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HomeMy WebLinkAbout07-16-2018 CITY COUNCIL AGENDACity Council Meeting J uly 16, 2018 - 7:00 P M City Hall Council Chambers A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C AL L T O O RD E R A .P ledge of Allegiance B .Roll Call I I .ANNO UNC E M E NT S, P RO C L AM AT IO NS, AND P RE S E NTAT I O NS A .Official Swearing-in of Chief of P olice W illiam P ierson I I I .AP P O I NT M E NT S A .B oard and Commission A ppointments L odging Tax Advisory B oard City Council to confirm the appointment of Reggie Matto to the Auburn L odging Tax A dvisory Committee for a term to expire December 31, 2020. (RECOMMENDED ACTION: City Council confirm the appointment to the Lodging Tax Advisory Committee.) B .B oard and Commission A ppointments Transportation Advisory B oard City Council to confirm the following appointments to serve on the Transportation A dvisory Board for terms expiring December 31, 2020: S arah Shaw P eter Di Turi (RECOMMENDED ACTION: City Council confirm the appointments to the Transportation Advisory Board.) I V.AG E ND A M O D I F IC AT I O NS V.C IT IZE N I NP UT, P UB L I C HE ARI NG S AND C O RRE S P O ND E NC E A .P ublic Hearings 1.Public Hearing for J ohnston Sewer Payback A greement (Gaub) Page 1 of 71 City Council to conduct a public hearing to receive public comments and suggestions with regard to the proposed Ordinance No. 6685 - J ohnston S ewer Payback A greement (RECOMMENDED ACTION: City Council conduct the public hearing. See Ordinance No. 6685 later on the agenda for further information and action.) 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. C.Correspondence - (T here is no correspondence for Council review.) V I .C O UNC I L AD HO C C O M M IT T E E RE P O RT S 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. V I I .C O NS E NT AG E ND A 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 J une 18, 2018 Regular City Council Meeting B .Minutes of the J une 25, 2018 S pecial City Council Meeting C.Minutes of the J uly 9, 2018 City Council S tudy S ession D.Claims Vouchers (Coleman) Claims vouchers 449294 through 449488 in the amount of $945,432.00 and five wire transfers in the amount of $697,222.35 and dated J uly 2, 2018; and Claims vouchers 449489 through 449881 in the amount of $4,849,682.07 and three wire transfers in the amount of $542,704.80 and dated J uly 16, 2018. E .P ayroll Vouchers (Coleman) P ayroll check numbers 537969 through 537997 in the amount of $509,598.87 and electronic deposit transmissions in the amount of $1,953,412.93 for a grand total of $2,463,011.80 for the period covering J une 14, 2018 to J une 27, 2018; and P ayroll check numbers 537998 through 538028 in the amount of $241,286.17 and electronic deposit transmissions in the amount of $2,383,449.87 for the period covering J une 28, 2018 to J uly 11, 2018. F.P ublic Works P roject No. C P 1718 City Council approve award of Contract No. 18-05, to Miles Resources, L L C on their low bid of $1,172,110.00 for Project No. C P1718 - South 277th Street P reservation P roject Page 2 of 71 (RECOMMENDED ACTION: City Council approve the Consent Agenda.) V I I I .UNF INIS HE D B US I NE S S I X.NE W B US I NE S S X .O RD INANC E S A .Ordinance No. 6685 (Gaub) A n Ordinance of the City Council of the City of A uburn, Washington, authorizing the Mayor to execute a Payback A greement between the City of A uburn and J eff and Gwen J ohnston for a utility extension (RECOMMENDED ACTION: City Council adopt Ordinance No. 6685.) B .Ordinance No. 6686 (Tate) A n Ordinance of the City Council of the City of A uburn, Washington, relating to a construction sales tax exemption, re-enacting the exemption, and amending Chapter 3.60 of the Auburn City Code (RECOMMENDED ACTION: City Council adopt Ordinance No. 6686.) X I .RE S O L UT IO NS A .Resolution No. 5374 (Hinman) A Resolution of the City Council of the City of A uburn, Washington, authorizing the Mayor to execute the Real E state E asement Agreement between the City of A uburn and P uget S ound Energy for conveyance of a utility easement (RECOMMENDED ACTION: City Council adopt Resolution No. 5374.) X I I .M AY O R AND C O UNC I L M E M B E R RE P O RT S At this time the Mayor and City Council may report on significant items associated with their appointed positions on federal, state, regional and local organizations. A .From the Council B .From the M ayor X I I I .AD J O URNM E NT 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. Page 3 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Public Hearing for Johns ton Sewer Payback Agreement (Gaub) Date: July 6, 2018 Department: CD & PW Attachments: No Attac hments Available Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: City Counc il to c onduct a public hearing to be held July 16, 2018 to rec eive public c omments and s uggestions with regard to the proposed Ordinance No. 6685 - Johns ton Sewer Payback Agreement. Background Summary: This public hearing is in acc ordanc e with Auburn City Code 3.25.080 in order to “listen to testimony as it relates to the desirability and the sufficiency of the proposed as s es s ment reimburs ement area and methods of calc ulating reimburs ement assessments and the amounts thereof,” regarding the approval of Ordinance No. 6685 – the Johnston Sewer Paybac k Agreement prior to cons ideration by City Council for approval. Reviewed by Counc il Committees : Counc ilmember:Staff:Gaub Meeting Date:July 16, 2018 Item Number:PH.1 Page 4 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the June 18, 2018 Regular City Council Meeting Date: July 9, 2018 Department: Adminis tration Attachments: 06-18-2018 Minutes Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: Background Summary: Reviewed by Counc il Committees : Counc ilmember:Staff: Meeting Date:July 16, 2018 Item Number:CA.A Page 5 of 71 City Council Meeting J une 18, 2018 - 7:00 P M City Hall Council Chambers MINUT E S Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C AL L T O O RD E R A .P ledge of Allegiance Mayor Nancy B ackus called the meeting to order at 7:00 p.m. in the Council Chambers of Auburn City Hall, 25 West Main S treet in A uburn and led those in attendance in the P ledge of A llegiance. B .Roll Call Councilmembers present: Acting Deputy Mayor Bill P eloza, L arry B rown, Claude DaCorsi, J ohn Holman, Yolanda Trout-Manuel, and L argo Wales. Councilmember B ob Baggett was excused. Mayor Nancy B ackus and the following department directors and staff members were present: City A ttorney D aniel B . Heid, I nnovation and Technology D irector Paul Haugan, P olice Chief B ob L ee, Assistant Police Chief Bill P ierson, Finance Director S helley Coleman, A ssistant Director of E ngineering S ervices/C ity E ngineer I ngrid Gaub, A ssistant Director of Community Development S ervices J eff Tate, D irector of Administration Dana Hinman, Compensation and E mployee Relations Manager A aron B arber, Parks, A rts and R ecreation D irector Daryl F aber and D eputy City Clerk S hawn Campbell. I I .ANNO UNC E M E NT S, P RO C L AM AT IO NS, AND P RE S E NTAT I O NS A .Chief L ee Retirement Proclamation & Presentation Mayor Backus to proclaim J une 22, 2018 as "Chief B ob L ee Retirement Day" in the city of A uburn. Mayor Backus read and presented the proclamation declaring J une 22, 2018 as "Chief B ob L ee Retirement Day" in the City of A uburn to Police Chief Bob L ee. Chief L ee thanked the Mayor and Council for their support over his entire career. Chief L ee stated he is honored to work with such great directors and staff. A video honoring Chief L ee and commemorating his career at the City was Page 1 of 7Page 6 of 71 played for the audience. B .City Attorney Dan Heid P roclamation & P resentation Mayor Backus to proclaim J une 30, 2018 as "Dan Heid Retirement Day" in the city of A uburn. Mayor Backus read and presented the proclamation declaring J une 30, 2018 as "Dan Heid Retirement Day" in the City of A uburn to City A ttorney Dan Heid. City Attorney Heid stated he has been the City A ttorney for many cities in Washington but he chose to stay at the City of Auburn the longest because Auburn has been the best City to work for. He commended the past and present Mayors and Councilmembers. City Attorney Heid said the City is fortunate to have excellent department directors and staff. Mayor Backus played a video highlighting City A ttorney Heid's sense of humor. I I I .AP P O I NT M E NT S Mayor Backus announced the Assistant P olice Chief B ill Pierson will be the new Chief of P olice effective J une 23, 2018 A ssistant Chief P ierson thanked Chief L ee and the Mayor and Council for the honor. I V.AG E ND A M O D I F IC AT I O NS There were no modifications to the agenda. V.C IT IZE N I NP UT, P UB L I C HE ARI NG S AND C O RRE S P O ND E NC E A .P ublic Hearings 1.Public Hearing on the 2019-2024 Transportation I mprovement Plan City Council conduct a public hearing to receive public comments and suggestions with regard to the proposed modifications to the 2019-2024 Transportation I mprovement Plan (T I P ). Councilmember Peloza shared his concerns about the Transportation I mprovement Program. He requested the departmental policies regarding how roads are chosen for preservation and replacement be reviewed. Councilmember Wales stated she would like the policies reviewed also and believes the Roads Ad Hoc Committee is currently working toward this goal. Page 2 of 7Page 7 of 71 Councilmember DaCorsi stated the Roads A d Hoc Committee is reviewing the Transportation I mprovement P rogram project by project. W hen the Committee has completed their review, they will be considering adding or taking away projects based on available funds. The Committees' review will not be done in the near future. Councilmember Peloza requested the ad hoc committee add the policies to their scope. Mayor B ackus opened the public hearing at 7:58 p.m. F reda Bingham, 625 9th Street S E , Auburn Ms. Bingham lives in the area of the Senior Center she requested a four way stop be added at 9th Street S E and H S treet S E. W ith no further people requesting to speak, Mayor Backus closed the public hearing 8:02 p.m. 