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City Council Committees - Economic and Community Development Committee - 04/08/2019 (2)
Unless otherwise noted, the Economic and Community Development Committee meets at 5 p.m. on the second Monday of each month in the Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information please contact Rhonda Bylin at 253-856-5457 or via email at RBylin@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Economic and Community Development Committee Agenda Chair - Bill Boyce Satwinder Kaur– Marli Larimer Monday, April 8, 2019 4:00 p.m. Item Description Action Speaker Time 1.Call to Order Chair 01 MIN. 2.Roll Call Chair 01 MIN. 3.Changes to the Agenda Chair 01 MIN. 4.Approval of March 11, 2019 Minutes YES Chair 05 MIN. 5.Economic Development Update 05 MIN. 6.Rally the Valley Consultant Services Contract YES Bill Ellis Danielle Butsick 10 MIN. 7.Multifamily Tax Exemption Discussion NO Matt Gilbert 10 MIN. 8.Bridges/Verdana deAnnexation Update NO Matt Gilbert 10 MIN. 9.Adjournment Chair 01 MIN. Page 1 of 2 Approved Economic and Community Development Committee CC ECDC Regular Meeting Minutes March 11, 2019 Date: March 11, 2019 Time: 5:00 p.m. Place: Chambers East Attending: Bill Boyce, Committee Chair Satwinder Kaur, Councilmember Marli Larimer, Councilmember Agenda: 1. Call to Order 5:00 p.m. 2. Roll Call Attendee Name Title Status Arrived Bill Boyce Committee Chair Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present 3. Changes to the Agenda 4. Approval of Minutes dated January 14, 2019 MOTION: Move to approve the Minutes dated January 14, 2019 RESULT: APPROVED [UNANIMOUS] MOVER: Marli Larimer, Councilmember SECONDER: Satwinder Kaur, Councilmember AYES: Boyce, Kaur, Larimer 5. 2018 Consolidated Annual Performance Evaluation Report - Authorize Dinah stated that while 15-20 of the budget was for administrative costs, that the program was considered to have met its objectives, and that in fact, not all the money was spent and will roll over to the next program year. MOTION: Approve the 2018 Consolidated Annual Performance and Evaluation Report and authorize the Mayor to submit the report Housing and Urban Development. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS] Next: 3/19/2019 7:00 PM MOVER: Satwinder Kaur, Councilmember SECONDER: Marli Larimer, Councilmember AYES: Boyce, Kaur, Larimer 4 Packet Pg. 2 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a r 1 1 , 2 0 1 9 5 : 0 0 P M ( O P E N S E S S I O N ) Economic and Community Development Committee CC ECDC Regular Meeting Minutes March 11, 2019 Kent, Washington Page 2 of 2 6. Economic Development Activity Update Bill gave an update on the process of marketing Naden with CBRE. 65 parties have been notified of the possible sale, and the PSE triangle acquisition is under final review. All offers to purchase will be reviewed by the board in late April. 7. RapidRide1 8. Rally the Valley Update 9. Ordinance Permitting Light Manufacturing in the Downtown Commercial Enterprise District - Adopt MOTION: Adopt Ordinance No. 4316, amending sections 15.04.040 and 15.04.050 of the Kent City Code to permit light manufacturing in the Downtown Commercial Enterprise District subject to specific development conditions. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS] Next: 3/19/2019 7:00 PM MOVER: Marli Larimer, Councilmember SECONDER: Satwinder Kaur, Councilmember AYES: Boyce, Kaur, Larimer 10. Ordinance Revising Regulations Related to Mini-warehousing or Self- Storage Facilities in Commercial Zones - Adopt MOTION: Adopt Ordinance No. 4317, amending Sections 15.04.040 and 15.04.050 of the Kent City Code to revise regulations related to mini-warehouses or self-storage facilities in zoning districts in the City of Kent. RESULT: RECOMMENDED TO COUNCIL [UNANIMO US] Next: 3/19/2019 7:00 PM MOVER: Satwinder Kaur, Councilmember SECONDER: Marli Larimer, Councilmember AYES: Boyce, Kaur, Larimer 11. Adjournment 6:10 p.m. Rhonda Bylin Committee Secretary 4 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a r 1 1 , 2 0 1 9 5 : 0 0 P M ( O P E N S E S S I O N ) ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE Kurt Hanson, Economic and Community Development Director 220 Fourth Avenue S, Kent, WA 98032 253-856-5454 DATE: April 8, 2019 TO: Economic and Community Development Committee SUBJECT: Rally the Valley Consultant Services Contract MOTION: Recommend City Council authorize