HomeMy WebLinkAbout09-16-24 Council Meeting
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CALL TO ORDER
Mayor Don Vanney
PLEDGE OF ALLEGIANCE
ROLL CALL
Mayor Don Vanney – Wendy
APPROVAL OF THE AGENDA
Mayor Pro Tem Michele Blythe
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS
PROCLAMATIONS
Hispanic Heritage Month ATTACHMENT A
Councilmember Yvonne Gallardo-Van Ornam
PUBLIC COMMENT
For members of the public who wish to speak to the Council about any matter not on the Public Hearing
portion of the meeting. Please limit remarks to three minutes.
CONSENT AGENDA
Mayor Pro Tem Michele Blythe
1. Minutes of the July 29 and September 9, 2024 Council meetings ATTACHMENT B
2. Accounts Payable ATTACHMENT C
3. Sole Source Resolution for Rotork Controls ATTACHMENT D
4. Snohomish County Utility Franchise Agreement ATTACHMENT E
PUBLIC HEARING
NEW BUSINESS
1. Airport Property Appraisal ATTACHMENT F
Staff Presentation: Monroe Whitman
Council Liaison: Yvonne Gallardo-Van Ornam
2. Perimeter Fencing Improvement Project Change Order and Amendment ATTACHMENT G
Staff Presentation: Monroe Whitman
Council Liaison: Yvonne Gallardo-Van Ornam
Arlington City Council Meeting
Monday, September 16, 2024 at 6:00 pm
City Council Chambers – 110 E 3rd Street
SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the
ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodations are required.
3. SCJ Contract Amendment #3 for the 211th Place Project ATTACHMENT H
Staff Presentation: Jim Kelly
Council Liaison: Debora Nelson
COMMENTS FROM COUNCILMEMBERS
INFORMATION/ADMINISTRATOR & STAFF REPORTS
MAYOR’S REPORT
EXECUTIVE SESSION
RECONVENE
ADJOURNMENT
Mayor Pro Tem Michele Blythe / Mayor Don Vanney
Proclamation Whereas, each year, the United States observes National Hispanic Heritage Month by celebrating the culture, heritage, and countless contributions of those whose ancestors were indigenous to North America as well as those who came from Spain, Mexico, the Caribbean, Central America, and South America; and, Whereas, what began in 1968 as Hispanic Heritage Week under President Johnson and was expanded by President Reagan in 1988 to cover a 30-day period starting on September 15 and ending on October 15; and, Whereas, this year’s theme, “Pioneers of Change: Shaping the Future Together” invites us to celebrate Hispanic Heritage by recognizing the signi�icant strides of Hispanics in the economic, political, and social growth of the U.S. It encourages us to re�lect on all the contributions Hispanics have made in the past and will continue to make in the future; and, Whereas, many Hispanics serve as government employees/public servants, civil rights leaders and community organizers, politicians, soldiers, educators, journalists, �irst responders, pioneers in art and science, healthcare professionals, athletes, inventors, entertainers, and so much more; and, Whereas, Hispanics continue their rich history of signi�icant and diverse contributions to the cultural, educational, economic, and political vitality. Now, Therefore, I, Don E. Vanney, Mayor of Arlington, do hereby proclaim September 15 to October 15, 2024, as “Hispanic Heritage Month” and encourage all residents of Arlington to honor the rich diversity of the Hispanic community and celebrate the many ways they contribute to our nation and society. _____________________________________ ________________________ Don E. Vanney, Mayor Dated
DRAFT
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Council Chambers 110 East 3rd Street Monday, July 29, 2024
Councilmembers Present: Heather Logan, Rob Toyer, Debora Nelson, Michele Blythe, Jan Schuette, and Leisha Nobach.
Council Members Absent: Yvonne Gallardo-Van Ornam, excused.
Staff Present: Mayor Don Vanney, Paul Ellis, Kristin Garcia, Amy Rusko, City Attorney Steve Peiffle, Chelsea Brewer, and Julie Petersen.
Also Known to be Present: Kathy Vanney, Sid Logan, Randy Nobach, Nathan Senff, Tim Abrahamson, Ellis Nobach, and others. Mayor Don Vanney called the meeting to order at 6:00 p.m., and the Pledge of Allegiance and roll call followed.
APPROVAL OF THE AGENDA Mayor Pro Tem Michele Blythe moved to approve the agenda as presented. Councilmember Rob Toyer seconded the motion, which passed unanimously.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None.
PROCLAMATIONS None.
PUBLIC COMMENT None.
CONSENT AGENDA Mayor Pro Tem Michele Blythe moved, and Councilmember Debora Nelson seconded the motion to approve the Consent Agenda that was unanimously carried: 1. Minutes of the July 15 and July 22, 2024 Council meetings and July 16, 2024 Special Meeting 2. Construction Agreement with BNSF for Prairie Creek Bridge Project 3. Proposal from Rock Project Management for Construction Management Services 4. Ordinance Amending Arlington Municipal Code Chapter 20.16 5. Ordinance Amending Arlington Municipal Code Chapter 20.40 6. Ordinance Amending Arlington Municipal Code Chapter 20.44 7. Ordinance Adding Chapter 20.114 to the Arlington Municipal Code
Minutes of the Arlington
City Council Special Meeting
Minutes of the City of Arlington City Council Meeting July 29, 2024
Page 2 of 3
PUBLIC HEARING None.
NEW BUSINESS
Interlocal Agreement with Department of Emergency Management City Administrator Paul Ellis requested Council approve the Interlocal Agreement for Emergency Management Services. The City currently has an interlocal agreement with Snohomish County Department of Emergency Management that expires on December 31, 2024. The proposed agreement for council consideration takes effect on January 1, 2025, and is in effect for two years with the option of extending the agreement for an additional two terms of two years each. The Department of Emergency Management provides emergency management coordination on large scale events in addition to training for city staff. Discussion followed with Mr. Ellis answering Council questions. Mayor Pro Tem Michele Blythe moved, and Councilmember Heather Logan seconded the motion to approve the interlocal agreement with Snohomish County Department of Emergency Management and authorizes the Mayor to sign the agreement. The motion passed unanimously.
2025 Lodging Tax Grant Awards Finance Director Kristin Garcia requested Council approve the 2025 Lodging Tax distribution. 18 grant applications were received totaling $266,070. The total amount that could be awarded was $175,000. The committee focused on the following priorities in addition to using the scoring matrix; new projects, off season events and events that had other sources of funding (like admission fees or sponsorships.) Discussion followed with Ms. Garcia answering council questions. Councilmember Debora Nelson moved, and Councilmember Heather Logan seconded the motion to approve the 2025 funding distribution as recommended by the lodging tax advisory committee. The motion passed unanimously.
