HomeMy WebLinkAboutCity Council Meeting - Council - Agenda - 05/18/2004 INEWAL
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City of Kent
i CityCouncil Meeting
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May 18, 2004
Mayor Jim White
Julie Peterson, Council President
Councilmembers
Tim Clark Debbie Raplee
Ron Harmon Les Thomas
i Bruce White Deborah Ranniger
KEN
WAS HI NGTON
City Clerk's Office
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SUMMARY AGENDA
400 KENT CITY COUNCIL MEETING
May 18, 2004
KENT WASHINGTON Council Chambers
7:00 p.m.
i MAYOR- Jim Wlute COUNCILMEMBERS: Julie Peterson, President
Tim Clark Ron Harmon Deborah Ranniger
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. Economic Update
5 PUBLIC HEARINGS
None
6 CONSENT CALENDAR
A. Minutes of Previous Meeting -Approve
B Payment of Bills-Approve
7. OTHER BUSINESS
None
8. BIDS
A. Historical Museum Re-roof-Award
B. 2004 Asphalt Overlays-Award
C Spnngbrook Creek Restoration Improvements-Award
9. REPORTS FROM STANDING COMMITTEES AND STAFF
10 REPORTS FROM SPECIAL COMMITTEES
II. CONTINUED COMMUNICATIONS
12. EXECUTIVE SESSION A- 2-0
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.
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ICHANGES TO THE AGENDA
Citizens wishing to address the Council will, at this time, make known the subject of
Iinterest, so all may be properly heard.
A) FROM COUNCIL, ADMINISTRATION, OR STAFF
B) FROM THE PUBLIC
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PUBLIC COMMUNICATIONS
A) ECONOMIC UPDATE
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CONSENT CALENDAR
6. City Council Action:
Councilmember moves, Councilmember 1AJ
seconds to approve Consent Calendar Items A through B.
1 Discussion
' Action
6A. Approval of Minutes.
1 Approval of the minutes of the regular Council meeting of May 4, 2004.
6B. Approval of Bills.
Approval of payment of the bills received through April 30 and paid on April 30 after
auditing by the Operations Committee on May 5, 2004.
Approval of checks issued for vouchers:
' Date Check Numbers Amount
4/30/04 Wire Transfers 1685-1698 $11135,236.27
4/30/04 Prepays & 562257 780,759.47
4/30/04 Regular 562761 2,354,547.33
$412707543.07
Approval of checks issued for payroll for April 16 through April 30 and paid on May 5,
2004:
I Date Check Numbers Amount
5/5/04 Advices 163345-164002 $1,166,832.74
5/5/04 Interim Checks 276749
5/5/04 Checks 277071 228,033.80
$1,39406.54
Council Agenda
Item No. 6 A-B
IKEN T Kent City Council Meeting
WASHINGTON May4, 2004
The regular meeting of the Kent City Council was called to order at 7 00 p.m. by Mayor White.
Councilmembers present: Clark, Harmon, Peterson, Ranniger, Raplee, Thomas and White.
(CFN-198)
iCHANGES TO AGENDA
B. From the Public. (CFN-198) At the request of Bob O'Brien, Item I IA was added to the
agenda.
PUBLIC COMMUNICATIONS
A. Legislative Delegation Recognition. (CFN-198) Senator Steve Johnson was recognized for
his assistance to the City of Kent this year
B. Drinking Driver Task Force Poster Design Contest Award Ceremony. (CFN-122) Cesi
Medina, Public Education Specialist in the Police Department, announced the winners of the
Drinking driver Task Force Poster Design Contest.
jC. Employee of the Month. (CFN-147) Mayor White announced that the "Crimes Against
Persons" Detective Unit has been chosen as May Employees of the Month
D. Proclamation—Letter Carrier's Food Drive Day. (CFN-155) Mayor White read a
proclamation declaring May 8, 2004, as Letter Carrier's Food Drive Day in the City of Kent.
CONSENT CALENDAR
PETERSON MOVED to approve Consent Calendar Items A through V, including replacement of
the draft ordinance in Item N with the final version containing figures. Clark seconded and the
motion carried.
A Approval of Minutes. (CFN-198) The minutes of the regular Council meeting of April 20,
2004 were approved.
B. Approval of Bills. (CFN-104) Payment of the bills received through March 31 and paid on
March 31 after auditing by the Operations Committee on April 6, 2004 was approved
Approval of checks issued for vouchers
Date Check Numbers Amount
3/31/04 Wire Transfers 1658-1672 $1,304,753 26
I 3/31/04 PrePays & 560883 466,471.53
3/31/04 Regular 561551 2,208,336.42
' $3,979,561.21
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Kent City Council Minutes May 4, 2004 ,
Payment of the bills received through April 15 and paid on April 15 after auditing by the '
Operations Committee on April 20, 2004 was approved.