the mayor to sign a contract for consultant services with Mackenzie and EcoNW as presented by staff. SUMMARY: The Rally the Valley project kicked off in late January with consultant interviews. Kent staff, with support from staff working group members from Auburn and Renton, have selected a consultant team of Mackenzie and EcoNW, respectively a Seattle-based firm with a long history of industrial land use planning and design work and an economics and public policy consulting firm with Seattle and Portland offices. Mackenzie and EcoNW will support staff in engaging with the Rally the Valley advisory panel, conduct a profile and needs assessment for the valley, develop a vision, goals, and strategies to meet those goals, complete an environmental review, and ensure the plan meets the Puget Sound Regional Council’s requirements for manufacturing industrial centers subarea plans, if the City elects to retain the MIC designation. The full contract is included in the meeting packet. Staff will be available at the April 8 meeting to provide information on the contract, and answer questions from committee members. BUDGET IMPACT: NTE $150,000.00 SUPPORTS STRATEGIC PLAN GOAL: Innovative Government, Sustainable Services ATTACHMENTS: 1. Mackenzie Full Signed Contract - 04-02-2019 (PDF) 6 Packet Pg. 4 6.a Packet Pg. 5 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 6 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 7 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 8 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 9 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 10 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 11 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) 6.a Packet Pg. 12 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) City of Kent, Economic and Community Development Attention: Danielle Butsick, AICP 400 West Gowe Street Kent, WA 98032 Re: Kent Industrial Valley Subarea Plan Project Number 2180559.MK Dear Danielle: Projects such as the Kent Industrial Valley Subarea Plan (KIV) which contribute to the future economic growth for the City of Kent and surrounding communities are especially exciting for our team. Mackenzie appreciates this opportunity and, based on our February 11, 2019 meeting, we are pleased to present to the City of Kent (“the City”) the following revised scope of services and fee proposal for the KIV. Mackenzie’s integrated team of design professionals will provide land use planning, transportation planning and architectural services for the above project. In addition, Mackenzie will team with ECONorthwest (ECONW) to take advantage of their experience in public finance options and economic policy. ECONW will provide economic analysis consulting services in support of the project. Our Basis of Design along with our scope of services by phase is as follows: BASIS OF DESIGN The following describes the Basis of Design for this proposal, followed by detailed task listed under the Scope of Services. 1. The City seeks to identify and evaluate the enormous future economic opportunities for the Kent Industrial Valley, specifically within Kent’s regionally designated Manufacturing and Industrial Center (MIC). 2. The City has allocated funding for this scope of work to be utilized in 2019 and 2020. We assume Tasks 1, 2 and 3 will be completed in 2019. We have identified scope and fees for tasks 4, 5 and 6, but assume adjustments may be necessary in 2020. 3. The new KIV will help shape and guide the vision for the future of Kent’s industrial and manufacturing lands. 4. The Mackenzie/ECONW team will support City staff and stakeholder meetings as required by the City. We anticipate up to 5 stakeholder meetings. 5. This response is developed to address the task and scope of work description shared by the City as a draft; as such, we would recommend a scoping meeting to work closely with City staff to refine the scope and budget to appropriately allocate available funding to the best possible analysis areas. 