Low Bid Award for 211th Place Improvement Project Public Works Director Jim Kelley requested Council approve the Low Bid Award for the 211th Place Rehabilitation Project. The 211th Place is a critical link in Arlington’s transportation network serving as an urban minor collector connecting 67th Ave to a newly constructed roundabout at SR-530. 211th Place is also rated as a T3 freight corridor carrying 300,000 to 4 million tons of freight per year. This critical roadway is in poor/failing condition and in need of rehabilitation to continue reliable service. Arlington applied for and received a $2.3 million grant from the Transportation Improvement Board (TIB) to upgrade this roadway to Arlington’s current “Complete Streets” standards. The project was advertised for bid, with bids due on July 18. Six (6) bids were received with Reece Construction as the low bid. Discussion followed with Mr. Kelly answered Council questions.
Minutes of the City of Arlington City Council Meeting July 29, 2024
Page 3 of 3
Councilmember Jan Schuette moved, and Councilmember Debora Nelson seconded the motion to award the 211th Place Rehabilitation Project to Reece Construction in the amount of $3,359,610.00 and authorized the Mayor to sign the Construction Contract, subject to final review by the City Attorney.
Grant Application to Department of Commerce Community and Economic Development Planning Manager Amy Rusko requested Council approve the resolution for the Department of Commerce grant application. Community and Economic Development currently utilizes iWorQ permitting software. While this software has been adequate for many years, it does not have the capability to track the new required Department of Commerce permit timelines. Financial integration has become more difficult, and the city requirements and expectations are outgrowing the software. Staff has already met with Civic Plus and was already planning for this conversion over the next year. Discussion followed with Ms. Rusko answering Council questions.
Councilmember Rob Toyer moved, and Councilmember Heather Logan seconded the motion to approve the Department of Commerce grant application related to action items within 2SSB 5290 and authorized the Mayor to sign. The motion passed unanimously.
COMMENTS FROM COUNCILMEMBERS None.
ADMINISTRATOR & STAFF REPORTS City Administrator Paul Ellis presented drone pictures of Reece Constructions efforts to mitigate the complaints from neighbors regarding the dust and hog fuel piles on 204th Street/Cemetery Road where they are 2/3 complete to final grade of elevating the airport property with land fill and seeding. Reece Construction has purchased a second watering truck and has provided a watering schedule. Mr. Ellis will provide Council with a copy of a letter that Andy Reece wrote to the City. A copy of the watering schedule and the pictures from Reece Construction will be mailed to Arlington citizen Mr. John Knisley.
MAYOR’S REPORT None.
EXECUTIVE SESSION None.
ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 6:29 p.m. _________________________________________ Don E. Vanney, Mayor
DRAFT
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Council Chambers 110 East 3rd Street Monday, September 9, 2024
Councilmembers Present: Rob Toyer, Debora Nelson, Michele Blythe, Leisha Nobach, Yvonne Gallardo-Van Ornam, and Jan Schuette.
Council Members Absent: Heather Logan, excused.
Staff Present: Mayor Don Vanney, Paul Ellis, Monroe Whitman, Jim Kelly, Sheri Amundson, Mike Gilbert, Monty Wallace, Mike Adrian, Mark Pennington, Abigail Black, Mark Wilde, Dustin Bartlett, Luke Adkins, Mike McQuoid, Chandler Dean, Chelsea Brewer, City Attorney Steve Peiffle, and Julie Petersen.
Also Known to be Present: Kathy Vanney, Randy Nobach, Nathan Senff, Drew Bono, Dave Kraski, John Cermak, Jay Lindberg, Tim Abrahamson, Monte Wallace’s family, John Knisley and his girlfriend.
Mayor Don Vanney called the meeting to order at 6:00 pm, and the Pledge of Allegiance and roll call followed.
APPROVAL OF THE AGENDA Mayor Pro Tem Michele Blythe moved to approve the agenda as presented. Councilmember Debora Nelson seconded the motion, which passed with a unanimous vote.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None.
OATHS OF OFFICE Commander Mike Gilbert and City Attorney Steve Peiffle administered the oaths of office to Officers Mike Adrian and Monte Wallace.
WORKSHOP ITEMS – NO ACTION WAS TAKEN
Airport Property Appraisal Airport Operations Manager Monroe Whitman reported that this item details the appraisal process required by the FAA for federally obligated airports. Staff is requesting City Council approve the new lease rates for the next five-year period. The appraisal was completed in April by Fred C. Strickland and Associates, LLC. Mr. Whitman explained that Airports who receive Airport Improvement Program grant monies are required to charge Fair Market Value for the properties they control. The FAA requires these property appraisals to be conducted at a minimum of every five years. Discussion followed with Mr. Whitman answering Council questions.
Minutes of the Arlington
City Council Workshop
Minutes of the City of Arlington City Council Workshop Monday, September 9, 2024
Page 2 of 3
Perimeter Fencing Improvement Project Change Order and Amendment Airport Operations Manager Monroe Whitman reviewed the details of the existing three-wire perimeter fence and explained it does not provide a secure airport perimeter and will be replaced with standard 8-foot chain-link fence with 3-strand barbed wire. The proposed fencing improvements will also reduce potential wildlife hazards on airport property per FAA-approved Wildlife Hazard Management Plan. The perimeter fence is critical for compliance with 14 CFR 139.335 Public Protection and 139.337 Wildlife Hazard Management. The City Council authorized the Mayor to sign a professional services agreement with DOWL in the amount of $62,634.00 for design services at their April 1, 2024 meeting. The City Council authorized the Mayor to sign a contract with Dallum Build Company in the amount of $345,803.34 at their July 1, 2024 meeting. The City Council authorized the Mayor to sign a professional services agreement with DOWL in the amount of $99,560.00 for construction administration services at their July 1, 2024 meeting. Discussion followed with Mr. Whitman answering Council questions.
Sole Source Resolution for Rotork Blowers Public Works Director Jim Kelly reviewed the City of Arlington’s Wastewater system and Potable Water system which was designed and constructed with many Rotork Controls products. Rotork Controls products can only be purchased from an authorized Rotork representative. Beaver Equipment is the only vendor in the Pacific Northwest and Washington state; as such, staff is requesting a three-year sole source resolution allowing the City to contract with Beaver Equipment LLC for purchase of Rotork Controls equipment, products, system startup services, commissioning services, and training services that may be required.
Snohomish County Utility Franchise Agreement Public Works Director Jim Kelly reviewed staff that Council approve ordinance #24-046 passed by Snohomish County granting a nonexclusive franchise authorizing limited use of the public road rights-of-way in portions of Snohomish County, to the City of Arlington.