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 $1,150,126.87
3/19/04 Checks 275906-276179 211,28917
$ 211,28917
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 $1,173,149.14
4/5/04 Checks 276180-276465 213,507 62
4/5/04 Interim 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 I
4/20/04 Advices 162685-163344 $1,175,45168
4/15/04 Interim Check 276467 29.76
4/20/04 Checks 276468-276748 216,275 44
$ 216,305.20
C. Locust Lane/Canterbury Glen Infrastructure Improvements Bill of Sale. (CFN-484) 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 was accepted.
D. 145th Place SE Street Vacation Resolution Setting Hearing Date. (CFN-102) Resolution '
No. 1668 setting the public hearing on the street vacation petition filed by Schneider Homes for a
portion of 145`h Place Southeast Street for June 15, 2004 was adopted.
E. 228th Street Extension Property Acquisition. (CFN-239) The Mayor was authorized 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.
2
IKent City Council Minutes May 4, 2004
F Repeal 1997 Charge In Lieu of Assessment and Authorize New Charge In Lieu of
' Assessment for the 272nd Corridor Interceptor Sewer. (CFN-553) The repeal of the 1997
Charlie in Lieu of Assessment was authorized and a new Charge in Lieu of Assessment for the
272" Corridor Interceptor sewer was established.
G. Autumn Glen Sanitary Sewer Latecomer Reimbursement Agreement. (CFN-485) The
Public Works Director was authorized to execute a Sanitary Sewer Latecomer Agreement with
' Bennett Sherman, LLC, for the Autumn Glen Sanitary Sewer Extension
H. 3rd Avenue and Washington Avenue Pump Stations. (CFN-1038) The P Avenue and
Washington Avenue Pump Stations project was accepted as complete.
I. "Reduce Underage Drinking"Grant Amendment. (CFN-122) An additional grant award
of$10,000.00 from the Federal Office of Juvenile Justice and Delinquency Prevention through the
Department of Social and Health Services for expenses incurred to conduct a statewide survey of
community readiness in underage drinking prevention activities was accepted and the budget
' amended
J. Washington Traffic Safety Commission Grant for Overtime Funding. (CFN-122) A
grant to provide supplemental overtime funding for intense traffic safety enforcement for up to
$5,000.00, or approximately 100 hours of traffic enforcement overtime was authorized.
K King County Office of Emergency Management and Program Development Contractor.
(CFN-122) A reimbursable grant not to exceed $23,933 00 from the King County Office of
Emergency Management was accepted, the budget was amended, and the 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 was authorized.
L Premera Blue Cross Administrative Service Contract for 2004. (CFN-147) The Mayor
was authorized to sign the Premera Blue Cross 2004 Administrative Services Contract
M. King County Housing Authority Amendment to Housing Cooperation Agreement
I Rewarding Harrison House Capital Improvements. (CFN-941) An amendment to the
Interlocal agreement between the City and the King County Housing Authority regarding Harrison
House Capital Improvements was approved
' N Taxable Refunding of the Outstanding Unlimited Tax Housing Bonds Ordinance.
(CFN-104) Ordinance No 3689 relating to Unlimited Tax Housing Bonds was adopted. 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
O. Western States Arts Federation Grant for Community Participation Pilot Project.
(CFN-118) A $10,000 grant from Western States Arts Federation (WESTAF) was accepted and
expenditure of funds to support the Community Participation Pilot Project was authorized.
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Kent City Council Minutes May 4, 2004
P. King Conservation District Grant for Canterbury Park. (CFN-118) The King
Conservation District No. 9 Grant in the amount of$7,901.19 was accepted and expenditure of
funds to support the Canterbury Park Neighborhood Park Project was authorized.
Q. First Quarter Fee In Lieu of Funds from the Christopher Ridge Subdivision. (CFN-118)
The fee-in-lieu of funds from the Christopher Ridge Subdivision in the amount of$6,375.00 was
accepted and expenditure of funds to support the Canterbury Neighborhood Park Project was
authorized. ,
R. 2004 Interlocal Agreement for Waterfowl Management. (CFN-118) The Mayor was
authorized to sign the 2004 Interlocal Agreement for Waterfowl Management.
