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Council PKT 08-24-2004 Special A Federal Way City Council Meeting AGENDA COUNCILMEMBERS Dean McColgan, Mayor Jeanne Burbidge Jack Dovey Eric Faison Jim Ferre 11 Linda Kachmar Mike Park CITY MANAGER David H. Moseley Office of the City Clerk ALtgust 24, 2004- ------ I. II. III. IV. V. AGENDA FEDERAL WAY CITY COUNCIL Special Meeting New City Hall- 33325-8th Avenue South Patrick Maher Room/! 8t Floor August 24, 2004 - 7:00 p.m. (www.ci.federal-way.wa.us) * * * * * CALL MEETING TO ORDER PLEDGE OF ALLEGIANCE CITIZEN COMMENT PLEASE COMPLETE THE PINK SLIP & PRESENT TO THE CITY CLERK PRIOR TO SPEAKING. Citizens may address City Council at this time. When recognized by the Mayor, please come forward to the podium and state your name for the record. PLEASE LIMIT YOUR REMARKS TO THREE (3) MINUTES. The Mayor may interrupt citizen comments that continue too long, relate negatively to other individuals, or are otherwise inappropriate. PUBLIC HEARING Reallocation of 2003 Community Development Block Grant (CDBG) Funds from Thompson Park to Armstrong Park . Staff Report Citizen Comment (please limit remarks to 3 minutes) City Council Deliberation/Action . . CITY COUNCIL BUSINESS a. b. Transfer of Funds from the Paths and Trails Fund to Armstrong Park Revised Sound Transit Oriented Development (TaD) Agreement North Lake Annexation Area/Establishing Election Date - Resolution Redondo East Annexation Area/Establishing Election Date - Resolution Parkway Annexation Area/Establishing Election Date - Resolution Property Tax "Lid Lift" c. d. e. f. over please. . . VI. EXECUTIVE SESSION Collective Bargaining/Pursuant to RCW. 42.30. 140(4)(a) VII. ADJOURNMENT THE COMPLETE AGENDA PACKET IS A V AILABLE FOR REVIEW AT CITY HALL AND ON THE CITY'S WEBSITE UNDER "PUBLIC DOCUMENT LIBRARY" MEETING DATE: August 24, 2004 ITEM# -~.l( . ......................-......... .......-...--...--.-.--..-...-..-...........--..-.--......-......-............ .... .........--..-......-........-...-....-............................-............-...................-.".....-....... ..........-.....................-.---........ CITY OF FEDERAL WAY City Council A G END A BILL SUBJECT: Reallocation of2003 Community Development Block Grant (CDBG) Funds from Thompson Park to Armstrong Park CATEGORY: BUDGET IMPACT: D CONSENT D RESOLUTION D CITY COUNCIL BUSINESS D ORDINANCE [g PUBLIC HEARING D OTHER Amount Budgeted: Expenditure Amt.: Contingency Req'd: $ $ $ ............-...................... ................................. ..................-.................................-.................... ...................,,--..........................,,-....-...-..--........-....... ATTACHMENTS: Committee Action Form dated 8/3/2004; Armstrong and Thompson Parks: Update on Bid Status; Notice of Public Hearing; Memorandum to the Human Services Commission with motion passed on August 16, 2004. .......-...-..-.."........ .................................................. SUMMARYIBACKGROUND: The City received a letter from the State of Washington Office of Archaeology and Historic Preservation stating that the Thompson Park project area has the potential for archaelogical resources. They are recommending an archaelogoical survey and consultation with tribes. If federal funds are involved, then an additional process is required. The Thompson project funding includes federal funding in the form of a $75,000 CDBG grant (C03373). Both the Armstrong and Thompson projects are short of funding, due to increased design and construction costs. Funding for the Armstrong project anticipated some grant funding that has not become available. In order to construct at least one parks project it is proposed to transfer the $75,000 CDBG grant from Thompson Park to Armstrong Park. Both parks are located in Census block groups that are predominately low- and moderate-income and qualify for CDBG funding. A public hearing and comment period is required by the King County CDBG Consortium before the transfer can be implemented. The Human Services Commission passed a motion at their August 16, 2004 Commission meeting in support of the transfer of funds. ......."..................".-.............. .............................-....... .......-...................... CITY COUNCIL COMMITTEE RECOMMENDATION: Recommends placing the following item on the August 24, 2004 Cötlndl CömGlll Agcudit: Approve transfer of the $75,000 CDBG grant from Thompson Park to Armstrong. ......ê...~~....._.'!'!:~=~.~.tf..~tJ...&ð..~~................... .... .... ..............................................-...-.....................................................................................--.....-...-.....-...... PROPOSED MOTION: I move approval of transferring the $75,000 CDBG grant from Thompson to Armstrong Park. CITY MANAGER APPROVAL: ......~ (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: D APPROVED D DENIED COUNCIL BILL # 1 ST reading D TABLED/DEFERRED/NO ACTION D MOVED TO SECOND READING (ordinances only) Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 City of Federal Way PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM 5.~ Date: To: August 3, 2004 PRHSPS Co~nc~~ 7\mmittee David M4PJ:>\.Manager B Sanders, Park Planning & Development Coordinator ~ Armstrong and Thompson Parks: Update on Bid Status Via: From: Subject: Background: Some recent changes in these two projects require additional discussion and input from the City Council. The City received a letter from the State of Washington Office of Archaeology and Historic Preservation stating that the project area has the potential for archaeological resources. They are recommending an archaeological survey, and consultation with tribes. Also, if federal funds are involved, then an additional process is required. The Thompson project funding includes federal funding in the form of a $75,000 CDBG grant. Therefore it seems unlikely that the Thompson project will be built this fall. Both the Armstrong and Thompson projects are short of funding, due to increased design and construction costs. In addition, funding for the Armstrong project anticipated some grant funding that has not become available. Potential Approach: In order to construct at least one parks project this year the following actions are proposed: 1. Transfer the $75,000 CDBG grantfrom Thompson Park to Armstrong Park. This would require about a three week CDBG process, including having it on the City Council Agenda. 2. Transfer funds from the Paths and Trails Fund to Armstrong Park. Approximately $65,000 is available in the Paths and Trails Fund. This amount would be available to be used on the trails portion of the park, which is estimated at approximately $92,000. ". These actions would help the project considerably, although it would still be about $20,000 short of the cost estimate. For that amount we would have bid alternates in place. Staff Recommendation: Staff recommends placing the following items on the August 24, 2004 Council Consent Agenda: 1. Approve transfer of the $75,000 CDBG grant from Thompson Park to Armstrong Park. 2. Approve transfer of$65,000 in funds from the Paths and Trails Fund to Armstrong Park. Committee Member City of Federal Way Notice of Public Hearing on the Transfer of 2003 Community Development Block Grant (CDBG) Funds NOTICE IS HEREBY GIVEN that the Federal Way City Council will conduct a public hearing on Tuesday, August 24,2004, at 7:00 p.m. in the new City Hall (33325 8th Avenue South, PO Box 9718, Federal Way, Washington 98063-9718), to consider a proposed transfer of allocation for Federal Way's 2003 Community Development Block Grant (CDBG) program. PUBLIC NOTICE IS FURTHER GIVEN that the City of Federal Way is proposing to transfer funds awarded to the City of Federal Way Parks, Recreation & Cultural Services Department for construction of the Thompson Property Park to the construction of the Armstrong Park. Funds were allocated to the Thompson Property Park, 2200 Block of South 333rd Street, Federal Way, to build a neighborhood park for the residents of census tract 303.3, block group 1. The $75,000 in 2003 Community Development Block Grant (CDBG) Funds awarded to the Thompson Property Park are proposed to be transferred to the construction of Armstrong Park. Armstrong Park is located at the SW corner of SW 356th St and 15th Ave SW, Federal Way. The 2003 CDBG award of $75,000 will be used to build a neighborhood park for the residents of census tract 303.04, block group 1. Both neighborhood parks will serve census block groups that are predominately low- and moderate-income. The City of Federal Way Parks, Recreation & Cultural Services Department will complete the Thompson Property Park with City of Federal Way general funds and other revenue sources. This transfer is proposed due to the delayed construction of Thompson Park due to potential archeological resources. Detailed information about the Thompson Property Park and Armstrong Park is available for review during regular business hours at the Department of Parks, Recreation and Cultural Services (33530 1 st Way S, Federal Way until noon on August 20 and at 33325 8th Avenue South, Federal Way after noon on August 23). The public is invited to comment on this proposed change at the public hearing or by written comment. Written comments on the transfer of CDBG funds noted above will be accepted until 5:00 p.m. on August 25, 2004, and may be forwarded to: City of Federal Way, Attn: Kelli O'Donnell, P.O. Box 9718, Federal Way, WA 98063-9718. For further information regarding the City of Federal Way CDBG program, please contact Kelli O'Donnell, CDBG Coordinator at (253) 661-4153. Reasonable accommodations at the public hearing such as sign language interpretation or alternate formats for printed materials are available for individuals with disabilities with advance notice. The Council Chambers at City Hall is in compliance with the American Disabilities Act, and interpretive services for the hearing impaired will be provided upon prior notice. Please call Kelli O'Donnell at (253) 661-4153 at least 24 hours in advance to request accommodation. For TOO relay service call 1-800-833- 6388rrDD or 1-800-833-6384/voice. This notice is available in alternate formats for individuals with disabilities upon request. ~ CITY OF ~::? Federal Way MEMORANDUM August 9, 2004 --£)() - Human Services Commissio~ Kelli O'Donnell, CDBG Coordinator Transfer of 2003 CDBG Award from Thompson Park Development to Armstrong Park Development The City of Federal Way allocated $75,000 to the Thompson Property Neighborhood Park Development as part of the 2003 CDBG program. Funds were allocated for construction of the park with the City of Federal Way paying for design and any additional costs that resulted from neighborhood input such as playground equipment, benches, etc. The Federal Way Parks and Recreation Department designed the project with input from the community in 2003. (See attached drawing.) Design of the park was needed before environmental review could begin. Parks Planner B Sanders has been working with King County staff on environmental review of the project. Since the park is located near a stream, construction of the park requires a higher level of environmental review that may not be completed in time for construction of the park in 2004. To resolve this issue, staff worked with King County and the Parks and Recreation Department to determine if funds can be applied to the playground construction and purchase of playground equipment. The playground equipment site is outside of the stream buffer and would require a lower level environmental review. The City would then complete the construction of the overall park and trails with City funds. DATE: TO: FROM: SUBJECT: During the City's environmental review of the project, the City was notified by the State of Washington Office of Archaeology and Historic Preservation (Attachment 1) that there is a probability of archaeological resources present at the site. Addressing issues raised by this notification will take additional time that will most likely delay construction until 2005. In order spend the funds in 2004, staff has been working with the Parks and Recreation Staff and King County to transfer the CDBG funds to the Armstrong Park construction at 33325 8th Avenue South (Attachments 2). The Armstrong Park is also located in a Census Block Group with more than 45.2% of residents that are classified as low and moderate income and meets the threshold for CDBG funds (Attachment 3). Armstrong Park is similar to Thompson Park in that it has been designed with input from the community as a neighborhood park. CDBG funds will be used for construction of the playground and benches. The City of Federal Way will complete the Thompson Park with as soon as environmental issues are resolved. Transferring CDBG funds requires official action by the City of Federal Way including a public hearing and 14-day public comment period. To expedite the construction of the project, the Parks and Recreation Staff requested approval to transfer the CDBG funds from the Thompson Park project to the Armstrong Park project from the Parks, Recreation, Human Services, and Public Safety Committee at their August 9,2004 meeting. The Committee approved the transfer and a public hearing is scheduled prior to City Council action at the August 24, 2004 Council meeting. Human Services Commission concurrence with the transfer of 2003 CDBG funds is requested to include in the staff report to the City Council. . Proposed Motion: I move to concur with the transfer of the 2003 CDBG award in the amount of $75,000 from the Thompson Neighborhood Park that has been delayed in environmental review, to the Armstrong Neighborhood Park for the construction of a neighborhood park serving low- and moderate-income residents of Federal Way. Please contact me at (253) 661-4153 or kellio@fedway.org if you have any questions regarding the above item. MEETING DATE: August 24, 2004 ITEM# ~-:¡Z'(~) CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Transfer of Funds from the Paths and Trai1s Fund to Armstrong Park CATEGORY: BUDGET IMPACT: D CONSENT D RESOLUTION ~ CITY COUNCIL BUSINESS D ORDINANCE D PUBLIC HEARING D OTHER Amount Budgeted: Expenditure Amt.: Contingency Req'd: $ $ $ ATTACHMENTS: Committee Action Form dated 8/3/2004; Armstrong and Thompson Parks: Update on Bid Status SUMMARY/BACKGROUND: Funding for the Armstrong project anticipated some grant funding that has not become avai1ab1e. The Armstrong Park project has a1so experienced increased design and construction costs. ]n order to construct at least one parks project this year it is proposed to transfer funds from the Paths and Trails Fund to Armstrong Park. CITY COUNCIL COMMITTEE RECOMMENDATION: Recommends p1acing the fo11owing item on the August 24, 2004..f:ötmci1 CvH~cJll AgcJlda: Approve transfer of$65,000 from the Paths and Trai1s Fund to Armstrong Park. .(f:q~1..~Q'(~tl...t{:¡;i!//c..rS .. PROPOSE]) MOTION: "] move approva1 of the transfer of$65,000 from the Paths and Trai1s Fund to Armstrong Park. ~~~~;~~::~- ~~~- .~.. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICh] -~-_._----_... --- . . ... ---- -- COUNCIL ACTION: D API)ROVE]) D DENIE]) D TABLED/J)E~'ERRED/NO ACTION D MOVE]) TO SECOND READING (ordinances only) COUNCIL lULL # S1' 1 reading Enactment reading ORDINANCE # RESOLUTION # .._~--- ----_u. .- --_u_---- .- _..._.._-..~--_. ---...-..-- . REVISED - 05/10/2001 City of Federal Way PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM 5. J:. Subject: August 3, 2004 PRHSPS Co\nc~~ 9\mmittee David M~'pJ;)\Manager B Sanders, Park Planning & Development Coordinator~ Armstrong and Thompson Parks: Update on Bid Status Date: To: Via: From: Background: Some recent changes in these two projects require additional discussion and input from the City Council. The City received a letter from the State of Washington Office of Archaeology and Historic Preservation stating that the project area has the potential for archaeological resources. They are recommending an archaeological survey, and consultation with tribes. Also, if federal funds are involved, then an additional process is required. The Thompson project funding includes federal funding in the form of a $75,000 CDBG grant. Therefore it seems unlikely that the Thompson project will be built this fall. Both the Armstrong and Thompson projects are short of funding, due to increased design and construction costs. In addition, funding for the Armstrong project anticipated some grant funding that has not become available. Potential Approach: In order to construct at least one parks project this year the following actions are proposed: 1. Transfer the $75,000 CDBG grant from Thompson Park to Armstrong Park. This would require about a three week CDBG process, including having it on the City Council Agenda. 2. Transfer funds from the Paths and Trails Fund to Armstrong Park. Approximately $65,000 is available in the Paths and Trails Fund. This amount would be available to be used on the trails portion ofthe park, which is estimated at approximately $92,000. These actions would help the project considerably, although it would still be about $20,000 short of the cost estimate. For that amount we would have bid alternates in place. Staff Recommendation: Staffrecommends placing the following items on the August 24, 2004 Council Consent Agenda: 1. Approve transfer of the $75,000 CDBG grant from Thompson Park to Armstrong Park. 2. Approve transfer of$65,000 in funds from the Paths and Trails Fund to Armstrong Park. Committee Member MEETING DATE: August 24, 2004 ITEM# J (b) .... .......--....."""--""""" " ,........."""-""""'-"'" ..................."...,,--....-..... """'--""'-'.."-,,....-.........""""'-""""""" '........"..............""'" .... CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Revised Sound TransitfTransit Oriented Design (TOD) Agreement CATEGORY: D CONSENT D RESOLUTION IS! CITY COUNCIL BUSINESS BUDGET IMP ACT: D ORDINANCE D PUBLIC HEARING D OTHER Amount Budgeted: Expenditure Amt.: Contingency Req'd: $ $ $ -""...