SCJ Contract Amendment #3 for the 211th Place Project Public Works Director Jim Kelly reviewed the grant from the Transportation Improvement Board for the design and construction improvements to 211th Place from SR530 to 67th Ave to Arlington’s current “Complete Streets” standards. The City contracted with SCJ Alliance for the project design work. Amendment #3 amends the scope of work for additional final design changes that include utility adjustments, retaining wall changes, ROW issues, additional design and geotechnical coordination for a stormwater pond, and establishment of reserve funds to address questions during construction. Discussion followed with Mr. Kelly answering Council questions.
Condemnation Proceedings for the 211th Place Improvement Project Public Works Director Jim Kelly requested that this item be postponed because there are conversations with a possible resolution.
Minutes of the City of Arlington City Council Workshop Monday, September 9, 2024
Page 3 of 3
Police Quarterly Report Commander Mike Gilbert provided the Quarterly 2024 Police Report. Discussion followed with Commander Gilbert answering Council questions.
North County Regional Fire Authority (NCRFA)Quarterly Report NCRFA Deputy Chief of Operations Dave Kraski provided the Quarterly 2023 fire report. Discussion followed with Deputy Chief Kraski answering Council questions.
ADMINISTRATOR AND STAFF REPORTS None.
MAYOR’S REPORT Mayor Don Vanney thanked those who helped with the graffiti cleanup.
COMMENTS FROM COUNCILMEMBERS Councilmember Debora Nelson asked to add the Stilly Valley Genealogy Society facility costs as an item for the fall council retreat. Paul said he would create a memo with some historical details of the Stilly Valley Genealogy Society for the councilmembers. Councilmember Jan Schutte thanked Mayor Don Vanney for attending the Transportation meeting in Lynnwood. Councilmember Yvonne Gallardo-Van Ornam announced that the Hispanic Heritage Month celebration will be on September 28 at 10 a.m. at Legion Park.
COUNCILMEMBER REPORTS None.
PUBLIC COMMENT Jay Lindberg, Arlington, provided comments. John Kinsley, Arlington, provided comments.
REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING Councilmembers discussed and agreed to place the following agenda items on the consent agenda for the September 16, 2024 Council meeting: 3. Sole Source Resolution for Rotork Blowers 4. Snohomish County Utility Franchise Agreement
EXECUTIVE SESSION None.
ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 6:51 p.m. _________________________________________ Don E. Vanney, Mayor
City of Arlington Council Agenda Bill CA #2 Attachment September 16, 2024 Accounts Payable Claims Approval
Claims Approval
Finance; Kristin Garcia, Director 360-403-3431 EXPENDITURES REQUESTED: 0 BUDGET CATEGORY: N/A BUDGETED AMOUNT: LEGAL REVIEW: DESCRIPTION:
ALTERNATIVES:
City of Arlington
September 16th, 2024 Council Meeting
Claims Certification:
We, the undersigned City Council of the City of Arlington, Washington do hereby certify that
the merchandise or services hereinafter specified have been received and that:
Approval of EFT Payments and Claim Checks:
• #111211 through #111323 dated July 2nd through July 15th for $715,060.02
• #111324 through #111448 dated July 16th through August 5th for $1,269,975.02
• #111449 through #111546 dated August 6th through August 19th for $666,946.21
• #111547 through #111642, Petty Cash Check #2037 dated August 20th through
September 3rd for $963,681.74
Approval of Payroll EFT Payments and Checks:
• #30383 through #30388 dated July 1st, 2024 through July 31st, 2024 in the amount of
$1,601,153.20
• #30389 through #30394 dated August 1st, 2024 through August 31st, 2024 in the amount
of $1,504,112.66
City of Arlington Council Agenda Bill CA #3 Attachment September 16, 2024 Sole Source Resolution for the procurement, startup, commissioning, and training of Rotork Controls
Public Works; Jim Kelly, Director EXPENDITURES REQUESTED: N/A BUDGET CATEGORY: N/A BUDGETED AMOUNT: $100,000 (2024 Budget) LEGAL REVIEW: DESCRIPTION: Sole source resolution recognizing Beaver Equipment LLC as the authorized manufacturer’s representative for Rotork products in Washington state.
The City of Arlington’s Wastewater system and Potable Water system was designed and constructed with many Rotork Controls products. Rotork Controls products can only be purchased from an authorized Rotork representative. Beaver Equipment is the only vendor in the Pacific Northwest and Washington state; as such, staff is requesting a three-year sole source resolution allowing the City to contract with Beaver Equipment LLC for purchase of Rotork Controls equipment, products, system startup services, commissioning services, and training services that may be required. ALTERNATIVES: Remand to staff for further information.
I move to recognize Beaver Equipment, LLC as the authorized manufacturer’s representative for Rotork Controls in Washington state and approve a Sole Source Resolution allowing the city to procure Rotork Controls services and products directly from Beaver Equipment, LLC.
RESOLUTION NO. 2024-XXX
A RESOLUTION OF THE CITY OF ARLINGTON TO WAIVE BIDDING REQUIREMENTS FOR THE
PURCHASE, STARTUP, COMMISSIONING AND TRAINING OF ROTORK CONTROLS PRODUCTS FOR
USE BY THE CITY OF ARLINGTON UTILITY DEPARTMENT
WHEREAS, the City of Arlington Utility Department processes water and treats
wastewater for all of its customers; and
WHEREAS, to maintain the consistency of parts, ensure the continued operation of the
utilities, and avoid the cost associated with repairs to the system that may occur using non
genuine original Rotork controls, a supplier of Rotork parts is required; and
WHEREAS, Beaver Equipment is the sole source representative authorized to supply
Rotork Controls; and
WHEREAS, RCW 35.23.352(9) permits the waiving of bidding requirements for the
purchase of materials which are clearly and legitimately limited to a single source of supply or
services which are subject to special market conditions;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arlington, as
follows:
Section 1: The City Council of the City of Arlington finds that replacing controls or
replacement parts with Rotork Controls products and services clearly limits the City of
Arlington to a single source of supply, justifying the waiver of competitive bidding
requirements.
Section 2: The City Council of the City of Arlington hereby waives the bidding requirements
for the purchase of Rotork Controls products and services for use by the City of Arlington
Utility Department and authorizes sole source purchasing from Beaver Equipment LLC.
Section 3: This resolution will be effective for three (3) years from the date of adoption.
APPROVED by the Mayor and City Council of the City of Arlington this 16th day of September
2024.
CITY OF ARLINGTON
___________________________________
Don E. Vanney, Mayor
ATTEST:
_____________________________
Wendy Van Der Meersche, City Clerk
APPROVED AS TO FORM:
_____________________________
Steven J. Peiffle, City Attorney
Rotork Controls, Inc.