S. Interagency Committee Grant Application Resolutions. (CFN-118) Resolution Nos 1669,
1670, 1671, 1672, 1673 and 1674, 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 were adopted. '
T. Redistribution of 1996-2001 Working together Federal Drug Elimination Grant Funds.
(CFN-122) Moving an existing budget balance carryover from 1996-2001 Working Together
Federal Drug Elimination grant to General Fund accounts and a Criminal Justice Fund account
was authorized. A large portion of this carryover will cover the costs of replacement vests for all
police officers. ,
U. Countvwide Planning Policies, Auburn as Urban Center,Amendment Resolution.
(CFN-961) Resolution No. 1675 ratifying the proposed amendment to the Countywide Planning
Polices to designate downtown Aubum as an Urban Center was adopted.
V. International Building and Fire Codes—Ordinances and Resolution Setting Fees.
(CFN-205) Ordinance Nos 3690 and 3691 and Resolution No 1676 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
were adopted.
OTHER BUSINESS i
A. Impoundment Reservoir Property, Amendment to Purchase and Sale Agreement.
(CFN-745) Because Yarrow Bay Development, LLC, 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.
Torgelson and Wickstrom explained the amendment and the timing of payments, and answered
questions from Council members. CLARK MOVED 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, White seconded. Clark spoke about the
property and the circumstances, and Peterson spoke in opposition to the motion for ethical
reasons. The motion then carried 6-1 with Peterson opposed.
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Kent City Council Minutes May 4, 2004
' B. East Hill Skate Park. (CFN-118) Parks Director Hodgson reported 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.
BIDS
A. Horseshoe Acres Storm Water Pump Station Engine Replacement. (CFN-481) 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. WHITE MOVED to award the Horseshoe Acres Stormwater Pump Station contract
to T. Miller Construction in the amount of$322,809 60. Clark seconded and the motion earned.
' B. S. 228th St. Corridor Grade and Fill. (CFN-1269) The bid opening for this project was
held on May 3, 2004 with five bids received. The low bid was submitted by Scarsella Brothers
' Inc. in the amount of$3,058,247.40. The Engineer's estimate was $3,585,720 00. The Public
Works Director recommends awarding this contract to Scarsella Brothers Inc. subject to the
acquisition of the necessary Seattle property. WHITE MOVED to award the 228th Street
' Extension Grade and Fill project contract to Scarsella Brothers Inc. in the amount of
$3,058,247 40, 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 Clark seconded and the motion
carried
REPORTS
B. Operations Committee. (CFN-198) Clark urged the Councilmembers to attend the Suburban
Cities workshop on June 2nd.
' D. Public Works. (CFN-198) White noted that the next meeting will be on May 17th at
5.00 p.m
E Planning Committee. (CFN-198) Clark noted that the next meeting will be on May 17 at
4:00 p.m.
G. Administrative Reports. (CFN-198) Mayor White reported on his recent trip to China.
I CONTINUED COMMUNICATIONS
A. Surplus Property. (CFN-198) Bob O'Brien, 1131 Seattle Street, suggested that the City sell
some of its surplus property as a source of revenue. He provided a list of the property to CAO
Martin.
ADJOURNMENT
' PETERSON MOVED to adjourn at 7.47 p in. White seconded and the motion tamed (CFN-198)
' Brenda Jacober, C
City Clerk
' 5
Kent City Council Meeting
Date May 18, 2004
Category Bids
1. SUBJECT: HISTORICAL MUSEUM RE-ROOF— AWARD
2. SUMMARY STATEMENT: The bid opening was held on May 7, 2004 with five
bids received. The apparent low bid was submitted by Diamaco in the amount of
$42,253.57, including Washington State Sales Tax (WSST). The Engineer's estimate
was $36,274.00, excluding WSST.
The project includes replacing the upper roof, missing/damaged brick units on the
fireplace, re-pointing mortar joints, and replacing all cap flashing around chimneys.
3. EXHIBITS: Bid tab
4. RECOMMENDED BY: Parks Director
(Committee, Staff, Examiner, Commission, etc.)
5. FISCAL IMPACT
Expenditure? X 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 (� AA$i movQ1Comw+TmMb-er Lk)(nee, seconds
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ter into agreement wi�amaco in the amount of$42,253.57 to complete the
roof and chimney repairs on the Kent Historical Museum.
DISCUSSION:
ACTION:
Council Agenda
Item No. 8A
PARKS FACILITIES
' BID TAB
May 7, 2004
PROJECT: Kent Historical Museum Chimney
BIDDER
1 Diamaco $42,253 57
2 L and K Smith Construction $48,198 40
3 Wayne's Roofing $49,800 00
4 Access Services $54,116 00
■ 5 Advanced Construction $55,000 00
Kent City Council Meeting
Date May 18, 2004
Category Bids
1. SUBJECT: 2004 ASPHALT OVERLAYS —AWARD
2. SUMMARY STATEMENT: The bid opening for this project was held on May 7,
2004, with 4 bids received. The low bid was submitted by ICON Materials in the
amount of$648,964.96. The Engineer's estimate was $795,312.35.
