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City Council Meeting - Council - Agenda - 11/20/2012
CITY OF KENT ����J ii/i iIJ✓/r >/ r rah' l/r % /��//; City Council Meeting Agenda �. November 20, 2012 Mayor Suzette Cooke Dennis Higgins, Council President Councilmembers Elizabeth Albertson m Bill Boyce Jamie Perry x Dana Ralph u Deborah Ranniger we Les Thomas CIFY CLERK u �' KENT CITY COUNCIL AGENDAS KENT November 20, 2012 W>_HI. �N Council Chambers MAYOR: Suzette Cooke COUNCILMEMBERS: Dennis Higgins, President Elizabeth Albertson Bill Boyce Jamie Perry Dana Ralph Deborah Ranniger Les Thomas ********************************************************************** COUNCIL WORKSHOP AGENDA 5:30 p.m. Item Description Speaker Time 1. ShoWare Economic Impact Study Ben Wolters 60 minutes and Revenue Option Report ********************************************************************** COUNCIL MEETING AGENDA 7:00 p.m. 1. CALL TO ORDER/FLAG SALUTE 2. ROLL CALL 3. CHANGES TO AGENDA A. FROM COUNCIL, ADMINISTRATION, OR STAFF B. FROM THE PUBLIC - Citizens may request that an item be added to the agenda at this time. Please stand or raise your hand to be recognized by the Mayor. 4. PUBLIC COMMUNICATIONS A. Public Recognition - Merrill Vesper, 40 years B. Community Events C. Giving Campaign Presentation D. Kent Parks Foundation Donation E. Green Kent Business of the Year Award F. Public Safety Report and Life Saving Award G. Intergovernmental Reports 5. PUBLIC HEARINGS 6. PUBLIC COMMENT 7. CONSENT CALENDAR A. Minutes of Previous Meeting and Workshop - Approve B. Payment of Bills - Approve C. 2012 Annual Docket Report - Approve D. East Hill Revitalization Project Grant - Accept E. 2013 Water Treatment Chemicals Contract - Authorize (Continued) COUNCIL MEETING AGENDA CONTINUED F. James Street Pump Station Geotechnical Services Contract — Authorize G. James Street Pump Station Contaminated Soil Cleanup Contract — Authorize H. Lower Russell Road Levee Appraiser Contract — Authorize I. Lower Russell Road Levee Negotiator Contract — Authorize J. Milwaukee II Levee Geotechnical Engineering Services Contract — Authorize K. Milwaukee II Levee Structural Design Engineering Services Contract — Authorize L. Bulletproof Vest Partnership Grant — Accept M. State Criminal Alien Assistance Program Grant — Accept N. Department of Licensing Driver and Plate Search Interagency Agreement — Authorize O. School Resource Officer Agreement with Kent School District — Authorize S. OTHER BUSINESS A. Business and Occupation Tax Ordinance 9. BIDS 10. REPORTS FROM STANDING COMMITTEES, STAFF AND SPECIAL COMMITTEES 11. EXECUTIVE SESSION AND ACTION AFTER EXECUTIVE SESSION A. Property Negotiations 12. ADJOURNMENT NOTE: A copy of the full agenda packet is available for perusal in the City Clerk's Office and the Kent Regional Library. The Agenda Summary page and complete packet are on the City of Kent web site at www.KentWa.gov 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. 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L N FLU U +' W W '� UZW >- C , u , - Vl v O a� 6 a K in V m Q V > 4 a QF � m0 Q mU �, l_ ti COUNCIL WORKSHOP 1) ShoWare Economic Impact Study and Revenue Option Report IMEr 1 IUM Historical Analysis Revenue Growth Initiatives and Recommendations � I October 26, 2012 Page 1 of 14 nrrvuem�nunapnvrrmt far nmoule Wdx Paa4va Introduction and Background In 2006, the U.S. and Pacific Northwest economies were robust. Credit use was abundant, home values were soaring, and many consumers were tapping the increased equity on their homes for non-essential spending(home renovations and/or furnishings, travel, entertainrent, etc.) The City of Kent commissioned a feasibility study conducted by Brailsford& Dunlavey to ascertain the viability of constructing and operating a multi-purpose sports and entertainment venue. This report was completed in February 2007. The touring entertainrent business was strong, and many new facilities which had opened within the most recent several years were enjoying successful start-up periods. Coupled with the prospect of a long-term anchor sports tenant, the decision to move forward with the Kent Events Center (subsequently renamed ShoWare Center)was made by the City. Later in 2007, proposals for management of The Center were requested. Although significantly more conservative than the B&D study relative to potential financial performance, the proposals were reflective of the industry climate at that time. During the arena's construction in 2008, what is now being called "The Great Recession" hit the entire U.S. economy. The longevity of the situation and the impact on the entertainment business were not yet known, but over the subsequent few years it became apparent that there were fundamental changes in the way venues operate and attract business, and how consumers and businesses choose to spend and allocate their discretionary funds. This report provides a snapshot of the competitive local marketplace for hosting live entertainment events, and a visual summary of the first four years of ShoWare Center operations and revenue generation, highlighting contributory factors to the results. Recognizing how the competitive marketplace and other contributory factors impact revenue generation, immediate steps to streamline the operation of the venue were conducted and continual, ongoing efforts are focused to reduce overall operating costs and mitigate the impact and challenges of revenue generation. Understanding what steps have been taken and what has been achieved, some revenue growth initiatives recommendations will be presented that, if implemented, could serve to improve the overall financial performance of the facility in the coming years. Knowing that these recommendations may have obstacles, and have significant variables which can impact both their direct and indirect benefits, we look forward to working with the City of Kent in reviewing the expectations and goals of ShoWare Center in both the current environment and in the years to come. Page 2 of 14 Recommendations From all the information contained herein, it is extremely important to realize that the change in economic climate since the ShoWare Center project initially began has resulted in a significant change in the touring entertainrent business, in how events are booked, and in how both consumers and businesses spend money. From the event promoter/producer standpoint, as there are many venues competing for a share of an inconsistent supply of indoor entertainment, all the revenue streams associated with events are expected to be available in some fashion of partnership or risk mitigation. The days of simply renting the facility and making guaranteed revenue are over for the most part. Many concert promoters have either become venue operators themselves, or have exclusive affiliations with venues to drive programming to those venues in which they share the risk/reward. The nation's two largest concert promoters, Live Nation and AEG, both have multiple venue affiliations in the greater Seattle market and are not incentivized to bring shows to ShoWare Center. To be able to compete in this new climate, ShoWare Center will need to participate as a financial partner to attract enough events to have a chance for revenue growth. Programming is the catalyst that drives most of the revenue growth opportunities. Statistical data for the first four years of ShoWare Center operations indicate that the number of total events has increased, and the event revenues have remained consistent (less than 10%variance from the highest to lowest). Community-based events, catering functions, and the cultivation of local promoters have provided the activity level to maintain this base level of business. The 10-year naming rights and ticketing partnership with ShoWare cultivated by SMG also provides a significant revenue constant for the next six years. The areas of significant revenue decline have been suites and club seats. In an effort to increase revenue, a hockey-only annual suite license package was developed and has yielded a few additional leases. Additionally, an SMG emphasis on renting suites on an individual event basis has helped recoup a portion of the lost annual suite lease revenue. Two factors will be needed to significantly increase the total suite revenues — a sustained economic recovery, especially for area businesses, and higher profile entertainment programming. The decline in club seats is also attributable to two main points. Supply and demand, and entertainment event opportunities. At the historic and likely foreseeable attendance levels for hockey, fans can enjoy the location and amenities of club seating on a per-game basis, without needing to make an every game commitment. Under the current financial formula, ShoWare center receives approximately 1/2 less revenue per seat on a club seat sold on an individual game basis than on a season basis. Unless more or different value-added amenities are included in the program, we believe it is unlikely club seat revenue will return to its opening season level. The current benefit of providing the opportunity to purchase priority seating for non-hockey entertainment events could increase the perceived value, with the implementation of the programming initiatives presented. Although the advertising revenues have not dropped as dramatically as premium seating (down 12%from opening year), they have decreased slightly every year,a trend which is not uncommon in similar venues. With the hockey team as the agent in charge of selling both team and arena advertising, this is a non- traditional arrangement that could inhibit revenue growth in this area. The more customary industry arrangement has the arena management selling"arena inventory" and the tenant selling"team inventory". A third party solution on a commission-only basis could increase sales without adding overhead. The hockey team would still receive its contractual team share on all sales and commission on existing client Page 3 of 14 renewals, but the commission would go to a third party for new sales. In this case, the likelihood of additional revenues for both ShoWare Center and the Thunderbirds could increase. Whereas the potential benefit is not easily quantified, the recommendation of expanding scheduling flexibility with the Thunderbirds could be relevant to revenue growth. The Thunderbirds have continued to work with SMG staff on scheduling non-hockey events; however, there is a need for more flexibility during their season. The ability to schedule events when available and capitalize on opportunities is paramount to maximizing revenue growth. However, based on available information the WHL American Division operating guidelines do not currently provide for this type of scheduling scenario. We would recommend engaging the league in a dialogue regarding this issue in an effort to provide greater flexibility. The other recommendations include potential opportunities to generate some additional revenue based on existing business and community interests. Increasing the facility fee could be implemented to keep pace with industry trends. While the proposed facility fee amount would reflect an increase over fees charged amongst venues within the region, it is not anticipated that this would become a barrier to event generation. Increases to facility fees such as this have not proven to be a deterrent to patron ticket purchases, or be a point of contention with show deal negotiations and approvals. Promoters also understand the additional revenue would become an increased revenue stream for any partnership or risk mitigation scenarios. The VIP experience would be attractive to those interested in paying for additional services to enhance their entertainment experience. The benefits and associated fees of this type of program can be fluid and adjusted/tailored on a per event basis. As demand for ice time grows in the market, the ice time rental is a plan to capitalize on dark day scenarios. The allure of playing or skating on ice within facilities where spectators pay to view similar activities has proven successful over many years, oftentimes as "post-event skates" after hockey games or other ice events. With local youth and adult programs in the area, addressing this demand could be a worthwhile initiative. This initiative would be implemented in coordination and discussion with the Kent Valley Hockey Center. The revenue assumptions made back in 2006-7 during conception of the ShoWare Center project are no longer applicable in the today's economic environrnent. The timing of the nationwide economic recession essentially negated the "honeymoon period" new venues typically enjoy and the associated initial financial prosperity. The revenue growth outlook for the next several years at ShoWare Center is focused on a central theme—making educated decisions to determine when to take calculated risks to increase programming of entertainment events with a reasonable probability of local public appeal. As with any risk venture, there are no guarantees of success. However, based on our experience in managing multiple facilities we believe the implementation of recommendations contained herein could serve at a minimum to stabilize the operating subsidy to average historic levels, and have the realistic potential to further reduce the annual operating subsidy of ShoWare Center over the next several years. SMG will continue to manage operating expenses, maintain the City's venue and assets, work with both local and national groups on varied uses of the facility, and provide quality service to the patrons, supporters and users of ShoWare Center. We look forward to working with the City and the Thunderbirds on implementing any or all of the initiatives for the benefit of all. Page 4 of 14 Regional Venue Competition As most revenue generation directly correlates to success in attracting and hosting events, it is important to recognize the competitive landscape of the local marketplace. The following chart lists the venues within approximately a one hour drive (except The Gorge)which host live entertainrnent events. Distance From Venue Venue Capacity ShoWare Center Affiliation Benaro a Hall 2500 17 miles Chateau St. Michelle 4300 20 miles Live Nation Christian Faith Center 5000 5 miles Comcast Arena 10000 46 miles Emerald Queen Casino 2000 10 miles Gorge Amphitheatre 20000 150 miles Live Nation Ke Arena 15500 15 miles Marymoor Park 5000 25 miles McCaw Hall 2960 15 miles Paramount Theater 2807 20 miles Puyallup Fair 10580 17 miles AEG Showbox At The Market 1997 15 miles AEG Showbox SODO 2050 15 miles AEG Snoqualmie Casino 2000 30 miles Tacoma Dome 22500 17 miles Tulalip Amphitheatre 2400 55 miles WAMU Theater 7000 15 miles AEG White River Amphitheatre 20000 15 miles Live Nation Woodland Park Zoo 3800 25 miles Two venues excluded from the chart due to their size are Century Link Field and Safeco Field. Although not direct competition to host events, their NFL, MLS and MLB sports tenants and other events serve as formidable competition for consumer discretionary spending on entertainrnent. National Promoter Venue Affiliations • The two largest concert promoters in the country; AEG and Live Nation, are incentivized to bring shows to venues they own or have risk partner/revenue sharing affiliations. • Currently in the absence of a full financial risk partnership on events, where the city would share in both financial reward and risk, AEG has indicated they will only consider ShoWare Center when their affiliated venues are not available. • SMG staff continues to work with Live Nation for future events, but have been told that the ShoWare Center seating capacity does not meet their needs for most of the larger shows they are now promoting. Page 5 of 14 The following graphs and associated comments will serve to illustrate the financial performance of ShoWare Center and trends during its four years of operation. This historical perspective will indicate what has taken-place and how it has affected revenue generated. Number of Events 190 182 176 1160 180 IJI 70 1J1JJ1J1J��1�JJI1� Events 140llJJl�llll, 2009 2010 2011 2012 (Forecast) Hockey games 47 33 41 34 • Non-hockey events have increased 33%since the opening year. • Local promoter development, primarily initiated by SMG, has accounted for 44%of concerts hosted thus far. • SMG works closely with every community organization in the City of Kent and surrounding municipalities to bring their event to ShoWare Center. This effort has further contributed to increased usage of the venue. • Maintaining or increasing event activity will likely require ShoWare to partner as a co-promoter to mitigate risk, or to self-promote. This is becoming an industry requirement for secondary and tertiary market venues to compete for events. Event Attendance 350,000 331,355 317,803300,000 . 3 294,187 250,000 200,000 150,000 100,000 50,000 2009 2010 2011 2012 (Forecast) Hockey games 47 33 41 34 Non-hockey events 106 131 141 142 • Hockey game attendance was relatively consistent the first three years, and forecasting a 10% increase this year, mainly attributable to an increase in attendance during the second half of 2011- 2012 season. • Whereas total attendance has increased due to event volume, attendance per event varies up to 10%each year based on event mix. Page 6 of 14 Event Income $1,400,000 1,295 913 $1,200,000 1,191,554 1,215,734 1,211,061 $1,000,000 $800,000 18 46 31 6 $600,000 iiiiiii Non-Hockey Income $400,000 uuuu Hockey Income $200,000 36 38 2. 55 $'_ .... Y .... Y .... ....1 ... ....1 2009 2010 2011 2012 (Forecast) Hockey Games 47 33 41 34 Hockey income per game $8,901 $9,694 $8,998 $11,278 Non-hockey events 106 131 141 142 Non-hockey income/event $7,295 $6,839 $6,574 $5,828 • Event income includes net rental income, food and beverage income, novelty/merchandise income, facility fees, ticketing royalties, and individual non-hockey event suite rental income • Annual variances of hockey game income can be significant due to number of games per calendar year(spans two league seasons, and playoff potential) • Non-hockey annual income has increased from the opening year, however per event income has steadily declined due to tighter deals to attract events, and thus decreasing per event yields. Catering Income $160,000 137,405 $140,000 $120,000 $100,000 90980 $80,000 74,361 $60,000 52,161 $40,000 $20,000 $ UV_ � - 2009 2010 2011 2012 (Forecast) Events 20 32 37 48 Income per event $2,608 $4,293 $2,009 $1,895 • As a result of SMG's concentrated outreach, catering events have more than doubled. • Catering income can vary widely from year to year due to number of attendees and menu selection. Page 7 of 14 Suite Income $250,000 220,635 $200,000 164,769 174,898 uuuu Non Hockey $150,000 4 5 uuuuHockey $100,000 90,019 $5 0,000 787 135 43 3 $_ .., ..126 ., 2009 2010 2011 2012 (Forecast) • Total Suite income has declined 59%from opening year. • Annual suite leases have declined 77%, but that has been mitigated slightly with increase in individual event rentals of approximately $38,000 and $28,000, respectively, the past two years. • Decline in annual suite leases likely attributable not only to economic recession, but also due to less than desired quantity of touring entertainment events. • To combat lack of interest in annual suite leases, a hockey-only package was offered, with suites sold on an individual event basis for other events. • This new arrangement has helped renew three suite holders, and interest and inquiries have increased. • Total suite income growth can increase with hockey team success for hockey-only packages, and for individual event rentals based on the ability to attract higher profile entertainment events. Club Ticket Income $200,000 1.85,826 $150,000 uuuu Single Game 109,652 108,348 Tickets 8$607$100,000 74 ppllll Season Tickets 0 3 $50,000 1 8 8 $- UM 2009 2010 2011 2012 (Forecast) Hockey Games 47 33 41 34 Season club tickets/game 257 203 224 226 Single game club tickets/game 55 60 67 73 • Club Ticket Revenue to include single game tickets and season tickets has declined 52% • 2009 Season Club tickets are season tickets that where purchased while at Key Arena and carried over to the ShoWare Center when the team made the move. • Number of club seats isn't varying greatly but revenue is declining due to a decrease in price. • Single game tickets include the 24 game Flex Plan. This plan was put in place in 2011 Page 8 of 14 Other Income $350,000 3 68 313,283 310,720 288 091 $300,000 $250,000 uuuu Suites 203,787 $200,000 ujClub Seats 150,735 $150,000 120,843 uuuu Advertising 3 $100,000 21 72. ng $50, gh $0 IIlU111111! uumRRits 2009 2010 2011 2012 (Forecast) Hockey games 47 33 41 34 • Naming rights revenue is fixed at $255,000 per year, six years remaining on ten year term. • Advertising revenue has decreased by 12%over four years. Additional resources and/or new types of inventory may be needed to reverse trend. • Annual Suite lease revenue has decreased by 77%from the opening year. Unless there's a significant economic turnaround for businesses, growth in this area over next several years will come from individual event rental efforts. • Club Seat Revenue has declined 58%from opening year. Since also available on a per game basis, we do not expect growth in club season tickets. Individual game club seat income will be reflected in hockey game event income. Total Income $2,500,000 2,15Q492 2032,144 2,075,494 $2,000,000 9 8 2 52 $1,500,000 uuuu Other Income $1,000,000 uuuu Event Income 1, 3 735 1 12 1 61 $500,000 2009 2010 2011 2012 (Forecast) • Total Income in 2012 is forecasted to decline approximately 13%from its peak. • Event Income has been fairly consistent, with a variance range of less than 9%over the four years of operation. • Other income has steadily declined, down over 30%from its peak, with the largest contributing factor being suite revenue decline of 60%. Page 9 of 14 Indirect Expenses 2012 2009 2010 2011 (forecast) $(500,000) $(1,000,000) ) ) ) ) uuuu Payroll $(1,500,000) uuuuOther $(2,000,000) $(2,500,000) ($2,430,157) ($2,532,976) ($2,502,918) $(3,000,000) ($2,602,21.5) • Overall indirect expenses have remained steady with less than 1%variance over four years. • Opening year expenses are typically higher due to non-recurring expenses associated with "Grand Opening" • Full Time Employees has been reduced by 20%. • All non-payroll indirect expenses have normal variations due to increases in utilities, repairs, maintenance, supplies, insurance, etc... Historic Operating Subsidy 2011 2012 2009 2010 (forecast) $(100,000) $(200,000) $(300,000) $(400,000) $(500,000) $(451,723) $(398,013) $(457,480 $(600,000) $(700,000) $(631,205) • With constant annual focus on managing expenses to mitigate reductions in forecasted revenues, the "bottom line" held relatively steady over the first three years with a variance of approximately 2.4% • Increase in the forecasted 2012 operating subsidy of approximately $195,000 over three-year historic average is primarily attributable to three components. • Unbudgeted liability of$30k as a result of state B&O tax findings. • Emergency repair of ice plant compressors for approximately $69,000 • Significant reduction in suites and club seat income from last year of$94,000 Page 10 of 14 Revenue Growth Initiatives The single most critical component of revenue growth in live entertainment venues is increasing event programming, which ultimately drives the majority of the revenue generating facets of the operation. Below are several initiatives which, if implemented, have the potential to increase revenues to keep up with or exceed inevitable increases in operating costs. Partnership in Live Event Promotion Recommendation—Risk participation through venue co-promotion or self-promotion • SMG identifies potential touring entertainment events • SMG staff researches potential local interest levels to generate recommendations • Event offer and proforma generated to measure risk/reward potential • Risk model presented to City (Contract Administrator)for approval to submit offer • Co-promoter sought as ls`option, Self-promotion 2vd option • Due to availability and timing of opportunities, multiple offers/risks may be in play simultaneously • Frequency — target 4-8 opportunities per year • Measurement of success should be on an annual basis, or after multiple events Revenue potential/target • Direct—Increase potential event revenues $100K+ annually • Indirect—Increase programming appeal for potential suite, club seat, and advertising sales • Possible to lose money directly, but still have indirect benefits Parking Recommendation - Implement paid parking for events with admission charge • Common revenue stream for venues which control some or all of their available parking inventory • Paid parking already present at majority of regional competing venues • Approximately 550 spaces available for sale on site per event • Creates additional revenue to potentially mitigate risk/increase profit for event promoters • Fee based parking operations will require the necessary planning, and coordination with local traffic management to minimize any traffic congestion and issues that might occur on adjacent roadways. Revenue potential/target • Paid parking is based on an estimated 50-75 qualifyng events per year. • Recommend $5 per space - quick transactions, within regional market range for on-site parking. • Implementation for Thunderbirds game will be done in collaboration with the team. Net of associated expenses, fee based parking could potentially generate $50-75K annually Page 11 of 14 Facility Fee Recommendation- Increase the current facility fee from $2.00 to $3.00 • Common revenue stream among venues, added to every ticket sold, to offset operating or repair/replacement costs, or debt service • Based on experience managing multiple venues we do not believe this fee would be a deterrent to agents and managers and will be viewed as additional revenue sharing opportunity by promoters for risk partnerships. • Negotiate with Thunderbirds and existing multi-year or annual event producers (such as Feld Entertainment) on the increase and potential sharing of same. Revenue Potential/Target Using the 2012 forecast for tickets sold and adding an additional $1.00 facility fee, this initiative could generate approximately $100,000 in additional revenue. Ice Time Rental Recommendation—Promote ice time rental to local and regional youth and adult hockey teams, and figure skating groups. This initiative would be implemented in coordination with the Kent Valley Ice Center, with intention of minimizing a competitive impact. • As amateur hockey is expanding in the region, there has been an increased local demand for ice time. • Rent the ice on"dark" nights with the facility in the appropriate configuration • Promote this opportunity to all local and regional hockey leagues, and figure skating groups. • Work through the Thunderbirds and their relationship with local teams. • Outreach to local public ice rink to analyze demand and strategize how best to accommodate all parties, with intention of minimizing direct competition. Revenue Potential/Target Estimating the potential for 50 dark nights, 75%"occupancy", 3 hours rental per evening, and rental cost at$350 per hour(going rate for prime time ice with a premium being at ShoWare Center), annual potential revenue could be $20,000 range, net of operating costs. Page 12 of 14 Advertising Recommendation -Propose an amendment to the hockey agreement to bring in a third party company to sell remaining unsold arena advertising inventory and potential new inventory. • Solicit proposals from third party advertising sales firms to sell unsold arena inventory (currently 20%, representing potentially $50,000 annually), and propose new forms of advertising inventory on commission-only basis. • The team will continue to sell all team advertising inventory exclusively and retain 100%of revenue. • The team will still receive 25%of all building advertising sales revenue (net of third party commission and exclusive of scoreboard), including newly added inventory. • The team will receive 15%commission on renewal contracts of existing clients. Benefits The City would have dedicated resource selling arena advertising inventory as primary focus, without adding additional overhead. Based on the current value of remaining advertising signage alone, this could net the arena an additional $50,000 annually after commission and hockey team split. Additional sales without overhead would also benefit the hockey team and allow their current resources to focus exclusively on remaining team inventory. Scheduling Flexibility Under the current hockey lease scheduling process, there have been missed event opportunities including, for example, Chris Tomlin, ZZ Top, and The Avert Brothers. It is important to note, the Thunderbirds have and continue to work with SMG on event opportunities, occurring during the hockey season. However, additional flexibility from the current process would enhance the ability to capitalize on as many opportunities as possible. Recommendation -Propose an amendment to the hockey lease that permits more flexibility in scheduling non-hockey events. (Based on available information, current WHL American Division Lease agreements do not provide for this scheduling option.) • Opportunity to confirm events on hockey hold dates prior to finalization of league regular season schedule or playoff schedule, providing alternative hold dates to team and league. • Non game day practices can be moved with at least 30 days notice and alternative ice time provided. • After league schedule is finalized, ability to reschedule up to two regular season games annually, one pre Janl, one post Jan 1 with at least 30 days advance notice in order to accommodate for touring entertainment events or other significant revenue generating events. No moving of playoff games. • Negotiate fair compensation to Thunderbirds in the event of a rescheduled game • Flat fee per rescheduled game Page 13 of 14 • Formula based on average ticket sales gross difference from day of original game today of rescheduled game • After league schedule is finalized, ShoWare staff would work with the Thunderbirds in identifying those critical game days not to be subject to rescheduling, i.e. opening night, fan appreciation night, special promotion games, rivalry games, etc... Benefit Capitalizing on as much programming as possible to maximize event revenues, and provide additional value to the suites, club seats, and advertising sales efforts. "VIP Club" Membership* Recommendation -offer a $15 "VIP Club" membership per non- hockey ticketed event. • Includes a reserved parking space, designated no-waiting entrance to the building through the club/suite entrance, $5.00 Food and Beverage coupon. • Initial offer limitation of 100 spaces to create demand • Tickets and Parking pass will be mailed. Revenue Potential/Target Based on 38 ticketed events (not including hockey games), after food cost, labor, and ticketing service charge, potential to generate approximate $40K annually. *This initiative is currently in development. Page 14 of 14 THUNDERBIRD HOCKEY ENTERPRISES LLC SEATTLE THUNDERBIRDS AND ShoWare CENTER A I � F V& ISEATTL V ks ad � ShoWare 'IIM ! I EN-r 625 WEST DAMES ST. KENT, WA , 98032 i tI �E_!A1TTLgj) ShoWare CITY OF KENT REPORT SEATTLE THUNDERBIRDS INTRODUCTION We. pondered how exactly to respond to your request for a submission pertaining to future marketing and growth plans for the Thunderbirds. Since we sell all the advertising in the.building we have tried to address both Thunderbirds and overall advertising potential in our remarks. Since opening the ShoWare Center during the 2009 — 2010 season the 'Thunderbirds have increased average attendance each full season. In addition to attendance we have seen growth in revenue to the Citlt in Advertising, Rent, Concessions and Admissions Tax. The Strength of our marketing program continues to be in a strong group sales effort combined with individual promotions geared to attract new fans to try our game experience. We continue to offer fundraising opportunities to various non- profit organizations along with our discount and special event nights. j SEASON AVG. REVENUE A1"1'1-;NDANCE TO THE CIIY LICENSE&FACILITY PEE 2008—2009* 4,150* $230,166 -:j 2009—2010 - 3,849 $255,443 2010—2011 4,095 $277,773 P. 2011—2012 4,206 $283,514 2012—2013** 4,465** tbd 6 1 Vtmuii 51.W ut full,cur ie6es mw soon rthc acom:d half wJp *a-20'12—2013 Seosuo to date Out initial reception and our general approval rating from almost all new patrons is very positive, all while selling a new sport in a new territory with limited previous exposure to hockey. Young fanulies have built memories when they attended the circus, the Globetrotters, a Disney show or a Thunderbirds game in the building and they came to Kent to do those things. Graduations are a huge success and present extremely well in this venue and these too create very special memories for all that arc a part of them. In our experience the citizens of Kent are very proud of ShoWare and it is our opinion that the sooner all partners in the building can speak positively about the ShoWare Center and its benefits to the City the easier it will be to grow the revenue that the building can produce. The question we feel is how we increase the revenues to allow the ShoWare Center to pay its own way and we believe that speaking positively about the benefits of the building will help the bottom line. 2 I ShoWare JyL7�/dL61 IKENY Thunderbird Hockey is (and was expected to be) the biggest revenue producer for ShoWare Center. To �I, dare our games have generated for the building in excess of$1.3 million per year in rent, advertising, concessions, naming rights and sponsorship. We feel this number can continue to grow, through our continued marketing and promotion and an increase in quality events that advertisers will want to be tied too. We strongly endorse the building management's plans to more aggressively pursue larger and higher profile shows and concerts for the building because this will increase total traffic and exposure for advertisers and will allow additional ad revenue to be attracted as a result. To date the advertising '.. revenue generated for the building is mainly based oil advertisers' interest in being involved at Thunderbirds games. TICKETS / SEASON & PACKAGES / GROUPS Game Night Promotions / Events Since opening up the ShoWare Center we have worked to provide a fun, family affordable entertainment option for our fans. The goal was and is to create prumoduns and events around each of our games. The events listed below are some of the examples of ones we are currently doing and they have shown growth each year we have done them. Also listed are some of the new programs we are starting and will build off in coming seasons. Recurring Events / Game Night Promotions 1. Two - fer-Tuesday's presented by Directors Mortgage a. These nights have built a following of their own and are growing in popularity. 2. Bobble heads presented by XFTNT'IY 3. Teddy Bear Toss presented by Fred Meyer a. Pub Nights s. Youth Group Night 6. Boy Scout Night 7. Girl Scout Cookie Kick Off 8. Beginner Festival presented by KPS Health e. Hockey Challenge to Benefit Ronald McDonald House Charities of Western Washington and Alaska Each of these Nights have increased each year and continue to be games fans and groups look for each year. As an example;last season our first'1'wo for Tuesday fell on October 18`h, and drew 2,784 fans— This season the first Two -fer-Tuesday fell on October 16°i and drew 4,143. 3 5 �1TTL ShoWare New Programs 1. Thunderbirds Community Sports Foundation — Support a Sport - Benefiting Kent School District. The Support a Sport event is a fundraising opportunity for the Kent School District. Students, teachers, staff, parents and friends of Kent High Schools and Middle Schools can purchase Seattle Thunderbirds tickets to the game on Wednesday, November 21, to earn funding for the school of their choice. The full purchase price of a $24 T-Birds ticket will be donated to the Kent school of the purchaser's choice. $12 per ticket is being donated by the Seattle Thunderbirds and $12 is being matched by the Thunderbird Community Sports Foundation. The unique part of this fundraising opportunity is the matching donation given by the Foundation. The Dent School District has the opportunity to raise over$72,000 through the Support a Sport Event. We are excited about this promotion both for the fundraising opportutucy it provides to Kent Schools but longer term to our growing involvement and partnership with the Kent School District to build long term fans. 2. GLOW and galley Medical Center — Pink the Rink — Now in its second season, we have partnered with Valley Medical and GLOW to bring awareness and funds to provide mammograms and breast health education for uninsured women at high risk of developing breast cancer. This year's event is October 28"',2012. Season Tickets / Packages / Groups Overall we have had good success within the south King County region; Tacoma, Renton, Auburn, Covington,Federal Way and Maple Valley markets while maintaining our fans in East King County. We continue to make strides throughout the south and will keep working to shove the business community of Kent that our product is a very good value. Currently we have only 14% of the I DP businesses and 11% of the Kent Chamber businesses with ticket packages. We see this as a growth opportunity, and we will keep working to increase our penetration into these key areas of the Kent business community. We would urge the City to join with us and ShoWare Management to speak positively about the ShoWare Center,its benefits to the City and the experience of attending events in Kent We have learned from our experiences here at the ShoWare Center that building our season ticket base is a multi-step process, since so few of our new fans has any previous hockey, experience. We are developing and grooving the fan base through reach and frequency and use the philosophy of; 4 S A7TCE 11R„411E"'""° ShoWare The Attendance Frequency Escalator "Get< n as » u a " 'Ent On ; Move 'Ern Up ; and Keep Em On . fPun-season .1(i I P1vel Crones X OF HOME GAMES J f 0 ATTENREO I tiEASON I I I I I I GET'EM ON MOVE'EM UP KEEP'EM ON -Samp8n88 -FWI Menu of P011lal antl Mlnl Plans -S.M..BR.Ie Iron Trlwl -InNlvl,iunl®nal Grout/Salos I ATTENDANCE FREQUENCY Our Marketing Strategy has three steps .... 1. Focus on]seeping the most avid Fans we have. 2. Build products and services and unique benefits that encourage the casual customers to increase their purchase frequency (move up the ladder). This is done through the sale of our smaller packages and marketing to our single game buyer lists through, direct mail, direct email, phone calls,and social media, etc. 3. By malting the avid and casual fans so satisfied, encourage them to use word of mouth to bring family, friends and associates, Sampling / Trial programs aimed at high probability targets (youth sport participants, school children, business groups). Reduce the emphasis on Mass Media advertising and use Direct Marketing instead. Examples include: our email database, Target Marketing using Comeast Spothghc, other email databases obtained from businesses, radio stations etc.,Reporter Newspapers in Kent and surrounding Cities, etc. Group ticket sales have been and will be a main area of focus for our sales and marketing team. Within group sales there are a number of different targets chat we focus on. Businesses -We create opportunities for Businesses to use Thunderbirds games to grow their revenues; opportunities include; entertaining current and potential customers, employees, and advertising and marketing opportunities that can give companies direct access to a very loyal fan base. Community Groups - Social events and potential fundraisers for the non-profit groups as well. Service Groups -Social outings, fundraisers,and building relationships in the community. Youth or Kids Groups, teams,etc.,.. 1 Birthday Parties Any group of people looking for great entertainment at a great value. 5 ftER TL 11 ShoWare WENT HMV SUITE SALES As we all are aware this type of item is one of the most dramatically affected by a major downturn in the economy. Prior to the building opening we had 14 of 20 suites committed to on an annual basis (3 year agreements) and this was based on initial estimates of the number of shows and concerts. Before the '... opening and through that first year we lost 5 of them to the economy (businesses went under or needed to get out of their deals). This became a tough sell in a bad economy and we were hurt by the lack of major shows and concerts that the building was able to attract in our first 4 years of operation. We had not seen any new sales after the crash for a long stretch which emphasized the need to alter our initial sales strategy of selling the suites at a higher price for all events that were (or might be) held in the building. We adjusted to our present arrangement to sell suites for Thunderbird hockey only to patrons who are interested in buying for hockey games and having first option to buy otber events. The change also allows the building to sell suites to the other events it is able to attract and keep 100% of that revenue. Another advantage is to better target the customers for the various shows. These changes allow us to set a price more aligned to the value and consequently we have seen 3 new suites sold for this season and renewed all but 1 from last season. With the change in pricing we also have been able to adjust the single game price and have greater flexibility to attract new businesses to sample the product. (An example is the 'two - fer - 'Tuesday Promotion.) We are having great success so far this year in selling individual games that will allow us to increase the number of potential customers to step up and purchase on a greater frequency leading to full season sales. With the adjustments that have been made, suite sales are an area for growth for the building, not just from more suites being sold but also the increased pet-cap spending in catering that comes with the suites being used. ADVERTISING PARTNERSHIP SALES Sitmnge and Partnership Philosophy In the very early design stages of the ShoWare Center the City of Kent decided they did not want to have a building that looked like it was "VASCAR like",meaning they did not want the building over run with advertisers and signagc. This set out a philosophy of less is more for the Building and Team advertisers,and in fact is the philosophy used in most new buildings. We limit the number of signs thus making the ones we do have more relevant,visible and valuable. "LESS IS MORE" In addition to lim ling the number of ad panels and signage points, the location and size were also factored in to make them part of the action as much as possible. Then we set out to build integrated 6 Afi p y g ShoWaro �Ztd6 6LE marketing proposals and packages for our Corporate Partners that maximize the benefits of both the team and budding inventories. Despite the downturn in the economy the Fact that we are able to offer exclusivity to potential advertisers and combined packaging with both building and hockey team connected, ads we have been able to maintain the value and premium price for our inventory. With one selling agent we are able to increase the value of signage by being able to include promotions that run in and around the Thunderbirds games. Advertisers today for the most part are not looking to just buy signage, they need the ability to tie in promotions and opportunities to more interact with their customers and potential customers and find ways to measure return on investment, The partnership of our original deal puts only one selling agent on the street and because of that we are not competing and more importantly undercutting each other for access in ShowWare Center. In looking at pricing of other facilities in this area and in the state we are able to maintain a greater return for the building by being able to offer exclusivity and integrated packages that include the team and building. ShoWare Centet Advertising&nventory Vomitory Signs —14 total Ring Signs—26 total Concourse Signs —14 total Score Clock Signs—10 total v ✓y � Total Revenue Potential— $505,000.00 TotalAdvertising Sold(„orinct a;.,g a„v gnghr:)f9r2012—2013 Season- $407,000.00 or 81% of the possible Revenue. List of Building and Team Advertising Partners 1. Valley Medical Centers 2. Utuversity of Phoenix 3. Les Schwab 4. XFINITY / Comcast 5. Sterling Bank 6. Directors Mortgage 7. Coca-Cola 8. Labatt/ Pabst/ Pyramid/ Mike's IIard Lemonade/ Sam Adams 9. KPS Health 10. Allied Waste 11. Industry Graphics 12, Pape 13, Schneider Homes 7 i ,1 EA TArE'i niuvu€nnmaz a hoWare PIT d 14. Sound Transit i i We believe there is opportunity for continued growth in the advertising revenue the building will generate. One of the key factors is to attract larger and higher profile concerts, shows and events that will allow advertisers to become part of those events as well. These shows combined with an improved public perception of the building and its role and contribution to Kent would allow additional advertisers to be attracted to the building. THUNDERBIRDS COMMUNITY SPORTS FOUNDATION i MISSION STATEMENT: The Seattle Thunderbirds Comtnututy Sports Foundation promotes good health,physical education,and academe achievement by providing scholarships and grants for athletics in the Puget Sound Region to participate in athletic competitions in team and individual sports, as well j as providing grants to local youth and amateur sports associations for equipment and facilities for use in the community. Since our move to Kent and forming this foundation we have given grants of nearly$120,000 (we are scheduled to fill another$20,000 in grants in the next few weeks) to various minor sports organizations in the region vAth the majority going to Kent based sports programs. We have funded school sports,we have funded disabled sports,we have funded disadvantaged participation fees, we have funded start up and special events and all of these were made possible by our move to Kent and involvement in ShowWare Center. I Funds Awarded e Kent School District: $21,700 to support m Thunderbird Community-Sports Athletic Participation Fees Foundation Scholarship: $3,000 • Kent Meridian High School Key Club: ® Kentwood I Iigh School Water Polo: $3,000 $21,319 a Kent Last Hill Boxing Club: $2,500 ® Kent Valley Hockey Association: $14,218 Cedar Heights Cheerleading Uniforms: • Western Washington Female Hockey $2,000 Association: $5,500 ® XTREME Speed Track Club : 52,000 • Kent Parks Foundation: $5,000 a Layfette Elementary School: $2,000 for ® Kent School District: $5,000 to purchase Roller Skates sports equipment a L.il Evolution Basketball Team: $2,000 ® Auburn Specialized Recreation Program: Team Seattle I Jockey: $1,695 $4,500 Shoreline Community College Women's ® Knu Cobras-Kent Football Association: Basketball: $1,500 $4,000 Cruisin'Passport Program—Kent and m Orting Middle School: 54,000 Covington: $1,063 ® Covington Community Sports: $4,000 ® Kent Little League: $1,000 • Kent AM KiNwnis Club: 53,627 m Auburn Little League: $100 '...... K Seattle Adaptive Sports: $3,000 ® Project Uth—Kent; $843 8 .pn `+gvrynp �. Sh® are ® RE�d/BiE�' - PfVxfxvmigny NENY SUMMARY Through the entire project of building the ShoWarc Center the Thunderbirds have operated with an approach of partnership with the City of Kent in all areas. Our rental agreement reflects this in the way the building advertising is divided and marketed. This has allowed the building to maintain the value and pricing at a higher level than in comparable buildings in our area due to both the limited number of signage points and the exclusivity offered to customers interested in owning their segment exclusively. This partnership is necessary to allow the building management,the City of Kent, and the Thunderbirds to continue to grow the business needed to increase revenues. Due to the unique restriction on being able to charge for parking we have worked hard to market the fact that we have free parking iuLo a strong positive and it is a significant part of the extra value that patrons of ShowWare feel they ate getting when our venue is compared to others in the area. We are very proud of the building and how it presents our product to our fans, and we know from our close involvement in the community that the citizens of Kent are proud of the facility and the fact that people come to Kent for the various events ShoWare hosts. Although there are various factors in play the sooner the City and all involved can become ambassadors for the positives that ShoWate brings to our community the sooner and better the bottom line will look each year. We thank you for the opportunity to contribute our thoughts to your building deliberations. i 9 uu u'M'M'M u'M'M'M u'M'M'M III"IIIIIII� IIIII I � I III I p U� II IIIII IIIIII U 0 w I Presented to: / ShoWare IKENT u i Prepared by: .�1.0 - �� �wyy y�I IIry,���I �� '�� withYYYY'. M1"��W V�V,6 0 VwM Wg4m & 11 It$ ,. NN �����ui�° III �� oi��� rn u Community Attributes tells data rich stories about communities that are important to decision-makers. Principal: Chris Mefford Analysts: Mark Goodman Aaron Blumenthal Alexandra Hudson Community Attributes Inc. 1402 Third Avenue, Suite 930 Seattle, Washington 98101 www.communityattributes.com EXECUTIVE SUMMARY Kents ShoWare Center opened for business in January 2009, with kick-off events including a grand opening party, immediately followed by the inaugural ShoWare Center Seattle Thunderbirds hockey season. Within its first few months, ShoWare Center bustled, having hosted a variety of concerts, sporting events and civic events. ShoWare Center's opening came at a difficult time in the midst of mounting national and global economic problems. The City of Kent had committed to building ShoWare Center in July of 2007.Just five months after construction began, the world's economy stumbled and the U.S. fell into the worst economic era since the Great Depression of the 1930s. An Entertainment Magnet Since that time, the economy has stabilized, and ShoWare Center has become a major local institution with a diverse offering of entertainment events and steady tenant draw in the Thunderbirds. ShoWare Center is now a regional magnet, attracting more than one million visitors to Kent for sports events, entertainment, conferences, civic events and more. pp`� fit' to MYklt � p' M1 sM1 Patrons come from across the region to attend events at Kents { ShoWare Center and patron draw is characterized as follows: $ • More than half of ShoWare Center visitors (excluding Thunderbirds patrons) come from south King County N N M and North Pierce County, with the highest concentrat on in and around the Kent (20%) and the Federalt(i Way/Bonney Lake area (21%). Significant patron draw �,i/O'�� r o ssvw�l ranges from Seattle (south of the Montlake Cut, 11/o), �' I ,'` Tacoma (11%), and the Bellevue/Redmond area (8%). l s1 ,M ' Ir r f :. rr ' • Patrons from beyond Kent's borders are increasingly w w " i� drawn to Kent for ShoWare Center events. From 2009 , +ins al �� to 2011 the proportion of ShoWare Center patrons with7 11 1, % �) Y y HI k[I n��o residences in Kent fell from 19% to 12%. Meanwhile, in that some time period the proportion of Tacoma and Pierce Countygrew from 16% to 25%. Patrons g • Thunderbirds season ticket-holders residences are concentrated in and around Kent, with the highest concentration located between Interstate 5 and Patron Draw. SholFare'spatrons come Highway 167. from all over the central Puget Sound region, chose residences are shown by theyellou dots • The most highly attended events from 2009 to 2011 (201/patrons). were Thunderbirds hockey and other sporting events. Kent SbolEare Center November 2012 Page i Economic Impacts In 2011 Thunderbirds and other sporting events drew 164,000 patrons. The second largest draw was family entertainment with 62,000 patrons in 2011. • Thunderbirds ticket holders attended events more frequently than non-Thunderbirds patrons. Among non-Thunderbirds patrons 72% stated they attended events 1 to 2 times a year. • Since opening in 2009 more than 1,000,000 patrons have attended events at ShoWare Center. Patron Spending Impacts ShoWare Center patrons that attend events also spend recreation dollars in Kent. They go out for dinner, shop at local businesses and sometimes spend the night at local hotels. All told, ShoWare Center patrons spent an estimated $12.1 million in 2011 at local businesses. Dining was the most common form of spending for all patron types, with shopping and lodging less common. The following sections highlight spending patterns of ShoWare Center patrons surveyed during the summer of 2012. Dining $12.1 Million in Patron Spending Outside of ShoWare, 2011 • Intercept surveys suggest that roughly 60% $Millions of patrons (not including Thunderbirds $9•7 patrons) dine out before or after events. Those that do spend roughly $40 on $8.0 dining, not including spending at ShoWare Center. $6.0 • Thunderbirds patrons are even more likely to dine out before or after the event. $4.0 Roughly 85% dine out before Thunderbirds events. $2.0 $0.9 $0.6 $0.9 Shopping and Lodging $0.0 Dining Lodging • Shopping was found to be less common Shopping Entertainment than dining, with an estimated 8% of non- SholVare patrons spent more than$12.1 million in 2011. Thunderbirds patrons shopping before or after events (the Thunderbirds patron survey did not include questions on shopping). Among those that spent money on shopping, they spent$35 per ShoWare Center related trip, on average, not including spending at ShoWare Center. • Kent Station was the most commonly mentioned destination for shopping among survey respondents. Historic Downtown Kent and East Hill, although far less common among respondents, were also mentioned as shopping destinations. • Spending on lodging and entertainment was rare among all types of survey respondents. Kent SboVare Center November 2012 Page ii Economic Impacts Full Economic Impact The $12.1 million in patron spending provides revenues for Kent businesses. These revenues allow Kent businesses to buy supplies and services from other Kent and regional businesses, and pay wages and salaries for Kent workers. These wages allow employees to spend their hard earned money on local products and services. Incorporating these induced business and employee spending benefits raises the overall impact of ShoWare Center activity to $25.1 million in 2011. The following findings provide details regarding spending by patrons both at and outside of events. • In 2011, visitors spent an estimated $12.1 million at dining and shopping businesses in Kent while attending ShoWare Center events (not including concessions sold at ShoWare Center), based on ShoWare Center patron surveys conducted in 2012. • ShoWare Center and Thunderbirds ticket and concession sales added an additional $4.5 million in 2011, for a total direct local benefit of$16.6 million. • Indirect and induced benefits, which reflect business to business spending and employee spending of personal income, are estimated to bring the total spending impact to $25.1 million in 2011.' Municipal Revenues The $25.1 million in spending generates critical tax revenues for the City of Kent, King County, Washington State and various municipal service jurisdictions. In terms of tax revenues reaped by the City of Kent, ShoWare Center related spending contributes more than $609,000in tax revenues in the form of sales tax, admissions tax and lodging taxes. These revenue figures do not include property taxes supported by local businesses and the improvements and investments they have made to Kent buildings and establishments. The following sections detail findings regarding estimated fiscal impacts to the City of Kent: • ShoWare Center contributes a total of$609,700 in tax revenues to the City of Kent annually. • Of this, $403,000 comes from patron spending at Thunderbirds games and ShoWare Center events, including dining and shopping during trips to ShoWare Center. • The additional $206,700 includes tax revenues that come from indirect and induced impacts estimated and derived from economic models. • These models capture business to business spending and the impacts from employee spending (same assumption of 75% of indirect and induced impacts captured locally). 