2180 S. McDowell Blvd., Suite B
Petaluma, California
94954
Tel: +1 707 769 4880
Fax: +1 866 269 9577
www.rotork.com
info@rotork.com
June 6, 2024
Subject: Rotork Controls Authorized Sole Representation Letter
To Whom It May Concern:
The purpose of this letter is to confirm that Beaver Equipment, LLC located in Woodinville, WA is Rotork
Controls’ sole authorized manufacturer’s representative in the Pacific Northwest; Alaska, Idaho, Oregon,
and Washington in the water and power (Municipal) market.
As our sole authorized representative, Beaver Equipment is appointed to solicit sales and service of
electric, pneumatic, electro-hydraulic and other types of Rotork valve actuators, process control/damper
drives and Rotork Pakscan products. In addition, Beaver Equipment is the only authorized company in the
Pacific Northwest in the municipal market to provide startup, commisioning and training services for Rotork.
Please feel free to contact me with any questions.
Thank you,
Andy Fallon
Rotork Controls
Sales Manager
Office (707) 769-4880
Cell (801) 696.4226
E-mail: Andy.Fallon@rotork.com
City of Arlington Council Agenda Bill CA #4 Attachment September 16, 2024 Approval of Snohomish County Franchise Agreement
Snohomish County Ordinance #24-046
Public Works; Jim Kelly, Director EXPENDITURES REQUESTED: None BUDGET CATEGORY: N/A BUDGETED AMOUNT: N/A LEGAL REVIEW: DESCRIPTION: Staff is requesting council approve ordinance #24-046 passed by Snohomish County granting a non-exclusive franchise authorizing limited use of the public road rights-of-way in portions of Snohomish County, to the City of Arlington.
The City of Arlington and Snohomish County have a Franchise Agreement that has been active for many years that allows the City to install, maintain, and operate water and wastewater utilities within select Snohomish County rights-of-way. The City and County have negotiated a 10-year renewal to the Franchise agreement. The County Council has approved the extension of the Franchise agreement as negotiated and is requesting Arlington City Council do the same, approve the Franchise agreement and authorize the mayor to sign. City staff is recommending Council review and accept this Franchise agreement. ALTERNATIVES:
authorize the Mayor to sign.
After Recording Return To:
Asst. Clerk of the Council
Snohomish County Council
3000 Rockefeller, M/S 609
Everett, WA 98201
Grantor: Snohomish County
Grantee: City of Arlington
Tax Account No: Not Assigned
Legal Description: See Section 1.3
Ref. # of Docs. Affected: N/A
Document Title: An Ordinance of Snohomish County Council Granting a Nonexclusive
Franchise Authorizing Limited Use of Public Road Rights-of-Way in portions
of Snohomish County, Washington to the City of Arlington
SNOHOMISH COUNTY COUNCIL
Snohomish County, Washington
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED
USE OF THE PUBLIC ROAD RIGHTS-OF-WAY IN PORTIONS OF
SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF ARLINGTON
WHEREAS, the Washington State Constitution, by and through its general grant of police power,
and Section 36.55.010 of the Revised Code of Washington authorize counties to grant franchises
for use of public rights-of-way; and
WHEREAS, Section 9.20 of the Snohomish County Charter and Title 13 of the Snohomish County
Code specify requirements for franchises in Snohomish County rights-of-way; and
WHEREAS, a franchise is a legislative authorization to use public rights-of-way, however, actual
construction and activities in the rights-of-way will also be subject to approved right-of-way use
permits after review of specific plans; and
WHEREAS, the City of Arlington has applied to Snohomish County, Washington, for a non-
exclusive franchise to construct, maintain, operate, replace and repair water and wastewater
distribution facilities in, on, across, over, along, under, and/or through public rights-of-way within
unincorporated Snohomish County; and
WHEREAS, the Snohomish County Council considered the Engineer’s Report of the Department
of Public Works, attached to and incorporated into this ordinance by reference, which report
recommends that the subject franchise be granted; and
WHEREAS, the Snohomish County Council held a public hearing on July 17, 2024, to solicit
comments from the public and to consider whether to grant the requested franchise to the City
of Arlington; and
WHEREAS, it has been found to be in the public interest that a franchise, authorizing use of public
rights-of-way for a water and wastewater distribution system, be granted to the City of Arlington.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 2
NOW, THEREFORE, BE IT ORDAINED:
TABLE OF CONTENTS
Section 1. Grant of Franchise.
Section 2. Non-Exclusive Franchise.
Section 3. Term, Early Termination and Amendments
Section 4. Regulation of Use; Permits Required.
Section 5. Emergency Work.
Section 6. Compliance with Applicable Laws; Performance Standards.
Section 7. Restoration of Public Rights-of-Way.
Section 8. Record Plans, Record Drawings, and Records of Grantee Facility Locations.
Section 9. Relocation of Grantee Facilities.
Section 10. Undergrounding of Grantee Facilities.
Section 11. Maintenance of Grantee Facilities.
Section 12. Hazardous Materials.
Section 13. Dangerous Conditions, Authority for County to Abate.
Section 14. Removal of Grantee Facilities; Abandonment of Grantee Facilities.
Section 15. Fees, Compensation for Use of Public Rights-of-Way, and Taxes.
Section 16. Hold Harmless and Indemnification.
Section 17. Limitation of County Liability.
Section 18. Insurance.
Section 19. Performance Security.
Section 20. Annexation.
Section 21. Vacation.
Section 22. Assignment.
Section 23. Enforcement of Franchise; No Waiver.
Section 24. Termination, Revocation, and Forfeiture.
Section 25. County Ordinances and Regulations – Reservation of Police Power.
Section 26. Eminent Domain, Powers of the People.
Section 27. Survival and Force Majeure.
Section 28. Governing Law and Stipulation of Venue.
Section 29. Title VI Assurances and Non-Discrimination.
Section 30. Severability.
Section 31. Notice and Emergency Contact.
Section 32. Acceptance.
Section 33. Effective Date.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 3
Section 1. Grant of Franchise.
1.1 Pursuant to Section 36.55.010 of the Revised Code of Washington (“RCW”), Section
9.20 of the Snohomish County Charter and Chapter 13.80 of the Snohomish County Code
(“SCC”), Snohomish County, a political subdivision of the State of Washington (the “County”),
hereby grants to the City of Arlington, a Washington municipal corporation, (the “Grantee”), a
non-exclusive franchise to use those portions of the County’s rights-of-way described in Section
1.3 below, for the purposes described in Section 1.2 below, subject to compliance with all
applicable provisions of the SCC, the Engineering Design & Development Standards (EDDS) and
the terms and conditions contained in this franchise ordinance (the “Franchise”).