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3. EXHIBITS: Public Works Director's memorandum
4. RECOMMENDED BY: Staff
(Committee, Staff, Examiner, Commission, etc.)
5. FISCAL IMPACT
Expenditure? X Revenue?
Currently in the Budget? Yes X No
If no:
Unbudgeted Expense: Fund Amount S
Unbudgeted Revenue: Fund Amount S
6. CITY COUNCIL ACTION:
w Councilmember moves, Councilmember l nnAA
�-afvL— seconds
to award the 2004 Asphalt Overlay contract to ICON Materials in the amount of
$648,964.96.
DISCUSSION: —�
1 ACTION:
Council Agenda
Item No. 8B
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PUBLIC WORKS DEPARTMENT
Don E Wickstrom, P E Public Works Director
Phone 253-856-5500
Fax 253-856-6500
KEN T Address 220 Fourth Avenue S
WASHINGTO N_
Kent,WA 98032-5895
May 10, 2004
TO Mayor White and Kent City Council
tFROM Don Wickstrom, Public Works Director
RE 2004 Asphalt Overlays
Bid opening for this project was held on May 7, 2004 with 4 bids received The low bid was
1 submitted by ICON Materials in the amount of S648,964 96 The Engineer's estimate was
$795,312 35 The Public Works Director recommends awarding this contract to ICON
Materials
Bid Summary
ICON Materials $648,964 96
Lakeside Industries $686,485 56
Watson Asphalt Paving Co $752,888 55
Western Asphalt, Inc $762,351 47
Engineer's Estimate $795,312 35
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Kent City Council Meeting
Date May 18, 2004
Category Bids
1. SUBJECT: SPRINGBROOK CREEK RESTORATION IMPROVEMENTS —
AWARD
2. SUMMARY STATEMENT: The bid opening for this project was held on May 10,
2004, with 9 bids received. The low bid was submitted by Buckley Nursery Co., Inc. in
the amount of$252,621.09. The Engineer's estimate was $285,164.80.
3. EXHIBITS: Public Works Director's memorandum
4. RECOMMENDED BY: Staff
(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:
1 Councilmember fit, moves, Councilmember eZA-41K seconds
to award the Springbrook Creek Restoration Improvements contract to Buckley Nursery
Co., Inc. in the amount of$252,621.09.
DISCUSSION: .—v
ACTION: f)A
Council Agenda
Item No. 8C
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' PUBLIC WORKS DEPARTMENT
Don E Wickstrom, P E Public Works Director
Phone 253-856-5500
Fax 253-856-6500
K EN T Address 220 Fourth Avenue S
WA S H I H c 1 0.+ Kent, WA 98032-5895
iMay 10, 2004
TO Mayor White and Kent City Council
FROM Don Wickstrom, Public Works Director
RE. Spnngbrook Creek Restoration Improvements
Bid opening for this project was held on May 10, 2004 with 9 bids received The low bid was
submitted by Buckley Nursery Co , Inc in the amount of$252,621 09 The Engineer's estimate
was $285,164 80 The Public Works Director recommends awarding this contract to Buckley
Nursery Co , Inc
Bid Summary
Buckley Nursery Co , Inc $252,621 09
Amencon, Inc $269,540 10
Kemper Construction Corp $278,329 44
L W Sundstrom, Inc $279,720 45
Diamaco, Inc $279,860.80
Road Construction N W ,Inc $289,293 76
Terra Dynamics, Inc $320,698 88
SCI Infrastructure, LLC $352,936 32
Mike McClung Const Co $373 472 32
Engineer's Estimate $295,164 80
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REPORTS FROM STANDING COMMITTEES AND STAFF
A. COUNCIL PRESIDENT
1 B. OPERATIONS COMMITTEE
C. PUBLIC SAFETY COMMITTEE
D. PUBLIC WORKS
E. PLANNING COMMITTEE
F. PARKS COMMITTEE
G. ADMINISTRATIVE REPORTS
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REPORTS FROM SPECIAL COMMITTEES
' Operations Committee Minutes
April 20, 2004
Committee Members Present Chair Tim Clark, Bruce White
Julie Peterson was absent, however, had previously concurred with Chair Tim Clark on agenda
items 1, 2, 3, 6, and 7
The meeting was called to order by Tim Clark, Chair at 4 02 p m
APPROVAL OF MINUTES DATED APRIL 6, 2004
Bruce White moved to approve the amended minutes of the April 6, 2004, Operation
Committee meeting. There was a clerical error in the minutes regarding the last issue
regarding the Recognition of Vietnamese Heritage Flag agenda item. The last word in the
minutes under the Recognition of Vietnamese Heritage Flag agenda item should have stated
"motion." rather than "have . . . ." The motion was seconded by Tim Clark and passed 3-0.
