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Council PKT 10-21-2003 RegularCity of Federal Way City Council Meeting AGENDA COUNCILMEMBERS Jeanne Burbidge, Mayor Jack Dovey Eric Faison Mary Gates Linda Kochmar Dean McColgan Mike Park CITY MANAGER David H. Moseley Office of the City Clerk October 21, 2003 AGENDA FEDERAL WAY CITY COUNCIL Regular Meeting Council Chambers - City Hall October 21, 2003- 7:00 p.m. (www. cityoffederalway, com) CALL MEETING TO ORDER PLEDGE OF ALLEGIANCE III. IV. PRESENTATIONS Federal Way Youth Soccer Association Recognition Certificate of Appreciation/Weyerhaeuser Company ProclamatioWDomestic Violence Awareness Month Introduction of New Employees/City Manager Emerging Issues/City Manager 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. CONSENT AGENDA Items listed below have been previously reviewed by a Council Committee of three members and brought before full Council for approval; all items are enacted by one motion. Individual items may be removed by a Councilmember for separate discussion and subsequent motion. Minutes/October 7, 2003 Regular Meeting Council Bill #332/Create Steel Lake Management District No. 1 - Enactment Ordinance Diversity Commission Business Plan 2003-2004 Lodging Tax Advisory Committee Reappointment Over please . . . VI. VII. VIII. g. mo 2003 CDBG Amendment to Federal Way Domestic Violence Victims Advocate Program HomeSight Master Loan Agreement Addition of Review of Sign Regulations for Freeway-Oriented Businesses to 2003 Planning Commission Work Program Bathymetry Mapping Quadrant Residential South Preliminary Plat - Resolution Electric Winches/Request for Proposal City Hall 2% for Art Opportunities Create Steel Lake Management District Advisory Committee No. 1 - Resolution 51 st SW StorlH Mainline Replacement (Crestview Shoreclub)/100% Design Approval & Authorization to Bid COUNCIL BUSINESS Delay of Annexation Resolutions INTRODUCTION ORDINANCE Council Bill #333/Code Amendments Updating Chapter 9, Licenses and Business Registration AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, AMENDING SECTIONS OF ARTICLE IX TO CHAPTER 9 OF THE FEDERAL WAY CITY CODE REGARDING MASSAGE PRACTITIONERS (AMENDING ORDINANCE NO. 95-229). CITY COUNCIL REPORTS IX. X. CITY MANAGER REPORT EXECUTIVE SESSION Potential Litigation/Pursuant to RCW 42.30.110(1)(i) ADJOURNMENT ** THE COUNCIL MAYADD AND TAKE ACTION ON OTHER ITEMS NOT LISTED ON THE AGENDA ** THE COMPLETE AGENDA PACKET IS AVAILABLE FOR REVIEW AT CITY HALL AND ALSO ON THE CITY'S WEBSITE UNDER "NEW--FEDERAL WAY DOCUMENT LIBRARY" PROCLAMATION WHEREAS, domestic violence is a crime that affects up to 50 % of American women, and is the leading cause of women's visits to hospital emergency rooms; and WHEREAS, nationally, half of all homeless women and children are fleeing domestic violence; and WHEREAS, domestic violence results in death, serious injury, isolation, emotional damage, chronic medical issues and poverty for victims; and WHEREAS, domestic violence can happen to anyone, regardless of race, religious beliefs, income level, sexual preference, marital status or age; and WHEREAS, 75% of women killed by abusive partners are killed while leaving or after already having left the relationship; and WHEREAS, families and communities are strengthened by holding domestic violence perpetrators accountable for their crimes; and WHEREAS, increasing public awareness of domestic violence promotes safety, health and wellness for victims; and WHEREAS, October is nationally recognized as "Domestic Violence Awareness Month"; NOW, THEREFORE, we, the undersigned Councilmembers of the City of Federal Way, Washington, do hereby proclaim the month of October 2003, as "DOMESTIC VIOLENCE AWARENESS MONTH" in the City of Federal Way, and encourage everyone in our community to take an active role in supporting all victims, so they can lead healthy lives safe from violent and abusive behavior. SIGNED this 2F' day of October, 2003. CITY OF FEDERAL WAY Jeanne Burbidge, Mayor Dean McColgan, Deputy Mayor Linda Kochmar, Councilmember Jack Dovey, Councilmember Mary Gates, Councilmember Mike Park, Councilmember Eric Faison, Councilmember CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: CITY COUNCIL MEETING MINUTES CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: Draft minutes of the City Council regular meeting held on October 7, 2003. SUMMARY/BACKGROUND: Official City Council meeting minutes for permanent records pursuant to RCW requirements. CITY COUNCIL COMMITTEE RECOMMENDATION: n/a PROPOSED MOTION: "I move approval of the minutes of the City Council regular meeting held Oc'. ',r 7, 2003." COUNCIL ACTION: (BELOW TO BE COMPLETED B Y CITY CLERKS OFFICE) [] APPROVED COUNCIL BILL # [] DENIED 1sT reading [] TABLED/DEFERRED/NO ACTION Enactment reading [] MOVED TO SECOND READING (ordinai~ce~ '~,ffy) ORDINANCE # RESOLUTION # REVISED - 05/10/2001 FEDERAL WAY CITY COUNCIL Council Chambers - City Hall October 7, 2003 - 7:00 p.m. Regular Meeting CALL MEETING TO ORDER Mayor Burbidge called the regular meeting of the Federal Way City Council to order at the hour of 7:00 p.m. Councilmembers present: Mayor Burbidge, Deputy Mayor Dean McColgan, Councilmembers Jack Dovey, Eric Faison, Mary Gates, Linda Kochmar, and Mike Park. Staff present: City Manager David Moseley, City Attorney Pat Richardson, and City Clerk Chris Green. II. PLEDGE OF ALLEGIANCE Councilmember Mary Gates led the flag salute. III. PRESENTATIONS a. Swearing-In Ceremony/Police Officer Chief Anne Kirkpatrick introduced Officer Brian Lyle as a new lateral officer for our department. City Clerk Chris Green administered the oath of office and congratulated Officer Lyle. b. Youth Commission Introductions/Certificates of Appointment Councilmember Kochmar was pleased to announce and introduce the following Youth Commissioners: Kelsey Martin, Jessica De Hart, Garet Salisbury, Elise Vaughn, Leslie Loo, and Chelsea Wolbest. Certificates of Appointment were given to those students in attendance; the remaining certificates will be given at the next Youth Commission meeting. c. Proclamation/National DECA Week Mayor Burbidge read and presented the proclamation to Brett Andriesen, President, and Meg Branlund, Vice-President of Publicity of Decatur High School DECA. Mr. Andrieson and Ms. Branlund accepted the proclamation and thanked the Mayor and Council. Federal }Fay City Council Regular Meeting Minutes October 7, 2003 - Page 2 of 5 d. Introduction of New Employees/City Manager City Manager David Moseley was pleased to announce and introduce Russell Cotton- Betteridge, the new Engineering Technician in the SWM division of Public Works; Douglas Hughes a new Recruit Police Officer; Grace Skidmore, the new Development Specialist in the Community Development Department; Holly Slyter, the new Lead Theatre Technician for the Knutzen Family Theatre; Susan Stone the new Court Clerk I for the Municipal Court; Rodney Toot, the new Aquatic Facility Operator for the Kenneth Jones Pool; and Chuck Wilson, the new Combination Electrical/Building Inspector for the Community Development Department. Mayor Burbidge welcomed them all to the city. e. Emerging Issues/City Manager City Manager David Moseley announced there were no new employees to introduce tonight. IV. CITIZEN COMMENT Lawson Bronson, spoke in regards to the proposed annexation of Redondo East. He asked Council to do a PAA Study before annexing. Vo CONSENT AGENDA ao f. g. h. i. j. Minutes/September 16, 2003 Regular Meeting -Approved Vouchers-Approved Monthly Financial Report-Approved Council Bill #331/Community Center Bond - Enactment Ordinance- Approved tt03-451 Year 2003 Asphalt Overlay Project/Final Acceptance & Retainage Release- Approved 2004 Asphalt Overlay Program/Preliminary Project List & Authorization to Bid-Approved Weyerhaeuser Way & So 336th St Roundabout Proiect/100%Design Approval & Authorization to Bid-Approved 2003/2004 Implementation of Commute Trip Reduction (CTR) Plans & Program Agreement with WSDOT-Approved 2003/2004 Commute Trip Reduction Program/Professional Services Agreement with King County-METRO-Approved Purchasing Policies - Resolution-Approved Resolution#03-395 Federal Way City Council Regular Meeting Minutes October 7, 2003 - Page 3 of 5 COUNCILMEMBER PARK MOVED APPROVAL OF THE CONSENT AGENDA AS PRESENTED; COUNCILMEMBER GATES SECOND. The motion passed as follows: Burbidge yes Kochmar yes Dovey yes McColgan yes Faison yes Park yes Gates yes VI. INTRODUCTION ORDINANCE Council Bill #332/Create Steel Lake Management District No. 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, CREATING LAKE MANAGEMENT DISTRICT NUMBER 1 FOR STEEL LAKE AND SETTING A PUBLIC HEARING ON THE ASSESSMENT ROLL FOR THE DISTRICT. COUNCILMEMBER FASION MOVED COUNCIL BILL #332/CREATE STEEL LAKE MANAGEMENT DISTRICT NO. 1 TO SECOND READING/ENACTMENT AT THE NEXT REGULAR COUNCIL MEETING ON OCTOBER 21, 2003; COUNCILMEMBER DOVEY SECOND. The motion passed as follows: Burbidge yes Kochmar yes Dovey yes McColgan yes Faison yes Park yes Gates yes VII. CITY COUNCIL REPORTS Councilmember Gates reported on her attendance at various regional meetings including Puget Sound Regional Council, and National League of Cities, where transportation issues were discussed. She also updated the Council on a variety of Sound Transit related items. Councilmember Kochmar noted she attended the dedication of the Maryanne Mitchell Overpass (320th & I-5). She thanked Deb Barker, John Hutton, and Chief Kirkpatrick for the positive letters the Council had received from the public; and announced the next meeting of the Parks/Recreation/Human Services/Public Safety committee would be held October 13th at 4:00 p.m. Councilmember Park announced the next Finance/Economic Development/Regional Affairs Committee would be held October 28th at 5:00 p.m. He also there is a potential of Federal Wa.v City Council Regular Meeting Minutes October 7, 2003 - Page 4 ors this meeting being rescheduled, and having a Council Study Session on Economic Development following that meeting. Councilmember Dovey reported on his attendance at a recent fundraiser held by the Friends of the Hylebos. He noted it was a nice evening, supporting a good cause. Councilmember Faison reported the next meeting of the Land Use/Transportation Committee would be held October 20th at 5:30 p.m. the meeting will be focusing on the North Lake Annexation. He also noted he hopes to have a meeting discussing the Redondo East Annexation. Deputy Mayor McColgan reported on his participation, along with other Council colleagues, at the Heart Walk in Seattle. He also thanked John Hutton for going out of his way to give good customer service. He announced the next meeting of the Lodging Tax Advisory Committee would October l0th at 8:00 a.m. Mayor Burbidge reported on her attendance at various regional meetings. She thanked all who volunteered and donated to this years Mayor's Day of Concern. She reported almost 5,000 lbs of food was donated along with $800 in cash donations. Mayor Burbidge also encouraged citizens to attend upcoming events in the local performing arts. VIII. CITY MANAGER REPORT City Manager David Moseley reported on the road construction on Pacific Highway South at South 288th Street and South 336th that is continuing, which will require some lane closures. He also noted the Tacoma Second Pipeline project is currently working at the north entrance of Celebration Park. He noted all interested citizens and businesses should access the city's wcbsite for updated information. Mr. Moseley note0, last weekend's Cops & Lobsters event was again a success! The event held at the Federal Way Red Lobster raised $2,600 for Special Olympics. He further reminded Council the need for an executive session for the purpose of discussing potential litigation pursuant to RCW 42.30.110(1)(i); expected duration is ten minutes with no action anticipated. IX. EXECUTIVE SESSION At 7:45 p.m. May'or Burbidge announced the City Council would be recessing into Executive Session for the purpose of discussing Potential Litigation pursuant to RCW 42.30.110(1)(i) tbr approximately ten minutes with no action anticipated. Federal Way City Council Regular Meeting Minutes October 7, 2003 - Page 5 of 5 Potential Litigation/Pursuant to RCW 42.30.110(1)(i) Council returned to Chambers at 8:00 p.m. Xo ADJOURNMENT There being no further business to come before the Federal Way City Council, Mayor Burbidge adjourned the regular meeting at 8:00 p.m. Stephanie Courtney Deputy City Clerk MEETING DATE: iTEM# ~7-~17,~ CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: ORDINANCE TO CREATE STEEL LAKE MANAGEMENT DISTRICT NUMBER ONE CATEGORY: ~ CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING I ~ CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: Memo to Land Use / Transportation Committee dated September 29, 2003, Ordinance with F xhibit A showing the Boundary of Lake Management District Number One for Steel Lake. SUMMARY/BACKGROUND: In response to a simple majority of voters approving creation of a lake mar agement district, a proposed ordinance creating Lake Management District Number One for Steel Lake is attached. Upon creation of the lake management district by ordinance, the city council is required to conduct a public heari~ ~g on the proposed assessment role for the district per RCW 36.61.120. Notices of the public hearing will be sent to property owners within the district as required in RCW 36.61.140. The assessment role identifies each parcel in the district, the acreage and feet of lakefront of each parcel, the name and address of each property owner, and the proposed as ;essment for each parcel. Objections to the proposed assessment role must be made in writing in advance of the public he ~ring. At the public hearing, the city council will consider any objections received. The city council may correct, revi ;e, raise, lower, change or modify the assessment role or set the proposed assessment role aside and order a new one be prqpared. If the council raises any assessment or includes new parcels, a new public hearing must be held for the affectecl property owners. Use/Transportation Committee recommended placing the following item on the October 7, 2003, City Council agenda for consideration: .I · Passage of the attached ordinance creating Lake Management District Number One for Steel Lake and ] · Setting a public heating date for November 18, 2003 for public comment on the assessment role for ~roperties within the district. PROPOSED MOTION: "I move the proposed Ordinance to second reading and approval at the next regular n teeting on October 21, 2003." (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERREDfNO ACTION /MODTO SECOND READING (ordinances REVISED - 05/10/2001 (J ~ COUNCIL BILL # 1sT reading Enactment reading ORDINANCE # RESOLUTION # CITY OF ~ Federal Way DATE: TO: FROM: VIA: SUBJECT: September 29, 2003 Eric Faison, Chair Land Use and Transportation Committee Leslie Ryan-Connelly, ESA/NPDES Coordinator ~ if It David H. Mose~~ager Ordinance to Create Steel Lake Management District Number One BACKGROUND In April 2003, residents representing 25 parcels adjacent to Steel Lake submitted a petition to the City Coum requesting the city create a lake management district for Steel Lake. The residents' petition included a scope activities, budget and rate structure for the proposed district. On May 6, 2003, the City Council passed Resoluti{ Number 03-384 declaring its intent to form Lake Management District Number One for Steel Lake. On June 1 2003, the city council conducted a public hearing for the purpose of accepting testimony in support of and opposition to the creation of Lake Management District Number One. On July 1, 2003, the City Council pass~ :il >f in 7, in :d Resolution Number 03-386 submitting the question of creating Lake Management District Number One to t? e property owners within the proposed district. Ballots were mailed out to property owners of record on July 11, 2003. The deadline for returning ballots w~s August 13, 2003. Of 101 ballots mailed, 51 valid ballots were returned. The value of each ballot was weighted l~y the dollar value of the proposed assessment for the parcel. For example, the proposed assessment for a single- family parcel was $85; therefore, a ballot carded the weight of 85 votes. There were 5,963 votes in favor 0f creating the lake management disthct and 170 votes against. , In response to a simple majority of voters approving creation of a lake management district, a proposed ordinan4e creating Lake Management District Number One for Steel Lake is attached. / Upon creation of the lake management district by ordinance, the city council is required to conduct a publi c hearing on the proposed assessment role for the district per RCW 36.61.120. Notices of the public hearing will e sent to property owners within the district as required in RCW 36.61.140. The assessment role identifies eah parcel in the district, the acreage and feet of lake front of each parcel, the name and address of each propert owner, and the proposed assessment for each parcel. Objections to the proposed assessment role must be made writing in advance of the public hearing. At the public hearing, the city council will consider any objectio~ received. The city council may correct, revise, raise, lower, change or modify the assessment role or set th proposed assessment role aside and order a new one be prepared. If the council raises any assessment or include new parcels, a new public hearing must be held for the affected property owners. RECOMMENDATION Staff recommends placing the following item on the October 7, 2003, City Council agenda for consideration: · Passage of the attached ordinance creating Lake Management District Number One for Steel Lake an. · Setting a ,public hearing date for November 1~, 2003 for public comment on the assessment role fc properties within the district. k:\lutc~003\0929 steel lake mgt dist ord.doc APPROVAI~ O~ COMMITTEE REPORT: Er~c Faiso, ' gich~ell~ar~/ ~tdn McColga/. committee Chair committee Member: Committee Member cc: Project File Day File k:\lutc~2003\0915 steel lake mgt dist ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, CREATING LAKE MANAGEMENT DISTRICT NUMBER 1 FOR STEEL LAKE AND SETTING A PUBLIC HEARING ON THE ASSESSMENT ROLL FOR THE DISTRICT. WHEREAS, Lake Management District Number 1 for Steel Lake is created for the purpose of generating revenue to provide ongoing aquatic vegetation management, community education, and other related projects, WHEREAS, on May 6, 2003, the City of Federal Way City Council passed Resolution Number 03-384 declaring its intent to form a Lake Management District Number 1 for Steel Lake; and WHEREAS, the City of Federal Way City Council conducted a public hearing on June 17, 2003, for the purpose of accepting testimony in support of and in opposition to the creation of the Steel Lake Management District. At the public heating, testimony was provided by Steel Lake Committee members and interested citizens; and WHEREAS, on July 1, 2003, the City of Federal Way City Council passed Resolution Number 03-386, submitting the question of creation of Lake Management District Number 1 for Steel Lake to the owners of property within the proposed lake management district including owners of publicly owned land; and WHEREAS, under RCW 36.61.090, a simple majority of the votes cast shall determine whether the proposed lake management district shall be approved or rejected; and Ordinance. # Page 1 WHEREAS, the ballots were tabulated on August 15, 2003, and the proposal to create a Lake Management District Number 1 for Steel Lake has been approved by at least a simple majority of the votes cast; and WHEREAS, the ballots cast are available for public inspection at City of Federal Way, 33530 1st Way South, Federal Way, Washington; WHEREAS, the City of Federal Way desires to create Lake Management District Number 1 for Steel Lake and proceed with special assessments and performing lake improvement activities; WHEREAS, the City of Federal Way completed the Steel Lake Aquatic Plant Management Plan in December of 1995 and updated this plan in April of 2003 (renamed the Steel Lake Integrated Aquatic Vegetation Management Plan) (the "Plan"); and WHEREAS, the hearing notice requirements of RCW 36.61 will provide an opportunity to evaluate the assessment role for each property within the district. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY DOES ORDAIN AS FOLLOWS: Section 1. Creation of District. Lake Management District Number 1 for Steel Lake is hereby created. The boundaries of Lake Management District Number 1 for Steel Lake are represented in Exhibit A, incorporated by this reference. The duration of the district shall be for ten (10) years, from January 1, 2004 through December 31, 2013. Special assessments totaling $13,598 will be collected annually to finance the District activities, with the total amount to be collected during the life of the District being $166,440, which includes an automatic inflation increase based upon the Seattle Consumer Price Index not to exceed five percent in any given year. The special assessments will be imposed based on equal charges for similar parcels. Ordinance. # Page 2 Undeveloped parcels will be charged $30 per year. Single family developed parcels will be charged $85 per year. The multi-family parcels will be charged $275 per year. The City of · Federal Way parcel will be charged $2,048 per year. The Department ofFish and Wildlife parcel will be charged $3,500 per year. Section 2. Publication. Within ten (1 O) days of adoption of this Ordinance, the City of Federal Way shall publish in a newspaper of general circulation in Lake Management District Number 1 for Steel Lake a notice indicating that this Ordinance has been adopted. Section 3. Creation of District Limitations on Appeals. Pursuant to RCW 36.61.110, no lawsuit may be maintained challenging the jurisdiction of authority of the City of Federal Way's legislative authority to proceed with lake improvement and maintenance activities and creating the lake management district, or in any way challenging the validity of the actions or decisions or any proceedings relating to the actions or decision unless the lawsuit is served and filed no later than forty (40) days after publication of a notice that the ordinance has been adopted ordering the lake improvement and maintenance activities and creating the lake management district. Written notice of the appeal shall be filed with the City Council and clerk of the Superior Court in King County. Section 4. Special Assessment Roll to be Prepared. Upon passage of this Ordinance, the City of Federal Way shall cause to be prepared a proposed special assessment roll in accordance with RCW Chapter 36.61. Section 5. Public Hearing. A public hearing will be held by the Federal Way City Council on November 18, 2003 at 7:00 PM or shortly thereafter at the City of Federal Way City Hall, 35530 1st Way South, Federal Way, Washington. At the public hearing, the City of Federal Way City Council will consider the objections to the special assessment roll of the district, shall act as Ordinance. # Page 3 a board of equalization, and may correct, revise, raise, lower, change, or modify the special assessment roll or any part thereof, or set the proposed special assessment roll aside and order a new proposed special assessment role be prepared. The City of Federal Way City Council shall confirm and approve a special assessment roll by adoption of a resolution. Notice of the proposed special assessment, the procedure for filing written objections thereto, and notice of the public hearing shall be mailed to the taxpayers of record of all property within the district by the City of Federal Way pursuant to RCW 36.61.140. Section 6. 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 7. Ratification. Any act consistent with the authority and prior to the effective date of the resolution is hereby ratified and affirmed. Section 8. Effective Date. This ordinance shall be effective five days after passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this day of ,2003. CITY OF FEDERAL WAY ATTEST: MAYOR, JEANNE BURBIDGE CITY CLERK, N. CHRISTINE GREEN, CMC Ordinance. # Page 4 APPROVED AS TO FORM: PATRICIA A. RICHARDSON, CITY ATTORNEY FILED WITH THE CITY CLERK: 'PASSED BY THE CITY COLrNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. Ordinance. # Page 5 EXHIBIT A Boundary of Lake Management District Number One for Steel Lake Ordinance. # Page 6 S AV Z~ ~ AVS~: CO .! .m S Avg~ S AV ~,~ L__. 8 lO S AV~ S AV O~ S Proposed Steel Lake Management District ,, I~c)111 Ba~n: LPSB Sub-basin Code: CPR ~= ~ ~.11 Ordinance. # Page 7 CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Diversity Commission Business Plan 2003-2004 CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: 1) Staff Report; 2)Business Plan SUMMARY/BACKGROUND: Attached is a copy of the 2003-2004 Diversity Commission Business Plan as approved by the Commission at its September meeting. Per City Council direction and the Diversity Commission's bylaws, the Commission is presenting the plan to the City Council for approval. This year's business plan calls for management of the Martin Luther King, Jr. celebration, staging a "Community Night" cultural event, providing culturally diverse books to school libraries for the enrichment of young readers, development of a program to assist the Federal Way School District in its efforts to address the minority achievement gap issue, begin long-range planning for an International Festival to be held in conjunction with the opening of the City's new community center, reviewing the City's current practices in regard to diversity training and offering recommendations as appropriate, periodic attendance and reporting at City Council meetings, inviting guest speakers to address the Commission on community issues, and continuing the Commission's public relations efforts via all media forums. A Commission representative will be present to provide an overview of last year's accomplishments and this year's proposed projects. CITY COUNCIL COMMITTEE RECOMMENDATION: Forward the Diversity Commission Business Plan 2003- 2004 to the full City Council on October 21, 2003 with a do pass recommendation. The Committee made changes to the proposed plan, with those changes shown in strikeout and underline. PROPOSED MOTION: "Move adoption of the Diversity Commission Business Plan 2003-2004." ........................... (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION COUNCIL BILL # Is* reading Enactment reading [] MOVED TO SECOND READING (ordinances only) ORDINANCE # RESOLUTION # REVISED - 05/10/2001 CITY OF FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE Date: Via: From: Subject: September 10, 2003 ~iedMMo°~Tva:r]::iC ommi s si o n Derek Matheson, Assistant City Manager Diversity Commission Business Plan 2003-2004 Backeround: Attached is a copy of the 2003-2004 Diversity Commission Business Plan as approved by the Commission at its September meeting. Per City Council direction and the Diversity Commission's bylaws, the Commission is presenting the plan to the City Council for approval. This year's business plan calls for management of the Martin Luther King, Jr. celebration, staging a "Community Night" cultural event, providing culturally diverse books to school libraries for the enrichment of young readers, development of a program to assist the Federal Way School District in its efforts to address the minority achievement gap issue, begin long- range planning for an International Festival to be held in conjunction with the opening of the City's new community center, reviewing the City's current practices in regard to diversity training and offering recommendations as appropriate, periodic attendance and reporting at City Council meetings, inviting guest speakers to address the Commission on community issues, and continuing the Commission's public relations efforts via all media forums. A Commission representative will be present to provide an overview of last year's accomplishments and this year's proposed projects. Committee Recommendation: 6.2 a.~. ~. d.e-3. Forward the Diversity Commission Business Plan 2003-2004 to the full City Council on October 21, 2003 with a do pass recommendation. APPROVAL OF COMMITTEE REPORT: l] C dmmittee C3/air C~}mmittee Member ~ember FEDERAL WAY DIVERSITY COMMISSION BUSINESS PLAN 2003-2004 Purpose: Mission: Members: Goals and Projects: Advises the City Council on policy matters involving the community's cultural and ethnic differences, ensuring that these differences are considered in the decision-making process. To help Federal Way become a community which is united amidst diversity, where each individual is respected, equally valued, equally needed and equally cherished. Equality is not sameness, it is equivalent value. Trise Moore (Chair), Carolina Lucero (Vice-Chair), Ron Walker, Julia Laranang, Byron Lightboum, John Kimiya, Teresa Camacho, Bryan Cooper, Diana Gonzalez; and Debra Robinson (Alternate). Events Manage the 2004 Martin Luther King, Jr. Celebration. (January 2004) Organize a "Community Night" event featuring the foods, traditions, and entertainment various cultural groups. (Spring 2004) Begin long-range planning for an international festival to coincide with the opening of the city's new community center. The Commission will work with the City's Parks Department on the project and will update the Council Committee on a quarterly basis. Education Assist school district with minority achievement gap issue. (Ongoing) Provide culturally diverse books to school libraries for enrichment of young readers. (Fall 2004) City Council will be advised as to which schools are chosen to receive books. Use current videos for community education. (Ongoing) Training ,,~r~ ~,T;, ,~ .......... ,, w,, ~,,~* ~,~.~;" ..... v,-~,v~o*; ..... ,,,~'~ Offer recommendations as appropriate to City Council and staff. (Spring 2004) Public Relations Promote commission programs and diversity through all media forums, including local and ethnic newspapers, Channel 21, City Update newsletter, Speakers' Bureau, website, commission brochure, and event attendance. (Ongoing) Attend City Council meetings periodically to increase Commission involvement and give visibility to the Council and community. (Ongoing) Arrange for guest speakers at meetings to address community issues. Invite community members to attend these meetings.(Ongoing) CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: LODGING TAX ADVISORY COMMITTEE REAPPOINTMENT CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: none SUMMARY/BACKGROUND: The City Council has concurred in the reappointment of David DeGroot as a committee member on the city's Lodging Tax Advisory Committee for a 2-year term expiring on October 31, 2005. CITY COUNCIL COMMITTEE RECOMMENDATION: n/a PROPOSED MOTION: "I move the reappointment of committee member David DeGroot to the city's Lodging Tax Advisory Committee for a 2-year term expiring on October 31, 2005". (The City Clerk will arrange for introduction and presentation of the reappointment certificates at the November 4th regular meeting) (BELOW TO BE COMPLETED B Y CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFEI~ED/NO ACTION [] MOVED TO SECOND READING (ordinances only; COUNCIL BILL # 1sT reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 MEETING DATE: October21,2003 ITEM# ~£} CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: 2003 CDBG Amendment to Federal Way Domestic Violence Victims Advocate Program CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: Expenditure Amt.: Contingency Req'd: ATTACHMENTS: 1) A memo to the Parks, Recreation, Human Services, and Public Safety (PRHSPS) committee dated October 6, 2003 including: September 8, 2003 memorandum to the Human Services Commission; September 4; 2003 memorandum from the City Attorney's Office requesting the amendment; a draft of the amendment to the ProjeCt Scope of Services for the Federal Way Domestic Violence Victims Advocate program. SUMMARY/BACKGROUND: The City Attorney's Office has requested an amendment to the 2003 CDBG Dbmestic Violence Victims Advocate Program to reallocate $2,000 to pay for an investigator during the monts of November and December. An amendment Federal Way's Agreement with King County for the 2003 CDBG program is required to amend the Scope of Service to reflect the change in personnel. CITY COUNCIL COMMITTEE RECOMMENDATION: At the October 13, 2003 Parks, Recreation, Humhn Services, and Public Safety (PRHSPS) Committee meeting, the Committee voted to recommend approval of the requested amendment the 2003 CDBG Federal Way Domestic Violence Victims Advocate program to allow up to $2,000 ito be allocated to a temporary investigator position. PROPOSED MOTION: I move to approve the amendment to the 2003 CDBG Federal Way Domestic ViolenCe Victims Advocate program to allow up to $2,000 to be allocated to a temporary investigator position. The City Manager is authorized to enter into the necessary amendment to revise the Scope of Service. CITY MANAGER APPROVAL: (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances on[y) COUNCIL BILL # 1st reading Enactment reading ORDINANCE # REVISED - 05/10/2001 RESOLUTION # CITY OF FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY COMMITTEE Date: From: Via: Subject: October 6, 2003 Kelli O'Donne. ll,_C. DnBG Coordinator~ David Mo~Manager 2003 CDBG Arl~r~dment - Federal Way Domestic Violence Victims Advocate Background: The City Attorney's Office has requested an amendment to the 2003 CDBG Domestic Violence Victims Advocate Program to reallocate $2,000 to pay for an investigator during the months of November and December. The attached memorandum to the Human Services Commission dated September 8, 2003 provides a detailed explanation of the requested change. Council action is required to amend Federal Way's Agreement with King County to change the Scope of Services for Federal Way Domestic Violence Victims Advocate program. The proposed amendment to the Scope of Service is included in the attached memorandum should the Council concur with the request. Commission Recommendation On September 15, 2003, the Human Services Commission passed a motion to recommend that the City Council authorize the amendment to the 2003 CDBG Federal Way Domestic Violence Victim Advocate program to allow up to $2,000 to be allocated to a temporary investigator position. Committee Recommendation I move to approve the amendment to the 2003 CDBG Federal Way Domestic Violence Victims Advocate program to allow up to $2,000 to be allocated to a temporary investigator position. The City Manager is authorized to enter into the necessary amendment to revise the Scope of Service. To be forwarded to the City Council for consideration at its October~,~,, 2003 meeting. I IAPPROVAL OF COMMITTEE REPORT: ~,,,Ommittee Chair Cd'r~ee U~'~ber DATE: TO: FROM: SUBJECT: CITY OF A Federal Way MEMORANDUM September'8, 2003 _. Human Services CommissiOn ~ Kelli O'Donnell, CDBG COordinator~" ' Request to Amend 2003 CDBG Federal Way DV Victims Advocate Program Background: The City Attorney's Office is requesting an amendment to the 2003 CDBG Domestic Violence -~ctims Advocate Program (Attachment 1). The current Scope of Work with King County. for the program applies the $20,000 funded to the domestic violence victim advocate position. The City Attorney's Office would like to reallocate $2,000 from the isalary for the domestic violence advocate to pay for an investigator during the months of November and December. The proposed Project Scope of Services as amended is attached (Attachment 2). An amendment to the Scope of Services requires a motion by the City Council. The Domestic Violence Victims Advocate project has been running under budge, t and meeting performance measures for the first two quarters of the year (Attachment 3). If approved, the proposed amendment would allow the City Attorney's Office to hire an investigator on a temporary basis for an average of 20 per week during the. months of November and December. The investigator_would be used to locate victims and witnesses, obtain victim and witness statements, serve subpoenas, and obtain photographs of victim's injuries. Staff recommends authorizing the amendment, which will assist the domestic violence victims; · advocate in serving victims of domestic violence in Federal Way. Proposed Motion: I move to recommend to the City Council approval of Amendment I to the 2003 CDBG Federal Way Domestic Violence Victim Advocate program to allow up to $2,000 to be allocated to a tempgrary investigator position. Please contact me at (253) 661-4153 or kellio@fedway.org if you have any questions regardir~g the requested amendment or any CDBG projects or programs. AttaChment I CITY OF FEDERAL WAY CITY ATTORNEY'S OFFICE Memorandum DATE: TO: FROM: SUBJECT: September 4, 2003 Kelli O'Donnell, CDBG COordinator Patricia A. Richardson, City Attorney ~ 2003 CDBG Amendment - Federal Way D.V. Victims Advocate The law department wants to amend the funding allocation it received for the Domestic Violence! Victim Advocate in order to fund an investigator through the end of 2003. The cost of the investigator is $15.00 per hour, and it is estimated that he will work 20 hours per i week from the 1st of November through the end of December 2003. The investigator will be considered a temporary employee with no benefits. Given the holidays / short weeks during these months we might not get 20 hours every week: To i that end, we figured three full weeks of work each month at 20 hours a week, with a little extra for the short weeks, which would mean we are requesting $2,000 of the grant be used to fund the investigator. Please note that he may go over 20 hours in one week, but might have less then 20 hours in another week. The investigator will be used to locate victims and witnesses. Obtain victim and witness statements as well as serving subpoenas, and obtaining photographs of victims injuries. K:h'nemoL2003 CDBG Amend AttaChment 2 SCOPE OF SERVICES NO. 2 Amendmenqk/~ ~" ~ Project No.: C03389 Start Date: !/1/2003 Project Title: Federal Way Domestic Violence Victims Advocate End Date: 12/31/2003 Contract No.: D32191D Termination Date: 12/31/2003 Project Manager: Wendy DeRobbio : City Contact Person: Kelli O'Donnell Telephone: (253)661-4153 Fax: (253) 661-4048 Email: kelli.odonnell~ci.federal-way, wa.us City of Federal Way (hereinafter referred to as "the City") shall utilize King County Community Development Block Grant funds to perform the activities, specified below. Such services shall be provided in a manner which fully complies with all applicable federal, state and local laws, statutes, rules and regulations, as are now in effect or may be hereafter amended. 1) Project Summary The City shall use CDBG funds to provide 853 hours of advocacy and 30 referrals to shelter for 355 unduplicated persons. CDBG-funded support will include personnel services (0.4 FTE) and associate~ purchased services to suppOrt a part-time legal advocate serving victims of domestic violence within the city of Federal Way. The advocate serves as a victim's guide through the legal system. The goals of the program are to aid in safety planning for victims, collect information relevant to the persecution Of defendant batterers, and direct victims to other service agencies for needed assistance. 2) Project Budget The City shall apply the following County funds to the project in accordance with the Line Item Budget Summary below. The total amount of reimbursement pursuant to this Scope shall not exceed $20,000.00. A. County Funds King County Community Development Block $20,000.0 Grant - Pass-through City Funds Total County Funds: $20,000.0~ B. Line Item Budget Personnel Services (detail below) $20,000.0p Office or Operating Supplies Consultant or Purchased Services Construction Contracts Communications Travel and Training Other (specify below): Total:County Funds: $20,000.~0 C. Personnel Detail CDBG Funds Position Title Position Full Time Equivalent [AnnualSalaryand I Benefits $47,762.00 $34,320 $20,000.00 DV Advocate 38 FTE Temporary Investigator .058 FTE Total: .40 FTE ,,,',ooo.0o I $2,ooo.0ol Project Scope of ServiQes No. 2 - Page I 3) Performance Measures A. Number Served The City agrees to serve, at minimum, the following unduplicated number of persons with CDBG funds: l't . 2,~ 3fa 4~a Quarter' Quarter Quarter Quarter Total in JAN. -- APRIL- JULY-- OCr. -- Year 2003 MARCH JUNE SEPT. DEC. No. of unduplicated persons assisted 89 89 89 88 355 B. Units of Service The City agrees to provide, at minimum, the following units of service by quarter: 1" 2°~ 3r~ 4'~ Quarter Quarter Quarter Quarter Total in JAN. -- APRIL- JULY-- OCT. -- Year 2003 MARCH JUNE SEPT. DEC. Itours of advocacy 213 213 213 214 853 Referrals to shelter 7 7 8 8 ' 30 C. Definition of Services Hours of advocacy: Represents hours of service given to clients. Referrals to shelter: When appropriate, an advocate will arrange for a client to enter a domestic violence shelter. 4) 'Records A. Project Files The City shall maintain files for this project containing the following items: ~1. Notice of Grant Award. 2. Motions, resolutions, or minutes documenting Board or Council actions. 3. A copy of this Scope and the County's notice to proceed on this project. 4. Correspondence regarding budget revision requests. 5. Copies of all invoices and reports submitted to the County for this project. 6. Bills for payment. 7. Copies of approved invoices and warrants. Project Scope of Services No. 2 - Page 2 DRAFT 8. Records documenting that costs reimbursed with funding provided under this Sgope are allowable in accordance with OMB Circular A-87 for local governments and A-122 for nonprofit organizations. Such records include, but are not limited to: · For personnel costs, payroll time sheets for actual salary and fringe benefit costs. Time sheets must be signed by a supervisor and annotated to document percent of time charged against this project if less than full time; · For staff travel, documentation of mileage charges for private auto use must include: a) odometer reading at beginning and end of trip, b) destination and starting location, and c) purpose of trip; and · For copy machine use, postage, telephone use, and office supplies when these costs are shared with other programs and no invoice is available, log sheets or annotated invoices. 9. Documentation of the solicitation process used to select vendors and subcontractors with original purchase orders and subcontracts. 10. Documentation required by this Contract if any funds provided under this Scope are used to acquire equipment. 11. The City shall ensure that services provided with funding under this Contract are made a,gailable to residents of the following jurisdictions that are participating in the King County CDBG Consortium: Algona Federal Way Redmond Beaux Arts Hunts Point Renton Black Diamond [ssaquah Sammamish Bothell Kenmore Shoreline Burien Kirkland Skykomish Carnation Lake Forest Park Snoqualmie Clyde Hill Maple Valley Tukwila Covington Mercer Island Woodinville Des Moines Newcastle Yarrow Point Duvall North Bend Unincorporated King County Enumclaw Pacific Services provided with funding under this Contract may be limited to residents of one or more of the above-referenced jurisdictions. Invoices The City>shall submit invoices to the County within 20 business days after the end of the first, second and third quarters. The City shall submit its final invoice to the County in accordance with Part 1, Section 3C. The City shall submit invoices to the County in the form of a CDBG Program Voucher Reimbursement Request Form, which will be provided by the County. Such forms shall be signed by an'authorized representative of the City. Project Scope of Serviiees No. 2 - Page 3 6) Reports DRAFT The City shall collect and report client information to the County quarterly and annually on a Program Accomplishment form, ina format provided by the County. The City shall submit with the final invoice a Project Funding Report form, in a format provided by the County, itemizing all funding used for the project. Project Scope of Services No. 2 - Page 4 0 ?- Attachment'3 MEETING DATE: October 21, 2003 ITEM# CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: HomeSight Master Loan Agreement CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: 1) A memo to the Parks, Recreation, Human Services, and Public Safety (PRHSPS) Committee dated October 6, 2003 including: September 22, 2003 memorandum to the Human Services Commission with attachments showing proportional share of loan funds scenarios and the September 16, 2003 draft of the Subrecipient/Master Loan Agreement King County First Homes Program. SUMMARY/BACKGROUND: Federal Way has allocated funds in 1997, 1998 and 2001 to the HomeSight First Homes Program to provide low-interest loans to qualifying first-time home buyers. King County and HomeSight would like to combine all of the funds allocated to the First Homes Program that are administered by King County Housing and Community Development into one Subrecipient/Master Loan Agreement. The proposed agreement would include King County, Auburn, Federal Way, Kent and Tukwila funds. Detailed information regarding the Agreement is provided in the attached memorandum. CITY COUNCIL COMMITTEE RECOMMENDATION: At the October 13, 2003 Parks, Recreation, Human Services, and Public Safety (PRHSPS) Committee meeting, the Committee voted to authorize the City Manager to notify King County that the City of Federal Way agrees with the proposed changes to the HomeSight First HOmes Program as set forth in the September 16, 2003, final draft of the Subrecipient/iVlaster Loan Agreement King County First Homes Program ("MLA"). PROPOSED MOTION: I move to authorize the City Manager to notify King County that the City of Federal Way agrees with the proposed changes to the HomeSight First HOmes Program as set forth in the September 16, 2003, final draft of the Subrecipient/Master Loan Agreement King County First Homes Program ("MLA").. CITY MANAGER APPROVAL: (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROWD COUNCIL BILL # [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances only) 1sx reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 CITY OF FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY COMMITTEE Date: October 6, 2003 From: Kelli O'Donnell~l~BG Coordinato~ Via: David Mose,~~anager ~ Subject: HomeSight'Mb~te'r Loan Agreement Background Federal Way allocated CDBG funds to the "HomeSight - First Homes Program," in 1997, 1998 and 2001. Federal Way has allocated a total of $240,000 to the First Homes Program. The Program provides down payment assistance to people whose income is less than 80% of the King County median income and choose to purchase their first home in the City of Federal Way. Loans are made for up to $25,000 to bridge the affordability gap to get into a home at a 3% interest rate for 30-years with a deferred principal payment for seven years. As loans are repaid, funds are used for additional loans to qualifying Federal Way homebuyers. King County administers the agreements with HomeSight for Federal Way CDBG funds since Federal Way is part of the King County CDBG Consortium. HomeSight has committed the majority of funds allocated by the City of Federal Way to loans to qualifying homebuyers. HomeSight and King County would like to combine all previously allocated funds to the First Homes Program into one SubrecipientJMaster Loan Agreement as detailed in the attached September 22, 2003, memorandum to the Human Services Commission. The proposed agreement would incorporate all HomeSight funds currently administered by King County into one agreement. This includes funding from King County, Auburn, Federal Way, Kent, and Tukwila. Staff Recommendation Following direction from the Human Services Commission, Staff negotiated with HomeSight and King County to ensure the continued investment of Federal Way's CDBG funds into the Federal Way community over the term of the agreement. As proposed on September 22, 2003, the First Homes Program must maintain Federal Way's proportionate share of loans over each three- year period of the agreement. HomeSight may invest private funds to meet the balancing requirement. Staff has also negotiated quarterly reporting requirements, notification, and input into any amendments to the agreement, and the ability to propose amendments. Staff recommended participation in the Subrecipient/Master Loan Agreement so that Federal Way homebuyers may continue to access the First Homes Program as funds are repaid from existing loans. Commission Recommendation The Commission reviewed the proposed Master Loan Agreement dated September 1(~, 2003 at their meeting of September 29, 2003. The Commission moved to recommend that the City Council authorize the City Manager to notify King County that the City of i Federal Way agrees with the proposed changes to the HomeSight First Homes Program as set forth in the Subrecipient/Master Loan Agreement King County First Homes Program ("MLA") as of September 16, 2003, and authorizes King County to incorporate Federal Way's 1997, 1998 and 2001 CDBG awards, including previously executed agreements, to the HomeSight First Homes Program into the MIA with the understanding that the CDBG funds will revolve into additional First Homes loans to qualifying home buyers so there will be no loan repayments or other program income tO Federal Way's CDBG program during the term of the MIA. Committee Recommendation The Committee moves to authorize the City Manager to notify King County that the Cit of Federal Way agrees with the proposed changes to the HomeSight First Homes Program as set forth in the September 16, 2003, final draft of the Subrecipient/Master Loan Agreement King County First Homes Proxaram ("MIA"). To be forwarded to the City Council for consideration at its October~,~,, 2003 meeting. J~-nmittee Ot~air · (~o(-n~it(f'ee Mambo r ~(~o/?n~iff~ Member CITY OF ~ Federal Way MEMORANDUM DATE: TO: FROM: SUBJECT: September 22, 2003 Human Services Commission Kelli O'Donnell, CDBG Coordinat~_..(z./y"- HomeSight - Proposed New Master Loan Agreement to Govern Implementatio of Federal'Way's Previous and Future Allocations of CDBG Funds (Action) Background: The Original HomeSight First Homes Program Contracts The City of Federal Way has allocated funds to the "HomeSight - First Homes Program," wh ich provides down payment assistance to people who choose to purchase their first home in the City of Federal Way, and whose income falls below 80% of the King County median income. The Program provides gap financing to cover the difference between the amount payable byi the homebuyer and the amount of permanent lender financing. Since Federal Way is a member of the King County CDBG Consortium, the City of Federal Way's allocations, as well as the allocations by other participating jurisdictions, are implemented by King County by way contracts between King County and HomeSight. Historically, those contracts authorize HomeSight to award up to $25,000 for each 30-year loan at a 3% interest rate with a deferre( principal payment for seven years. The agreements also require the loan repayments to revolve into future loans of the same type in Federal Way. Federal Way allocated $15,000 to the First Homes program in 1997 for loans in the Westway neighborhood and $75,000 in 1998 for loans available citywide. These allocations are under! between King County and HomeSight, and funds have been loaned out to Federal agreement Way residents. King County matched Federal Way's 1997 CDBG award with a $75,000 Housing Opportunity Fund grant to provide additional funds for loans in Federal Way. in 200~1, the City of Federal Way allocated $150,000 to the Program, but King County has not yet entered into a contract with HomeSight to implement that allocation. Nonetheless, HomeSigl~t has already committed $141,300 in loans to Federal Way residents in anticipation of a new agreement being reached between King County and HomeSight. This new agreement, which King County has chosen to call a "Master Loan Agreement" ("MLA"), would take the place of ~ll of the previous contracts and serve as a master contract for all future years' allocations by th~ participating jurisdictions. The MLA was drafted following meetings with Staff from participating jurisdictions, King County and HomeSight. Federal Way, as the city contributing the highest percentage of funds to the Program, insisted that King County take its concerns into account negotiating the MLA. Negotiations with KC and HomeSight began in June of 2003 and are concluding this month. The following jurisdictions also have awarded funds to the HomeSight First Homes program, have not, to Federal Way's knowledge, attempted to negotiate regarding the MLA: King Coul $500,000 of. HOME/HOF funds, Auburn $150,000 of CDBG funds, Kent $50,000 of CE)BG funds, and Tukwila $45,000 of CDBG funds. Federal Way is the only jurisdiction that has not n )ut ~ty agreed to participate in the MLA as first proposed. Federal Way has until November 1, 2003 ~o authorize King County to contract its funds into the MLA. The MLA, as it was first proposed to Federal Way, allowed loans to be secured in HomeSight'is name. This would allow HomeSight, as a recently qualified Community Development Financial Institution, to increase its funding source even further to access additional Iow-cost loan fundS. King County and HomeSight reached an agreement on how to accomplish this while protectinig the interest of the funding cities and King County. HomeSight also requested that all of the funds committed to the First Homes Program by South King County cities no longer revolve back to the original city allocating funds. Instead, homebuyers who wish to purchase homes in the participating jurisdictions (Federal Way, Kent, Auburn and Tukwila) would be able to access funds from the South King County First Homes Program as part of the Puget Sound Revolving Loan Fund. This strategy simplifies HomeSight's administration of the funds and allows it to concentrate on raising significant private sector dollars. As HomeSight gains capital from other sources, those wishing to buy in Federal Way will continue to be eligible for gap financing assistance from the Puget Sound Revolving Loan Fund. Issues Raised by Staff and Commission: After reviewing the proposed MLA, Staff reported to the Human Services Commission in AugL that there were questions and concerns about the MIA and Staff was not prepared to recommend participating in the MIA at that time. The Commission stated that they did not wi= to have Federal Way's funds go into a larger pool of fUnds without a guarantee the loans woul revolve back to Federal Way, as was the original intention of the funds allocated. The Commission noted a concern regarding the County loaning funds and indicated that they wou like to have an option to terminate participation in the First Homes Program in the future. ~st Federal Way Funds Revolving back to Federal Way: Staff from Federal Way, King County, and HomeSight have been in omgoing .discussion on speCific aspects of the MIA since August to resolve issues raised by Federal Way. The language in the MIA has been revised to assure that the original funds allocated for loans in Federal Way will remain in Federal Way throughout the term of the SMLA. Each jurisdiction v/ill have their proportionate share stated as a percentage of loans made over each three-year period based upon the amount of funds committed to the program as of December 31, 2003. ~ HomeSight will use private funds in the event that the percentage has not been met in any jurisdiction over the three-year period. The program has been designed to allow jurisdictions ~to add funds, or join the program annually, with additional loans associated with their contributions added to the agreement. The proportionate share would only be adjusted every three years after December 31,2003 to assure that the participating jurisdictions receive their share of loans. Staff feels that this design will assure that the funds committed to Federal Way will continue to be reinvested in Federal Way over the length of the MLA. Attachment 1 demonstrates that Federal Way funds will continue to stay invested in Federal Way if existing participants or new jurisdictions joining the program add additional funds to the First Homes Program. Loaning of Funds: Assistant City Attorney Karen Jorgensen has reviewed the legal concerns raised by Commissioner Larson in August and informed King County of the issue. Ms. Jorgensen will advise the Ad Hoc Committee during its meeting on September 24, 2003. Any further reques~ts for legal advice should be addressed to Ms. Jorgensen directly. Option not to Participate: If Federal Way chose not to participate, the existing contracts between KC and HomeSight would govern. King County has already acknowledged that, under the original contracts, King County would have to work with Federal Way to find HomeSight in breach of its duty to manage Federal Way's allocations. Negotiation and perhaps legal action would ensue. Staff believes this course of action runs contrary to the City's desire to commit funds as expeditiously as possible to assist Iow and moderate income first-time homebuyers to locate in Federal Way. Option to Terminate: A mechanism for the City of Federal Way to withdraw as a participant of the MLA is not included in the agreement. Staff researched this option and determined it was not practical due to thei nature of the program. Funds granted to the First Homes Program by Federal Way were ' intended to be lent out to eligible first-time homebuyers in Federal Way to help residents to obtain affordable housing. The majority of funds committed have already been lent out for a 30- year period and would be transferred to the new MIA. In the event that there was a mechanism for Federal Way to withdraw from the First Homes Program, collateral in the existing loans would have to be transferred to King County. The County or Federal Way would have to service the loans or find another entity to do so. The County and Federal Way Staff are not prepared to service loans. Federal Way Staff does not believe a termination clause would be in the best interest of the long-term operation of the program in Federal Way. Technical Changes: Staff has worked with King County and HomeSight on a number of technical changes to the MLA to make sure that the operations of the First Homes Program are clear. We have been successful in adding reporting requirements to the participating jurisdictions, notification and input on any.amendments to the program, and the ability to request an amendment to the agreement,in.