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HomeMy WebLinkAbout11-21-2016 CITY COUNCIL AGENDACity Council Meeting November 21, 2016 - 7:00 PM Auburn Community and Event Center AGENDA Watch the meeting LIVE! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I. CALL TO ORDER A. Pledge of Allegiance B. Roll Call II. ANNOUNCEMENTS, PROCLAMATIONS, AND PRESENTATIONS III. APPOINTMENTS A. Appointments to Parks & Recreation Board City Council to confirm the appointments of three new Parks & Recreation Board Members as follows: Appointment to a new three year term to expire December 31, 2019: • Lisa Russell • Bailey Stober Appointment to fill an unexpired term to expire December 31, 2018: • Wayne Osborne (RECOMMENDED ACTION: City Council confirm the appointments to the Parks and Recreation Board.) IV. AGENDA MODIFICATIONS V. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE A. Public Hearings 1. Public Hearing on 2017-2018 Preliminary Biennial Budget (Coleman) City Council to conduct a final public hearing to receive public comments, proposals and suggestions on the 2017-2018 Preliminary Biennial Budget B. Audience Participation This is the place on the agenda where the public is invited to speak to the City Council on any issue. Those wishing to speak are reminded to sign in on the form provided. Page 1 of 186 C. Correspondence There is no correspondence for Council review. VI. COUNCIL AD HOC COMMITTEE REPORTS Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council Committees' progress on assigned tasks and may give their recommendation to the City Council, if any. VII. CONSENT AGENDA All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A. Minutes of the November 7, 2016 City Council Meeting* B. Claims Vouchers (Coleman) Claims voucher numbers 441395 through 441596 in the amount of $4,624,426.93 and three wire transfers in the amount of $395,136.41 and dated November 21, 2016. C. Payroll Vouchers (Coleman) Payroll check numbers 536845 through 536877 in the amount of $575,481.48 and electronic deposit transmissions in the amount of $1,450,093.51 for a grand total of $2,025,574.99 for the period covering November 3, 2016 to November 16, 2016. D. Public Works Project No. CP0765* (Snyder) City Council approve Final Pay Estimate No. 9 to Contract No. 15-04 in the amount of $5,747.50 and unilaterally accept construction of Project No. CP0765, Lakeland Hills Reservoir 5 Improvements E. Public Works Project No. CP1218* (Snyder) City Council grant permission to advertise for bids for Project No. CP1218, Auburn Way South Corridor Safety Improvements (Muckleshoot Plaza to Dogwood St SE) F. Public Works Project No. CP1412* (Snyder) City Council approve Final Pay Estimate No. 13 to Contract No. 15-12 in the amount of $31,193.69 and accept construction of Project No. CP1412, Auburn Community and Teen Center (RECOMMENDED ACTION: City Council approve the Consent Agenda.) VIII. UNFINISHED BUSINESS IX. NEW BUSINESS X. ORDINANCES A. Ordinance No. 6619* (Snyder) Page 2 of 186 An Ordinance of the City Council of the City of Auburn, Washington, granting to Northwest Pipeline LLC, a Delaware LLC, a franchise for gas (RECOMMENDED ACTION: City Council adopt Ordinance No. 6619.) B. Ordinance No. 6621* (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, adopting the 2017-2018 Biennial Budget for the City of Auburn, Washington (RECOMMENDED ACTION: City Council adopt Ordinance No. 6621.) C. Ordinance No. 6624* (Heid) An Ordinance of the City Council of the City of Auburn, Washington, ratifying the Franchise Agreement with Lakehaven Utility District adopted by Resolution No. 3650 (RECOMMENDED ACTION: City Council adopt Ordinance No. 6624.) D. Ordinance No. 6628* (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, establishing the levy for regular property taxes by the City of Auburn for collection in 2017 for general City operational purposes in the amount of $20,962,812.00 (RECOMMENDED ACTION: City Council adopt Ordinance No. 6628.) E. Ordinance No. 6629* (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, amending Ordinance No. 6533, the 2015-2016 Biennial Budget Ordinance, as amended by Ordinance No. 6558, Ordinance No. 6563, Ordinance No. 6570, Ordinance No. 6571, Ordinance No. 6580, Ordinance No. 6592, and Ordinance No. 6608, authorizing amendment to the City of Auburn 2015-2016 Budget as set forth in Schedule “A” and Schedule “B” (RECOMMENDED ACTION: City Council adopt Ordinance No. 6629.) XI. RESOLUTIONS A. Resolution No. 5252* (Faber) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to execute an agreement between the City of Auburn and the Auburn Symphony Orchestra for tourism promotion services (RECOMMENDED ACTION: City Council adopt Resolution No. 5252.) B. Resolution No. 5256* (Hinman) A Resolution of the City Council of the City of Auburn, Washington, approving the City of Auburn Ten-Year Economic Development Strategic Plan (RECOMMENDED ACTION: City Council adopt Resolution No. 5256.) XII. MAYOR AND COUNCILMEMBER REPORTS Page 3 of 186 At this time the Mayor and City Council may report on their significant City-related activities since the last regular Council meeting. A. From the Council B. From the Mayor XIII. ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. *Denotes attachments included in the agenda packet. Page 4 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Public Hearing on 2017-2018 Preliminary Biennial Budget Date: November 15, 2016 Department: Finance Attachments: No Attachments Available Budget Impact: $0 Administrative Recommendation: City Council to conduct a final public hearing to receive public comments, proposals and suggestions on the 2017-2018 Preliminary Biennial Budget. Background Summary: All persons interested are encouraged to participate in this public hearing by making comments, proposals, and suggestions to the City Council and Mayor to consider prior to adoption of the City of Auburn's 2017-2018 Biennial Budget. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:November 21, 2016 Item Number:PH.1 AUBURN * MORE THAN YOU IMAGINEDPH.1 Page 5 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the November 7, 2016 City Council Meeting Date: November 16, 2016 Department: Administration Attachments: Minutes Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember: Staff: Meeting Date:November 21, 2016 Item Number:CA.A AUBURN * MORE THAN YOU IMAGINEDCA.A Page 6 of 186 City Council Meeting November 7, 2016 - 7:00 PM Auburn Community and Event Center MINUTES I. CALL TO ORDER A. Pledge of Allegiance Mayor Nancy Backus called the meeting to order at 7:00 p.m. in the Auburn Community and Event Center located at 910 9th Street SE in Auburn. Mayor Backus led those in attendance in the Pledge of Allegiance. B. Roll Call City Councilmembers present: Deputy Mayor Wales, Bob Baggett, Claude DaCorsi, John Holman, Bill Peloza, Yolanda Trout-Manuel and Rich Wagner. Mayor Nancy Backus was in attendance, and the following department directors and staff members were present: Finance Director Shelley Coleman, Community Development and Public Works Director Kevin Snyder, Innovation and Technology Director Paul Haugan, Assistant Director of Engineering Services/City Engineer Ingrid Gaub, City Attorney Daniel B. Heid, Assistant City Attorney Jessica Leiser, Assistant Director of Innovation and Technology Ashley Riggs, Director of Administration Dana Hinman, Police Commander Mike Hirman, and City Clerk Danielle Daskam. II. ANNOUNCEMENTS, PROCLAMATIONS, AND PRESENTATIONS A. GIS Day Proclamation Mayor Backus to proclaim November 16, 2016 as GIS Day in the city of Auburn. Mayor Backus read and presented a proclamation declaring November 16, 2016 as GIS Day in the city of Auburn to Assistant Director of Innovation and Technology Ashley Riggs. Assistant Director Riggs displayed a new 3D map of the city. GIS staff will facilitate user presentations that will show how they use GIS in their daily workflows, and GIS staff will have some new feature demonstrations. B. Small Business Saturday Mayor Backus to proclaim November 26, 2016 as Small Business Saturday in the City of Auburn and encourage residents to support our local retail establishments. Mayor Backus read and presented a proclamation declaring November 26, 2016 as Small Business Saturday in the city of Auburn to Auburn Area Chamber of Commerce CEO/President Julia Jordan. Ms. Jordan Page 1 of 6 CA.A Page 7 of 186 encouraged residents to support our local retail establishments on November 26th and throughout the year. C. Auburn Mountainview High School Stress Less Week Mayor Backus to proclaim November 7-11, 2016 as Stress Less Week in the City of Auburn. Mayor Backus read and presented a proclamation declaring November 7-11, 2016 as Stress Less Week in the city of Auburn to Auburn Mountainview High School DECA students Amanda Enz, Alexis Grames, and Devan Pierce. III. APPOINTMENTS There was no appointment for City Council consideration. IV. AGENDA MODIFICATIONS There was no change to the agenda. V. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE A. Public Hearings 1. Public Hearing on 2017-2018 Preliminary Biennial Budget (Coleman) City Council to conduct a public hearing to receive public comments, proposals and suggestions on the 2017-2018 Preliminary Biennial Budget. Finance Director Shelley Coleman presented the staff report for the second hearing on the 2017-2018 Preliminary Biennial Budget. Director Coleman reminded that the third public hearing on the preliminary budget will be held November 21st. Budget adoption and tax levy approval are also scheduled for November 21st. Director Coleman reported the preliminary budget will be revised to include a debt service fund for the South Correctional Entity (SCORE) debt obligation. Since the contract revenues at SCORE are sufficient and are being used to pay the debt service, there is no debt service to be paid; however, the debt service must be budgeted. The net effect to the City's budget will be $0.00. Mayor Backus opened the public hearing at 7:15 p.m. No one spoke regarding the preliminary budget, and the hearing was closed. 2. Public Hearing for Franchise Agreement No. 16-54 for Northwest Pipeline LLC (Snyder) City Council to conduct a public hearing in consideration of Franchise Agreement No. 16-54 for Northwest Pipeline LLC At 7:16 p.m., Mayor Backus opened the public hearing on the request of Northwest Pipeline LLC for a franchise agreement to operate a natural gas transmission and distribution pipeline within the City's rights-of-way. No one in the audience requested to comment, and the hearing was closed. Page 2 of 6 CA.A Page 8 of 186 3. Public Hearing on Ordinance No. 6624 ratifying the Franchise Agreement with Lakehaven Utility District (Heid) City Council to conduct a public hearing on the ordinance ratifying the Franchise Agreement with Lakehaven Utility District adopted by Resolution Number 3650. At 7:16 p.m., Mayor Backus opened the public hearing on Ordinance No. 6624 ratifying the Franchise Agreement with Lakehaven Utility District adopted by the Council under Resolution No. 3650. There was no public comment, and the hearing was closed. B. Audience Participation This is the place on the agenda where the public is invited to speak to the City Council on any issue. Those wishing to speak are reminded to sign in on the form provided. No one in the audience requested to address the Council. C. Correspondence There was no correspondence for Council review. VI. COUNCIL AD HOC COMMITTEE REPORTS Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council Committees' progress on assigned tasks and may give their recommendations to the City Council, if any. Councilmember Baggett reported on behalf of the Finance ad hoc committee that reviews claims and payroll vouchers. Councilmember Baggett reported he and Councilmember Wagner reviewed the claims and payroll vouchers as presented and described on this evening's agenda and recommend City Council approval of the expenses. VII. CONSENT AGENDA All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A. Minutes of the October 17, 2016 City Council Meeting B. Claims Vouchers (Coleman) Claims voucher numbers 441129 through 441394 in the amount of $2,871,150.58 and seven wire transfers in the amount of $257,919.84 and dated November 7, 2016. C. Payroll Vouchers (Coleman) Payroll check numbers 536814 through 536844 in the amount of $703,151.81 and electronic deposit transmissions in the amount of $1,429,248.29 for a grand total of $2,132,400.100 for the period covering October 13, 2016 to November 2, 2016. D. Call for Public Hearing on 2017-2018 Preliminary Biennial Budget (Coleman) Page 3 of 6 CA.A Page 9 of 186 City Council to call for a public hearing to be held November 21, 2016 to receive public comments and suggestions with regard to development of the preliminary 2017-2018 Biennial Budget. Deputy Mayor Wales moved and Councilmember Holman seconded to approve the Consent Agenda. The Consent Agenda includes approval of minutes, claims and payroll vouchers, and a call for hearing on the 2017-2018 Preliminary Biennial Budget. MOTION CARRIED UNANIMOUSLY. 7-0 VIII. UNFINISHED BUSINESS Deputy Mayor Wales moved and Councilmember Wagner seconded to rescind the motion made and approved on Oct 3rd on the topic of Council study sessions and committee organization and that the topic be scheduled for the November 14th Council study session. MOTION CARRIED UNANIMOUSLY. 7-0. IX. NEW BUSINESS Deputy Mayor Wales moved and Councilmember Trout-Manuel seconded that the topic of the Council's 2017-2018 travel budget be scheduled for discussion at the November 14th Council Study Session. MOTION CARRIED UNANIMOUSLY. 7-0 X. RESOLUTIONS A. Resolution No. 5253 (Snyder) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to negotiate agreements and execute documents necessary to acquire property rights related to City Project CP1218 – Auburn Way South Corridor Safety Improvements, Muckleshoot Plaza to Dogwood Street SE Deputy Mayor Wales moved and Councilmember Trout-Manuel seconded to adopt Resolution No. 5253. MOTION CARRIED UNANIMOUSLY. 7-0 XI. MAYOR AND COUNCILMEMBER REPORTS At this time the Mayor and City Council may report on their significant City- related activities since the last regular Council meeting. A. From the Council Deputy Mayor Wales reported she attended the Veterans Day Parade. Deputy Mayor Wales also shared some of the findings and recommendations of the Seattle-King County Board of Health Heroin and Prescription Opiate Addiction Task Force as reported at the most recent Page 4 of 6 CA.A Page 10 of 186 Board of Health meeting. Councilmember Holman reported he represented Mayor Backus at the swearing in of two new police officers, Andrew Mann and Alexander Gruber. Councilmember Holman also reported on his attendance at a meeting of the Puget Sound Regional Council Growth Management Policy Board. Councilmember Wagner reported he attended the Pierce County Regional Council meeting where members discussed their legislative agenda and priorities. Councilmember Wagner also attended the Cities and Schools Forum where attendees discussed diversity and race relations. Councilmember Trout-Manuel reported on her attendance at a community meeting organized by a Latino group regarding resources available to the Latino community youth. B. From the Mayor Mayor Backus reported on her attendance at the Cities and Schools Forum, the Mayor's Task Force on Homelessness, the Halloween Harvest Festival, the Blue Ribbon Panel on Making Auburn the Healthiest City, the Veterans Got Talent competition, and the Affordable Housing Forum for South King County. Mayor Backus also commented on the Auburn Veterans Day Parade and the high school marching band competition held later that evening. Mayor Backus announced that a Mayor's Roundtable for all King County Mayors will be held tomorrow to discuss the heroin and prescription opioid addiction that has become so prevalent. XII. EXECUTIVE SESSION At 7:39 p.m. Mayor Backus recessed the meeting to executive session for approximately 15 minutes in order to discussion pending litigation pursuant to RCW 42.30.110(1) (i). City Attorney Dan Heid and Assistant City Attorney Jessica Leiser attended the executive session. It was indicated that action may follow the executive session. Mayor Backus reconvened the meeting at 7:46 p.m. City Attorney Heid read Resolution No. 5254 by title: Resolution No. 5254 A Resolution of the City Council of the City of Auburn, Washington, authorizing the settlement of all claims against Green Solution Place Preludio Management, LLC, and Green Solution Place, Inc. related to Case Number 16-2-09405-8 KNT, City of Auburn V. Green Solution Place Preludio Management, LLC, et al Councilmember Holman moved and Councilmember DaCorsi seconded to adopt Resolution No. 5254. Page 5 of 6 CA.A Page 11 of 186 MOTION CARRIED UNANIMOUSLY. 7-0 City Attorney Heid read Ordinance No. 6625 by title: Ordinance No. 6625 An Ordinance of the City Council of the City of Auburn amending Section 5.20.250 of the Auburn City Code and amending Auburn Ordinance Number 6613, related to marijuana related businesses and activities Councilmember Holman moved and Councilmember Baggett seconded to adopt Ordinance No. 6625. MOTION CARRIED UNANIMOUSLY. 7-0 XIII. ADJOURNMENT There being no further business to come before the Council, the meeting adjourned at 7:49 p.m. APPROVED this 21st day of November, 2016. _________________________________ _____________________________ NANCY BACKUS, MAYOR Danielle Daskam, City Clerk Page 6 of 6 CA.A Page 12 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Claims Vouchers Date: November 16, 2016 Department: Finance Attachments: No Attachments Available Budget Impact: $0 Administrative Recommendation: City Council approve the claims vouchers. Background Summary: Claims voucher numbers 441395 through 441596 in the amount of $4,624,426.93 and three wire transfers in the amount of $395,136.41 and dated November 21, 2016. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:November 21, 2016 Item Number:CA.B AUBURN * MORE THAN YOU IMAGINEDCA.B Page 13 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Payroll Vouchers Date: November 16, 2016 Department: Finance Attachments: No Attachments Available Budget Impact: $0 Administrative Recommendation: City Council approve payroll vouchers. Background Summary: Payroll check numbers 536845 through 536877 in the amount of $575,481.48 and electronic deposit transmissions in the amount of $1,450,093.51 for a grand total of $2,025,574.99 for the period covering November 3, 2016 to November 16, 2016. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:November 21, 2016 Item Number:CA.C AUBURN * MORE THAN YOU IMAGINEDCA.C Page 14 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Public Works Project No. CP0765 Date: November 14, 2016 Department: CD & PW Attachments: Vicinity Map CP0765 Final Pay Estimate CP0765 Budget Status Sheet Budget Impact: $0 Administrative Recommendation: City Council approve Final Pay Estimate No. 9 to Contract No. 15-04 in the amount of $5,747.50 and unilaterally accept construction of Project No. CP0765, Lakeland Hills Reservoir 5 Improvements. Background Summary: This project rehabilitated and improved the operations, water quality, and overall safety of the existing reservoir. Specifically, this project removed and replaced the existing interior and exterior coating system (including a decorative mural), improved the current mixing system, and installed seismic equipment such as flexible/expandable couplings, sensors, and isolation valve actuators. Other safety upgrades included a new spiral staircase, roof perimeter handrail, roof access platform/landing, security gate, and access hatch. Additionally, this project improved the operation of the system by providing electrical and telemetry improvements, which were integrated into the City's SCADA system. The contractor has opted to not sign the final pay estimate because the Contractor is objecting to liquidated damages charged to the Contractor for exceeding the allowed Contract time. In accordance with the contract, the City has provided the Contractor at least 30 calendar days notice of its intent to establish a Completion Date and unilaterally accept the Contract. The Contractor's objection regarding liquidated damages is being handled with the involvement of the City's Legal Department. A project budget contingency of $167,542.00 remains in the 460 Water Fund. Reviewed by Council Committees: Councilmember: Staff:Snyder AUBURN * MORE THAN YOU IMAGINEDCA.D Page 15 of 186 Meeting Date:November 21, 2016 Item Number:CA.D AUBURN * MORE THAN YOU IMAGINEDCA.D Page 16 of 186 CA.D Page 17 of 186 CA.DPage 18 of 186 CA.DPage 19 of 186 CA.DPage 20 of 186 CA.DPage 21 of 186 CA.DPage 22 of 186 Project No: CP0765 Project Title: Project Manager: Matthew Larson Project Initiation Initiation Date: April 7, 2008 Project Update Advertisement Date: March 24, 2015 Contract Award Award Date: April 6, 2015 Change Order Approval Contract Final Acceptance Funding Prior Years 2015 2016 Future Years Total 460 Fund - Bond Proceeds 84,335 1,251,774 34,034 1,370,143 460 Fund - Water 43,334 344,632 0 387,966 Total 127,669 1,251,774 378,666 0 1,758,109 Activity Prior Years 2015 (Actual)2016 Future Years Total Design Engineering - City Costs 48,312 11,726 60,038 Design Engineering - Consultant Costs 79,357 9,615 88,972 Design Engineering - Other (DOH Permit, Ad, Copies, Etc.)3,653 3,653 Construction - Contract 1,153,421 207,204 1,360,625 Line Item Changes (72,922)(72,922) Change Order No. 1 0 0 Change Order No. 2 5,717 5,717 Construction Engineering - City Costs 49,672 42,000 91,672 Construction Engineering - Consultant Costs 2,200 2,200 Construction Engineering - Other 23,687 26,925 50,612 Total 127,669 1,251,774 211,124 0 1,590,567 Prior Years 2014 (Actual)2015 Future Years Total *460 Funds Budgeted ( )(127,669)(1,251,774)(378,666)0 (1,758,109) 460 Funds Needed 127,669 1,251,774 211,124 0 1,590,567 *460 Fund Project Contingency ( )0 0 (167,542)0 (167,542) 460 Funds Required 0 0 0 0 0 * ( # ) in the Budget Status Sections indicates Money the City has available. 460 Water Budget Status BUDGET STATUS SHEET Lakeland Hills Reservoir 5 Improvements Date: November 16, 2016 The "Future Years" column indicates the projected amount to be requested in future budgets. Funds Budgeted (Funds Available) Estimated Cost (Funds Needed) CA.D Page 23 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Public Works Project No. CP1218 Date: November 14, 2016 Department: CD & PW Attachments: Vicinity Map CP1218 Budget Status Sheet Budget Impact: $0 Administrative Recommendation: City Council grant permission to advertise for bids for Project No. CP1218, Auburn Way South Corridor Safety Improvements (Muckleshoot Plaza to Dogwood St SE). Background Summary: This project consists of improving access management, providing u-turns, upgrading transit stops and street lighting, widening to accommodate turn lanes and 10-foot wide sidewalks, installing ADA accessible pedestrian push buttons with audible countdown pedestrian signal heads, and upgrading traffic signals. See the attached project map for the exact intersections and specific improvements included in this project. Advertising for construction bids is anticipated to begin in January 2017 with construction anticipated to begin in February 2017. Construction of the project is expected to last 12 months. Unless bids are lower than expected, it is anticipated that a budget adjustment of $850,800.00 from the 102 Arterial Street Fund and $108,004.00 from the 460 Water Fund will be required to fund the project. The actual amount of this increase (if any) will be addressed in the award consent item brought to Council. Reviewed by Council Committees: Councilmember: Staff:Snyder Meeting Date:November 21, 2016 Item Number:CA.E AUBURN * MORE THAN YOU IMAGINEDCA.E Page 24 of 186 AUBURN * MORE THAN YOU IMAGINEDCA.E Page 25 of 186 CA.EPage 26 of 186 Project No: CP1218 Project Title: Project Manager: Matthew Larson Update Initiation Date: _09/17/12___ Permission to Advertise Advertisement Date: ________ Contract Award Award Date: ___________ Change Order Approval Contract Final Acceptance Funding Prior Years 2015 2016 2017 Total 102 Fund - Federal Grant 98,554 262,087 1,972,467 2,333,108 102 Fund - WSDOT GCB 1913 (Federal Funds)*440,000 440,000 102 Fund - Traffic Impact Fees 250,000 250,000 102 Fund - Unrestricted Street 2,684 2,684 460 Fund - Water 1,161,340 1,161,340 Total 101,238 262,087 3,823,807 4,187,132 *Anticipated Activity Prior Years 2015 (Actual)2016 2017 Total Design Engineering - City Costs (Streets)23,379 33,773 15,000 72,152 Design Engineering - City Costs (Water)30,000 30,000 Design Engineering - Consultant Costs (Streets)77,859 228,314 142,905 449,078 Design Engineering - Consultant Costs (Water)122,072 122,072 Design Engineering - SEPA Permit (Streets)920 920 ROW - Consultant Costs (Streets)10,000 10,000 ROW - City Costs (Streets)18,500 18,500 ROW - Property Acquisitions (Streets)65,000 65,000 Construction Estimate (Streets)2,937,088 2,937,088 Construction Contingency (5%) (Streets)146,854 146,854 Construction Estimate (Water incl. Sales Tax)1,006,926 1,006,926 Construction Contingency (5%) (Water)50,346 50,346 Construction Engineering - State Costs (Streets)2,000 2,000 Construction Engineering - City Costs (Streets)150,000 150,000 Construction Engineering - City Costs (Water)50,000 50,000 Construction Engineering - Materials Testing (Streets)25,000 25,000 Construction Engineering - Mt'ls Testing (Water)10,000 10,000 Total 101,238 262,087 404,397 4,378,215 5,145,937 Prior Years 2015 (Actual)2016 2017 Total *102 Funds Budgeted ( )(101,238)(262,087)(2,662,467)0 (3,025,792) 102 Funds Needed 101,238 262,087 252,325 3,260,977 3,876,592 *102 Fund Project Contingency ( )0 0 (2,410,142)0 0 102 Funds Required 0 0 0 3,260,977 850,800 Prior Years 2015 (Actual)2016 2017 Total *460 Funds Budgeted ( )0 0 (1,161,340)0 (1,161,340) 460 Funds Needed 0 0 152,072 1,117,272 1,269,344 *460 Fund Project Contingency ( )0 0 (1,009,268)0 0 460 Funds Required 0 0 0 1,117,272 108,004 * ( # ) in the Budget Status Sections indicates Money the City has available. 460 Water Budget Status BUDGET STATUS SHEET Auburn Way South Corridor Safety Improvements (Muckleshoot Plaza to Dogwood St SE) Date: November 16, 2016 Funds Budgeted (Funds Available) Estimated Cost (Funds Needed) 102 Arterial Street Budget Status H:\PROJ\CP1218-AWS Corridor Safety Impv\Budget\CP1218.BudgetStatusSheet.xls 1 of 1 11/16/2016 9:14 AMCA.E Page 27 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Public Works Project No. CP1412 Date: November 10, 2016 Department: CD & PW Attachments: Pay Estimate CP1412 Final Payment Budget Status Sheet Budget Impact: $0 Administrative Recommendation: City Council approve Final Pay Estimate No. 13 to Contract No. 15-12 in the amount of $31,193.69 and accept construction of Project No. CP1412, Auburn Community and Teen Center. Background Summary: This project constructed a community and teen center at the north end of the Les Gove Community Campus. The community and teen center provides approximately 21,000 square feet of building space to be used for educational, cultural, and social activities. Emphasis has been made on creating spaces that will attract teens and encourage cross-generational interactions with the existing neighboring Senior Center. The community and teen center was created by renovating the City’s existing Parks, Recreation and Arts Administration Building (approximately 7,100 square feet) and adding approximately 13,700 square feet of new building space. A project budget contingency of $32,632.00 remains in the 328 Municipal Parks Construction, as indicated on the attached budget status sheet. The final contract amount is within the budget and within the authorized contingency for the project. Reviewed by Council Committees: Councilmember: Staff:Snyder Meeting Date:November 21, 2016 Item Number:CA.F AUBURN * MORE THAN YOU IMAGINEDCA.F Page 28 of 186 AUBURN * MORE THAN YOU IMAGINEDCA.F Page 29 of 186 CA.F Page 30 of 186 CA.F Page 31 of 186 CA.F Page 32 of 186 Project No: CP1412 Project Title: Auburn Community and REC Center Project Manager: Jacob Sweeting Project Initiation Initiation Date: 10/6/14 Schematic Design Date: 11/14/16 Advertisement Date: 6/9/15 Contract Award Award Date: 7/20/15 Change Order Approval X Contract Final Acceptance Funding Previous Years (Actual)2016 Future Years Total State Appropriation 2,208,319 691,681 2,900,000 328 fund 0 4,540,781 4,540,781 REET 1 492,670 1,016,549 1,509,219 Total 2,700,989 6,249,011 8,950,000 Activity Previous Years (Actual)2,016 Future Years Total Design - Consultant 843,700 843,700 Design - City 12,608 12,608 Permits and Fees 131,454 6,000 137,454 Construction Contract 1,491,989 3,548,165 5,040,154 Change Orders 1,2,3 and 4 0 760,952 760,952 Line Item Adjustment 0 20,951 20,951 Construction Management - Consultant 172,592 347,084 519,676 Construction Management - City 11,251 30,000 41,251 Other Construction Costs (Furniture, Equipment, Signage)37,395 648,227 685,622 H Street SE Extension Project (Off-Site Improvements)855,000 855,000 Total 2,700,989 6,216,379 8,917,368 * Change order utilized authorized contingency funds ** Change order approved by Council, did not utilize authorized contingency funds Previous Years (Actual)2,016 Future Years Total *Parks Funds Budgeted ( )(2,700,989)(6,249,011)0 (8,950,000) Parks Funds Needed 2,700,989 6,216,379 0 8,917,368 *Parks Funds Project Contingency ( )(0)(32,632)0 (32,632) Parks Funds Required 0 0 0 0 * ( # ) in the Budget Status Sections indicates Money the City has available. 328 Municipal Parks Construction Fund Budget Status BUDGET STATUS SHEET The "Future Years" column indicates the projected amount to be requested in future budgets. CA.F Page 33 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6619 Date: October 6, 2016 Department: CD & PW Attachments: Ordinance No. 6619 Budget Impact: $0 Administrative Recommendation: City Council introduce and adopt Ordinance No. 6619. Background Summary: Per Auburn City Code Chapter 20.06.010, a franchise shall be required of any commercial utility operator who desires to occupy public ways of the City and to provide commercial utility services to any person or area of the City. During review of facilities located in City right-of-way the City determined that Northwest Pipeline LLC is required to obtain a Franchise Agreement per Auburn City Code Chapter 20.06.010. NWP has applied for a Franchise Agreement for a term of ten (10) years to continue to operate within the City’s rights of way natural gas transmission and distribution pipeline within the City of Auburn. NWP’s existing facilities currently only serve Enumclaw Natural Gas located in south Auburn off of Auburn Way South in the Academy Drive neighborhood. NWP currently has no plans to expand services as the rest of Auburn is currently served by PSE. Any construction, maintenance, improvement or change to NWP’s facilities is managed through the City’s permitting processes as a requirement of the Franchise Agreement. Safety of NWP’s facilities is regulated and inspected through the Washington Utilities and Transportation Commission. A staff presentation was given at the October 24th Study Session discussing Draft Ordinance No 6619. A Public Hearing to consider this application and hear public comment was held before the City Council on November 11, 2016 in accordance with Auburn City Code Chapter 20.06.030. Ordinance No. 6619, if adopted by City Council, approves Franchise Agreement No. 16-54 subject to terms and conditions outlined in the Ordinance. AUBURN * MORE THAN YOU IMAGINEDORD.A Page 34 of 186 Reviewed by Council Committees: Councilmember: Staff:Snyder Meeting Date:November 21, 2016 Item Number:ORD.A AUBURN * MORE THAN YOU IMAGINEDORD.A Page 35 of 186 ORDIIVANCE NO. 6 61 9 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, GRANTING TO NORTHWEST PIPELINE LLC, A DEL-AWARE LLC, A FRANCHISE FOR GAS WHEREAS, Northwest Pipeline LLC ("Grantee") has applied to the City of Auburn ("City") for a non-exclusive Franchise for the right of entry, use, and occupation of certain public right(s)-of-way within the City, expressly to install, construct, erect, operate, maintain, repair, relocate and remove its facilities in, on, over, under, along and/or across those right(s)-of-way; and WHEREAS, following proper notice, the City Council held a public hearing on Grantee's request for a Franchise, at which time representatives of Grantee and interested citizens were heard in a full public proceeding affording opportunity for comment by any and all persons desiring to be heard; and WHEREAS, from information presented at such public hearing, and from facts and circumstances developed or discovered through independent study and investigation, the City Council now deems it appropriate and in the best interest of the City and its inhabitants that the franchise be granted to Grantee. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN WASHINGTON, DO ORDAIN as follows: Sec ion 1. Grant of Right to Use Franchise Area A, Subject to the terms and conditions stated herein, the City grants to the Grantee general permission to enter, use, and occupy the right(s)-of-way and/or other public property specified in Exhibit "A", attached hereto and incorporated by reference (the "Franchise Area"). B. The Grantee is authorized to install, remove, construct, erect, operate, maintain, relocate and repair the types of facilities specified in Exhibit"B", attached hereto and incorporated by reference, and all necessary appurtenances thereto, ("Grantee Facilities") for provision of those services set forth in Exhibit "C" Grantee Services") in, along, under and across the Franchise Area. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 1 of 30 ORD.A Page 36 of 186 C. This Franchise does not authorize the use of the Franchise Area for any facilities or services other than Grantee Facilities and Grantee Services, and it extends no rights or privilege relative to any facilities or services of any type, including Grantee Facilities and Grantee Services, on public or private property elsewhere within the City. This Franchise is intended to convey only a limited right and interest and is not a warranty of title or interest in the City's right-of ways. The Agreement does not convey any right to Grantee to install Grantee Facilities on or to otherwise impact, eity-owned or leased properties, easements, or rights-of way outside the ones identified in Exhibit A. D. This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements or licenses granted bythe City or its predecessors to use any property, Right-of-Way, easement, right, interest or license for any purpose whatsoever, including the right of the City to use same for any purpose it deems ft, including the same or similar uses allowed the Grantee hereunder. The City may at any time grant authorization to use the Right-of-Way for any purpose not incompatible with the Grantee's authority under this Agreement and for such additional franchises as the City deems appropriate. E. Except as explicitly set forth herein, this Franchise does not waive any rights that the City has or may hereafter acquire with respect to the Franchise Area or any other City roads, rights-of-way, property, or any portions thereof. This Franchise shall be subject to the power of eminent domain, and in any proceeding under eminent domain, the Grantee acKnowledges its use of the Franchise Area shall have no value. F. The City reserves the right to change, regrade, relocate, abandon, or vacate any right-of-way within the Franchise Area. If, at any time during the term of this Franchise, the City vacates any portion of the Franchise Area containing Grantee Facilities, the City shall reserve an easement for public utilities within that vacated portion; pursuant to RCW 35.79.030, within which the Grantee may continue to operate any existing Grantee Facilities under the terms of this Franchise for the remaining period set forth under Section 3. G. The Grantee agrees that its use of Franchise Area shall at all times be subordinated to and subject to the City and the public's need for municipal infrastructure, travel, and access to the Franchise Area, except as may be otherwise required by law. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 2 of 30 ORD.A Page 37 of 186 H. This Franchise is subject to the provisions of Auburn City Code ACC"), including specifically ACC Chapter 20.10, "CONDITIONS OF PUBLIC WAY AGREEMENTS, FRANCHISES, AND FACILITIES LEASES", and all federal and state laws, codes and regulations as currently exist or as amended. However, if the provisions of city code, as amended or superseded, conflict with any terms and conditions of this agreement, the provisions of this agreement shall govern. A conflict does not exist where this agreement is silent about a condition or matter addressed by city code. Section 2. Notice A. Whenever this Franchise calls for notice to or notification by any party, the same (unless otherwise specifically provided) shall be in writing and directed by cerfiified mail to the recipient at the address set forth in this Section. If the date for making any payment, notice, or perForming any act is a legal holiday, payment or notice may be made or the act perFormed on the next succeeding business day which is not a legal holiday. City:Engineering Aide, Community Development and Public Works Department City of Auburn 25 West Main Street Auburn, WA 98001-4998 Telephone: (253) 931-3010; Fax: (253) 931-3048 with a copy to: City Clerk City of Auburn 25 West Main Street Auburn, WA 98001-4998 Grantee: Land Department Northwest Pipeline LLC P.O. Box 58900 Salt Lake City, UT 84158 Telephone: (800) 453-3810 Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 3 of 30 ORD.A Page 38 of 186 B. Any changes to the above-stated Grantee information shall be sent to the City's Engineering Aide, Community Development and Public Works Department, with copies to the City Clerk, referencing the title of this agreement, C. The above-stated Grantee voice and fax telephone numbers shall be staffed at least during normal business hours, Pacific time zone. Section 3. Term of Agreement , A. This Franchise shall run for a period of 10 (ten) years, from the date of execution specified in Section 5. B. Renewal Option of Term: The Grantee may renew this Franchise for an additional ten (10) year period upon submission and approval of the application specified under ACC 20.06.130, as it now exists or is amended, within the timeframe setforth therein (currently between 180 and 240 days prior to expiration of the then-eurrent term). Any materials submitted by the Grantee for a previous application may be considered by the City in reviewing a current application, and the Grantee shall submit those materials that differ from the previous materials or as deemed necessary by the City to address changes in the Grantee Facilities or Grantee Services, or to reflect specific reporting periods mandated by the ACC. C. Failure to Renew Franchise—Automatic Extension. If the Parties fail to formally renew this Franchise prior to the expiration of its term or any extension thereof, the Franchise automatically continues month to month until renewed or either party gives written notice at least one hundred and eighty (180) days in advance of intent not to renew the Franchise. Section 4. Definitions For the purpose of this agreement: ACC" means the Auburn City Code. Emergency" means a condition of imminent danger to the health, safety and welfare of persons or property located within the City including, without limitation, damage to persons or property from natural consequences, such as storms, earthquakes, riots, acts of terrorism or wars. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 4 of 30 ORD.A Page 39 of 186 Maintenance or Maintain" shall mean examining, testing, inspecting, repairing, maintaining and replacing the existing Grantee Facilities or any part thereof as required and necessary for safe operation. Relocation" means permanent movement of Grantee facilities required by the City, and not temporary or incidental movement of such facilities, or other revisions Grantee would accomplish and charge to third parties withoufi regard to municipal request. Rights-of-Way" means the surface and the space above and below streets, roadways, highways, avenues, courts, lanes, alleys, sidewalks, easements, rights- of-ways and similar public properties and areas. Grantee Facilities" means, collectively, any and all natural gas systems owned or operated by Grantee, including but not limited to gas pipes, pipelines, mains, laterals; conduits, feeders, regulators, valves, meters meter-reading devise, fixtures, communication systems, and any and all other equipment appliances, attachments, appurtenances and other items necessary, convenient, or in any way appertaining to any and all of the foregoing for the purpose of transmission of natural gas, whether the same be located over or under ground. Hazardous Substance" shall specifically include, but shall not be limited to, petroleum and petroleum products and their by-products, residue, and remainder in whatever form or state. Operate" or "Operations" shall mean the operation, use, and maintenance of Grantee Facilities, pursuant to the terms of this Agreement. Party" or"Parties" means collectively the City and Grantee, and individually either the Cify or Grantee. Public Works Project" means, any City capital improvement or the consfruction, relocation, expansion, repair, maintenance, or removal of any part of the Public Way or City-owned facilities located on or in the Public Way for: parks; streets; sidewalks; curbs; pedestrian and/or vehicle traffic; sewers, storm water drains; water facilities, and; City owned fiber optic cable, conduit or network facilities. Third Party" means any person, party, or entity other than the City and Grantee, Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 5 of 30 ORD.A Page 40 of 186 FERC" means the Federal Energy Regulatory Commission, or such other successor regulatory agency having jurisdiction over interstate pipeline companies. Sect6on 5. Acceptance of Franchise A. This Franchise, and any rights granted hereunder, shall not become effective for any purpose unless and until Grantee files with the City Clerk (1) the Statement of Acceptance, attached hereto as Exhibit "D," and incorporated by reference, (2) all verifcations of insurance coverage specifed under Section 17, 3) the financial guarantees specified in Section 18 and (4) payment of any outstanding application fees per the City fee schedule. These four items shall collectively be the "Franchise Acceptance". The date that such Franchise Acceptance is filed with the City Clerk shall be the effective date of this Franchise. B. Should the Grantee fail to file the Franchise Acceptance with the City Clerk within thirty (30) days after the effective date of the ordinance approving the Franchise Agreement, the City's grant of the Franchise will be null and void. Section 6. Construction and Maintenance A. The Grantee shall apply for, obtain, and comply with the terms of all permits required under ACC Chapter 12.24 for any work done upon Grantee Facilities. Grantee shall comply with all applicable City, State, and Federal codes, rules; regulations, and orders, as they now exist or as may be hereafter amended or superseded, in undertaking such work, which shall be done in a thorough and. proficient manner. Grantee's work within the Public Way which directly affects Grantee's construction, operation, and maintenance of Grantee Facilities shall be perFormed in accordance with Federal law and regulation. B. Grantee agrees to coordinate its activities with the City and all other utilities located within the public right-of-way within which Grantee is under taking its activity. Such efforts shall include, at a minimum, reasonable and diligent efforts to keep the other party and other utilities within the Public Way informed of its intent to undertake such construction work. C. In addition to complying with ACC 20.10.80, as hereafter amended or superseded, Grantee Facilities shall be located and maintained within the Right- Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 6 of 30 ORD.A Page 41 of 186 of-way so as not to interfere with the reasonable ingress or egress to the properties abutting the right-of-ways as they exist at the time of installation of the Grantee Facilities. The City expressly reserves the right to prescribe how and where Grantee Facilities shall be installed within the public right-of-way and may from time to time, pursuant to the applicable sections of this Franchise, require at the expense of the Grantee, the removal, relocation and/or replacement thereof, subject to any approval or modification of the City's requested removal, relocation or replaeement by the FERC pursuant to 18C.F.R.157. D. Grantee shall continuously be a member of the State of Washington One Number Locator service under RCW 19.122, or an approved equivalent as determined by the City, and shall comply with all such applicable rules and regulations. Before commencing any work within the public right-of-way, the Grantee shall comply with the One Number Locator provisions of RCW Chapter 19.122 to identify existing utility infrastructure. E. Tree Trimming. Upon prior written approval of the City and in accordance with City ordinances, Grantee shall have the authority to reasonably tcim trees upon and oVerhanging streets, public rights-of-way, and places in the Franchise Area so as to prevent the branches of such trees from coming in physical contact with the Grantee Facilities. Grantee shall be responsible for debris removal from such activities. If such debris is not removed within twenty-four(24) hours of completion of the trimming, the City may, at its sole discretion, remove such debris and charge Grantee for the cost thereof. This section does not, in any instance, grant automatic authority to clear vegetation for purposes of providing a clear path for radio signals. Any such general vegetation clea ing will require a land clearing permit. H. Markers demarcating the pipeline's location shall be placed on the surface at least every 100 yards so as to provide clear warning of the presence of the pipeline but in a manner that does not interfere with trails or other public uses in that area. Additionally, Grantee shall place continuous underground markers demarcating the pipeline's location each #ime Grantee digs to the pipeline for any reason. Section 7. Repair and Emergency Work Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 7 of 30 ORD.A Page 42 of 186 In the event of an emergency, the Grantee may commence such repair and emergency response work as required under the circumstances, provided that the Grantee shall notify the City telephonically during normal business hours (at 253.931.3010 and during non-business hours at 253-876-1985 as promptly as possible before such repair or emergency work commences, and in writing as soon thereafter as possible. Such notification shall include the Grantee's emergency contaet phone number for the corresponding response activity.For any emergency or after normal business hour issues involving the Grantee's facilities which requires the Grantee's immediafe response the City shall contact the Grantee at 801-584-6949, which is operated 24 hours a day, seven days a week. If, in the opinion of the City Director of Community Development & Public Works, the City Engineer, or the Mayor, an emergency presents a serious and immediate danger to the public health, safety and welfare, they, separately or together, may take reasonable immediate action to mitigate the damage. All costs associated with such actions will be the sole responsibility of the Grantee, and the Grantee shall reimburse the City for such costs within thirty (30) days after receipt of an item.ized bill. Grantee will not be held liable for damages as a result of the City's repair and emergency work that arise out of the negligent acts or willful misconduct of the City, its successors, assigns, permittee, agents or contractors. Section 8. Damages to City and Third-Party Property A, Grantee agrees that if any of its actions under this Franchise impairs or damages any City property, survey monument, or property owned by a fhird- party, Grantee will restore, at its own cost and expense, said property to a safe condition. Such repair work shall be performed and completed to the satisfaction of the City Engineer. B. The City may at any time perform or have performed any and all work that it considers necessary to restore to a safe condition any area within #he Public Way disturbed by Grantee in the performance of this Agreement. Grantee shall pay all reasonable costs of such work upon demand of the City. C. All survey monuments whieh are disturbed or displaced by Grantee in its performance of any work under this Agreement shall be refereneed and restored by Grantee, as per WAC 332-120, as from time to time amended, and all pertinent federal, state, and local standards and specifications. Section 9. Location Preference Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 8 of 30 ORD.A Page 43 of 186 A. Any structure, equipment, appurtenance or tangible property of a utility, other than the Grantee's, which was installed, constructed, completed or in place prior to the execution of this Franchise shall have preference as to positioning and location with respect to any new or relocated Grantee Facilities. I-lowever, to the extent that the Grantee Facilities are completed and installed prior to another private utility's submittal of a permit for new or additional structures, equiprnent, appurtenances or tangible property, then the Grantee Facilities shall have priority. These rules governing preference shall continue in the event of the necessity of relocating or changing the grade of any City road or right-of-way. A relocating utility shall not necessitate the relocation of another utility that othennrise would not require relocation. This Section shall not apply to any City facilities or utilities that may in the future require #he relocation of Grantee Facilities: Such relocations shall be governed by Section 11. B. When constructing new facilities, or replacing or reconstructing facilities, Grantee shall maintain a minimum underground horizontal separation of ten (10) feet from City water and five (5) feet from City sanitary sewer and storm sewer facilities; provided, that for development of new areas, the City, in consultation with Grantee and other utility purveyors or authorized users of the Public Way, will develop and follow the City's determination of guidelines and procedures for determining specific utility locations, subject additionally to this agreement . Section 10. Grantee Information A. To the extent City agrees to take the protective steps described in Section 10(C) Grantee agrees to supply, at no cost to the City, any information reasonably requested by the City Engineer to coordinate municipal functions with Grantee's activities and fulfill any municipal obligations under state law. Said information shall include, at a minimum, as-built drawings of Grantee Facilities, and maps and plans showing the general location of existing or planned facilities within the City. Said information may be requested either in hard eopy or electronie format, reasonably compatible with the Cify's data base system, as now or hereinafter existing, including the City's geographic information Senrice (GIS) data base. If said elec#ronic format is not compatible then Grantee will supply hard copies to scale and size requested by the City. Grantee shall keep the City Engineer informed of its long-range plans for coordination with the City's long- range plans. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 9 of 30 ORD.A Page 44 of 186 B. Upon the City's reasonable request, in connection with the design of any Public Works Project, Grantee shall verify the location of its underground Facilities within the Public Way by excavating (e.g., potholing) at no expense to the City. In the event Grantee performs such excavation, the City shall not require any restoration of the disturbed area in excess of restoration to the same condition as existed immediately prior to the excavation. C. The parties understand #hat Washington law limits the ability of the Cify to shield from public disclosure any information given to the City. Grantee shall clearly mark any information that it provides to the City as "Proprietary" information if Grantee believes that disclosure of that information would be exempt under the trade secrets exemption in RCW 42.56.270. The City agrees that if it receives a request for Grantee's proprietary information, it will initially assert the exemption under 42.56.270, and will nofify Grantee of the request. The City shall not initiate legal action to prevent disclosure of Grantee's proprietary information. If a requestor files a lawsuit to compel disclosure, Grantee agrees to defend the action at Grantee's sole expense. Grantee shall indemnify and hold harmless the City for any loss or liability for fines, penalties, and costs (including attorney fees) imposed on the City because of non-disclosures requested by Grantee under Washington's open public records act, provided the City has notifed Grantee of the pending request or Grantee is made aware of the request or claim. Section 11. Relocation of Grantee Facilities A. Except as otherwise required by law, Grantee agrees to relocate, remove, or reroute its facilities within one hundred eighty(180) days, and the terms of its FERC Certificate, of being ordered by the City Engineer at no expense or liability to the City, except as may be required by RCW Chapter 35.99. Such alternate location for relocation of Grantee's facilities shall be determined and approved jointly by the City and Grantee at no cost to the City. Pursuant to the provisions of Section 16, Grantee agrees to protect and save harmless the City from any customer or third-party claims for senriee interruption or other losses in connecfion with any such change, relocation, abandonment, or vacation of the Public Way. B. If a readjustment or relocation of the Grantee Facilities is necessitated by a request from a party other than the City, #hat party shall pay the Grantee the actual costs thereof. Any contractor doing work pursuant to contract with the City shall not be considered a Third Party for purposes of this section. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 10 of 30 ORD.A Page 45 of 186 C. Any condition or requirement imposed by the City upon any Third Party (including, but not limited to, any condition or requirement imposed pursuant. to any confract or in conjunction with approvals or permits abtained pursuant to any zoning, land use, construction or other development regulation)which equires the relocation of Grantee's Facilities within the Rights-of-Way shall be a condition or requirement causing relocation of Grantee's Facilities to occur subject to the provisions of Subsection B above; provided, however in the event the City reasonably determines and notifies Grantee that the primary purpose of imposing such condition or requirement upon such Third party is to cause or facilitate the construction of a Public Works Project to be undertaken within a segment of the Right=of-Ways on the City's behalf and consistent with the City's Capital Facility Plan or Transportation Improvement Program, then Grantee shall relocate its Facilities within such segment of the Rights-of-Way in accordanee with this Agreement. D. As to any relocation of Grantee's Facilities whereby the cost and expense thereof is to be borne by Grantee in accordance with this Section 11, Grantee may, after receipt of written notice requesting such relocation, submit in writing to the City alternatives to relocation of its Facilities. Upon the City's receipt from Grantee of such written alternatives, the City shall evaluate such alternatives and shall advise Grantee in writing if one or more of such alternatives are suitable to accommodate the work which would otherwise necessitate relocation of Grantee's Faeilities. In evaluafing such alternatives, the City shall give each alternative proposed by Grantee full and fair consideration with due regard to all facts and circumstances which bear upon the practicality of relocation and alternatives to relocation. In the event the City determines that such alternatives are not appropriate, Grantee shall relocate its Facilities as otherwise provided in this Agreement. E-. Nothing in this Section 11 shall require Grantee to bear any cost or expense in connecfion with the relocation of any Facilities under benefit of easement independent of this Agreement or other rights not arising under this Agreement, nor shall anything in this Section 11 require the City to bear any such cost or expense. Nothing in this Section 11 shall be construed to be a waiver of any right of either Grantee or the City to contest any claim or assertion by the other of responsibility to pay such cost or expense. F. Subject to ACC 20.10.160, in the event of an emergency posing a threat to public safety or welfare requires the relocation of Grantee's Facilities Ordinanee No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 11 of 30 ORD.A Page 46 of 186 within the Rights-of-lNay, the City shall give Grantee notice of the emergency as soon as reasonably practicable. Upon receipt of such notice from the City (and subject to the issuance of any necessary order(s)of the Federal Energy Regulatory Commission), Grantee shall endeavor to respond as soon as reasonably practicable to relocate the affected Facilities. Section 12. Abandonment and or Removal of Grantee Facilities A. Subject to ACC 20.10.130, within one hundred and eighty days (180) of Grantee's permanent cessation of use of the Grantee Facilities, or any portion thereof, the Grantee shall (subject to any necessary approval(s) and/or order(s) to be provided by FERC concerning abandonmenf), at the Gity's discretion, either abandon in place or remove the affected facilities. Grantee will remove the facilities if the City deems removal reasonably necessary. Abandonment or removal shall be at the sole cost and expense of Grantee. Any Facilities left in place shall be made inert by purging all natural gas from such Faeilities (including displacement of natural gas with an appropriate inert gas) and disconnecting and sealing such Facilities, all in compliance with applicable regulations and industry standards. The City's consent shall not relieve Grantee of the obligation and/or costs to subsequently remove or alter such Facilities in the event the City reasonably determines that such removal or alteration is necessary or advisable for the health and safety of the public, in which case Grantee shall perform such work at no cost to the City. The obligations contained in this Section shall sunrive the expiration, revocation, or termination of this Agreement. Section 13. Encroachment Management Grantee shall manage and inspect encroachments as defined by federal and applicable state and local laws, rules, regulations and industry standards; as now enacted or hereinafter amended, and any other future laws or regulations that are applicable to Grantee, the Facilities, and business operations. Upon notification to Grantee of planned construction by another within ten (10) feet of Grantee's pipeline, Grantee shall flag the precise location of its Faeilities before the construction commences, provide a representative to inspect the construction when it commences, and periodically inspect thereafter to ensure that Grantee's pipeline is not damaged by the construction. Section 14. Emergency Management, Leaks, Ruptures, and Emergency Response. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 12 of 30 ORD.A Page 47 of 186 A. Upon the request of the City, Grantee shall meet with the Valley Regional Fire Authority, the Auburn Police Department, and the City's Emergency Management Office to coordinate emergency management operations at the request of the City, Grantee personnel shall actively participate with the Valley Regional Fire Authorify and the City in emergency preparedness drills or planning sessions. B. Grantee shall have in place, at all times during the term of this Agreement, a system for remotely monitoring pressures and flows across the Public Way. C. During the term of this Agreement, Grantee shall have a written emergency response plan and procedure for locating leaks and ruptures and for shutting down valves as rapidly as possible. D. Upon acceptance of this Agreement, Grantee shall provide, for the City's review, a copy of its emergency response plans and procedures, including, but not limited to, emergency rupture response. If the parties disagree as to the adequacy of Grantee's emergency response plan, the parties will submit the plan to independent, third party review. If the review recommends that Grantee make modi cations or additions to Grantee's emergency response plan, Grantee covenants to consider said recommendations in good faith. If Grantee declines to follow the recommendations, Grantee shall provide a written report to the City explaining its reasoning for not following said recommendations. The parties agree to comply with the dispute resolution provisions contained herein to resolve any dispute over whether to follow the recommendations. Upon completion of the review of Grantee's emergency plans and procedures set forth in this section, Grantee shall provide a copy of the plans and procedures to the City and to the Valley Regional Fire Authority. E. Grantee's emergency plans and procedures shall designate Grantee's responsible local emergency response officials and a direct finrenty four 24) hour emergency contact number for the control center operator. Grantee shall, after being notified of an emergency, cooperate with the City and make every effort to respond as soon as possible to protect the public's health, safety and welfare. F. Grantee shall be solely responsible for all its necessary costs incurred in responding to any leak, rupture or other release of natural gas from Grantee's Facilities, including, but not limited to, detection and removal of any contaminants from air, earth or water, and all remediation costs. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 13 of 30 ORD.A Page 48 of 186 G. If requested by the City in writing, Grantee shall provide a written summary conceming any leak or rupture within thirty (30) days concluding Grantee's prompt investigation, including, but not limited to, the leak or rupture's date, time, amount, location, response, remediation and other agencies Grantee has notified. H. The City may request that any substantial leak or rupture be investigated by the WUTC or PHSMA. Grantee shall be solely responsible for paying all of the costs and expenses incurred in investigating the occurrence and reporting the findings. Grantee shall meet and confer with the WUTC or PHSMA following their investigation to address whether any modifications or additions to Grantee's pipeline(s) and/or Facilities may be warranted- I.If the WUTC or PHMAS recommends that Grantee make modifications or additions to Grantee's pipeline(s) and/or Facilities, Grantee covenants to consider said recommendations in good faith. If Grantee declines to follow the WUTC or PHMAS's recommendations, Grantee shall provide a written report to the City explaining its reasoning for not following said recommendations. The parties agree to comply with the dispute resolution provisions contained herein to resolve any dispute over whether to follow the consultant's recommendations. Section 15. Maintenance, Inspection, and Testing. Grantee shall remain solely and separately liable for the operation, testing, maintenance, replacement and/or repair of the pipeline or other activities permitted under this Agreement. Grantee shall operate, maintain, inspect, and test the Facilities in full eompliance with all applicable federal, state, and local laws, rules, regulations, and industry standards, as now enacted or hereinafter amended, and any other future laws or regulations that are applicable to Grantee, the Facilities, and business operations. Section 16. Indemnification and Hold Harmless A. The Grantee shall defend, indemnify, and hold the City and its officers, officials, agents, employees, and volunteers harmless from any and all costs, claims, injuries, damages, losses, suits, or liabilities of any nature including attorneys' fees arising out of or in connection with the Grantee's perFormanee under this Franchise, except to the extent such costs, claims, injuries, damages; Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 14 of 30 ORD.A Page 49 of 186 losses, suits, or liabilities are caused by the sole negligence or wrongful misconduct of the City. B. The Grantee shall hold the City harmless from any liability arising out of or in connection with any damage or loss to the Grantee Facilities caused by maintenance and/or construction work perFormed by, or on behalf of,the City within the Franchise Area or any other City road, right-of-way, or other property, except to the extent any such damage or loss is direct.ly caused by the sole negl.igence or wrongful misconduct of the City, or its agent performing such work. C. The Grantee acknowledges that neither the City nor any other public . agency with responsibility for firefighting, emergency rescue, public safety or similar duties wi#hin the City has the capab'ility to provide trench, close trench or confined space rescue. The Grantee, and its agents, assigns, successors, or contractors, shall make such arrangements as Grantee deems fit for the provision of such services. The Grantee shall hold the City harmless from any liability arising out of or in connection with any damage or toss to the Grantee for the Ciiy's failure or inability to provide such services, and, pursuant to the terms of Section 14(A), the Grantee shall indemnify the City against any and all third-party costs, claims, injuries, damages, losses, suits, or liabilities caused by the City's failure or inability to provide such services. D. Acceptance or inspection by the City of any work perFormed by the Grantee shall not be grounds for avoidance of this section. E. In addition to the promise of indemnification required by ACC 20.10.230, Grantee shall indemnify, defend and hold the City, its appointed and elective officials, agents, officers, employees, and volunteers harmless from and against any and all claims, demands, liability, Ioss, cost, damage or expense of any nature whatsoever including all costs a_nd attorney's fees, made against the City on account of violation of any environmental laws applicable to the Grantee Facilities, or from any release of natural gas or Hazardous Substances on or from the Grantee Facilities. This indemnity includes, but is not limited to: (a) liability for a governmental agency's costs of removal or remedial action for hazardous substances; (b) damages to natural resources caused by hazardous substances, including the reasonable costs of assessing such damages; (c) liability for any other person's costs of responding to hazardous substances; and (d) liability for any costs of investigation, abatement, correction, cleanup,fines, penalties, or other damages arising under any environmental laws. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 15 of 30 ORD.A Page 50 of 186 F The Grantee, further agrees to indemnify, hold harmless and defend the City against any claims for damages, including, but not limited to, business interruption damages and lost profits, brought by or under users of the Grantee's facilities as the result of any interruption of service due to damage or destruction of the Grantee's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees, or contractors, except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful or malicious actions on the part of the City, its officers, agents, employees, or contractors. G. 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 negl_igence of the Granfee and the City, its officers, officials, employees, and volunteers, the Grantee's liability hereunder shall be only to the extent of the Grantee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Grantee's waiver of immunity under Industrial Insurance. Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. Section 17. Insurance A. The Grantee shall maintain or cause to be maintained for the duration of this Franchise, 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 Grantee, its agents, representatives, or employees in the amounts and types set forth below. The required Commercial General Liability limit can be met under a combination of primary and excess liability policies: 1. Automobile Liability insurance covering all owned, non- owned, hired, and leased vehicles with a minimum combined single limit for bodily injury and property damage of $2:,000,000:00 (two million dollars) per accident. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a s:ubstitute form providing equivalent liability coverage. If necessary,the policy shall be endorsed to provide contractual liability coverage. Ordinance No. 6619 Franchise Agreernent No. 16-54 August 29, 2016 Page 16 of 30 ORD.A Page 51 of 186 2. Commercial General Liability insurance with limits no less than $100,000,000.00 (one hundred million dollars) each occurrence, 100,000,000.00 (one hundred million dollars) general aggregate and a 100,000,000.00 (one hundred million dollars) products-completed operations aggregate limit. Coverage shall be written on ISO occurrence form CG 00 01, or an equivalent occurrence based form, or on a claims made form with tail coverage of three years and a retroactive date to cover the services provided pursuant to this agreement and shall cover Iiability arising from premises, operations, independent contractors, products-completed operations, stop gap liability, and personal injury and advertising injury and liability assumed under an insured contract. There shall be no endorsement or modification of the Commercial General Liability insurance for liability arising from explosion, collapse, or underground property damage. The City shall be named as an additional insured under the Grantee's Commercial General Liability insurance policy with respect to the work perFormed under this Franchise using ISO Additional Insured Endorsement CG 20 10 and Additional Insured-Completed Operations endorsement CG 20 37 or substitute endorsements providing similar coverage. 3.The Grantee's general liability coverage, proof of which is provided by Grantee to the satisfaction of the City, shall evidence sudden and accidental pollution limit of$10,000,000.00. 4. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Grantee's insurance coverage shall be primary insurance as respects the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Grantee's insurance and shall not contribute with it. 2. The Grantee's insurance (with the exception of Workers' Compensation) shall be endorsed to provide the City thirty (30) days' prior written notice of cancellation. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Fage 17 of 30 ORD.A Page 52 of 186 D. Verification of Coverage. Grantee shall furnish the City with doeumentation of insurer's A.M. Best rating and with original certifcates and a copy of amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. E. Grantee shall have the right to self-insure any or all of the above- required insurance. Any such self-insurance is subject to approval by the City. F. Grantee's maintenance of insurance as required by this Franchise shall not be construed to limit the liability of Grantee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy to which the City is otherwise entitled at law or in equity. Section 18. Perforonance Security The Grantee shall provide the City with a financial guarantee in the amount of Fifty Thousand Dollars ($50,000.00) running for, or which shall annually automatically renew over, the term of this Franchise, in a form and substance acceptable to the Gity. In the event Grantee shall fail to substantially comply with any one or more of the provisions of this Franchise, then there shall be recovered jointly and severally from the principal and any surety of such financial guarantee any damages suffered by City as a result#hereof, including but not limited to staff time, material and equipment costs, compensation or indemnification of third parties, and fhe cost of removal or abandonment of facilities hereinabove described. Grantee specifcally agrees tha# its failure to comply with the terms of Se tion 22 Enforcement & Remedies) shall constitute damage to the City in the monetary amount set forth therein. Such a financial guarantee shall not be construed to limit the Grantee's liability to the guarantee amount, or otherwise limit the City's recourse to any remedy to which the City is otherwise entitled at law or in equity. ection 19. Relationship of#he Parties A. Nothing in this Agree_ment shall be construed to create or confer any right or remedy upon any person(s) other than the City and Grantee. No action may be commenced or prosecuted against any Party by any Third Party claiming as a Third Party bene ciary of this Agreement. This Agreement shall not release or discharge any obligation or liability of any Third Party#o either Party. Ordinance No. 6619 Franchise Agreernent No. 16-54 August 29, 2016 Page 18 of 30 ORD.A Page 53 of 186 B. Nothing contained in this Agreement shall be construed to create an association, trust, partnership, agency relationship, or joint venture or to impose a trust, partnership, or agency duty, obligation or liability on or with regard to any paity. Eaeh party shall be individually and severally liable for its own duties, obligations, and liabilities under this Agreement. C. Grantee accepts any privileges granted by the City in an "as is" condition. Grantee agrees that the City has never made any representations, implied or express warranties or guarantees as to the suitabi.lity, security or safety of Grantee's location of facilities or the facilities themselves in public property or rights of way or possible hazards or dangers arising from other uses of the public rights of way or other public property by the City or the general public. Grantee shall remain solely and separately liable for the function, testing, maintenance, replacement and repair of the pipeline or other activities permitted under this Agreement. D. E-xcept as specifically provided herein, this Agreement shall not create any duty of the City or any of its officials, employees or agents and no liability shall arise from any action or failure to act by the City or any of its officials, employees or agents in the exercise of powers reserved to the City. Further, this Agreement is not intended to acknowledge, create, imply or expand any duty or Iiability of the City with respect to any function in the exercise of its police power or for any other purpose.Any duty that may be deemed to be created in the City shall be deemed a duty to the general public and not to any specific party, group or entity. Section 20. Successors and Assignees A. All the provisions, condi#ions, regulations and requirements herein contained shall be binding upon the successors, assigns of, and independent contraetors of the Grantee, and all rights and privileges, as well as all obligations and liabilities of the Grantee shall inure to its successors, assignees and contractors equally as if they were specifically mentioned herein wherever the Grantee is mentioned. B. This Franchise shall not be leased, assigned or otherwise alienated without the express prior consent of the City by ordinance. C. Grantee and any proposed assignee or transferee shall provide and certify the following to the City not less than sixty (60) days prior to the proposed Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 19 of 30 ORD.A Page 54 of 186 date of transfer: (a) Complete information setting forth the nature, term and conditions of the proposed assignment or transfer; (b) AII information required by the City of an applicant for a Franchise with respect to the proposed assignee or transferee; and, (c)An application fee which shall be set by the City, plus any other costs actually and reasonably incurred by the City in processing, and investigating the proposed assignment or transfer. D. Prior to the City's consideration of a request by Grantee to consent to a Franchise assignment or transfer, the proposed Assignee or Transferee shall fle with the City a written promise to unconditionally accept all terms of the Franchise, effective upon such tran.sfer or assignment of the Franchise. The City is under no obligation to undertake any investigation of the transferor's state of compliance and failure of the City to insist on full compliance prior fo transfer does not waive any right to insist on full compliance thereafter. Section 21. Dispute Resolution A. In the event of a dispute between the City and the Grantee arising by reason of this Agreement, the dispute shall first be referred to the operational officers or representatives designated by Grantor and Grantee to have oversight over the administration of this Agreement. The officers or representatives shall meet within thirty (30) calendar days of either party's request for a meeting, whichever request is first, and the parties shall make a good faith effort to achieve a resolution of the dispute. B. If the parties fail to achieve a resolution of the dispute in this manner, either party may then pursue any available judicial remedies. This Franchise shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be exclusively in King County, Washington. The prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit, which s'hall be fixed by the judge hearing