1 The indirect and induced impacts assume 75% of all indirect and induced benefits are captured within Kent city limits. The actual number could be higher or lower than 75%,likely less than 100%,but likely fairly high within a range of 0 to 100%as well. Kenfs concentration of wholesale suppliers and distributors suggest a relatively higher number. Kent SbolEare Center November 2012 Page iii Economic Impacts Blank. Kent SboVare Center November 2092 Page iv Economic Impacts CONTENTS ExecutiveSummary...............................................................................................................................i Introduction..........................................................................................................................................1 Background and Purpose.................................................................................................................1 Methods.............................................................................................................................................1 Organizationof this Report.............................................................................................................2 CurrentConditions...............................................................................................................................3 Revenues and Operations ................................................................................................................5 Event Segmentation and Attendance..............................................................................................8 PatronOrigin and Draw ................................................................................................................12 Email and Intercept Survey Results ..................................................................................................16 InterceptResults.............................................................................................................................17 EmailSurvey Results......................................................................................................................22 ImpactAnalysis...................................................................................................................................27 VisitorSpending.............................................................................................................................28 KentFiscal Impacts........................................................................................................................30 Direct, Indirect and Induced Benefits ..........................................................................................33 StakeholderInterviews .......................................................................................................................35 Impacts to Local Businesses..........................................................................................................35 Challenges and Opportunities .......................................................................................................36 Relationship to Kent and Place Making........................................................................................36 Appendix A. Patron Feedback for ShoWare Center Experience....................................................38 Appendix B. Stakeholder Interviews.................................................................................................46 InterviewResponses...........................................................................................................................47 Kent SboWare Center November 2012 Page v Economic Impacts Blank. Kent SboVare Center November 2092 Page vi Economic Impacts INTRODUCTION Background and Purpose Kent City leadership and stakeholders alike recognize that ShoWare Center contributes economic and fiscal benefits to the City. However, ancillary spending of ShoWare Center visitors is not currently captured by survey data and many in the business community feel that its economic impact is positive. As a publically managed and financed facility, the City is interested in long-term sustainability of the facility and supporting its independence as an enterprise fund, providing events and recreation to the public for a fee that makes the entity self-supporting. This report quantifies economic benefits associated with its activities. The study provides analytic foundation for City strategies related to ShoWare Center. The following report provides a detailed evaluation of ShoWare Center's current conditions, spending impacts and direct fiscal impacts to the City of Kent. Both quantitative and qualitative findings are based on a series of surveys of ShoWare Center patrons in addition to interviews with local businesses impacted by ShoWare Center events. Methods The approach to this work leverages existing data from ShoWare Center, combined with primary data collection in the form of ShoWare Center attendee surveys and business interviews, along with impact modeling to tell a complete story of the economic impact of ShoWare Center. Survey research provides ancillary consumer spending data to describe visitor and business activity related to ShoWare Center. The surveys enhance perspectives on activity before, during and after ShoWare Center events and impacts on a variety of business types and locations. The business survey includes representatives from retail, restaurateurs and other businesses types and associations. The analysis draws from data compiled specifically for this analysis, including: • ShoWare Center event data and financial analysis obtained directly from ShoWare Center operator SMG. • Intercept Survey Data from two events held during the summer of 2012. • Email Survey Data obtained through an online survey distributed to 2012 ShoWare Center patrons and 2012 Thunderbirds season ticket holders. • Stakeholder interviews with key businesses throughout Kent s Downtown, East Hill and industrial neighborhoods. • City of Kent adopted budgets for 2011 and 2012. Kent SbolEare Center November 2012 Page 9 Economic Impacts Organization of this Report • Current Conditions. An overview of ShoWare Center's current operations, attendance and event segmentation. • Survey Quantitative Results. A review of spending averages obtained through both survey types. • Impact Analysis. A detailed analysis of ShoWare Center's economic impact in terms of direct spending and fiscal impact to the City of Kent. • Patron and Stakeholder Feedback. A summary of qualitative survey results and key findings from interviews conducted with Kent area businesses impacted by ShoWare Center. Kent SbolEare Center November 2012 Page 2 Economic Impacts CURRENT CONDITIONS Ground breaking for ShoWare Center took place in 2007 and the facility opened in January of 2009. ShoWare Center is owned by the City of Kent. In addition, the Special Events Center Public Facilities District oversees state sales tax revenues dedicated to servicing the debt on the construction of ShoWare Center. Public Facilities Districts (PFDs) are municipal corporations with independent taxing authority and are taxing districts under the State constitution. The event space and arena management, marketing and development firm SMG contracts with the City of Kent to operate ShoWare Center. SMG operates all aspects of the facility including booking, tickets sales, food and beverage, maintenance, finance and marketing. Food and Beverage is operated by Savor Catering, the food services division of SMG. SMG manages facilities across the nation and world, including several NFL, NBA and MLB facilities. ShoWare, the facility's namesake and official sponsor, is a ticket sales and distribution company. Naming rights to the facility were secured for ten years by ShoWare for $3,000,000. Vision One, a ticketing/ecommerce company, is the parent company of ShoWare and a direct competitor of TicketMaster. Similar events to those held at ShoWare Center can be found at several facilities in the region including Tacoma Dome in Tacoma and Comcast Arena in Everett. Concerts held at ShoWare Center are typically the only regional stop on a tour. Exhibit 1 illustrates major venues with comparable facilities and competitive draw. Kent SbolEare Center November 2012 Page 3 Economic Impacts Exhibit 1. Major Competitive Venues, Puget Sound Region, 2012 Max Distance From Venue Location Capacity ShoWare Center Year-Round Sho Ware Center Kent, WA 6,300 NA Comcast Arena Everett, WA 10,000 46miles Christian Faith Center Federal Way, WA 5,000 Smiles Emerald Queen Casino Fife, WA 2,000 10miles Showbox at the Market Seattle, WA 1,200 15 miles Showbox SODO Seattle, WA 1,500 15 miles Paramount Theater Seattle, WA 2,800 20miles Moore Theater Seattle, WA 1,400 18miles KeyArena Seattle, WA 15,500 15 miles McCaw Hall Seattle, WA 3,000 15 miles WaMu Theater Seattle, WA 7,000 15 miles Benaroya Hall Seattle, WA 2,500 17 miles Snoqualmie Casino- Ballroom Snoqualmie, WA 1,500 30miles Tacoma Dome Tacoma, WA 22,500 17 miles Tacoma Dome Theater Tacoma, WA 7,000 17 miles Broadway Center,Tacoma Tacoma, WA 1,200 19miles Pantages Theater,Tacoma Tacoma, WA 1,200 19miles Summer Season White River Amphitheatre Auburn, WA 20,000 15 miles Puyallup Fair Puyallup, WA 10,800 17 miles Gorge Amphitheatre Quincy, WA 22,000 150 miles Marymoor Park Redmond, WA 5,000 25 miles Woodland Park Zoo Seattle, WA 3,700 25 miles Snoqualmie Casino- Mountain View Plaza Snoqualmie, WA 2,000 30 miles Tulalip Amphitheater Tulalip, WA 2,400 54miles Chateau St. Michelle Winery Woodinville, WA 4,300 20 miles Source: Community Attributes Inc., 2012. Kent SboVare Center November 2012 Page 4 Economic Impacts Revenues and Operations The following provides a brief synopsis of ShoWare Center revenues and income statements. Included are exhibits on overall operating income, profits/losses, operating costs and labor. In addition, the following section segments operating income and concession sales by event type. ShoWare Center has been operating at a deficit since its opening in 2009. Exhibit 2 provides a financial history of ShoWare Center, distinguishing between hockey related income and non-hockey related income. Total income in 2011 was $2,075,496 and total costs were $2,532,976, resulting in a net loss of$457,480. Exhibit 2. Financial History, ShoWare Center, 2009-2012 2009 Actual 2010 Actual 2011 Actual Hockey event income $ 418,336 $ 319,888 $ 368,932 Advertising 583,568 568,285 565,720 Club revenue 171,574 97,391 93,221 Suite revenue 203,787 150,735 120,642 Total hockey income 1,377,265 1,136,299 1,148,515 Other income 774,492 895,846 926,981 Total income 2,151,757 2,032,145 2,075,496 Indirect/operating expenses 2,602,213 2,430,157 2,532,976 Netproifit/(loss) $(450,456) $(398,012) $(457,480) Source: ShoWare Center, 2012. Kent SbolEare Center November 2012 Page 5 Economic Impacts Exhibit 3 provides a detailed summary of operating expenses for ShoWare Center from for 2009 through 2011. Salaries and wages make up the largest share of operating expenses. In 2012 salaries and wages totaled $1,154,432, representing 46% of all operating costs. Line items such as operations, repair and maintenance, and supplies made up a smaller portion of operating expenses all three years of operation. Exhibit 3. Operating Expenses Detail, ShoWare Center, 2009-2011 FY 2009 FY 2010 FY 2011 Operating Expenses Actual Actual Actual Employee Salaries and Wages $ 1,473,104 $ 1,336,101 $ 1,371,056 Benefits $ 221,155 $ 241,588 $ 279,898 Less: Event Labor Allocations $ (474,691) $ (407,571) $ (496,521) Net Employee Wages and Benefits $ 1,219,568 $ 1,170,118 $ 1,154,432 Contracted Services $ 227,366 $ 145,405 $ 150,925 General and Administrative $ 257,766 $ 215,632 $ 248,992 Operations $ 69,898 $ 53,894 $ 58,873 Repair& Maintenance $ 42,019 $ 60,951 $ 70,654 Supplies $ 53,926 $ 37,131 $ 48,870 Insurance $ 75,653 $ 70,725 $ 71,513 Utilities $ 411,615 $ 428,278 $ 478,617 Other $ - $ - $ - SMG Management Fees $ 244,404 $ 248,023 $ 250,099 Less: Expenses Allocated $ - $ - $ - Total Operating Expenses $ 2,602,215 $ 2,430,157 $ 2,532,975 Source: ShoWare Center, 2012. Note: Event labor allocation refers to staffing costs attributable to specific events at ShoWare Center. Kent SbolEare Center November 2012 Page 6 Economic Impacts Employment associated with ShoWare Center includes two distinct groups, SMG employees and Thunderbirds employees. SMG employees that work directly at ShoWare Center are responsible for the overall operation of the facility. Thunderbirds employees are only associated with the hockey team and its operations in Kent. Exhibit 4 illustrates the total employment for each group. In 2011 SMG had 16 full-time employees and was responsible for 85,000 hours of part-time employment directly associated with events. During the some year the Thunderbirds had 16 full-time employees and employed 20 part-time employees each game night (Thunderbirds athletes are not included). Exhibit 4. Employment, Thunderbirds and ShoWare Center, 2011 Employee Type Employees Type SMG Employees at ShoWare Center 16 FTE SMG Part Time Equivalent 85,000Hours Part Time Thunderbirds Employees 16 FTE Thunderbird Part Time Equivalent 20 Each game night Source: ShoWare Center, 2012. Exhibit 5 provides a detail of employee labor costs directly associated with SMG and its operation of ShoWare Center. Event labor allocations represent staffing costs attributable to events and totaled $496,521 in 2011. Full time salaries and wages in 2011 totaled $1,154,432. Exhibit 5. Employment Expenditures, ShoWare Center, 2011 Fiscal Year Expenditure 2011 Actual Employee Salaries and Wages $ 1,371,056 Benefits $ 279,898 Less: Event Labor Allocations $ (496,521) Net Employee Wages and Benefits $ 1,154,432 Source: ShoWare Center, 2012. Kent SbolEare Center November 2012 Page 7 Economic Impacts Event Segmentation and Attendance Exhibits 6 and 7 summarize overall patron attendance at ShoWare Center during 2011. Events are categorized by type along with overall attendance, total number of events and percentage of total events (some event days included multiple performances). Events taking place on a single day may consist of multiple performances. The Thunderbirds and Other Sporting Events category represented the largest share of patron visits during 2011 (50% of all patrons). Family Entertainment represented the next largest category (21%) with Graduation and Civic (15%), Concerts (10%) and Business/Trade Events (6%) responsible for the remainder of attendance. Business/Trade events represent banquets, trade shows, meetings and consumer/public shows. Total attendance in 2011 was 331,355 spread over 138 distinct events. Exhibit 6. Event Attendance, ShoWare Center, 2011 Patrons per Percentage of Event Category Patrons Events Event All Patrons T-Birds and Other Sporting Events 164,087 60 2,735 50% Family Entertainment 62,438 5 12,488 19% Graduation and Civic 49,331 12 4,111 15% Concerts 34,080 12 2,840 10% Business/Trade 21,419 49 437 6% Total 331,355 138 2,401 100% Source: ShoWare Center, 2012. Exhibit 7. Event Attendance, ShoWare Center, 2011 Attendance 164,087 180,000 50% 160,000 140,000 120,000 100,000 80,000 62,438 19% 49,331 60,000 15% 34,080 40,000 10% 21,419 6% 20,000 0 T-Birds and Other Family Graduation and Civic Concerts Business/Trade Sporting Events Entertainment Event Type Source: ShoWare Center, 2012. Kent SboVare Center November 2012 Page 8 Economic Impacts Exhibits 8 and 9 illustrate attendance trends from ShoWare Center's opening in 2009 through 2011. The majority of attendance during this time period is attributable to Thunderbirds games and Other Sporting Events. Family Entertainment is the second largest attendance category. Both event categories experienced similar attendance patterns attendance declining from 2009 to 2010 and increasing from 2009 to 2012. The highest level attendance at ShoWare Center is typically during January of each year, the height of the Thunderbirds season. Exhibit 8. Total Event Attendance, ShoWare Center, 2009-2011 Attendance 180,000 70,55 5 ......... ......... ......... ......... ......... ......... ........ ......... 164,087 Year 140,000 /r 2009`ratOl 4 120,000 2011 1 o 1 o l fP 100,000 62,438 59,451 60,000 1 33 40,000 34,060 21,419 i 20,000 19,54 ---16 696 13,20- - � � �� 13,789 T-Bilyds and Other Famdly Entertainment Graduation and Civic Concerts Business/Trade Spouting Events EventType Source: ShoWare Center, 2012. Exhibit 9. Event Attendance by Month, ShoWare Center, 2009-2011 Attendance 70,000 60,000 - 50,00040,000 'A h 1 i 1 30,000 i / 1 i - � - 0 lanes-2109 Ju1-2009 Jan-2010 J.1-2010 Jan-2011 Ju44011 Date Source: ShoWare Center, 2012. Kent SboVare Center November 2012 Page 9 Economic Impacts Exhibits 10 and 11 illustrate total event income by event type for 2011. The majority of income generated by ShoWare Center comes directly from Thunderbirds and Other Sporting Events, totaling$532,373 in 2011. Concerts were the second largest income generator at$339,634 in 2011. Exhibit 10. Event Income Table, ShoWare Center, 2011 2011 Percentage Event Category 2011 Income Events Perfomances Income T-Birds and Other Sporting Event $532,373 60 71 41% Family Entertainment $216,059 5 24 17% Graduation and Civic $72,772 12 24 6% Concerts $339,634 13 12 26% Business/Trade $135,082 49 51 100/0 Total $1,295,920 139 182 1000/0 Source: ShoWare Center, 2012. Exhibit 11. Event Income Graph, ShoWare Center, 2011 Income($) $600,000 $532,373 $400,000 $339,634 $300,000 $216,059 $200,000 $135,082 $0 ..... T-Blirdls anidl Other Eamilly Graduation anid Concerts Busmess/Trade Sporting Events Entertainment Ctivlc Event Type Source: ShoWare Center, 2012. Kent SboVare Center November 2012 Page 90 Economic Impacts Exhibit 12 illustrates overall concessions sold segmented into event categories. The largest share of concessions income is derived from Thunderbirds and Other Sporting Events, reflecting the frequency of these events at ShoWare Center. Concerts were the second largest producer of concession income in 2011. Exhibit 12. Concessions Income by Event Type, ShoWare Center, 2011 Food and Food and Beverage Beverage Novelty Sales Total Ancillary Event Category Concessions Catering Income Income Income T-Birds and Sporting Events $ 360,024 $ 47,065 $ 5,769 $ 412,859 Family Entertainment $ 59,873 $ (3,819) $ 8,060 $ 64,114 Graduation and Civic $ 29,147 $ 6,201 $ 100 $ 35,448 Concerts $ 93,245 $ 26,960 $ 10,537 $ 130,743 Business/Trade $ 13,896 $ 95,286 $ - $ 109,182 Total $ 556,186 $ 171,693 $ 24,466 $ 752,345 Source: ShoWare Center, 2012. Exhibit 13 uses the some segmentation to present operating income at ShoWare. In 2011 Thunderbirds and Other Sporting Events were responsible for the largest share of net operating income. Rental Revenues and Facility Fees were the largest proportion of revenues for Thunderbirds and Sporting Events ($428,239) with Total Ancillary Income ($412,859) making up a substantial share as well. Gross ticket sales totaled $2.5 million in 2011, most of which goes to event producers; ShoWare's share of ticket sales is included in Ticket Rebates. Box Sales and Ticket Rebates totaled $211,895 in 2011. Exhibit 13. Direct Event Income Detail by Event Type, ShoWare Center 2011 Box Sales and Rental Revenues Billable Total Ancillary Service Net Event Category Ticket Rebates and Facility Fees Services Income Expenses Operating T-Birds and Sporting Events $ 24,512 $ 428,239 $ 82,685 $ 412,859 $ (415,928) $ 532,366 Family Entertainment $ 59,904 $ 280,565 $ 9,679 $ 64,114 $ (198,202) $ 216,060 Graduation and Civic $ (605) $ 98,355 $ 2,841 $ 35,448 $ (63,266) $ 72,773 Concerts $ 127,984 $ 213,318 $ 5,676 $ 130,743 $ (138,088) $ 339,633 Business/Trade $ 101 $ 72,588 $ 4,443 $ 109,182 $ (51,233) $ 135,081 Total $ 211,895 $ 1,093,065 $ 105,324 $ 752,345 $ (866,717) $ 1,295,912 Source: ShoWare Center, 2012. Kent SboVare Center November 2012 Page 11 Economic Impacts Patron Origin and Draw The following section provides a geographic analysis of where ShoWare Center patrons draw. Patron origins are based on data collected by ShoWare Center with supplemental analysis by Community Attributes. Exhibit 14 illustrates the origins of 2011 patrons attending concerts, family events and several miscellaneous sporting events (not including Thunderbirds games). A large portion of patrons live in the Kent/Renton/Covington area (20%) while another large portion (21%) live in south King County and North Pierce County including Federal Way, Bonney Lake, Auburn and Sumner. Concentrations also exist in Tacoma (11%), Seattle south of the Montlake Cut (11%), the Bellevue/Redmond Area (8%) and North Seattle to Mukilteo (5%). There is also a noticeable concentration of patrons with residences in the Olympia/Lacey area. Exhibit 15 on the following page illustrates the origins of 2011 Thunderbirds season ticketholders. The map depicts season ticket holder by zip code, with the largest share of season ticket holder located within Kent. Other areas with relative concentrations of season ticket holder include South King County as a whole as well as Redmond and Lacey. Kent SbolEare Center November 2012 Page 92 Economic Impacts Exhibit 14. Non Thunderbirds Patron Residences, ShoWare Center, 2011 � � � ✓ �" � �M le 6rantke Falls ary�vil ll Eve rett d� it y 5nahamish= a rrI `� Mululteo� /� r ii M It 4{ ill Creek i t � F Edmo14 U"", i t � J� i� � i✓���7 '.4 tl ���Woadville r � agmbre � � ��Poulsbo � � � f��Bothell��"`✓ � ��� f A/" ✓, I "✓ r flr` Kirkla�drr Re,, f / i S u ✓'MW91 i W if `� �i i s 1 l✓I�i rr,Q r/� I r ll ( rn "✓ Bellevue I Sarrimemi h \ � f "gi`111Y7o �h alp IBramerYon�.J,f rr � ✓ r� f a"+„ ,✓+ fi J �< q r��/�a`= \ ?! ✓ Jr ✓� '✓ 5noquel mie Poft'CJ�rshmrd ' � �„ 1 ✓' b I L _✓,. � H ' �s\ n' a pya B naoir(ruk (a Rlo�WOoF� 4',`�pz } lL7if r'M i, q a��See7 �20% d ` lj o r�la A-- �f"*�,, Y' itlf ShoWare r,., 1 ,,, 1✓✓/ �d�'fpi % �sih, Mep>leY alley 0ilr�. Cawm9 on r, Y ,Gi F�acbor Fatler ®ir ✓ ✓i 9 d rjr✓ L/l✓) ��d 1iQ G arNy Y✓4 . "x li rBlack Diamond �i�N M ly �/� i ✓ lr rr v, �Fr y`Au6urn h 2 / G rp s y VG IIY ✓Y``� �„" i 1 WViTecS ame " � �i ilt �1 r, F�tV 1p/ ' f //�1" F /tI 9p �21/, Enumd. i ✓u� r i) 7 mner o 1 Or Guyallup / ✓ l�y i rIr ketveod lj � (�� �` Bonne Leke � , A' rm a ' r ✓'� City Boundaries r r' ' yi Kent Boundaries I` � ✓f.1° r� fob i i �i "' 2011 ShoWare Patrons MPI 0 ShoWare Patrons ( ` , ptr�iutirtr¢ k t 0` 10 20 Mile, Soume:ShoV&I,Oenl¢r /� Commun ty Atlrbutas Ina,2D"2 Kent SboVare Center November 2012 Page 93 Economic Impacts Exhibit 16. Thunderbirds Season Ticket Holder Residence by Zip Code, ShoWare Center, 2011 l � - t, ��Merysvil le Gram><rs�Falls 1 1J � I Q .. Yj r t ` „� f Snohomish Monroe 1\ 1 MukiIttteo� It l si r �� Yvtdl Creek I( {tl I! V l i f4 / I 'd / h� odvdle 9�hor hi neY Ken t oro� m , „ s o 1� r /Poolsbo �� eothEll �Kirklan d�ReJdnd� ."/ 9ee4tle Sammatnish r r" p Bremerkon)��f �,�� ( nr M °Vi �� i f( '` !' ✓��� f J ',r 1 Seatt e ' aueh,s/Iasa ,L, �� .. � u 1\ s/s�'. �r ��✓ /vi 5noqu ,mie , � 1�- i Gig Ha<e� 't r l ✓9/////% @T/��rr ���`// ����r� 4 ���i��y ;n/�/1 1111// rj ✓'// //� ///�r�////,auburn�' �� i%l/ s�� l�/1%/7 r /� �(,� 116E ✓i �y ���1� /�� //{(//%f���� �� / /���%/r���� r„ ) J Taco�a ,- r Au bumr � � � Cit Bourdarieq m ii �fi / / / s Kent Baundaries el ✓//%/� r� annne rake e / Percentage of ThunderbHd t1 > keweed r � / 9 r r�, ri%� �r - —�JO%�/y%�`�? ��j/r Season Ticket Holders,2011 ii Less an 0.597 / f s )j 4 !� 0.5%-1.0% I Y AI Ympi_nf R , Lscey `Z UIIIIIIIIIIIIIIIIIII 9.097 , // �. �. � i / Yrailuurlliirity^ P;! 0 10 20 Mlles Souroe snowerec oral Yehn`' GnmmunWAtVlbuCeS no.2012 Kent SbolEare Center November 2012 Page 94 Economic Impacts Exhibit 16 illustrates home residences for all ShoWare Center patrons from 2009 to 2011. During the three years analyzed the most common areas of residence were South King County and Tacoma/Pierce County. The proportion of patrons from Kent has steadily declined from a high of 19% in 2009 to a 12% in 2011. The proportion of patrons from Seattle in 2011 was 13%, similar to that of Kent. The share ofTacoma/Pierce County patrons has increased steadily from 2009 to 2011, from 16% to 25%. Exhibit 16. Distribution of Patron Residences, ShoWare Center, 2009-2011 100E 90% 80% 70% 60% 16% 25% S0110,11 Iltllu'n00azn.uuft;y,r 22% 50% 9% 13% 40% 8% 30% Kent II astsiulc ,4%, ". 10% s% 4% nllwuniell t oaril ,.3%, 2009 2010 2011 Source: ShoWare Center, 2012. Kent SboVare Center November 2092 Page 95 Economic Impacts EMAIL AND INTERCEPT SURVEY RESULTS Alison Peters Consulting, in conjunction with Community Attributes, conducted two intercept surveys during the summer of 2012. In addition, two email surveys were distributed to ShoWare Center patrons: one to 2012 Thunderbirds Hockey season ticket holders and one sent to all other 2012 ShoWare Center patrons. In all, four surveys contributed to this analysis, described as follows: • Email All survey distributed to all non-Thunderbirds 2012 ShoWare Center patrons • Email Thunderbirds survey distributed to 2012 Thunderbirds season ticketholders • Graduation Intercept survey conducted at 2012 Kentridge High School graduation • New Edition Intercept survey conducted at 2012 New Edition concert Quantitative questions focused on spending patterns within the City of Kent and outside of ShoWare Center. Four separate surveys were conducted in order to ascertain data on the broad spectrum of ShoWare Center patrons. The following sections show the quantitative results related to spending for each individual survey. Kent SbolEare Center November 2012 Page 16 Economic Impacts Intercept Results In order to capture a representative demographic of ShoWare Center attendees the intercept surveys were conducted at two different types of events: the Kentridge High School Graduation and the New Edition Concert. The following presents the quantitative results of the intercept surveys. Exhibit 17 shows the two intercept survey methods and number of survey participants. Exhibit 17. Intercept Surveys, ShoWare Center, 2012 Survey Method Total Responses Graduation In person survey at Kentridge 167 Intercept Survey High school graduation Concert Intercept In person survey at New 171 Survey Edition Concert Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Kentridge Graduation One intercept survey was conducted at the Kentridge High School Graduation in June 2012. Overall attendance at Graduation events totaled 36,905 patrons in 2011 spread over eight Graduation events (Exhibit 18). The Kentridge Graduation was attended by approximately 4,100 people and started at 7pm. Exhibit 18. Graduation Event Attendance, 2011 Event Attendance Events Avg Attendance Graduation 36,904 8 4,613 Source: ShoWare Center, 2012. Exhibit 19 summarizes spending results from the Graduation Intercept Survey. Dining before or after the event was found to be fairly common among patrons with more patrons (36%) spending money on dining after the event than before (20%). Shopping, lodging and miscellaneous spending were found to be less common. 10% of patrons stated they shopped before or after the event while the percentages of those spending money on lodging (4%) and miscellaneous items (5%) was even lower. Kent SbolEare Center November 2012 Page 97 Economic Impacts Exhibit 19. Graduation Intercept Survey Spending Results, ShoWare Center, 2012 r Dining Before A „ DiningAfter 2 Shopping $2 p to y10 � 64% 0 V to$1(p $2 C to$''YCQ $31 to$5,0 5� $,31 to$50 More than$SO 80% [Vlore than$1.00 More than$1..00 90% 1 2 Lodgimg 251 1"!o Miscellaneous 105's th& in ➢.CPO . . More than $:1100 to 4fl 1 P`n'hw 96% 95% More tharr$100 Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Exhibit 20 summarizes the percentage of patrons that spent money on dining, shopping, lodging or miscellaneous items as well as the average amount spent. On average, those that did spend money on dining spent a total of$35.38 before and/or $43.24 after (referred to in the table as "Avg., Those Spending". Shopping was less common with those that did spend money spent$28.18 on average. The Average All Patrons column illustrates per patron spending by graduation attendees and includes those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts described later in the report. Kent SboVare Center November 2012 Page 98 Economic Impacts Exhibit 20. Spending Averages, Graduation Intercept Survey, 2012 Spending Percentage Avg,Those Avg All Category Spending Spending Patrons Dining Before 20% $35.38 $6.99 After 36% $43.24 $15.46 Combined 28% $78.62 $22.45 Shopping 100/0 $28.18 $2.85 Lodging 4% $59.88 $2.22 Miscellaneous 5% $36.30 $1.82 Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 99 Economic Impacts New Edition Concert An intercept survey was conducted at the New Edition concert held at ShoWare Center on June 22, 2012. Concert events in 2011 attracted a total of 34,080 patrons spread over 12 concert events (Exhibit 21). The New Edition Concert drew 2,996 patrons to ShoWare Center and started at 9pm. Exhibit 21. Concert Event Attendance, 2011 Event Attendance Events Avg Attendance Concert 34,080 12 2,840 Source: ShoWare Center, 2012. Exhibit 22 summarizes spending results from the New Edition Intercept Survey. The proportion of those surveyed dining before or after the concert was similar to the proportion of graduation diners. Among the concert survey participants 34% responded that they dined before the event and 33% responded that they dined after. Similarly to the graduation survey respondents, shopping, lodging and miscellaneous spending were found to be less common. Six percent of patrons stated they shopped before or after the event while 1% stated they spent money on lodging. A slightly higher percentage spent money on miscellaneous items (13%). Exhibit 22. Concert Intercept Survey Spending Results, ShoWare Center, 2012 Dining Before Dining After 1 Shopping 66% ;a51.to;n5q 67% $37 to$50 More than $50 ,. lore thane$.100 Mora..than$.q0 94% .5% 5% 3 Lodgiing (Miscellaneous 4/ ass ilrarr$100 More than$:1..00 $3 o450 990/1 87% More than$1g0 Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 20 Economic Impacts Exhibit 23 illustrates the percentage of New Edition concert patrons that spent money outside of ShoWare Center within Kent along with the average amount that they spent. On average, those that did spend money on dining spent a total of$35.10 before and/or $42.88 after. Spending associated with shopping was less common but those that did spent$38.62 on average. The Average All Patrons column also illustrates per patron spending by Concert attendees and includes those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts described later in the report. Exhibit 23. Concert Survey, Spending Summary Table, 2012 Percentage Avg,Those Avg All Spending Spending Spending Patrons Dining Before 34% $35.10 $11.77 After 33% $42.88 $14.12 Combined 33% $77.98 $25.89 Shopping 6% $38.62 $2.23 Lodging 1% $59.88 $0.71 Miscellaneous 13% $36.71 $4.91 Source: Community Attributes Inc., 2012. Alison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 29 Economic Impacts Email Survey Results In coordination with ShoWare Center staff, Community Attributes distributed an email survey to all ShoWare Center patrons that attended events in 2012. A separate email survey was distributed to Seattle Thunderbirds season ticketholders during the some time period. The following subsections summarize the quantitative results from the email surveys. Exhibit 24 summarizes the two email survey types and number of survey participants. Exhibit 24. Email Surveys, ShoWare Center, 2012 Survey Method Total Responses Email All Survey emailed to 2012 non- 318 Thunderbird ShoWare patrons Email Thunderbird Survey emailed to 2012 782 Thunderbird season ticket holders Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2012 Page 22 Economic Impacts Email Survey to 2012 Event Patrons (not including Thunderbirds patrons) Exhibit 25 summarizes spending results from the email survey distributed to all 2012 patrons not including Thunderbirds season ticket holders. The survey results in the dining category differed from the intercept survey results as dining out was more common among respondents. 78% of respondents stated they spent money on dining before events while 47% of respondents stated they spent money on dining after events. Spending on lodging and entertainment outside of ShoWare Center was found to be less frequent. Shopping outside of ShoWare Center was not calculated for this survey, but shopping for souvenirs at the event was found to be fairly common. Exhibit 26. Email All Survey Spending Results, ShoWare Center, 2012 Dining Out Before ifs 22% Dining Out After $2 h to „30 ' ➢ to 030 $31to$50 53% $31to$50 More than$IN) More than$100 15% 2% % Entertainment Before 3% Entertainment After a'i."1 V ter $r 'o $ tl to $"'✓o More than$50 Move than$50 94% 91% 1 % Lodging 35% Souvenirs II ess thall €0 More than$:I..00 $2 tl to;e`iro Wore than$50 14%.. 96% 4 Source: Community Attributes Inc., 2012. Kent SboVare Center November 2012 Page 23 Economic Impacts Exhibit 26 illustrates the percentage of those Email All survey participants that spent money outside of ShoWare Center and within Kent. Also provided is the average amount spent of those that did spend money outside of ShoWare Center. Of those that did spend money on dining, the average spent before an event was $26.45 and the average spent after was $24.45. The exhibit illustrates per patron spending by Email All survey respondents including those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts described later in the report. Exhibit 26. Email All Survey, Spending Summary Table, 2012 Spending Percentage Avg,Those Avg All Category Spending Spending Patrons Dining Before 78% $26.45 $20.72 After 47% $24.45 $11.57 Combined 63% $50.90 $32.29 Shopping NA NA NA Lodging 4% $93.11 $3.34 Entertainment Before 6% $26.46 $1.64 After 9% $35.12 $3.06 Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2012 Page 24 Economic Impacts Email Survey to 2012 Thunderbirds Season Ticketholders Exhibit 27 summarizes spending results from the email survey distributed to all 2012 Thunderbirds season ticketholders. Dining out was common among respondents with 85% stating they spent money on dining before and 38% spending after. The noticeable difference between the Email All Survey and the Thunderbirds Email survey is the larger percentage of patrons dining before the game. Spending on lodging and entertainment outside of ShoWare Center was found to be low. Almost half(46%) of survey respondents stated that they spend money on souvenirs at the event. Exhibit 27. Thunderbirds Email Survey Spending Results, ShoWare Center, 2012 o Dining Out Before 8% % Diming Out After $2 P In$35 $2 P to$30 28% $31 to$50 62% 'i31 to$50 u 1s°e , More than$1.00 IMloie than$1.00 3 .3% 6% Entertainment Before Entertainment After IMore than $50 More than $50 95% 95% Lodging Souvenirs I1..ens Hum ",u:R.00 46% Move than$:1€0 ''�2:0.to$50 $dMore than $50 98% 23% Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2012 Page 25 Economic Impacts Exhibit 28 illustrates the percentage of Thunderbirds email survey patrons that spent money outside of ShoWare Center within Kent along with spending averages. Average spending among those that did spend money on dining was $26.26 before the event and $22.03 after. The Average All Patrons column illustrates per patron spending by Thunderbirds email survey respondents including those that spent nothing. Average spending amounts from the exhibit were utilized in calculating total spending by event type. Exhibit 28. Thunderbirds Email Survey, Spending Summary Table, 2012 Spending Percentage Avg,Those Avg All Category Spending Spending Patrons Dining Before 85% $26.26 $22.42 After 38% $22.03 $8.36 Combined 62% $48.28 $30.78 Shopping NA NA NA Lodging 2% $54.77 $1.34 Entertainment Before 5% $19.30 $0.87 After 5% $19.95 $0.93 Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2012 Page 26 Economic Impacts IMPACT ANALYSIS The following section provides a detailed analysis of the economic impacts ShoWare Center has on both City of Kent's economy and the direct fiscal impacts it has on the City of Kent s revenues. Exhibit 29 maps ShoWare Center's impact and depicts revenue sources and impacts. Exhibit 29. ShoWare Center Impacts ShoWare / r,Jm) l1ll/Jill �����1�/l�r� rrr��p1011�»Illlllll�l�llllll ffffff��lll llii � « Food & Beverages Retail i Lodging Parking A dthissions Tax Lodging Trx; 'Restauran�tffiar lax 8&o Tax Parking Tex Safer Trx Fuel Tax. Property Tax,,, tJtiitty 'fax Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2092 Page 27 Economic Impacts Visitor Spending Visitor spending estimates and overall impacts are based on survey data collected during the summer of 2012 (see Email and Intercept Survey Quantitative Results section). Impacts are also based on attendance and revenue data provided by ShoWare Center. Both sources provided the foundation for estimating direct and indirect financial impact generated by ShoWare Center. Financial impacts include direct and induced fiscal impacts for the City of Kent. Exhibit 30 illustrates the average per patron spending used to calculate spending outside ShoWare Center (spending directly related to ShoWare Center events). Events are segmented into five categories based on the attendance data shown earlier in the report. Exhibit 31 illustrates the number of responses given by survey respondents organized by each survey type completed. Exhibit 30. Patron Average Spending by Event Type Outside ShoWare Center, 2011 Event Category Dining Shopping Lodging Entertainment Total T-Birds and Other Sporting Events/1 $30.78 $2.54 $1.34 $1.80 $36.46 Family Entertainment/2 $32.29 $2.85 $3.34 $4.71 $43.19 Graduation and Civic $22.45 $2.85 $2.22 $1.82 $29.34 Concerts $24.20 $2.23 $0.71 $4.91 $32.06 Business/Trade/3 $32.29 $2.54 $3.34 $4.71 $42.88 Weighted Average $29.25 $2.60 $1.60 $3.08 $36.63 Notes: 1 Assumes spending at T-Birds games is same at other sporting events 2 Utilizes same per patron s pend i n g va I u es as Graduation and Civic Events 3 Uti I i zes All Events Email Survey averages Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Exhibit 31. Survey Responses by Survey Type and Spending Category, ShoWare Center, 2011 Spending Category Survey Type Intercept Email Graduation Concert Merged AIIEvents T-Birds Dining 167 173 340 291 689 Shopping 168 173 341 291 725 Lodging 162 168 330 279 694 Entertainment/Miscellaneous 160 172 NA 275 689 Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Kent SboVare Center November 2012 Page 28 Economic Impacts ShoWare Center attendance in 2011 was used to calculate spending by patrons outside of ShoWare Center. The averages calculated for each event type and spending type were multiplied by the attendance numbers shown in Exhibit 32. Exhibit 32. Patron Attendance by Event Category, ShoWare Center, 2011 Patrons per Event Category Patrons Events Event Percentage T-Birds and Other Sporting Events 164,087 60 2,735 50% Family Entertainment 62,438 5 12,488 19% Graduation and Civic 49,331 12 4,111 15% Concerts 34,080 12 2,840 100/0 Business/Trade 21,419 49 437 6% Total 331,355 138 2,401 100% Source: ShoWare Center, 2012. Exhibit 33 illustrates total patron spending outside ShoWare Center in 2011 segmented into event types and spending types. Total patron spending is based on the averages shown in Exhibit 30 as well as overall attendance calculated for each event type provided in Exhibit 32. Thunderbirds and Other Sporting Events result in the largest amount of spending outside ShoWare Center, totaling an estimated $5,982,684 in 2011. Total spending from all events is estimated at $12,137,440 in 2011. Exhibit 33. Total Patron Spending Outside ShoWare Center, 2011 Event Category Dining Shopping Lodging Entertainment Total T-Birdsand OtherSporting Events $5,050,643 $416,362 $220,155 $295,523 $5,982,684 Family Entertainment $2,016,364 $178,038 $208,381 $293,869 $2,696,653 Graduation and Civic $1,107,579 $140,664 $109,406 $89,542 $1,447,191 Concerts $824,896 $76,085 $24,294 $167,291 $1,092,567 Business/Trade $691,702 $54,350 $71,484 $100,810 $918,346 Total $9,691,185 $865,499 $633,720 $947,035 $12,137,440 Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Kent SboVare Center November 2012 Page 29 Economic Impacts Kent Fiscal Impacts Fiscal impacts associated with ShoWare Center are related to a variety of sources including spending at ShoWare Center, ticket sales and patron spending outside of ShoWare Center and within Kent. Impacts from the following spending types were calculated for ShoWare Center. • Sales tax revenues —patron spending times sales tax rate • Hotel/motel tax revenues • Restaurant and bar taxes • Ticket sales (admissions tax) Exhibit 34 illustrates the sales tax rate and distribution for the City of Kent. The tax is collected for sales on food, beverages and souvenirs for purchases made within ShoWare Center and sales made at surrounding shops and restaurants in Kent. Exhibit 35 illustrates other applicable tax rates which consist of a hotel/motel tax, a Lodging/Convention Center tax and an admission tax. Exhibit 34. Sales Tax Rate and Distribution, City of Kent, 2011 9.5% Rate Structure Distribution Percent State 6.50% 68.4% RTA 0.90% 9.5% Criminal Justice 0.10% 1.1% Metro 0.80% 8.4% City of Kent 0.85% 8 9% King County 0.35% 3.7% Total 9.50% 100.0% Sales Tax Distribution of.05%Stadium Tax State 100.0% Source: City of Kent, Washington Office of Financial Management, 2012. Exhibit 36. Other Tax Rates, City of Kent, 2011 Tax Rate Special Hotel/Motel Tax 1.00/0 Lodging/Convention Center Tax 2.8% Source: City of Kent, Washington Office of Financial Management, 2012. Kent SbolEare Center November 2012 Page 30 Economic Impacts Estimates of statewide and City of Kent fiscal impacts are based on the aforementioned tax rates in addition to the average spending rates by spending type and event type. Exhibit 36 illustrates the statewide fiscal impact of patron spending outside of ShoWare Center. Exhibit 37 illustrates the City of Kent s share of those fiscal impacts. Total statewide impacts of patron spending outside ShoWare Center in 2011 are estimated at $1,177,138. Fiscal impacts for the City of Kent are estimated at$127,250 in 2011. Exhibit 36. Estimated Statewide Fiscal Revenues (includes Local, County and State), Patron Spending Outside ShoWare Center, 2011 Event Category Dining Shopping Lodging Entertainment Total T-Birds and OtherSporting Events $479,811 $39,554 $29,281 $28,075 $576,721 Family Entertainment $191,555 $16,914 $27,715 $27,918 $264,100 Graduation and Civic $105,220 $13,363 $14,551 $8,506 $141,641 Concerts $78,365 $7,228 $3,231 $15,893 $104,717 Business/Trade $65,712 $5,163 $9,507 $9,577 $89,959 Total $920,663 $82,222 $84,285 $89,968 $1,177,138 Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Exhibit 37. City of Kent Fiscal Revenues, Patron Spending Outside ShoWare Center, 2011 Dining Shopping Lodging Entertainment Total T-Birds and Other Sporting Events $42,930 $3,539 $10,237 $2,512 $59,219 Family Entertainment $17,139 $1,513 $9,690 $2,498 $30,840 Graduation and Civic $9,414 $1,196 $5,087 $761 $16,459 Concerts $7,012 $647 $1,130 $1,422 $10,210 Business/Trade $5,879 $462 $3,324 $857 $10,522 Total $82,375 $7,357 $29,468 $8,050 $127,250 Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 39 Economic Impacts In addition to spending outside of ShoWare Center by patrons, SMG, which operates ShoWare Center, collects sales and Admissions taxes on sales inside ShoWare Center. Exhibit 38 shows the sales and admissions taxes collected by SMG from 2009 to 2011. Thunderbirds Hockey also collects admissions taxes which are described in the next section of the impact analysis. Exhibit 38. Sales and Admissions Taxes Paid, ShoWare Center, 2009 - 2011 Tax 2009 2010 2011 Sales $175,128 $165,316 $184,535 Admissions $119,558 $105,954 $133,249 Source: ShoWare Center, 2012. Exhibit 39 summarizes Thunderbirds operations at ShoWare Center in 2011. Gross ticket sales totaled $2,520,000 including $126,000 collected in admissions tax in 2011. The Thunderbirds estimate total expenditures in the Kent to have been $930,000 in 2011 and payroll equaled $1,391,000 during the some year. Exhibit 39. Thunderbirds Revenues/Expenditures, City of Kent, 2011 Revenue/Expenditure Amount Gross Ticket Sales $2,394,000 Admission Tax Collected $126,000 Total $2,520,000 Payroll $1,391,000 Kent Area Expenditures/1 $930,000 Source: Seattle Thunderbirds Hockey, 2012. Kent SboVare Center November 2012 Page 32 Economic Impacts Direct, Indirect and Induced Benefits Exhibit 40 summarizes total revenues by revenue category, including ticket sales and rental revenues for SMG and the Thunderbirds, ShoWare Center concession sales and event related spending outside of ShoWare. Total fiscal benefits are calculated based on applicable tax rates provided by the state and City of Kent. In 2011 it is estimated that there was a total of$16,606,900 in direct revenues (or spending) associated with ShoWare Center. The total fiscal benefits, those accruing to the state, county and City of Kent, totaled $1,620,900. The City of Kent's share of the direct fiscal benefits was $403,000. Exhibit 40 includes the indirect and induced multiplier output based on the Implan Input/Output model (Exhibit 41). The multiplier used (1.68) is a weighted average of the segments shown. Total direct, indirect and induced spending in 2011 is estimated at$25,126,200 —assuming 75% of indirect and induced impacts are captured within Kent. The total fiscal impact of this spending is estimated at$2,452,400, including taxes gathered by other Washington State jurisdictions. Exhibit 40. Business Incomes and Fiscal Impact Analysis, ShoWare Center, 2011 Revenues Total Fiscal Benefits/1 Kent Fiscal Benefits SMG Ticket Sales and Revenues/2 $1,323,200 $133,200 $133,200 Thunderbirds Gross Ticket Sales $2,394,000 $126,000 $126,000 ShoWare Sales(concessions)/3 $752,300 $184,500 $16,500 Event related Spending Dining $9,691,200 $920,700 $82,400 Shopping $865,500 $82,200 $7,400 Lodging $633,700 $84,300 $29,500 Entertainment $947,000 $90,000 $8,000 Subtotal $12,137,400 $1,177,200 $127,300 Subtotal of ShoWare direct revenues $16,606,900 $1,620,900 $403,000 Indirect&Induced revenues/5 $8,519,300 $831,500 $206,700 Total Direct,Indirect,and Induced $25,126,200 $2,452,400 $609,700 Notes 1 Benefits to the State,County and City of Kent 2 Adjusted gross income less ancillary income 3 Includes taxable retail sales made at ShoWare Center 4 Based on Implan Input/ouput model,King County,2010. 5 Assumed that 7591 of Indirect and induced revenues are captured in Kent Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 33 Economic Impacts Exhibit 41. Indirect and Induced Multipliers by Impact Segment, Implan Model, 2012 Industry Output Code Industry Description Output Assigned Multiplier 327 Retail Stores-Clothing and clothing accessories Shopping 1.73 328 Retail Stores-Sporting goods, hobby, book and music Shopping 1.66 329 Retail Stores-General merchandise Shopping 1.58 402 Performing arts companies ShoWare 1.85 403 Spectator sports companies ShoWare 1.69 409 Amusement parks, arcades, and gambling industries Entertainment 1.60 410 Other amusement and recreation industries Entertainment 1.60 411 Hotels and motels, including casino hotels Lodging 1.62 413 Food services and drinking places Dining 1.62 Regional Multiplier 1.68 Source: MIG Inc., 2010. Exhibit 42 details the fiscal impacts associated with ShoWare Center for the City of Kent and provides a combined total for direct and indirect fiscal benefits for 2011. In 2011, total fiscal benefits generated by ShoWare Center for the City of Kent are estimated at$609,700. The fiscal impact estimates include taxes collected by the City from ShoWare Center and Thunderbirds Hockey (sales tax and admissions tax at ShoWare Center), taxes collected from event related spending outside of ShoWare Center and indirect/induced impacts based on the previously described multiplier calculation (Exhibit 40). Exhibit 42. City of Kent Fiscal Impact Summary, ShoWare Center, 2011 Direct Benefits Admissions tax $259,200 Sales tax from sales at ShoWare $16,500 ShoWare Sales Impacts $275,700 Other Patron Spending Impacts $127,300 Total Direct Benefits $403,000 Indirect and Induced Benefits $206,700 Total Kent Fiscal Benefits $609,700 Source: Community Attributes Inc., 2012, Allison Peters Consulting, 2012. Kent SboVare Center November 2012 Page 34 Economic Impacts STAKEHOLDER INTERVIEWS This section of the report synthesizes the perspective of stakeholders interviewed during the summer of 2012. Perspectives on the impacts of ShoWare Center to surrounding businesses and the City of Kent in general provide qualitative feedback and enrich the understanding of how ShoWare Center functions within the economy of Kent. Appendix B provides a detailed compilation of the stakeholder comments summarized in this section. Impacts to Local Businesses Restaurants in particular report increased revenues. Restaurants located near ShoWare Center report that events directly increase their revenues, in terms of both total number of customers and per-person spending. Not all events have the some impact, and it was widely reported that these benefits are more pronounced for sporting events, and are more likely before, rather than after an event. "On concerts and sports events we will see uj wards of 50 and 75% increase." Non-retail businesses use ShoWare Center events for business development and employee appreciation. Many companies, especially Thunderbirds sponsors, report that they frequently give tickets away to existing or potential clients. Business owners report that this benefit helps drive sales and is a regular feature of their sales plans. Businesses also report using tickets to ShoWare events for employee appreciation and fringe benefits, noting that younger employees especially enjoy this perk. "Ve give away the tickets and our employees use them. That is good for business." Increased visibility for business located near ShoWare Center. ShoWare Center events result in increased visibility of all businesses in the surrounding area. Stakeholders generally feel that patrons attending events are exposed to their businesses in general, and that ShoWare Center events serve as an important soft marketing tool. `More traffic downtown is good for exposure. This means people seeing my signs I have at my downtown office. The foot and vehicle trafficprovidesgood exposure." Businesses have positive associations with ShoWare Center. Many business interviewed do not measure sales and revenues in a way that can attribute boosts to ShoWare Center. However, stakeholders report general positive association with ShoWare Center. They attribute increases in profits to ShoWare events and in general assign positive attributes to proximity to the venue. Kent SbolEare Center November 2012 Page 35 Economic Impacts "I'm not sure svbat the revenue impacts have been for our business, but overall it bas been a positim experience for our business." Challenges and Opportunities Parking is an issue for surrounding businesses. The impacts of parking on surrounding businesses in not always perceived positively. Some feedback stated that ShoWare Center patrons will come and dine at a restaurant before and event and walk to the facility from the restaurant, leaving their cars behind and making it difficult for customers later in the evening to find parking spots. Police assistance to manage parking was requested. "Events destroy parking, Parking is a limited premium as is, and people attending SbolEare Center come in for a beer or an aj peti.