6. The City’s Long Range Planning and Economic Development departments will support this effort by providing the base and background data. P 206.749.9993 F 206.749.5565 W MCKNZE.COM Logan Building, 500 Union Street, #410, Seattle, WA 98101 ARCHITECTURE INTERIORS STRUCTURAL ENGINEERING CIVIL ENGINEERING LAND USE PLANNING TRANSPORTATION PLANNING LANDSCAPE ARCHITECTURE Portland, Oregon Vancouver, Washington Seattle, Washington ATTACHMENT A 6.a Packet Pg. 13 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) City of Kent, Economic and Community Development Kent Industrial Valley Subarea Plan Project Number 2180559.MK December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) Page 2 SCOPE OF SERVICES Task 1 – Industrial Profile and Industrial Needs Assessment Survey (ECONW Input) Time Duration: 3 months Mackenzie tasks here may include: Identify industry profiles for up to 4 types of building/uses (warehouse, manufacturing, office, and mixed-use – or other that may apply in the KIV subarea). These would be based on Mackenzie’s experience in design for buildings over the last decade or publicly available profiles, as well as the findings of the industrial stakeholders' survey. Profiles would include water, sanitary sewer, transportation (all modes), electrical, and telecom needs, as well as nearby or complementary land uses, potentially including residential, commercial, or office uses. A. The analysis will address industrial growth relationships between demographics, employment growth, market trends, and development. These tasks may include: ▪ Review of National, State, and Local Trends. The demand analysis will include an overview of national, regional, and local trends affecting economic development in the City, focusing on the City’s target industries. The overview of trends will focus on major long-run trends while the overview of local trends will provide more detail on conditions in Kent’s and the surrounding region over the past 10–20 years. The review of trends will focus on the City’s target industries. The focus of this analysis will use available administrative data (or data developed by the City) to discuss the trajectory of industrial areas and sector make-up. This information will be used in Meeting 2. ▪ Industrial Area Case Studies. This task will identify two to three case studies or comparable areas that illustrate the change to more productive industrial/manufacturing uses that the City would like to support and attract. This information will be used in Meeting 1. ▪ Assessment of Community Economic Development Potential. The analysis will assess land development potential for industrial uses or other complementary or supportive uses. This will include the mapping of current uses and assessing redevelopment potential. The main focus of this work will be to help identify key focal points by sorting areas in categories that include: no redevelopment potential, cornerstone users, and catalytic areas, and redevelopment sites. This information will be used in Meeting 3. ▪ Land and Built Space. Most businesses require a physical space (e.g., office, warehouse, factory, or storefront). ECONW has developed an innovative method of mapping and geographically analyzing real estate data to produce maps of regional development activity and market fundamentals. This information will be used in Meeting 2. ▪ Identification of Required Site Types. The demand analysis will identify the characteristics of employment sites that will be needed to accommodate the expected employment growth based on the types of employers that the City aspires to attract (as identified in the economic development vision). This assessment will identify site size, need for infrastructure and services, and other site characteristics. This information will be used in Meeting 3. Deliverables: Summary Slide Decks to be used with the planning process with accompanying technical documentation as needed. 6.a Packet Pg. 14 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) City of Kent, Economic and Community Development Kent Industrial Valley Subarea Plan Project Number 2180559.MK December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) Page 3 Task 2 – Vision and Goals Development Time Duration: 5 months A. Mackenzie will work with staff to develop vision and goals for KIV based on industrial profile, needs assessment, and committee input. Vision and goals will be developed through five steering committee meetings, facilitated by a consultant. A rough work plan for the Steering Committee meetings includes: Meeting # 1: Baseline Trends and Strategic Issues ▪ Key Questions to the Committee: o What is the strategic opportunity for Kent? o What best version of ourselves can we be in five, ten, twenty years? o What risks/constraints will the City and its stakeholders have to contend with? ▪ Materials/Presentations