS COMMITTEE MINUTES April 5, 2004 COMMITTEE MEMBERS PRESENT Chair Bruce White ,Ron Harmon,Debbie Raplee The meeting was called to order by Committee Chair Bruce White at 5 05 P M Approval of Minutes of March 1,2004 Comrmttee Member Ron Harmon moved to approve the minutes of March 1, 2004 The motion was seconded by Committee member Debbie Raplee and passed 3-0. Adoption of LID 353 Final Hearing Roll Tom Brubaker, City Attorney gave a brief explanation of the LID Final Hearing process Tom explained that after the hearing the Board of Equalization met and tonight they have their findings, conclusions and recommendations to present Committee Chair Bruce White read the Board of Equalizations Findings, Conclusions a and Recommendations regarding LID 353. A copy of the document is attached to the minutes City Attorney Tom Brubaker said it was his understanding there will be a supplemental Findings,Conclusions and Recommendations as to the few properties the Board has given more time, once that has been entered by the Board both sets will go to the Council for single action probably sometime in late May or June. Debbie Raplee moved that the LID 353 Board of Equalization adopt Findings, Conclusions and Recommendations of the Final Assessment Roll Hearing of LID 353. The motion was seconded by Ron Harmon and passed 3-0, Vehicle and Equipment Surplus Don Wickstrom said the mower#5329 does not have a meter,there is not 200 hours use on the mower, this was a mistake on the memo. The equipment and vehicles listed are no longer of use to the City. Larry Blanchard,Public Works Operations Manager was asked about#3191 a police car being replaced He said there is a replacement policy that was established years ago for"front line emergency response vehicles"which usually calls to replace autos at 5 years or 100,000 miles unless there are problems with the vehicle This car has transmission problems. Ron Harmon moved to recommend the City Council authorize staff to appropriately dispose of the equipment as described and listed in the memorandum. The motion was seconded by Debbie Raplee and passed 3-0. Upper Meridian Valley Creek Improvements Condemnation Ordinance Don Wickstrom said this is a project that was inherited when the City annexed the area. The project is to install 2 box culverts and one round culvert. King County had acquired 2 2 the Right of Way that the City thought was adequate but after designing the project it became apparent there was not enough right of way to complete the work. The negotiations with the property owner have not been successful but Don Wickstrom said authorizing the condemnation does not mean negotiations will end Bill Wohnski, Environmental Engineering Manager said the work would need to be complete by August If the work is not done this year the permits will expire and the process will be very time consuming to renew them. Debbie Rapiee asked if the committee could get a copy of letters that were sent to the property owner to negotiate the right of way. Bill also said the property owner is concerned the project will make the flooding worse. The property owner is asking the City to guarantee there will be no flooding after the project is complete Brett Vinson,Assistant City Attorney clarified the easements stating that the construction easement was temporary and once the project was complete the easement would be gone Debbie Raplee moved to recommend authorization to adopt Condemnation Ordinance#_, for obtaining needed temporary construction and permanent easements for location of a storm drainage culvert for the Upper Meridian Valley Creek Improvement Project. The motion was seconded by Ron Harmon and passed 3-0. Pacific Highway HOV Lanes Agreement with Metro Transit for Bus Shelter Pads Public Works Director Don Wickstrom said that this agreement between the City of Kent and King County Metro Transit was removed from the March 16`h City Council meeting by Councilmember Tim Clark and referred back to the Public Works Committee Councilmember Clark was present at the committee meeting and stated that his concerns had been addressed and to proceed with the agreement Ron Harmon moved to recommend authorizing the Mayor to sign the agreement for right-of-way acquisition and construction of the bus shelter pads, authorize staff to accept the funds and establish a budget for the funds to be spent within said road improvement project. All subject to the final modification of the City Attorney and Public Works Director. The motion was seconded by Debbie Raplee and passed 3-0. The meeting adjourned at 5:52 P M. Janet Perschek Administrative Assistant ' 1 Parks and Human Services Committee Minutes March 18, 2004 Committee Members Present: Chair Julie Peterson, Debbie Raplee, Deborah Ranniger The meeting was called to order by Chair Julie Peterson at 4:08 p.m. Chair Peterson announced that Item 4.) 2004 Interlocal Waterfowl Agreement has been removed. 1. Approval of Minutes of February 19, 2004 Councilmember Ranniger moved to approve the minutes of January 13, 2003. Councilmember Raplee seconded and the motion carried. 2. Kina County Cultural Development Authority Grant - Accept Councilmember Ranniger moved to recommend accepting the $3,400.00 grant from King County Cultural Development Authority and authorize expenditure of funds for the "Black to My Roots" presentation. Councilmember Raplee seconded and the motion carried. 