�er and then tbey leave their car and prevent other customers." Event related traffic can be problematic. Traffic, especially traffic going east and west, can become clogged on big event days. Stakeholders report this less as a severe negative impact on their business and rather as a minor inconvenience. `Having big events one after anotber caused beavier traffic in the area. But this didn't really impact us beavily. It was minimal" There is untapped potential for cross-collaboration with local businesses. Many businesses said they do not partner or sponsor with ShoWare Center in any way, but expressed interest in learning new ways to cross-collaborate. There is a desire to see collaboration and marketing of the entire area as a whole. "°Toying to find a way to promote SbolEare Center and Downtown Kent is a top priority. There is just a wonderful product and we just need to figure out bow to promote it." Relationship to Kent and Place Making ShoWare Center compliments its neighbors well, especially Kent Station, and serves as an anchor institution. Stakeholders, both representatives of business in Kent Station and outside the general area agree that ShoWare Center serves as an anchor institution to its area and is helping to drive economic development. The events drive people into the area to shop, dine and seek professional services. The retail opportunities in Kent Station provide a full experience for event attendees. One stakeholder who works in real estate development credited ShoWare Center as being a major factor in a recent land deal. Kent SbolEare Center November 2012 Page 36 Economic Impacts "As Kent keeps getting nicer, our employees and customers want to do tbings in Kent. It's nice. Our ability to move in that area is improved the nicer it is and more reasons we have to go down there." Stakeholders feel generally aware of events at ShoWare Center. Stakeholders are generally aware of the type and frequency of events at ShoWare Center, reflecting that marketing and event promotion efforts are effective. Some stakeholders, however, feel that a holistic tourism and marketing program is necessary to promoting Kent as a destination. "If we're evergoing logo to the next level we have to actually promote it. Tourism can grow tbrougb an actual marketing program, that's where we are right now." The Thunderbirds are vital to the success of ShoWare Center and a major benefit to surrounding businesses. The Thunderbirds are perceived to be the anchor tenants of the ShoWare Center. Restaurants and retail respect and understand the positive impacts this relationship has for them, and desire to maintain the Thunderbirds as a continual local draw and opportunity for business development through the use of sponsor tickets. `°Thunderbirdsgamesprovide the mostpositim impact." Stakeholders find the facility clean and well-maintained. Stakeholders compliment the facility for its design, maintenance and describe attending events there as a pleasurable experience. These sentiments echo findings from patron surveys. It is also noted as being particularly well located for access to the Highways, and for transit. `It's an awesome and great facility. I am a big advocate. It's nice to bave a local facility like this so we don't bave to go to Tacoma or Seattle. It's clean and nice." Kent SboVare Center November 2012 Page 37 Economic Impacts APPENDIX A. PATRON FEEDBACK FOR SHOWARE EXPERIENCE The following section provides a synopsis of qualitative information gathered from the four surveys during the summer of 2012. Intercept Surveys Exhibit 43 shows the origins of Intercept Survey participants. Nearly 70 percent of graduation attendees live within the city limits (43%) or within 10 miles of Kent (26%). The New Edition concert drew from a noticeably different geography in that they arrived from outside the immediate area (60% said they were not from Kent or within 10 miles). (Alison Peters Consulting Intercept Survey Report, 2012). Exhibit 43. Attendee Origin, Intercept Surveys, 2012 70% 60% 60% 50% 43% 40% 32% 30% 30% 26n%a- - l� �i - / Residence / Live 199 Kent 10% 0% �� j 9ra :, , Live II arthef Away 0% Kentridge Graduation New Edition Concert Source: Alison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 38 Economic Impacts Exhibit 44 illustrates satisfaction levels of Intercept Survey participants. Satisfaction with ShoWare Center is very high among both graduation attendees (81%very satisfied) and concertgoers (76% very satisfied). Satisfaction increases among local Kent residents (85% for residents of Kent). Dissatisfied patrons represented a small percentage of patrons surveyed (4%). Exhibit 44. Attendee Satisfaction, Intercept Surveys, 2012 Surrounding Out of Level of Satisfaction Total City of Kent Areas Town Graduation Concert Very satisfied 789/ 85% 80% 73% 81% 769/ Somewhat satisfied 17% 13% 149/ 22% 13% 21% Somewhat dissatisfied 2% 2% 3% 2% 4% 1% Very dissatisfied 2% 0% 2% 3% 2% 2% Source: Alison Peters Consulting, 2012. Exhibit 45 illustrates ShoWare Center attributes mentioned by attendees surveyed. There was a strong degree of consensus from attendees at both events around the top two answers provided overall: Location is convenient (mentioned by 36% overall) and Clean/New (mentioned by 34% overall). Exhibit 46. Best ShoWare Center Attributes, Intercept Surveys, 2012 ShoWare Attribute Overall Graduation Concert Location is convenient 36% 39% 33% Clean, new 34% 30% 38% Parking is convenient, free 32% 25% 38% General venue is good 25% 13% 36% Good views from all seats 19% 14% 23% Seating,aisles are comfortable 15% 13% 16% Friendly staff 9% 1% 16% Concessions 8% 0% 14% Restrooms 7% 1% 12% Sound system 5% 0% 100/0 Venue is built green 4% 0% 7% Luxury boxes 3% 0% 5% Other 19% 28% 12% Source: Alison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 39 Economic Impacts Exhibit 46 illustrates desired event types by ShoWare Center patrons. The most desirable events mentioned by patrons were music events (62% of intercept survey respondents). Sports events (35%), family events (17%) and theater events (11%) were other event types mentioned. Exhibit 46. Desired Event Type, Intercept Survey, 2012 Event Type J/ Sports Events 62% Il,.mnlly I v,^iuts Source: Alison Peters Consulting, 2012. Exhibit 47 cross tabulates event preferences with several subgroups of intercept survey respondents. Of note is that a majority of every subgroup has a preference for more musical acts/concerts at ShoWare Center. Second, those who dined out prior to and during the concert were more likely to indicate an interest in sports events at ShoWare Center. They were also slightly less likely to indicate an interest in other concerts. The some demographic group (interested in sporting events specifically) is more likely to live in Kent. Finally, Kent residents were twice as likely to mention an interest in family-friendly shows at ShoWare Center (33%vs. 17% overall). Even residents within 10 miles did not see the convenience or value-add in having more family-friendly shows in Kent. (Alison Peters Consulting, 2012) Exhibit 47. Desired Event Type Cross Tabulation, Intercept Survey, 2012 Surrounding Out of Dined Out Purchased Dined Out Event Total Kent Areas Town Before Event Concessions After Event Musicevents 62% 67% 67% 59% 55% 54% 63% Sports events 35% 42% 30% 38% 50% 40% 34% Family events 17% 33% 15% 14% 20% 19% 19% Theater events 11% 8% 19% 9% 15% 15% 19% Source: Alison Peters Consulting, 2012. Kent SbolEare Center November 2012 Page 40 Economic Impacts Email Surveys The following section illustrates quantitative results from the email surveys sent to general 2012 patrons in addition to 2012 Thunderbirds season tickets holders. Exhibits 48 and 49 illustrate attendance frequency by those surveyed. The percentage of events attended is also provided for survey types. Thunderbirds season ticket holders were, expectedly, more frequent visitors of ShoWare Center than Email All survey respondents. 72% of Email All respondents reported attending events 1 to 2 times per year. Among events attended, Email All respondents frequented concerts and non-musical performances the most. Exhibit 48. ShoWare Center Attendance, Email All Survey, 2012 Responses 227 250 ---- ---- ---- ---- Events Attended 72%. 4' 15% Other sporting events 200 $6% Concert 150 — — — — Ctll'Idiultlion 100 54 17% 35 50 11% 0 1 1 0 1 1-2 times ayear 3-4 times ayear 5 or more times a year Times Per Year Source: Community Attributes Inc., 2012. Exhibit 49. ShoWare Center Attendance, Thunderbirds Email Survey, 2012 Responses 350 311 40% Events Attended 300 — 260 34% Other sporting events 250 _ 202 Concert 26% 200 67% 150 — _ Gunivklinit'fOr'n 100 50 0 1-2 times a year 3-4 times a year 5 or more ti mes a year Times Per Year Source: Community Attributes Inc., 2012. Kent SboVare Center November 2012 Page 41 Economic Impacts Exhibits 50 and 51 illustrate the frequency that both email survey respondent groups dine and shop when visiting ShoWare Center. Both survey groups indicated that dining was a much more likely activity than shopping. 53% of Email respondents and 57% of Thunderbirds respondents stated they dined Usually. Comparatively, 9% of Email respondents and 10% of Thunderbirds respondents stated they shopped Usually. Exhibit 60. ShoWare Center Dining and Shopping Frequency, Email All Survey, 2012 17% Dining Out Shopping Usually 29J Usually 39% 62% Source: Community Attributes Inc., 2012. Exhibit 61. ShoWare Center Dining and Shopping Frequency, Thunderbirds Email Survey, 2012 19%,. Dining Out Shopping Usually 28% Usually 24% 62% Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2012 Page 42 Economic Impacts Exhibits 52 and 53 illustrate the locations where both email survey groups spend money before or after attending an event at ShoWare Center. Kent Station was the predominant location mentioned. Among Email All survey respondents, 54% stated they spend money at Kent Station and among Thunder Email survey respondents 58% stated they spent money at Kent Station. Exhibit 62. Dining and Shopping Location, Email All Survey, 2012 Responses 182 200 54% 180 160 140 120 80 22% 60 36 3 11% 11% 40 8 2.0 2% 0 OEM Kent Station Historic East Hill West Hill Outside of Kent Downtown Kent Location Source: Community Attributes Inc., 2012. Exhibit 63. Dining and Shopping Location, Thunderbirds Email Survey, 2012 Responses 600 533 58% 5o0 400 300 163 200 115 86 18% 100 12% 9% 27 3% 0 Kent Station Historic East Hill West Hill Outside of Kent Downtown,Kent Location Source: Community Attributes Inc., 2012. Kent SbolEare Center November 2012 Page 43 Economic Impacts Exhibits 54 and 55 illustrate the responses provided by Email survey participants concerning amenities and experience. Patrons were asked what amenities they wished to see added to the City of Kent. Participants were given three options: public spaces, cultural arts or entertainment, each with a detailed description. Distribution among the categories was even among both surveys with entertainment being the most commonly selected for both. Patrons were also asked what would enhance the overall experience of events at ShoWare Center and in Kent. Enhance the Event was the most common answer for both survey types, with Enhance Nearby Restaurants and Enhance Nearby Amenities also mentioned frequently. Exhibit 64. Amenities and Experience, Email All Survey, 2012 Desired Amenities /,' Experience 40% public Spaces �� Enhance the event 8% 33% 22% Source: Community Attributes Inc., 2012. Exhibit 66. Amenities and Experience, Email All Survey, 2012 Desired Amenities AM5111111011111111110 Experience Enhance they event 46% 1k ptalrhe.5raems 4% 28% 31% Source: Community Attributes Inc., 2012. Kent SboVare Center November 2092 Page 44 Economic Impacts Exhibits 56 and 57 illustrate patron household income data for both email surveys. A greater percentage of Thunderbirds respondents have a household income $100,000 or more (40%). Email All respondents, representing a mix of event types, had a smaller percentage with household income greater than $100,000 (320/o), with a greater proportion of respondents in the $60,000 to $99,000 category or less than $60,000 category. Exhibit 66. Household Income, Email All Survey, 2012 Responses 140 1.2. 41% 120 97 100 so 32% 27% &0 60 40 2.0 0 <60k 60-99k 100k+ Household Income Source: Community Attributes Inc., 2012. Exhibit 67. Household Income, Thunderbirds Email Survey, 2012 Responses 350 290 271 40% 300 37°fo 250 167 200 23% 150 100 50 <60k 60-99k look+ Household Income Source: Community Attributes Inc., 2012. Kent SboVare Center November 2012 Page 45 Economic Impacts APPENDIX B. STAKEHOLDER INTERVIEWS Over the summer of 2012 Community Attributes interviewed a total of eighteen Kent based businesses. Community Attributes identified businesses believed to be impacted or directly associated with ShoWare Center events. Questions focused on overall impacts in addition to the following: • Goods and services offered • Dependence on ShoWare Center events • Revenues and expenses • Marketing efforts currently underway • Needs from the City of Kent Exhibit 58 provides a list of businesses interviewed along with their applicable industry and location. Exhibit 68. Businesses and Organizations Interviewed, City of Kent, 2012 Business Industry Location 1 Cave Man Kitchen Dine in and Take-Out 807 West Valley Highway 2 Red's Wine Bar Diningand Bar Kent Station 3 Ram Restaurant&Brewery Diningand Brewery Kent Station 4 Kent Bowl Entertainment 1234 Central Avenue North 5 Kent Valley Ice Center Entertainment 6015 South 240th 6 Thunderbirds Entertainment Kent Station 7 Holiday Inn Hotel (Thunderbird Sponsor) 2231884th Avenue South 8 Valley Bank Kent Chamber&Downtown Bank 1244th Avenue South 9 Tarragon Property Management Kent Station Property Manager Kent Station 10 Kent Valley Motel Motel 743 Central Avenue North 11 World Wide Distributors Retail Distributor 8211 South 194th 12 Gleason&Co. Real Estate 317 W Meeker St 13 Cal's ClassicAmerican Restaurant Kent Station 14 El No que No Restaurant Historic Downtown 15 Airways Brewing Company Restaurant and Brewery South 196th Street 16 Smith Brother's Farms Official Mi lk Supplier(Thunderbird Sponsor) 2744168th Avenue South 17 Lincoln Moving&Storage Official Moving Company(Thunderbird Sponsor) 8420 S.190th Street 18 Great American Casino Entertainment(Thunderbird Sponsor) 20500108th Ave.SE Source: Community Attributes Inc., 2012. Kent SboVare Center November 2012 Page 46 Economic Impacts INTERVIEW RESPONSES The following compilation of stakeholder feedback provides a detailed look at interview responses. Responses have been categorized by themes and have been edited for brevity and clarity. In order to provide context, certain responses include the stakeholder's industry type in parentheses. General Comments Supportive, Positive Statements In addition to quantitative impacts, stakeholders described qualitative impacts to their businesses and the area. Stakeholders described impacts on jobs, increased restaurant visits, community building and employee Strongly Supportive • Just the fact that bockey team is there is positim. 6Ve give away our tickets and the employees use them. That isgood for our business. • It creates jobs, obviously. Not the bigbestpaying jobs, but tbey'regood, regular income. • I've seen people lined out the doors of restaurants. • 6Ve love SboVare Center. A huge positim impact. • Thegraduation events were fun and mg busy, especially if it was sunny. (Restaurant) • Thunderbirds games are great family events and the people that attend are great people to be in front of. The demograpbics of the events are good. I'm not sure wbat the revenue impacts bane been on our business, but overall it bas been a positim experience for our business. (Sponsor) • I feel that it bas bad a great impact on Kent Station. • More traffic downtown is alwaysgood for exposure. This means people seeing my signs I bane at my downtown office. The more people the merrier. The foot and mbicle traffic providesgood exposure. (Real Estate) • It's definitely a positim overall. It'sgreat to bane a community connection. The community connection with SboVare Center is a positim. (Entertainment) Mixed Reaction • SboVare Center itself basn't affected me personally, but it stands to reason that it basn't Burt our business. • Rigbt before an event we get busy and then business slows and becomes normal. 6Veget busy after events as well. Because of our location on the other side of Higbway 167 we are less affected by the arena. • It's a good tbing. Enougb events do impact us (positively) making it a Positim for our business. • I don't see any overall impact on our business. Most of our clients are regulars, no one bas ever told we there are coming orgoing to a sbow. (Entertainment) • It's been positim and negative. It draws people from outside the area, or from the surrounding neigbborhoods. There is more traffic, more Potential first timeguests. It's Kent SboVare Center November 2012 Page 47 Economic Impacts bit or miss. Some crowds are more about getting food and drink before, some aren't. Families don't make a night of it like sports fans do. Sports fans (bockey and lingerie football are a better boon for us than families. (Restaurant) • I would cbaracteri.�e it as favorable. It brings people into the area. It supports the local population and I believe there's a trickle down affect,Particularly from the Thunderbirds games and their relationsbio with us. I believe more is always better. There is trickle down from any event at SbolVare Center. No Cbange on event nights in foot traffic or spending. (Entertainment) Concerns and Negative Statements Negative feedback was generally limited to parking and traffic. Several stakeholders found parking during events to be impactful on their business. In addition, traffic before and after events were also a concern. One stakeholder stated that family events brought parking issues but little positive impacts to their business. Another stakeholder mentioned way finding a visibility up as an issue. • Ladies nights at SbolVare Center bring in a different ope ofgroup, not always a positim thing. • The debt service on it is taking away about$3.5 million from the capital budget. A levy and sales tax increase for roads and parks. • The City promised police suj port for parking during events. There is police support on James. • 3,500 to 4,000 tickets sold is a toping point. More than that creates parking impacts and movie theatre suffers. Their customers turn back from jarkers. • East west traffic is a nigbtmare during events. • IVby do tbey bane to clock the left turn lane into the parking lot for events? • Events destroy parking. Parking is a limited premium as is, and people attending SbolVare Center come in for a beer or an ajjeti.�er and then tbey leave their car and prevent other customers. If its Disney on ice, we don'tget the positive impact from people coming out we justget the negative impact of parking. Family events bane a negative impact. Family events Burt our business. • Graduations, baying them one after another caused beavier traffic in the area. But this didn't really impact us beavily. It was minimal. • SbolVare Center definitely needs more parking • It is not very visible, and kind of bard to find (way finding issues. Restaurant and Entertainment Quantitative Impacts Financial impacts to those businesses interviewed varied depending on their location and type. Restaurants located nearby in Kent Station felt the greatest impact, and restaurants located within Kent but farther from ShoWare Center also experienced impacts. Non-restaurant businesses were less affected. For example, one restaurant interviewed cited a 20% increase in foot traffic on ShoWare Center event nights, while another cited an increase in spending of$14 per guest to $15.50 per guest. Kent SbolVare Center November 2012 Page 48 Economic Impacts • Guest check average on a normal day is S 14 perguest. On event days it goes up to $15.50.Any event at SbolVare Center affects us, unless it's a small event like luncbeon. On a Monday nigbt,for example, we experienced a bump of$2,000 in sales. On a Hockey nigbt, it can be considerably more.An extra 200 people can bring an extra $4,000 and$5,000. (Restaurant) • Kent Station is doing fine. Restaurants did really well. The theatre bas also done well.. The occupancy level never dipped below 93%. 6Ve're at 96% leased and 94% open for business. • The typical customer spends$35.00 per visit. This varies depending on wbat tbey want. I estimate that there is a 20% increase, sometimes more or less depending on the event. (Restaurant) • On average it'sprobably$100. There is no cbange on nigbts of events on our business. 6Ve don't have larger crowds or anytbing. This is due to the proximity of SboVare Center to our location. 6Ve are located on the other side of a bill from the arena. (Entertainment) • Depending on the side of tbegroup and the time of day, our typical customer spends S25430 per visit. Hockey and sports events draw more customers that spend less are likely "bar bopping"before the event. Concerts tend to bring in full dinners wbetber it's before or after the event. It depends on the event due to the fact that we're 21 and over only. For concerts, it depends on the type of crowd it draws. Sports events bring good crowds for us. Family events bring less foot traffic. (Restaurant) — Earlier in the week (Mon, Tue, 6Ved) we are slower so the impact is greater wben there are events (events that draw crowds for us) — On a Friday)Saturday nigbt(busy nigbts) we will see a 20% to 30% increase in people — On Tuesdays and 6Vednesdays (slower nigbts) we will see up to a 50% increase in people. • Average guest check is about S16. On concerts and sports events we will see upwards of 50 and 75% increase. (Restaurant) Non Retail Business Impacts Several non-retail businesses were interviewed. Impacts from these businesses were less pronounced and did not include direct financial gains. Generally, businesses of this type viewed ShoWare Center in a positive light. One stakeholder described how the ShoWare Center drastically improved networking opportunities for their business and how it directly impacted company. • The impact bas been that I have met people tbrougb it and it bas directly impacted we by providing opportunities for networking. — Deals have resulted directly from SbolVare Center. — Networking at SboVare Center bas been the most impactful to business. • Land deal I'm working on next to SboVare Center couldn't have been pulled off witbout SboVare Center Arena. It bad a direct impact on the deal. The properL3, wbicb is under contract, is a stone's tbrow from the arena. (Real Estate) Kent SboVare Center November 2012 Page 49 Economic Impacts • Our salesmen wben tbey have appointments, usually with people in the Soutb End, not necessarily Seattle Clients, but Federal IVay to Benton clients, tbey will take the tickets to an upcoming game to a customer. It begs them remember us and brings us business. That bas been an effective marketing tool IVe try to give them to customers we are wooing or as an appreciation. It's usually ouryounger clients. I tbink it is a good cbance that tbey baven't been to a game before so this is a game cbance to bring them to Kent. People like going to tbegame. You watch up and coming stars. It enbances salesman's cbances to makegood and meaningful contact with potential customers. (Sponsor) Hotel Impacts Community Attributes interviewed two local hotels. Impacts from events were noticeable at one of the hotels interviewed. Patron stays brought room nights, but the most noticeable impacts cited were from visiting performers and hockey teams that booked rooms during their stay. • The impacts are positive. IVe get a good amount of business from SbolVare Center. IVe get consistent business from ityear overyear. From September to May, wben we're slog, events bep us. Concerts have less of an impact because tbey draw more locally. IVe get leisure people for concerts, etc... IVe get business people for business events...and families for other types of events. • Financial impacts vary greatly by season. Our average room rate for the year is$90 to $92 a room. Our typical stay on average is 2 nigbts. Hockey doesn't result in much of a cbange in foot traffic. It's reallygoodyear overyear for us. • The following surmises overall impacts in 2019. — Toy Story cast: 238 room nigbts — Toy Storyproduction team: 149 room nigbts — Visiting bockey teams: 143 room nigbts — Thunder Birds: 242 room nigbts — 2011 total: 850 (including estimate on graduation and other Sbovare Center attributed pests) out of a total of 30,685 room nigbts. Tourism and Marketing Questions regarding complimentary facilities and attraction located in near ShoWare Center were asked. Kent Station and downtown were the most commonly mentioned facilities. In addition, stakeholders were asked about current marketing efforts and their effectiveness. Complimentary Facilities and Attractions • Most people want to park once and walk to where tbey're going to go. Downtown Kent. • Kent Station and the associated Sunday Farmer's Market. Kent SbolVare Center November 2012 Page 50 Economic Impacts • Notbing on the same scale as SboVare Center. The Courtbouse draws lots of people, wbo aren't necessarily in a spending mood. Itsgoodprofessional business spending. Some people are drawn to the downtown core. • I guess I can't really tbink of Kent as a place to go for recreation or events. I don't see anytbing to come to Kent for. It's like Auburn. It's got restaurants and a movie theater, stuff evegwbere bas. I don't see anytbing else. • Maybe the ice rink. Kent Station definitely attracts people. • It seems to be doing a good job with Kent Station. • Kent Station, meaningyou can go there before and after events. Downtown bas that opportunity but not as much as Kent Station. For example, I'm able to walk to games from my downtown Kent office. Not much else besides this. • Kent Station certainly, with its restaurants. Also us, with our mini golf, batting cages and bar. There are plenty of hotels.Also Vild Naves, wbicb really isn't that far away. • Last September I took my salesmen down to Kent Station as an appreciation event. I do like that area down there. I see it becoming more relevant to we as my sales force becomes larger, because we take our clients to eat in Kent Station. As Kent keeps getting nicer, our employees and customers want to do things in Kent. It's nice. Our ability to move in that area is improved the nicer it is and more reasons we have to go there. Marketing and Promotion of ShoWare Center and Kent • I tbink tbey do a good job. Ve have a chamber and the Kent Downtown Partnersbip. I tbink tbey do a good job. The Mayor does a good job as well. • The City does a good job. The promotions at Kent Commons are good. • The City bas a done a good job. I can't tbink of anytbing more. — There is the Soutb Seattle Tourism Network — T.V. ads migbt be agood idea — The SboVare Center website and email blasts works well — The addition of the new sign in front of SboVare Center was important and begs a lot. It lets people know wbat bappening at the venue. • To be blunt, we're not marketing it at all. Outside of the promoter, we're notgetting it out to the people — There are a lot of people witbin 5 miles that baven't been there. — Tourism can grow tbrougb an actual marketingprogram, that's where we are right now. — There's no good signage andyou won't see Sbovare Center ifyou aren't looking for it. — If we're evergoing to go the next level(City of Kent and SboVare Center we actually have to promote it. • I don't know if Kent is a destination. The downtown area is really nice. There are businesses there that are useful to my business and I can bring clients there. Kent Sbo Fare Center November 2012 Page 59 Economic Impacts • Trying to find a way to promote SboVare Center and Downtown Kent is a top priority. There is just a wonderful product and we just need to figure out bow to promote it. • The City is doing a good job. Mercbants need to get more involved (mentioned downtownl Old Kent mercbants). Educating towards this would bep. It would bep them learn bow to attract more business down here. If there was more info in SbovVare Center on wbat else is in Kent that would be great. • Linking events such as the softball tournaments in town, and a concert at nigbt would make sense. Event Mix Stakeholders were asked to describe events that impacted them the most (positively). • 6Vould like to see the Mist. 6Ve're busy for the Thunderbirds. Older concerts, we do well, too. 6Ve were really busy for Perfect Circle. 6Ve are busier for oldergroups, nostalgic groups. Newergroups don't drive traffic here that much. • Have more! • The events that seem to attractgood crowds are the family events, Globetrotters, Circus, Disney on Ice, NBC skating sbow televised nationally, Skate America coming in October. That one in particular should bring in people overnigbt. 600 hotel rooms for several nigbts in a row. Sbould have a little more impact. • Male oriented events like wrestling, bockey and sporting events in general • Hockey games and concerts are a good thing and good events to have. I'd like to see family friendly events and other kid type events, wbatever those may be. (Sponsor) • Business expos are good (mentioned several that have taken place in the lastyear or two). They are good for meeting and are also good for downtime in the summer wben the arena is not very busy. (Real Estate) • Concerts are a big draw. Kent Station probably sees the biggest impact. • Concerts are better. The clientele is associated with dining out andgaming more. Sucb events complement dining andgaming well. (Entertainment) • Definitely sporting events. (Restaurant) • Sporting events have the mostpositive impact. (Restaurant) • Thunderbirdsgamesprovide the mostpositive impact because of the bockey skating nature ofgames. The Thunderbirds games encourage skating. Even a concertprovides exposure (for my business)forpeople from out of town. (Entertainment) • Perfect facility for HS Grads in particular • Impactful Events (Hotel) — Disney on Ice, we got the entire cast and crew. — Hockey is the most impactful. — 6Ve get 9 0% of opposing teams to stay with us (estimated) — Concerts and associated crews stay with us, such as the upcoming Ladies Nigbt Tour. Graduation events (second most impact/al) Kent SboVare Center November 2012 Page 52 Economic Impacts The more important impact is the teams1crews staying with us than the people staying in town to see the sbowslevents. Use as a Business Facility or Tool Stakeholders were asked about their use of ShoWare Center as a business venue and tool. A range of responses were given with some stakeholder never using the facility to others valuing the facility as a networking tool. • No. I do most of my business in the nortb end. • I didn't know tbatyou could advertise in SbolVare Center. • IVe have used it tbrougb our sponsorsbip, but have not basted business functions there. Our suite bas been used for our sales team during Thunderbirds games. I beard it was fun and tbey enjoyed it. (Sponsor) • I don't see us using the SbolVare Center for these types of events. IVe have notbing against the facility, I just don't see us using. (Sponsor) • IVe are a Thunderbirds sponsor. Our sponsorsbip is a trade sponsorsbip. It is working well and we are in our 2nd or 3rd year as a sponsor. • Yes, I purcbased a sweet in the just and bave bougbt tickets for clients. I bad 94 people in the suite. It was intimate and everyone could talk to one anotber. It was a great way to interact. Since then,people that were in the suite bave attended events again, coming from outside Kent. (Real Estate) • I will probably do it again more often in the future. It's a good way to network with clients and potential clients. I did some advertising but I didn'tget enougb out of it. (Real Estate) • Yes we bave used the facility for customer appreciation events. Over the last fewyears we bave bad season tickets to the T-Birds and bave taken clients to a suite. IVe bave also taken clients to some other events, stub as concerts and circus events. Very satisfied with the facility.(Entertainment) • I've attended several events. My visits were more often for business functions stub as Cbamber events. If we bave events we use our own facility. (Restaurant) • IVe did look at sponsoring the T-Birds but it was too costly for a small business. IVe baven't looked at anytbing tbrougb SbolVare Center (only looked at sponsoring the Thunderbirds). • Yes, we bad an event there and it was satisfactory. (Restaurant) • Througb the Thunderbirds we belp them by supping rental skates for season ticket holders during the mid-winter season ticket bolder's promotion. IVe've loaned skates for several other events as well. It was mg good. IVe do a little cross advertising with SbolVare Center tbrougb tbeyoutb bockey association. • (Holiday Inn)I've been for a trade sbow1business expo. I've been to a couple of State of the City speecb's and networking events as well. IVe bave meeting rooms at our building. IVe've bad bootbs at expos takingplace at SbolVare Center, but that's it. IVe don't bave a need for stub a large facility. IVe advertise on the Thunderbirds website, in radio ads and in the game programs. IVe bave no signage at the arena. All Of our advertising is tbrougb the Thunderbirds. IVe'd like to discuss accommodations Kent SbolVare Center November 2012 Page 53 Economic Impacts for performers and crew, as there is no formal relationsbio rigbt now. There are things, like this, that we can do to draw more people from SbolVare Center. Improvements to Kent and ShoWare Center A number of stakeholder mentioned ways to improve both Kent and ShoWare Center. Comments ranged from better use of parking lots to timing of events. • Tbey could do a better job of using the parking lot for sales that we have not done. There are many days where the arena is empo. • Car dealers, RVs, boats, etc., could be sometbing we could use more of. • I'm an advocate for us to start to cbarge for parking. • More activities going on at SbolVare Center. More positim advertising. The train goes to Kent Station, but we need more frequent transit and ligbt rail. IVe need easier parking at Kent Station. • Suites are eVensim. Tickets for Mariners games suites are$90 but include food credit. Cost of tickets and food1 drink for suites at SbolVare Center events adds up. Deals like this may bep fill suites at SbolVare Center. • IVe need a bigber quality food store, like a Metropolitan Market or a 6Vh ole Foods. Maybe tbey say it can't be supported, but I tbink the Kent market is ready for this. People bane money and tbey want to spend it. The lack of alternatives drives people out of their neighborhood and into Tukwila and Soutb Center. I see wbat baj p ens in other places and we would draw lots of people if there was sometbing like that here. The movie theater is our biggest consistent draw. It pulls people in consistently, if the movie theater went out of business I would fear for the entire station. • Time of day, day of week is important to us. Having an event on a Friday nigbt bunts us and an event on a Tuesday nigbt in February begs us. IVe bane looked at joint partnersbio and it seemed really eVensive to capture people wbo will already come here (like the bockey folks) but I want to talk to the Disney people. I want to target my advertising to those people. I tbink Kent Station sbouldn't figbt SbolVare Center over the parking we should collaborate somebow,for example, with a sbuttle. That would alleviate the traf c problem. • The Green River runs tbrougb the beart of Kent. Cities that bane taken advantage of natural features sucb as rivers and lakes bavegreatly benefited (e.g. San Antonio). A sboj ping)commercial development along the river might be an enbancement to tourism. Thunderbirds Interview Community Attributes spoke with a representative of the Thunderbirds in order to gain an understanding of their operations and impacts on Kent. Team Impacts • 30 people Opically travel with visiting teams requiring 95 to 99 rooms • IVe give them a list of hotel partners • Thunderbirds generally live with Kentfamilies. Some team members are still in bigb scbool, some are done. Tbey are integrated into the community. Kent SbolVare Center November 2012 Page 54 Economic Impacts • Thunderbirds do scbool visits • $130,000 in donationsgiven back from Thunderbirds Foundation, mostly in Kent Operations • Training Camp wbicb ends in August brings a lot of people to town. This includes tryouts with 70 kids and their families staying in town for 3 to 7 days • Grown attendance eacbyear • Season ticket holders are south centric but range from Olympia to Everett • 6Ve sold a few new suites in the off season • Advertising and sponsorsbio bane grown each year • Majority of original sponsors and advertisers bane renewed • Renewed 95% of season ticket holders from Kg Arena • 96 FTE, 20 part time on games nigbts Being in Kent • 6Ve're baj jy with Kent and the facility • Tremendous atmospbere • Generally, it's been really good • Not a single tbing to cbange design wise • Location bas worked out really well. • Next to Kent Station with restaurants is tremendous • Easy access off of the freeway • Great to bane a community ice rink nearby Design, Location and Operations Good Location The majority of stakeholders responded positively to the location of ShoWare Center. Easy freeway access, proximity to downtown and proximity to transit were commonly cited. The following is a sampling of stakeholder responses: • The particular area that it is in is nice. Clients are taken there. • It's an interesting location. • It's a convenient location for transit with the train nearby. • The location is fine for us. It's close to us wbicb is nice. • I'm very satisfied with the location and presence. It's only 3.5 miles away from our location. The ease ofgetting in and out of the facility is great. Free parking is great. • Has easy access. • Location off of Higbway 167 is good and provides easy access. • It's excellent. Its 1.5 miles from the hotel. Parking is easy and close. It's located in the right spot, in a commercial area near a freeway and Kent Station. 6Ve event shuttle guests to and from SboVare Center. (Hotel) Kent SboVare Center November 2012 Page 55 Economic Impacts ShoWare Center Facility and Design Comments concerning the facility design and operations were positive. Stakeholders found the facility clean, well planned and mentioned that the facility serves as a symbol of what the Kent is trying to accomplish. • It's fine, overall it's OK • It's nice to have a local activitylgroup to sponsor. • Overall, we're bappy to have it in Kent. • It's great and sbows wbat we're toying to do. Starting to recognise it as a place to (people in Kent and outside of Kent. It's slowly getting better recognition. • Tbey have a really good product. I've been to many different side events at SbolVare Center and tbey do a good job with service andgettingpeople involved. • It's an awesome and great facility. I am a big advocate. It's nice to bave a local facility like this so we don't bave to go to Tacoma or Seattle. It's clean and nice. • I don't bave any feelings towards it. It's perfectly fine. There are no downsides to it. I like the facility. It bas a good layout and is a nice enougb design for a stadium. No strong feeling one way or anotber. • For the immediate person that lives here it is very convenient. • I'm very pleased with facility. IVe're rigbt down the street from it. The venue isgreat. It bas great site lines (forpatrons inside. Tbunderbirds provide great exposure to skating. There isn't any better event for us. • IVe get a lot of stays from opposing bockey teams. SbolVare Center bas added to the City and brougbt it up a level Kent Station and SbolVare Center are the top tbings in the area. Great, I baven't ever beard of any negatives about it. Good for hotels. It's laid out well. Its setup is user friendly. Customer Base The customer base of businesses interviewed varied between business types. Restaurants and entertainment businesses generally draw a more locally oriented customer base. Several other businesses, though, mentioned drawing from a more broad geography. This included non-retail businesses such as hotels and entertainment facilities. • Most customers are local and come tbrougb word of mouth. There are many from out of town (some from far away. (Restaurant) • Our customer base in general is the Puget Sound region. IVe sell as far east as Marysville, as far south as Yelm, as far east as Nortb Bend and as far west as Silverdale. Our customers are mostly families with cbildren. (Sponsor) • 50% come from witbin 3 to 5 miles of downtown Kent. IVe also bave many deals in Botbell and Tacoma. (Real Estate) • Most of our customers are local Kent residents and live witbin 5-10 miles of our location. (Entertainment) Kent SbolVare Center November 2012 Page 56 Economic Impacts • Our customers are from all over because of craft brewery. 6Ve're able draw tourists plus Kent locals. It also depends on the time ofyear. In the summertime we draw more tourists. (Restaurant • Most are Kent residents, league bowlers, 90% are regulars (Entertainment) • Our customers are between 35 and 55, males and females. Lunch draws working professionals and local businesses up and down the Higbway 167 corridor. Dinnertime is more family and people that love in and around Kent, Tukwila, and Auburn. (Restaurant • 6Ve draw from the Kent area and from all over the region. 6Ve draw people from Issaquab to the nortb, and Puyallup to the south and also people from Bremerton. The bockey league draws teams from Tacoma, Lakewood and even nortb of Everett. (Entertainment) • It depends on the season. September tbrougb May, it's mostly corporate clientele and busier on weekdays. From June tbrougb August there is a mix of corporate and leisure guests andlorgeneral travelers. This includes sports teams and families. Most customers are from the U.S. with some from Canada. Some customers are international and come from Japan and London,for example. (Hotel) Kent Sbo Fare Center November 2012 Page 57 Economic Impacts 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) Public Recognition B) Community Events C) Giving Campaign Presentation D) Kent Parks Foundation Donation E) Green Kent Business of the Year Award F) Public Safety Report and Life Saving Award G) Intergovernmental Reports PUBLIC COMMENT Agenda Item: Consent Calendar 7A - 7B CONSENT CALENDAR 7. City Council Action: Councilmember moves, Councilmember seconds to approve Consent Calendar Items A through O. Discussion Action 7A. Approval of Minutes. Approval of the minutes of the regular Council meeting of November 6, 2012. 7B. Approval of Bills. Approval of payment of the bills received through October 15 and paid on October 15 after auditing by the Operations Committee on November 6, 2012. Approval of checks issued for vouchers: Date Check Numbers Amount 10/15/12 Wire Transfers 5229-5250 $1,701,024.38 10/15/12 Regular Checks 667431-667791 1,401,769.65 10/15/12 Use Tax Payable 1,257.14 $3,104,051.17 Approval of checks issued for payroll for October 1 through October 15 and paid on October 19, 2012: Date Check Numbers Amount 10/19/12 Checks 329471-329631 $ 103,106.21 10/19/12 Advices 305101-305730 1,193,347.25 $1,296,453.46 Approval of checks issued for payroll for October 16 through October 31 and paid on November 5, 2012: Date Check Numbers Amount 11/5/12 Checks 329632-329782 $ 103,815.99 11/5/12 Advices 305731-306363 1,210,314.61 $1,314,130.60 Kent City Council Meeting KENT was �',.' November 6, 2012 The regular meeting of the Kent City Council was called to order at 5:00 p.m. by Mayor Cooke. Councilmembers present: Albertson, Boyce, Higgins, Perry, Ralph, Ranniger (who arrived at 5:30), and Thomas. (CFN-198) CHANGES TO THE AGENDA A. From Council, Administration, Staff. (CFN-198) No changes were made. B. From the Public. (CFN-198) No changes were made. PUBLIC COMMUNICATIONS A. Public Recoanition. (CFN-198) No public recognition was given. B. Community Events. (CFN-198) Higgins encouraged people to go to the ShoWare website to view upcoming events at the ShoWare Center. C. Intergovernmental Reports. (CFN-198) Council members reported on issues discussed at the regional committees on which they serve. PUBLIC COMMENT A. Neiahborhood Council Program. (CFN-1304) The following people spoke about their experience with the Neighborhood Council Program and encouraged the City Council to continue the program: Joshua Douglass, 1313 E. Chicago Street, Kent Tom Hinkle, 814 Reiten Road, Kent Phyllis Haynen, 27434 149th Avenue SE, Kent Jack Cosby, 525 Van de Vanter, Kent Bill McJannet, 13021 SE 232nd Place, Kent CONSENT CALENDAR Higgins moved to approve Consent Calendar Items A through K. Thomas seconded and the motion carried. A. Approval of Minutes. (CFN-198) The minutes of the workshops of October 9, 13, and 16 and the regular Council meeting of October 16, 2012, were approved. B. Approval of Bills. (CFN-104) Payment of the bills received through September 15 and paid on September 15 after auditing by the Operations Committee on October 16, 2012, were approved. Checks issued for vouchers were approved: Date Check Numbers Amount 9/15/12 Wire Transfers 5196-5214 $1,752,252.96 9/15/12 Regular Checks 666731-667055 1,834,798.93 9/15/12 Use Tax Payable 2,331.16 $3,589,983.05 1 Kent City Council Minutes November 6, 2012 Payment of the bills received through September 30 and paid on September 30 after auditing by the Operations Committee on October 16, 2012, were approved. Checks issued for vouchers were approved: Date Check Numbers Amount 9/30/12 Wire Transfers 5215-5228 $1,517,593.25 9/30/12 Regular Checks 667056-666730 2,286,163.82 Void Checks 667358 (41.34) 9/30/12 Use Tax Payable 1,145.72 $3,804,861.45 Checks issued for payroll for September 1 through September 15 and paid on September 20, 2012, were approved: Date Check Numbers Amount 9/20/12 Checks 329127-329302 $ 115,259.02 9/20/12 Advices 303835-304463 1,208,820.13 $1,324,079.15 Checks issued for payroll for September 16 through September 30 and paid on October 5, 2012, were approved: Date Check Numbers Amount 10/5/12 Checks 329303-329470 $ 107,914.10 10/5/12 Advices 304464-305100 1,209,169.47 $1,317,083.57 C. Cultural Competency Agreement. (CFN-147) The Mayor was authorized to sign a consultant services agreement with Jabez and Associates D/B/A The Edge Advisory Group, in an amount not to exceed $40,000 per year for 2012, 2013, and 2014, subject to final terms and conditions acceptable to the Human Resources Director and City Attorney. D. Multi-Care Fun Run Title Sponsorship. (CFN-118) The Multi-Care's Title Sponsorship of this year's Fun Run in the amount of $15,000 was accepted and the expenditure of funds in the Cultural Programs Division Budget was authorized, subject to final terms and conditions acceptable to the Human Resources Director and City Attorney. E. National Endowment for the Arts Grants. (CFN-839) The National Endowment for the Arts grant in the amount of $10,000 was accepted and the expenditure of funds in the Kent Arts Commission's budget was authorized, subject to final terms and conditions acceptable to the Parks Director and City Attorney. F. 2013-2017 Community Development Block Grant Consolidated Plan and Funding Allocations. (CFN-493) The Mayor was authorized to execute the appro- priate certifications and agreements to the Proposed Community Development Block Grant 2013-2017 Consolidated Plan for Housing and Community Development, including funding allocations and contingency plans. 2 Kent City Council Minutes November 6, 2012 G. Kina Conservation District Grant Agreement. (CFN-118) The Mayor was authorized to sign the agreement to accept the King Conservation District grant in the amount of $49,539 and the expenditure of funds in the Green Kent Partnership budget were approved, subject to final terms and conditions acceptable to the Parks Director and City Attorney. H. SR 516 to 2315t Way Levee Proiect Agreement. (CFN-1318) The Mayor was authorized to sign the contract with Allen Brackett Shedd for the real estate appraisal services of property on the SR 516 to S. 231st Way Levee project in the amount of $58,000, subject to final terms and conditions acceptable to the Public Works Director and the City Attorney. I. USGS Cooperative Data Collection Proaram Aareement. (CFN-1038) The Mayor was authorized to sign the joint funding agreement for Water Resources Investigations between the city of Kent and the U.S. Geological Survey, subject to final terms and conditions acceptable to the Public Works Director and the City Attorney. J. S. 228th Street Improvements. (CFN-171) The South 228th Street Improve- ments Project was accepted as complete and release of retainage to Mid-Mountain Contractors, Inc. upon receipt of standard releases from the state and release of any liens was authorized. The original contract amount was $5,255,489.75. The final contract amount was $4,762,927.46. K. DS Short Plat Bill of Sale. (CFN-484) The Bill of Sale for the DS Short Plat project for 150 linear feet of new street, 150 linear feet of frontage improvements, 4 catch basins, and 610 linear feet of storm sewerline was accepted. REPORTS A. Council President. (CFN-198) Higgins reported that BERK's draft Efficiency Study has been received and Council is reviewing it. He encouraged residents to read the study as well. He also announced that budget workshops will be held at 5:30 p.m. on Wednesday, November 14, and 8:30 a.m. on Saturday, November 17. B. Mayor. (CFN-198) Mayor Cooke reported on a CCER grant to achieve higher education standards, and thanked Green Kent stewards and staff for their efforts. C. Administration. (CFN-198) Hodgson said the draft BERK Efficiency Study will be available online on November 7, and that the final is due at the end of November. D. Economic & Community Development Committee. (CFN-198) Perry noted that the next meeting will be at 5:30 p.m. on November 12. E. Operations Committee. (CFN-198) No report was given. F. Parks and Human Services Committee. (CFN-198) No report was given. G. Public Safety Committee. (CFN-198) No report was given. 3 Kent City Council Minutes November 6, 2012 H. Public Works Committee. (CFN-198) Albertson said that the next meeting will be on November 19 at 5:00 p.m., and that they had recently discussed traffic calming measures on 223ra I. Regional Fire Authority. (CFN-198) Thomas said budget issues will be discussed at 5:30 p.m. on November 7th at Station 78. Upon Perry's question, he said Fire Benefit Charges may go up a bit for residential properties. ADJOURNMENT The meeting adjourned at 5:40 p.m. (CFN-198) Brenda Jacober, CIVIC City Clerk 4 KENT Agenda Item: Consent Calendar — 7C TO: City Council DATE: November 20, 2012 SUBJECT: 2012 Annual Docket Report — Approve MOTION: Approve the 2012 Annual Docket Report, with no change to the 2010 Annual Docket Report. SUMMARY: In accordance with 12.02.025 Kent City Code (KCC), Planning Services coordinates on an annual basis a list of suggested changes to the compre- hensive plan and development regulations and recommends to the City Council which items are appropriate for consideration in various review cycles. As provided in 12.02.035(F) KCC, the recommendations in the 2010 Annual Docket Report may also be reconsidered this year. EXHIBITS: Staff Memo dated 11/14/2012, 2012 and 2010 Annual Docket Reports RECOMMENDED BY: Economic & Community Development Committee BUDGET IMPACTS: None ECONOMIC and COMMUNITY DEVELOPMENT Ben Wolters, Director PLANNING DIVISION • Fred N. Satterstrom, AICP, Director KEN T Charlene Anderson, AICP, Manager WASHINGTON Phone: 253-856-5454 Fax: 253-856-6454 Address: 220 Fourth Avenue S. Kent, WA 98032-5895 November 14, 2012 To: Mayor Suzette Cooke, Council President Dennis Higgins and City Council From: Charlene Anderson, AICP, Planning Manager Subject: 2012 Annual Docket Report For the meeting of November 20, 2012 MOTION: Approve the 2012 Annual Docket Report, with no change to the 2010 Annual Docket Report. SUMMARY: In accordance with 12.02.025 Kent City Code (KCC), Planning Services coordinates on an annual basis a list of suggested changes to the comprehensive plan and development regulations and recommends to the City Council which items are appropriate for consideration in various review cycles. The 2012 Annual Docket Report follows the process for review outlined in Chapter 12.02 KCC. Per 12.02.035(F), the 2010 docket report is attached and the approved recommendations are available for reconsideration. After considering the matter at their November 131h meeting, the Economic & Community Development Committee recommended approval of the 2012 Annual Docket Report, with no change to the 2010 Annual Docket Report. BUDGET IMPACT: None. BACKGROUND: The Growth Management Act outlines a procedure that assists the public in making suggested amendments to the Comprehensive Plan, development regulations, and growth policies on an annual basis. "Docketing" refers to compiling and maintaining a list of suggested changes to the Comprehensive Plan or development regulations to ensure they will be considered by the City and will be available for review by the public. The deadline for filing a docket item is the same as for the annual map amendments, i.e., the first business day of September. The 2012 Annual Docket Report included in the agenda packet contains four (4) items submitted for consideration this year. Staff is not proposing new recommendations for the 2010 Annual Docket Report, which is also attached. CA/pm P:\Planning\DOCKETS\2012\CC\Dkt-2012_CC Me m of 1-20-12.dcc Enc: 2012 Annual Docket Report&Applications w/o Attachments 2010 Annual Docket Report cc: Fred N. Satterstrom,AICP, Planning Director Brad Lake, PW Operations Manager Mark Howlett, Design Engineering Manager Capt. Larry Rabel, Kent Regional Fire Authority Charlene Anderson,AICP, Planning Manager v m a `O `O `O `O c r r r r c N N N N N O O m O m O m O m V O V O V O V O a. c a` a` c a` > c O O o N N (0 L p N -O m N LL K _ N c 0 .