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HomeMy WebLinkAbout08-21-2000I. CALL TO ORDER: Chair Sue Singer called the meeting to order at 6:00 pm followed by guest introductions. Members present: Chair Sue Singer, Vice Chair Rich Wagner, Councilmember Trish Borden, Others present included: Mayor Chuck Booth, Chief Bob Johnson, Chief Jim Kelly, Plan. Dir. Paul Krauss, City Atty Mike Reynolds, Airport Mgr. John Anderson, Guests Doug Christensen, Rasmus Nielsen, Jim Harkey, Bob Jones, Mary Ellen Stone- KC Sexual Assault Resource Center and Secretary Jeanne Herold II. CONSENT: Auburn Municipal Airport Lease Aoreements: Paul Krauss explained that when this was last brought to the Committee and Council, he was directed to offer the twin hangar lease pads at a rate of $.40 per foot. Mr. Krauss agreed that he would go out and solicit interest. In fact there is interest, and thc guests were present. They did present a proposal that Mr. Krauss agreed to take to this Committee and thc proposal was included with the letter dated August 7, 2000. Mr. Krauss had the opportunity to review their proposal with Finance Director Diane Suplcr and City Attorney Mike Reynolds and prepared a response. The issues that were raised are as follows: 1)Lease Rate: The proposed lease rate made was for $0.28 a foot. Bruce Allen's recommendation was $0.33 and staff was directed by the Committee to go with $0.40 a foot. 2)Availability of Utilities: Mr. Krauss explained that he indeed believed the utilities are in fact them. The only utilities that are not available are phone and gas, both of which are private. The electric service was brought down to serve thc Auburn hangars but it is available at the street. The City did install water and sewer. The sewer needs to be extended. The storm utilities are in and the City basically paid for all those improvements. 3)Annual CPIAd[ustments: It was requested that adjustments be done every two and a half years rather than annually, with some limitations on how much it could go up in any given year. The Finance Director didn't feel that the City should be constrained by that and it should be carried forward. 4)Fair Market Adjustments: One of the concerns was that the appraisal be based on fair market value. The concern was that Council had an appraisal done which recmmnanded $0.33 and they let it go at $0.40 to start. Mr. Krauss explained that Municipal Services Committee Meeting I August 21, 2000 he talked to the City Attorney and the way the lease document is drafted, it basically says the City and the Tenant accept that an appraisal will be done every five years and that will become the lease rate. Basically, under the lease terms the City would accept that appraisal in the future. An appraisal would have to be done by a certified appraiser and the City and the Tenants would accept that under the lease terms. Vice Chair Wagner asked what the City Attorney's decision was on this. Mr. Krauss explained that, that would be binding on the Council. Mr. Wagner suggested that something could be written into the lease to the effect that "will not result in reductions of rent". He explained that he has seen those types of terms where there are annual appraisals. Mr. Reynolds stated that the best way to handle this is simply to state, it will be reviewed by an appraisal in five years. Then if either party is aggrieved by that, then it can be taken to a mediation type process. Another appraiser would be brought in but ultimately that's binding and that's a fixed amount. 5)Environmental Provisions-Drainage: Mr. Krauss explained that there was a concern raised about drainage and the potential for pollutants originating from the truss manufacturer. Mr. Krauss stated that as far as he knew there isn't any knowledge or statement that it has happened but there was a concern that it could happen and that the City would hold the owners liable for pollutants on their site. Again, Mr. Krauss believes the lease intends to only hold the owners liable for that which they introduce on the site and not what happens to drain onto it. 6Mssignment and Sublease: The owners were concerned that the language allows the City to revise the rent at the time of assignment. Mr. Krauss felt that the sentence that reads, As a condition to any assignment or sublease, Lessor may revise the rent to be consistent with its then current rent policy is something that could be omitted since the rent is going to be kept current anyway. There would be no reason to have a mid-course direction. 7)Waiver of Permit Fees: Mr. Krauss explained that there was a request for a waiver of permit fees because the hangars are being built on City land. Mr. Krauss indicated that's not City policy. 