the case, and such fees shall be included in the judgment. Section 22. Enforcement and Remedies A. If the Grantee shall willfully violate, or fail to comply with any of the provisions of this Franchise through willful or unreasonable negligence, or should it fail to heed or comply with any notice given to Grantee under the provisions of Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 20 of 30 ORD.A Page 55 of 186 this agreement, the City may, at its discretion, provide Grantee with written notice to cure the breach within thirty (30) days of notification. If the City determines the breach cannot be cured within thirty days, #he City may specify a longer cure period, and condition the extension of time on Grantee's submittal of a plan to cure the breach within the specified period, commencement of work within the original thirty day cure period, and diligent prosecution of the work to completion. If the breach is not cured within the specified time, o the Grantee does not comply with the specified conditions, the City may, at its discretion, eitfier (1) revoke the Franchise with no further noti cation, or (2) claim damages as provided in ACC 20.10.340 per day against the financial guarantee set forth in Section 18 for every day after the expiration of the cure period that the breach is not cured. B. Should the City determine that Grantee is acting beyond the scope of permission granted herein for Grantee Facilities and Grantee Services, the City reserves the right to cancel this Franchise upon thirty days (30) written notice to Grantee and require the Grantee to apply for, obtain, and comply with all applicable City permits, franchises, or other City permissions for such actions, and if the Grantee's actions are not allowed under applicable federal and state or City laws, to compel Grantee to cease such actions. Section 23. Compliance with Laws and Regulations A. In carrying out any authorized activities under the privileges granted herein, Grantee shall meet accepted industry standards and comply with all applicable laws, rules, and regulations, of any governmental entity with jurisdiction over the pipeline and its operation (specifically including, but not limited to, all requirements, rules, regulations, and orders of FERC and the applicable provisions of the City's comprehensive plan). This shall include all applicable laws, rules and regulations existing at the Effecfive Date of this Franchise or that may be subsequently enacted by any governmental entity with jurisdiction over Grantee or the pipeline(s) and the Facilities. Furthermore, nofinrithstanding any other terms of this agreement appearing to the contra.ry, the Grantee shall be subject to the police power of the City to adopt and enforce general ordinances necessary to protect the safety and welfare of the general public in relation to the rights granted in the Franehise Area. B. The City reserves the right at any time to amend this Franchise to conform to any hereafter enacted, amended, or adopted federal or state statute or regulation relating to the public health, safety, and welfare, or relating to roadway regulation, or a City Ordinance enacted pursuant to such federal or state statute Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 21 of 30 ORD.A Page 56 of 186 or regulation upon providing Grantee with thirty(30)days written notice of its action setting forth the full text of the amendment and identifying the statute, regulation, or ordinance requiring the amendment. Said amendment shall become automatically effective upon expiration of the notice period unless, before expiration of that period, the Grantee makes a written call for negotiations over the terms of the amendment. If the parties do not reach agreement as to the terms of he amendment within thirty (30) days of the call for negotiations, the City may enact the proposed amendment, by incorporating the Grantee's concerns to the maximum extent the City deems possible. C. The City may terminate this Franchise upon thirty (30) days written notice to the Grantee, if the Grantee fails to comply with such amendment or modifcation. Section 24. License, Tax and Other Charges This Franchise shall not exempt the Grantee from any future lic.ense, tax, or charge which the City may hereinafter adopt pursuant to authority granted to it under state or federal law for revenue or as reimbursement for use and occupancy of the Franchise Area. Section 25. Consequential Damages Limitation Notwithstanding any other provision of this Agreement, in no event shall either party be liable for any special, incidental, indirect, punitive, reliance, consequential or similar damages. Section 26. Force flAajeure In the event that either Party is prevented or delayed in the perFormance of any of its obligations under this Agreement by reason beyond its reasonable control (a "Force Majeure Event"), then that Party's performance shall be excused during the Force Majeure Event. Force Majeure Events shall include, without limitation, war; civil disturbance; flood, earthquake or other Act of God; laws, regulations, rules or orders of any governmental agency; sabotage; strikes or similar labor disputes involving personnel of a party, its contractors or a Third party; or any failure or delay in the perFormance by the other party, or a Third Party who is not an employee, agent or contractor of the Party claiming a Force Majeure Event, in connection with this Agreement. Upon removal or termination of the Force Majeure Event, the Party claiming a Force Majeure Event shall promptly Ordinanee No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 22 of 30 ORD.A Page 57 of 186 perform the affected obligations in an orderly and expedited manner under this Agreement. The Parties shall use all commercially reasonable efforts to eliminate or minimize any delay caused by a Force Majeure Event. The occurrence of a Force Majeure Event shall not alter or impair any of the provisions concerning liability and/or insurance as provided in this Agreement. Section 27. Severability & Survival In the event that a court or agency of competent jurisdiction declares a material provision of this Franchise to be invalid, illegal or unenforceable, fhe parties shall negotiate in good faith and agree, to the ma.ximum extent practicable in light of such determination, to such amendments or modifications as are appropriate actions so as to give effect to the intentions of the parties as reflected herein. If severance from this Franchise of the particular provision(s) determined to be inyalid, illegal or unenforceable will fundamentally impair the value of this Franchise, either party may apply to a court of competent jurisdicfion to reform or reconstitute the Franchise so as to recapture the original intent of said particular provision(s). All other provisions of the Franchise shall remain in effect at all times during which negotiations or a judicial action remains pending. All provisions, conditions and requirements of this Agreement that may be reasonably construed to survive #he termination or expiration of this Agreement shall survive the terrnination or expiration of the Agreement. Subject to Sec#ion 15 above, the Parties' respective rights and interests under this Agreement shall inure to the benefit of their respective successors and assigns. Section 28. Tifles The section titles used herein are for reference only and should not be used for the purpose of interpreting this Franehise. Section 29. Implementation. The parties each represent and warrant that they have full authority to enter into and to perform this Agreement; that they are not in default or violation of any permit, license, or similar requirement necessary to carry out the terms hereof, and that no further approval, permit, license, certification, or action by a governmental authority is required to execute and perform this Agreement, except such as may be routinely required and obtained in the ordinary course of business. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 23 of 30 ORD.A Page 58 of 186 Whenever this Agreement sets forth a time for any act to be perFormed, such time shall be deemed to be of the essence, and any failure to perForm within the allotted time may be considered a material violation of this Agreement. Section 30. Entire Agreement This Agreement, as subject to the appropriate city, state, and federal laws, codes, and regulations, and the attachments hereto represent the entire understanding and agreement befinreen the parties with respect to the subject matter and it supersedes all prior oral negotiations befinreen the parties. All previous Agreements between the parties pertaining to GRANTEE's operation of its pipeline(s) and/or Facilities are hereby superseded. Section 31. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: APPROVED: NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk AP RO ED F R : iel B. He ity A orney Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 24 of 30 ORD.A Page 59 of 186 Published: Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 25 of 30 ORD.A Page 60 of 186 Insert Exhibit "A" Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 26 of 30 ORD.A Page 61 of 186 Exhibit "B" Description or plans of facilities that are in the ground: 26inch, 30inch and 36inch diameter high pressure natural gas transmission pipelines, together with cathodic protection equipment and appurtenances. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 27 of 30 ORD.A Page 62 of 186 Exhibit "C" Description of services offered from facilities in Exhibit B to customers within the Auburn City Limits: High pressure natural gas transmission pipeline services for local natural gas distribution companies, powerplants or other industrial users. Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 28 of 30 ORD.A Page 63 of 186 EXHIBIT "D" STATEMENT OF ACCEPTANCE for itself, its successors and assigns, hereby accepts and agrees to be bound by all lawful terms, conditions and provisions of the Franchise attached hereto and incorporated herein by this reference. Grantee] By: Date: Name: Title: STATE OF ss. COUNTY OF On this day of 20 oc, before me the undersigned, a Notary Public in and for the State of duly commissioned and sworn, personally appeared, of the company that executed the within and foregoing instrument, and acknowledged the said . instrument to be the free and voluntary act and deed of said company, for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date hereinabove set forth. Signature NOTARY PUBLIC in and for the State of residing at Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 29 of 30 ORD.A Page 64 of 186 MY COMIVIISSION EXPIRES: Ordinance No. 6619 Franchise Agreement No. 16-54 August 29, 2016 Page 30 of 30 ORD.A Page 65 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6621 Date: November 15, 2016 Department: Finance Attachments: Ordinance No. 6621 Budget Impact: Administrative Recommendation: City Council to introduce and adopt Ordinance No. 6621, establishing the City's budget for 2017-2018. Background Summary: Budget Process: In April, the City began the process of developing the budget for the 2017-2018 biennium. This included budget workshops as follows: - June 22: Fund and budget process overview (workshop #1) - August 16: General, Proprietary, Capital and Special Revenue Funds (workshop #2) - August 23: General, Proprietary, Capital and Special Revenue Funds (workshop #3) - August 30: General, Proprietary, Capital and Special Revenue Funds (workshop #4) During these presentations and workshops, Council provided policy guidance to the administration. These included clarifying 2015-2016 accomplishments and expanding upon 2017-2018 goals and objectives. 2017-2018 Preliminary Budget: A copy of the 2017-2018 Preliminary Budget was filed with the City Clerk, distributed to Council, and made available to the public on October 17, 2016. Ordinance No. 6621: Council’s approval of Ordinance No. 6621 will establish the City’s 2017-2018 biennial budget. As the budget has been reviewed by Council during the budget workshops, adoption of Ordinance No. 6621 is scheduled as follows: - October 17: First public hearing. - November 7: Second public hearing - November 21: Council adoption. AUBURN * MORE THAN YOU IMAGINEDORD.B Page 66 of 186 Staff recommends Council approval of Ordinance No. 6621. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:November 21, 2016 Item Number:ORD.B AUBURN * MORE THAN YOU IMAGINEDORD.B Page 67 of 186 ORDINANCE NO. 6 6 2 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, ADOPTING THE 2017-2018 BIENNIAL BUDGET FOR THE CITY OF AUBURN, WASHINGTON THE CITY COUfVCIL OF THE CITY OF AUBURN, WASHINGTON; DO ORDAIN AS FOLLOWS: Section 1. That pursuant to the provisions of Chapter 35A.34, the Mayor of the City of Aubum has heretofore duly completed and placed on file with the City Clerk of the City of Auburn a preliminary biennial budget for 2017-2018, and that notice was thereupon duly published, as required by law, stating that the Mayor had completed and placed on file such preliminary budget and a copy would be furnished to any taxpayer who would call therefore at the office of the City Clerk, and that the City Council of the City of Auburn would meet on November 21, 2016 at 7:00 p.m. for the purpose of fixing the budget and any taxpayer might appear at such time and be heard for or against any part of such budget, and designated the place of such meetings as the Auburn Community and Events Center, 910 9th Street SE, Auburn, Washington; That the Mayor of the City of Auburn duly provided a suitable number of copies of such detailed preliminary budget to meet the reasonable demands of taxpayers therefore; That the Mayor and the City Council of the City of Aubum met at the time designated in said notice in the Auburn Community and Events Center, 910 9t'' Street SE, Auburn, Washington on November 21 at 7:00 p.m.; That any and all taxpayers of the City of Auburn were given full opportunity to be heard for or against such budget; 'fhat the City Council has conducted public hearings on Ocfober 17, 2016, November 7, 2016, and November 21, 2016 to consider this preliminary Ordinance No. 6621 November 15, 2016 Page 1 of 5ORD.B Page 68 of 186 budget; That at said meetings said budget was considered; and that, at the meeting held by the City Council on the 21st day of November 2016 the City Council eonsidered modifications of said budget and thereafter approved the 2017-2018 biennial budget for the City of Auburn as herein adopted by this Ordinance as shown on Schedule A. Section 2. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective Date. This Ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: APPROVED: NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam City Clerk Ordinance No. 6621 November 45, 2016 Page 2 of 5ORD.B Page 69 of 186 APPROVED AS TO FORM: a ' I B. Heid City Attorney PUBLISHED: Ordinance No. 6621 November 15, 2016 Page 3 of 5ORD.B Page 70 of 186 Schedule A 2017 BUDGET SUM MPRY-ALL FUNDS Beginning 2017 2017 Ending Fund Fund Balanca Resources E<pendiNres Funtl Balance GENERALFUND 16,'191,]31 $65,919,5G0 $69,4B7,9B2 5 2.623.309 Artanal Sireet 7,fi32,556 2,539,076 2794.Bt8 t,376,814 Local Street 1,401,882 1.909.100 2A 7,839 893,143 HotellMotel Tan 84,044 110,400 H0,400 84,044 uw Artenal Slreet Presenation 1,378,878 3,755,600 4,760.470 366.008 w Dru9 Fdlelture 357.897 87,100 251,016 193,981 Housing 8 Communiry De elopmenl 54,905 7t0,000 712 450 52.455 Q Recreational Trails 49,658 7,340 56,998 u Businesslmpro ementArea 48.516 55,200 55.000 4A.716 Cumulati e Resene 7.546,'199 20,500 200,000 7.366,699 MitigalionFees 4,274.762 1,520,200 ,365.OP1 4p29,4B1 7998 Lib2 Bond 283.850 283,850 v Ci y Mall Annex 2010 ASB Bona 1.683.192 t.683.i92 w Locai Redtelization 2010 C80 BonE SB9.071 589,071 N LIDN350 170ti 7.499 246 11,959 mw Gal/I Cemet 2016 Re(untlin 554,393 554,393 SCORE 2D09 A8B Bond 2,033A 4 2,a33,A74 Q Municipal Park ConsWction 453,426 2,186,7 J6 2,358,106 2ffi,116 r Q Capilal Impro emenls 7.347.302 9,172,114 2,72L,1t] 79 299 U a local ReNtalization 325,651 600 326251 Waler 4,641,113 22,153,450 21,172,51] 5,622,04G w z Sewer 9,518,732 9,695,290 10J58,093 9,055,929 w Sewer Metro 2.374.705 t7.238.490 17,29a.700 2.318,495 N Storm Drolnage 13,319,582 11,218,627 12,414,OB6 12,124,123 a w Salid Wasle 3,849,877 14,912,500 4,52(i.476 4,233,901 r w Airpon 346.975 1.129.967 t.041.034 435,908 Cemelery 434,887 iJ28.300 1.16L977 401.210 Insurance 1.312,689 1,500 229.980 1,084,209 w Workers'Compensation 787,022 1,056.900 850777 993.145 yo Q Pacillfies 1,330,105 3,462.500 3.507.030 t,285.575 z - Iniwv.tlionandTechnology 1,992.399 6,184,022 6.6G1.610 1.514.Bi1 EQuipmentRental 3,634,008 4,792,733 4.566,369 3,860,372 a ypUZ7 p LL FirePonsion 2.417.B J9 84,000 177,717 2,324,182 zw y a Z LL a Cemalary Endowmenl Care t720,479 37.8 0 t,758,279 TOTAL 888.83J.itl5 51802A1.14n 8186.A85.122 582.595207 TOTAL BUDGET 5265.080,329 269,080,329 Ordinance No. 6621 November 15, 2016 Page 4 of 5ORD.B Page 71 of 186 Schedule A 2018 BUDGET SUMMPF2Y-ALL FUNDS 6eginning 20'18 2018 Ending Fund Fund Balance Resources F cpendi[ures Fund Balance GENERALFUND 512.623,309 $66.091,810 $72,860,04h $5,855,075 Artenal Street 1,376,814 6,215,417 6,643,292 948,939 N Local Street 893,143 1,909,100 2,418,270 383,973 0 Holel/Motel Tax 84,044 113,100 113,700 84,044 LLw Anerial Slreel Preser dtian 366.008 3,067.340 2,880.440 552,908 w mg FoAeiNre 193,981 87,100 253,221 27,860 Housing&Communily De elapment 52p55 460,000 4fi8,446 M14,009 a Recreational Trails 56,998 7,340 64,338 Uwa Business Impm emenl Area 48,716 55,200 55,000 48,916 Cumulali e Reser.e 7,366.699 20,500 250,000 7.137,t99 MitigationFees 4,429,481 1,520,200 1,219,817 4,729,864 1998 Libra Bontl 282,150 282,150 w Ciry Hall Annex 2010 A&B Bond 1,675,120 1,fi75,120 w Local Redtalization 2010 C&8ontl 589,595 589,595 y LID7(350 11,959 7,812 7,246 12,525 mw GNf/Ceme[ery 2076 ReNndin 554,367 554.367 SCORE 2009 A8B eond 2A21,294 2A21,294 Q U Municipal Park Construclion 282,it6 664,590 872,000 74,706 r wa Capitallmpro ements 7.797,299 3,869,857 4.0 5.148 7,652.008 U a Local Redtalization Water 5.622,046 20,432,455 20,550,922 5,503,579 Sewer 9,055,929 8,837,670 9,2W.219 8,686,380z SewerMelm 2,318,495 18,190,923 18,250200 2,259218 ww Smrm Drainage 12,124,123 11,120,902 11,097.770 12,147,255 a w Solid Wasre 4,233.901 16.065.850 15,691.927 4,607,824 w Airparl 435,908 2,57L467 2,547,309 46D,066 Cemelery 401,2 0 1,183.800 .197,391 387,615 w Insurance 1,084,20'J 1,500 241,230 844,4]9 Workers'Compensation 993J45 ,103,700 8G2.683 7.234.162wN Q Facilities 1.285,575 3,875,400 3,911,293 1,249,682 z LL w InnovdtionandTechnoloqy 1,514,811 fi,803,327 7,097,732 1,22,406 H Equipment Rental 3,860.3 2 4,753,014 4,336,260 4,277,t26 r NaoUZ7 LL FirePensian 2,324,82 84,000 178,225 2,229,957 zw zaz LLwa Cemetery Endowmen Care 1758,279 39,900 1,798,179 TOTAL 82,595,207 y184,278,400 5192,349,311 $74,522,296 TOTAL BUDGET 266,871,607 266,871,fi07 Ordinance No. 662'I November 15, 2016 Page 5 of 5ORD.B Page 72 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6624 Date: November 16, 2016 Department: City Attorney Attachments: Ordinance No. 6624 Budget Impact: $0 Administrative Recommendation: City Council adopt Ordinance No. 6624. Background Summary: During review of existing franchise agreements, the City determined that the Lakehaven Utility District franchise agreement was adopted by resolution instead of ordinance. Because resolutions are adopted with a less formalized procedure, there is no evidence that the Lakehaven Utility District franchise agreement was adopted in conformity with statutory procedural requirements that typically accompany an ordinance. Ratification of the Resolution Number 3650 by Ordinance will ensure compliance with the statutory procedural requirements for franchise agreements, including publication of notice, and a public hearing. The terms of the agreement will remain unchanged. Reviewed by Council Committees: Councilmember: Staff:Heid Meeting Date:November 21, 2016 Item Number:ORD.C AUBURN * MORE THAN YOU IMAGINEDORD.C Page 73 of 186 ORDINANCE N0. 6 6 2 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RATIFYING THE FRANCHISE AGREEMENT WITH LAKEHAVEN UTILITY DISTRICT ADOPTED BY RESOLUTION NO. 3650 WHEREAS, the Lakehaven Utility District currently owns, operates, and maintains a water system within the City of Aubum's public rights-of-way within the City of Auburn corporate boundary; and WHEREAS, in 2Q04, 4he City and Lakehaven Utility Dis4rict negotiated a franchise agreement that was approved by the City Council through Resolution Number 3650; and WHEREAS, Revised Code of Washington 35A.47.040 includes certain procedural requirements not typically followed when adopting a resolution; and WHEREAS, the City wishes to ensure fhat the benefits and obligations inured to Lakehaven Utility District through Resolution Number 3650 are not invalidated by any procedural deficiency; and WHEREAS, ratification of Resolution Number 3650 by this Ordinance will resolve any omission in the procedural requirements of RCW 35A:47.040 and conform to the City's standard practice of franchise adoption by ordinance; and WHEREAS, following proper notice, the City Council held a public hearing on ratification of Resolution Number 3650; at which time interested citizens were heard in a full public proceeding affording opportunity for comment by any and all persons desiring to be heard; and Ordinance No. 6624 October 10, 2016 Page 1 of 3ORD.C Page 74 of 186 WHEREAS, from information presented at such public hearing, and from facts and circumstances developed or discovered through independent stLdy and inves4igation, the City Council now deems it appropriate and in the best interest of the City and its inhabitants that Resolution Number 3650 be ratified. NOV11, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Grant of Franchise The provisions of Resolution Number 3650, attached hereto as Exhibit A and incorporated herein by this reference, are hereby adopted as if fully set forth herein. Section 2. Imulementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of 4his legislation. Section 3. Severabilitv. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumsfance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons orcircumstances. Section 4. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: APPROVED: Ordinance No. 6624 October 10, 2016 Page 2 of 3ORD.C Page 75 of 186 CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk AP VED TO F RM: rnel B. ' , City ttomey Published: Ordinance No. 6824 October 10, 2016 Page 3 of 3ORD.C Page 76 of 186 RESOLUTION NO,3 6 5 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A FRANCHISE AGREEMENT BETWEEN THE LAICEHAVEN UTILITY DISTRICT AND THE CITY OF AUBURN, ALLOWING THE LAKEHAVEN UTILITY DISTRICT TO CONNECT, INSTALL, OPERATE, MAINTAIN AND REPAIR WATER SYSTEM, FACILI`fIES, AND APPURTENANCES IN, OVER, ALONG, ACROSS AND UNDER THE FRANCHISE AREA FOR THE PURPOSE OF PROVIDING WATER SERVICE WHEREAS, the Lakehaven Utility District currently owns, operates, and maintains a water system within Auburn's pubiic right of way located in the franchise area; and WHEREAS, the Lakehaven Utility Disf ict is seeking a new comprehensive franchise with Auburn for public water facilities installed within Aubum's curcent and future public right of way; and WHEREAS, in order to maintain control over the use of City of Auburn right-of-ways by utilities operating within the City of Auburn, it is appropriate to enter into franchise agreemerrts with such utilities; and WHEREAS, Lakehaven Utility District is such a utility, and has negotiated fhis franchise agreement with the City of Auburn acceptable to both i parties; and ResaluNon N0.3650 January 20,2004 Paga 1 ORD.C Page 77 of 186 WHEREAS, the City of Aubum has detertnined that it is in the best interests of the public to grant the Lakehaven Utility District a water franchise on the terms and conditions set for in this Agreement. NOW, THEREFORE, THE CITY COUNCII OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The Mayor of the City of Aubum is herewith authorized to execute a Franchise Agreement between the Lakehaven Utility District and the City of Aubum in substantial conformity with the Agreement attached hereto, marked as Exhibit "A" and incorporated herein by this reference. Seetlon 2. The Mayor is hereby aufhorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Sectton 3. This resolution shall be in full force and effect upon I passage and signatures hereon. Resolution No.3850 Januay20,20D4 Page 2 ORD.C Page 78 of 186 J DATED 4hls day of, ' e/Ua , 20o4. CITY OF AUBURN PETER B, LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk APPR D ?O FORM: Daniel B. He i City Attomey Resolution No 3680 Jsrivary 2,2004 Pege 3 ORD.C Page 79 of 186 20 41i 800i724 Retum Address: K N v;i° AubumCityClerk City of Aubum 25 West Main St. Auburn, WA 98001 RECORDER'S COVER SHEET Document Title(s) (or transactions contained therein): Franchise Agreement (Resolution No. 3650)F j Vn,-t Reference Number(s) of Documents assigned or released: Z— QAdditional refarence#'s on age of document Grantor(s)IBorrower(s) (Last name first, then firsf name and initials) Auburn, City of Grantee/Assignee/Beneficiary: (Last name first);,,;,,, 1. Lakehave.n Utility District Legal Description (abbreviatedc i.e. lot, block, plat or section, township, range) PER RCW 39.34 Addltional legel is on.page oT document. Assessor's Property Tax Parcel/Account Number N/A Asseasor Tex#not et assigned ORD.C Page 80 of 186 EXHIBIT "A" CITY OF AUBURN, WASHINGTON WATER FRANCHI$E AGREEMENT WITH THE LAKEHAVEN UTILITY DISTRICT THIS F NCHISE AGREEMENT, made and entered into this Z3r day of 2004,by and between the CIIY OF AUBURN, Washington and the KEHAVEN UTILITY DISTRICT: WITNESSETH: WHEREAS, the Lakehaven Utility District currently owns,operates, and maiMains a water system wifhin Auburn's public right-of-way located in the franchise area;and WHEREAS the Lakehaven Utility District is seeking to establish a comprehensive franchise with the City of Auburn for water sysfe.m Iines within Auburn's cu renl and future publicright-of-way; and WHEREAS, in order to maintain control over the use of City of Auburn rights-of-way by utifities operating within the City of Aubum, it is appropriate to enter into franchise agreements with such ufilities; and WHEREAS, Lakehaven Utility Districtis such a utility, and has negotiated this franchise agreement with the City of Auburn acceptable to both parties; and WHEREAS, the City of Aubum has determined thatit is in the best interests of the public to grant the Lakehayen Utility District a franchise on the tertns and conditions setfiorth in this franchise agreement. NOW, THEREFORE THE CITY OF AUBURN AND THE LAKEHAVEN UTILITY DISTRICT AGf2EE AS FOLLOWS; SECTION 1 DEFINITIONS Where used in this franchise agreement ("Franchise"), the following definitions shall apply: 1.1 Franchisee"means the Lakehaven Utility District, a Washington municipal corporation, and its respective successors and assigns. 1.2 City" means fhe City of Aubum, a Washington municipal corporation. 1.3 Franchise Area" means ail of the public roads, streets, avenues; alleys, highways, and other rights-of-way of the City as now laid out, platted, dedicated or improved; and any and all public City roads,streefs,avenues,alleys, highways, and other rights-of-way 4hat may hereafter be laid out, platted, dedicated or improved within the area in which the City has ju isdiction, as described in Attachment 1 and as depicted in Exhibit'A',Aubum Resalutbn No. 3850 Y Aubum-LakehevenWsterFrenchise Pege i ot 12 ORD.C Page 81 of 186 Attachment 2, both attachments attached hereto,which is by this reference incrorporated as if fully set forth herein; provided, that the Franchise Area shall not include or convey any right to the Franchisee to install facfli4ies on, or to otherwise use, City owned o le.ased properties; and provided that the terms of this franchise (i.e., permitting and enforcement) shall not apply to those public roads, streets, avenues, alleys, highways, and other rights-of-way that may hereafter be laid out, platted, dedicated or improved within the area as described in Attachment 1 and depicted in Attachment 2 until such time that the City has assumed jurisdiction thereof. 1.4 Facilities" means the Franchisee's water system, lines, mains, pump stations, appurtenances, and all other necessary w convenient appurtenances for the purpose of providing water service. SECTION 2 FRANCHISE GRANT Subject to the terms and conditions set forth in this Franchise, the City grants to the Franchisee the right to construct, own and maintain its Facilities, including, but not limited to,water pipelines, pump stations, and appurtenances within the City's public right-of-way and the Franchisee's water service area. In,exercising authority to construct and install its Facilities and to excavate trenches in City roads for the purposes of constructing, installing, operating, maintaining, removing, and replacing ks Facllities, and making connections between the same to the dwellings and other buildings of the consumers,the Franchisee shall be governed by and conform to tfie general rules adopted by the Public Works Department of the City, and the Franchisee, at no expense to the City, shall complete all work and shall replace and restore 4he City roads to fhe condition of the City roads exisfing immediately prior to such disturbance; PROVIDED, HOWEVER, that no such wo k shall be done pridr to the obtaining of a permit therefor issued by the City's Public Works Director (hereinafter "Di ector"), which permit shall set forth conditions pertaining to the work to be do.ne and specifications for the restoration of the roads to the same condiUon as they were immediately prior to such work. If 4he Franchisee d,oes not repair the City roads to the sa#isfaction of the Director,the City may, at its sole discretion, repair such City roads, or cause fhem to be repaired, and the Franchisee hereby agrees to reimburse the City for the cost of such work, including reasonable overhead costs. SECTION 3 FRANCHISE TERM This Franchise shall take full force and effect five calendar days after being approv.ed by the City, anil shall be valid fora period of 25 years, expiring in 2029;provided, that this Franchise shall not take effect and the Franchisee shall have no rights under this Franchise unless the Franchisee files awritten acceptance of this Franchise with the City pursuant to Sec4ion 4 of this Franchise. SECTION 4 ACCEPTANCE BY FRANCHISEE OF TERMS AND CONDITIONS The full acceptance of this Franchise and all of its terms and conditions shall be filed wfth the City Clerk within forty-five (45) days from the date of the resolution approving this Franchise by the Franchisee's duly elected Board of Commissioners. Full acceptance of this Franchise is a condition precedent to its taking effect, and unless this Franchise 'is ExhIEH`A';Aubum Reeolutbn No. 3650 Aubum—Lakehavan Water Frenchiae Pape 2 of 12 ORD.C Page 82 of 186 accepted within the time specified, this grant w'ill be null and void and have no force or effect. SECTION 5 NON-EXCLUSIVE FRANCHISE This Franchise is not exclusive: It does not prohibit the City from granfingfranchises for other public or private u4'ilities in, over, along, across, and under any City property, including the Franchise Area. This Franchi§e does not prevent or prohibit the City from constructing, altering, maintaining or using any of the Franchise Area. The City reteins full powerto make ali changes, relocations;repair, maintenance or other work to or in the Franchise A[ea as the City deems fit. SECTION 6 JURISDICTION This Franchise is intend.ed to convey limited rights and interest only as to fhose roads and rights-of-way in which the City has en actual interest within the Franchise Area. It is not a warcanty of title or of interest in City road rights-of=way. None of fhe rights grarrted to theFranchiseeshallaffectthejurisdictionoftheCityoyerCityroadrights-of-udayorthe Cit s powerto perform work upon its roadways,righis-of-way or appurtenant drainage facilities . including by constructing, altering, renewing, paving, widening, grading, blasting or excavating. The parties shall comply with all applicable rules and regulations pertaining to them in connection with the matters coyered herein. SECTION 7 REGULATION OF USE AWD CONTROL This Franchise does not deprive the City of any powers, rights,or privileges it now has or may later acq uire in the future to regulate the use of and to confrol the Gity road rights-of- way covered by this Franchise. The City reserves the right and power at all times to exercise its police powers with respect to the time, manne and location of fhe placement of the Franchisee's Facilities. SECTION 8 EMINENT DOMAIN This Franchise and the limited rights and interests granted by this Franchise are subject to fhe exercise of eminent domain. In the event of an exercise of eminent do,main by the City,the balue to be attributed to ap the rights and interests granted under this Franchise shall not exceed the actual amount 4he Franchisee paid to the City in obtaining this Franchise. SECTION 8 VACATION If'at any time the City vacates any City rights-of-way covered by this Franchise, the City will not be held liable far any damages or foss to the Franchisee by reason of such vacation. The City may, after giving thi.rty (30) days written notice to the Franchisee, terminate this Franchise with respecf to any City road or rights-of-way vacated. However, should Franchisee no4ify the City;hat an easement is required for existing or proposed facilities within the proPosed vacation are.a, the City shall withhold approval of such vacation until the Franchisee has notified the City that the nece.ssary easement(s) have been secured, or provisions otherwise made to maintain the viability and use of existing Facilities. ExMlbtt'A',Aubum ResolWon No. 3650 Y Aubuin-Lakehaven WeOer Frenehbe Pege 3 of 72 ORD.C Page 83 of 186 SECTION 10 ENFORCEMENT The City's failure to enforce any provision of this Franchise does not consfitute a waiver of its right to enforce that provision or any other provision of this Franchise. SECTION 11 INDEMNITY AND HOLD HARMLESS 11.1 The Franchisee shall defend, i demnify and hold harmless the Ci4y, its appointed and elected officials, and its employees;and agents from and against liability for sll claims, actions, injuries, demands, lia6ilities, losses, costs, damages and judgments, including costs of defense fhereof, (collectiVely referred to as"damages")for injury to persons, death or property damage caused by,arising out of, or incidental to theFranchisee's exercise of the rights a.nd. priqileges granted by this Franchise, except for damages caused by or arising out of the City's sole negligence. In fhe eyent that any such claim or demand for damages is presented to or filed with the City, or if any suit or action is initiated against the City based on such claims or demands for damages, the City shall promptly notify the Franchisee of the claim, demand, suit or action and the Franchisee shall have the right, at its elecEion and its sole cost and expense;to settle and compromise such claim, demand, suit or action, or defend the same at the Franchisee's sole cost and expense. 11:2 If it is determined that RCW 4.24.115 applies to this Franchise, the Franchisee agrees to defend, hold harrnless and indemnify the City to the maximum extent permitted under that statute, and specifically f.or the Franchisee's negligenoe concurrent with that of the City to the fufl extent of the Franchisee's negligence. SECTION 12 INSURANCE 12.1 The Franchisee shall keep a policy of insurance in force with a minimum limit of five million dollars ($5,000,000.00). Verification of insurance coverage is a condition precedent to the effectiveriess of this Franchise. 12.2 The insurance shall be maintained in full force and effect at the Franchisee's sole ezpense throughout the term of the Franchise, and, should such insurance be terminated, this Frenchise shall terminate as of the date of the terminafion of insurance coverage. 12.3 The coverage provided by the Franchisee's insurance policies shall be primary to any insurance maintained by.the City, except as to losses or damages attributable to the sole negligence af the City. Any insurance mai,ntained by the Gity that might relate to this Franchise shall be in exbess to the Franchisee's insurance and shall not contribute with or to it. The City has no obligation to report occunences to tfie insurance companies unless a claim is filed wifh the City's Gity Council; and the City has no obligations to pay the Franchisee's premiums. 12.4 The Franchisee shall be solely and completely responsible to pedorm all work[elated to this Franchise in compliancewith all applirable federal, state;county and city statutes, rules, regulations, o dinances, orders and cocJes. The Franchisee's attention is directed to the requirements ofthe Washington Industrial Safety and Health Act, Chapter49,17 RCW. The Franchisee shall be solely and completely responsiblefor Exhiblt'A',Aubum Re cl6Uon No. 3850 Aubum—Lakehaven WaMr FranchUe Page 4 of 12 ORD.C Page 84 of 186 safety and safety conditions on its job sites and for its work within the Franchise Area, including the safety of all persons and properiy during pe.rfortnance of any works therein. The services of the City or City's consultant personnel in conducting construction review of the Franchisee's work relating to fhe Franchise is not intended to include review of the adepuacy of the Franchisee's work methods, equipment, scaffolding, or trenching, or safety measu es in, on or near such Franchise Area or Job site. The Franchisee shall provide safe access for the City and ifs inspectors lo adequately inspect the work and its conformance with applicable statutes,ordinances, rules, regulations, and the Franchise. SECTlON 13 INSTALLATION, REPAIR, REMOVAL OR RELOCATION 13.1 The Franchisee shall, at no expense to the City, expeditiously repair all exisfing Facilities that it owns within the Franchise Area, including any damage caused directij+or indirectly by its Facilities, all appurtenant Faalities and service lines connecting its system to users, if the City requires such repair forany reasonable purpose. 13.2 The Franchisee shall,at no expense to the Cit i, adjust, remove or reloca4e existing Facilities within the Franchise Area, including all appurtenant Facilities and service lines connecting Rs system to users, if the City detertnines such adjustment, removal or relocation is reasonably necessary to allow for an improvement or alteradon planned bythe City. The City shall give the Franchisee written notice of such requirement as soon as practicable. The written notice shall include all available information, such as plans and specifications, as is reasonably necessary for the Franchisee to plan for such adjustment, removal orrelocation. 