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. E van S ipple, 10833 295th S treet, Auburn Mr. Sipple has lived in A uburn for seven years. He expressed his concern about the rapid growth on L ea Hill and requested the City look at the zoning for apartments to encourage proper growth management in the area. B ob Z immerman, 33029 46th 295th S treet, Auburn Mr. Z immerman expressed his concern regarding a propane tank near his home. L iz Miller, 5121 Nathan L oop S E, A uburn Ms. Miller thanked Chief L ee and City A ttorney Heid for their wonderful service to the City. C.Correspondence There was no correspondence for Council to review. V I .C O UNC I L AD HO C C O M M IT T E E RE P O RT S 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. Councilmember B rown, chair of the Finance ad hoc committee, reported he and Councilmember Holman reviewed claims vouchers in the amount of $5.6 million and payroll vouchers dated May 31, 2018 to J une 13, 2018, in the approximate amount of $2.25 million. Councilmember Brown reported Page 3 of 7Page 8 of 71 all items were in order, and the ad hoc committee recommends approval. Councilmember DaCorsi, chair of the Roads Projects ad hoc committee, reported the ad hoc committee has not met since the last C ouncil meeting, but is scheduled to meet J uly 3rd. V I I .C O NS E NT AG E ND A 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 March 29, 2018, March 30, 2018, May 14, 2018 and J une 5, 2018 Special City Council Meetings B .Minutes of the May 29, 2018 City Council S tudy S ession C.Minutes of the J une 4, 2018 City Council Meeting D.Claims Vouchers (Coleman) Claim voucher numbers 449077 through 449293 in the amount of $5,111,076.17 and two wire transfers in the amount of $549,489.97 and dated J une 18th, 2018. E .P ayroll Vouchers (Coleman) P ayroll check numbers 537946 through 537968 in the amount of $231,388.85, electronic deposit transmissions in the amount of $2,020,913.69 for a grand total of $2,252,302.54 for the period covering May 31, 2018 to J une 13, 2018. F.P ublic Works P roject No. C P 1717 City Council to award Contract No. 18-02, to Tucci & Sons, I nc. on their low bid of $2,192,069.20 plus Washington State sales tax of $61,307.08 for a total contract price of $2,253,376.28 for P roject No. C P 1717, 2018 L ocal Street P avement Reconstruction Project Councilmember P eloza moved and Councilmember Trout-Manuel seconded to approve the Consent A genda. MO T I O N C A R R I E D UNA NI MO US LY. 6-0 V I I I .UNF INIS HE D B US I NE S S There was no unfinished business. I X.NE W B US I NE S S There was no new business. X .O RD INANC E S A .Ordinance No. 6659 (Heid) A n Ordinance of the City Council of the City of A uburn, Washington, amending Section Page 4 of 7Page 9 of 71 1.24.010 of the Auburn City Code and creating a new Chapter 9.24 of the A uburn City Code relating to new gross misdemeanor violations concerning drug-related activities Councilmember B rown moved and Councilmember Trout-Manuel seconded to adopt Ordinance No. 6659. MO T I O N C A R R I E D UNA NI MO US LY. 6-0 B .Ordinance No. 6682 (Coleman) A n Ordinance of the City Council of the City of A uburn, Washington, creating a new Chapter 3.06 - repurposing of special capital funds - establishing a multi-year capital budgeting process, accommodating repurposing of certain monies within the same special funds and establishing guidelines for transferring monies between projects within the same capital funds Councilmember Holman moved and Councilmember DaCorsi seconded to adopt Ordinance No. 6682. MO T I O N C A R R I E D UNA NI MO US LY. 6-0 C.Ordinance No. 6684 (Coleman) A n Ordinance of the City Council of the City of A uburn, Washington, amending Ordinance No. 6621, the 2017-2018 B iennial B udget Ordinance, as amended by Ordinance No. 6646, Ordinance No. 6656, Ordinance No. 6665, Ordinance No. 6666, and Ordinance No. 6680, authorizing amendment to the City of Auburn 2017-2018 B udget as set forth in Schedule “A ” and S chedule “B” Councilmember Holman moved and Councilmember Brown seconded to adopt Ordinance no. 6684. MO T I O N C A R R I E D UNA NI MO US LY. 6-0 X I .RE S O L UT IO NS A .Resolution No. 5355 (Gaub) A Resolution of the City Council of the City of A uburn, Washington, approving the 2019-2024 Transportation I mprovement Program of the City of A uburn pursuant to R.C.W. Chapter 35.77 of the laws of the S tate of Washington Councilmember DaCorsi moved and Councilmember Holman seconded to approve Resolution No. 5355. MO T I O N C A R R I E D 5-1; Councilmember Wales voted no. B .Resolution No. 5356 (Gaub) A Resolution of the City Council of the City of A uburn, Washington, authorizing the Mayor to execute an agreement with S ensus US A , I nc. for software as a service relating to remote water meter reading Councilmember DaCorsi moved and Councilmember Holman seconded to approve Resolution No. 5356. Page 5 of 7Page 10 of 71 MO T I O N C A R R I E D UNA NI MO US LY. 6-0 X I I .M AY O R AND C O UNC I L M E M B E R RE P O RT S At this time the Mayor and City Council may report on significant items associated with their appointed positions on federal, state, regional and local organizations. A .From the Council Councilmember P eloza reported he attended the Metropolitan S olid Waste Management A dvisory Committee and a celebration for Don S tevenson, aka the Pacing Parson. Councilmember Trout-Manuel reported she participated in a phone conference with the National L eague of Cities P ublic S afety Committee and attended the Blue Ribbon Committee graduation. Councilmember Wales stated she is concerned with her garbage bill from Republic Waste, the bill has been increased due to new recycle rates. Councilmember Holman noted J une 3rd was the City of Auburn's birthday. Councilmember Holman stated he had the honor of awarding the J uan Huseby S chool District Scholarships. Councilmember DaCorsi reported he attended the South County City Officials meeting on affordable housing. B .From the M ayor Mayor Backus reported she attended the meeting with the South E nd Mayors and City A dministrators on A ffordable Housing and the Vietnam War Memorial ribbon cutting. Mayor B ackus reported that Tuesday, J une 19th is the Community P icnic at Brennan Park and the Mayor's Taskforce on Homelessness is reconvening on Thursday, J une 21st. X I I I .E X E C UT IV E S E S S I O N 1.Executive Session At 8:12 p.m. and immediately following the Ad Hoc Committee Reports, Mayor Backus recessed the meeting to executive session pursuant to R C W 42.30.110(1)(i) for approximately five minutes to discuss potential litigation. Mayor B ackus reconvened the meeting at 8:18 p.m. X I V.AD J O URNM E NT There being no further business to come before the Council, the meeting adjourned at 8:42 p.m. A P P R O V E D T HE 16th D AY O F J uly, 2018. Page 6 of 7Page 11 of 71 ___________________________ ________________________ NA NC Y B A C K US, MAYO R Shawn Campbell, Deputy City Clerk 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. Page 7 of 7Page 12 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the June 25, 2018 Special City Council Meeting Date: July 10, 2018 Department: Administration Attachments: 06-25-2018 Minutes Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:July 16, 2018 Item Number:CA.B Page 13 of 71 Special City Council Meeting J une 25, 2018 - 5:30 P M City Hall Council Chambers A GE NDA I .C AL L T O O RD E R A .P ledge of Allegiance Mayor Nancy B ackus called the special meeting to order at 5:30 p.m. in the Council Chambers of Auburn City Hall, 25 West Main S treet in A uburn and led those in attendance in the P ledge of A llegiance. B .Roll Call Councilmembers present: L arry B rown, Claude DaCorsi, Yolanda Trout- Manuel and L argo Wales. Deputy Mayor Bob B aggett, Councilmember J ohn Holman and Councilmember B ill Peloza were excused. Mayor Nancy B ackus and the following department directors and staff members were present: City Attorney Steven Gross, P olice Commander Dan O'Neil, Finance Director Shelley Coleman, A ssistant D irector of E ngineering S ervices/C ity E ngineer I ngrid Gaub, A ssistant Director of Community Development Services J eff Tate, Director of Human Resources and Risk Management Candis Martinson, Compensation and E mployee Relations Manager A aron Barber, A ssistant F inance Director K evin F uhrer and Deputy City Clerk S hawn Campbell. I I .C O NS E NT AG E ND A 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 .P ublic Works P roject No. C P 1725 (Gaub) City Council to award Contract No. 18-09, to L akeside I ndustries I nc. on their low bid of $2,370,331.52 for P roject No. C P 1725, 2018 Citywide P atch and Overlay P roject Councilmember DaCorsi moved and Councilmember Trout-Manuel seconded to approve the consent agenda. MO T I O N C A R R I E D UNA NI MO US LY. 4-0 I I I .RE S O L UT IO NS A .Resolution No. 5375 (Coleman) Page 1 of 2Page 14 of 71 A Resolution of the City Council of the City of A uburn, Washington, authorizing the acceptance and appropriation of grant funds in the amount of Twenty-five T housand Two Hundred F orty-two Dollars ($25,242.00), and authorizing the Mayor to execute an interlocal agreement between the Washington State Department of E cology and the City of Auburn to accept said funds for implementation of the 2017-2019 L ocal Solid Waste Financial Assistance Grant program Councilmember B rown moved and Councilmember DaCorsi seconded to approve Resolution No. 5375. MO T I O N C A R R I E D UNA NI MO US LY. 4-0 B .Resolution No. 5376 (B arber) A Resolution of the City Council of the City of A uburn, Washington, authorizing the Mayor to take steps to comply in accordance with Section 41.50.152 of the Revised Code of Washington regarding a city employee cashing-out unused annual leave in excess of two hundred forty hours Councilmember DaCorsi moved and Councilmember Brown seconded to approve Resolution No. 5376. Councilmember Wales asked how many employees this resolution will this affect. S he wants to encourage employees to take their vacation time. Manager Barber explained this only affects P E R S 1 employees. Those who have retired in the past did not have the excess compensation. Councilmember Trout-Manuel asked how this will affect the retirees retirement. Manager B arber explained the retiree will receive additional retirement funds based on their accrued vacation. MO T I O N C A R R I E D UNA NI MO US LY. 4-0 I V.AD J O URNM E NT There being no further business to come before the Council, the meeting adjourned at 5:41 p.m. A P P R O V E D T HE 16th D AY O F J uly, 2018. ___________________________ ________________________ NA NC Y B A C K US, MAYO R Shawn Campbell, Deputy City Clerk 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. Page 2 of 2Page 15 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the July 9, 2018 City Council Study Session Date: July 10, 2018 Department: Administration Attachments: 07-09-2018 Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:July 16, 2018 Item Number:CA.C Page 16 of 71 City Council Study Session Muni Serv ices S FA J uly 9, 2018 - 5:30 P M Council Chambers - City Hall A GE NDA Watch the meeting v ideo Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R Deputy Mayor Bob B aggett called the meeting to order at 5:33 p.m. in the Council Chambers of A uburn City Hall, 25 West Main S treet in Auburn. A .Roll Call Councilmembers present: Deputy Mayor B ob Baggett, L arry B rown, Claude DaCorsi, J ohn Holman, Bill P eloza, Yolanda Trout-Manuel and L argo Wales. Mayor Nancy Backus and the following department directors and staff members were present: City A ttorney S teve Gross, Assistant Director of E ngineering Services/City Engineer I ngrid Gaub, P olice Chief B ill P ierson, I nnovation and Technology Customer S upport Manager Reba S towe, S ewer Utility E ngineer B ob Elwell, A ssistant Director of Community Development S ervices J eff Tate, and Deputy City Clerk S hawn Campbell. I I .A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS There was no announcement, report or presentation. I I I .A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .J ohnston Sewer Payback A greement (Gaub) (10 Minutes) A n Ordinance of the City Council of the City of A uburn, Washington, authorizing the Mayor and City Clerk to execute a Payback A greement between the City of Auburn and J eff and Gwen J ohnston for a Utility E xtension S ewer Utility E ngineer E lwell explained the purpose of a payback agreement, the benefits that are possible to the City and