� (6 N N E N (6 '0 U Y -p -O 0 N c ON 'O -O O c o C P -O 0 0 0 in O -O UI N > N N c O '- O O (6 L C U _ d O O U N O w LL N w Y N O (6 0 UI O L N c L M (6 0 C (6 w5 .5 .. 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N N C = O N N N B 00 D md m o¢ 2 mm n- m mJ mmm� mo mwo 5 o > ° cl N m N E V N U) m D OL � ¢ _ =U CO m c mw m m mm m m ^ i cEo LL o _ p F VI O¢m M2 n D 6 m 0m0 TJ CUa=d�=m QmC-mmJmOo U it m o N U) -2 T m o E E O � a ¢ t = a maR Pm . m 2 E o m LL E 00E E w m ry E ` o .EU ° LEF E m mmm ° 0 z Do - m m5 m Om46 > M 00 3o46 mY om ` � o ? � , , .0 N a O0 NIOVm_° ° 5Uyj . T m J ONN J O mJ ' O m O U Umm U N 0 > 63N N yL : �� U U o m m d 22O E - m20i5Q - mO m m U N _ 0 C N N M N .. N ._ M N C N o V N O � d C d O (D C C W o2 o N O � J mm '^ o-� O � J O m oU E y O m O m O m C OI ON mY �N NU �m N NQa Y C01VUN U T 0 a Q � O � UYQ M, 'm O O —om OFU "Om KENT Agenda Item: Consent Calendar - 7D TO: City Council DATE: November 20, 2012 SUBJECT: East Hill Revitalization Project Grant - Accept MOTION: Authorize the Mayor to accept the grant from United Way of King County's New Solutions in the amount of $25,000, amend the budget, and authorize expenditure of the funds in accordance with grant terms acceptable to the Economic and Community Development Director and City Attorney. SUMMARY: United Way of King County's New Solutions Fund is awarding the city of Kent $25,000 for Phase 2 of the East Hill Revitalization Project. EXHIBITS: Grant Contract RECOMMENDED BY: Economic & Community Development Committee BUDGET IMPACTS: Will increase expenditures but the grant will offset expenses. ECONOMIC and COMMUNITY DEVELOPMENT Ben Wolters, Director PLANNING SERVICES Fred N. Satterstrom, AICP, Planning Director 400! illillillilito Charlene Anderson, AICP, Manager 00010*4 K EN T Phone: 253-856-5454 WF=„I��To Fax: 253-856-6454 Address: 220 Fourth Avenue S Kent, WA 98032-5895 November 7, 2012 To: Chair Jamie Perry and Economic & Community Development Committee From: Josh Hall, Economic Development Specialist Through: Ben Wolters, Economic Development Director Subject: FY2013 New Solutions Funding Grant Contract for $25,000 MOTION: Move to accept a grant from United Way King County's New Solutions Fund in the amount of $25,000. SUMMARY: The City has received a $25,000 grant for United Way King County's New Solutions Fund. The funds will be used to implement Phase 2 of the East Hill Revitalization Project. BUDGET IMPACT: None. BACKGROUND: The City received a $20,000 grant from United Way of King County in 2012 to implement phase I of the East Hill Neighborhood Revitalization Project. The project was developed through collaboration between United Way King County, the City, and local community members. Through this grant we conducted a Community Forum, developed action plans, and created a stakeholder group. See enclosed for Phase I report. Phase II will focus on organizational development and leadership training. The goal is to work with the members of Kent East Hill Revitalization (KEHR) to create an organizational structure that will help KEHR become a self-sustaining organization. We will identify members of the community and of the stakeholder group to groom and develop into a board of directors. Secondly, we will provide leadership and organizational development training to stakeholder members who have committed to moving KEHR forward. Training will focus on cross-cultural competency, facilitation, meeting management, non-profit organizational structure, etc. Last, we will continue to focus on outreach to the broader community. It is important to continue to enhance our efforts to reach East Hill residents. KEHR will also apply for a grant from the Seattle Foundation to help fund this project. BW/]H/pm P:\Planning\ECDC\2012\Packet Documents\11-13-12\EY2013 New Solutions Staff Report.docx Enc: East Hill Neighborhood Revitalization Project Phase I Report KEHR Phase II Proposal cc: Fred Satterstrom, Planning Director Charlene Anderson, Planning Manager Toni Azzola, Neighborhood Program Coordinator omI ilist I�rN Is ilIii nehrihbdaaWw�r,r+�Il ro�::�u Int anh�i�aor�m llIllmli ,,;rwre°ww°wrewrww ty. It's a place filled with old and new. Its residents are proud to live there. They see their diversity as a strength;they help each other; and they value the support of their youth,their elderly and their leaders.These are the building blocks of a strong community. East Hill residents are excited about building a neighborhood that reflects the best of their strong and diverse community. V1l_TH00 The East Hill Neighborhood �� Revitalization Project was designed with three phases.This summary report describes the work completed in Over the course of four months,from March of 2012-June 2012,neighbors of East Phase],on rk for hat Phases a used el the Hill gathered to answer the question:"How can East Hill be the best it can be?". foundation for Phases2 and 3.Below are the goals for each phase. PAHTNI_I T PI UCG 1 I The City of Kent received a grant from the United Way of King County's New Solutions Create partnerships and leadership program. The program focuses on innovative strategies that meet the emerging •Build partnerships:broaden needs of community members and builds the strengths and resources of individuals, ownership in neighborhood communities and systems.The New Solutions Fund supports community driven revitalization planning,increase solutions where community-based organizations and community members have the cooperation between government tools,resources to take a leadership role in implementing new approaches to make real and citizens(realizing that together and lasting change in local communities,funding is focused in the following areas: they can accomplish more) .New ideas and approaches that address emerging issues •crow Awareness:uncover existing .Community organizing,leadership development,and skills and training that lead neighborhood assets and identify needs/gaps to community capacity development •prioritize:develop focus for future •Developing networks,collaborations or partnerships that improve the way community participation services are delivered and promote systems change •Maintain Momentum:take early action to encourage continuity and United Way of King County and City of Kent invited Pomegranate Center tofacilitate and excitement guide the community engagement phase of this work.Pomegranate Center is a non- Grow Capacity:develop community profit organization that inspires communities towards a morejust,unique,beautiful, leadership through training and sustainable future byfostering practices and places that reflect our best selves. PIUCY II r:G , I1NIT"1101I1N1 Broaden community engagement to On March 3rd,2012,67 East Hill participants gathered for Community Forum,a four- develop community-owned goals and hour event to exchange ideas for making Kent's East Hill neighborhood'the best it action plans;through training,enhance can be' 'This event's purpose was to ju mp-start work for Improving East Hill through local capacity for implementation. collaboration,planning,and actions. The forum was designed as the first step in building more community ownership for the East Hill Neighborhood Revitalization PIUC EIII Project and engaging In Implementation of selected goals. Implementhigh priority community goals Outcome t: Code of Collaboration(Appendix) The group adopted Pomegranate Center's Ground Rules for the Forum and all ensuing work.The Ground Rules encourage a balanced approach,a commitment to common solutions,and civility in neighborhood discourse. Outcome 2:Guiding Principles Participants developed a set of ideas to guide the group's work. They decided that all future activities and projects must reflect the following principles: •Inclusion is the foundation for everything •Encourage imagination and creativity •Practice wise use of existing spaces and organizations for needed programs/collaboration •Maintain,preserve and enhance diversity •Find locally-grown solutions that are mindful of local community and culture •Future amenities need to serve all people •Strengthen the sense of identity-celebrate local uniqueness and character ••. ^sKENT v ,�^:�`�POMEGRANATE CENTER (continued on nextpage) 1 Outcome 3:Over 80 ideas that fell into three categories(Appendix A) Im •Physical Improvements •Human/Social Improvements •Needed Resources Outcome4:Formation of Steering Group •Over 20 self-selected volunteers willing to look at key ideas generated at the forum,prioritize them,develop action plans for next steps,and assist with the procuring resources for Phases 2 and 3 of the project SI I 1 111NS (III ri HIP , I I I IN(;`d Steering group meetings were held on April 26,May 24 and June 21,were attended by volunteers from the Community Forum. These leaders represented diverse interests, backgrounds and skills sets. Their charge was to use the community's input from the Forum to create a set of priorities toward which they and their neighbors could take action. These priorities were then organized into four Action Plans. Outcome t:Formation of three Strategy Groups based on the March 3rd findings •Physical Improvements •Human/Social Improvements •Resources needto supportthese improvements Outcome 2:Each Strategic Group prioritized goals(in bold) Physical Improvements •Gathering Place:plaza,hub,core community,youth •Art:inside and outside,traveling art •International District-priority •Clean,safe community-priority •Accountability:business,landlords,code enforcement Human/social Improvements •Communication:community forum,cross-cultural and social media •Economic Development:job creation,promotion of business&economy-priority •Youth Development-priority •Housing and Homelessness •Form a council to get funding Resources needed to support priority improvements include: •Action community groups:formal and informal,traditional and non-traditional •Money,funders,those that have a stake in this project •Government:local,county,state,mayors office,police,fire,planning,DOT •Local skills&knowledge •Places:property owners,business,schools,KCHA,vacant •Everyone's network •Lessons learn from other efforts(Kent,White Center,Skyway,etc.) Outcome 3:Action Plans that address four goals from the above list(in bold). Completed Action Plans can be seen in the Appendix B. N E / I T I I 'T East Hill community members,having completed Phase I,thoughtfully crafted a framework for ongoing work to make their neighborhood great.Future phases of work will focus on: COINI/V 1 1.Leadership development-providing tools for veteran community leaders to Josh Hall continue doing good work and fostering new leaders to rise. The City of Kent 2.Organizational development-galvanizing,organizing and mobilizing necessary Economic Development 8022 Specialist resources,both human and material,to support revitalization. 400 W G-570 Kent WA 98022 253-sse-57m 3.Building capacity for the community to take more and more ownership as the jhall@kent a.gov consultant's role decreases. This ongoing work will be collaborative and productive and build on the good work that has already begun. ••• ^"KENT v f�^:�`�FOMEORANATE CENTER 2 f)l'I'l NDU(A II�•I, V� V Ideasfor neighborhood improvements Human/Social improvements �IIIII ')i�IN!IIIIIII�!III VIi, (� represent individuals who agreed with a •Increase/enhance community forums �IIIII II III m particular idea) •Cross-cultural communication(to communicate IIII emergencies&other) Ipiii III Physical improvements Provide at-risk youth path to productivity •More walk-able Create reasons to walk)(ADA) •East Hill as a good investment (Traffic safetyfor pedestrians) v v v v v v •Pride of place(ownership) v v v -Youth center(collaborate with school,mentoring •Housing limits for sex offenders programs-economic development, •Job creation(impede crime) educating youth,sex education) v v v v v •Promote business and economy •Create a center-gathering place,multiuse,indoor/ •Social media to connect(FB)(System to alert for outdoor(destination),multicultural,family-oriented emergency communications) o Better newcomer integration •Create reasons to get out of cars/to walk •Inter-faith partnerships and collaboration (destinations) v v •Address homelessness •Better transportation(East Hill Transit Center@ •Grow a East Hill Community Council to get funding Existing P&F) •Improve Schools •Free bus service(more) Common Themes from all the ideas •Preserve durable,safe,inhabitable homes •Code enforcement(punish perpetrators,noise, •Safety litter) v v v v •Beautiful Streets •Placethat's clean and safe: v obeautifying-clean •Destinations(for families,for alp up road kill -Transportation •Art reflects different cultures v •Walking •Signage(uniform ordinances) •International,multi-cultural -Address graffiti v -Youth,seniors,all •Higher density housing around center(s) •Inclusion as foundation for everything •Balance of density(single vs.family housing •Pride and ownership •Keep balance between urban and rural •Communication Sidewalks(wide,welcoming,attractive places for •Programming,events,parties people) v •Better connection with city/government •New codes for residential and business properties •Economic re-development for appearance and safety •Sense of community •Landscape medians(for safety) •International District(revitalize with marketing) • ^"KEN_T �� f;}i`�FOMEURANATE CENTER (continued on next page) 3 A I'I'l Nf IX. IS I��I II i AcUo i IPllain Economic Development Our mission is to create a District that is a viable center which encourages job creation,investment,and pride in the local community to ensure that patronage and residency remains local. Our Vision 10.Encourage and assist with internship and A.Retain and expand current businesses apprenticeship offerings at local businesses B.Strengthen job creation and opportunities for area 11.Actively collaborate with schools and residents and develop business outreach efforts colleges to expand training and development C.Expand the knowledge base of residents through opportunities workforce development and training •Identify studentjob shadowing needs by working with high school career and technical 10(or less)Steps Driving this Process Forward: teachers A.Retain and expand current businesses •Identify local workforce by working with local 1.Investigate,with the City,possible incentive schools and employment agencies programs to encourage facade improvements 12.Identify a possible location(s)for worker training and beautification •Identify studentjob shadowing needs by 2.Develop a shop local campaign specificto East Hill working with high school career and technical •Loyalty Program:rewards cards to shop at teachers local Kent businesses-similar to the Safeway/ •Identify local workforce by working with local QFC rewards card program schools and employment agencies 3.Identify what makes residents and visitors interested in East Hill,what is our brand? When should this work be completed?Ongoing 4.Create inventory of existing businesses Who will lead this work? B.Strengthenjob creation and opportunities for area -City of Kent residents and develop business outreach efforts -East Hill Partnership 5.Establish business incu bators to encourage •Kent Black Action Commission and support the entrepreneurial spirit of the •New Business Association for East Hill community (To be determined) •Survey customers to understand what •Chamber of Commerce businesses would attract and meet their shopping needs Haw do others get involved?Who do they contact? 6.Collaborate with local government to craft ideas •Josh Hall in recruiting new businesses •Kent Chamber of Commerce •Ensure a diverse set of new businesses which •Kent Black Action Commission would attract local customers •East Hill website/Facebook Page •Visit other communities to see the types of businesses exist Support:What financial,volunteer,organizational 7.Develop an outreach program to meet and or in-kind support is needed? engage businesses and local entrepreneurs •Financial:Incentives,business forum;marketing; •Gain a better understanding of the needs of events;organizational cost(if this group becomes the East Hill Businesses its own entity);grow support through membership •Partner with the Chamber,City of Kent, with a small membership amount GRCC and other organizations on business -Volunteer:Needed to make connections,volunteer education events expertise/knowledge and talent;clean-up crews; •Create a liaison between the City of Kent and welcome committees;board positions East Hill Businesses •In-Kind:Marketing;cross-promotional marketing; B.Develop a Business Kiosk or One-Stop business services information Shopfor residents and businesses •A location to get advice,assistance, What is theend result?Wewill succeed if... information,etc. We complete and successfully implement an action plan that works towards our mission and vision.That C.Expand the knowledge base of residents through is,we will establish a business district that is a viable workforce development and training center which encourages job creation,investment, 9.Create a database of local skilled workers or and pride in the local com mu n ity th roug h: potential employees,and employer needs •Retention and expansion of current businesses •Database would match potential employees •Strengthening of job creation and opportunities with employer needs for area residents •Database would reveal where additional •Expanding the knowledge base of residents training and/or knowledge could be through workforce development and training strengthened •Supporting businesses through outreach efforts ••• ^"KENT v f;}i`�FOMEURANATE CENTER (continued on nextpage) 4 u AcNon IPlain Kent East Hill International Cultural District(ICD) Our mission is to create a districtthat creates a distinctive sense of placethat is inclusive of all members of the community,and highlights the unique differences and similarities of the diverse East Hill population. Our Vision R.Create an ICD resource and referral center(RRC)to Drawing on the contributions and strengths of the assistsmall businesses and residents withshort and varied cultural and ethnic communities,the ICD will long-term needs be a vibrant and premier ICD destination of choice in 5.Identify local interpreter and translation services South King County for business owners and residents to assist residents with social needs to work,live,and enjoy life to the fullest. 6.Develop culturally-appropriate marketing materials to promote the knowledge and needs Existing Momentum of the community •Kent International Festival •(i.e.develop a knowledge and skills •Kent Black Action Commission(KBAC) management database,and match the skills •East Hill Community Network Council(CNC) to the needs) •East Hill Partnership(EHP) 7.With RRC taking the lead,celebrate and •Refugee Transition Center(RTC) promote district successes through messaging •East African and Filipino Organizations via the Kent International Festival and other •Kent School District cultural events in the area •Kent Sister City Association •KCDIG When should this work be completed?Ongoing •Seattle Foundation Neighbor to Neighbor Fund Who will lead this work? Obstacles •International Cultural District Committee-this •Unclear boundaries group should include ethnic leaders who live and/ •Perceptions from Great Wall Mall Administrators or work in the area,which requires knowing the •Resistance to change demographics in the area. •Need a greater mix of uses including residential •City of Kent •Lack of Institutional and organizational leadership •East Hill Partnership •Property owners •Kent International Festival •District Perception •Kent Arts Commission -The name....International District isn't inclusive •Forterra/Sustainable Communities/PSRC •No collaboration with community groups,business,etc Haw do others get involved?Who do they contact? 10(or less)Steps Driving this Process Forward: •Josh Hall until committee is established A.Create a vibrant and premier ICD destination of •Create a website/Face book page choice in South King County •Mayor's Advisory Tea m 1.Establish an ICD Promotion Committee to •Put together a short survey,conduct presentations promote available business space,resident with the service clubs in the area to get feedback properties;school system resources; international and cultural events;parks and Support:What financial,volunteer,organizational recreation;business/family-friendly atmosphere; or in-kind support is needed? and other diverse assets of the district •Financial:Investigate BID or otherfunding •Identify a quickwin to establish the mechanisms,memberships,marketing,promotions, revitalized district(Think:Austin Street Fair, sponsorships,bartering,foundations,Impact Capital, Bite of East Hill,Street of Inclusion,etc.) local corporations,consultants 2.Establish a recruitment and retention plan to •Volunteer:Organizational development,clean-ups, meet and exceed the needs of current and events,marketing,community outreach,students, potential business opportunities. Churches,Mosques,Boy scouts,Girl scouts,Kent -The plan will also identify specific planning school district community service work seekers and marketing resources availablefor -Pro-Bono:Design work,legal,marketing, new business startups and existing small consultants,students businesses 3.Identify and correct geographic barriers What is theend result?Wewill succeed if... which prevent the clear promotion of district We help create a thriving,inclusive,and distinct boundaries,businesses,and residents. district with diverse businesses and opportunities, •Improve pedestrian,bike,and traffic safety which creates a distinct sense of place. This process and connectivityto the CID(i.e.public will be led by an energetic and inclusive committee transportation access)from all areas of King who follow a well-crafted and community-driven County and beyond to increase the number strategic plan. of patrons to local businesses 4.Identify a sustainable funding model-research and evaluate other district models ••• ^"KENT va f;}i`�FOMEURANATE CENTER (continued on nextpage) 5 dtcUoiv IPlain Youth and Family Engagement Families arethe foundation of our community.We must encourage and support the economically,socially, and culturally diverse families in our community through youth and family centered activities,citizenship opportunities,and assist in the development of lifelong learning skills. Our Vision C.Develop Youth and Family Centered Activities and A.To develop a community driven youth Strategy Opportunities(ongoing) B.Con nect Youth a nd the Com m u n ity to em ployment S.Develop safe and engaging events and activities opportunities geared toward youth and family C.Developyouth and family centered activities 6.Identify concerns around safety in the area Existing Momentum When should this work be completed? •Kent Parks&Rec youth programs A.Strategy •Church youth groups a.Form Youth Committee for East Hill-short term •Boys&Girls Club(not located in Kent) -Project U(th)and others •Scouts b.Engage Community Through Youth Forum- •Boxing Club medium term-Youth Committee •Police Outreach(Game of Life) c.Investigate Youth/Teen/Community Center- •Youth Summit mediumterm-Youth Committee •Kent Refugee Center d.Connectthe youth and residents to employment •KM Clubs:Black Student Union,SEA,Latino, opportunities-Ongoing-Youth Committeeand Asian groups Economic Development Committee •Project U(th) e.Develop youth and family centered activities- •CNC Ongoing-Youth Committee and others Obstacles Who will lead this work? •Funding -Youth Committee •Lack of space •KEHR •Lack of community understanding to do so •City of Kent Parks Department •Lack of collaboration and partnerships between •CNC various entities •School District •No clear strategy or clear need statement •Project U(th) •Full involvement from all aspects of the community •KYFS 10(or less)Steps Driving this Process Forward: Haw do others get involved?Who do they contact? A.Develop Youth Engagement Strategy •TBA-Youth Com m ittee 1.Form Youth Committee with representation •Project U(th) from various youth on East Hill(short-term- •School District Project U(th)and others) •KYFS •Engage a diverse and representative group of youth Support:What financial,volunteer,organizational •Review KEHR's Youth Development Work Plan or in-kind support is needed? •Develop an inventory of existing services and •Financial:youth forum;marketing;events; service providers organizational cost;fundraising 2.Engage the community through a youth -Volunteer:Needed to make connections,volunteer forum,or other avenue(medium-term)(Youth expertise/knowledge andtalent;youth leaders, Committee) fundraising 3.Investigate Youth/Teen/Community Center •In-Kind:Marketing; options •Research the possibilities for a teen/youth/ What is theend result?Wewill succeed if... community center We complete and successfully implement an action •Identify locations for a teen/youth/community plan that works towards our mission and vision.That center is,we will establish a youth and family committee that will focus on completing and vetting the existing B.Connecttheyouth to employment opportunities work plan. Theywill engage the community and (ongoing) youth to develop activities and functions to support 4.Work closelywith the business community the positive development and engagement of to identify opportunities for internships or youth and families of all kinds. We will have a better employment understanding of the needs of youth and family •Developjob train ing or job fair opportun ities within the neighborhood boundaries and a vision on the East Hill toward creating a youth/teen/community center. ••• ^"KENT v f;}i`�FOMEURANATE CENTER (continued on nextpage) 6 MRAsUoi lPllain East Hill Physical Improvement for a Clean and Safe Community Our mission is to create a vibrant,safe,and clean neighborhood district to encourage local investment and increased pride in the East Hill. Our Usion pathways becomes a placefor people to A.Strong collaboration between businesses and come together.The space becomes a Place-a residents to ensure buy-in of and success on our public square.) action plan 9.Encourage landlords to get involved/motivated B.Improved aestheticappeal of the East Hill Physical •Getthemto invest in buildings and change neighborhood area perceptions C.Safetyfor residents,businesses,and customers •Helpthem to partner with church groups and non-profits to improve safety 10(or less)Steps Driving this Process Forward: •Build pride in local community through A.Strong collaboration between businesses and involvement and investment residents to ensure buy-in on our action steps 1.Create an'East HiI l l m provement Team"(EHIT) When should this work be completed?Ongoi ng •EH IT takes actionable steps to make our neighborhood boundarythe best Whowill lead thiswork? 2.Research and Investigate Implementing a East Hill Improvement Team(EHIT) Business Improvement District •Are there other options? Haw do others get involved?Who do they contact? •Describe fees involved,benefits to boundary Contact EHIT liaison coordinator and neighboring area,etc. 3.EHIT spreads common message Support:What financial,volunteer,organizational •Canvass neighborhood businesses and or in-kind support is needed? apartment owners •Wewill gather volunteers and leveragetheir •Conduct meet-ups using translated(top expertise,contacts,and knowledge spoken languages)information flyers. •We will review and identify resources through City of •Hold commun ity forums on a quarterly basis Kent Human Services and Economic Development to inform on developments&successes departments B.Improved aesthetic appeal of the East Hill Physical What is the end result?We will succeed if... Improvement boundary area We complete and successfully implement an action 4.Organize community clean-up groups plan that works towards our mission and vision.That •Street cleaning,cleanup of noxious weeds, is,we will establish a business improvement district adopt-a-street program,and more. that will result in increased local investment and •Workwith school teachers on community pride through: service projects •Strong collaboration between businesses and •Check on models such as Portland city repairs residents to ensure buy-in of and success on our S.Lobbythe cityfor benches,trash containers, action plan and more •Improved aesthetic appeal of the East Hill 6.Look at street furniture,light fixtures,street Physical Improvement boundary area trees(greenery) •Safetyfor residents,businesses,and customers 7.Ensure enforcements through Chamber of Commerce •Code enforcement is done by clear& coordinated communication for signage/ physical improvements C.Safety for residents,businesses,and customers 8.Ensure pedestrian safety •Workwith Public Works to review data on the safety and accidents in the boundary area •Slow down traffic through visual graphics in the intersection or through the"Intersection Repair"concept:a citizen-led conversion of an urban street intersection into public square streets.(Most public spaces have been designed with a single purpose in mind: moving cars around.With an Intersection Repair,that public space is reclaimed for the whole community.The intersection of ••• ^"KENT v „}i`�FOMEURANATE CENTER 7 "IAM f1r�I M 1 ( 101HIP h41 , I I I'T Patty Pedrini Ted Schwartz Johnetta Rowsey Rev.Jimmie James Maya Vengadasalam Min.Alice James Harpreet Gill Bruce Raymond Gwen Allen-Carston Manase Hopoi Ann Eggers Barbara Phillips Jim Renton Lori Guilfoyle Leslie Hamada Caren Adams Bob Brooks Melvin Tate Jennifer Ritchie Dennis Higgins Megan McKee Ray Lee h4A1 ( II � I-aI I1 , AI I I N1) 1 T Everett Tustin Sandra Petscheck Miles Freeman John Phillips Jim Berrios Sarab Singh Bill Boyce Roger Hurst Maya Vengadasalam Kate Cole Elizabeth Caliebe Amy Lee A.Nelson Stradling Erika Fardig Zandria Michaud Jamie Perry Cathy Hernandez Johnetta Rowsey Jennifer Ritchie Sharon Bersaas Dana Ralph Ted Schwartz Aubrey Shinholster Harpreet Sekhon Richard Palmer Scott E.Lint Judy Smith Jennifer Lint Joe Kempf Manase Hopoi Gary Lea Maladiane Coghlan Betty Haque Ranniger Debbie Judy de Barros Judy Hamilton Sharon Pfeiffer Thomas Lambard John&Patty Pedrini Ruth Riddle Peter House Dega Taker Sally Goodgion Jasbir kaur A.Felzmann Asad Hassah Anna Felzmann Manase Hopoi John Felzmann Dennis Higgins Paul Evanoff Suzette Cooke Harpreet Gill Skye Schell Leslie Hamada Lee Ann Johnson Richard Burrows Sherwin Foo Dian Burrows Nyla Rosen Laura Cook Joy Alford Karen Hancock Debra Wheeler Ashmine Cheema Ohn Ohnmar Gwen Allen-Carston Ray Lee Jim Renton Rev.Jimmie James Marty Kooistra Min.Alice James Fred Satterstrom Bruce Raymond Jim Gonnason Manase Hopoi Jack Becvar Barbara Phillips Mary Lou Becvar Lori Guilfoyle Marvin Eckfield Caren Adams Annie Brooks Melvin Tate Bob Brooks Dennis Higgins Chris Loftis • ^"KENT f�^`}�`�FOMEORANATE CENTER 8 KEHR Phase II Proposal The East Hill Community Stakeholder Group, having completed Phase I, thoughtfully crafted a framework for ongoing work to make their neighborhood great. Phase II will focus on organizational and leadership development and building capacity and trust. KEHR will select a consultant, selected through a RFP process, to lead Phase 11. The consultant will work with KEHR to achieve the deliverables listed below and will focus on the identified areas; organizational and leadership development and building capacity and trust. Organizational and Leadership Development: The goal of Phase I was to catalyze the development of an organization on the East Hill that could drive forward community building and revitalization efforts with assistance from the City of Kent. It is the hope that KEHR can begin to develop organizationally so it can one day become a self-sufficient entity which can champion the needs and opportunities for the East Hill Community. Until that time, KEHR needs to identify a structure that best suits the current and future framework of this group. Phase 11 will provide assistance to KEHR through working with the consultant in developing an organizational structure. The group will work closely with the consultant to develop leadership roles, understanding organizational framework, finance and operations development, development of organizational by-laws and other aspects to be determined. It is also important to identify individuals within the stakeholder group who will take on leadership roles within the organization. These individuals will be integral in driving KEHR forward. Our goal is to identify 5-10 community stakeholders, representative of the diverse community, who are committed to KEHR's cause and interested in investing time in the organization. These individuals will be given intensive community development and leadership training to sharpen and develop their community development and organizational leadership skills. Participants will work closely with the consultant as they prepare for additional community meetings; they will co-present and facilitate with the consultants, and plan for quick victory projects throughout the year. They will also be trained in cultural competency, cross-cultural communication, and a better understand of organizational and board of director practices. It is the intent for these trained individuals to bring these skills to the leadership structure, be it a board or stakeholder group, that is the decision making body for the organization. KEHR must also become a sustainable organization. Therefore, KEHR must develop a fundraising and sustainability plan. This plan must outline future revenue sources from the City and other funders and provide a direction for the organization to achieve its future goals as it transitions into Phase 111. Deliverables: Organizational structure identified; clear roles, processes and procedures developed and organizational leadership structure created. 5-10 KEHR stakeholders trained in facilitation, communication and planning; 3-5 additional community meetings held and facilitated by the community leaders; planning and implementation of a "quick victory" project; and Cultural Competency and Cross-Cultural communication trainings for KEHR board members. Develop fundraising and organizational sustainability plan. Building Capacity and Trust: KEHR has been championed by a core group of volunteers who have continued to attend meetings, develop work plans, engage the community, and coordinate events. However, this group needs continued support from the community. In order to continue this process the members of KEHR will need additional support and will need to reach out into the community and make sure the group is representative of the diversity that exists within East Hill. KEHR must continue their momentum and build upon the interest they have created. They must begin to implement aspects of their work plan and need to assure members and participants that this effort is more than just meetings by accomplishing projects and tasks, especially those that are visible. Through Phase II KEHR will continue engaging community groups, businesses, and organizations within Kent and the East Hill to increase the awareness of the group and to encourage participation. KEHR will hold an annual meeting inviting the surrounding community, will engage in four broad community-wide social events, and will partake in ten additional "road shovel' efforts. It is also important that KEHR begin to develop and gain the trust of the community. In order to create that trust all aspects of KEHR's activities must be transparent and participants should feel that they are involved and have a voice. KEHR has laid some of the groundwork by posting information about Phase I on their Facebook and webpage, and sending email updates to their entire database about the process and future plans for acquiring funding. This will be a continued focus of KEHR as the group looks to establish itself within the East Hill Community. Deliverables: Conduct five additional "road shows"; five new community groups, organizations, and/or neighborhood councils engaged; KEHR will represent each of the major ethnic groups: Caucasian, Black, South Asian, Latino, Somali, Asian and Russian; all actions within KEHR will be transparent to the community and its partners; documents will be translated into the four main languages identified by the Kent School District and interpretation will be provided at events. Future Work— Phase III — Ramp-up and Sustainability Phase III is the implementation phase. This phase will focus on completing work plan action items and other projects identified in Phase II. We feel there are aspects of the work plan that can be implemented during Phase II, but Phase III has an emphasis on completing a significant and visual community project. Implement Work Plans: Through three meetings the stakeholder group developed goals and priorities for the following areas within East Hill (the complete plans can be seen in the attached Phase I Final Report): • Physical Improvements • Youth and Family Engagement • Economic Development • International Cultural District Phase III will identify key aspects of the work plans that can be accomplished in 6-12 months. Portions of the work plans will be completed by KEHR, while other action items will be completed by other organizations within the East Hill. Our goal is to identify one project that will be viewed as a quick win; some examples of possible projects are pocket parks, street signs, gateway sign and gathering spaces. All of these projects have one thing in common; they are significant and visible. The goal of this task is to fortify this movement with victories that members can identify as key accomplishments. Deliverables: Lead organization and/or business identified for each action item; completion of one action item task in each work plan and the completion of a significant physical and visual community project. KENT Agenda Item: Consent Calendar — 7E TO: City Council DATE: November 20, 2012 SUBJECT: 2013 Water Treatment Chemicals Contract — Authorize MOTION: Authorize the Mayor to sign the 2013 Water Treatment Chemical Supply agreement with ICI Jones Chemicals, Inc. for Gas Chlorine and 25% Sodium Hydroxide, in an amount not to exceed $107,130, and the 2013 Water Treatment Chemical Supply agreement with Cascade Columbia Distribution for Sodium Fluoride and Potassium Permanganate in an amount not to exceed $31,250, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: The City advertises annually for water treatment supply chemicals. The use of these chemicals meets state and federal regulations for drinking water standards. The treatment chemicals are used to treat potable drinking water and improve its quality. Gas chlorine is used to disinfect and protect against contamination, Sodium Hydroxide is used to adjust the pH for corrosion control, Sodium Fluoride is used to help prevent dental cavities in young children, and Potassium Permanganate is used in the removal of iron and manganese to prevent staining of plumbing fixtures (sinks, tubs, etc). EXHIBITS: Proposal Forms for Water Treatment Chemical Supply for 2013 RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: There is no unbudgeted fiscal impact as this is an annual cost which is planned for and budgeted. Funding comes from the Water Utility operating budget. The City advertises for bids to ensure we are receiving the best products at the lowest cost. WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM i The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.1 & 1.6) for the following fees: Bidder's Name: J (51- jonn5 t retqil(n -j., v� C.. Item Estimated Description Bid Unit Total Annual Unit Prices Usage 1 6 Chlorine Gas in One-Ton Containers 1 $ U0000 $ ;�(J00 Ck') TONS* FOB Clark Springs TON CONT. Total $ -3' �0c) ,00 *Estimated annual need is 6 tons. Actual need may vary. r J CS urea N_MiCM JnC. Company Submitting Proposal Authorized Signature Note: Contractor must submit a firm Proposal for the contract term(s)a WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.1 & 1.6) for the following fees: Jul Bidder's Name: '�J Joyyn chanmkj ��l( Item Estimated Description Bid Unit Total Annual Unit Prices Usage 2 5 Chlorine Gas in One-Ton Containers 1 $ VOID $ 3100().00 TONS* FOB Kent Springs TON g�CONT. L s ). 00 �q y� I Total $ *Estimated annual need is 5 tons. Actual need may vary. J7 Tg Company Submitting Proposal p v t. 0 Y Authorized Signature Note. Contractor must submit a firm proposal for the contract term(s). WATER TREATMENT CHEMICAL. SUPPLY FOR 2013 PROPOSALFORM i The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.1 & 1.6) for the following fees: `f/� `,� D 1_ r Bidder's Name: ill bn6 ern1 6qk, --crLc, Item Estimated Description Bid Unit Total Annual Unit Prices Usage 3 1,500 Chlorine Gas in 150 Lb. Containers 150 $, —0D Q® $ -ZC D0D LBS* FOB East Hill Well LB CYL I di �t 'I� rCt�'71�1e8c Total $ 2,1X0. 00 *Estimated annual need is 1,500 lbs. Actual need may vary. Company Submitting Proposal Authorized Signature Note, Contractor must submit a firm proposal for the contract term(s), WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSAL FORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.1 & 1.6) for the following fees: _1 r Bidder's Name: Item Estimated Description Bid Unit Total Annual Unit Prices Usage 4 600 Chlorine Gas In 150 Lb. Containers 150 $2-W-00 $ �) .00 LBS* FOB Armstrong Springs Well #1 LB CYL. �. Total $ OD *Estimated annual need is 600 lbs. Actual need may vary. 301 I Company Submitting Proposal Authorized Signature Mote: Contractor must submit a firm proposal for the contracf ferm(s)o I WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to 9 Y p p p perform the service as specified in this contract (see Special Provisions 1.1 & 1.6) for the following fees: _y r/``_ Bidder's Name: J Fj- �✓T 0Ns Cbe-mi(AkJnC, Item Estimated Description Bid Unit Total Annual Unit Prices Usage 5 300 Chlorine Gas in 150 Lb. Containers 150 $Z(:)() O() $ +DMD LBS* FOB Seven Oaks Well LB CYL. I(?Q.Go de,pubr- COPAi Tota l $ ` ODD *Estimated annual need is 300 lbs. Actual need may vary. i `..J `� 1C.-1 ma, e Txc Company Submitting Proposal Authorized Signature Note., contractor n-just submit a fiercer ProPos'al for the contract term(s). i WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to I perform the service as specified in this contract (see Special Provisions 1.5 & 1.6) for the following fees: i (� Bidder's Name: J )c- � �- ryyy1ICAIS, y)c Item Estimated Description Bid Unit Total Annual Unit Prices Usage 10 96,000 25% Sodium Hydroxide in $ GALS* 4,000 Gal. Deliveries BULK GAL. FOB Pump Station #5 j i f Total $ � `r o,�O 0 - *Estimated annual need is 96,000 Gals. Actual need may vary. i ._)L)0�s u an i ukk-mac Company Submitting Proposal ) 1,a 6VItt'jyA'm Authorized Signature Note., Contractor must submit a firm proposal for the contract tec"l(s)e WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.5 & 1.6) for the following fees: Bidder's Name: ` OT 11bo?s b mica ' -D'Ic I Item Estimated Description Bid Unit Total Annual Unit Prices Usage 11 12,000 25% Sodium Hydroxide in ,0 $q , Q0.00 GALS* 4,000 Gal. Deliveries BULK GAL. FOB East Hill Well Total $ + quo 00 *Estimated annual need is 12,000 Gals. Actual need may vary. t, i I Company Submitting Proposal i Authorized Signature Note. Contractor mast submit a firm proposal for tlae contract term(s), WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.5 & 1.6) for the following fees: Bidder's Name: 'jc,l ..a web Item Estimated Description Bid Unit Total Annual Unit Prices Usage 12 1,000 GALS* 1,0000 to 2,000 Gal. Deliveries BULK GAL. Sodium Hydroxide $ � ' (Iv ✓` FOB 212th Treatment Plant Total / �� �• *Estimated annual need is 1,000 Gals. Actual need may vary. I: i Company Submitting Proposal hmdhauy FYI Authorized Signature Note., Contractor must submit a firm proposal for the contract term(s). WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PR®P®SALF®RM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.5 & 1.6) for the following fees: /� Bidder's Name: J0 l, —Dotc, Item Estimated Description Bid Unit Total Annual Unit Prices Usage 13 8,000 2S% Sodium Hydroxide in $ O, GALS 4,000 Gal. Deliveries BULK GAL. FOB Guiberson Corrosion Facility Total $ (yI CA0. DO *Estimated annual need is 8,000 Gals. Actual need may vary. WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.2 & 1.6) for the following fees: �CR� t Bidder's Name: �01�J�l�lPi "t�S�.l mibw Co , 'l Item Estimated Description Bid Unit Total Annual Unit Prices Usage 7 6 40,000 Sodium Fluoride in 50 Lb. Bags $ .J�z $ ��i , 00 LBS* FOB Clark Springs LB I f� I Total $ 2-� MO 0 *Estimated annual need is 40,000 lbs. Actual need may vary. i i i II Company ubmitting Proposal I' Autho ' ignature Note. Contractor mustsubmit a firm proposal for the contract terrn(s)a WATER TREATMENT CHEMICAL SUPPLY FOR 2013 PROPOSALFORM The undersigned hereby proposes to provide all equipment, labor, materials and supplies to perform the service as specified in this contract (see Special Provisions 1.4 & 1.6) for the following fees: Bidder's Name: cm cw(� ro 1 UU1GM o0 S IYV.eo-oW cc Item Estimated Description Bid Unit Total Annual Unit Prices Usage 9 1,000 PotaMt. ' rmanganate in $ ,(5 $ 2� 00 LBS* 50 toDrums LB FOB Treatment Plant f i I I Sub Total $ 21470 . (DO i 9.5% WA State Sales Tax $ 232 ' -7� Total $ 2 ;�� c� 2. 7 ' *Estimated annual need is 1,000 lbs. Actual need may vary. Co mpa y Submitting Proposal Autoriz d Signatur Note. Contractor must submit a firm proposal for the contract term(s). w," Agenda Item: Consent Calendar — 7F TO: City Council DATE: November 20, 2012 SUBJECT: James Street Pump Station Geotechnical Services Contract — Authorize MOTION: Authorize the Mayor to sign a consultant services agreement with GeoEngineers, Inc. to develop geotechnical engineering recommendations related to the design and construction of the proposed James Street Pump Station in an amount not to exceed $19,309, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: The City's James Street Stormwater Pump Station is located just north of James Street near Woodford Ave North. This pump station cannot keep up with existing flows on James Street and needs to be replaced. GeoEngineers, Inc. was selected to conduct subsurface explorations and laboratory testing as a basis for developing geotechnical design recommendations related to design and construction of the project. This new pump station will help alleviate local flooding of James Street at Mill Creek. Geotechnical engineering is highly specialized work that includes drilling to depths of 40 feet and performing laboratory tests on excavated soils. EXHIBITS: Consultant Services Agreement RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: This contract is budgeted and will be paid through the stormwater utility. e ' � T CONSULTANT SERVICES AGREEMENT between the City of Kent and GeoEngineers, Inc. THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and GeoEngineers, Inc. organized under the laws of the State of Washington, located and doing business at 1101 S. Fawcett Ave., Suite 200, Tacoma, WA 98402, Phone: (253) 383-4940/Fax: (253) 383-4923, Contact: Lyle Stone (hereinafter the "Consultant"). I. DESCRIPTION OF WORK. Consultant shall perform the following services for the City in accordance with the following described plans and/or specifications: The Consultant shall provide geotechnical services for the James Street Pump Station Project. For a description, see the Consultant's Scope of Work which is attached as Exhibit A and incorporated by this reference. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement. Upon the effective date of this Agreement, Consultant shall complete the work described in Section I by November 30, 2013. III. COMPENSATION. A. The City shall pay the Consultant, based on time and materials, an amount not to exceed Nineteen Thousand, Three Hundred Nine Dollars ($19,309.00), plus applicable Washington State sales tax, for the services described in this Agreement. This is the maximum amount to be paid under this Agreement for the work described in Section I above, and shall not be exceeded without the prior written authorization of the City in the form of a negotiated and executed amendment to this agreement. The Consultant agrees that the hourly or flat rate charged by it for its services contracted for herein shall remain locked at the negotiated rate(s) for a period of one (1) year from the effective date of this Agreement. The Consultant's billing rates shall be as delineated in Exhibit B, CONSULTANT SERVICES AGREEMENT - 1 (Over$10,000) B. The Consultant shall submit monthly payment invoices to the City for work performed, and a final bill upon completion of all services described in this Agreement. The City shall provide payment within forty-five (45) days of receipt of an invoice. If the City objects to all or any portion of an invoice, it shall notify the Consultant and reserves the option to only pay that portion of the invoice not in dispute. In that event, the parties will immediately make every effort to settle the disputed portion. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor-Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A. The Consultant has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. i B. The Consultant maintains and pays for its own place of business from which Consultant's services under this Agreement will be performed. C. The Consultant has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Consultant's services, or the Consultant is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Consultant is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. E. The Consultant has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by Consultant's business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Consultant maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party thirty (30) days written notice at its address set forth on the signature block of this Agreement. After termination, the City may take possession of all records and data within the Consultant's possession pertaining to this project, which may be used by the City without restriction. If the City's use of Consultant's records or data is not related to this project, it shall be without liability or legal exposure to the Consultant. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Consultant, its subcontractors, or any person acting on behalf of the Consultant or subcontractor shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. Consultant shall execute the attached City of Kent Equal Employment CONSULTANT SERVICES AGREEMENT - 2 (Over$10,000) Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. VII. INDEMNIFICATION. Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Consultant's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Consultant's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, agents and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event Consultant refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Consultant's part, then Consultant shall pay all the City's costs for defense, including all reasonable expert witness fees and reasonable attorneys' fees, plus the City's legal costs and fees incurred because there was a wrongful refusal on the Consultant's part. The provisions of this section shall survive the expiration or termination of this Agreement. VIII. INSURANCE. The Consultant shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit C attached and incorporated by this reference. IX. EXCHANGE OF INFORMATION. The City will provide its best efforts to provide reasonable accuracy of any information supplied by it to Consultant for the purpose of completion of the work under this Agreement. X. OWNERSHIP AND USE OF RECORDS AND DOCUMENTS. Original documents, drawings, designs, reports, or any other records developed or created under this Agreement shall belong to and become the property of the City. All records submitted by the City to the Consultant will be safeguarded by the Consultant. Consultant shall make such data, documents, and files available to the City upon the City's request. The City's use or reuse of any of the documents, data and files created by Consultant for this project by anyone other than Consultant on any other project shall be without liability or legal exposure to Consultant. XI. CITY'S RIGHT OF INSPECTION. Even though Consultant is an independent contractor with the authority to control and direct the performance and details of the work CONSULTANT SERVICES AGREEMENT - 3 (Over$10,000) authorized under this Agreement, the work must meet the approval of the City and shall be subject to the City's general right of inspection to secure satisfactory completion. XII. WORK PERFORMED AT CONSULTANT'S RISK. Consultant shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. XIII. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties' performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. If the non-assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Consultant. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or CONSULTANT SERVICES AGREEMENT - 4 (Over$10,000) other representative f City,o the and such statements shall not be effective or be construed as y, entering into or forming a part of or altering in any manner this Agreement, All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Compliance with Laws. The Consultant agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Consultant's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. I. Counterparts, This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. CONSULTANT: CITY OF KENT: By: By: (signature) (signature) Print Name: Print Name: Suzette Cooke Its Its Mayor (title) DATE: DATE: L — r NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: CONSULTANT: CITY OF KENT: Lyle Stone Timothy J. LaPorte, P.E. GeoEngineers, Inc. City of Kent 1101 S. Fawcett Ave., Suite 200 220 Fourth Avenue South Tacoma, WA 98402 Kent, WA 98032 (253) 383-4940 (telephone) (253) 856-5500 (telephone) (253) 383-4923 (facsimile) (253) 856-6500 (facsimile) APPROVED AS TO FORM: i i Kent Law Department GeoEngineers-0ame5 PS/Casfeel ', CONSULTANT SERVICES AGREEMENT - 5 (Over$10,000) DECLARATION CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY POLICY The City of Kent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City's equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will be at the City's sole determination regarding suspension or termination for all or part of the Agreement; i The questions are as follows: i 1. I have read the attached City of Kent administrative policy number 1.2. 2. During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity IL employer. 4. During the time of the Agreement I, the prime contractor, will actively consider hiring and promotion of women and minorities. 5. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, I agree to fulfill the five requirements referenced above. Dated this day of 20_. By. For: Title: Date: EEO COMPLIANCE DOCUMENTS - 1 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor POLICY: Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. I Any contractor, subcontractor, consultant or supplier who willfully disregards the City's nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City's equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. EEO COMPLIANCE DOCUMENTS - 2 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1,2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. Dated this day of 20 By: For: Title: Date: EEO COMPLIANCE DOCUMENTS - 3 I E%HIBITA SCOPE OF SERVICES GEOENGINEERS, INC. PROPOSED JAMES STREET PUMP STATION KENT,WASHINGTON FILE NO. 0410-184.00 SCOPE OF SERVICES - GEOTECHNICAL The purpose of our services is to conduct subsurface explorations and laboratory testing as a basis for developing geotechnical design recommendations related to the design and construction of the proposed James Street Pump Station in Kent, Washington. We understand that a storm sewer pump station will be constructed at 740 Woodford Avenue North, northeast of the Intersection of East James Street and Woodford Avenue North. The site is located about 100 to 150 feet west of Mill Creek. I The pump station will include a vault consisting of three 10-foot-diameter concrete manholes connected with 6-foot-diameter concrete pipe. The vault base will be about 20 feet below existing site grades. The pump station will be operated using an electric pump with a back-up generator and an on-site fuel source. Up to 4 feet of fill will be placed to establish planned grades. The site will be surfaced with gravel and an asphalt concrete paved road will provide access. Roof structures will be constructed over the pump and generator. The roof structures will be supported on shallow pier foundations. Our geotechnical scope of services in support of design will include the following items: 1. Review existing soil and groundwater information, including select in-house reports and published geologic maps, 2. Conduct a site visit prior to subsurface explorations to coordinate exploration locations and site safety issues. 3. Coordinate clearance and location of existing underground utilities in the project area. We will contact the Washington Utilities Coordinating Council "One Call" service prior to beginning explorations. We will also retain a private utility locate service to check for underground utilities at the site. 4. Drill two borings to depths of 40 feet below ground surface (bgs) using hollow stem auger drilling - techniques. We will install monitoring wells in both of the explorations. We will also install an electronic piezometer in one of the wells. The electronic plezometer will collect and store groundwater level data from multiple readings per day. 5. Complete laboratory analysis of select soil samples. We anticipate that our laboratory program will consist of grain-size analyses and moisture content determinations. 6. Provide at least two rounds of groundwater monitoring. We will measure groundwater levels in the wells during Installation to provide data for our design report. We will also retrieve groundwater data from the electronic piezometers and measure levels again prior to construction bidding to provide more up-to-date groundwater information for contractors prior to bid. i i Clly of Hoot October 25,2012 Page 2 7. Provide a discussion of temporary shoring and dewatering. We are assuming that the dewatering and shoring system will be designed by the contractor. We will provide a general discussion of shoring and dewatering issues at the site and comment on the feasibility of different shoring and dewatering methods. We will also provide lateral earth pressures for the design of shoring systems and an order of magnitude estimate of dewatering quantities. S. Provide recommendations for pipe bedding, pipe support and excavation backfill. We will provide recommendations for imported fill, reuse of on-site soil as appropriate and compaction requirements. 9. Provide recommendations for fill placement and compaction on the surface of the site. We will include recommendations for imported fill and compaction requirements. 10. Provide recommendations for shallow foundations and small drilled pier foundations for support of equipment pads and roof structures. We will discuss bearing surface preparation and shallow drilled pier construction. We will also provide design criteria, including allowable soil bearing pressures and allowable lateral resistance values for the design of foundation elements. 11. Complete buoyancy calculations on the proposed underground structures based on measured L groundwater levels and the provided dimensions and weight of the structure. We will provide a discussion of methods for restraining the structure if buoyancy is determined to be a problem. 12. Prepare a gcotechnical design report presenting the results of our explorations and summarizing our findings and recommendations. We anticipate this report will be available three weeks after site explorations are complete. We will also prepare a brief technical memorandum presenting the second round of groundwater monitoring data and revising our recommendations if appropriate. This memorandum will be provided during the spring or summer, after winter groundwater levels have been measured. 13. Provide additional consultation as required and requested. We anticipate that this could include meetings or plan review. We have budgeted 6 hours for a project engineer to cover this contingency. Our scope and budget does not include any construction management, monitoring or inspections. We will provide a scope and budget for these services upon request. us:Gns.tt Attachment: Exhibit B-1.Fee Estimate I Duclalmec Any elome n e form,facsimile or hard cagy of the original document(emall,text,Lucie,and/or figure),if provided,and any attachments are only a '.. COPY onto)original document.The original document is stared by GooBnginecr,hlo,and will serve as the official dravm mt of record. i GMENGINEkR5 ni-no.oaw.laa co j i i EXHIBIT FEE: EST I IM NI° CITY OF KENT ENGINEERING DEPARTMENT GEOTECHNICAL ENGINEERING SERVICES PROPOSED JAMES STREET PUMP STATION KENT,WASHINGTON FILE NO. 0410-184-00 Classification Hours x Rate = Cost '.. Principal(GarrySquires) 6 x $200.00 — $1,200.00 Project Engineer 2(Lyle Stone) 48 x $150.00 = $7,200.00 Staff Engineer 1(Various) - 24 x $100.00 $2,400.00 Support 8 x $85.00 = $680.00 Subtotal Personnel $11,480.00 Other Expenses '. Subcontracted Drilling $6,350.00 Private Utility Location Services $230.00 Laboratory(6 Sieve Analyses and 4 Moisture Content Determinations) $674.00 Expendables(Mileage,electronic piezometer,etc.) $675.00 I Subtotal $7,829.00 I Total Estimated Costs - $19,309.00 1 'I k I i i L File No.0410-184-00 - octobei 25.201Z �.7 i=.00 :ING 1 N F E H S //,r� EXHIBIT C INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTS Insurance The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage, If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $1,000,000 products-completed operations aggregate limit. EXHIBIT C Continued 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Consultant's insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it. 2. The Consultant's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Consultant's Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Consultant. KENT Agenda Item: Consent Calendar — 7G TO: City Council DATE: November 20, 2012 SUBJECT: James Street Pump Station Contaminated Soil Cleanup Contract — Authorize MOTION: Authorize the Mayor to sign a contract with A Plus Removal and Recycling for removal and disposal of contaminated soils for the construction of the proposed James Street Pump Station in an amount not to exceed $16,734, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: The City's James Street Stormwater Pump Station is located just north of James Street, near Woodford Ave North. This pump station cannot keep up with existing flows on James Street and needs to be replaced. The proposed pump station requires the acquisition of additional property to locate the pumps, wet wells, generator, electrical controls and associated piping and shelters. Therefore, the house located at 704 Woodford Avenue was purchased and demolished. The heating oil tank leaked and contaminated soil on site which requires special handling for removal, disposal and subsequent soil sampling of surrounding soil per Department of Ecology regulations. This new pump station will help alleviate local flooding of James Street at Mill Creek. Contaminated soil removal, disposal and soil sampling is highly specialized work. City staff does not possess the specialized skills, licenses or equipment to perform this work. EXHIBITS: Cleanup Scope of Work for Woodford Site Fuel Tank Cleanup RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: This contract is budgeted and will be paid through the stormwater utility. it i Cleanup Scope of work for Woodford Site Fuel Tank Cleanup This work involves the removal of heating oil contaminated soil from the site at 704 Woodford Avenue, encountered during the removal of the previously decommissioned underground fuel tank and removed as part of the structure demolition. It includes all labor, equipment, and materials needed for the excavation of contaminated soil material, hauling and disposal at an approved facility, testing during the excavation process to ensure contamination levels are below those levels allowed by the state guidelines, and the import and placement of clean fill to restore the grade of the site. The cost to perform this work is $16,734.00 KENT Agenda Item: Consent Calendar — 7H TO: City Council DATE: November 20, 2012 SUBJECT: Lower Russell Road Levee Appraiser Contract — Authorize MOTION: Authorize the Mayor to sign the consultant services agreement with The Eastman Company in an amount not to exceed $27,000 to provide property appraisal services for the Russell Road Lower-Lowest Levee, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: The City is currently preparing design plans for the Russell Road Lower-Lowest Levee reach. This levee reach extends from S. 231st St to S. 212th St. The City has identified locations where property needs to be purchased in order to construct the secondary levee. The properties identified include four acquisitions of residential parcels. The City applied for and received a King County Conservation Futures grant in the amount of $400,000 for these property acquisitions. The grant is expected to be awarded early next year after the County's budget is adopted in December. We would like to get the appraiser under contract so appraisals can be prepared and ready once the grant is received. EXHIBITS: The Eastman Company Agreement and Exhibit A RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: Funding for this contract is included in the existing project budget and any reimbursable costs will be billed to the grant. Exhibit A The Eastman Company � Rick Mellen,MAI Real Estate Appraisers/Analysts/Consultants Donald IC,Melton 925 North 130th Street PaulZomtseff Seattle,WA 98133 Mitch Vander Broek Phone(206)363-6611 Carl Bolstad (888)251-2921 Kevin Congleton Fax(206)363-5507 donQwavalne.com October 11,2012 Ms. Ingrid Willms-Dixon City of Kent Public World Design Engineering Kent,WA Re: Appraisal Bid fox the Lower/Lowest Russell Road Levee Project Kent,Washington Dear Ingrid: Thank you for the opportunity to bid ontbe above-referenced assignment.We are interested inproviding appraisal services for the above referenced project.It is my understanding that your require"short form- narrative summary format"WSDOT compliant reports. Our fee for the four total take assignments will be Twelve Thousand Dollars ($12,000). Our fee for the four partial acquisitions (Before/After format) reports will be Fifteen Thousand Dollars ($15,000). It must be noted that the fee for the KOA campground parcel is $6,500 of the total. This is because there may be"Damages" due to the loss of access and the loss ofrental spaces withinthe KOA camping area,If there areno"Damages"the appraisal fee will be reduced accordingly. The total for all eight parcels will not exceed Twenty Seven Thousand Dollars ($27,000). The specific completion date depends on when the assignment is actually awarded, and when all necessary information is provided(title reports,plans andmaps,etc...). I see no problems in meeting your proposed 6 week "turn-around" time frame. If you have any questions about this bid, please do not hesitate to call me at 206.363.6611. Sincerely, Donald K. Melton, president The Eastman Company I i i KENT Agenda Item: Consent Calendar - 7I TO: City Council DATE: November 20, 2012 SUBJECT: Lower Russell Road Levee Negotiator Contract - Authorize MOTION: Authorize the Mayor to sign the consultant services agreement with Certified Land Services Corporation in an amount not to exceed $72,708 to provide property acquisition services for the Russell Road Lower-Lowest Levee, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: The City is currently preparing design plans for the Russell Road Lower-Lowest Levee reach. This levee reach extends from South 231't Street to S. 212th Street. The City has identified locations where property needs to be purchased in order to construct the secondary levee. The properties identified include four full property acquisitions of residential parcels. The City applied for and received a King County Conservation Futures grant in the amount of $400,000 for these pro- perty acquisitions. The grant is expected to be awarded early next year after the County's budget is adopted in December. We would like to get the appraiser, negotiator and other consultants under contract so appraisals can be prepared and ready for the negotiations once the grant is received. EXHIBITS: Scope of Work and Cost Estimate RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: Funding for this contract is included in the existing project budget and any reimbursable costs will be billed to the grant. L A N D S E R V I C E S C O R P O R A T I O N SCOPE OF WORK AND COST ESTIMATE: Lower and Lowest Russell Road Levee Project Project Overview. The project consists of acquiring 2 commercial properties in partial takes in fee and slope easement, 4 residential full take in fee and 1 residential slope easement only parcel. Name Total Fee Ptl Fee Easement. Slope Relocation Take Take Easement Voss X X Tor eson X X Baxter X X Hamilton X X Noble Pacific X X Rec Adventures X X Ga liard X There are 2 residential relocations. We believe one parcel is rented requiring a tenant relocation and a landlord relocation. The second parcel may be owner occupied, but it may be in the process of being rented, so for the purpose of this scope of work and cost estimate we will consider it owner occupied and amend the scope of work and cost estimate when we have made contact with the occupants. All work will be done in compliance with strict adherence to Federal Highways Administration policies and procedures as well as all applicable federal, state and local laws including, but not limited to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and its amendments, 49CFR Part 24, and state Revised Statutes. Work will be in accordance with the WSDOT Local Agencies Guidelines and by reference the WSDOT Right of Way Manual. CERTIFIED will work closely with all project stakeholders including project managers and staff, engineering project managers and designers, property owners and their representatives and the public. 10-22-12 L A N D S E R V I C E S C O R P O R A T I O N SCOPE OF WORK AND COST ESTIMATE: Lower and Lowest Russell Road Levee Project TASKS Task 1 - Project Management Assumptions: • The City will act as general right of way project manager. • CERTIFIED will provide staff management/advisory time for its staff, but will not consider itself in any way the Project Manager for the project, 1.1.1 Prepare and submit a monthly progress report that will include identification of work performed in the previous month's schedule, measures for mitigating schedule slippage, if necessary, and identification and discussion of potential problems that may arise, including issues resolution. 1.1.2 Post on line and/or e-mail status reports and complete document files for PRIME review and real time access of status reports and diaries. 1.1.3 Manage quality in coordination with the City's Project Manager. 1.1.4 Submit detailed monthly invoices. 1.1.5 CERTIFIED will attend a kick-off meeting with the City. Task 2 — Preparation Assumptions: • CERTIFIED staff will review all documents, files, maps, title reports, legal descriptions and other information provided. Errors, questions and clarifications will be reviewed and discussed. Task 3 - Appraisal Assumptions: • The City will provide appraisals, appraisal reiews and will set just compensation. Task 4 — Administrative Assumptions: • All forms and conveyance documents will be WSDOT templates, or as preferred and provided by the City. 4.1.1 The City will provide signature ready legal documents and offer packages for all parcels. 4.1.2 The City will provide title commitments for each parcel with Schedule B showing exceptions listed. 4.1.3 The City will provide all legal descriptions. 4.1.4 The City will provide approved right of way and or exhibit maps for the project. 4.1.5 CERTIFIED staff will maintain all records, files, documents and reports in accordance with statutory and WSDOT guidelines and regulations, 4.1.6 CERTIFIED will provide the City with written status reports on a weekly basis and will provide verbal status reports on demand, as requested. Task 5 - Negotiation Assumptions: • CERTIFIED agents will act in good faith at all times. • CERTIFIED staff will never coerce owners in an attempt to settle parcels. 10-22-12 L A N D S E R V I C E S C O R P O R A T I O N SCOPE OF WORK AND COST ESTIMATE: Lower and Lowest Russell Road Levee Project • CERTIFIED will provide the City with an Administrative Settlement letter for all requested administrative settlements. • CERTIFIED staff will work whatever hours are necessary, including evenings and weekends, to make themselves available to owners and their representatives. 5.1.1 CERTIFIED will prepare offer letters for all parcels. 5.1.2 CERTIFIED agents will make at least 3 personal contacts with each owner with the intent of reaching settlement for the conveyance of property or property rights needed from each parcel. As many contacts as needed to reach settlement will be made, until it is mutually agreed between the AGENCY and CERTIFIED that negotiations should be suspended or given to the AGENCY Attorney to pursue eminent domain actions. 5.1.3 CERTIFIED staff will explain the AGENCY's offer verbally and in writing. 5.1.4 CERTIFIED staff will provide detailed written diaries for each parcel. 5.1.5 CERTIFIED staff will transmit organized parcel files containing all pertinent information, documents, forms, diaries, and Disclaimer Statements. 5.1.6 CERTIFIED staff will prepare a condemnation summary memo for any parcel that the AGENCY deems it is necessary to acquire through the exercising of its power of eminent domain. Task 7 — Relocation Assumptions: • There will be 4 residential relocations. 1 is tenant occupied with a landlord relocation ad 1 is owner occupied. Occupants and relocation needs will be confirmed upon contact with occupants. 7.1.1 CERTIFIED staff will review the relocation plan prepared by the City and act in accordance with it. 7.1.2 CERTIFIED relocation staff will work closely with acquisition staff and the AGENCY in order to perform relocation tasks in a timely manner. 7.1.3 CERTIFIED relocation staff will contact all owners or tenants that are displaced and inform them of their relocation rights and benefits. 7.1.4 CERTIFIED staff will prepare and deliver all relocation notices (at minimum notices are: General Notice of Relocation Rights, 90 Day Notice, Maximum Entitlement Notice). 7.1.5 CERTIFIED staff will survey each displacee and discuss their relocation issues, concerns and schedules. 7.1.6 CERTIFIED staff will determine each displacee's maximum relocation entitlement, and have the AGENCY review and approve this amount prior to informing displacees. 7.1.7 CERTIFIED staff will prepare moving cost estimates and other forms appropriate for the parcel. 7.1.8 CERTIFIED staff will provide relocation advisory assistance as needed and as directed by the AGENCY. 7.1.9 CERTIFIED staff will monitor each move and notify the AGENCY in writing when the property has been vacated. 7.1.10 CERTIFIED staff will work whatever hours are necessary, including evenings and weekends, in order to make themselves available to owners and their representatives. 10-22-12 Ng G E } R L A N D S E R V I C E S C O R P O R A T I O N SCOPE OF WORK AND COST ESTIMATE: Lower and Lowest Russell Road Levee Project 7.1.11 CERTIFIED staff will provide detailed written diaries for each parcel. 7.1.12 CERTIFIED staff will transmit organized parcel files containing all pertinent information, documents, forms, and diaries. CERTIFIED staff will coordinate payment and delivery of checks with the AGENCY as requested. Task 8 — Title Review and Clearance/Closing Assumptions: • The City will clear title on all parcels. • AGENCY will pay for title reports, escrow fees (closing/clearing), any fees required to obtain partial reconveyances and/or clear monetary encumbrances including any fees for services such as specialized title clearance fees, lender and/or attorney fees for review and/or processing, and recording fees. 8.1.1 CERTIFIED will provide the AGENCY with complete files at the close of negotiations for each parcel. Included in our transmittal packages will be conveyance documents ready for the AGENCY to record. Task 9 — Project Turnover Assumptions: • CERTIFIED will, at the completion of acquisition and certification, present the AGENCY with a comprehensive package containing all pertinent project information. 10-22-12 L A N D S E R V I C E S C O R P O R A T I O N SCOPE OF WORK AND COST ESTIMATE: Lower and Lowest Russell Road Levee Project COST ESTIMATE This proposal is based on charging only for those hours worked. The outline of tasks and hours provided above are a guide to our understanding and approach to work. PRO]ECT MANAGEMENT Senior Project Manager: 17 hours @ $154 per hour = $2,618 (Based on 8 hours for each full fee take parcel, 4 hours each partial take fee parcel and 1 hours each slope easement parcel.) NEGOTIATION Senior Acquisition Agent: 412 hours @ $95 per hour = $39,140 (Based on 36 hours each fee parcel and 16 hours each permanent slope easement parcel.) Administrative Support: 10 hours @ $65 per hour = $650 AELOC,T' O'N . . Senior Relocation Agent: 250 hours @ $110 per hour = $27,500 (Based on 60 hours per tenant or owner occupied residential relocation and 10 hours per landlord relocation. TITLE'CEARANCf To be completed by the City. TITLE REPORTS{PAYMENTrTO OWNERS^ Title Reports will be provided by the City and are not included in this cost estimate. The overall project scope of work calls for the City to pay directly for any escrow services and payments of just compensation to the property owners. APPRAISAL Appraiser is to be hired by the City; therefore, appraisal cost estimates are not included in this cost estimate. APPRAISAL REVIEW Appraisal reviewer is to be hired by the City; therefore, appraisal review cost estimates are not included in this cost estimate. ADMINISTRATIVE SUPPORT Administrative Support: 20 hours @ $65.00 per hour = $1,300 REIM BU RSADLES In addition to the above costs, reimbursable costs such as mileage, postage, phone and fax charges, or other reasonable costs will be billed at straight cost. Estimated Reimbursables = $1,500 TOTAL ESTIMATED COSTS = $72,708 NOTE: IT IS OUR COMMITMENT TO PROVIDE YOU WITH EFFECTIVE AND COST EFFICIENT SERVICE. SINCE WE WERE ASKED TO PROVIDE A NOT TO EXCEED COST ESTIMATE, WE HAVE PROVIDED THIS ESTIMATE FOR YOUR 10-22-12 KENT Agenda Item: Consent Calendar - 73 TO: City Council DATE: November 20, 2012 SUBJECT: Milwaukee II Levee Geotechnical Engineering Services Contract - Authorize MOTION: Authorize the Mayor to sign the consultant services agreement with GeoEngineers, Inc. to provide Geotechnical Engineering Services for the Milwaukee II Levee Project in an amount not to exceed $52,001, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: The Milwaukee II levee is located along S. 259th Street between 3rd Ave. S. and the Union Pacific Railroad tracks. Even though this area of south Kent is above the 100-year flood level, it is not high enough to meet Federal Emergency Management Agency (FEMA) freeboard standards and therefore, due to the lack of natural high ground, we will not be able to accredit any of our levees downstream of this levee segment. In order to complete this missing gap in the levee system, the City will be constructing a secondary levee consisting primarily of a flood wall. A flood wall was selected over an earthen berm in order to limit the business impacts and amount of property acquisition required. This wall will be a continuation of the wall currently being constructed on the Horseshoe Bend Levee between lst Ave. S. and 3rd Ave. S. GeoEngineers performed the geotechnical analysis and certification report for the Horseshoe Bend Levee from the east end to 3rd Avenue and also Foster Park. EXHIBITS: Exhibit A, Scope of Work and Exhibit B, Fee Estimate RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: The cost of this design work will be billed to the stormwater utility. EXHIBIT A GEOENGINEERS, INC. HORSESHOE BEND AND FOSTER PARK LEVEE CONNECTION DESIGN,ANALYSIS, AND CERTIFICATION GREEN RIVER, FROM UPRR TO 3Ro AVENUE KENT,WASHINGTON OCTOBER 2, 2012 FILE NO. 0410-172-07 INTRODUCTION The purpose of the project is to connect the existing Foster Park Levee with the new improvements to the Horseshoe Bend Levee, currently under construction. The preliminary alignment indicates that the project will consist of levee walls totaling about 1,100 linear feet, raising portions of 1st and 3rdAvenues, and constructing retaining walls at grade changes. The purpose of our services will be to conduct subsurface explorations as a basis for developing design recommendations and completing analysis for the certification of levees. We anticipate two general work phases in our approach: Develop preliminary recommendations for the design and construction of retaining walls and levee floodwalls. The purpose of these preliminary recommendations will be to assist the City of Kent in the design and layout of the levee components so they may be incorporated into the final road and levee design. Once a final levee layout is determined we will complete a more detailed analysis of the levee sections for inclusion in the Levee Analysis and Certification reports completed for the Foster Park and Horseshoe Bend Levees. SCOPE OF SERVICES Our specific geotechnical scope of services for the Horseshoe Bend and Foster Park Levee Connection Design includes: 1. Review existing information, including in-house reports, reports by others provided by the City of Kent and appropriate Federal Emergency Management Agency (FEMA) and U.S. Army Corps of Engineers (USACE)documents. 2. Conduct a site visit prior to subsurface explorations to coordinate exploration locations and site safety issues with the design team. 3. Coordinate clearance and location of existing underground public utilities in the project area. We will contact the Washington Utilities Coordinating Council "One Call" service prior to beginning explorations. We request that City of Kent personnel confirm that exploration locations are clear from potential damage to City-owned underground utilities. City of Kent October 2,2012 Page 2 - 4. Complete three Cone Penetration Test (CPT) soundings to 50 feet along the levee alignment. The explorations will be completed on existing City of Kent right-of-way. We understand permitting and site access coordination for explorations will be completed as necessary by the City of Kent. 5. Provide recommendations for the design and construction of levee walls. We will address levee T-walls and levee kwalls. We will provide allowable bearing pressures, lateral earth pressures, and hydrostatic uplift pressures. Structural design will be completed by others. 6. Provide recommendations for the design and construction of retaining walls. We will provide and design soil properties for design of proprietary structural earth walls. We will also provide recommendations for incorporating retaining walls into earth berm levees. 7. Complete stability and seepage analyses for proposed levee cross sections under each of the following conditions: end of construction, steady state seepage during full flood stage, sudden drawdown, and seismic conditions. Stability analysis will be based in part on survey data provided by the City of Kent and hydraulics information. We anticipate developing eight design cross sections. 8. Attend meetings with City of Kent and the design team or FEMA to coordinate geotechnical engineering and civil engineering design with the City of Kent and assist with levee certification. 9. Incorporate this analysis into the Levee Certification Reports previously prepared for Foster Park and Horseshoe Bend Levees. Our report will be part of the submittal to FEMA. 10. Review plans related to the flood barrier prepared by us and the City of Kent as required for the submittal to FEMA. 11. Assist the City of Kent in revising the Horseshoe Bend and Foster Park Levee Operations and Maintenance manual, MT2 forms and other parts of the submittal as needed. 12. Address any comments and revise submittal as needed. This includes coordination with the City of Kent, King County, other consultants on the design team, and FEMA to incorporate necessary revisions into the submittal of the final report. Our scope does not include a detailed finite element analysis of earthquake induced liquefaction or displacement and is not expected to be necessary. This scope also does not include any construction management, monitoring or inspections. U5:GWH:tt Attachment: Exhibit S.Fee Estimate Disclaimer:Any electronic form,facsimile or hard copy of the Original document(email,text,table,and/or figure);if provided,and any attachments are only a copy of the original document.The original document is stored by GertEngineers,Inc.and will serve as the official document of record. Copyright©2012 by GnEnginmus,Inc. All rights reserved. GEOENGINEER one r•:o.can.;i.r2-r,r EXHIBIT B-1 FEE ESTIMATE CITY OF KENT GEOTECHNICAL ENGINEERING SERVICES HORSESHOE BEND&FOSTER PARK CONNECTION LEVEE GREEN RIVER,FROM UPRR TO 3"AVENUE KENT,WASHINGTON FILE NO.0410-172-07 Personnel Hours Direct Rate Overhead 211.8% Profit@30% Total Hourly Rate = Cost Principal(Gary Henderson) 60 $61,21 $129.64 $18,36 $209.22 $12,552.95 Project Engineer 2(Lyle Stone) 110 $38,03 $80,55 $11,41 $129.99 = $14,298.52 Engineer 80 $33.08 $70.06 $9.92 $113.07 = $9.045.40 Engineer 60 $30.20 $63.96 $9.06 $103.22 $6,193.42 CAD Designer 30 $29,96 $63,46 $8.99 $102.40 = $3,072.10 Support 30 $25,00 $52.95 $7.50 $85,45 = $2,563.50 Subtotal Personnel Cost(direct costs) $47,726 Other Expenses Subcontracted CPTs $2,900 Reproduction.Mileage,other Expenses $1,375 Subtotal(indirect costs) $4,275 Total Estimated Costs $52,001 File No.0410�172-07 October 17.2012 G EO E NG I N E ERS KENT Agenda Item: Consent Calendar - 7K TO: City Council DATE: November 20, 2012 SUBJECT: Milwaukee II Levee Structural Design Engineering Services Contract - Authorize MOTION: Authorize the Mayor to sign the consultant services agreement with AECOM for the structural design of the flood walls for the Milwaukee II Levee Project in an amount not to exceed $27,188.12, subject to final terms and condi- tions acceptable to the City Attorney and Public Works Director. SUMMARY: The Milwaukee II levee is located along S. 259th Street between 3ra Ave. S. and the Union Pacific Railroad tracks. Even though this area of south Kent is above the 100-year flood level, it is not high enough to meet Federal Emergency Management Agency (FEMA) freeboard standards and therefore, due to the lack of natural high ground, we will not be able to accredit any of our levees downstream of this levee segment. In order to complete this missing gap in the levee system the City will be constructing a secondary levee consisting primarily of a flood wall. A flood wall was selected over an earthen berm in order to limit the business impacts and amount of property acquisition required. This wall will be a continuation of the wall currently being constructed on the Horseshoe Bend Levee between lst Ave. S. and 3ra Ave. S. AECOM performed the structural engineering design for the levee retaining walls for the Horseshoe Bend and Boeing levee walls currently under construction. EXHIBITS: Exhibit A, Scope of Work RECOMMENDED BY: Public Works Committee BUDGET IMPACTS: The cost of this design work will be billed to the stormwater utility. City of Kent AZ.-COM Scope of Work-Exhibit A DRAFT EXHIBIT A SCOPE OF WORK for Milwaukee II Floodwall The scope work is to provide final design services and contract documents for the Milwaukee II floodwall extending from 3ftl Ave to the neighboring UPRR track along the Horseshoe Bend Levee. The scope includes; analysis, design, drawing preparation, estimating, specifications, and assistance during the bid period for the floodwall. The plans and specifications will be sealed and signed by a professional engineer upon completion of contract documents. Scope also includes coordination with City of Kent and other consultants working on this project. FINAL DESIGN The services listed below represent the Consultant's understanding of the work to be completed in order to provide bid documents to the City for advertisement of the Project. This scope of services is based on direction from the City. The Consultant shall actively coordinate floodwall aspects of the work for the assignment, identify and resolve issues in a timely manner, and communicate effectively. The Consultant shall be responsible for the performance of scoped services, and shall furnish materials and information to accomplish the work tasks described herein. The Consultant will actively coordinate with other consultants performing work on this project. The Consultant and the City agree that the City may use City forces to perform tasks listed in this Scope and that some tasks may not be required and the contract dollar amount will be adjusted accordingly. I. PROJECT OBJECTIVES AND DESCRIPTION The objectives of the Milwaukee II Project, hereinafter referred to as the Project, are to: 1. Provide flood protection to the City of Kent, in the area of the Green River known as the Horseshoe Bend between 3ftl Ave to the neighboring UPRR track. 2. The project will include new berms (by others), floodwall, floodwall opening closures, and a storage building. 3. Minimize construction impacts to the public. The Work consists of providing final design services for the described floodwall of the Project. The City of Kent will layout the wall location. The height of the wall will be about three feet above the 500 year flood elevation. Consultant effort will include the following items: 1. Task Management and Coordination with City and other consultants 2. Site Visit for Designers 3. Analysis and Design for Sheet Pile wall and Plan Preparation 4. Design of closures for two wall openings 5. Design of one storage building for wall closures gear 6. Specifications 7. Quantities and Opinion of Cost 8. Compiling Deliverables 9. Responding to Review Comments draft Milwaukee 2 Floodwall scope 20121023 v0.docx Page 1 of 8 City of Kent AXOM Scope of Work-Exhibit A DRAFT 10. Bid Period Assistance II. DESIGN CRITERIA All documents prepared under the terms of this AGREEMENT shall be developed in accordance with the latest edition and amendments of the following: City of Kent: 1. Road Standards 2. Standard drawings and sample documents prepared by the City and furnished to the Consultant shall be used as a guide in all applicable cases WSDOT Publications: 1. Standard Specifications for Road, Bridge, and Municipal Construction, English Edition, 2012 (M41-10) 2. Standard Plans for Road, Bridge, and Municipal Construction, English edition (M21-01) 3. Design Manual (M22-01) 4. Bridge Design Manual, (M23-50) 5. Plans Preparation Manual (M22-31) 6. Construction Manual (M41-01) 7. Local Agency Guidelines Manual American Association of State Highway and Transportation Officials(AASHTO) Publications: 1. Standard Specifications for Highway Bridges, AASHTO LRFD Bridge Design Specifications, Customary U.S. Units, 4h Edition with 2008 Interim Revisions 2. Guide for the Development of Bicycle Facilities, 1999 3, A Policy on Geometric Design of Highways and Streets, 51h Edition, 2004 ('Green Book') U.S. Department of Transportation, Federal Highway Administration(FHWA): 1. Manual on Uniform Traffic Control Devices for Streets and Highways USACE and Other Publications: 1. EC (Engineering Circular) 1110-2-6052, Structural Design of Precast and Prestressed Concrete for Offsite Prefabricated Construction of Hydraulic Structures, 1 January 2001 2. EM (Engineering Manual) 1110-2-2104, Strength Design for Reinforced Concrete Hydraulic Structures,August 2003, Change 1 3. EM 1110-2-2105, Design of Hydraulic Steel Structure, March 1993, Change 1, May 1994 4. EM 1110-2-2106, Design of Precast and Prestressed Concrete for Hydraulic Structures, 30 march 08, DRAFT 5. EM 1110-2-2503, Design of Sheet Pile Cellular Structures Cofferdams and Retaining Structures, September 1989 6, EM 1110-2-2504, Design of Sheet Pile Walls, March 1994 7. EM 1110-2-2906, Design of Pile Foundations, January 1991 8. ER (Engineering Regulations) 1110-2-1150, Engineering and Design for Civil Works Projects, August 1999 9. ER 1110-2-1806, Earthquake Design and Evaluation for Civil Works Projects, July 1995 draft Milwaukee 2 Floodwall scope 20121023 v0.docx Page 2 of 8 City of Kent A=Xa Scope of Work-Exhibit A DRAFT 10, EC 1110-2-6066, Engineering and Design: Design of I-Walls 11. American Concrete Institute (ACI), Building Code Requirements for Reinforced Concrete, ACI 318- 02 12. American Institute of Steel Construction (AISC), Manual of Steel Construction Allowable Stress Design, 9" Edition, 1989 13. American Society of Civil Engineers (ASCE), Minimum Design Loads for Buildings and Other Structures, ASCE 7-05, 2005 14. American Welding Society(AWS), Bridge Welding Code,AWS D1.5 2008 15. American Welding Society, Structural Welding Code,AWS D1.1 2008 III. SCHEDULE Design deliverables will be submitted based on the following schedule: Date Consultant Notice to Proceed November 19", 2012 60% Calculations, Plans, Estimate, and Specifications January 8th, 2013 100% Calculations, Plans, Estimate, and Specifications March 8th, 2013 The duration of the reviews by the City and by others is two (2) weeks. The project schedule may be subject to adjustment at mutual agreement, whether initiated by the City or Consultant. IV. DATA AND SERVICES TO BE FURNISHED TO THE CONSULTANT BY THE CITY The City will provide the following items and services to the Consultant that will facilitate the studies and preparation of the documents for work within the limits of the Project. The Consultant is entitled to rely on the accuracy and completeness of this and other data furnished and represented by the City and others, including but not limited to, survey and traffic data. These are: 1. Survey, Base Maps, and complete DTM 2. Plan and Elevation Drawings of Walls 3. Geotechnical Design Parameters 4. Drainage/Hydraulic Information as necessary 5. Secure rights-of-entry as necessary V. INTELECTUAL PROPERTY The documents listed as "Deliverables" in the Detailed Task Description, Section VII of this scope of work, and other exhibits or presentations for the work covered by this AGREEMENT and associated supplements will be furnished by the Consultant to the City upon completion of the various tasks of work. Whether the documents are submitted in electronic media or in tangible format, any use of the materials on another project or on extensions of this project beyond the use for which they were intended, or any modification of the materials or conversion of the materials to an alternate system or format will be without liability or legal exposure to Consultant. The City will assume all risks associated with such use, modifications, or conversions. The Consultant may remove from the electronic materials delivered to the City, all references to the Consultant involvement and will retain a tangible copy of the materials delivered to the City which will govern the interpretation of the materials and the information recorded. Electronic files are considered working files only; the Consultant is not required to maintain electronic files beyond draft Milwaukee 2 Floodwail scope 20121023 v0.docx Page 3 of 8 City of Kent A COM Scope of Work-Exhibit A DRAFT 90 days after the project final billing, and makes no warranty as to the viability of electronic files beyond 90 days from date of transmittal. VI. ABBREVIATIONS The following abbreviations are referred to throughout this scope of work: AASHTO American Association of State Highway and Transportation Officials ASTM American Society for Testing and Materials BA Biological Assessment BDM WSDOT Bridge Design Manual BRAC Bridge Replacement Advisory Committee DAHP Department of Archaeology and Historic Preservation Ecology Washington State Department of Ecology ECS Environmental Classification Summary ESA Endangered Species Act FEMA Federal Emergency Management Agency FHWA Federal Highway Administration H&LP Highways and Local Programs HPA Hydraulic Project Approval JARPA Joint Aquatic Resources Permit Application LRFD Load Resistance Factor Design NEPA National Environmental Protection Act NMFS National Marine Fisheries Service NRHP National Register of Historic Places PS&E Plans, specifications, and estimates SEPA State Environmental Protection Act TS&L Type, Size and Location WDFW Washington State Department of Fish and Wildlife WSDOT Washington State Department of Transportation USACE United States Army Corps of Engineers USFWS United States Fish and Wildlife Service VII.DETAILED TASK DESCRIPTION General Assumptions: 1. The level of effort for each task of work is limited to the amount of labor and expenses indicated in Exhibit A". These costs are itemized in Exhibit 'A" to aid in project tracking purposes only. The budget may be transferred between tasks, provided the total contracted amount is not exceeded. Additional services beyond these limits will be considered Extra Work. draft Milwaukee 2 Floodwall scope 2012 i023 v0.docx Page 4 of 8 City of Kent AZXOM Scope of Work-Exhibit A DRAFT 2. Substantial completion of the project is anticipated to be 5 months after Notice to Proceed. The Consultant is responsible for meeting deadlines for their tasks only, Consultant has no control over those portions of the schedule related to the tasks performed by the City or any third party. 3. Coordination with GeoEngineers for geotechnical design parameters is expected. No other consultant coordination is expected. 4. Subsurface investigation and remedial action associated with hazardous wastes located within the Project limits are not within this scope of services. No hazardous, dangerous, or contaminated soil/ground water is anticipated to be encountered on or within the project limits. Should any of these materials be encountered, addressing the situation will be Extra Work. 5. The analyses, design, plans, specifications, and estimate performed or prepared as part of the Project will be in English units. Metric units will not be used on this Project. 6. The plans will be prepared in accordance with City of Kent Drafting Standards including City of Kent Title Block and Pen/Plot Settings. Final plans shall be stamped and signed and provided to the City in AutoCAD format and on full-size hard copy(22"x 34'). 7. The City has the authority to approve proposed work scope and schedule changes. Task 1. —Management and Coordination: In this task are described those services necessary to plan, perform, and control the various elements of the project so that the needs and expectations of the City will be met. a. Project Management. Provide direction to the design team. Conduct project coordination meetings as required with appropriate task leaders. Monitor the planned versus actual rate of expenditure for each task and take corrective actions if necessary. Collect from each task leader, the percent complete as measured by how much work is left to be accomplished on a task by task basis. Maintain a high exposure to the project team of the issues to be resolved and their potential impacts to the measures of success for the project. b. Communicate Progress. Conduct ongoing, proactive, responsive communications with the City staff involved in the direction and execution of the project. Attend project coordination meeting at the completion of the Design Memo. Coordinate the schedule of the reviews to be performed by the City. Prepare and submit monthly invoices with a brief progress report that will include identification of work performed in the previous month's schedule. c. Quality Assurance/Quality Control. The project manager will implement and conduct AECOM quality control/quality assurance program throughout the project. Assumptions: 1. The Consultant's project manager and/or project engineer will meet with the City's project manager/engineer on as needed basis throughout the project. The assumed number of meetings is shown in the estimate. 2. Internal project team coordination meetings will be held on an as-needed basis during project duration. These meetings will be in addition to the coordination meetings held with the City, but budgeted as part of the specific work tasks. 3. Project meetings may involve other consultants, FEMA, USACE, and UPRR and will require some preparation of meeting materials. City will lead the coordination effort with UPRR. AECOM will support the City on this effort by attending meetings and providing conceptual design and construction alternatives as necessary 4. The budgeted number of meetings is shown on the attached cost estimate. Deliverables: 1. Monthly Invoices and Progress Report (1 copy) draft Milwaukee 2 Floodwall scope 20121023 v0.docx Page 5 of 8 City of Kent AZCOM Scope of Work-Exhibit A DRAFT 2. Written Change Authorizations 3. Meeting preparation and attendance Task 2. - Site Visit: The Consultant will perform the following: The Consultant will conduct a site visit to review the field location of the proposed wall location. Assumptions: 1. All locations are accessible by foot. 2. -Tw t— Deliverables: 1. Field notes and photographs. Task 3.- Structural Design: The Consultant will analyze, design, and prepare plans, details, and specifications for the wall in accordance with City and WSDOT requirements as follows: a. Prepare complete structural calculations for the final design of the wall to be depicted on the plans. A registered Structural Engineer in the State of Washington will seal the cover sheet of the structural calculations. The structural calculations shall include, but are not limited to the following: a. Calculations for hydraulic and earth retaining analysis. b. Analysis of member strength and stresses for critical stages of construction and criteria based load groups. b. Prepare contract plans for construction of the retaining walls. The plans will include the following information for all wall components: c. Wall typical sections d. Dimensions and configurations of structural components. e. Design notes, general notes, and material notes. f. Design details, including steel sheet pile, reinforcing, concrete, or other dependent on wall type. c. Prepare contract plans for construction of two flood gates at driveway breaks in the floodwall. The plans will include the following information for all wall components: g. Structural layout and vertical wall geometry. h. Dimensions and configurations of structural components. i. Design notes, general notes, and material notes. d. Prepare contract plans for construction of one storage building for the wall closure apparatus. Assumptions: 1. Final design of the structures on the Project will be in accordance with the established design criteria. 2. Wall design will be similar to the design submitted by AECOM to the City for the Horseshoe Bend Levee improvements project. draft Milwaukee 2 Floodwall scope 20121023 v0.docx Page 6 of 8 City of Kent Q Scope of Work-Exhibit A DRAFT 3. A registered Structural Engineer in the State of Washington will seal the final 100% contract plans. 4. Refer to the Level of Effort Estimate for the assumed number of plan sheets that will be required for the wall, gates, and building Deliverables: Structural Plan sheets Final Structural Calculations Task 4.— Special Provisions for Floodwall: The Consultant will compile the specified general special provisions, amendments, and Special Provisions from the above sections according to the WSDOT/APWA Standard Specifications, English. The Consultant will prepare a Bid Schedule for the wall. Special Provisions and bid schedule will be included in the 60 percent and 100 percent submittals. The Consultant will review the Contract Provisions for the Project prepared by the City and provide comments and revisions as necessary. Assumptions: 1. The Consultant will prepare only special provisions and bid schedule for the floodwall. The City will be responsible for assembling the entire specification package. 5. Special provisions will be similar to those submitted by AECOM to the City for the Horseshoe Bend Levee improvements project. 2. Electronic copy of submittals will be in Microsoft Word or Excel. Deliverables: Special Provisions at 60 percent submittal Special Provisions at 100 percent submittal Bid Items Reviewed and marked up copy of Contract Provisions prepared by the City Bid schedule Task 5. — Compile Quantities and Prepare Opinion of Probable Cost for the Wall: The Consultant will compile the quantities and opinion of probable cost using AECOM and WSDOT Unit Bid Prices, The Engineer's opinion of construction cost for the Project will be submitted to the City at the 60, and 100 percent level-of-completion of the plans and specifications. Assumptions: 1. Quantities and opinion of probable cost for the wall will be developed following the same formatting as the documents submitted by AECOM to the City for the Horseshoe Bend Levee improvements project- Schedule A and C. 2. Any opinions of cost provided by the Consultant will be on a basis of experience and judgment, but since it has no control over market conditions or bidding procedures, the Consultant cannot warrant that bids or ultimate construction costs will not vary from these cost estimates. Deliverables: Opinion of Probable Cost, 60 percent Submittal (1 hard copy) Opinion of Probable Cost, 100 percent Submittal (1 electronic and 1 hard copy) Task 6. Compile Project Deliverables for Wall: The Consultant will assemble the work from each of the foregoing final design work tasks into 60 and 100 percent design submittals to the City. Interim draft Milwaukee 2 Floodwall scope 2012.1023 v0.docx Page 7 of 8 City of Kent A_CQ Scope of Work-Exhibit A DRAFT submittal drawings will be 11"x 17". The final drawings will be plotted full size (22" x 34")and stamped by a registered Structural Engineer. Assumptions: The PS&E submittals will be the following. Deliverables: 60 Percent PS&E Submittal • Plans • Special Provisions • Opinion of probable cost 100 Percent PS&E Submittal • Plans • Special Provisions • Bid Schedule • Opinion of probable cost Incorporate City and other agency comments and/or responses • Electronic copy of specified special provisions in Microsoft Word • Electronic copy of engineering plans in AutoCAD format Printer Ready PS&E Submittal for Advertising (Ad Set) • Sealed Plans • Sealed Special Provisions • Bid Schedule • Opinion of probable cost • Incorporate City and other agency comments and/or responses Task 7. — Respond to Review Comments: Following the City's review of the 60 and 90 percent PS&E Submittal packages, the Consultant will coordinate with City representatives to discuss the City's comments. The plans and special provisions will be modified by the Consultant to address these review comments. A written response will be provided to the City for those comments not incorporated into the design. Assumptions: 1. The City will provide a set of review comments for response by the Consultant. Deliverables: Prepare written responses to City Comments to the 60 percent Review Submittal Task 8. — Assistance during Pre-Bid & Bid Periods: Once the Ad Set of PS&E Submittal to the City has been completed for the construction contract, the Consultant will remain 'on-call' until the contract has been awarded to the successful bidder. The types of assistance that the Consultant will provide to the City during the pre-bid and bid periods of the Project may include: • Assisting City in responding to engineering questions from Contractors. • Interpreting and clarifying the bid documents. • Assisting the City in preparing contract addendum. • Assisting the City's project manager in evaluating the bids. draft Milwaukee 2 Floodwall scope 20121023 v0.docx Page 8 of 8 City of Kent ���,+ /� Milwaukee II Flootlwall A27CO y�I1 Milwaukee II Floodwall-Level of Effort Estimate DOE StructuralNo.of HOOrsI Structural Prot Enpl CADDI Prof Well lee III Sheets Sheet Manager Era Des Tech Admin ON= Total Hours TotalCosl(DL) 57631 $69]1 Met) 52600 $3000 mmas, MOM -01 Tabk1 :;Mt�s Ma"vagementantl 000rtl nbtlptl.