13.3 Franchisee's Facilities shall be constructed, installed, maintained and repaired within#he Franchise Area so as to provide safety of persons and property, and not interfere with the free passage of traffic, all in accordance with the laws of the State of Washington, and the ordinances, resolutions, rules and regulations of the City. 13.4 For projects that are a part of the City's capftal improvement program, in addition to any other notice g'roen to the Franchisee, the City shall provide a copy of the capital improVement plan and six (6) year transportation improvement plan when requested. Further, the City shall provide a horizontal plan and ve tical profile of the roadway and drainage facitities within it, both existing and as proposed by the City, and fhe proposed construction schedule. The initial design informatio.n shall be given at least one hundred and eighty(1 SO)days before construction is scheduled to begin,except in cases of urgent construction or emergencies. The Franchisee shall respond to this notice, and to any later notices of revised designs, within twenty(20) days of the date of the notice, by providing to fhe City the Franchisee's bestavailable information as to the location of al the Franchisee's Facilities, including all appurtenant Facilities and service lines connecting its system to users, and all Facilities that it has abanddned, within the area proposed for the project. 13.5 The City shall offer th8 Franchisee Ehe opportunity to participate in the preparation of bid documents for the selection of a contractor to perForm the public worics project as well as all required adjustments, removals or relocations of the Franchisee's Facilities. The City shall have sole authority to choose the contractor fo perfortn such ExhibR'A';Aubum Reaolutian No. 3850 r Aubum—Lakehaven Weter Frenchbe Paga 5 0(12 ORD.C Page 85 of 186 woric. Such bid documents shall provide for an appropriate cost allocation bebaeen the parties. ,In addition to the Franchisee's alloca4ion of contractor costs,the ranchisee s.hali reimburse the City for all c.o.sts, to include but not be limited to legal, engineering, inspections, administration andJor soils testi.ng, related to the Franchisee's woiic and reasonably incurred by the City in the administ ation of such joint construction contracts.Such costs shall include the direct salary cest of the time of City professional and technical personnel, including the City's consultants,sper t productively engaged in such inro lc, plus averhead costs at the standard rate charged by the City on other similarprojects. The specific terms of the joint participation on any public work shall be as set forth in a written agreement beiween the parties. 13.6 It is understood that emergency situations may arise that could threaten public health and/or continued operation of the Franchisee's utility system and the Franchisee may be unable to notify the City in the manner prescribed in Secfion 14 of this Franchise. In such a situation fhe Franchisee shall immediately cqrrect the hazardous situation and continue to use best efforts to contaci the City staff. The Emergency Pho,ne Number for the City of Aubum is (253} 931-3048, and that for the Lakehaven Utility District is(253)941-1516. Qialing 911 is advised for emergency situafions that may result in imminent threats to life andlor property. SECTION 14 RE4UIREMENT OF CONSTRUCTION PERMITS 14.1 The Franchisee has the right, privilege and authority to enter the City road rights-of-way for the purpose of constructing,installing, operating, maintaining, replacing or repairing its Facilities on the condition that it obtains construction, ezcavation, andright-of-way use permits issued by the City. Any work pertormed,whether by Franchisee, its conVactors, orthird parties, shall include necessary paving,patching,grading and any other reasonably necessary repair or restoration fo the City rights-of-way. Ali work shall be done to the City's satisfaction. 14.2 All equipment, pipelines and appurtenances which are used in the construction, installation, operation,maintenance or repair of the Franchisee's Facilities and which are Iocated within the City road rights-of-way and owned by the Franchisee shall be considered to be part of 4he Franchisee's system and shall be the responsibility of the Franchisee. All permits for the construction, ins.tallation;operation, maintenance or repair of the Franchisee`s system shall be applied for and given in the name of the Franchisee, who will be responsible for all work done under the pertnit. The Franchisee remains responsible whether the worfc is performed by 4he Franchisee, its conVactors, or by third parties. 14.3 When required by the City's Public Works director, the Franchisee shallpostabondtotheCityintheamountsufficientforanyroadrepairorrestoration. The amount of the bond shall be set by the City and must be filed with the City before a permit will be issued. Exhlbtt'A',Aubum ReaoluGon No. 9650_ AUDum—LekehavenWaterFrenchise Pega 6 ot 72 ORD.C Page 86 of 186 SECTION 15 PERFORMANCE OF WORK 15.1 Any work performed by the Franchisee in the Franchise Area shall. conform to all City o dinances and requirements including,but not limited to,Auburn City Code and the City's Design and Construction Standards in force dirhen the work is pertormed. Afl traffic control shall conform tofhe current edition of the Manual of Uniform Traffic.ConfroLDevices in force when the work is pertormed. 15.2 If work perFormed under this Franchise makes it necessary to turn off or diminish water pressure or potential flow to ariy fire hydrant, the Franchisee shall notify the City's Fire Department by telephone and by written notice, that water pressure orfire flow conditions have been affected. Except in the case of an emergency,the notice shall be provided at least 48 hours prior to the water pressure or potential flow being suspended or diminished. If more than one fire hytlrant will be affected, the Frenchisee shall provide a map of fhe affected area to the Fire pepartment. Out-of-service fire hydrants must be identified as not operational by covering with a properly secured burlap or plastic bag. Fire hydrants should, be returned to full service as soon as rea§onably possible or no longer than iwo working days from the da4e service was suspended or diminished. The Franchisee shall notiTy the City's Fire Department when the hydrant(s) islare retumed to full service. SECTION 16 RESTORATION OF CITY RIGHTS-OF-WAY After pertorming work on, untler or adjacentto City road rights-of-way,the Franchisee is responsible for and shall leave all City road rights-of-wayin the condition of the City road rights-of-way existing immediately prior to such disturbance. If the Francliisee, its cantractors, or third parties working under Permit should fa'il to diligently restore City road righfs-of-way to the satisfactlon of the City, the City may make such repairs or restorations as are necessary to return the City road righfs-of-way to a condition reasonably comparable to the condition of the City raad rights-of-way existing immediately prior to such disturbance. Upon presentation of an itemized invoice for repairs oF restorations, including all applicable aosts, both direct and indirect,to include, but not be limited to,the cost of labor, tools, materials and equipment, the Franchisee shallpay the inVbice Vuithin sixty-five (65) days of its receipt and approval. SECTION 17 INFORMATION ON LOCATION OF FACILITIES The Franchisee shall proVide 4he City wi4h al!information requested by 4he City regarding the location of the Franchisee's cu rent Facilities, including,but not limited to,copies of all record drawings for such Facilities. If the Franchisee performs any work to insfall,repair, reconstruct, or replace Fac.ilities in the Franchise Area after this Franchise's effective date, the Franchisee shall provide the C'ity with all information requested by the Ci4y regarding the location of those Facilities, including, but not limited to, copies of record drawings. Ezhlbft'A',Aubum Retalutbn No. 3650 Aubum—Lakehaven Weter Franchlse Paga 7 0112 ORD.C Page 87 of 186 SECTION 18 COORDINATION OF WORK IN FRANCHISE AREA To facilitate the coordination of work in City rights-of-way, ifieither the Franchisee or the Cityplans to make excavations in the Franchise Area,the party planning such excavation shall provide written notice to the other of the planned excavation, affording the other pa.rty the opportunity to share in the excavation;provided,ttiat(1)such joint use shall not unreasonably delay the work of the party causing the excavation to be made, (2y such joint use shallbearranged and accomplished on terms and condiUons satisfactaryto both parties, and (3) either party may deny such request for safety reasons. SECTION 19 BLASTING R.EQUIREMENTS The Franchisee's right to construct, install, operate, maintain and repair Facilfties does not preclude the City,its agents or contractors from blasting, grading,or doing other road work contiguous to the Franohisee's Facilities. When practical, the City shall give the Franchisee forty-eight {48) hours notice ofblasting or excavating. SECTION 20 SURVEY MARKERS AND MONUMENTS Before any work is performed under this Franchise,the Franchisee shall establish two ormorereferencemarkstoallmonurimentsandmarkersofeverynafurerelatingto su.bdivisions, plats, rights-of-way, and all other surveys. The reference points shall be located so tha4 they will not be disturbed during any of Franchisee's operations underthis Franchise. The method of referencing monuments or other markers or points shall be approved by fhe Giiy before placement. The replacement of all markers or monuments disturbed during any construotion of the Franchisee shall be made as promptly as conditions pertnit. The cost of monuments or markers lost, destroyed, or disturbed and the expense orreplacement with approved markers or monuments shall be bome by the Franchisee. SECTION 21 RESERVATION OF RIGHTS 21.1 The City reserves the right to impose, to the extent authorized by law, a utilit r tax on the Franchisee and/o r to charge the Franchisee a reasonable fee for services provided or rights granted under this Franchise. 21.2 The Franchisee ag ees tHat it shall be subject to all authority now or later possessed tiy the Gity or any ather goveming body hading competen4 jurisdiction to fix just, reasonable and compensatory rates for services under this Franchise. 21.3 The City reserves the right, upon th'irty {30) days written, notice to the Franchisee, to amend or modify the provisions or conditions of this Franchise to nfa.rtn to any state, county, federal, or City stafute, o[dinance, rule or regulation. The City maytertninatethisFranchiseuponthi.Ry (30) days written notice to the Franchisee ff the Franchisee fails or refuses to comply with such amendment or modification. Exhibtt`A",Aubum Resolution N0. 365a Autium—Wkehaven Weter Fre hise Psge 8 M 12 ORD.C Page 88 of 186 SECTION 22 A8SIGNMENT The Franchisee shall not have the right to assign this Franchise without fhe written consent of the Ciry. No assignment shall be effective unless an acceptance by 4he assignee of all rights, conditions,terms, provisions and responsibilities contained within the Franchise,as w"ell as surety bonds which the City deems necessary to be posted,are received as allowed by law. The City's approval of the assignment may be made subject to the assignee's acceptance of new or modified terms of the Franchise. SECTION 23 PENALTY FOR VIOIATION OF CONDITIONS If the Franchisee fails to comply with any materiai term, condition or responsibility under this Franchise,the City may provide the Franchisee with written notice of the City's intent to revoKe the Franchise ifthe Franchisee's failure is not cured within thlrty (30) days of the date of the notice, During the ihirty (3U) days following the date of the notice, the Franchisee shall have the opportunity tb remedy the failure to comply. A public hearing shall be scheduled before 4he Auburn City Council at least thirty (30) days following the notification on the issue of the revoca6on. If at #h.e hearing, the City Council finds tha4 grounds exist to revoke the Franchise unde this paragraph and that the revocation is in the public interest, the City Council may by resolution revoke the Franchise. The revocation shall be effective ninety (9Q) days after Ehe public hearing. SECTION 24 EXPIRATION AND RENEWAL 24.1 Ifthe Franchisee requests a renewal ofthis Franchise priorto itsexpiration date, which renewal shall be granted, on terms reasonable fo the parties, u.nless the City can demonstrate;in good faith,that such renewal would be contrary to its operation of4he right of way, the City may, at the C,ity's sole discretion, extend the term of this FranChise forup to one year beyond the expiration date to allow for processing of the renewal. If the City elects to extend the term of this Franchise,written notice of the extension shall be provided to the Franchisee prior to the Franchise expiration date. 24.2 If the Franchisee has not requested a renewa!of this Franchise prior to its expiration date,the City has the right, upon thirty{30)day's prior nofice to the Franchisee; to remove or relocate any of the Franchisee's Facilities as is reasonably necessary for 4he public's heaRh,welfare or safety,or for the construction,altera4ion,or improyement of the Franchise Area,orfor the construction or installation of lines orfacilities of otherfrenchise holders. The Franchisee shall be liable for costs incurred in any removal or(elocation of 4he Franchisee's Facilities under this section. 24:3 Upon the expiration of this Franchise, the Franchisee shall continue to be responsible for 4he operation and maintenance ofths Franchisee's existing facilities in the Franchise Area, but shall not have the rightto provide additional services. This Section and Sections 11, 13, 14, 15, 16, 18, and 20 ofthis Franchise shall continue in force until such time as the Franchisee's Facilities are abandoned lo the City's satisfaction. hwn•n•,Aubum ResoMion No. 3650 Aubum-LekehavenWaterFrenchka Pa9e 9 0112 ORD.C Page 89 of 186 SECTION 25 COMPLIANCE WITH LAWS The Franchisee shall confarm to all applicable federal, state and local laws and regula4ions including,but not limited to,the State Envirbnmental PolicyAct and the City's Environmental Standards and Ordinances. SECTION 26 NON-DISCRIMINATION CLAUSE In all hiring or employment made possible or resulting from this Franchise,there shap benodiscriminationagainstanyemployeeorapplicantforemploymentbecauseofsex, sexual orientatian,age;race, color, national origin, marital status or the presence of any se.nsory, mental, or physical handicap, unless based upan a bona fide occupaGonqualification. No person shail be denied orsubjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Franchise on fhe grounds of sex, sexual orientation, race, color, national origin, age, except minimum age and retirement provisions, marita{status, or the presence of any sensory, mental or physical handicap. SECTION 2T NOTICE All notices between the two agencies hereunder may be delivered or mailed. If mailed, they shall be sent to the following respective addresses` City of Auburn: Lakehaven Utility Distri t: City Engineer GeneralBManager 25 VVesYMain SVeet 31627 1 Ave South Aubum, WA 98001-4998 PO Box 4249 Tel: 253-931-3010 Federal VVay, WA 98063-4249 Tel: 253-941-1518 or to such other representative addresses as either party may here.after from time to timedesignateinwriting. Ap notices and payments mailedby regular post(inclutling first dass)shaB be deemed to have been given on the second business day following the date of mailing, if properiy mailed and addressed. Notices and payinents sent by certified orregisteredmailshallbedeemedtohavebeengivenon4hedaynextfollowingthedateof mailing, if properly mailed and addressed. For all types of mail,the postmark affxed by theUnitedStatesPostalServiceshallbeconclusiveevidenceofthedateofma'iling. If an emergency situation develops, it is recommended that the City or the Franchisee call 911 to soticit an emergency response. SECTION 28 ATTORNEYS' FEES If either party shall be required fo bring any action to enforce any provision of thisFranchise,or shall be required to defend any action brought by the other partywith respect to this Franchise, and in the further event that one party shall su.bstantially prevail in such action, the losing party shall, in addition to all other peyments required therein, pay all of the prevailing party's reasonable costs in connecfion with such action, including such sumsasthecourtorcourtsmayadjudgereasonableasattomey's fees in trial court and in appellate courts. ExMblt'A'.Aubum Reeolutbn No. 3860 r ' Aubum—LakeAaven Water Franc ise Pape 10 of 12 ORD.C Page 90 of 186 SECTION 29 SEVERANCE If any term, provis.ion, condition or portion of this Franchise is held to be invalid, such invalidity shall not afiect the validity of fhe remaining portions of this Franchise which shall continue in full force and effect, unless the dominant purp.ose of the Franchise would be prevented or 4he public interest would no longer be served, as detertnined by the City. SE6TION 30 EFFECTIVE DATE THe resolution approving the Franchise, having been introduced at least five days prior to its date of passageand su6mitted to the city attorney,and being approved by atleast a majority o.f the entire city council at a regufar city council meeting, shall take effect and be in force five calenclar days after its passage and approval by both parties to this Franchise. SECTION 31 EXISTING UTILITIES This Franchise shall govern existing and future water system facilities currently owned, operated and maintained by Lakehaven Ut'ility District within the City of Aubum. SECTION 32 DISPUTE RESOLUTION In the event that a dispute arises wifh regard to the terms of this Franchise Agreement, either party may request that the dispute be submitted to non-binding mediation o.r arbitration prior to court action. Such requestfornon-binding mediation or arbffretion shall be made in writing and mailed by first class, U.S. Mail to the other party. The me.diator or arbitrator shali be chosen by agre.ement of the parties..Either party may refuse to submit to fhe dispute resolution process. Refusal to engage in the dispute resolution process shall not prejudice the refusing party in any way. Exhibk'A',Aubum Rewlutlon No. 3850 r`- q'iipum—L6kE riln Wetlt Ftar ehWe Pege 71 of 12 ORD.C Page 91 of 186 IN WITNESS WHEREOF the parties hereto haVe executed this Franchise Agreement as of the day and year first above written. LAKEHAVEN UTILITY DISTRICT Appraved by Resolution No, zeol o0 of the kehayen Utility District, Federal Way, Washington, at its regular meeting held on fh day of .c uawi , 2004. By: Donald T. Perry, Ge al Manager Lakehaven Utility District Approved as to formn/7 I {/' Steven H. Pritchett, General Counsel Lake.haven Utility District CITY OF AUBURN By: Peter B. Lewis, Mayor City ofAuburn Att st anielle Daskam, City Clerk A ed e r : iel B. ei ' Attor ey AUBURN RESOLUTION NO: 365 LAKEHAVEN REFERENCE NUMBER: a'O b Enhibit"A',Auburn ResolutionNo. 3650 Auburn—Lakehaven Waler Fronchise Pege 72 0112 ORD.C Page 92 of 186 Attachment 1 Auburn Ordinance No. 3650 DescripUon of Lakehaven Utility DistriaYs Water Franchise Area BEGINNING AT THE SOUTHWEST CORNER OF SECTION 23, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; THENCE NORTH ALONG THE WEST LINE OF SAID SECTION 23 TO THE NORTHWEST CORNER OF SAID SECTION 23 AND THE SOUTHEAST CORNER OF SECTION 15, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; THENCE WESTERLY ALONG THE SOUTH LINE OF SAID SECTION 15 TO THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 15; THENCE NORTHERLY A ONG TNE NORTH-SOUTH CENTERLINE OF SAID SECTION 15 TO TH.E SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SECTION 10, TOWNSHIP 21 NORTH, RANGE 4 EA3T, W.M.; THENGE NORTHERLY ALONG THE NORTH-SOUTH CENTERLINE OF SAID SECTION 10 TO THE SOUTHWEST CORNER OF THE S UTHERST QUARTER OF BECTION 3, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; THENGE NORTHERLY ALONG THE NORTH-SOUTH CENTERLINE OF SAID SECTION 3 TO THE SOUTHWEST CORNER OF THE $OUTHEAST QUARTER OF SECTION 34, TOWNSHIP 22 NORTH, RANGE 4 FAST, W.M.; THENCE NORTHERLY ALONG THE WEST LINE OF THE SOUTHEAST QUARTfR OF SAID SECTION 34 TO THE NORTHWEST CORNER OF SAID SOUTHEAST QUARTER OF SAID SECTION 34; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID SOUTHEAST QUARTER OF SAID SECTION 34 TO THE NORTHWEST CORNER OF THE SOUTHWEST QUAftTER OF SEGTION 35, TOWNSHIP 22 NORTH, RP;NGE 4 EAST, W.M.; THENCE EASTERLY ALONG THE EAST-WEST CENTERLINE OF SAID SEGTION 35 TO THE NORTHWEST CORNER QF THE SOUTHWEST QUARTER OF . SECTION 36, TOWNSHIP 22 NORTH, RANGE 4 EAST, W.IN.; THENCE EASTERLY ALONG THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 38 TO THE NORTHEAST CORNER OF SAID SOUTHWEST QUARTER OF SAID SECTION 36; THENCE SOUTHERLY ALONG THE NORTH-SOUTH CENTERLINE OF SAID SECTION 36 TO THE NORTHWEST CORNER OF THE NORTHEAST QUARTEI2 OF SECTION 1, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; AttachmeM 1,Aubum OMinence No.3650 Paga i o/2 ORD.C Page 93 of 186 THENCE SOUTHERIY ALONG THE NORTHSOUTH CENTERLINE OF SAID SECTION 1 TO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF SAIDSECTION 1; THENCE WESTERLY ALONG THE SOUTH LINE OF SAID SECTION 1 TO THE NORTHEAST CORNER OF SECTION 11, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID SECTION 11 TO THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF SECTION 14, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; THENCE SOUTHERLY ALONG.THE EAST LINE OF SAID SECTION 14 TO THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF SECTION 23, TOWNSHIP 21 NORTH, RANGE 4 EAST, W.M.; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID SECTION 23 TO THE SOUTHEAST CORNER OF SAID SECTION 23; THENCE WESTERLY ALONG THE SOUTH LINE OF SAID SECTION 23 TO THE POINT OF BEGINNING. SITUATE IN KING COUNTY, WASHINGTON. AttachmeM 7,AUDum O dinance No.3650 Pape 2 of 2 ORD.C Page 94 of 186 s t l 11 i r J J N!1+1l 1 • ' P rA;i!i',r e ' J I'.: W,i' r t fi1, : n 1 r u,__. r ;: rFYF r+ ,;1 11 II i f-., r li il!liii r 1111117, _ JIi i'I"i1l C= r Q : V i_ 1r , .i s rllll ii , ' IL. 1 11111___ -c I ' J- s ORD.C Page 95 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6628 Date: November 15, 2016 Department: Finance Attachments: Transmittal Memo Ordinance No. 6628 Budget Impact: $0 Administrative Recommendation: City Council to introduce and adopt Ordinance No. 6628, establishing the Property Tax levy for calendar year 2017 Background Summary: Attached is proposed Ordinance No. 6628, establishing the 2017 Property Tax Levy. The 2017 Property Tax Levy is based upon preliminary information from King County as of November 7, 2016 and represents an increase over the 2016 levy of $2,583,723 plus the increase due to new construction of $279,369 and refund levy of $29,860. These numbers are as of November 7, 2016. King County will not finalize the City’s assessed valuation (AV), new construction, and refund levies until December. Therefore the levy is based upon preliminary information as it is scheduled for Council adoption on November 21, 2016. The following table summarizes the 2017 Property Tax levy: Table 1. 2017 Property Tax Levy Calculations 2016 property tax levy $ 18,069,860 Use of banked capacity 2,388,752 0.953% inflation increase 194,971 Estimated new construction 279,369 Estimated refund levy 29,860 Total Estimated property tax levy $ 20,962,812 As of this date the County has preliminarily established the 2017 assessed valuation (including estimated new construction) for the City of Auburn at $9,387,700,988 which is a 6.4% increase over the 2016 level of $8,826,618,865. The total 2017 Property Tax Levy will be distributed to the General Fund to support general governmental operations. Reviewed by Council Committees: AUBURN * MORE THAN YOU IMAGINEDORD.D Page 96 of 186 Councilmember: Staff:Coleman Meeting Date:November 21, 2016 Item Number:ORD.D AUBURN * MORE THAN YOU IMAGINEDORD.D Page 97 of 186 Interoffice Memorandum To: City Council From: Shelley Coleman, Finance Director CC: Nancy Backus, Mayor Date: November 7, 2017 Re: 2017 Property Tax Ordinance No. 6628 Attached is proposed Ordinance No. 6628, establishing the 2017 Property Tax Levy. The 2017 Property Tax Levy is based upon preliminary information from King County and represents an increase over the 2016 levy of $2,583,723, not including new construction and refund levy. The estimated increase on new construction is $279,369. King County will not finalize the City’s assessed valuation (AV) and new construction until December therefore the levy will be based upon preliminary information as it is scheduled for Council adoption on November 16, 2016. The following table summarizes the 2017 Property Tax levy: Table 1. 2017 Property Tax Levy Calculations 2016 property tax levy $ 18,069,860 Use of banked capacity 2,388,752 0.953% inflation increase 194,971 Estimated new construction 279,369 Refund levy 29,860 Estimated Property Tax Levy $ 20,962,812 As of this date the County has preliminarily established the 2017 assessed valuation (including estimated new construction) for the City of Auburn at $9,387,700,988 which is a 6.4% increase over the 2016 level of $8,826,618,865. The total 2017 Property Tax Levy will be distributed to the General Fund to support general governmental operations. Attachments:  1. Ordinance No. 6628 ORD.D Page 98 of 186 ORDINANCE NO. 6 6 2 8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, ESTABLISHING THE LEVY FOR REGULAR PROPERTY TAXES BY THE CITY OF AUBURN FOR COLLECTION IN 2017 FOR GENERAL CITY OPERATIONAL PURPOSES IN THE AMOUNT OF 20,962,812.00 WHEREAS, the City Council of the City of Auburn has met and considered its budget for the calendar year 2017; and WHEREAS, pursuant to RCW 84.55.120 the City Council held public hearings on October 17, 2016, November 7, 2016, and November 21, 2016, after proper notice was given, to consider the City of Auburn's 2017 budget and the regular property tax levy to support it; and WHEREAS, the City Council of the City of Auburn, after public hearing, and after duly considering all relevant evidence and testimony presented, has determined that the City of Auburn requires property tax revenue and any increase of new construction and improvements to property, any increase in the value of state-assessed property, annexations, and any refund levies in order to dischacge the expected expenses and obligations of the City and in its best interest; and NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Regular property taxes for collection in the City of Auburn for the year 2017 are authorized in the amount of$20,962,812.00. Not including Ordinance No. 6628 November 8, 2016 Page 1 of 3 ORD.D Page 99 of 186 the addition of new construction and improvements to property, any increases related to the value of state assessed property, and any refund levies available, the regular property tax levy for 2017 collection represents an inerease from regular property taxes levied for collection in 2016 of $2,583,723 which is a 14.3% increase in revenue from the previous year. Section 2. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the direetives of this legislation. Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of#his ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective Date. This Ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: APPROVED: NANCY BACKUS, MAYOR Ordinance No. 6628 November 8, 2016 Page 2 of 3 ORD.D Page 100 of 186 ATTEST: Danielle E. Daskam, City Clerk APP ED A FOR . aniel B. Heid, ` Attorne PUBLISHED: Ordinance No. 6628 November 8, 2016 Page 3 of 3 ORD.D Page 101 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6629 Date: November 15, 2016 Department: Finance Attachments: Transmittal Memo Ordinance No. 6629 Schedule A - BA#7 Schedule B - BA#7 Budget Impact: $8,459,390 (see attached) Administrative Recommendation: City Council to introduce and adopt Ordinance No. 6629. Background Summary: Ordinance No. 6629 (Budget Amendment #7) represents the seventh and final budget amendment for the 2015-2016 biennium and the fourth budget amendment for 2016. For details, see the attached transmittal memorandum and supporting attachments. Reviewed by Council Committees: Councilmember: Staff:Coleman Meeting Date:November 21, 2016 Item Number:ORD.E AUBURN * MORE THAN YOU IMAGINEDORD.E Page 102 of 186 Interoffice Memorandum To: City Council From: Shelley Coleman, Finance Director CC: Nancy Backus, Mayor Date: November 9, 2016 Re: Ordinance #6629 – 2015-2016 Budget Amendment #7 The City’s biennial 2015-2016 budget was approved by Council as two one-year appropriations. Budget Amendments #1 through #3 amended the budget for calendar year 2015 and Budget Amendments #4 through #6 amended the budget for calendar year 2016. This amendment is the seventh and final budget amendment for the biennium and the fourth budget amendment for calendar year 2016. Proposed amendments to the 2016 budget are as follows: FTE Additions: No new FTEs are authorized under this amendment. Project Funding Requests: Project funding requests included in this budget amendment establish spending authority for new projects or changes in spending authority for existing projects. • Facilities Fund (Fund 505: –$35,000.00) o Increase budget for the Justice Center painting project ($40,000.00). o Reduce budget for Municipal Court carpet upgrades (–$75,000.00). Other Requests: Other requests included in this budget amendment establish spending authority for new items such as contracts for services, receipt of grant revenues, purchase of vehicles and equipment, Innovation and Technology items, etc. • General Fund (Fund 001: –$55,600.00) o Police – $19,400.00 Target Zero Task Force grant from the WA Traffic Safety Commission for patrol overtime. o Human Resources– $75,000.00 reduction in interfund charges for Municipal Court carpet upgrades. • Mitigation Fees Fund (Fund 124: $350,000.00) o Increase budgeted expenditures by $350,000.00 to fund acquisition of a replacement fire engine, offset by $250,000.000 in fire impact fees. • Capital Improvements Fund (Fund 328: $10,000.00) o $10,000.00 4Culture Preservation Special Projects grant for the new Arts & Culture Center. ORD.E Page 103 of 186 • Sewer Utility Fund (Funds 431/461: $3,000,000.00) o Transfer $3,000,000.00 from Sewer Operations to Sewer Capital to provide adequate working capital in that subfund. • Storm Drainage Utility Fund (Funds 432/462: $2,000,000.00) o Transfer $2,000,000.00 from Storm Operations to Storm Capital to provide adequate working capital in that subfund. • Solid Waste Fund (Fund 434: $29,990.00) o $29,990.00 Commercial Food Waste Outreach grant from King County. • Airport Fund (Funds 435/465: $150,000.00) o Transfer $150,000.00 from Airport Operations to Airport Capital to provide adequate working capital in that subfund. • Innovation & Technology Fund (Funds 518/568: $1,500,000.00) o Transfer $1,500,000.00 from IT Operations to IT Capital to provide adequate working capital in that subfund. • Equipment Rental Fund (Funds 550/560: $1,000,000.00) o Transfer $1,000,000.00 from ER&R Operations to ER&R Capital to provide adequate working capital in that subfund. Council approval of proposed Ordinance No. 6629 would amend the 2016 budget as follows: Table 1: 2016 Budget as Amended 2016 Budget as Amended $ 301,802,917.89 Budget Amendment #7 (Ord #6629) 8,459,390.00 Revised Budget as Amended $310,262,307.89 Attachments:  1. Proposed Ordinance #6629 (budget adjustment #7).  2. Summary of proposed 2016 budget adjustments by fund and department (Schedule A).  3. Summary of approved changes to adopted 2016 budget by fund (Schedule B). ORD.E Page 104 of 186 ORDILVANCE NO. 6 6 2 9 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING ORDINANCE NO. 6533, THE 2015-2016 BIENNIAL BUDGET ORDINANCE, AS AMENDED BY ORDINANCE NO. 6558, ORDINANCE NO. 6563, ORDINANCE NO. 6570, ORDINANCE NO. 6571, ORDINANCE NO. 6580, ORDINANCE NO, 6592, AND ORDINANCE NO. 6608, AUTHORIZING AMENDMENT TO THE CITY OF AUBURN 2015-2016 BUDGET AS SET FORTH IN SCHEDULE "A"AND SCHEDULE "B" WHEREAS, the Auburn City Council at its regular meeting of December 1, 2014, adopted Ordinance No. 6533 which adopted the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of April 6, 2015, adopted Ordinance No. 6558 (BA#1) which amended Ordinance No. 6533 which adopted the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of July 6, 2015, adopted Ordinance No: 6563 (BA#2) which amended Ordinance No. 6558 which amended the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of December 7, 2015, adopted Ordinance No. 6570 (BA#3) which amended Ordinance No. 6563 which amended the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of December 7, 2015, adopted Ordinance No. 6571 (BA#4) which amended Ordinance No. 6570 which amended the City of Auburn 2015-2016 Biennial budget; and Ordinance No. 6629 November 8, 2016 Page 1 of 4ORD.E Page 105 of 186 WHEREAS, the Auburn City Council at its regular meeting of January 19, 2016, adopted Ordinance No. 6580 (Comprehensive Plan) which amended Ordinance No. 6571 which amended the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of April 4, 2016, adopted Ordinance No. 6592 (BA#5) which amended Ordinance No. 6580 which amended the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of June 27, 2016, adopted Ordinance No. 6608 (BA#6) which amended Ordinanee No. 6592 which amended the City of Auburn 2015-2016 Biennial budget; and WHEREAS, the City of Auburn deems it necessary to appropriate additional funds to the various funds of the 2016 budget as outlined in this Ordinance (BA#7); and WHEREAS, this Ordinance has been approved by one more than the majority of all councilpersons in accordance with RCW 35A.34,200. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Amendment of the 2015-2016 Biennial Budget. The 2015- 2016 Biennial Budget of the City of Aubu n is amended pursuant fo Chapter 35A.34 RCW, to reflect the revenues and expenditures as shown on Schedule "A'' attached hereto and incorporated herein by reference. The Mayor of the City of Auburn, Washington is hereby authorized to utilize revenue and expenditure amounts shown Ordinance No. 6629 November 8, 2016 Page 2 of 4ORD.E Page 106 of 186 on said Sehedule "A" and Schedule "B". A copy of said Schedule "A" and Schedule B" is on file with the City Clerk and available for public inspection. Section 2. Implementation, The Mayor is hereby authorized to implement such administrative proeedures as may be necessary to carry out the directions of this legislation, Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective Date. This Ordinance shall take effect and be in force five (.5) days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: APPROVED: NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk Ordinance No. 6629 November 8, 2016 Page 3 of 4ORD.E Page 107 of 186 APPROVED AS TO FORM: Da el B. Heid, Ci Attorney PUBLISHED: Ordinance No. 6629 November 8, 2016 Page 4 of 4ORD.E Page 108 of 186 Schedule A Summary of 2016 Budget Adjustments by Fund Budget Amendment #7 (Ordinance #6629) A 7,949,390 Beg. Fund Balance 2016 Revenues 2016 Expenditures Ending Fund Balance General Fund (#001) 2016 Adopted Budget 10,547,126 59,354,240 64,735,515 5,165,851 Previous Budget Amendments 9,019,640 804,239 3,797,998 6,025,880 2016 Amended Budget 19,566,766 60,158,479 68,533,514 11,191,731 BA#7 (Ordinance #6629, Proposed):- 19,400 (55,600) 75,000 Police Department: Target Zero Task Force Grant (WA Traffic Safety Commission)- 19,400 19,400 - Non-Departmental: Reduce Interfund Charge for Muncipal Court Carpet Upgrades (F505)- - (75,000) 75,000 Revised 2016 Budget - Fund 001 19,566,766 60,177,879 68,477,914 11,266,731 Mitigation Fees Fund (#124) 2016 Adopted Budget 2,614,431 994,890 1,221,827 2,387,494 Previous Budget Amendments 3,239,938 400,000 2,369,018 1,270,920 2016 Amended Budget 5,854,369 1,394,890 3,590,845 3,658,414 BA#7 (Ordinance #6629, Proposed):- 250,000 350,000 (100,000) Increase Budget to Fund Acquisition of Replacement Fire Engine - 250,000 350,000 (100,000) Revised 2016 Budget - Fund 124 5,854,369 1,644,890 3,940,845 3,558,414 Capital Improvements Fund (#328) 2016 Adopted Budget 8,627,868 1,756,036 5,561,324 4,822,580 Previous Budget Amendments 3,363,114 2,254,210 3,788,602 1,828,722 2016 Amended Budget 11,990,982 4,010,246 9,349,926 6,651,302 BA#7 (Ordinance #6629, Proposed):- 10,000 10,000 - 4Culture Preservation Special Projects Grant - 10,000 10,000 - Revised 2016 Budget - Fund 328 11,990,982 4,020,246 9,359,926 6,651,302 ERROR: Detail ≠ Schedule A Page 1 of 6 11/7/2016 3:21 PMORD.E Page 109 of 186 Schedule A Summary of 2016 Budget Adjustments by Fund Budget Amendment #7 (Ordinance #6629) A 7,949,390 Beg. Fund Balance 2016 Revenues 2016 Expenditures Ending Fund Balance ERROR: Detail ≠ Schedule A Sewer Fund (#431) 2016 Adopted Budget 8,825,703 8,171,011 9,793,074 7,203,640 Previous Budget Amendments (4,562,844) (242,303) (2,367,120) (2,438,027) 2016 Amended Budget 4,262,859 7,928,708 7,425,954 4,765,613 BA#7 (Ordinance #6629, Proposed):- - 3,000,000 (3,000,000) Transfer from Operating to Capital Subfund - - 3,000,000 (3,000,000) Revised 2016 Budget - Fund 431 4,262,859 7,928,708 10,425,954 1,765,613 Storm Drainage Fund (#432) 2016 Adopted Budget 7,781,286 9,576,161 9,784,729 7,572,718 Previous Budget Amendments (5,089,904) (302,135) (1,896,560) (3,495,479) 2016 Amended Budget 2,691,382 9,274,026 7,888,169 4,077,239 BA#7 (Ordinance #6629, Proposed):- - 2,000,000 (2,000,000) Transfer from Operating to Capital Subfund - - 2,000,000 (2,000,000) Revised 2016 Budget - Fund 432 2,691,382 9,274,026 9,888,169 2,077,239 Solid Waste Fund (#434) 2016 Adopted Budget 2,858,461 13,427,400 13,040,599 3,245,262 Previous Budget Amendments 618,926 150,000 164,310 604,616 2016 Amended Budget 3,477,387 13,577,400 13,204,910 3,849,877 BA#7 (Ordinance #6629, Proposed):- 29,990 29,990 - Commercial Food Waste Outreach Grant from King County - 29,990 29,990 - Revised 2016 Budget - Fund 434 3,477,387 13,607,390 13,234,900 3,849,877 Page 2 of 6 11/7/2016 3:21 PMORD.E Page 110 of 186 Schedule A Summary of 2016 Budget Adjustments by Fund Budget Amendment #7 (Ordinance #6629) A 7,949,390 Beg. Fund Balance 2016 Revenues 2016 Expenditures Ending Fund Balance ERROR: Detail ≠ Schedule A Airport Fund (#435) 2016 Adopted Budget 292,109 881,900 826,807 347,202 Previous Budget Amendments 24,495 (133,031) (99,898) (8,637) 2016 Amended Budget 316,604 748,869 726,908 338,565 BA#7 (Ordinance #6629, Proposed):- - 150,000 (150,000) Transfer from Operating to Capital Subfund - - 150,000 (150,000) Revised 2016 Budget - Fund 435 316,604 748,869 876,908 188,565 Sewer Capital Fund (#461) 2016 Adopted Budget - - - - Previous Budget Amendments 8,600,000 242,303 4,138,460 4,703,843 2016 Amended Budget 8,600,000 242,303 4,138,460 4,703,843 BA#7 (Ordinance #6629, Proposed):- 3,000,000 - 3,000,000 Transfer from Operating to Capital Subfund - 3,000,000 - 3,000,000 Revised 2016 Budget - Fund 461 8,600,000 3,242,303 4,138,460 7,703,843 Storm Drainage Capital Fund (#462) 2016 Adopted Budget - - - - Previous Budget Amendments 11,900,000 659,941 4,783,512 7,776,429 2016 Amended Budget 11,900,000 659,941 4,783,512 7,776,429 BA#7 (Ordinance #6629, Proposed):- 2,000,000 - 2,000,000 Transfer from Operating to Capital Subfund - 2,000,000 - 2,000,000 Revised 2016 Budget - Fund 462 11,900,000 2,659,941 4,783,512 9,776,429 Page 3 of 6 11/7/2016 3:21 PMORD.E Page 111 of 186 Schedule A Summary of 2016 Budget Adjustments by Fund Budget Amendment #7 (Ordinance #6629) A 7,949,390 Beg. Fund Balance 2016 Revenues 2016 Expenditures Ending Fund Balance ERROR: Detail ≠ Schedule A Airport Capital Fund (#465) 2016 Adopted Budget - - - - Previous Budget Amendments 200,000 278,321 469,911 8,410 2016 Amended Budget 200,000 278,321 469,911 8,410 BA#7 (Ordinance #6629, Proposed):- 150,000 - 150,000 Transfer from Operating to Capital Subfund - 150,000 - 150,000 Revised 2016 Budget - Fund 465 200,000 428,321 469,911 158,410 Insurance Fund (#501) 2016 Adopted Budget 1,395,231 1,000 218,900 1,177,331 Previous Budget Amendments 135,358 - - 135,358 2016 Amended Budget 1,530,589 1,000 218,900 1,312,689 BA#7 (Ordinance #6629, Proposed):- 500,000 - 500,000 T/F In from GF for Ongoing Payments for Employment Security Taxes - 500,000 - 500,000 Revised 2016 Budget - Fund 501 1,530,589 501,000 218,900 1,812,689 Facilities Fund (#505) 2016 Adopted Budget 1,346,478 3,598,400 3,797,528 1,147,350 Previous Budget Amendments 1,064,276 (100,000) 781,520 182,756 2016 Amended Budget 2,410,754 3,498,400 4,579,048 1,330,105 BA#7 (Ordinance #6629, Proposed):- - (35,000) 35,000 Increase Budget for the Justice Center Painting Project - - 40,000 (40,000) Reduce Budget for Muncipal Court Carpet Upgrades - - (75,000) 75,000 Revised 2016 Budget - Fund 505 2,410,754 3,498,400 4,544,048 1,365,105 Page 4 of 6 11/7/2016 3:21 PMORD.E Page 112 of 186 Schedule A Summary of 2016 Budget Adjustments by Fund Budget Amendment #7 (Ordinance #6629) A 7,949,390 Beg. Fund Balance 2016 Revenues 2016 Expenditures Ending Fund Balance ERROR: Detail ≠ Schedule A Innovation & Technology Fund (#518) 2016 Adopted Budget 1,828,866 5,639,465 5,582,582 1,885,749 Previous Budget Amendments 476,329 33,538 166,200 343,667 2016 Amended Budget 2,305,195 5,673,003 5,748,782 2,229,416 BA#7 (Ordinance #6629, Proposed):- - 1,500,000 (1,500,000) Transfer from Operating to Capital Subfund - - 1,500,000 (1,500,000) Revised 2016 Budget - Fund 518 2,305,195 5,673,003 7,248,782 729,416 Equipment Rental Fund (#550) 2016 Adopted Budget 3,184,883 3,669,480 4,638,010 2,216,353 Previous Budget Amendments (210,764) (89,655) (1,127,562) 827,143 2016 Amended Budget 2,974,119 3,579,825 3,510,449 3,043,495 BA#7 (Ordinance #6629, Proposed):- - 1,000,000 (1,000,000) Transfer from Operating to Capital Subfund - - 1,000,000 (1,000,000) Revised 2016 Budget - Fund 550 2,974,119 3,579,825 4,510,449 2,043,495 Equipment Rental Capital Fund (#560) 2016 Adopted Budget - - - - Previous Budget Amendments 3,100,001 1,120,578 3,630,065 590,513 2016 Amended Budget 3,100,001 1,120,578 3,630,065 590,513 BA#7 (Ordinance #6629, Proposed):- 1,000,000 - 1,000,000 Transfer from Operating to Capital Subfund - 1,000,000 - 1,000,000 Revised 2016 Budget - Fund 560 3,100,001 2,120,578 3,630,065 1,590,513 IT Capital Fund (#568) 2016 Adopted Budget - - - - Previous Budget Amendments 1,400,000 442,562 1,579,579 262,983 2016 Amended Budget 1,400,000 442,562 1,579,579 262,983 BA#7 (Ordinance #6629, Proposed):- 1,500,000 - 1,500,000 Transfer from Operating to Capital Subfund - 1,500,000 - 1,500,000 Revised 2016 Budget - Fund 568 1,400,000 1,942,562 1,579,579 1,762,983 Page 5 of 6 11/7/2016 3:21 PMORD.E Page 113 of 186 Schedule A Summary of 2016 Budget Adjustments by Fund Budget Amendment #7 (Ordinance #6629) A 7,949,390 Beg. Fund Balance 2016 Revenues 2016 Expenditures Ending Fund Balance ERROR: Detail ≠ Schedule A Grand Total - All Funds 2016 Adopted Budget 70,939,707 169,297,448 185,515,188 54,721,967 Previous Budget Amendments 44,971,362 16,594,401 37,040,117 24,525,645 2016 Amended Budget 115,911,069 185,891,849 222,555,305 79,247,613 TOTAL BA#7 (Ordinance #6629, Proposed)- 8,459,390 7,949,390 510,000 Revised 2016 Budget 115,911,069 194,351,239 230,504,695 79,757,613 310,262,308 - 310,262,308 Page 6 of 6 11/7/2016 3:21 PMORD.E Page 114 of 186 Schedule B 2016 Appropriations by Fund Fund 2016 Adopted Budget BA#4 (Ord #6571) CFP (Ord #6580) and Set Up of Capital Funds BA#5 (Ord #6592) BA#6 (Ord #6608) BA#7 (Ord #6629) Total Amendments Revised Budget General Fund (#001)69,901,366 2,993,307 - 3,019,833 3,810,739 19,400 9,843,279 79,744,645 Arterial Street Fund (#102)13,197,491 3,701,861 - 3,189,470 269,524 - 7,160,855 20,358,346 Local Street Fund (#103)1,951,068 236,856 - 924,345 730,921 - 1,892,122 3,843,190 Hotel Motel Fund (#104)242,971 6,905 - - 61,668 - 68,573 311,544 Arterial Street Preservation Fund (#105)3,588,500 (203,936) - 1,920,390 (213,063) - 1,503,391 5,091,891 Drug Forfeiture Fund (#117)395,157 34,416 - - 111,351 - 145,767 540,924 Housing and Community Development Grant Fund (#119)487,371 17,533 - 715,398 (10,000) - 722,931 1,210,302 Recreation Trails Fund (#120)50,977 (761) - - (558) - (1,319) 49,658 Business Improvement Area Fund (#121)96,332 (9,841) - - 17,025 - 7,184 103,516 Cumulative Reserve Fund (#122)6,252,504 3,017,482 - 20,214 209,297 - 3,246,993 9,499,497 Mitigation Fees Fund (#124)3,609,321 801,664 - 1,253,082 1,585,192 250,000 3,889,938 7,499,259 1998 Library Fund (#229)285,100 - - - - - - 285,100 2010 Annex A&B Bond Debt Fund (#230)1,688,444 - - - - - - 1,688,444 2010 C&D Local Revitalization Debt Fund (#231)592,472 - - - - - - 592,472 Golf Course Debt Service Fund (#237)351,553 - - - - - - 351,553 LID Guarantee Fund (#249)22,589 - - - - - - 22,589 LID #350 (#275)15,130 1,995 - - - - 1,995 17,125 Municipal Park Construction Fund (#321)9,523,236 (2,971,834) - 1,338,045 521,117 - (1,112,672) 8,410,564 Capital Improvements Fund (#328)10,383,904 (763,636) 156,710 4,576,892 1,647,358 10,000 5,627,324 16,011,228 Local Revitalization Fund (#330)- 329,450 - 135,101 - - 464,551 464,551 Water Fund (#430)19,639,589 3,560,046 (4,887,989) (13,251) (193,823) - (1,535,017) 18,104,572 Sewer Fund (#431)16,996,714 726,461 (2,371,137) (17,613) (3,142,858) - (4,805,147) 12,191,567 Storm Drainage Fund (#432)17,357,447 477,264 (1,175,657) (13,251) (4,680,395) - (5,392,039) 11,965,408 Sewer Metro Fund (#433)18,825,535 (346,911) - - 213,281 - (133,630) 18,691,905 Solid Waste Fund (#434)16,285,861 223,816 - - 545,110 29,990 798,916 17,084,777 Airport Fund (#435)1,174,009 (18,274) - (133,031) 42,769 - (108,536) 1,065,473 Cemetery Fund (#436)1,334,748 184,237 - - (235,039) - (50,802) 1,283,946 Water Capital Fund (#460)- - 4,905,785 4,415,123 170,394 - 9,491,302 9,491,302 Sewer Capital Fund (#461)- - 3,552,000 590,823 4,699,480 3,000,000 11,842,303 11,842,303 Storm Drainage Capital Fund (#462)- - 2,850,618 1,938,168 7,771,155 2,000,000 14,559,941 14,559,941 Airport Capital Fund (#465)- - 351,237 111,705 15,379 150,000 628,321 628,321 Cemetery Capital Fund (#466)- - - 12,699 257,301 - 270,000 270,000 Insurance Fund (#501)1,396,231 40,926 - - 94,432 500,000 635,358 2,031,589 Workers Compensation Self Insurance Fund (#503)1,029,599 317,004 - - 294,730 - 611,734 1,641,333 Facilities Fund (#505)4,944,878 618,685 - 518,500 (172,909) - 964,276 5,909,154 Innovation and Technology Fund (#518)7,468,331 404,683 (480,000) 666,376 (81,192) - 509,867 7,978,198 Equipment Rental Fund (#550)6,854,363 528,598 (1,169,254) (313,797) 879,034 - (75,419) 6,778,944 Equipment Rental Capital Fund (#560)- - 1,738,048 1,575,217 682,313 1,000,000 4,995,578 4,995,578 IT Capital Fund (#568)- - 480,000 749,579 612,983 1,500,000 3,342,562 3,342,562 Fire Pension Fund (#611)2,562,300 28,981 - - (2,724) - 26,257 2,588,557 Cemetery Endowment Fund (#701)1,732,064 (24,016) - - 12,431 - (11,585) 1,720,479 Total 240,237,155 13,912,960 3,950,362 27,180,018 16,522,423 8,459,390 70,025,153 310,262,308 11/15/2016 3:19 PMORD.E Page 115 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5252 Date: September 29, 2016 Department: Parks/Art and Recreation Attachments: Resolution No. 5252 Budget Impact: $0 Administrative Recommendation: City Council adopt Resolution No. 5252. Background Summary: The City of Auburn has supported the Auburn Symphony Orchestra for the past several years to assist in promoting and marketing Auburn as a destination for arts and events that in turn contribute to the economy. Performing art programs serve as an economic driver and the activities of the Auburn Symphony Orchestra assists in attracting visitors to Auburn. For 2017, it is proposed that the City enters into one contract with a specific scope of services that outlines sponsorship services, marketing, outreach and audience building, and organization efforts that assist in showcasing Auburn as a destination for arts and events. Reviewed by Council Committees: Councilmember: Staff:Faber Meeting Date:November 21, 2016 Item Number:RES.A AUBURN * MORE THAN YOU IMAGINEDRES.A Page 116 of 186 RESOLUTION iVO. 5 2 5 2 A RESOLUTION OF THE CITY GOUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF AUBURN AND THE AUBURN SYMPHONY ORCHESTRA FOR TOURISM PROMOTIOfV SERVICES WHEREAS, the City is interested in promoting and marketing Auburn as a tourist Destination; and WHEREAS, there are activities located and occurring within the corporate boundaries of the City the promotion of which would be beneficial to the City and to the residents and businesses of the City; and WHEREAS one source of such activities is the Auburn Symphony Orchestra, the Service Provider, herein; and WHEREAS, a program of advertising for such events would help to insure the success of such activities by informing people about them encouraging people to attend and att:racting tourists to the City; and WHEREAS, in order to advertise the City, attract visitors, and encourage tourism it would be advantageous for the City to contract with the Service Provider for promotional services in connection therewith. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the Mayor is hereby authorized to execute an Agreement befinreen the City and the Auburn Symphony Orchestra for tourism promotion senrices, which agreement shall be in substantial conformity with the agreement attached hereto as Exhibit A and incorporated herein by this reference. Resolution No. 5252 October 19, 2016 Page 1 of 2RES.A Page 117 of 186 Section 2. That the Mayor is authorized to implement sueh administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this day of 2016. CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APPR ED FORM: nie B. Hei , City Attorney Resolution No. 5252 October 19, 2016 Page 2 of 2RES.A Page 118 of 186 Exhibit A, Resolution No. 5252 cmroF * . WASHING'fON CITY OF AUBURN and AUBURN SYMPHONY ORCHESTRA COfVTRACT FOR SERVICES THIS CONTRACT is made and entered into on the day of 2016, by and between the CITY OF AUBURN, a municipal corporation of the State of Washington, hereinafter referred to as the "City," and the AUBURN SYMPHONY ORCHESTRA, a not-for-profit corporation organized pursuant to 26 U.S.C. 501 (C)(3), hereinafter referred to as the "Service Provider" or"ASO," on the following terms and conditions. 1. SCOPE OF SERVICES BY SERVICE PROVIDER The Service Provider shall engage, enrich and inspire our community through artistically vibrant performances; will uphold the highest artistic and professional standards• will present a broad range of repertoire; will serve a wide and diverse audience; and will provide quality educational experiences for all ages. Service Provider will provide classical music opportunities to area youth through reduced ticket prices to concerts as well as outreach to Auburn area schools. Service Provider will actively participate in community events and include City of Auburn logo in all applicable promotional materials. Service Provider will comply with requirements listed in Attachment A'. 2. TERM OF CONTRACT:The Term of this Contract shall be from January 1, 2017, through December 31, 2017. 3. COMPENSATION TO SERVICE PROVIDER: a. The parties understand that the Service Provider operates on a fiscal year that runs from July 1 through the following June 30, and that its concert season is consistent with its fiscal year. The City's fiscal year is from January 1 through the following December 31. The parties agree that the marketing services provided throughout the year are adequate consideration for the City to pay the Service Provider its full consideration due for the calendar year by the end of June each year in order to support the Service Provider's budget cycle. b. The total contract is for $75,000 per calendar year. For 2017, the first payment of 25,000.00 will be paid on January 31, 2017.The second payment of$25,000.00 will be paid on March 30, 2017.The third payment of$25,000.00 wil) be paid on June 1, 2017. c. Invoicing and Reports.The Service Provider will submit invoices and reports not later than 30 calendar days before payment is due. For each reporting period, the Service Provider will provide report outlining how the Service Provider met the performance measures set forth in this Agreement. 4. NON-APPROPRIATION OF FUNDS: If sufficient funds are not appropriated or allocated for payment under this Agreement for any future fiscal period, the City will not be obligated to 2017 Auburn Symphony Orchestra Confract October 19,2016 Page 1 of 6RES.A Page 119 of 186 Exhibit A, Resolution No. 5252 make payments for Services or amounts incurred after the end of the current fiscal period, and this Agreement will terminate upon the completion of all remaining Services for which funds are allocated. No penalty or expense shall accrue to the City in the event this provision applies. 5: RECORpS INSPECTION AND AUDIT: All compensation payments shall be subject to the adjusfiments for any amounts found upon audit or otherwise to have been improperly invoiced and all records and books of,accounts pertaining to any work performed under this Contract shall be subject to inspection and audit by the City for a period of up to three 3 years from the final payment for work performed under this Contract. 6. CONTRACT ADMINISTRATION: This Contract shall be administered by Auburn Symphony Orchestra Manager Lee Valenta on behalf of the Service Provider and by Mayor or designee. on behalf of the City. Any written notices required by terms of this Contract shall be served or mailed to the following addressees unless changed by written notice to the other party: If to the City: City of Auburn, 25 West Main Street,Auburn WA 98001 If to the Service Provider: Auburn Symphony Orchestra, P.O. Box 2186, Awburn WA 98071 7. NOTICES: All notices or communications permitted or required to be given under this Contract shall be in writing and shall be deemed to have been duly given if delivered in person or deposited in the United States ma.il postage prepaid for mailing by certified mail return receipt requested and addressed if to a party ofthis Contract to the address set forth. next to such party s signature at the end of this Contract or if to a person not a party to this Contract to the address designated by a party to this Contract in the foregoing manner Any party may change his or its address by giving notice in writing stating his or its new address to any other party all pursuant to the procedure set forth in this section of the Contract. 8. INSURANCf: The Service Provider shall be responsible for maintaining during the term of this Contract and at its sole cost and expense insurance coverages in amounts not le_ss than the amounts set forth herein below. The Service Rrovider shall furnish evidence satisfactory to the City of all such policies during the term hereof the Service Provider shall take out and maintain in fuU force and effect the following insurance policies: a. Comprehensive general liability insurance including automobile and property damage insuring the City and the Service Provider against loss or liability for damages for personal injury death or property damage arising out of or in connection with the performance by the Service Provider of its obligations hereunder with minimum liability limits of $1,UOO,U00.00 combined single limit for personal injury death or property damage in anyone occurrence. b. Such workmen s compensation and other similar insurance as may be required by law. 2017 Auburn Symphony Orchestra Confract October 19, 2016 Page 2 of 6RES.A Page 120 of 186 Exhibit A, Resolution No. 5252 9. INDEMNIFICATION: The Service Provider shall indemnify and hold harmless the City and its officecs agents and employees or any of them from any and all claims actions suits liability loss costs expenses and damages of any nature whatsoever by any reason of or arising out of the negligent act or omission of the Service Provider its officers agents employees or any of them relating to or arising out of the performance of this Contract. If a final judgment is rendered against the City its officers agents employees and or any of them or jointly against the City and the Service Provider and their respective officers agents and employees or any of them the Service Provider shall satisfy the same to the extent that such judgment was due to the Service Provider s negligent acts or omissions. 10. RESTRICTION AGAINST ASSIGNMENT: Service Provider shall not assign this Contract or any interest herein nor any money due or to become due hereunder without first obtaining the written consent of the City nor shall the Service Provider subcontract any part of the services to be performed hereunder without first obtaining the written consent of the City. 11. AMENDMENT MODIFICATION OR WAIVER: No amendment modification or waiver of any condition provision or term of this Contract shall be valid or of any effect unless made in writing signed by the party or parties to be bound or sueh party s or parties duly authorized representative s and specifying with particularity the nature and extent of such amendment modification or waiver Any waiver by any party of any default of the other party shall not effect or impair any right arising frorn any subsequent default Nothing herein shall limit the remedies or rights of the parties hereto under and pursuant to this Contract. 1. TERMINATION AND SUSPENSION: Either party may terminate this Contract upon Ninety(90) days written notice to the other party It is provided however that if the Service Provider has performed services pursuant to the Contract the Service Provider shall be compensated for such services in accordance with the rate of compensation provided herein. 13. PARTIES IN INTEREST: This Contract shall be binding upon and the benefits and obligations provided for herein shall inure to and bind the parties hereto and their respective suecessors and assigns provided that this section shall not be deemed to permit any transfe or assignment otherwise prohibited by this Contract This Contract is for the exclusive benefit of the parties hereto and it does not create a contractual relationship with or exist for the benefit of any third party including contractors sub contractors and their sureties. 14. COSTS TO PREVAILING PARTY; In the eyent of litigation or other legal action to enforce any rights responsibilities or obligations under this Contract the prevailing parties shall be entitled to receive its reasonable costs and attorne s fees. 15. APPLICABLE LAW:This Contraet and the rights of the parties hereunder shall be governed by the interpreted in accordance with the laws of the State of Washington and venue for any action hereunder shall be King County State of Washington provided however that it is agreed and understood that any applicable statute of limitation shall commence no later than the substantial completion by the Service Provider of the services. 2017 Auburn Symphony Orchestra Contract October 19, 2016 Page 3 of 6RES.A Page 121 of 186 Exhibit A, Resolution No. 5252 16, CAPTIONS HEADINGS AND TITLES: All captions headings or titles in the paragraphs or sections of this Contract are inserted for conyenience of reference only and shall not constitute a part of this Contract or act as a limitation of the scope of the particular paragraph or sections to which they apply As used herein where appropriate the singular shall include the plural and vice versa and masculine feminine and neuter expressions shall be interchangeable Interpretation or construction of this Contract shall not be affected by any determination as to who is the drafter of this Contract this Contract having been drafted by mutual agreement of the parties. 17. SEVERABLE PROVISIONS: Each provision of this Contract is intended to be severable If any provision hereof is found by a court of competent jurisdiction to be illegal or invalid or not applicable to any person or circumstance for any reason whatsoever such illegality invalidity or non applicability shall not affect the legality or validity of the remainder of this Contract or its applicability to other persons or circumstances. 18. ENTIRE AGREEMENT: This Contract contains the entire understanding of the parties hereto in respect to the transactions contemplated hereby and supersedes all prior agreements contracts and understandings between the parties with respect to such subject matter. 19. COUNTERPARTS: This Contract may be executed in multiple counterparts each of which shall be one and the same Contract and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party. IN WITNESS WHEREOF the parties hereto have caused this Contract to be executed effecti e the day and year first set forth above: AUBURN SYMPHONY ORCHESTRA CITY OF AUBURN Nancy Backus, Mayor Title: Date: Date: ATTEST: Danielle Daskam, City Clerk APP D AS iel B. Heid, City Attorney 2017 Auburn Symphony Orchestra Contract October 19, 2016 Page 4 of 6RES.A Page 122 of 186 Exhibit A, Resolution No. 5252 Contractor:Auburn Symphony Orchestra Contract# ATTACHMENT A Scope of Services Scope of Work: 1. Auburn Symphony Orchestra (A50) will engage, enrich and inspire our community through artistically vibrant performances; will uphold the highest artistic and professional standards; will present a broad range of repertoire; will serve a wide and diverse audience; and will provide quality educational experiences for all ages. 2. ASO will produce, at the minimum, three full symphony programs, four chamber concerts, three summer concerts each performing arts season. 3. ASO will conduct outreach into Auburn public schools and offer reduced price student tickets. 4. Conduct outreach to new audiences through programming and marketing efforts. 5. Participate in community events and/or festivals through hosting a booth and/or partnering to present programming as part of the event program. Servtce Provider Agrees to: 1. Credit the City of Auburn in all appropriate public announcements, programs, advertising, and other forms of notice relating to the activity and service covered under this agreement and produced by, for, and under the direction of the organization. Where possible, the City of Auburn logo should be used. If logo is not appropriate, ASO may lisfi the funder as : City of Auburn. 2. Provide access to members of the City Council and Auburn Arts Commission for purposes of evaluation to at least three performances each qear. 3. Meet with the City Council, Arts Commission, or the Arts Coordinator once during the contract period, to provide information regarding programming and administration of the programs. 4. Provide the City of Auburn reports and data as outlined as part of the payment schedule. 5. Make available to the City of Auburn the service providers financial and other records, upon request,to determine cornpliance with this agreement, 6. Include City Council members and Arts Commissioners in their rnailing list Payment Schedule Phase I: To be completed by January 31, 2017. NTE $25,U00.00 upon receipt or completion of the following: o Full execution of this contract Receipt of completed invoice Receipt of schedule of activities and programming for 2016-17 performing arts season 2017 Auburn Symphony Orchestra Contract October 19, 2016 Page 5 of 6RES.A Page 123 of 186 Exhibit A, Resolution No. 5252 o Submission of all printed material and copies of paid advertisernents completed between June 2016 and January 20171. Attendance reports for concerts; including zip code demographic summary of patrons and student discount tickets clairned, and tracking of new versus returning attendees. Outline summary of outreach activities and community participation efforts Receipt of annual report from prior ASO fiscal year m Submission of marketing plan and budget for ASO 2016-2017 performing arts season Phase II: To be completed by March 30, 2017. NTE $25,000.00 upon receipt or completion of the following: Receipt of completed invoice Submission of all printed material and copies or documentation of paid advertisements completed between January 2017 and March 2017 Attendance reports for ASO concerts; including zip code demographic summary of patrons and student discount tickets claimed, and tracking of new versus returning attendees. Outline summary of outreach activities and community participation efforts Phase III: To be completed by June 1, 2017. NTE $25,000.00 upon receipt or completion of the following; Receipt of completed invoice O Submission of all printed material and copies of paid advertisements completed between March 2017 and June 2017. e Attendance reports for ASO concerts; including zip code demographic summary of patrons and student discount tickets claimed, and tracking of new versus returning attendees. Outline summary of outreach activities and community participation efforts Summary of annual fundraiser 1 NOTE:While this Contract covers performances during 2016 and 2017,references are made to the ASO's 2015- 2016 season,which includes periods coVered in th.is Contract. 2017 Auburn Symphony Orchestra Contract October 19,2016 Page 6 of 6RES.A Page 124 of 186 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5256 Date: November 17, 2016 Department: Administration Attachments: Resolution No. 5256 Plan Budget Impact: $0 Administrative Recommendation: City Council adopt Resolution No. 5256. Background Summary: The completed Council adopted plan will allow the City to be more strategic in future policy making, investment decisions and infrastructure planning to maximize return on investment. The Plan will increase the City’s overall market awareness, how it lags, competes and excels in the market, the target industries that the City should pursue to create taxable value and employment opportunity value for the community. Further, this Plan will assist the City in making appropriate decisions to insure that both the community’s quality of life and the quality of its workforce are at a level to insure that the City can effectively compete in the global marketplace. Reviewed by Council Committees: Councilmember: Staff:Hinman Meeting Date:November 21, 2016 Item Number:RES.B AUBURN * MORE THAN YOU IMAGINEDRES.B Page 125 of 186 RESOLUTION NO. 5 2 5 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURfV, WASHINGTON, APPROVING THE CITY OF AUBURN TEN-YEAR ECONOMIC DEVELOPMENT STRATEGIC PLAN WHEREAS, in the fall of 2015, the City of Auburn embarked on a process to develop an Economic Development Strategic Plan; and WHEREAS, it was intended that this plan could provide a guideline for the City's economic development activities over the next decade; and WHEREAS, to assist in this endeavor, the City hired a team that included TIP Strategies, Heartland, and the Retail Coach. Building on the recent Imagine Aubum Comprehensive Plan, the consulting team developed this strategic plan with the input of more than 200 stakeholders and based on findings from a detailed analysis of demographic, economic, and market data; and WHEREAS, the goals and strategies were also informed by the consulting team's knowledge of trends and best practices that shape economic development outcomes and programs across the nation. The result is a set of goals, strategies, and actions that will propel the City of Auburn forward towards its vision for 2025; and WHEREAS, the City's development and adoption of this strategic plan is timely. Auburn is in the path of growth and has already attracted high-profile investments in multi-family housing (Trek Apartments and Merrill Gardens), manufacturing (Orion Industries), and community services (Junior Achievement); and Resolution No. 5256 November 10, 2016 Page 1 of 3RES.B Page 126 of 186 WHEREAS, these suceessful investments highlight Auburn's competitive advantages, its central location, historic downtown, regional transportation linkages, and access to labor; and WHEREAS, the spillover growth from Seattle is just beginning in Auburn. With large tracts of land coming into to play, such as the 129-acre General Services Administration (GSA) Complex and the 70-acre Valley Drive-In, and the momentum that has already built up around Auburn, the City is wise to contemplate how it wants fo grow so it can be better positioned to guide its future; and WHEREAS, Auburn can and should harness Seattle's success to shape its own economic development fufure as a vibrant, connected City with a strong and diverse employment base; and WHEREAS, the City of Auburn should also build opportunity from within by encouraging companies to start, stay, and grow in the City. All of this work must be accomplished without losing sight of its purpose: to benefit the citizens of Auburn and provide employment opportunities for the children that grow up there; and WHEREAS, this work will take discipline and direction, leadership and eollaboration, and patience and perseverance across the City and multiple partners. The City of Auburn's Ten=Year Economic Development Strategic Plan provides the foundation and lays out the framework to coordinate the City's transformation into a unique and thriving hub in the Seattle-Tacoma region, Resolution No. 5256 November 10, 2016 Page 2 of 3RES.B Page 127 of 186 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the Economic Development Plan, a copy of which is attached hereto, marked as Exhibit "A" and incorporated herein by this reference, is adopted as the City of Auburn Ten-Year Economic Development Strategic Plan. Section 2. That the Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this day of 2016. CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APP VED AS TO FORM: aniel B. He , ity ttorney Resolution No. 5256 November 10, 2016 Page 3 of 3RES.B Page 128 of 186 THEORY INTO PRACTICE PAGE | 1 CITY OF AUBURN, WASHINGTON ECONOMIC DEVELOPMENT STRATEGY NOVEMBER 16, 2016 RES.B Page 129 of 186 THEORY INTO PRACTICE PAGE | 2 RES.B Page 130 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGY PAGE | I ACKNOWLEDGEMENTS PROJECT STEERING COMMITTEE: Mayor Nancy Backus Dana Hinman Kevin Snyder Doug Lein Bob Lee Shelley Coleman Ingrid Gaub Jeff Tate John Holman Paul Haugan Daryl Faber Tiffany Dickman, Project Coordinator TIP STRATEGIES, INC. is a privately held economic development consulting firm with offices in Austin and Seattle. TIP is committed to providing quality solutions for public and private-sector clients. Established in 1995, the firm's primary focus is economic development strategic planning. CONSULTING TEAM: Jeff Marcell Caroline Alexander Senior Partner Project Manager CONTACT: 2905 San Gabriel Street, Suite 550 Austin, Texas 78705 PH: 512.343.9113 www.tipstrategies.com HEARTLAND is a Seattle-based real estate advisory and investment firm with over 30 years of experience designing, analyzing, and implementing strategies to manage risk and optimize value in all aspects of both the built and natural environment. Our five business lines include public-sector advisory, private-sector advisory, capital markets, brokerage services and investment. CONSULTING TEAM: Matt Hoffman Senior Project Manager, Integrated Analytics Lanzi Li Associate Project Manager CONTACT: 1301 1st Ave #200 Seattle, WA 98101 PH: 206.682.2500 www.heartlandllc.com RETAIL COACH is a premier national retail recruitment and development consulting firm, founded by C. Kelly Cofer, President and Chief Executive Officer. Since 2000, The Retail Coach has provided the research, relationships and strategies to achieve retail recruitment and development results that have helped more than 350 communities throughout the US become better, stronger places to live and work through an expanded sales tax base. CONSULTING TEAM: C. Kelly Cofer, CCIM President/CEO Aaron Farmer Senior Vice President CONTACT: 86 Clark Boulevard Tupelo, MS 38804 PH: 662.844.2155 www.theretailcoach.net RES.B Page 131 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGY PAGE | II RES.B Page 132 of 186 CITY OF AUBURN PAGE | III CONTENTS Executive Summary ....................................................................................................................................... 1 Strategic Plan .............................................................................................................................................. 5 Introduction ............................................................................................................................................. 7 Vision & Guiding Principles ..................................................................................................................... 13 Delivery ............................................................................................................................ 15 Focus Area 1. Product ............................................................................................................................. 21 Focus Area 2. Place ............................................................................................................................... 27 Focus Area 3. Messaging ........................................................................................................................ 32 Focus Area 4. Implementation and Organization ............................................................................................................ 36 Conclusion ............................................................................................................................................ 