~the future if needed. The proposed action requested by King County notes that Federal Way understands that Federal Way CDBG funds will revolve under the new program so loan repayments and other program income will not return to Federal Way CDBG program. While Federal Way had acc~ss to these funds under the existing agreements, this option has not been used to return funds ,3 the City of Federal Way. The new MLA will allow these funds to continue to revolve in the First Homes Program and Federal Way residents will continue to access our proportionate share . during the length of the agreement. At the conclusion of the Agreement, CDBG funds will return to King County to be redistributed to participating jurisdictions as stated in the CDBG Interlocal/Joint Agreements. Staff Recommendation: Staff recommends that the City of Federal Way agree to participate in the Subrecipient/Mast~r Loan Agreement. This will allow all of the funds allocated by the City of Federal Way to be = administered under one agreement so that Federal Way residents may continue to access th9 First Homes Program. In the event that the Commission/Council does not concur with the terms of the MLA, Federa Way will have to address the existing agreement between HomeSight and King County regarding the treatment of program income and servicing of the existing loans. Federal Way would also have to work with King County in the negotiation of a new agreement addressing 2001 funds Federal Way allocated to the HomeSight First Homes Program. lhe Proposed Motion: I move to authorize the City Manager to notify King County that the City of Federal Way agrees with the proposed changes to the HomeSight First Homes Program asset forth in the amended Subrecipient/Master Loan Agreement King County First Homes Program and authorizes King County to incorporate Federal Way's 1997, 1998 and 2001 CDBG awards to the HomeSighti First Homes Program into the Subrecipient Master Loan Agreement with the understanding (hat the CDBG funds will revolve into additional First Homes loans to qualifying home buyers so there will be no loan repayments or other program income to Federal Way's CDBG program. Please contact me at (253) 661-4153 or kellio@fedway.org if you have any questions regarding the HomeSight or any CDBG projects of programs. King County First Homes Program Proportional Share of Loan Fund Scenarios Attachment Current Fund Levels PARTICIPATING JURISDICTION TOTAL CONTRIBUTION PERCENTAGE King County $575,000 48% Auburn* $150,000 13% Federal Way* $315,000 27% Kent $50,000 4% Tukwila* $95,000 8% TOTAL $1,185,000 100% * Includes Challenge Grant HOF Funds THE FOLLOVVlNG ASSUMPTIONS ARE FOR ILLUSTRATION PURPOSES ONLY, THEY ARE NOT BASED ON ANY DISCUSSIONS OR COMMITMENTS. Scenario 2 - No new Cities, existing Jurisdictions add some funds PARTICIPATING TOTAL JURISDICTION ADDITIONS CONTRIBUTION PERCENTAGE King County 200,000 $775,000 48% Aubum* $150,000 9% Federal Way* 150,000 $465,000 29% Kent $50,000 3% Tu kwila* 75,000 $170,000 11% TOTAL 425,000 * Includes Challenge Grant HOF Funds $1,610,000 100% Assumes currently active jurisdictions provide additional funds to program Scenario 3 - Two new Cities, exisiting Jurisdictions add some funds PARTICIPATING TOTAL JURISDICTION Additions CONTRIBUTION PERCENTAGE King County 200,000 $775,000 43% Auburn* $150,000 8% Federal Way* 150,000 $465,000 26% Kent $50,000 3% Tukwila* 75,000 $170,000 10% New City 75,000 $75,000 4% New City 100,000 $100,000 6% TOTAL 600,000 $1,785,000 * Includes Challenge Grant HOF Funds Assumes currently active jurisdictions provide additional funds to program and two new Cities provide funds to the program 100% SKC MIA PSJ scenarios 091803 SUBRECIPIENT/MASTER LOAN AGREEMENT KING COUNTY FIRST HOMES PROGRAM This Subrecipient/Master Loan Agreement (the "Agreement") is entered into as of the day of ,2003 (the "Effective Date"), by and between The County of King, a municipal corporation, hereinafter referred to as the "King County" and HomeSight, a Washington non-profit corporation. RECITALS King County has received Community Developmem Block Gram ("CDBG") funds from the United States Department of Housing and Urban Development ("HUD") pursuant to the Housing and Community Development Act of 1974; HOME Investment Partnership Program ("HOME") funds from HUD pursuant to the National Affordable Housing Act of 1990 and certain local funds known as King County Housing Opportunity Funds. As an urban county, the County administers CDBG funds pursuant to an inter-local agreement between King COunty and some suburban cities and King County also administers HOME funds for all of King County: Portions of the above-mentioned funds were awarded to HomeSight to provide' homebuyer assistance to eligible borrowers purchasing homes in South King County; King County and HomeSight previouslyemered into six contracts, numbered D25427D, D25607D, D25607E, D25607F, D25767D and D26138D, under which HomeSight agreed to provide homebuyer counseling, to provide down payment loans to assist eligible borrowers purchasing homes in the suburban cities mentioned above, and to service the loans originated pursuant to the contracts. ("Existing Contracts"); King County and the cities of Tukwila and Federal Way awarded additional funds to HomeSight for the King County First Homes Program to provide additional homebuyer assistance in Tukwila and Federal Way, but no contracts have been executed for those funds ("2000-2001 Awarded Funds"); King County and HomeSight desire to amend and restate the Existing Contracts in their entirety and to set forth the terms under which the 2000-2001 Awarded Funds will be used. Auburn, Tukwila and Kent have agreed to have the Existing Contracts amended and restated and have the comracts for the 2000-2001 Awarded Funds (D25607G, D25607H, D25607I, and D25607J) executed under similar terms. Federal Way is in the process of deciding whether to have its prior King County First Homes Program contracts (D25427D, 25607F~and D25767D, and D25607D) amended and restated and whether to have its -24)00 2001 Awarded Funds (D25607J) included in this Agreement; HomeSight has developed the Puget Sound Revolving Loan Fund ("PSRLF"), which is a community based investment fund providing lower interest financing to low to moderate- Subrecipient/Master Loan Agreement-September 1 ~_~. 2003Aug~::;t-..''<~., ~ 200.3 Page I income borrowers for the purchase of their first home. HomeSight anticipates that the Fund will make up to 500 down payment assistance loans over the next five years. Loan periodic repayments, refinance and cash proceeds and secondary market sales will revolve capital to allow additional loans to be made. This model reduces public and grant financing requirements over a five-year period by more than $8 million. The majority of the PSRLF capitalization comes from private investments through financial institutions, foundations, and corporations. Over a five-year period, HomeSight projects a 2:1 (private to public) leverage ratio with more than $20 million coming from private capital and repayments. The goals of the Puget Sound Revolving Loan Fund are consistent with King County's goals for the King County First Homes Program under the Existing Contracts and the 2000-2001 Awarded Funds. HomeSight and King County desire to include both the Existing Contracts and the 2000-2001 Awarded Funds in the Puget Sound Revolving Loan Fund for South King County. King County intends that HomeSight will be a Subrecipient to administer the HOME Funds in the King County First Homes Program through the PSRLF. At the present ii ~:'~ti mc.- King County does not intend that HomeSight will be a Community Based Development Organization (CBDO) or a Community Housing Development Organization (CHDO) under this Agreement. AGREEMENT NOW., THEREFORE, in consideration of the mutual promises contained in the Agreement, King County and HomeSight agree as follows: PART h DEFINITIONS "2000-2001 Awarded Funds" means the CDBG Funds awarded by Tukwila and Federal Way, along with any matching Local Funds, provided that the Federal Way portion will only be included if by OcteberNovember 1, 2003, Federal Way provides King County with authority to contract its funds in this Agreement. "Annual Income" means adjusted gross income of a Family as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 for individual Federal annual income tax purposes, as estimated by projecting the prevailing rate of income of the Family at the time when HomeSight determines whether the Family is income eligible, or such other method of calculating income as is approved by King County. Annual income shall include income from all Family members. Income or asset enhancement derived from a Qualifying Home being purchased shall not be considered in calculating annual income. "CDBG Funds" means funds derived from the federal Community Development Block Grant Program, including Receipts from the use of CDBG Funds ("CDBG Receipts"). Subrecipient/Master Loan Agreement-,'4cpLc~nl)~:~ !6. 2003A~:73::;'. 3-S_13, ~ Page "Committee" means the Puget Sound Revolving Loan Fund Oversight Committee. This Committee will advise and guide the PSRLF and its investments and provide input to the HomeSight Board of Directors. The Committee will review financial reports of fund balances including loan payments, loan pay-offs and delinquencies. The Committee will also review loan-underwriting policies and establish guidelines for refinancing, restructuring, property improvements, and foreclosure. "Eligible Homebuyer" means one or more adult members of a Family who have completed a homebuyer education program approved by King County, and who, together with all other members of their Family, have a combined Annual Income, both as of the date of initial eligibility determination and as of any later date when a determination is required by federal laws or regulations because of the fund source to be used for a Loan, no greater than: (a) With respect to the use of Local Funds, eighty percent (80%) of the median family income for the Seattle-Bellevue-Everett Primary Metropolitan Statistical Area, or in such other manner as King County shall approve in writing; (b) With respect to HOME Funds or CDBG Funds, the maximum income level permitted by federal regulations applicable to loans of CDBG or HOME funds for home buyer assistance, based on the size of the Family being assisted; Eligible Homebuyers obtaining Loans under this Agreement are also referred to herein as "borrowers". "Existing Contracts" means the six contracts, numbered D25427D, D25607E, D25607F, D25767D and D26138D, under which HomeSight agreed to provide homebuyer counseling, to provide down payment loans to assist eligible borrowers purchasing homes in the suburban cities mentioned above, and to service the loans Originated pursuant to the contracts, provided the contracts numbered D25427D~ and D25607D, D25767D and D25607J shall only be included in this definition if by OctoberNovember 1, 2003, Federal Way gives King County authority to amend and modify those contracts. "Family" has the meaning set forth in 24 CFR Section 5.403, or successor provision, and includes an individual person. "Funds" means all money provided by King County to HomeSight under this Agreement or disbursed to others at HomeSight's request under this Agreement, and all Receipts. Funds do not include any ~()lhcr Funds. a~ ctcl]ncd in this .,'\grccmcnt. "HOME Funds" means funds derived from the federal Home Investment Partnerships Act Program, including Receipts from the use of HOME Funds ("HOME Receipts"). Subrecipient/Master Loan Agreement -Scptcmbcv 1 (~. ~00o, ,ugu:,. "~< ~ '~ o~,, Page 3 "King County First Homes Program" means the portion of HomeSight's Puget Sound Revolving Loan Fund that will be used to make Loans in Participating Suburban Jurisdictions under this Agreement. "Loan" means any loan originated to purchase a Qualifying Home and consistent with the requirements of the funding source made by or on behalf of HomeSight wholly or in part with any Funds, including without limitation Receipts. "Loan Assets" means any assets or receivables derived, directly or indirectly, from ftmds provided by King County hereunder or from Receipts. "Local Funds" means funds made available by King County under the Existing Contracts or this Agreement that are not CDBG Funds or HOME Funds or derived from any other federal program. "Master Note" means the Master Promissory Note of HomeSight, dated on or about the date hereof, evidencing the obligation of HomeSight to repay the Master Loan, as described in Section 2.1. If tfomeSiaht cxt'cutcs [ln'¢ Amended lVlaster Promisso,-~, Note. '~Master Note" shall mean the Amended Master Promissory Note. "Modest Housing" means: (i) In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price that does not exceed the Single Family Mortgage Limit for the type of single family housing under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) that is applicable in the area where the home is located; or (ii) in the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed the Single Family Mortgage Limit under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) that is applicable in the area where the home is located. "Participating Suburban Jurisdictions" means King County, as the administrator for th~ HOME Consortium in tmi:~cerporated area~; of South King County: and any South K-King County suburban city that has allocated C D B G flrunds to the PS RLF King County First Homes Program_.-as o[__~_~ OcAober N~vember !. 2003. "Other¢':ivate Funds" means any money not provided by King County under the terms of the Existing Agreements or this Agreement, and may ii,elude either prix. ate or other governmental mone¥.~ "l)ujscl Sound Rcvolx. ilm Ix)an I:und" mcm~s 110mcSieht's co nmunitv based socialls re~sponsible investlnent I:ulld fha! provides lower interest linancin~ to Iow to moderate- income borrowers for the purchase of their first home, and includes King County Fir.st 110mcs Program, City o1' Seattle. and Sm~homish "Qualifying Home" means a legal dwelling unit that Subrecipient/Master Loan Agreement -Septcmber I 6..9r~(,q__~_.tx, ........ =e,=,,, '~<~- ~,' '~ 2003 Pag¢4 Ii (a) is single-family housing (1-to-4 family residence, condominium unit, cooperative unit or combination of manufactured home and lot); (b) is located in an area of South King County or a South King County suburban City approved by King County under this Agreement (c) is "Modest Housing"; (d) as of the date of purchase by an Eligible Homebuyer, satisfies federal Housing Quality Standards as defined in 24 CFR Section 982.401, and satisfies all applicable standards and code requirements, including any applicable standards based on the fund source for the Loan being made under this Agreement; and (e) ~May legally be sold separately from any other dwelling unit or structure (except for any structure accessory to the one containing the dwelling unit(s)), whether as a separate lot or condominium unit. (0 i_Is the principal residence of the Eligible Homebuyer during the term of the loan. Where a dwelling unit is in a detached single family residence or town homes on its own lot, the "Qualifying Home" includes such lot and any appurtenances. Where a dwelling unit is a condominium unit, the "Qualifying Home" includes all rights in common elements and other rights appurtenant to the condominium unit. A "Qualifying Home" may be a manufactured housing unit that meets the Manufactured Home Construction and Safety Standards established in 24 CFR part 3280. "Receipts" means all amounts received by, or for the benefit of, HomeSight from any payments on the Loans, including without limitation principal repayment; interest; late fees; shared appreciation, amounts realized on sale of collateral, Loans, or other Loan Assets; and all other return on the Loans or on the investment of any of the foregoing, provided however, that Receipts do not include amounts attributable to the portion of any Loan made with Pri::ateOther Funds. In the event a combination of Local Funds, CDBG Funds, HOME Funds and P:'ivateOthcr Funds are used to make any Loan under this Agreement, the Receipts shall be calculated on a pro-rata basis with respect to the amount of Local Funds, CDBG Funds, HOME Funds and OtherPZhvate Funds used to finance the Loan. "Subordination Policy" means King County's written policy that governs the subordination of Loans made under this Agreement. The current policy is attached as Exhibit H. "Subrecipient" means a non-profit organization selected by King County to administer a portion of King County's HOME program. Subrecipient/Master Loan Agreement-September 16, 9nn-.~ ....... , .~ ~ onn~ Page 5 2.1 PART II: PROGRAM PROVISIONS Funds to be [,lent by County; Security. Ao Subject to the terms of this Agreement and applicable laws, King County shall lend to HomeSight Funds to be used for homeownership assistance loans to be made to Eligible Homebuyers in order to enable them to purchase Qualifying Homes within South King County. King County's loan to HomeSight, including all amounts advanced under the Existing Contracts and this Agreement, shall be referred to as the "Master Loan." The amount available to HomeSight under the Master Loan is set forth in Exhibit A to this Agreement. The amounts shown in the column, "Loans Made" have been used by HomeSight, prior to the date of this Agreement, to make Loans. A list of the Loans made by HomeSight is set forth in Exhibit B to this Agreement. The amounts shown in the "Available Funds" column of Exhibit A are available to HomeSight to make Loans under this Agreement. Subject to King County's rights to terminate this Agreement, all amounts received by HomeSight or King County in repayment of any Loans, whether previously made or made in the future, shall be available to HomeSight to make additional Loans. HomeSight's right to receive any funds hereunder shall be subject to the existence of sufficient expenditure authority for such purpose, with respect to the funds in question, pursuant to County ordinances. The funding to be Provided under this Agreement includes, and is not in addition to, all funding previously awarded or committed by King County to HomeSight under the Existing Contracts and the 20001--2001__S Awarded Funds. Bo The Master Loan shall be evidenced by the Master Promissory Note of HomeSight dated as of the date hereof, or if Federal Way agrees to have its CDBG and HOF funds included in this agreement an Amended Promissory Note dated November 1. 2003. In the event this Agreement is executed before Federal Way has provided King County authority to include any Federal Way awarded CDBG or HOF Funds, HomeSight will execute a Master Promissory Note without the amount for the Federal Way awarded CDBG Funds. If Federal Way agrees to have its CDBG and HOF Ft~unds included in this agreement on or before November 1 but after the Master Promissory Note is executed, omorA~e!'orc 4~-. 200_~, HomeSight agrees to execute an Amended 4;¢c(m~t Master Promissory Note that will include all of the Funds Awarded to HomeSight. I I'add~itional Funds are aware_ led by King County or any Participating Suburban Jurisdictions al'tot thc Matstcr I)l'olni.%orv note is executed, I h)mc~i{~,h! x~iJl c×ecutc an/\mended ,MLtstc~' I)romissorx' Note. Upon receipt by King County. anv.-4h~ Amended. -~ -geomOMaster Promissory Note t~at will supercede the original Master Promissory Note or prior Amended Master Promi.ssorx Notes. The Master l)ron:is,';o4~Note shall be Subrecipient/Master Loan Agreement-September 16. 2OO3Augusl '~ ~ '~ ,~r~c¥~ Page 6 Co secured by the following: (a) the Collateral identified in the Security Agreement First Home Program dated as of the date hereof; (b) assignments for security purposes only, of each promissory note evidencing a Loan (the "Homebuyer Note"), perfected in such manner as King County shall require and subject to no prior liens or encumbrances on HomeSight's interest as payee, provided that such assignment shall specifically permit HomeSight to (i) receive payments on the Loans absent default by HomeSight under this Agreement or the First Homes Program Security Agreement and (ii) in the event of a default by the Eligible Homebuyer on the Homebuyer Note, if HomeSight is not then in default hereunder, HomeSight may proceed with foreclosure or such other remedy as HomeSight in its sole discretion deems appropriate, and the Homebuyer Note shall be returned to HomeSight by King County when required for such purposes; (c) assignments for security purposes of deeds of trust securing all Loans, recorded immediately after each such deed of trust is recorded, and subject to no liens or encumbrances on HomeSight's interest as beneficiary; and (d) assignments for security purposes of all bank accounts, moneys, investments, and receivables derived from the Loans or from the Funds (with the exception of any such bank accounts, moneys, investments, and receivables containing solely l>:'i .-~,.tc()thcr Funds), perfected in such manner as King County shall require and subject to no liens or encumbrances. HomeSight agrees it will not pledge any property or Funds that secures the Master Promissc;:'y Note as collateral. For each bank account, HomeSight, County and a Depository Institution shall execute a Blocked Account Control Agreement in a form acceptable to County. For each Loan originated under this Agreement, HomeSight shall also deliver the original Homebuyer Note and an unrecorded assignment to County for the related Deed of Trust for security purposes within ten (10) business days of the Loan closing. For each Loan,'HomeSight shall obtain a Deed of Trust and Deed of Trust Note as set forth in Exhibits E 1 and E2. The Master Note shall be a general obligation of HomeSight. If, however, HomeSight delivers to King County, prior to the maturity date of the Master Note, the, items (a) through (g) in subsection C (1) below, in accordance with subsection C (2), HomeSight shall be relieved of any further obligations under the Master Note; the Master Note shall be deemed paid in full; and all obligations of HomeSight thereunder satisfied. (1) The items to be delivered are as follows: (a) All Funds in HomeSight's possession or control, including without limitation the accounts (with the exception of any accounts holding only ?:-iv~,.,,c( }th~? Funds) maintained hereunder; Subrecipient/Master Loan Agreement -Septcmbc:~ Page 7 (b) All promissory notes and documents for all outstanding Loans (with the exception of such notes or documents relating solely to PrivateOthc~ Funds), duly endorsed in favor of King County, absolutely but without recourse; (c) A recorded absolute assignment of all deeds of trust for such outstanding Loans; (d) All title insurance policies and other evidence of insurance for the properties subject to such deeds of trust; (e) Special warranty deeds to any real property, and bills of sale for any personal property, received and held by HomeSight in full or partial satisfaction of any Loan or as a result of foreclosure thereof; and (f) Absolute assignment to 'King County of all other claims, rights, demands and things in action arising or that may arise out of the Loans; and (g) ___Wva-itten certification from HomeSight that: (i) HomeSight used the Funds only for Loans as authorized heretmder, and for costs of loan origination and servicing to the extent permitted hereunder; (ii) HomeSight deposited all amounts paid on Loans and all other receipts attributable to Loans, including without limitation any proceeds of collateral for Loans, in the accounts required pursuant to this Agreement, and no withdrawal or payment from such accounts was made contrary to the terms of this Agreement; and (iii) HomeSight did not impair the value of any security for any Loan by any action contrary to the terms of this Agreement. The conditions to HomeSight's right to satisfy the Master Note by such delivery are: (a) HomeSight shall have used all Funds only for Loans as authorized hereunder, and costs of loan origination and servicing to the extent pe. rmitted hereunder. Subrecipient/Master Loan Agreement-September 16, 2003Awgu-at 2513, 200?. Page 2.2 (b) HomeSight shall have deposited all amounts paid on Loans and all other receipts attributable to Loans, in the accounts required pursuant to this Agreement, and no withdrawal or payment from such accounts shall have been made contrary to the terms hereof. (c) HomeSight shall not have impaired the value of any security for any Loan by any action contrary to the terms of this Agreement. (d) HomeSight shall not exercise this option until the first Loan originated by HomeSight under an Existing Contract becomes amortizing. (e) HomeSight is not in default under this Agreement. (3) Satisfaction of the Master Note shall not relieve HomeSight of any liability, other than payment of the Master Note, arising from HomeSight's breach of any terms or conditions under this Agreement. Use of Funds. HomeSight shall use Funds only for Loans to Eligible Homebuyers for Qualifying Homes, as described herein, except as expressly set forth in Section 2.8 below. mo HomeSight shall make Loans to Eligible Homebuyers to provide homeownership assistance for the purchase of Qualifying Homes. The amount of each Loan shall not exceed the amount necessary, together with any other subsidy, to provide affordable housing. The amount of each Loan shall also be consistent with the limit for homebuyer assistance loans as approved in writing by King County. The current limit for homebuyer loans is $25,000.00. as established in 1998. This loan limit may be changed by amending this agreement as set forth in Section 3.8 and fF-uture increases to the loan limit will be based on chan¢es in home sale prices, market conditions and homebuver affordabilitv analysis. HomeSight shall perform all the activities identified in Exhibit C1 - C-3, attached to this Agreement and incorporated by reference, in accordance with the schedule and budget set forth in Exhibit D, as the same may be modified with the express written approval of King County, which approval shall not be unreasonably withheld. HomeSight has established the Committee to assist HomeSight in developing PSRFL loan policies and administering the PSRLF. '! hc ( ~l//llil{It_'C ~!l;lll ,1;tx: i I)1;I Xllll[ll,~ IllClllt Cl:-~ lid ~}1' I :~ Subrecipient/Master Loan Agreement-:g, ~t~:~,l,.: t0..!,.)(;:; ' ......... '~ ~ '~ "~'~ P~e9 Do Eo Fo mcml)crshil~ of nine (9) mcmbcrx. I lmncSi~ht sh~ll convene ~hc initial sczilinu of Ihc Committee no late,' than March 2004. King.County and the other Participating Suburban Jurisdictions shall select two members of the Committee, subject to HomeSight approval, which approval shall not be unreasonably withheld. Nominees must conform to eligibility and conflict of interest requirements of U.S. Treasury (CDFI), Washington State - Department of Financial Institutions (DFI), HUD and other applicable regulations. The Committee shall meet no less frequently than quarterly. HomeSight shall provide staff support to the ¢Committee. HomeSight shall provide the Committee at such quarterly meetings a report containing the following information: (i) number of loans made; (ii) portfolio value; (iii) fund balance by sources: (iv) income of homeowners; and (v) information contained on the HUD 9902 form; (vi) delinquency reports; and (vii) forbearance agreements. HomeSight shall provide King County .and Participating Suburban Jurisdictions with the quarterly reports provided to the Committee and any loan policies developed by the Committee and adopted by the HomeSight Bbard. HomeSight shall implement the Program consistent with (i) the Program Description (Exhibit C 1 to this Agreement) or any amendment or successor program description approved in writing by King County for purposes of this Agreement; (ii) this Agreement; and (iii) with all federal HOME and CDBG program regulations. If any element of the Program Description should conflict with the other provisions set forth or referred to in this Agreement, including without limitation any applicable HOME or CDBG program regulations, the terms of the Program Description shall be considered modified to the extent necessary to remove such conflict. HomeSight's loan documents for all Loans utilizing HOME Funds shall include provisions consistent with the "recapture" provisions of 24 CFR Section 92.254 and King County's HOME Program Policies within King County's Consolidated Plan. All Loan documents must allow the lender to recapture HOME program income, if at any time during the Loan term, the home does not continue to be the principal residence of the Family. HomeSight shall enforce the recapture provisions of the Loan documents. If HuD determines that the Family did not qualify as an Eligible Homebuyer, HomeSight shall repay King County the Principal, interest and any shared appreciation for the unauthorized Loan. HomeSight shall also be required to repay to King County Principal, interest and any shared appreciation if the Loan documents did not allow recapture of HOME program income as described above. If King County receives an audit finding from HUD related to the SMLA, King County shall notify ttomeSight within ten (10) business of the audit finding. HomeSight shall be responsible for the marketing of the loan program, processing of Loan applications, consummation of Loan transactions, servicing and collection of Loans, and other Loan administration including Subrecipient/Master Loan Agreement-September 16. 200,gA~gu:;t '2~!3, 2003 Page i0 I initiating foreclosure proceedings if necessary, and for compliance with all legal requirements of such activities, including without limitation all laws and regulations regarding Fair Housing, Equal Credit Opportunity, Truth- in-Lending, consumer protection, Real Estate Settlement Procedures, usury, tax reporting, and debt collection practices. Go HomeSight shall indemnify and hold harmless King County and its officers and employees from and against any claim, demand, loss, damage or expense arising out of any failure of HomeSight to comply with any legal requirement in connection with this Agreement. This indemnity provision shall survive any termination or expiration of this Agreement. '1. Over =,, ..... 7 ~-~ch,- fi vetlu'ee (3) year., period, beginning, , January., 1,. 2004. l tomeSight shall oriainate Loans in each Participating Suburban Jurisdiction in numbers equivalent to that Participating Suburban .lurisdiction's proportional share of the funds awarded to HomeSight the Kine County First t-tome Program of the PSRLF. Loans 2mded with '[ IOME Funds shall be distributed to Participating Suburban .lurisdicticms and unincorporated South Kine County accord iag to market demands.. The proportional share percentages shatl be established based on the amount of Ft~'unds awarded by the Participating Suburban Jurisdictions. including King County's HOME Funds, as of October December 31. Nc;vember l~ 2003 and shall be set forth in Exhibit G. Every three (3') years King County' shall revise Exhibit G effective January I if any .Participating Suburban Jurisdiction or a nexx. South Kina County suburban .jurisdiction has awarded CDBG Funds or HOME fimds to the first Homes Program in the prior three years. In order to maximize the number of Loans originated by t:unds. t lomeSight's shall also use a portion of its ()ther Funds to originate Loans in South Kin~ County 4. In order' to balance the percentaecs under this subsection, tlomcSiaht's Other Funds shall be used to orieinate Loans when necessary to satist:}' the requirement of proportional shares of [.oans. To the extent ()lher Funds arc used to fulfill this rccluirement their use shall be consistent with thc I~SRI,I:: [hi.sincss Plan and the requirements of private investors lo mefintain thc financiz~l intem'itv ~1' thc PSRI_I: as determined by thc Committee. 2.3 Affordability. Subrecipient/Master Loan Agreement -September 16. 2003Augu,~t 25!3, 2093 Page Ii 2.4 mo HOME - Funded Loans. HomeSight's loan documents will require, and HomeSight shall ensure, that all housing assisted with HOME Funds meet requirements of HOME regulations, including 24 CFR Sections 92.217 and 92.254. CDBG - Funded Loans. Loans of CDBG Funds shall be made only for purchase of homes that are affordable under the same standard applicable for Loans of HOME funds. Loans Made with Local Funds. Loans with Local Funds shall be made for homes that qualify under program policies of King County. Do Loans Using Multiple Sources. In making Loans using more than one of the above sources, HomeSight shall comply with the strictest of the affordability standards applicable. Receipts; Accounts; Interest. mo Until such time as King County shall otherwise direct, all Receipts shall be retained by HomeSight for the revolving loan fund in South King County and, except as provided in Section 2.8 below, shall be used solely to make Loans according to the requirements of this Agreement. HomeSight shall either (i) maintain separate bank accounts identified on bank records as securing the Master Loan for the benefit of King County, each at a bank located in King County, for Receipts derived from HOME Funds, CDBG Funds, and Local Funds, or (ii) establish an accounting system acceptable to King County in its reasonable discretion to separately track and identify all such Receipts and the sources from which they were derived, provided however, that all HOME Funds shall be maintained in a separate bank account. Either (i) two signatures of authorized HomeSight officers or directors, or (ii) the signature of any one HomeSight officer and director and the signature of the HomeSight executive director or deputy director shall be required for any disbursement. Disbursements must also comply with Section 2.8 of this Agreement. Each account shall be subject to an agreement signed by the bank perfecting King County's first priority security interest in the account, in form and content acceptable to the County, and under which the County shall have the right to terminate or suspend further withdrawals by HomeSight at any time, provided however that the County shall not exercise such right except in the event of a default by HomeSight under the terms of this Agreement. HomeSight shall ensure that Receipts from each such account are used strictly in accordance with the same requirements of this Agreement and applicable regulations that apply to Loans from the respective original fund sources, including without limitation applicable requirements governing HOME funds under 24 CFR Part 92. Subrecipient/Master Loan Agreement -September 16. 2OO3Au-gust 251 Page 12 2.5 2.6 HomeSight shall use any balance of Receipts originally from HOME or CDBG Funds for Loans, prior to drawing any additional HOME or CDBG Funds for such Loan from the 2000-20001 Awarded Funds. If a HUD audit determines that the retention of HOME Receipts hereunder by HomeSight is inconsistent with HOME laws or regulations, or HUD policies for the HOME Program, the County shall have the right to require the entire balance of the account maintained for HOME Funds be paid immediately to the County or to require that all further HOME Receipts be paid to the County as received or both. The County agrees to challenge any HUD audit finding prior to exercising its rights under this subsection. If King County receives an audit finding from HUD related to the SMLA, King County shall notify HomeSight within ten (10) business days of the audit finding. Reversion of Assets. Upon expiration or termination of the Agreement, HomeSight must transfer immediately to County any HOME Funds and CDBG Funds on hand at the time of expiration, including all Receipts; any accounts receivable attributable to the use of HOME Funds and CDBG Funds, including without limitation outstanding Loans and all documents evidencing such Loans, properly endorsed by HomeSight in favor of King County, without recourse, and any guarantees thereof. Such Funds, and the principal amounts outstanding on Loans properly assigned, shall be credited to the balance owing on the Master Note. In accordance with the applicable Community Development Block Grant Intcrlocal Cooperation Agreements.. King Cotmt¥' shall disburse to the Participating Suburban Jurisdictions any CDBG Receipts transfel¥cd from HomeSight Records and Reports. Ao HomeSight shall maintain a separate file for each Loan. The file must contain the property address including zip code; number of bedrooms in unit; owner name, address, and phone number; form of ownership; type of project; number of units if not single family; and household characteristics including income and percent of median income, household type, purchase price, interest rate and mortgage amount, family size, racial and ethnic group of household members and whether there is a single head of household (including sex thereof), disability if information is volunteered by a Loan applicant, and a listing of all costs and sources of funds related to the purchase. Each file must contain all of the following: Loan Application (which shall include information showing first-time homebuyer status); Income and family size certification, and supporting documents; Subrecipient/Master Loan Agreement-September 16, 2003Augu:;t 2513, 200g Page 13 I Copy of Purchase Agreement; Copy of Promissory Note (original shall be delivered to King County to hold for security purposes only); Deed of Trust (or other appropriate security instruments in the case of any manufactured home that is not real property); Truth-in-Lending Statements with acknowledgements of receipt by all borrowers; Appraisal of home purchased and evidence of borrower's receipt of a copy thereof; Credit Report; Closing statement for purchase of home (HUD form), with the First Homes Program Loan amount listed separately; Title Insurance Policy in favor of HomeSight in the Loan amount (Lender's Coverage, showing no liens prior to the Deed of Trust for the Loan except as permitted under this Agreement); To the extent required by HUD, lead-based paint report for the home (if any portion was built before 1978); Disclosure statement signed by the Homebuyer concerning lead-based paint poisoning if the building in which the purchased unit is located was constructed prior to 1978; Records demonstrating that the purchased unit meets applicable housing code and housing quality standards; Documents showing compliance with the property value requirements for affordable housing, including the initial purchase price and appraised value after rehabilitation if applicable; Documents showing that the combination of federal assistance and any other subsidy is consistent with the applicable Fund source underwriting standards; and With respect to the use of CDBG Funds (other than CDBG Receipts) and HOME Funds, documentation demonstrating compliance with federal displacement, relocation and acquisition requirements; and Subrecipient/Master Loan Agreement Page 14 Annual verification of continued occupancy of the property by the Homebuyer. HomeSight shall maintain a separate file for each Loan applicant to whom a Loan is not made. Such file shall include: Loan Application; Denial letter complying with equal credit opportunity laws; Demographic information on applicant; Any correspondence from applicant; Credit report (if obtained); Underwriting worksheet indicating that the Loan is consistent with the applicable Fund source underwriting standards; and Copy of inspection report. HomeSight shall keep on file all approved loan packages. Within sixty (00) davs.{!i~ thc end of each quarter. HomeSight shall deliver to ~ng County and the Pa~icipating Suburban Jurisdictions within s~xtv r~,~,.~,,, ~..~ ........ ..~.c ~,,~'~ ........ ~,,.,~ ~,c,.,....,.~' q~:arte:' a repo~, in a fo~ acceptable to ~ng CounW, which documents the number of Loans made in each Partici paring Subttrban -'s-'-" , ..... ';'; .... ; .... t::'i'zdi _ · ht~d~ct~orh ....... t ....... ~ j ction in the prior queer, the dollar mount of the Loans, income information of the Eligible Homebuyer, and demographic info~ation on the Homebuyer, purch~e price of the homes, number of bedrooms~ '~"' ~" monllll¥ moagage mount and interest rate on first, and if applicable, second mo~gage, and other info~ation, ~ required by King Co~ty (for reposing to HUD.). HomeSight shall also deliver to ~ng County and to the Commi~ee on a qua~erly b~is a fiscal repo~ in a fo~at acceptable to King County of Loan payments (and any other Receipts), account balances and how Receipts were used. Before using any new Funds, HomeSight must repo~, in a fo~ acceptable to King County, info~ation on Loans made from Receipts and on demographic and household info~ation of the Eligible Homebuyers of such Loans. Overall program records maintained by HomeSight must document affirmative marketing, equal opportunity, and compliance with conflict' of interest requirements. Subrecipient/Master Loan Agreement-,'<~.-t)tc, l~ti),:~ I(,. 2t)t)i;z~',~g~;t 2:._.~_t3 2(~(~:; Page 15 I 2.7 HomeSight shall deliver all Loan files to King County upon termination of this Agreement, and if King County shall require assignment of any Loans to King County prior to the termination of this Agreement, then HomeSight shall promptly deliver all the files on such Loans to King County. Program records not delivered to King County shall be maintained for five years after the termination of this Agreement. Go HomeSight shall establish and maintain, on a current basis, Program records and an adequate accounting system in accordance with generally accepted accounting standards. The Funds shall be restricted in HomeSight's financial records and shown as restricted funds in HomeSight's annual financial audit. HomeSight shall notify County of any event that results in the acceleration of any indebtedness of HomeSight to a party or parties. HomeSight shall have a single financial audit conducted for each calendar year beginning 2002 and ending with the year in which this Agreement shall terminate, and shall deliver a copy to King County no later than one hundred eighty (180) days after the end of the year under audit. HomeSight shall retain all records; except those delivered to King County, for at least five (5) years after the date of termination of this Agreement. HomeSight shall make available for inspections its performance, financial and all other records pertaining to the performance of this Agreement to authorized County, and Federal personnel, and allow said personnel to inspect and monitor its facilities and program operations, including the interview of HomeSight' s staff and program participants as such personnel may deem necessary to enable King County and Federal officials to fulfill their obligations to insure compliance with all applicable laws.. If HomeSight shall provide any statutory notice to commence foreclosure proceedings, or any notice of trustee's sale, or if HomeSight shall commence any legal action against a borrower or for foreclosure of the security for any Loan, HomeSight shall provide a copy of such notice, or the complaint in case of any legal action, to King County at the same time as it is first provided or sent to the borrower or property owner, recorded, or filed with a court, whichever is earliest. IfHomeSight shall receive notice from any other holder of a lien on any home for which a Loan is made, of any intent to foreclose, trustee's sale, or legal action to foreclose such lien, HomeSight shall within ten (10) business days provide a copy of such notice to King County. If so requested by King County, HomeSight shall provide copies to King County of further documents in any proceeding of the type referred to in this subsection, promptly upon HomeSight's receipt or delivery thereof, as applicable. Enforcement of Program Requirements and Agreement. Subrecipient/Master Loan Agreement-~eptcmbcr 16, 2003Augu.';t 25!3, Page 16 2.8 HomeSight shall enforce HOME and CDBG program requirements. HomeSight shall, for each Loan, obtain from the borrower and enforce a promissory note, recorded deed of trust, and an agreement incorporating HOME and CDBG program requirements, all of which shall be consistent with the terms of this Agreement and applicable laws. The deed of trust shall be in second or third lien position and shall not be subordinate to any debt except for a first mortgage loan from an institutional lender and, if applicable, any additional homeownership assistance loan under a program approved by King County that requires second lien position. If the homebuyer violates any of the HOME and CDBG program requirements the HomeBuyer note and HomeBuyer deed of trust shall become immediately due and payable, at the option of the Holder of the Note. If HomeSight elects to not cause the note and deed of trust to become immediately payable, HomeSight shall provide a substitute Loan to King County that is substantially equivalent in terms and value. HomeSight shall deliver to King County the forms of all documents intended to be signed by homebuyers as part of the Program, including any modifications of prior forms, at least fifteen (15) business days before such forms are used. If HomeSight is requesting material modification of prior forms, HomeSight shall include a description of the requested changes and the basis for the requested change. HomeSight shall promptly make any revisions to such forms that King County may reasonably require; however, HomeSight shall be responsible for the legality of all documents used and their sufficiency to implement the Program. If, after review, King County fails to request revisions HomeSight shall not be in default for using the documents. Loan Origination and Servicing Costs. Subject to the terms of this Agreement and applicable laws and regulations, HomeSight may use Receipts for its direct costs of loan origination and servicing in a total amount of $50 per year per Loan during the period when no installments on the Loan are required and 10% of the Receipts received from scheduled installments of principal and interest, and any late charges, paid by the Eligible Homebuyer on each Loan each year once payments on the Loan begin. Commencing in 2005, and then every five years thereafter, the parties shall review the costs for loan origination and servicing costs. Upon mutual agreement of HomeSight and County, the servicing costs authorized under this Agreement may be modified to reflect HomeSight's costs of servicing and/or prevailing servicing costs for similar programs. County shall not unreasonably withhold its consent to reasonable servicing cost modifications. Prior to applying any Funds to costs of loan origination and servicing, HomeSight shall deliver to King County an itemized statement of the expenses and any supporting documentation that King County may Subrecipient/Master Loan Agreement -September 16. 2003Augu:;t ''~-_v.v,~ ~ 2003 Page 17 I 2.9 2.10 require, together with the proposed amounts to be paid from each type of Receipts and the current balance in the account that will pay the expenditure. Upon receipt of King County's written approval of the itemized statement HomeSight may apply such Funds to the listed expenses. Servicing costs shall be paid annually in December until the first Loan originated under an Existing Contract becomes amortizing. After that time HomeSight, at its option, may pay servicing costs quarterly or annually from the Loan Receipts. HomeSight shall establish a reserve fund with Local Fund Receipts to pay Loan servicing and origination costs when Loans are non-amortizing. Once Loans begin to amortize, the reserve fund may be used to originate additional Loans. HomeSight shall provide servicing activities under this Agreement. The servicing activities are listed on Exhibit C~3. Separate Records and Funds. -HomeSight shall promptly deposit all Receipts in bank accounts approved by King County, consistent with Section 2.4 above. HomeSight shall not commingle any Funds or Receipts with any other assets of HomeSight. HomeSight shall not commingle HOME Funds with any other Funds. HomeSight shall maintain separate records for the expenditure of each of the above categories of Funds and HomeSight assets. HomeSight shall maintain such records as are necessary to distinguish the use of CDBG Receipts from the use of any other Funds. Modifications, Consents, Releases, Subordinations. mo HomeSight shall not, without the express written consent of King County or the Committee agree to or permit any of the following: the release of any person liable or the release, compromise, subordination, extension, or assumption or material modification or waiver of the terms of any Loan, any security for a Loan, or any of the documents or agreements by which any person is bound in connection with a Loan unless such action is authorized by this Agreement or by the policies adopted by the Committee. The Committee shall only subordinate Loans in a manner consistent with the Subordination Policy. In regard to Loans made with HOME Funds and HOME Receipts, the policies and actions of the Committee must be consistent with the requirements of the HOME Program. HomeSight shall cause a full re-conveyance of deed of trust to be executed and recorded upon full payment of all amounts secured thereby. Unless King County shall have given notice to HomeSight that HomeSight is in Subrecipient/Master Loan Agreement-September 16. 2003August ~c~ q om~ Page i 8 breach or default hereunder or that King County has elected to terminate this Agreement, HomeSight shall have the following rights: HomeSight may grant extensions for payment of installments, and may waive late charges, or default interest, or both, on condition that some or all past due installments be paid. HomeSight may allow assumption of a Loan by a new owner-occupant in circumstances when HomeSight would not be permitted by applicable law to require full payment or, to the extent permitted by applicable laws and regulations, in any other circumstances in which the home is purchased by an Eligible Homebuyer for a price consistent with the affordability requirements of Section 2.3 above and the definition of "Modest Housing". HomeSight may also, if a Loan is not in default, subordinate the security for a Loan to a new first mortgage loan or other homeownership assistance loan consistent with the Subordination Policy. After any notice from King County to HomeSight that HomeSight is in default or that this Agreement is being terminated, HomeSight shall not take any 'of the foregoing actions without the express written approval of King County. 2.11 Prior Notice of Transfer. At least fifteen (15) business days prior to the sale or transfer any Loan Assets, HomeSight shall notify King County in writing of such proposed sale or transfer. HomeSight shall not sell or transfer any Loan Assets at any time when there is an uncured default by HomeSight under this Agreement. Any sale (other than for an amount equal to the face value of the Loan), or transfer of a Loan, unless otherwise expressly agreed by King County, shall be subject to the security interest of King County therein. 2.12 Certain Commitments and Loans Prohibited. HomeSight shall not, without the express written consent of King County consistent with 92.504 (2), make a commitment to any developer, seller or any affiliate, to provide Loans to purchasers of homes built or sold by such developer or seller. _~. 13 l<Lintz Cotmtv l"irst t:lomcs l~l'O~rcllll mo sh~rcs will l)c scl. as I l~m~c.s l"rotzram by t~xs.;u'cling ('l)B(i t.und:s to 1 Io~llcSi~hl. /\~mu~.dl'~. an,, l'articipatin~ .Suburban .Ira isdictism re;ts ~,,vmd to 1 l~.m~c,";i,.z, ht ;tdditio~d n~(mc¥ t'~r thc l(inu Cout~t', l"i~'st 1 l~,mc.~ Ih-om'urn. When any addili~)n;tl Subrecipient/Master Loan Agreement-.%.'cptcmbt:r 16. 2tJO.~,Au,g~i:;t 25 !3, 20(Xt P~el9 I'unds arc axsardcd to 1 lomcSight. King ('oumv shall amend [.xhibi! l) lo reflect additional Loans that ,.xill bc origimltcd t,,, I lomc%ight in th{,sc Participating Suburban .lm'isdictim~.~ axxardin,3 I:m<ls. I:),. \\"hcl~ additional Funds arc awarded as described in 2.13(A). thc proportional shares in Exhibit G will only bc rex iscd cx,'erv three (3) years pursuant to Section 2.2(l-t). Not later than January 1, 2006. and every tlu-ee years thereafter, thc Committee shall review the proportional shares of tl~e PSRLt' and market condition, and make recommendations to Kin~ County and thc Participating Suburban Jurisdictions on fl~ture distributions of thc I)SRI .F. iucluding whether additional participation is warranted based on interest and market demand. D. If l-lomcSid'~t applies to new South Kint~ County suburban }uri sdictions or Participating Suburban Jurisdictions for additional CDBG Funds or HOME Funds. HomeSi,,,ht shall notify Kin,,4 County and the Particil;ati,~g Suburban Jurisdictions. HomeSight shall also notil\: King Count5 and the Participating Suburban Jurisdictions if additional l:unds are awarded for tim First Homes Program with ten business days ,,\nY party or any Participating Suburban Jurisdiction ma_3,' propose an amendment to this Section (2.13). The parties and the Participatine Suburban Jurisdictions shall work toward consensus on any amendment. consensus cannot be reached, this Section shall only be amended upon an acceptance by the parties and a maioritv of the Participating. Suburban Jurisdictions based on their proportional shares in the First Homes Program. 