„�".',�... - „� _ ProfeG Management __ 3 __ 8 11 S53293 2 Meetingswim the Coy _ G _ 6 12 $760]4 1 Me¢gngs wlln UPRR _ 3 ___ 3 _ 6 $36037 COominatlon with Ctty and Other Consultants 2 2 4 $253.58 Total Mane ementantl CoOminalion 14 0 11 0 8 p 33 $1.927.62 v c ere 5 1' w ! Site Vsit wlN travel limo __ 4 4 8 $SW.iG Total Site Visit 4 0 4 0 0 0 8 ffAMV Taska3 PB$l:}0r-plooilWalla. .,,a k�,_,_-,—: .✓ '.. ........ ...: .� .,'.:e ...,�.r., ... .. Basb FloOdwall Analysis.DireaLand Plan Sheets 2 10 8 20 MS222 s vallel UPRR Floodwall sediment-coL9devskoere 2 6 8 LL 5442. 00 _ Special UPRR Floodwall Segment-anely-fo,des a. plansheets 2 4 8 14 $549.34 Basle Fl00dwall ONOO-in h016e _ 2 2 $139,42 9122dwail Gnte Oosign antl Detailing _ 2 16 16 _ 36 —51.363.10 Gate Storage Binding Design and Demmin8_ _ 2 8 12 _LL 22 $865,26 tnt¢101scipllne OAIO0.Civil&Geomelyer,M _ 1 4 j 4 0 $557.07 Ass11mN 41otfl tan sh¢ela !J— Total PS&E for Floodwalis i 16 48 44 O 0 109 S4,]58]1 Basic DraiS eGfcations 60% �i i _ 2 $120.19 Special Draft UPRRs ¢CilicaltonseGlon(50%) q _ �y22])5� Basic FinaiB ecifca0ons(IDO°h) __ i � 1 2 $120.19 S octal FlnaI UPRRs ecip0aiton section 100%) 1 i 2 $126,79 Total Special PlOVIs1ORS 2 1 2 j 6 0 0 0 10 S59492 oudnlffies'andaatnldno3.aL.,.>e,�.�. .....-., — .. ...f ........., Prcllminary Estimate(GO%) 1 4 5 $27103 Final Estimate(100%) _ 1 i d ---_ 6 $347,94` Total Connotes and Opinion of Cost 1 12 1 e 0 0 0 11 Tds7fe 5, _v Daliyeie'bles 6 {wQR 'net iantl HlCPeY�aa�k`sslEtance Cpmpiledelivembtes _ 2 2 _ 4 315296 Railroad to ROvlew Comments ___ 1 3 4 $221.15 Assistance during So Peeled 1 2 4 T $417.65 TOial Deliverables,Respond to Comments.and BM Period A,,den, 1 3 9 2 0 0 j 15 $]91]6 Total SI..IO..I 23 23 86 46 8 0 106 $9,199.Id OUTSIDE REIMBURSABLES AECOM Direct$alary $9,199,74 Per Diem $0,00 AECOM Overhead® 163,14% $16,000.46 Leda, $000 AECOM Subtotal $24,20820 hirea9elpers.Vankle(W55Imile) $125 00 Meals $0'00 AECOM Fee @ Mse $$]5092 Supplies,Photos .be Outside Reimbureable5 $22000 Repopu01i00 $50,00 Sulmarmatanl8 $0,00 Posid,vaefie" $20 00 TOTAL= $27,188.12 Other $2500 Management Resawe Fund= 0% $000 Markup for Reimb.: 0 0% $000 GRAND TOTAL= $27.1$8.12 Total: $220.00 Nolee: 1)tills average is based on fl ad design stmllar to in,(of Horseshoe send Levee iinnowemenla p,.jdbt 2)this esllmate assumes that the City will provide a DTM model that is persdate tar brain&vem lament,quantities,and at emerging 3)dmtna0eby01hers 4)Spec at design and coordination will be Pequlretl wlllad UPRR ROW 5)Gate des nd will be similar to previous Horseshoe Belts designs 6)Storage Balding will Include foundation design antl petloromme speclllremes for buidNg 2)No renomination with amhited required File:RWOKMilmmin,Flood Wnlh300 Adoration-Pro)ecl Conlwndrat Nilwaukoa 2 Floodwall LOE 20121023 vt dxe ellsoL 31a Ave to VPRR Page 1 of 1 KENT Agenda Item: Consent Calendar — 7L TO: City Council DATE: November 20, 2012 SUBJECT: Bulletproof Vest Partnership Grant — Accept MOTION: Authorize the Mayor to accept the Bulletproof Vest Partnership Fiscal Year 2012 grant from the Bureau of Justice Assistance, in the amount of $5,696.32, amend the budget and authorize expenditure of the funds in accordance with the grant terms, subject to final terms and conditions acceptable to the Police Chief and City Attorney. SUMMARY: The Bureau of Justice Assistance notified the Kent Police Department of its receipt of an award of $5,696.32 under the fiscal year 2012 bulletproof vest partnership. The award amount reimburses 50% of the costs for 13 new hire or replacements vests. The award funds may be used for National Institute of Justice compliant armored vests which were ordered on or after April 1, 2012. All jurisdictions that applied for the funding certified during the application process that a mandatory wear policy was in place for their jurisdiction. EXHIBITS: Grant Award Notification RECOMMENDED BY: Public Safety Committee BUDGET IMPACTS: The City's match is $6,696.32, which is currently budgeted. From: owner-bvp-list@ojp.usdoj.gov on behalf of BVP [bvp@usdoj.gov] Sent: Tuesday, October 16, 2012 12:50 PM Subject: Bulletproof Vest Partnership FY 2012 Award Announcement The Bureau of Justice Assistance (BJA) is pleased to inform you that your agency will receive an award under the Fiscal Year(FY) 2012 Bulletproof Vest Partnership (BVP) solicitation. These funds have been posted to your account in the BVP system. For questions regarding the BVP Program or your award, please do not hesitate to contact the BVP Help Desk at vests(o)..usdoi.gov or 1-877-758-3787. A complete list of FY 2012 BVP awards is available at: http://www.oip.usdoi.goy/bvpbasi/ The FY 2012 award funds may be used for National Institute of Justice (NIJ) compliant armored vests which were ordered on or after April 1, 2012. The deadline to request payments from the FY 2012 award funds is August 31, 2014, or until all available 2012 awards funds have been requested. Please see the following websites for a list of NIJ compliant vests: Ballistic Vests: http://nii.goy/nii/topics/technologv/body-armor/compliant-ballistic-armor.htm Stab Resistant Vests: http://nii.goy/nii/topics/technologv/body-armor/compliant-stab-armor.htm As a reminder, all jurisdictions that applied for FY 2012 BVP funding certified during the application process that a mandatory wear policy was in place for their jurisdiction. BJA will be conducting reviews of the mandatory wear policies as funds are requested from the BVP system. For more information on the BVP mandatory wear policy, please see the FAQs here: http://www.oip.usdo.gov/bvpbasi/docs/FAQsBVPMandatorVWearPolicV.pdf Thank You. BVP Program Support Team KENT Agenda Item: Consent Calendar — 7M TO: City Council DATE: November 20, 2012 SUBJECT: State Criminal Alien Assistance Program Grant — Accept MOTION: Authorize the Mayor to accept the State Criminal Alien Assistance Program Fiscal Year 2012 grant from the Bureau of Justice Assistance, in the amount of $3,731, amend the budget and authorize expenditure of the funds in accordance with the grant terms, subject to final terms and conditions acceptable to the Police Chief and City Attorney. SUMMARY: The Bureau of Justice Assistance notified the Kent Police Department of its receipt of an award of $3,731 under the fiscal year 2012 State Criminal Alien Assistance Program. The awarded funds may be used for construction, training/education for offenders, training for corrections officers to help manage offender population, consultants, medical services, mental health services, vehicle rental/purchase for transport of inmates, salaries, overtime and bonuses for corrections officers, pre-release/reentry programs, technology, workforce recruitment and retention study, or disaster preparedness and continuity of operations for the corrections facility. EXHIBITS: Grant Award Notification RECOMMENDED BY: Public Safety Committee BUDGET IMPACTS: Revenue State Criminal Alien Assistance Program Page 1 of 1 Y ib `e '1 State Criminal Alien Assistance program zot2-Nsz42-ivA-Ar 4 . 6 JJ OMBNumher:1121-0243 E,ih s:02/29M04 SC AA Grant Number: 2012-AP-BX-0871 Help Jurisdiction: City of Kent GMS. vendor Number: 916001265 Home Award Amount: $3,731 L 0_q Fiscal Year 2012 Payment Acceptance and Electronic Transfer of Funds Off The Bureau of Justice Assistance WA)has completed its review of your facility,inmate,and correctional officer data related to the State Criminal Alien Assistance Program(SCAAP).The Bureau of Immigration and Customs Enforcement has vetted the inmate records, and an award amount has been calculated. In accepting this award, you understand that BJA reserves the right to take appropriate administrative action, Including intensive monitoring, repayment action, or adjustment to future payments, to resolve data discrepancies, errors, or audit findings related to any Information reported in your application. Applicants are now required to accept awards online within 45 calendar days of award notice, In accordance with '.. the Office of Justice Programs (OJP) Financial Guide, Part II, Chapter 2, Acceptance Procedures requiring acceptance/drawdown of awards with 45 days of notice of award, and Part IV, Chapter 2, section 16.606, State Criminal Alien Assistance Program (SCAAP) requiring an "expeditious draw-down of payments." Jurisdictions accepting SCAAP awards are not required to submit financial or progress reports to OIP. For FY 2009 SCAAP awards, the Department of Justice Reauthorization Act of 2005 (Pub. L. 109-162,Title XI) requires that all SCAAP funds be used for correctional purposes only. Please see the use of funds list and certification below. With your acceptance (by clicking on the Accept button below) of SCAAP's terms, conditions, and award amount, DIP will initiate an electronic payment in that amount to your bank account of record, as verified through the on-line SCAAP registration process and in accordance with applicable E-Government rules and requirements. All issues related to the electronic transfer of funds or the bank account of record must be referred to the OCFO Customer Service Center at 800-458-0786. Please allow 15 business days for the electronic payment process to be complete before contacting OCFO. Please have the grant number, amount, and vendor information (noted above) avallable when you call. FY 2012 SCAAP Use of Funds List ---Construction--- - Construction for inmate housing,inmate programs,prison industries In ADA compliance - ---Training/Education foroffender--- _ Specific trade employment skills GED testing Job Preparedness ---Training for corrections oNcers to help manage offender population--- Bi-lingual language skills Less than lethal technology training Diversity training F-As the CEO or authorized designee of this jurisdiction,I understand the guidelines and requirements as associated with the previous statements and agree to abide by them in all matters involving the FY 2012 State Criminal Alien Assistance Program. 'Accept .Decline III I i https://grants.oj p.0 sdoj.gov/gmsexternal/application.do?aspect=ACH&applicationID=230... 10/16/2012 FY 2012 SCAAP Use of Funds List Construction • Construction for inmate housing, inmate programs, prison industries in ADA compliance Training/Education for offender • Specific trade employment skills • GED testing • Job Preparedness Training for corrections officers to help manage offender population • Bi-lingual language skills • Less than lethal technology training • Diversity training • Prison rape training • Gang intervention training Consultants—must directly impact offender populations • Trainers for corrections officers and/or offenders • Facility/program evaluations personnel Medical Services Mental Health Services Vehicle rental/purchase for transport of inmates Salaries, Overtime and Bonuses • Salaries for corrections officers • Overtime costs required by negotiated contract regulation such as union agreements and required post staffing minimums • Performance based bonuses Pre-Release/Reentry Programs • Community corrections—probation and parole • Special Community Corrections Units (sex offender/mental health) Technology • Offender management software • Tracking devices and electronic monitoring • Inter/Intra Agency Information Sharing Workforce recruitment and retention study Disaster Preparedness and continuity of operations for corrections facility KENT Agenda Item: Consent Calendar - 7N TO: City Council DATE: November 20, 2012 SUBJECT: Department of Licensing Driver and Plate Search Interagency Agreement - Authorize MOTION: Authorize the Mayor to enter into a driver and plate search interagency agreement between the State of Washington Department of Licensing and the City, subject to final terms and conditions acceptable to the Police Chief and City Attorney. SUMMARY: The State of Washington Department of Licensing and the Kent Police Department desire to enter into an interagency agreement for the period of January 31, 2013 through January 31, 2015. Information obtained through the search process will be used for police investigations. EXHIBITS: Grant Award Notification RECOMMENDED BY: Public Safety Committee BUDGET IMPACTS: None DOL Contract No. K1885 Amendment 01 Amendment No. 01 to CONTRACT NO. K1885 BETWEEN STATE OF WASHINGTON DEPARTMENT OF LICENSING and KENT POLICE DEPARTMENT DOL Contract No. K1885, including any subsequent modifications thereto, between the Department of Licensing (hereinafter called "DOL"), and Kent Police Department (hereinafter called the "Contractor") located at Kent Police Department Phone: 253-856-5810 220 4th Ave S FAX: 253-856-6803 Kent, WA 98031 E-Mail: sknapp@ci.kent.wa.us is hereby amended under the provisions of the Agreement Alterations And Amendments clause and by the mutual consent of all parties hereto, as follows: 1. PERIOD OF PERFORMANCE The end date of the period of performance is extended from January 31, 2013 to January 31, 2015, as authorized under the Period of Performance, clause. Prior to an extension or renewal being issued the Contractor must submit a new DAPS Access Application, Application Employee List Attachment A, and an Appropriate Use Declaration Attachment B (sample Attachment A and B attached). 2. CONTRACT MANAGEMENT The Contract Manager for each of the parties shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Contract. The Contractor is required to notify the DOL Contract Manager in writing within sixty (60) days of changes to contact information, business mailing address, name or ownership. Failure to appropriately make written notification may result in a disruption in transactions for which DOL will not be liable or may result in termination of this Contract. The Contractor Contract Manager is: The DOL Contract Manager is: Sheila Knapp Dani Waldron Kent Police Department Department of Licensing 220 4th Ave S PO Box 2076 Kent, WA 98031 Olympia, WA 98507-2076 Phone: 253-856-5810 FAX: 253-856-6803 Phone: 360-902-3824 E-Mail: sknapp@ci.kent.wa.us FAX: 360-570-4943 E-Mail: dwaldron@dol.wa.gov File Name: K1885-01 Page 1 of 4 10/4/2012 DOL Contract No. K1886 Amendment 01 ACKNOWLEDGMENT The execution of this amendment shall constitute a ratification of that earlier verbal agreement between the parties, hereto, the terms and conditions of which are contained herein. Accordingly, regardless of the date of execution, the effective date of this amendment shall be February 1, 2013. All other terms and conditions of the original contract and any subsequent amendments thereto remain in full force and effect. The parties hereby acknowledge and accept the terms and conditions of this Amendment which is executed by the persons signing below who warrant that they have the authority to execute it on behalf of DOL and the Contractor. IN WITNESS WHEREOF, the parties have executed this Amendment. Kent Police Department State of Washington Department of Licensing (Signature) (Date) Lynn Stullick (Date) Facilities & Procurement Administrator APPROVED AS TO FORM ONLY (Print Name &Title) Signature on File October 10, 2012 Susan Pierini AAG (Date) **"THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK**** File Name: K1885-01 Page 2 of 4 10/4/2012 DOL Contract No. K1885 Amendment 01 ATTACHMENT A akk Mmio&TART4cLFAri;✓Tare Nt'Irfn TABbultan , Driver And Plate Search JDAPB) [�r LICENSING Application Employee List We racei•.ad you:requesi br ao:ass m Lte DAPS system.Use.Ehis Fofm io list GAPS access. Submit the r-mpleted faran to; Research and Client Support Deparirefeht of Llceneing PO Sox2076 Olymp.'a,WA 985d7-2076 Email:dapscorrm.ESdol.ora�ou Far.N-O)570-4842 nga-ry•.racn. ngsry msxe Enm rn-a C1 M-cod CJ:L•Cs]-afsa X F'rint eaCn EJSip:0yEE.�a,�.a. EmY�ca M1a.:.C. T:ti.?.II:PIv E-p'ryw nsra E.. acp Yw n:m. Em;4yc - e:-.pYw n:ma E sr�var-< c..yiym nma EmlK�Ca rn.-c a-p ryx n:ma EmXcyco na-r E.-Pcxm O[+pc Em�©e.;n na^x E-pc}:s nsna Em;ior ara.-c E-pc w.n:ma Em_.W>jw rn-c E-Rryu n:m: emxgw rasc =_sPrys mma Em:Y.ycn oast E-F crA:n:mc Fmvfw nn.-c E-(tCtw nx..: Por cc.-cc use ai5r qjO-sy ac>7;ni nu-d:: t§ onc�nmftc pmvidm -3h'a.�-_..eiycu+snnr s. T?:as.:a(4•ev:iv uy,unC.M nsxvmaa+n iEn,fJeuxutllf�?J]rr+.,,°,3i17G.ar�L?u'L'J dr1n,1 tG File Name: K1885-01 Page 3 of 4 10/4/2012 DOL Contract No. K1885 Amendment 01 ATTACHMENT B 1 n,,: „„;ar Driver And Plate Search (DAPS) L LICENSING Appropriate Use Declaration ,AA DAPS users must sign this form.Keep a sioned copy of this declaration on We in pour office-do not return to Department of Licensing. DAPS users will:: 1) Ensure the confidentiality and privacy of the info unction accessed. Zt Only use the information to accomplish official'.joy dutias- DAPS users will not 1} Share the information with any unautharizn_d person- 2) Use the inform ation for personal reasons or benefit. Misuse of DAPS information is a felony and is punishable by fine an np'sonment. I m.•iewed the Interagency Agreement with my supervisor under r - the xpectation for u Ing .-u rmxampla�mn-no '— G.l'lay�a:"ri:il,SdSa. uRts� n ciy�,.yava- evm I:Trc.� _ yip^r..c ci3ry a.xa 37G le mated to gmidng egt,.Waooas to ai+saucss. m-t o ow,-.a i ri d yom n�daaxmmceadon plane vau(3w)9033,maar Try fxq)M4-0 la File Name: K1885-01 Page 4 of 4 10/4/2012 �•LWASRINGTUN STATE DEPARTMENT OF Driver And Plate Search (DAPS) LICENSING Application Employee List We received your request for access to the DAPS system.Use this form to list the employees requiring DAPS access. Submit the completed form to: Research and Client Support Department of Licensing PO Box 2076 Olympia,WA 98507-2076 Email:dapscomm@dol.wa.gov Fax: (360) 570-4943 Agency name Kent Police Department Agency address 220 4th Ave S City State ZIP code Kent WA 98031 Print name of contact (Area code)Contact telephone number Sheila Knapp (253)856-5810 Contact signature Date X 10/15/12 Print each employee name. Employee name Employee name Aguilar, Sandy Axelson, Kevin Employee name Employee name Bacon, Tarisa Bateman,Kevin Employee name Employee name Buck, David Costello, Andi Employee name Employee name Eades, Kevin Eley, Donna Employee name Employee name Focht, Derrick Ford,Tim Employee name Employee name Gaither,Robin Garrett, Douglas Employee name Employee name Gee, Gerald Gibbs,Shirley Employee name- Employee name Gilcrist, Richard Gustafson, Mark Employee name - Employee name Hale, Eliot Hemandez,Lillian Employee name Employee name Holmes,Matthew Honda, Tami Employee name Employee name Holt, Steve Johnson, Brieann Employee name Employee name Johnson, Phillip Kelly,Steve Employee name Employee name Kluzak, Jeff Lamp,Craig Employee name Employee name Lontz,Timothy Lorette,Matthew For office use only Agency account number We are committed to providing equal access to our services. TDA20-203(Rt4112)W If you need accommodation,please call(360)902-3708 or TTY(360)664-0116, CILWASHINGTON STATE DEPARTMENT OF Driver And Plate Search (DAPS) LICENSING Application Employee List We received your request for access to the DAPS system. Use this form to list the employees requiring DAPS access. Submit the completed form to: Research and Client Support Department of Licensing PO Box 2076 Olympia, WA 98507-2076 Email:dapscomm@dol.wa.gov Fax: (360) 570-4943 Agency name Kent Police Department Agency address 220 4th Ave S City State ZIP code Kent WA 98031 Print name of contact (Area code)Contact telephone number Sheila Knapp (253)856-5810 Contact signature Date X( 10/15/12 Print each employee name. Employee name Employee name Mann, Regina McFarland,Dalyce Employee name Employee name Moore,Eric Prusa,Jen Employee name Employee name Riener, Tom Rossmeier, Ryan Employee name Employee name Schluttenhofer,Andrea Sherman, Linda Employee name Employee name Shirey, Jeff Sullivan, Abbie Employee name Employee name Trodgon,Dave Turley, Suzan Employee name Employee name Vance, Heather Wales,Brendan Employee name Employee name Warren,Shelley Employee name Employee name Employee name Employee name Employee name Employee name Employee name Employee name Employee name Employee name Employee name Employee name For office use only Agency account number We are committed to providing equal access to our services. TD420-203(R/4112)W If you need accommodation,please call(360)902-3708 or 77Y(360)664-0116, CILWASNINGTON STATE DEPARTMENT OF Driver And Plate Search (DAPS) LICENSING Access Application Use this form to request access for your agency to the DAPS system.The application should be completed by your office contact.Submit the completed application and documents that identify the office contact as an employee of your agency (examples:employee ID, credentials, badge, etc.) to: Research and Client Support Department of Licensing PO Box 2076 Olympia, WA 98507-2076 Email:dapscomm@dol.wa.gov Fax: (360) 570-4943 Agency name Kent Police Department Office name and location KPD 232 4th Ave S Office mailing address 220 4th Ave S city State ZIP code Kent WA 98031 Office contact name Office contact title Sheila Knapp Support Services Manager Office contact(area code)telephone number Office contact(area code)fax number (253)856-5810 (253)856-6803 Office contact email sknapp@kentwa.gov What service does your office provide? Police Investigations I certify under penalty of perjury under the laws of the state of Washington that the foregoing is true and correct. 10/15/12 X 461 Date and place signed Signature of office c6 ntact For office use only Date received Action taken: ❑ Approved ❑ Denied X Signature of reviewer We are committed to providing equal access to our services. TDa20-201(w2Jt2)w If you need accommodation,please call(360)902-3706 or TTY(360)654-0116. KENT Agenda Item: Consent Calendar — 70 TO: City Council DATE: November 20, 2012 SUBJECT: School Resource Officer Agreement with Kent School District — Authorize MOTION: Authorize the Mayor to enter into an agreement with the Kent School District for a School Resource officer in the amount of $162,000, subject to final terms and conditions acceptable to the Police Chief and City Attorney. SUMMARY: The Kent School District desires to have the presence and assistance on the Kent Meridian High School, Kentridge High School and feeder middle school campuses of commissioned law enforcement officers who can work collaboratively with school personnel to enforce the law and school rules while building healthy relation- ships with students. The Kent Police Department desires to partner with the Kent School District, seeking an opportunity for its officers to positively impact the community. The District and Department share a compelling common value in seeing that the community enjoys a safe, sustainable, healthy, and respectful learning environment for its students and staff. EXHIBITS: Agreement RECOMMENDED BY: Public Safety Committee BUDGET IMPACTS: Total consideration is $270,000.00 per year. The Kent School District agrees to pay 60% of the total compensation, or $162,000.00, which is currently budgeted. OA SCHOOL RESOURCE OFFICER (SRO) AGREEMENT - BETWEEN THE KENT POLICE DEPARTMENT AND THE KENT SCHOOL DISTRICT 2012-2013 THIS AGREEMENT is made and entered into by and between the City of Kent/Kent Police Department (hereinafter referred to collectively as the "Department") and the Kent School District, hereinafter referred to as the "District"for the provision of School Resource Officers (SROs). WHEREAS,the District desires to have the presence and assistance on school campuses of commissioned law enforcement officers who can work collaboratively with school personnel to enforce the law and school rules while building healthy relationships with students of the district; and WHEREAS,the Department desires to partner with local school districts and seeks an opportunity for its officers to positively impact the community; and WHEREAS,the District and the Department share a compelling common value in seeing that the community enjoys a safe,sustainable, healthy, and respectful learning environment for its students and staff; NOW,THEREFORE,for and in consideration of the mutual promises set forth herein,the parties hereto mutually agree as follows: 1. TERM The Agreement shall be effective September 1, 2012 through August 31, 2013,subject to any prior termination as provided herein and unless extended by written agreement of parties hereto. 2. DUTIES OF THE DEPARTMENT AND ASSIGNED SROs The Department shall provide two (2)commissioned police officers to work as SROs in the District for the purpose of assisting school personnel in enforcing the law and school rules, while maintaining a safe, sustainable, healthy, and respectful learning environment for students and staff. The placement of a particular officer in the role of SRO will be a decision mutually agreed upon by the Department and District. a. One SRO will be assigned to the campuses of Kent-Meridiaan High School and Mill Creek Middle School with time split between each campus as deemed appropriate by school administrators and the respective school principals. b. One SRO will be assigned to the campuses of Kentridt;e Wh School and Meridian Middle School.with time split between each campus as deemed appropriate by school administrators and the respective school principals. 1 c. Each SRO shall respond to school incidents in the District as necessary and shall support district administrators and staff with school safety inquiries and/or needs for assistance. d. Each SRO will provide assistance in enforcing the law and school rules on school grounds,will conduct investigations as necessary,and advise/consult with school personnel regarding best practices for ensuring a safe and secure learning environment. e. Each SRO will develop a daily routine that ensures high visibility to staff,students, parents and community stakeholders. f. Each SRO will have access to education records of district students consistent with access available to members of the District's Safety Services, but each SRO also understands that he or she is restricted in the same manner as other district personnel by the Family Educational Rights and Privacy Act(FERPA), 20 U.S.C. 1232g,accompanying regulations,corresponding state law, and district policies regarding nonconsensual disclosure of such records to third parties without lawful authorization. g. Each SRO will be a positive adult role model and will develop positive relationships with students that promote learning and citizenship. h. Each SRO will work collaboratively with the District's Safety Services Director, including the preparation of reports as needed regarding school safety activity for the Superintendent and Board of Directors. i. Each SRO will assist,as needed, in the establishment and implementation of emergency operation procedures and threat assessment procedures for buildings. j. Each SRO will assist school administrators with the contact of truant children and their parents. k. Each SRO will perform other duties as mutually agreed upon by the Kent School District and Department. 3. CONSIDERATION The total compensation that the Department pays to employ the two SROs contemplated in this Agreement is$270,000.00 per year. In consideration for the services that the SROs provide pursuant to this Agreement,the District agrees to pay to the Department 60%of the total compensation for the two SROs,or$162,000.00. This amount shall be spread across 12 equal monthly payments payable to the Department. The District shall pay the reimbursement upon submission by the Department of a monthly invoice. The failure of the Department to properly invoice the District shall not relieve the District from payment for services rendered. The consideration set forth in this section may be modified pursuant to Attachment A,which is incorporated into this Agreement. 4. WORK SCHEDULE Each SRO will be assigned a schedule making them available during normal school hours. One SRO will be assigned to work Monday through Thursday. The second SRO will be assigned to work Tuesday through Friday. In addition,each SRO may work additional hours and days agreed upon by the District,Department,the bargaining unit for the Kent Police Officers,and the officer providing the services. 2 S. OVERTIME Costs associated with approved overtime for District business shall be paid by the District,except that costs associated with overtime for any Department trainings or functions not relating to District business will be paid by the Department. Overtime rates applicable to_District business shall be determined by the officers' collective bargaining agreement with the City of Kent. 6. MODIFICATION No waiver or modification of this Agreement or any covenants, conditions,or limitations herein contained shall be valid unless in writing and duly executed by the parties, and no evidence of any waiver of modification shall be offered or received in evidence during any proceeding or litigation between the parties, unless such waiver or modification is in writing duly executed as aforesaid. The parties further agree that the provisions of this section may not be waived except as herein set forth. 7. TERMINATION OF AGREEMENT This Agreement may be terminated without cause at any time by mutual agreement of the parties or by either party after thirty(30)days following the other party's receipt of a written intent to terminate. Each party shall have the right to cancel and immediately terminate this agreement without prior notice upon breach of the Agreement by the other party. In the event of termination under this section,the Department will be entitled to receive,to the date of such termination on a pro rata basis,the compensation as set forth above. In addition, each party shall have the right to remove a specific SRO from duty for sufficient reasons. Any officer selected to replace an SRO will be mutually agreed upon by the Department and District as set forth in section 2 above. 8. TRAINING The District agrees to permit SROs to attend training sessions required by the Department, provided that the Department notifies the district of such training ten (10)days in advance. Advance notice will be provided to the District's Chief Information and Digital Strategies Officer,who oversees the District's Safety Services Department, and will allow the District to make other security arrangements in the absence of a school's SRO. The District may likewise provide training to SROs on school in-service days. 9. INDEMNIFICATION The parties agree that the District shall bear all responsibility and cost of defending any and all claims, actions, suits, liabilities, losses, costs, expenses, and damages that relate in any way 3 whatsoever to School Safety Services, the security and safety of the District and its students, employees, and visitors, and/or the provisions of any services set forth in section 2 of this Agreement, and for this purpose, and notwithstanding Section 9 of this Agreement, the Director shall be considered an agent of the District. Further,to this end, the District shall defend, indemnify, and hold harmless the Director, and the Department and it's officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever relating to and arising out of the performance of the Agreement. The District shall not defend, indemnify or hold the Department harmless from any claims, actions, or suits for injury, damage, or loss of any kind caused by the intentional act (s) of the Director which are beyond the scope of this Agreement. In executing the Agreement,the Department does not assume liability or responsibility for,or in any way release the District from any liability or responsibility which arises in whole or in part from the existence or effect of District policies, rules, or regulations. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such District policy, rule, or regulation is at issue, the District shall defend the same at its sole expense and if judgment is entered or damages are awarded against the District, the Department, or both, the District shall satisfy the same, including all chargeable costs and attorneys fees. 10. MEDICAL/HEALTH AND WORKER'COMPENSATION BENEFITS In the event of any injury, illness or death of an SRO,such officer will be considered an employee of the Department while acting in performance of this Agreement, and the Department agrees to extend to any Department SRO the medical/health and workers'compensation benefits and other compensation,to the same extent and in the same manner as if such injury, illness,or death had occurred during regular work assignment in and for the Department.Any SRO provided pursuant to this agreement is not an employee of the District, and the District shall have no obligation to provide an SRO with any workers compensation or other benefits. 11. VENUE STIPULATION This Agreement shall be construed as having been made and delivered within the State of Washington,and the laws of the State of Washington shall be applicable to its construction and enforcement. Any action at law,suit in equity,or judicial proceeding for the enforcement of this Agreement or any provision hereto shall be instituted in King County,Washington. 12. COMPLIANCE WITH LAWS In carrying out the terms of this Agreement,the parties agree to comply with all applicable federal, state,and local laws, ordinances, and regulations, including but not necessarily limited to,the laws pertaining to civil rights and laws pertaining to the District and the Department. In carrying out this Agreement,the parties agree that they will not in any way discriminate against others on the basis of sex, race,creed, religion, color, national origin,age, honorably discharged veteran or military status, sexual orientation including gender expression or identity,the presence of any sensory, mental or physical disability. 4 13. NOTICES All notices shall be in writing and shall be sent by registered mail to the parties at their recognized business addresses. For the District, notice shall be sent by registered mail to the to the District's Chief Information and Digital Strategies Officer who oversees the District's Safety Services. 14. HEADINGS The article headings contained in this Agreement are inserted solely as a matter of convenience and for reference and in no way do they define, limit,or describe the scope or intent of the provisions of this Agreement. 15. AGREEMENTS OUTSIDE OF THIS AGREEMENT This Agreement contains the complete agreement between the parties and shall,as of the effective date hereof,supersede all agreements on the same subject,either written or oral, between the parties. The parties agree that neither of them has made any representation with respect to the subject matter of this Agreement, except such representations as are specifically set forth herein, and each party acknowledges that it has relied on its own judgment in entering into this Agreement. IN WITNESS WHEREOF,the parties have affixed their signature on the dates below. KENT SCHOOL DISTRICT CITY OF KENT/KENT POLICE DEPARTMENT Dr. Edward Lee Vargas,Superintendent Ken Thomas, Chief of Police Date Date 5 ATTACHMENT 'X TO SRO AGREEMENT The total compensation that the Department pays to employ the two SROs contemplated in this Agreement is$270,000.00 per year. Unless modified by mutual agreement.$270,000.00 will be considered the total compensation for all SROs provided by the Department for the duration of the Performance period of this Agreement,regardless of actual salary or benefit adjustments that may be made by the Department for its officers. The District's reimbursement obligation—sixty percent(60%)—of this total compensation for all SROs Provided by the Department comes to$162,000.00. Unless modified by mutual agreement this will be considered the District's total reimbursement obligation for the two SROs provided by the Department for the duration of the performance period of this Agreement,regardless of actual salary or benefit adjustments that may be made by the Department for its officers. The District shall pay said reimbursement in twelve(12)approximately equal monthly payments spread over the calendar year,with each payment being made upon submission by the Department of a monthly invoice. In the event that the parties mutually agree to redetermine the amount of total annual compensation under this attachment during the performance period of the Agreement,the parties shall execute a new Attachment A to the Agreement. The redetermined total amount shall be multiplied by sixty Percent(60%)and divided by twelve(12)to determine the amount of each monthly invoice as set forth in this agreement following the redetermination. The first monthly invoice following the redetermination and newly executed Attachment A.and every invoice thereafter,will reflect the monthly portion of the District's reimbursement obligation of the redetermined total annual compensation. The redetermined total annual compensation will not be retroactive,and no invoice submitted prior to the redetermination will be changed to reflect the new total compensation determination. The redetermined monthly portion of the District's reimbursement obligation will be effective solely from the date of the new Attachment A and thereafter for the duration of the Performance period,unless and until mutually modified again by the parties. IN WITNESS WHEREOF,the parties have affixed their signature on the dates below. KENT SCHOOL DISTRICT CITY OF KENT/KENT POLICE DEPARTMENT Dr. Edward Lee Vargas,Superintendent Ken Thomas,Chief of Police Date Date 6 KENT Agenda Item: Other Business — 8A TO: City Council DATE: November 20, 2012 SUBJECT: Business and Occupation Tax Ordinance MOTION: Move to repeal Ordinances 4052 and 4053, and adopt Ordinances ___ and __, eliminating the B&O tax registration fee, clarifying and implementing structural changes, and clarifying that the first $62,500 earned in any quarter are exempt from B&O tax. SUMMARY: On the recommendation of the Operations Committee, staff has eliminated the $80 registration fee. See section 3.29.030. Additionally, at the request of some members of the business warehouse community, staff slightly shifted the structure of the tax to clarify that these ordinances are, primarily, a business and occupation tax and that the square footage tax component is ancillary to the B&O tax. As a result, the square footage tax only comes into play if it exceeds the taxpayer's B&O tax, and then only the amount of square footage tax that exceeds the B&O tax becomes due and payable. Finally, we clarified, pursuant to council direction, that the first $62,500 quarterly gross receipts are exempt, not part of a threshold. Also, we created a threshold for application of the square footage tax. Under that threshold, the square footage tax only becomes potentially due and payable if the business has over 4000 square feet of warehouse space or 12,000 square feet of"other business" space. Again, staff from both the finance and the law departments will be available to answer questions. EXHIBITS: Ordinances RECOMMENDED BY: Operations Committee BUDGET IMPACTS: Income from revenues, expenses related to implementation and financial management. ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, repealing Ordinance No. 4052 and adopting a new Chapter 3.28 to the Kent City code entitled, "Business and Occupation Tax Gross Receipts," and establishing an effective date. RECITALS A. One of the most important functions of a government, including municipal government, in setting and implementing tax policy is to strive for fairness, consistency, equity, and efficiency. B. In recognition of concerns over the business and occupation (B & O) tax, and legislative debates over how to address those concerns, the Association of Washington Cities (AWC) and six B & O tax jurisdictions formed a Task Force to analyze these issues. C. The Task Force, with the concurrence of the majority of other Washington cities levying gross receipts B & O taxes, has developed a model ordinance that creates greater uniformity and consistency among city gross receipts business and occupation taxes; includes a system of deductions to prevent multiple taxation of the same gross receipts; makes the city gross receipts business and occupation taxes simpler, more 1 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance predictable, and easier to administer; provides examples of activities that constitute "engaging in business" and establishes safe harbors for de minimis activities that a person may engage in without having to register or becoming subject to tax; and contains sufficient flexibility to provide local control over the city tax structure. D. The model ordinance also strives to minimize any major revenue impact on cities levying gross receipts B & O tax; and retains local control over B & O tax rates, thus preserving "local control" and revenue- protection measure that are critical to all cities in the State of Washington. E. Adoption of the model ordinance is also vital in demonstrating to the Washington State Legislature that cities are sensitive to legitimate complaints over the local B & O tax and are serious about ensuring that it more fairly, equitably, consistently, and efficiently administered. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - -Repealer. Ordinance No. 4052 is hereby repealed in its entirety. SECTION 2. - Amendment. Title 3 of the Kent City Code is amended to adopt a new Chapter 3.28, entitled "Business and Occupation Tax - Gross Receipts," as follows: CHAPTER 3.28 Business and Occupation Tax - Gross Receipts 2 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance Sec. 3.28.010. Purpose. This section implements Washington Constitution Article XI, Sec. 12 and RCW 35A.82.020 and 35A.11.020, which gives municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. The city of Kent has developed over the last half century into a major manufacturing/warehousing hub. However, due to recent changes in sales tax and property tax laws, the city no longer receives sufficient revenue from warehousing activities to support the transportation infrastructure needed to serve warehouse activities. As a result, the city no longer generates sufficient revenue to maintain the level of general city services that supports this business base, and to maintain and operate its considerable past investment in local streets and arterial infrastructure. This ordinance, then, is intended to generate additional revenue to maintain, repair, and operate the city's existing transportation network in order to fairly allocate the cost to provide those services and to maintain that infrastructure to those business entities that contribute most to the use and degradation of city streets. Sec. 3.28.020. Exercise of revenue license power. The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. Sec. 3.28.028. Administrative Provisions. The administrative provisions contained in chapter 3.29 shall be fully applicable to the 3 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance provisions of this chapter except as expressly stated to the contrary herein. Sec. 3.28.030. Definitions. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. A. "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client. B. "Agricultural product," "farmer." (1) "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: A product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.85.020; plantation Christmas trees; turf; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.85.020, or a bird, or insect, or the substances obtained from such an animal. "Agricultural product" does not include animals intended to be pets. (2) "Farmer" means any person engaged in the business of growing or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale. "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption. 4 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance "Farmer" does not include a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house. "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber. C. "Business." "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. D. "Business and occupation tax." "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. E. "Commercial or industrial use." "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereof: (1) Any use as a consumer; and (2) The manufacturing of articles, substances or commodities; F. "Competitive telephone service." "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. G. "Consumer." "Consumer" means the following: 5 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (1) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of: (a) resale as tangible or intangible personal property in the regular course of business; (b) incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers; (c) incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product; or (d) consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; (2) Any person engaged in any business activity taxable under section 3.28.050(21)(g); (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business; (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in section 3.28.030, other than for resale in the regular course of business; (5) Any person who is an end user of software; 6 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (6) Any person engaged in the business of "public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly-owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right- of-way of a publicly-owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly-owned mass public transportation terminal or parking facility; (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business; (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business; (9) Any person engaged in "government contracting." Any such person shall be a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person. Nothing contained in this or any other subsection of this section shall be construed to modify any other definition of "consumer." H. "Delivery" means the transfer of possession of tangible personal property between the seller and the buyer or the buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes physical control of the 7 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance property or exercises dominion and control over the property. Dominion and control means the buyer has the ability to put the property to the buyer's own purposes. It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract. A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (Title 62A RCW) do not determine when or where delivery of tangible personal property occurs for purposes of taxation. I. "Director." "Director" means the finance director of the city or any officer, agent or employee of the city designated to act on the director's behalf. J. "Digital automated service," "digital code," and "digital goods." "Digital automated service," "digital code," and "digital goods" have the same meaning as in RCW 82.04.192. K. "Digital products." "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b). 8 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance L. "Eligible gross receipts tax." The term "eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within section .050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated from the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or any other non-local jurisdiction above the county level. M. "Engaging in business." (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the city, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the city without having to register and obtain a business license or pay city business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1). If an activity is not listed, whether it constitutes engaging in business in the city 9 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one of the following activities conducted within the city by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license. (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the city. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the city. (c) Soliciting sales. (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. U) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system 10 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m) Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the city, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (q) Accepting or executing a contract with the city, irrespective of whether goods or services are delivered within or without the city, or whether the person's office or place of business is within or without the city. (4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the city but the following, it need not register and obtain a business license and pay tax. (a) Meeting with suppliers of goods and services as a customer. 11 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business, such as a member of a board of directors who attends a board meeting. (d) Renting tangible or intangible property as a customer when the property is not used in the city. (e) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the city's trade show or multiple vendor event ordinances. (f) Conducting advertising through the mail. (g) Soliciting sales by phone from a location outside the city. (5) A seller located outside the city merely delivering goods into the city by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the city. Such activities do not include those in subsection (4). (6) The city expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. N. "Extracting." "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification. 12 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance O. "Extractor." "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer. P. "Extractor for Hire." "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. Q. "Gross income of the business." "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. R. "Gross proceeds of sales." "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property, 13 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. S. "Manufacturing." "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. T. "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty percent (20%) of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire, and not a manufacturer. A business not located in this city that is the owner of materials or ingredients processed for it in this city by a processor for hire shall be deemed to be engaged in business as a manufacturer in this city. (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: (a) The production of special made or custom made articles; 14 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (b) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) Crushing and/or blending of rock, sand, stone, gravel, or ore; and (d) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. U. "Newspaper," "magazine," "periodical." "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind. "Magazine, or periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication. Any publication meeting this definition qualifies regardless of its content. 