52 RES.B Page 133 of 186 CITY OF AUBURN PAGE | IV RES.B Page 134 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 1 EXECUTIVE SUMMARY In the fall of 2015, the City of Auburn embarked on a process to develop an economic development strategic plan. This plan will provide a guide for the City’s economic development activities and investment over the next decade. To assist in this endeavor, the City hired a team that included TIP Strategies, Heartland, and the Retail Coach. Building on the recent Imagine Auburn Comprehensive Plan, the consulting team developed this strategic plan with the input of more than 200 stakeholders and based on findings from a detailed analysis of demographic, economic, and market data. The goals and strategies were also informed by the consulting team’s knowledge of trends and best practices that shape economic development outcomes and programs across the nation. The result is a set of goals, strategies, and actions that will propel the City of Auburn forward towards its vision for 2025. The City’s development and adoption of this strategic plan is timely. Auburn is in the path of growth and has already attracted high-profile investments in multi-family housing (Trek Apartments and Merrill Gardens), manufacturing (Orion Industries), and community services (Junior Achievement). These successful investments highlight Auburn’s competitive advantages—its central location, historic downtown, regional transportation linkages, and access to labor. But the spillover growth from Seattle is just beginning in Auburn. With large tracts of land likely to be redeveloped, such as the 129-acre General Services Administration (GSA) Complex and the 70- acre Valley Drive-In, and the momentum that has already built up around Auburn, the City is wise to contemplate how it wants to grow so it can be better positioned to guide its future. Auburn can and should harness Seattle’s success to shape its own economic development future as a vibrant, connected City with a strong and diverse employment base. It should also build opportunity from within by encouraging companies to start, stay, and grow in the City. All of this work must be accomplished without losing sight of its purpose: to benefit the citizens of Auburn and provide employment opportunities for the children that grow up there. This work will take discipline and direction, leadership and collaboration, and patience and perseverance across the City and multiple partners. The City of Auburn’s Ten-Year Economic Development Strategic Plan provides the foundation and lays out the framework to coordinate the City’s growth as a unique and thriving hub in the Seattle-Tacoma region. AUBURN’S TARGET INDUSTRIES As part of the analysis, the consulting team examined industry data, Auburn’s competitive positioning, as well as available buildings and sites in order to identify a set of industries to target with marketing and outreach efforts related to business attraction. A look at the top ten traded industry clusters reveals the growth potential for four key sectors in Auburn’s economy: MANUFACTURING DISTRIBUTION, LOGISTICS & TRANSPORTATION OFFICE-USING BUSINESSES RETAIL Within each of these broad sectors, niches were identified that are good fits for Auburn and likely to expand in Auburn. Detailed information on each of the sectors can be found in Appendices C and F. RES.B Page 135 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 2 STRATEGIC PLAN SUMMARY: FOCUS AREAS & STRATEGIES The strategic plan is structured around four focus areas that have the potential to set the stage for Auburn’s success through a more robust, proactive, and focused economic development program. The four areas were derived from key findings from an analysis of the City’s Strengths, Weaknesses, Opportunities, and Threats. The SWOT analysis summarizes the input of more than 200 stakeholders and augmented by the results of the various analyses carried out by the consulting team that were components of the planning process. The strategies that support each of the four areas will help address Auburn’s primary weaknesses and position it to capitalize on its principal opportunities. These focus areas and their supporting strategies are summarized below. Detailed actions for each of the strategies are provided on pages 4 through 36 of the Strategic Plan. 1. DELIVERY A comprehensive service delivery system that actively identifies and advances economic development opportunities in Auburn 2. PRODUCT An inventory of sites, a business climate, and a physical environment that foster business growth and ensure a resilient employment base 1.1 Value-Added Services. Clearly define the services that the City of Auburn provides to businesses both directly and through partnerships 1.2 Local Business Visitation. Formalize a business visitation program in partnership with the Chamber of Commerce to track trends among Auburn employers and identify any businesses in need of assistance 1.3 Business Recruitment. Recruit new businesses, including retail, to Auburn to provide better economic opportunities and enhance Auburn’s quality of place 1.4 Catalyst Projects. Identify and advance catalyst projects that will facilitate Auburn’s evolution 1.5 Strategic Relationships. Foster relationships with key entities that support economic activity in the City 2.1 Labor Market Information. Design and maintain information resources that demonstrate Auburn’s strength in terms of its access to skilled labor 2.2 Deal-Ready Sites. Ensure a supply of deal- ready sites to accommodate new business investment in Auburn 2.3 Economic Development Toolbox. Create a robust toolbox to influence economic development outcomes 2.4 Continuous Process Improvement. Evaluate and continue to improve the City’s land use and building permit process and performance 2.5 Zoning Modification. Reevaluate zoning districts and modify certain aspects of the code 2.6 Cost Comparison. Annually compare Auburn’s development/impact fees, tax rates, and rebate programs to peers RES.B Page 136 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 3 3. PLACE Attractive gateways, impression corridors, and destinations that define the character of Auburn 4. MESSAGING A coordinated marketing and branding campaign that elevates Auburn’s reputation among internal and external audiences 3.1 Strategic Investment. Create a target investment program to guide infrastructure investments that enhance Auburn’s economic development opportunities 3.2 Regional Transportation. Maintain and enhance regional transportation connections to ensure ease of travel to, from, and within Auburn 3.3 Downtown Revitalization. Continue to invest in downtown revitalization 3.4 Auburn Way South Revitalization. Designate Auburn Way South as an additional Targeted Investment Area 3.5 Destination Connections. Create stronger connections between Auburn’s primary tourism assets and develop new assets to attract more visitors to Auburn 3.6 Regional Tourism. Strengthen regional tourism connections 4.1 Brand Enhancement. Develop a stronger brand for Auburn and reinforce this with unified messaging across organizations 4.2 Internal Image. Build a more positive perception and a greater sense of community among Auburn residents through a strong partnership with the Auburn Reporter and other local media outlets 4.3 Social Media. Continue to strengthen the City’s social media strategy to improve Auburn’s internal and external perceptions 4.4 Public Relations. Launch a formal public relations campaign to change the region’s perception of Auburn 4.5 Real Estate Market Reports. Develop a system for effective communication to the marketplace that educates businesses, developers, and brokers on opportunities available in the City 4.6 Strategic Outreach. Reach out to decision makers in the target industries to encourage them to consider expanding or relocating in Auburn The City of Auburn’s Ten-Year Economic Development Strategic Plan is an ambitious plan that will require specialized staff and additional resources to implement. The transition to a more robust and proactive economic development program necessitates additional capacity in deal making; economic and market research; prospecting and prospect management; real estate finance; as well as marketing and outreach. Most municipally run economic development departments or offices that undertake this type of comprehensive economic development program are staffed by three to four specialists. Over the next three years, the City of Auburn must build up its economic development capacity, both in terms of staff and operating budget, in order to execute on these recommended strategies. The ideal staffing pattern would be an experienced economic developer supported by three economic development specialists (business development, marketing, and redevelopment) in addition to the tourism coordinator and real estate analyst. RES.B Page 137 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 4 Successful implementation will require not only additional resources but also an evaluation system that will demonstrate progress and provide feedback to the City about which strategies are working and which must be strengthened. Below is dashboard of outcome measures that should be tracked over the course of implementation. A more comprehensive list of metrics and measurement tools can be found on page 51. 0 25,000 50,000 75,000 100,000 2012 2013 2014 2015 2016 Non-exempt Taxable Value (per Capita) Property Tax Base 37%39%38%34%34% 2012 2013 2014 2015 2016 % Commercial (Industrial, Retail, Office) - 100 200 300 400 2012 2013 2014 2015 2016 Sales Tax Receipts (per Capita) The tax base has grown steadily since 2013. Commercial Tax Base The share of the commercial tax base fell from its 2013 peak. Retail Sales Retail sales tax receipts per capita have climbed steadily. 0.0% 1.0% 2.0% 3.0% -200,000 0 200,000 400,000 600,000 20122013201420152016Net Absorption Vacancy 0.0 2.0 4.0 6.0 8.0 2012 2013 2014 2015 2016 Unemployment Rate (%) Auburn Washington US Industrial Market The vacancy rate rose slightly with recent negative net absorption. Office Market The vacancy rate dropped with positive net absorption. New Space Delivery Over the last two years, little new square footage has been delivered. Employment The number of jobs in the City has continued to grow. Wages The region's wages are climbing gradually. Unemployment The region's unemployment rate is much lower than in 2012. 25.00 25.88 0 10 20 30 40 2012 2013 2014 2015 2016 Median Hourly Wages ($) Source: King County Tax Assessor 0.0% 5.0% 10.0% 15.0% -50,000 -25,000 0 25,000 50,000 75,000 100,000 2012201320142015Net Absorption Vacancy - 50,000 100,000 150,000 200,000 20122013201420152016Office Industrial 0 20,000 40,000 60,000 2012 2013 2014 2015 2016 Total Employment Source: King County Tax Assessor Source:City of Auburn Source: CoStar Source: CoStar Source:CoStar Source: EMSI Source: Bureau of Labor Statistics Source:EMSI RES.B Page 138 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 5 STRATEGIC PLAN STRATEGIC PLAN RES.B Page 139 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 6 RES.B Page 140 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 7 INTRODUCTION The City of Auburn (the City) benefits from a number of advantages including a rich cultural and economic history and a hard-working, civic-minded community. Auburn takes pride in its unique history while looking to the future. The annual Veterans Day Parade is an example of the value placed on family, community, and country by the City. From its origins as a farming community that capitalized on its access to rail, the City has transformed into a center for industry. The City’s manufacturing sector expanded and includes one of Boeing Commercial Airplanes’ most essential fabrication sites and the largest airplane parts plant in the world. The community’s commitment to quality of place is demonstrated by the Auburn Environmental Park (a 200-acre passive open space and educational facility located one mile west of downtown) and the attention to detail given to civic spaces in recent downtown redevelopment projects. Nothing could be more emblematic of the community’s focus on its future than Junior Achievement’s World Learning Center in Auburn, which holds the successful BizTown and Finance Park programs that serve children around western Washington. The Innovation Partnership Zone further illustrates Auburn’s forward-thinking approach and demonstrates its focus on economic success through partnerships. Even with all of its successes, the City understands that the only path to a sustainable, healthy economy is through good jobs and a diversified economic base. Leaders have seen firsthand what happens when a single concentration of businesses in one industry is too large. The region boasts one of the country’s largest clusters of distribution centers, of which the City has historically held a major concentration. These facilities were attracted to the area due to exceptional highway access and close proximity to two deep-water ports and an international airport. Despite low employment per building area, relatively low wage jobs, and the strain they place on city transportation infrastructure, these centers benefited the City because of the large amount of sales tax revenue they generated. However, in 2008, changes made by the Washington State legislature impacted these revenues. These changes redefined how the point-of-sale location was determined, moving it away from the distribution point. As a result, the City found itself facing all of the challenges of the industry without the associated tax revenue. The City is at a pivotal time in its history. Over the last several years, remarkable development has taken place. New buildings have emerged and more are planned in and around the authentic downtown, like the recently completed 126-unit Trek Apartments, the 129-unit Merrill Gardens at Auburn that is currently under construction, and the 592-unit multifamily and senior housing development called the Reserve. New businesses are building and expanding in the community, such as Orion Industries’ 100,000 square foot manufacturing facility that employs 265 people. Momentum has been built through hard work from elected leaders, City staff, and visionary business leaders and investors. With growth from Seattle spilling southward, the City will no doubt continue to see its own growth accelerate over the next ten years. With the opportunity to shape its own future in mind, the City of Auburn embarked on a process to develop a ten-year economic development strategic plan to formalize its economic development program and transform it into a proactive, entrepreneurial effort. This plan will provide a guide for the City’s economic development activities and investment over the next decade. RES.B Page 141 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 8 APPROACH AND METHODOLOGY To assist in the development of the strategic plan, the City hired a team that included TIP Strategies, Heartland, and the Retail Coach. The scope of work was comprehensive and ambitious and took place over the course of eleven months. The pieces of the scope are described below:  Deep dives into the economic context and Auburn’s real estate market fundamentals: This task required an in-depth analysis of Auburn’s position in the region versus its peer communities from the standpoint of demographics, schools, housing, job growth, tax rates and fees, and industrial and office markets (rents, stock, age, and development). The findings from this task painted a clear picture of Auburn’s strengths and weaknesses within the region.  A regulatory review: A review of the regulatory environment (both policy and process) provided insights into any constraints to development in Auburn.  A market capacity study: Heartland estimated the square footage of office and industrial space needed to meet the demand from project job growth and compared this figure to the amount of square footage the remaining developable land could support. This comparison provides a tool to evaluate whether or not Auburn can support future job growth.  An analysis of retail opportunities: The Retail Coach defined Auburn’s retail trade areas and analyzed the demographics and psychographics of these areas to identify potential retailers that would be a good fit for Auburn. They assisted the City in creating and distributing customized marketing materials to these target retailers and worked with the City to identify potential sites for interested retailers. Their deliverables provide tools for the Economic Development Division and community partners to use when recruiting retail. These tools include demographic profiles for the retail trade areas, an interactive mapping application, and general instructions on how to use the information to target retailers.  A perception survey: A survey to regional commercial real estate brokers documented the perceptions they hold about Auburn.  An assessment of Auburn’s competitive positioning: This task assessed Auburn’s relative positioning based on the top ten factors that are important to corporate site selection and location.  Target industry analysis and profiles: TIP analyzed industry clusters and segments to identify industry niches to target for business recruitment. Once the categories of industries and specific niches were identified, detailed profiles were created as a tool for the Economic Development Division as they develop industry knowledge and position Auburn for success in targeted business recruitment.  A review of key marketing materials: The City’s online presence is the most important tool for the Economic Development Division to support its outreach activities. TIP evaluated the existing economic development webpage and made recommendations to improve its effectiveness.  Organizational recommendations: TIP evaluated the City’s capacity to implement the strategic plan and made recommendations for resources needed from an operational standpoint. The resulting deliverables are included as supporting documentation and analysis. In addition, the team conducted extensive public input, reaching more than 200 employers, community and regional leaders, residents, and other stakeholders. The key findings from both of these exercises are summarized in the next section. RES.B Page 142 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 9 KEY FINDINGS The key findings below provide the City, the Economic Development Division, and its economic development partners information about Auburn’s competitive positioning—from both a business attraction and a development standpoint. It also identifies major constraints or barriers to economic development as well as key opportunities. Demographics. The City of Auburn has been growing rapidly, adding almost 18,000 new residents over the last ten years. According to Esri, a leading data provider, the population of Auburn is expected to reach almost 85,000 residents by 2020. With a median age of 33.5 years old, Auburn’s population is relatively young and the senior (age 65+) is smaller than many of its peers in the region. However, Auburn’s population has lower educational attainment levels than many of its regional peers and has lower median household incomes. Workforce. More than 37,000 residents are part of Auburn’s labor force. However, Auburn-based employers draw labor from a large area that extends across densely populated areas of the Seattle-Tacoma region. In fact, more than 35,000 workers commute into Auburn each day for work while more than 25,000 workers leave Auburn for jobs outside of the city limits. Auburn’s position within the region and its access to labor is one of its greatest strengths from a business attraction standpoint. Within a 45-minute drive time, there are an estimated 1.5 million workers. Economy. Auburn has a diverse economic base with notably strong manufacturing and retail sectors. Auburn’s employment base grew by more than 6,500 jobs (14 percent) between 2010 and 2015 and is projected to add another 6,400 over the next ten years. Though Auburn’s manufacturing sector remains strong, the sector’s outlook is largely dependent upon Boeing specifically and the aerospace industry more generally. Tax Base. Sales tax and property tax revenues account for more than two-thirds of the City’s sources of funds. This structure highlights the importance of a robust retail sector and a healthy commercial tax base. Motor vehicle sales are a vital part of the City’s retail tax revenue. Industrial uses, aerospace-related being one of the largest, are the most prominent segments of the commercial tax base. The City’s dependence on motor vehicle sales and aerospace could leave the City’s revenue at-risk in light of current trends in these two industries. Quality of Place. Auburn is fortunate to have a strong and improving school district and Green River College to provide educational opportunities and workforce training. Relatively low and declining crime rates and a wide array of recreational and entertainment amenities support a high quality of life. Downtown Auburn is one of the City’s most unique and distinguishing features. Although conditions in the downtown have improved greatly over the last few years, much opportunity remains. The state of Auburn Way South, as one of the main perception corridors in the City, is an area with great potential and in need of significant enhancement. The issue of homelessness remains a problem both in Auburn and in the greater region. Real Estate Market & Product. Auburn is a regional industrial center with a large stock of space 20 to 30 years old. Auburn’s industrial rents are the third highest in the South Sound subregion and its vacancy rate is one of the lowest. Its office market is relatively small and most of the square footage was built before 1990, but its vacancy rate is one of the lowest and its rents are about average for its peer group. Auburn’s low vacancy rates and lack of available buildings are its major constraints to job growth and economic diversification. Regulatory Environment. Auburn’s regulatory environment was found to be comparable to its peer communities. Permitted uses are generally flexible. Height is prescriptive and massing is flexible for most zoning RES.B Page 143 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 10 categories. Parking requirements are comparable to peers. The development process is relatively predictable and responsive. Auburn’s fee structure makes it “average” in terms of the cost of doing business. Market Capacity. Auburn’s developable lands that are zoned for industrial and office uses are adequate to support Auburn’s projected job growth over the next ten years. Opportunities for growth include the redevelopment of Valley 6 and the GSA Property as well as further development in Downtown Auburn and around the airport. The conversion of warehouse space to manufacturing represents another opportunity for strengthening and diversifying the tax base. Retail Market. Auburn’s primary retail trade area, which is the draw area for the “everyday shopper,” has a population of 169,377 with median household incomes of more than $70,000. Auburn’s retail trade area, which is the draw area for its destination retailers such as those at the Outlet Collection, has a population of 525,778 with median household incomes of about $68,000. The most significant areas of retail leakage were food and beverage stores, foodservice and drinking places, building material and garden equipment stores, and general merchandise stores. Site Selection Competitiveness. Auburn is fortunate to be in a region that is known for being a magnet for world-class talent and companies. This regional strength can put Auburn on the list in the competition for business recruitment. Within the Seattle-Tacoma region, Auburn stands out for its central location, access to labor, and quality of life. The City’s willingness and creativity in offering business assistance is another strength. The lack of available buildings and sites is Auburn’s primary constraint. Broker & Developer Perception. Among the more than 50 brokers who participated in an online survey, their perception of Auburn is more negative than their perception of regional peers. Respondents’ perception of Auburn’s business climate is more negative than other South Sound peers. In addition, respondents ranked the likelihood of clients considering Auburn for projects as lower than its peers. Among developers interviewed, there was more awareness of opportunities to invest in Auburn and the developers held a more favorable perception of Auburn’s business climate. Promoting a more positive perception of Auburn and making sure brokers and developers in the region are aware of Auburn’s value proposition is a significant opportunity. Target Industry Analysis. Auburn’s greatest opportunities for business expansion and attraction are still related to manufacturing and warehousing. Within these sectors, there are opportunities to expand and diversify into new or growing areas. In manufacturing, Auburn has a robust supply chain that supports the aerospace sector. These specializations and capabilities can support a wide range of innovative manufacturers. Auburn has the elements to become a regional hub for innovative “makers”, but must work to build its reputation in this regard. Auburn is the heart of the regional distribution network. While warehousing uses are the dominant use currently, there is an opportunity for Auburn to deliberately grow its base of employers that support transportation and warehousing such as third-party logistics providers, wholesale trade agents and brokers, and transportation arrangement. The City’s desire to increase its base of office-using businesses will require a degree of “market-making” as Auburn has a very small existing office market. The Sounder Station and the associated Transit-Oriented Development as well as the future redevelopment of the Valley 6 Drive-In are Auburn’s key office opportunities. Finally, targeting retailers and restaurants will continue to be an opportunity for Auburn and an important component of diversifying and growing Auburn’s tax base. Retail recruitment will also play a vital role in the revitalization of Downtown and Auburn Way South and in enhancing Auburn’s quality of place, in general. RES.B Page 144 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 11 Marketing Tools. Websites are the single most important marketing and outreach tool in economic development. The City of Auburn’s primary online presence for economic development is through www.auburnwa.gov. The Economic Development Division is under the “Doing Business” section and reflects the consistent look and feel of the City’s website. While most all of the useful elements of an economic development website are there in www.auburnwa.gov/doing_business/economic_development.htm, it is difficult to find certain key information or requires many clicks to find it. Reorganizing and optimizing the City’s economic development online presence will improve the effectiveness of Auburn’s economic development marketing and outreach efforts. Organizational Capacity. The City of Auburn’s Economic Development Division is a division of the Administration Department and is staffed by an economic development manager with a part-time contractor. Recently, a real estate analyst was transferred from Facilities to the Economic Development Division and a part-time tourism coordinator has been hired to support tourism promotion. This lean division is supported by many contributions of other departments, most directly by the Community Development and Public Works Department and the Finance Department. Under this current organizational structure, the City does not have excess capacity to implement a strategic plan or staff a proactive, entrepreneurial economic development initiative. Many peer cities both inside and outside of the region staff their departments with three to four economic development professionals or specialists and additional administrative support as needed. THE RESPONSE The City’s decision to develop and adopt a ten-year economic development strategic plan speaks to its acknowledgement that shaping Auburn’s future requires a formalized economic development program. Such programs have systematic processes for generating leads, managing prospects and projects, and providing a clear set of value-added services. Leads are generated through marketing and outreach efforts, and relationship management is an essential building block of a high-quality lead generation network. Leads are converted to prospects and projects through effective sales, and the depth of knowledge from the findings of this body of work informs and enhances the economic development team’s ability to articulate Auburn’s value proposition. In addition, forward-looking economic development programs build in mechanisms for identifying transformative projects that, if realized, would attract additional private investment to the City. Finally, the most successful programs recognize that strong partnerships greatly increase the impact and reach of their programs. All of these aspects of economic development programs are grouped into the strategic plan’s first focus area: Delivery. Sales and marketing of any kind requires a clearly defined “product.” In economic development, the “product” is the real estate as well as the assets, amenities, business climate, and other factors that influence the attractiveness of the real estate. Auburn’s greatest strength is its access to a large labor pool. The City can make sure that its workforce strengths are documented and packaged well as a means of product enhancement. One of Auburn’s primary constraints is the lack of available buildings and sites that are “deal-ready.” This constraint is notable because businesses cannot expand or locate where there are no appropriate sites. Generating leads is futile if there is not suitable real estate. Auburn’s business and regulatory climate is not a constraint, but there are a few changes and enhancements that could make it even better. Auburn can directly influence its supply of available sites and buildings and can ensure that its business climate is competitive and supportive of responsible business growth. Strategies related to product enhancement and development are grouped into the plan’s second focus area: Product. RES.B Page 145 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 12 Quality of place is important to both business and talent retention and attraction. A community’s assets and amenities are central to its quality of place and define the community’s character. A programmatic process for defining target areas and making strategic investments can have a transformative impact on a community’s quality of place. Downtown Auburn and Auburn Way South are the two areas that stakeholders prioritized for investment. Better connecting these and other assets can be a way of building critical mass that can propel Auburn to the tipping point. Strategies pertaining to enhancing Auburn’s quality of place are grouped into the third focus area: Place. A clear barrier to Auburn’s success that came across through stakeholder input is the perception that internal and external audiences hold of the City. This perception can be influenced through branding, consistent messaging, as well as social media and public relations campaigns. More targeted outreach is needed to change perceptions and build awareness of Auburn among the regional real estate community and companies in the target sectors. Strategies to change this perception and reach target audiences are grouped in the fourth focus area: Messaging. These four focus areas define the structure of the plan. Each area was chosen for its potential contribution to moving Auburn forward towards its vision for the future. Each area also directly addresses an existing barrier to economic development and positions Auburn for future success. STRATEGIC FRAMEWORK: FOCUS AREAS 1. Delivery: A comprehensive service delivery system that actively identifies and advances economic development opportunities in Auburn 2. Product: An inventory of sites, a business climate, and a physical environment that foster business growth and ensure a resilient employment base 3. Place: Attractive gateways, impression corridors, and destinations that define the character of Auburn 4. Messaging: A coordinated marketing and branding campaign that elevates Auburn’s reputation among internal and external audiences THE REPORT On the following pages, we define discuss Auburn’s economic development vision. Then, we present each focus area with the strategies, actions, projects, and partnerships that support it. After discussing the recommended strategies, we propose responsible parties and a timeline for implementation as well as an organizational structure and resource plan for the City to expand its capacity dedicated to economic development. The detailed findings and deliverables associated with each task in the scope of work are contained in a separate report of supporting documentation and analysis. Within this section of appendices are additional implementation tools to support the economic development team, such as strategic considerations in the target industry profiles and retail market analysis. There is also additional information that can and should inform how the economic development team positions Auburn in its marketing and outreach activities. The wealth of information contained in these pages should be a valuable resource to the implementation team. RES.B Page 146 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 13 VISION & GUIDING PRINCIPLES A clear vision and guiding principles provide an overarching direction for strategic plans. In 2015, Auburn set out a vision for itself in the Comprehensive Plan. This vision was established through the Imagine Auburn visioning exercise and developed in the context of the Washington State Growth Management Act, King and Pierce County Planning Policies, and the Puget Sound Regional Council’s VISION 2040. The vision that emerged was: “In 2035, Auburn is a city of connected and cherished places, from a vibrant downtown to quiet open spaces and everything in between, where a community of healthy, diverse, and engaged people live, work, visit, and thrive.” Along with this statement, the Comprehensive Plan set out a series of values that encapsulated the vision and formed an evaluation and decision-making framework for future city policies, regulations, initiatives, and investments. Each of these values is defined in detail in the Comprehensive Plan, which provides a very useful reference point for this economic development strategic plan. The value and vision from the Comprehensive Plan provides a clear guide for economic development activities over the next ten years and beyond. Auburn’s seven value statements are: 1. Character. Developing and preserving attractive and interesting places where people want to be. 2. Wellness. Promoting community-wide health and safety wellness. 3. Service. Providing transparent government service. 4. Economy. Encouraging a diverse and thriving marketplace for consumers and businesses. 5. Celebration. Celebrating our diverse cultures, heritage, and community. 6. Environment. Stewarding our environment. 7. Sustainability. Creating a sustainable future for our community. In addition to these value statements, the “Economy” value statement and description is further fleshed out with the articulation of a vision statement in the economic development element of the Comprehensive Plan. This vision statement is: “Auburn is a community that has a robust and diverse economy where businesses seek to locate, people desire to visit, and residents enjoy a range of commercial offerings. Businesses that locate in Auburn find it easy to enter the marketplace, encounter ideal conditions for their long-term success, and become rooted and involved in the community. Visitors continue to return to Auburn because of its high-quality natural resources, parks, public spaces, and commercial attractions. Residents choose to live in Auburn because of the diverse, family wage employment opportunities and access to entertainment, restaurant, retail and services.” The vision above paints a picture of a vibrant commercial, employment, entertainment, and recreation center that has a regional draw. It is a magnet for businesses, talent, and visitors due to its high quality of place, diverse employment opportunities, and various entertainment and recreation options. RES.B Page 147 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 14 It is with this vision and values in mind that the strategic planning process of Auburn’s ten-year economic development plan was defined. The process was driven by the understanding that achieving Auburn’s vision will take a deliberate, sustained, and strategic approach to economic development. This planning effort builds off the Imagine Auburn initiative by adopting a simplified economic development vision and guiding principles that are consistent with the overarching vision laid out in the Comprehensive Plan, but narrower in scope and specific to this planning effort. This statement and principles will guide the economic development strategy and will help the City articulate its competitive advantages and its intentions. The framework that encompasses the City’s economic development approach is presented below. VISION Auburn is the City that Works GUIDING PRINCIPLES 1. A vibrant, connected, healthy community for residents to live, visitors to enjoy, and businesses to thrive 2. A robust, diverse employment base that provides good economic opportunities for residents and supports high-quality city services 3. A strong educational system that prepares residents with skills that Auburn-based employers seek This simplified economic development vision is an acknowledgement of Auburn’s heritage as an agricultural and manufacturing center and to the strong work ethic of its residents. It also speaks to the City’s willingness to partner with the private sector to achieve its vision. The guiding principles define the City’s goals for its community, employment base, and educational system. The goal for the community is to be vibrant, connected, and healthy, in terms of both its residents and its physical environment. The employment base is to be diverse, resilient, and sustainable, supporting both current and future residents of Auburn. The educational system is aligned with employers’ needs, with a strong workforce development component and a K-12 system that prepares students with 21st Century skills. This vision and these guiding principles form the foundation of Auburn’s Ten-Year Economic Development Strategic Plan. RES.B Page 148 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 15 A comprehensive service delivery system that actively identifies and advances economic development opportunities in Auburn Auburn is fortunate to be in the path of growth, and, in the past years, the City has successfully set the stage for increased investment. As a result, the interest in and momentum around Auburn have been increasing and continue to build. In 2014, Auburn’s population was almost 76,000. By 2020, Esri, a leading demographic data provider, estimates that Auburn’s population will be nearly 85,000. With the cost of housing continuing to climb throughout the Seattle region, Auburn and its South Sound peers will likely see population growth accelerate even more than these conservative projections predict. Currently, the City is a net importer of labor with more workers commuting to Auburn for jobs each day than leaving. As new residents move into the community, Auburn’s economic development activities will influence whether there are job opportunities for these new residents in Auburn or whether they will commute outside the city limits for work. According to EMSI, a leading economic and labor market data provider, the City is projected to add over 6,400 jobs over the next 10 years. This number is also likely conservative. The actual number and composition of jobs could change dramatically with a targeted, entrepreneurial economic development program. The City’s current economic development resources and structure allow the City to be responsive to opportunities that come its way. It has a proven track record of dedication and creativity that has yielded impressive results to date. However, the current program does not provide the capacity needed for the City to be proactive in seeking out the opportunities that it wants. To transform Auburn’s economic development delivery system to be both responsive and proactive, the City will need to augment its program with additional resources and stronger partnerships. This will position the City to better support the attraction, formation, retention, and expansion of businesses that form the economic backbone of the community and provide more and better economic opportunities for Auburn residents. DELIVERY FOCUS AREA 1. PRIORITY PROJECTS  New & Improved Website (1.1)  Structure for Identifying and Realizing Catalyst Projects (1.4) FIGURE 1. CITY OF AUBURN, WA ANNUAL ESTIMATES JULY 1 OF EACH YEAR Source: The Washington State Office of Financial Management, Forecasting and Research Division. Projections via Esri. 47.5 75.5 84.6 0 10 20 30 40 50 60 70 80 90 200520062007200820092010201120122013201420152020THOUSANDSRES.B Page 149 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 16 1.1. Value-Added Services. Clearly define the services that the City of Auburn provides to businesses both directly and through partnerships. The list below lays out the value-added services that the City and its partners can or do provide existing businesses and businesses looking to relocate to Auburn. The City’s economic development webpage should be organized around these areas. (See Appendix G for more recommendations on the website) Value-Added Service Area Supporting Actions RELOCATION ASSISTANCE: Activities include: site selection, development services, incentives 1.1.1. Utilize the IPZ Taskforce as TEAM AUBURN to help sell Auburn to prospects. Organize regular meetings of these team members to keep them informed of the prospect pipeline, meetings with prospects, and potential recruitment trips. Educate the team members on Auburn’s value proposition and the associated messaging to present a unified voice to prospects. 