3.1 PART III. GENERAL PROVISIONS Duration of Agreement This agreement shall take effect as of the Effective Date and shall continue through the date which is twenty years after the Effective Date, or until this Agreement is terminated in accordance with its terms, whichever occurs first, provided however, that if HomeSight is in full compliance with the terms hereof, HomeSight shall have the option, by written notice to King County given not more than six months nor less than three months prior to the termination date stated above, to extend the term of this Agreement for an additional ten (10) year period. All terms and conditions set forth herein shall apply to this extension period, except there shall be no option for further extension. The effective period of time for compliance with all conditions contained in this Agreement, and any amendments thereto, shall begin in the month that the first Subrecipient/Master Loan Agreement -September 16, 2000, ,us .... __2513. ~2003 Page 20 I 3.2 Loan is made, and shall terminate at the end of the month that the last outstanding Loan made to any borrower directly or indirectly using any Funds is no longer outstanding. Indemnity and Liability, At HomeSight agrees to indemnify and hold harmless King County and its officers, employees and assigns, against all.claims arising from the acts, omissions, or negligence of HomeSight, its officers or employees under this Agreement. ItomeSight waives, solely with respect to County, its immunity under RCW Title 51, Industrial Insurance. HomeSight and acknowledges that this waiver has been specifically negotiated and that County would not enter into this Agreement absent this waiver. This indemnity provision shall survive any termination or expiration of this Agreement. In providing services under this Agreement, HomeSight is an independent Contractor, and neither it nor its officers, agents, or employees are employees of King County for any purpose. HomeSight shall be responsible for all federal and/or state tax, industrial insurance, and Social Security liability that may result from the performance of and compensation for these services and shall make no claim of career service or civil service rights which may accrue to a County employee under state or local law. Co King County assumes no responsibility for the payment of any compensation, wages, benefits, or taxes, by, or on behalfofHomeSight, its employees, and/or others by reason of this Agreement. HomeSight Shall protect, indemnify, and save harmless King County, its officers, agents, and employees from and against any and all claims, costs, and/or losses whatsoever occurring or resulting from (1) HomeSight's failure to pay any such compensation, wages, benefits, or taxes, and/or (2) the supplying to HomeSight of work, services, materials, or supplies by HomeSight employees or other suppliers in connection with or support of the performance of this Agreement. This indemnity provision shall survive any termination or expiration of this Agreement. King County will protect, defend, indemnify, and save harmless HomeSight, its officers, employees, and agents from any and all costs, claims, judgments, and/or awards of damages, arising out of, or in any way resulting from, the sole negligent acts or omissions of King County, its officers, employees, or agents. King County agrees that its obligations under this subparagraph extends to any claim, demand, and/or cause of action brought by, or on behalf of, any of its employees or agents. For this purpose, King County, by mutual negotiation, hereby waives, as respects HomeSight only, any immunity that would otherwise be available against Subrecipient/Master Loan Agreement-Scptelnbcr 16. 2003Augu,st 2S13, 22003 Page 21 3.3 3.4 3.5 such claims under the Industrial Insurance provisions of Title 51 RCW. the event, HomeSight incurs any judgment, award, and/or cost arising therefrom including attorneys' fees to enforce the provisions of this article, all such fees, expenses, and costs shall be recoverable from King County. This indemnity provision shall survive any termination or expiration of this Agreement. Claims shall include, but not be limited to, assertions that use or transfer of software, book, document, report, film, tape, or sound reproduction or material of any kind, delivered heretmder, constitutes an infringement of any copyright, patent, trademark, trade name, and/or otherwise results in unfair trade practice. Compliance with Statues and Regulations. In the performance of this Agreement, HomeSight shall obey and comply with all laws of the United States, the State of Washington and the ordinances, regulations, policies and code, of King County. Remedies of County In the event of breach of this Agreement by HomeSight, in addition to the fights set forth in this Agreement, King County shall have all remedies available at law or in equity, including damages and injunctive relief. In King County's ,remedies under this Agreement are cumulative; the failure to exercise on any occasion any fight shall not operate to forfeit such fight on another occasion. The use of one remedy shall not be taken to exclude or waive the right to use another. If King County determines that any Funds or Receipts have been applied to purposes other than Loans to Eligible Homebuyers authorized hereunder and eligible costs of loan servicing, or that Funds or Receipts were used for such costs in excess of amounts permitted hereunder, then HomeSight shall reimburse King County the amount of Funds determined to have been improperly used upon written demand. This provision shall survive any termination or expiration of this Agreement. Default and Corrective Action Default by HomeSigh_t. If King County determines that a breach of the Agreement has occurred because HomeSight failed to comply with any material terms or conditions of this Agreement or HomeSight has failed to provide in any manner the work or services agreed to and if King County Ap Subrecipient/Master Loan Agreement-September 16. 2003A'ag'~.~t ~c~ '~ ~nt~-~ Page 22 [ deems said breach to warrant corrective action, the following sequential procedure will apply: King County will notify HomeSight in writing of the nature of the breach and designate a date to meet with HomeSight to consult on a Corrective Action Plan. This date shall be within six (6) business days of receipt of the notice by HomeSight; 2. HomeSight shall submit a plan describing the specific steps being taken to correct the specified deficiencies ("Corrective Action Plan"). HomeSight may consult with King County in developing the Corrective Action Plan. The Corrective Action Plan shall be submitted to King County within ten (10) business days from the date of the meeting between HomeSight and King G~<~n~¥ ~Countv or HomeSight's receipt of King County's notice under this Section~ which ever is later. The Corrective Action Plan shall specify the proposed completion date for bringing the Agreement into compliance, which completion date shall not be more than thirty (30) days from the date King County receives HomeSight's Corrective Action Plan, unless King County, in its sole discretion, in writing extends the number of days to complete the Corrective Action Plan. 3. Upon receipt of the proposed Corrective Action Plan, King County will notify HomeSight ora date to meet and discuss any issues related to the proposed Corrective Action Plan. This meeting shall occur within five (5) business days of King County's receipt of the proposed Corrective Action Plan. King County may, at King County's sole discretion, allow HomeSight to submit a revised Corrective Action Plan, provided such Corrective Action Plan is received within five business days from the date of the meeting. Within ten (10) business days of King County's receipt of the Corrective Action Plan, King County will notify HomeSight of King County's determination as to the sufficiency of the Plan. If King County has allowed HomeSight to submit a revised Corrective Action Plan, within ten (10) business days of King County's receipt of the revised Corrective Action Plan. King County will notify HomeSight in writing of King County's determination as to the sufficiency of the revised Corrective Action Plan. The determination of sufficiency of the Corrective Action Plan or revised Corrective Action Plan shall be at the sole discretion of King County Subrecipient/Master Loan Agreement -Sc ptc ~a tl ,c:~ I ~. 2()1)i'~/\ [~ gu~;: ' ~_ 5 [ 3, '20()3 Page 23 I 3.6 o __HomeSight shall act to complete the approved Corrective Action Plan within the time designated in the approved Corrective Action Plan.: Failure to complete the approved Corrective Action Plan within the designated time shall constitute a material breach of this Agreement. An5: extension of time desienated for completion of the approved Corrective Action Plan shall be at the sole discretion 9f King County. Termination of Agreement. In the event that 1) HomeSight does not respond within the appropriate time with a Corrective Action Plan, 2) HomeSight's Corrective Action Plan is determined by King County to be insufficient, or 3) HomeSight does not complete the Corrective a_Action Plan with the authorized time period, King County may commence termination of this Agreement in whole or in part pursuant to the termination section below. Co Effect on Funds of Notice of Corrective Action. King County may provide the Depository Institution(s) holding Funds notice of the breach of this Agreement and request that no further disbursements from the accounts be allowed without County written authorization until a satisfactory Corrective Action Plan is provided by HomeSight and completed. King County shall notify the Appropriate Depository Institution(s) when the Corrective Action Plan has been completed and County approval for disbursements is no longer required. Do No Waiver of Other Remedies. Nothing herein shall be deemed to affect or waive any rights the parties may have pursuant to this Agreement or other remedies authorized by law. TERMINATION A. Termination for Convenience. This Agreement may be terminated by King County without cause, in whole or in part, prior to the Termination Date by providing HomeSight one hundred and twenty (120) days advance written notice of the termination, provided King County may not terminate this Agreement until the first Loan originated under the Existing Contract becomes amortizing. HomeSight shall have the ability to terminate this Agreement upon one hundred and twenty (120) days written notice to King County, provided HomeSight may not terminate this Agreement until the first Loan originated under the Existing Contract becomes amortizing or if HomeSight is in breach of this Agreement. Subrecipient/Master Loan Agreement-September Page 24 Bo o If the Agreement is terminated for convenience by either HomeSight or County, (1) King County will be liable only for payment in accordance with the terms of this Agreement for services rendered prior to the effective date of termination; (2) HomeSight shall be released from any obligation to provide such further services pursuant to the Agreement as are affected by the termination. (3) HomeSight shall deliver to County all docmnents, files and records or copies thereof pertaining to any work that may be in progress, and (4) the Master Note shall become immediately due and payable upon such termination. Termination for Cause. King County may terminate this Agreement, in whole or in part, upon seven (7) business days advance written notice to HomeSight, in the event: (1) HomeSight materially breaches any duty, obligation, or service required pursuant to this Agreement and such breach has not been cured by a Corrective Action Plan acceptable to County or (2) the duties, obligations, or services required herein become impossible, illegal, or not feasible. The following shall be presumed to constitute a material breach of this Agreement: [a) Any default on the Master Note; lb) Any failure on the part of HomeSight to carry out in a substantial manner any of the actions required by this Agreement; [c) Any improper or illegal use of Funds or Receipts; [d) Provision by or on behalf of HomeSight of any materials, information, reports or documentation that are materially incomplete, incorrect or false, either knowingly or inadvertently, provided that this does not include materials, information, reports or documentation provided to HomeSight from third parties, (including Eligible Homebuyers) or materials, information, reports or documentation prepared by HomeSight based upon incomplete, incorrect or false information, reports or documentation provided to HomeSight from third parties, (including Eligible Homebuyers); or [el Any failure to resolve audit findings associated with this Agreement in the time frame prescribed by the auditors or, Subrecipient/Master Loan Agreement -September 16. 2003Auguzt 25 ! 3. 2003 P~e25 o o if no timeframe is identified, by the auditor, within a reasonable time as agreed to by King County and HomeSight. Failure of HomeSight to respond to the Notice of Breach or to complete the Approved Corrective Action Plan approved_d by King County. If the termination results from acts or omissions of HomeSight, including but not limited to misappropriation, nonperformance of required services, or fiscal mismanagement, HomeSight shall return to King County immediately all collateral identified in the Security Agreement First Homes Program and any Funds, misappropriated or unexpended, which have been paid to the HomeSight by King County. If the Agreement is terminated as provided in this Subsection: (1) King County will be liable only for payment in accordance with the terms of this Agreement for services rendered prior to the effective date ofternfination; (2) HomeSight shall be released from any obligation to provide such further services pursuant to the Agreement as are affected by the termination, (3) HomeSight shall deliver to County all documents, files and records or copies thereof pertaining to any work that may be in progress, and (4) the Master Note shall become immediately due and payable upon such termination. If the Agreement is terminated as provided in this Subsection, County shall also notify the Depository Institution(s) holding Funds of King County's decision to terminate the Agreement for cause. HomeSight agrees that upon receipt of this notice King County may request that the Depository Institution may honor County's directions consistent with the Blocked Account Control Agreement. Upon notice of termination for cause, HomeSight agrees that King County shall be free to execute on its collateral pursuant to the Security Agreement and King County shall be entitled to the Funds held by any Depository Institution shall be paid to King County pursuant to the Control Agreement. HomeSight also agrees that King County shall be authorized to record the assignments of the Notes and Deeds of Trust upon notice of termination for cause. Upon notice of termination for cause, the parties agree that 2000- 2001 Awarded Funds that have not been disbursed to HomeSight Subrecipient/Master Loan Agreement-September 16. 2003Augu.';t 'v ~ '~ ~c~-~. Page 26 3.7 3.8 for a Loan shall be retumed to the appropriate CDBG, HOME or HOF account. No Partnership. Nothing herein is intended to, or shall be construed to create a relationship of partnership or joint venture. HomeSight is not authorized to bind King County or make any agreement or commitment on behalf of King County. No officer, employee, agent or representative of HomeSight shall held represent himself or herself to be an officer or employee of King County, nor as authorized to bind King County, nor shall any such person make any claim, demand or application to or for any right or privilege applicable to any officer or employee of King County, including but not limited to Worker's Compensation coverage, Unemployment Insurance Benefits, Social Security Benefits or retirement membership or credit. HomeSight shall indemnify and hold County harmless from any such claim or demand. Entire Agreement, Amendments; Waivers. mo The Agreement, including the exhibits attached hereto, the related security and the loan documents and legal authorities referred to herein, constitutes the entire agreement of the parties with respect to the Loans and the Program, and supersedes, to the extent of any inconsistency, any and all prior agreements and understandings, written or oral, with respect to the Loans and the Program, including the Existing Contracts and the 200_04- 2001_S Awarded Funds. Any action prior to the date of execution of this Agreement that was authorized under one of the Existing Contracts shall not be considered a breach or default under this Agreement. Either party or a Parlicipating Suburban Jurisdiction may request changes to this Agreement. Kine (_'ount¥-~-shall 0rovide the other party and each Participating Suburban Jurisdiction with a written copy of any proposed mnendment to this Aereement. meet with the Participatin~ Suburban Jurisdictions to obtain their opinions concerning thc proposed amendment. and attempt to reach consensus on thc proposed amendment. If cot'~gcnsus cmmol be reached Kin~ Cotmtx and t lomcSi~ht shall make thc final Co decision on ~'hether or not to amcp. d this Agreement. except as provided in Section 2.13. Proposed changes, which are mutually agreed upon by HomeSight: and King County4md tb.e Participating Subu:'b:m J urisdiction% shall be incorporated by written amendments to this Agreement and copies shall be provided to each Participating2 Suburban Jurisdiction. Any amendment must be consistent with CDBG and HOME program regulations: Neither disbursement of Funds for the Master Loan under this Agreement, nor any other action of King County or its agents or employees, shall I Subrecipient/Master Loan Agreement-September 16. 2003August oc ~ -~ oc~a.~ Page 27 3.9 3.10 3.11 3.12. 3.13 constitute a waiver of any of the terms or conditions hereof. No term or provision hereof shall be deemed waived and no consent shall be deemed given unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. Any consent by any party to, or waiver of, a breach by the other whether express or implied, shall not constitute a waiver of or consent to, or excuse for, any different or subsequent breach. Time is of the essence hereunder. Severability. If any provision hereof, or the application thereof in any circumstances, shall be held invalid, unlawful, or unenforceable then the remainder of this Agreement, or the application to other circumstances, as the case may be, shall not be affected. Captions. The titles of the articles, sections and subsections of this Agreement are for convenience only, and do not define or limit the contents. Construction. This Agreement shall not be construed in favor of or against either party based upon which party drafted this Agreement. Where applicable, the singular shall be construed to include the plural and vice versa. Notices. Any notice that any party is required or may desire to give to any other party shall be in writing and shall be personally delivered or mailed by the United States first class mail, addressed as follows: To HomeSight: HomeSight 5117 Rainier Avenue S Seattle, WA 98118 Attn: ExeCutive Director Subrecipient/Master Loan Agreement-S~ptembcr 1 O, 2U03Au~;u,~t 2~13, 20rOg Page 28 I 3.14 3.15 3.16 3.17 3.18 To County: King County Housing and Community Development Exchange Building 821 Second Avenue, Suite 500 Seattle, WA 98104 Attn: Department Director subject to the fight of either party to designate a different address for itself by notice similarly given. Any notice so given, delivered, or made by United States mail shall be deemed to have been given on the third (3rd) day after the same is deposited in the United States mail. Any time within which a party must take some action shall be computed from the date that the notice is received by said party. Assignment or Transfer of Interest; Successors. HomeSight shall not assign its rights or obligations under this Agreement, without the express written agreement of King County. King County's grant of consent to such assignment shall not waive its fight to consent to future assignments. Subject to the restriction in the previous sentence, this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Applicable Law; Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. The venue of any action brought hereunder shall be in the Superior Court for King County. Additional Documents. HomeSight shall execute and deliver to King County, promptly upon demand by King County, all additional documents that King County shall reasonably require to give effect to the intentions of any of the provisions of this Agreement, including without limitation assignments of deeds of trust and endorsements on promissory notes. Costs and Attorneys Fees If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, a legal actiOn is instituted, the losing party agrees to pay all reasonable costs and attorney's fees in connection therewith. Bonding and Insurance Requirements Subrecipient/Master Loan Agreement-Septcinber 16, 2003Augu.';t o~ ~ or,an Page 29 [ By the date of execution of this Agreement, HomeSight shall procure and maintain for the duration of this Agreement,. insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of work hereunder by HomeSight, its agents, representatives, employees, and/or subcontractors. The costs of such insurance shall be paid by HomeSight or subcontractor. HomeSight may furnish separate certificates of insurance and policy endorsementS for each subcontractor as evidence of compliance with the insurance requirements of this Agreement. HomeSight is responsible for ensuring compliance with all of the insurance requirements stated herein. Failure by HomeSight, its agents, employees, officers, subcontractors, providers, and/or provider subcontractors to comply with the insurance requirements stated herein shall constitute a material breach of this Agreement. For All Coverages: Each insurance policy shall be written on an "occurrence" form; except that insurance on a "claims made" form may be acceptable with prior County approval. If coverage is approved and purchased on a "claims made" basis, HomeSight warrants continuation of coverage, either through policy renewals or the purchase of an extended discovery period, if such extended coverage is available, for not less than three (3) years from the date of Agreement termination, and/or conversion from a "claims made" form to an "occurrence" coverage form. By requiring such minimum insurance, King County shall not be deemed or construed to have assessed the risks that may be applicable to HomeSight under this Agreement. HomeSight shall assess its own risks and, if it deems appropriate and/or prudent, maintain greater limits and/or broader coverage. Nothing contained within these insurance requirements shall be deemed to limit the scope, application and/or limits of the coverage afforded by said policies, which coverage will apply to each insured to the full extent provided by the terms and conditions of the policy(s). Nothing contained within this provision shall affect and/or alter the application of any other provision contained within this Agreement. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. General Liability: Insurance Services Office form number (CG 00 01 Ed. 11-88) covering COMMERCIAL GENERAL LIABILITY). 2. Professional Liability: 8ubrecipient/Master Loan Agreement-S. cptcmbcr 10, 2003.Augu,ct 7513. Page 30 Co Professional Liability, Errors, and Omissions coverage. In the event that services delivered pursuant to this Agreement either directly or indirectly involve or require professional services, Professional Liability, Errors, and Omissions coverage shall be provided. "Professional Services", for the purpose of this Agreement section, shall mean any services provided by a licensed professional or those services that require a professional standards of care. 3. Automobile Liability: In the event that services delivered pursuant to this Agreement require the use of a vehicle or involve the transportation of clients by HomeSight personnel in HomeSight-owned vehicles or non-owned vehicles, HomeSight shall provide evidence of the appropriate automobile coverage. Insurance Services Office form number (CA 00 01 Ed. 12~90) covering BUSINESS AUTO COVERAGE, symbol 1 "any auto"; or the appropriate coverage provided by symbols 2, 7, 8, or 9. 4. Workers' Compensation Workers' Compensation coverage, as required by the Industrial Insurance Act of the State of Washington, as well as any similar coverage required for this work by applicable federal or "Other States" state law. ~Stop Gap/Employers Liability Coverage shall be at least as broad as the protection provided by the Workers' Compensation policy Part 2 (Employers Liability) or, in states with monopolistic state funds, the protection provided by the "Stop Gap" endorsement to the general liability policy. Minimum Limits of Insurance HomeSight shall maintain limits no less than, for: General Liability: $1,000,000 combined single limit per occurrence by bodily injury, personal injury, and property damage, and for those policies with aggregate limits, a $2,000,000 aggregate limit. ° Professional Liability, Errors, and Omissions: $1,000,000 per claim and in the aggregate. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. Except if the Subrecipient/Master Loan Agreement -September t6, 9t~t~o_vvo~ ^,ugu'o* ......... qc ~ ~ or~tm~ .... Page 3 ! [ Uo transport of clients by Agency personnel is involved, then Risk Management will review the appropriate amount of coverage. Workers' Compensation: Statutory requirements of the state of residency. 5. Stop Gap/Employers Liability: $1,000,000 Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to, and approved by, King County. The deductible and/or self-insured retention of the policies shall not apply to HomeSight's liability to King County and shall be the sole responsibility of HomeSight. Other Insurance Provisions The insurance policies required in this Agreement are to contain, or be endorsed to contain, the following provisions: 1. Liability Policies Except Professional and Workers Compensation King County, its officers, officials, employees, and agents are to be covered as additional insureds as respects liability arising out of activities performed by or on behalf of HomeSight in connection with this Agreement. ~~omeSight's insurance coverage shall be primary insurance as respects King County, its officers, officials, employees, and agents. Any insurance and/or self- insurance maintained by King County, its offices, officials, employees, or agents shall not contribute with HomeSight's insurance or benefit HomeSight in any way. HomeSight's insurance shall apply separately to each insured against whom claim is made and/or lawsuit is brought, except with respect to the limits of the insurer's liability. 2. All Policies Coverage shall not be sUspended, voided, canceled, reduced in coverage or in limits, except by the reduction of the applicable aggregate limit by claims paid, until after forty-five (45) days prior written notice has been given to King County. Acceptability of Insurers Subrecipient/Master Loan Agreement -Scptcmbe,- 1(). ')00~ .~"g ..... ~r ' '~ ~mt~ Page 32 I Unless otherwise approved by King County, Insurance is to be placed with insurers with a Bests' rating of no less than A: VIII, or, if not rated with Bests, with minimum surpluses the equivalent of Bests' surplus size VIII. Professional Liability, Errors, and Omissions insurance may be placed with insurers with a Bests' rating of B+VII. Any exception must be approved by County. Go If, at any time, the foregoing policies shall fail to meet the above minimum requirements HomeSight shall, upon notice to that effect from King County, promptly obtain a new policy, and shall submit the same to King County, with appropriate certificates and endorsements, for approval. H. Verification of Coverage HomeSight shall furnish King County certificates of insurance and endorsements required by this Agreement. Such certificates and endorsements, and renewals thereof, shall be attached as Exhibits I to the Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements for each insurance policy are to be on forms approved by King County prior to the commencement of activities associated with the Agreement. King County reserves the right to require complete, certified copies of all required insurance policies at any time. HomeSight shall file with King County a fidelity bond from a surety acceptable to King County, payable to King County, for a minimum aggregate amount of $100,000 for all employees, which shall be conditioned upon HomeSight faithfully accounting for all Funds received by HomeSight under this Agreement, and further assuring that such Funds are used only for the purposes of this Agreement. HomeSight shall. increase the fidelity bond coverage as reasonably required by King County given the amount of money handled by HomeSight employees within fifteen (15) business days of King County's written request. Notwithstanding any other provision herein, HomeSight may provide, in lieu of the fidelity bond, such other insurance coverage as may be acceptable to King County. PART IV: FEDERAL REGULATORY REQUIREMENTS HomeSight represents, warrants and covenants that HomeSight has complied with and shall comply with all applicable federal requirements related to the use of federal HOME and CDBG funds, or both, as applicable, including without limitation 8ubrecipient/Master Loan Agreement -Sc' Page33 applicable provisions of 24 CFR Pans 5 and 6, and the applicable requirements below in this Part IV: mo Equal Opportunity. No person shall on the grounds of race, color, national origin, religion or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with HOME or CDBG funds. HomeSight shall comply fully with the requirements of the Fair Housing Act (42 U.S.C. Sections 3601-20) and implementing regulations at 24 CFR Part 100; Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., p.652 and 3 CFR, 1980 Comp., p.307) (Equal Opportunity in Housing) and implementing regulations at 24 CFR Part 107. HomeSight shall comply fully with all requirements of Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et seq., which provides that no person in the United States shall on the ground of race, color or national origin, be excluded from participation in, denied the benefits of, or be Subjected to discrimination under any program or activity receiving Federal financial assistance; and with Department of Housing and Urban Development ("HUD") regulations implementing such requirements, 24 C.F.R. Part 1. {24 C.F.R. Section 92.350(a)} HomeSight shall ensure compliance with Executive Order 11246, entitled "Equal Opportunity" (3 CFR, 1958-1963 Comp., p.339), as amended by Executive Orders 11375, 11478, 12086 and 12107, and the regulations issued pursuant thereto, 41 C.F.R. Part 60, which provide that no person shall be discriminated against because of race, color, religion, sex or national origin in all phases of employment during the performance of federal contracts and subcontracts, and HomeSight shall take affirmative action to ensure fair treatment in employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay, or other forms of compensation and selection for training or apprenticeship. ItomeSight shall comply fully with all of the requirements and prohibitions of the Age Discrimination Act of 1975 (42 U.S.C. Sections 6101-07) and implementing regulations at 24 C.F.R. Part 146 and those of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794), and implementing regulations at 24 C.F.R. part 8. Additional Federal Nondiscrimination Requirements. HomeSight shall comply with all applicable federal laws prohibiting discrimination, including the following: Executive Order 11063 as amended by Executive Order 12259 and implementing regulations at 24 CFR Part 107; 2. Section 109 of the HCD Act of 1974, as amended (42 USC 5301); Subrecipient/Master Loan Agreement -~tcmber l O. 2003~% 13. 2003 Page34 I o The Americans with Disabilities Act (42 USC 1213; 47 USC 155, 201,218 and 225); and Section 504 of the Rehabilitation Act of 1973 and regulations at 24 CFR Part 8. Co Minority and Women's Business Enterprises. HomeSight shall comply with, and shall cooperate fully in programs and procedures adopted by County to comply with, the requirements of Executive Orders 11625 and 12432 (conceming Minority Business Enterprise) and 12138 (concerning Women's Business Enterprise) and, if HOME funds are involved, with pr°cedures established by County pursuant to 24 CFR Section 92.35 lb, "Minority Outreach." HomeSight shall maintain and shall provide to County on request data indicating the racial/ethnic character of each business entity receiving a contract of $25,000 or more paid, or to be paid, with HOME or CDBG fimds, data indicating which of those entities are women's business entities as defined in Executive Order 12138, the amount of the contract or subcontract, and docrunentation of HomeSight's affmnative efforts as described in 24 CFR Section 570.506(g)(6), ifCDBG funds are involved, or Section 92.508a(7), if HOME funds are involved. Nothing herein shall be construed to require or authorize any discrimination or preferential treatment contrary to applicable law. Subrecipient/Master Loan Agreement -September 16, 2003Augu,~t ''~,..,~ ~ oaa~.~_ Page 35 [ Do Audit Requirements. HomeSight shall comply, at HomeSight's expense, with all applicable requirements under the federal Single Audit Act Amendments of 1996 and regulations now or hereafter adopted thereunder, including without limitation federal OMB Circular A- l 33. The audit shall comply with the requirements of generally accepted auditing standards "GAAS"; GAO's Standards for Audits of Governmental Organizations, Programs, Activities, and Functions; and OMB Circular A-133, as amended, and as applicable. In addition, County's auditor shall have access to HomeSight's records and financial statements as may be necessary for County to comply with such Act and regulations. 2. Each audit report shall include at a minimum: ao An opinion on financial statements and a schedule of financial assistance; and bo A report on a supplemental schedule showing the balances of each account maintained for the Funds and the cash deposited and disbursed therefrom, and the Loans outstanding made from each such account; Show the PSRLF First Homes Program Loans and Receipts as restricted funds, and do A report on the study and evaluation of the organization's internal control structure. o A representative of King County shall have the right to be present at the independent auditor's exit interview with HomeSight. HomeSight shall provide a copy of the audit rePort to each County division providing financial assistance to HomeSight no later than six (6) months after the end of HomeSight's fiscal year. HomeSight shall provide to King County their response and corrective -plan for all findings and reportable conditions contained in their audit. When reference is made in their audit to a ,Management Letter" or other correspondence made by the auditor, HomeSight shall provide copies of those communications and HomeSight's response and corrective plan. Working papers of the independent auditor shall be made available to King County or its designee with ten (10) business days- upon request. Subrecipient/Master Loan Agreement-September 16. 2003A-ugu.~t Page 36 I Fo Additional audit or review requirements which may be imposed on King County by HUD will be passed on to HomeSight and HomeSight will be required to comply with any such requirements. Flood Insurance Protection. If any property for which a Loan is made from HOME or CDBG funds is in a special flood hazard area as identified by the Federal Emergency Management Agency, then HomeSight shall ensure that flood insurance is and shall remain in effect, in accordance with Section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. Section 4001). Conflict of Interest; Consultants. No officer, agent, employee, consultant or elected or appointed official of King County of King or of any sub-recipient receiving HOME or CDBG funds (as defined in 24 CFR Parts 92 and 570, respectively) who exercises or has exercised any functions or responsibilities with respect to activities assisted by HOME or CDBG funds or who is in a position to participate in a decision making process or gain inside information with respect to these activities, shall obtain any financial interest or benefit, for himself or herself or those with whom he or she has family or business ties, in the activity funded under this Agreement or in any contract or subcontract or agreement with respect thereto or the proceeds thereof; nor shall (s)he for one year after completion of his or her tenure with King County or such sub-recipient obtain any such financial interest or benefit. HomeSight shall incorporate in all such contracts or subcontracts a provision prohibiting any such interest. In addition, no owner, developer or sponsor of a project assisted with HOME funds (or officer, employee, agent, elected or appointed official or consultant of the owner, developer or sponsor) may occupy a HOME-assisted housing unit. No person providing consultant services in an employer-employee type relationship shall receive more than a reasonable rate of compensation for personal services paid with HOME funds, and in no event shall such compensation exceed the limits in effect under any applicable law. All such consultant services shall be evidenced by written agreements that detail the responsibilities, standards and compensation {24 C.F.R. Sections 92.356, 92.358 } In the procurement of supplies, equipment, construction or rehabilitation and services, HomeSight shall ensure compliance with the provisions of 24 CFR Section 84.42 HomeSight shall incorporate in all contracts or subcontracts using HOME Funds or CDBG Funds a provision prohibiting any conflict of interest prohibited by this subsection. 8ubrecipient/Master Loan Agreement-September 16, 2003At,'gu.';t Page 37 o No HOME or CDBG funds may be used to pay or to provide reimbursement for payment of the salary of a consultant at more than the daily equivalent of the rate paid for level IV of the federal Executive Schedule, unless specifically authorized by law. No HOME or CDBG funds shall be lent to any officer, director, or person serving in a similar capacity for HomeSight, or to any member of the immediate family of any such person, nor shall any loan of HOME or CDBG funds be made for the purchase of any property in which any such person or family member has an interest or in any transaction in which any such person acts as a real estate broker or agent, mortgage broker, or in any similar capacity. Debarred Contractors. No portion of the Funds shall be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund, any contractor or Subrecipient during any period of debarment, suspension, or placement in ineligibility status of such contractor or Subrecipient under the provisions of 24 C.F.R. Part 24. HomeSight represents and warrants that neither HomeSight nor its principals is debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in federal assistance programs under such regulations or Executive Order 12549, "Debarment and SuspenSion." HomeSight shall obtain, and shall require contractors and subcontractors to obtain, the certification required by appendix B of 24 CFR part 24 from each prospective contractor or subcontractor to be paid with HOME or CDBG Funds. Ho Relocation and Acquisition. HomeSight represents and warrants that it has taken and shall take all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) in connection with the Program. In connection with any Loan using CDBG or HOME Funds HomeSight shall comply with all applicable requirements of the federal Uniform Relocation Act and regulations thereunder, 49 CFR Part 24; 24 CFR Section 92.353 (if HOME funds are used for the Loan), 24 CFR Section 570.606 (ifCDBG funds are used for the Loan), and shall maintain complete and accurate records demonstrating such compliance. HomeSight agrees that any determination by County of the amount of relocation assistance due to any person shall be final and binding upon HomeSight, unless a different determination is made by HUD at the request of such person, in which case the HUD determination shall be final and binding on HomeSight. HomeSight agrees that King County may, at its option, provide relocation assistance directly to any person in connection with a Loan and that such amount shall be immediately due and payable by HomeSight to County, at County's demand. HomeSight shall maintain and Subrecipient/Master Loan Agreement-September 16, 2003Augu.~t 25!3, 2t049g Page 38 { Lo provide to County on request data indicating the race and ethnicity of households (and gender of single heads of households) displaced in connection with the Program and the address and census tract of the housing to which each displaced household relocated. Such information shall be used only as a basis for further investigation as to comPliance with nondiscrimination requirements. Lead-Based Paint. HomeSight shall comply with all applicable requirements of federal, state, and local laws and regulations with regard to lead-based paint, including without limitation 24 CFR Part 35, and 24 CFR Sections 92.355 and 982.401 (j), to the extent applicable. HomeSight shall be responsible for ensuring that all required testing and lead hazard control activities are performed, and all disclosures made and acknowledged, as required by such regulations or other applicable taws. HomeSight shall require, in connections with any purchase funds by a HOME Funds or CDBG Funds, that any defective lead-based paint surfaces are addressed in full compliance with all applicable laws, regulations, HUD guidelines and prudent practices. Subrecipient Status; Uniform Administrative Requirements. HomeSight 'understands and agrees that it is a "Subrecipient" of HOME Funds under this Agreement, and shall comply with all requirements applicable to such Subrecipients. Without limiting the foregoing, HomeSight shall comply with applicable uniform administrative requirements as described in 24 CFR Section 92.505(b) for a Subrecipient of HOME Funds. HomeSight understands and agrees it is ,aotis -anot a Community Based Development Organization (CBDO) or a Community Housing Development Organization (CHDO) under this Agreement. Affirmative Marketing Requirements._King County has approved the affirmative marketing plan attached hereto as Exhibit G,.F_ Lobbying. HomeSight hereby certifies and agrees as follows, in accordance with 31 U.S.C. Section 1352, to the best of its knowledge and beliefi No Federal appropriated funds have been paid or will be paid, by or on behalf of HomeSight, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; Subrecipient/Master Loan Agreement -Scptetn bet l 6. 2003A ugu :;t ' ~ c ~ -~ .-mf,~ H Page 39 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and o It will require that the language of this subsection K be included in the award documents for subawards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Mo Disclosures. HomeSight represents, warrants and agrees that it has provided to King County any and all disclosures required by the HUD Reform Act, 42 U.S.C. Section 3545, and regulations thereunder, 24 CFR Part 4; that it will provide timely updated disclosures to King Cotmty to the extent required by such act and regulations; and that all such disclosures are and shall be complete and accurate. Prior Actions. HomeSight represents and warrants that in all actions related to the Program to date HomeSight has complied with all applicable requirements referred to in this Part V. HomeSight shall indemnify and hold harmless King County and its officials and employees from any and all liability, loss, damage, costs and expenses resulting from any failure by HomeSight to comply with any federal requirement or to document such compliance. PART V. CERTAIN COUNTY REQUIREMENTS AND POLICIES Agency Agreement to Repay. HomeSight further agrees that it is financially responsible for and will repay King County all indicated amounts following a HUD audit exception which occurs due to the negligence, intentional act, and/or failure, for any reason, to comply with the terms of this Agreement by HomeSight, its officers, employees, agents, and/or representatives. This duty to repay King County shall not Subrecipient/Master Loan Agreement -September l 6, 2003Aug'dst- 25 Ig, 2003 Page 40 Bo be diminished or extinguished by the prior termination of the Agreement pursuant to the Duration of Agreement or the Termination Sections or payment of the Master Promissory Note. Non discrimination and Equal Employment Opportunity 1. Nondiscrimination in Employment Provision of Services. During the performance of this Agreement, neither HomeSight nor any party subcontracting under the authority of this Agreement shall discriminate or tolerate harassment on the basis of race, color, sex, religion, national origin, marital status, sexual orientation, age, or the presence of any sensory, mental, or physical disability in the employment or application for employment or in the administration or delivery of services or any other benefits under this Agreement. 2. Nondiscrimination in Subcontracting Practices During the solicitation, award and term of this Agreement, HomeSight shall not create barriers to open and fair opportunities to participate in County contracts or to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction and services. In considering offers from and doing business with subcontractors and suppliers, HomeSight shall not discriminate against any person on the basis of race, color, religion, sex, age, national origin, marital status, sexual orientation or the presence of any mental or physical disability in' an otherwise qualified disabled person. Compliance with Laws and Regulations HomeSight shall comply fully with all applicable federal, state and local laws, ordinances, executive orders and regulations that prohibit discrimination. These laws include, but are not limited to, RCW Chapter 49.60, Titles VI and VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Restoration Act of 1987. HomeSight shall further comply fully with any affirmative action requirements set forth in any federal regulations, statutes or rules included or referenced in this Agreement. Small Business and Minority and Women Business Enterprise Opportunities County encourages HomeSight to utilize small businesses, including Minority-owned and Women-owned Business Enterprises ("M/WBEs") in County contracts. King County Subrecipient/Master Loan Agreement-September 16. 2003Augu~';t 25'~3. 2'003 Page 41 [ encourages HomeSight to use the following voluntary practices to promote open competitive opportunities for small businesses, including M/WBEs: Attending a pre-bid or pre-solicitation conference, if scheduled by King County, to provide project information and to inform small businesses and other firms of contracting and subcontracting opportunities. Placing all qualified small businesses, attempting to do business in County, including M/WBEs, on solicitation lists, and providing written notice of subcontracting opportunities to these firms capable of performing the work, including without limitation all businesses on any list provided by King County, in sufficient time to allow such businesses to respond to the written solicitations. Breaking down total requirements into smaller tasks or quantities, where economically feasible, in order to permit maximum participation by small businesses, including M/WBEs. do Establishing delivery schedules, where the requirements of this Agreement permit, that encourage participation by small businesses, including M/WBEs. eo Providing small businesses, including M/WBEs that express interest with adequate and timely information about plans, specifications, and requirements of the Agreement. Using the services of available community organizations, contractor groups, local assistance offices, King County, and other organizations that provide assistance in the recruitment and placement of small businesses, including M/WBEs. go The Washington State Office of Minority and Women's Business Enterprises (OMWBE) can provide a list of certified M/WBEs. Contact OMWBE office at (360) 753- 9693 or on-line through the web site at www.wsdot.wa.gov/omwbe/. Equal Employment Opportunity HomeSight shall implement and carry out the obligations in its Affidavit and Certificate of Compliance regarding equal employment opportunity, and all other requirements as set forth in the Affidavit and Certificate of Compliance. Subrecipient/Master Loan Agreement -Septcmber 16. 9003Augu,':t ,.c ~ -~ onr~'~ Page 42 I 6. Fair Employment Practices King County Code Chapter 12.18 is incorporated by reference as if fully set forth herein and such requirements apply to this Agreement. During the performance of this Agreement, neither HomeSight nor any party subcontracting under the authority of this Agreement shall engage in unfair employment practices. It is an unfair employment practice for any: ao bo Employer or labor organization to discriminate against any person with respect to referral, hiring, tenure, promotion, terms, conditions, wages or other privileges of employment. Employment agency or labor organization to discriminate against any person with respect to membership rights and privileges, admission to or participation in any guidance program, apprenticeship training program, or other occupational training program; Co Employers, employment agency, or labor organization to print, circulate, or cause to be Printed, published or circulated, any statement, advertisement, or publication relating to employment or membership, or to use any form of application therefore, which indicates any discrimination unless based upon a bona fide occupation qualification; do Employment agency to discriminate against any person with respect to any reference for employment or assignment to a particular job classification; Employer, employment agency or a labor organization to retaliate against any person because that person has opposed any practice forbidden by KCC Chapter 12.18 or because that person has made a charge, testified or assisted in any manner in any investigation, proceeding or hearing initiated under the provisions of KCC Chapter 12.18; Publisher, firm, corporation, organization or association printing, publishing or circulating any newspaper, magazine or other written publication to print or cause to be printed or circulated any advertisement with knowledge that the same is in violation of KCC Chapter ! 2.18.030.C., or to segregate and separately designate advertisements as applying only to men or women unless such discrimination is reasonably necessary to the normal operation of the 8ubrecipient/Master Loan Agreement-Scptcmbcr 16, 2003Aug~:,zt 2513, 2003 Page 43 I ' Co particular business, enterprise or employment, unless based upon a bona fide occupational qualification; Employer to prohibit any person from speaking in a language other than English in the workplace unless: The employer can show that requiring that employees speak English at certain times is justified by business necessity, and The employer informs employees of the requirement and the consequences of violating the rule. Record-Keeping Requirements, Evaluations and Site Visits HomeSight shall maintain, for at least six (6) years after completion of all work under this Agreement, the following: Records of employment, employment advertisements, application forms, and other pertinent data, records and information related to employment, applications for employment or the administration or delivery of services or any other benefits under this Agreement; and Records, including written quotes, bids, estimates or proposals submitted to HomeSight by all businesses seeking to participate on this Agreement, and any other information necessary to document the actual use of and payments to subcontractors and suppliers in this Agreement, including employment records. c. All records set forth in Section 2.6 and 2.9 of the SMLA. King County may visit, at any time, but at least annually, the site of the work and HomeSight's office to review the foregoing records. HomeSight shall provide every assistance requested by King County during such visits. In all other respects, HomeSight shall make the foregoing records available to King County for inspection and copying upon request. Sanctions for Violations. Any violation of the mandatory requirements of the provisions of this Section shall be a material breach of the Agreement for which HomeSight may be subject to damages, withholding payment and any other sanctions provided for by the Agreement and by applicable law. D. Reporting Subrecipient/Master Loan Agreement-September 16, 2003Au~ma-st 2513, 20Og Page 44 I Eo Fo HomeSight shall submit with this Agreement a total Personnel Inventory Report providing employment data for minorities, females, and persons with disabilities. Subject to the provisions of KCC Chapter 12.16.060, HomeSight's Personnel Inventory Report shall be effective for two years after the date on which the report was submitted. HomeSight should submit an Affidavit of Compliance in the form provided by King County, demonstrating commitment to comply with the provisions of KCC Chapter 12.16 in accordance with paragraph A of this Section XV. HomeSight shall complete.the Affidavit of Compliance provided by King County and attach the original, notarized, completed form to this Agreement. Subject to the provisions of KCC Chapter 12.16.060, HomeSight's Affidavit of Compliance shall be effective for two years after the date on which the report was submitted. If HomeSight engages in unfair employment practices as defined above, remedies, as set forth in KCC- Chapter 12.18 shall be applied. Section 504 and Americans with Disabilities Act HomeSight warrants and represents that it has completed a Disability Self- Evaluation Questionnaire for all programs and services offered by HomeSight (including any services not subject to this Agreement) and has evaluated its services, programs and employment practices for compliance with Section 504 of the Rehabilitation Act of 1973, as amended ("504") and the Americans with Disabilities Act of 1990 ("ADA"). HomeSight warrants and represents that it has completed a 504/ADA Disability Assurance of Compliance and shall submit it to King County. Such Assurance of Compliance is attached to this Agreement and is incorporated herein by this reference. 18. Future support King County makes no commitment to support the services contracted for herein and assumes no obligation for future support of the activity contracted herein except as expressly set forth in this Agreement. Proprietary Rights The parties to this Agreement hereby mutually agree that if any patentable or copyrightable material or article should result from the work described Subrecipient/Master Loan Agreement -September- 1 (>. 2003Augu:;~. 25 !3, 2'003 Page 45 [ herein, all fights accruing from such material or article shall be the sole property of HomeSight. King County Recycled Product Procurement Policy HomeSight shall use recycled paper for the production of all printed and photocopied documents related to the fulfillment of this Agreement and shall ensure that, whenever possible, the cover page of each document printed on recycled paper bears an imprint identifying it as recycled paper. If the cost of recycled paper is more than 15% higher than the cost of non- recycled paper, HomeSight may notify the Agreement Administrator, who may waive the recycled paper requirement. HomeSight shall use both sides of paper sheets for copying and printing and shall use recycled/recyclable products wherever practical in the fulfillment of this Agreement. Jo Ko Miscellaneous Provisions Severability. If any term or provision of this Agreement or an application of any term or provision to any person or circumstance is invalid or unenforceable, the other terms or provisions of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected and will continue in full force. No Third Party Beneficiary. This Agreement is for the benefit of the named parties only and no third party shall have any fights thereunder, except the participating suburban cities. Attorneys Fees and Costs If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney's fees in connection therewith. Confidentiality HomeSight an& King County an44~5 agrees that all information, records, and data collected in connection with this Agreement shall be protected from unauthorized disclosure in accordance with applicable state and federal law. HomeSight shall clearly ~ identify any ctmfidcntia! documents or reports at the time of subnfittal with words such as ':Confidential", "l~roprictarv'' or "Busincss ~%ccrcl."= 1t' a request is m~dc liar disclosure o1' such item(s), King CountY' Subrecipient/Master Loan Agreement-~eptembex- 16, 2003Augmm '25!3, 200,2, Page 46 I shall dutcrminu s~hcther thc ri'tutorial shoLIjd bc madu nx'nilal'fic LI~Ljcr IIIc Il'thc ~mcrial or parts thcrcot'~trc deter'mined by King Cotlllty 5xc[nl)t I'rom t~ublic disclosure, King C(,untS sh~ll i~ol ['ctci~sc thc cxc~i~plcd documents. IF thc material s not exempt Fro~ public disclosure. Kin,& Cottntx: shall nolilk,' 1 lomcSight of thc rcclucSt and I lomc$i,,zht ten (10) business daY's to take kk hatcx cr acliot~ it decnns necessary to protect its interests. Il' t-lome$iuht Ihils to take such action within said period, King Gounty shall release the item dccmcd subicct to disclosure. By sianing this SMLA. }tomeSi~h~ assents to the procedure outlined in this subsection and shall have no claim against l<inu Cotmtv based on actions taken under such procedure.and Pnrtic~D:~t~:~2 5ubttrban I ~i,.