-..-......--.....-......-.-..-........"...................-......--.........."..--.----..--...,,-...,.""""""""---"-"-"-""""'-"""""-"""""'-'.........-....... "'-"""'-"""-""'--"-"""""""'--'---""""-"-"'-'-""'-----'--"-"........--......"".......... ..-.---.....----....... .... .-",,--....--..........--.........,,-.--- ATTACHMENTS: Staff Report, Revised Sound Transit TOD Agreement --..-----.."....-.......""-..-..............-..-..-....--......-.........."-..,,,,.-...-"'-"-'---""--"-"""""""""-"-'-""""""--"""""-""'----"'---'--""...............-----.....-..-""'--""-"""""-----'""..--..---".......--.......""..-. """'---"--""'" ""'..-..-,,--........--'-"""'---"'-'------ SUMMARYIBACKGROUND: In March 2004 the City Council directed staff to negotiate revisions to the Transit Oriented Development (TOD) Agreement that had previously been presented to Council. The Council identified seven areas in which they desired revisions. The requested revisions and the negotiated response from Sound Transit are summarized in the attached Staff Report to the Land UsefTransportation Committee, and a revised TODAgreement is attached for Council action. -- - -".... ...... -...."..-... -, - ",---.-..",-.."......"'- ---...--..-..--...----..-..-"..--..- -.. -" -.... ........-............"..-....- -. --- ---"".......-.....-..-........"". -..----....--- ------"".....-......-........-- ---..-.....-..-.--"'- -",,".......---, -,- ........- ...-"...-.,......-". -..- "....- -.. -.. ""'-" ---- CITY COUNCIL COMMITTEE RECOMMENDATION: I move the proposed revised TaD Agreement to full City Council for placement on the August 24, 2004 City Council agenda, with a recommendation for approval and authorization for the City Manager to execute the Agreement as amended by the Committee to delete "north end of the" on page 5, line 1. - .-..---..-.."......".. .....",..---...-.. -..........--..-.. -..----- -..-...-- .....--..-- -"'-""'--'-- --,,- ._".... ....."'" ......-.. ----......-..- --..-...-.. ..... - - - ---.....-".....- ..-----..... ,- "'-""--"-"'-'-'-" -------.....-.- "._.-' ---......--- .-......."...... -..--...-" -"-"""""'----,-""-",,,-""""..- PROPOSED MOTION: "I move approval of the revised TaD Agreement as amended by the Land UsefTransportation Committee and authorization for the City Manager to execute the Agreement." -......" ........ -. -'-'---'-"- --..---- -,- ".. --- "'--"--'-"'-'-'-""'----""""'---...-.."- ---,_.- "'-"""'-'--'-'-"-"--..-......----..-.""--""-".., -...........-,-.-,,---..,-.-..-- - -...----..-.....,----------- _..,,- --- -.....-- -.."".. "---""-"'-"" CITY MANAGER APPROVAL: ~ (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: D APPROVED D DENIED 0 TABLEDIDEFERRED/NO ACTION D MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1 ST readin'g Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 CITY OF FEDERAL WAY MEMORANDUM DATE: August 16, 2004 TO: Land Use/Transportation Committee FROM: David Mo y tanager ~ - '~.~ Karen Kirkpat ck, Deputy City Attome~ VIA: SUBJECT: Revised Sound Transit TaD Agreement In March 2004 the City Council directed staff to negotiate revisions to the Transit Oriented Development (TaD) Agreement that had previously been presented to Council. The Council identified seven areas in which they desired revisions. The requested revisions and the negotiated response from Sound Transit are summarized below, and a revised TaD Agreement is attached for Council action. A. Council Requested Modifications to TOO Agreement 1. Sound Transit shall make available public (non-transit) parking within the proposed parking garage at no cost to any party. Original TOD: There is no provision for non-transit use of the garage facility. Revised TOD: Sound Transit makes parking available within the parking garage through market value leases to local businesses and/or to the City for a limited lease period, Once the lease period is established, Sound Transit may terminate the lease with 90 days notice. Leases must be approved by the Federal Transit Administration. 2. Sound Transit shall perform the following: a. Design, construct and implement retail or other TOD uses concurrent with the occupancy of the parking structure or within a mutually agreed timeframe (west TOD). Original TOD: Sound Transit has l8 months from Certificate of Occupancy (CO) to secure a developer and the developer has 5 years to construct the TOD development. If either time line is not met, the west TOD property will be conveyed to the City at no cost to the City. Revised TOO: No change to the Current TaD agreement. b. Develop the approximate one-acre east of the parking structure with a Multi-story development. If Sound Transit does not implement a TOD use on Revised Sound Transit TaD Agreement LUTC Staff Report August 16, 2004 Page 1 of 4 said property within a mutually agreed upon time frame, it will transfer the property to the City at no cost. If it is not possible for the City to develop the east property within a reasonable time frame after the transfer of the property, the City at its discretion could develop a pedestrian plaza. , ...... Original TOD: Sound Transit has l8 months from CO to secure a developer for the east TaD and the developer has 5 years to construct the TOD development. If either timeline is not met the City has the option to purchase the east TaD property at Sound Transit's original purchase price. Revised TOD: The same time frames apply. If either time line is not met Sound Transit will convey the property to the City at no cost for a period of 7 years for the purpose of securing a developer for a TOD development. If, after the seven-year period, a developer has not been identified, the City, at its option, may convey the property back to Sound Transit or the City may purchase the property at fair market value. If the City desires to use the Property for non-TaD use during the 7 year period, it may purchase the property at fair market value. 3. Sound Transit shall complete 2l 51 Avenue South grid road from South 3l61h to South 320lh to assist in visibility and viability of onsite TaD as well as City Center economic development. Original TOD: There is no provision for the 2151 Avenue South grid road. Revised TOD: Sound Transit will contribute a capped, lump sum payment of$l million towards the completion of 21 51 Ave. South street improvement project. Sound Transit's contribution relieves Sound Transit and the TOD developer of any further investment in 2l 51 Ave. South, including any future traffic signalization. 4. Sound Transit shall construct South 3l ih grid road from 2l51 to 20lh Avenues South to assist in visibility and viability of onsite TOD as well as City Center economic development. Original TOD: There is no provision for South 31 ih grid road. Revised TOD: There is no provision for South 31 ih grid road. 5. Sound Transit shall participate in a pedestrian bridge component with properties to the north and/or south to provide pedestrian connectivity to transit and other City Center uses. Original TOD: There is no provision for a pedestrian bridge from the transit center. Revised TOD: Sound Transit agrees to work with the City and/or private property interest in exploring the concept of a pedestrian bridge to the parking garage under certain conditions. . 6. Sound Transit shall dedicate experienced staff resources to this TaD project. Staff with expertise in transit development, leasing, and other property management skills will assist in the success of this project. Original TOD: There is no provision for Sound Transit to dedicate staff to this TaD project. Revised TOD: Sound Transit agrees to make available experienced staff resources to the project. 7. Sound Transit should provide a night management security plan. Original TOD: There is no provision for Sound Transit to provide a night management security plan. Revised TOD: Sound Transit agrees to provide a night management security plan for the transit center. B. Other Modifications l. The City will provide the remaining budget and funding for the design, environmental review, permitting, ROW acquisition (if necessary), construction and construction management of 2l 51 Avenue South improvement project. 2. The City agrees to waive any further development fees related 21 5t Ave. 3. The City agrees to waive standard City permit fees for the TaD projects. 4. The City may reduce the parking requirement on the TaD projects in recognition that many will be using the transit center or ST will dedicate parking in the garage for TaD use. 5. The City agrees to temporary, rather than permanent, irrigation for the TaD properties. 6. The City agrees to assist with the groundbreaking and ribbon-cutting activities for the transit center and 3l ih HOV access projects. 7. The City agrees that if the TaD project is consistent with the City's Planned Action SEP A that the developer will not be required to go through further SEP A review. 8. The City agrees to convert the current right-of-way use permit along S. 3l6th to an easement for as long as the property is used as a Transit Center. 9. If the East TaD Property is conveyed to the City, the City will provide an easement for access between the East TaD Property and the Transit Center. ()\Jy\~rvJllfi ~ Cmmi1tU attI fSVL . Staff requests tl}at the ommittee fo ard the proposed revised TaD Agreement to full City Council for placement on e Augu 24, 2004 City Council agendà, with a recommendation for approval and authorization fì the ity Manager to execute the Agreement. Comnúttee Member APPROVAL BY COMMITTEE: Comnúttee Chair K:\Sound Transit\TOD Agreement 2004\LUTC Staff Report 08.16,04 Committee Recommendation: I move the proposed revised TaD Agreement to full City Council for placement on the August 24, 2004 City Council agenda, with a recommendation for approval and authorization for the City Manager to execute the Agreement as amended by the Committee to delete "north end of the" on page 5, line 1. APPROV ALBY COMMITTEE: "'.~~ '. ,C mlÚiUee Member AGREEMENT BETWEEN CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY AND THE CITY OF FEDERAL WAY FOR FUTURE DEVELOPMENT OF TRANSIT ORIENTED DEVELOPMENT AT THE FEDERAL WAY TRANSIT CENTER THIS AGREEMENT is made and entered into this day of , 2004 by and between the CENTRAL PUGET SOUND REGIONAL tRANSIT AUTHORITY ("Sound Transit") and the CITY OF FEDERAL WAY ("City"), a municipal corporation, (hereinafter collectively, the "Parties"), regarding the development of a transit center project ("Project"). RECIT ALS WHEREAS, Sound Transit is a duly organized regional transit authority existing under Chapters 8l.l04 and 8l.ll2 RCW and has all powers necessary to implement a high capacity transportation system and has the power to contract pursuant to RCW 39.33.050; and WHEREAS, the City is a municipal corporation organized under Chapter 35A RCW and has all powers necessary to supply municipal services commonly or conveniently rendered by cities and towns; and WHEREAS, the Parties have authority under RCW 39.34 to enter into an interlocal agreement to jointly and cooperatively exercise their powers and under RCW 39.33 to dispose of real property; and WHEREAS, central Puget Sound area voters approved local funding for Sound Move, Sound Transit's ten-year regional transit plan and such plan includes light rail, commuter rail, and regional express buslhigh occupancy vehicle systems that will be integrated with local transit systems; and WHEREAS, on November 26, 2002, Sound Transit submitted a master land use application for development of the Federal Way Transit Center, an Essential Public Facility/Class l, which includes a transit platform with up to l4 bus bays and bus layover areas, a parking garage for up to 1,200 stalls on up to five levels, a pedestrian bridge between the transit platform and parking garage, passenger amenities, roadway Agreement Between Sound Transit and Federal Way Page 1 For Future TaD at Federal Way Transit Center improvements, landscaping and public art, application number 02-l 05-346, hereafter the "Project"; and WHEREAS, 'tñt'froject is located in the City on approximat~lý sev~n acres of property at the southwest comer of South 3l6th Street and 23rd Avenue South and legally described in Exhibit "A", attached and incorporated herein; and WHEREAS, ón December 23, 2002, the City deemed the Project applicat~on complete pursuant to Federal Way City Code ("FWCC" or "City Code") 22-434; and WHEREAS, on September 26, 200 l, a NEP A Environmental Assessment ("EA") was issued for the Project and Sound Transit, as the lead agency, adopted the EA and issued a Detennination of Nonsignificance ("DNS") on March 6, 2002, and this detennination was subsequently upheld on appeal by the King County Superior Court on March 17, . 2003; and WHEREAS, the City approved the Project in a final decision issued by the Federal Way City Council on November l8, 2003 as indicated in Resolution No. 03-404; and WHEREAS, pursuant to FWCC 22-l, the Project is classified as an Essential Public Facility/Class I (regional transportation facility/transit center) and is, therefore, subject to the review criteria described in FWCC 22-946.1 (b) and is not subject to the specific regulations described in the underlying City Center-Core zone; and WHEREAS, Sound Transit and the City executed an agreement on July 9, 200l as filed with the City under AG 01-99, whereby Sound Transit agreed, in part, to voluntarily design the Project to provide an opportunity for transit oriented development ("TaD") consistent with applicable policies and regulations of Sound Transit, the Federal Transit Administration, and the City; and WHEREAS, the Sound Transit Board of Directors has adopted TOD policies with Motions No. 98-25 and M99-60, encouraging the development of transit supportive development at transit hubs; and WHEREAS, consistent with its voluntary commitment to provide future TaD development opportunities, Sound Transit identified "potential future transit oriented development" areas on the Project site plan; and WHEREAS, the Parties recognize that the 2151 Avenue South Street Improvement Project and certain other development incentives would contribute to the likely success of TaD development adjacent to the Project; and WHEREAS, the Parties desire to clarify their respective commitments for future TaD adjacent to the Project site by this Agreement and acknowledge that any future TaD that may occur adjacent to the Project site will be evaluated separately from the Project Agreement Between Sound Transit and Federal Way Page 2 For Future TaD at Federal Way Transit Center application process for appropriate permits and environmental review under the State Environmental Policy Act and is not a part of the current review process for the Project. NOW THEREFORE, in consideration of mutual promises and covenants herein contained in this Agreement, Sound Transit and the City agree as follows: 1.0 1.1 1.2 1.3 1.4 2.0 2.1 AGREEMENT DEFINITIONS East TOD Property: That area as depicted on Exhibit "B" consisting of approximately 30,834 square feet and intended for future TaD uses. West TOD Property: That area as depicted on Exhibit "B" consisting of approximately 20,669 square feet and intended for future TaD uses. TOD Properties: Refers to the East and West TaD Property collectively. Transit Oriented Development ("TOD"): In the context of this Agreement, the term TaD represents development consistent with Exhibit "c" attached hereto and incorporated herein by this reference. RESPONSIBILITIES Sound Transit Responsibilities A. Sound Transit shall design and construct the Project consistent with the final plans and approvals issued by the City to allow development of future TOD opportunities on the TOD Properties and pursuant to applicable City Code requirements. B. Sound Transit shall exert its best efforts, in consultation with the City, to obtain a qualified developer(s) who will develop the TaD Properties within five (5) years of occupancy of the Project, consistent with Sound Transit's adopted policies for TOD development. In the event that Sound Transit determines, in its sole judgement, that a qualified TaD developer cannot be obtained through these good faith efforts, Sound Transit shall prepare and issue a Request For Proposals ("RFP"), at its sole expense and in consultation with the City, for development of the TOD Properties consistent with all applicable federal, state and local policies and regulations and at least twelve (12) months prior to the anticipated occupancy of the Project. Sound Transit shall, within eighteen months of issuance of the Certificate of Occupancy for the Project, (1) secure a commitment from a qualified Agreement Between Sound Transit and Federal Way Page 3 For Future TaD at Federal Way Transit Center c. developer, who will agree to develop the TOD Properties within five (5) years of occupancy of the Project; or (2) convey the TOD Properties pursuant to Section 2.2 of this Agreement. If requested by Sound Transit, the City shall serve as lead agency for purposes of managing the RFP process. D. In conjunction with construction of the Project, Sound Transit shall design and construct utilities and pedestrian connections within the Project property in such a manner so as to allow future utility and pedestrian connections to the TOD Properties consistent with the final plans as approved by the City. E. In conjunction with the construction of the Project, Sound Transit shall prepare and submit a landscape plan for the TOD Properties consistent with Project Landscape Standards attached as Exhibit "D". The City shall review and approve the landscape plan expeditiously and Sound Transit shall implement the approved landscape plan pursuant to City Code as provided in the final approval issued by the City by installing the approved landscaping and improvements within 45 days of City approval, or some other timeframe as mutually agreed between the Parties. F. Sound Transit shall contribute a lump sum payment of One Million Dollars ($l ,000,000) to the 2l st Avenue South Street Improvement Project (2lst Ave. Project). Sound Transit's contribution shall be paid to the City immediately upon fulfillment of the following conditions by the City; (a) completion of SEP A review, (b) acquisition or control of all property required for the 21st Ave Project, and (c) all required pennits have issued for the 2l st Ave. Project. Sound Transit shall complete timely review of all 2lst Ave. Project SEPA documentation. Sound Transit's contribution shall relieve Sound Transit and the TOD Properties of any further investment in 2l st Avenue South, including any future traffic signalization or fees. G. If in its sole discretion Sound Transit detennines that certain parking stalls in the parking garage are not necessary for successful operation of the Project, Sound Transit shall make parking in the Project parking garage available to local businesses and the City through market value leases for limited lease periods. In such an event, Sound Transit may reserve the right to tenninate the lease(s) upon not less than 90 days written notice to the Lessee(s). The parties acknowledge that any lease for parking in the Project parking garage is subject to approval by the Federal Transit Administration. Sound Transit agrees to cooperate with the City and/or private property owner/developer to facilitate the development of a pedestrian bridge to the Agreement Between Sound Transit and Federal Way Page 4 For Future TaD at Federal Way Transit Center H. north-end of the Project parking garage. Sound Transit shall grant access easements to the Project if such a pedestrian bridge proposal is viable and will be fully funded either by the City or by a third party who agrees to fully fund all costs associated with such a pedestrian bridge including design, permitting, construction and maintenance. In the event that the number of parking stalls within the Project garage would be reduced to accommodate the pedestrian bridge proposal, Sound Transit shall be entitled to compensation for such a loss in parking. Sound Transit reserves the right to review and reject or approve any particular proposal. Sound Transit's approval shall not be unreasonably withheld or delayed. 