1.1.2. Continue to assist prospects in finding suitable sites, navigating the development process in Auburn, and securing available incentives from local and state sources SMALL BUSINESS ASSISTANCE: Activities include: incubator management, 3No Networking, workshops and technical assistance, access to capital 1.1.3. Launch and manage a business incubator 1.1.4. Continue to organize weekly 3No Networking at Auburn-based businesses 1.1.5. Continue to partner with the Small Business Assistance Center at Green River College on technical assistance and workshops for small businesses 1.1.6. Establish partnerships with area SBA lenders, community development financial institutions, and other nonprofit microlenders to provide better access to capital for businesses that do not qualify for bank financing 1.1.7. Assemble a list of revolving loan funds and other financing resources that are available to Auburn- based businesses (a good start can be found here: http://www.oria.wa.gov/?pageid=737) RES.B Page 150 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 17 Value-Added Service Area Supporting Actions WORKFORCE DEVELOPMENT: Activities include: custom training, talent pipeline partnerships 1.1.8. Continue to partner with Green River College and WorkSource to provide customized training 1.1.9. Strengthen the partnership between Auburn Public Schools, Green River College, and Auburn’s business community by organizing industry sector partnerships that explore workforce demand, critical occupations, and available curricula INFORMATION RESOURCES AND PUBLICATIONS: Activities include: demographic and economic data, real estate market information, retail trade area data, supplier database, investment opportunities 1.1.10. Maintain a catalog of information and resources relevant to economic development on the City’s webpage 1.1.11. Employ data such as CoStar, the King County Assessor database, and City-managed development tracking datasets to establish systems that regularly collect and visualize market trends, including new development, asking rents, vacancy rates, absorption, sales activity, and sales and leasing activity.Update and review this data at least quarterly and distribute the findings to stakeholders as part of the effort to espouse “Why Auburn” to the regional real estate community 1.1.12. Update retail trade area data on an annual basis and make this accessible to stakeholders and partners electronically 1.1.13. Provide profiles on the City’s target investment areas (See Strategy 3.1). These should include a map, basic information, public investment projects, as well as resources and tools available for private projects 1.2. Local Business Visitation. Formalize a business visitation program in partnership with the Chamber of Commerce to track trends among Auburn employers and identify any businesses in need of assistance 1.2.1. Establish a visitation protocol, a list of information to be collected during each visit, and set a goal how many businesses each year. Visiting four to eight businesses each month is a reasonable goal that would allow the City to reach a critical mass of employers. 1.2.2. Create a database of Auburn-based employers with the City’s business license database, paying particular attention to the inclusion of employers in key economic drivers (business & professional services, manufacturing, healthcare, distribution) RES.B Page 151 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 18 1.2.3. Using CoStar or other sources, identify employers who have leases that will be expiring in the next two or three years to be prioritized for visitations 1.2.4. Maintain detailed notes on visits in the economic development project database to document the relationship over time 1.2.5. Compile information collected from visits to track trends among employers and distribute these findings to stakeholders, such as local and regional economic development partners, the mayor, the city council, and city department heads, in an annual report and presentation 1.3. Business Recruitment. Recruit new businesses, including retail, to Auburn to provide better economic opportunities and enhance Auburn’s quality of place 1.3.1. Strengthen relationships with brokers, developers, and industry associations in the metro area and create an education outreach program targeted to these groups to ensure that Auburn stays top of mind for business relocation. NAIOP (Commercial Real Estate Development Association), International Council of Shopping Centers (ICSC), and Urban Land Institute (ULI) are important organizations in which to be actively involved. In addition, industry associations, such as the Pacific Northwest Aerospace Alliance, the Aerospace Futures Alliance and the Center for Advanced Manufacturing Puget Sound, are also good vehicles for cultivating strong relationships. 1.3.2. Cultivate strong partnerships with the Economic Development Council of Seattle & King County, the Economic RETAIL RECRUITMENT Retail recruitment will be an important part of Auburn’s business attraction activities. An expanded and more robust retail sector not only generates sales tax for the City but also augments the City’s quality of place by providing additional amenities. Thus, retail recruitment reinforces the City’s efforts to diversify the tax base, attract new employers and residents, as well as revitalize target areas such as downtown and Auburn Way South. As part of this strategic planning process, the Retail Coach (TRC) defined Auburn’s primary retail trade area and retail trade area. For each area, TRC summarized key demographic characteristics, examined the retail opportunities, and established the major psychographic profiles. These analyses are provided both online and in Appendix C. TRC then identified target retailers, created custom retailer feasibility packages for each retailer, and sent these packages to the real estate departments of each of the retailers. Any leads that came about from this outreach were referred to the City’s Economic Development Office. In addition, TRC created retail market profiles that the City and its partners can use to reach out to additional retailers. Finally, TRC made recommendations on how the City can best approach retail recruitment: 1. Continue to focus on the recruitment of developers, as they tend to drive much of the retail development in Washington. 2. Attend ICSC RECON every year as well as ICSC regional events taking place in Washington, Oregon, and California throughout the year. 3. Sell Auburn to retailers and developers as a Primary Trade Area population of 169,377 and not as a community population. For those larger and destination retailers, use the Retail Trade Area population of 525,778. 4. Continue to use the Cell Phone Shopper Analysis as a tool to combat retailers’ perceptions of store spacing issues. 5. Build awareness of Auburn among national retailers by advertising in publications such as the Dallas Business Journal, New York Business Journal, Shopping Centers Today, etc. 6. Maintain awareness of retail incentives being offered by other communities in the region and consider using similar incentives sparingly in cases that would significantly expand the retail trade area or generate a great deal of new tax revenue. RES.B Page 152 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 19 Development Board for Tacoma-Pierce County, the Washington State Department of Commerce, the Port of Seattle, the Northwest Seaport Alliance, the Greater Seattle Trade Development Alliance, and Challenge Seattle to identify co-marketing opportunities and joint trade missions in order to strengthen Auburn’s lead generation network 1.3.3. Join the coalition of local governments and organizations that represent the communities of the greater South Sound region (from Des Moines south to Olympia). This effort is in the process of being formed and will be centered on growing the South Sound economy and addressing unique economic challenges and opportunities 1.3.4. During business visitations (see Strategy 1.2), ensure that Auburn-based businesses are aware of the value-added services that the City provides and have information on the different economic development initiatives. This group of business leaders can serve as an indirect salesforce (e.g. they can generate leads among their peers) if they are saying positive things about Auburn’s business climate and economic development opportunities 1.3.5. Cultivate relationships among promising young companies across the metro who are currently involved in incubator or accelerator programs. Market Auburn as an inviting “landing pad” where they can grow in a supportive environment that is well-located, accessible, and affordable 1.3.6. Actively prospect among companies in target industries (See Appendix F) 1.4. Catalyst Projects. Identify and advance catalyst projects that will facilitate Auburn’s evolution 1.4.1. Work with city council and department heads to identify and prioritize potential catalyst projects, ensuring that the projects also align with all department activities. The Livable City Year provides an opportunity to vet projects in 2016-17 and can be a starting point for this project list 1.4.2. Hold quarterly work sessions with this group to learn from guest speakers about what other communities are doing and to brainstorm what Auburn could do. Guests could include staff from other cities, urban planners, or economic developers that could share their experiences with the group 1.4.3. From the project list generated in the quarterly sessions, prioritize projects based on feasibility, expense, time frame, impact, and alignment with Auburn’s focus areas 1.4.4. For the two or three top ranked projects, attain formal approval from department heads and the city council to move them forward 1.4.5. Create project teams for each approved project of three to five individuals responsible for implementation 1.4.6. Maintain a tool that tracks progress on project implementation, and report progress and outcomes at the quarterly meetings 1.4.7. Build awareness of these projects and report the successful implementatation of any projects through the public relations campaign (See Strategy 4.4) RES.B Page 153 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 20 1.5. Strategic Relationships. Foster relationships with key entities that support economic activity in the City. These include: 1.5.1. Puget Sound Energy: Energy availability and cost to deliver are common questions from businesses looking to locate in an area. The City should be able to connect prospective businesses with the appropriate PSE staffer to have questions quickly addressed. The City should be aware of planned improvements to the system 1.5.2. Muckleshoot Tribe: The Tribe is a major property owner in the City and has shared its economic development goals. The City should work together with the Tribe to ensure that planning activities with overlapping interests are cooperatively discussed and considered 1.5.3. Port of Seattle: As part of the Port’s Century Agenda, it is seeking to help add 100,000 jobs in the next 100 years. To do this, it has stated an interest in assisting cities with unlocking industrial property and positioning it for redevelopment. Land around the airport and in northwest Auburn that is challenged with wetlands may be opportunity areas 1.5.4. King County: Work with the County on improving the stormwater function in the area west of SR 167 1.5.5. Army Corps of Engineers: Establishing a working relationship with the ACE regarding wetland delineation and mitigation strategies is important for proactively assisting developers seeking to improve land with wetlands. The early involvement of the ACE should improve permitting efficiency 1.5.6. Transportation: Engage with agencies that support multimodal transportation infrastructure including PSRC, Sound Transit, King County Metro, and Pierce Transit. The City should continue to advocate for funding to support transportation improvements RES.B Page 154 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 21 An inventory of sites, a business climate, and a physical environment that foster business growth and ensure a resilient employment base Economic development takes place in a competitive environment. This competition often starts on a global scale and continues down to specific sites as companies filter out possibilities based on their operational needs. Area Development’s 2015 Survey of Corporate Executives ranked respondents’ top site selection criteria. The top ten criteria are presented in Figure 2. Auburn’s primary strength, and the strength of the South Sound region, is its access to skilled labor. In the 145 zip codes that are within about a 45-minute drive of Auburn, there are 1.5 million workers. Over 800,000 of these workers fall into the “middle skills” segment of workers. In fact, Auburn has very good access to hard-to-find skillsets such as customer service representatives, truck drivers, registered nurses, maintenance and repair workers, and various types of technicians that support manufacturing operations. Auburn’s primary constraint is the availability of sites and buildings with vacancy. This constraint is important because a community’s inventory of sites and buildings determines whether or not it can enter into the competition for business investment. The majority of the other site selection factors distinguish regions across the country from one another. In that regard, Auburn is fortunate to be located in a region that is a magnet for talent and investment, which provides it with an advantage over communities of similar size in less competitive regions. Within the Seattle–Tacoma Metro area, the competition to attract businesses is stiff, and communities must differentiate themselves to standout from their peers. At this level, local incentives, business climate, available amenities, reputation, and relationships often play a large role in determining where a project lands. With a concentrated effort to make enhancements in each of these areas, Auburn can significantly improve its competitive positioning among its regional peers. PRODUCT FOCUS AREA 2. PRIORITY PROJECTS  Labor Profile (2.1)  Deal-Ready Site Inventory (2.2) FIGURE 2. TOP SITE SELECTION FACTORS FIRST QUARTER 2016 FACTOR AUBURN RATING 1. Availability of skilled labor ● 2. Highway accessibility ◐ 3. Quality of life ◐ 4. Occupancy or construction costs (Seattle MSA) ◕ 5. Available buildings ◔ 6. Labor costs (Seattle MSA) ◔ 7. Corporate tax rate ◐ 8. Proximity to major markets ● 9. State and local incentives ◐ 10. Energy availability and costs ◐ Scale: ● = Excellent; ◌ = Poor Source: Area Development’s Survey of Corporate Executives, TIP Strategies Research. RES.B Page 155 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 22 2.1. Labor Market Information. Design and maintain information resources that demonstrate Auburn’s strength in terms of its access to skilled labor 2.1.1. Maintain up-to-date labor market information on Auburn and its laborshed and make this information available on the economic development website as well as in a report format. This information can be obtained through paid data sources such as EMSI or from free sources such as the Employment Security Department, the Bureau of Labor Statistics, and the Census Bureau’s On the Map application 2.1.2. For target industries, create profiles that highlight the availability of relevant occupations as well as training programs and other workforce development resources 2.2. Deal-Ready Sites. Ensure a supply of deal- ready sites to accommodate new business investment in Auburn 2.2.1. Maintain an inventory of Auburn’s most important parcels and sites – those with high-impact development or redevelopment potential or that are located in strategic areas. 2.2.2. Among the eight sub-areas identified in the Comprehensive Plan, focus on the airport area, Emerald Downs, the GSA Property, and Northwest Auburn as key planning areas with high commercial development potential. Appendix F details industries that would be a good fit for Auburn and how Auburn and these planning areas should be positioned to attract these industries 2.2.3. Work with relevant land owners or brokers to package these sites with highly informative information packets (electronic) (see Site Packaging to the right) and actively promote these sites to prospective businesses and regional brokers 2.2.4. Encourage the land owner and broker to list the site on the City’s inventory of buildings and sites SITE PACKAGING In the past five years, there has been a proliferation of site certification programs across the US. To be certified, landowners collect vital information and conduct some of the preliminary studies necessary for site development. While the mechanics of these programs vary widely from place to place, the primary value of the certification programs is the depth of information available on these key sites. An inventory of sites with this kind of information available can provide a community an edge over competition. Below is a list of the information that should be collected on key sites, to the extent that it is available:  Ownership status  Description of parcel(s), including current uses, zoning, special zones, and current assessment information  Boundary survey  Phase I environment audit/assessment  Geo-technical studies  Topographical analysis and maps  Aerial photography  Engineered site development plans  Detailed analysis of site development cost  Complete information on pricing  Utility services, including types of services and name of providers  Industrial power quality  Transportation access RES.B Page 156 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 23 2.2.5. Meet with institutional investors and owners of underperforming properties to make the case for additional investment to increase their yields 2.2.6. Facilitate the conversion of industrial buildings that are currently used for warehousing and distribution to manufacturing or other sales tax generating uses by identifying and tracking conversion opportunities based on:  Physical building characteristics;  Current ownership (proactive outreach to understand motivations and offer support);  Current tenancy;  Anticipated utility undergrounding requirements; and  Whether land area can support a manufacturing parking ratio FIGURE 3. INDUSTRIAL AND OFFICE DEVELOPMENT OPPORTUNITY AREAS RES.B Page 157 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 24 2.2.7. Work with land owners to facilitate conversion opportunities, redevelopment of high-potential parcels, or the assembly of multiple parcels by addressing barriers where possible and connect them with local developers and real estate investors who seek these kinds of opportunities 2.2.8. Maintain a database, as part of the economic development project database, of all known businesses seeking additional space in the region to make connections with property owners in Auburn as space becomes available 2.2.9. Work with the ACE and King County to identify and implement strategies that may unlock wetland/storm water impaired areas of the City where appropriate. 2.2.10. Evaluate the feasibility of annexing some or all of the areas adjacent to the City that are in unincorporated King County as a means of improving Auburn’s commercial land base. Two of the three areas highlighted in Figure 3 are located within the urban growth area (UGA), and one is located outside the UGA. 2.3. Economic Development Toolbox. Create a robust toolbox to influence economic development outcomes 2.3.1. Catalog all tools available. The Municipal Research and Services Center (MRSC) has a good database: http://mrsc.org/Home/Explore-Topics/Economic-Development/Financing-Economic- Development/Funding-Sources-for-Economic-Development-Financial.aspx. For each tool, summarize how it works and how can be used 2.3.2. Consider and evaluate the feasibility of the following programs:  As part of the pending 2017/2018 DUC code updates, the permitting of taller buildings that could provide structured parking in the building podium and improve the likelihood of project feasibility  A property tax abatement program similar to the Multifamily Tax Exemption for properties looking to convert existing warehouses to manufacturing uses. This would need to be piloted with approval from the State Legislature  A Landscape Conservation and Local Infrastructure Program (LCLIP), which allows the City to access County property tax revenues to support needed infrastructure improvements  Public Development Authorities (PDA) for areas such as the airport that may leverage revenue bonds.  New Market Tax Credits (NMTC) for commercial projects (nmtccoalition.org)  Community Economic Revitalization Board (CERB) grants for transportation projects 2.3.3. Collect examples of communities who use these tools in an innovative way to support projects that advance their economic development goals and share these with relevant City stakeholders 2.3.4. Ensure that city council and City staff are well-informed of the type and use of financing tools available to municipalities RES.B Page 158 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 25 2.3.5. Establish a policy that sets out the City’s goals for the use of these various tools as well as a process and framework for evaluating projects 2.3.6. Adopt the guideline for effective and responsible incentives use (See guidelines listed in call-out) 2.3.7. Adopt a comprehensive fiscal and economic impact tool to measure the return on investment for projects being evaluated. Impact Datasource or InformAnalytics are two examples 2.3.8. Create content for the City’s website and for brochures that allows owners and developers to understand the tools and programs that may be available for their project and how it relates to their pro forma 2.3.9. Develop a clear flowchart that establishes the process that owners and developers will need to follow to obtain assistance in order to set realistic expectations 2.4. Continuous Process Improvement. Evaluate and continue to improve the City’s land use and building permit process and performance. Projects that require key decisions from multiple departments have reportedly been slowed by an inefficient decision making process. To address this: 2.4.1. Continue to employ the permitting performance tracking system to understand performance. This should track the progress of a permit and allow the applicant to know in real time which department(s) are reviewing the permit and when a decision is to be made. 2.4.2. Develop a regular report based on information from the tracking system that allows the development community and city staff to understand how efficiently permits are being processed. 2.4.3. Create a map-based report with supporting tables that tracks all major commercial developments in the City including new construction and major renovations. This should be updated quarterly and be made available to the public. GUIDELINES FOR EFFECTIVE AND RESPONSIBLE INCENTIVE USE  Incentives should be aligned with the city’s economic development goals.  Upfront data and analysis can reduce risk and improve outcomes.  Due diligence that includes background research on applicants and business case analysis for projects seeking major discretionary incentives help communities make good decisions.  Evaluating project attributes relative to economic development goals and quantifying fiscal and economic impacts of proposed investments enable economic development organizations to determine whether projects can generate net benefits for the community.  Good analysis can help explain and build support for decisions.  Define performance requirements and monitor compliance with performance agreements to assess whether project milestones were reached.  Be prepared to report on who is receiving incentives, how much is being spent, and the results of that spending.  Establish policies to protect the community in the case of non-performance.  Regularly (every three to five years) evaluate the city’s portfolio of incentives to understand which programs are most helpful in achieving economic development goals. Source: www.smartincentives.org. RES.B Page 159 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 26 2.4.4. Consider reviewing the fee structure associated with permit reviews. Currently the fee covers three review iterations. A stepped fee structure that increases with each review would create an incentive for the applicants to thoroughly incorporate code requirements prior to plan submittal. 2.4.5. Establish precedents log that may be used for future staff to reference how certain situations that share similar conditions were addressed previously. This would create a mechanism to retain institutional knowledge and serve as reference for staff to provide developers and their design team with a clearer idea as to how react to its proposal.. This should track the progress of a permit and allow the applicant to know in real time which department(s) are reviewing the permit and when a decision is to be made. 2.5. Zoning Modification. Reevaluate zoning districts and modify certain aspects of the code 2.5.1. Expand the Downtown Urban Center (DUC) zoning district to include the logical adjacent areas. To enact this change, cooperation with the Puget Sound Regional Council (PSRC) will be necessary. 2.5.2. Consider zoning modifications related to height and parking discussed in Appendix B to improve project feasibility 2.5.3. Add flexibility to the industrial land use code to allow for more yard storage and permitted uses such as building contractors in districts that are currently more restrictive. Such added flexibility could better support desirable business activity without undermining the intent of the original restriction. See Appendix B for more information 2.5.4. Consider an overlay on the Landing Field (LF) zone and adjacent commercial properties to permit airside supportive land uses around the airport 2.6. Cost Comparison. Annually compare Auburn’s development/impact fees, tax rates, and rebate programs to peers 2.6.1. Conduct research on regional peers to identify any rate changes or fee changes and record in a business climate database, which can be created with information from this strategic plan 2.6.2. Document any significant changes and distribute a summary report to relevant department heads 2.6.3. Work collectively to resolve any issues revealed by this research exercise 2.6.4. Publicize the areas where Auburn stands out among its peer group to the regional real estate community RES.B Page 160 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 27 Attractive gateways, impression corridors, and destinations that define the character of Auburn Auburn’s Comprehensive Plan designated special planning areas—districts, sub-areas, impression corridors, and gateways—because they warrant additional emphasis in planning, investments, and policy development. Prioritizing the underperforming special planning areas for additional investment and coordinating these investments with other economic development activities can hasten the transformation of these areas into community assets. Together, these areas define rich character areas in Auburn and play a large role in shaping people’s perceptions of the City. Auburn is also fortunate to have an array of destinations that draw visitors to Auburn from across the region, including an authentic downtown and a number of different recreational amenities. The map in Figure 4 lists the various assets and amenities. These regional amenities enhance the quality of life of Auburn residents and attract visitors to Auburn. However, many of these special planning areas and amenities lack connectivity, both socially and physically. Working to connect these different areas and amenities and adding to the inventory of destinations could greatly enhance Auburn’s reputation in the regional tourism and real estate markets. FIGURE 4. AUBURN ASSET/CONTEXT MAP Source: Heartland Research. PLACE FOCUS AREA 3. PRIORITY PROJECTS  Downtown Revitalization (3.3)  Target Investment Program (3.1) RES.B Page 161 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 28 3.1. Strategic Investment. Create a target investment program to guide strategic infrastructure investments that enhance Auburn’s economic development opportunities. 3.1.1. Create a cross-departmental forum for identifying and prioritizing areas for targeted infrastructure investment 3.1.2. Evaluate market-challenged areas for their potential to attract private investment through targeted public investment projects and designate two or three areas as “Target Investment Areas” based on the criteria below:  Does this (or could this) area function as a vital gateway, impression corridor, or destination for Auburn?  Are there sites in the area with high redevelopment potential?  Are there barriers to redevelopment that can be addressed by infrastructure investments?  Would investment in the area yield net benefits to Auburn (cost-benefit analysis)? 3.1.3. Align the City’s resources, both planning and programmatic, around the Target Investment Areas to ensure they reinforce capital investments 3.1.4. Tailor a suite of services and/or incentives that is available to support private sector projects in the Target Investment Areas in order to overcome real or perceived market gaps 3.1.5. Package the information and actively market the areas to potential investors and other stakeholders (See Strategy 2.2.1) SPOKANE’S TARGET INVESTMENT PROGRAM Adopted in 2011 and further refined in 2013, the Spokane Targeted Investment Program seeks to align public investments in economic development, neighborhood planning, community development, and capital improvements with private investments. The goal of this program is to increase the impact of the City’s investments, resulting in more opportunities for business growth and better residential living environments. The strategy is designed around four pillars: Revitalization Planning: Implementing the City’s Comprehensive Plan, identifying neighborhood opportunity areas, and aligning different implementation tools; Targeted Area Development: Creating tailored investment strategies, integrating plans and projects from different City departments, utilizing local nonprofit support, and creating market-driven economic opportunities; Financial Incentive Planning: Compiling a comprehensive list of available incentives, aligning growth strategies, stressing the “Window of Opportunity” to investors, and creating sustainable and dedicated funding sources for target areas; and, Economic Development Assistance: Packaging incentives and project portfolios for interested applicants, marketing and outreach activities, and responding to project and stakeholder needs. The program was initially piloted on two target areas. In 2015, it was expanded to six target areas. To staff the program, there is one incentives expert and a designated expert for each of the target areas. Each area has a separate webpage with news and announcements, project descriptions and maps, and a detailed prospectus. In addition to its own resources, the City has successfully secured a number of grants to help address some of the challenges in the targeted areas, including brownfield planning and redevelopment, transportation, and other technical assistance. Through various outreach activities, Spokane’s city staff has promoted awareness of the program and the special incentives available. As a result, there has been an uptick in pre-development applications in certain target areas and increased transactions and building rehabilitation in others. In one of the areas, the business association has requested the creation of a Business Improvement District to support the city’s efforts in their area. RES.B Page 162 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 29 3.2. Regional Transportation. Maintain and enhance regional transportation connections to ensure ease of travel to, from, and within Auburn 3.2.1. Prioritize improvements on and around Auburn Way North and Auburn Way South and a better connection from SR-167 connection to downtown 3.2.2. Continue to partner with Sound Transit to secure adequate parking around the Sounder station as well as convenient service and better multi-modal connectivity to downtown and other Auburn destinations 3.2.3. Continue to improve the Auburn Municipal Airport by conducting a needs assessment of businesses located in Auburn and in the immediate region to understand whether they could use an enhanced airport for business purposes and what improvements would be needed 3.3. Downtown Revitalization. Continue to invest in downtown revitalization 3.3.1. Optimize regional multimodal downtown connectivity both to and from the City to ease travel times and improve the downtown experience 3.3.2. Re-evaluate the Business Improvement Area to look at how ratepayers are assessed, who is being assessed, and how the funds can best be used. This is a valuable tool for downtown revitalization but it is currently being underutilized 3.3.3. Develop an investment brochure (electronic and print) for downtown that features a map of the Downtown Urban Center; key data and statistics; overview of public investment; available incentives; photographs that highlight new investment and potential investments; and a map with available parcels 3.3.4. Publicize a comprehensive list of incentives available to support projects in the Downtown Urban Center both in the brochure and on the City’s website. These include the following benefits: Downtown-Specific  Multi-Family Tax Exemptions  Storefront Improvement Program DOWNTOWN AUBURN REVITALIZATION Downtown Auburn is one of the City’s greatest assets as few suburban cities have an authentic, historic downtown. Over the past six years, the City has invested millions of dollars in projects to set the stage for increased growth downtown. As a result, a number of large scale projects have been completed or are underway, including the Trek Apartments, Merrill Gardens, and the expansion of Multicare. The core of Main Street, however, remains an underperforming diamond in the rough. To address this challenge, revitalization efforts should focus on the section of Main Street from Division Street to E Street SE. This corridor should have a carefully curated tenant mix that is anchored by deliberately spaced businesses. These anchor tenants should generate foot traffic for the other storefronts in between them. Together, the tenant mix of Main Street Auburn should create a unique retail and entertainment destination that supports surrounding employers and housing developments and draws people downtown. While events can help raise awareness of downtown’s businesses, it will have more impact at this stage of downtown revitalization to work directly with building owners and brokers to target specific businesses in order to enhance the area’s tenant mix. RES.B Page 163 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 30  Downtown Zoning and Design Standards  A Comprehensive Environmental Impact Review  Excess Stormwater Capacity City-Wide  Deferred Impact Fee and System Development Charges  Construction Sales Tax Exemption  Small Business Assistance Program  New Market Tax Credits (for qualifying Census tracts)  No Business and Operations Tax 3.3.5. Continue to partner with the Auburn Downtown Association to support existing small businesses downtown and to recruit targeted retailers and tenants downtown 3.3.6. Continue to actively seek investors and developers for downtown projects 3.3.7. Approach successful restauranteurs and local retailers both in Auburn and the Greater Seattle region to ask if they would be interested in expanding downtown 3.4. Auburn Way South Revitalization. Designate Auburn Way South as an additional Targeted Investment Area 3.4.1. Complete the Auburn Way South Corridor Plan 3.4.2. Develop an investment brochure (electronic and print) for Auburn Way South to highlight the opportunities that are identified in the corridor plan. Include a map; renderings of potential projects; key data and statistics; and an overview of public investment and available programs 3.4.3. Strengthen the City’s partnership with the Muckleshoot tribe around the revitalization of this corridor 3.5. Destination Connections. Create stronger connections between Auburn’s primary tourism THE PEARL’S FOOD ENTREPRENEUR KIOSK In San Antonio, Texas, the historic Pearl Brewery has been revitalized to create a vibrant entertainment district. Anchored by the Culinary Institute of America, the Pearl features a number of innovative dining concepts. One of these is the kiosk pictured above. During the weekly farmers’ market at the Pearl, a featured chef takes over the kiosk and tests a menu on the farmers’ market patrons. Customers order at the counter and enjoy their meal at the adjacent outdoor seating area. The kiosk provides food entrepreneurs with space to innovate as well as a built-in customer base. This opportunity to test and sharpen restaurant concepts in the kiosk has bolstered the burgeoning “foodie” culture that is one of the defining features of the Pearl. RES.B Page 164 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 31 assets and develop new assets to attract more visitors to Auburn 3.5.1. Develop and market packages that include visits to three or four tourism destinations to offer to both residents of and visitors to the metro area (e.g. Golf & Gamble, Shop & Slots, Music & More) 3.5.2. Coordinate a brewery and distillery tour. Green River Cyclery has regular tours to breweries and would have good insights into how this would work 3.5.3. Consider creating a food entrepreneur kiosk downtown where a guest chef can serve a featured menu. This could be a way of fostering the growth of unique restaurants in Auburn and could address the need for a sit-down restaurant for business lunches 3.5.4. Explore the feasibility of a hop-on/hop-off tour or shuttle that runs between the Outlet Collection, the golf course, downtown, the casino, White River Amphitheater, and Emerald Downs to facilitate visitors’ movement from one place to another 3.6. Regional Tourism. Strengthen regional tourism connections 3.6.1. Evaluate the potential benefits of establishing a Tourism Promotion Area that includes neighboring communities 3.6.2. Establish a regional partnership of communities to jointly promote the South Sound as a tourism destination RES.B Page 165 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 32 A coordinated marketing and branding campaign that elevates Auburn’s reputation among internal and external audiences Auburn has a strong heritage and history that define a unique character and foster community pride. While Auburn faces challenges, its citizens see great opportunity. The word cloud below is how Auburn’s residents perceive Auburn today. Auburn is in the midst of an exciting transformation. There are numerous positive changes going on right now in the City, and residents recognize this momentum and the potential for improvement. The word cloud below is how Auburn residents describe Auburn in ten years. MESSAGING FOCUS AREA 4. PRIORITY PROJECTS  Brand Enhancement (4.1)  Target Industry Outreach (4.6) RES.B Page 166 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 33 Though positive words dominate these word clouds, a number of negative perceptions are held both by Auburn residents, by the larger region, and by the regional real estate community. These perceptions are largely influenced by media reports on crime in Auburn and by under-performing impression corridors and gateways that lead to Auburn’s tourism destinations. These negative perceptions undermine Auburn’s potential. There is also a large number of residents in the greater Seattle area that have no knowledge of Auburn and hold a neutral perception. Auburn must work to change these neutral and negative perceptions to positive ones. In doing so, the City should also build awareness of Auburn as a destination – for recreation, living, and business investment. Currently, the organizations that define the City of Auburn’s brand identity, both internally and in the Seattle region, are not unified. The City of Auburn’s tagline is “more than you imagined.” This tagline is also shared by the Auburn Tourism Board. The Auburn Downtown Association and Chamber of Commerce, however, each have unique logos and brands that are distinct from the City’s. On social media, the Auburn Police Department, the City of Auburn, the Chamber of Commerce, and the Innovation Partnership Zone have active presences that are also distinct. A more unified, collective voice and identity that spans all of these entities could be more effective in changing the internal and external perceptions of Auburn. 