property owners and the process the applicant goes through to have a payback agreement put into place. Councilmember Wales questioned the disbursement of costs for each resident and why they would want to go onto sewer. Sewer Utility Engineer E lwell explained if the property owner's septic failed or if they wanted to Page 1 of 3Page 17 of 71 subdivide their lot they would be required to connect to the City sewer if it was available. Councilmember P eloza asked if the City gets a fee for the administrative work done for this project. S ewer Utility E ngineer E lwell said the City receives $2,500.00 at the start of the application process. Councilmember Trout-Manuel asked about the cost of hooking up to the City sewer. S ewer Utility E ngineer E lwell explained the City fees incurred by a resident when hooking up to the City sewer system including the permit fee of approximately $200.00 and the S ystem Development Charge of $2,400.00. B .Ordinance No. 6686 (Tate) A mendments to Auburn City Code S ection 3.60.036 related to the renewal of the construction sales tax exemption program. A ssistant Director Tate introduced Ordinance No. 6686 regarding the construction sales tax exemption. He explained this is a rebate program, and developers that meet the criteria must apply for a reimbursement. T he reimbursement is for the portion of sales tax that comes to the City. Councilmember Wales stated the construction sales tax is designated to local streets. S he asked Council to discuss the intent and purpose of the exemption. Councilmember Holman stated this rebate provides the City with an additional tool to encourage development. Councilmember DaCorsi stated there are limitations on a developer's ability to apply for the rebate. Councilmember B rown asked why the department requested to eliminate the sunset date opposed to creating a future sunset date. Assistant Director Tate stated typically the sunset date is included to test the proposed incentive; once it is renewed, the City has typically eliminated the sunset date. I V.MUNI C I PA L S E RV I C E S D I S C US S I O N I T E MS A .S urrender Firearms Protocols (P ierson) (20 Minutes) P resentation on the protocols for surrendering firearms. Chief Pierson presented Council with the City's protocol for surrendering firearms for anyone convicted of a felony or various other types of crimes that prohibit a person from being allowed to possess a firearm. I f the City is in possession of a firearm and a person requests the firearm returned, police staff will research if the person has the right to have that firearm. F irearms can also be brought to the police for surrender if the Page 2 of 3Page 18 of 71 person has been ordered to surrender all firearms in their possession. Deputy Mayor Baggett asked how the police determine probable cause to attain a search warrant if the person does not surrender their firearms. Chief Pierson stated the police investigate through if there is a more then likely chance of guns still being in the home. They present their evidence to a judge who then issues a search warrant for the firearms. Councilmember Wales asked what happens to the guns once they have been surrendered and not returned. Chief P ierson stated they are destroyed. City Attorney Gross stated the City does not determine if a person can or cannot have the firearm. I t is determined by Washington State L aw. I f a person has a firearm and is no longer allowed to have it, they can enter into a third party agreement to transfer the interest to a person who is allowed to have the firearm. V.O T HE R D I S C US S I O N I T E MS There was no other discussion item. V I .NE W B US I NE S S There was no new business. V I I .MAT R I X A .Matrix Councilmembers reviewed the matrix. Mayor Backus stated she is going to the Redmond Community Court in A ugust and will provide a presentation for Council in S eptember. Park rules and fireworks will be for a future discussion. City Attorney Gross noted that a majority of Councilmembers must be interested in a topic to add it to an upcoming agenda. V I I I .A D J O UR NME NT There being no further discussion, the meeting adjourned at 6:19 p.m. A P P R O V E D this 16th day of J uly, 2018. _____________________________ ________________________ B O B B A G G E T T, D E P UT Y MAYO R Shawn Campbell, Deputy City Clerk 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. Page 3 of 3Page 19 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Claims Vouchers (Coleman) Date: June 27, 2018 Department: Finance Attachments: No Attachments Av ailable Budget Impact: Administrativ e Recommendation: City Council approve claims vouchers. Background Summary: Claims vouchers 449294 through 449488 in the amount of $945,432.00 and five wire transfers in the amount of $697,222.35 and dated July 2, 2018; and Claims vouchers 449489 through 449881 in the amount of $4,849,682.07 and three wire transfers in the amount of $542,704.80 and dated July 16, 2018. Rev iewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:July 16, 2018 Item Number:CA.D Page 20 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Payroll Vouc hers (Coleman) Date: June 27, 2018 Department: Financ e Attachments: No Attachments Available Budget Impact: Adminis trative Rec ommendation: City Counc il approve payroll vouc hers. Background Summary: Payroll c hec k numbers 537969 through 537997 in the amount of $509,598.87 and elec tronic depos it trans mis s ions in the amount of $1,953,412.93 for a grand total of $2,463,011.80 for the period covering June 14, 2018 to June 27, 2018; and Payroll c hec k numbers 537998 through 538028 in the amount of $241,286.17 and elec tronic depos it trans mis s ions in the amount of $2,383,449.87 for the period c overing June 28, 2018 to July 11, 2018. Reviewed by Counc il Committees : Financ e Counc ilmember:Staff:Coleman Meeting Date:July 16, 2018 Item Number:CA.E Page 21 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Public Works Project No. CP1718 Date: June 26, 2018 Department: CD&PW Attachments: Budget Status Sheet Bid Tab Summary CP1718 Vicinity Map Budget Impact: Current Budget: $0 Proposed Revision: $40,000.00 Revised Budget: $0 Administrativ e Recommendation: City Council approve award of Contract No. 18-05, to Miles Resources, LLC on their low bid of $1,172,110.00 for Project No. CP1718 - South 277th Street Preservation Project. Background Summary: The City received 1 responsive bid which was approximately 21% above the engineer’s estimate. Staff has performed reference checks and other verifications to determine that Miles Resources, LLC meets the responsible bidding criteria and recommends award. The bid came in higher than anticipated due to recent increases in oil costs, a tightened supply of available paving contractors, and the requirement to pave 277th during nighttime hours to reduce traffic impacts. Re-advertising this project will not likely result in lower bids and will delay the project. Therefore, it is in the public’s best interest to award the contract to Miles Resources, LLC. The purpose of the project is to rehabilitate and preserve the existing pavement on South 277th Street between the SR167 North Bound Off Ramp and Auburn Way North and upgrade facilities to meet current Americans With Disabilities Act (ADA) standards. Construction is expected to begin in August 2018 and be completed by November 2018. A project budget shortfall of $40,000.00 exists in the 105 (Arterial Street) Fund. It is anticipated that the necessary funds will be transferred into the project via Budget Amendment #7. Rev iewed by Council Committees: Councilmember:Staff:Gaub Meeting Date:July 16, 2018 Item Number:CA.F Page 22 of 71 Page 23 of 71 Project No: CP1718 Project Title: Project Manager: Luis Barba Project Update Project Initiation (PMP) Date: 12/12/2017 Permision to Advertise Advertisement Date: 06/14/2018 Permission Award Award Date: 07/16/2018 Change Order Approval Contract Final Acceptance Funding 2017 (Actual)2018 2019 Future Years Total *105 Fund - Unrestricted 0 662,380 0 0 662,380 105 Fund - Federal NHS Grant 0 662,380 0 0 662,380 Total 0 1,324,760 0 0 1,324,760 Activity 2017 (Actual)2018 2019 Future Years Total Pre-Design Engineering - City Costs 2,885 4,908 0 0 7,794 Design Engineering - City Costs 0 60,000 0 0 60,000 Design Engineeing - Permitting 0 2,500 0 0 2,500 Construction Contract Bid 0 1,172,110 0 0 1,172,110 Authorized Construction Contingency 0 62,356 0 0 62,356 Materials Testing 0 10,000 0 0 10,000 Construction Engineering- State Cost 0 5,000 0 0 5,000 Construction Engineering - City Costs 0 45,000 0 0 45,000 Total 2,885 1,361,874 0 0 1,364,760 2017 (Actual)2018 2019 Future Years Total *105 Funds Budgeted ( )0 (1,324,760)0 0 (1,324,760) 105 Funds Needed 2,885 1,361,874 0 0 1,364,760 *105 Fund Project Contingency ( )0 0 0 0 0 105 Funds Required 2,885 37,114 0 0 40,000 * ( # ) in the Budget Status Sections indicates Money the City has available. ENG-270, Revised 12/17 105 Arterial Preservation Budget Status BUDGET STATUS SHEET S 277th Street Preservation Project Updated: July 10, 2018 The "Future Years" column indicates the projected amount to be requested in future budgets. Funds Budgeted (Funds Available) Estimated Cost (Funds Needed) \\coa.auburn.local\dept\Building\PROJ\CP1718-South 277th Street Preservation\3.00 Project Management\3.20 Budget\CP1718 Budget Status Sheet.xls 1 of 1Page 24 of 71 Page 25 of 71 1:4,514 S 277th Street Preservation Project - Vicinity Map 0.10.070.1 0 Miles NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet Information shown is for general reference purposes only and does not necessarily represent exact geographic or cartographic data as mapped. The City of Auburn makes no warranty as to its accuracy. Map Created by City of Auburn eGIS Imagery Date: May 2015 5/26/2017Printed Date: 1 in =0.07 ft Page 26 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6685 (Gaub) Date: July 6, 2018 Department: CD & PW Attachments: Ordinance No. 6685 Johns ton Payback Vicinity Map Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: City Council introduce and adopt Ordinance No. 6685. Background Summary: Jeff and Gwenn Johnston have constructed a public sanitary sewer line near ‘I’ Street NW to serve their home at 4040 ‘I’ Street NE. The line consists of approximately 300 feet of 8” sewer main and two manholes installed from the existing sewer main in ‘I’ Street NE to the east end of a joint access driveway. Mr. and Mrs. Johnston have requested a Payback Agreement from the City. The Payback agreement would allow the developer to recover partial costs related to the design and construction of the sanitary sewer improvements over time when other benefiting properties choose to connect to the system. The proposed agreement was reviewed by Council at the July 9, 2018 Council Study Session. Ordinance No. 6685 authorizes the Mayor to enter into this agreement with Jeff and Gwen Johnston. The property owners within the “assessment reimbursement area” have been notified of the potential future charges and a public hearing on the ordinance that will be held during the July 16, 2018 City Council Meeting. Rev iewed by Council Committees: Councilmember:Staff:Gaub Meeting Date:July 16, 2018 Item Number:ORD.A Page 27 of 71 ORDINAPICE NO. 6 6 8 5 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A PAYBAGK AGREEMENT BETWEEN