1. Sound Transit shall provide experienced staff to work with the City in the development of the TaD. J. Sound Tran~it shall provide a night management security plan to the City for the Project. 2.2 Conveyance of TOD Properties A. West TaD property In the event that Sound Transit is not able to secure a commitment from a qualified developer within eighteen (18) months of issuance of the Certificate of Occupancy for the Project, who will agree to develop the West TaD Property within five (5) years of occupancy of the Project, on terms and conditions acceptable to Sound Transit in its sole judgment, or the developer does not commence construction of the TOD on the West TOD Property within five (5) years of occupancy of the Project, Sound Transit shall convey the West TOD Property to the City consistent with all applicable federal, state, and local policies and regulations for such conveyances, the terms of this Agreement, and for valuable consideration in the form of the City's assurance that any future development of the West TaD Property will be consistent with the definition of TOD in this Agreement. Sound Transit shall retain permanent utility, access, and signage easements over across and through the West TaD Property as necessary for Sound Transit's continued use and enjoyment of the Project property. B. East TaD Property In the event that Sound Transit determines within eighteen (18) months of issuance of the Certificate of Occupancy for the Project that it is not able to secure a commitment from a qualified developer, who will agree to develop the East TOD Property within five (5) years of occupancy of the Project on terms and conditions acceptable to Sound Transit in its sole Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 5 judgment, or the developer does not commence construction of the TOD on the East TOD Property within five (5) years of occupancy of the Project, Sound Transit shall convey the East TOD Property to the City consistent with all applicable federal, state, and local policies and regulations for such conveyances, the terms of this Agreement, and for valuable consideration in the form of the City's assurance that any future development of the East TOD Property will be consistent with the definition of TaD in this Agreement. The City shall have seven (7) years from the time of the conveyance to develop a TOD project on the East TaD Property. The City agrees to consult with Sound Transit's Chief Executive Officer, or designee, when reviewing proposed projects and no City-led project shall proceed unless he or she concurs with the City that the proposed project is consistent with the definition of TOD in this Agreement which concurrence shall not be unreasonably withheld or delayed. If the City is unable to develop a TOD project that Sound Transit agrees is consistent with the definition of TOD in this Agreement within seven (7) years of the conveyance to the City, the City shall either (1) retain ownership of the East TOD Property and pay Sound Transit the full market value of the property as determined by a mutually selected certified appraiser, less the value of permanent utility, access, and signage easements over, across and through the East TOD Property necessary for Sound Transit's continued use and enjoyment of the Project property as mutually determined by the Parties, or (2) transfer the East TOD Property back to Sound Transit at no cost to Sound Transit. In the event the City desires to develop the East TOD Property in a manner that is not consistent with the definition of TOD in this Agreement within seven (7) years of conveyance to the City, the City shall pay Sound Transit the full market value of the property as determined by a mutually selected certified appraiser, less the value of permanent utility, access, and signage easements over, across and through the East TOD Property necessary for Sound Transit's continued use and enjoyment of the Project property as mutually determined by the Parties. c. The Parties agree that any development that is allowed to occur on the TOD Properties shall be consistent with the definition of TOD as described in Exhibit "C" to this Agreement and will assure that any conveyances shall be made subject to this requirement. The Parties further agree that if a proposed TaD project is consistent with the City's Planned Action SEP A, no additional SEP A review shall be required for the TaD project. D. Notwithstanding any other section of this Agreement, the Parties agree that Sound Transit shall not be required to convey the TOD Properties to the City until eighteen (l8) months after the Certificate of Occupancy has been issued by the City for the Project. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 6 2.3 City Responsibilities A. The City shall be responsible for the design, management and construction of the 2l51 Ave. Project. The City shall act as the lead agency for SEP A review. The City shall be responsible for property acquisition and pennitting. Sound Transit's contribution of One Million Dollars to the 2151 Ave. Project shall relieve Sound Transit and/or the TOD developer of any further investment in 2151 Avenue South, including any future traffic signalization or fees. The City agrees to coordinate with Sound Transit on the design of 2151 Ave. Project and provide Sound Transit an opportunity to review and approve the design to ensure that the 2151 Ave. Project does not interfere with the smooth operation of the Project. During construction, the City shall use its best efforts to reduce construction activity during peak commute- hours and provide traffic control designed to minimize the impact on transit operations. B. In recognition of Sound Transit's One Million Dollar contribution to the 2151 Ave. Project, the City shall not require payment of the City's standard pennit fees for development of the TaD properties. This shall not include non-City or non-standard pennit fees (i.e. fire district, school district, variance or expedited review fees). The City shall consider the number of people accessing the TaD via transit when detennining the parking requirements for the TaD projects. Parking requirements for the TaD projects may be reduced, in recognition of those using the Project parking garage, or waived if Sound Transit dedicates sufficient parking in the Project parking garage to the TaD projects. c. The City shall assist Sound Transit in the planning and implementation of the ground-breaking and ribbon-cutting activities for the Federal Way HaV Access/S. 31 ih and Federal Way Transit Center Projects. D. In the event that Sound Transit conveys either of the TaD Properties to the City pursuant to Section 2.2, the City agrees to provide an easement in substantially the fonn attached as Exhibit "E" for unimpeded access between the TaD properties and the Transit Center to preserve the physical and functional relationship between the properties. E. Immediately upon execution of this Agreement, the City shall convey to Sound Transit a pedestrian amenities easement substantially in the fonn attached and incorporated herein as Exhibit "F". Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 7 2.4 Additional Agreements The Parties agree to make every reasonable effort to cooperate in good faith with each other to negotiate and execute such additional agreements as may be necessary to complete the TOD Property conveyances described in this Agreement. 3.0 LEGAL RELATIONS The City and Sound Transit shall comply, and to the best of their respective abilities shall ensure, that their respective employees, agents, consultants and representatives comply with all federal, state and local laws, regulations and ordinances applicable to the work and services to be performed by each party under this Agreement. In performing work and services -hereunder, the City and its employees, agents, consultants and representatives shall be acting on behalf of the City and shall not be deemed or construed to be employees or agents of Sound Transit in any manner whatsoever. Likewise, in performing work and services hereunder, Sound Transit and its employees, agents, consultants and representatives shall be acting on behalf of Sound Transit and shall not be deemed or construed to be employees or agents of the City in any manner whatsoever. Neither the City nor Sound Transit shall hold itself out as, nor claim to be an officer or employee of the other by reason hereof and will not make any claim, demand, or application to or for any right or privilege applicable to an officer or employee of the other. The City shall be solely responsible for any claims for wages or compensation by City employees, agents, and representatives, including consultants, and save and hold Sound Transit harmless therefrom; Sound Transit shall be solely responsible for any claims for wages or compensation by Sound Transit employees, agents, and representatives, including consultants, and save and hold the City harmless therefrom. To the maximum extent permitted by law, the City agrees to indemnify and hold harmless Sound Transit and its officers, officials, employees and/or agents, from and against any and all suits, claims, actions, losses, costs, penalties and damages of whatsoever kind or nature to the extent arising out of, in connection with, or incident to any work or services required or contemplated to be performed by the City under this Agreement, and for any failure to satisfy the City's contractual obligations under this Agreement, except to the extent caused by the negligence of Sound Transit. The City further agrees to assume the defense of Sound Transit and its officers, officials, and employees, with legal counsel acceptable to Sound Transit, which acceptance shall not be unreasonably withheld, in all legal or claim proceedings arising out of, in connection with, or incident to such work or services, and the City shall pay all defense expenses, including attorneys' fees, expert fees, and expenses and costs (collectively "defense costs") incurred directly or indirectly on account of such litigation or claims, and the City shall satisfy any judgment rendered in connection therewith. The City may settle any suit, claim, action, loss, cost, penalty, or damages, subject to the approval of Sound Agreement Between Sound Transit and Federal Way Page 8 For Future TaD at Federal Way Transit Center Transit, which approval shall not be unreasonably withheld, if such settlement completely and forever extinguishes any and all liability of Sound Transit. In the event of litigation between the Parties to enforce the rights under this Section, reasonable attorney fees shall be allowed to the prevailing party. THE CITY'S INDEMNIFICATION OBLIGATION HEREIN SHALL INCLUDE, BUT IS NOT LIMITED TO, ALL CLAIMS AGAINST SOUND TRANSIT BY AN EMPLOYEE OR FORMER EMPLOYEE OF THE CITY OR ITS CONSULTANT, AND, AFTER MUTUAL NEGOTIATION WITH SOUND TRANSIT, THE CITY EXPRESSLY WAIVES ALL IMMUNITY AND LIMIT A TION ON LIABILITY UNDER ANY INDUSTRIAL INSURANCE ACT, INCLUDING TITLE 5l RCW, OTHER WORKER'S COMPENSATION ACT, DISABILITY BENEFIT ACT, OR OTHER EMPLOYEE BENEFIT ACT OF ANY JURISDICTION THAT WOULD OTHERWISE BE APPLICABLE IN THE CASE OF SUCH CLAIM. To the maximum extent pennitted by law, Sound Transit agrees to indemnify and hold hannless the City and its officers, officials, employees and/or agents, from and against any and all suits, claims, actions, losses, costs, penalties and damages of whatsoever kind or nature to the extent arising out of, in connection with, or incident to any work or services required or contemplated to be perfonned by Sound Transit under this Agreement, and for any failure to satisfy Sound Transit's contractual obligations with respect to the Project and/or under this Agreement, except to the extent caused by the negligence of the City. Sound Transit further agrees to assume the defense of the City and its officers, officials, and employees, with legal counsel acceptable to the City, which acceptance shall not be unreasonably withheld, in all legal or claim proceedings arising out of, in connection with, or incident to such work or services, and Sound Transit shall pay all defense expenses, including attorneys' fees, expert fees, and expenses and costs (collectively "defense costs") incurred directly or indirectly on account of such litigation or claims, and Sound Transit shall satisfy any judgment rendered in connection therewith. Sound Transit may settle any suit, claim, action, loss, cost, penalty, or damages, subject to the approval of the City, which approval shall not be unreasonably withheld, if such settlement completely and forever extinguishes any and all liability of the City. In the event of litigation between the Parties to enforce the rights under this Section, reasonable attorney fees shall be allowed to the prevailing party. SOUND TRANSIT'S INDEMNIFICATION OBLIGATION HEREIN SHALL INCLUDE, BUT IS NOT LIMITED TO, ALL CLAIMS AGAINST THE CITY BY AN EMPLOYEE OR FORMER EMPLOYEE OF SOUND TRANSIT OR ITS CONSULTANT, AND, AFTER MUTUAL NEGOTIATION WITH SOUND TRANSIT, SOUND TRANSIT EXPRESSLY WAIVES ALL IMMUNITY AND LIMITATION ON LIABILITY UNDER ANY INDUSTRIAL INSURANCE ACT, INCLUDING TITLE 5l RCW, OTHER WORKER'S COMPENSATION ACT, DISABILITY BENEFIT ACT, OR OTHER EMPLOYEE BENEFIT ACT OF ANY JURISDICTION THAT WOULD OTHERWISE BE APPLICABLE IN THE CASE OF SUCH CLAIM. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 9 4.0 4.1 DISPUTE RESOLUTION Sound Transit and the City will work collaboratively to resolve disagreements arising from activities performed under this Agreement. Disagreements will be resolved promptly and at the lowest level of hierarchy. The services of a mediator may be used to assist with resolution. The following is a guide intended to resolve the maximum number of issues at the lowest organizational level. A. The Designated Representatives, as identified in this Agreement, shall communicate regularly to discuss the status of the task to be performed and to resolve any issues or disputes related to the successful performance of this Agreement. The Designated Representatives will cooperate in providing staff support to facilitate the performance of this Agreement and the resolution of any issues or disputes arising during the term of this Agreement. B. Each Designated Representative shall notify the others in writing of any problem or dispute that the Designated Representative believes should be resolved. The Designated Representatives shall meet within five (5) business days of receiving the written notice in an attempt to resolve the dispute. c. In the event the Designated Representatives cannot resolve the dispute, the Sound Transit Director of Regional Express or hislher designee and the City's Director of Community Development Services or his/her designee shall meet and engage in good faith negotiations to resolve the dispute. D. In the event the Directors cannot resolve the dispute, the Sound Transit Executive Director or designee and the City Manager or designee shall meet and engage in good faith negotiations to resolve the dispute. The Parties agree that they shall have no right to seek relief under this Agreement in a court of law until and unless each of these procedural steps is exhausted. 5.0 5.1 MISCELLANEOUS PROVISION Termination Unless extended by mutual written agreement, this Agreement shall terminate upon satisfactory completion of all the responsibilities described in this Agreement, or upon conveyance of the TaD Properties as described in this Agreement, whichever shall occur last. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 10 5.2 Notice All notices or requests required or pennitted under this Agreement shall be in writing, shall be personally delivered or sent by certified mail, return receipt requested, postage prepaid, or by facsimile transmission and shall be deemed given three (3) days following the date when mailed or on the date when delivered or faxed (provided the fax machine has issued a printed confinnation of receipt). All notices or requests shall be sent to the City and Sound Transit's Designated Representatives addressed as-follows: To the City: City of Federal Way Attn: Kathy McClung, Director of Community Development Services 33325 - 8th Avenue South P.O. Box 97l8 Federal Way, WA 98063-9718 (253) 835-2610 (253) 66l-4l29 Address: Phone: Fax: With a Copy to: City of Federal Way Attn: Pat Richardson, City Attorney 33325 - 8th Avenue South P.O. Box 97l8 Federal Way, WA 98063-9718 (253) 835-2570 (253) 835-2569 Address: Phone: Fax: To Sound Transit: Sound Transit Attn: Dan Eder, Project Manager 401 S. Jackson Street Seattle, W A 98l04-2826 (206) 398-5024 (206) 398-52l5 Address: Phone: Fax: Each Party shall notify the other, in writing, of a change in the Party's respective Designated Representative. 5.3 Assignment Neither Sound Transit nor the City shall assign any interest, obligation, or benefit in this Agreement or transfer any interest in the same, whether by assignment or novation, without prior written consent of the other; provided, however, that claims for money due or to become due to the City from Sound Transit under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of Agreement Between Sound Transit and Federal Way Page 11 For Future TaD at Federal Way Transit Center any such assignment of claims for money due or to become due to the City shall be furnished promptly to Sound Transit. 5.4 Recording This Agreement shall be recorded with the Real Property Records Division of the King County Records and Elections Department and shall be binding and inure to the benefit of the parties and their successors in interest. 5.5 Governing Law This Agreement and all provisions hereof shall be interpreted in accordance with the laws of the State of Washington. 5.6 Severability If any of the tenns or provisions of this Agreement are detennined to be invalid, such invalid tenn or provision shall not affect or impair the remainder of this Agreement, but such remainder shall continue in full force and effect to the same extent as though the invalid tenn or provision were not contained herein. 5.7 Warranty of Right to Enter into Agreement The City and Sound Transit each warrant that it has the right to enter into this Agreement and that the person signing this Agreement has authority to bind such person's respective entity. 5.8 Exhibits All exhibits referenced in and attached to this Agreement are incorporated herein, except to the extent otherwise provided herein. 5.9 Entire Agreement This Agreement represents the entire agreement of the Parties with respect to all matters referenced herein. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 12 CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY ("SOUND TRANSIT") Name Title Date Approved as to fonn: Sound Transit Legal Counsel CITY OF FEDERAL WAY: David H. Moseley, City Manager Date Attest: N. Christine Green, CM C Approved as to fonn: City Attorney, Patricia A. Richardson K:\Sound Transit\TOD Agreement 2004\Revised TOD Agreement 8,16,04 Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 13 Exhibit A Existing Parcel Legal Description: KING COUNTY SHORT PLAT l802027 Tax Parcel No. 092104-9021 Lot 1 of King County Short Plat No. l82027, according to short plat recorded March 14, 1984 under Recording No. 8403l40752, in King County, Washington. Tax Parcel No. 092104-9057 Lot 2 of King County Short Plat No. l82027, according to short plat recorded March l4, 1984 under Recording No. 8403l40752, in King County, Washington. KING COUNTY SHORT PLAT 4800l9R Tax Parcel No. 92104-9176 Lot 2 of King County Short Plat No. 4800 19R, according to short plat recorded April 28, 1980 under Recording No. 8004280455, in King County, Washington; Except that portion conveyed to the City of Federal Way, for road, by deed recorded under Recording No. 20001215001690. Except that portion conveyed to the City of Federal Way, a Washington Municipal Corporation, under statutory warranty deed recorded December 18, 2002, under Recording No. 2002l2l8002306. Tax Parcel No. 092104-9298 Lot 3 of King County Short Plat No. 4800l9R, according to short plat recorded April 28, 1980 under Recording No. 8004280455, in King County, Washington; Except that portion conveyed to the City of Federal Way by deeded recorded under Recording No. 200l032300l260. Tax Parcel No. 092104-9299 Lot A of King County Short Plat No. 4800l9R, according to short plat recorded April 28, 1980 under Recording No. 8004280455, in King County, Washington. Except that portion conveyed to the City of Federal Way by deed recorded under Recording No. 2000080700l155. Also except that portion conveyed to the City of Federal Way by deed recorded under Recording No. 20020724000972. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 14 / . , <>~""l ;,;,,:.;/ ~;~,,?~ ~~ ., /~/>'-, ,~!f.n' ~~~,' ~é~~'¡.~",.: '. '- ""'1.~ß~ .. ] m -, T.- 'é;:,:;,/j~~~.:;;':':i:\~" "" ,", ..,--=:-.::.-:\--,..,.,.,. ",';;-;? "~,'II ",', : ,..-¡}/" , I ' r -'I ..-: " -,"'.;:? ", ' I' I I -I I :~, \:.~"::;;"~,~<~'»= ','" II ,';>. :,1..1" f~';~', ,,!~:~:~~::~.~,..; f:> ,¡:, ::'-""'J\I"~:) ~~~~" ";J1 '("t,Î,~'",' '/,~,\~",,~,',':","" t;;Q~ ";",':'""""',""',,,,'¡';,':,',',"';:,L,J,,,: ,,'Ii ¡1f;"'" ~lN:,':~~':>-,' ¿} ~ f;< .', ':""':~",:' ':~::::~ 3:,~~:i '~'IJI r,,~~J "~!","" .... ",,':, """""":",,,'d ":'/' 'J,'¡'~ 0.. ii" ",m': I, "='/ . ,; ~-----~"__'_~-_'_-":';':'::"'-"'~~1" '""".,":,r;:. : ¡~;L,,:~l! 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""'~~":';';;:',"(,"\':'ii>$.':',"\,"":',"';'" :',,' -""",:,':-, {,""" ;:\;'~':';h~~~;:¡:;j'¿~:;'~~::.:..n'~':"':' n_,--..~,;,~4':-:~-:~lt~.1t;;}..i::', " ',:~'<'~'r/' ~,"; """:;;-':~"'¡:',:,<.,';~,~,""/i,'~,",:"",;t',"','",':"""r;::"""v,""":"':"¡""..".~;lt::::~-:ïr~'~,,""',' " '~"',"'f_'~~""'f' ':";1 : ,:' ~"';¡ ~~;\;':'~,<~, ::~;::,~~~~7'"~'f':~~";¿~,~;7':~'?~~ß::: ':.'..' ,:' -.:. J 2:-...'-~:; <;~~ ,: .;::' '0 " ! '0 "01.:(';,""',"'" ,'" "'~""""'~,:~,~""",'("-:~',"',"v.,- 'ßunI, ,,';';""," ,,' . :, ~';!i:>:::'j~~~~~.,'.' ,'~.:~~~~::;:~)i~.~~U\::~;~:l..~'~~~-~Ù¡:J..>;;:i' .~ - tr' ; ';,""]!V<"F."",',,',",,','.,',Z,;',',',',",',,',,',"',',";,"',',',:,~:""'" :""'~;",",',',¿,',.',""..;..'.,.,.........~t..}.'.'"".,.",.".-..""'.:'.'.V.'~":."'.""""""'"",','. ""'.'.~¡'~I.".",,',,;,,',~,','" '-'.~.'l' !',i';:f;'J,f,~,;,",~,~,',¡...):~\::,;,,),:,:',:,~,. ¡,:,,'::',"",':,":', ',," ',' "':-:":":':"_",";'~:':"'¡'~'';.:.',f.~"i,:.,,',':~,?~:,',:::;¡~.'~,':.' .':,:,:~,:.,..j,'~I""~':"~,;:',:'~,,~:i,:_)HI,' :_j:/:. ' ..,L"""k"""""'" """";'.'.-...' ",oC .' ""","';', .. fttfJJj ---:0- - - . ';1 ~~tf§#;;~"~~ ~ 1:T'- ~>~E:~;~~f ~~i¿~~Ë!~"~jij,::;i; ~1 ~~" ~~~;: ~ Exhibit B East and West TOD Properties j I f ----- ~ .------ l; ~ ß ~ '.i t.: Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit rpnfpr Page 15 -'------------H--' /' :;- ; ~ - I . <:: J ¡;( ¡:_- <- - ~ I.. ~:i.¡ ;~ ~ ! ~~ VI I:l-" &:~ . ;.;2: -;¡ t.J~ '- t':' ~ :r.ø .. [3~ :' ~¡:: ~ ...", ¡¡;:< !::'~ :: -<;,.j ~ f.:< -¡ e~ If ~:: t1 ~ ~ t ,I Exhibit C Guidelines for Transit Oriented Development This exhibit provides a definition of the term "transit oriented development" (TaD) for the TaD Agreement between Sound Transit and the City of Federal Way. Transit Oriented Development Definition: Public and private development that supports and promotes transit use. Development projects should strive to enhance the effectiveness of transit, and be related physically or functionally to transit. To be considered TaD, development should address all three key compõnents: location, use and design. . Location - Development that occurs within walking distance of major transit service. Generally, this means development occurring within V4 mile of any light rail station, or V4 mile of any bus stop with multiple routes and/or frequent service. [For example, under this definition, development occurring within V4 mile of the Federal Way Transit Center/So 3l ih project would satisfy the location component. ] . Land Use - Types of development that support and promote transit use. Development that creates housing, jobs, shopping, community services or recreational opportunities could qualify as acceptable use. Development should support and promote transit use by making the best use of the underlying zoning capacity to encourage moderate or high-density development clustered near transit. Development should encourage a mix of uses where provided by underlying zoning. [An example of appropriate land use for a development adjacent to transit on a busy commercial street would be a 5-story mixed-use building with street- front retail and office above.] . Design - Development design that encourages neighborhood and pedestrian activity on the street and connectivity to transit, and decreased dependence on driving. The development should enhance the environment for pedestrians in terms of safety, comfort and visual appeal. Inviting sidewalks and pedestrian public spaces are examples of appropriate design. Developments should encourage reduced parking and creative transportation demand management solutions to emphasize transit-use. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 16 Exhibit D Project Landscape Standards INTRODUCTION The Project is located at the southwest comer of South 3l6th Street and 23rd Avenue South, and is approximately 6.9 acres in siz.e. The Project will include up to l4 bus bays, up to 1,200 stalls, bus layover areas, passenger boarding areas, operator restrooms and public restrooms, street improvements, and public art. DESIGN INTENT Context-sensitive landscaping is used throughout the project. Planting beds and landscape planters appropriate to screen facades and to delineate and enhance pedestrian areas are used around the foundation of the garage, sidewalks, plazas, and transit center areas, while an "open area" planting scheme is used in future TaD Property. PEDESTRIAN SCALE LANDSCAPING The sidewalks and plazas surrounding and adjacent to the Project combine to provide a linear theme of movement throughout the Project. Sidewalks along the east-west and north-south axes of the Project and along South 316th Street are delineated by distinct paving and scoring, and connect to plazas containing seating, scored and colored concrete, lighting, trash receptacles, bicycle racks, public art elements, and plantings. These features combine to create an organized, safe, and attractive sequence of pedestrian linkages and amenities throughout the Project. Sidewalks and plazas will be accented with pedestrian-scale landscaping typical to urban pedestrian areas, including architectural landscape planters, and structured, ornamental trees and shrubs that preserve sight lines into pedestrian areas. FACADE SCREENING Planting areas on the east and west facades of the parking structure are designed to meet Federal Way City Code (FWCC) Sec. 22-l565( c), Type III "visual buffer" landscape requirements, and include a variety of evergreen and deciduous trees interspersed with large shrubs and groundcover sufficient to soften the appearance of building elevations. FUTURE TRANSIT ORIENTED DEVELOPMENT PROPERTIES The landscaping design for the TaD Properties is intended to be passive in character. Interim landscaping in the TaD Properties will provide visual relief and shading while maintaining clear sight lines across the site. Sod will be provided throughout the TaD Properties and will be punctuated by deciduous trees at one tree per 3,500 square feet (a total of 15 trees) to create a passive, yet enjoyable, experience for both transit patrons and pedestrians. The interim landscaping will not be permanently irrigated; instead, Sound Transit will utilize temporary irrigation methods to properly maintain the sod and trees. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 17 Exhibit E When Recorded Mail To: CITY OF FEDERAL WAY 33325 - 8TH AVENUE SOUTH POST OFFICE BOX 9718 FEDERAL WAY, WASHINGTON 98063-97l8 ATTN: City Attorney ACCESS EASEMENT CITY OF FEDERAL WAY, a Washington Municipal Corporation CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY, a Regional Transit Authority Property Legal Description (abbreviated): Easement Legal Description: Grantor: Grantee: RECIT ALS WHEREAS, on , the City of Federal Way, a Washington Municipal Corporation, ("Grantor" or "City") and the Central Puget Sound Regional Transit Authority, a Regional Transit Authority, ("Grantee" or "Sound Transit") entered into an Agreement, No.- ("TaD Agreement") regarding future development of Transit Oriented Development ("TaD") adjacent to the Federal Way Transit Center ("Transit Center"); and WHEREAS, pursuant to the TaD Agreement, Grantee conveyed the TaD Property, legally described in Exhibit A, to the City for development of TaD; and WHEREAS, pursuant to the TaD Agreement, Grantor agreed to provide an easement for unimpeded access between the TaD Property and the Transit Center; NOW, THEREFORE, in consideration of the above recitals and the mutual covenants herein contained, and for other good and valuable consideration the receipt of which is hereby acknowledged, Grantor and Grantee hereby agree: 1. Grant of Easement. Grantor grants to the Grantee a non-exclusive, access easement under, across and over certain real property (the "Easement Area") located in Federal Way, Washington, legally described in Exhibit B on a non-exclusive basis and subject to the conditions and limitations herein. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 18 2. Purpose and Access. Said Easement shall be for the purpose of unimpeded access between the East TOD Property and the Transit Center. Grantee shall have the right of access to the Easement Area to enable Grantee to exercise its rights hereunder by utilizing the improved driveway or designated walkways on the East TaD Property or by any other method mutually agreeable to Grantor and Grantee, This Easement shall be non-exclusive and shall be open to the Grantee, the Grantors and the general public; provided that, Grantee shall ensure that use of the Easement Area does not interfere with the primary use of the East TaD Property and the rights and privileges of the Grantor therein. 3. Grantor's Use of Easement. _Grantor reserves the right to use the Easement for any purpose not inconsistent with Grantee's rights. 4. Indemnification. Each party to this Easement shall indemnify, defend, and hold the other party, its elected officials, officers, employees, agents, and volunteers harmless from any and all claims, demands, losses, actions and liabilities (including costs and all attorneys' fees) arising from or as a result of the death of any person, or any accident, injury, loss, or damage whatsoever caused to person or property, which shall occur upon the Easement Area except to the extent caused by the negligent or willful act or omission of the other party, its agents, licensees, or representatives. 5. Successors and Assigns. The rights and obligations of the Parties shall inure to the benefit of and be binding upon their respective successors in interest, heirs and assigns. DATED THIS day of ,2°- GRANTOR CITY OF FEDERAL WAY By David Moseley, City Manager GRANTEE CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY By Its Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 19 STATE OF WASHINGTON) ) ss. COUNTY OF KING ) On this dqy personally appeared before me David Moseley, to me known to be the City Manager of the City of Federal Way that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN my hand and official seal this day of ,200_. - (typed/printed n~me of notary) Notary Public in and for the State of Washington. My commission expires ST ATE OF WASHINGTON) ) ss. COUNTY OF KING ) On this day personally appeared before me , to me known to be the of the CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN my hand and official seal this day of ,200_. (typed/printed name of notary) Notary Public in and for the State of Washington. My commission expires K:\Sound Transit\Access Easement Ex. E to TOD Agreement Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 20 Exhibit A to Access Easement East TOD-Property Description Agreement Between Sound Transit and Federal Way For Future TOO at Federal Way Transit Center Page 21 Exhibit B to Access Easement Easement Area Legal Description Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit Center Page 22 Exhibit F Return Address: City of Federal Way Attn: Law Dept. PO Box 9718 Federal Way, W A 98063-9718 PEDESTRIAN AMENITIES EASEMENT Grantor(s): CITY OF FEDERAL WAY, a Washington municipal corporation Grantee (s): CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY, a Regional Transit Authority Property Legal Description (abbreviated): Easement Legal Description (abbreviated): Assessor's Tax Parcel ID#(s): RECITALS WHEREAS, the City of Federal Way ("City" or "Grantor") holds rights-of-way within the City in trust for the benefit of the public, including South 316m Street between and legally described in Exhibit A attached hereto and incorporated by reference ("Easement Area"); and WHEREAS, Central Puget Sound Regional Transit Authority ("Sound Transit" or "Grantee") desires to use space in, on, or above the Easement Area for the installation and maintenance of certain improvements that include special stamped concrete pavement, trellis footings, landscaping, street light banners and benches ("Pedestrian Amenities") for use in connection with its construction and operation of a Transit Center located at , legally described in Exhibit B ("Transit Center"); and WHEREAS, The City's Land Use Approval # installation of Pedestrian Amenities. , dated , requires the EASEMENT AGREEMENT NOW, THEREFORE, in consideration of the above recitals and the mutual covenants herein contained, and for other good and valuable consideration the receipt of which is hereby acknowledged, Grantor and Grantee hereby agree: Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit Center Page 23 1. Grant of Easement. Grantor grants to the Grantee a non-exclusive, pedestrian amenities easement under, across and over the Easement Area on a non-exclusive basis and subject to the conditions and limitations herein. 