3. King County Community and Human Services/Disabilities Grant - Accept Superintendent Lori Hogan shared that this grant does not include grant matching requirements and the there are no additional expenses to the city. Councilmember Raplee moved to recommend accepting the King County Community and Human Services/Developmental Disabilities Grant and authorize expenditure of funds for the "Access the Future" computer class program. Councilmember Ranniger seconded and the motion carried. 4. 2004 Interlocal Agreement for Waterfowl Management - Authorize rREMOVED1 5. 2004 Divisional Work Projects Director John Hodgson summarized the 2004 Work Plans as listed below and noted that some of the projects and programs will return to the committee for recommendation and Council approval. Recreation: • Kent Jr. High School Closure. The school will become a magnet school and provide computer and technological classes in partnership with the Chamber of Commerce and the city. • PooURecreation Facilities Study. The pool is old with failing mechanical systems. It was constructed when the city's population was 40,000 and does not meet the standards for a potential increase to 120,000. A feasibility study will be conducted. 2 • Arts Plan Implementation $2/per capita. The plan is developed for one and five years. Each year a committee recommendation is required. • Sponsorships. Funding comes from local businesses and grants. • Recreation Programs - Value, Sportstown, Youth. Staff will present various recreational, athletic and cultural programs, and notable awards to the committee. • Arts - Audience Expansion/Diversity. New marketing venues will be developed to increase patronage. The Canterbury Faire Medieval event will slowly be transitioned to become more of a multi-cultural showcase. Human Services • One Stop Human Services Center. The Health Department has pulled out, so the committee is looking for a new, smaller building. The Human Services Committee is pursuing a Section 108 loan. CDBG funds will be used to front the costs of acquisition. Grants and donations will be solicited. • Homeless. The Homeless Committee will continue to track the homeless population and provide enforcement and services. A hygiene area will be placed within the One Stop Human Services Center to save the cost of a mobile unit and for better accessibility to patrons. • VAWA Visitation and Exchange Center. Staff will locate a building to create a safe and supervised venue for parents and children to be exchanged for visitation days or have supervised visitation • Application Cycle. Local agencies apply for Federal and Capital funds. Staff and the Human Services Commission determine funding awards. • Suburban Cities Association Human Services Task Force. Conducting a survey within South King County to look at gaps in programs. Parks Planning and Development • Permits/Build: 1 . 3 Friends Fishing Hole. State funds will be used to develop a picnic area and disabled fishing pier on the Green River. Construction is planned for 2005 and opening in 2006. 2. X-Park. If consensus is accomplished with Arbor Village, staff will start the planning process. 3. Service Club Ballfields The goal is to build the entire park with donations. Service Club volunteers will assist in solicitations. • Town Square Park. Link Old Town Park to downtown station. • Adopt Clark Lake Master Plan. A Citizen Advisory Group of ten people representing difference disciplines has been established to assist in developing a master plan. Administration • Foundation/Planned Giving. A twelve person non profit committee was created to find individuals and groups to donate property and money to the department as a legacy to loved ones. 40 3 Facilities • Aging Buildings. Continue with current life cycle program. • Bricks/Landscaping at City Hall Campus. Lose bricks and uneven • sidewalks are a safety issue and will be replaced. • City Hall Plumbing. The system is old and needs replacement. • East Hill Shops (Phase 1). Construction of the new site continues. • Russell Road Nursery. New nursery being developed. Parks Maintenance Vandalism. A consortium will be established with the School District, the Chamber and the Kent Downtown Partnership to join forces in combating local vandalism. • Life Cycle Projects. Continue to preserve assets through the life cycle program. Riverbend Golf Complex • Professional Golf Management (PGM) Contract. PGM manages lessons, Par 3, and food Services at the Driving Range. Staff is researching the current operation and will present a plan to the committee by June. 6. 2003 Fourth Quarter Report. John suggested the committee read the report for informational purposes only Questions can be addressed at the next committee meeting if necessary. The meeting adjourned at 5:00 p.m. SPECIAL PUBLIC SAFETY COMMITTEE MEETING MINUTES March 18, 2004 COMMITTEE MEMBERS: Debbie Raplee, Les Thomas,Deborah Ranniger,Chair The meeting was called to order by Deborah Ranniger at 5.05PM Chair Ranniger called for additions to the agenda. One item was added by Neil Sprynczynatyk,a Kent citizen. A second item was added by Police Chief Ed Crawford. Approval of Minutes of February 19,2004 Committee Member Les Thomas moved to approve the minutes of the February 19,2004 meeting The motion was seconded and passed 3-0. State of Washington Mditary Dept. Hazardous Materials Emeruenev Preparedness Grant— Accept and Authorize Assistant Fire Chief Steve Hamilton reviewed the grant and answered questions Debbie Raplee moved to recommend