~;,.,; ..... shall -noti~,' ~ .... ~;"~' "' ~"' '"." ...... ~-',' ~-~; ...... ~; .... ~ .... ; .... reports ',vhich ha;'e been identified bY Hop,~eSight as c~;n~;~.denti'~. Lo Compliance with the Health Insurance Portability Accountability Act of 1996 Terms used in this section shall have the same meaning as those terms in the Privacy Rule, 45 CFR Parts 160 and 164. 1. Obligations and Activities of HomeSight ao HomeSight agrees not to use or disclose protected health information other than as permitted or required by law. bo HomeSight agrees to use appropriate safeguards to prevent use or disclosure of protected health information other than as provided for in this Agreement. HomeSight agrees to mitigate, to the extent practicable, any harmful effect that is known to HomeSight of a use or disclosure of protect health information by HomeSight in violation of the requirements of this Agreement. do HomeSight agrees to report to County any use or disclosure of protected health information not provided for by this Agreement of which it becomes aware. eo ltomeSight agrees to ensure that any agent, including a subcontractor, to whom it provides protected health information received from, or created or received by HomeSight on behalf of County, agrees to the same restrictions and conditions that apply through this Agreement to HomeSight with respect to such information. Subrecipient/Master Loan Agreement-September [ro. 2003A~_:gu~';t Page 47 go ho HomeSight agrees to make available protected health information in accordance with 45 CFR § 164.524. HomeSight agrees to make available protected health information for amendment and incorporate any amendments to protected health information in accordance with 45 CFR § 164-526. HomeSight agrees to make internal practices, books, and records, including policies and procedures and protected health information, relating to the use and disclosure of protected health information received from, or created or received by HomeSight on behalf of County, available to the Secretary of U.S. Department Health and Human Services, in a reasonable time and manner for purposes of the Secretary determining County's compliance with the privacy rule. HomeSight agrees to make available the information required to provide an accounting of disclosures in accordance with 45 CFR 164 § 528. o Permitted Uses and Disclosures by Business Associate HomeSight may use or disclose protected health information to perform functions, activities, or services for, or on behalf of, County as specified in this Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by County or the minimum necessary policies and procedures of County. Effect of Termination Except as provided in paragraph C.2. of this section, upon termination of this Agreement, for any reason, HomeSight shall return or destroy all protected health information received from Kin~County, or created or received by HomeSight on behalf of County. This provision shall apply to protected health information that is in the possession of subcontractors or agents of HomeSight. HomeSight shall retain no copies of the protected health information. In the event HomeSight determines that returning or destroying the protected health information is infeasible, HomeSight shall provide to County notification of the conditions that make return or destruction infeasible. Upon notification that return or destruction of protected health information is infeasible, HomeSight shall extend the Subrecipient/Master Loan Agreement -September 16, 2003Auguzt 25!3, 2003 Page 48 I Mo protections of the Agreement to such protected health information and limit further uses and disclosure of such protected health information to those purposes that make the return or destruction infeasible, for so long as HomeSight maintains such protected health information. Conflict of Interest KCC Chapter 3.04 is incorporated by reference as if fully set forth hence, and HomeSight agrees to abide by all conditions of said chapter. Failure by HomeSight to comply with any requirement of said KCC Chapter shall be a material breach of this Agreement. HomeSight covenants that no officer, employee, or agent of King County who exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein, or any other person who presently exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein shall have any personal financial interest, direct or indirect, in this Agreement. HomeSight shall take appropriate steps to assure compliance with this provision. If HomeSight violates the provisions of this subsection, or does not disclose other interest required to be disclosed pursuant to KCC Chapter 3.04, King County will not be liable for payment of services rendered pursuant to this Agreement. Violation of this Section shall constitute a material breach of this Agreement and grounds for termination pursuant to Section 3.6 above, as well as any other right or remedy provided in this Agreement or law. Assignment HomeSight_shall not assign or subcontract any portion of this Agreement or transfer or assign any claim arising pursuant to this Agreement without the written consent of King County. Said consent must be sought in writing by HomeSight not less than fifteen (15) business days prior to the date of any proposed assignment. "Subcontract" shall mean any agreement between HomeSight and a subcontractor or between subcontractors that is based on this Agreement, provided that the term "subcontract" does not include the purchase of (1) support services not related to the subject matter of this Agreement, or (2) supplies. 8ubrecipient/Master Loan Agreement-September 16. 2003A'~guzt 2513. 20Og Page 49 PART VI: EXHIBITS The following Exhibits are attached to this Agreement and are part of this Agreement: Exhibit A: Exhibit B: Exhibit C 1: Exhibit C2: Exhibit C-3: Exhibit D: Exhibit E 1: Exhibit E2: Exhibit F: Exhibit G Exhibit H: Exhibit I: Funds Available under this Agreement Outstanding County Loans South King County First Homes Program Description HomeSight Buyer Services and Loan Underwriting HomeSight Loan Servicing, Loan Collection and Loss Mitigation Budget and Deadlines for Loans to be made Form of Deed of Trust Form Of Deed of Trust Note HomeSight PSRLF Marketing Plan Participating Suburban Jurisdictions Proportional Share of PSRLF First Homes Program Portfolio King County First Homes Program Subordination Policy Insurance verifications Signature Page To Master Loan Agreement IN WITNESS WHEREOF the Parties hereto have signed this Agreement as of the day and year first above written. KING COUNTY By: Name: Title: STATE OF WASHINGTON ) ) SSo COUNTY OF KING ) I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of King County to be the free and voluntary act such party for the uses and purposes mentioned in the instrument. 8ubrecipient/Master Loan Agreement-~eptember 16, Page 50 [ DATED: (Prim Name) Residing at My appointment expires: Subrecipient/Master Loan Agreement-Septembe,- 16. 2003August 27.13, 2903 Page 51 [ Signature Page To Master Loan Agreement IN WITNESS WHEREOF the parties hereto have signed this Agreement as of the day and year first above written. HOMESIGHT By: Name: Title: STATE OF WASHINGTON ) ) SS. COUNTY OF KING ) I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of HomeSight, a Washington corporation, to be the free and voluntary act such party for the uses and purposes mentioned in the instrument. DATED: (Print Name) Residing at My appointment expires: Subrecipient/Master Loan Agreement-September 16, 2003August H Page 52 EXHIBIT A SOUTH KING COUNTY LOAN FUNDS BY PARTICIPATING JURISDICTION Type of Funds & related contract numbers HOME (D25607F, D25607H)) Housing Opportunity Fund (D25767D, D26138D, D256071) ) Federal Way CDBG (D25607D, D25427D, D25607J) Kent CDBG (DD25607E) Tukwila CDBG (D25607G) Auburn CDBG** TOTALS Total Loan Amount* $575,00O $200,000 $240,000 $50,000 $45,000 $75,000 Loan Amounts previously lent to Homebuyers as of 12/31/2000 $270,440 Funds Committed by HomeSight as of 6115103 $24,700 $1,185,000 $82,800 $90,000 $50,000 $0 $75,000 $568,240 $117,200 $141,300 $45,000 $328,200 *Excludes funds contracted for education/counseling **Auburn CDBG funds are contracted directly between Homesight & Auburn Remaining Fund Balance as of 6115/03 $279,86O $0 $8,700 $0 $0 $0 $288,560 081403 KC RLF Funds Table - Exhibit A EXHIBIT C -" I HomeSight Puget Sound Homeownership Revolving Loan Fund~) in King County Program Summary Administrator: HomeSight, a Non Profit Washington Corporation, Est. 1990 Bancroft, Bucldey, Johnson and Serres Watson and Associates $10 million in assets $15 million in assets Deferred and Low Interest Amortizing loans Neighborhood Housing Services of America Financial Consultant: Auditor: Capitalization Goal 2003 Capitalization Goal 2005 Products: Secondary Market: Puget Sound Revolving Loan Fund The Puget Sound Revolving Loan Fund is a community based socially responsible investment fund that provides lower interest financing to low to moderate-income borrowers for the · purchase of their first home. Up to 500 down payment assistance Hope Loans Will be originated in the Puget Sound area over five years on a gap-financing basis, Whenever possible, first mortgages will be originated in conjunction with the down payment assistance to increase lending efficiencies.. Loan periodic repayments, refinance and cash proceeds and secondary market sales of loans will revolve capital to help more modest income borrowers. This model reduces public and grant financing requirements over a five-year period by more than $8 million. The initial PSRLF goal, to be accomplished by the end of 2003, is $10 million in assets, represented by the existing HomeSight loan portfolio (State, City, Federal, HomeSight funds) and new resources committed by Public and private investors. Amortizing Loans may be sold to a secondary market source, Neighborhood Housing Services of America, after a timely payment history is established, typically 180 days. Investors and Leverage The majority of the PSRLF capitalization will come from private investments through financial institutions, foundations, and corporations. The fund will seek support from state and local government sources on a competitive basis for deferred payment loan funds as needed. Overall Puget Sound Loan Fund Distributions Currently, the Fund projects fund investments from Snohomish County (40%), King County and Participating Suburban Jurisdictions ("PSJ") (16%), the City of Seattle (44%). Percentages represented are based on local commitments and loan portfolios to be transferred. State Funds, HomeSight funds, and Private Funds are already invested in the Fund. Lending will be geared to these local percentages. State and other non-locally administered Funds are treated neutrally e.g. to be used on a first come first serve basis. Future lending with revolved funds or new investments will occur in participating jurisdictions only. First Homes Program Description In 1998 HomeSight initiated the First Homes Program in South King County. Participants included Aubum, Federal Way, Kent, Tukwila and King County, as the administrator for the HOME Consortium in South King County. The First Homes program shall continue as part of EXHIBIT C the Puget Sound Revolving Loan Fund. HomeSight, as a HOME Subrecipient of King County, shall make loans to eligible homebuyers consistent with the provisions of a SubreCipient/Master Loan Agreement. HomeSight will also provide homebuyer services and underwrite loans pursuant to the Puget Sound Rev. olving Loan Fund Buyer Services and Loan Underwriting Policies and service First Home Program loans pursuant to the attached Exhibit C-3 (HomeSight Loan Servicing, Loan Collection, and Loss Mitigation). HomeSight will make Loans to Eligible Homebuyers to provide homeownership assistance for the purchase of Qualifying Homes, as defined in the Subrecipient/Master Loan Agreement~ The amount of each Loan will not exceed the amount necessary, together with any other subsidy, to provide affordable housing. The amount of each Loan will also be consistent with the limit for homebuyer assistance loans as approved in writing by King County. The current limit for homebuyer loans is $25,000.00, as established in 1998. However, this loan limit may be changed by written amendment of the Subrecipient/Master Loan Agreement, based on changes in home sale prices, market conditions and homebuyer affordability analysis. Over each three (3) year period, beginning January 1, 2004, HomeSight shall originate Loans in each Participating Suburban Jurisdiction in numbers equivalent to that Participating Suburban Jurisdiction's proportional share of the funds awarded to HomeSight for the King County First Home Program of the PSRLF. Loans funded with HOME Funds shall be distributed to Participating Suburban Jurisdictions and unincorPorated South King County. The proportional share percentages shall be established based on the amount of Funds awarded by the Participating Suburban Jurisdictions, including King County's HOME Funds, as of December 31, 2003 and shall be set forth in Exhibit G, to the Subrecipient/Master Loan Agreement. Every three (3) years King County shall revise Exhibit G effective January 1 if any Participating Suburban Jurisdiction or a new South King County subUrban city has awarded CDBG Funds or HOME funds to the first Homes Programs in the prior three years. In order to augment the number of Loans originated by Funds, HomeSight's shall also use a portion of its Other Funds to originate Loans in South King County. In order to balance the percentages under this subsection, HomeSight's Other Funds shall be used to originate Loans when necessary to satisfy the requirement of proportional shares of Loans. To the extent Other Funds are used to fulfill this requirement their use shall be consistent with the PSRLF Business Plan and the requirements of private investors to maintain the financial integrity of the PSRLF as determined by the Committee. HomeSight Buyer Services and Loan Underwriting Puget Sound Homeownership Revolving Loan Fund © The following policies will be applied to all program applicants in all jurisdictions without regard to race, creed, national origin, gender, handicap, political affiliation or marital or familial status. I. Registration City of Seattle [1] Interested person(s) requests Program information by contacting HomeSight's automated information line (206) 723.4355 or at a community event.. [2] Community Outreach Coordinator enters all request information (name, telephone, and address) into the HomeSight Access database for future mailings and for internal recording purposes. [31 All requests for Program information are responded to with a Program brochure and education offedng, invitation and registration instructions to a First-time Home Buyer Education Class or a Fundamentals of HomeSight Class. [4] Interested persons register by mail or fax for available First-time Home Buyer Classes or Fundamentals of HomeSight Class indicated on HomeSight's Quarterly Education Class Schedule. Registries are to follow the registration instructions by mailing the class registration form to HomeSight, 5117 Rainier Ave. S., Seattle, WA 98118 or faxing it to (206) 723.7137. [5] Community Outreach Coordinator or appropriate staff at HomeSight enters all registration information into the HomeSight Access database for registration. confirmation, facilities reservation, and internal recording/reporting purposes. Snohomish County Interested person(s) requests Program information by contacting HomeSight automated information line (425) 672.2445 or at a community event, [2] Community Outreach Coordinator enters all request information (name, telephone, and address) into the HomeSight Access database for future mailings and for internal recording purposes. [3] All requests for Program information are responded to with a Program brochure and education offering, invitation and registration instructions to a First-time Home Buyer Education Class or a Fundamentals of HomeSight Class. [4] Snohomish County clients will register for HomeSight First-time Home Buyer Workshops through the Everett Community College automated and mail-in registration system (425) 388.9214. South KinR County [11 Interested person(s) requests Program information by contacting HomeSight's automated information line (206) 723.4355 or at a community event. [2] Community Outreach Coordinator enters all request information (name, telephone, and address) into the HomeSight Access database for future mailings and for internal recording purposes. [3] [4] [5] II. [1] [2] '[3] [4] [5] [6] [7] All requests for Program information are responded to with a Program brochure and education offering, invitation and registration instructions to a First-time Home Buyer Education Class or a Fundamentals of HomeSight Class. Interested persons register by mail or fax for available First-time Home Buyer Classes or Fundamentals of HomeSight Class indicated on HomeSighrs Quarterly Education Class Schedule. Registries are to follow the registration instructions by mailing the class registration form to HomeSight, 5117 Rainier Ave. S:, Seattle, WA 98118 or faxing it to (206) 723.7137. Community Outreach Coordinator or apprOpriate staff at HomeSight enters all registration information into the HomeSight Access database for registration confirmation, facilities reservation, and internal recording/reporting purposes. First-time Home Buyer Workshop (WSHFC Certified) All Jurisdictions The First-time Home Buyer Workshop is 5-hours in duration. Workshops will be offered so that attendees can complete the class in one day or two days (two 2.5-hour sessions). Any and all attendees not completing the class will not receive Washington State Housing Finance Commission certification. This Workshop covers the following topics in detail: Program Fundamentals HomeSight Financing and Guidelines Housing Expense Limitations Basic Credit Rules Debt Ration Limitations Median Income Levels Target Area The HomeSight Purchasing Process HomeSight staff will answer any questions that attendees may have concerning Workshop content. Attendees will be informed that they have completed the Workshop requirements and ill receive certification (through the mail or at a HomeSight office dudng a One-on- One Meeting if he/she wishes to pursue additional education or home buyer assistance programs) or that they have completed Part I of the Workshop and that Part II must be complete pdor to certification. Upon completion of the First-time Home Buyer Workshop, all attendees will be provided a HomeSight Application, which resembles many mortgage loan applications. HomeSight education, buyer loan assistance and development programs will be described in bdef. Facilitators will invite any and all who are interested in these opportunities to schedule a One-on-One Meeting. At this time no childcare facilities are available during workshops. No children are admissible. III. [~] [2] [3] [4] [5] [6] [7] HomeSight One-on-One Meeting (Initially 2 Hours, on average) All Jurisdictions Persons interested in pursuing homeownership who wish to establish a baseline financial situation and to prepare/outline goals for the purchase process are provided the opportunity to meet with a HomeSight Affordable Housing Officer following the First-time Home Buyer Workshop or Fundamentals of HomeSight Class. First-time Home Buyer Class If a person does not intend certificate will be mailed. certificates will be issued at a One-on-One Meeting. to pursue participation in the HomeSight Program, a The new HomeSight client provides an Affordable housing Officer with official (or copies of official documents) documents for establishment of a client file. Documents required include: The HomeSight Application, employment pay records for the current period (last 30-days), last 3-years filed tax returns, bankruptcy documents (if applicable), divorce decree (if applicable), child support verification (if applicable), naturalization information (if applicable), and a current checking and/or savings statement indicating current savings and/or cash for purchase down payment. The HomeSight Affordable Housing Officer gathers required file documentation and reviews the client(s) 3 bureau (TUC, EFX, and XPN) to establish a current position. If a client does not provide the Affordable Housing Officer with a current credit report (90-days or younger) a report can be ordered for a nominal fee (currently $30.00 per individual). The Affordable Housing Officer will utilize these documents to calculate the client's affordability and determine home buyer assistance eligibility. Based on the client's affordability and home buyer assistance eligibility, the Affordable Housing Officer and client discuss purchase potential and possibilities. It is at this time that Home Buyer Action and Credit Action Plans are outlined. These plans outline steps a client must complete to achieve home ownership or could include savings goals. Steps could include opening a savings account, creating a budget, paying Iow balance credit cards to decrease a debt ratio or even to mail a forgotten tax form to the Affordable Housing Officer to complete a client file. A client is assigned to Education Track I or Education Track 2. Track 1: Approximately g-hours · Credit Score of 660 or higher · Have adequate savings Compete items on Home Buyer Action Plan Complete Legal/Estate Planning Workshop Complete 203(k) Loan Workshop (if applicable) Household Pre-qualified, provided HomeSight Wait List number Household selects a lender Follow-up One-on-One Meeting with Home Loan Specialist Household prepared for loan closing Track 2: Approximately 13-Hours · Credit Score of 659 or lower · Have other debt, cash or credit issues to be resolved · " Complete items on Home Buyer Action Plan · / Complete Budget Workshop ¢' Complete Legal/Estate Planning Workshop v' Complete Mortgage Default/Home Maintenance Workshop ,/ Complete 203(k) (if applicable) ," Household Pre-qualified, provided HomeSight Wait List number · " Follow-up One-on-One Meeting with Home Loan Specialist -" Household prepared for loan closing IV. Application and Case Preparation (One-on-One in Detail) A. Overview [1] [21 Completed HomeSight Application Forms will be submitted to a HomeSight Affordable Housing Officer at an initial One-on-One Meeting (to be scheduled between an Affordable Housing Officer and the interested applicant(s). Minimum documentation required for file set-up includes: income information (pay stubs and documentation of other income such as child support or alimony) and $30.00 for a credit report (if a current, less than 90-days old report is not provided by the applicant). Additional documentation required includes: the last 3-years filed tax retums, divorce decree (if applicable), bankruptcy documentation (if applicable), and/or naturalization documents (if applicable). For clients not providing additional documentation required for complete file set~up, 30- days will be provided to submit this information. Incomplete files (older than 30-days) will change client status from "Active" to "Inactive" at the discretion of an Affordable Housing Officer. [1] [2] [3] [4] [5] [6] B. HomeSight Underwriting Guidelines "First-time Home Buyer", defined: A person or persons not having owned a hope (includes manufactured homes, mobile homes, condominiums, townhomes/houses, and houses) within the last 3-years. All HomeSight buyers (wishing to receive home buyer loan assistance) must be first-time home buyers. Tax Filings: Each applicant must have'filed a minimum of 2-years' tax returns. See Unden/vriting Guideline Exceptions section '~'l-ax Filings", for exceptions. Employment History: Each applicant must have established a work history consisting of a minimum of 2-years in his/her current occupational field. See Underwriting Guideline Exceptions section "Employment History", for exceptions. Debt/Income Ratios: The deb~ncome ratio is the summation of an applicant's installment payments and revolving payments per month divided by the monthly household income. The ratio (installments and revolving debt/income) should not exceed 12% of the applicant's gross monthly income combined with a minimum 29% housing expense to total a back-end debt ratio of 41%. See Underwriting Guideline Exceptions section ~Debt/Income Ratios", for exceptions. Credit History: A client proceeding to the Wait List may have no outstanding collections or judgments and all accounts must be current. Client must have 12-months of clean credit prior to loan closing. Bankruptcy: Any bankruptcy filings must have been discharged for a minimum of 2- years with the exception the buyer may go to the Wait List 1-year after discharge. [7] Cash to Close: Applicants must have a minimum of 2% of the purchase price or $2,500.00, whichever is greater at the time of signing a Purchase and Sale Agreement [8] [9] for down payment and closing costs. A gift letter is acceptable for a maximum of 25% (or $625.00) of the total $2,500.00. A gift letter and/or bank statement showing the funds available for the gift must be provided to the Affordable Housing Officer. The gift does not have to be provided at the time of applicant signature of a Purchase and Sale Agreement, yet as mentioned above, documentation of the source and amount of gift must be provided at this time. The full amount of the gift must be provided to HomeSight at the time of loan closing. GIFT MONIES CANNOT BE BORROWED. If a gift is utilized as part of a buyer's earnest money, the gift is needed at the time of signing a Purchase and Sale Agreement. Determining Household Income: All household income must be disclosed in the application. It will be calculated and considered when determining potential homebuyer loan assistance eligibility. Sporadic Income a) Overtime: Overtime is considered as any work time over 8-hours in a day or any work time over 40-hours in a week. HomeSight follows Section 8 guidelines in sporadic income determination. Income is dedved from income records 2-years pdor to present date and then averaging the overtime income. This income must be verifiable, consistent income. HomeSight is aware tl~at total household income must not exceed Washington State Housing Finance Commission State Bond Program income limits. Child Support a) When determining eligibility for WSHFC Bond Program Funds, child support income will be calculated as income whether the applicant receives the support or not. The support figures indicated in court or divorce decree documents verify the amount to be calculated as income. WSHFC will not include the child support income if it has not been received for the previous six (6) month pedod. The applicant must also provide a SHS letter stating no funds have been received for the previous six (6) month period. b) HomeSight will examine child support income in the following way: In a situation (with third party documentation) where the child support recipient has gone three (3) months in the last twelve (12) month pedod without support and has received inconsistent amounts of support for nine (9) of those twelve (12) months, then child support will not be calculated as income. Total child support profile to be examined will be the prior 2-years. Inconsistent amounts of support will be averaged and calculated as household income, spanning a period of 2-years for measurement. Employment, residency or extenuating circumstances may be reasons for inconsistent support and must be considered. Seasonal Employment a) HomeSight clients who have seasonal employment will have income averaged over a 2-year period for determination of down payment assistance eligibility. Home Buyer Loan Assistance: a) Home buyer loan assistance is applied as gap financing. Currently maximum loan assistance packages are up to $35,000 per household depending on the jurisdiction application is made. When calculating all buyer loan assistance eligibility, an applicant's income at the date of signature of a Purchase and Sale b) c) Agreement is used. HomeSight will monitor future income (i.e., the time of home completion) to see if household income changes have occurred. If income has changed, a final underwriting will be performed and the loan eligibility amounts will be changed accordingly. If household income has increased, pushing the household's total gross income so that it exceeds home buyer loan assistance guidelines (guidelines depend on home buyer loan assistance source and jurisdiction), but sufficiently so that loan assistance amount cannot be covered by a first mortgage, the household may receive home buyer loan assistance to close the sale. (A situation such as this must be approved by HomeSight's Executive Director.) If income is within Bond limits, no adjustment to the down payment assistance amount is necessary, except in the instance of substantial interest rate fluctuations. [10] Affordability: [11] [12] [13] a) Household affordability is calculated from current period pay stubs. Current Period is defined as the 30-days pdor to certification/determination. See the proposal section entitled "Income Verification' for determining sporadic income. b) If a Wait List Client(s) (See Section 5 for "Buyer Wait List Selection"procedures) wishes to purchase a home with a higher bedroom capacity than determined needed, the client may "buy up" to the desired home capacity. Criterion for ability to "buy up" includes the following: Buyer must provide a minimum half (1/2) the spread between "needed" home and "desired" home. The spread can be covered by buyer cash, increased first mortgage amount or any combination of the two. Buyer must establish savings ability. Ability to save is determined by (1) previous established history of savings; and (2) future ability to save the money necessary to "buy up". In-house Reserves: Each buyer will establish a savings plan to assure that a minimum of 1 month's mortgage payment is in reserve by the time of closing. Credit Reports: During a One-on-One Meeting, HomeSight staff will order a three (3) bureau credit report for the client(s) if a current (less than 90-days old) report is not provided by the client. A minimal fee of $30.00 will be charged for this report. Credit will be monitored quarterly at no extra fee. An additional $30.00 charge will be issued at the time of pre-purchase qualification to absorb additional costs at this second level of client readiness and to pay for pedodic credit reports between the execution of the Purchase and Sale Agreement and completion of the home. HomeSight will not approve a home buyer assistance loan if any Home Buyer Education class or classes are missing from a buyer's record (requirements are identified eadier in this document for Track 1 and Track 2). Missing classes can be substituted with a One- on-One equivalent session for a $75.00 fee. [1] '[2] [3] [4] [5] [6] C. Underwriting Guideline EXceptions First-time Home Buyer Rule: HomeSight will consider qualifying an applicant for the Program if he/she has owned a home within the last 3-years provided: a) The applicant'is buying in a targeted area. Though the applicant may not qualify for federal grant fund assistance, he/she may qualify for other home buyer loan assistance funds and/or for the WSHFC Mortgage Revenue Bond Program (provided household income meets required median income limits). Underwriting in this situation is evaluated on a case-by-case basis. OR b) The applicant does not presently own a home and is a disPlaced divorcee or widow(er). OR c) The applicant does not presently own a home and has dependent children; OR d) The applicant presently appears on a mortgage but is only a co-borrower. The applicant must have never lived in the home, must have never claimed mortgage deductions on the home and must have never received rental income from the home. The applicant must be able to prove the above stipulation(s) to the satisfaction of HomeSight. Tax Filings: Recent immigrants are exempt from the tax-filings rule. Employment History: HomeSight may accept a college or vocational education related to the applicant's current occupational field and one-year in the present occupation in lieu of the 2-year minimum employment requirement. Debt/Income Ratios: If the applicant's debt/income ratio exceeds the 12% standard, HomeSight may consider underwriting the loan provided: a) For every percentage point that the debt/income ratio is above 12%, the applicant concedes 2% on his/her front (housing expense) ratio: AND b) The applicant's overage is due to "qualified" family-related expenses such as reasonable transportation expenses, student loan payments, alimony, child support payments, sporadic income, health care expenses, eldedy care, etc. Credit History: If the applicant has a strong credit letter to substantiate derogatory information, HomeSight may place the applicant's name on the Wait List. Before doing so, Affordable Housing Officers should contact the Lender representative to discuss any "gray" areas of the applicant's credit report. Bankruptcy: Unless debt restructure has occurred, bankruptcy filings must have been discharged for a minimum of 2-years prior to purchase. [8] Vo (1] [1] Cash-to-Close: NO EXCEPTIONS. Buyer(s) must have a minimum of 2% of the purchase price or $2,500.00, whichever is greater at the time of signing the Purchase and Sale Agreement for down payment and closing costs. Affordability: a) Applicants must demonstrate the ability to pay more for their housing expense in the cases of Iow personal debt. HomeSight evaluates these cases based upon past savings pattems, rental history, future income and existing debt. HomeSight may choose to contact the Lender for guidance when packaging these transactions. b) If an applicant's affordability amount falls shod of the purchase pdce of a specific piece of property HomeSight may consider increasing the applicant's home buyer assistance loan amount provided the following: The applicant's annual income falls below 70% of median income; and The affordability shortage does not exceed $5,000.00 Financing Home Buyer Loan Assistance Financing U.S. Department of Housing and Urban' Development Special Purpose Grant Funds (Noji Gardens and HUD Revitalization Neighborhoods). Each qualified applicant who is at or below 115% of median income and who is a first- time home buyer will be eligible for buyer loan benefits. Eligibility for assistance does not vary by household size and is determined at underwriting. a) Requirements of a HUD Special home Buyer Loan include: i. Must be a first-time home buyer; ii. Must earn at or below 115% of area median income (adjusted for household size); iii. Must purchase in an area(s) or project depending on availability of funds; iv. Assistance underwritten on a gap basis and disbursed based on need B. The HomeSight Hope Loan Program The City of Seattle, South King County, and Snohomish County Each qualified applicant that is at or below 80% of median income is eligible for first-time home buyer loan assistance through HomeSight's Hope Loan Program. The Hope Loan Program is a loan fund model that operates in each of HomeSight's three jurisdictions (Seattle, South King and Snohomish County). Padners for the fund are different in each jurisdiction as are the total fund balances at any given time. Each jurisdiction can target its Hope Loan funds to specific target neighborhoods to encourage ownership or to increase affordable housing opportunities; otherwise the funds are eligible for jurisdiction-wide use. Target areas can be added or deleted based on current need or achievement of loan goals. a) Requirements of the Hope Loan include: i. Must be a first-time home buyer; ii. Must eam at or below 80% of median income (adjusted for household size); [1] [1] [1] VI. [1] [2] [3] [4] iii. Must purchase (new or existing unit/home) in a judsdiction's identified pdodty area(s); iv. Assistance underwritten on a gap basis and disbursed based on need. Washington State Housing Finance Commission Funding A. Gross Income Calculation All income must be included when calculating eligibility for the WSHFC. Ovedime, part- time employment income, bonuses, dividends, interest, royalties, pensions, VA compensation, alimony, child support, social security benefits, unemployment compensation, lottery winnings, seasonal earnings, etc., received dudng the "current pedod" must be included. The "current pedod" is defined as: "The pedod beginning with the last pay stub before the loan application and ending with the date of dosing." (See "WSHFC Lender's Guide" for specifics.) B. Childcare Services Childcare Services in the home disqualify an applicant if: a) Income received from childcare is greater than 10% of the total annualized income; b) 25% or more of the income used to qualify for the mortgage loan was dedved from childcare services; c) Childcare is provided for more than one additional child outSide of the provider's own children; or d) The individual(s) are licensed childcare providers C. Marital Status Legal Separation Agreements are required for clients separated but not divorced. Buyer Wait List A. Entering the Wait List Once an Active Client(s) meets HomeSight and WSHFC underwriting guidelines, he/she (they) is eligible for Waiting List number assignment. ALL Active Clients meeting these guidelines are HomeSight "pre-qualified". Being "pre-qualified" also includes the standard: upon Purchase and Sale Agreement execution, the buyer(s) must have a minimum of twelve (12) months of clean credit. All pre-qualified buyers/applicants must have a minimum of 2% of the purchase price or $2,500.00, whichever is greater at the time of signing a Purchase and Sale Agreement for down payment and closing costs. New Available Property. As property becomes available, Wait List Clients whose affordability falls within the pdce ranges of the available homes will be contacted for site showing in order of Wait List number assignment. The site showing will include the showing of floor plans, site visit, and discussion of estimated purchase pdces. Refusal of Property. Each Wait List Client(s) has the right of refusal on the first two (2) homes offered without jeopardizing position on the Wait List. Wait List Client(s) refusing a third home will lose the assigned position on the Wait List. If the client wishes to remain on the Wait List, he/she may enter the next Wait List number assignment. [5] Home Capacity. Wait List Client(s) qualify for a specific home capacity (minimum number of bedrooms) based upon family size. Gender of the children in the household may be considered in this home capacity determination~ This information will be verified by using information provided by the client(s) on the HomeSight Application form and federal tax retums. For "Buying-Up" on home capacity, please refer to Section IV, B [10]. B. Wait List Updates [1] Home Loan Specialist will update Wait List Client's file on a monthly basis or as needed. VII. Grievances A. HomeSight [1] Any applicant who feels that he/she has not been treated fairly when dealing with the HomeSight Program, will be directed to the HomeSight Executive Director for resolution. [2] ADA grievances will be processed under the HomeSight ADA Grievance Policy. B. First Mortgage Lender [1] Any applicant who feels that he/she has not been treated faidy when dealing with the first mortgagor will be directed to the HomeSight Executive Director for resolution. The HomeSight Executive Director will refer complaint to the appropriate management representative with the lending institution or to a HUD Fair Housing Officer if the Executive Director believes a fair housing lending complaint should be formally field with federal officials. EXHIBIT C (Continued) HomeSight Loan Servicing, Loan Collection, and Loss IVlitigation By far, loan servicing is the largest component of Fund operations. Loan Servicing is the function that includes: 1. Receipt of payments; 2. Customer service; 3. Escrow administration; 4. investor accounting; and 5. Extensive and accurate record keeping on all loan accounts. HomeSight has selected Trakker for its servicing software. Trakker can clearly manage the agency's current loan portfolio with ease. HomeSight will service its own loan portfolio; policies are in accordance with the practices of the mortgage industry. General procedures have been created and approved by the Board of Directors for the RLF: · Loan file creation, management and retention · Payment Processing · Prepayment Processing · Payoff Processing. · Escrow Administration, Disbursements and Analysis · Reporting · Custodial Account Reconciliation · Loan Administration · Adverse Actions It is the responsibility of Homesight, a community-based agency, to be committed to assisting its borrowers in keeping mortgage loans current, while protecting the borrower's equity and credit rating. Collection policies and procedures are consistent with the definition of the security instruments borrowers sign at closing and include procedures for: · Identifying a delinquent loan; · Delinquency reporting (internal and external); · Late charges; · Chronic default borrowers; · Reinstatement; · Steps for Collection; · Property Inspection; and · Policies for loans serviced for other entities. Loss mitigation is the activity aimed at reducing the social, emotional and financial impacts of loan defaults on borrowers and lenders. Loss mitigation policies for the HomeSight Puget Sound Revolving Loan Fund outline the options available for borrowers including: · Special forbearance; · Refinance; · Modification; · Assumption; · Pre-foreclosure sale; · Deed-in-lieu of foreclosure; · Charge-off or Write-off; and/or · Partial claim. EXHIBIT D HomeSight Budget Goals for "200012001 Funds" in the MLA The following is the proposed allocation of Assistance Loans from the "2000 & 2001 Funds": Target for Min # of CDBG $ HOF $ HOME $ I Hslds (Challenge Grant) Date Federal Way Tukwila Uninc. KC Yr. 2003-04 Totals 150000 60000 210000 45000 50000 30000 125000 0 100000 100000 0 110000 110000 195000 50000 300000 545000 545000 10 6 4 4 24 *** * Pdmadly in VVhite Center ** To be available in Federal Way, Tukwila & U~incorporated KC. Distribution will be based on wherever buyers can find a home in those area's. *** These targets are based on the current loan limit of $25,000. This goal may not be attainable without restructuring the loan limits and type of loan products or terms. The following are the Origination Goals for the 2000-2001 Funds in the MLA: Number of Loans Originated Q1 Q2 Q3 Q4 2001 3 I 2 0 2002 2 0 3 0 2003 2 2 0 2 2004 2 2 2 I - Outcomes for 2001 thru Q2 2003 are based on actual loans advanced. - 2003-2004 outcomes are based on a conservative projection due to uncertain economy, hopefully actual production will be sooner. - Note: Quarter 3 2003 is projected at 0, as no additional loans can be originated until MLA is signed and there will be a "ramp-up" period to get borrowers back into the pipeline. EXHIBIT E After recording return to: HomeSight 5117 Rainier Avenue South Seattle, WA 981 ! 8 DEED OF TRUST (King County) Grantor/Borrower: ** Grantee/Beneficiary: Abbreviated Legal Description: Assessor's Tax Parcel I.D./t: ** COUNTY OF KING THIS DEED OF TRUST is made this [*] day of [*], 2003 between [name], [husband and wife or an married individual], as Grantor, whose address is [*], PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC., a Washington corporation, whose address is 215 Columbia Street, Seattle, Washington 98104, as Trustee, and KING COUNTY, whose address is Department of Community and Human Services, 821 Second Avenue, #500, Seattle, Washington 98104-1598, its successors and assigns, as Beneficiary. 1. Granting Clause. Grantor irrevocably grants, bargains, sells, conveys to Trustee in trust with the power of sale, all of Grantor's estate, right, title, interest, claim and demand, now owned or hereafter acquired, in and to the real property located in King County, Washington, legally described in Exhibit A hereto, which real property is not used principally for agricultural or farming purposes, together with all tenements, hereditaments, and appurtenances now or hereafter belonging or in any way appertaining to said property, and the rents, issues and profits thereof (the "Property"). 2. Subordination. This Deed of Trust is subordinated to the following: (a) That Deed of Trust dated [*], in favor of [*], securing a Deed of Trust Note in the amount of [*] and 00/100 Dollars ($[*].00), which prior Deed of Trust is recorded under King County Recording Number 3. Obligations Secured. This Deed of Trust is given for the purpose of securing each agreement of Grantor contained herein and payment of the sum of $[*] in accordance with the terms of the Deed of Trust Note of even date herewith and all renewals, modifications and extensions thereof. GRANTOR further represents, warrants, covenants and agrees as follows: 1. To keep the property in good condition and repair; to permit no waste thereof; to complete any building, structure or improvement being built or about to be built thereon; to restore promptly any building, structure or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property. 2. To perform all of its obligations secured by any deed of trust, mortgage or other lien on the property that is the subject of this Deed of Trust, whether or not such lien has priority over this Deed of Trust. Grantor shall keep the property free of all liens, c, harges and encumbrances impairing the security of this deed of trust unless consented to in writing by Beneficiary. Upon any breach of the obligations of this paragraph, Beneficiary shall have the right, without notice or demand, to declare all amounts secured hereby immediately due and payable. 3. To perform all of Grantor's obligations under those deeds of trust or other security agreements with a lien which have a priority over this Deed of Trust, including Grantor's covenants to make payments when due. 4. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire or other hazards in an amount not less than the total debt secured by this Deed of Trust naming Beneficiary as Mortgagee on said policies. The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine. Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust. In the event of foreclosure, all fights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale. 5. To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay all reasonable costs, fees and expenses in connection with this Deed of Trust, including the-expenses of the Trustee incurred in enforcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 2 7. Should Grantor fail to pay when due any taxes, assessments, insurance premiums, liens, encumbrances or other charges against the property hereinabove described, Beneficiary may.pay the same, and the amount so paid, with interest at the rate of twelve percent (12%), shall be added to and become a part of the debt secured in this Deed of Trust. IT IS MUTUALLY AGREED THAT: 1. In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion thereof as may be necessary to fully satisfy the obligation secured hereby, shall be paid to Beneficiary to be applied to said obligation. 2. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay. 3. The Trustees shall reconvey all or any part of the property covered by this Deed of Trust to the person entitled thereto on written request of the Grantor andthe Beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the Beneficiary or the person entitled thereto. 4. Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein, all sums secured hereby shall immediately become due and payable at the option of the Beneficiary. In such event and upon written request of Beneficiary, Trustee or its authorized agent shall sell the trust property, in accordance with the Deed of Trust Act of the State of Washington, at public auction to the highest bidder. In the event of a Trustee's sale, any person except Trustee may bid at Trustee's sale. Trustee shall apply the proceeds of the sale as follows: (1) to the expense of sale, including a reasonable Trustee's fee and attorney's fee; (2) to the obligation secured by this Deed of Trust; (3) the surplus, if any, shall be distributed to the persons entitled thereto. 5. Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the property which Grantor had or had the power to convey at the time of his execution of this Deed of Trust, and such as he may have acquired thereafter. Trustee's deed shall recite the facts showing that the sale was conducted in compliance with all the requirements of law and of this Deed of Trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrances for value. 6. In the event, of the death, incapacity of disability or resignation of Trustee, Beneficiary shall appoint in writing a successor trustee, and upon the recording of such appointment in the mortgage records of the county in which this Deed of Trust is recorded, the successor trustee shall be vested with all powers of the original trustee. The trustee is not obligated to notify any party hereto of pending sale under any other Deed of 'Trust or of any 3 action or proceeding in which Grantor, Trustee or Beneficiary shall be a party unless such action or proceeding is brought by the Trustee. 7. The power of sale conferred by this Deed of Trust and by the Deed of Trust Act of the State of Washington is not an exclusive remedy. Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage and obtain a judgment for any deficiency against Grantor. 8. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on their heirs, devisees, legatees, administrators, executors, successors and assigns. The term Beneficiary shall mean the holder and owner of the Note secured hereby, whether or not named as Beneficiary herein. 9. As set forth in the Deed of Trust Note secured hereby, the entire balance owing hereunder shall become immediately due and payable on any transfer, including without limitation any sale, gift, lease or mortgage, of the project subject to this deed of trust or any portion thereof, subject only to any requirements of applicable law. After any transfer causing acceleration of the amounts secured hereby in accordance with this Paragraph, all such amounts shall bear interest at twelve percent (12%) per annum or the highest rate permitted by applicable law, whichever shall be less. ['1 [*] STATE OF WASHINGTON ) ) SS. COUNTY OF KING ) I certify that I know or have satisfactory evidence that [*] is the person who appeared before me and said person acknowledged that [he/she] signed this instrument and acknowledged it to be [his/her] free and voluntary act for the uses and purposes mentioned in the instrument. 4 DATED: Notary Public Residing at (Print Name) My appointment expires STATE OF WASHINGTON ) ) COUNTY OF KING ) SS. I certify that I know or have satisfactory evidence that [*] is the person who appeared before me and said person acknowledged that [he/she] signed this instrument and acknowledged it to be [his/her] free and voluntary act for the uses and purposes mentioned in the instrument. DATED: Notary Public Residing at (Print Name) My appointment expires KING COUNTY DEED 5 EXHIBIT E DEED OF TRUST NOTE (King County) $[*] [*], 2003 Seattle, Washington [*] ['1 [*] Property Address City, State Zip Code 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I ("Borrower") promise to pay [*] and 00/100 Dollars ($[*].00) U.S. funds (this amount will be called "principal"), plus interest, to the order of HomeSight, a Washington not-for-profit corporation ("Holder" or "HomeSight"), acting on behalf of King County, Department of Community and Human Services, 821 Second Avenue, #500, Seattle, Washington 98104-1598, or such other place as the Holder of this Deed of Trust Note ("Note") may designate in writing from time to time. HomeSight is acting on behalf of King County pursuant to an agreement between HomeSight and King County to provide purchase assistance loans to first time home buyers. I understand that Holder may transfer or assign this Note. Anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the "Holder." 2. INTEREST Interest will accrue on the unpaid principal (whether the initial principal amount or the Recalculated Principal) from the date of this Note at the rate of three percent (3%) simple interest per annum calculated on a 360-day basis. 3. PAYMENTS OF PRINCIPAL AND INTEREST. A. Absent the occurrence of any of the events identified in paragraph 4 herein, payments of principal and interest under this Note shall be made as follows: Interest Payments. No payments of principal or interest shall be required by Borrower during the first seven (7) years of this Note, however, interest will accrue on the unpaid initial principal at the rate of three percent (3%) simple interest per annum. On the date which is eight (8) years from the date of this Note, all accrued but unpaid interest shall be added to the principal, and the recalculated balance shall become the principal due and owing under this Note and is referred to herein as the "Recalculated Principal." Interest shall accrue on the Recalculated Principal at the rate of three percent (3%) simple interest per annum. (2) Payments of Principal and Interest. If none of the events described in Paragraph 4A(1), 4A(2), 4A(3), or 4A(4) below occur, I will begin making monthly payments of principal and interest in the amount of [~'] Dollars and [*1/100 ($[*]) commencing on the first day of the first month following the date which is eight (8) years from the date of this Note ([*] I, 2011) with subsequent installments due on the first day of each succeeding month until the principal and all accrued interest are paid in full. The full amount of principal and interest will be due on or before [*] which is thirty eight (38) years from the date of this Note. 4. ACCELERATION OF PAYMENTS A. I understand that notwithstanding the terms of Paragraph 3 above, if any of the events described Paragraph 4A(1), 4A(2), 4A(3), or 4A(4) occur (an "Occurrence"), this Note will immediately become due in full and I will be required to pay the Holder all outstanding principal and accrued interest under Paragraph 2 above as of the date of the Occurrence, plus Shared Appreciation under Paragraph 5 below as of the date of the Occurrence (The stun of these amounts is called the "Accelerated Amount"). In addition, after the date of the Occurrence, I will be required to pay default interest at the rate of twelve percent (12%) per annum on the Accelerated Amount until the Accelerated Amount is paid in full: (1) Sell, gift, or in anY other manner convey or transfer title to the real property legally described in Exhibit A (the "Property") or any interest in the Property, except as specifically allowed by the Deed of Trust and Paragraph 4.B below (transfer includes, but is not necessarily limited to, renting, leasing, selling, passing ownership by any voluntary or involuntary means, such as by gift, will or by operation of law, or any encumbrance of the Property resulting from a lien, assessment or judgment ); (2) No longer live in the Property as my primary residence: (3) Make any statement, or provide any information (or any prior statement proves to be untrue or incorrect) or certification to the Holder which is untrue or incorrect in any material respect; or (4) Fail to comPly with any other term or condition of this Note or any other loan document. The event of an Occurrence shall be deemed a default. B. Holder's agreement to permit any of the events described in Paragraph 4A(1), 4A(2), 4A(3), or 4A(4) above without requiring payment of this Note shall not constitute a waiver of Holder's right to declare this Note due and payable in the event of any future event described in 4A(1), 4A(2), 4A(3), or 4A(4) above, including but not limited to any transfer by any person who assumes this Note, or if a person who assumes this Note no longer lives in the Property. 5. SHARED APPRECIATION A. I understand that in addition to my obligation to repay principal and interest pursuant to the terms of this Note, I am also obligated to pay Shared Appreciation pursuant to the terms of this Paragraph 5 upon the occurrence of any of the following: (1) I sell, gift, or in any other manner transfer title to the Property or any interest in the Property, except as specifically allowed by the Deed of Trust and Paragraph 4.B above (transfer includes, but is not necessarily limited to, renting, leasing, selling, passing ownership by any voluntary or involuntary means, such as by girl, will or by operation of law, or any encumbrance of the Property resulting from a lien, assessment or judgment which is superior to the County's interest); (2) No longer live in the Property as my primary residence; or (3) Prepay this Note in full or in part. B" Shared Appreciation is an amount equal to "Net Proceeds" multiplied by the "Shared ~ppreciation Fraction." (~) The "Shared Appreciation Fraction" is the fraction calculated as follows: :.