2. Purpose and Access. Said Easement shall be for the purpose of installation and maintenance of certain Pedestrian Amenities that include special stamped concrete pavement, trellis footings, landscaping, street light banners and benches for use in connection with the construction and operation of the Transit Center. This Easement shall be non-exclusive and shall be open to the Grantee, the Grantors and the general public; provided that, Grantee shall ensure that the Pedestrian Amenities do not interfere with the primary use of the Property and the rights and privileges of the Grantor therein. 3. Easement Area Improvements. Grantee may locate its Pedestrian Amenities on the Easement Area in the manner as described specifically in the attached Exhibit C. Grantee may not add Pedestrian Amenities in addition to that shown on Exhibit C other than as may be approved in writing by the City. 4. Grantor's Use of Easement Area. The City reserves the right to regulate, use, occupy and enjoy its Property for such purposes as it shall desire including, but not limited to, constructing or installing structures and facilities on the right-of-way, or developing, improving, repairing or altering the right-of-way. Upon the City's demand and at the Grantee's sole cost and expense, the Grantee shall remove, repair, relocate, change or reconstruct the Pedestrian Amenities pursuant to the City's instructions and within a reasonable time period prescribed by the City. 5. Restoration. In the event that Grantee causes damage of any kind during the course of installing, operating or maintaining the Pedestrian Amenities, including damage to the right-of-way caused by cutting, boring, jack hammering, excavation or other work, and including latent damage not immediately apparent at the time of the work, Grantee shall repair the damage and restore the right-of-way at Grantee's sole cost and expense, without delay or interruption and within the reasonable time period prescribed by the City. Restoration of the right-of-way shall be to a condition that is equivalent to or better than the condition of the right-of-way prior to commencing the installation, operation or maintenance of the Pedestrian Amenities and to a condition satisfactory to the City. Restoration of the right-of-way surface shall either include six inches (6") of crushed surfacing top course and three inches (3") of asphalt, class "B", or be replaced to the original condition, at the City's sole discretion. Whenever part of a square or slab or existing concrete sidewalk or driveway is cut or damaged, the entire square or slab shall be removed and replaced. All materials and compacting shall be in accordance with the "Standards and Specifications for Road, Bridge, and Municipal Construction," as amended. 6. Maintenance. Grantee shall be solely responsible for keeping the Easement Area reasonably neat and clean and 'in good condition and repair. Grantee shall, at its own expense, maintain the Easement Area and Pedestrian Amenities in a safe condition, in good repair, and in a manner suitable to the City. Additionally, Grantee shall keep the Easement Area free of debris, graffiti and anything of a dangerous, noxious or offensive nature or which would create a hazard or undue vibration, heat, noise or any interference with City services. Grantee shall have sole responsibility for the maintenance, repair, and security of its Pedestrian Amenities, and shall keep the same in good repair and condition. 7. Compliance with Laws. Grantee's use of the Easement Area is subject to its obtaining all certificates, pernùts, zoning, and other approvals that may be required by any federal, state or local authority. Grantee shall erect, maintain and operate its Pedestrian Amenities in accordance with applicable site standards, statutes, ordinances, rules and regulations issued by the City, federal or state government or any other governing bodies. Grantee acknowledges that all aspects of this Easement are consistent with existing Washington State statutes and the City Code, and to the best of its knowledge, this Easement is consistent with all other applicable federal, state and local laws. In addition, Grantee specifically acknowledges that the Easement Area is located in right-of-way subject to City's regulatory authority. Nothing herein shall be deemed to limit, impair or affect City's authority to pernùt, franchise or regulate usage of rights-of-way pursuant to its lawful authority. Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 24 8. Dangerous Conditions: Authority for City to Abate. Whenever construction, installation, or excavation of Pedestrian Amenities authorized by this Easement has caused or contributed to a condition which impairs the lateral support of the adjoining public way, street or public place, or endangers the public, street utilities or City-owned property, the City's Public Works Director may direct the Grantee, at the Grantee's own expense, to take reasonable action to protect the public, adjacent public places, City-owned property, streets; uti!i!ies and public ways. Such action may include compliance within a prescribed time. In the event that the Grantee fails or refuses to promptly take the actions directed by the City, or fails to fully comply with such directions, or if emergency conditions exist which require immediate action, the City may enter upon the Easement Area and take such actions as are reasonably necessary to protect the public, the adjacent streets, public ways and utilities, to maintain the lateral support thereof, or other actions regarded as necessary safety precautions; and the Grantee shall be liable to the City for the costs thereof. The provisions of this Section shall survive the tennination of this Easement. 9. Indemnification. Each party to this Easement shall indemnify, defend, and hold the other party, its elected officials, officers, employees, agents, and volunteers harmless from any and all claims, demands, losses, actions and liabilities (including costs and all attorneys' fees) arising from or as a result of the death of any person, or any accident, injury, loss, or damage whatsoever causeá to person or property, which shall occur upon the Easement Area except to the extent caused by the negligent or willful act or omission of the other party, its agents, licensees, or representatives. 10. Condemnation. In the event the Easement Area is taken in whole or in part by any entity by eminent domain, this Easement shall tenninate as of the date title to the Easement Area vests in the condemning authority. Grantee shall not be entitled to any portion of the award paid and the City shall receive the full amount of such award. Grantee hereby expressly waives any right or claim to any portion thereof. However, Grantee shall have the right to claim and recover nom the condemning authority, other than the City, such other compensation as may be separately awarded or recoverable by Grantee. 11. Successors and Assigns. The rights and obligations of the parties shall inure to the benefit of and be binding upon their respective successors in interest, heirs and assigns. 12. Termination. If at any time the Transit Center ceases to be used as a Transit Center, this Easement Agreement shall automatically terminate. Grantee shall remove the Pedestrian Amenities from the Easement Area upon tennination of the Easement. Upon removal of the Pedestrian Amenities, Grantee shall restore the affected area of the Easement Area to the reasonable satisfaction of the City. All costs and expenses for the removal and restoration to be perfonned by Grantee shall be borne by Grantee. If however, Grantee requests pennission not to remove all or a portion of the Pedestrian Amenities, and City consents to such nonremoval, title to the affected Pedestrian Amenities shall thereupon transfer to City and the same thereafter shall be the sole and entire property of City, and Grantee shall be relieved of its duty to otherwise remove same. Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit Center Page 25 DA TED THIS - day of GRANTOR: CITY OF FEDERAL WAY By: David H. Moseley, City Manager GRANTEE CENTRALPUGETSOUND REGIONAL TRANSIT AUTHORITY By: Joan M. Earl, CEO STATE OF WASHINGTON ) ) ss. ) COUNTY OF KING On this day, personally appeared before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, David H. Moseley to me known to be the City Manager of the City of Federal Way, a Washington municipal corporation, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument. Given under my hand and official seal this - day of , 2004. (notary signature) (typed/printed name of notary) Notary Public in and for the State of Washington. My commission expires: K\Sound Transit\TOD Agreement 2004\Pedestrian Amenities Easement Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit Center ,2004. APPROVED AS TO FORM: Patricia A. Richardson, City Attorney APPROVED AT TO FORM: Stephen Sheehy, Legal Counsel STATE OF WASHINGTON COUNTY OF KING ) ) ss. ) On this day personally appeared before me , to me known to be the of Central Puget Sound Regional Transit Authority, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. Given under my hand and official seal this - day of , 2004. (notary signature) (typed/printed name of notary) Notary Public in and for the State of Washington. Mycomrnission expires: Page 26 Exhibit A To Pedestrian Amenities Easement Easement Area Legal Description The south fifteen feet of South 316th Street road right-of-way, approximately 420 lineal feet, from the west curb line of 23rd A venue South to the east curb line of 21 51 A venue South in Federal Way, King County, Washington. Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit Center Page 27 Exhibit B To Pedestrian Amenities Easement Transit Center Legal Description Existing Legal Description KING COUNTY SHORT PLAT 1802027 Tax Parcel No. 092104-9021 Lot 1 of King County Short Plat No. 182027, according to short plat recorded March 14, 1984 under Recording No. 8403140752, in King County, Washington. Tax Parcel No. 092104-9057 Lot 2 of King County Short Plat No. 182027, according to short plat recorded March 14, 1984 under Recording No. 8403140752, in King County, Washington. KING COUNTY SHORT PLAT 480019R Tax Parcel No. 92104-9176 Lot 2 of King County Short Plat No. 480019R, according to short plat recorded April 28, 1980 under Recording No. 8004280455, in King County, Washington; Except that portion conveyed to the City of Federal Way, for road, by deed recorded under Recording No. 20001215001690. Except that portion conveyed to the City of Federal Way, a Washington Municipal Corporation, under statutory warranty deed recorded December 18,2002, under Recording No. 20021218002306. Tax Parcel No. 092104-9298 Lot 3 of King County Short Plat No. 480019R, according to short plat recorded April 28, 1980 under Recording No. 8004280455, in King County, Washington; Except that portion conveyed to the City of Federal Way by deeded recorded under Recording No. 20010323001260. Tax Parcel No. 092104-9299 Lot A of King County Short Plat No. 480019R, according to short plat recorded April 28, 1980 under Recording No. 8004280455, in King County, Washington. Except that portion conveyed to the City of Federal Way by deed recorded under Recording No. 20000807001155. Also except that portion conveyed to the City of Federal Way by deed recorded under Recording No. 20020724000972. Agreement Between Sound Transit and Federal Way For Future TOD at Federal Way Transit Center Page 28 Exhibit C To Pedestrian Amenities Easement Pedestrian Amenities Sketch Agreement Between Sound Transit and Federal Way For Future TaD at Federal Way Transit Center Page 29 SW 174. SEC. 9, 1WP 21 N. AGE 4E, WJJ.. 19+00 20foo -.--..-.. N 8817'46" W ~ æ UJ ~ II!I! i : I- i " ! I; ! ~'I~ . . i ~.. ;I~ '. I - . ~I' " .. . .. ~I! S. 316th STREET 18+00 -1'1-1~-i'I--'-III"'-II--III-"II---11-1t ; ---'~ -~.~~,~~,< ~ "HISC(Æl~ I I ~r! lU 1iÐOI>"'- . i " i '.... "'" Do_" """ -"'" HS -'. 0'" '...... .. ------ 21+ Oir -------- - ------ . -......-.......---. . ~ . S- 316th STRe:~___.._.~,¡, 22+00-" N 881¥' 4r~~ I M..-_... '" =::;-:; .~_._"' ,.... ..- T SOUNDTRANsrr " . 1001 SOUND TRANSIT REGIONAL EXPRESS I FW-CSF-OO rw-csr-oo... FEDERAL WAY TRANSIT CENTER ....... S. 316" STR""TSCAP" "XHI8IT OTA J>~L '. '00< MEETING DATE: August 24, 2004 ITEM# -~cC! ) CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: North Lake Annexation Resolution Establishing Election Date CATEGORY: BUDGET IMP ACT: D CONSENT [:g RESOLUTION rg CITY COUNCIL BUSINESS D ORDINANCE 0 PUBLIC HEARING D OTHER Amount Budgeted: Expenditure Amt.: Contingency Req'd: $0 $0 $0 ATTACHMENTS: Draft North Lake Resolution Establishing Election Date, with Exhibit "A", Legal Description, Exhibit "B", Map and Exhibit "C", Approval Letter from Boundary Review Board SUMMARYIBACKGROUND: In May 2004, City Council adopted resolution 04-413, which authorized staff to submit the North Lake annexation proposal to the King County Boundary Review Board. On July 28, 2004 the City received notice that the Board approved the North Lake annexation proposal. This means the board did not invoke jurisdiction and the annexation proposal is now approved to proceed to election. Pursuant to Chapter 35A.14.050 RCW, City Council must request that the King County Council set a date for the annexation election. The attached resolution establishes an election date of November 2,2004 for the North Lake annexation election. Provided the election is successful, following certification of election results, the City Council may adopt an annexation ordinance with an effective date set at Council discretion. CITY COUNCIL COMMITTEE RECOMMENDATION: The LUTC voted to direct staff to proceed with the North Lake annexations in 2004, following adoption of the P AA Subarea Plan, which was adopted July 20th, 2004. ..................................................... PROPOSED MOTION: "I move approval of the resolution requesting the King County Council to set an election date for the North Lake annexation proposal to take place on November 2, 2004" ..................--............. .~.... CITY MANAGER APPROVAL: (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: 0 APPROVED 0 DENIED 0 TABLED/DEFERRED/NO ACTION D MOVED TO SECOND READING (ordinances only) REVISED - 05/10/2001 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # DRAFT o/I6/ô ; RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, SETTING A DATE OF NOVEMBER 2,2004 FOR THE ANNEXATION ELECTION, OF CONTIGUOUS UNINCORPORATED TERRITORY TO THE CITY OF FEDERAL WAY LYING IN AN AREA EAST OF EXISTING CITY OF FEDERAL WAY CITY LIMITS, SOUTH OF S. 320TH ST., WEST OF PEASLEY CANYON RD S. AND NORTH OF HIGHWAY 18 AND EXISTING CITY OF FEDERAL WAY CITY LIMITS REFERENCED AS THE NORTH LAKE ANNEXATION AREA. WHEREAS, the City Council of the City of Federal Way, Washington, has detennined that it would be in the best interest and general welfare of the City of Federal Way and the North Lake area to annex certain property east of existing City of Federal Way City Limits, south ofS. 320th St., west of Peasley Canyon Rd. S., and north of Highway 18 and existing City of Federal Way City limits, referenced as the North Lake annexation area and legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth; and WHEREAS, the Growth Management Act and the King County Countywide Planning Policies encourage transition of unincorporated urban and urbanizing areas within Potential Annexation Areas from county governance to city governance; and WHEREAS, the North Lake area is within the City of Federal Way's Potential Annexation Area; and WHEREAS, financial analysis of revenues and costs for the North Lake territory indicate a net annual surplus to the City of Federal Way in the amount of$7,543; and WHEREAS, the City Council Land Use/Transportation Committee considered the North Lake annexation at the meeting of October 20, 2003 and at the meeting of November 3, 2003 recommended to City Council to proceed forward with annexations in 2004; and Res. #_Page 1 WHEREAS, the City Council was briefed regarding the North Lake annexation on December 2, 2003 and directed staff to proceed forward with this annexation in 2004; and WHEREAS, the City Council passed resolution 04-4l3 on May 18, 2004 authorizing submittal of the North Lake annexation proposal to the King County Boundary Review Board; and WHEREAS, the City received a notice letter, Exhibit "B", on July 28, 2004 indicating that the King County Boundary Review Board approved the North Lake annexation proposal; and WHEREAS, the City Council has adopted the Federal Way Potential Annexation Area Subarea Plan, as a chapter of the City's Comprehensive Plan which adopted and establishes Comprehensive Plan designations and zoning classifications for the proposed annexation area as well as general land uSe policies; and Now THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY RESOL YES AS FOLLOWS: Section 1. Public Interest. The best interests and general welfare of the City of Federal Way and the North Lake area would be served by the annexation of certain contiguous unincorporated territory lying in the area east of existing City of Federal Way City Limits, south of S. 320th St., west of Peasley Canyon Rd. S., ~d north of Highway 18 and existing City of Federal Way City limits, referenced as the North Lake annexation area legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth. Section 2. Election. The City Council hereby requests the King County Council set an election date of November 2,2004 for an election to be held pursuant to Chapter 35A.14 RCW to submit to the voters of the aforesaid territory the proposal for annexation. Res. # - Page 2 Section 3. Taxation and Indebtedness. There shall be submitted to the electorate of the territory sought to be annexed a proposition that all property located within the territory to be annexed shall, upon annexation, be assessed and taxed at the same rate and on the same basis as property that is located within the City of Federal Way is assessed anc~ taxed to pay for all or any portion of the outstanding indebtedness ofthe City of Federal Way, which indebtedness has been approved by the voters, contracted for, or incurred prior to or existing at, the date of annexation. Section 4. Zoning. All property located within the territory to be annexed shall, simultaneous with the annexation, have imposed the City of Federal Way Comprehensive Plan designations and zoning classifications, prepared under RCW 35A.14.330, and depicted in the Potential Annexation Area Chapter of the Federal Way Comprehensive Plan, as adopted by ordinance number 04-460. Section 5. Severability. If any section, sentence, clause, or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this resolution. Section 6. Ratification. Any act consistent with the authority, and prior to the effective date, of the resolution is hereby ratified and affirmed. . Section 7. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. Res. # - Page 3 RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this day of 2004. CITY OF FEDERAL WAY Mayor, Dean McColgan ATTEST: City Clerk, N. Christine Green, CMC APPROVED AS TO FORM: City Attorney, Patricia A. Richardson FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION No: - Res. #- Page 4 \\. // EXBIB1T . '~A CITY OF FEDERAL WAY NORTH LAKE ANNEXATION AREA LEGAL D ESCRIPTI 0 N That portion of Sections 15, 16,21, and 22, Township 21 North, Range 4 East, Willamette Meridian, situate in King County, State of Washington, more particularly described as follows: Beginning at the intersection of the Southerly margin of South 320th Street and the East line of the Northwest quarter of the Northwest quarter of said Section 15; Thence along portions of the Federal Way City Limits as annexed by Ordinance No. 94-220 the following described twenty four (24) courses: Thence Southerly along said East line to the Southeast comer of said subdivision; Thence Westerly along the South line ofthe Northwest quarter ofthe Northwest quarter of said Section 15 to the Northwesterly comer of Tract 8 of the unrecorded plat of Golden's North Lake Tracts, said Tract being described in the Deed recorded under Recording Number 20011107002457, records of King County, Washington; Thence Southerly along the Westerly line of Tracts 8 through 3, inclusive, of said unrecorded Plat to the line of ordinary high water of North Lake, said Westerly line of Tracts 8 through 3 being described in Deeds recorded under Recording Numbers 20011107002457, 20030326002143, and 8706250051 and as shown on King County Short Plats recorded under Recording Numbers 8404190784 and 8507300584, records of King County, Washington; Thence Southwesterly, Southerly, and Southeasterly along said line of ordinary high water to the Northerly line of the plat of Louise's North Lake Tracts as filed in Volume 40 of Plats, page 23, records of King County, Washington; Thence Southeasterly along said Northerly line to the Northeasterly comer of Lot 5 of said Plat; Thence Southerly along the Easterly line of said Lot 5 to the Northerly margin of South 337th Street; Thence Easterly along said Northerly margin to the Northwesterly margin of 33rd Place South; Thence Northeasterly along said Northwesterly margin to the Westerly extension of the Northerly line of Lot 27 of the unrecorded plat of Richard's North Lake Acres, said Lot 27 being described in the Deed recorded under Recording Number 9811032369, records of King County, Washington; Thence Easterly along said Westerly extension and the Northerly line of said Lot 27 to the Northeasterly comer thereof, said Lot 27 being described in said Deed recorded under Recording Number 98ll032369; Thence Northeasterly along the Westerly line of Lots 21, 22, and 23 of said unrecorded plat to the Northwesterly comer of said Lot 2l, said Lots 21, 22, and 23 being also described in said Deed recorded under Recording Number 9811032369; Thence Easterly (South 88° 56' 13" East) along the Northerly line of said Lot 21 also being the North line of the Northwest quarter of Section 22, Township 21 North, Range 4 East, Willamette Meridian, to a point 1319.91 feet ITom the North quarter comer of said Section 22; Thence North Ol °04' 58" East, a distance of 497.62 feet, to the North Line of Tract 117 of the unrecorded Plat of North Lake Shore Lands, said Tract 117 being described in Deed recorded under Recording Number 9605210333, records of King County, Washington; Thence South 87° 56' 28" East, along said North line, a distance of 8.17 feet; Thence North 02°03' 32" East, along the West line of Tract 89 of said unrecorded Plat of North Lake Shore Lands, a distance of21O.00 feet, to the South margin ofthe County Road, as conveyed to King County by Deed recorded under recording Number 2596483, known as Roy B. Misener county road (South 334th Street), said Tract 89 being described in said Deed recorded under Recording Number 9605210333; Thence South 87° 56' 28" East, along said South margin, a distance of 16.72 feet, to a point of curvature of said South margin; Thence along said curve to the left, having a radius of 348.46 feet, through a central angle of 60° 00' 38", an arc length of 364.97 feet to the intersection with the East line of Tract 36 of said unrecorded Plat of North Lake Shore Lands, said Tract 36 being described in said Deed recorded under Recording Number 96052l0333; Thence South 00° 58' 32" West along the East line of said Tract 36, a distance of l24.31 feet, to the southerly comer common to Tracts 36 and 37, said Tract 36 and 37 being described in said Deed recorded under Recording Number 9605210333; Thence North 87° 56' 28" West, along the South line of said Tract 37, a distance of 13.01 feet to the intersection with the Northwesterly extension of the line common to Tracts 92 and 93 of said unrecorded Plat of North Lake Shore Lands, said Tract 92 and 93 being described in said Deed recorded under Recording Number 9605210333; Thence South 26° 55' 03" East along said extension and lot line, a distance of297.20 feet to the North line of Tract l17 of said unrecorded Plat of North Lake Shore Lands, said Tract ll7 being described in said Deed recorded under Recording Number 9605210333; Thence South 87°56' 28" East, along said North line, a distance of 130.00 feet, to the West line of Tract 116 of said unrecorded Plat of North Lake Shore Lands, said Tract ll6 being described in said Deed recorded under Recording Number 96052l 0333; Thence North Ol °04' 58" East, along said West line, a distance 169.1l feet, to the Northwest corner of said Tract 116; Thence South 88° 59' l6" East along the North line of said Tract 116 and its Easterly extension, a distance of 730.00 feet, to the east line of the Southwest quarter of Section 15, Township 21 North, Range 4 East, Willamette Meridian; Thence South 01 °04' 58" West along said East line, a distance of657.12 feet to the Quarter corner common to Sections 15 and 22, Township 2l North, Range 4 East, Willamette Meridian; Thence Southerly along the North-South centerline of said Section 22 to the Northerly margin of State Route 18, said point being the end of said twenty four (24) courses; Thence Northeasterly along the Northwesterly margin of State Route 18 to the intersection of the Westerly margin of South Peasley Canyon Road; Thence Northwesterly and Westerly along said Westerly margin of South Peasley Canyon Road and its extension thereof to the South margin of South 320th Street; Thence Westerly along said South margin of South 320th Street to the point of beginning. Legal Description Prepared By: Earth Tech, mc 720 South 333rd Street, Suite 200 Federal Way, Washington 98003 253-838-6202 Timothy W. Wickham, P.LS.21601 City of Federal Way Proposed North lake Annexation Legend: 0 Annexation Area Boundary ~ Other Unincorporated Area IIJJ Incorporated Area 6, 250 500 N ---1 Feet I !co: Scale: 0 Map Date: May 2004 City of Federal Way, 33530 First Way S, Federal Way, WA 98003 (253) 661-4000 www.cityoffederalway.com Please Note: This map is intended for use as a graphical representation ONLY. The City of Federal Way makes no warranty as to its accuracy. A Federal Way Ileirke/cd/paa/Nlake.mxd I U ", // ...... EXBIBrl' "~. COMMuNITYAECEIVEO BY DEVelOPMENT DEPARTMENT JUL 2 8 2.QO4 Washington State Boundary Review lioard tfü y For King County Yesler Building, Room-Et}; 400 Yesler Way, Seattle, WA 98104 Phone: (206) 296-6800 . Fax: (206) 296-6803 . http://www.metrokc.gov/annexatíons ,J /, of July 26, 2004 City of Federal Way Attn: Isaac Conlen, Associate Planner 33530 1st Way Federal \Vay, VIA 98063-9718 RE: CLOSING LETTER FOR COMPLETED ACTION - File No. 2173 - City of Federal- Northlake Annexation Dear Mr. Conlen: We are writing to advise you that the Boundary Review Board has now completed the required Evaluation, as specified in RCW 36.93, for the above-referenced proposed action (filed with the Board effective June 8, 2004. The Boundary Review Board also provided a 45--day public review period June 8 - July 23, 2004, as prescribed by RCW 36.93. The Board received no request for a public hearing of this proposed action during the public review period. The Boundary Review Board, therefore, hereby deems this proposed action approved effective July 23, 2004. Final approval of the proposed action is also subject to the following actions, where applicable: 1. Sewer and Water District actions and some other actions are also subject to approval by the Metropolitan King County Council. If the Council makes changes to the proposal, the Board may then be required to hold a public hearing. 2. Filing with King County of franchise application(s), as required, accompanied by a copy of this letter. 3. Filing with King County of permit application(s), as required, accompanied by a copy of this letter. 4. Fulfillment of all other statutory requirements and/or procedures specified in your Notice of Intention. # Page two continued, July 26, 2004 Form 13 5. Notification in writing of your intended effective date of annexation. This notification should be provided as early as possible. Please send this information to Michael Thomas, Office of Management and Budget, 516 Third Avenue, Room 420, Seattle, Washington 98104, and 6. Filing with King County Council of: (1) one certified copy of final resolution or ordinance accomplishing this proposed action; and (2) a copy of this letter. This document should be filed with the Clerk of the Council (Attn: Anne Noris), King County Courthouse, Room 1025, Seattle, Washington 98104 If you have questions or would like additional information, please contact our office at 206-296- 6800. Sincerely, ~~ Lenora Blauman Executive Secretary cc: Anne Noris, Clerk of the Council Harry Sanders, Records and Elections Division Diane Murdock, Department of Assessment Lydia Reynolds-Jones, Manager, Project Support Services King County "911" Program Paul Reitenbach, Department of Development & Environmental Services Michael Thomas, Office of Management and Budget MEETING DATE: August 24, 2004 ITEM# ~(J) CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Redondo East Annexation Resolution Establishing Election Date CATEGORY: BUDGET IMP ACT: D CONSENT r8:J RESOLUTION ~ CITY COUNCIL BUSINESS D ORDINANCE D PUBLIC HEARING D OTHER Amount Budgeted: Expenditure Amt.: Contingency Req'd: $0 $0 $0 .............................................. .............................................--................. ................................................................-....... ATTACHMENTS: Draft Redondo East Resolution Establishing Election Date, with Exhibit "A", Legal Description, Exhibit "B", Map and Exhibit "C", Approval Letter from Boundary Review Board ...................-......... SUMMARYIBACKGROUND: In May 2004, City Council adopted resolution 04-414, which authorized staff to submit the Redondo East annexation proposal to the King County Boundary Review Board. On July 28, 2004 the City received notice that the Board approved the Redondo East annexation proposal. This means the board did not invoke jurisdiction and the annexation proposal is now approved to proceed to election. Pursuant to Chapter 35A.14.050 RCW, City Council must request that the King County Council set a date for the annexation election. The attached resolution establishes an election date of November 2, 2004 for the Redondo East annexation election. Provided the election is successful, following certification of election results, the City Council may adopt an annexation ordinance with an effective date set at Council discretion. ....................................................................... ......................................... CITY COUNCIL COMMITTEE RECOMMENDATION: The LUTC voted to direct staff to proceed with the Redondo East annexations in 2004, following adoption of the PAA Subarea Plan, which was adopted July 20th, 2004. .......--................................ ................................................................................. ..................-.........-..... PROPOSED MOTION: "I move approval of the resolution requesting the King County Council to set an election date for the Redondo East annexation proposal to take place on November 2, 2004" CITY MANAGER APPROVAL: ...~.._-- (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: D APPROVED D DENIED D TABLED/DEFERRED/NO ACTION 0 MOVED TO SECOND READING (ordinances only) REVISED - 05/10/2001 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # DRAFT rll6/ó t/ RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, SETTING A DATE OF NOVEMBER 2,2004 FOR THE ANNEXATION ELECTION, OF CONTIGUOUS UNINCORPORATED TERRITORY TO THE CITY OF FEDERAL WAY LYING IN AN AREA EAST AND SOUTH OF EXISTING CITY OF DES MOINES CITY LIMITS, WEST OF EXISTING CITY OF FEDERAL WAY CITY LIMITS AND NORTH OF S. 284TH ST. REFERENCED AS THE REDONDO EAST ANNEXATION AREA. WHEREAS, the City Council of the City of Federal Way, Washington, has determined that it would be in the best interest and general welfare of the City of Federal Way and the Redondo East area to annex certain property east and south of existing City of Des Moines city limits, west of existing City of Federal Way city limits, and north of S. 284th St., referenced as the Redondo East annexation area and legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth; and WHEREAS, the Growth Management Act and the King County Countywide Planning Policies encourage transition of unincorporated urban and urbanizing areas within Potential Annexation Areas from county governance to city governance; and WHEREAS, the Redondo East area is within the City of Federal Way's Potential Annexation Area; and WHEREAS, financial analysis of revenues and costs for the Redondo East territory indicate a net annual surplus to the City of Federal Way in the amount of$6,990; and WHEREAS, the City Council Land Use/Transportation Committee considered the Redondo East annexation at the meeting of October 20, 2003 and at the meeting of November 3, 2003 recommended to City Council to proceed forward with annexations in 2004; and Res.#_Page 1 WHEREAS, the City Council was briefed regarding the Redondo East annexation on December 2,2003 and directed staff to proceed forward with this annexation in 2004; and WHEREAS, the City Council passed resolution 04-414 on May 18, 2004 authorizing submittal of the Redondo East annexation proposal to the King County Boundary Review Board; and WHEREAS, the City received a notice letter, Exhibit "B", on July 28,2004 indicating that the King County Boundary Review Board approved the Redondo East annexation proposal; and WHEREAS, the City Council has adopted the Federal Way Potential Annexation Area Subarea Plan, as a chapter of the City's Comprehensive Plan which adopted and establishes Comprehensive Plan designations and zoning classifications for the proposed annexation area as well as general land use policies; and Now THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY RESOLVES AS FOLLOWS: Section 1. Public Interest. The best interests and general welfare of the City of Federal Way and the Redondo East area would be served by the annexation of certain contiguous unincorporated territory lying in the area east and south of existing City of Des Moines city limits, west of existing City of Federal Way city limits, and north of S. 284th St., referenced as the Redondo East annexation area and legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth Section 2. Election. The City Council hereby requests the King County Council set an election date of November 2, 2004 for an election to be held pursuant to Chapter 35A.14 RCW to submit to the voters of the aforesaid territory the proposal for annexation. Res. # - Page 2 Section 3. Taxation and Indebtedness. There shall be submitted to the electorate of the territory sought to be annexed a proposition that all property located within the territory to be annexed shall, upon annexation, be assessed and taxed at the same rate and on the same basis as property that is located within the City of Federal Way is assessed and taxed to pay for all or any portion of the outstanding indebtedness ofthe City of Federal Way, which indebtedness has been approved by the voters, contracted for, or incurred prior to or existing at, the date of annexation. Section 4. Zoning. All property located within the territory to be annexed shall, simultaneous with the annexation, have imposed the City of Federal Way Comprehensive Plan designations and zoning classifications, prepared under RCW 35A.l4.330, and depicted in the Potential Annexation Area Chapter of the Federal Way Comprehensive Plan, as adopted by ordinance number 04-460. Section 5. Severability. If any section, sente~ce, clause, or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this resolution. Section 6. Ratification. Any act consistent with the authority, and prior to the effective date, of the resolution is hereby ratified and affinned. Section 7. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. Res. #_Page 3 RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this day of 2004. A TrEST: City Clerk, N. Christine Green, CMC APPROVED AS TO FORM: City Attorney, Patricia A. Richardson FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION No: Res. #_Page4 CITY OF FEDERAL WAY Mayor, Dean McColgan ,\. /I RXHTRIT A CITY OF FEDERALWAY REDONDO EAST ANNEXATION LEGAL D ESCRIPTI 0 N That portion of Sections 32 & 33, Township 22 North, Range 4 East, Willamette Meridian, in King County, Washington; more particularly described as follows: Beginning at the intersection of the South right-of-way line of South 272nd Street and the Easterly right-of-way of State Road No.l, Pacific Highway South, said point also being on the Kent City Limits, Federal Way City Limits, and the south line of the North 38 feet of Section 33, Township 22 North, Range 4 East Willamette Meridian; THENCE westerly along the Kent City limits to the intersection of the South right-of- way line of South 272nd Street and the Westerly right-of-way of State Road No.1, Pacific Highway South, said point being an angle point in the Kent City limits and the Des Moines City Limits; THENCE along portions of the Des Moines City Limits as annexed by Ordinance No. 1166 and No. l270 the following described courses: Westerly along the South right-of-way line of South 272nd Street to the Easterly right-of- way of 16th Avenue South, being in the Northwest quarter of Section 33, Township 22 North, Range 4 East of the Willamette Meridian, in King County, Washington; THENCE Southerly along said Easterly right-of-way to its intersection with the Westerly right-of-way of State Road No.1, Pacific Highway South; THENCE Southerly along said Westerly right-of-way to its intersection with the South right-of-way of South 279th Street; THENCE Westerly along said South right-of-way to the East line of Lot 6, Block 2 ofthe plat of Redondo on the Highway, recorded in Volume 30 of Plats at page 39, said East line also being the West line ofthe Northwest quarter of said Section 33; THENCE Southerly along said East line of Lot 6 to the Southeast comer thereof; THENCE Southerly and Westerly along the proposed Easterly right-of-way line of 15th Avenue South as shown in the illustrative site plan for the proposed development called "Pacific Place" dated 03/1012000, to the North line of the Plat of Applewood, recorded in Volume l42 of Plats at pages 56 through 59; THENCE Westerly along the North line of said Plat of Applewood to the Northwest comer thereof; THENCE Southerly along the West line of said Plat of Applewood and the Southerly extension thereof to the South right-of-way line of South 284th Street and the Federal Way City Limits as established by King County Ordinance 8779; THENCE along said Federal Way City Limits the following described courses: Easterly along said South right-of-way line of South 284th Street to the West line ofthe Southwest quarter of Section 33, Township 22 North, Range 4 East, W .M., King County; THENCE Northerly along said West line to the North line of the South half of said Southwest quarter of Section 33 ; THENCE Easterly along said North line to the East right-of-way line of Pacific Highway South, State Road No.1; THENCE Northerly along said East right-of-way line to the South right-of-way line of South 272nd Street and the point of Beginning. Legal Description Prepared By: Earth Tech, Inc 720 South 333rd Street, Suite 200 Federal Way, Washington 98003 253-838-6202 Timothy W. Wickham, P.L.S.2160l .:, ,. <. ... ,:/<."S':~: \f: .,.Ii :'j'.':~:',:,".J , . City of Federal Way Pro posed Redondo East Annexation Legend: 0 ~ Annexation Area Boundary Other Unincorporated Area Incorporated Area ,\ ¡I' EXHll3 IT B . . .' . , " .' , Vicinity Map . . Scale: !J. N 0 I 250 500 I Feet Map Date: May 2004 City of Federal Way, 33530 First Way S, Federal Way, WA 98003 (253) 661-4000 WNW .cityoffederalway ,com Please Note: This map is intended for use as a graphical representation ONLY. The City of Federal Way makes no warranty as to its accuracy. -... CITY Of "{=~ Federal Way /I en ke/cd/paa/R edondoE" mxd COMMUNITV~~CE/VED BY ELOPMENT DEPARTMENT JUl 2 8 20M Washington State Boundary Review Jjoard '-fú J------ For King County Yesler Building, Room-llo, 400Yesler Way, Seattle, WA 98104 Phone: (206) 296-6800 . Fax: (206) 296-6803 . http://www.metrokc.gov/annexations " If EXHIBIT ~ , , July 26, 2004 City of Federal Way Attn: Isaac Conlen, Associate Planner 33530 lst Way Federal Way, W A 98063-9718 .RE: CLOSING LETTER FOR COMPLETED ACTION - File No. 2174 - City of Federal Way - Redondo East Annexation Dear Mr. Conlen: We are writing to advise you that the Boundary Review Board has now completed the required Evaluation, as specified in RCW 36.93, for the above-referenced proposed action (filed with the Board effective June 8, 2004. The Boundary Review Board also provided a 45-day public review period June 8 - July 23, 2004, as prescribed by RCW 36.93. The Board received no request for a public hearing of this proposed action during the public review period. The Boundary Review Board, therefore, hereby deems this proposed action approved effective July 23, 2004. Final approval of the proposed action is also subject to the following actions, where applicable: 1. Sewer and Water District actions and some other actions are also subject to approval by the Metropolitan King County Council. If the Council makes changes to the proposal, the Board may then be required to hold a public hearing. 2. Filing with King County of franchise application(s), as required, accompanied by a copy of this letter. 3. Filing with King County of permit application(s), as required, accompanied by a copy of this letter. 4. Fulfillment of all other statutory requirements and/or procedures specified in your Notice of Intention. . . " Page two continued, July 26, 2004 Form 13 5. Notification in writing of your intended effective date of annexation. This notification should be provided as early as possible. Please send this information to Michael Thomas, Office of Management and Budget, 516 Third Avenue, Room 420, Seattle, Washington 98104, and 6. Filing with King County Council of: (1) one certified copy of [mal resolution or ordinance accomplishing this proposed action; and (2) a copy of this letter. This document should be filed with the Clerk of the Council (Attn: Anne Noris), King County Courthouse, Room 1025, Seattle, Washington 98104 If you have questions or would like additional information, please contact our office at 206-296- 6800. Sincerely, ~~ Lenora Blauman Executive Secretary cc: Anne Noris, Clerk of the Council Harry Sanders, Records and Elections Division Diane Murdock, Department of Assessment Lydia Reynolds-Jones, Manager, Project Support Services King County "911" Program Paul Reitenbach, Department of Development & Environmental Services Michael Thomas, Office of Management and Budget MEETING DATE: August 24, 2004 ITEM# ~ (;¿) ------------.----.-...-...---.------- CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Parkway Annexation Resolution Establishing Election Date CATEGORY: BUDGET IMPACT: 0 CONSENT 0 ORDINANCE Amount Budgeted: $0 ~ RESOLUTION 0 PUBLIC HEARING Expenditure Amt.: $0 ~ CITY COUNCIL BUSINESS 0 OTHER Contingency Req'd: $0 A TT ACHMENTS: Draft Parkway Resolution Establishing Election Date, with Exhibit "A", Legal Description and Exhibit "B", Map SUMMARYIBACKGROUND: In July 2004, City Council adopted resolution 04-418, which authorized staff to submit the Parkway annexation proposal to the King County Boundary Review Board. On August 20,2004 the Board will meet to discuss the Parkway annexation proposal. We expect to receive notice of the Boards decision on August 23,2004. The Board may either approve the proposal, or invoke jurisdiction and call for a public hearing on the proposal. Staff expects the proposal to be approved, thereby allowing the proposal to proceed to election. Pursuant to Chapter 35A.14.050 RCW, City Council must request that the King County Council set a date for the annexation election. The attached resolution establishes an election date of November 2, 2004 for the Parkway annexation election. Provided the election is successful, following certification of election results, the City Council may adopt an annexation ordinance with an effective date set at Council discretion. CITY COUNCIL COMMITTEE RECOMMENDATION: The LUTC voted to direct staff to proceed with the Parkway annexations in 2004, following adoption of the P AA Subarea Plan, which was adopted July 20th, 2004. -...---..-----.---------.-----.-.------- PROPOSED MOTION: "I move approval of the resolution requesting the King County Council to set an election date for the Parkway annexation proposal to take place on November 2, 2004" CITY MANAGER APPROVAL: ~.................. -------.------------------------.---.------- (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: D APPROVED D DENIED D TABLED/DEFERRED/NO ACTION D MOVED TO SECOND READING (ordinances only) REVISED - 05/10/2001 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # DRAFT ~/b/o f RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, SETTING A DATE OF NOVEMBER 2,2004 FOR THE ANNEXATION ELECTION, OF CONTIGUOUS UNINCORPORATED TERRITORY TO THE CITY OF FEDERAL WAY LYING IN AN AREA EAST OF EXISTING CITY OF FEDERAL WAY CITY LIMITS, SOUTH OF S. 369TH ST. AND 19TH WAY S., WEST OF THE EAST BOUNDARY OF "PARCEL X" IN THE REGENCY RIDGE CONDOMINIUM DEVELOPMENT AND ENCHANTED PARKWAY, AND NORTH OF EXISTING CITY OF MILTON CITY LIMITS AND POTENTIAL ANNEXATION AREA BOUNDAJUES REFERENCED AS THE P~AY ANNEXATION AREA. WHEREAS, the City Council of the City of Federal Way, Washington, has determined that it would be in the best interest and general welfare of the City of Federal Way and the Parkway area to annex certain property east of existing City of Federal Way City limits, south of 369th S1. S. and 19th Way S., west of the east boundary of "Parcel X" in the Regency Ridge Condominium development and Enchanted Parkway and north of existing City of Milton City limits and Potential Annexation Area boundaries, referenced as the Parkway annexation area and legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth; and WHEREAS, the Growth Management Act and the King County Countywide Planning Policies encourage transition of unincorporated urban and urbanizing areas within Potential Annexation Areas from county governance to city governance; and WHEREAS, the Parkway area is within the City of Federal Way's Potential Annexation Area; and WHEREAS, although financial analysis of revenues and costs for the Parkway territory indicate a net annual deficit to the City of Federal Way of approximately $ll ,000, the benefits of Res. #_Page 1 annexing the territory, which include compliance with the GMA, localized regulatory control and localized provision of services, outweigh the financial costs; and WHEREAS, the City Council Land Use/Transportation Committee considered the Parkway annexation at the meeting of September 29, 2003 and at the meeting of November 3, 2003 recommended to City Council to proceed forward with annexations in 2004; and WHEREAS, the City Council was briefed regarding the Parkway annexation on December 2, 2003 and directed staff to proceed forward with this annexation in 2004; and WHEREAS, the City Council passed resolution 04-418 on July 6,2004 authorizing submittal of the Parkway annexation proposal to the King County Boundary Review Board; and WHEREAS, the City received notice on August 23, 2004 that the King County Boundary Review Board approved the Parkway annexation proposal; and WHEREAS, the City Council has adopted the Federal Way Potential Annexation Area Subarea Plan, as a chapter of the City's Comprehensive Plan which adopted and establishes Comprehensive Plan designations and zoning classifications for the proposed annexation area as well as general land use policies; and Now THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY RESOLVES AS FOLLOWS: Section 1. Public Interest. The best interests and general welfare of the City of Federal Way and the Parkway area would be served by the annexation of certain contiguous unincorporated territory lying in the area east of existing City of Federal Way City limits, south of 369th St. S. and 19th Way S., west of the east boundary of "Parcel X" in the Regency Ridge Condominium development and Enchanted Parkway and north of existing City of Milton City limits and Res. # - Page 2 Potential Annexation Area boundaries, referenced as the Parkway annexation area legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth. Section 2. Election. The City Council hereby requests the King County Council set an election date of November 2,2004 for an election to be held pursuant to Chapter 35A.l4 RCW to submit to the voters of the aforesaid territory the proposal for annexation. Section 3. Taxation and Indebtedness. There shall be submitted to the electorate of the territory sought to be annexed a proposition that all property located within the territory to be annexed shall, upon annexation, be assessed and taxed at the same rate and on the same basis as property that is located within the City of Federal Way is assessed and taxed to pay for all or any portion of the outstanding indebtedness of the City of Federal Way, which indebtedness has been approved by the voters, contracted for, or incurred prior to or existing at, the date of annexation. Section 4. Zoning. All property located within the territory to be annexed shall, simultaneous with the annexation, have imposed the City of Federal Way Comprehensive Plan designations and zoning classifications, prepared under RCW 35A.14.330, and depicted in the Potential Annexation Area Chapter of the Federal Way Comprehensive Plan, as adopted by ordinance number 04-460. Section 5. Severability. If any section, sentence, clause, or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase ofthis resolution. Section 6. Ratification. Any act consistent with the authority, and prior to the effective date, of the resolution. is hereby ratified and affirmed. Section 7. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. Res. # - Page 3 RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this day of 2004. CITY OF FEDERAL WAY Mayor, Dean McColgan ATTEST: City Clerk, N. Christine Green, CMC APPROVED AS TO FORM: City Attorney, Patricia A. Richardson FILED WITH THE CITY CLERIC PASSED BY THE CITY COUNCIL: RESOLUTION No: Res. # - Page 4 EXBJBIT \\ ' If /~ CITY OF FEDERAL WAY PARKWAY ANNEXATION AREA LEGAL DESCRIPTION Those portions of the Southwest quarter of Section 28, the Northeast quarter of Section 32, the Northwest and the Southwest quarter of Section 33, Township 21 North, Range 4 East, Willamette Meridian, King County, Washington, more particularly described as follows: BEGINNING at the intersection ofthe southwesterly margin of Enchanted Parkway (AKA SSH No. 5-D / Kit Comer Road South / SR l6l) and the northwesterly margin of 19th Way South, said point being described in City of Federal Way annexation Ordinance 98-311 ; THENCE Southwesterly along said Northwesterly margin to the Northerly margin of South 369th Street as described in City of Federal Way annexation Ordinance 98- 3l1 and as shown on the plat of "Regency Woods Division 2" according to the plat thereof recorded in Volume l56 of Plats, Pages 16 through 20, inclusive, Records of King County, Washington; THENCE Westerly along said Northerly margin and the Westerly extension thereof to the Easterly margin ofSR 5 (AKA PSH No.1) as described in City of Federal Way annexation Ordinance 98-311 and also being the City Limits of Federal Way as defined by King County Code Ordinance No. 8779; THENCE Southerly along said Easterly margin as defined by King County Code Ordinance No. 8779 to the intersection ofthe North line ofthe South 30 feet ofthe Southeast quarter of the Southwest quarter of the Northeast quarter of said Section 32; THENCE Easterly along said North line to the Easterly margin of Milton Road South and the City Limits of Milton as described in City of Milton Ordinance No. 1241; THENCE continuing along said North line and the North line of the South 30 feet ofthe Southwest quarter of the Southeast quarter of the Northeast quarter of said Section 32, said line being the City Limits of Milton, to the West line of the Southeast quarter ofthe Southeast quarter of the Northeast quarter of said Section 32; THENCE along the North line ofthe South 30 feet of the Southeast quarter of the Southeast quarter of the Northeast quarter of said Section 32 to the East line of said Northeast quarter, said East line also being the West line of the Plat of "Regency Woods Division l" according to the plat thereof recorded in Volume 154 of Plats, Pages 8l through 97, inclusive, Records of King County, Washington; THENCE Southerly along said West line of the Plat of "Regency Woods Division 1" to the Quarter comer common to Sections 32 and 33; THENCE Southerly along the West line of the Northwest quarter ofthe Southwest quarter of said Section 33, said line also being the West line ofthe Plat of "Regency Woods Division 1 ", to the Southwest corner of said Plat; THENCE Easterly along the South line of the Plat of "Regency Woods Division l" to the Northwesterly margin of the Puget Sound Electric Company Interurban Railway Right of Way as shown on said Plat; THENCE Northeasterly, Northerly, Easterly, and Southeasterly along said Puget Sound Electric Company Interurban Railw<!.y Right of Way to the Southerly corner of Parcel X of the Plat of "Regency Woods Division 1", said corner also being the Southwest corner of Tract A ofthe Plat of "Kings grove" according to the plat thereof recorded in Volume 118 of Plats, Pages 55 through 61, inclusive, Records of King County, Washington; THENCE Northerly along the West line of the Plat of "Kingsgrove" to the Northwest corner of said Plat; THENCE Easterly along the North line of the Plat of "Kingsgrove" to the Southwest corner of Tract G of the Plat of "Stone Creek" according to the plat thereof recorded in Volume 211 of Plats, Pages 93 through 98, inclusive, Records of King County, Washington; THENCE Northerly along the West line ofthe Plat of "Stone Creek" to the Northwest corner of said Plat; THENCE Easterly along the North line of the Plat of "Stone Creek" to the East line of the Northwest Quarter of Section 33;. THENCE Northerly along the East line of said Northwest Quarter to the Southwesterly margin of Enchanted Parkway (AKA SSH No. 5-D / Kit Corner Road South / SR l61); THENCE Northwesterly along said Southwesterly margin of Enchanted Parkway to the Point Of Beg inning. Legal Description Prepared By: Earth Tech, Inc 720 South 333rd Street, Suite 200 Federal Way, Washington 98003 253-838-6202 Timothy W. Wickham, P.LS.21601 :: Regency Ridge CondominiumS, o~ "",,', :=~J,j:'~,."T.T'.'C]'I~I,'~ì,], l.r~T~LT~L'1 l'f ~~. ,,1-"'11 /1'î)"~~ ,~ ' ",', ~,., " /' I ' , . ,\" ~/'ò/ .J..,"~f:~"""" "'~,:-....".."L"-"".""I,t;;l-,I,'(,':',"'/"'",1",',,\,',',,':, ,',C, ".',I".,.I,'~",I-", "'---,,""IÌi-.," ~ ~~~~\\ // .