THE CITY OF AUBURN AND JEFF AND GWEN JOHNSTON FOR A UTILITY EXTENSIDN WHEREAS, Chapter 3.25 of the Auburn City Code (ACC) authorizes the City Engineer to develop, implement and administer, and fhe City Council to I' approve, extension payback agreements for utility improvements; and WHEREAS, Jeff and Gwen Johnston ("the Johnstons") have constructed the utility improvements described in the payback agreement that is attached as Exhibif D; and WHEREAS, the Johnstons have provided the City with a map and legal descriptions identifying the boundaries of the assessment reimbursement area and each parcel that shall be subject to an assessment for the utility improvements; and WHEREAS, the Johnstons have provided the City with the total cost of the improvements and a preliminary reimbursement roll showing the proposed assessment for each parcel of property within the assessment reimbursement area; and WHEREAS, the City notified each owner of record of a lot, tract, or parcel within the reimbursement assessment area, through publication and certified mail, of a public hearing to consider this ordinance; and WHEREAS, the City Council held a public hearing and took testimony on the desirability and sufficiency of the assessment reimbursement area, the Ordinance No. 6685 June 14, 201.8 Page 1 of 3 Page 28 of 71 methods of calculating reimbursement assessments, and the assessment amounts; and WHEREAS, the City Council finds that entry into the payback agreement is in the best interest of the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. The assessment reimbursement area that shall be subject to assessment by the City for the cost of the utility system improvement completed by the Johnstons is established as that area described in Exhibit A and shown in Exhibit B. Section 2. The amount of the reimbursement assessment to be cha ged to each lot, tract or parcel within the assessment reimbursement area is established as those amounts listed in Exhibit C. Section 3. The Mayor of the Gity of Auburn are hereby authorized to execute an Agreement befinreen the City of Auburn and the Johnstons for the collection of assessments in the amounts and from the owners of the lots, tracts, and parcels established in this ordinance, which agreement shall be in substantial conformity with the agreement attached as Exhibit D. Section 4. Implementation. The Mayor is authorized to implement such administra#ive procedures as may be necessary to carry out the directions of this legislation. Section 5. 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 6. 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. Ordinance No. 6685 June 14, 2018 Page 2 of 3 Page 29 of 71 INTRODUCED: PASSED: APPROVED: NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVE S TO FORM: Steven L. Gross, City Attorney Published: Ordinance No. 6685 June 14, 2018 Page 3 of 3 Page 30 of 71 Exhibit A Ordinance 6685 Legal Description of Assessment Reirnbursement Area Lots l, 2, and 3 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number 8106090801 in King County, Washington; along with Parcels A, B, and C of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded under Recording Number 20171013900003 in King County, Washington. Page 31 of 71 Exhibit B Ordinance 6685 Assessment Reimbursement Area C , F ,. ' x,s . a s; Ns. i x.. y. ._ . . 4 y Parcel f,f;' ooa4 o-o0r, P8t'C8 y. .; • 00042tI-002Q; :' na E : . 34,567 Sf) y 33,7 2,sf1 E M: t. Parcel ' 000424-}(?11 , j4B,fi29 sf) .' j .: ' EE,. F : f t: 3 s a h 3 1 f'3 E t` w}', • 3 3A 3y "x t i5 .E 1:c4 J j. Fi , +:i' 3` z,;,. c e;a .n _ 2. ie E x e£,` RK 1 Y ., F Newiy consfruc#etl. 4 2 tTt [ B3Ct'[I;SI w c TihO'S r j{}8"'i 1(aiB i : Ezisting Sewer s ` g= ' ine antl Marrhole af P1rcBl aoa4 o-a.Parce! Parcei26,39v sf} Q00420=401. ;. . . . QE?t7 F20,0028 x 29,858 sf) 214;Sf) E.,A R k, ' P 3c E E i nE E€ Page 32 of 71 Exhibit C Ordinance 6685 Johnston Sewer Extension Benefitting Properfies Reimbursement Fees Parcel ' Parcel Project Cost Reimbursement Number Address Current Owner _ Area s ' A ortionment Amount 000420- 4036I Surinder 33,742 13,052.01 13,052.01 OU20 Street NE Khan ra 000420- Labrador 29,858 11,549.61 11,549.61 0010 Ventures LLC 000420- Labrador 26,395 10,210.06 10;210.06 0027 Ventures LLC 000420- Labrador 26,214 10,140.05 10,140.05 0028 Ventures LLC OOU420- 4040 I Bernard and 46,629 18,063.93 03 001 l. Street NE Sandra Johnston 000420- 4046 I Patrick Kihuria 34,567 13,371.14 0° 0021 Street NE and Anne Kiarie Total $44,951:73 Notes: 1)Parcel area at the time of faeility completion 2)Based on total project cost of$76,359.80 divided by the total area of the six parcels 3) Developer contribution made at time of construction 4) Reimbursement was made directly to Developer during construction. Page 33 of 71 xhibit D Ordinance 6685 Payback Agreement 2018-01 16 pages) Page 34 of 71 Return Address: City of Auburn City Clerk 25 West Main Auburn, WA 98001 Above this line reserved for recording information. PAYBACK AGREEMENT 2018-01 DEVELOPER'S EXTENSION Reference#(if applicable): N/A(unless previous recording#) Additional on page: Grantor : City of Auburn Grantee : 1)Jeff Johnston 2) Legal Description/STR: (Sec 31,Twp 22N, Rge SE) Additional on page: Assessor's Tax Parcel ID#: (parcel#) This Agreement made and entered into this day of 2018,by and between the City of Auburn, a municipal corporation of King County, Washington, hereinafter called the CITY and Jeff and Gwen Johnston, whose address is 4040 I Street NE, Auburn, WA 98002, hereinafter referred to as DEVELOPER. WHEREAS, pursuant to Chapter 35.91 RCW et seq., the CITY has by Ordinarice No. 6685 adopted by the City Council of the CITY on the day of 2018, approved the execution of this Payback Agreement with the DEVELOPER above and referring to facilities described herein; and PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 1 of 8 Page 35 of 71 WHEREAS, the above-described DEVELOPER has offered and the CITY has agreed to accept the sanitary sewer facilities described in Exhibit 1, Bill of Sale, attached hereto, as part of the utility systems of the CITY; NOW THEREFORE, IN CONSIDERATION OF THE CONDITIONS AND COVENANTS HEREIN, THE PARTIES AGREE AS FOLLOWS: I.DEVELOPER At the time of construction, the above-described DEVELOPER represented Bernard and Sandra Johnston, the record OWNERS of real property legally described as shown on Exhibit 2 submitted by the DEVELOPER and attached hereto. The real property described is also identified as: Parcel number 0004200011, City of Auburn, (King/Pierce) County, Washington DEVELOPER" shall include successors, heirs, and assigns. The term shall include a bankruptcy estate and a receivership as long as the City reeeives notice of the bankruptcy or receivership as the law requires for notice to creditors, and the DEVELOPER provides the notice required by section X of this agreement. II. FACILITIES The facilities which have been constructed by the DEVELOPER herein are as shown in the attached Exhibit 3, incorporated herein by this reference, and processed as a Developer Public Facility Extension, herein referenced as FAC 15- 0010, the originals on file at the office of the City Engineer. The facilities have been constructed in accordance with the ordinances and requirements of the CITY governing the construction specifications for facilities of such type, and have been approved by the City Engineer. III. AREA OF FACILITY SERVICE BENEFIT The properties benefited by the facilities constructed by the DEVELOPER are shown on Exhibits 4 and 5, which are by this reference incorporated herein as if fully set forth herein. Any owner of real estate legally described within the benefit boundary as shown on the attached Exhibits 4 and 5, shall pay, as a condition for connecting to the facilities, the amount as identified in Section V. All property within the benefit boundary shall be subject to the connection fee as provided in this agreement as a condition of issuance of the connection permit by the CITY. PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 2 of 8 Page 36 of 71 IV. TERMS For a period of 20 years from the date that the City formally accepts the developer's utility extension, any owner (latecomer) of real estate legally described in Section III, and which owner has not fully contributed their pro rata share to the original cost of the above-described facility, shall pay to the CITY the amounts specified in Section V of this agreement. The charge herein represents the fair pro rata share of the cost of construction of said facilities payable by properties benefited. Payment of the latecomers pro rata share will be required by the CITY at the time the CITY issues a side sewer permit, as described in Auburn City Code (ACC) 13.20.190 and 13.20.200, to conneet and use the system. Facility extension agreements are not considered connection permits and no payback payments will be required as a condition of the construction associated with such agreements. Additionally, no payback payments will be required as a condition of the construction of individual side sewer stubs not connected for service. The CITY shall reimburse the DEVELOPER within sixty(60) days of the date the City receives payment from a person requesting connection to the facilities. Upon the expiration of the 20-year term, any moneys collected by the CITY will not be reimbursed to the DEVELOPER. The CITY's obligation to reimburse the DEVELOPER under this section shall not apply to any real property purchased from DEVELOPER after construction of the facilities. V. AMOUNT OF REIMBURSEMENT Sanitary sewer collection facilities: The DEVELOPER, his successors, heirs and assigns; agrees that the amounts which the DEVELOPER is reimbursed from the property owners as specified in Section III of this Agreement, represents a fair pro rata share reimbursement for the DEVELOPER'S construction of the facilities described in Section II of this Agreement. The amount of reimbursement per square foot of the benefitted property at the time of the acceptance of the facilities, as listed in Exhibit 6, shall be $0.387. The total amount of reimbursement to the DEVELOPER for sanitary sewer facilities from all applicable charges shall not exceed $44,951.73. In the event that a benefitting prqperiy or properties is/are subdivided prior to connecting to the facilities, the City may realloeate the reimbursement amount(s) in a manner consistent with the methodology described above. The City will notify both the DEVELOPER and the property owner of any revisions to the reimbursement amounts. PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 3 of 8 Page 37 of 71 VI. NOTICE AND HEARING Prior to passing the Ordinance authorizing this agreement,the CITY, shall eonduct a public hearing in accordance with ACC 3.25.080, including meeting the notification requirements of that section. VII. EFFECT OF AGREEMENT The provisions of this Agreement shall not be effective as to any owner of real estate not a party hereto unless this Agreement has been recorded in the King County Recorder's Office prior to the time such owner receives a permit to corinect to and use said facilities. If for any reason,the CITY fails to secure a latecomer payment for Owner's fair pro rata share of the cost of the facilities,before connection to the extension,the CITY is not liable for payment to the DEVELOPER. Following