< (i) Numerator: The stated original Principal amount of this Note which is $[*].00. (ii) Denominator: The costs to Maker of acquisition of the Property including the purchase price, the cost of inspections, appraisal, title insurance, operation of real estate taxes and property insurance at closing, recording and escrow fees and attorney fees, which is agreed to be $[*]. This fraction expressed as a figure is [*] Percent ([*]%) and is hereafter referred to as the Shared Appreciation Percentage. (2) Net Proceeds shall be calculated as follows: (i) the gross sales price of the Property if the Property is sold to a bona fide third party or the value of the Property as determined by an appraiser chosen by Holder if the event triggering the Shared Appreciation is other than a sale of the Property to a bona fide third party; less 3 (ii) the original amount of any loans previously approved by Holder in writing that are secured by liens against the Property, including this Note but not including Shared Appreciation on this Note or any interest on any other loans computed by reference to property value or sales proceeds plus any unpaid interest and any applicable prepayment premiums on such loans; less (iii) the costs of documented depreciable improvements made to the Property and paid for by Maker subsequent to Maker's acquisition of the Property (unless such costs are secured by liens recorded against the Property); less (iv) actual and reasonable costs of sale if the Property is sold (or the appraiser estimates of such costs if the event triggering Shared Appreciation is not a sale of the Property to a bona fide third party), including real estate commissions, real property excise tax, escrow fees, recording fees, reasonable attorneys' fees associated with the sale, if any, title insurance, and title insurance premiums. C. I understand that in the event of an occurrence described in paragraph 5A(1), 5A(2), or 5A(3) herein within eight (8) years from the date of this Note, I will be responsible for payment, in addition to principal and interest of 100% of the Shared Appreciation Fraction. D. I understand that in the event of an occurrence described in paragraph 5A(1), 5A(2), or 5A(3) herein at any time after the eighth (8th) anniversary of this Note, the Shared Appreciation Percent shall be reduced two (2%) percent each year thereafter as follows, provided however, that in no event shall the Shared Appreciation Percent be reduced below four (4%) percent. Year 8 Shared Appreciation Percent: [*]% Year 9 Shared Appreciation Percent: [*]% Year 10 Shared Appreciation Percent: [*]% Year 11 Shared Appreciation Percent: [*]% Year 12 Shared Appreciation Percent: [*]% Year 13 Shared Appreciation Percent: [*]% Year 14 Shared Appreciation Percent: [*]% Year 15 Shared Appreciation Percent: [*]% Year 16 Shared Appreciation Percent: [*]% Year 17 Year 1 § Year 19 Year 20 and each year thereafter Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% E. In no event, however, will the combined amount of interest under Paragraph 2 above and Shared Appreciation under this Paragraph 5 exceed the maximum amount of interest Holder could charge under federal or state law on the outstanding principal balance of this note. 6. PAYMENT LOCATION Unless otherwise directed in writing by Holder, all payments shall be made at the following address: o HomeSight 5117 Rainier Avenue South Seattle, Washington 98118-1929 THIS NOTE SECURED BY A DEED OF TRUST AND DEED OF TRUST RIDER WITH DEFAULT PROVISIONS In addition to the protections given to the Holder under this Note, a Deed of Trust dated [*], 2003~is being recorded against the Property, which Deed of Trust protects the Holder from possiblelOsses which might result if I do not keep the promises which I make on this Note. The Deed of Trust describes how and under what conditions a default may occur and I may be required to make immediate payment in full of all amounts that I owe under this Note. By signing this Note, I agree to be bound as "Grantor" under the Deed of Trust. 8. BORROWER'S WAIVERS I waive my rights to require the Note Holder to do certain things. Those things are: (A) To demand payment of amounts due (known as "presentment"); (B) To give notice that amounts due have not been paid (known as "notice of dishonor"); (C) To obtain an official certification of nonpayment (known as "protest"). Anyone who agrees to make payments to the Note Holder if I fail to keep my promises under this Note, or who signs this Note to transfer it to someone else also waives these rights. These persons are known as "guarantors, sureties and endorsers." 5 9. GIVING OF NOTICES Any notice that must be given to me under this Note will be given to me by delivering it or by mailing it by certified mail addressed to me at the Property address above. A notice will be delivered or mailed to me at a different address if I give the Holder written notice of my different address. I will give any notice to the Holder under this Note by mailing it by certified mail to the Holder at the address stated in Paragraph 6 above. I will mail any notice to the Holder at a different address if I am given a notice of that different address. 10. ATTORNEYS' FEES If Holder refers this Note to an attomey for collection or seeks legal advice following a default under the Note or, under any other loan document, I agree to pay reasonable attomey's fees for services performed by the Holder's attorneys, including staff attorneys, and all related costs and expenses. The Holder shall have the option of requiring immediate payment of any amount which becomes due and owing under this Paragraph or adding such amount to the principal of the loan. 11. RESPONSIBILITY OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each of us is fully and personally obligated to pay the full amount owed and to keep all of the promises made in this Note. Any guarantor, surety, or endorser of this Note (as described in Paragraph 8 above) is also obligated to do these things. The Holder may enforce its rights under this Note against each of us individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. Any person who takes over my fights or obligations under this Note will have all of my rights and must keep all of my promises made in, this Note. Any person who takes over (with or without Holder's approval) the rights or obligations of a guarantor, surety, or endorser of this Note (as described in Paragraph 8 above) is also obligated to keep all of the promises made in this Note. I understand that the consent of the Holder is required for any person to take over my obligations under this Note, and Holder may withhold such consent in its sole discretion. Until this Note is paid in full, I agree to provide information requested by Holder concerning my use of the Property as my principal residence. 12. TIME Time is of the essence in the terms of this Note. [*] KING COUNTY NOTE.doc 7 EXHIBIT F HomeSight a non-profit community devel[opment Corporation Revitalizing Communities through homeownership strategfes since 1990 Puget Sound Homeownership Revolving Loan Fund© (PSRLF) Marketing Summary Value Statement: HomeSight is a U.S. Housing and Urban Development (HUD) Approved Housing Counseling Agency and Second Mortgage Lender, State of Washington Mortgage Broker and U.S. Department of Treasury Community Development Financial Institution (CDFI) and Equal Housing Opportunity Provider dedicated to excellence in the deliverance of affordable housing services and products regardless of race, religion, gender or political affiliation. Experience: This nationally awarded and recognized Community Development Corporation (CDC) annually operating an affirmative marketing plan (see samples attached) that has resulted in providing counseling services to over 700 households annually, the addition of 300+ new clienLs annually seeking the goal of ownership and the creation of over 100 new hbme buyers every year in at least 2 counties. Objective: Promote equal home ownership opportunities for Iow- and moderate-income households in target Areas of King County through amortizing and deferred second mortgage products. Home buyer Literacy and financial coaching services available as an additional yet separate tool to ensure the Creation of successful homeowners. Target: Loan assistance is targeted to households earning at or below 80% of King County Median Income adjusted for household size. EducaUon and pre-purchase counseling is available for all interested participants regardless of household income. Broadcast Marketing Action: 1. Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through an inter-jurisdictional Metro Bus Advertising Campaign. Description: Annually HomeSight advertises its services and loan products with Metro. This campaign includes exterior bus, mini-billboards that travel on bus lines selected by HomeSight. These bus lines or travel mutes are handpicked by HomeSight to ensure exposure in key target areas. These routes travel between multiple cities and 3 counties (King, Pierce and Snohomish). Action: Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through the distribution of HomeSight services information (flyers, brochures, posters, etc.) in collaboration with target area investors. Member ~ EXHIBIT F Description: Provide target area investors with supplies of HomeSight outreach materials on a periodic bases and by request for posting in public areas such as a city hall, planning department, libraries, and other locations frequented by potential clients. In addition, investor partners may want to outreach to their own employees. On such an occasion, investor and HomeSight can jointly create flyers or paycheck inserts for example in order to share program information. Inter-Personal Outreach Action: 1. Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through one-on-one outreach opportunities in target cities and neighborhoods. Opportunities include community festivals, municipal events and others. Description: HomeSight has an established tradition of getting out to meet potential clients in target communities. Annually the agency attends an average of 9 SeaFair sanctioned and community-based festivals and events. In fact, many look for a HomeSight booth at festivals recalling that it was 'th'ere last year" and look for it because they may be ready to take the next step towards homeownership. HomeSight staff collaboratively identifies events to sponsor ,or participate in with PSRLF investors annually. Print-Ad / Display Ad Opportunities Action: Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through community-based newspapers and/or newsletters to reach specific target clientele whenever fiscally possible. Description: HomeSight, a non-profit agency with a modest market budget, explores the greatest marketing exposure avenues for the value. Whenever possible, the agency places print or display ads in culturally or community-based newspapers and/or newsletters. HomeSight intake data indicates that people learn about HomeSight programs least through this means and mostly through word of mouth and Metro Bus Ads. Web-Based Outreach Action: 1. Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through website postings, web links and more. Description: HomeSight can provide a web link to be featured on PSRLF investor websites. In addition, Investor links can be placed on the HomeSight website to familiarize interested parties with the Tukwila or Snohomish County for example. HomeSight's website (www.homesightwa.org) provides ample information about its services and products and is advertised on all HomeSight print advertisement, billboards and flyers. King County First Homes Program Participating Jurisdiction's Proportional Share of Loan Funds PARTICPATING JURISDICTION King County** Auburn* Federal Way* Kent Tukwila* TOTAL TOTAL CONTRIBUTION $575,000 $150,000 PERCENTAGE 48% 13% $315,000 $50,000 $95,O00 $1,185,000 27% 4% 8% 100% * Includes Challenge Grant (HOF) funds ** King County HOME funds will be distributed among Participating Suburban Jurisdictions and unincorporated King County according to market demand. (King County HOME funds have been distributed as follows as of September 15, 2003. This does not guarantee future distributions by jurisdiction.) Auburn Federal Way Kent Tukwila Balance of HOME to be allocated $45,200 $125,200 $89,24O $10,500 $3O4,860 KC RLF Cities Proportion - Exhibit 6 9~16-03] 09/16/2003 Exhibit H King County Housing Finance Program [] FIRST HOMES PROGRAM- SUBORDINATION POLICY Our general policy is that we will not subordinate our lien position. When homeowners refinance, we expect them to take out a large enough loan to pay off their debt to the public. Subordination requests will only be considered for improvement in rate or term of the existing superior indebtedness against the property, The County will not subordinate to take cash out consolidate unsecured debt, refinancing subordinate liens, finance the costs of educational expenses nor medical expenses. At the discretion of HomeSight requests for cash to repair or maintain the home to preserve the King County's investment may be permitted. This policy is subject to change upon written notice from King County to HomeSight. MEETING DATE: October 21, 2003 ITEM# CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Addition of Review of Sign Regulations for Free-Way-Oriented Businesses to 2003 Planning Commission Work Program. CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: October 6, 2003 LUTC handout SUMMARY/BACKGROUND: At the September 29, 2003 LUTC meeting, a letter was received from Ron Gintz requesting the Council look at sign regulations as they relate to businesses with a physical orientation to the freeway. The LUTC gave staff direction to bring back the remaining 2003 Planning Commission Work Program with a recommendation about where the item should be placed. On October 6, 2003, the LUTC reviewed the remaining 2003 Planning Commission Work Program and agreed with staff recommendations. CITY COUNCIL COMMITTEE RECOMMENDATION: Recommendation to full Council to add the review of sign regulations as related to freeway-oriented businesses to the 2003 Planning Commission Work Program. PROPOSED MOTION: I move approval to add the review of sign regulations as they relate to freeway-oriented businesses to the 2003 Planning Commission Work Program. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1ST reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 ITEMS LEFT ON 2003 PLANNING COMMISSION/Long Range Planning WORK PROGRAM 2003 COMPREHENSIVE PLAN UPDATE- Margaret Clark with assistance from consultant *PLANNED ACTION SEPA - Patrick Doherty is Lead. Scoping Meeting complete. Consultants hired. PAA STUDY- Rox Burhans is the Lead. Project still needs environmental review and will be incorporated in the Comp Plan process. PAA PROJECTS- Rox and Greg Fewins are working on with some help from Kathy & Margaret. OVER-SIZED VEHICLES- Sent back to Planning Commission. Martin Nordby is Lead. WELLHEAD PROTECTION- Required by State Law. We have applied for a grant. No staff assigned, but most likely consultant will complete. SIGN CHANGES FOR FREEWAY-ORIENTED USES- HAS BEEN ASSIGNED TO Betty Cruz SIGN CHANGES RELATED TO ATHLETIC FIELDS- Staff Report started. Kathy is working on. AMENDMENT ELATING TO LARGE RETAIL ESTABLISHMENTS IN CITY CENTER CORE AND FRAME- Patrick & Rox. Project on hold. AMENDMENTS RELATING TO DEVELOPMENT REGULATIONS FOR MULTIPLE FAMILY DEVELOPMENT IN THE CITY CENTER CORE & FRAME. AMENDMENTS RELATING TO PROCESSING AND STANDARDS FOR ESSENTIAL PUBLIC FACILITIES. Not started. AMENDMENTS TO SETBACK REQUIREMENTS IN THE CITY CENTER CORE, FRAME & NEIGHBORHOOD BUSINESS ZONES. BUSINESS PARK ZONE USE CHART- not started REQUIRED TRAFFIC RELATED NEIGHBORHOOD MEETINGS, WHEN NECESSARY- Traffic Division of Public Works will be the Lead. Not started MEETING DATE: October 21, 2003 ITEM# CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: BATHYMETRY MAPPING CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: Memo to Land Use / Transportation Committee dated September 29, 2003. SUMMARY/BACKGROUND: The City of Federal Way is a partner in the Green/Duwamish and Central Puget Sound Watersheds (WRIA 9) Forum. The mission of the Forum is to develop a salmon habitat plan that will guide local jurisdictions in protecting and restoring salmon habitat within the watershed. The watershed includes the northern part of the City of Federal Way. One specific mapping effort being addressed by the Watershed Forum is to map topographic elevations under water, also called bathymetry. Bathymetry information provides a three dimensional view of the marine environment. Knowing elevations of the land under water can aid in identifying the extent of important salmon habitat areas and existing anthropogenic modifications such as outfalls, docks, piers, bulkheads, and landfills. Bathymetry information will assist the Surface Water Management Department in managing outfalls, seeps, freshwater inputs, and shoreline erosion. To support the bathymetric mapping of WRIA 9, the King Conservation District has granted funds to the Washington Department of Fish and Wildlife to conduct mapping within King County. Since the City of Federal Way is not a member of the district, the City is being asked to contribute directly to the costs of the bathymetric mapping in order to complete the mapping of the entire watershed. In addition, staff has requested the mapping effort include Federal Way shoreline outside the WRIA 9 boundary so that the entire city will be completed. The estimated cost of bathymetry mapping for the entire shoreline within the City of Federal Way is $5,123. The Watershed Forum will contribute $58,633 and the City of Seattle will contribute an additional $37,000 for a total of $100, 756. Therefore, the City of Federal Way would be contributing 5% of the total bathymetry mapping effort in WRIA 9. Attached is a scope of work (Attachment A) for the mapping effort that outlines the specific mapping activities and work products. In addition, the attachment includes a letter from the WRIA 9 Forum outlining its expectations of the mapping project. Additional costs for mapping other attributes such as substrate, vegetation and anthropogenic structures are currently being negotiated with the Watershed Forum. Surface Water Management will continue to coordinate these additional mapping efforts with the Community Development Department to assist in meeting requirements of the shoreline under the Shoreline Master Program. CITY COUNCIL COMMITTEE RECOMMENDATION: At its September 29, 2003 meeting, the Land Use/Transportation Committee recommended placing the following item on the October 21, 2003, City Council agenda for consideration: Approve expending no more than $6,000 Surface Water Management's Small Works CIP budget to conduct bathymetric mapping of the marine shoreline within the City of Federal Way through an existing ILA with King County. PROPOSED MOTION: "I move to approve expending no more than $6,000 Surface Water Management's Small Works CIP budget to conduct bathymetric mapping of the marine shoreline within the City of Federal Way through an existing ILA with King County." '~"T~Y'"M'5~'~"~i~'"~P;R~'~L'i ................................. ~ (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1sT reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 CITY OF ~ Federal Way DATE: TO: FROM: VIA: SUBJECT: September 29, 2003 Eric Faison, Chair Land Use and Transportation Com~nittee Paul A. Bucich, Surface Water Manage[' ¥'.~,). David H. Mo~~anager Bathymetry Mapping BACKGROUND The City of Federal Way is a partner in the Green/Duwamish and Central Puget Sound Watersheds (WRIA 9) Fort/m. The mission of the Forum is to develop a salmon habitat plan that will guide local jurisdictions in protecting and restoring salmon habitat within the watershed. The watershed includes the northern part of the City of Federal Way. The salmon habitat plan is currently being developed. However, some parts of the habitat plan require additional scientific and technical study before policy recommendations can be developed. One such technical study is basic mapping of the marine shoreline. At this time, there is no comprehensive mapping of the marine shoreline th:at identifies various marine shoreline features such as elevation, substrate, vegetation, marine water energy, sediment transport, and anthropogenic structures. Understanding these shoreline characteristics will aid in identifying existing salmon habitat areas for migration and refuge as well as identifying areas in need of restoration. As the main channel of movement for salmon, the shoreline environment is a critical piece of the salmon habitat restoration planning effort. Salmon use the shoreline to grow and migrate out to the Pacific Ocean. Salmon using the Federal Way shoreline likely come from Hylebos and Joe's Creek, South Puget Sound rivers such as the Nisqually and Puyallup, as well as salmon from northern areas that migrate south in order to find refuge and food. The Watershed Forum is working to fill these data gaps to ensure the most accurate information is used in assembling the salmon habitat plan. In addition, such data will assist local jurisdictions, including Federal Way, in meeting recently updated requirements of the Shoreline Master Program. Such mapping efforts will provide a basic inventory of the shoreline upon which the City can update its land use planning efforts for the marine shoreline. Updates to the City of Federal Way's Shoreline Master Program are required by 2009. One specific mapping effort being addressed by the Watershed Forum is to map topographic elevations under water, also called bathymetry. Bathymetry information provides a three dimensional view of the marine environment. Knowing elevations of the land under water can aid in identifying the extent of important salmon habitat areas and existing anthropogenic modifications such as outfalls, docks, piers, bulkheads, and landfills. Bathymetry information will assist the Surface Water Management Department in managing outfalls, seeps, freshwater inputs, and shoreline erosion. Bathymetry mapping is being coordinated in a larger regional mapping effort with the Washington Department of Fish and Wildlife in partnership with the federal government. Areas of Puget Sound, Straits of Juan de Fuca and the Columbia River will be mapped using Light Detection and Ranging (LiDAR) technology. This is the first time this technology will be applied in Puget Sound and represents a significant opportunity to contribute to the base of knowledge about the Puget Sound shoreline. LiDAR is a preferred option because it can map up to 30 feet deep, gives a high level of resolution, and matches up well with land based topographic maps. In addition, the region- wide effort will save on expensive mobilization costs. To support the bathymetric mapping of WRIA 9, the King Conservation District has granted funds to the Washington Department offish and Wildlife to conduct mapping within King County. Since the City of Federal Way is not a member of the district, the City is being asked to contribute directly to the costs of the bathymetric mapping in order to complete the mapping of the entire watershed. In addition, staffhas requested the mapping effort include Federal Way shoreline outside the WRIA 9 boundary so that the entire city will be completed. The estimated cost ofbathymetry mapping for the entire shoreline within the City of Federal Way is $5,123. The Watershed Forum will contribute $58,633 and the City of Seattle will contribute an additional $37,000 for a total orS100,756. Therefore, the City of Federal Way would be contributing 5% of the total bathymetry mapping effort in WRiA 9. Attached is a scope of work (Attachment A) for the mapping effort that outlines the specific mapping activities and work products. In addition, the attachment includes a letter from the WRIA 9 Forum outlining its expectations of the mapping project. Additional costs for mapping other attributes such as substrate, vegetation and anthropogenic structures are currently being negotiated with the Watershed Forum. Surface Water Management will continue to coordinate these additional mapping efforts with the Community Development Department to assist in meeting requirements of the shoreline under the Shoreline Master Program. FUNDING AVAILABLE The project will be funded through an existing Inter~Local Agreement with King County and will use existing funding from the Stormwater Utility small works fund, 304-3100-111-596-42-410. The project is forecasted to start in mid October with the aerial flight and have the data reduced and delivered in a GIS format by early 2004. RECOMMENDATION Staff requests that the Committee place the following recommendation on the October 21 st, 2003 City Council Consent Agenda: Approve expending no more than $6,000 Surface Water Management's Small Works CIP budget to conduct bathymetric mapping of the marine shoreline within the City of Federal Way through an existing ILA with King County. REP ' ' ' ' ... ' ~Faison, Chair ~McColgan, Member Michael Pa~e bet II CC: Project File - Shoreline Bathymetric Mapping Project Day File WATER RESOURCE I AND Algona Auburn Black Diamond Burien Covington Des Moines EnumClaw Federal Way Kent King £0un~y Maple Valley Normandy Park Renton SeaTac Seattle Tacoma Tukwila NVENTORY AREA 9 (WRIA RECEIVED August 6, 2003 Bernie Hargrave USACOE Nearshore Project Manager P.O. Box 3755 Seattle, WA 98124 Tim Smith WDFW Special Assistant to Director Nearshore Local Project Co-Manager 600 Capitol Way N. Olympia, WA 98501-1091 Scott Redman Puget Sound Action Team Nearshore Local Project Co-Manager P. O. Box 40900 Olympia, WA 98504-0900 Re: Letter of Agreement in Support of LiDAR Survey Gentlemen: 9) FORUM This letter, written on behalf of the local jurisdictions of Water Resource Inventory Area (WRIA) 9, is to confirm the understanding with representatives of the Puget Sound Nearshore Ecosystem Restoration Project (PSNERP) for the completion of the Light Detection and Ranging (LiDAR) survey on the Puget Sound shoreline within the limits of King County. As. shown on the enclosed map, the area to be .__surveyed ~s located on the eastem s-[iore'of Puget Sound from the southern City Of Seattle limit to the southern limit of the City of Des Moines and includes all of the shorelines of Vashon and Maury Islands. The purpose of the survey is to obtain the existing nearshore bathymetric conditions within the mapped areas. It is understood that the WRIA 9 portion of the cost of the LiDAR survey work is $63,756.00 $5,122.56 $58,633.44 estimated as follows: Total estimated cost: Estimated cost for Federal Way Cost for balance ofWRIA 9 (not including Seattle) The WRIA 9 costs (not including Federal Way) will be borne by WRIA 9 Forum allocated King Conservation District (KCD) funds under a grant between KCD and the Washington Department of Fish and Wildlife (WDFW), local project manager for PSNERP. The grant application will be reviewed by the KCD board at its August, 2003 meeting. Additional expectations for this grant are as follows: · Both the City of Seattle and the City of Federal Way will be included in the LiDAR survey, but each of those jurisdictions will be responsible for its share of the LiDAR survey costs. · Survey field work will be completed in August 2003 and all work products shall be delivered not later than November 30, 2003. · Additional details for this work are in the attached scope and maps. WRIA 9 is relying on completion of the LiDAR survey within the agreed upon timeframe for integration into the scientific framework for the Habitat Plan. If this information is not consistent with your understanding, or if you have any questions, please contact me at 206-296-8069 or doug.osterman(~,metrokc.gov. Sincerely, Douglas Osterman WRIA 9 Coordinator Encls. August 6, 2003 Scope of Work Surveying and Mapping Hydrographic LiDAR and Topographic LiDAR Acquisition King County Department of Natural Resources (on behalf of Watershed Resource Inventory Area 9 Technical Committee) Puget Sound, Washington 1 .General a. Location: The project covers the Puget Sound shoreline within the limits of King County. 'The area is located on the eastern shore of Puget Sound from the southern City of Seattle limit to the southern city limit of the City of Des Moines and includes all of the shorelines of Yashon and Maury Islands. See Enclosure 1 for an image of the project. b.Purpose: The purpose of this survey is to obtain the existing near shore bathymetric conditions along the areas as outlined in Enclosures 1. c. Compliance: Surveying and Mapping shall be in strict compliance with EM-1110-1-1000 for Photogrammetric Mapping, EM-1110-1-1002 Survey Markers and Monumentation, EM- 1110-1-1003 NAVSTAR Global Positioning System Surveying, EM- 1110-1-1004 Deformation Monitoring and Control Surveying, EM-1110-1-1005 Topographic Surveying, EM- 1110-2-1003 Hydrographic Surveying, EM-1110-1-2909 Geospatial Data and System, Th-Services A/E/C CADD Standards, Tri-Services Spatial Data Standards, and Related Spatial Data Products. d.Rights-of-Entry: The Contractor will be responsible for contacting all property owners and obtaining rights-of-entry. The Contractor will be responsible for gaining access to any area restricting over flights. e. Safety: Operations shall be in full compliance with appropriate Federal, State, County and City safety rules and regulations. f. The contractor's employees will at all times conduct themselves in a manner compatible with the non-personal services nature of this contractual instrument. The contractor's workforce will under no circumstances allow themselves to be under the supervision and control of a Government officer or emPloyee. 2. Survey Requirements a. Hydrographic Lidar: Hydrographic lidar data are required inside the hatched area as shown on Enclosure 1. Requirements for survey are spot density shall be a minimum of 4 meters by 4 meters, vertical elevations shall 08/06/03 PSNERP - LiDAR Scope be accurate to +/- 25 cm (lcd) and horizontal positioning shall be accurate to +/- 3 m (lcd). All flight lines shall have a minimum of 25% sidelap with adjacent flight lines and at least three cross flight lines are required. Maximum depth of the Light Detection and Ranging (LIDAR) penetration is dependent upon water clarity; the maximum depth of detection is to three times Secchi depth. Therefore, the survey should be flown on days when the weather and water quality are present to reasonably assure the success of data collection at the survey sites. Thales GeoSolutions and JALBTCX will monitor the long-range weather forecast for the Puget Sound area leading up to the target survey window. During the same period, the USGS, if willing, will conduct Secchi Disk measurements to confirm that water quality is acceptable for survey. After consultation with the USGS, Thales GeoSolutions and JALBTCX will make a decision regarding mobilization. This decision will be based on both weather forecasts and water clarity information. Areas where no depths are collected due to poor water clarity shall be re-flown when and if conditions are better suited for bathymetric lidar collection in that specific area during this project mobilization. After the second attempt, if no depths are collected, a meeting shall be held between USGS, Thales GeoSolutions and JALBTCX to evaluate the reasons for no depth at that location. Thales GeoSolutions and JALBTCX shall not be responsible for remobilizing at a later date to fill in these holes, however. b.Topographic Lidar: Topographic lidar data will be collected along the shoreline of the survey area as outlined on Enclosure 1,from waters edge inland for approximately 100 meters. This data will be used primarily to QC the bathymetric LIDAR data where there is overlap, though topographic data where there is no tree canopy shall be delivered. The topographic survey requirements are vertical elevations shall be accurate to +/- 25 cm (lcy) and horizontal positioning shall be accurate to +/- 3 meter (lcd). The topographic lidar data shall be collected at a minimum of 3 meter by 1 meter spot spacing. A minimum swath width of 100 meters shall be provided along all shoreline and beaches within the limits of the survey area. All flight lines shall have a minimum 25% with adjacent flight lines. Topographic data (clipped to remove areas with tree canopy) and hydrographic data are to be merged to form one digital terrain model. c. Horizontal Control and Datum: Any horizontal control used for this project shall be referenced to a published monument with a position quality of at least First Order Class I. The final projection for this project shall be the Washington State Plane North projection, spheroid GRS80, NAD83, units of Feet. d. Vertical Control and Datum: Any vertical control used for this project shall be referenced to a published monument with a position quality of at least Second Order Class I. The vertical datum for this project shall be WGS84 Ellipsoid heights, NAVD88, and MLLW with the units of Feet. NAVD88 08/06/03 PSNERP - LiDAR Scope elevations are to be determined from Geoid99 and MLLW elevations are to be determined from the difference between NAVD88 and MLLW at the control monument used as the GPS base station at each survey area. 3.Digital Data a. Bathymetric Data: The Contractor shall make the necessary computations to verify the accuracy of all measurements and apply the proper theory of location in accordance with the law or precedent. The contractor shall compute and tabulate the horizontal and vertical positions to include the application of any GPS kinematic data, tidal or water level corrections for all hydrographic lidar data collected. The contractor shall review and edit all hydro data for discrepancies before combining with final DTM. A copy of the raw waveform data with viewer and processed output information shall be provided to the client. b.Topographic Data: The Contractor shall make the necessary computations to verify the accuracy of all measurements and apply the proper theory of location in accordance with the law or precedent. The Contractor shall compute and tabulate the horizontal and vertical positions to include the application of any GPS kinematic data corrections for all topographic lidar data collected. The Contractor shall review and edit all topographic data for discrepancies before combining with final DTM. c. All digital point data shall be provided with horizontal position (X and Y) recorded of the estimated beam center recorded to the nearest 1.0 foot, · vertical position (Z) recorded to the nearest 0.1 foot, and time recorded to the nearest microsecond. d. DTM: The Digital Terrain Model (DTM) shall be developed from the combined Hydrographic and Topographic lidar data sets (exclusive of areas where there is tree canopy). The DTM shall be of adequate density and quality to produce contours at a 0.5-meter contour interval, though contours will not actually be delivered. All data used in the development of the DTM shall be delivered in ASCII with the following space delimited format: x y z time Julian date. Time shall be recorded to the nearest microsecond. e. Coverage Map: A coverage map depicting the survey limits and the area where elevations were obtained with in the survey limits for each of the three sites shall be created in shape file format compatible with ArcView 3.2. f. Imagery: Digital images collected with the SHOALS 1000 T System are to be supplied to the client in JPEG format with time tag data. The time tag information can be used to associate images with the aircraft trajectory and orientation data. 08/06/03 PSNERP - LiDAR Scope g. Metadata: The metadata describes the content, identification, data quality, spatial data organization, spatial reference, entity and attribute information, distribution, metadata reference, and other characteristics of data. Each survey project shall have metadata submitted with the final data submittal. All metadata submitted must be compliant with the Federal Geographic Data Committee Standard "Content Standard for Digital Geospatial Metadata", FGDC-STD-001-1998. This standard is available for download from www.fgdc.gov. A graphical, annotated workbook explaining the standard is available in PDF format at www.fgdc.gov. 4.Quality Control / Quality Assurance: In order to determine the internal reproducibility of the data collected a series of DTM comparisons with statistical analysis shall be performed. As specified in section 2a, at least three hydrographic lidar tie lines shall be flown in each survey area. During processing of the hydrographic and topographic lidar data, three DTMs shall be produced for each area. One DTM shall be produced for the bathymetric lidar data, one shall be produced for the bathymetric lidar tie line data, and one shall be produced for the topographic lidar data. These DTMs shall then be compared and difference DTMs produced. A difference DTM between the bathymetric lidar DTM and topographic lidar DTM shall be produced and a difference DTM between the bathymetric lidar DTM and the bathymetric lidar tie line DTM shall also be produced. A statistical analysis of the difference DTM grid nodes can then be performed. Such a process will verify the internal reproducibility of the data collected in each survey area. 5.Report of Survey: The Contractor shall furnish a digital (*.doc) file with the final deliverable. The report shall include Right-of-Entry information, Control monuments Designation recovered, destroyed, fixed, included in control network, dates of field survey collection, types of equipment and software used such airplane, quality control checks, and processing software version. The survey report shall document the formats of all data files delivered under heading 6, below. The survey report shall include what base stations are utilized for the kinematic data collection. Unique circumstances and/or issues related to this survey, general approach/methodology to this survey. Along with any other data required in accordance with the law or precedent and for the Corps of Engineers to publish the results of the survey. 6.Deliverables: On completion, all data required shall be delivered or mailed to the Spatial Data Branch at the address and attention to the Point of Contact shown in 7 below. Required data shall be delivered on either DVD or CD. Required data shall be accompanied by a properly numbered, dated and signed letter or shipping form, in duplicate, listing the materials being transmitted. All costs of deliveries shall be bome by the Contractor. Items to be delivered include, but are not limited to the following: 08/06/03 PSNERP - LiDAR Scope a. 1 each copy of all Horizontal and Vertical Field books used for this survey. b. 1 each digital copy of the X, Y, Z, and time fixed-format ASCII file with all data points c. 1 each digital copy of the X, Y, Z, and time fixed-format ASCII file with all data points used to develop DTM. do 1 each digital copy of the aircraft trajectory for each period of data acquisition, with X, Y, Z, heading, pitch, and roll data recorded at intervals of 1 second (1/2 second will be provided if available). e. 1 each copy of the raw waveform and output information collected and processed. A Viewer will be provided to visualize the full waveform data. f. 1 each digital copy of Data Coverage files in ArcView shape file format. g. 1 each digital copy of all time-stamped JPEG images. h. leach hardcopy and digital copy of Report of Survey i. 1 each hardcopy and digital copy ofmetadata file (*.met and *.gen) using CORPSMET 95. 7. Point of Contact: US Army Corps of Engineers Spatial Data Branch (OP-J) Attn: Eddie Culpepper 109 St Joseph Street Mobile, AL 36602 251 690 3467 8.Schedule: Field work shall be completed NLT August 31, 2003 and digital data shall be delivered NLT November 30, 2003. 9. Rights to Data: King County Department of Natural Resources (on behalf of WR/A 9 Technical Committee), USGS, JALBTCX, and Thales GeoSolutions shall have full, unrestricted rights to all data and imagery delivered under this contract. 08/06/03 PSNERP - LiDAR Scope 117 102 70 2 1C5 87 I08 61 22 52 G ~c~d ow~ Pt Fi O 2.5~ 22h 5M'3' Pt Fremont FI R 6S Pt T~*: (WEST t 91 102 Ii 08/06/03 PSNERP - LiDAR Scope ~ Survey with ~ KCD dollars ~:!~!:i~i~i~iiiiii:i:i:i:i:!:!~i S u rv ey wit h/i f (!i:.i::::iii:;~L(~:.::~:-::i::;~i~ Fed era I do II ar s lidar area map (768x 1022x24b jpeg) VASHON MAU RY NO R MAN DY PARK INES MEETING DATE: October 21, 2003 CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Quadrant Residential South Cluster Preliminary Plat, File No. 98-104313-00- SU BUDGET IMPACT: CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER Amount Budgeted: $0 Expenditure Amt.: $0 Contingency Req'd: $0 ATTACHMENTS: September 24, 2003, memorandum from Deb Barker to the City Council Land Use/Transportation Committee, with attachments including Hearing Examiner September 8, 2003, Recommendation and draft preliminary plat approval resolution. SUMMARY/BACKGROUND: The applicant requests approval of a ninety-lot cluster residential subdivision, as provided for under Federal Way City Code (FWCC) Chapter 20, "Subdivisions," subject to City Council approval. CITY COUNCIL COMMITTEE RECOMMENDATION: On October 6, 2003, the LUTC unanimously voted to recommend conditional approval of the Quadrant Residential South Cluster preliminary plat application to the full City Council. PROPOSED MOTION: "I move approval of the resolution approving the Quadrant Residential South Cluster preliminary plat, based on the findings and conclusions in the September 8, 2003, Recommendation by the Federal Way Hearing Examiner. CITY MANAGER APPROVAL: (BELOW TO BE COMPLETED B Y CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DE D [] TABLED/DEFER1RED~O ACTION [] MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1ST reading Enactment reading ORDINANCE # RESOLUTION # Doc. LD. 24932 CITY OF Federal Way CITY OF FEDERAL WAY DEPARTMENT OF COMMUNITY DEVELOPMENT SERVICES MEMORANDUM TO: FROM: VIA: RE: Eric Faison, Chair Land Use and Transportation Committee (LUTC) Deb Barker, Associate: Planner ~ David M~/~V~nager Preliminary Plht of Quadrant Residential South Federal Way File No: 98-104313-SU DATE: September 24, 2003 II. III. STAFF RECOMMENDATION Staff recommends the Land Use and Transportation Committee forward to the City Council a recommendation approving the Quadrant Residential South Cluster Preliminary Plat with conditions, based on the findings and conclusions in the September 8, 2003, Recommendation by the Federal Way Hearing Examiner. SUMMARY OF APPICATION The applicant requests approval of a 90 lot single-family cluster subdivision on a 40 acre parcel as provided for under Federal Way City Code (FWCC) Chapter 20, Subdivisions, subject to City Council approval. REASON FOR COUNCIL ACTION Pursuant to FWCC Section 20-127(a), the City Council issues a final decision at a public meeting after review of the Hearing Examiners recommendation. Consistent with how land use matters are currently processed by the City, preliminary plat applications are brought to City Council Land Use and Transportation Committee for review and recommendation prior to review by the full Council. IV. o HEARING EXAMINERS RECOMMENDATION On September 4, 2003, the Federal Way Hearing Examiner issued a recommendation to approve the proposed preliminary plat. On September 8, 2003, the Hearing Examiner amended his recommendation to remove irrelevant findings. A copy of both recommendations is attached. The September 8, 2003 Hearing Examiner's recommendation includes all recommendations recommended by staff. The Examiner's recommendation was issued following consideration of a staff report (attached) and testimony presented at the August 19, 2003, public hearing, and is subject to the following conditions: 1. Final plat approval shall require full compliance with drainage provisions set forth in the FWCC. Compliance may result in reducing the number and/or location of lots as shown on the approved preliminary plat. Drainage plans and analysis shall comply with the 1998 KCSWDM and amendments adopted by the City of Federal Way. City of Federal Way approval of the drainage and roadway plans is required prior to any construction. B° The runoff control facilities within Residential South shall be located within separate tracts (tract A and B) that are landscaped to screen the facility from the right-of-way and adjacent residential uses and to allow for appropriate maintenance of the facility, and shall be dedicated to the City of Federal Way. Tracts C, D, E, F, G, H, I J, L, and M shall be owned, landscaped, and maintained by the homeowners association. The homeowners association shall also maintain screening vegetation in Tracts A and B. A landscape plan for Tracts C, D, E, F, G, I, J, L and M shall be submitted to the City for review and approval as part of the plan. C. Stormwater quality treatment shall be provided using the basic water quality menu options of the 1998 KCSWDM, as amended by the City of Federal Way. D. Stormwater from Tract A shall be directed to the buffer of Wetland A-C via a level flow spreader. The applicant shall be required to construct all storm drainage improvements necessary to mitigate all identified conveyance problems, whether existing or resulting from the Plat's development, as identified during engineering plan review and as required by the Public Works Director. Engineering approval shall not be granted if it is determined that proposed mitigation is not adequate to address the impacts of the project. The final plat drawing shall dedicate all usable open space in an open space tracts to be owned in common and maintained by property owners of the proposed subdivision, and shall prohibit removal or disturbance of vegetation and landscaping within the tract, except as necessary for maintenance or replacement of existing plantings and as approved by the City. Additional vegetation may be located in open space tracts to meet conditions as approved by the City. A note shall be included on the final plat map that the open space tracts shall not be further subdivided, may not be developed with any buildings or other structures except as may be approved by the City for recreational purposes only for the benefit of the homeowners, and may not be used for financial gain. Preliminary Plat of Quadrant Residential South LUTC Memorandum Page 2 Doc. I.D. 24610 4. Prior to issuance of construction permits, a final landscape plan prepared by a licensed landscape architect shall be submitted to the City for approval, and shall include the following elements: A. Open space and/or park landscaping in Tracts C, D, E, F, G, H, I, J, L, and M; B. Street trees in right-of-way landscape planter strips; C. Tree preservation plan; and Visual screening of the Quadrant Residential South storm drainage facilities in Tracts A and B from the adjacent Road A and from adjacent residential lots with landscaping and fencing. Cyclone fencing, if used, shall be coated black or green and shall be screened by vegetation. o The proposed subdivision shall comply with the 1993 King County Road Standards ( KCRS) as amended by the City of Federal Way for this project, including the following requirements: Ao Roads A and B shall be improved along the frontage of the project as minor collectors, including 60-foot wide right-of-way and 36-foot wide pavement width, curb and gutter, four-foot planter strips, and five-foot wide sidewalks on both sides of the roadway, streetlights, and street trees. Road C shall be improved as a local street, to include a 52-foot wide right-of-way and 28- foot pavement width. Vertical curb and gutter, four-foot planter strips, and five-foot wide sidewalks shall be provided on both sides of the street. Streetlights and street trees shall also be provided. Road D shall be improved as a cul-de-sac street with a 50-foot radius. Vertical curb and gutter, four-foot wide planter strip, and five-foot wide sidewalk shall be provided on all sides of the street. Streetlights and street trees shall also be provided. Do Tract K shall be improved to a private access tract standard and shall be limited to serving a maximum of four lots. The lots that abut these tracts for access shall have undivided ownership of the tract and be responsible for its maintenance. The maintenance agreement for the private access tracts shall be included on the plat and the language approved by the City. Improvements shall include a 36-foot tract width and 20-foot pavement width. Vertical curb and gutter and five-foot wide sidewalk without planter strips shall be provided on one side. Tract length shall be limited to a maximum of 150 feet from face of curb to end of tract, unless a 90-foot diameter turnaround is provided. E. All streets shall have a minimum pavement section of three inches Class B asphalt over six inches of crushed surfacing to support the traffic loads. o Due to eagle nest adjacency, seasonal construction restrictions from February 1 to May 1 and July 1 to July 15 shall be imposed for all clearing, grading, filling, and related construction activities contained in the amended BEMP as approved by WDFW, and shall be applied to plat construction as part of engineering review. Preliminary Plat of Quadrant Residential South LUTC Memorandum Page 3 Doc. I.D. 24610 Conditions imposed by the Federal Way Hearing Examiner and the Director of Community Development Services for wetland and wetland setback area intrusions shall be depicted on construction drawings and the final plat drawings as appropriate. Prior to final plat approval, open rail fencing and appropriate signage shall be installed to separate the planned and future parks and pedestrian trails from wetlands and wetland setback areas, and shall be designed in accordance with BEMP conditions for fencing and signage. The final plat shall contain the requirement that 177 replacement trees shall be planted on individual building lots within the subdivision prior to final inspection of residential building activities on the individual lot and in conformance with FWCC section 22- 1568(5)(b). 10. The final plat shall contain the requirement that all future park and pedestrian trail improvements adjacent to wetland and wetland setback areas shall be designed to follow recommendations of a Wildlife Biologist, and shall be submitted to the Department of Community Development Services for review. 11. The applicant shall provide to the President of the North Lake Improvement Club a copy of the final storm drainage plans at least two weeks prior to the City's approval thereof. The Improvement Club may provide comments with said two week period to the City regarding said plans. However, the sole authority to approve or disapprove said plans remains that of the City. Vo PROCEDURAL SUMMARY December 17, 1998 Notice of Application issued. June 18,2003 Environmental determination issued. August2,2003 Notice of Public Hearing issued. Augustl9,2003 Hearing Examiner Public Hearing. September 4, 2003 Hearing Examiner Recommendation issued. September 8, 2003 Hearing Examiner issued Amended Recommendation October6,2003 City Council Land Use and Transportation Committee meeting. October 21, 2003 City Council meeting° VI. DECISIONAL CRITERIA The Hearing Examiner may recommend approval of the preliminary plat to the City Council if the following decisional criteria of FWCC Section 20-126(c) are met. 1. It is consistent with the Federal Way Comprehensive Plan; Preliminary Plat of Quadrant Residential South LUTC Memorandum Page 4 Doc. I.D. 24610 VII. It is consistent with all applicable provisions of the Federal Way City Code, including those adopted by reference from the Comprehensive Plan; and 3. It is consistent with the public health, safety, and welfare. 4. It is consistent with design criteria listed in FWCC Section 20-2. It is consistent with the development standards listed in FWCC section 20~151through 20-157 and FWCC Section 20-178 through 20-187. Findings on how the application is consistent with these decisional criteria are contained on pages 2 through 8 of the Hearing Examiners recommendation. COUNCIL ACTION The Federal Way City Council's review of the application is limited to the record of the hearing before the Hearing Examiner, oral comments received during the Public Meeting, (so long as those comments do not raise new issues or information contained in the examiners record) and the Examiners written report. The City Council may receive new information not in the record pursuant to FWCC Section 20-127(b). A draft resolution recommending approval of the proposed application as recommended by the Hearing Examiner is included. After consideration of the record, the City Council may, by action approved by a majority of the total membership, take one of the following actions, pursuant to FWCC Sec. 20-127(c): 1. Adopt the recommendation; or 2. Deny the recommendation; or 3. Adopt their own recommendations; or 4. Remand the preliminary plat back to the Hearing Examiner. Attachments: * NOTE: Hearing Examiner Recommendation dated September 4, 2003 Hearing Examiner Amended Report and Decision dated September 8, 2003 Staff Report to Hearing Examiner * Draft Resolution The staff report will include the report, the Environmental Decision, and a reduced scale plat map. A full copy of the Staff Report to the Hearing Examiner will be in a notebook in the City Council Room. Approval of Committee Report ~ric Faison, Chair Mich/aelr_/P~/l~ember ~'~)ean McCoigan, Member Preliminary Plat of Quadrant Residential South LUTC Memorandum Page 5 Doc. I.D. 24610 RESOLUTION NO. DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, APPROVING WITH CONDITIONS, THE QUADRANT RESIDENTIAL SOUTH PRELIMINARY PLAT, FEDERAL WAY FILE NO. 98-104313-00 SU. WHEREAS, the owner Quadrant Corporation, applied to the City of Federal Way for preliminary plat approval to subdivide certain real property known as Quadrant Residential South, consisting of 39.64 acres, into ninety (90) single family residential lots in a cluster configuration located north of SR 18 and at the south east quadrant of South 344th Street and 38th Avenue South; and WHEREAS, on June 18, 2003, an Environmental Determination of Nonsignificance (MDNS) was issued by the Director of Federal Way's Department of Community Development Services pursuant to the State Environmental Policy Act (SEPA) and Chapter 43.21C RCW; and WHEREAS, no comments or appeals responsive to the MDNS were submitted to the Department of Community Development Services; and WHEREAS, on August 19, 2003, the Federal Way Land Use Hearing Examiner held a public hearing concerning the Quadrant Residential South preliminary plat; and WHEREAS, following the conclusion of said hearing, the Federal Way Land Use Hearing Examiner issued a written Report and Recommendation, dated September 4, 2003, containing his findings and conclusions, and recommended approval of the preliminary plat of Quadrant Residential South subject to the conditions set forth therein; and WHEREAS, on September 8, 2003, the Federal Way Land Use Hearing Examiner amended the written Report and Recommendation to remove irrelevant findings; and WHEREAS, pursuant to Section 20-127 of the Federal Way City Code, the Federal Way City Council has jurisdiction authority and to approve, deny, or modify a preliminary plat and/or its conditions; and Res. # . Page 1 Doc ID #24620 WHEREAS, pursuant to Chapter 20 of the Federal Way City Code, Chapter 58.17 RCW, and ail other applicable City codes, on October 6, 2003, the City Council Land Use and Transportation Committee considered the record and the September 8, 2003 recommendation by the Hearing Examiner regarding the Quadrant Residential South preliminary plat, and voted to forward a recommendation for approval of the proposed Quadrant Residential South preliminary plat, with no changes to the Hearing Examiner recommendation, to the full City Council; and WHEREAS, pursuant to Chapter 20 of the Federal Way City Code, Chapter 58.17 RCW, and all other applicable City codes, on October 21, 2003, the City Council considered the record and the Hearing Examiner's September 8, 2003 recommendation on the Quadrant Residential South preliminary plat. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY RESOLVES AS FOLLOWS: Section 1. Adoption of Findings and Conclusions. 