Julie Peterson previously concurred on this agenda item.
APPROVAL OF VOUCHERS DATED APRIL 15, 2004
' Finance Director Bob Nachlinger presented the vouchers for April 15, 2004, for approval
Bruce White moved to approve the vouchers dated April 15, 2004. Tim Clark seconded the
motion, which passed 3-0. Julie Peterson previously concurred on this item.
PREMERA BLUE CROSS ADMINISTRATIVE SERVICES CONTRACT FOR 2004
Benefits Manager Becky Fowler presented the Premera Blue Cross Administrative Services
Contract for 2004 advised the Operations Committee that the City contracts with Premera Blue
Cross as a third-party administrator (TPA) to process claims and provide access to Premera Blue
Cross's PPO network of doctors and hospitals Approximately 95% of the City's employee
population is contained under the Premera Blue Cross program totaling 2,200 lives Included in this
coverage is our LEOFF 1 retirees and their dependents The projected budget for the self-funded
Premera Blue Cross program for 2004 is slightly over $9 million Ms Fowler requested that the
contract be authorized on the consent calendar for the Mayor's signature
Chair Tim Clark inquired if this was the standard contract and similar to what all other local
jurisdictions are facing Ms Fowler advised that yes this was the standard and that the City enters
into a contract with Premera on a yearly basis
Bruce White moved to recommend that the Premera Blue Cross Administrative Services
Contract be placed on the Consent Calendar for the April 20, 2004, City Council Meeting
authorizing the Mayor to sign a one year contract with Premera Blue Cross. The motion was
seconded by Tim Clark and passed 3-0. Julie Peterson previously concurred on this agenda
item.
KENT STATION PURCHASE & SALE AGREEMENT AMENDMENT
Operations Committee, 4/20/2004
Economics Development Manager Nathan Torgelson presented the Kent Station Purchase & Sale
Agreement Amendment Mr Torgelson advised that Dave Blanchard from Heartland and Dennis
Rattie and Kristin Jensen from Tarragon were also present before the Committee Dave Blanchard
was the City's lead negotiator regarding the Kent Station Covenants, Conditions and Restrictions ,
Mr Torgelson advised the Operations Committee that two (2) Council approvals are necessary in
order to pave the way for Kent Station, LLC to sign their lease with AMC Theaters One is a minor
amendment to the Purchase and Sale Agreement for Kent Station and the second is a legal
document called a Declaration of Covenants, Conditions, and Restrictions (CC&R's) Mr Torgelson
advised that the current Purchase and Sale Agreement for Kent Station that was adopted by the
Council last January states that if Sound Transit ever charges for parking in the Sounder Commuter
Rail garage after 12 noon during the cinema lease term, the City must provide a voucher system for
patrons of the cinema or build a replacement parking structure within the Kent Station site or on the
Municipal Lot Block, which is bound by 4`h Avenue and 2Id Avenue and Harrison Street and Smith
Street, that is located directly south of the Kent Station site Mr Torgelson advised that AMC is
saying that if the City were ever in a position where they would have to build a replacement parking
facility that the municipal lot block location is unacceptable to their patrons because of having to
cross the five-lane Smith Street The City is proposing to amend the Kent Station Purchase and
Sale Agreement to exclude the Municipal Lot Block from the areas where replacement parking could
be built and if the City was in that position the Developer would be required to give us land back
within the Kent Station site free of charge Mr Torgelson stated that the only item being changed
through the amendment is the boundaries where a replacement parking facility could be built and
that the City would still have the option of doing an existing voucher system using the existing
garage so it would still be the City's option if Sound Transit ever did charge for parking the City will
have the option of doing a voucher system or providing a replacement parking structure The
amendment actually strengthens the voucher language which would state that the City would only
have to provide a voucher system for up to 3'/z hours where in the existing Purchase and Sale
Agreement there is no limitation of the number of hours which the City would validate for Mr
Torgelson also pointed out that this also gives the City the Municipal Lot Block as an asset for the
City as there would be no condition on the Municipal Lot Block as to whether or not the City would
be required to build a replacement parking structure on that lot which allows the City if they ever
choose in the future to redevelop the Municipal Lot Block property or sell it
Tim Clark inquired as to whether under the original Agreement the City is obligated to build
additional parking if the Sounder garage became inadequate Mr Torgelson stated that in the
Purchase and Sale Agreement if Sound Transit stated to charge for parking the City would have the
option of doing a voucher system or building a replacement facility Tim Clark stated that in effect
then this amendment gives the City another option Mr Torgelson advised that the amendment
changes the options of the boundaries of where the City could build a replacement parking facility
which would exclude the Municipal Lot Block The City like the Municipal Lot Block because the City
already owned the property, but under the amendment the Developer would give the City free of
charge the land necessary to build a parking garage. ,