15 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance V. "Non-profit corporation or non-profit organization." "Non-profit corporation or non-profit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended. Where the term non-profit organization is used, it is meant to include a non-profit corporation. W. "Office", "place of business." "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over which the person exercises legal dominion and control. The regular business of the person is presumed conducted at a location: (1) Whose address the person uses as its business mailing address; (2) Where the place of primary use is shown on a telephone billing or a location containing a telephone line listed in a public telephone directory or other similar publication under the business name; (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means; and (4) Where the person is required to obtain any appropriate state and local business license or registration unless they are exempted by law from such requirement. A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. If a person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of 16 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance business above. If a person has no office or place of business, the person's home or apartment within the city will be deemed the place of business. X. "Person." "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co- partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise and the United States or any instrumentality thereof. Y. "Processing for hire." "Processing for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty percent (20%) or more of the total value of all materials or ingredients that become a part of the finished product, the person will be deemed to be a manufacturer and not a processor for hire. Z. "Product", "Byproduct." "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort. "Byproduct" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities 17 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance and which has a market value without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. AA. "Retailing." "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. BB. "Retail Service." "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Automobile parking and storage garage services; (5) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; 18 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (6) Service charges associated with tickets to professional sporting events; and (7) The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services. (8) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. CC. "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. DD. "Sale at retail," "retail sale." (1) "Sale at retail' or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal 19 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. (f) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (7) of 20 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance this section, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person. (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under section 3.28.050(21)(g). (3) "Sale at retail' or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such 21 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 RCW; (f) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; (g) The installing, repairing, altering, or improving of digital goods for consumers; 22 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (h) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), (f), and (g) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail' or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection. (4) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. (5)(a) "Sale at retail" or "retail sale" shall also include the sale of prewritten software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For purposes of this subsection (5)(a) the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized by the vendor or by the purchaser. The term "sale at retail" or "retail sale" does not include the sale of or charge made for: (i) Custom software; or (ii) The customization of prewritten software. (b)(i) The term also includes the charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third party, 23 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. (ii)(A) The service described in (b)(i) of this subsection 5 includes the right to access and use prewritten software to perform data processing. (B) For purposes of this subsection (b)(ii) "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. (6) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind. (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value 24 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance of the agreement is included in the sales price of the tangible personal property covered by the agreement. (8) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. (9) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. (10) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. (11) "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: (a) Sales in which the seller has granted the purchaser the right of permanent use; (b) Sales in which the seller has granted the purchaser a right of use that is less than permanent; (c) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and 25 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (d) Sales in which the purchaser is obligated to make continued payment as a condition of the sale. A retail sale of digital goods, digital codes, or digital automated services under this subsection 3.28.030.DD(11) includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. For purposes of this subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. (12) "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or improving of digital goods for consumers. EE. "Sale at wholesale," "wholesale sale." "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, or services described in section 3.28.030.DD(5)(b)(i), which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers. Sale at wholesale also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. FF. "Services." "Services" includes those activities that do not fall within one of the other tax classifications used by the city. 26 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance GG. "Software", "prewritten software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Prewritten software" or "canned software" means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. Prewritten computer software includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than such purchaser. Where a person modifies or enhances computer software of which such persons is not the author or creator, the person shall be deemed to be the author or creator only of the person's modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; however where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for the modification or enhancement, the modification or enhancement shall not constitute prewritten computer software. (2) "Custom software" means software created for a single person. (3) "Customization of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person. Customization of canned software includes individualized configuration of software to work with other software and computer hardware but does not include routine installation. Customization of canned software does not 27 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance change the underlying character or taxability of the original canned software. (4) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license. The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy. (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor. (6) "Software" means any information, program, or routine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one or more computers or pieces of computer-related peripheral equipment, or any combination thereof, to perform a task or set of tasks. "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that documentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All software is classified as either canned or custom. HH. "Taxpayer." "Taxpayer" means any "person", as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. 28 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance II. "Tuition fee." "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a non-profit organization, as defined by the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for coursework successfully completed through the educational program, or an approved branch campus of a foreign degree-granting institution in compliance with chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a degree-granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. I]. "Value proceeding or accruing." "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. KK. "Value of products." 29 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the city, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The director may prescribe rules for the purpose of ascertaining such values. (3) Notwithstanding subsection (2) above, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to: (a) the retail selling price of such new or improved product when first offered for sale; or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. 30 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance LL. "Wholesaling." "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. Sec. 3.28.040. Agency — sales and services by agent, consignee, bailee, factor or auctioneer. (1) Sales in own name - sales or purchases as agent. Every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal property or having possession of the documents of title thereto, with power to sell such tangible personal property in the person's own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter. The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promoting sales or making purchases for a principal. Such claim will be recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: (a) The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made. (b) The books and records show the amount of the principal's gross sales, the amount of commissions and any other incidental income derived by the broker or agent from such sales. The principal's gross sales must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed 31 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance according to a set percentage or amount, which is agreed upon in the agency agreement. (c) No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement. Sales or purchases of any goods by a person who has any ownership rights in such goods shall be taxed as retail or wholesale sales. (d) Bulk goods sold or purchased on behalf of a principal must not be co-mingled with goods belonging to another principal or lose their identity as belonging to the particular principal. Sales or purchases of any goods which have been co-mingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales. (2) If the above requirements are not met the consignor, bailor, principal or other shall be deemed a seller of such property to the agent, consignee, bailee, factor or auctioneer. (3) Services in own name - procuring services as agent. For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply. Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured. Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: (a) The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made. 32 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (b) The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived by the agent for acting as such. Amounts received from the principal as advances and reimbursements must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. Sec. 3.28.050. Imposition of the tax - tax or fee levied. Except as provided in subsection (3) of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the city, whether the person's office or place of business be within or without the city. The tax shall be in amounts to be determined by application of rates against the rg oss proceeds of sale. gross income of business. or value of products, including byproducts— busW,e� aE , and by application of rates against the square footage of business office or facility space within the cityg smesss-of—,e-al , ts, as the case may be, as follows: (1) Gross receipts_tax._ within the thecit_y_i n___b_u_s n ess as anextractor _ _ __ __ _ -,_of_the_tax-,with _respect__to such business shall be equal to the value of the prod_uc�d_ ng__by-_ products,__extra_cted__wthn__the_Cty_f0[__sal e or for commercial_ or industrial use__mu-Iti-plied=_by_therateof=0=,_1.52h_undredths=_of=one==percent,j0 001.52=h The measure of_the tax is the value of_the_produ_cts,__ ncludngb_y-prod_ucM so extracted re_gard_less of_the_placeof_saleor_the fact that deliveres__may be_made-to_po_nts-_outside_=the=_cit-y., 33 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (b"pga=every=pgrson_engaing within the cityjp==b_u_s ness as a manufacture of the tax with_respect to such business shall be gqMAI=tg=lhg=yAtVg=gLlh"roductsjng[qq[Qg=b)t 6 hundredths of one of the tax is the value of the pjqdMqM incluclrnq=by-proclucts��� rqgAT41ge� tside the city, jc),„_____Upon=_ every—Person engag business of making sales at who lesa ,let__as__to=_such__personsg__the_amount_of tax with res ual to the ross proceeds of such sales of the business without r of article the rate of 0.152 hundredths of one pgrcent kq,�. (d business of making=5AIgs,,,at,,,reta=i_Ig___a_s,,,to___such-__personslhg=Anjgypk=gLtax with res sales of the business commodities or merchandise sold,==DjMjPpJJgq==,4y the rate of 0.046 hundredths of one pgrcent kq,00046�. every___person,,,,,engagnQ___within___the__cty___in___the business of tIj=,prIQUM kM both _printing__and publishrng==ngwepaperst magAKWAe,.periodicals -- W puhRa" newspapgM magazings,a n d__Per o d=ca Is ,_(ivy extracting for hire, and W processing__fo_r-_hire, as to such personA,=j4e=Ajjj9MRt=9jAax__on_such business shall be equal to the lied by the rate of 0.046 hundredths of one (f)L=====VRon everyperson engAgjRgj�he,,,_cty in the business of makin amount of tax with res ross 34 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance the rate of 0.152 hundredths of one RREWRLWA015ZL an in addition to those enumerated in the above subsectionsl==as_to=_such=_perso_ns of such activities shall be e the business multi 152 hundredths of one percent (0.0004 t HmH:ing=jbg=,5Me hereof I used in the sses to another accession,==njerggLK other than in the business of developing re or of custoMJzMg canned software_ pgreons=_engaged_in=_the business of rendering an" stitute a sale at retail ervice. *ts-� e—yame-Fepeftift (2) Square footage tax. Upon every person who leases, owns, occupies, or otherwise maintains an office, warehouse, or other place of business within the city for purposes of engaging in business activities in the city, the tax shall be measured by the number of square feet of warehouse business floor space or other business floor space for each office, warehouse, or other place of business leased, owned, occupied, or otherwise maintained within the city during the reporting period, calculated to the nearest square foot. (a) Subject to the reductions established in subsection f),. Tthe amount of the tax due shall be equal to the sum of the number of 35 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance square feet of business warehouse floor space for each business warehouse leased, owned, occupied, or otherwise maintained within the city multiplied by the rate of $0.03 quarterly for each calendar year, and the number of square feet of other business floor space for each office or other place of business leased, owned, occupied, or otherwise maintained within the city multiplied by the rate of $0.01 quarterly for each calendar year. (b) For purposes of this section, "business warehouse" means a building or structure, or any part thereof, in which goods, wares, merchandise or commodities are received or stored, whether or not for compensation, in furtherance of engaging in business. (c) For purposes of this section, 'other business floor space" means the floor space of an office or place of business, other than a business warehouse. (d) For purposes of this section, the square footage shall be computed by measuring to the inside finish of permanent outer building walls and shall include space used by columns and projections necessary to the building. Square footage shall not include stairs, elevator shafts, flues, pipe shafts, vertical ducts, heating or ventilation shafts, janitor closets, and electrical or utility closets. (e) Persons with more than one office, warehouse, or other place of business within the city must include all business warehouse floor space and other business floor space for all locations within the city. When a person rents space to another person, the person occupying the rental space is responsible for the square footage business tax on that rental space only if the renter has exclusive right of possession in the space as against the landlord. Space rented for the storage of goods in a warehouse where no walls separate the goods, and where the exclusive right of possession in the space is not held by the person to whom the space is rented, and space rented out in "self-storage" facilities whereby 36 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance customers have direct access to individual storage areas by separate entrances, shall be included in the warehouse business floor space of the person that operates the warehouse business, and not by the person renting the warehouse space. (f) The-wee tef-fflay-pfemu-4gate- Fu-Ies—a*d---fegu4atF&-n--. fegaf4wl-th-e-�' t ® see Tf the square footage tax imposed in this subsection L1 is less than or equal to the gross receipts h no square footage tax will be duea it the square footage tax imposed in this subsectio�n2j exceeds the grossreceipts tax imposed in subsection U the excess over-the-gross receiRLs tax payable under subsection 1). SUC4�- .. m.L.a.I I_ eWt= (3) Ta*-th-resheIds-. 37 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance afea-e���acflft apply-te—i*y-pefse n-whese-gFess-pfaceeds-ef--aW—, g-Fes--+neeme-&f-t-he w,es�, Ba4ue-ef-pfodttc as4he-<- 3Cmay be,--fF��es-cef,dt eted-wAh+n-t-h--e�t���� �i��ross receipts exeption(square footage old. LalAny— income of the business, and value of products, including by products, as the case maw from all activities conducted within the city during any quarter is equal to or less than $62 500.00 durincl that quarter shall be chapter.exempt from the gross receipts tax imposed in this The applicable tax rates shall onl�ap�ly to amounts in excess of $62 500.00 during any rter. (h) The square hshall not applyany-person unless that business space within the city exceeds the following old: M 4-QQ0 taxable square feet of business warehouse SR4C�o r Ni 12 QQQ '--hlg souare feet of other business floor space. This is a threshold and not an exemption. Tf the square footacle tax A"Hes it applies to all business space leased, owned, occupied or otherwise maintained by the tax�ayer during the applicable reporting Remd. 38 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance L4} Rules. The director may promulgate rules and regulations re ag rding the manner means d method of calculating any taximposed under this section. Sec. 3.28.070. Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes. (1) Persons who engage in business activities that are within the purview of two (2) or more subsections of section 3.28.050 shall be taxable under each applicable subsection. (2) Notwithstanding anything to the contrary herein, if imposition of the city's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the city's tax, and still apply the city tax to as much of the taxpayer's activities as may be subject to the city's taxing authority. (3) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied and that the taxpayer paid the amount of tax sought to be credited. (4) Credit for persons that sell in the city products that they extract or manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (a) with respect to the manufacturing of the products sold in the city, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. 39 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance (5) Credit for persons that manufacture products in the city using ingredients they extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this city shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products. (6) Credit for persons that sell within the city products that they print, or publish and print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. Sec. 3.28.075. Deductions to prevent multiple taxation of certain manufacturing activities involving more than one city with an eligible gross receipts tax. A person manufacturing products within the city using products manufactured by the same person outside the city may deduct from the measure of the manufacturing tax the value of products manufactured outside the city and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products. Sec. 3.28.076. Assignment of gross income derived from intangibles. Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). 40 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance Sec. 3.28.077. Allocation and apportionment of income when activities take place in more than one jurisdiction. Gross income, other than for persons subject to the provisions of chapter 82.14A RCW, shall be allocated and apportioned as follows: (1) Gross income derived from all activities other than those taxed as service or royalties under section 3.28.050(21)(g) shall be allocated to the location where the activity takes place. (2) In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. (3) In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: (a) The seller's place of business if the purchaser receives the digital product at the seller's place of business; (b) If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller; (c) If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith; (d) If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and (e) If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital 41 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(b) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold. (4) If none of the methods in subsection 3.28.077(3) for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in subsections 3.28.077(3)(a) through 3.28.077(3)(e), then the city and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the city to use an alternative method under this subsection. The city may employ an alternative method for allocating the income from the sale of digital products if the methods provided in subsections 3.28.077(3)(a) through 3.28.077(3)(e) are not available and the taxpayer and the city are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. (5) For purposes of subsections 3.28.077(3)(a) through 3.28.077(3)(e), "Receive" has the same meaning as in RCW 82.32.730. (6) Gross income derived from activities taxed as services and other activities taxed under section 3.28.050(21)(g) shall be apportioned to the city by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two. (a) The payroll factor is a fraction, the numerator of which is the total amount paid in the city during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the city if: (i) The individual is primarily assigned within the city; 42 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (ii) The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent or more of his or her service for the tax period in the city; or (iii) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent or more of his or her service in any city and the employee resides in the city. (b) The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if: (i) The customer location is in the city; or (ii) The income-producing activity is performed in more than one location and a greater proportion of the service-income- producing activity is performed in the city than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or (iii) The service-income-producing activity is performed within the city, and the taxpayer is not taxable in the customer location. (c) If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the city or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer's business activity, that one of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable: (i) Separate accounting; (ii) The use of a single factor; 43 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (iii) The inclusion of one or more additional factors that will fairly represent the taxpayer's business activity in the city; or (iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. (47) The definitions in this subsection apply throughout this section. (a) "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the city if the income would be taxable under the service classification if received from activities within the city, less any exemptions or deductions available. (b) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal internal revenue code. (c) "Individual" means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. (d) (d) "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. (e) "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. (f) "Service-taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. (g) "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the 44 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. (h) "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. (58) Assignment or apportionment of revenue under this Section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. Sec. 3.28.078. Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction. Notwithstanding RCW 35.102.130, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this state from which the taxpayer's business is directed or managed. As used in this section, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the department of revenue. Sec. 3.28.090. Exemptions. (1) Non-profit corporations or non-profit organizations. This chapter shall not apply to non-profit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons. 45 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (2) Health maintenance organization, health care service contractor, certified health plan. This chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201. (3) Public utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the utility tax provisions of Chapter 3.18 of the Kent City Code. (4) Investments - dividends from subsidiary corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. (5) International banking facilities. This chapter shall not apply to the gross receipts of an international banking facility. As used in this subsection, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international 46 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D). (6) Insurance business. This chapter shall not apply to amounts received by any person who is an insurer, or their appointed insurance producer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020, and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. (7) Farmers - agriculture. This chapter shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats or any other agricultural product that is raised, caught, produced, or manufactured by such persons. (8) Athletic exhibitions. This chapter shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. (9) Racing. This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Horse Racing Commission. (10) Ride sharing. This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. (11) Employees. (a) This chapter shall not apply to any person in respect to the person's employment in the capacity as an employee or servant as 47 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance distinguished from that of an independent contractor. For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. (b) A booth renter is an independent contractor for purposes of this chapter. (12) Amounts derived from sale of real estate. This chapter shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) days or longer. (13) Mortgage brokers' third-party provider services trust accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. (14) Amounts derived from manufacturing, selling or distributing motor vehicle fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.010 and exempt under RCW 82.36.440, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. (15) Amounts derived from liquor, and the sale or distribution of liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. (16) Casual and isolated sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. 48 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (17) Accommodation sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen days to reimburse in kind a previous accommodation sale by the buyer to the seller. (18) Taxes collected as trust funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. (19) United States, Washington State governmental entities. This chapter shall not apply to gross income received by the United State or any instrumentality thereof and by the State of Washington or any municipal subdivision thereof. (20) Research and development under federal contracts. This chapter shall not apply to amounts received for research and development activities performed on behalf of, under contract to, or in partnership with the United States government. For purposes of this section, "research and development activities" means activities performed to discover technological information, and technical and non-routine activities concerned with translating technological information into new or improved products, processes, techniques, formulas, inventions, or software, the application of which is intended to be useful in the development of a new or improved federal project or component thereof. Sec. 3.28.100. Deductions. In computing the license fee or tax, there may be deducted from the measure of tax the following items: 49 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance (1) Compensation from public entities for health or social welfare services - exception. In computing tax, there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization (as defined in RCW 82.04.431) or by a municipal corporation or political subdivision, except deductions are not allowed under this subsection for amounts that are received under an employee benefit plan. For purposes of this subsection, "employee benefit plan" includes the military benefits program authorized in 10 USC Sec. 1071 et seq., as amended, or amounts payable pursuant thereto. (2) Interest on investments or loans secured by mortgages or deeds of trust. In computing tax, to the extent permitted by Chapter 82.14A RCW, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non-transient residential properties. (3) Interest on obligations of the state, its political subdivisions, and municipal corporations. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the State of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof. (4) Interest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives. In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and 50 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance which is engaged solely in the business of making loans and providing finance-related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm-related or aquatic-related services to these individuals or entities. (5) Receipts from tangible personal property delivered outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. (6) Cash discount taken by purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product' provisions. (7) Credit losses of accrual basis taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (8) Constitutional prohibitions. In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States. (9) Receipts from the sale of tangible personal property and retail services delivered outside the city but within Washington. Amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property delivered to the buyer or the buyer's representative outside the city but within the State of Washington may be 51 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance deducted from the measure of tax under the retailing, retail services, or wholesaling classification. (10) Professional employer services. In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement. Sec. 3.28.120. Tax part of overhead. It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. Sec. 3.28.130. Limitation of revenue received. Revenue received from the tax imposed by this chapter shall first be applied to the cost of administering this tax, which shall not exceed $300,000 per annum. This allocation for administrative costs shall be adjusted annually in accordance with the applicable inflation factor listed in the consumer price index. One hundred percent of the remaining revenue shall be allocated to the design, construction, maintenance, improvement, operation, and repair of the city's transportation infrastructure and appurtenant improvements including, without limitation, streets, curbs, gutters, sidewalks, bicycle and pedestrian lanes and paths, street trees, 52 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance drainage, lighting, and signalization up to a total annual allocation of four million seven hundred thousand dollars ($4,700,000). Any remaining revenues received shall be applied to the capital improvement fund and allocated according to the direction of the city council. Sec. 3.28.140. Severability Clause. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. SECTION 3. — Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state or federal laws, codes, rules, or regulations. SECTION 4. — Petition for referendum. A referendum procedure is required pursuant to RCW 35.21.706 for cities first imposing a business and occupation tax. A referendum petition may be filed with the City Clerk within seven (7) days of passage of this ordinance. Within ten (10) days, the City Clerk shall confer with the petitioner concerning the form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the City Attorney. The petitioner shall have thirty (30) days in which to secure the signatures of not less than fifteen (15) percent of the registered voters of the city, as of the last municipal general election, upon petition forms which contain the ballot title and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the 53 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance referendum measure to the next election ballot within the city or at a special election ballot as provided pursuant to RCW 35.17.260(2). This above procedure shall be the exclusive method of referendum for this ordinance and shall supersede the procedures provided under chapters 35.17 and 35A.11 RCW and all other statutory or other provisions for initiative or referendum that might otherwise apply. SECTIONS. — SeverabilitY. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this ordinance and that remaining portion shall maintain its full force and effect. SECTION 6, — Effective Date. This ordinance shall take effect and be in force beginning January 1, 2013, which is at least thirty (30) days from and after its passage and publication, as provided by law. SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK 54 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED: day of 12012. APPROVED: day of 12012. PUBLISHED: day of 12012. I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK 55 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, repealing Ordinance No. 4053 and adding a new Chapter 3.29 to the Kent City Code entitled, "Business and Occupation Tax - Administrative Provisions." THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - Repealer. Ordinance No. 4053 is hereby repealed in its entirety. SECTION 2. - Amendment. Title 3 of the Kent City Code is amended to adopt a new Chapter 3.29, entitled, "Business and Occupation Tax - Administrative Provisions," as follows: Chapter 3.29 Business and Occupation Tax - Administrative Provisions 1 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.010. Purpose. The purpose of this chapter is to provide administrative guidelines and provisions to implement, administer and enforce the city's business and occupation tax ordinance, chapter 3.28 of the Kent City Code. Sec. 3.29.015. Application of chapter stated. The provisions of this chapter shall apply with respect to the taxes imposed under chapter 3.28 KCC and under other titles, chapters, and sections in such manner and to such extent as indicated in each such title, chapter or section. Sec. 3.29.020. Definitions. For purposes of this chapter, the definitions contained in chapter 3.28 KCC shall apply equally to the provisions of this chapter unless the term is defined otherwise in this chapter. In addition, the following definitions will apply: A. "Reporting period." "Reporting period" means: (1) A one-month period beginning the first day of each calendar month (monthly); or (2) A three-month period beginning the first day of January, April, July or October of each year (quarterly); or (3) A twelve-month period beginning the first day of January of each year (annual). B. "Return." "Return" means any document a person is required by the city to file to satisfy or establish a tax or fee obligation that is administered or collected by the city and that has a statutorily defined due date. C. "Successor." "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or 2 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. D. "Tax year," "taxable year." "Tax year" or "taxable year" means the calendar year. Sec. 3.29.021. Definitions -- References to Chapter 82.32 RCW. Where provisions of Chapter 82.32 RCW are incorporated in Section 3.29.090 of this chapter, "Department" as used in the RCW shall refer to the "Director" as defined in section 3.28.030 and "warrant" as used in the RCW shall mean "citation or criminal complaint." Sec. 3.29.025. Registration requirements. Any person who engages in any business or performs any act that is subject to the provisions of Title 5 KCC or chapter 3.18 KCC, relating to utility business taxes, chapter 3.20 KCC, relating to natural or manufactured gas line use taxes, chapter 3.21 KCC, relating to gambling taxes, chapter 3.23 KCC relating to lodging taxes, chapter 3.26, relating to admissions taxes, and chapter 3.28 KCC, relating to business and occupation taxes, even if that person is not subject to any tax imposed thereby, shall apply under the rules and regulations as the department may prescribe and, upon approval, receive from the department a registration certificate applicable to all such business engaged in or activity performed. No person shall engage in any business without being registered in compliance with the provisions of this section. and anperson who is so registered must also comply with chapter 5.01 C. 3 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.030. Registrationi4ieense certificates. A . The city will issue a registration certificate free of charge, acknowledging registration—a* The registration certificate shall be personal and nontransferable and shall be valid as long as the taxpayer continues in that business and pays any tax imposed by the city. " e Tac� a— 82 84-109ot , , t13tIC.5:Tll Clle p ted F iff rry srv& Fn ra f rr.srvr L<n Fln nru G CVl fYCT LC4A—L"V—a U IYYCI"C,l L 3L-Cfl f 1 eYCY"e,l Ce—UA� l�Cfl CY"YP f:SC e-" t r ,h d4I-be-fn-a4e-A4th--t he F F4 t3�VTV 11"9 . In the event business is transacted at two or more separate places by one taxpayer, a separate registration certificate for each place at which business is transacted shall be required. These additional certificates shall be issued at no additional fee. Where a taxpayer changes the nature of business conducted or conducts additional activities upon which a tax is imposed by Title 5 KCC or chapter 3.18 KCC, relating to utility business taxes, chapter 3.20 KCC, relating to natural or manufactured gas line use taxes, chapter 3.21 KCC, relating to gambling taxes, chapter 3.23 KCC relating to lodging taxes, chapter 3.26, relating to admissions taxes, and chapter 3.28 KCC, relating to business and occupation taxes, that taxpayer shall apply for and receive a new registration certificate at no additional fee. 4 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Each registration certificate shall be numbered and shall show the name, business location, mailing address and any other information that the director deems necessary. The certificate of registration shall be posted in a conspicuous place at the place of business for which it is issued. Where a place of business of the taxpayer is changed, the taxpayer shall notify the department and upon approval, the department will issue a new certificate at no additional fee. Sec. 3.29.040. When due and payable - Reporting periods - Monthly, quarterly, and annual returns - Threshold provisions or Relief from filing requirements - Computing time periods - Failure to file returns. (1) Gther t tThe tax imposed by this chapter shall be due and payable in quarterly installments. At the director's discretion, businesses may be assigned to a monthly or annual reporting period depending on the tax amount owing or type of tax. Tax payments are due on or before the last day of the next month following the end of the assigned reporting period covered by the return. (2) Taxes shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the director. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true. (3) Tax returns must be filed and returned by the due date whether or not any tax is owed. (4) For purposes of the tax imposed by chapter 3.28 KCC, any person whose value of products, gross proceeds of sales, or gross income of the 5 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance business, subject to tax after all allowable deductions, is equal to or less than Sixty Two Thousand Five Hundred Dollars ($62,500) in the current quarter, and whose combined taxable business warehouse square footage within the city is four thousand (4 0001 souare feet or less and whose combined taxable other business square footage is twelve thousand (12,000)_square feet or less, shall file a return, declare no tax due on their return, and submit the return to the director. The gross receipts and deduction amounts shall be entered on the tax return even though no tax may be due. (5) A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity. (6) Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter the day of the act or event from which the designated period of time runs shall not be included. The last day of the period shall be included unless it is a Saturday, Sunday, or city or federal legal holiday, in which case the last day of such period shall be the next succeeding day which is neither a Saturday, Sunday, or city or federal legal holiday. (7) If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the director's estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the city by the taxpayer. The director shall notify the taxpayer by mail of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. 6 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.050. Payment methods - Mailing returns or remittances - Time extension - Deposits - Recording payments - Payment must accompany return - NSF checks. (1) Taxes shall be paid to the director in United States currency by bank draft, certified check, cashier's check, personal check, money order, cash, or by wire transfer or electronic payment if such wire transfer or electronic payment is authorized by the director. If payment so received is not paid by the bank on which it is drawn, the taxpayer, by whom such payment is tendered, shall remain liable for payment of the tax and for all legal penalties, the same as if such payment had not been tendered. Acceptance of any sum by the director shall not discharge the tax or fee due unless the amount paid is the full amount due. (2) A return or remittance that is transmitted to the city by United States mail shall be deemed filed or received on the date shown by the cancellation mark stamped by the Post Office upon the envelope containing it. The director may allow electronic filing of returns or remittances from any taxpayer. A return or remittance which is transmitted to the city electronically shall be deemed filed or received according to procedures set forth by the director. (3) If a written request is received prior to the due date, the director, for good cause, may grant, in writing, additional time within which to make and file returns. (4) The director shall keep full and accurate records of all funds received or refunded. The director shall apply payments first against all penalties and interest owing, and then upon the tax, without regard to any direction of the taxpayer. (5) For any return not accompanied by a remittance of the tax shown to be due thereon, the taxpayer shall be deemed to have failed or refused to file a return and shall be subject to the penalties and interest provided in this chapter. 7 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance (6) Any payment made that is returned for lack of sufficient funds or for any other reason will not be considered received until payment by certified check, money order, or cash of the original amount due, plus a "non- sufficient funds" (NSF) charge of twenty-five dollars ($25.00) is received by the director. t C YPf Tf U ISN.C.YIC CTTCCk w , 1 ned—te—1-e '1"Ye- m.e s .ece4 a d (7) The Director is authorized, but not required, to mail tax return forms to taxpayers, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from filing returns and making payment of the taxes or fees, when and as due under this chapter. Sec. 3.29.060. Records to be preserved - Examination - Estoppel to question assessment. Every person liable for any fee or tax imposed by this chapter shall keep and preserve, for a period of five (5) years after filing a tax return, such records as may be necessary to determine the amount of any fee or tax for which the person may be liable; which records shall include copies of all federal income tax and state tax returns and reports made by the person. All books, records, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal income tax and state tax returns and reports shall be open for examination at any time by the director or its duly authorized agent. Every person's business premises shall be open for inspection or examination by the director or a duly authorized agent. (1) If a person does not keep the necessary books and records within the city, it shall be sufficient if such person (a) produces within the city such books and records as may be required by the director, or (b) bears the cost of examination by the director's agent at the place where such books and records are kept; provided that the person electing to bear 8 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance such cost shall pay in advance to the director the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination. (2) If national security clearance status or federal regulation bars access to certain documents, facilities or other necessary information, the auditor can implement alternative audit methods that determine, as accurately as possible and with the least possible expenditure of time, the amount of tax due. (3) Any person who fails, or refuses a department request, to provide or make available records, or to allow inspection or examination of the business premises, shall be forever barred from questioning in any court action, the correctness of any assessment of taxes made by the city for any period for which such records have not been provided, made available or kept and preserved, or in respect of which inspection or examination of the business premises has been denied. The director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the estimate of the tax or fees due. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the city by the taxpayer. The director shall notify the taxpayer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. Sec. 3.29.070. Accounting methods. (1) A taxpayer may file tax returns in each reporting period with amounts based upon cash receipts only if the taxpayer's books of account are kept on a cash receipts basis. A taxpayer that does not regularly keep books of account on a cash receipts basis must file returns with amounts based on the accrual method. 9 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance (2) The taxes imposed and the returns required hereunder shall be upon a calendar year basis. Sec. 3.29.080. Public work contracts - Payment of fee and tax before final payment for work. The director may, before issuing any final payment to any person performing any public work contract for the city, require such person to pay in full all license fees or taxes due under this title from such person on account of such contract or otherwise, and may require such taxpayer to file with the director a verified list of all subcontractors supplying labor and/or materials to the person in connection with said public work. Sec. 3.29.090. Underpayment of tax, interest, or penalty — Interest. (1) If, upon examination of any returns, or from other information obtained by the director, it appears that a tax or penalty less than that properly due has been paid, the director shall assess the additional amount found to be due and shall add thereto interest on the tax only. The director shall notify the person by mail of the additional amount, which shall become due and shall be paid within thirty (30) days from the date of the notice, or within such time as the director may provide in writing. (2) (a) The director shall compute interest in accordance with RCW 82.32.050 as it now exists or as it may be amended. (b) If section 3.29.090(2)(a) is held to be invalid, then the provisions of RCW 82.32.050 existing at the effective date of this ordinance shall apply. Sec. 3.29.095. Time in which assessment may be made. 10 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance The director shall not assess, or correct an assessment for, additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were incurred, except that the director may issue an assessment: (1) Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing 10 years prior to the close of the calendar year in which the person was contacted in writing by the director; (2) Against a person that has committed fraud or who misrepresented a material fact; or (3) Against a person that has executed a written waiver of such limitations. Sec. 3.29.100. Over payment of tax, penalty, or interest - Credit or refund - Interest rate - Statute of limitations. (1) If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer's records and tax returns, the director determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer's account or shall be refunded to the taxpayer. Except as provided in subsection (2) of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than four (4) years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed. (2) The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the director discovers that a refund or credit is due. 11 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance (3) Refunds shall be made by means of vouchers approved by the director and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide. (4) Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in subsection (3) of this section, upon the filing with the director a certified copy of the order or judgment of the court. (5) (a) -The director shall compute interest on refunds or credits of amounts paid or other recovery allowed a taxpayer in accordance with RCW 82.32.060 as it now exists or as it may be amended. (b) If section 3.29.100(5)(a) is held to be invalid, then the provisions of RCW 82.32.060 existing at the effective date of this ordinance shall apply. Sec. 3.29.110. Late payment - Disregard of written instructions - Evasion - Penalties. (1) If payment of any tax due on a return to be filed by a taxpayer is not received by the director by the due date, the director shall add a penalty in accordance with RCW 82.32.090(1), as it now exists or as it may be amended. (2) If the director determines that any tax has been substantially underpaid as defined in RCW 82.32.090(2), there shall be added a penalty in accordance with RCW 82.32.090(2), as it now exists or as it may be amended. (3) If a citation or criminal complaint is issued by the director for the collection of taxes, fees, assessments, interest or penalties, there shall be added thereto a penalty in accordance with RCW 82.32.090(3), as it now exists or as it may be amended. 