1. The findings and conclusions contained in the Land Use Hearing Examiner's September 8, 2003, Amended Report and Recommendation, attached hereto as Exhibit A and incorporated by this reference, are hereby adopted as the findings and conclusions of the Federal Way City Council. Any finding deemed to be a conclusion and/or any conclusion deemed to be a finding, shall be treated as such. 2. Based on, inter alia, the analysis and conclusions in the Staff Report and the recommendation and conditions of approval as established in the Hearing Examiner's September 8, 2003, Amended Report and Recommendation, the proposed subdivision makes appropriate provisions for the public's health, safety, and general welfare; for such open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary waste, parks and recreation, playgrounds, schools and school grounds, and all other relevant facts as are required by City code and state law; and provides for sidewalks and other planning features to assure safe walking conditions for students who walk to and from school. 3. The public use and interest will be served by the preliminary plat approval granted herein. Res. # . Page 2 Doc ID/124620 Section 2. Application Approval. Based upon the September 8, 2003, Amended Report and Recommendation of the Federal Way Land Use Hearing Examiner and the findings and conclusions contained therein as adopted by the City Council immediately above, the preliminary plat of Quadrant Residential South, Federal Way File No, 98-104313-00-SU, is hereby approved, subject to the conditions contained in the September 8, 2003, Amended Report and Recommendation of the Federal Way Land Use Hearing Examiner (Exhibit A). Section 3. Conditions of Approval Integral. The conditions of approval of the preliminary plat are all integral to each other with respect to the City Council's finding that the public use and interest will be served by the platting or subdivision of the subject property. Should any court having jurisdiction over the subject matter declare any of the conditions invalid then, in that event, the proposed preliminary plat approval granted in this Resolution shall be deemed void and the preliminary plat shall be remanded to the City of Federal Way Hearing Examiner to review the impacts of the invalidation of any condition or conditions. Upon such review, the Hearing Examiner shall conduct such additional proceedings as are necessary to assure that the proposed plat makes appropriate provisions for the public's health, safety, and general welfare, and other factors as required by Chapter 58.17 RCW and applicable City ordinances, rules, and regulations, and forward such recommendation to the City Council for further action. Section 4. Severabili _ty. 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 5. Ratification. Any act consistent with the authority and prior to the effective date of the Resolution is hereby ratified and affirmed. Res. # . Page 3 Doc ID #24620 OF Section 6. Effective Date. This Resolution shall be effective i~mmediately upon passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, THIS DAY ,2003. CITY OF FEDERAL WAY ATTEST: MAYOR, JEANNE BURBIDGE 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 Doc ID//24620 CITY OF~ PO Box 9718 (253) 661-4000 Federal Way, WA 98063-9718 September ~ 8, 2003 Quadrant Corporation Skip Holman P.O. Box 130 Bellevue, WA 98009 RE: QUADRANT RESIDENTIAL SOUTH, FWHE#03-06 FEDERAL WAY FILE NO. 98-104313-00-SU Dear Applicant: Enclosed please find the Amended Report and Decision of the City of Federal Way Hearing Examiner relating to the above-entitled case. HEARING EXAMINER SKC/ca cc: All parties of record City of Federal Way EXHIBIT PAGE I .0E I~ ,. Page - 2 il ~!! CUD ~ ,-^r.~ i;I ;/ Cl~ OF FEDEBL WAY ~7f;---: :: ......... ;_ ..~ OFFICE OF THE H~RING E~MINER IN THE MATTER OF: PRELIMINARY PLAT OF QUADRANT RESIDENTIAL SOUTH ) ) ) ) ) .) FWHE#03-06 98-104313-O0-SU I. SUMMARY OF APPLICATION The applicant is requesting preliminary plat approval of a 90 lot residential lot cluster subdivision as provided for under Federal Way (FWCC) Chapter 20, "Subdivisions" and requiring approval pursuant to FWCC Section 20-110. II. PROCEDURAL INFORMATION Hearing Date: Decision Date: Amended Date: August 19, 2003 September 4, 2003 September 8, 2003 At the hearing the following presented testimony and evidence: 1. Deb Barker, Associate Planner, City of Federal Way 2. Skip Holman, Quadrant Corporation, P.O. Box 130, Bellevue, WA 98004 3. Phil Kitzes, ESM, 720 S. 348t~ Street, Federal Way, WA 98003 4. Charles Gibson, 33461 - 334 Place South, Auburn, WA 98001 5. Monty Bakken, ESM, 720 S. 348th Street, Federal Way, WA 98003 6. Rick Perez, Traffic Engineer 7. Simore Perry At the hearing the following exhibits were admitted as part of the official record of these EXHIBIT Page - 3 proceedings: Staff Report with all attachments Power Point Documents - Preliminary Plat Residential South Cluster Subdivision North Lake Improvement Club Statement dated August 19, 2003 III. FINDINGS The Hearing Examiner has heard testimony, admitted documentary evidence into the record, and taken this matter under advisement. The Community Development Staff Report sets forth general findings, applicable policies and provisions in this matter and is hereby marked as Exhibit "1" and incorporated in its entirety by this reference. All appropriate notices were delivered in accordance with the requirements of the Federal Way City Code (FWCC). The applicant has a possessory ownership interest in an irregularly shaped, unimproved, 40 acre parcel of property abutting the north side of State Route (SR) 18 and extending to the south side of the intersection of S. 334t~ St. and 38th Ave. S. in the southeastern portion of the City of Federal Way. The applicant requests preliminary plat approval to allow development of a clustered,. 90 lot, single family residential subdivision with a minimum lot size of 4,800 square feet and an average lot size of 5,755 square feet. o The preliminary plat map (Exhibit A) shows access via an internal road extending south from the 334"~/38m intersection at a future round-about. A second access will connect with the internal plat roads of the North Lake Ridge plat which abuts the eastern portion of the north property line. The plat map shows significant wetland preservation along the west, southwest, central, and northeastern portions of the site. Storm drainage facilities are located adjacent to SR-18 and at the southwest corner of the developable portion of the site. Trails circulate around and adjacent to the wetlands, and five usable, open space tracts are located throughout the site. o Abutting uses include the East Campus Corporate Park, the Slovick Gospel Church, and single family residential dwellings along the west property line. Single family residential dwellings, vacant property, and the proposed North EXHIBIT PAGE_j ___OF Page - 4 o o ° 10. Lake Ridge plat abut the north and east property lines. As previously found, SR- 18 abuts the southeast property line. The site is located within the RS-9.6 zone classification of the Federal Way City Code (FWCC) which requires a minimum lot size of 9,600 square feet. Parcels to the north, south, and east are located within the R-4 zone classification, while parcels to the west are located in the OP, RS-9.6, and R-4 zone classifications. The applicant submitted a completed application for preliminary plat approval on December 17, 1998, and pursuant to RCW 58.17.033 vested the application to the subdivision code, comprehensive plan, and development regulations in effect on said date. The applicant proposes to cluster development with 90 lots ranging in size from 4,800 square feet to 9,524 square feet, and an average lot size of 5,755 square feet. Section 20-154 FWCC authorizes reduction of lot sizes in cluster subdivision to 50% of the minimum authorized by the underlying zone. The RS-9.6 classification authorizes a minimum 9,600 square foot lot size, and therefore the applicant's proposed minimum 4,800 square foot lot size satisfies the cluster lot size requirements. FWCC 20-153 prohibits the number of lots in a cluster subdivision from exceeding the number of lots which is RS-9.6 classification would permit in a conventional subdivision. Subtracting 15% of the site for open space and 20% for streets from the total plat area and dividing the balance of the parcel by the minimum lot size shows that the applicant could obtain 116 lots as opposed to the 90 lots requested. The project therefore satisfies the density and lot size requirements for a clustered subdivision. The topography rises gradually from south to north, and the site contains no steep slopes or other geographically hazardous areas. The site is heavily wooded with a mixture of conifer and broad leaf trees, and according to the forestry report, contains approximately 2,208 significant trees. The applicant will retain large numbers of such trees within the dedicated open space and recreation areas as well as in the wetlands and wetland buffers. The applicant anticipates removal of 1,325 significant trees within the developed portion of the site. The applicant must comply with the provisions of FWCC 22-1568 which requires replacement of significant trees upon removal of more than 75% of such trees. The applicant and the Washington Department of Fish and Wildlife (DFW) have agreed upon a Bald Eagle Nest Site Management (BEMP) for a nest located approximately ten feet from the western boundary of the site. The plan requires EXHIBIT. PAGE Page - 5 a 400 foot wide, no activity buffer, seasonal construction limitations, and fencing and signage between trails and wetland buffers adjacent to the nest. The BEMP has approved the location of a pedestrian trail within the outer portion of the "No Disturbance Area". While neighbors report observing hawks, pileated woodpeckers, and other animals on the site, DFW has no evidence that any threatened or protected species reside on or near the site. The plat will mitigate impacts to wildlife through the preservation of 51% (20.52 acres) of the site as open space. Areas within the natural open space areas and wetlands will continue to provide habitat to include tree snags for pileated woodpeckers. 11. FWCC 20-154(e) requires that a cluster subdivision provide all of its required 15% open space on site, and that the City Director of Parks, Recreation, and Cultural Services must determine such space usable. The applicant must provide 5.95 acres of usable open space. The Director has approved 4.27 acres of usable open space contained within Tracts C, D, E, F, and M, and an additional .13 acres of open space in the nature of trails. The trails will measure four feet in width with one foot shoulders on each side for a total of six feet. 12. As previously found, a plat road extending south from a new round-about at the intersection of S. 334th St. and 38"' Ave. S. will provide primary access into the site, and a secondary access will extend north into the North Lake Ridge plat. The applicant will construct all roads to City standards and will include five foot wide sidewalks on both sides. Tract K, extending SE from a cul-de-sac in the SE corner of the plat, will provide access to three lots and will be improved to City private road standards. Tract K will also include a five foot wide sidewalk and four foot wide planter strip on the southern side. 13. Based upon the small lot sizes, reduced construction costs, reduction in truck traffic, and better erosion control, the City has approved the applicant's request to mass clear and grade the site. However, because the mass clearing and grading will require the removal of 707 significant trees, in advance of residential home construction the applicant must plant 177 replacement trees on individual building lots prior to final inspection of the individual lot in conformance with FWCC 22-1.568(5). 14. To meet the landscape buffer requirements the applicant will provide a minimum ten foot wide, perimeter, landscape buffer between lots 30 and 31 and SR-18, and a ten foot wide landscape buffer separating the storm drainage tract abutting SR-18 from lots 18-30. The applicant will maintain Tract H, a. 15 acres parcel adjacent to the east side of the round-about, as a native growth protection EXHIBIT PAG F Page - 6 tract to shield vehicle lights. 15. As previously found, the applicant will construct internal plat roads to City standards. The major circulation road extending from the round-about to the southeast and then north to the North Lake Ridge plat roads will meet minor collector standards which include a 60 foot wide, right-of-way, 36 foot wide pavement width, curb and gutter, four foot wide planter strip, five foot wide sidewalks on both sides, street lights, and street trees. Road C, which will loop from one portion of the collector to another, will meet local street standards to include a 52 foot wide right-of-way, 28 foot wide pavement width, vertical curb and gutter, four foot wide plant strips, five foot wide sidewalks on both sides, street lights, and street trees. Road D, a cul-de-sac located in the southeast corner of the site, will meet cul-de-sac standards to include a 50 foot radius, vertical curb and gutter, four feet wide planter strips, five foot wide road, will include a 36 foot tract width, and 20 foot pavement width; and a vertical curb and gutter and five foot wide sidewalk on the south side. The applicant will also provide off-site traffic mitigation in accordance with the SEPA MDNS which requires a payment to the City for traffic improvement projects in the amount of $53,600 and to the Washington State Department of Transportation in the amount of $11,376. 16. The Lakehaven Utility District will provide both domestic water and fire flow as well as sanitary sewer service to the site. The district will extend a sanitary sewer line currently in S. 336t~ St. which stubs against the west property line, eastward into the plat. 17. School aged children residing in the plat will attend Lake Dolloff Elementary School, Kilo Junior High, and Thomas Jefferson High Schools. All students will receive bus transportation to and from school as said schools are located more than one mile from the site. The buses will loop through the plat and the adjacent North Lake Ridge plat. Impacts on the school district will be mitigated by compliance with the City's school impact fee ordinance which presently requires a payment of $3,894 per single family housing unit. 18. The storm drainage facilities must meet the requirements of the 1998 King County Surfacewater Design Manual as amended by the City. ExiSting surface water runoff flows into three separate basins, to include 23 acres flowing to the west and two eastern basins flowing to the south. The applicant has provided separate storm drainage facilities to accommodate each basin. The western storm water detention plant will discharge water via a level flow spreader, and said water will EXHIBIT_/ ___._ PAGE._ _OF Page - 7 subsequently sheetflow into Wetland C which in turn drains westerly into Hylebos Creek. Water from the eastern detention pond servicing the two eastern basins wil!l discharge into an existing culvert which flows under SR~I 8 and then south and east to Mill Creek. The water flows will provide hydrology to off-site wetlands, and the City has determined that the project will result in no changes to the wetland hydroperiOd. 19. Prior to recommending approval of a preliminary plat to the City Council, the Examiner must find that the proposal satisfies the decisional criteria set forth in FWCC 20-126(c). Findings on each criteria are hereby made as follows: The project is consistent with the applicable 1995 Federal Way Comprehensive Plan which designates the property as single family-high density. The cluster subdivision with its proposed lot sizes is consistent with the allowable density and comprehensive plan policies. The project is consistent with all applicable provisions of Chapter 20 FWCC and those adopted by reference from the comprehensive plan which include Chapter 18- Environmental Policy, Chapter 22-Zoning, as well as other applicable codes and regulations. As conditioned hereinafter, the preliminary plat will comply with all provisions of the FWCC. The project is consistent with the public health, safety, and welfare as the applicant will provide urban level facilities and services for the future residents. Do The project is consistent with the design criteria set forth in FWCC 20-2 as set forth hereinabove as the project makes provision for the housing needs of the community, the protection of environmentally sensitive areas, and the preservation of more than half of the site for permanent open space. The project satisfies the development standards set forth in FWCC 20- 151-157 and 20-158-187. 20. The North Lake Improvement Club appeared at the hearing through Charles i. Gibson, president, and expressed concerns regarding an increased hazard to pedestrians along the roads connecting Weyerhaeuser Way South and Military Road, and nutrients and other contaminants in storm water runoff flowing into Nodh EXHIBIT PAGE O -' Page - 8 Lake. The club also expressed concerns that changes to the drainage patterns and detention of precipitation flows to the lake (either adding or subtracting) may adversely affect water elevation. While the project will create more traffic along the roads in question, these roads are already impacted by significant traffic volumes and the applicant cannot be made responsible for correcting a community-wide safety issue. The environmental official did not impose requirements for off-site safety improvements other than for proportionate share payments for City transportation improVement projects. Furthermore, a proper nexus does not exist to support a condition requiring sidewalks. 21. Compliance with conditions of approval and with the FWCC should protect North Lake and surrounding lots from adverse impacts associated with storm water and either increases or decreases of flow into the lake. The storm drainage plan must ensure continued hydrology for the wetlands and will mimic existing runoff. To ensure the club that the storm drainage system will not affect either water quality or quantity, the Examiner has added a condition of approval which requires the City and the applicant to provide a copy of the final storm drainage plans to the North Lake Improvement Club and a two week period in which to provide comments prior. to the City's approval. IV. CONCLUSIONS From the foregoing findings the Hearing Examiner makes the following conclusions: The' Hearing Examiner has jurisdiction to consider and decide the issues presented by this request. The applicant has shown that the request for preliminary plat approval of the Quadrant Residential South clustered subdivision is consistent with all criteria set forth in FWCC 20-126(c) and 22-445 subject to compliance with conditions contained hereinafter. o The applicant has shown that the request for subdivision approval satisfies all criteria set forth in RCW 58.17.110. The proposed preliminary plat complies with all applicable provisions of the Federal Way Comprehensive Plan, the design criteria listed in FWCC 20-2, and the development standards listed in FWCC 20-151-157, and 20-178-20-187. 5. The proposed preliminary plat will serve the public use and interest by providing an EXHIBIT__ PAGE oFJ Page - 9 attractive location for a single family residential subdivision while at the same time protecting significant critical areas and providing substantial open space, and therefore should be approved subject to the following conditions: Final plat approval shall require full compliance with drainage provisions set forth in the FWCC. Compliance may result in reducing the number and/or location of lots as shown on the preliminary approved plat. Drainage plans and analysis shall comply with the 1998 KCSWDM and amendments adopted by the City of Federal Way. City of Federal Way approval of the drainage and roadway plans is required prior to any construction. The runoff control facilities within Residential South shall be located within separate tracts (Tract A and B) that are landscaped to screen the facility from the right-of-way and adjacent residential uses and to allow for appropriate maintenance of the facility, and shall be dedicated to the City of Federal Way. Tracts C, D, E, F, G, H, I, J, L, and M shall be owned, landscaped, and maintained by the homeowners association. The homeowners association shall also maintain screening vegetation in Tracts A and B. A landscape plan for Tracts C, D, E, F, G, I, J, L, and M shall be submitted to the City for review and approval as part of the plan. Stormwater quality treatment shall be provided using the basic water quality menu options of the 1998 KCSWDM, as amended by the City of Federal Way. Stormwater from Tract A shall be directed to the buffer of Wetland A- C via a level flow spreader. The applicant shall be required to construct all storm drainage improvements necessary to mitigate all identified conveyance problems, whether existing or resulting from the plat's development, as identified during engineering plan review and as required by the Public Works Director. Engineering approval shall not be granted if it is determined that proposed mitigation is not adequate to address the impacts of the project. The final plat drawing shall dedicate all usable open space in an open space tracts to be owned in common and maintained by property owners of the EXHIBIT mcr: hi: Page- 10 proposed subdivision, and shall prohibit removal or disturbance of vegetation and landscaping within the tract, except as necessary for maintenance or replacement of existing plantings and as approved by the City. Additional vegetation may be located in open space tracts to meet conditions as approved by the City. A note shall be included on the final plat map that the open space tracts shall not be further subdivided, may not be developed with any buildings or other structures except as may be approved by the City for recreational purposes only for the benefit of the homeowners, and may not be used for financial gain. Prior to issuance of construction permits, a final landscape plan prepared by a licensed landscape architect shall be submitted to the City for approval, and shall include the following elements: Ao Open space and/or park landscaping in Tracts C, D, E, F, G, H, I, J, L, and M; B. Street trees in right-of-way landscape planter strips; C. Tree preservation plan; and VisUal screening of the Quadrant Residential South storm drainage facilities in Tracts A and B from the adjacent Road A and from adjacent residential lots with landscaping and fencing. Cyclone fencing, if used, shall be coated black or green and shall be screened by vegetation. The proposed subdivision shall comply with the 1993 King County Road Standards (KCRS) as amended by the City of Federal Way for this project, including the following requirements: Roads A and B shall be improved along the frontage of the project as minor collectors, including 60 foot wide right-of-way and 36 foot wide pavement width, curb and gutter, four foot planter strips, and five foot wide sidewalks on both sides of the roadway, streetlights, and street trees. Road C shall be improved as a local street, to include a 52 foot wide right-of-way and 28 foot pavement width. Vertical curb and gutter, four foot planter strips, five foot wide sidewalks shall be provided on both EXHIBIT_. _._. I0 hr: I% Page - 11 sides of the street. Streetlights and street trees shall also be provided. Road D shall be improved as a cul-de-sac street with a 50 foot radius. Vedical curb and gutter, four foot wide planter strip, and five foot wide sidewalk shall be provided on all sides of the street. Streetlights and street trees shall also be provided. Tract K shall be improved to a private access tract standard and shall be limited to serving a maximum of four lots. The lots that abut these tracts for access shall have undivided ownership of the tract and be responsible for its maintenance. The maintenance agreement for the private access tracts shall be included on the plat and the language approved by the City. Improvements shall include a 36 foot tract width and 20 foot pavement width. Vedical curb and gutter and five foot wide sidewalk without planter strips shall be provided on one side. Tract length shall be limited to a maximum of 150 feet from face of curb to end of tract, unless a 90 foot diameter turnaround is provided. All streets have a minimum pavement section of three inches Class B asphalt over six inches of crushed surfacing to support the traffic loads. Due to eagle nest adjacency, seasonal construction restrictions from February I to May 1 and July 1 to July 15 shall be imposed for all clearing, grading, filling, and related construction activities contained in the amended BEMP as approved by WDFW, and shall be applied to plat construction as part of engineering review. Conditions imposed by the Federal Way Hearing Examiner and the Director ,¢,f Community Development Services for wetland and wetland setback area JCusions shall be depicted on construction drawings and the final plat ,.drawings as appropriate. Prior to final plat approval, open rail fencing and appropriate signage shall be installed to separate the planned and future parks and pedestrian trails from wetlands and wetland setback areas, and shall be designed in accordance with BEMP conditions for fencing and signage. Page - 12 10.¸ 11. The final plat shall contain the requirement that 177 replacement trees shall be planted on individual building lots within the subdivision prior to final inspection of residential building activities on the individual lot and in conformance with FWCC section 22-1568(5)(b). The final plat shall contain the requirement that all future park and pedestrian trail improvements adjacent to wetland and wetland setback areas shall be designed to follow recommendations of a Wildlife Biologist, and shall be submitted to the Department of Community Development Services fo,r review. The applicant shall provide to the president of the North Lake Improvement Club a copy of the final storm drainage plans at least two weeks prior to the City's approval thereof. The improvement club may provide comments within said two week period to the City regarding said-plans. However, the sole authority to approve or disapprove said plans remains that of the City. RECOMMENDATION: It is hereby recommended that the Federal Way City Council approve the preliminary plat of Quadrant Residential South subject to the conditions contained in the conclusions above. DATED THIS 4th DAY OF September, 2003. AMENDED THIS 8th DAY OF September, 2003. Hearing Examiner TRANSMITTED THIS 4th DAY OF September, 2003, to the following: AMENDED AND TRANSMITTED THIS 8th DAY OF September, 2003, to the following: AGENT: ESM Consulting Engineers, Inc. Phil Kitzes EXHIBIT_ ,._ PAGE OF i,.) Page - 13 720 South 348th St. Federal Way, WA 98003 ENGINEER: ESM Consulting Engineers, Inc. Monty Bakken, P.E. 720 South 348t~ St. Federal Way, WA 98003 OWNER: Quadrant Corporation Skip Holman P.O. Box 130 Bellevue, WA 98009 OTHERS: Charles Gibson Don Vandenheuvel Bill Shiels Fred Brown Ann Olsen Jean Parietti & Will Self Bud & Toni Tinnerman Norm & Lois Kutscha 33461 - 33rd Place South 3718 South 334t* Street 15020 Bear Creek Road NE 720 South 348t~ Street 15020 Bear Creek Road NE 33256 38th Ave. S. P.O. Box 34 33021 38t~ Ave. S. City of Federal Way c/o Chris Green P.O. Box 9718 Federal Way, WA 98063-9718 Auburn, WA 98001 Auburn, WA 98001 Woodinville, WA 98072 Federal Way, WA 98003 Woodinville, WA 98072 Auburn, WA 98001 Auburn, WA 98071 Auburn, WA 98001 EXHIBIT PAGE Page- 14 CITY COUNCIL REVIEW, ACTION Pursuant to Section 20-127, following receipt of the final report and recommendation of the hearing examiner, a date shall be set for a public meeting before the city council. The city council review of the preliminary plat application shall be limited to the record of the hearing before the hearing examiner, oral comments received during the public meeting (so long as those comments do not raise new issues or information not contained in the examiner's record) and the hearing examiner's written report. These materials shall be reviewed for compliance with decisional criteria set forth in section 20-126. The city council may receive new evidence or information not contained in the record of hearing before the hearing examiner, but only if that evidence or information: (i) relates to the validity of the hearing examiner's decision at the time it was made and the party offering the new evidence did not know and was under no duty to discover or could not reasonably have discovered the evidence until after the hearing examiner's decision; or (ii) the hearing examiner improperly excluded or omitted the evidence from the record. If the city council concludes, based on a challenge to the hearing examiner recommendation or its own review of the recommendation, that the record compiled by the hearing examiner is incomplete or not adequate to allow the city council to make a decision on the application, the city council may by motion remand the matter to the hearing examiner with the direction to reopen the hearing and provide supplementary findings and/or conclusions on the matter or matters specified in the motion. After considering the recommendation of the hearing examiner, the city council may adopt or reject the hearing examiner's recommendations based on the record established at the public hearing. If, after considering the matter at a public meeting, the city council deems a change in the hearing examiner's recommendation approving or disapproving the preliminary plat is necessary, the city council shall adopt its own recommendations and approve or disapprove the preliminary plat. As part of the final review, the city council may require or approve a minor modification to the preliminary plat if: (a) (b) (c) The change will not have the effect of increasing the residential density of the plat; The change will not result in the relocation of any access point to an exterior street from the plat; The change will not result in any loss of open space or buffering provided in the Id nc Page - 15 (d) plat; and The city determines that the change will not increase any adverse impacts or undesirable effects of the project and that the change does not significantly alter the project. CITY OF ~ Federal Way COMMUNITY DEVELOPMENT SERVICES DEPARTMENT STAFF REPORT TO THE FEDERAL WAY HEARING EXAMINER PRELIMINARY PLAT OF QUADRANT RESIDENTIAL SOUTH Federal Way File No. 98-104313-00-SU PUBLIC HEARING August 19, 2003 Federal Way City Hall City Council Chambers 33530 First Way South Table of Contents II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. General Information .............................................................................................................. J ............ 1 Consulted Departments and Agencies ............................................................................................... 3 State Environmental Policy Act ......................................................................................................... 3 Natural Environment .......................................................................................................................... 4 Neighborhood Characteristics ............................................................................................................ 8 General Design ................................................................................................................................... 8 Transportation .................................................................................................................................. 12 Public Services ................................................................................................................................. 14 Utilities ............................................................................................................................................. 14 Analysis of Decisional Criteria ........................................................................................................ 16 Findings of Fact and Conclusion ..................................................................................................... 17 Recommendations ............................................................................................................................ 21 List of Exhibits ................................................................................................................................. 23 Report Prepared by: Deb Barker, Associate Planner August 11, 2003 CITY OF FEDERAL WAY COMMUNITY DEVELOPMENT SERVICES DEPARTMENT STAFF REPORT FOR THE PUBLIC HEARING OF AUGUST 19, 2003 PRELIMINARY PLAT OF QUADRANT RESIDENTIAL SOUTH File No: Agent: Engineer: OwneF: Action Requested: Staff Representative: Staff Recommendation: 98-104313-O0-SU ESM Consulting Engineers Inc. Phil Kitzes 720 South 348th Street Federal Way, WA 98003 Phone: 253-838-6113 ESM Consulting Engineers Inc. Monty Bakken, P.E. 720 South 348~ Street Federal Way, WA 98003 Phone: 253-838-6113 Quadrant Corporation Skip Holman PO Box 130 Bellevue, WA 98009 425-455-2900 Preliminary plat approval of a 90-lot residential lot cluster subdivision as provided for under Federal Way City Code (FWCC) Chapter 20, "Subdivisions," and requiring approval pursuant to FWCC Section 20-110. Deb Barker, Associate Planner, 253-661-4103 Preliminary Plat Approval with Conditions GENERAL INFORMATION Description of the Proposal- The applicant proposes to subdivide an approximate 40- acre vacant parcel of land into 90 residential single-family lots in a cluster subdivision, with each lot having a minimum of 4,800 square feet and an average lot size of 5,755 square feet. Since the proposal is for a cluster subdivision, as vested under previous 1998 code provisions for cluster subdivisions, pursuant to Federal Way City Code (FWCC) Section 20-154, the minimum lot Preliminary Plat of Quadrant Residential South File #98-1043134)0~SU / t~:. t.v. 236o2 Staff Report to the Hearing Examiner Page I Bo Co size may be up to one half the size of the underlying zoning requirement of 9,600 square feet to 4,800 square feet. The proposed preliminary plat map, revised December 27, 2003, along with conceptual grading and utility plan, existing conditions map, and preliminary landscape plan prepared by ESM Consulting Engineers are enclosed (Exhibit A). Location -The site is located in the eastern portion of the City, north of SR18, east of the intersection of South 334th Street and 38th Avenue South, south of 42nd Avenue South as extended, and southeast of North Lake (Exhibit B). Parcel No - 614360-0635, 614360-0186, and 222104 9037. Legal description is on page 3 of 3. Size of Property- The subject site has a land area of 1,726,718.4 square feet (39.64 acres). Land Use and Zoning- Direction Zoning Comprehensive Plan Existing Land Use Site RS-9.6~ SF - High Density Vacant North R~4 Urban Residential (UR) SFR &Vacant2 South R-4 Urban Residential SR- 18 East R-4 Urban Residential SFR West OP, RS-9.6 & R-4 OP, SF-High Density & UR Office, Church, & SFR Background- The preliminary plat of Residential South was submitted on November 10, 1998, as a 100-lot subdivision with nine open space tracts and two storm drainage tracts. The application was determined complete on December 17, 1998, thereby vesting the application to the subdivision code in effect at that time. The applicant requested that the City's review of the preliminary plat application be suspended on June 29, 1999, in order to provide the applicant time to resolve a secondary access issue. On December 27, 2001, with the issue resolved, the applicant resubmitted the preliminary plat application. The Federal Way City Council amended provisions of the FWCC Chapter 20, "Subdivisions" regarding cluster subdivisions, which was adopted on January 6, 1998. On December 30, 2002, the applicant revised the preliminary plat project to include the extension of a sanitary sewer line through wetlands and wetland buffers associated with the subject site and submitted revised plans. On April 2, 2003, the City of Federal Way issued a Mitigated Determination of Nonsignificance (MDNS) for the preliminary plat application. Comments received from the Washington State Department of Transportation (WSDOT) as an affected agency and from adjacent property owners identified traffic and drainage concerns. The City found that new information was required to assess project related environmental impacts, and on April 18, 2003, withdrew the MDNS decision of April 2, 2003, pursuant to WAC 197-11-340(3). The applicant was directed to provide additional information to address drainage and traffic comments. This information was submitted on May 22, 2003, for review by the affected agency and City staff. ~RS-9.6 = single family residential, 9,600 SF minimum lot size 2SFR = single family residential Preliminary Plat of Quadrant Residential South File/t98-104313-00-SU / Do,. I.D. 23602 Staff Report to the Hearing Examiner Page 2 On June 18, 2003, the City of Federal Way issued a new MDNS for the preliminary plat application. On July 30, 2003, the applicant submitted a preliminary plat drawing that depicted 90 lots with a minimum lot size of 4,800 square feet in size. II CONSULTED DEPARTMENTS AND AGENCIES The following departments, agencies, and individuals were advised of this application. Community Development Review Committee (CDRC), consisting of the Federal Way Community Development Services Planning and Building Divisions; Public Works Engineering and Traffic Divisions; Parks Recreation and Cultural Resources Department; Federal Way Department of Public Safety (Police); Federal Way Fire Department; Lakehaven Utility District; and Federal Way Public Schools. CDRC comments have been incorporated into this report where applicable. All property owners and occupants within 300 feet of the site were mailed notices of the application. The site was also posted and notice published in the newspaper and on the City's official notice boards. Seven comment letters were submitted in response to the 1998 notices of application (Exhibit C). On January 7, 1999, the City responded to the parties that provided comments on the notice of application (Exhibit D). Co In accordance with the State Environmental Policy Act (SEPA) and FWCC Chapter 18, "Environmental Protection," all property owners and occupants within 300 feet of the site, and all affected agencies, were notified of the proposed action and the City's environmental decisions. In addition, the site was posted and notice placed in the newspaper and on the City's official notice boards. III STATE ENVIRONMENTAL POLICY ACT mo The City of Federal Way issued a Mitigated Environmental Determination of Nonsignificance (MDNS) for the proposed action on April 2, 2003 (Exhibit E). This determination was based on review of information in the project file, including the environmental checklist and staff evaluation of the environmental checklist for Residential South (Exhibit F), resulting in the conclusion that the proposal would not result in probable significant adverse impacts on the environment provided the applicant complies with the mitigation measures in the MDNS. Bo During the 14-day SEPA comment period, comments from an affected agency and from adjacent property owners identified traffic and drainage related concerns (Exhibit G). The City found that new information was required to assess project related environmental impacts, and on April 18, 2003, withdrew the MDNS decision of April 2, 2003, pursuant to WAC 197-11- 340(3) (Exhibit Ih. The applicant was directed to provide additional information to address drainage and traffic comments. This information was submitted on May 22, 2003, for review by the affected agency and City staff. C. On June 18, 2003, the City of Federal Way issued a new MDNS for the preliminary plat application (Exhibit 1). Traffic mitigation for the project was identified as the following: 1. Prior to approval of the final plat, the applicant shall either construct the following impacted Transportation Improvement Plan (TIP) projects, as required by the Public Preliminary Plat of Quadrant Residential South File t/98-104313-00-SU / mc ~.D. 23~o2 Staff Report to the ltearing Examiner Page 3 Works Department; or, contribute the project's pro-rata share of the construction cost of the TIP projects, as follows: FEDERAL WAY Pro-Rata Share Project TIP PROJECT Project Cost (Proiect PM Trips Contribution Location PM Trips) Cost $13,200,000 I SR 99 HOV Lanes: Grant funding = $7,826,000 10/3210 x 100 = 0.31% $5,474,000 x 0.31%, 1 A S 324th St- S 340th St Adjusted project cost = $5,474,000 = $17,000: B S 336th and Weyerhaeuser $648,700 34/1756 x 100 = 1.94% $649,000 x 1.94% Way: Realign intersection = $12,600 C S 336th St ~ 9th Ave S $100,000 10/3342 x 100 = 0.30% $100,000 x 0.30% = $300 D S 336th St ~1~t Way S $420,000 10/2956 x 100 = 0.34% $420,000 x 0.34%1 = $1,4001 E S 336th St: 18th Ave S to I-5 $1,200,000 23/1236 x 100 = 1.86% $1,200,000 x 1.86% = $22,30(}. TOTAL $53,600 Prior to approval of the final plat, the applicant shall either construct the impacted WSDOT Traffic project or, contribute the subdivision project's pro-rata share of the construction cost of the WSDOT project, as follows: Pro-Rata Share Project WSDOT PROJECT Project Cost (.Proiect PM Trips Contribution Cost Location PM Trips) F SR 18 westbound off-ramp at Weyerhaeuser $711,000 x 1.61% ~ Way South: Align intersection and signalize $711,000 1.6% $11,376 WSDOT TOIAL $11,376 D. The comment period for the June MDNS concluded on July 2, 2003, and there were no appeals to the City's environmental decision. The decision is incorporated as though set forth in full. IV NATURAL ENVIRONMENT Ao Storm Water Runoff- Development of the site will create additional runoff from new impervious surfaces such as streets, driveways, and rooftops. Storm drainage facilities are being designed in accordance with the 1998 King County Surface Water Design Manual (KCSWDM) and the City's amendments to the manual. The applicant's preliminary storm drainage Technical Information Report (TIR), revised December 27, 2002, (Exhibit d) was reviewed by the City's Public Works Department. According to the TIR, and subsequent revisions and amendments to the TlR, the existing surface water runoff from the site is divided into three basins, separated by nortlffsouth ridges. Basin A, the western basin, flows southwest into Wetlands A-C, located west of the site. Flows from Wetland C drain westerly into Hylebos Creek, while portions of flow from Wetland B-I drain north into North Lake. There are two eastern basins. The East Basin flows southerly into a Iow-lying area along the southerly property line. Flow from this basin drains south to a culvert, which goes under SR 18 and continues southward to a small pond Preliminary Plat of Quadrant Residential South File 1/98-104313-00-SU / Do~. I.D. 23602 Staff Report to the ltearing Examiner Page 4 where it is joined by flows out of Lake Geneva. This system continues in a general northerly and easterly direction in to Mill Creek. The East/East basin slopes towards a wetland located east of the subject site, and subsequently flows east to Mill Creek. Two separate combination wet pond/detention pond facilities, providing stormwater detention and water quality treatment, are proposed for this site. These ponds will be sized in compliance with the KCSWDM, and City addendum to the manual. Soils - The 1973 King County soils survey map lists the soils type as Alderwood Gravelly Sandy Loam (AgB). Alderwood soils are characterized as moderately well drained soils that have a weakly consolidated to strongly consolidated substratum at a depth of 24 - 40 inches. AgB soils are described as capable for urban development, runoff is slow, and erosion hazard is slight. A November 5, 1998, Geotechnical Engineering Considerations report prepared by Geotechnical Consultants Inc. noted that with minor exceptions, soils consist of dense glacially consolidated silty sand and gravelly sand near ground surface. The report stated that the soils were suitable to support the proposed buildings and roads, and recommended that earthwork be done in dry periods (Exhibit K). Typical soils excavation will occur with the street construction, at the site of the storm detention facility, and for utility installation. The preliminary clearing and grading plan depicts clearing limits for construction of the following facilities: street right-of way, surface water pond, usable recreation area, and utility development. The applicant has proposed to clear and grade all lots with construction of plat infrastructure due to site topography and lots constraints. Co Topography - The site has a gradual slope rising from the south to the north. While there are steep slopes in excess of 40 percent located south of the subject site within the SR-18 right-of- way, the preliminary plat site does not have any steep slopes or any other geologically hazardous areas, .as depicted on the Existing Conditions Map prepared by ESM (Exhibit A). Do Vegetation - Approval of the preliminary plat is subject to submittal and approval of a tree clearing plan and landscape plan pursuant to FWCC Section 20-158. City policy and FWCC Section 20-179 state that existing mature vegetation shall be retained to the maximum extent possible. Retained significant trees outside of open space areas would be regulated under FWCC Section 22-1568, "Significant Trees," at the time of individual home construction. According to a November 9, 1998, forestry report prepared by Lusignan Forestry, the site is heavily wooded with a mixture of conifer and broadleaf trees. The wetland consultant, Talasaea Associates, also notes that the wetland portions typically consist of densely vegetated uneven aged mixed forest. Dominant trees include Red Alder, Cottonwood, Oregon Ash, Big Leaf Maple, Douglas Fir, Western Red Cedar, and Western Hemlock. Based on the forestry report (Exhibit L) and an August 23, 2002, tree information letter prepared by ESM (Exhibit M-I), there are approximately 2,208 significant trees located on the subject site.3 Large numbers of significant trees and native vegetation will be retained within the dedicated open space and recreation tracts, as well as within 100 foot wetland buffers in Native Growth Protection Tracts (NGPT). In an August 12, 2002 letter (Exhibit M-2), the 3 A significant tree is defined in the FWCC as a tree that is in good health, not detrimental to the community, and at least 12 inches in diameter 4.5 feet above the ground, not including red alder, cottonwood, poplar, or big-leaf maple. Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / oo~. [r~. 21602 Staff Report to the Hearing Examiner Page 5 applicant submitted a request to clear and grade the building lot areas, right-of-way, and utility areas in conjunction with plat development. The applicant estimated that 12.67 acres or 32 percent of the site is being utilized for building lot area (Exhibit M-3, page 7). Of the 1325 total significaut trees within the developed portion of the site, 707 significant trees will be removed from the building lot areas while 618 significant trees will be removed from streets and utility areas. Further, the applicant estimates that 883 significant trees will be retained in the 15 acres of NGPT and conservation tracts proposed with the project, or approximately 39.9 percent of the significant trees retained. Pursuant to the provisions of FWCC Section 22-1568, removal of more than 75 percent of the significant trees requires replacement in the amount of 25 percent of the existing significant trees. As discussed in section VI.E, due to the small lot sizes, reduced construction costs, reduction in truck traffic, potential for better erosion control, and efficiencies in mass clearing and grading the site, City staff conditionally support mass clearing and grading of the site as requested by the applicant. Additional discussion regarding vegetation is contained in the SEPA staff report (Exhibit F). Street trees will be installed in the right of way behind the curbs. The applicant will also provide vegetative buffering around the storm drainage facilities and in a ten-foot wide strip between lots 30 and 31, and the SR 18 right-of-way, in accordance with the FWCC standards. Wetlands - There are ten wetlands on the subject property.4 The subdivision application was deemed complete on November 3, 1998, and is vested under codes and regulations adopted at that point in time. The environmentally sensitive area chapter effective in1998 regulates all wetlands, no matter the size, and establishes a 100ofoot buffer from the delineated edge of all wetlands. Two wetlands are proposed to be filled due to grading activities in conjunction with storm water facility construction, while one wetland will be impacted by sewer trunk line installation. Wetland reports, and subsequent letters prepared by Talasaea Associates, provide relevant information about wetlands and associated wetland setback areas; wetland function and values; endangered or threatened species or habitats; development impacts; proposed mitigation; construction management; monitoring; maintenance; and contingency for each impacted area. Proposed intrusions, mitigation measures, and construction must also comply with the restrictions contained within the Bald Eagle Management Plan (discussed in section F below). The Federal Way Hearing Examiner shall review the separate requests for wetland and wetland setback areas intrusions consistent with the procedurals requirements of Process IV Hearing Exmniner Review (Exhibit N). Mitigation of wetland and wetland setback area impacts is required uuder FWCC Section 22-1356. Specific wetland ~nitigation methodology will be preseuted for review and approval to the Federal Way Hearing Examiner in accordance with provisions of FWCC Section 22-1358. Intrusions into a wetland setback area for installation of essential public facilities, including streets and public utilities, are administratively permitted pursuant to FWCC Section 22-1359(b). lu addition to the on-site wetlands, there are two existing wetland areas downstream of the project site associated with the proposed subdivision. The Staff Evaluation for Environmental 5 Wetland L is a wetland located fully offthe site west of the plat. ltowever, the Icode required 00-foot setback from this wetland extends into the western portion of the subject site. Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / r~o~. ~.D 236o2 Staff Report to the ltearing Examiner Page 6 Decision (Exhibit F~ contains a discussion of these wetlands, which are located within King County, and of proposed design components, which will result in no net impacts to these wetland areas. Vgildlife and Habitat- There is a Bald Eagle's nest immediately adjacent to the western boundary of the site, approximately ten feet from the subject site. Bald eagles are listed as both a State Threatened and Federally Threatened wildlife species under the Endangered Species Act. The bald eagle nest was apparently constructed in December 1997 by a pair of five-year old birds. To prevent any significant impacts to the resident eagles, in May 1999 the Washington Department of Fish and Wildlife (WDFW) prepared and the applicant signed a Bald Eagle Nest Site Management Plan (BEMP) for this nest site. The plan contained restrictions for the 400-foot no-activity buffer from the nest, specific lot based seasonal construction limitations, and required that fencing and signage be installed between trails and wetland buffers adjacent to the eagle's nest. On January 15, 2003, following review of the revised plat layout that eliminated improvements from the 400~foot no-activity buffer and based on agency policy, WDFW amended the BEMP approve the location of a pedestrian trail within the outer portion of the no-disturbance area and to modify seasonal construction restrictions to recommend that land owners consider delaying construction until after the most sensitive time periods for nesting eagles. The period of February I to May 1 is more sensitive to nesting eagles, and July 1 to July 15 is sensitive to young pre-fledging eagles (Exhibit 0). The period of May 1 to July I is less sensitive as the chicks are able to thermo-regulate and feed while the adults are gone. All BEMP conditions and recommendations of the WDFW shall be fully implemented into the project. Written comments from neighbors adjoining the subject site (Exhibit G) note they have observed hawks, pileated woodpeckers, owls, coyotes, and rabbits on or near the project site. The January 2003 source listings from WDFW do not indicate the presence of any other threatened or protected species on or near the subject site. The site provides habitat for small mammals, rodents, and reptiles, as well as songbirds and insects. The site would also be expected to provide food resources for hawks and other predators, which may not actually inhabit the site. Some of the habitat for these animals will be eliminated or displaced by the proposal. In addition, the introduction of human activities, including domestic animals, to the site will threaten the viability of any remaining habitat. The primary mitigation of wildlife impacts is through preservation of 51 percent (20.52 acres) of the site as open space. Areas within natural open space (tracts G, H, and I and the majority of tracts C and J) will not be modified by construction and will continue to provide habitat for some types of wildlife. Tree snags, which provide habitat for pileated woodpeckers, will be provided in the wetland creation and restoration areas, as well as within wetland setback areas. New snags if required, can be generated in the preserved portion of the site by girdling or topping selected trees. The preservation of wetlands, associated buffers, and open space, and retention of significant trees throughout the site will provide habitat opportunities. The associated stonnwater detention/retention ponds may also enhance habitat opportunities, particularly for resident and migrating waterfowl. Staff has recommended that fencing be provided in conjunction with pedestrian trails in and adjacent to wetland setback areas. Preliminary Plat of Quadrant Residential South File #98- ! 04313-00-SU / ~ m 236o2 Staff Report to the Hearing Examiner Page 7 V NEIGHBORItOOD CItARACTERISTICS Vicinity- The property is situated in the eastern portion of the City in a single-family residential area. The site is vacant. The majority of adjacent properties to the north, east, and west are developed with single-family residences on lots ranging from approximately 9,000 to 30,000 square feet in size. A church and wetlands associated with an office development are also west of the site. The SR-18 right-of-way is south of the site. North Lake Ridge - Immediately north of the site, the plat of North Lake Ridge, a 97-1ot subdivision with lots approximately 4,500 square feet in size, is under construction. This plat, recently purchased by The Quadrant Corporation, received preliminary approval from King County in August 2002. The northern extension of Road B will extend from Quadrant Residential South into the North Lake Ridge roadway system, and will establish secondary vehicular access for both of the plats. In addition, construction of the North Lake Ridge plat is contingent upon the sewer trunk line extension that is proposed through the Quadrant Residential South site under Federal Way File #03-103113-00-UP. SR-18 - Immediately south of the subject site is State Route 18 (SR-18), a four-lane Washington State highway. The Washington State Department of Transportation (WSDOT) has proposed that SR-18 be widened to accommodate a westbound truck-climbing lane. The subject site does not access SR-18. VI GENERAL DESIGN Lot Layout - The proposed 90 lots range in size from approximately 4,800 square feet to 9,524 square feet, with an average lot size of 5,755 square feet. The minimum lot size for lots in a cluster subdivision with RS 9.6 zoning is 4,800 square feet. Pursuant to FWCC Section 20-154, lots created in a cluster subdivision may be redticed in size up to one-half the size of the underlying zoning requirement, but in no case smaller than 3,600 square feet. The minimum lot size would therefore be 4,800 square feet in size. Pursuant to FWCCC Section 20-153, the total number of lots created cannot exceed the number of lots that would be permitted in a conventional subdivision on a site of the same total area, after reservation of the required open space. The total number of lots permitted is calculated by subtracting the required open space of 15 percent, and subtracting 20 percent for streets from the gross land available, then dividing by the minimum lot size of the underlying zoning district. The maximum number of lots that could be created on the subject 39.64-acre parcel is 116 lots, based on the calculation below. Total Lot Area Minus 15% open space Minus 20% for streets 1,726,718.40 sq. ft. 259,007.76 sq. ft. 345,343.68 sq. ft.