4.1. Brand Enhancement. Develop a stronger brand for Auburn and reinforce this with unified messaging across organizations 4.1.1. Adopt a new tagline. “More than you imagined” implies that people already hold a negative perception of Auburn 4.1.2. Coordinate a consistent marketing theme and campaign that applies across the City, economic development, the Chamber of Commerce, the Auburn Downtown Association, and the Auburn Tourism Board 4.1.3. Regularly (quarterly or annually) create talking points for community leaders and partner organizations that highlight positive developments in Auburn, success stories, and why it is a desirable place to visit, live, work, and invest 4.1.4. Invest in a wayfinding and placemaking strategy to reinforce this brand across Auburn 4.2. Internal Image. Build a more positive perception and a greater sense of community among Auburn residents through a strong partnership with the Auburn Reporter and other local media outlets including public radio, community websites, and social media outlets 4.2.1. Profile positive developments in Auburn that feature City investments, new businesses, and other economic development successes in order to build awareness of the City’s positive momentum 4.2.2. Publish interviews of Auburn residents that highlight the things they like to do in Auburn and good memories of Auburn in order to strengthen the community’s pride and cohesion 4.3. Social Media. Continue to strengthen the City’s social media strategy to improve Auburn’s internal and external perceptions 4.3.1. Develop a more consistent and strategic economic development voice across social media platforms, in particular LinkedIn and Twitter in order to develop a greater awareness of economic development activities in Auburn RES.B Page 167 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 34 4.3.2. Leverage 3No Networking to distribute more positive stories about Auburn and Auburn’s business culture 4.3.3. Connect with Auburn’s key influencers through social media and push out positive content through this network. Content can be about economic development successes, business climate, and other aspects of the City’s transformation 4.3.4. Launch a hashtag campaign (#ThisIsAuburn or #AuburnWorks or #AuthenticAuburn) related to Auburn’s brand that helps promote positive perceptions 4.4. Public Relations. Launch a formal public relations campaign to change the region’s perception of Auburn 4.4.1. Focus on earned media as a strategy to educate the region about Auburn’s positive attributes. Earned media refers to publicity gained through promotional efforts other than advertising, as opposed to paid media, which refers to publicity gained through advertising. 4.4.2. Build awareness of Auburn as a destination for visitors, for residents, and for business investment by making these audiences aware of community assets, the housing market, transportation linkages, and investment opportunities 4.4.3. Create a buzz about Auburn, particularly in the Seattle-Tacoma metro area by publicizing stories in local and regional news outlets that demonstrate what a great location Auburn is. These stories could feature the City’s success stories and relocations (be sure to highlight specifics about Auburn’s assets that enable its companies to succeed). They should also highlight growth in Auburn, including the investment downtown and companies who have invested in Auburn AUBURN’S TOP 10 ASSETS The City has a distinct value proposition and competitive positioning that it must articulate when “selling” itself to brokers, site selectors, and prospects. 1. ACCESS TO SKILLED LABOR to support industrial activities 2. CENTRAL LOCATION between ports, transportation assets, and anchor cities (Seattle and Tacoma) 3. An AUTHENTIC AND HISTORIC DOWNTOWN with a Sounder Station 4. BROAD AND DEEP SUPPLY CHAIN to support manufacturing 5. RECREATION AND ENTERNTAINMENT AMENTITIES – parks, casino, race track, golf course, shopping 6. GREEN RIVER COLLEGE is a partner is workforce training 7. UP AND BNSF rail lines and BNSF is expanding 8. A strong and stable INDUSTRIAL MARKET 9. A DIVERSE COMMUNITY with a strong sense of pride 10. A city government that is A WILLING PARTNER KEY INFLUENCERS DEFINED The term “key influencers” is often part of social media strategy. These individuals are active online and are followed by a target audience. Connecting with these individuals allows a campaign to reach these audiences and push content to them. Social media analytics tools, such as FollowerWonk and Klout, can be used to identify key influencers. RES.B Page 168 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 35 4.4.4. Generate press releases and blog posts that promote opportunities to visit, live, invest, and work in Auburn 4.5. Real Estate Market Reports. Develop a system for effective communication to the marketplace that educates businesses, developers, and brokers on opportunities available in the City 4.5.1. Transition the internal market tracking system used to evaluate market benchmarks to publish a regular report that can be distributed to the business, brokerage, and development community 4.5.2. Conduct regular forums with commercial brokers to discuss Auburn perceptions, opportunities, and regional activity 4.6. Strategic Outreach. Reach out to decision makers in the target industries to encourage them to consider expanding or relocating in Auburn 4.6.1. Leverage Auburn’s community of business leaders and executives to reach peers in their networks by cultivating stronger relationships and keeping them well-informed of Auburn’s strengths and resources available for economic development 4.6.2. As part of TEAM AUBURN, have a core team of executives who are willing to meet with prospects and help sell Auburn 4.6.3. Attend key trade shows in target industries and use these events as opportunities to gather industry intelligence and make person-to-person connections. Leave behind compelling marketing collateral with industry players 4.6.4. Join regional economic development trade missions in collaboration with regional and state economic development organizations whenever possible 4.6.5. Take advantage of Seattle’s position as a global destination for conferences. Follow the regional conference schedule and look for opportunities to meet with prospects while they attend conferences in the region 4.6.6. When traveling, schedule appointments with any local executives in target industry sectors that are in the area RES.B Page 169 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 36 IMPLEMENTATION AND ORGANIZATION The Auburn Ten-Year Economic Development Strategic Plan is ambitious. It will require a transition of the current economic development infrastructure to a cohesive department with additional capacity and expertise. This will allow the City of Auburn to have one of the most robust and entrepreneurial economic development programs in the region. The City’s investment in economic development will yield a return that will strengthen the City’s tax base, create economic opportunities, and transform the City to a vibrant and connected hub in the Seattle-Tacoma metro area. STAFFING The recommendations below are based on the consulting team’s knowledge of organizational best practices and a review of peer city budgets and staffing. Recommended Staffing Structure. The structure above would provide the capacity to implement the strategic plan. The Manager, who leads the team, is an experienced economic developer that has led teams successfully in complex transactions, innovative program management, and effective communications with stakeholders. The Business Development position has expertise in prospect management, deal making, business visitation, and economic development analysis and research. A Marketing position carries out all outreach and marketing activities. The Redevelopment position has expertise in real estate development and real estate finance. An administrative assistant supports the team. In addition, the tourism coordinator position that is funded by the LTAC, and the real estate analyst, transferred from facilities, are now part of the team. This provides the opportunity of greater integration of these functions with economic development. This staffing structure would provide the City with the capacity to conduct ongoing research to support business recruitment and retention/expansion activities and to consistently produce and deliver content to support a marketing and outreach strategy. Both of these functions enable economic development programs to identify prospective companies and establish/maintain relationships with these potential prospects. This structure also provides the department with the capacity to build a much stronger referral network that consists of local business IMPLEMENTATION TEAM ECONOMIC DEVELOPMENT SPECIALISTS Economic Development Manager Business Development Marketing Redevelopment Tourism Real Estate Analysis ED Admin Support RES.B Page 170 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 37 leaders and regional real estate brokers and developers. The outcome of this increased capacity should be more and higher-quality prospects and projects, which should accelerate investment and job creation in Auburn. The Redevelopment expertise provides economic development programs with an enhanced ability to identify redevelopment opportunities, structure deals, and complete projects. An in-depth knowledge of financing tools available in the State of Washington and at the Federal Government should enable Auburn to access capital to support redevelopment opportunities. The additional staffing will cost about $436,000 annually once the Economic Development Division is fully staffed in 2019. Operating Budget. Funding the additional functions of the ED Division’s programs will require an additional $78,000. This includes a $60,000 marketing and outreach budget that can be used for public relations, marketing materials (including web design), social media, trade show travel and attendance, and limited advertising. An additional $18,000 for data services, memberships, and market and economic research would cover a subscription to Hoovers.com, on-going consulting services, and memberships to NAIOP and ICSC. Budget Summary. The additional staffing requirements and operating budget will likely require up to a total of $514,000 annually by 2019. RES.B Page 171 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 38 IMPLEMENTATION Because of its ten-year scope, this strategic plan has a long list of strategies and actions. Implementing these will take time and can only be done as resources and capacity are added. To implement this plan, the City should first focus on reorganizing itself to be consistent with the strategic direction of the plan. Adding a staff person dedicated to business development will enable the deployment of the program foundations, which should directly correlate with increasing investment into the City. The marketing position will enable the City to implement Focus Area 4 more fully. Redevelopment expertise will allow the City to advance further in the implementation of Focus Areas 2 and 3. RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) OPPORTUNITY 1: DELIVERY Strategy 1.1. Clearly define the services that the City of Auburn can provide to businesses both directly and through partnerships. 1.1.1. Organize regular meetings of the IPZ taskforce as TEAM AUBURN to keep them informed of the prospect pipeline, meetings with prospects, and potential recruitment trips Manager & Business Development  1.1.2. Continue to assist prospects in finding suitable sites, navigating the development process in Auburn, and securing available incentives from local and state sources Manager & Business Development  1.1.3. Launch and manage a business incubator Manager & Business Development / SBDC  1.1.4. Continue to organize weekly 3No Networking at Auburn-based businesses Manager & Marketing / SBDC  1.1.5. Continue to partner with the Small Business Assistance Center at Green River College on technical assistance and workshops for small businesses Manager & Marketing / Chamber ADA  1.1.6. Establish partnerships with area SBA lenders, community development financial institutions, and other nonprofit microlenders to provide better access to capital for businesses that do not qualify for bank financing Business Development / SBDC  RES.B Page 172 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 39 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) 1.1.7. Assemble a list of revolving loan funds and other financing resources that are available to Auburn-based businesses Business Development / SBDC  1.1.8. Continue to partner with Green River College and WorkSource to provide customized training Manager  1.1.9. Strengthen the partnership between Auburn Public Schools, Green River College, and Auburn’s business community by organizing industry sector partnerships that explore workforce demand, critical occupations, and available curricula Manager / WorkSource Workforce Development Council  1.1.10. Maintain a catalog of information and resources relevant to economic development on the City’s webpage Business Development  1.1.11. Track and report market trends at least quarterly and distribute the findings to stakeholders as part of the effort to espouse “Why Auburn” to the regional real estate community Business Development  1.1.12. Update and distribute retail trade area data annually Business Development  1.1.13. Provide profiles on the City’s target investment areas Business Development  Strategy 1.2. Formalize a business visitation program to track trends among Auburn employers and identify any businesses in need of assistance 1.2.1. Establish a visitation protocol, a list of information to be collected during each visit, and set a goal how many businesses each year. Business Development / Chamber  1.2.2. Create a database of Auburn-based employers with the City’s business license database Business Development  1.2.3. Using CoStar or other sources, identify employers who have leases that will be expiring in the next two or three years to be prioritized for visitations Business Development  1.2.4. Maintain detailed notes on visits in the economic development project database to document the relationship over time Business Development / Chamber  1.2.5. Compile information collected from visits to track trends among employers and distribute these findings to stakeholders in an annual report and presentation Business Development / Chamber  RES.B Page 173 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 40 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 1.3. Recruit new businesses, including retail, to Auburn to provide better economic opportunities and enhance Auburn’s quality of place 1.3.1. Strengthen relationships with brokers, developers, and industry associations in the metro area and create an education outreach program targeted to these groups Manager  1.3.2. Cultivate strong partnerships with regional organizations to identify co- marketing opportunities and joint trade missions Manager  1.3.3. Join the coalition of local governments and organizations that represent the communities of the greater South Sound region Manager  1.3.4. During business visitations, ensure that Auburn-based businesses are aware of the great services that the City provides and have information on the different initiatives Business Development  1.3.5. Cultivate relationships among promising young companies across the metro Business Development  1.3.6. Actively prospect among companies in target industries Business Development  Strategy 1.4. Identify and advance catalyst projects that will facilitate Auburn’s evolution 1.4.1. Work with city council and department heads to identify and prioritize potential catalyst projects Manager  1.4.2. Hold quarterly meetings with this group to learn from guest speakers about what other communities are doing and to brainstorm what Auburn could do Manager  1.4.3. From the project list generated in the quarterly sessions, prioritize projects based on feasibility, expense, time frame, impact, and alignment with Auburn’s opportunity areas Manager / Department Heads  1.4.4. For the two or three top ranked projects, create a project team of three to five individuals responsible for implementation Manager / Department Heads  1.4.5. Maintain a tool that tracks progress on project implementation, and report progress and outcomes at the quarterly meetings Admin  RES.B Page 174 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 41 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 1.5. Foster relationships with key entities that support economic activity in the City 1.5.1. Initiate and cultivate relationships. Manager  OPPORTUNITY 2: PRODUCT Strategy 2.1. Design and maintain information resources that demonstrate Auburn’s strength in terms of its access to skilled labor 2.1.1. Maintain up-to-date labor market information on Auburn and its laborshed and make this information available on the economic development website as well as in a report format Business Development / WorkSource  2.1.2. For target industries, create profiles that highlight the availability of relevant occupations as well as training programs and other workforce development resources Business Development / WorkSource  Strategy 2.2. Ensure a supply of deal-ready sites to accommodate new business investment in Auburn 2.2.1. Maintain an inventory of Auburn’s most important parcels and sites – those with high-impact development or redevelopment potential or that are located in strategic areas. Real Estate & Redevelopment  2.2.2. Among the eight sub-areas identified in the Comprehensive Plan, focus on the airport area, Emerald Downs, the GSA Property, and Northwest Auburn as key planning areas with high commercial development potential Real Estate & Redevelopment / Community Development & Public Works  2.2.3. Work with relevant land owners or brokers to package these sites with highly informative information packets (electronic) and actively promote these sites to prospective businesses and regional brokers Real Estate & Redevelopment  2.2.4. Encourage the land owner and broker to list the site on the City’s inventory of buildings and sites Real Estate & Redevelopment  2.2.5. Meet with institutional investors and owners of underperforming properties to make the case for additional investment to increase their yields Manager & Redevelopment  RES.B Page 175 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 42 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) 2.2.6. Facilitate the conversion of industrial buildings that are currently used for warehousing and distribution to manufacturing or other sales tax generating uses Redevelopment  2.2.7. Work with land owners to facilitate conversion opportunities, redevelopment of high-potential parcels, or the assembly of multiple parcels by addressing barriers where possible and connect them with local developers and real estate investors who seek these kinds of opportunities Redevelopment  2.2.8. Maintain a database as part of the CRM of all known businesses seeking additional space in the region to make connections with property owners in Auburn as space becomes available Business Development  2.2.9. Evaluate the feasibility of annexing the areas adjacent to the City that are in unincorporated King County as a means of improving Auburn’s commercial land base Manager  Strategy 2.3. Create a robust toolbox to influence economic development outcomes 2.3.1. Catalog all tools available in the state Business Development / Finance  2.3.2. Consider and evaluate the feasibility of the additional programs Manager / Finance  2.3.3. Collect examples of communities who use these tools in an innovative way to support projects that advance their economic development goals and share these with relevant City stakeholders Business Development / Finance  2.3.4. Ensure that city council and City staff are well-informed of the type and use of financing tools available to municipalities Manager / Finance  2.3.5. Establish a policy that sets out the City’s goals for the use of these various tools as well as a process and framework for evaluating projects Manager / City Council, Finance  2.3.6. Adopt the guideline for effective and responsible incentives use Manager / City Council, Finance  RES.B Page 176 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 43 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) 2.3.7. Adopt a comprehensive fiscal and economic impact tool to measure the return on investment for projects being evaluated Manager / Finance  2.3.8. Create content for the City’s website and for brochures that allows owners and developers to understand the tools and programs that may be available for their project and how it relates to their pro forma Business Development / Finance  2.3.9. Develop a clear flowchart that establishes the process that owners and developers will need to follow to obtain assistance in order to set realistic expectations Business Development / Finance  Strategy 2.4. Evaluate and continue to improve the City’s land use and building permit process and performance. 2.4.1. Continue to employ the permitting performance tracking system to understand performance Business Development / Community Development & Public Works  2.4.2. Develop a regular report based on information from the tracking system that allows the development community and city staff to understand how efficiently permits are being processed Business Development / Community Development & Public Works  2.4.3. Create a map-based report with supporting tables that tracks all major commercial developments in the City including new construction and major renovations Business Development / Community Development & Public Works  2.4.4. Consider reviewing the fee structure associated with permit reviews Manager / Community Development & Public Works  2.4.5. Establish precedents log that may be used for future staff to reference how certain situations that share similar conditions were addressed previously Business Development / Community Development & Public Works  RES.B Page 177 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 44 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 2.5. Re-evaluate zoning districts and modify certain aspects of the code 2.5.1. Expand the Downtown Urban Center (DUC) zoning district to include the logical adjacent areas Manager / Community Development & Public Works  2.5.2. Consider zoning modifications related to height and parking to improve project feasibility Manager / Community Development & Public Works  2.5.3. Add flexibility to the industrial land use code to allow for more yard storage and permitting uses such as building contractors in districts that are currently more restrictive Manager / Community Development & Public Works  2.5.4. Consider an overlay on the Landing Field (LF) zone and adjacent commercial properties to permit airside supportive land uses around the airport Manager / Community Development & Public Works  Strategy 2.6. Annually compare Auburn’s development/impact fees, tax rates, and rebate programs to peers 2.6.1. Conduct research on regional peers to identify any rate changes or fee changes and record in a business climate database, which can be created with information from this strategic plan Business Development / Finance, Community Development & Public Works  2.6.2. Document any significant changes and distribute a summary report to relevant department heads Business Development / Finance, Community Development & Public Works  2.6.3. Work collectively to resolve any issues revealed by this research exercise Business Development / Finance, Community Development & Public Works  RES.B Page 178 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 45 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) 2.6.4. Publicize the areas where Auburn stands out among its peer group to the regional real estate community Business Development & Marketing  OPPORTUNITY 3: PLACE Strategy 3.1. Create a target investment program to guide strategic infrastructure investments that enhance Auburn’s economic development opportunities 3.1.1. Create a cross-departmental forum for identifying and prioritizing areas for targeted infrastructure investment Manager / Mayor’s Office  3.1.2. Evaluate market-challenged areas for their potential to attract private investment through targeted public investment projects and designate two or three areas as “Target Investment Areas” Redevelopment  3.1.3. Align the City’s resources, both planning and programmatic, around the Target Investment Areas to ensure they reinforce capital investments Manager / Department Heads  3.1.4. Tailor a suite of services and/or incentives that is available to support private sector projects in the Target Investment Areas in order to overcome real or perceived market gaps Manager & Redevelopment  3.1.5. Package the information and actively market the areas to potential investors and other stakeholders Redevelopment & Marketing  Strategy 3.2. Maintain and enhance regional transportation connections to ensure ease of travel to and from Auburn 3.2.1. Prioritize improvements on and around Auburn Way North and Auburn Way South and a better connection from SR-167 connection to downtown Manager / Community Development & Public Works  3.2.2. Continue to partner with Sound Transit to secure adequate parking around the Sounder station as well as convenient service and better multi-modal connectivity to downtown and other Auburn destinations Manager / Community Development & Public Works  RES.B Page 179 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 46 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) 3.2.3. Continue to improve the Auburn Municipal Airport by conducting a needs assessment of businesses located in Auburn and in the immediate region to understand whether they could use an enhanced airport for business purposes and what improvements would be needed Business Development / Auburn Municipal Airport  Strategy 3.3. Continue to invest in downtown revitalization 3.3.1. Optimize regional multimodal downtown connectivity both to and from the City to ease travel times and improve the downtown experience Manager / Community Development & Public Works  3.3.2. Re-evaluate the Business Improvement Area to look at how ratepayers are assessed, who is being assessed, and how the funds can best be used Business Development / Finance ADA  3.3.3. Develop an investment brochure (electronic and print) for downtown that features a map of the Downtown Urban Center; key data and statistics; overview of public investment; available incentives; photographs that highlight new investment and potential investments; and a map with available parcels Marketing / ADA  3.3.4. Publicize a comprehensive list of incentives available to support projects in the Downtown Urban Center both in the brochure and on the City’s website Marketing / ADA  3.3.5. Continue to support existing small businesses downtown and to recruit targeted retailers and tenants downtown Business Development / SBDC ADA  3.3.6. Continue to actively seek investors and developers for downtown projects Manager, Redevelopment / ADA   3.3.7. Approach successful restauranteurs and local retailers both in Auburn and the Greater Seattle region to ask if they would be interested in expanding downtown Redevelopment / ADA  RES.B Page 180 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 47 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 3.4. Designate Auburn Way South as an additional Targeted Investment Area 3.4.1. Complete the Auburn Way South Corridor Plan Redevelopment / Community Development & Public Works  3.4.2. Develop an investment brochure (electronic and print) for Auburn Way South to highlight the opportunities that are identified in the corridor plan Marketing / Community Development & Public Works  3.4.3. Strengthen the City’s partnership with the Muckleshoot tribe around the revitalization of this corridor Manager / Mayor’s Office  Strategy 3.5. Create stronger connections between Auburn’s primary tourism assets and develop new assets to attract more visitors to Auburn 3.5.1. Develop and market packages that include visits to three or four tourism destinations to offer to both residents of and visitors to the metro area (e.g. Golf & Gamble, Shop & Slots, Music & More) Tourism  3.5.2. Coordinate a brewery and distillery tour. Green River Cyclery has regular tours to breweries and would have good insights into how this would work Tourism  3.5.3. Consider creating a food entrepreneur kiosk downtown where a guest chef can serve a featured menu Tourism  3.5.4. Explore the feasibility of a hop-on/hop-off tour or shuttle that runs between the Outlet Collection, the golf course, downtown, the casino, White River Amphitheater, and Emerald Downs to facilitate visitors’ movement from one place to another Tourism  RES.B Page 181 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 48 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 3.6. Strengthen regional tourism connections 3.6.1. Evaluate the potential benefits of establishing a Tourism Promotion Area that includes neighboring communities Manager, Tourism  3.6.2. Establish a regional partnership of communities to jointly promote the South Sound as a tourism destination Manager, Tourism  OPPORTUNITY 4: MESSAGING Strategy 4.1. Develop a stronger brand for Auburn and reinforce this with unified messaging across organizations 4.1.1. Adopt a new tagline. Manager / Mayor, City Council, Department Heads  4.1.2. Coordinate a consistent marketing theme and campaign that applies across the City, economic development, the Chamber of Commerce, the Auburn Downtown Association, and the Auburn Tourism Board Marketing  4.1.3. Regularly (quarterly or annually) create talking points for community leaders and partner organizations that highlight positive developments in Auburn and why it is a desirable place to visit, live, and invest Marketing  4.1.4. Invest in a wayfinding and placemaking strategy to reinforce this brand across Auburn Manager, Marketing / Community Development & Public Works  Strategy 4.2. Build a more positive perception and a greater sense of community among Auburn residents through a strong partnership with the Auburn Reporter and other local media outlets 4.2.1. Profile positive developments in Auburn that feature City investments, new businesses, and other economic development successes in order to build awareness of the City’s positive momentum Marketing  4.2.2. Publish interviews of Auburn residents that highlight the things they like to do in Auburn and good memories of Auburn Marketing  RES.B Page 182 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 49 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 4.3. Continue to strengthen the City’s social media strategy to improve Auburn’s internal and external perceptions 4.3.1. Develop a more consistent and strategic economic development voice across social media platforms, in particular LinkedIn and Twitter in order to develop a greater awareness of economic development activities in Auburn Marketing  4.3.2. Leverage 3No Networking to distribute more positive stories about Auburn and Auburn’s business culture Marketing   4.3.3. Connect with Auburn’s key influencers through social media and push out positive content through this network Marketing  4.3.4. Launch a hashtag campaign related to Auburn’s brand that helps promote positive perceptions Marketing  Strategy 4.4. Launch a formal public relations campaign to change the region’s perception of Auburn 4.4.1. Focus on earned media as a strategy to educate the region about Auburn’s positive attributes Marketing  4.4.2. Build awareness of Auburn as a destination for visitors, for residents, and for business investment by making audiences aware of community assets, the housing market, transportation linkages, and investment opportunities Marketing  4.4.3. Create a buzz about Auburn, particularly in the Seattle-Tacoma metro area by publicizing stories in local and regional news outlets that demonstrate what a great location Auburn is. Marketing  4.4.4. Generate press releases and blog posts that promote opportunities to visit, live, invest, and work in Auburn Marketing  Strategy 4.5. Develop a system for effective communication to the marketplace that educates businesses, developers, and brokers on opportunities available in the City 4.5.1. Transition the internal market tracking system used to evaluate market benchmarks to publish a regular report that can be distributed to the business, brokerage, and development community Business Development, Real Estate, Marketing  4.5.2. Conduct regular forums with commercial brokers to discuss Auburn perceptions, opportunities, and regional activity Business Development, Real Estate, Marketing  RES.B Page 183 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 50 RESPONSIBLE STAFF/ POTENTIAL PARTNERS TIMEFRAME Ongoing Short-tem (Years 1-2) Mid-Term (Years 3-5) Long-Term (Years 5-10) Strategy 4.6. Reach out to decision makers in the target industries to encourage them to consider expanding or relocating in Auburn 4.6.1. Leverage Auburn’s community of business leaders and executives to reach peers in their networks by cultivating stronger relationships and keeping them well-informed of Auburn’s strengths and resources available for economic development Manager  4.6.2. As part of TEAM AUBURN, have a core team of executives who are willing to meet with prospects and help sell Auburn Business Development  4.6.3. Attend key trade shows in target industries and use these events as opportunities to gather industry intelligence and make person-to-person connections Manager, Business Development  4.6.4. Join regional economic development trade missions in collaboration with regional and state economic development organizations whenever possible Manager, Business Development / Mayor’s Office  4.6.5. Take advantage of Seattle’s position as a global destination for conferences Business Development  4.6.6. When traveling, schedule appointments with any local executives in target industry sectors that are in the area Business Development  RES.B Page 184 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 51 PERFORMANCE EVALUATION AND MEASUREMENT To understand the impact of the City’s economic development efforts and to track success, it is important to monitor a set of key performance indicators. Below is a set of indicators that are tied to three topics directly related to the strategies contained in this plan: 1) tax base; 2) real estate market; and 3) economic opportunity. 0 25,000 50,000 75,000 100,000 2012 2013 2014 2015 2016 Non-exempt Taxable Value (per Capita) Property Tax Base 37%39%38%34%34% 2012 2013 2014 2015 2016 % Commercial (Industrial, Retail, Office) - 100 200 300 400 2012 2013 2014 2015 2016 Sales Tax Receipts (per Capita) The tax base has grown steadily since 2013. Commercial Tax Base The share of the commercial tax base fell from its 2013 peak. Retail Sales Retail sales tax receipts per capita have climbed steadily. 0.0% 1.0% 2.0% 3.0% -200,000 0 200,000 400,000 600,000 20122013201420152016Net Absorption Vacancy 0.0 2.0 4.0 6.0 8.0 2012 2013 2014 2015 2016 Unemployment Rate (%) Auburn Washington US Industrial Market The vacancy rate rose slightly with recent negative net absorption. Office Market The vacancy rate dropped with positive net absorption. New Space Delivery Over the last two years, little new square footage has been delivered. Employment The number of jobs in the City has continued to grow. Wages The region's wages are climbing gradually. Unemployment The region's unemployment rate is much lower than in 2012. 25.00 25.88 0 10 20 30 40 2012 2013 2014 2015 2016 Median Hourly Wages ($) Source: King County Tax Assessor 0.0% 5.0% 10.0% 15.0% -50,000 -25,000 0 25,000 50,000 75,000 100,000 2012201320142015Net Absorption Vacancy - 50,000 100,000 150,000 200,000 20122013201420152016Office Industrial 0 20,000 40,000 60,000 2012 2013 2014 2015 2016 Total Employment Source: King County Tax Assessor Source:City of Auburn Source: CoStar Source: CoStar Source:CoStar Source: EMSI Source: Bureau of Labor Statistics Source:EMSI RES.B Page 185 of 186 CITY OF AUBURN ECONOMIC DEVELOPMENT STRATEGIC PLAN PAGE | 52 In addition to these key performance indicators, the City should monitor output measures related to these topic areas and other strategies. Suggested measures include:  Jobs created and average wages- only projects that the ED Division managed  Private investment overall and by target area  Square feet of distribution conversions  Return on investment (ROI) on any incentives (fiscal & economic impact)  Industrial and office lease rates  Broker activity  Restaurants and retailers – new and closed  Employment by sector  Wages by sector  Earned media  Web traffic It will also be useful to track some of these metrics for peer cities and the metro area to provide context for Auburn’s performance. Being able to drill down further to get behind the key performance indicators will allow the City to evaluate strategy implementation and make tweaks to the strategic plan as necessary. This feedback loop is how the strategic plan transforms into a living document that will maintain relevancy over the ten-year period. The Economic Development Office should be responsible for maintaining updating these metrics on an on-going basis with the assistance from the consulting team, as needed. CONCLUSION The City of Auburn should be commended for their recognition of the importance of economic development strategic planning at this juncture in Auburn’s history and in the context of a booming regional economy. With the plan in place, the City will be positioned to transition its economic development program to a more robust and comprehensive program that will allow it to influence its own economic development future. The implementation and monitoring of the plan will be the next phase. This work will take discipline and direction, leadership and collaboration, and patience and perseverance across the City and with multiple partners. The City of Auburn’s Ten- Year Economic Development Strategic Plan provides the foundation and lays out the framework to coordinate the City’s continued evolution into a unique and thriving hub in the Seattle-Tacoma region. RES.B Page 186 of 186