accepting the grant from the State of Washington Military Department,and the U.S.Department of Transportation in the amount of $3,000.00 and placing it on the Consent Calendar of the April 6,2004 Council Meeting,and authorizing the mayor to sign the contract. The motion was seconded and passed 3-0. Purchase of one replacement fire engine-Authorize Assistant Fire Chief Steve Hamilton reviewed the purchase request and answered questions. Debbie Raplee moved to recommend placing the request to purchase a replacement fire engine from Pierce Manufacturing on the Consent Calendar of the April 6,2004 Council Meeting and authorizing the Mayor to sign the contract after approval by the City Attorney. The motion was seconded and passed 3-0. HealthForce Partners,Inc.agreement,Addendum B-Authorize Assistant Fire Chief Steve Hamilton reviewed the agreement and answered questions. Les Thomas moved to recommend placing the Professional Services Agreement,Addendum B,for Medical Examinations for the Kent Fire Department on the Consent Calendar for the April 6,2004 Council Meeting and authorizing the Mayor to sign the agreement. The motion was seconded and passed 3-0. Police Department Vest Issue—Information Only Police Chief Ed Crawford introduced Sergeant Frank Connelly Sgt Connelly displayed police vests that had been shot at in a test process and explained why the department has ordered replacement vests for all officers. Addition to Agenda: Naden Avenue RV Park—Information Onlv Neil Spryzcaynatyk, 320 Naden Ave S,Kent, expressed concern that the RV Park is being used more like a mobile home park with individuals residing there for long periods of time. He asked for consideration to change the hours the park is open from dusk to dawn,as in other city parks The committee agreed to look into the matter with the involvement of[lie police department Addition to Agenda: Introduction of Chaplain Ellis—Information Onh Police Chief Ed Crawford introduced Chaplain Patrick Ellis,Jr. to the committee as the volunteer chaplain for the Police and Fire departments Chaplain Ellis reviewed his background and explained his volunteer function within the departments. The meeting adjourned at 5 50 PM. Jo Thompson Public Safety Committee Minutes November 17,2003 SPECIAL PUBLIC SAFETY COMMITTEE MEETING MINUTES February 19, 2004 411 COMMITTEE MEMBERS: Debbie Raplee, Les Thomas,Deborah Ranmger,Chair The Special Meeting was called to order by Deborah Ranmger at 5 07PM Les Thomas was absent. Chair Ranmger stated that she would contact Les Thomas following this meeting to review the action items on this agenda and to get his concurrence Chair Deborah Rannrger called for any additions to the meeting Chief Crawford asked to present an action item, Chair Rannrger agreed and the U S. Department of Education Fund for Improvement in Post secondary Education Program grant was added to the agenda Approval of Minutes of January 15,2004 Committee Member Debbie Raplee moved to approve the minutes of the January 15, 2004 meeting. The motion was seconded and passed 2-0. FEMA Emergency Management Performance grant—ACCEPT Fire Chief Jim Schneider reviewed the grant and the proposed use of funds He thanked see eral of his members of his staff for their work on this grant Debbie Raplee moved to recommend accepting the grant from the State of Washington Military Department, Emergency Management Division in the amount of$53,236 and authorizing the Mayor to sign the contract,to place this on the Consent Calendar of the March 2, 2004 Council Meeting, and to establish budget documents as required. The motion was seconded and passed 2-0. Emergencv and Basic Life Support Ambulance Services Agreement -AUTHORIZE Fire Chief Jim Schneider reviewed the agreement and explained some changes from previous agreements Debbie Raplee moved to recommend placing the Emergency and Basic Life Support Ambulance Services Agreement on the Consent Calendar of the March 2, 2004 Council Meeting and authorizing the Mayor to sign the agreement. The motion was seconded and passed 2-0. Fire Department Work Plan for 2004—INFORMATION ONLY Chief Schneider reviewed the Kent Fire Department Work Plan for 2004 Weapons of Mass Destruction (WMD) kits for police vehicles—INFORMATION ONLY Captain Mike Painter displayed one of the kits and thanked the Kent Police Explorer Post for many hours they spent assembling the kits for Region 6 agencies He also spoke about the Region 6 Homeland Security Council Workgroups Structure U.S. Department of Education,Fund for Improvement in Post secondary Education Program—AUTHORIZE Debra LeRoy, Research and Development Analyst,reviewed the grant and explained how the funds would be used Debbie Raplee moved to authorize the Kent Police Department to apply for the U.S. Department of Education,Fund for Improvement in Post secondary Education(FIPSE) Program, and placing this on the Consent Calendar for the March 2, 2004 Council Meeting. The motion was seconded. Les Thomas joined the meeting at this time. Chair Ranniger briefly reviewed the grant with him and the motion passed 3-0. Chair Ranniger asked for concurrence from Les Thomas on the three action items on the original agenda and he so concurred. Those items passed 3-0. The meeting adjourned at 6 00 PM Jo Thompson I Public Safety Comunttee Minutes 2 February 19,2004 CONTINUED COMMUNICATIONS A. ezi �tia � J Cr�r hvo� %� C ct,42 GN /4--&-vvu &� eel n- EXECUTIVE SESSION ACTION AFTER EXECUTIVE SESSION A) •