to the Committee: o City presentation on background project context – making the case for how policy, incentives, and investment can support change. o Case studies of industrial/manufacturing change (See Task 1). Meeting # 2: Understanding Kent Valley’s Users ▪ Key Questions to the Committee: o Why do firms locate in the Kent Valley? o What conditions can help us achieve the vision we want? o How will that impact existing users? ▪ Materials/Presentations to the Committee: o Summary of City survey. o Summary of economic, land use, and real estate uses (See Task 1). Meeting #3: Identification of Focal Areas ▪ Key Questions to the Committee: o What areas are realistically appealing, capable of investment along the lines the City is contemplating? o What are the ideas that would most influence their investment? ▪ Materials/Presentations to the Committee: o Summary of industrial prototypes (See Task 1). o Summary Maps of Users and Focal Points (See Task 1). 6.a Packet Pg. 15 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) City of Kent, Economic and Community Development Kent Industrial Valley Subarea Plan Project Number 2180559.MK December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) Page 4 Deliverables: Participation in Committee meetings, Revised Strategic Plan Document. Task 3 – Land Use, Design Compatibility, and Transportation Time Duration: 5 months A. Review existing research and recent studies, including work done by Mackenzie in the Portland Metro area, SW Washington, and other locations on industrial lands compatible uses, site design, and performance standards. B. Attend and participate in meeting #4 and #5 with City staff to discuss adapting national and industry knowledge to the Kent community. Meeting #4: Public Action Tools ▪ Key Questions to the Committee: o What tools make a difference? o What are the big/small influencers? What haven't we considered? o What tools might have unintended consequences? o What things need to happen first, what can happen latter? ▪ Materials/Presentations to the Committee: o Inventory of tools and actions. Meeting #5: Strategic Vision, Objectives, and Initiatives ▪ Key Questions to the Committee: o Review and revise draft strategy. ▪ Materials/Presentations to the Committee: o Draft vision, objectives, and strategy. ▪ Support for development of Draft Strategic Plan. The consultant team will support one meeting with the City to develop a strategic plan with the City responsible for developing the first draft. The team will then review and revise the plan drafted by the City to be submitted to the Committee on Meeting #5. C. Work with City staff to develop land use, regulatory and design strategies to meet vision and goals for the KIV. D. Coordinate with Kent Public Works Transportation Planning, Commute Trip Reduction (CTR), KC Metro, Sound Transit, WSDOT, and KIV employers and distributors on plans and future technology and trends. Work with City to develop strategies to meet vision and goals for Land Use, Design, Transportation, Transit, Infrastructure, and Technology. 6.a Packet Pg. 16 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) City of Kent, Economic and Community Development Kent Industrial Valley Subarea Plan Project Number 2180559.MK December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) Page 5 Deliverables: An outline of likely land use and design strategies developed though this phase of development, along with geospatial data and maps as necessary. Outline is anticipated to be a five-page summary of each strategy with some details on implementation steps and a summary of how the strategy supports the vision for the Valley. Task 4 – Economy and Employment (ECONW) Time Duration: 5 months A. This task will support Kent’s participation in economic development planning related to refinement and implementation of regional, local, and targeted strategies. Of particular interest is the furthering of the PSRC space sector study and global trade and supply chain management study. The consultant team will meet with the City’s ED and LRP teams to specify the scope of work. Mackenzie will work with Kent to develop strategic responses and identify strategies that perform well under multiple situations. Changing land use policy requires coordinating with multiple jurisdictions. Introducing new business incentives requires investment and local advocacy. Overall, this makes regional economic