1.2 This Franchise grants the Grantee the right, privilege and authority to use portions of the
Public Rights-of-Way (as such term is defined below) of the County for the sole purposes of
constructing, maintaining, operating, replacing and repairing its water and wastewater distribution
facilities (the “Permitted Use”) and for no other purpose or use whatsoever. The term “Public
Rights-of-Way” as used in this Franchise shall mean all public streets, roads, ways, or alleys of
the County as now or hereafter laid out, platted, dedicated or improved. Pursuant to this Franchise,
the Grantee shall have the right to install, locate, construct, operate, maintain, use, replace and/or
remove such equipment and facilities as may be reasonably necessary or convenient for the
conduct of the Permitted Use (the “Grantee Facilities”), in, on, across, over, along, under or
through certain Public Rights-of-Way of the County, subject to all applicable provisions of the
Snohomish County Code, including title 13 SCC and the EDDS, Chapter 36.55 RCW, and the
terms and conditions of County right-of-way permits issued pursuant to Title 13 SCC and Section
4 of this Franchise. This Franchise merely authorizes the Grantee to occupy and use the Public
Rights-of-Way at issue, and does not transfer, convey or vest any easement, title, servitude, or
other real property interest in or to any Public Right-of-Way or portion thereof in or to the Grantee.
1.3 This Franchise covers all Public Rights-of-Way located within the following portions of
unincorporated Snohomish County:
Township Range Sections
12, 13, 14, 15, 16, 17, 18, 19, 20, 23,
24, 25, 26, 27, 34, 35, 36
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 4
Section 2. Non-Exclusive Franchise.
2.1 This Franchise is granted upon the express condition and understanding that it shall be a
non-exclusive franchise which shall not in any manner prevent or hinder the County from granting
to other parties, at other times and under such terms and conditions as the County, in its sole
discretion, may deem appropriate, other franchises or similar use rights in, on, to, across, over,
upon, along, under or through any Public Rights-of-Way. Owners, whether public or private, of
any authorized facilities or equipment installed in, on, across, over, along, under, and/or through a
Public Right-of-Way prior to the construction and/or installation of Grantee’s Facilities in the same
location, shall have preference as to positioning and location of their facilities. The position and
location of all Grantee’s Facilities in the Public Rights-of-Way shall be subject to the authority of
the County Engineer.
2.2 This Franchise shall in no way prevent, inhibit or prohibit the County from using any of
the Public Rights-of-Way covered or affected by this Franchise, nor shall this Franchise affect the
County’s jurisdiction, authority or power over any of them, in whole or in part. The County
expressly retains its power to make or perform any and all changes, relocations, repairs,
maintenance, establishments, improvements, dedications, or vacations of or to any of the Public
Rights-of-Way as the County may, in its sole and absolute discretion, deem fit, including the
dedication, establishment, maintenance and/or improvement of new Public Rights-of-Way,
thoroughfares and other public properties of every type and description.
Section 3. Term, Early Termination, and Amendments.
3.1 The initial term of the Franchise shall be for a period of ten (10) years (the “Initial Term”),
beginning on the Effective Date (as such term is defined in Section 33 of this Franchise) of the
Franchise, and continuing until the date that is one day prior to the tenth (10th) anniversary of the
Effective Date (the “Initial Term Expiration Date”), unless earlier terminated, revoked or amended
pursuant to the provisions of this Franchise.
3.2 This Franchise shall automatically renew for an additional term of ten (10) years (the
“Extended Term,” and, together with the Initial Term, the “Term”), subject to the County’s right
to renegotiate and/or unilaterally terminate the Franchise at any time after the Initial Term
Expiration Date, as more fully described in Section 3.3 below.
3.3 The County shall have the right, in its sole and absolute discretion, at any time after the
Initial Term Expiration Date, to unilaterally elect to open negotiations with the Grantee regarding
proposed amendments, alterations or other changes to the terms and conditions of this Franchise.
In such event, the County shall deliver written notice to the Grantee stating the County’s general
desire to amend the terms and conditions of the Franchise. Within thirty (30) days after the date
on which the Grantee receives the County’s notice letter, the Grantee and the County shall enter
into good faith negotiations regarding potential amendments to the initial terms and conditions of
the Franchise. Should the parties reach agreement regarding any such amendments, the parties
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 5
shall memorialize such amendments and seek approval of same from the County Council or such
other County authority as may be proper. Should the parties prove unable to reach agreement
regarding any proposed amendments within ninety (90) days after the date on which negotiations
commenced, then this Franchise shall automatically terminate.
3.4 Other than the process set forth in Section 3.3 for amendments, this Franchise may be
amended only upon the written consent of the County and the Grantee set forth in writing in the
form of a County ordinance, signed by both parties, which states that it is an amendment to this
Franchise and is approved and executed in accordance with the laws of the State of Washington.
Section 4. Regulation of Use; Permits Required.
4.1 The installation, location, maintenance, operation, relocation, removal or any other work
related to any of the Grantee Facilities occurring in, on, across, over, along, under, and/or through
any Public Right-of-Way covered by this Franchise, shall be performed in a safe and workmanlike
manner, in such a way as to minimize interference with the free flow of traffic and the use of
adjacent property, whether such property is public or private.
4.2 The Grantee shall not commence any work within Public Rights-of-Way until a right-of-
way use permit authorizing such work has been issued by the County pursuant to Title 13 SCC. In
addition to any standards of performance imposed by this Franchise, any and all work performed
by Grantee pursuant to this Franchise shall be performed in accordance with all current County
standards applicable to such work, including the County approved plans and specifications for the
work, and the terms and conditions of any right-of-way use permit and/or other permits and/or
approvals required under Title 13 SCC in order to accomplish the work (e.g., lane closure or road
detour permits). Grantee understands and acknowledges that some or all of Grantee’s activities
may require additional project permits and approvals under County land use codes and
development regulations, and Grantee accepts full responsibility for obtaining and complying with
same.
4.3 In addition to any criteria set forth in Title 13 SCC, the EDDS, and the County’s utility
accommodation policies, in reviewing the Grantee’s application for any right-of-way use permit
pursuant to this Franchise, the County Engineer may apply the following criteria in reviewing
proposed utility routes and in the issuance, conditioning, or denial of such permit:
(i) the capacity of the Public Rights-of-Way at issue to accommodate the proposed
Grantee Facilities;
(ii) the capacity of the Public Rights-of-Way at issue to accommodate additional utility,
cable, telecommunications, or other public facilities if the right-of-way use permit
is granted;
(iii) the damage or disruption, if any, to public or private facilities, improvements,
service, travel, or landscaping if the right-of-way use permit is granted;
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 6
(iv) the public interest in minimizing the cost and disruption of construction within the
Public Rights-of-Way at issue, including, but not limited to, coordination with
future utility installation or County projects;
(v) recent and/or proposed construction and/or improvements to the Public Rights-of-
Way at issue;
(vi) the availability of alternate routes, locations, and/or methods of construction or
installation for the proposed Grantee Facilities, including, but not limited to,
whether other routes are preferred; and
(vii) whether the Grantee has received all requisite licenses, certificates, and
authorizations from applicable federal, state, and local agencies with jurisdiction
over the activities proposed by the Grantee.