approval of the Ordinance authorizing this agreement, the City will I record the document at the appropriate County's Office. The DEVELOPER shall be responsible for recording fees and for correcting any portion of the document determined to not be recorclable. This agreement is subjeet to the provisions of Auburn City Code ("ACC") Chapter 3.25 and shall be void if the DEVELOPER is in violation of any term or condition of that Chapter as it exists on the date of execution of this agreement, VIII. OWNERSHIP OF FACILITY The DEVELOPER warrants that it has constructed the facilities described in Section II of this Agreement to the CITY's specifications and in conformance with the CITY's development regulations and comprehensive plan,and that the facilities are fit for use as part of the City's sanitary sewer system. Once the CITY has accepted the facilities,they shall become a part of the municipal system of the CITY. The DEVELOPER warrants that the facilities are free and clear of all encumbrances and there are no persons or entities that have a right to a lien against the facilities. Except for work covered under any warrantee described in the FAC agreement, all maintenance and operation costs of said facility shall be borne by the CITY. In consideration of the benefits derived from CITY utility service, DEVELOPER agrees to execute and deliver to the CITY such documents as may be necessary to transfer ownership of the facilities to the CITY upon acceptance. Nothing contained herein shall be construed to affect or impair the right of the CITY to regulate the use of the facilities once accepted. PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 4 of 8 Page 38 of 71 IX. UNAUTHORIZED CONNECTION Whenever any connection is made into the facilities described in Ezhibit A under this Agreement which is not authorized by the CITY, the CITY shall have the absolute authority to remove or cause to be removed such unauthorized connections and all connecting lines or pipes located in the facility's right-of-way. The CITY shall incur no liability for any damage to any person or property resulting from removal of the unauthorized connection. X. CURRENT ADDRESS & TELEPHONE NUMBER The DEVELOPER shall keep a current record of his/her address and telephone number on file with the City Engineer, and shall within 30 days of any change of said address andlor telephone number, notify the City Engineer in writing. If the DEVELOPER fails to do so, the parties agree that the CITY may authorize connections resulting therefrom and not incur any liability for the non-collection and/or non-reimbursement of charges to the DEVELOPER under this Agreement. Every two years from the effective date of this agreement, shown on page one the DEVELOPER shall notify the City Engineer of its current name, address, and telephone number. If the DEVELOPER fails to provide such information within sixty(60)days of each anniversary,the CITY may collect and retain any connection charges owed to the DEVELOPER under this contract. The initial Contact Information and Address for Receipt of Reimbursement Funds is as follows: Jeff and Gwen Johnston Printed Name of Developer's Representative) Techniaue Construction, Inc. Company Name) 4040 I Street NE Mailing Address) Auburn,WA 98002 City,State,Zip code) 206)200-7764 Telephone/FAX) XI. ADMINISTRATION Any inquiries regarding the administration of this agreement shall be directed to the City Engineer. PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 5 of 8 Page 39 of 71 XII. COVENANT RUNNING WITH THE LAND This Agreement shall be binding on the DEVELOPER, its successors, heirs and assigns and shall so be binding on the legal owners of all properties described within the benefit boundary of the area as shown in the attached Exhibits 4, 5, and 6, their suecessors, heirs and assigns. XIII HOLD HARMLESS A. General Indemnification. The DEVELOPER will indemnify, defend, and hold the CITY and the CITY'S officials and agents harmless from all claims and costs of defense arising out of this agreement as a result of DEVELOPER actions, omissions, misconduct, or breach of contract, including but not limited to attorney's fees,expert witness fees,and the cost of the services of engineering i and other personnel who's time is reasonably devoted to the preparation and attendance of depositions, hearings, arbitration proceedings, settlement conferences and trials growing out of the demands and/or actions of property owners incurred in the performance or completion of this Agreement. The DEVELOPER specifically holds the CITY and its officials and agents harmless and waives all claims related to the CITY's establishment and enforcement of the terms and conditions of this agreement, including the failure to locate a beneficiary, assigns, successor, trustee, or survivor of DEVELOPER. B. Indemnification Against Liens. The DEVELOPER further agrees to indemnify and defend the CITY froin any loss on account of any lien against the facilities that arose on or prior to the date of CITY acceptance of the facilities. If the CITY incurs any expense in defense against any such lien or claim, or in taking any other action that is required of DEVELOPER under this Agreement, the CITY shall have a lien in the full amount thereof against any funds then or thereafter collected by the CITY pursuant to this Agreement. XIV. CONSTITUTIONALITY OR INVALIDITY If any section, subsection; clause or phrase of this Agreement is for any reason held to be invalid or unconstitutional, such invalidity or uneonstitutionality shall not affect the validity or eonstitutionality of the remaining portions of this Agreement, • as it being hereby expressly declared that this Agreement and each section, subsection, sentence, clause and phrase hereof would have been prepared, proposed, adopted and approved and ratified irrespective of the fact that any one or more section, subsection, sentence, clause or phrase be declared invalid or unconstitutional. PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 6 of 8 Page 40 of 71 CITY OF AUBURN Nancy Backus,Mayor ATTEST: APPROVED AS TO FORM: Danielle Daskam, City Clerk Steven Gross, City Attorney DEVELOPER: Signatuie Signatwe TITLE: TITLE: PAYBACK AGREEMENT DEVELOPER'S EXTENSION PAGE 7 of 8 Page 41 of 71 STATE OF WASHINGTON ) ss. COUNTY OF K1NG I certify that I know or have satisfactory evidence that Nancy Backus and Danielle E. Daskam were the persons who appeared before me, and said persons acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the MAYOR and CITY CLERK of the CITY OF AUBURN to be the free and voluntary act of such parties for the uses and purposes mentioned in this instrument. Residing at Dated Notary Public in and for the State of Washington My appointment expires STATE OF WASHINGTON) ss COUNTY OF K1NG I certify that I know or have satisfactory evidence that and is/are the person(s) who appeared before me, and said individual(s)acknowledged that he/she/they signed this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and purposes mentioned in this instrument. Dated Notary Public in and for the State of Washington Residing at My appointment expires Dated Notary Public in and for the State of Washington My appointmerit expires PAYBACK.AGREEMENT DEVELOPER'S EXTENSION PAGE 8 of 8 Page 42 of 71 Exhibit 1 Payback Agreement 2018-01 G C;* 2Q'l8o4 oa0 3T35Westbtaip Au ua4 WA 98 1U m 8lLLOR SAtE Rsc:iT&db 0'1+11:tt Al+1 auractcwin,we 95p5'AMEAICAN V Ahoua is linc e6rn+ed fior rococalinA irtfiumarion. ILI OF SAI. FAC1S-0Qla Re'erea ce#(if appli ble): N'A Gcantu lBo aw er: BE[tAfARD W.and SAIVDRA L.JOHYSTON Gran tee'As igna Benefica.aty: CITY OF AUBURN Legai Daescri c r STR: SW3y-221 O SE A ssar's Tax Pa ced I i: OOQ4}0011 f t.. KNOW ALL titE l-$Yf'fH ESE PRESE fTS that for and in cor idtra ion af thc s nn of TE J Q4LI.AIEtS(14.1t?};and bbr_e caasiderat oca a iaoocparating tt Fxl sion i c the City sys em, d ckther good a u!'=.si`I'oent ca Fscd rstian, ec,eipt u ereof is turehy u&nawiedged,drs un4l s g 1 Grutiio s),Bemaaxl W.and Sandra L.lo stan do by+thc e presents hereby acnv eX, scto.a, sign;-t ansfxr and warrant to the City F A ehurn, a A9am cip 11 Gozporation o'ihe Stste af Vdasliic Qian,;240 L6 of 8 i eh sanitary sewer and ai1 app at a ses ar a y other assceea d p l e;:eiliry-as shown a the public facility tactmsie plavrs r£etsed cr as FACiS fl(P1Q, th c 1at c stc n+5 E c nsao dev et pm nt. Si3e tvd withia Fhe falGowip d escrsb real pra Pe y',lacst d•in lCing Cc unty:J,, r }, S EX II IT'A'r1"1"i'ACHED t8E T0 AND BYTH'f';fEEFERENGE+7ADE 1 PART HER QF. a i i Ce sai d Gr sw(s)by wasrant()th r th y re ilt s a.ie owrr r{s of a l ti e P P Y abowe conveyred;;thai th y,ave full pt v r t cctinvey thn rma and that I tey wi I l de6rnd the tiAe of the s;pid Granice agaiittst any d all peasoe s l w ufly akin c aim thcrcta,and indannify the City of Aubcc 6or any casts,includi ag Attomey fees in dcfe cting titic, Saist d tu n f d ot reaoed es n aoc`°'r tt 1 he cxa"^e as ta om or as ta s et ect uqc t+te b73 af Salc—FAC 15 fl t0 Pa c 1 vf 3 Page 43 of 71 CN 'I YfTM S W6 I C?F ltet Gt r ter(s)h srh.ivic ex ut d i res pr*,c tts th s d y of 018_ E6k ltL] .&INST(Te A L9 N+15` r' ,' s rar a w s tt'``y;,„ j s . r•—eG(l Lr'T+TY t}F l t+tG D;:__ ., ; ;; i/,`.,5.- f ; 1 4"t'ti t 11 t fcpO r Oa 1tSw SBt fRCt4t+`t1 t QriC+C t l! mM{I W_dptd S Ix tS,..cs t ti 0u1 a c th c indiv els fea bef m+aurd;`said p cs n c wle,g+d tha t ihcy segae ths s[t rra ern,mu ackml t 10 t+Er,is rt ur fr e a v Cur e act ior e us s esnd p ppse s m8ru3onrsd n i ks enst,ruenen.t r ' tti._ i c xt b(,i,0{ dl,d r !r. u;ii r 1 atary PuBli.c tn mtd far ih at o8l ashin,u t s%d`ing r 4 My'ejl lt}Idt'CIfi1@f![BS7C Lt Y AfiA•"1lb Fifi FA 1#-0QYQ lil9 4,i 1t—IFAC15-0 04 w e ora Page 44 of 71 c tiei r n r r or nT z. a r a uaia tr au T Mc u a y-e+. t ooa u+ arocoea oa era r rt cu.r o s+ouoro sr as.,aa o n+ w sr .oa r o +e o o m wu r, aHAY P i10 9HE E t O DNAT a (u• CTIQdI TGa F" a q e. RSr 4I i IObi C i1h1TX. IMtifi aL PNAR'.lr OF QED A 80dN1 i30 1T II OW+Ei NLA+d C a Tlf Y£5T UNE t F SAiQ QEORGE E. qM6 D ATfL I C.A3lA q ZtIAT IS 28 4,F' 9 IE31LY P' 11 FlOR'i6,T YES1'C il Q. AS 0€E0 P R CyNW!11 4 E.I 17 Oull@ KIAbtCFI , 19p9 A! WEC R'DED Ii,N EJi @oOG MOlI F t TAa3Q l 18, W ld1d0 COUNIY WAS OC O k 1!lc10E OGli1 61AM6 90viFe pt!"d759' 4i T AL10NG 'KME';'I EST IAtF SuAI° ,M3 P. DONA iW1 1.AUN i M f T.E 4F 9tA8 fE Tp TN iR' 5 C 1 k4 i"l43a @AST.A OO AJWCE # 1'l6.d FEEii: ii IOCC IJOFI111 1 7'S9" €A I A Ntt`;:t1Z7' ET. fi CE TO h POINT i ik AT f'NW C K tON BOi9ND.A6i L. AS PER A SAlD pl1NC ARY lWE EENi': 1 EAtCE t 0At1N 88'4FT'Od' YYl.,f A10NG Sai@ iOP i OUNOJ f i t6 A D15 Af IC 2t?94 iFET. YCR fIR L 3S, fME POINT , J 4 e tt:;. i'f V 1}R 1MiFi INR 55. AElL U;IL1'TIE FASQIEIR AS RE ORD D 1JF1C R i EGl9¢I NC AQ082 Tt uiaD Mlti 56 .;', AOJD L T9 WNT f HY E GRESS M!1) U'I!?4'f OVER 1HE S41t,'!H :JQ FE 7 BAIID'3 AiD `; E7'T' FHaT P`OdC110N 11ltM0 d H, 1M£ ABt?VE a '[CT. t.'. lM'. O. R4 E1 iI i; _t. 1 k3i 1 ofi 5p c—FAc:3-4(PaO I°a c 3 of 3 Page 45 of 71 Exhibit 2 Payback Agreement 2018-01 Legal Description of Developer's Represented Property Lot 2 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number 8106090801 in King County, Washington. Page 46 of 71 Exhibit 3 Payback Agreement 2018-01 Facilities Constructed t , j i j i i i Parcel Parcel 000420-OQ20 000420-0021 i{ Parcel New Sewer Manhole 000420-0011 i 6"Side Sewe y i 1' J p Y^ . i f . _ , ... ,._.:._ .