development groups incredibly flexible and innovative in how to respond to economic challenges, including launching incubators, facilitating public-private partnerships, and developing new workforce initiatives. ECONW will help Kent systematically think through the resources the City could leverage in its response strategies. These resources will become clearer through Tasks 1 and 3, but they could include: ▪ Cluster organizing and engagement. ▪ Business incentives. ▪ Tax and land-use policies. ▪ Infrastructure needs and priorities, including transportation, energy, and communications. ▪ Federal grant opportunities. Task 5 – PSRC Checklist, Growth Targets, and Capacity Analysis Time Duration: 3 months A. Mackenzie will support analyzing existing and planned utility and transportation capacity based on land use strategies identified. B. PSRC has recently adopted a new Regional Centers Framework and checklist for Centers Plans which all local jurisdictions designated as centers are required to adopt by 2020. Therefore, the MIC Plan for Kent would need to incorporate the requirements. The Consultant would support LRP and in coordination with PSRC to complete the subarea plan checklist for the MIC to ensure that the plan meets all required components. A majority of this work includes examining capacity and targets for growth and ensuring land strategies enable continued growth. Task 6 – Adoption and Environmental Review (SEPA/EIS) Time Duration: 5 months A. Mackenzie will support City staff in compilation of the plan document in preparation for stakeholder presentations and approval. We assume three meetings with staff. B. Mackenzie will complete a non-project action SEPA checklist and provide produce a Supplemental Environmental Impact Statement. 6.a Packet Pg. 17 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) City of Kent, Economic and Community Development Kent Industrial Valley Subarea Plan Project Number 2180559.MK December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) Page 6 FEE SUMMARY Our fixed fee for the related design services described above are as follows: Task 1: $35,250 Task 2: $25,150 Task 3: $35,000 Task 4: $24,600 Task 5: $10,000 Task 6: $20,000 TOTAL $150,000 Reimbursable expenses (printing, copying deliveries, ride share vehicles, application-based transportation, mileage, etc.) are included in the fee outlined above and will be invoiced at 1.12 times cost. Reimbursables are estimated to be $2,000 and will not be exceeded without the Client's approval. ASSUMPTIONS Please review and notify Mackenzie if Client believes that any of the Assumptions listed here are either inaccurate or unreasonable prior to project commencement. Please also notify Mackenzie if any additional clarity is needed for the Client to fully understand these Assumptions. In addition to the scope of services outlined above, we have assumed the following: 1. Client will provide current electronic files of any relevant data and background information to assist in the KIV subarea plan. 2. The above scope and budget will be refined in the initial step (Task 0) of the project and other possible assumptions and exclusions may be developed based on the outcome of that meeting. EXCLUSIONS Please review and notify Mackenzie if Client believes that any of the Exclusions listed here are to be included in Mackenzie’s scope of services prior to project commencement. Please also notify Mackenzie if any clarity is needed for the Client to fully understand these Exclusions. In addition to any Exclusions outlined within the proposal above, we have also excluded the following from our proposed scope of services. 1. Special billing requirements required by Client outside of Mackenzie’s standard billing procedures. 2. Land survey, topographic survey, tree survey, or metes and bounds descriptions and related specifications. 3. Soils investigations/testing and related specifications. 4. Meetings with public agencies or other meetings other than those specifically identified in Scope of Services above. 5. Sensitive lands requirements. 