Bruce White stated that the issue of parking is one of the reasons why he is not supportive of the
project He stated that the Council was told that having to pay for parking or build a parking garage
would be so remote but obviously AMC Theaters feels strong about from the tone of their letter they
are willing to back out of the agreement were this not to be done Mr White advised that it appears
to him that there is a distinct possibility that the City will be required to expend an additional $15-20
million to build a parking garage to accommodate AMC Theaters in Kent Station He asked if it is
really worth $20 million to build a parking garage as well as the $15 million loss of the land sale,
together being $30-$35 million in order to have AMC Theaters in downtown Kent He stated to him
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the answer is no and that is one of the reasons why he voted against the protect and it would be
hard for him to reconcile the original vote and support this amendment. He stated he would remain
consistent and not support this amendment, however, not wanting to bottle this item in Committee
he will pass it on to full City Council without recommendation
Tim Clark inquired of Nathan Torgelson that if the Operations Committee forward this amendment to
the City Council at the April 20, 2004, Council meeting that there would be a full presentation to
Council Mr Torgelson advised that that was correct
Bruce White moved to forward for consideration to the Kent City Council whether to
recommendation/not recommend an amendment to the Kent Station purchase and sale
agreement to change the boundary of the replacement parking area. The motion was
seconded by Tim Clark and passed 2-0. Julie Peterson did not previously concur on this
' item.
KENT STATION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
Economics Development Manager Nathan Torgelson presented the Kent Station Declaration of
Covenants, Conditions and Restrictions to the Operations Committee Mr Torgelson stated that in
the Purchase and Sale Agreement that the Council passed in January one of the things that is
recognized in that document is that the CC&Rs would be coming before the Operations Committee
and the City Council later in 2004 It is now at that time as it is a requirement before the City can
close on the sale of the Kent Station property The purpose of the CC&Rs is to ensure that the Kent
Station property is maintained as an attractive setting for development, to protect the owners of the
property which includes the City, as well as the anchor tenant, AMC Theaters, against improper and
undesirable uses of the Property, and to ensure and encourage the construction of high quality and
development and improvements on the property, regardless of whom owns or develops the property
Mr Torgelson advised that the reason the City is a party to the agreement is that the City will
continue to be a land owner, the City is not selling all of the land, the land is being sold in phases
and in the Purchase and Sale Agreement if Kent Station, LLC does not perform the City has the
ability to buy the land back at the same price at which it was sold Potentially the City could be
buying land back, otherwise the City would never be a party to the CC&Rs, it would strictly be
between the private property owner and the future tenants Basically under the CC&RS the City
does not get involved in major decision making unless we bought the property back, or if Kent
Station LLC does not execute so much square footage by a certain date as required by the
Purchase and Sale Agreement The CC&Rs further restrict the types of uses on the property above
and beyond the zoning code such as second hand stores, tattoo parlors, adult entertainment type
uses that aren't spelled out in our City's zoning code and the CC&Rs also set up an architectural
review committee which looks at issues such as signage, type of materials, etc Those decisions
I are really made between the Developer and the tenants This is a process in addition to the City's
Downtown Design Guidelines The Developer will be going through the City's design review process
for downtown and in addition they will have a separate process for their prospective tenants It also
sets up an Owner's Association and common area maintenance fees Mr Torgelson stated that it is
important to point out that the City will not be a part of the Owner's Association up front and the Cit
will not pay any fees so the CC&Rs are budget neutral for the City as long as we own undeveloped
property the City will not be paying any common area maintenance fees It ensures high quality
management and maintenance of open space, parking lots, and landscaping Mr Torgelson stated
that AMC Theater does have broad powers within the document but that that is very typical of an
anchor tenant but that any major amendments to the CC&Rs have to be approved by the City.
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Operations Committee, 4/20/2004
Tim Clark asked for clarification that adult entertainment is an exclusion Mr Torgelson advised that
that was correct Tim Clark inquired regarding the common areas and no cost to the City as long as
the City's property remains undeveloped Mr Torgelson advised that that was correct Tim Clark
stated that at this time on the back side of the property on the railroad tracks area is in fact the large
scale refrigeration business and none of that comes out of this, correct? Mr Torgelson further
advised that that was correct that that business is a separate property owner.