4.4 Prior to commencing any work in a critical area as defined by SCC 30.91C.340, the Grantee
shall comply with all applicable requirements of the County’s critical areas regulations in chapters
30.62A, 30.62B, 30.62C and 30.65 SCC, and shall obtain any and all required permits and
approvals. The granting of this Franchise shall in no way relieve the Grantee from its responsibility
for avoiding “take” of any threatened or endangered species as defined by the Endangered Species
Act of 1973, 16 U.S.C. § 1531, et seq., as amended, in the performance of any work authorized by
this Franchise and/or any right-of-way use permits.
Section 5. Emergency Work.
Should any of the Grantee Facilities in the Public Rights-of-Way break or become damaged such
that an immediate danger to the property, life, health or safety of any individual is presented, or
should any site upon which the Grantee is engaged in construction or maintenance activities
pursuant to this Franchise for any reason be in such a condition that an immediate danger to the
property, life, health or safety of any individual is presented, the Grantee shall immediately take
such measures as are reasonably necessary to repair the Grantee Facilities at issue or to remedy
the dangerous conditions on the site at issue so as to protect the property, life, health or safety of
individuals. In the event of an emergency described above, the Grantee may take corrective action
immediately, without first applying for or obtaining any permits or other authorizations that might
otherwise have been required by the SCC and/or this Franchise. However, the emergency
provisions contained in this Section 5 shall not relieve the Grantee from its obligation to obtain
any permits necessary for the corrective actions taken, and the Grantee shall apply for all such
permits as soon as is reasonably possible after the occurrence of the emergency. In the event of
any emergency described in this Section 5, the Grantee shall notify the County of the emergency
as soon as may be reasonably feasible after the Grantee discovers the emergency (such notice may
be telephonic).
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 7
Section 6. Compliance with Applicable Laws; Performance Standards.
6.1 The Grantee shall at all times during the Term of the Franchise undertake the Permitted
Use in compliance with all federal, state and local laws, rules and regulations (including, but not
limited to, the County’s comprehensive plan, zoning code, and other development regulations) that
are applicable to any and all work or other activities performed by Grantee pursuant to or under
authority of the Franchise.
6.2 During any period of installation, maintenance, operation, relocation, removal or any other
work related to any of the Grantee Facilities subject to this Franchise, Grantee shall use industry
accepted best-practices to ensure that, to the extent reasonably feasible, such work does not
impede: (i) public use of the Public Rights-of-Way at issue for vehicular and pedestrian
transportation; (ii) construction and/or maintenance within Public Rights-of-Way and other
authorized facilities, equipment and improvements; (iii) the operation, maintenance or
improvement by the County of the Public Rights-of-Way or other public property impacted by
Grantee’s work; or (iv) use of the Public Rights-of-Way for other governmental purposes.
6.3 During any periods of construction within the Public Rights-of-Way, the Grantee shall at
all times post and maintain proper barricades and comply with all applicable safety regulations as
required by the SCC, the EDDS, or the laws of the State of Washington, including, but not limited
to, RCW 39.04.180 for the construction of trench safety systems.
6.4 Before the Grantee commences any work under this Franchise which may affect any
existing monuments or markers of any nature relating to subdivisions, plats, roads, or other
surveys, Grantee shall reference all such monuments and markers using a method or methods
approved by the County Engineer, and a complete set of reference notes for monuments and other
ties shall be filed with the County prior to the commencement of construction. Reference points
shall be so located that they will not be disturbed during Grantee’s operations. The replacement of
all such monuments or markers disturbed during construction shall be made as expeditiously as
conditions permit, as directed by the County Engineer, and to federal, state and local standards.
All costs incurred pursuant to this Section 6.4 shall be borne by Grantee.
6.5 If the Grantee shall at any time plan to make excavations in any area covered by the
Franchise, the Grantee shall, upon receipt of a written request to do so, provide an opportunity for
the County and/or any other franchisees or authorized users of the Public Right-of-Way at issue to
participate in such excavation, and shall coordinate the location and installation of its Grantee
Facilities with the County or such other franchisees or authorized entities, PROVIDED THAT,
Grantee need not permit the County or any other party (ies) to participate in an excavation if the
County Engineer determines that any of the following are true:
(i) such joint use would unreasonably delay the performance of Grantee’s work;
(ii) despite good-faith efforts, the parties involved are unable to agree upon reasonable
terms and conditions for accomplishing such joint use; or
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 8
(iii) valid safety reasons exist for denying a request for such joint use.
6.6 If the Grantee shall at any time plan to include communication facilities in furtherance of
the Permitted Use, the Grantee shall provide an opportunity for the County to enter into
negotiations for shared use of such communication facilities, and shall coordinate negotiation of
shared use of its communication facilities with the County; PROVIDED THAT, Grantee need not
permit the County to participate in shared use of communication facilities if any of the following
are true, in the reasonable judgment of the County and the Grantee:
(i) such shared use would unreasonably delay the performance of Grantee’s work;
(ii) despite good-faith efforts, the parties involved are unable to agree upon reasonable
terms and conditions, including but not limited to allocation of costs amongst
various parties, for accomplishing such shared use;
(iii) valid safety reasons exist for denying a request for such shared use and/or the
proposed facilities of the third party are in conflict with the best practices employed
by the Grantee; or
(iv) the installation of communication facilities is for the purpose of an emergency
action to protect the property, life, health or safety of individuals.
Section 7. Restoration of Public Rights-of-Way.
Promptly after completing any work in, on, under, over, across or upon any Public Rights-of-Way,
including, but not limited to any excavation, installation, construction, relocation, maintenance,
repair or removal of any Grantee Facilities, Grantee shall, at Grantee’s sole cost and expense,
restore the Public Rights-of-Way and any adjacent affected areas as required by the EDDS.
Grantee shall also comply with any and all restoration conditions contained in applicable permits
or approvals. The County Engineer shall have final authority to determine in each instance of
restoration whether adequate restoration has been performed, reasonable wear and tear excepted.
Section 8. Record Plans, Record Drawings, and Records of Grantee Facility Locations.