8)Rent Payments: There was a request that the City initiate rent payments only after the hangars are occupied. Mr. Krauss didn't feel that the amount of money was that substantial and the land is committed as soon as the lease is signed. The recommendation made by the Finance Director was not to give a concession there. Vice Chair Wagner asked for clarification on Paragraph 18C, Page 9, regarding any future chemical contamination. The City Attorney stated that the burden is on thc lessee Mr. Christensen addressed the Committee and stated that the way he understood it, the Municipal Services Committee Meeting 2 August 21, 2000 lease would not include the drainage ditch so where the water is draining would be behind the lease property and that's what has caused the lessees concern.. The lessees are also concerned about the fill that's in there and would like that to be cleared up. Mr. Krauss stated that he's relatively sure that it's clean now and if it isn't, it's the City's burden. It's just a matter of eliminating introduction of anything from this point on when the lease is established. Chair Singer stated that the very least, the words "existing on" should be deleted under Paragraph C, Page 9. Mr. Krauss stated that he would work with the City Attorney. Chair Singer asked if any of the guests would like to speak at this point. Mr. Nielsen spoke to the Committee regarding the lease payments. He wondered if lease payments could be initiated only after the permits are issued. Regarding Item #5, Mr. Nielsen stated that he is hoping to build a double hanger and lease out half the building and doesn't agree with signing the contract the way it is currently written. Mr. Krauss stated that, the language has already been touched on and that portion will be deleted regarding the lease payments. Regarding Item #3- Mr. Nielsen stated that he is happy with that as long as the language is such that the City Council is bound by the appraiser's findings. Mr. Krauss responded that he would work with the City Attorney on this issue. The language basically says that the City will be bound by the appraiser's findings. Mr. Krauss stated that the City simply cannot do several appraisals every few years and come up with different numbers and is trying to standardize it. Mr. Bob Jones spoke to the Committee and stated that he would like the Council to consider that the cap on the lease payment is a real concern, because of what's happening at other airports. He feels this is a legitimate concern and he personally will not sign a lease unless there is an ironclad clause in the lease regarding a cap. As already mentioned, it was appraised at $0.33 and the Council directed $0.40. Consequently Mr. Jones feels that the lease definitely needs a cap for protection that it's not going to go up every year. Chair Singer asked Vice Chair Wagner to comment on the increase. Mr. Wagner stated that it was more interest from Councilman Poe who everyone respects as being a good judge of current market values and business situations such as this. Mr. Wagner stated that he is in favor of a clause in the lease that reads "no decrease in spite of what an appraiser may say". Another thing that Mr. Wagner wanted to know, was the amount of competitive proposals received. Or was this the only one. Mr. Krauss replied that the City didn't seek competitive proposals. The Council established a rate so the idea was not to go out and ask people to beat that. What was being proposed was to lease up the spaces on first come, first serve basis. Mr. Wagner asked if there were any consequences for not having gone through a competitive proccss. Mr. Krauss stated that he hadn't consulted with the City Attorney. Once the Council had Municipal Services Committee Meeting 3 August 21, 2000 established the rate, it was just a matter, of making sure that the City got that rate and leased the entirety of that land. Mr. Wagner feels that there's a lot more to it then just the rate. Not getting competitive bids, is somewhat of a disadvantage and he is not willing to accommodate any of the changes beyond the ones mentioned earlier partly because there hasn't been any competition. Mr. Krauss stated that he understood the concerns that Mr. Wagner has. There was a mention that the City gets $0.24 a foot now and the reason for the $0.24 when the appraiser recommended $0.33 and the Council ultimately went with $0.40 is because the City put 1.33 million dollars worth of improvements in the ground. So, that cost that the City supported with FAA money to improve it is not one that they're being asked to bear except as reflected in the rental rates. Vice Chair Wagner stated that he feels that there should be some kind of cap. But, it should be a reasonable cap. Ultimately, the decision was that Mr. Wagner felt that there didn't need to be a cap beyond the appraisal process and CPI and feels that's fair. Chair Singer suggested that there be specific language about the Council not having ability to raise it. Mr. Krauss stated that the way it's worded right now, he believes it says that. He assured the Committee that he would work with the City Attorney and make sure it does say that and add in the mediation, which gives the owners more protection. Guest discussion ensued regarding competitive bidding. Chair Singer stated that she was in favor with starting the lease after the permits are issued. Mr. Krauss stated that he wouldn't mind as long as there was a requirement that they request building permits in a timely manner. Question by Councilmember Borden as to how that would be written into the lease. Mr. Reynolds stated that the tenant would make a