Tim Clark opened the table for a motion, however, Bruce White stated he would like to speak on the '
matter and that it would like to send this agenda item on to Council without a recommendation and
would like to comment why Mr White stated that he felt it is unfortunate for the CC&Rs for the City
to be involved at this point because as a municipality because the restrictions that are put on by
AMC Theaters which are essentially are a big non-competing agreement that restricts what kind of
businesses are allowed in Kent Station, that otherwise might be able to, and he is not referring to
adult businesses or the like As a municipality he stated he has a problem stating who can/cannot
operate within the Kent Station project He strongly feels this is an inappropriate position for the
City
Tim Clark stated that this project has never been about simply putting property up for sale It is in
fact about Tarragon as a public development bring forward a vision as basically adopted by the City,
and so it was about the vision It is about having control of what the City's downtown looks like, and
that is the issue about revitalizing the Kent downtown area Bruce White agreed, however, was still
concerned about the CC&Rs prohibiting businesses from Kent Station Bruce White further stated
that these CC&Rs would prohibit video game establishments, snack food areas, etc within a certain
square feet of the AMC Theatre and he does not feel that is proper for AMC to have such control of
what other businesses are able to offer the community and again he stated he does not feel that a
government entity should be restricting that type of business
Bruce White moved to send on to Council without recommendation a motion to authorize the
Mayor to sign the CC&Rs for Kent Station for recordation upon closing of the Initial
Takedown Parcel. The motion was seconded by Tim Clark and passed 2-0. Julie Peterson
did not previously concur on this item.
KING COUNTY HOUSING AUTHORITY AMENDMENT TO HOUSING COOPERATION
AGREEMENT
Finance Director Bob Nachlinger presented a revised version of the King County Housing Authority
Amendment to Housing Cooperation Agreement, which has been agreed to by the King County
Housing Authority, as well as the City Attorney and Mr Nachlinger Mr Nachlinger advised the
Operations Committee that 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 and there are $3,210,000 plus some unamortized discounts currently
outstanding on these bonds Mr Nachlinger further advised that the Harrison House senior housing
complex is in need of major capital improvements and that neither the City or the Housing Authority
have available funds to make these repairs, which Mr Nachlinger advised is estimated at
approximately $2 5 million The Housing Authority plans to partner with a private firm who will gain
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Operations Committee, 4/20/2004
the tax credits for affordable housing to make these repairs This partnership will require some
amendments to the current agreement between the Housing Authority and the City, as well as
ownership rights
Mr Nachlinger advised the Operations Committee that there will be a reduction of $17,280 in
subsidies for rental assistance as a budget impact
Kent City Attorney Tom Brubaker advised that there were members of the Housing Authority present
should the Committee have questions for them Mr Brubaker advised that the revised version of the
Amendment Agreement which is the final agreement only differs from the amendment in the agenda
j packet allows for a different legal partnership entities to be added for these tax credit agencies The
City now can use limited liability partnerships and limited liability companies which allows a little
more freedom under the State's corporations and partnerships laws depending on who steps
forward to participate with this project and the Housing Authority Bruce White inquired who owns
this building right now Mr Brubaker advised that before 1990 the City bought the land and built the
building in a turn-key fashion and handed it over to the King County Housing Authority The Housing
Authority has it now in fee simple and that there is a reversionary clause that if the use of the
property were to change from seniors low-income housing that the property would change back to
the City Bruce White then asked why the City is entering into this Amendment Agreement, what
does the City have to gain Mr Brubaker stated that the City has an interest in providing low income
housing for seniors in Kent and the City has an interest in providing a partnership with King County
Housing Authority Mr Brubaker stated the City did design and build the building and that the
budding is in need of major repairs and it is unknown who is liable for the necessary repairs The
goal of this Amendment Agreement is to find a way to avoid the problems and the contensious
issues all together and to find a solution which works for everyone and allows the City to refinance it
and get the repairs done Mr Brubaker stated that the only drawback is the reversionary interest
gets held in abeyance for the life of the bonds Bruce White inquired as to what is the downside to
the City for entering into this Amendment and Mr Brubaker advised that he did not believe there is
no other drawback Mr Brubaker advised that the Housing Authority has had difficulty in paying a
past due LID assessment pertaining to the 277`" Corridor This will allow for those assessments to
be paid off The Housing Authority are caught in a bind as they are trying to keep the rents low so to
be affordable for the seniors and yet it is hard to generate enough capital out of those rents to do the
repairs that are necessary Tim Clark questioned that in essence what they are doing is capturing a
revenue stream as a basis for refunding of the bonds which allows them semi-refinance9 Bob
Nachlinger advised that essentially the future tax credits for investing in public housing if you will are
such that they are worth today enough money to make these repairs Tim Clark asked if this wasn't
a rather common practice on the east coast is it not Mr Nachlinger advised that tax credit deals are
very common place
Bruce White moved to recommend that the amendment to the interlocal agreement between
I the City of Kent and the King County Housing Authority be approved and forwarded to the
City Council at their meeting of May 4, 2004, subject to the City's Finance Director and the
City Attorney's concurrence of the language therein. The motion was seconded by Tim Clark
and passed 3-0. Julie Peterson previously concurred on this agenda item.