8.1 The Grantee shall maintain adequate records to document obligations performed under this
Franchise. The Grantee agrees and covenants that it shall, promptly upon substantial completion
of any construction project involving a Public Right-of-Way, provide to the County, at no cost to
the County, a copy of all as-built plans, maps and records revealing the approximate final locations
and conditions of the Grantee Facilities located within such Public Right-of-Way. Additionally,
the County may, at any time, deliver a written request to the Grantee for copies of maps and records
showing the approximate location of all or any portion of the Grantee Facilities. In such event,
the Grantee shall provide the County, at no cost to the County, with copies of the requested record
plans, record drawings and other records within a reasonable time after receiving the County’s
request for same. The County shall have the right to review the Grantee’s records regarding the
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 9
subject matter of this Franchise at reasonable times, upon reasonable notice. The right to review
records shall last for six (6) years from the expiration or earlier termination of this Franchise. In
addition to the maps and records of the Grantee Facility locations, the Grantee shall provide the
County, upon the County’s request, with copies of records of construction, maintenance, operation,
inspections, or regulatory compliance for all Grantee Facilities subject to this Franchise as may be
deemed necessary by the County, in its sole discretion, to manage the county roads, Public Rights-
of-Way, or other property, or to protect the public health, safety, and welfare. Nothing in this
Section 8 shall be construed to require Grantee to violate state or federal law concerning customer
privacy, nor shall this Section 8 be construed to require Grantee to disclose proprietary or
confidential information without adequate safeguards for its confidential or proprietary nature.
8.2 If the Grantee considers any portion of its records provided to the County, whether in
electronic or hard copy form, to be protected from disclosure under law, the Grantee shall clearly
identify any specific information that it claims to be confidential or proprietary. If the County
receives a request under the Public Records Act, Chapter 42.56 RCW, to inspect or copy the
information so identified by the Grantee and the County determines that release of the information
is required by the Act or otherwise appropriate, the County’s sole obligations shall be to notify the
Grantee (a) of the request and (b) of the date that such information will be released to the requester
unless the Grantee obtains a court order to enjoin that disclosure pursuant to RCW 42.56.540. If
the Grantee fails to timely obtain a court order enjoining disclosure, the County will release the
requested information on the date specified. The County has, and by this section assumes, no
obligation on behalf of the Grantee to claim any exemption from disclosure under the Act. The
County shall not be liable to the Grantee for releasing records not clearly identified by the Grantee
as confidential or proprietary. The County shall not be liable to the Grantee for any records that
the County releases in compliance with this section or in compliance with an order of a court of
competent jurisdiction.
Section 9. Relocation of Grantee Facilities.
9.1 The Grantee agrees and covenants that it will promptly, at its sole cost and expense, protect,
support, temporarily disconnect, relocate, or remove from the Public Rights of Way any Grantee
Facilities when the County Engineer determines after full and fair consideration that such a
relocation is necessary for any of the following reasons: (i) traffic conditions; (ii) public safety;
(iii) dedications of new Public Rights-of-Way and the establishment and/or improvement thereof;
(iv) widening and/or improvement of existing Public Rights-of-Way; (v) vacations of Public
Rights-of-Way; (vi) freeway construction; (vii) change or establishment of road grade; or (viii) the
construction of any public improvement or structure by any governmental agency acting in a
governmental capacity; PROVIDED that the Grantee shall generally have the privilege to
temporarily bypass, in the authorized portion of the same Public Right-of-Way, upon approval by
the County Engineer, any Grantee Facilities required to be temporarily disconnected or removed.
9.2 Upon the request of the County and in order to facilitate County improvements to Public
Rights-of-Way, the Grantee agrees to locate and, if reasonably determined necessary by the
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 10
County, to excavate and expose, at its sole cost and expense, portions of the Grantee Facilities for
inspection so that the location of the facilities may be taken into account in the improvement
design.
9.3 Grantee shall, upon reasonable prior written request of any person or entity holding a
permit issued by the County to move any structure, temporarily move its facilities to allow the
moving of such structure; PROVIDED (i) Grantee may impose a reasonable charge on the
permittee for the movement of Grantee’s Facilities; (ii) Grantee is granted a permit by the County
for such work if a permit is needed; and (iii) Grantee is given not less than ten (10) business days’
notice to arrange for such temporary relocation; EXCEPT in any case where the County Engineer
determines Grantee Facilities are not reasonably movable.
9.4 Where the County imposes conditions or requirements on a third party development
requiring the relocation of any Grantee Facilities, the County shall not be responsible for paying
any costs related to such relocation. Nothing in this Franchise is intended or shall be construed to
prohibit the Grantee from assessing on such person or entity, other than the County, the costs of
relocation as a condition of such relocation.
9.5 To assist Grantee with anticipating relocations of Grantee Facilities related to County
improvements to the Public Rights-of-Way, upon request, the County will provide the Grantee
with copies of the most recently adopted Six-Year Transportation Improvement Program (“TIP”)
and Annual Construction Program (“ACP”).
9.6 If the County determines that a County project necessitates the relocation of existing
Grantee Facilities, the parties shall proceed as follows:
(i) The County shall provide the Grantee at least ninety (90) days written notice prior
to the commencement of the construction phase of the County project at issue;
PROVIDED, that under the following circumstances the County need only provide
the Grantee with written notice as soon as may be reasonably practicable: (a) in the
event of an emergency posing a threat to public safety, health or welfare; (b) in the
event of an emergency beyond the control of the County and which will result in
adverse financial consequences to the County; or (c) where the need to relocate the
Grantee Facilities could not reasonably have been anticipated by the County.
(ii) The County shall provide the Grantee with copies of pertinent portions of the
designs and specifications for the County project as well as a proposed new location
for the Grantee Facilities at least ninety (90) days prior to the commencement of
the construction phase of the County project to enable Grantee to promptly relocate
such Grantee Facilities. Upon request of the Grantee, thirty-percent (30%), sixty-
percent (60%) and ninety-percent (90%) design plans shall be provided to the
Grantee. The County and the Grantee shall, upon the request of either party, meet
to discuss the plans, specifications and schedule of the County project at issue at a
mutually agreed time in a location determined by the County.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 11
(iii) After receipt of such notice and such plans and specifications, the Grantee shall
complete relocation of its facilities within the Public Right-of-Way at least ten (10)
days prior to commencement of the construction phase of the County project at no
charge, cost or expense to the County, unless otherwise agreed to within a separate
agreement executed by both Parties. Relocation shall be accomplished in such a
manner as to accommodate the County’s project. In the event of an emergency, the
Grantee shall relocate the Grantee Facilities at issue within a time period reasonably
specified by the County Engineer.