6.a Packet Pg. 18 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) City of Kent, Economic and Community Development Kent Industrial Valley Subarea Plan Project Number 2180559.MK December 21, 2018 (Revised February 27, 2019, March 5, 2019, and March 7, 2019) Page 7 It is our understanding the project will start in January 2019. If the proposal is agreeable to you, we can prepare incorporate the final agreed upon proposal into the City’s contract agreement. Please note that this proposal is valid for 90 days. We look forward to working with the City of Kent on this new project. If you need additional information or have any questions, please do not hesitate to call. Sincerely, Michael Chen Associate Principal Enclosures: Meeting Schedule c: Morgan Shook, ECONorthwest Todd Johnson – Mackenzie 6.a Packet Pg. 19 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) J 6.a Packet Pg. 20 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) EXHIBIT B 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 Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85. 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. 6.a Packet Pg. 21 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) EXHIBIT B (Continued ) 2. Commercial General Liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. 3. Professional Liability insurance shall be written with limits no less than 1,000,000 per claim. 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 Consultant before commencement of the work. 6.a Packet Pg. 22 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) EXHIBIT B (Continued ) 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. 6.a Packet Pg. 23 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) CERTIFICATE HOLDER © 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) AUTHORIZED REPRESENTATIVE CANCELLATION DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE LOCJECT PRO-POLICY GEN'L AGGREGATE LIMIT APPLIES PER: OCCURCLAIMS-MADE COMMERCIAL GENERAL LIABILITY GENERAL LIABILITY PREMISES (Ea occurrence)$ DAMAGE TO RENTED EACH OCCURRENCE $ MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG $ $RETENTIONDED CLAIMS-MADE OCCUR $ AGGREGATE $ EACH OCCURRENCE $ UMBRELLA LIAB EXCESS LIAB DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) INSR LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY)LIMITS WC STATU- TORY LIMITS OTH- ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT $ $ $ ANY PROPRIETOR/PARTNER/EXECUTIVE If yes, describe under DESCRIPTION OF OPERATIONS below (Mandatory in NH) OFFICER/MEMBER EXCLUDED? WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N AUTOMOBILE LIABILITY ANY AUTO ALL OWNED SCHEDULED HIRED AUTOS NON-OWNED AUTOS AUTOS AUTOS COMBINED SINGLE LIMIT BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE $ $ $ $ THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL WVD SUBR N / A $ $ (Ea accident) (Per accident) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). The ACORD name and logo are registered marks of ACORD COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: INSURED PHONE (A/C, No, Ext): PRODUCER ADDRESS: E-MAIL FAX (A/C, No): CONTACT NAME: NAIC # INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : INSURER(S) AFFORDING COVERAGE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 1-415-365-8000 09/01/19 liability arising out of the operations of the named insured and where required by written contract. the Named Insured. General and Auto Liability is primary and non-contributory over any existing insurance and limited to City of Kent is included as Additional Insured (except Professional Liability) where required by written contract with RE: Mackenzie project #2180559 - Kent Industrial Valley Subarea Plan 09/01/18 USA 09/01/18 106970374 5,000 Portland, OR 97214 X 100,000 CITY OF KENT EX-1L64048A-TIL-18 31194 25674 5,000,000 09/01/18 X 2,000,000 B TRAVELERS CAS & SURETY CO OF AMER TRAVELERS PROP CAS CO OF AMER A&E Professional Liab. X 220 FOURTH AVENUE SOUTH X A A A X 5,000,000 09/01/19 San Francisco, CA 94111 55572227 55572227 Aggregate 1515 SE Water Avenue, Suite 100 1,000,000 LIC #OE77964 03/07/2019 1,000,000 09/01/19 Mackenzie Engineering, Inc. BA-1L604314-18-CAG 1,000,000 Suite 400 One California Street X 09/01/18 09/01/19 2,000,000 5,000,000 KENT, WA 98032 msteffan Integro Insurance Brokers 630-0L127311-TIL-18 6.a Packet Pg. 24 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) ! " # $ %& $ ' $ % $ % ! % ( & % ( $ ) $ * % * $ % % * + $ # + & ! , $ & %& $ ' %+ $ $ # % $ % % $%- ' $ + . + ' $ ! &$ $ $ & . $ % ( & %$ /% % %+ $ + . + * % , $ & + & ( ) * $ , 0 + $ % * $ , ) % ( # ! $ $ & $ ( ! & $ & + $ # 1 % % ( & . * &$ ) & $ % * %+ ( + % %, ( & * .