~ 1,122,367.10 sq. ft. (39.64 ac) divided by 9,600 = 116 lots maximum Most of the proposed lots are rectangularly shaped. Lots 28, 29, and 30 receive access from an access tract (Tract K). Under the FWCC, a lot must contain a front yard structural setback of 20 feet, a side and rear yard structural setback of five feet, and maximum lot coverage of 60 percent. All building setback lines (BSBL) are accurately depicted on the preliminary plat map, and each lot contains an adequate building area as required under a cluster subdivision. Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / r~ ID. :36o2 Staff Report to the llearing Examiner Page 8 Open Space - To provide adequate recreational opportunities commensurate with new residential development, FWCC Chapter 20, "Subdivisions," requires dedication of land on site for open space, or a fee-in-lieu payment. However, in accordance with FWCC Section 20-154(e), a cluster subdivision must provide all required open space (15 percent) on site and it must all be usable as determined by the Director of Parks, Recreation, and Cultural Services (PARCS). Total usable open space required for this plat is 259,007.76 square feet (5.95 acres, or 15 percent of the 1,726,718.4 square foot parcel). To comply with the open space requirements, the applicant has proposed, and the Director of PARCS has approved, 186,001 square feet (4.27 acres) of on-site usable open space, contained within Tracts C, D, E, F, and M, and 4,356 square feet (0.13 acre) of trails within conservation C, D, E, F, G, I, and M. A As discussed in an August 5, 2003 letter prepared by Phil Kitzes (Exhibit P), the pedestrian trails corridors are to be a minimum of six feet in width, as required by the PARCS Director. Landscape plans shall be revised to depict trails that meet this minimum width requirement. The following is a discussion of Usable open space tracts and conservation open space tracts proposed with the application: Tract C is a 67,953 square foot parcel (1.56 acres) located east of the westernmost on-site wetlands and associated buffers, while also abutting eight lots and a portion of Road A. According to a preliminary landscape plan prepared by ESM (December 27, 2003, Exhibit .4), the central portion of Tract C is to be developed with irrigated open lawn play area, bench seating, picnic tables, and landscaping. A 600-foot long wood-chip pedestrian loop trail extends south from the Tract C through the buffer of Wetland A-C. As discussed in the Wildlife section, Tract C is located approximately 200 feet east of the off-site eagles nest. The Tract C pedestrian trail, proposed to intrude into the outer 200 feet of the 400-foot bald eagle no-disturbance area, has been conceptually approved by the WDFW and the PARCS Director. Tract C has an average slope of approximately four to eight percent consistent with the city's standard park and trail specifications. Tract D is a 81,457.2 square foot parcel (1.80 acres) surrounding the northeast and northwest sides of wetland buffer (or NGPT) of Tract I. Tract D is proposed to contain usable open space, including grass areas and pedestrian trails which meander along the wetland buffer edge of Tract I with access points to Road B and C. Grading and clearing of a 100-foot wide swath associated with the northern extension of the sanitary sewer trunk line will cut through most of the western portion of Tract D. In addition, Tract D will contain gravel roads 15 feet in width to provide access to required sewer manholes (Exhibit Q). One road will extend east from Road C approximately 25-feet and the other will extend 150 feet south of the northern property line. The six foot wide pedestrian wood chip trail will connect the two gravel roads; vehicular access will be prevented beyond the sewer manholes. Revegetation of the tract is proposed to include trees along the northerly property line and hydroseeding. The tract is free of environmental constraints and has an overall average slope of approximately one to six percent consistent with the city's standard park and trail specifications. Tract E is a 23,958 square foot parcel (0.55 acre) located on the southern end of Tract I adjacent to Road B. Tract E connects to Tract D via wetland buffer trails, and a portion of the site is proposed to contain a park developed area with grass and vegetative planting. The tract is free of any environmental constraints, and has an average slope of approximately one to three percent consistent with the city's standard park and trail specifications. Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / ooc. i.~). 23602 Staff Report to the ltearing Examiner Page 9 Tract F, a 6,969.5 square foot tract (0.20 acres) located at the north end of the plat between Road B and wetland NGPT Tract J. A portion of Tract F contains a developed park area with grass and vegetative planting. The tract is free of any environmental constraints, and has an average slope of approximately one to six percent consistent with the city's standard park and trail specifications. Tract G, a 479,595.6 square foot Native Growth Protection Tract or NGPT (11.01 acres) is located along the western portion of the plat south of South 334th Street. Tract G contains environmental constraints with wetlands B, C, D and F and associated 100-foot wetland setback areas. A six-foot wide pedestrian trail is proposed to extend through the northern portion Tract G, within setback areas of wetlands B, D and F, and connect to Tract C (Exhibit N). A 2.88- acre portion of Tract G located south of wetland C is identified as conservation area as it is inaccessible from the developed portion of the plat and surrounded by wetlands and SR-18. Tract G has an average slope of approximately two to ten percent consistent with the city's standard trail specifications. Tract H, a 6,534 square foot NGPT (0.15 acre) located at the northwest comer of the plat adjacent to 38th Avenue South and Road A. Tract H contains significant trees and vegetation that screens properties located east of the subject site. Tract H is free of any environmental constraints and is proposed to remain undisturbed. Tract I, a 192,970.8 square foot NGPT (4.43 acres) is located in the north central portion of the plat between Roads B and C. Tract I contains environmental constraints with wetlands H, I and K and associated 100-foot wetland setback areas. A six-foot wide pedestrian trail is proposed to extend through the outer most portion of Tract I within the wetland setback areas (Exhibit N). Tract I has an average slope of approximately two to four percent consistent with the city's standard trail specifications. Tract J, a 31,363.2 square foot NGPT (0.72 acre) is located in the northeast portion of the plat east of Tract F and Road B. Tract J contains environmental constraints with wetland J and associated 100-foot setback area. The western edge of Tract J will be impacted by Road B (Exhibit N). Tract L, a 2,178 square foot tract (0.05 acres) is located between lots 30 and 31 and SR 18 to meet the intent of FWCC section 20-178, which requires a ten foot wide Type III landscape strip along arterial streets (in this case SR 18) to shield new residences. Tract M, a 6,969.5 square foot open space tract (0.16 acres) is located at the western entrance to the subdivision and fronts onto Road A. The tract contains native vegetation and is free of environmental constraints. A portion of tract M may be developed as park area with grass and vegetative plantings. Tract M has an average slope of approximately two to four percent consistent with the city's standard park specifications Portions of open space tracts will be left in current vegetated conditions as native open space. Due to the proximity of the developed and undeveloped portions of Tracts C, D, E, F, and G adjacent to or containing wetland setback areas, and their potential future development with additional recreational improvements, future development beyond that presently proposed shall be designed and constructed to protect and enhance wildlife habitats to the maximum extent feasible. To this end, open rail wood fencing and appropriate signage shall be incorporated Preliminary Plat of Quadrant Residential South File #98-I04313-00-SU / r~:. ~.r~. 236o2 Staff Report to the ltearing Examiner Page within the parks and pedestrian trails and a wildlife biologist shall provide comments on all future park development adjacent to wetland setback areas. The applicant has proposed ownership of all tracts be by the future homeowners association, except those for storm drainage facilities. Subdivision Access and Roadway System - Primary access to the site will be provided via a new roundabout installed at the intersection of South 3344 Street at 38th Avenue South. The second access into the subdivision will be via the northward extension of Road B into the North Lake Ridge subdivision, currently under construction. North Lakd Ridge will provide vehicular access on to Military Road South. Pursuant to FWCC street improvement standards, all street improvements (except the private access tract) must be dedicated to the City of Federal Way for right-of-way and must be improved to applicable City standards. See Section VII of this report for a detailed description of the proposed roadway system and improvements. Pedestrian System - Sidewalks will be provided along all street frontages of the Residential South subdivision. Specifically, the full street improvements include five-foot wide sidewalks on both sides of all intemal streets. Tract K access tract will include a five-foot wide sidewalk and a four-foot wide planter strip only on the southerly side of the tract. Clearing and Grading - FWCC Section 20-178 identifies that all natural vegetation shall be retained on the site to be subdivided, except that which will be removed for improvements or grading as shown on approved engineering plans. To accommodate future lot drainage, address so,ne minor topographic changes on-site, and minimize truck traffic in the vicinity of the project, the applicant has proposed to clear and grade approximately 46 percent of the site during infrastructure construction. This would include clearing areas for roadways, storm drainage facilities, and clearing and grading for all of the 90 residential lots. Regulated wetlands, wetland buffers, and conservation areas will not be affected with the exception of Wetlands E and G.5 The applicant indicated that without the mass grading, there would be large quantities of earth across finished roads and sidewalks, increasing safety risks and damage to constructed infrastructure. In addition, large stockpiles of dirt which are unsightly and which can be an erosion problem could result. With the proposed clearing and grading activities, the applicant would be removing approximately 60 percent of the significant trees located on the site, leaving approximately 40 percent of the significant trees and corresponding native vegetation within the dedicated open space and recreation tracts, as well as within 100-foot wetland buffers in NGPT areas. The applicant estimates that 12.67 acres or 32 percent of the site is being utilized for building lot area and of the 1325 total significant trees within the developed portion of the site, 707 significant trees will be removed from the building lot areas while 618 significant trees will be removed from streets and utility areas. Significant trees on residential building lots are regulated at the time of building construction. Should more than 75 percent of the significant trees on a single lot be removed, tree replacement would be required at a 4 to I basis pursuant to FWCC section 22-1568. Significant trees removed in conjunction with approved roadway and storm drainage facilities are not subject to tree replacement requirements of the FWCC. Refer to the wetlands section, Exhibit N Preliminary Plat of Quadrant Residential South File//98-104313-00-SU / t)o~. t D. 23602 Staff Report to the ltearing Examiner Page I 1 Lots established in cluster subdivisions have little room to maneuver the building footprint around retained vegetation. In this case, new houses are proposed to be located five feet from the side property lines and 20 feet from the front property line. Lots are approximately 100 feet deep. A request to remove 707 significant trees in advance of residential home construction and without review under FWCC section 22-1568 results in the lack of 177 replacement trees required by the FWCC (707 divided by 4 is 176.5). Conversely, replacement trees can provide visual relief to houses located on the reduced size lots, initiates wildlife opportunities, promotes aesthetic values, and help mitigate the high density of the proposed cluster subdivision. Street trees do not meet the intent of replacement trees as provided for in Section 22-1568. Based on the small lot sizes, reduced construction costs, reduction in truck traffic, potential for better erosion control, and efficiencies in mass clearing and grading the site, City staff supports clearing and grading of the site as requested by the applicant subject to the condition that the final plat shall contain the requirement that 177 replacement trees be planted on individual building lots within the subdivision prior to final inspection of the individual lot and in conformance with FWCC section 22-1568(5). A TESC plan must be submitted with construction plans and approved by the City prior to issuance of engineering approval. Lan&cape Buffers - In accordance with FWCC Chapter 20, "Subdivisions," landscape buffers are specified only when the plat is adjacent to an incompatible zoning district or adjacent to an arterial road. The proposed plat is bordered on all sides by single-family residential zoning except for the south property line, which abuts the SR-18 highway. Therefore, a ten-foot wide perimeter landscape buffer is required between the south property line of Lots 30 and 31 and the SR-18 right-of-way. The tract, depicted as Tract L on the preliminary plat map, will be planted with trees, shrubs, and groundcover to meet Type III planting standards of FWCC Section 22-1565(c). This tract will be owned and maintained by the homeowners association. As proposed, lots that abut storm drainage facilities (Tract A and Tract B) are separated from the facility by a ten-foot wide landscape buffer established at the edge of the storm drainage tract. Visual screening of Tract A from Road A shall be provided with landscaping and/or fencing. Cyclone fencing, if used, shall be coated black or green and shall be screened by vegetation. Vegetation associated with storm drainage tract screening shall be maintained by the homeowners association. The preli~ninary plat map depicts Tract H adjacent to the entrance to the subdivision as a Native Growth Protection Tract (NGPT) with retained trees and associated vegetation. The intent of the vegetation is to shield abutting residences from the glare of vehicles traveling through the South 334tt~ StreetJ38t~ Avenue South roundabout. Street trees, when mature, open space vegetation, and screening of the storm drainage tracts, will contribute to visual buffering adjacent to and throughout the plat6. Street tree requirements are described in Section VII.A of this report. 6 Replacement trees further visual buffering goals. Preliminary Plat of Quadrant Residential South File//98-i 04313-00-SU / t)o~ l~). 23602 Staff Report to the itearing Examiner Page 12 VII -TRANSPORTATION Street Improvements - Primary access to the site will be provided via a roundabout installed at the intersection of South 334th Street at 38th Avenue South. The second access will be via the northward extension of Road B into the North Lake Ridge subdivision, currently under construction. This connection will provide vehicular access to Military Road South and establishes secondary access required by the FWCC. Pursuant to FWCC street improvement standards, all street improvements (except the private access tracts) must be dedicated as City right-of-way and improved to applicable City standards. A November 1998, Traffic Impact Analysis by the Transpo Group was submitted for the project, with revisions dated April 7, 1999, and December 2001, and an Amendment to the TIA dated May 8, 2003 (Exhibit R). The City's Traffic Engineer has reviewed the project and concluded that the proposed street layout of the Residential South subdivision is consistent with the adopted codes and comprehensive plan in place at the time of the complete application, The roundabout, which is located on a King County road, shall be designed in coordination with both Federal Way and King County staff. Roads A and B shall be improved within the plat as a Minor Collector and shall meet Street Section'S' of the Federal Way Comprehensive Plan (FWCP). This includes 60-foot wide right- of-way, 36-foot wide pavement width, curb and gutter, four-foot planter strips, five-foot wide sidewalks on both sides of the roadway, streetlights, and street trees. Road C shall be improved within the plat as a Local Street to meet Street Section 'W' of the FWCP, and shall include 52-foot wide right-of-way and 28-foot pavement width. Vertical curb and gutter, four-foot planter strips, and five-foot wide sidewalks shall be provided on both sides of the street. Streetlights and street trees shall also be provided. Road D shall be improved as a cul-de-sac street with a 50-foot radius. Vertical curb and gutter, four-foot planter strips, and five-foot wide sidewalks shall be provided on both sides of the street. Streetlights and street trees shall also be provided. Tract K shall be improved to the private access tract standard and shall be limited to serving a maximum of four lots. The lots that abut these tracts for access shall have undivided ownership of the tract and be responsible for its maintenance. The maintenance agreement for the private access tracts shall be included on the plat and the language approved by the City. Improvements shall include a 36-foot tract width and 20-foot pavement width. Vertical curb and gutter and five-foot wide sidewalk without planter strips shall be provided on one side. Tract length shall be limited to a maximum of 150 feet from face of curb to end of the tract, unless a 90-foot diameter turnaround is provided. Pursuant to Public Works Department street standards, all streets shall have a minimum pavement section of three inches Class B asphalt over six inches of crushed surfacing to support the traffic loads. Street lighting is required on all streets pursuant to FWCC Section 22- 1522. The Public Works Department and Federal Way Fire Department have approved preliminary roadway improvements and curve radius as proposed. Plat drawings reflect all required street improvements consistent with the FWCC. Preliminary Plat of Quadrant Residential South Staff Report to the Hearing Examiner File t/98-104313-00-SU / Page 13 Bo Off-Site Traffic Mitigation - This proposal has been reviewed under the State Environmental Policy Act (SEPA). Refer to Exhibit E specific off-site traffic mitigation measures. VIII PUBLIC SERVICES Schools - As part of the City's review of the proposal, the preliminary plat application was referred to the Federal Way School District for comments. Comments received on November 24, 1998 and updated August 5, 2003 (Exhibit S), indicate Lake Dolloff Elementary, Kilo Junior High, and Thomas Jefferson High School will serve the proposed subdivision. All students from this development would receive bus transportation to and from school, as these schools are over one mile from the subject site. School bus service will be able to loop through Quadrant Residential South and adjacent North Lake Ridge neighborhoods, and the School District will identify appropriate bus stop locations along Roads A, B and C as students move into the areas. School service areas are reviewed annually and may be adjusted to accommodate enrollment growth and new development. School impact fees, as authorized by City ordinance and collected at the time of building permit issuance, are currently $3,894.00 per single-family housing unit. School impact fees are determined on the basis of the District's Capital Facilities Plan and are subject to annual adjustment and update. Parks & Open Space - The Quadrant Residential South site is approximately ½ mile from the public fishing access of North Lake, approximately two miles from the City of Federal Way public parks of Steel Lake Park and Celebration Park, and two miles from the King County Lake Geneva Park. On-site parks and open space requirements are discussed in Section VI of this report. Fire Protection - According to a November 3, 1998, Hydraulic Model Fire Flow Estimate prepared by Lakehaven Utility District, a maximum fire flow rate of 2,500 gallons per minute (GPM) is available. The Certificate of Water Availability from the Lakehaven Utility District indicates that water will be available to the site in sufficient quantity to satisfy fire flow standards for the proposed development. The Fire Department requires that a fire hydrant be located within 350 feet of each lot. The exact number and location of fire hydrants will be reviewed and approved by the Fire Department. IX UTILITIES mo Sewage Disposal - The applicant proposes to serve the proposed plat by extending a sewer trunk line through the site. Lakehaven Utility District would manage the line and with a Developer Extension Agreement (DEA) between the applicant and the district. The existing eight inch sanitary sewer trunk line is to be extended from approximately the westernmost portion of South 336th Street eastward to Road A, east along Road C and north through Tract D to the North Lake Ridge subdivision and is reviewed under Federal Way File #03-103113-00- UP (Process III). Discussion of the sewer line extension through regulated wetlands B and F and their associated wetland buffer is contained in Exhibit N and discussion of the sewer line intrusion into wetland setback areas is contained in the August 11, 2003 Director of Community Development Services administrative decision for Federal Way File #03-103111- Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / Do~. I.D. Staff Report to the Hearing Examiner Page 14 00-AD (Exhibit T). The applicant will need to apply for a certificate and DEA before the engineering approval is granted. Water Supply - The applicant proposes to serve the subdivision with a public water supply and distribution system managed by the Lakehaven Utility District. A November 10, 1998, Certificate of Water Availability (Exhibit U) indicates Lakehaven's capacity to serve the proposed development through a DEA. The applicant will need to renew the expired DEA and certificate before the engineering approval is granted. Co Drainage Facilities - Development of the site will create additional runoff from new impervious surfaces such as streets, driveways, and rooftops. Storm drainage facilities are being . designed in accordance with the 1998 King County Surface Water Design Manual (KCSWDM) and the City's amendments to the manual. The applicant's preliminary storm drainage Technical Information Report (TLR) by ESM Consulting Engineers, Inc., revised May 15, 2003 (Exhibit d), was reviewed by the City's Public Works Department. According to the TILL, revisions, and amendments, the existing surface water runoff from the site is divided into tlu'ee basins, separated by the north/south ridges. Basin A, approximately 23 acres in size located in the western portion of the site, flows southwesterly into Wetlands A through C, which are located in the southwest portion of the site. There are two eastern basins. The East Basin, approximately 17 acres in size, flows southerly into a low-lying area along the south property line. Flow from this basin drains south to a culvert, which goes under SR 18 and continues southward to a small pond where is joined by flows out of Lake Geneva. This system continues in a general northerly and easterly direction in to Mill Creek. The East/East Basin, approximately two acres in size, slopes towards a wetland located east of the subject site and subsequently flows east to Peasley Canyon and into Mill Creek. Two separate combination wet pond/detention pond facilities, providing stormwater detention and water quality treatment for this site, will be constructed. These facilities shall be sized in compliance with the 1998 KCSWDM, and City addendum to the manual. In accordance with the KCSWDM grasses and wetlands plants identified in Table 6.3.1.D, Fine-textured Plants Tolerant of Frequent Saturated Soil Conditions or Standing Water, shall be installed within wet ponds. The wetlands located on or adjacent to the site currently receive runoff from sheet flows on the undeveloped property. The TIR proposes to approximate runoff conditions, considering the proposed impervious areas as discussed below. Water from the proposed western stormwater detention pond in Tract A (West Pond), located in the southwest portion of the site, will be discharged via a level flow spreader and subsequently sheet flow into Wetland C.7 Water from the proposed eastern stormwater detention pond in Tract B, located in the southeastern portion of the site, will be discharged into the existing culvert, which runs under SR 18 and flows south and east to Mill Creek. Stormwater released on to the WSDOT right-of-way is subject to WSDOT approval and shall meet requirements of WAC 173-201A. The applicant will have the culvert cleaned as part of site improvements; WSDOT will have to flush as part of their periodic maintenance. Water flows from the East/East Basin are limited to sheet flows from open space areas. The applicant has indicated that flows will be maintained to the off-site wetland. No changes to the 7 Wetland C flows drains westerly into Hylebos Creek. Preliminary Plat of Quadrant Residential South File//98-104313-00-SU / r~. m 23602 Staff Report to the Hearing Examiner Page 15 wetland hydroperiod as a result 9fthe quantity and or character of the outflow from the western storm pond will be permitted under the code. The applicant submitted an "Off-Site Drainage/ Tree Exhibit" prepared by ESM Consulting Engineers (May 20, 2003) to address drainage related concerns from adjacent property owner (Exhibit V). No adverse stormwater impacts are anticipated based on the required compliance with code requirements for the treatment and discharge of stormwater. As with all paved, developed areas, the site will contribute some pollutants to ground and surface waters as these will be washed offthe parking and vehicular areas by stormwater into the drainage system. Pollutants that accumulate on paved surfaces may include heavy metals, petrochemicals, and other substances. Consistent with the requirements of adopted regulations, all water runoff from the paved portions of the project will be treated either the on-site wetpond/detention facilities. Final review of the stormwater quality and detention will occur in conjunction with the full drainage review. X ANALYSIS OF DECISIONAL CRITERIA The FWCC establishes review procedures and decisional criteria for deciding upon various types of land use applications. Pursuant to FWCC Chapter 20, "Subdivisions," Section 20-110, preliminary plat applications are submitted to the hearing examiner for public hearing. The preliminary plat application and the recommendation of the hearing examiner are submitted to the City Council for approval or disapproval. Hearing Examiner Preliminary Plat Decisional Criteria - Pursuant to FWCC Section 20-126(c), the hearing examiner may recommend approval of the proposed preliminary plat only if the following decisional criteria are met. Decisional criteria and staff responses are provided below. 1. The project is consistent with the comprehensive plan. Staff Comment: The application is subject to the adopted 1995 Federal Way Comt~rehensive Plan (FWCP), which designates the property as Single Family - High Density. The proposed land use, Single Family Residential lot cluster plat, with 4,800 square foot minimum lot size (RS-9.6), is consistent with density allowances and policies applicable to this land use as established in the FWCP. 2. The project is consistent with all applicable provisions of the chapter, including those adopted by reference from the comprehensive plan. Staff Comment: The preliminary plat application is required to comply with the provisions of the FWCC, Chapter 18, "Environmental Policy"; Chapter 20, "Subdivisions"; Chapter 22, "Zoning"; and all other applicable codes and regulationsfi Future development of the residential subdivision will be required to comply with all applicable development codes and regulations. As proposed, and with conditions as recommended by staff, the preliminary plat will comply with all provisions of the chapter. s As previously stated, the project is vested to the environmental and subdivision codes in effect at the time the application was determined to be complete. Preliminary Plat of Quadrant Residential South File//98-104313-O0-SU / r~.:. i.r~. 23so2 Staff Report to the Hearing Examiner Page 16 3. The project is consistent with the public health, safety, and welfare. Staff Comment: The proposed preliminary plat would permit development of the site consistent with the current Single Family High Density land use classification of the City's FWCP and map. Proposed access and fire hydrant locations must meet all requirements of the Federal Way Fire Department. Future development of the plat in accordance with applicable codes and regulations will ensure protection of the public health, safety, and welfare. 4. It is consistent with the design criteria listed in FWCC Section 20-2. Staff Comment: The proposed preliminary plat would promote the purposes identified in FWCC Section 20-2 and the standards and regulations therein, as identified in the staff report, including effective use of land, promotion of safe and convenient travel on streets, provision for the housing needs of the community, protection of environmentally sensitive areas, and preservation of 51 percent of the site for permanent open space. As proposed, and with conditions as recommended by City staff, the preliminary plat application complies with all provisions of the chapter. It is consistent with the development standards listed in FWCC Sections 20-151 through 157, and 20-158 through 187. Staff Comment: Development of this site is required to comply with the provisions of FWCC Chapter 20, "Subdivisions"; Chapter 18, "Environmental Protection"; Chapter 22, "Zoning"; and all other applicable local and state development codes and regulations. As proposed, and as recommended by City staff, the preliminary plat application complies with all applicable statutes, codes, and regulations. XI FINDINGS OF FACT AND CONCLUSIONS Based on an analysis of the proposed action, the environmental record, and related decisional criteria, the Department of Community Development Services finds that: The proposed action is to subdivide a vacant 39.64 acre parcel into 90 single-family lots, in a cluster lot configuration. The majority of adjacent land uses are single-family residential, with SR 18 running along the southern property line. There are ten wetlands in several locations on the subject property. The preliminary plat application is subject to the 1995 FWCP and is vested to the codes and regulations in effect at the time the application was deemed complete, which was December 15, 1998. 3. The subject property is designated Single Family High Density in the 1995 FWCP. Zoning for the site is RS-9.6 (minimum lot size 9,600 square feet). Adjacent Federal Way zoning is Office Park (OP) and RS 9.6 to the west, with R-4 for those properties located in unincorporated King County situated northwest, north, and east of the subject property. (The R- 4 designation permits four dwelling units per acre.) The proposed residential subdivision and density is consistent with applicable zoning and subdivision regulations applicable to a lot cluster plat. Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / r~: rD. 2~6o2 Staff Report to the Hearing Examiner Page 17 o o 10. 1l. 12. Pursuaut to FWCC Section 20-154, the lot size in a cluster subdivision may be reduced up to half tile minimum lot size of the underlying zouing designation. Therefore, the minimum lot size allowed on the project is 4,800 square feet. All proposed lots exceed the minimum size required and the average proposed lot size is 5,755 square feet. Pursuant to FWCC Section 20-153, on this 39.64-acre parcel the maximum number of lots allowed is 116. The maximum number of lots allowed is calculated by subtracting 15 percent of tile gross land area for open space and subtracting 20 percent for streets, and dividing the remaining area by the underlying zoning lot size. The 90 proposed lots are well below the maximum allowed number of lots. The cluster plat regulations are intended to promote open space and protect natural features. The proposed plat results in preservation of approximately 51 percent of the site (20.58 acres) in open space. Approximately 16.18 acres of the open space is constrained by wetlands or buffers, and the remaining 4.40 acres of open space are usable. An Environmental Mitigated Determination ofNonsignificance (MDNS) was issued for this proposed action on April 2, 2003. Five comment letters were submitted to the City before expiration of the comment deadline. The topics of the comment letters pertained to traffic impacts, stormwater drainage, and wildlife habitat. The City found that new information was required to assess project related environmental impacts and on April 18, 2003, withdrew the MDNS decision. Following receipt of additional information, the City issued a new MDNS for the preliminary plat application on June 18, 2003. No comments or appeals were submitted on that decision. The MDNS decision is incorporated as though set forth in full. There are 10 regulated wetlands on the subject site. The subdivision proposal is vested to previous wetland codes that mandated that all wetlands were regulated with a 100-foot buffer. Two of the wetlands are proposed to be filled for storm drainage facility installation; one wetland is proposed to be impacted by a sanitary sewer trunk line installation. The Federal Way Hearing Examiner shall review the separate requests for wetland and wetland setback area intrusions and proposed mitigation under Federal Way File #03-103112-00-UP, pursuant to the provisions of Process IV. The decision of the Hearing Examiner shall be incorporated into the construction plans and the final plat application. Intrusions into a wetland setback area for installation of essential public facilities and a public utility are administratively reviewed under Federal Way File # 03-103111-00-AD, pursuant to FWCC Section 22-1359(b). A bald eagle nest is located immediately adjacent to the west boundary of the site. In May 1999, a Bald Eagle Nest Site Management Plan (BEMP) for the site was prepared by the Washington Department offish and Wildlife (WDFW) and signed by the applicant. The plan required that fencing and signage be incorporated between trails and wetland buffers adjacent to the eagle's nest. The BEMP was subsequently amended by WDFW in January 2003, and approved the location of the Tract C pedestrian walking trail within the 400-foot no-disturbance area from the eagle's nest. The amended plan also re~noved specific lot construction limitations and instead requested that construction activity be timed to avoid disturbances from the sensitive nesting period of February 1 to May 1, and fledging departure period of July I to July Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / ~ t.o. 2~6o2 Staff Report to the Hearing Examiner Page 18 13. 14. 15. 16. 17. 18. 15, while limiting disturbances from May 1 to July 1. The May 1999 and January 2003 BEMP recommendations shall be fully incorporated into the engineering plans. Water facilities available from the Lakehaven Utility District will be adequate to serve the proposed development. The applicant will be required to extend the sanitary sewer trunk line from the western portion of the site to the northern portion of the site to serve this project as reviewed under Federal Way File #03-103113-00-UP. The expired water availability certificates must be renewed prior to construction approval. It is the applicants' responsibility to secure all necessary water and sewer services from the utility provider. Development of the site will create additional runoff from new impervious surfaces such as streets, driveways, and rooftops. Storm drainage facilities are being designed in accordance with the 1998 KCSWDM and the City's amendments to the manual. The applicant's preliminary storm drainage TIR by ESM Consulting Engineers, Inc. was reviewed and accepted by the City's Public Works Department. There are three basins identified on the site. The preliminary design proposes to collect and convey water from Basin A into the west stormwater drainage facility in Tract A, and discharge via a level flow spreader into Wetland C, which ultimately flows to the Hylebos Creek. Water from the proposed eastern basin is directed into the stormwater detention pond in Tract B, and will be discharged into existing culverts that run under SR 18, eventually flowing into Mill Creek. Flows from the East/East basin, which slopes towards a wetland located east of the site, are limited to sheet flows from open space areas, and will maintain drainage patterns to Mill Creek. In conjunction with on- and off-site improvements, these facilities are adequate to serve the proposed development. Final review and approval of the stormwater engineering plan will occur in conjunction with full drainage review. A November 1998, Traffic Impact Analysis by the Transpo Group was submitted for the project in additions to revisions dated April 7, 1999, December 2001, and May 2003. Primary access to the site will be provided via a roundabout constructed at the intersection of South 334th Street at 38th Avenue South. The second access to the site is via the northward extension of Road B into the North Lake Ridge subdivision. The proposed preliminary plat was reviewed to ensure optimal location and configuration of access to the subject property. Roads A and B are designated as a Minor Collector streets, and Road C is designated as a Local street by the FWCP. Full street improvements within the plat are required by the FWCC. All public right-of-ways will be dedicated to the City. One separate tract to provide access to three lots shall meet applicable City standards. The proposed private access tract is less than 150 feet and serves four or fewer lots. The private access tract will be owned and maintained by those lot owners receiving access from each tract. As proposed, each proposed lot contains an adequate size and shape building envelope to contaiu a future single-family residence. Building setback lines (BSBL) are identified on the preliminary plat map. According to the Federal Way School District, school bus service will be able to loop through the subdivision. Proposed sidewalk improvements to the internal street systems, including on- site sidewalks on all internal plat streets, will provide safe pedestrian routes of travel for Preliminary Plat of Quadrant Residential South File #98-1043 ! 3-O0-SU / no~ i.D 23,o2 Staff Report to the ltearing Examiner Page 19 children who will be bused to Lake Dolloph Eleinentary, Kilo Junior Itigh, and Thomas Jefferson High School. 19. Tracts C, D, E, F, and M, which comprise 10.8 percent (4.27 acres) of the total site area, and the 3,143 linear feet of trails within Tract C, D, E, G and I have been determined by the PARCS Director to meet the intent of the usable open space area requirements of FWCC Section 22- 154. Tract C is approximately 1.56 acres in size, and proposed to include a park area, native vegetation and a pedestrian trail. The WDFW and the Parks Director have approved those portions of pedestrian trail located within the 400 foot no disturbance area of the adjacent Eagles nest. Tract D is approximately 1.80 acres and will be developed with a pedestrian trail. The western portions of Tract D will contain a sanitary sewer trunk line and associated utility infrastructure. Tract E is 0.55 acres in size and will contain park area, native vegetation and a pedestrian trail. Tract F is 0.20 acres in size and will contain native vegetation and park area. Tract M is approximately 0.16 acres in size and will contain native vegetation and park area. Pedestrian trails in Tracts C, D, E, G and I shall be a minimum of six feet wide and consist of wood chips produced from the site with two-foot wide vegetated shoulders. Open rail fencing and appropriate signage shall be installed to provide separation of pedestrian trails and wetland setback areas, and to also satisfy BEMP conditions. The on-site open space areas delineated as separate tracts will be owned and maintained by the subdivision property owners. A note shall be included on the final plat that the open space tracts shall not be developed with any buildings, and may not be used for financial gain. 20. hnplementing the cluster plat provisions results in large open space areas on site. Approximately 20 acres of on-site open space consisting of regulated wetlands, wetland setback areas, pedestrian trails and usable open space areas will be created by the plat. Existing vegetation will be preserved on approximately 16 of the 20 acres open space area associated with wetlands and wetland setback areas. Although further development of the active recreation area in tracts may occur in the future by the developer or homeowners association, only a small portion of the active open space is currently proposed for development and vegetation removal. Any future development of tracts adjacent to wetlands and wetland setback areas is required to be designed and constructed to protect and enhance wildlife habitat to the maximum extent feasible. A wildlife biologist shall review and comment on future open space improvements. 21. The proposed development, when completed, will displace approximately 20 acres of habitat for small mammals, rodents, reptiles, birds, and insects, llabitat for the pileated woodpecker, classified as sensitive species by the WDFW, will be impacted. However, approximately 13 acres of wetland and buffer, in addition to a remotely located 2.8-acre conservation area, will remain unchanged and continue to provide habitat. Additionally, 4.4 acres of usable open space area is provided on-site. 22. The subject property is heavily wooded with primarily second growth forest. The clearing and grading limits proposed will result in clearing and grading a significant amount of the developed portion of the site. A forestry report and tree plan submitted with the application estimates that approximately 2,208 significant trees exist on the 39.64-acre site. Approximately 1,325significant trees on the property are proposed for removal during plat infrastructure construction and grading with 618 significant trees removed from road and drainage facility areas and 707 significant trees removed from building lot areas. Based on the small lot sizes, reduced construction costs, reduction in truck traffic, potential for better erosion control, and efficiencies in mass clearing and grading the site, City staff supports clearing and grading of the site subject to the condition that the final plat shall contain the requirement that 177 Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / rk~ ~ ~3~02 Staff Report to thc Itearing Examiner Page 20 23. 24. 25. 26. replacement trees be planted on individual building lots within the subdivision prior to final inspection of the individual lot and in conformance with FWCC. Prior to issuance of construction permits, the applicant will be required to submit a landscape plan addressing park and open space landscaping within Tracts C, D, E, F, G, H, I, J, L, and M, storln drainage tract screening, street trees, and a tree preservation plan in accordance with FWCC. The proposed preliminary plat is permitted by FWCC Chapter 20, "Subdivisions," and Chapter 22, "Zoning." The proposed subdivision and all attachments have been reviewed for compliance with the FWCP; FWCC Chapter 18, "Environmental Protection"; Chapter 20, "Subdivisions"; Chapter 22, "Zoning"; and all other applicable codes and regulations. As proposed, and recommended by staff, the preliminary plat is consistent with the FWCP and all applicable codes and regulations. Prior to final plat approval and recording, all required and approved improvements will be constructed, or the improvements appropriately bonded, per City code requirements. XII RECOMMENDATION Based on review of this application, the environmental record, and pertinent decisional criteria, the Department of Community Development Services recommends approval of the preliminary plat subject to the following conditions: Final plat approval shall require full compliance with drainage provisions set forth in the FWCC. Compliance may result in reducing the number and/or location of lots as shown on the preliminary approved plat. Drainage plans and analysis shall comply with the 1998 KCSWDM and amendments adopted by the City of Federal Way. City of Federal Way approval of the drainage and roadway plans is required prior to any construction. The runoff control facilities within Residential South shall be located within separate tracts (tract A and B) that are landscaped to screen the facility from the right-of-way and adjacent residential uses and to allow for appropriate maintenance of the facility, and shall be dedicated to the City of Federal Way. Tracts C, D, E, F, G, H, I J, L, and M shall be owned, landscaped, and maintained by the homeowners association. The homeowners association shall also maintain screening vegetation in Tracts A and B. A landscape plan for Tracts C, D, E, F, G, I, J, L and M shall be submitted to the City for review and approval as part of the plan. Co Stormwater quality treatment shall be provided using the basic water quality menu options of the 1998 KCSWDM, as amended by the City of Federal Way. Stormwater from Tract A shall be directed to the buffer of Wetland A-C via a level flow spreader. Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / mc tn 236o2 Staff Report to the ltearing Examiner Page 21 -. o The applicant shall be required to construct all storm drainage i~nprovements necessary to mitigate all identified conveyance problems, whether existing or resulting from the plat's development, as identified during engineering plan review and as required by the Public Works Director. Engineering approval shall not be granted if it is determined that proposed mitigation is not adequate to address the impacts of the project. The final plat drawing shall dedicate all usable open space in an open space tracts to be owned in common and maintained by property owners of the proposed subdivision, and shall prohibit removal or disturbance of vegetation and landscaping within the tract, except as necessary for maintenance or replacement of existing plantings and as approved by the City. Additional vegetation may be located in open space tracts to meet conditions as approved by the City. A note shall be included on the final plat map that the open space tracts shall not be further subdivided, may not be developed with any buildings or other structures except as may be approved by the City for recreational purposes only for the benefit of the homeowners, and may not be used for financial gain. Prior to issuance of construction permits, a final landscape plan prepared by a licensed landscape architect shall be submitted to the City for approval, and shall include the following elements: A. Open space and/or park landscaping in Tracts C, D, E, F, G, H, I, J, L, and M; B. Street trees in right-of-way landscape planter strips; C. Tree preservation plan; and Visual screeuing of the Quadrant Residential South storm drainage facilities in Tracts A and B from the adjacent Road A and from adjacent residential lots with landscaping and fencing. Cyclone fencing, if used, shall be coated black or green and shall be screened by vegetation. The proposed subdivision shall comply with the 1993 King County Road Standards (KCRS) as amended by the City of Federal Way for this project, including the following requirements: Roads A and B shall be improved along the frontage of the project as minor collectors, including 60-foot wide right-of-way and 36-foot wide pavement width, curb and gutter, four-foot planter strips, and five-foot wide sidewalks on both sides of the roadway, streetlights, and street trees. Road C shall be improved as a local street, to include a 52-foot wide right-of-way and 28-. foot pavement width. Vertical curb and gutter, four-foot planter strips, and five-foot wide sidewalks shall be provided on both sides of the street. Streetlights and street trees shall also be provided. Co Road D shall be improved as a cul-de-sac street with a 50-foot radius. Vertical curb and gutter, four-foot wide planter strip, and five-foot wide sidewalk shall be provided on all sides of the street. Streetlights and street trees shall also be provided. D. Tract K shall be improved to a private access tract standard and shall be limited to serving a maximum of four lots. The lots that abut these tracts for access shall have undivided Preliminary Plat of Quadrant Residential South File #98-! 04313-00-SU / oo~. m 236o2 Staff Report to the Hearing Examiner Page 22 o 10. ownership of the tract and b.e responsible for its maintenance. The maintenance agreement for the private access tracts shall be included on the plat and the language approved by the City. Improvements shall include a 36-foot tract width and 20-foot pavement width. Vertical curb and gutter and five-foot wide sidewalk without planter strips shall be provided on one side. Tract length shall be limited to a maximum of 150 feet from face of curb to end of tract, unless a 90-foot diameter turnaround is provided. E. All streets shall have a minimum pavement section of three inches Class B asphalt over six inches of crushed surfacing to support the traffic loads. Due to eagle nest adjacency, seasonal construction restrictions from February 1 to May 1 and July 1 to July 15 shall be imposed for all clearing, grading, filling, and related construction activities contained in the amended BEMP as approved by WDFW, and shall be applied to plat construction as part of engineering review. Conditions imposed by the Federal Way Hearing Examiner and the Director of Community Development Services for wetland and wetland setback area intrusions shall be depicted on construction drawings and the final plat drawings as appropriate. Prior to final plat approval, open rail fencing and appropriate signage shall be installed to separate the planned and future parks and pedestrian trails from wetlands and wetland setback areas, and shall be designed in accordance with BEMP conditions for fencing and signage. The final plat shall contain the requirement that 177 replacement trees shall be planted on individual building lots within the subdivision prior to final inspection of residential building activities on the individual lot and in conformance with FWCC section 22-1568(5)(b). The final plat shall contain the requirement that all future park and pedestrian trail improvements adjacent to wetland and wetland setback areas shall be designed to follow recommendations of a Wildlife Biologist, and shall be submitted to the Department of Community Development Services for review. XIII LIST OF EXHIBITS A. Reduced Scale Preliminary Plat of Quadrant Residential South prepared by ESM Consulting Engineers, July 30, 2003; and Preliminary Drainage, Grading, and Utility, Existing Conditions, Preliminary Landscape Plan and Preliminary Landscape Plan Details prepared by ESM consulting Engineers, December 27, 20029 B. Vicinity Map C. Comment Letters Received Following Notice of Application C1 -Northlake Improvement Club, December 24, 1998 C2 - Jean M. Parietti, December 30, 1998 C3 - Don and Eleanor Vandenheuvel, December 28,1998 C4 - A. J. King III, December 29, 1998 C5 - Jemmie D. Wear, December 31, 1998 C6 - Arthur J. King, Jr., December 30, 1998 D. City Responses, January 7, 1999 E. MDNS Issued April 2, 2003 9 Full size plan set to the Federal Way Hearing Examiner Preliminary Plat of Quadrant Residential South File #98-104313-00-SU / ~o~. ~.~). 