\.~~'i. 'ifl~/~~ [{~Tr':~ í~_~'!-~?>[j -- 'ê," / \/ '\,"'",,',"" ",f: 1,.,:"1-,.I',I'",'.'h.,-,,,-,,-j~ \: '\ \ \---'--;--~-' ,,~, --::--..~ L'H L_'.n' ,,1. ~L:":,<,.,-~ r 1\ '\ \" KI h' Unin,corporateC!,h1 ! "\ ose, K' C t""", , ~\ lIIahee mg oun y \"1 \ ,..,/ 'o'¿'\ " \ A\' , ~/ ,,1".0'\' , ~ .. )'/<'" ì ~\//'.- ., - -- , , \ ' \~.. /'1""""""'-"" ',-.",'s.EOTH ST ~\ "", '. \,! ";'h, '. \ Proposed Parkway Annexation ( c ~ ~ ¡ T (i Q " , u ë / ",<"'-, ',', .. . -----, ," .. City of Federal Way Proposed Parkway Annexation Map Date: July 2004 City of Federal Way, 33530 First Way S, Federal Way, WA 98003 (253) 661.~OOO 0 250 500 ] Feet ClTV OF Federaì Way MEETING DATE: August 24, 2004 ITEM#Jt£f) CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Property Tax Lid Lift CATEGORY: BUDGET IMPACT: D CONSENT } R~~OLUTION ~ CITY COUNCIL BUSINESS D ORDINANCE D PUBLIC HEARING D OTHER Amount Budgeted: Expenditure Amt.: Contingency Req'd: $ $ $ ............................. ATTACHMENTS: August 3rd Presentation Outline and Staff Memo. ...........................................................................-.................. .............................. SUMMARY /BACKGROUND: Under a statuary tax rate limit, the amount of property tax a taxing jurisdiction can collect is restricted by a "Limiting Factor," or the "Lid", from which its annual collection can increase over the previous year. Prior to the passage of Referendum 47 in 1997 and 1-747 in 2002, the Lid was 6% each year. Referendum 47 reduced it to the lower of 2% or inflation and 1-747 lowered the lid further to the lesser of 1 % or inflation. The rate of inflation has generally been higher than 1 %; the effective limit for regular property tax growth is 1 % per year. This reduces both the purchasing power of the tax revenue and services a jurisdiction can provide over time. In order for property tax revenues to grow faster than 1 % per year, keeping pace with inflation, the City will need voters' approval. ......-.--................ .................................- Another reason a number of communities are considering the Lid Lift this year is that the proposed 1-864 exempts voter-approved property taxes from the proposed 25% rollback. According to the Department of Revenue, a Lid Lift election would qualify for the exemption. The initiative did not make to the ballot this year, the threat is no longer imminent and most jurisdictions are taking a wait and see posture. Property taxes pay for 27% of our General/Street services. Stabilizing this important revenue is critical to the City's ability to maintain essential services. ................................... CITY COUNCIL COMMITTEE RECOMMENDATION: N/A ......................-.......... PROPOSED MOTION: "Direct staff to monitor future development(s) that may affect City property tax revenues and bring the Lid Lift or other appropriate options back for consideration." Alternative Motion: "Direct staff to draft resolutio for Council to consider at the September 7 Council meeting. " .................................................................................................................................................................................... ............... ...................... ........................................................................................................................................................................................... .................... CITY MANAGER APPROVAL: (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: D APPROVED D DENIED D TABLED/DEFERRED/NO ACTION D MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 Property Tax Levy Lid Lift Options (}f /P' f(J(6 t kt ~¿ " . . Property Tax Limitations . The statutory tax rate limit, per $1000 Assessed Value (A V) Local Tax $3.60 - Fire Dist (1.50) - Library Dist (.50) City Portion $1.60 Current City Levy Rate: $1.30/$1000 AV . Annual growth limit (Limiting Factor or Lid): - Before 1997 6% each year - The lower of 2% or inflation per year (Ref. 47, 1997) - The lower of 1 % or inflation per year (1-747. 2002) - Inflation has been more than 1 %, therefore the effective property tax growth limit has been 1 %. - A Lid Lift is to allow the property tax to grow more than the limiting factor of 1 % or inflation 1 , , City Portion of Property Tax Levy Rate per $1,000 AV $2.00 $1.56. $1.55 $1.50 .-.. $1.00 $0.50 $- 1997 1998 1999 2000 2001 2002 2003 2004 Reasons to Consider Lid Lift . Protect property tax from 25% roll back proposed by 1-864 . 1 % growth rate does not keep pace with inflation, over time it means - Less services can be afforded - More reliance on sales tax 2 " Lid Lift Options/Considerations . Options: - Single-year lid lift - Multi-year lid lift . Considerations: - Cost effectives - F utu re tax rates - Non-supplanting requirement Election Timing Options/Considerations . Cost of election. . Community support. . Potential future initiatives. . Preparation time. . Competing ballot measures. 3 Decision Options . Propose a lid lift? . Single or multiple year lid lift? . 2004 or 2005 election? . Special, primary, or general election? 4 CITY OF FEDERAL WAY MEMORANDUM Date: To: Via: From: Subject: August 3, 2004 Federal Way City Council David H. Moseley, City Manager Iwen Wang, Management Services Director Potential Levy Lid Lift Proposition ~ BACKGROUND: The proposed Initiative 864 raised substantial concerns among governmental entities and communities around the state, consequently, a number of them are considering or placing lid-lift propositions on the ballot this fall to protect their property tax base. The purpose of this memo is to provide Council with information about the different lid-lift options should the Council wish to consider it. STATUTE RATE LIMIT AND THE LIMITING FACTOR (THE LID) ON COLLECTIONS: Government entities levying property tax must comply with two separate limitations. The first is the overall tax rate limitation established by the state constitution and further defined by the state statute. For the City of Federal Way, because we are sharing the local levy with the Fire District and the Library District, the limit is around $1.60 per $1000 A V. To exceed this statutory rate limit, a super majority voter approval, with 40% voter turnout at its previous general election is required. This excess levy is typically used for capital purposes. If it is for maintenance and operation purpose, it can only be for 1 year. The City currently levies $1.30 per $1000 A V. Under this statuary tax rate limit, the amount a taxing jurisdiction can collect is further restricted by a "Limiting Factor," or the "Lid", ITom which its annual collection can increase from the year before. Prior to the passage of Referendum 47 in 1997 and 1-747 in 2002, the Lid was 6% each year. Referendum 47 reduced it to the lower of 2% or inflation, and 1-747 lowered the lid further to the lesser of 1% or inflation. The inflation is defined as the Implicit Price Deflator, a national index that measures consumer spending which mayor may not be consistent with local inflation. With the rate of inflation generally higher than I %, the effective limit for regular property tax growth is 1 % per year. REASON TO CONSIDER LID LIFT: One of the reasons a number of communities are considering the Lid Lift is because the proposed Initiative 864 exempts voter approved property t~x from the proposed 25% roll back. And according to the Department of Revenue, a Lid Lift election would qualify for the exemption. The other reason a number of communities are considering the Lid Lift vote is because the 1 % revenue growth limitation is lower than the rate of inflation, which reduces the services a jurisdiction can provide over time. Continuing the trend in the long term, local government's reliance on sales tax will be even greater than they are today. Without banked capacity, the City will need voters' approval to have property tax keep pace with inflation. I. LID-LIFT CONSIDERATIONS/OPTIONS: Prior to 2003, jurisdictions can only ask voters to raise the Limiting Factor for one year with each election. With the 2003 law change, jurisdictions can now ask voters to raise the lid multiple times for consecutive periods up to 6 years. There area number of factors to consider in determining which option is appropriate for Federal Way. k:\fin\O506budget\election\1idliftl.doc 5 1. Cost Effectiveness: The single year lid lift allows the limiting factor be lifted for one year. This higher amount of collection becomes the base for calculating future property taxes unless the ballot title specifies otherwise. The multi-year lid lift allows the levy be increased more than the limiting factor for up to six times in six consecutive years. The ballot title must specify whether this additional collection will become the base in calculating future taxes, otherwise the base will be reverted back to the level without the lid lift. Obviously, the multi-year lid lift will be more cost effective. To accomplish the same results with single-year lid lift, it will require six elections. 2. Future Tax Rates: Under the single-year lid lift, the tax rate is set for one-year, and after the first year, the Limiting Factor goes back to the lower of 1 % or inflation. Therefore, to maintain the tax rate at a certain level, it will require a vote every year. This is what the Fire Department is doing to maintain their tax rate at $1.50 per $1000 A V. For a multi-year lid lift, the City can set the tax rate for the first year, and also specify a factor the property tax can grow for the subsequent five years. The closer the factor is to the growth of the real estate market the closer the tax rate will be maintained. A conservative approach would be to use general inflation as the growth factor. This will allow property tax to maintain its purchasing power and at the same time there will be less chance the tax rate will exceed the current level. 3. Non-supplanting requirement: The new multi-year lid lift option comes with a requirement that the funds generated from the lid lift shall not supplant existing funds used for the stated purposes. Like most new laws, it is uncertain how the provision would be interpreted. For example, multi-year lid lift would be a great revenue source to supplement the street maintenance funding, which lost $750k a year to 1- 776. But if the City does not want to reduce the services and wants instead to use capital utility tax to make up the difference temporarily until such time the Lid Lift is approved by the voters, the non-supplanting requirement raises the question if the City could return the utility tax back to capital purpose upon voter approval of the Lid Lift. Because the answer to this question is not clear, there could be limitations to the appropriateness of a multi-year lid lift under the assumed circumstances. II. ELECTION TIMING CONSIDERATION/OPTIONS: If the decision is to put forward a Lid Lift proposition, the next question then is the timing of the election. A number of factors should be considered in determining the timing of the election. 1. Cost: Elections are expensive, but not all elections cost the same. . The drivers of election costs, in order of their significance, are the ballot printing/mailing, election staffing, and the cost of printing voter pamphlets. Costs for general and primary elections are higher, particularly in the presidential years, because the substantially higher voter turnouts require more ballots to be printed and also more staff to conduct the elections. The cost for a special election is typically less because only limited ballots will be printed and fewer staff will be required. In addition to the cost of the election itself, the City's cost also depends on the number of jurisdictions participating in an election and sharing the costs. During the year of local office elections, there are nearly 310 taxing jurisdictions in King County to share the cost of a general election. In comparison, on off-years there are typically fewer than 15 local jurisdictions having items on the general election ballot and to share the cost. Therefore the cost for putting a ballot on this November's election, a presidential year with no local offices, could be around $3 per registered voter (~$135,OOO), while the cost for next year's primary or general election will likely k\fin\O506budget\election \Iidli ft I doc 6 to be around $1.5 perregistered voter (~$67,500). And, because there will be local offices on the ballot next year, the City will need to pay this cost regardless how many items we have on the ballot. The incremental cost for each item is minimal. In comparison, a special election typically costs around $2 per registered voter (~$90,000). A multi-year Lid Lift must be held at a primary or general election. A single-year Lid Lift election can be held at any of the published election dates. 2. Community Support. To get widespread community support at the election, there needs to be a compelling reason for the ballot item. The threat of a 25% tax roll-back from 1-864 could be such a reason. The potential severe impact to City services did cause some general concerns. With 1-864 not making to the ballot this year, the threat is no longer imminent and the community's support uncertain. 3. Potential Future Initiatives. The potential of a new initiative that could target any increases passed this fall cast some uncertainty on the effect of a tax vote this fall. As mentioned earlier, one of the initial goals for the Lid Lift is to protect the base property tax. Whether a Lid Lift vote will protect the tax base against future initiatives is unknown. For this reason, some communities decided to wait and see what is to come before taking action. 4. Preparation Time. The City has limited experience in proposing tax related issues to voters. This means we need longer lead time in learning and preparing for appropriate actions leading up to the election. It is also important to keep in mind that it is not unusual that a request for tax increase can be presented to voters many times before it succeeds. 5. Competing Ballot Measures: General elections are always crowded with many political offices and large, competing funding requests. When there are too many issues presented to voters, the voters tend to not vote or vote against those items they are not familiar with. For this reason, school districts around the state have traditionally elected to have their levy election on single topic special elections. ßI. Decision Tree and Options: 1. Propose a Lid-Lift vote? The lid lift vote, if approved, will allow property tax to keep pace with inflation so the city can maintain its purchasing power in services. However, unless there is an issue to galvanize widespread support, a favorable election result can not be ascertained. As an option, Council could decide to wait and see if there is such a trigger event that could drastically impact the city's cost of services or revenue collections before proposing a lid lift election. 2. Single or multiple-year Lid Lift? A multi-year lid-lift is clearly most cost effective way to get close to the goal of maintaining the current tax rate. The non-supplanting requirement is something to be considered. A single year lid-lift costs more. However, the rules for single year lid lift are simpler, well established and tested, and it does provide the stability at a time it is needed the most. 3. 2004 or 2005 election? a. The cost of the 2004 general election is likely to be more expensive than if we wait until 2005. k:\fin\O506budget\election\lidliftl.doc 7 b. It is uncertain whether the lid-lift election will protect the city's tax base. There may be value to see if there are new initiatives next year. c. There are a number of state offices and potentially significant county-wide tax proposals on November general election ballot A local lid-lift may not compete well with these items. 4. Special, primary, or general election? a. A special election has lower voter turnout It will cost around $90,000. Single item special election allows voters to fully understand the issue when voting. This significant benefit could out weight the problem oflower turnout There is no minimum turnout required for a lid lift election. b. The total cost for 2005 primary or general election will probably be around $67.5k each. However, because the City will have local offices on the general election, the incremental cost for additional items would be negligible. Depends on whether the City has local offices on the primary ballot, the incremental cost to put the Lid Lift on the primary could go from minimal to up to $67.5k. c. . Having election earlier in the year, up to the primary, will allow the City to try the item again if it fails the first time, and still in time to implement the lid lift for the following year's collection. k:\fin\O506budget\election\1idliftl.doc 8