`_.:., .._.- t7."' S i , . 300 feet 8"PVC New SewerExistingSewerSewer Manho e r annoie i Existing Sewer ine Parcel Parcel OOQ420-0027 parcel 000420-0010 00042Q-0028 i ' Page 47 of 71 Exhibit 4 Payback Agreement 2018-01 Legal Description of Assessment Reimbursement Area and Benefitting Properties Assessment Reimbursement Area Lots 1, 2, and 3 of Auburn Short Plat Number SP-10-81 as recorded under Recorcling Number 8106090801 in King County, Washingfon; along with Parcels A, B, and C of Auburn Boundary Line Adjustment Number BLA17-OOU8 as recorded under Recording Number 201710139U0003 in King County, Washington. Benefitting Properties Tax Parcel# 000420-0020 Address: 4036 I Street NE Legal Description: Lot 1 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number 8106090801 in King County, Washington. Tax Parcel#000420-0010 Address: N/A Legal Description: Parcel A of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded under Recording Number 20171013900003 in King County, Washington. Tax Parcel #000420-0027 Address: N/A Legal Description: Pareel B of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded under Recording Number 20171013900003 in King County, Washington. Tax Parcel#000420-0028 Address: N/A Legal Description: Parcel C of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded under Recording Number 20171013900003 in King Counry, Washington. Tax Parcel# 000420-0011 Address: 4040 I Street NE Legal Description: Lot 2 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number 8106090801 in King County, Washington. Tax Parcel#000420-0021 Address: 4046 I Street NE Legal Description: Lot 3 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number 8106090801 in King County, Washington. Page 48 of 71 Exhibit 5 Payback Agreement 2018-01 Assessment Reimbursement Area j fi Parcel i i` LL ; 000420=Q021Parcel 000420-0020 34,567 sf) 33,742 sf Parcel s OD0420-0011 f46,629 sf) v OJ s -- s. S S y sewer extension Newi constructed j 2 manholes 300 feet 8" PVC pipe Exisfing Sewer Line and Manhole Parcel 000420-0027 Parcel 26,395 sf) Parcei 000420-0010 000420-0028 29,858 sf) 26,214 sf) Page 49 of 71 Exhibit 6 Payback Agreement 2018-01 Benefitting Properties Reimbursement Fees Parcel Parcel Project Cost Reimbursement Number Address Current Owner Area s ' A ortionment2 Amount 000420- 4036 I Surinder 33,742 13,052.01 13,052.01 0020 Street NE Khan ura 000420- Labrador 29,858 11,549.61 11,549.61 0010 Ventures LLC 000420- Labrador 26,395 10,210.06 10,210.06 0027 Ventures LLC 000420- Labrador 26,214 10,140.05 10,140.05 0028 Ventures LLC 000420- 4040 I Bernard and 46,629 18,063.93 03 0011 Street NE Sandra Johnston 000420- 4046 I Patrick Kihuria 34,567 13,371.14 04 0021 Street NE and Anne Kiarie Total $44,951.73 Notes: 1) Parcel area at the time of facility completion 2) Based on total project cost of$76,359.80 divided by the total area of the six parcels 3) Developer contribution made at time of construction 4) Reimbursement was made directly to Developer during construction. Page 50 of 71 3,009.3 NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet Feet3,009.31,504.70 Johnston Sewer Payback Agreement 6/15/2018Printed Date: Map Created by City of Auburn eGIS Imagery Date: May 2015 Information shown is for general reference purposes only and does not necessarily represent exact geographic or cartographic data as mapped. The City of Auburn makes no warranty as to its accuracy. Page 51 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6686 (Tate) Date: July 10, 2018 Department: Community Development & Public Works Attachments: Ordinance No. 6686 Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: City Counc il to adopt Ordinanc e No. 6686. Background Summary: On September 19, 2011 the Auburn City Counc il adopted Ordinanc e No. 6376 whic h es tablished a Cons truction Sales Tax Exemption program. This ordinance allowed for a s ales tax rebate for sales taxes paid on c onstruc tion materials , fixed equipment, mac hinery installation, and labor assoc iated with the cons truction activity. Only projects loc ated within the DUC, C3, C4, M1, or M2 zones were eligible, and only for new c ommercial buildings or redevelopment of existing vacant buildings 25,000 square feet or larger or for the expansion of existing c ommercial buildings that create new or expanded floor area that generates s ales tax revenue. Additional eligibility provis ions are establis hed for projec ts in the DUC that are less than 25,000 square feet and within the M1 and M2 zones where existing building are converted from warehous e to manufac turing. Eligible projec ts qualified for an exemption from local s ales and us e tax up to 20% of the taxes imposed and paid to the City of Auburn, but not to exceed $100,000. While formally called a sales tax exemption, the method for implementing the program is to is s ue a rebate after taxes have been paid. Ordinance No. 6376 als o included a s uns et provision whic h automatic ally caus ed the program to expire on September 19, 2015. On October 7, 2013 the Auburn City Council adopted Ordinance No. 6482 which amended the program to expand projec t eligibility to inc lude res idential buildings in the DUC that inc lude a minimum of 50 dwelling units. Since the Construc tion Sales Tax Exemption provisions were added to Auburn’s City Code, one developer has taken advantage of the program. FNW development c ompany c onstruc ted the Trek apartment building. The City provided a rebate of 20% of its share of cons truction s ales taxes paid by Trek for a total of $24,333.00. Becaus e of the sunset provis ion contained in Ordinanc e No. 6376 the Cons truction Sales Tax Exemption program has expired. The purpos e of Ordinance No. 6686, attac hed as Exhibit A, is to re-es tablish the program and to remove the sunset provis ion. Additionally, staff is s uggesting removal of all references to the EP zoning des ignation bec ause this zone no longer exists within the adopted Comprehens ive Plan or the adopted zoning map. Despite the fact that the program has only been us ed by one developer for one project, City s taff believes that the mere existenc e of the program delivers a s trong mes s age to the development c ommunity that Auburn offers a friendly busines s c limate for developers that would like to pursue c ertain mixed us e and Page 52 of 71 commerc ial projec ts. Additionally, it is an important part of a larger package of incentives that developers are able to pick and c hoose from when determining where to c ite future projects . This matter was brought forward to City Counc il during the July 9, 2018 Study Ses s ion. City Council authorized Ordinance No. 6686 to move forward for Council action on July 16, 2018. Reviewed by Counc il Committees : Other: Planning Counc ilmember:Staff:Jeff Tate Meeting Date:July 16, 2018 Item Number:ORD.B Page 53 of 71 ORDINANCE NO. 6 6 8 6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON RELATING TO A CONSTRUCTION SALES TAX EXEMPTION, RE- ENACTING THE EXEMPTION, AND AMENDING CHAPTER 3.60 OF THE AUBURN CITY CODE WHEREAS, Auburn City Code Chapter 3.60 imposes a sales or use taxes authorized under RCW 82.14.030 (2), on every taxable event (as defined in RCW 82.14.020) occurring within the City. The tax is imposed on and collected from those persons from whom the state sales tax or use tax is colleeted pursuant to Chapters 82.08 and 82.12 RCW; and WHEREAS, the City of Auburn adopted Ordinance No. 6376 on September 19, 2011, to promote economic development through the development of new businesses or the expansion of existing businesses in certain zoned areas of the City that will contribute to increased sales tax revenue generation within the City through new or increased sales activities that create taxable event opportunities; and WHEREAS, Ordinance 6376 included a provision that expires the Construction Sales Tax Exemption program on September 19, 2015, 4 years from the date of the adoption of the ordinance; and WHEREAS, the City of Auburn adopted Ordinance No. 64$2 on October 7, 2013 which further modified and clarified the Construction Sales Tax Exemption program outlined in ACC 3.60.036 and extended the expiration date of the program until 2017; and Ordinance No. 6686 7.9.2018 Page 1 Page 54 of 71 WHEREAS, the City of Auburn wishes to continue to incentivize the construction of new or expanded businesses in additional zoned areas of the City, and to encourage the creation of manufacturing jobs by re-authorizing the sales tax exemption program and making it a permanent program; NOW, THEREfORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: SECTION 'i. AMENDMENT TO CITY CODE. Chapter 3.60 of the Auburn City Code is amended by adding a new Section 3.60.060 of the to read as follows: 3.60.036 Construction sales tax exemption A. 1. The following purchasers in the eligible target business class who have paid the tax imposed by this chapter on construction materials, fixed equipment, or machinery installation, or on sales of or charges made for labor and services rendered in respect to such construction or installation of such machinery or equipment, are eligible for an exemption as provided for in this section: for property zoned downtown urban center (DUG), C-3 (heavy commercial district), and C-4 (mixed-use commereial), purchases directly related to the construction of new commercial buildings or redevelopment of existing vacant buildings 25,000 square feet or greater or expansion of existing commercial buildings that creates new or expanded building floor area that generates sales tax revenue. 2. For property zoned downtown urban center (DUC), purchases directly related to the construction of new commercial buildings less than 25,000 square feet, or redevelopment of existing buildings less than 25,000 square feet, where the cost of the improvement is at least 25 percent of the current assessed value of the improvements on the property pursuant to the assessment records of King or Pierce County, as applicable. 3. For property zoned M-1 (light industrial district) and M-2 (heavy industrial district), purchases directly related to the construction of new commercial buildings, redevelopment of existing buildings that result in a change of oecupancy from warehouse use to manufacturing use, or redevelopment of existing buildings where the cost of the improvement is at least 25 percent of the Orcfinance No. 6686 7.9.2018 Page 2 Page 55 of 71 current assessed value of the improvements on the properly pursuant to the assessment records of King or Pierce County, as applicable. B. A purchaser is eligible for an exemption specified under this section from the local sales and use tax paid under this chapter, as authorized under RCW 82.14.030(2), up to a maximum of 20 percent of taxes imposed and paid to the city of Auburn not to exceed $100,000. The purchaser is eligible for an exempfion under this section in the form of a refund. C. For purposes of this section, the following definitions apply: 1. "Ghange of occupancy" means a change of the purpose for which a building is used or intended to be used. The term shall also include the building or portion thereof in which such change of occupancy is made. Change of oecupancy is not intended to include change of tenants or propriefors. 