23~o2 Staff Report to the Hearing Examiner Page 23 F. Staff Evaluation and Checklist (from June 18, 2003, MDNS) G. Comment Letters Received Following April 2, 2003, MDNS G1-WSDOT, April 8, 2003 G2 WSDOT April 15, 2003 G3 - Bud Tinnerman, April 15, 2003 G4 - Don and Eleanor Vandenheuvel, April 10, 2003 G5 -Jean Parietti/Will Self, April 15, 2003 G6 - WSDOT, June 3, 2003 G7 - WSDOT, June 12, 2003 H. Letter to Withdraw April 2, 2003 MDNS Decision, April 18, 2003 I. MDNS Issued June 18, 2003 J. Technical Information Report (TIR) prepared by ESM, December 27, 2002, and Revised May 15, 2003 K. Geotechnical Considerations from Geotechnical Consultants, November 5, 1998 L. Lusignan Forestry Report, November 9, 1998 M. Grading Request M1 -ESM letter, August 23, 2002; M2 - ESM letter, August 12, 2002; and M3 - ESM letter, December 27, 2002 N. Process IV Wetland Analysis Required for Requests for Intrusion into Wetland and Wetland Setback Areas O. Bald Eagle Management Plan (BEMP) prepared by WDFW, May 1999 and Amended January 2003 P. Open Space Letter prepared by ESM, August 5, 2003 Q. Tract D Gravel Road prepared by ESM, August 5, 2003 R. Traffic Impact Analysis prepared by the Transpo Group, April 7, 1999, Revised December 2001 with Amendment May 8, 2003 S. Federal Way School District Letter, August 5, 2003 T. Community Development Services Administrative Decision, August 11, 2003 U. Certificate of Water Availability from Lakehaven Utility District, November 10, 1998 V. Off-Site Drainage/Tree Exhibit Prepared by ESM, May 20, 2003 TRANSMITTED TO THE PARTIES LISTED HEREAFTER: Federal Way Hearing Examiner Applicant - Skip Holman, Quadrant, Inc. Project Engineer - ESM Consulting Engineers Federal Way Staff Preliminary Plat of Quadrant Residential South Staff Report to the Hearing Examiner File//98-104313-00-SU / Do~. ~.D. ~602 Page 24 Federal Way MITIGATED ENVIRONMENTAL DETERMINATION OF NONSIGNIFICANCE Quadrant Residential South Cluster Preliminary Plat Federal Way File No. 98-104304-00-SE Description of Proposal: Proponent: Location: Lead Agency: City Contact: Cluster subdivision of 40 acres into 95 residential lots with an average lot size of approximately 4,500 square feet. The proposal also includes developing a road system, street improvements, utilities, storm drainage control improvements, and other related infrastructure improvements. Approximately 50 percent of the site will be retained in envirotunentally sensitive areas and passive or usable open space area. Extension of an eight-inch sanitary sewer line is proposed and relocation of a 12-inch water line will be doue in conjunction with plat improvements. Skip Hohnan, 425-455-2900 Quadrant Corporation PO Box 130 Bellevue, WA 98009 North of SR 18, east of the intersection of South 334'l~ Street and 38m Avenue South, South of 42nd Avenue South, as extended and Southeast of North Lake, Federal Way, Washington. King Couuty tax parcels #222104-9037, #614360-0186, and #614360- 0635. Portions of Section 15, Towuship 21 North, Range 4 East, WM, and Section 22, Toxvnship 21 North, Range 4 East, WM. City of Federal Way Deb Barker, Associate Planner, 253-661-4103 The responsible Official of the City of Federal Way hereby makes the following decisions based upon impacts identified in tile environmental checklist, Federal Way Compreheusive Plan, final staff evaluation fo,' this action, and other municipal policies, plans, rules, and regulatious designated as a basis for exercise of substantive authority under tile Washington State Em,ironmenta[ Po[icy Act Rules pursuant to P, CW 43.31 C.060. The lead agency for this proposal has determined that it does not have a probable significant adverse impact on the environment and au Euvironmeutal Impact Statement (ELS) is not required trader RCW 43.21C.030(2)(c), only if the conditions listed below are inet. This decision xvas made after review of a completed enviromncutal checklist and other information on file with tile lead agency. This iufonnation is available to tile public on request. EXHIBIT PAGE ! OF__..U_ FINDINGS OF FACT The subject property is generally located east of the intersection of South a~,,~ Street and Avenue South, north of SR la and south of42"d Avenue South as extended, Federal Way, Washington. Tile proposal includes tile subdivision of 40 acres into 95 residential lots with an average lot size of approximately 4,500 square feet. The proposal also includes developing a road system, street improvements, utilities, storm drainage coutrol improvements, and other related infrastructure improvements. Tile subject property is zoned RS 9.6, requiring a lninimum lot size of 9,600 square feet per parcel (except itl cluster subdivisions). The comprehensive plau designation for the site is High Density Single Family. In order to promote open space and protect natural features on the site, the proposed subdivision is designed as a cluster subdivision pursuant to Federal Way City Code (FWCC) Section 20-154. Under the provisions of FWCC Section 20-154 that were in effect at the time the application was determined to be complete, lots created itl a cluster subdivision may be reduced in size, but no less than 3,600 square feet. In accordance with code requirements, transportation impacts, pedestrian access, and improvements necessary for tile proposed project were analyzed. A D'ansportation Impac! Anah,sis (TIA) was prepared for the proposed project. The results of the analysis indicate that the potential for adverse impacts exists in the surrounding road network. In its Six Year Transportation Improvement Plan (TIP), the City of Federal Way bas identified five TIP projects in xvbicb tile proposed development will exceed tile net 10 PM peak hour threshold that requires project mitigation. The developer must construct tile impacted TIP projects or voluntarily contribute pro-rata mitigation fees. 4. According to the November 1998 (revised December 2001) Transpo Group TIA, the project will generate 960 average weekday trips. On-site street ilnprovements for the project must comply xvith adopted City codes. In addition to constructing on-site roadways, the developer is proposing to construct a single lane rot, ndabout at tile intersectiou of Soutll 334d' Street and tile site access (with street xvidening and sidewalk improvements), to conuect to 42"d Avenue South to the north. Tile Final Staff Evaluation for Em,ironmental Checklist, File No. 98-104304-00-SE. is hereby incorporated by reference as though set forth iu full. CONCLUSIONS OF LAW Federal Wa), 's 2000 Conq)rehensive Plan Policies, adopted by Federal Way and contained within tile 2000 Federal Way Comprehensive Plan (FWCP), serve as a basis for the exercise of substantive SEPA authority to approve, condition, or deny proposed actions applicable to potential adverse euvironmental impacts resulting from this project. The following compouents of tile FWCP support tile conditions for tile development. TG2: Provide a safe, efficient, convenient, aud financially sustainable transpot-tation system with sufficient capacity to move people, goods, and services at an appropriate level of service. The City shall develop and adopt policies for the constructiou, reconstruction, maintenance, and Quadrant Residential South 'ri~~~ Mitigated Determination of N(msignificancc 77' 9: Identify and implement changes to the transportation system which reduce reliance on tile single occupant vehicle. Support state, regional, and local visions and policies. TP 9: Tile City's LOS standard shall be E. This is defined herein as a volume/capacity ratio less than 1.00 ill accordauce with llighway Capacity Manual (1994) operational analysis procedures. At signalized intersections, the analysis shall be conducted using a 120-second cycle length and level of service E is defined as less than 60 seconds of stopped delay per veh'icle. Where transit or HOV facilities are provided, tile LOS shall be measured by average delay and volume/capacity ratio per person rather than per vehicle. This standard shall be used to identify concurrency needs and mitigation of development impacts. For long-range transportation planning and concurrency analysis, a volume/capacity ratio of 0.90 or greater will be used to identify locations for the more detailed operational analysis. TP 32: Structure the City's improvement program to strategically place increments of public aud private investment that complement the ,nultimodal vision of tile plan. This should include "matching" improvements to supplement the efforts by other agencies to provide HOV and transit faciliti.es.) TP 41: Arterial HOV improvements will be constructed along key corridors to improve flow and encourage use of these more efficient modes. TP 53: Ensure that city facilities and amenities are ADA compatible. TP 54: Work to extend the existing system of' sidewalks, bikeways, and equestrian ways iu the City to provide safe access to public transit, neighborhood and business centers, parks, schools, public facilities, and other recreatioual attractions. lip 7: If allowed by applicable law, development inside and outside the City should be required to provide their fair share of onsite and offsite improvements. SEPA CONDI'rION Prior to approval of the final plat, tile applicant shall either coustruct tile following impacted Transportation hnprovement Plan (TIP) projects, as required by tile Public Works Department; or, contribute tile project's pro-rata share of the construction cost of the TIP projects, as follows: Pro-Rata Share Project TIP Project l'roject Cost (project phi Tr!Es Contribution Cost Location PM Trips) A SR99 ItOV Lanes: $13,200,000 10/3210 x 100 =0.31% $5,474,000 x 0,31% South 324it' Street Grant funding - = S I 7,000 South 340'{' Street $7,826,000 Adjusted project cost = $5,474,000 B South 336"' and $648,700 34/1756 x 100 = 1.94% $64%000 x 1'.94% Weyerhaeuser Way: = $12,600 Realign intersection Quadrant Residential South Mitigatcd Determination of Nonsignificancc File #9t Pro-Rata Sharc Project TIP Project I)roject Cost (Project PM TriEs Cont,'ibution Cost Location PM Trips) C South 336"' Street ~ $100,000 10/3342 x 100 = 0.30% 5; 100,000 x 0..30% 9'h Avenue South = 5;300 D South 336"' Street ~1~t 5;420,000 10/2956 x 100 = 0.34% 5;420,000 x 0.34% Way South - 5;1,400 E South 336u' Street: 18t'' 5;;1,200,000 23/1236 x 100 = 1.86% 5;1,200,000 x 1.86% Avenue South to I-5 = S22,300 TOTAL S53,600 This MDNS is issued under WAC 197-11-340(2). The lead agency will not act on this proposal for 14 days from the date of issuance. Comments must be submitted by 5:00 p.m. on April 16, 2003. Unless modified by the City, this determination will become final following tile above comment deadline. Any person aggrieved of the City's final determination may file an appeal with the City within 14 days of tile above comment deadline. Responsible Official: Kathy McClung, Director of Community Development Se,'vices Address: 33530 First Way South, POBox9718, Federal\Vay, WA 98063-9718 Datelssued: April2,2003 Signature: ~'~~'- ~ EXHIBIT Quadrant Rcsidcmial South File #98-104304-00-SE/o,: ~o 2tsss Mitigated Determination of Nonsignificanc¢ Page 4 9VI±N3aI$3H HlnO8 ~nd~VO ±Sw NOI£V~Od~O0 SNV~VflD ]H~ t / / / / / HJ. nOcJ 'IVIJ.N~IOIS::I)::I J. Nvuavn{:) NOIZV~OdBO0 ZNV~OVnO /' H.LnOS qVIJ. N~OIS~I::J J. NVldavno -~ ~, ~,' ? , NOliVi:{OdJdOO .l. NV~OYf'iO Octobcr 21,2003 ITEM# MEETI N(; I)ATI~;: CiTY OF FEDERAl, WAY City Council AGENDA BII,I SUIIJECT: Electric Winchcs l>d;P CATE(;ORY: ~1 CONSENT [] ORI)INANCE [] RESOI~UTION [] PUBI~IC ItEARING ~] CITY C()UNCII~BUSINESS [] OTItEil BUI)GET IM PACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACIIM ENTS: Committcc action form dated Scptcmbcr 26, 2003; Elcctric Winchcs RFI' SUM MAllY/itACi((;ROUNi): In November of 2001, staff applied for flmding lhrough thc King Counly Aris Commission Cultural Facilitics Grant Program. Thc City was successful in obtaining a grant to replace thc manual winches in thc Thcatrc with clcctric winchcs. Thc Clcctrica] system will operate much more cfficicntly. Needing only 60 seconds to raisc or lower a pipc 20 feet, thc electric winches will rcquirc fcwcr staff rcsourccs and provide greater flcxibility to arts organizations who usc thc Thcatrc. Initial cost Cstimatcs for this projcct wcrc obtained in 2001. Thc project was estimated to cost $24,000. Based on those numbers, thc County's funding history, and thc current budgct situation in King County, staff applied fora gran! lo cover approximatcly 50% of thc cost. Thc remaining balance of thc projcct's cost has bccn carricd forwm'd from thc 2002 Knutzcn Family Thcatrc budgct. Work is scheduled to occur December 18-19, 2003. CITY COUNCI !, COMMITTEE i/ECOMMENI)ATION: Motion to recommcnd to Council a "do pass" to authori×c staff to accept thc bid of $25,756.00 from Stagecraft Industries to replace the manual winches with an electrical winch system, and place this item bcforc City Council on October 21,2003 for approval. PROI'OSEI) MOTION: "1 movc approval of thc Electric Winches RFP as prcscntcd." CITY MANAGER API'IIOVAix _ ~ (BI£LOW TO BE COMPLETI£D B Y CITY CLERKS OFFICE) COUNCi I~ ACTION: [] AI~PROVEi) [] DENIEI) [] TAllI~EI)/I)EFEI{I{EI)/NO ACTION [] MOVED TO SECONI) i{EAi)IN(; (ordinances only) COUNCI 1~ BI i~1~ # I sT readiug Euactmenl reading ORI)INANCE # RESOIAJTION # Date: To: ~From: Via: Subject: CITY OF FEDERAL WAY PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM September 26, 2003 PRHSPS Council Committee Mary Faber, Recreation and Cultural Services SuperintendenL/(7 John Gamac~utzen Family Theatre Coordinator David Mo~e~Manager Electric Wincl~s RFP Background: In November of 2001, staff applied for funding through the King County Arts Commission Cultural Facilities Grant Program. The City was successful in obtaining a grant to replace the manual winches in the Theatre with electric winches. Currently manual winches are used to raise and lower the electric and hanging pipes on the stage. The manual winches require a lot of labor and resources to operate. It takes approximately 10 minutes to lower and 15 minutes to raise one pipe, making it a logistic impossibility to raise or lower a backdrop or set piece during a performance and increasing set-up and tech time before and after events. The electrical system will operate much more efficiently. Needing only 60 seconds to raise or lower a pipe 20 feet, the electric winches will require fewer staff resources and provide greater flexibility to arts organizations who use the Theatre. A Request for Proposals was sent to the following companies and the results are as follows: Stagecraft Industries Portland, OR Quote #: P0308-0768.MLH/JLL $25,756 PNTA Seattle, WA Returned a No bid Statement Reed Rigging, Inc. Returned a No bid Statement Chicago, IL J.R. Clancy Returned a No Bid Statement Syracuse, NY SRI Midwest Returned a No Bid Statement via Email Saint Louis, MO SECOA, INC. Returned a No Bid Statement Champlin, MN Initial cost estimates for this project were obtained in 2001. The project was estimated to cost $24,000. Based on those numbers, the County's funding history, and the current budget situation in King County, staff applied for a grant to cover approximately 50% of the cost. The remaining balance of the project's cost has been carried forward from the 2002 Knutzen Family Theatre budget. Work is scheduled to occur December 18-19, 2003. Committee Recommendation: Motion to recommend to Council a "do pass" to authorize staff to accept the bid of $25,756.00 from Stagecraft Industries to replace the manual winches with an electrical winch system, and place this item before City Council on October 21, 2003 for approval. k.~~VAL OF coMMITTEE REPORT: tee-Clair Commi~ee mem~-eer CITY OF FEDERAI WAY City Council AGENDA BII i SUBJLC 1: City Hall 2% for Art Opportunities CATEG OIlY: CONSENT [] ORI)INANCE RESOI,UTION [] PUBI,IC IIEARING CITY CO/JNCIiJ BUSINESS [~ ()TILER BUi)GET IMPACT: Amount Budgeted: $ Exl)cnditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: Committcc action form datcd Scptcmbcr 26, 2003; City l lall 2% for Art Opportunilics SUMMARY/BACKGROUNI): In Septcmbcr 2003, the Arts Commission mci with thc staff to identify thc 2% for Art budget for the City ltall project and visit thc site. Following thc site visit, a second meeting was hcld with thc Arts Commission, project Architect and staff to develop the conceptual framework for thc project and rank public art opportunities. This mecting was facilitatcd by a public art consultant from the Cultural Dcvelopmcnt Authority of King County (formcrly known as thc King County Arts Commission). Thc Commission completcd a list of opportunities and thcir rccommcndation for Council review. Thc 2% for Art allocation is dctcrmincd by thc amount of thc acccptcd construction contract(s). At this time thc estimated budget is $230,000.00. CITY COUNCIL COMMITTEE I{I~;COMMENI)ATION: Motion to rccommcnd to Council a "do pass" to acccpt thc cstimatcd project budgct of $230,000.00 and authori×c staff to dcvclop an artist prospcctus for thc Extcrior Entrance/Interior I~obby for an cstimatcd budget of $176,985.00 and placc this item bcfore City Council on October 21, 2003 for approval. i ROI ()Si~I) MOTION: I movc approval of thc City I lall 2Yo for Art Opportunities as (BI£LOW TO BE COMPLETED B Y CITY CLI£RKS OFFICI£) COUN Cii, A CTI ON: [] APPROVEI) [] DENIED [] TABI,EI)/DElq'EI;~I~,I~;i)/NO ACTION MOVEI) TO SECONI) REAl)lNG (ordinances only) COUNCIL BI I~!~ # 1s'r reading Enactment reading ORI)INANCE # RI~;SOI~UTION # REVISED - 0,5/10/2001 CITY OF FEDERAL WAY PARKS, RECREATION AND CULTURAl, SERVICES MEMORANDUM Date: To: From: Via: Subject: September 26, 2003 PRHSPS Council Committee Mary Faber, l~e~e_~ion and Cultural Services Superintendent David Mosel~9~l Mxanager City Hall 2% lo,Art C~pportunities Background: In September 2003, the Arts Commission met with the staff to identi fy the 2% for Art budget for the City Hall project and visit the site. Following the site visit, a second meeting was held with the Arts Commission, project Architect and staff to develop the conceptual framework for the project and rank public art opportunities. This meeting was facilitated by a public art consultant from the Cultural Development Authority of King County (formerly known as the King County Arts Commission). The Commission completed a list of opportunities and their recommendation for Council review, which is included for consideration below. I. Conceptual Framework The goal of the Federal Way Arts Commission is to incorporate art elements that reflect the community's values and diversity in a welcoming atmosphere. The art program will emphasize City Hall as home of the people's government. Themes and concepts City Hall home of the peoples' government Reflect our diversity and the united community of Federal Way Spirit of inclusion, a welcoming and inviting place for all Create and help establish the City's identity Inspire citizens to ask the nature of government and the roles of elected officials, the police and courts in their lives. II. Prioritized Art Opportunities The extent of the public artwork that will be created for any of the opportunities outlined will be based on schedule, funding and additional resource allocation from the construction budget. Typically, integrated artwork is a combination of art enhancement money coupled with a base construction budget. It is important to note because it means the extent of the integrated art will be reduced or may not be feasible to achieve in the context of construction budget in some areas. The Commission reviewed five areas that art opportunities would be appropriate. The opportunities listed below are ranked as first being most desired and presenting the greatest opportunity to achieve the conceptual goals described above. The description and elements for consideration in each opportunity represent a broad-brush stroke outlining the potential for integrating the work. 1. Exterior Entrance / Interior Lobby The sites focus is the entry "experience" of visitors and employees to City Hall. Opportunity includes enhancement of a small plaza at the conclusion of the pedestrian approach to the main entrance, consideration of the glass curtain wall, and the lobby entrance details. The artist will be asked to consider the entry "experience" and develop proposals for integrated artwork embracing the themes and concepts above. This site has both the opportunity to establish the exterior identity of City Hall and make a strong first impression upon entering the lobby. The site has great potential for reflecting civic character, distinguishing itself from the surrounding commercial real estate and providing a welcoming and inviting feeling. Art enhancement elements for consideration might be stained glass within the curtain wall, a canopy feature, lighting fixtures, seating, as well as sites for portable artworks and the community gallery space. The Commission noted that an allocation of additional construction dollars toward the lobby and plaza may permit flexibility for altering the existing interior features such as reception desk, location of the stairs, and the removal of the glass vestibule and the expansion of the exterior pavement area. /~_.. Southeast Plaza This site includes the pedestrian walkway from the Main Entrance to the southeast corner of the buildings exterior. This concept would not be possible without a significant additional allocation of construction dollars toward demolition of existing parking pavement, grading, concrete work, and landscaping features. This is a less grand and spacious area than the Terraced Plaza concept that is described below but just as capable of providing a public gathering place for ceremonies and celebrations as well a meeting and relaxing place for employees and visitors. Elements for consideration would be seating, planters, sculptures and flagpoles. City Hall is the home of the peoples' government and the character of this open space should convey that atmosphere and build on Federal Way's diversity and united community spirit. In either project, the selected artists or artist team will be expected to work collaboratively with the project architect, to develop an overall concept and design for the site. The artist chosen should have strong place-making skills, landscape architectural experience, previous experience working in an urban/civic context, and a proven track record with rigorous design and implementation schedules. 2 Other Projects Considered: x~hi Terraced Plaza From Main to 8th Avenue Entry s site extends the plaza entry concept in terraced landscaping to 8th Avenue. This concept would require a significant allocation of construction dollars toward demolition, grading and fill, concrete, and landscaping features. The extended plaza could provide a public gathering place with ample space for ceremonies and celebrations as well as provide a respite for employees, a lunch area and an exterior meeting place. Elements for consideration would be seating and details such as a water feature, sculptures or flag poles. at Court Entrance North Side of Building This site offers opportunity to improve the pedestrian experience from the parking lot to the Court entrance and a welcoming and inviting transition through the entrance doors and security systems. Artwork elements could reflect themes and concepts emphasizing the Court as a place where residents resolve disputes and seek justice. Small-scale hand-made integrated elements for consideration are paving treatments, path lighting, door handles, security glass, lighting fixtures, and portable works for the Court lobby area. /~ Security Fence s The security fence surroUnding the police parking area offers an opportunity to involve an artist. A security fence could be an attractive amenity rather than a typical chain link or wood slat variety. The fence has a dedicated budget and the project architect has offered to involve an artist in the design and fabrication. III. Project Budget The 2% for Art allocation is determined by the amount of the accepted construction contract(s). At this time the estimated budget is $230,000.00. The estimated breakdown is provided: 176,985.00 21,850.00 11,500.00 19,665.00 230,000.00 Art Budget Public Art Consultant On-Going Maintenance Fund Project Contingency Project Budget Committee Recommendation: Motion to recommend to Council a "do pass" to accept the estimated project budget of $230,000.00 and authorize staff to develop an artist prospectus for the Exterior Entrance/Interior Lobby for an estimated budget of $176,985.00 and place this item before City Council on October 21, 2003 for approval. ~mitte~ C~fi~ Com~itt~Memb~r ~- MEETING DATE: October 21, 2003 ITEM# CITY OF FEDERAL WAY City Council AGENDA BILL i SUBJECT: RESOLUTION TO CREATE A STEEL LAKE MANAGEMENT DISTRICT ADVISORY COMMITTEE CATEGORY: ~ CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: Memo to Land Use / Transportation Committee dated October 6, 2003, and Resolution creating a Steel Lake Management District Advisory Committee. SUMMARY/BACKGROUND: Resolution 03-384 and 03-386 included the establishment of an advisory committee for Steel Lake Management District Number One. On October 7, the City Council conducted the first reading of an ordinance creating the Steel Lake Management District. The second reading is scheduled for October 21st. The attached resolution would create the Steel Lake Management District Advisory Committee. The resolution includes a description of the creation, purpose, membership, meeting rules, staff support, and a sunset clause for the committee. The intent is to move this resolution forward to City Council at the same meeting as the second reading of the proposed ordinance creating the district. If the city council passes the ordinance creating the Lake Management Disthct and passes the resolution creating the advisory committee on October 21st, the advisory committee can be established by the January 1, 2004 start date of the district. CITY COUNCIL COMMITTEE RECOMMENDATION: At its October 6, 2003 meeting, the Land Use/Transportation Committee recommended placing the following item on the October 21, 2003, City Council agenda for consideration: · Passage of the attached resolution creating a Steel Lake Management District Advisory Committee. PROPOSED MOTION: "I move to adopt a resolution to create a Steel Lake Management District Advisory Committee." (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances on[y) COUNCIL BILL # 1sx reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 CITY' OF ~ Federal Way DATE: TO: FROM: VIA: SUBJECT: October 6, 2003 Eric Faison, Chair Land Use and Transportation Committee Leslie Ryan-Connelly, ESA/NPDES Coordinator'/~LL/ David H. M~~ager Resolution to Create Steel Lake Management District Number One Advisory Committee BACKGROUND In April 2003, residents representing 25 parcels adjacent to Steel Lake submitted a petition to the City Council requesting the city create a lake management district for Steel Lake. The residents' petition included a scope of activities, budget and rate structure for the proposed district. On May 6, 2003, the City Council passed Resolution Number 03-384 declaring its intent to form Lake Management District Number One for Steel Lake. On June 17, 2003, the city council conducted a public hearing for the purpose of accepting testimony in support of and in opposition to the creation of Lake Management District Number One. On July 1, 2003, the City Council passed Resolution Number 03-386 submitting the question of creating Lake Management District Number One to the property owners within the proposed district. There were 5,963 votes in favor of creating the lake management district and 170 votes against. In response to a simple majority of voters approving creation of a lake management district, a proposed ordinance creating Lake Management District Number One for Steel Lake was presented to the Land Use and Transportation Committee at its September 29, 2003 meeting. The first reading of the ordinance is scheduled for October 7th, 2003. The residents' petition proposed creation of an advisory committee to guide the operations of the Steel Lake Management District. The residents' petition requested formation of a committee to represent the interests of lake management district property owners. The proposed committee would develop an annual work plan and budget as well as track and review activities and expenditures. City staffwas requested to assist the committee with its activities and provide quarterly financial statements. Resolution 03-384 included the establishment of the advisory committee. Resolution 03-386 adopted all elements of the residents' proposal for an advisory committee. The attached resolution for LUTC consideration would create the Steel Lake Management District Advisory Committee. The resolution includes a description of the creation and purpose, membership, meeting rules, staff support, and a sunset clause for the committee. This resolution would move forward to City Council at the same meeting as the second reading of the proposed ordinance creating the district. If the city council passes the ordinance creating the lake management district on October 21 st and passes the resolution creating the advisory committee, the advisory committee can be established by the January 1, 2004 start date. RECOMMENDATION Staff recommends placing the following item on the October 21, 2003, City Council agenda for approval: · Passage of a resolution creating the Steel Lake Management District Advisory Committee. APPROV,AL OF COMMITTEE R.E-PO~RT!~ Eric Faison, Chair Dean McCol'gan, Member Michael P~T(~.]t~ember cc: Prqject File Day File k:\lutc\2003\lO06 rcs to create steel lake mgl dist committee.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, CREATING A LAKE MANAGEMENT DISTRICT ADVISORY COMMITTEE FOR STEEL LAKE AND ESTABLISHING THE DUTIES THEREOF. WHEREAS, Lake Management District Number One for Steel Lake was created for the purpose of generating revenue to provide ongoing aquatic vegetation management, community education, and other related projects; and WHEREAS, Resolution Number 03-384 states that, attendant to the creation of the Lake Management District is the creation of an Advisory Committee; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY RESOLVES AS FOLLOWS: Section 1. Creation and Purpose. There is created the Steel Lake Management District Advisory committee to represent the property owners of the Steel Lake Management District (LMD) Number One and advise the City Council. The purpose of the Advisory Committee is to represent the property owners of the LMD to the City Council and (1) each spring, discuss with the City the proposed annual work program consistent with Ordinance Number 03-XXX and the Steel Lake Integrated Aquatic Vegetation Management Plan (or its successors); (2) provide input and suggestions to the City regarding the implementation of the district's annual work program; (3) work with the City in the preparation of any educational materials related to Steel Lake and the LMD; (4) each winter, review and provide input to the City on the preparation of an annual report to the City of Federal Way City Council regarding progress on the LMD work program Res. # Page 1 and the health of the lake; and (5) suppOrt an annual public meeting to brief LMD members on the contents of the annual report and related LMD activities. Section 2. Membership. A_~. Qualifications. Members of the Advisory Committee shall be selected from individuals who own property or represent government bodies that own property within the LMD. Intent of the selection process shall be to proportionally represent the various property types identified in the district assessment role. No single family and vacant property owners shall serve longer than two consecutive terms. B. Number of Members and Terms. 1. Members. The Advisory Committee will be made up of seven members: four representing single family and vacant properties; one representing multi-family properties; one representing the Washington Department of Fish and Wildlife; and one representing the City of Federal Way. 2. Term. Each private property owner shall be appointed for a term of two (2) years. C._:. Appointment. Members of the Advisory Committee shall be appointed by the City of Federal Way City Council following an open recruitment process approved by the City Council. Appointments shall be confirmed by a majority vote of the City Council. Committee members shall be selected without respect to political affiliations and shall serve without compensation. Res. # Page 2 D__~. Removal. Members of the Committee may be removed by the City Manager, with the concurrence of the City Council, for neglect of duty, conflict of interest, malfeasance in office, or other just cause, or for unexcused absences for more than three (3) consecutive regular meetings. The decision of the City Council regarding membership on the Committee shall be final and there shall be no appeal. Members finding they are unable to attend regular meetings are expected to tender their resignation. E~. Vacancies. Vacancies occurring other than through the expiration of terms shall be filled for the un-expired term in the same manner as for appointments as provided in this ordinance. F__:. .'Conflicts of Interest. Members of the Committee shall fully comply with RCW 42.23, Code of Ethics for Municipal Officers; RCW 42.36, Appearance of Fairness; Federal Way Code of Ethics; and such niles and regulations as may be adopted by the City Council regulating the conduct of any person holding appointive office within the City. Section 3. Meeting Rules. A. Officers and Quorum. The Committee shall organize and elect from its members a Chair, who shall preside at all meetings of the Committee, and a Vice-Chair. A majority of the Committee members shall constitute a quorum for the transaction of business, and a majority vote of those present shall be necessary to carry any proposition. Res. # Page 3 B. Meeting Schedule. The Committee shall determine a regular meeting schedule (time, place and frequency), as necessary, but no less frequent than once every three (3) months. All meetings shall be open to the public. C. Procedures. The Committee shall adopt such rUles and procedures as are necessary for the conduct of its business and shall keep summary notes of its proceedings. The written notes shall be a public record. Section 4. Staff Support. Administrative staff support to the Advisory Committee shall be provided by the City of Federal Way Public Works Director or his/her designee. Section 5. Sunset. The Advisory Committee shall terminate at the same time as the Lake Management District authorization expires. Section 6. 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 7. Ratification. Any act consistent with the authority and prior to the effective date of the resolution is hereby ratified and affirmed. Section 8. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this day of ., 2003. CITY OF FEDERAL WAY MAYOR, JEANNE BURBIDGE Res. # Page 4 ATTEST: CITY CLERK, N. CHRISTINE GREEN, CMC APPROVED AS TO FORM: PATRICIA A. RICHARDSON, CITY ATTORNEY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO. Res. # Page 5 MEETING DATE: October 21, 2003 CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: CATEGORY: 51sT AVENUE SW STORM MAINLINE REPLACEMENT (CRESTVIEW SHORECLUB) 100% DESIGN APPROVAL & AUTHORIZATION TO BID. [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: Memo to Land Use / Transportation Committee dated October 6, 2003. SUMMARY/BACKGROUND: The storm system serving a portion of 51st Avenue SW, whose outfall terminates at Puget Sound, has a section of corrugated metal pipe (CMP) that has failed. SWM staff has contracted with one of our Small Works A&E firms to design the replacement of this failed pipe. The preferred design is to slip-line the existing pipe with a smaller diameter high- density polyethylene (HDPE) pipe. This project is either in or near regulated slopes and sensitive areas. The City of Federal Way's Stormwater System Operations & Maintenance Manual provides exempt status for most maintenance related work, though it does recommend consulting with Community Development (CD) for further guidance when projects occur in sensitive areas and regulated slopes. CD has reviewed the preliminary plans and the maintenance project as proposed does not require any further review or approval from CD. Staff anticipates bidding the project in October/November 2003 and awarding in November/December 2003. Construction will commence in mid-December 2003 with an estimated substantial completion date of January 31 st, 2004. CITY COUNCIL COMMITTEE RECOMMENDATION: At its October 6, 2003 meeting, the Land Use/Transportation Committee recommended placing the following item on the October 21, 2003, City Council agenda for consideration: 1. Approve 100% design for the 51st Avenue SW Storm Mainline Replacement Project; Authorize SWM staff to bid the project and return to the City Council for permission to award the project to the lowest responsive, responsible bidder based on available funding. PROPOSED MOTION: "I move to approve 100% design for the 51st Avenue SW Storm Mainline Replacement Project and authorize staff to bid the project and return to the City Council for permission to award the project to the lowest responsive, responsible bidder based on available funding." CITY MANAGER APPROVAL: ~, (BELOW TO BE cOMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1sT reading Enactment reading ORDINANCE # RESOLUTION # REVISED 05/10/2001 CITY OF Federal Way DATE: TO: FROM: VIA: SUBJECT: October 6, 2003 Eric Faison, Chair Land Use and Transportation Committee Paul A. Bucich, P.E., SWM Manager~ r~ ~1 I4 l~n~.o~r~avi~~~~ian~:~elst I_ .... Replacement (Crestview Shoreclub) 100% Design Approval & Authorization to bid. BACKGROUND The storm system serving a portion of 51st Avenue SW, whose outfall terminates at Puget Sound, has a section of corrugated metal pipe (CMP) that failed. Staff received authorization from Council to proceed to 100% design on September 2nd, 2003. Design of the replacement has been completed and is hereby presented for your consideration. The 100% Design Plans & Specs will be presented to the Committee at the October 6th meeting. PROJECT FUNDING: The project is funded as follows: PROJECT EXPENDITURES Design Engineers Construction Estimate 10% Construction Contingency Construction Management TOTAL PROJECT COSTS (Preferred Alternative 2) $23,400.00 $51,119.68 $ 5,111.97 in-house $79,631.65 FUNDING AVAILABLE The project will be funded by the 2003/2004 Surface Water Management small works CIP budget. Staff anticipates advertising for bids beginning in the last week in October 2003 and awarding in early December 2003. Construction will commence in mid-December 2003 with an estimated substantial completion date of January 31 st, 2004. Recommendation: Staff recommends placing the following items on the October 21st, 2003 City Council Consent Agenda: 09/25/2003 LUTC memo - 51 st Avenue SW Storm Mainline Replacement Project Page 2 Approve 100% design for the 51st Avenue SW Storm Mainline Replacement Project; Authorize Surface Water Management staff to bid the project and return to the City Council to award the project to the lowest responsive, responsible bidder based on available funding. PB:ss cc: Project File Day File kSswm\projects\crestview shoreclub\crestview lutc 100%b.doc MEETING DATE: October 21, 2003 ITEM# CITY OF FEDERAL WAY City Council AGENDA BILL SUBJECT: Delay of Annexation Resolutions CATEGORY: [] CONSENT [] ORDINANCE [] RESOLUTION [] PUBLIC HEARING [] CITY COUNCIL BUSINESS [] OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt.: $ Contingency Req'd: $ ATTACHMENTS: None SUMMARY/BACKGROUND: At the September 29, 2003 LUTC meeting, the LUTC made a motion to recommend to the full Council passing a resolution to start annexation proceedings for the Redondo area (as defined in the PAA Study) and the portion of the Parkway area west of Enchanted Parkway (also defined in the PAA Study). Since that time, staff have discovered that the legal requirements of the Resolution must contain a legal description of the area and the legal description has to be checked by King County. City staff have hired a surveyor to prepare the legal descriptions but were unable to obtain them in time for this Council Meeting. Once this information is obtained, this item will be scheduled for the next available council meeting. CITY COUNCIL COMMITTEE RECOMMENDATION: PROPOSED MOTION: No Council action required at this time. CITY MANAGER APPROVAL: e"- ~W~ (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: [] APPROVED [] DENIED [] TABLED/DEFERRED/NO ACTION [] MOVED TO SECOND READING (ordinances only) COUNCIL BILL # 1sx reading Enactment reading ORDINANCE # RESOLUTION # REVISED - 05/10/2001 MEETING DATE: October 21, 2003 ITEM# CITY OF FEDERAL WAY City Council AGENDA ITEM SUBJECT: Code Amendments Updating Chapter 9, Licenses and Business Registration CATEGORY: CONSENT ~X ORDINANCE BUSINESS HEARING FYI RESOLUTION STAFF REPORT PROCLAMATION STUDY SESSION OTHER BUDGET IMPACT: Amount Budgeted: $ Expenditure Amt: $ Contingency Reqd: $ ATTACHMENTS: Memo from Pat Richardson, City Attorney to the Finance, Economic Development and Regional Affairs Committee regarding the proposed amendment to Chapter 9, Licenses and Business Registration, and proposed Ordinance. SUMMARY/BACKGROUND: The Law Department is requesting adoption of the proposed ordinance to amend the City of Federal Way Code under Licenses and Business Registration under Chapter 9 as it relates to massage practitioners to reflect the current State Law, and to provide for consistent enforcement. The adoption of these amendments is in the best interest of the City of Federal Way, the Public Safety Department, Law Department, Municipal Court, and the Federal Way Citizens. CITY COUNCIL COMMITTEE RECOMMENDATION: At the September 23, 2003 meeting the Finance, Economic Development and Regional Affairs Committee recommended that the proposed amendment to the Federal Way City Code Chapter 9, Licenses and Business Registration be forwarded to the City Council for consideration at the October 21, 2003 City Council meeting. CITY MANAGER RECOMMENDATION: "I move the proposed ordinance to second reading and approval at the next regular meeting on November 4, 2003." APPROVED FOR INCLUSION IN COUNCIL PACKET:~]~') lht\ (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: APPROVED DENIED TABLED/DEFERRED/NO ACTION COUNCIL BILL # 1 st Reading Enactment Reading ORDINANCE # RESOLUTION # K:\agenditemk2003-chap 9 update-massage prac CITY OF FEDERAL WAY MEMORANDUM DATE: TO: FROM: VIA: SUBJECT: September 23, 2003 Finance, Economic Development and Regional Affairs Committee Patricia A. Richardson, City Attorney David H. Mosel anager Code Amendment Updating Chapter 9, Licenses and Business Registration. BackRround: Under RCW 35.21.692, the Washington State Legislature has preempted the City's ability to regulate message practitioners. The proposed amendment to Chapter 9, Article IX reflects the changes in state law. The modifications are necessary to ensure consistent enforcement of the laws. Recommendation: Staff recommends that the Finance, Economic Development, and Regional Affairs Committee approve the proposed amendments to Chapter 9, Article IX of the Federal Way City Code and forward to full Council for consideration at the October 21,2003, City Council meeting. [~PPROVAL BY COMMITTEE: ~ -st .ir--- - -'C%~. eeC/'hair t Col~.rnittee Member ~'~Commi~ee Member, II K:\agnditem\fedrac\massage practitioners.2003 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, AMENDING SECTIONS OF ARTICLE IX TO CHAPTER 9 OF THE FEDERAL WAY CITY CODE REGARDING MASSAGE PRACTITIONERS (AMENDING ORDINANCE NO. 95-229). DRAFT WHEREAS, regulation of massage businesses is necessary to prevent activities that are detrimental to the public health, safety, morals, and the general welfare of the citizens of the City of Federal Way, and WHEREAS, regulation of massage businesses is necessary to reduce significant criminal activity, including prostitution and breaches of the peace, that have historically and regularly occurred in the massage business, and, WHEREAS, the Washington State Board of Massage now regulates massage practitioners, WHEREAS, the State Legislature has determined under RCW 35.21.692 that a state licensed massage practitioner will not be subject to additional licensing requirements not currently imposed on similar health care providers, such as physical therapists or occupational therapists, and, WHEREAS, the Federal Way City Council has determined it is in the best interest of the public to revise the Federal Way City Code in regards to message practitioners for consistent enforcement of state laws, and, WHEREAS the Federal Way City Code needs to comply with the revisions to ORD # ., PAGE 1 the state law regarding massage practitioners, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Amendment. Chapter 9, Article IX, Section 9-472 of the Federal Way City Code is hereby amended as follows: 9-472 License for massage practitioners. It is unlawful for any person to perform a massage or represent himself or herself as a massage practitioner without ~;-o* °"""'""" .... ,;,.. .... ~; ....... ,4 being in possession of a current, valid Washington State massage practitioner's license. (Ord. No. 95-229, § 1, 3-21-95) SECTION 2. Amendment. Chapter 9, Article IX, Section 9-475 of the Federal Way City Code is hereby amended as follows: 9-475 License fees. (a) AmoUnt of fee. Applicants granted a license under this chapter shall pay to the city the following fees prior to the issuance of their license: Massage Business $15.00 per year Massage Manager $15.00 per year Annual Renewal Fee $15.00 per year Massaqe Practitioner (not employee of registered massage business): general business ORD # , PAGE 2 license requirements of Chapter 9, Article II apply. (b) Late penalty. A late penaltY shall be charged on all applications for renewal of a license received later than seven working days after the expiration date of such license. The amount of such penalty is fixed as follows: Days Past Due Additional Percentage of License Fees 8 - 30 25% 31 - 60 50% 61 and over 100% (Ord. No. 95-229, § 1, 3-21-95) SECTION 3. Amendment. Chapter 9, Article IX, Section 9-476 of the Federal Way City Code is hereby amended as follows: 9-476 License applications. (a) Massage business. All applications for a massage business license or license renewal shall be submitted in the name of the person or entity proposing to conduct such massage business on the business premises, shall be signed by such person or his or her legally authorized agent, and notarized or certified as true under penalty of perjury. All applications shall be submitted on a form supplied by the city clerk, which shall require the following information: (1) The name, residence address, residence telephone number, date and place of birth, driver's license number, and Social Security number of the applicant if the applicant is ORD # ., PAGE 3 an individual or tax identification number if the applicant is a corporation or other entity; (2) The business name, address and telephone number of the establishment; (3) The names, addresses, telephone numbers and social security numbers of any partners, corporate officers, or shareholders who own 10 percent or more of the business, or other persons who have a substantial interest or management responsibilities in connection with the business, specifying the interest or management responsibility of each. For the purpose of this subsection "substantial interest" shall mean ownership of 10 percent or more of the business, or any other kind of contribution to the business of the same or greater size; (4) The name of the landlord or property owner of the property on Which the business is situated. ORD # , PAGE 4 - ~nli~nf~ nh~f~nr~nh ~n4 ~f~ of hiffh. ,.,;thin 4A ~ ..... ¢ ........k .k .... or 3ddition Massage manager. All applications for a massage manager's license or license ronowal shall bo signori by tho applicant and notadzod or co~ifiod to bo truo undor ponalty of perju~. All applications shall be submi~od on a form supplied by the city clork, which shall roquiro, at a minimum, the followin~ information: lbo applicant's name, residence address, residence telephone number, date and ORD # , PAGE 5 place of birth, driver's license number and social security number; (2) A letter, dated no more than 30 days prior to the date of the submission of the application, from the owner of the business indicating intent to employ the applicant on a specified date; (3) Written proof that the applicant is 18 years of age or older as provided for in subsection (b)(3) of this section; (4) The mailing address and street address of all places within the city of Federal Way at which the massage manager will provide services. The massage manager shall notify the City clerk, in writing, of any changes in, or additions to, the location of such services within 14 days of any such change or addition. (~_c) Background checks. All applications submitted pursuant to this chapter will be submitted to a background check in accordance with the procedures of the Federal Way police department. (Ord. No. 95-229, § 1, 3-21-95) SECTION 4. Amendment. Chapter 9, Article IX, Section 9-477 of the Federal Way City Code is hereby amended as follows: 9-477 Standards for denial of application for license. (a) Massage business license. The city clerk may deny any massage business license request if he or she determines that the applicant has: (1) Made any material misstatement in the application for a license; (2) Proposed a place of business or operates a business which fails to comply with all applicable requirements of this Code including without limitation the zoning, building, ORD # , PAGE 6 health and fire codes and all other applicable local, state, or federal laws, rules or regulations; (3) Had any convictions which have a direct connection with the licensed activity including, but not limited to, theft, prostitution, promotion or permitting prostitution, sexual offenses, consumer fraud, massage practitioner or massage manager violation, or obscenity within five years prior to the date of such application; or (4) Had a massage business license denied, revoked or suspended by the city, or any other jurisdiction within five years prior to the date of such application. ORD # ., PAGE 7 i i~lg I ~g I1~11 g~l~ll I~ ~i i igl ~iL~i ilgl i~I ill i1~1 i iig~l ig~ ~1 i~1 i~ (~) Massage manager license. The city clerk may deny any massage manager license applied for under ~he provisions of this chapter if the city clerk de~ermines ~ha~ ~he applican~ has: (1) Made any material miss~a~emen~ in the application for a license; or (2) Had any convictions which have a direc~ c6nnection wi~h ~he licensed activity including, bu~ no~ limited to, ~he~, prostitution, sexual o~ense, consumer fraud, massage practitioner or manager violation, or obscenity, within five years prior ~o ~he da~e of application; (3) Had a massage practitioner or massage m~nager license denied, revoked or suspended by ~he city or any other jurisdiction within five years prior ~o ~he da~e of application; or (4) Had a Washington State massage practitioner's license suspended or revoked which had been issued pursuan~ to Chapter ~ 8.108 RCW, as now existing or herea~er amended or had any professional license revoked which had been issued pursuan~ ~o RCW Title 18, as now existing or herea~er amended, which license authorized pe~orming massage tre~men~s. (~) Effec~ of license denial. If any applican~ has a license denied based upon a conviction classified as a felony, or any other nonfelony convictions, pursuan~ ~o ~his ORD # ., PAGE 8 section, a license shall not be granted within five years from the date of such denial. If any applicant has a license denied for any other reason, a license shall not be granted within three years from thedate of such denial. (Ord. No. 95-229, § 1, 3-21-95) SECTION 5. Amendment. Chapter 9, Article IX, Section 9-478 of the Federal Way City Code is hereby amended as follows: 9-478 Standards for suspension or revocation of license. (a) Massage business license. The city clerk may revoke or suspend a massage business license if he or she determines that the licensee has: (1) Failed to comply with FWCC 9-501,9-502 or any of the other requirements of this chapter; or (2) Failed to comply with the applicable building, health, fire and/or zoning code provisions or with any other applicable federal, state or local laws, rules or regulations; or (3) With knowledge employed persons who, within a period of the preceding five years have been convicted of prostitution or consumer fraud stemming from activities conducted on the licensed premises, or who have been arrested for such offenses and which lead to such convictions; (4) Had any convictions which have a direct connection with the licensed activity, including but not limited to, consumer fraud, theft, controlled substances, prostitution, permitting or promoting prostitution, sexual offenses, or obscenity; or (5) Failed to comply with or done anything which constitutes a basis for denying a ORD # , PAGE 9 license application. (b) Notice of violation. If the city clerk, the building official, or his or her agent determines during an inspection that the condition of any massage business needs correction, a written notice of violation shall be issued to the supervisor, manager, owner, or person in charge specifying such violations. Those same violations shall be remedied within 48 hours unless a later date is determined by the city clerk. Failure to comply with any written notice of violation to make corrections may result in suspension or revocation of the massage business license. (~) Massage manager license. The city clerk may suspend or revoke any massage mana~or liconso if he or sho dotormines that tho liconsoo has: (~) Failed to comply with any of the operatin~ requiroments set fo~h in FWCC ~-50~ and 0-502 or failod to comply with any of the othor requiromonts of this chaptor; or ORD # , PAGE 10 (2) Had any convictions which have a direct connection with the licensed activity including, but not limited to, theft, prostitution, consumer fraud, obscenity, or sexual offenses; or (3),Failed to comply with or done anything which constitutes a basis for denying a license. (ed) Effect of license revocation. If any applicant under this chapter has his or her license revoked, a license shall not be granted under this chapter for a period of at least five years from the date of such revocation. (f_e) Duration of license suspension. The city clerk may suspend a license for no more than six months. (Ord. No. 95-229, § 1, 3-21-95) SECTION 6. Amendment. Chapter 9, Article IX, Section 9-479 of the Federal Way City Code is hereby amended as follows: 9-479 Transfer of licenses and change of location. (a) Massage business. No massage business license issued under this chapter shall be transferable from one person or entity to another person or entity. Upon the sale or transfer of an interest greater than 50 percent in a massage business, a license shall become null and void. A new application shall be made by any person desiring to operate or maintain the establishment and shall include a release of interest statement from the previous licensee and a signed lease or rental agreement for the establishment. ORD # , PAGE 11 SECTION 7. Amendment. Chapter 9, Article IX, Section 9-502 of the Federal Way City Code is hereby amended as follows: 9-502 Standards of conduct/operation. (a) Owner/manager requirements. The following standards of conduct and operation shall be adhered to by the owner, proprietor, manager, or person in charge of any massage business: (1) Any person who is employed to give a massage must be at least 18 years of age and be validly licensed as a massage practitioner pursuant to this chapter and state law. (2) At all times during the hours a massage business is open for business, and/or during the presence of patrons, at least one validly licensed massage practitioner must be on the premises. ORD # , PAGE 12 (3) Any person who is employed by a massage business must present documentation that he or she has attained the age of 18 years when an inspection pursuant to this chapter is conducted. Proper documentation shall be as described in FWCC 9- 476(b)(3). (4) Provide that all doors in such premises, excluding doors in the office and storage rooms, unless such doors provide access to service areas, are so equipped that they may not be fastened shut so as to prevent reasonable access by such authorities who announce their authority to enter prior to inspection. (b) All licenses. The following standards of conduct and operation shall be adhered to by all licensees: (1) All licensees shall comply with all applicable federal, state and local laws, including a~l safety and sanitation requirements and the city's building, fire and zoning codes; (2) All licensees shall allow any police officer, the city manager or his or her designee, or a representative from the Seattle-King County health department or the Federal Way fire department entry to the premises during the hours the massage business is open for business, upon presentation of proper identification, for purposes of inspecting the premises; (3) Maintain business receipts showing the date of service(s) given, the type of service(s) rendered .and the name and city license number of the employee rendering the service(s). These business receipts shall be retained for a period of three years after the date of the service(s), and shall be open to inspection by the city clerk and the ORD # ., PAGE 13 I~ederal Way police department; (/1\ In ~h~ ~ ~ moe~n~ ~r~f;f;~n~ro I;~n~ ,,n~r fh~ ~r~;o;~n~ ~F fh;~ ~;~1~ (~) Post in a prominent place a list of all se~ices offered with a brief description of what the se~ice entails along with the costs of such se~ice(s). All business transactions with the customers must be conducted in accordance with the said posted list; (6~) Not distribute or consume any alcoholic beverages and/or controlled substances on licensed premises; and (7~) Not allow any unlicensed massage. (c) Minors. It shall be unla~ul for the owner, manager, or any massage practitioner, or any employee or agent to admit anyone under the age of 18 years of age and permit them to remain in or about such premises, unless such person is accompanied by or presents the wri~en consent of his or her parent or legal guardian. (d) Prostitution. It shall be unla~ul for any owner, manager, massage practitioner, or any employee or agent to knowingly harbor, admit, receive or permit to be or remain in or about such premises any prostitute or any person under the influence of any narcotic or dangerous drug or to pefiorm or allow to be pefiormed any act, massage or manipulation in which contact is made with another's genital areas either by hand, body or by any mechanical device or object, whether it is covered or uncovered, clothed or unclothed, in whole or in pa~. ORD # , PAGE 14 (e) Clothing required. It shall be unlawful for any owner, manager, massage practitioner, or any employee or agent to disrobe or be partially disrobed in the presence of another while in any facility defined in this chapter. (f) Supervision - Inspection. The owner or manager shall have the Premises supervised at all times when open for business. Rooms and stalls used for the purpose of massage shall be constructed in such a manner as to permit inspection. (Ord. No. 95-229, § 1, 3- 21-95) SECTION 8. Sev,erability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the validity of its application to other persons or circumstances. SECTION 9. Ratification. Any and all acts consistent with the authority and prior to the effective date of this ordinance are hereby ratified and affirmed. SECTION 10. Effective Date. This ordinance shall take effect and be in force five days from its passage, approval and publication, as provided by law. PASSED by the City Council of the City of Federal Way this ,2003. CITY OF FEDERAL WAY day of ORD # ., PAGE 15 MAYOR, JEANNE BURBIDGE 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: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. ORD # , PAGE 16