( & $ &$ % * %, $ & % ( %+ $+ . + & 2 $ & + & , ) $ % %, " $ ( $ % # ! % , $%&'( &%& ) * + "" ,+ +($-'" ' $ %& ( $ ( ' $% % $ % &$ %$ ! /% % ( ) % & % ( % * % ( % $ * $ $ , . & + ( + ! ( . ./# 3 4 6.a Packet Pg. 25 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) & 0 + % % $ / - , 0 + && $ ' ( - ( $ &&& $ ' $ & % % ) , , % & % 2 ( + ! ! % * % 5 & $ $ % % - $ * ( && $ & , ) ( # + %& % $ ' $ % % % $ % % ( & ,' $% ! &$ ! $ . ( &$ $ - % %+ 5 - % %+ ( ! , $ $ $ , " ( $ $ % % # 4 4 . ./ 6.a Packet Pg. 26 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) ! " # $ % & ' ( ) & $ & * ( * & $ $& # $ & ( * * $& ' + &' * & & + ' & & ( & ( ' , & - . / ) & + +" & $ . & ) # &&, 0 1 # & + , 2 34 5 , # * 1 # 2 # ) & $& , & 2 , - & 6 & # & ( & 1 ) & # 1 + - + 1 , + 6 # - 6 $ # # 6 # 6 $ # & / + ( ( &( & & ( & +( ) 1 ( ' / ! / 7 + 1 & / ( 7 6 ! ( ) ( $ & + & ( & 2 & $ & ) & + ( & % + 7 7 ' # 8 9 6.a Packet Pg. 27 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t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a Packet Pg. 28 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t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a Packet Pg. 29 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) $& $ 0 # : $ $ *%+ & ! * $& # ' 0 $ * $& - % # & & $ & / + 7 7( & <4>> & $ $& + 0' # ' 1 1 1 ! ! & / & & / & 7 - + 7 - + 7 7 # ( $ ! # ( $ ! ! & 7$ & + $ & ! & 7$ & + $ & ) &7 7 & 7 ( ) &7 7 & 7 ( 7 ) &7 $& 7 ) &7 $& & ( & ( 7 - 7: 7 - 7: " & 7$ ) 7( 7 & & & +" & 7$ ) 7( 7 & & & + 7 7 ) &7 ( 7 7 ) &7 ( ( $& ( $& & & / +& & / + & $ ( & $ ( ( ( - + & & $& + & 7 - + ' 7' + + # $) # $) ! ! ! ! $ $ & 7 + & 7 + - 7( - 7( 1 1 ( # : ( # : " " &! & ! * + & 7$ & 7 7 &) &* + & 7$ ) &7 7 & & + 7 ( 7 + 7 ( 7 ) &7 ) &7 $& + $& ( + ( - *+ & $ : : * + - * + & ( + ' # ? 9 6.a Packet Pg. 30 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t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a Packet Pg. 31 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t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a Packet Pg. 32 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t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a Packet Pg. 33 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) ( & 7 - 7 , & ' & & - / # 7$ 7 ( & ) & . 6 $ 7 7 & 7 ( 7 7 6 + ) & $& 7 ! $& ! ! * . & : $& & : < * +6 $ 7 + " , 7 6 : ' . ' & 1 $ $ 6 ! # 9 9 6.a Packet Pg. 34 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) Policy_OLCA_CertificateOfInsurance www.saif.com 400 High Street SE Salem, OR 97312 P: 800.285.8525 F: 503.584.9812 Mail to:Certificate holder: MACKENZIE ENGINEERING INCORPORATED MACKENZIE ENGINEERING PO BOX 14310 PORTLAND, OR 97293-0310 CITY OF KENT 220 FOURTH AVENUE SOUTH KENT, WA 98032 The policy of insurance listed below has been issued to the insured named below for the policy period indicated. The insurance afforded by this policy is subject to all the terms, exclusions and conditions of such policy; this policy is subject to change or cancellation at any time. Insured Mackenzie Engineering Incorporated Mackenzie Engineering PO Box 14310 Portland, Or 97293-0310 Producer/contact SAIF Corporation SAIF Corporation Issued Policy Period 03/07/2019 753429 09/01/2018 to 09/01/2019 Limits of liability Bodily Injury by Accident Bodily Injury by Disease Body Injury by Disease $1,000,000 each accident $1,000,000 each employee $1,000,000 policy limit Description of operations/locations/special items Project #2180559 - Kent Industrial Valley Subarea Plan Important This certificate is issued as a matter of information only and confers no rights to the certificate holder. This certificate does not amend, extend or alter the coverage afforded by the policies above. This certificate does not constitute a contract between the issuing insurer, authorized representative or producer and the certificate holder. CANCELLATION: SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED TO THE POLICYHOLDER AND CERTIFICATE HOLDER IN ACCORDANCE WITH THE POLICY PROVISIONS AND OREGON LAW. SAIF WILL ENDEAVOR TO PROVIDE WRITTEN NOTICE WITHIN 30 DAYS WHENEVER POSSIBLE. Authorized representative Kerry Barnett President and CEO Oregon Workers’ Compensation Certificate of Insurance 6.a Packet Pg. 35 At t a c h m e n t : M a c k e n z i e F u l l S i g n e d C o n t r a c t - 0 4 - 0 2 - 2 0 1 9 ( 1 7 2 2 : R a l l y t h e V a l l e y C o n s u l t a n t S e r v i c e s C o n t r a c t ) ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE Kurt Hanson, Economic and Community Development Director 220 Fourth Avenue S, Kent, WA 