2. "Commercial building" means a structure that has, as its primary purpose, a commercial use as that tecm is defined in ACC 18.04.240. 3. "Expansion" means to add to the floor area of a building. 4. "Purchaser" means a person or enfity that is the recipient of a good or j service. D. Eligible Target Business Classes. 1. The construction sales tax exemption specified in subsection (A)(1) of this section shall only apply to those businesses engaged in normal business activities under the following classifications of businesses occurring within the specified zoning designations: a. General Merchandise, Warehouse Club, SuperCenter— Sales Tax Classification Code 45291; b. Building Materials and Garden Home Center— Sales Tax Classification Code 44411; c. Electronics and Appliances — Sales Tax Classification Code 44311; d. Full Service Restaurants— Sales Tax Classification Code 722110; e. New and Used Automobile and Light Utility Truek Dealers — Sales Tax Classification Code 44110; f. Bowling Centers — Sales Tax Glassification Code 713950; g. Motion Picture Theaters (excluding drive-in theaters) —Sales Tax Classification Code 512131; h. Hotels — Sales Tax Classification Code 72110; and i. Residential buildings and dwellings within the DUC only= North American Industry Classification System Code 531110. 2. The construction sales tax exemptions specified in subsections (A)(2) and (3) of this section shall apply to all businesses located in the DUC, EP, M-1, and M-2 zoning distriets as set forth in those subsections. E. Application for Refund. ' 1. A purchaser claiming an exemption and applying for a refund under this section must pay the tax imposed by ACC 3.60.020. The purchaser may then apply to the city for a refund in a form and manner prescribed by the city and Ordinance No. 6686 7.9.2018 Page 3 Page 56 of 71 shall submit information that the city deems adequate to justify the exemption, including but not limited to: a. Idenfification of the vendor/contractor; b. North American Industry Classifica.tion System (NAICS) code under which the tax was reported; c. Name and Unified Business Identifier (UBI) number of the vendor/contractor on the Combined Excise Tax Return filed with the state of Washington; and d. Detailed information supporting the amounts reported under the State Use and Sales Tax section of the above report for Location Codes 1702 and 2724. 2. A purchaser may not apply for a refund under this section more frequently than once per quartec. The purchaser must specify the amount of exempted tax claimed and the qualifying purchases for which the exempt.ion is claimed. The purchaser must retain all records provided to the city in making its claim. 3. The city shall determine eligibility under this section based on the information provided by the purchaser, which is subject to audit verification by the city. If the city verifies eligibility, it shall remit eligible taxes paid to the purchaser. F. Appeals. Any applicant aggrieved by an a.ction of the city concerni.ng eligibility or computation of remittance under this section mayfile a written appeal to ihe city's hearing examiner in accordance with Chapter 2.46 ACC within 14 calendar days of receipt of the city's decision. The hearing examiner is specifically authorized to hear and decide sueh appeals and the decision of the hearing examiner shall be the final action of the city. SECTION 2. IMPLEMENTATION. The Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. SECTION 3. SEVERABILITY. The provisions of this ordinance are deelared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinanee, or fhe invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder ofi 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: Ordinance No. 6686 7.9:2018 Page 4 Page 57 of 71 PASSED: APPROVED: CITY OF AUBURN NANCY BACKUS MAYOR ATTEST: Danielle E. Daskam City Clerk APP V- AS TO FORM: Steven L. Gross City Attorney Published: Ordinance No. 6686 7.9.2018 Page 5 Page 58 of 71 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5374 (Hinman) Date: June 25, 2018 Department: Adminis tration Attachments: Res olution No. 5374 Budget Impact: Current Budget: $0 Proposed Revis ion: $0 Revis ed Budget: $0 Adminis trative Rec ommendation: City Counc il adopt Res olution No. 5374. Background Summary: Puget Sound Energy is looking to replac e the natural gas facility connec ted to Auburn High School’s west grand s tand. A s urvey conduc ted in connec tion with the s ervic e revealed that a PSE gas line facility was located on a portion of Veterans Memorial Park and that there were no property rights eas ements granted by the City or predecessors recorded agains t the property. Becaus e a portion of the fac ility is currently located in part, on a portion of a City Park, the fac ility s ervic es the Auburn School Dis tric t, and the utility has the potential to be hazardous if fac ilities are not adequately maintained, City staff believes that it is in the best interest of public health and safety to convey a utility easement for ac cess, maintenanc e, repair and replac ement of the exis ting gas facility to PSE. The eas ement is legally desc ribed in Exhibit A of the Easement Agreement, Depic ted in Exhibit B of the Easement Agreement, which encumbers City property des cribed in Exhibit C of the Eas ement Agreement. The recorded eas ement will be in s ubstantial form to that of Exhibit D of the Easement Agreement. Reviewed by Counc il Committees : Counc ilmember:Staff: Meeting Date:July 16, 2018 Item Number:RES.A Page 59 of 71 RESOLUTION PIO. 5 3 7 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE THE REAL ESTATE EASEMENT AGREEMENT BETWEEN THE CITY OF AUBURN AND PUGET SOUND ENERGY FOR CONVEYANCE OF A UTILITY EASEMENT WHEREAS, Puget Sound Energy (PSE) owns and operates an existing gas line facility located under a portion of CITY owned Veterans Memorial Park; and WHEREAS, the existing gas line facility actively supplies natural gas to the Aubum Senior High School's Football Stadium located adjacent to Veterans Memorial Park; and WHEREAS, currently there is no easement granted to PSE for access, maintenance, repair, replacement or otherwise for the PSE facility; and WHEREAS, it would be in the best interest of public health and safety for the CITY to convey an easement to PSE for the purposes of cons#ructing, operating, maintaining, repairing, replacing, improving, removing, upgrading or extending of the PSE facility; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The IVlayor of the City of Auburn is hereby authorized to execute a Real Estate Easement Agreement between the City of Auburn and Puget Sound Energy for real property rights, which agreement shall be in substantial conformity with the Agreement attached hereto as Exhibit "Easement AgreemenY' and incorporated herein by this reference. Resolution No. 5374 July 16, 2018 Page 1 of 2 Page 60 of 71 Seetion 2. The Mayor is hereby authorized to take such administrative and/or procedural action as may be necessary and/or appropriate to carry out the directives of this legislation and to accommodate the decision to convey a Utility easement to PSE Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this day of 2018. CiTY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Steven L. Gross, City Attorney Resolution No. 5374 July 16, 2018 Page 2 of 2 Page 61 of 71 EASMENT AGREEMENT CITY OF AUBURN This Agreement is made and entered into by PUGET SOUND ENERGY, INC., (herein referenced as "PSE" or "GRANTEE"), a Washington sta.te energy utility and the CIT'Y OF AUBURN (herein referenced as "CITY" or "GRANTOR"), a municipal corporation of King and Pieree Counties, Washington;herein collectively referred to as "PARTIES" WITNESSETH : Whereas, PSE owns an existing gas line facility located under a portion of CITY owned Veterans Memorial Park; and Whereas, the existing gas line facility actively supplies natural gas to the Auburn Senior High School's Football Stadium located adjacent to Veterans Memorial Park; and Whereas, there is no easement granted to PSE for access, maintenance, repair, replacement or otherwise to the PSE facility; and Whereas, it would be in the best interest of the public for the CITY to grant an easement to PSE for purposes of constructing, operating; maintaining, repairing, replacing, improving; removing,upgrading or extending of the PSE facility; NOW, THEREFORE, in consideration of the public's health, safety and well-being, IT IS AGREED b.y the PARTIES as follows: 1. GRANT AND CONVEYING OF EASEMENTS. The CITY agrees to grant and convey a perpetual Non-Exclusive tTtility Easements to the PSE which is hereby legally described and attached hereto as Exhibit A and depicted in Exhibit B for the purposes of constructing, operating, maintaining, repairing, replacing, improving, removing, upgrading or extending one or more utility systems for the purposes of transmission, distribution and sale of gas. The Easement shall encumber real property located in King County, Washington hereby legally describecl and attached hereto as Exhibit C ("Ericumbered Property"). Included in this conveyance sha11 be the use of such additional area immediately adjacent to the Easement as shall be required for the construction, reconstruction, maintenance and operation of GRANTEE'S utility, the use of such additional area shall be held to a reasonable minimum. 2. ACCESS. PSE shall have the absolute right at all times as necessary for immediate access (ingress and egress), to enter the Encumbered Property for the purpose of inspecting and maintaining the easement azea as well as constructing, operating, maintaining, repairing, replacing, improving,removing, upgrading or extending GRANTEE'S facilities. Page 62 of 71 3. CONSIDEI TION. For the consideration of the public's health, safety and well-being, The CITY agrees to convey to PSE the easements legally described in E ibit A with no further monetary or other consideration due to the City from PSE. 4. RECORDING & RECORDING FEES. PSE sha11 be responsible for recording the easeinents, which shall be recorded in substantial conformity to that hereby referenced and attached as Exhibit D as well as any and all recording fees charged by the County. PSE shall furnish to the CITY a copy of the recorded easements showing the recording numbers. The document is to be sent to City of Auburn,attn.; Josh Arndt—25 W Main,Auburn,WA 98001 5. ENTIRE AGREEMENT/MODIFICATION. This written Agreement constitutes the entire and complete Agreement between the PARTIES hereto and supersedes any prior oral or written agreements between the PARTIES with respect to the Easements and or Encumbered Property. It is expressly agreed that there are no verbal understandings or agreements, which in any way change the terms, covenants, and conditions herein set forth. No modifications of this agreement and waiver of any of its terms and conditions shall be effective unless in writing and duly executed by the PARTIES hereto. 6. SUCCESSORS & ASSIGNS. PSE shall have the right to assign, apportion or otherwise transfer any or all of its rights, benefits, privileges and interests arising in and under this easement. Without limiting the generality of the foregoing, the rights and obligations of the parties shall be binding upon their respective successors and assigns. 7. BINDING EFFECT. All covenants, agreements, warranties and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators,personal representatives, successors and assigns. 