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Operations Committee, 4/20/2004 ,
TAXABLE REFUNDING OF THE OUTSTANDING UNLIMITED TAX HOUSING BONDS t
Finance Director Bob Nachlinger presented the Taxable Refunding of the Outstanding Unlimited Tax
Housing Bonds agenda item which is a companion item to the King County Housing Authority
Amendment to Housing Cooperation Agreement. Mr Nachlinger advised that 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 Mr Nachlinger stated that the amendment to the
Housing Cooperation Agreement between the City of Kent and the King County Housing Authority
will create a limited partnership with an ownership interest in the Project Under Internal Revenue
Service regulations, such an entity causes the financing used for the Project to become taxable
rather than tax exempt The City must undertake this refunding concurrently with the agreement to
be in compliance with these regulations Mr Nachlinger stated that there is no budget impact
regarding refunding of the unlimited tax housing bonds and that the agreement with the Housing
Authority states that the Housing Authority will pay any and all increases to the cost of the existing
debt and the City is to be held harmless for any payments necessary for any increases and debt
service costs and also the cost of the transaction in doing this and the residents of the City will
receive no additional tax burden He further advised that refunding of$3 million of bond were voted
on and paid for and to reissue them as taxable bonds Tim Clark inquired as to whether this is a
fairly standard approach and Mr Nachlinger advised it was
Bruce White moved to recommend that the Ordinance authorizing the refunding of the
outstanding portion of the Housing Bonds authorized by Ordinance No. 3115 on a taxable
basis be approved and forwarded to the City Council at its meeting of May 4, 2004.. The
motion was seconded by Tim Clark and passed 3-0. Julie Peterson previously concurred on
this item.
2004 1st QUARTER FINANCIAL REPORT
Assistant Finance Director Cliff Craig presented the 2004 Vt Quarter Financial Report for
informational purposes only Mr Craig advised the City has moved to doing the City's Financial
Reports on a quarterly basis to save staff time and make better use of the City's limited resources
that the revenues are $540,000 under the adjusted budget and that expenditures are $380,000
under budget Mr Cliff advised that the general fund is looking more less as what it has been and
probably with an ending fund balance coming in around 4'/z% of expenditures, however, these are
early projections and they believe they will improve as the year progresses He cautioned though
that this early in the year the data is very inconclusive as it is still too early in the year to tell where
the budget is going
Tim Clark stated that the Finance Department has done a great job but that when seeing the
January sales tax figures everyone was stunned Mr Craig advised that February was even worse
than January and that it came back up again in March. Tim Clark advised that a whole lot of life in
the City is coming if you look at the budding permits Tim Clark inquired if there was a significant
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increase in permitting and other sources of revenue for the City, such as in general sales taxes and
other types of utility rates and what not Mr Cliff expects that there is come correlation over time
and it will eventually turn into property tax for the City Mr Nachlinger stated that it add to utility
taxes There is about a two year lag time between the building permit and seeing something hit the
tax rolls Mr Clark then inquired about whether the street fund has stabilized at this point Mr
Nachlinger advised yes it is Mr Craig advised that its revenue sources are not as volatile as the
general fund He stated the motor vehicle fuel tax is fairly stable and the utility taxes are generally
good and the utility taxes are currently coming in over budget
Tim Clark inquired regarding the criminal justice fund needing an adjustment Mr Craig stated that if
I the criminal justice portion of the sales tax does not pick up we may need to move some of that staff
from the criminal justice fund into the general fund as the criminal justice sales tax is also down and
they will want to see a greater amount of expenditure savings there Mr Craig advised that it is not
a large fund The total expenditure is approximately $2 million per year and if you look at the bottom
line right now it would be down about $115,000 which may require them to move a funding for a few
staff to a different place such as the general fund
Mr Cliff stated that the insurance fund is showing a good trend now It has stabilized and is now
coming in under budget
Mr Nachlinger stated that the entire quarterly report will be on the City's website in a day or two for
the citizens review
The meeting was adjourned at 4 41 p m
Renee Cameron
Operations Committee Secretary
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