request for a building permit, which would be within 90 days of the signing of the lease. Everyone is then on a time line. Chair Singer posed the question as to what the outcome would be if the City received an evaluation appraisal that is considerably lower after a certain amount of time. She discussed the possibility of adding wording into the lease to the affect that if after the first lease period of 5 years, whether the rate was raised or lowered, (due to a natural disaster, for example) it could go to an arbitrator. Mr. Wagner stated that he felt probably within ten years, things are going to be much more settled and there won't be such a scatter of data from competitive airports and he would be comfortable with that. Only the first five- years would have the statement regarding "no £oine backward". At ten years, the City would live with the appraiser's recommendation. Chair Singer commented that if the City completes the current plans for improvements at the airport, the lease rates should be well protected. Municipal Services Committee Meeting 4 August 21, 2000 Chair Singer asked that Mr. Krauss make the changes recommended and bring the lease back to the Committee. Mr. Krauss stated that he would like to make the changes with the City Attorney and bring it back with the expectation that if it meets the Committee's findings and is acceptable, it can be brought forward to Council. Chair Singer thanked the guests for coming. IlL INFORMATION/DISCUSSION Kin~ County Sexual Assault Resource Center: Chair Singer introduced Mary Ellen Stone from the King County Sexual Assault Resource Center. (KCSARC) Ms. Stone was asked to come to speak to the Comanittee regarding their interaction with the Auburn Police Department. Ms. Stone passed out brochures from the Center outlining Legal Information for Adults, information regarding Victim's Rights, Procedures and Support. The Center's job and employees as legal advocates is to help the victims. Ms. Stone related that last year there were approximately 158 victims that live in Auburn. Approximately two thirds of those victims were children or teens. Only about half made a report to the Auburn Police. KCSARC's job is to act as the informed advocate through the process. There is a new protocol throughout the state concerning King County that says that when there is a report of a rape or sexual assault it automatically has to be investigated by a detective to make sure that there is consistency in protocol. An interview with the victim is then scheduled. After the interview process, the detective will make contact with the family, explain the procedure and time lines. Thereafter the detective will do the investigative work. KCSARC's job then is to continue to work with the family and the child. Consequently, KCSARC continues to keep in touch with Chief Kelly's staff. If there is enough information gathered, and a person is charged, that goes to the Prosecutor and a trial date is set. Through the entire process that takes several months, KCSARC is there for counseling, parent support and moral support. KCSARC helps the children prepare for the interviews for the trial process. There is a kids court program where children have the opportunity to become familiar with the courthouse, and all aspects of court and KCSARC is there throughout the trial. Councilmember Borden asked Chief Kelly to address the subject of sexual abuse. Chief Kelly explained that the investigation of these types of crimes has changed over the years. Actually, KCSARC is integral in that initial process. The Prosecutor's Office will generally call an interview. In the past detectives were not totally equipped at interviewing a sexual assault victim but over time, the detectives have learned better ways to do the job. And KCSARC certainly is part of that better way of doing the job. A detective's job generally ends when the case is presented to the court and there is so much more to it that time just does not permit. And organizations like KCSARC pick that up Municipal Services Committee Meeting 5 August 21, 2000 and can actually carry it through the entire process. It's a very positive program, and the KCSARC caseworkers are skilled. Chair Singer asked Ms. Stone if she'd be able to tell the Committee what percentage of King County's budget goes into this type of legal advocacy versus therapy. Ms. Stone stated that this was one of the more expensive services but she did not have that figure available and agreed she would get that information. Councilmember Borden asked Ms. Stone if all of the funds given to King County from the Human Service budget go to the legal advocacy. Ms. Stone was unsure on that point and stated she would get that information. FOLLOW-UP ON ILI,EGAL DUMPING: Chair Singer informally discussed the problem of illegal dumping. Ticketing offenders was discussed. Chair Singer also discussed the problem of code enforcement. The unsightliness of the area surrounding the Auburn Theater was also brought up and discussed. IV. ADJOURNMENT: There being no further business, the meeting was adjourned at 7:10 pm. Submitted by: Jeanne Herold, Secretary Municipal Services Committee Meeting 6 August 21, 2000