8. SIGNATURES: Signatures on the following pages Page 63 of 71 Dated and Signed this..;day of , ,..! .. . : :' ;=2( GRAIVTEE:PUGET SOUNI) ENERGY,INC., Name: Title: Dated and Signed this ...day of: .,,, ; ;,20.,,,_': SELLER: CITY OF AUBURN Nancy Backus, lVlayor APPROVED AS TO FORM: Steven L. Gross, City Attorney Page 64 of 71 EXHIBIT A Legal Description of Utility Easements EASEMENT NQ. 1 THE WEST 205 FEET OF THE EAST 220 FEET OF THE SOUTH 10 FEET; AND EASEMENT NO. 2 THE SOUTH 110 FEET OF THE EAST 15 FEET OF THE FOLLOWING: All that certain real estate situate in the south %2 of the north '/2 of the northwest '/4 of Section 18, Township 21 north of Range 5 east W M,particularly bounded as follows,to wit. Beginning at a point on the south line of the north '/2 of the northwest '/4 of said section 18,which point is 30 feet westerly from the southwest corner of the northeast '/4 of the northwest '/4 of said section 18;thence easterly along the south line of the north %z of the northwest '/4 of said section 18, a distance of 992.395 feet to a point, thence northerly on a line parallel with the west boundary line of the northeast '/4 of the northwest 1/ 4 of said section 18, a distance of 659.23 feet to the north I boundary line of the south '/2 of the north%z of the northwest '/4 of said section 18,thence westerly along said north boundary line of the south %Z of the north %2 of the northwest 1/4 of said section 18, a distance of 832.395feet to a point,thence southerly on a line parallel with the west boundary line of the northeast 1/4 of the northwest '/o of said section 18 a distance of 359.61 feet to a point;thence westerly on a line pazallel with the south line of the north %z of tlie northwest '/4 of said Section 18, a distance of 160 feet to a point,thence southerly on a line parallel with the west boundary line of the northeast '/4 of the northwest '/o of said section 18 a distance of 300 feet to the point of beginning. Less the east 400.00 feet Assessor's Tax Parcel ID# 182105-9327 Page 65 of 71 EXHBIT B Depiction of Utility Easements Ci.Bi_PN. 'H4iXINLT'JN IIQ4NDA _'.Nf V:i.:fr:V: r.., 3.aI.rAo E N iR1VMp:Y:.L I-]u a. ..,,v._... b 0 !1a . WSR U!HLIAL\GS e ....... vrti v n... 0 y.l I M m a u.`.v-r• in. .s.• _ ..._a wrn i.. .. . . v .. . . , tY 5 Page 66 of 71 EXHIBIT C Encumbered Property All that certain real estate situate in the south 'l2 of the north '/2 of the northwest '/4 of Section 18, Township 21 north of Range 5 east W M,particularly bounded as follows,to wit. Beginning at a point on the south line of the north %2 of the northwest '/4 of said section 18; which point is 30 feet westerly from the southwest corner of the northeast '/4 of the northwest '/4 of said section 18;thence easterly along the south line of the north '/2 of the northwest '/4 of said section 18, a distance of 992.395 feet to a point,thence northerly on a line para11e1 with the west boundary line of the northeast '/a of the nortliwest '/4 of said section 18, a distance of 65923 feet to the north boundary line of the south '/z of the north %z of the northwest '/4 of said section 18;thence westerly along said north boundary line of the south '/2 of the north '/z of the northwest '/a of said section 18, a distance of 832:395feet to a point, thence southerly on a line parallel with the west boundary line of the northeast '/4 of the northwest '/4 of said section 18 a distance of 359.61 feet to a point; thence westerly on a line parallel with the south line of the north %Z of the northwest '/o of said Section 18, a distance of 160 feet to a point,thence southerly on a line pazallel with the west boundary line of the northeast '/4 of the northwest '/o of said section 18 a distance of 30U feet to the point of beginning. Less the east 400.00 feet Assessor's Taac Parcel ID# 182105-9327 Page 67 of 71 RETURN ADDRESS: Puget'Sound Energy,Inc. Attn:ROW Department PQ BOX 97034,EST-OBW Bellevue,WA 98009-9734 PUGET SOUND ENERGY EASEMENT REFERENCE#: GRANTOR(Owner): CITY OF AUBURN,a municipai corporation GRANTEE(PSE): PUGET 30UND ENERGY,I.NC. SHORT LEGAL: NW 1/4,Sec.18,Twp.21 N, Rng.05E,W.M. ASSESSOR'S PROPERTY TAX PARCEL: 182105-9327 For and in conslderation qf good and valuable consideration,#he receipt and sufficiency of which are acknowiedged, CITY OF AUBURN, a municipal corporation of the State of VNashington, ("Owner"herein), hereby grants and conveys to PUGET SOUND ENERGY, INC., a Washington eorporation ("PSE" herein), for the purposes described below, a nonexclusiye perpetual e.asement over, under, along across and through the following described real property(the"Property"herein)in KING County,Washington: SEE EXHIBIT"A"ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. Except as may be otherwise set forth herein PSE's rights shall be exercised upon that portion of the Property Easement Area"herein)described as follows: EASEMENT_N0.1 THE VVEST 205 FEET OF THE EAST 220 FEET OF THE SOUTH 10 FEET; AND EASEMENT NO.2 THE SOUTH 110 FEET OF THE EA3T 15 FEET OF THE REAL PROPERTY AS DESCRIBED IN EXHIBIT"A". 1. Purpose. PSE shall have the right to use the Easement Area to construct,operate,maintain,repair, replace,improve,remove,upgrade and exte.n.d one or more utflity systems for purposes of transmission,distribufion and sale of gas. Such systems may inci.ude,but are not limited to: Underground facilities. Pipes, pipelines, mains, laterals, conduits, regulators,gauges and rectifiers for gas;; fiber optic cable and other lines, cables and facilities for communications; semi-buried or ground-mounted facilities and pads, manholes; meters, fxtures, attachments and any and all other facilities or appurtenances necessary or con.Venient to any or all of the foregoing. Following the initial construction of all or a portion of its systems, PSE may, from time to time, construct such additional facilities as it may re:quire for such systems. PSE shall have fhe r'ight of access to the Easement Area over and across the Property to enable PSE to exercise its rights granted in this easement. 2. Easement Area Glearing and Maintenance. PSE shall haye the right, but not the obllgation to cut,remove and dispose of any and all brush,.trees or other vege#ation in the Easement:Area. PSE shall aiso haVe the right, bu,t not the obligation, to control, o.n a continuing basis and by any prudent and reasonable means, the establishment and growth of brush,trees or other vegetation in the Easement Area. Page 1 of 4 WO#1091023301/RW-101842/N#11328377 Plat 232.080(Veterans Memorial Park) ses Page 68 of 71 3. Restoration, Fo.liowing initial insfallation, repair or extension of its facilities, PSE shall, to the extent reasonably practicable, restore landscaping and surfaces and portions of the Property affected by PSE's work to the condition existing immediately prior to such work. PSE shall use good faith efforts to perForm its restoration obligations under this paragraph as soon as reasonably possible after the completion of PSE's work. 4. Owner's Use of Easement Area. Owne reserves the right to use the Easement Area for any purpose not inconsistent with the rights herein granted, provided, however, Owner sh.a.11 not excavate within or otherwise change the grade of the Easement Area or construct or maintain any buildings or structures on the Easement Area and Owner shall do no bla.sting within 300 feet of PSE's facilities without PSE's prior written consent, 5. Indemnity. PSE agrees to indemnify Owne.r from and against liabilify incurred by Owner as a result of the negl.igence of PSE or its contractors in the exercise of the rights herein granted to PSE, but nothing herein shail require RSE to indemnify Owner for that portion of any such liability attributable to the negligence of Owner or the negligence of others. 6. Termination. The rights herein granted shall continue until such time as PSE terminates such right by written instrument. If terminated any improvements remaining in the Easement Area shall become the property of Owner. No termination shall be deemed to have occurred by PSE's failure to instail its systems on the Easement Area. 7. Successors and Assigns. PSE shall have the riglit to assign,apportion or otherwise transfer any or all of i.ts rigfits, benefits, privileges and interests arising in and under this easement. Without limiting the generality of the foregoing,the rights and obligations of the parties shall be binding upon their respective successors and assigns. DATED this day of 2018. GRANTOR: The City of Auburn,a municipal corporation of the State of Washington. BY: Its Mayor Aftest: Title: . Approved as to form: Title: Page 2 of 4 WO I 1091023301/RW-101842/N#11328377 Plat 232.080(Veterans Memorlal Park) ses Page 69 of 71 ACKNOWLEDGMENT STATE OF WASHINGTON SS. COUNTY OF KING On this day of 2018,before me,a Notary Public in and for the State of Washington,duly commissioned and swom,personally appeared and to me known to be the Maybr and of the municipal sorporation that executed the within and foregoing instrument,and acKnowiedged the same to be the free and vol.untary act and deed of said municipal corporation,for the uses and purposes therein ri entioned and on oath stated that are authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Signature of Notary) Print or stamp name of Notary) NOTARY PUBLIC in and for fhe State of Washington, residing at My Appointment Expires: Notary seal,lext and all notaQons musl be instde 1'mazgins Pege 3 of 4 WO#1091023301/RW-101842/N#11328377 Plat 232.080(Veterans Memorial Park) ses Page 70 of 71 EX IIBI'I' `A, Attached hereto and made a part hereof Easement dated 2018, By and between City of Auburn,a municipal corporation ofthe State of Washington,as Grantor(Owner) And Puget Sound Energy,Inc.,a Washington corporation,as Grantee(PSE) . All that 4rt i tt ta sftuate u the south'h of tlxe noxth'/a ofthe northwest'/of Sect on 18,Towuskiyip 21 north of R nge 5 eastW M;p l'J'bouu ded s.fallows,to vv t. Beginnuig at a point on the south lu e of the rtoiith%z of tt e noxtl wast'/a af said sectson 18,w iich point s 30 feet westerly from tlxe southwest corner o tha northea t'/a o the narthwest s/f sa d sectrox 18;thencc easter y along the south line of the north'o t s borthvc'st'of said seat on 18,a dxstence of 99 395 feet to a point, thence northerly on a lu e parallel with the west boundary Ime of the northeast'/a of tha riorthwest%+of sa d secnon 18,a d stance of b59.3 feet to#he north baundary Ime of the south`1a of the north%of the uorthwest'/a of said sectian 18,thenca westerly along sa d nozth boundary llne of the sauth%s af tha north'/o£the nortlrwest'/of sa td sect on 18,a distance af 832.395 feet•to a povnt,thence southez ly on a line arallel wxxth the west boundary line of the naxtheast'/4 o the northvii`ast y of sa d sectxou 18 a.d tst nce o 3 9 di feet to a poiuut; thence westerly an a Iine parallel wxth t e soutl line o the north'1a of th nox iwest'/of said Sectiozt 18,a . di stance a 160 f et to po t,tl er ce southerly'on a ltne parallel with the west bowa d$y liue of tk e noz heast'/4 of the nort west'/;of said sectson i S a distance of 300 feet to tlxe paxnt of beginn ng Less thes aast 400 00 feet Ass ssor's Tax Yarcel ID# 182105-9327 Page 4 of 4 WOtI 1091023301/RW-101842/Nq 1132H377 Plat 232.080{Veterans Memorial Park) ses Page 71 of 71