98032 253-856-5454 DATE: April 8, 2019 TO: Economic and Community Development Committee SUBJECT: Multifamily Tax Exemption Discussion SUMMARY: The City’s Multifamily Tax Exemption (MFTE) program is scheduled to sunset on June 1, 2019. This tax abatement program incentivizes construction of multifamily projects in downtown and on Meeker Street, west of the driving range. It has catalyzed two important projects to the City: Dwell at Kent Station and Marquee on Meeker. Staff recommends that the council adopt an extension of the program to maintain this important policy tool. The MFTE was adopted in its current form in 2009 with a sunset date of 2014. Before expiration, the city council extended it to June 1, 2019. How does MFTE work? MFTE temporarily lowers property taxes for qualifying multifamily projects. Property taxes are assessed based on both the value of a piece of land, and the value of any improvements on that land. Improvement means buildings, or other permanent facilities located on the land that make it more usable. Property taxes increase when a construction project is completed, mostly due to the presence of the new improvements. The MFTE program allows owners of qualifying multifamily projects to avoid paying the ‘improvement tax’ for eight years after the building is complete. After eight years, the owner resumes paying taxes on the value of the land and improvements. This incentive program is made possible by an allowance in state law that helps cities direct growth to areas where they deem it most appropriate. Because the eight-year tax break lowers the long term cost of the project, it encourages increased supply of high-density, high-quality housing. The program was first limited to downtown Kent, but in 2016 the city council extended it to include the former par 3 golf course site and one adjacent property. It total, it has been used by two projects, Dwell at Kent Station and Marquee on Meeker. Next Steps: If council would like to retain this program, staff will prepare an ordinance for consideration prior to the June 1, 2019 expiration. 7 Packet Pg. 36 Staff will be at the April 8th, 2019 ECDC meeting to discuss this matter further and answer questions from the committee. SUPPORTS STRATEGIC PLAN GOAL: Thriving City, Evolving Infrastructure 7 Packet Pg. 37 ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE Kurt Hanson, Economic and Community Development Director 220 Fourth Avenue S, Kent, WA 98032 253-856-5454 DATE: April 8, 2019 TO: Economic and Community Development Committee SUBJECT: Bridges Verdana deAnnexation Udpate SUMMARY: Kent staff have begun working with their counterparts in the City of Auburn to formulate a plan for de-annexing the portion of Kent known as The Bridges neighborhood located on 124th Avenue between 288th Street and 304th Street. Auburn would concurrently annex the land into its municipal boundary. Though part of Kent, this 155 acre ‘municipal island’ is surrounded by the City of Auburn. The Bridges land was purchased and annexed by Kent in the 1980s, as it was planning to one day construct a water reservoir to serve the City. Over time, a new source of water was acquired, and the property was no longer needed for this purpose. In 2005 the City sold the property to a developer, who subdivided the site into 379 single-family home lots as well as parcels for future commercial development at the south end of the site. Since that time, a new neighborhood has been built and all but a handful of the home lots have been permitted and constructed. No commercial development has taken place. Officials at the City of Auburn have long expressed interest in annexing the land, largely based on regular inquiries from residents who are unclear which jurisdiction they belong to, which police and EMS agencies serve them, and other issues associated with this unusual jurisdictional boundary situation. In the coming months, Kent and Auburn staff will work together to reach out to affected residents in order to understand their questions and concerns about changing cities. Staff is also exploring issues related to sewer and water utility responsibilities that may need to be addressed before the change is made. Council action will be required by both jurisdictions, and a submittal to the state Boundary Review board will be necessary. Staff will be at the March 15, 2019 ECDC meeting to discuss this further and answer questions. 8 Packet Pg. 38