12 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance (4) If the director finds that a person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the director a 4eense registration certificate as required by KCC 3.29.025 - .030, the director shall impose a penalty in accordance with RCW 82.32.090(4), as it now exists or as it may be amended. No penalty shall be imposed under this subsection (4) if the person who has engaged in business without a registration certificate license-obtains a registration certificate r®ce®®se prior to being notified by the director of the need to be __.._ _registered. (5) If the director determines that all or any part of a deficiency resulted from the taxpayer's failure to follow specific written tax reporting instructions, there shall be assessed a penalty in accordance with RCW 82.32.090(5), as it now exists or as it may be amended. (6) If the director finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the director shall assess a penalty in accordance with RCW 82.32.090(6), as it now exists or as it may be amended. (7) The penalties imposed under subsections (1) through (5) above of this section can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law. (8) The director shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due. (9) For the purposes of this section, "return" means any document a person is required by the city to file to satisfy or establish a tax or fee obligation that is administered or collected by the city, and that has a statutorily defined due date. 13 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance (10) If incorporation into the Kent City Code of future changes to RCW 82.32.090 is deemed invalid, then the provisions of RCW 82.32.090 existing at the time this ordinance is effective shall apply. Sec. 3.29.120. Cancellation of penalties. (1) The director may cancel any penalties imposed under section 3.29.110(1) if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the return and pay the tax but was, nevertheless, due to circumstances beyond the taxpayer's control, unable to file or pay by the due date. The director has no authority to cancel any other penalties or to cancel penalties for any other reason except as provided in subsection (3). (2) A request for cancellation of penalties must be received by the director within 30 days after the date the department mails the notice that the penalties are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rests upon the taxpayer. (3) The director may cancel the penalties in section 3.29.110(1) one time if a person: (a) Is not currently i®$cnsed registered and filing returns; (b) Was unaware of its responsibility to file and pay tax; and (c) Obtained a registration certificate and an}�applicable business licenses and filed past due tax returns within 30 days after being notified by the department. (4) The director shall not cancel any interest charged upon amounts due. 14 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.130. Taxpayer quitting business - Liability of successor. (1) Whenever any taxpayer quits business, sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due. (2) Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the city from the taxpayer until such time as: a) the taxpayer shall produce a receipt from the city showing payment in full of any tax due or a certificate that no tax is due, or b) more than six (6) months has passed since the successor notified the Director of the acquisition and the director has not issued and notified the successor of an assessment. (3) Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer. (4) Notwithstanding the above, if a successor gives written notice to the director of the acquisition, and the director does not within six (6) months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. Sec. 3.29.140. Administrative Appeal. Any person, except one who has failed to comply with section 3.29.060, aggrieved by the amount of the fee or tax determined by the director to be required under the provisions of this chapter may pay the amount due and appeal from such determination by filing a written notice of appeal with the city clerk within 30 days from the date written notice of such amount was mailed to the 15 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance taxpayer. A $250.00 filing fee shall be submitted with the appeal, which filing fee is required to process the appeal. The city's hearing examiner shall, as soon as practical, fix a time and place for the hearing of such appeal, and shall cause a notice of the time and place thereof to be delivered or mailed to the parties. The hearing shall be conducted in accord with the provisions of chapter 1.04 KCC. The decision of the hearing examiner shall indicate the correct amount of the fee or tax owing. Sec. 3.29.150. Judicial Review of Director's Determination. Any person, except one who has failed to comply with section 3.29.060, having paid any tax as required and feeling aggrieved by the amount of the tax assessed, and after first exhausting the right of administrative appeal set forth in this chapter, may seek judicial review in the King County Superior Court within 21 days of the date of the decision of the hearing examiner. The taxpayer shall set forth the amount of the tax imposed upon the taxpayer that the taxpayer concedes to be the correct amount of tax and the reason why the tax imposed should be reduced or abated. The trial in the Superior Court shall be de novo in accordance with the laws of the State of Washington. The burden shall rest upon the taxpayer to prove that the tax paid by the taxpayer is incorrect, either in whole or in part, and to establish the correct amount of the tax. Sec. 3.29.160. Director to make rules. The director shall have the power, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions of this chapter and it shall be unlawful to violate or fail to comply with, any such rule or regulation. 16 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.170. Ancillary allocation authority of Director. The director is authorized to enter into agreements with other Washington cities which impose an "eligible gross receipts tax": (1) To conduct an audit or joint audit of a taxpayer by using an auditor employed by the city of Kent, another city, or a contract auditor, provided, that such contract auditor's pay is not in any way based upon the amount of tax assessed; (2) To allocate or apportion in a manner that fairly reflects the gross receipts earned from activities conducted within the respective cities the gross proceeds of sales, gross receipts, or gross income of the business, or taxes due from any person that is required to pay an eligible gross receipts tax to more than one Washington city. (3) To apply the city's tax prospectively where a taxpayer has no office or place of business within the city and has paid tax on all gross income to another Washington city where the taxpayer is located; provided that the other city maintains an eligible gross receipts tax, and the income was not derived from contracts with the city. Sec. 3.29.180. Mailing of Notices. Any notice required by this chapter to be mailed to any taxpayer, re isg trant or licensee shall be sent by ordinary mail, addressed to the address of the taxpayer, registrant or licensee as shown by the records of the director. Failure of the taxpayer, registrant or licensee to receive any such mailed notice shall not release the taxpayer, re isg trant or licensee from any tax, fee, interest, or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. It is the responsibility of the taxpayer to inform the director in writing about a change in the taxpayer's address. 17 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.190. Tax declared additional. The lieense- d-tax And an-aapplicable fee herein levied shall be additional to any license-er re fee or tax imposed or levied under any law or any other ordinance of the City of Kent except as herein otherwise expressly provided. Sec. 3.29.200. Public disclosure - Confidentiality - Information sharing. (1) For purposes of this section, defined terms shall be as set forth in section 3.29.020: (a) "Disclose" means to make known to any person in any manner whatever a return or tax information. (b) "Tax information" means: (i) A taxpayer's identity; (ii) The nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemption, credits, assets, liability, net worth, tax liability deficiencies, over assessments, or tax payments, whether taken from the taxpayer's books and records or any other source; (iii) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing; or (iv) Other data received by, recorded by, prepared by, or provided to the city with respect to the determination or the existence, or possible existence, of liability, or the amount thereof, of a person under chapter 3.28 KCC for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Nothing in this chapter requires any person possessing data, material, or documents made 18 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance confidential and privileged by this section to delete information from such data, material or documents so as to permit its disclosure. (c) "City agency" means every city office, department, division, bureau, board, commission, or other city agency. (d) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer. (2) Returns and tax information are confidential and privileged, and except as authorized by this section, neither the director nor any other person may disclose any return or tax information. (3)-_This section does not prohibit the director from: (a)- Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding: (i) In respect of any tax imposed under chapter 3.28 if the taxpayer or its officer or other person liable under this title is a party in the proceeding; or (ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding. (b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to section 3.29.160, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or 19 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court; (c) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof; (d) Disclosing such return or tax information, for official purposes only, to the mayor or city attorney, or to any city agency, or to any member of the city council or their authorized designees dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions; (e) Permitting the city's records to be audited and examined by the proper state officer, his or her agents and employees; (f) Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought or where otherwise allowed to be disclosed under this section; (g) Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its 20 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of the city; (h) Disclosing any such return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies or their successors, for official purposes; (i) Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410; (j) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers and the active/closed status of such registrations, state or local business license registration identification and the active/closed status and effective dates of such licenses, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. Except that this subsection may not be construed as giving authority to the City or any recipient to give, sell, or provide access to any list of taxpayers for any commercial purpose; (k) Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of 21 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure; (1) Disclosing such return or tax information to the United States department of agriculture, or successor department or agency, for the limited purpose of investigating food stamp fraud by retailers; (m) Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the city for a filed tax warrant, judgment, or lien against the real property; (n) Disclosing to a person against whom the director has asserted liability as a successor under section 3.29.130 return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded; (o) Disclosing real estate excise tax affidavit forms filed under chapter 3.19 KCC in the possession of the city, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax; (p) Disclosing such return or tax information to the court or hearing examiner in respect to the city's application for a subpoena if there is probable cause to believe that the records in possession of a third party will aid the director in connection with its official duties under this title or a civil or criminal investigation. (4) (a) —The director may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in section 3.29.200(4). The disclosure must be in connection with the director's official duties under KCC Title 3, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The director may disclose return or tax information such as invoices, contracts, bills, statements, resale or 22 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance exemption certificates, or checks. However, the director may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents. (b) Before disclosure of any tax return or tax information under section 3.29.200(4), the director must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The director may not disclose any tax return or tax information under section 3.29.200(4) until the time period allowed in subsection (c) of section 3.29.200(4) has expired or until the court has ruled on any challenge brought under subsection (c) of section 3.29.200(4). (c) The person in possession of the data, materials, or documents to be disclosed by the director has twenty (20) days from the receipt of the written request required under subsection (b) of section 3.29.200(4) to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the director if the court determines that: (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive; (ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the director, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or (iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner. 23 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance (d) The director must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. (e) Requesting information under subsection (b) of section 3.29.200(4) that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section. (5) Service of a subpoena issued by the court or by the hearing examiner pursuant to chapter 2.32 KCC and the ancillary administrative rules does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena issued by the court or by the hearing examiner may disclose the existence or content of the subpoena to that person's legal counsel. (6) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the city and any person acquiring knowledge of any return or tax information as provided under subsections (3)(d), (e), (f), (g), (h), (i), or (k) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this city for a period of two years thereafter. Sec. 3.29.210. Tax constitutes debt. Any lieense-applicable fee or tax due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the City of Kent and may be collected in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. 24 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.220. Unlawful actions - Violation - Penalties. (1) It shall be unlawful for any person subject to the tax, fee or registration provisions of b®ter fcc� this chapter: (a) To violate or fail to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the director; (b) To make any false statement on any license or registration application or tax return; (c) To aid or abet any person in any attempt to evade payment of a licenseorfe stfatkwfee, or tax; (d) To fail to appear or testify in response to a subpoena; (e) To testify falsely in any investigation, audit, or proceeding conducted pursuant to this chapter. (2) Violation of any of the provisions of this chapter is a gross misdemeanor. Any person convicted of a violation of this chapter may be punished by a fine not to exceed $1,000, imprisonment not to exceed one year, or both fine and imprisonment. Penalties or punishments provided in this chapter shall be in addition to all other penalties provided by law. (3) Any person, or officer of a corporation, convicted of continuing to engage in business after the revocation of a license registration certificate shall be guilty of a gross misdemeanor and may be punished by a fine not to exceed $5,000, or imprisonment not to exceed one year, or both fine and imprisonment. Sec. 3.29.230 Suspension or Revocation of registration certificate. (1) The director, or designee, shall have the power and authority to suspend or revoke any license r istration certificate issued under the provisions of this chapter. The director, or designee, shall notify such r®cen®see—registrant in writing by certified mail of the suspension or 25 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance revocation of his or her registration certificate ; -e-nse-and the grounds therefor. Any registration certificate . e-issued under this chapter may be suspended or revoked based on one or more of the following grounds: (a) The registration certificate . e-was procured by fraud or false representation of fact. (b) The 4eensee—registrant has failed to comply with any provisions of chapters 3.28 and 3.29 KCC. (c) The liee®®see—registrant has failed to comply with any provisions of the Kent City Code. (d) The rice®®see registrant is in default in any payment of any license fee or tax under chapters 3.28 and 3.29 KCC. (e) -The eensee registrant or employee has been convicted of a crime involving the business. (2) Any licensee-registrant may, within 30 days from the date that the suspension or revocation notice was mailed to the 4eensee e isg tram, appeal from such suspension or revocation by filing a written notice of appeal ("petition") setting forth the grounds therefor with the director. A copy of the petition must be provided by the re isg trantnder, �to the director and the city attorney on or before the date the petition is filed with the city clerk. The hearing shall be conducted in accordance with the procedures for hearing contested cases set out in KCC 3.29.140. The hearing examiner shall set a date for hearing said appeal and notify the registrant;;ee&ee-_by mail of the time and place of the hearing. After the hearing thereon the hearing examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or overrule the suspension or revocation and reinstate the registration certificate, and may impose any terms upon the continuance of the registration certificate . No suspension or revocation of a registration certificate e issued pursuant to the provisions of this subchapter shall take effect until 26 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 30 days after the mailing of the notice thereof by the director, and if appeal is taken as herein prescribed the suspension or revocation shall be stayed pending final action on the appeal. All registration certificatesr®ee-n®sc -which are suspended or revoked shall be surrendered to the city on the effective date of such suspension or revocation. The decision of the hearing examiner shall be final. The _ __..___ registrant and/or the director may seek review of the decision by the Superior Court of Washington in and for King County. If review is sought as herein prescribed the suspension or revocation shall be stayed pending final action by the Superior Court. th+s sube etffncd t thcnee® Sec. 3.29.240. Closing agreement provisions. The director may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the chapters within this title and administered by this chapter for any taxable period(s). Upon approval of such agreement, evidenced by execution thereof by the director and the person so agreeing, the agreement shall be final and conclusive as to the tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact: (1) The case shall not be reopened as to the matters agreed upon, or the agreement modified, by the director or the taxpayer, and (2) In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. 27 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance Sec. 3.29.250. Charge-off of uncollectible taxes. The director may charge off any tax, penalty, or interest that is owed by a taxpayer, if the director reasonably ascertains that the cost of collecting such amounts would be greater than the total amount that is owed or likely to be collected from the taxpayer. SECTION 3. - Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state or federal laws, codes, rules, or regulations. SECTION 4. - Petition for referendum. A referendum procedure is required pursuant to RCW 35.21.706 for cities first imposing a business and occupation tax. A referendum petition may be filed with the City Clerk within seven (7) days of passage of this ordinance. Within ten (10) days, the City Clerk shall confer with the petitioner concerning the form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the City Attorney. The petitioner shall have thirty (30) days in which to secure the signatures of not less than fifteen (15) percent of the registered voters of the city, as of the last municipal general election, upon petition forms which contain the ballot title and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the referendum measure to the next election ballot within the city or at a special election ballot as provided pursuant to RCW 35.17.260(2). This above procedure shall be the exclusive method of referendum for this ordinance and shall supersede the procedures provided under 28 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance chapters 35.17 and 35A.11 RCW and all other statutory or other provisions for initiative or referendum that might otherwise apply. SECTIONS. - SeverabilitY. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this ordinance and that remaining portion shall maintain its full force and effect. SECTION 6, - Effective Date. This ordinance shall take effect and be in force beginning January 1, 2013, which is at least thirty (30) days from and after its passage and publication, as provided by law. SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK 29 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED: day of 12012. APPROVED: day of 12012. PUBLISHED: day of 12012. I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK 30 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance REPORTS FROM STAFF, COUNCIL COMMITTEES, AND SPECIAL COMMITTEES A. Council President B. Mayor C. Administration D. Economic & Community Development E. Operations F. Parks & Human Services G. Public Safety H. Public Works I. Regional Fire Authority J. Other K. Other KENT WASHINGTON OPERATIONS COMMITTEE MINUTES October 16, 2012 Committee Members Present: Les Thomas, Chair, Dennis Higgins and Jamie Perry The meeting was called to order by L. Thomas at 4:02 p.m. 1. APPROVAL OF MINUTES DATED SEPTEMBER 18, 2012 J. Perry moved to approve the Operations Committee minutes dated September 18, 2012. D. Higgins seconded the motion, which passed 3-0. 2. APPROVAL OF CHECK SUMMARY REPORT DATED SEPTEMBER 16, 2012 THROUGH SEPTEMBER 30, 2012. D. Higgins moved to recommend that the City Council approve the Check Summary Report dated September 16, 2012 thru September 30, 2012. J. Perry seconded the motion, which passed 3-0. 3. CONSULTANT SERVICE AGREEMENT- JABEZ &ASSOCIATES DBA THE EDGE ADVISORY GROUP L. Patterson presented the consultant agreement for the advisory group to conduct Cultural Competency training for the City of Kent. The training is done in three different phases. First phase is an intensive phase with senior management team. This phase is a 2 day seminar which includes where we are, how we got there and where we want to be and how to get there. That will help with the curriculum for training the employees. All employees will be trained by 2014. It is a 3 year agreement. Six companies applied to the RFP and four were chosen to come to the interview. The Edge Advisory Group was the best fit for this service. The City employees did not have cultural competency training even though there was diversity training available for the employees. Motion by J. Perry, seconded by D. Higgins, to move to recommend that the Mayor be authorized to enter into a consultant services agreement with Jabez and Associates dba The Edge Advisory Group which provides training and delivers a tactical approach to support the city of Kent in achieving the strategic goal of fostering inclusiveness, in an amount not to exceed $40,000 per year for 2012, 2013, and 2014. The motion passed 3-0. 4. FINANCIAL SUMMARY REPORT AS OF AUGUST 3 1ST, 2012 B. Nachlinger explained that there is an increase in General Fund of $638,000 for the year. That is up by 160,000 from last month. We are anticipating revenues to be down about $490,000 from budget and expenses to be down as well. Dennis asked if this is before the changes that take affect November I". and B. Nachlinger replied that is correct. Dennis asked if there is a way to turn this economy around with Sales tax. Bob replied that the internet sales are up and the big discount stores are doing fairly well. We do not have big discount stores in the City of Kent so it does not Operations Committee Minutes September 18, 2012 Page: 2 help with our revenues. The committee members, B. Nachlinger and Mayor discussed the budget issues. The meeting was adjourned at 4:20 p.m. by L. Thomas. Satwinder Kaur Operations Committee Secretary 400 � KENT ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES October 8, 2012 Committee Members Committee Chair Jamie Perry, Deborah Ranniger, Bill Boyce. Perry called the meeting to order at 5:30 p.m. 1. Approval of Minutes Councilmember Ranniger Moved and Councilmember Boyce Seconded a Motion to approve the Minutes of August 13, 2012. Motion PASSED 3-0. 2. Glenbrook Neighborhood Council Recognition - Resolution Neighborhood Program Coordinator Toni Azzola introduced members of the Glenbrook Neighborhood Council: ValRae Pullin, Patty Alfonso, Sherry White, and Phyllis Haynen. Azzola stated that the Glenbrook Neighborhood consists of 148 homes and is located off 152nd Ave. SE south of Kent Kangley. Committee Chair Perry described how the neighborhood grant program could benefit Glenbrook and stated that the Glenbrook Neighborhood Council Resolution would go before City Council for adoption. Perry congratulated the Glenbrook Neighborhood for their participation and noted that the City has formed 23 neighborhood councils to date. Councilmember Boyce Moved and Councilmember Ranniger Seconded a Motion recommending Council approve and adopt the proposed resolution which recognizes the Glenbrook Neighborhood Council, supports its community building efforts, and confers all opportunities offered by the City's Neighborhood Program. Motion PASSED 3-0. 3. KCC 12.05 — Mobile Home Parks Ordinance ZCA-2012-2 Planner Katie Graves stated that these amendments address minor changes to the Mobile Home Park (MHP) Code, Title 12.05 of Kent City Code. Amendments provide consistency with current code enforcement regulations, update definitions noted elsewhere in code, and provide updates to the review process for mobile home parks for consistency with the existing permit process. She stated that the Land Use and Planning Board recommended approval of these amendments. After briefly deliberating, Councilmember Ranniger Moved and Councilmember Boyce Seconded a Motion recommending to City Council approval of amendments to Kent City Code Title 12.05, Mobile Home Park Code as recommended by the Land Use and Planning Board. Motion PASSED 3-0. 4. 2012 Annual Docket Report Planning Director Fred Satterstrom defined the annual docketing process, stating that the submittal deadline is yearly on the first business day of September. The public or city staff may submit suggestions for amendments to the comprehensive plan text, land use plan map designations, or the City's development regulations. Satterstrom further noted that this process is described on the city's website and invites the public to participate. Satterstrom stated that four (4) items to amend Kent's Comprehensive Plan (KCP) were submitted for consideration as part of the Planning Services 2013 Work Program: (1) relates to the 2012 Comprehensive Sewer Plan, (2) relates to the 2011 Water System Plan, (3) relates to the 2009 Kent Fire Department's (KFD) Standards of Response Coverage and adds the KFD's Regional Fire Authority's Capital Facilities and Equipment Plan to Appendix A, (4) amends the Capital Facilities Element of the KCP related to current Fire and Life Safety Services. Satterstrom stated that staff will return to the ECDC for action in considering which of these proposals will be included in the 2013 work program. ECDC Minutes October 8,2012 Page 1 of 3 Informational Only S. Sound Transit — South Corridor Update Project Manager Cathal Ridge (on behalf of Rachel Smith) reported that the Federal Way Transit Extension (FWTE) project runs from the S. 2001h Street Transit Station to the Federal Way Transit Center, a distance of 7.6 miles. He stated that the Scope of Work includes analyzing alternatives, completing the Draft Environmental Impact Statement (EIS) and conceptual engineering by the end of 2014, with completion of the Final EIS and preliminary engineering by 2016. Sound Transit anticipates startup by 2023. Ridge stated that with available funding, Sound Transit would like to extend construction of light rail to the Kent-Des Moines area and will pursue Federal Transit Authority (FTA) New Starts funding requirements. Ridge stated that public meetings will be held Thursday, November 81h and Tuesday, November 131h to introduce the public, agencies and stakeholders to the FWTE project and obtain public input. He stated that over 25,000 postcards will be mailed providing notice of the meetings. He reported that web and print ads will be published in several newspapers, including an early scoping notice in the Federal Register, on neighborhood blog sites, and posters will be placed at several strategic sites. A video will run on Somali TV. Ridge stated that alternatives will be screened and evaluated, then narrowed down to a focused set of alternatives by the end of May 2013 with staff being notified of the outcome within 6-8 months of that date. Alternatives at this time indicate alignments from South 2001h Street Station to the Federal Way Transit Station, although Sound Transit is not restricted to looking at just light rail and can field recommendations for other alternatives. The Board will make a final decision based on specific criteria. The overall intent is to extend light rail to Tacoma. Ridge provided email, web, and mailing addresses for submitting comments. Informational Only 6. Agriculture in Kina County Satterstrom introduced Steve Evans with King County Agriculture Commission (KCAC). He announced that a round table will be held on November I" at Green River Community College, Kent Campus, to discuss the future of agriculture in King County. Evans extended an invitation to all those who might wish to attend the meeting, and stated that Mayor Cooke has agreed to speak. He stated that the point of the meeting is to educate the community on the importance of agriculture, pointing out that the three basic necessities of life are food, shelter and clothing. Evans reported that King County's (KC) agricultural value of production is higher than Spokane County and that KC is 13th in the State in terms of agricultural production. A study concluded that it is apparent agriculture will leave KC as building development begins to affect and encroach upon agricultural lands. KCAC has been working towards building relationships within the agricultural communities, looking at establishment of urban gardens and farmers markets. Informational Only 7. Economic Development and Permit Report Economic Development Director Ben Wolters stated that permitting is a dashboard indicator for Kent on how the building industry is going and indirectly on how the business community is doing in terms of their willingness to invest dollars in our community. Satterstrom stated that it is a significant factor that permitting activity has become the focus of economic development. Predominately large commercial development construction projects fell off in late 2008/2009, while residential development kept pace with 150-175 single family residential (SFR) building permits issued per year. Satterstrom stated that there has been a slow but gradually upward climb in the number of permits applied for, issued, and in the total building valuation of construction authorized by those permits since 2009. August building valuations totaled $22 million with another big month showing valuations of $15 million. September was the second biggest month in 4 years with building valuations of $18 million, thus totaling $40 million in building construction value within ECDC Minutes October 8,2012 Page 2 of 3 a two month time period. There is still significant value in permits that have been applied for and not yet issued. Satterstrom stated that commercial rather than residential permit issuance has lead to a significant increase in building valuation. Total permit value per building valuation for commercial permits was $26.5 million within the first 9 months of 2011. The total value for commercial permits this year is $52 million, a 97% increase. Since the risk of flooding and the Howard Hanson Dam issues have been resolved, more companies are now willing to take investment risks on the valley floor. Wolters stated that in an effort to improve the permitting process, on-line permitting was launched for electrical, plumbing, mechanical and reroofing permits with 15 permits issued in the last 7 days. Staff will continue to expand on-line issuance of permits which will streamline the process for both the customer and staff. Wolters stated that the business community is now turning their attention towards the condition and status of the levees. He stated that their view is that the city is working towards making steady progress to improve flood protection. The market-place measures how the city is doing by whether or not it will achieve accreditation by FEMA up to the 100 yr standard. That standard is used because insurance, regulatory restrictions and property values are tied to that status under the new regime FEMA has established. Wolters stated that there has been discussion about delaying implementation of FEMA's new standards to give the region time to meet those standards and work towards greater standards up to 500 years. The business community wants progress towards accreditation to be communicated with the electeds. Wolters stated that the Goodman project is moving forward. Structural fill soil is in place and will be allowed to compact for 6-8 weeks. Goodman's project manager Brad Reisinger and CEO George Petrie have indicated their commitment to the project. The Green River Community College (GRCC) may be signing a 10-year lease/contract for roughly 80% of the first floor for their international student housing program, as enrollment in this program has greatly increased. Acquiring a contract will ensure the success of this project and further anchor the expansion of GRCC in our downtown community. The Goodman project will move forward with construction to begin in 2013 and completed by the second quarter of 2014. Wolters reported that Carlisle Interconnect Technologies an aerospace company manufacturing wire and cabling systems for in-flight entertainment systems on jetliners, has begun operating in their new Kent facilities with about 200 employees. They will be moving all 800 employees to their new facility from Tukwila within the next 6 weeks. Wolters stated that Carlisle Interconnect would like to utilize two dead-end side streets for future employee parking. These streets are currently designated as arterial streets. Current code does not allow parking on arterial streets. Staff may propose amending the code designation and may bring a proposal before the city council for consideration. Omax Corporation (a high speed water jet cutting company) acted on a permit issued in 2010 to complete a 22,000 s.f. expansion of their research and development facility this year. Informational Only Adiournment Committee Chair Perry adjourned the meeting at 6:30 p.m. Pamela Mottram, Secretary Economic & Community Development Committee PIAPlanningAECDQ2012VMinu2s\10-08 12_DaftMln.doc ECDC Minutes October 8,2012 Page 3 of 3 i \LeOKIEW l w.:viva.a CITY OF KENT PUBLIC SAFETY COMMITTEE MEETING MINUTES October 9, 2012 I COMMITTEE MEMBERS: Les Thomas, Dana Ralph, and Bill Boyce, Chair C The meeting was called to order by Chair Boyce at 4:38 PM. 1. Approval of Minutes D. Ralph moved to approve the minutes of the September 11, 2012 meeting. The motion was seconded by L. Thomas and passed 3-0. 2. Washington Traffic Safety Commission Target Zero Team presentation — INFO ONLY Sara Wood, Public Education Specialist, introduced Director Darrin Grondel and Program Manager Shelly Baldwin with WTSC to talk about the Target Zero Teams two-year pilot project, A PowerPoint presentation provided information on the success the project and the next steps to be taken. 3. Washington Traffic Safety Commission grant — ACCEPT and Amend the budget Sara Wood explained the funds In the amount of$8,000 will provide officer overtime during specified Target Zero Impaired Driving emphasis dates and during seat-belt focused patrols. L. Thomas moved to recommend that Council accept the Washington Traffic Safety commission grant in an amount not to exceed $8,000, authorize the Chief of Police to sign the Memorandum of Understanding, and amend the budget. The motion was seconded by D. Ralph and passed 3-0. 4. Washington Traffic Safety Commission grant — ACCEPT and Amend the budget Sara Wood explained the funds In the amount of$5,000 will provide overtime for the Law Enforcement Liaison as outlined in the Statement of Work. D. Ralph moved to recommend that Council accept the Washington Traffic Safety Commission grant in an amount not to exceed $5,000, authorize the Chief of Police to sign the Memorandum of Understanding, and amend the budget. The motion was seconded by L. Thomas and passed 3-0. 5. Drug Free Communities Support Program grant — ACCEPT and Amend the budget Debra LeRoy, Research and Development Analyst, explained how the grant funds will be utilized in the effort to reduce substance abuse among youth and, over time, among adults. This is the fifth year of the five year grant period. Dana Ralph mentioned the annual Youth Conference, which will be held at Kent Commons on December 4-5, 2012, is one event supported by this grant. L. Thomas moved to recommend that Council authorize the Kent Police Department to accept the Drug Free Communities Support Program grant in the amount of $53,639 and amend the budget. The motion was seconded by D. Ralph and passed 3-0. 6. STOP Act Grant Substance Abuse Mental Health Services (SAMHSA) — ACCEPT and Establish the budget Debra LeRoy explained the grant supplements the Drug Free Communities grant and focuses specifically on preventing underage drinking. This Is the first year of the four year award period with an annual application requirement, The four year grant total is $193,032, Debra stated that she and Stacy Judd, Public Education Specialist, prepared the i Drug Free Communities and STOP Act grants as a team effort. D. Ralph moved to recommend that Council authorize the Kent Police Department to accept the STOP Act grant in the amount of $48,258 and establish the budget. The motion was seconded by L. Thomas and passed 3-0, 7. Police Services Agreement — AUTHORIZE and Establish the budget Assistant Chief Pat Lowery explained the Agreement with the Kent School District provides a Kent Police Commander or higher, to the District for the purpose of assisting with j communication and logistics between the two organizations that relates to school safety. The District agrees to reimburse the Department $40,258.44 per agreement, to be applied toward the Commander's salary and benefits. The Agreement shall be effective on September 1, 2012 through August 31, 2013. B. Boyce commented on the success of the relationship built between the District and the Department. L. Thomas moved to recommend that Council authorize the Mayor to sign the Police Services Agreement and establish the budget. The motion was seconded by D. Ralph and passed 3-0. INFO ONLY: • Ken Thomas, Chief of Police, recognized the work of Sara Wood, Debra LeRoy and Stacy j Judd on grants and the importance of the Community Education Unit's work In the i community. • B. Boyce commented that the City is going through tough budget cuts and as a result, Jo Thompson is impacted by being laid-off. He stated he's known her for many years to be a great person, great worker, a big part of the police department and that she's appreciated and wlli be missed. L. Thomas and D. Ralph also thanked her for her work. The meeting adjourned at 5,12 PM. 7G YA Jo Thompson, Public Safety Committee Secretary i Public Safety Committee Minutes 2 September 11, 2012 PUBLIC WORKS COMMITTEE Minutes of Monday, October 1, 2012 COMMITTEE MEMBERS PRESENT: Committee Chair Elizabeth Albertson and Committee members Dana Ralph and Dennis Higgins were present. The meeting was called to order at 4:06 p.m. Item 1 — Approval of Meeting Minutes Dated September 17, 2012: Ralph MOVED to approve the minutes of September 17, 2012. The motion was SECONDED by Higgins and PASSED 3-0. Item 2 — Information Only/Fall Residential Recycling Event: Gina Hungerford, Conservation Coordinator noted that the annual Fall Recycling Event will be held on October 20, 2012 from 9:00 am-3:00 pm, at Russell Road Park. Residents are invited to bring items not easily recycled at the curb. New this year you can bring in your child car seats and have them recycled. Hungerford stated that some items will have a small fee and only cash will be accepted. TV's, computers and laptops will not be accepted. For more information visit www.KentRecycles.com or call Gina at (253)856-5549. Fall curbside pickup will be the week of November 12-16. Flyers will be sent by mail and more information is available at www.KentRecycle.com. Information Only/No Motion Required Item 3 — Information Only/2012 Storm Vegetation Work Plan: Scott Schroeder gave an informative PowerPoint presentation showing many of the challenges his section encounters on a daily basis. Schroeder updated the committee on the Storm Vegetation Work Plan and their progress this year. Information Only/No Motion Required Item 4 — Information Only/Green River Levee: Environmental Engineering Manager, Mike Mactutis provided an update on current levee issues. Mactutis noted there will be a meeting on Thursday, in Seattle with the King County Flood Control District, State Representatives and local Mayors to review the letter that King County Flood Control District Board of Supervisors sent to the legislators regarding the Briscoe/Desimone Levee. Information Only/No Motion Required Item 5 — Information Only/LID Process: City Attorney, Tom Brubaker provided the committee with a summary of the Local Improvement District (LID) process, how each assessment is determined, how each property owner agreed through an Environmental Mitigation Agreement (EMA) to pay, and how each owner knew and understood—or should have—that the property they were purchasing could have two or more overlapping assessments at the same time. PUBLIC WORKS COMMITTEE Minutes of Monday, October 1, 2012 Councilmember Higgins asked if a property is hit with two or more assessments simultaneously can their payments be stretched out. Brubaker stated that because it is a loan that the City sells bonds for, it is not possible to stretch it out further than 15 years. Information Only/No Motion Required Item 6 — Information Only/Tacoma Regional Water Supply Storage Disposition• Interim Water Superintendent, Sean Bauer gave a brief PowerPoint Presentation on the Howard Hanson Dam, in relation to regional water supply. Bauer's explained that the Corps of Engineers, the operators of the dam, normally empty the reservoir pool by November 1't in order to be ready for the flood season. He also explained the basic operations of the dam and how the Corps controls flows throughout the year. Bauer also explain how the City and other partners who have unused capacity can allow the Corps to use that capacity for flow augmentation for fish or for use by the other funding partners. Information Only/No Motion Required The meeting was adjourned at 5:11 p.m. Cheryl Viseth Council Committee Recorder PUBLIC WORKS COMMITTEE Minutes of Monday, October 22, 2012 COMMITTEE MEMBERS PRESENT: Committee Chair Elizabeth Albertson and Committee members Dana Ralph and Dennis Higgins were present. The meeting was called to order at 4:02pm Item 1 — Approval of Meeting Minutes Dated October 1, 2012: Higgins MOVED to approve the minutes of October 1, 2012. The motion was SECONDED by Ralph and PASSED 3-0. Item 2 — Sound Transit South Corridor Light Rail Study: The Committee heard a presentation by Cathal Ridge, South Corridor Development Manager of Sound Transit, regarding light rail project in the South Corridor. Sound Transit is kicking off their environmental analysis of the project this month which will focus on the portion of the project between South 200th Street in SeaTac and the Federal Way Transit Station. The presentation outlined the steps giving a timeline for the project and listed opportunities for public comment (see below). A flier was given to Councilmembers with dates for upcoming open house meetings. The first is November 8th at Highline Community College in Building 2 from 4:00-7:00 pm. The second meeting is November 13th at Truman High School Gym from 4:00-7:00 pm. Sound transit is reaching out to hear comments and suggestions from anyone who is interested. There are four ways to give or submit comments: 1. In person, at public or agency scoping meetings 2. Email at FWTECa)soundtransit.org 3. Mail at Sound Transit c/o Kent Hale, Sr. Environmental Planner 401 S Jackson Street Seattle, WA 98104 4. Online: www.soundtransit.org/FWextension Information Only/No Motion Required Item 3 — Consultant Services Agreement — Allen Brackett Shedd State Route 516 to S. 231" Way Levee Proiect: Beth Tan gave a presentation to the committee about the SR 516 to 231't Way Levee Project. Completing the SR 516 to S. 231't Way Levee adjacent to the Lakes Community requires additional property from the condominium associations of Bridgewater III, Bridgewater IV, and Regatta at the Lakes. This acquisition will not include any condominiums, but will include common area property. North of this area the levee adjacent to Marina Pointe will not need additional property, but will require a levee maintenance inspection easement to complete the accreditation. The consultant services agreement with Allen Brackett Shedd is to provide a real estate appraisal of the impacted properties and assess the value of the project's impacts. Their PUBLIC WORKS COMMITTEE Minutes of Monday, October 22, 2012 service includes impacted areas involving approximately 273 units with extensive public involvement and communication with property owners. This levee reach, in combination with the other levee segments along the Green River, protects the Kent Valley businesses and residential areas from flood risks. Laporte added that levee documents have all been reviewed by FEMA. The documents have also been sent to King County Staff. LaPorte also noted that new levee work will meet 500 year flood protection standards. Councilmember Ralph confirmed that we are purchasing property that is open space and no structures will have to be moved. Ralph MOVED to recommend Council authorize the Mayor to sign the Allen Brackett Shedd Contract Agreement for the Real Estate appraisal services of property on the State Route 516 to S. 231' Way Levee Project in the amount of $58,000 upon concurrence of the language therein by the City Attorney and Public Works Director. The motion was SECONDED by Higgins and PASSED 3-0. Item 4 — Joint Funding Agreement for the Cooperative Data-Collection Program with the U.S. Geological Survey: Environmental Engineering Supervisor Alex Murillo noted that this is an on-going program with the U.S. Geological Survey (USGS) for stream data collection. The City of Kent will contribute $60,080 to the annual program costs of $106,205 with the USGS providing the remainder. These gages provide valuable information on stream and weather conditions, including water surface elevations, flow levels and amounts of precipitation. Information is used to calibrate stream flow models and increase the accuracy of city design of stormwater flood projection models. The gages, through their link to internet web sites, allow staff and the public to monitor stream flow levels from remote locations. This contract will provide for operation, maintenance and data collection at five gages. Two are located on Mill Creek, one on Springbrook Creek and two on Rock Creek. Gage information is available to the public real-time at http://waterdata.usgs.gov/wa/nwis/current?tvpe=flow This is an ongoing contract that is signed yearly with USGS. Council members Ralph and Albertson mentioned that they have visited some of these sites and they have an understanding of what the gages are. Murillo was asked by committee members if the cost could be shared equally in the future. Murillo will look into it for next year. PUBLIC WORKS COMMITTEE Minutes of Monday, October 22, 2012 Ralph MOVED to recommend Council authorize the Mayor to sign the Joint Funding Agreement for Water Resources Investigations between the City of Kent and the U.S. Geological Survey upon concurrence of the language therein by the City Attorney and Public Works Director. The motion was SECONDED by Higgins and PASSED 3-0. Item 5 — Information Only/Mill Creek - Springbrook Creek Basin Capital: Environmental Engineering Supervisor Alex Murillo provided an update on City projects along Mill Creek and Springbrook Creek. Murillo noted that a lot of focus is on levee improvements to reduce flooding from the Green River. He went on to briefly explain what is being done to prevent flooding in the valley creek systems. • Mill Creek upper detention dam improvements, raising the dam 5.5 feet to allow for more storage and reduce flooding under the Central Ave S stormwater force main improvements project. • We are installing 1.5 miles of pipe under the sidewalk along Central Ave to reduce flooding in the valley near James St. The final phase of the project is to construct the James Street pump station at Mill Creek. • The Mill Creek, James Street to Central Ave flood storage and stream habitat improvements project will relocate the stream and reduce flooding. • 76th Ave S culvert replacement and stream improvements project; widen culverts and reduce flooding. • 64th Ave S channel culvert replacement project at S 226th St and Union Pacific RR Spur will install larger culverts to reduce flooding. • Green River Natural Resources Area flood storage and water quality improvements; improving the regional storm water facility to reduce flooding. • Upper Meridian Valley Creek flood protection and stream enhancement project will move the creek away from properties and reduce flooding. A slide related to the National Pollutant Discharge Elimination System (NPDES) stormwater pond cleaning was presented. Information Only/No Motion Required Item 6 — Information Only/Vactor Site and Screener: Jens Vincent Stormwater Supervisor gave a power point presentation on the soils screener that was purchased with grant funds from the Washington State Department of Ecology. The purchase of the soil screener has allowed Public Works Operations crews to: 1. Filter out trash and debris from catch basin solids collected during cleaning and maintenance. 2. Aerate solids to speed the composting process 3. Eliminate the cost of renting a screener PUBLIC WORKS COMMITTEE Minutes of Monday, October 22, 2012 4. Provide low-cost topsoil for roadside plantings These elements are increasing efficiency, and allow staff to maintain their schedule of catch basin maintenance and repairs while simultaneously saving money on rental costs and staff time. Vincent noted that a chase truck is being requested in the 2013/2014 budget. He explained that a chase truck would provide tools, signage and traffic control for the Vactor trucks when they are being used to extract soils. Information Only/No Motion Required Item 7 - Information Only/Adopt-a-Street Program Update: Gina Hungerford gave a presentation regarding the City's Adopt-A-Street program. Since the successful inauguration of the Adopt-a-Street program in April, the program has grown to 13 groups with more in the process of forming. 49 volunteers are picking up litter on their adopted streets, making our City more beautiful. The dedication and commitment of all these volunteers is making a big difference in beautifying the city and helps to protect water resources. Interested parties who would like to Adopt-a-Street can find more information at http://kentwa.gov/content.aspx?id=21445&terms=adopt%20a%20street. Or for more information, contact Gina Hungerford at GHungerfordCd)KentWa.gov or call 253-856-5549. Information Only/No Motion Required Item 8 - Information Only/Green Kent Day October 27tn: Matt Knox, Environmental Ecologist gave an informative Power Point presentation on Green Kent Day. Knox noted that the Green Kent Partnership combines the talents of Parks, Public Works and Kent volunteers to improve and enhance Kent's 1,189 acres of parks and natural areas. Approved by City Council in September of 2009, the program trains volunteer land "stewards' to lead and teach other volunteers how to restore Kent's natural areas. To date, we have trained over 30 stewards and now have 13 actively encouraging and leading others. Green Kent Day is scheduled for Saturday, October 27 we expect to recruit up to 100 volunteers to plant native plants from 9:00 am-12:00 pm at two sites - Morrill Meadows Park and the Green River Natural Resources Area. A VIP tour is also planned for State Representatives, Councilmembers, the Mayor and other dignitaries the tour will highlight the Green Kent partnership and these two special areas. A donated barbecue from Farrington Court will be held at the conclusion of the event for all volunteers and VIP's at Morrill Meadows Park. PUBLIC WORKS COMMITTEE Minutes of Monday, October 22, 2012 Council members Ralph and Albertson commented that they will be at Green Kent Day helping out. Knox encouraged people to go online to www.greenkent.orq to sign up for Saturday's event. There will be tools available to use provided but people are encouraged to bring their own as well. Information Only/No Motion Required Item 9 — Information Only/Sewer Collection System & Sewer Pump Stations: Dave Brock, Utility Engineer gave a brief Power Point presentation on the sewer collection system and sewer pump stations. Brock noted that Kent has approximately 211 miles of sanitary sewer system. Much of the system has reached the end of its service life (50 to 70 years) and is in need of repairs or replacement. Brocks' presentation gave an overview of the condition of the sewer infrastructure and touched on damage from fats, oils and grease (F.O.G.). Brock noted that in 1990, 25% of the sewer rate was for Kent and 75% for King County METRO. In 2012, Kent's sewer rate is down to 16% and 84% for King County METRO. LaPorte commented that the increase in the last several years to the sewer rates have been related to the costs to pay for King County's Brightwater sewage treatment plant. We will be delivering the need to increase rates very soon. Information Only/No Motion Required The meeting was adjourned at 5:32 p.m. Kristin Lykken Council Committee Recorder EXECUTIVE SESSION ACTION AFTER EXECUTIVE SESSION