(iv) The County and the Grantee may, for each individual County project, enter into an
agreement for costs incurred by the County for relocation of Grantee’s Facilities
and associated work tied to the relocation.
(v) In the event of an emergency, the Grantee shall relocate the Grantee Facilities at
issue within a time period reasonably specified by the County Engineer.
9.7 The Grantee may, after receipt of written notice requesting a relocation of any Grantee
Facilities in accordance with Section 9.6, submit to the County proposed written alternatives to
such relocation. The County shall evaluate such alternatives and advise the Grantee in writing if
one or more of the alternatives are suitable to accommodate the County project. If so requested by
the County, the Grantee shall submit additional information to assist the County in making such
evaluation. The County shall give each alternative proposed by the Grantee full and fair
consideration. Where, upon the request of the Grantee, the County incurs additional costs in
performing any maintenance, operation, or improvement of or to public facilities due to measures
taken by the County to avoid damaging or to otherwise accommodate one or more Grantee
Facilities, the Grantee shall reimburse the County for the full amount of such additional costs
promptly upon receiving the County’s invoice for same. In the event the County ultimately
determines that there is no reasonable or feasible alternative to relocation, the Grantee shall
relocate the Grantee Facilities at issue as otherwise provided in this Section 9.
9.8 The provisions of this Section 9 shall in no manner preclude or restrict the Grantee from
making any arrangements it may deem appropriate when responding to a request for relocation of
any Grantee Facility by any person or entity other than the County, where the facilities to be
constructed by said person or entity are not or will not become County-owned, operated or
maintained facilities, provided that such arrangements do not unduly delay any County projects.
The Grantee shall provide certified record drawings (or as-built drawings) detailing the location
of Grantee’s Facilities within the Public Right-of-Way required to be relocated or removed for the
purpose of the non-County project.
9.9 Should relocation be required for a County project pursuant to this Section 9, the Grantee
shall be responsible for timely relocation of the Grantee Facilities at issue and the coordination of
such relocation with the County (or the County’s contractor for the County project). The Grantee
shall be fully responsible for the costs of any delays to County projects resulting from relocations
of any Grantee Facilities.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 12
9.10 In the event of a conflict between this Section 9 and the specific terms of any existing real
property interests and rights owned by the Grantee, such as a utility easement or other servitude,
the terms of this Section 9 shall be subject to the specific terms of the real property interests and
rights owned by the Grantee unless and until those rights are extinguished or amended (i) by mutual
agreement, (ii) pursuant to a judicial condemnation order, (iii) by negotiated sale of said property
rights between Grantee and the County in-lieu of condemnation, or (iv) by any other lawful means.
Section 10. Undergrounding of Grantee Facilities.
10.1 The undergrounding requirements of this Section 10 shall apply where the Grantee
Facilities consist of cable or any other facilities, equipment or systems which are reasonably
capable of being placed underground. Where the Grantee Facilities consist of antennae or other
facilities, equipment or systems which are required to remain above ground in order to be
functional, the terms and conditions of this Section 10 shall not apply.
10.2 In any area of the County in which there are no aerial facilities other than antennae or other
facilities required to remain above ground in order to be functional, or in any area in which
telephone, electric power wires or other cables have been placed underground, the Grantee shall
not be permitted to erect poles or to run or suspend wires, cables or other similar facilities thereon,
but shall lay all such wires, cables or other facilities underground in the manner required by the
County. The Grantee acknowledges and agrees that, even if the County does not require the
undergrounding of all or any portion of the Grantee Facilities at the time the Grantee applies for
the applicable right-of-way use permit, the County may, at any time in the future, and in the
County’s sole and absolute discretion, require the Grantee to convert all or any portion of the aerial
Grantee Facilities to underground installation at the Grantee’s sole cost and expense.
10.3 Whenever the County may require the undergrounding of the aerial facilities in any area of
the County, the Grantee shall underground the aerial Grantee Facilities in that area of the County
in the manner specified by the County, and concurrently with the other affected facilities. Where
other facilities are present or proposed and involved in the undergrounding project, the Grantee
shall only be required to pay its fair share of common costs borne by all facilities, in addition to
the costs specifically attributable to the undergrounding of the Grantee Facilities. “Common costs”
shall include necessary costs not specifically attributable to the installation or undergrounding of
any particular facility, such as costs for common trenching and utility vaults. “Fair share” shall be
determined for a project on the basis of the number and size of the Grantee Facilities being installed
or undergrounded in comparison to the total number and size of all other utility facilities being
installed or undergrounded.
Section 11. Maintenance of Grantee Facilities.
11.1 The Grantee shall maintain all Grantee Facilities in good condition and repair, in
accordance with industry accepted best practices.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 13
11.2 The Grantee shall take necessary steps to maintain a reasonably clear area around all
Grantee Facilities installed above ground within Public Rights-of-Way. A minimum of five (5)
feet of clearance will be maintained around each such object and a flexible marker, meeting
American Public Works Association (APWA) uniform color code requirements, shall be placed
so as to provide clear visibility from the roadway for County operations and maintenance. The
County shall not be held liable for damage to Grantee’s Facilities, should they not be visible during
the County’s operations and maintenance activities. Prior to using any chemical sprays within the
Public Rights-of-Way to control or kill weeds and brush, the Grantee must obtain the County’s
permission. The County may limit or restrict the types, amounts, and timing of applications
provided such limitations or restrictions are not in conflict with State law governing utility right-
of-way maintenance. Grantee shall comply with all local laws and regulations with respect to
trimming of trees and shrubbery and with all generally applicable landscaping regulations.
Section 12. Hazardous Materials.
12.1 The County understands and agrees that the Permitted Use contemplated by the Grantee
involves the use by Grantee of certain chemicals and/or materials within the Public Rights-of-Way
that are classified as hazardous or otherwise harmful to life, health and/or safety (any such
chemical or material, a “Hazardous Material”) under one or more applicable federal, state or local
laws, rules, regulations or ordinances (collectively, the “Hazardous Materials Laws”). The Grantee
shall be permitted to use such Hazardous Materials within the Public Rights-of-Way as are
reasonably necessary for the Grantee’s conduct of the Permitted Use and which are customary for
the industry in which the Grantee is engaged; PROVIDED, however, that the Grantee’s use of any
such Hazardous Materials within the Public Rights-of-Way shall at all times be undertaken in full
compliance with all Hazardous Materials Laws, including any orders or instructions issued by any
authorized regulatory agencies.
12.2 The Grantee covenants and agrees that it will neither cause nor permit, in any manner, the
release, discharge, seepage or spill of any Hazardous Material in, on, under, above, across, through
or around any portion of any Public Right-of-Way or property adjacent thereto, whether public or
private, in violation of any applicable Hazardous Materials Law. Any such release, discharge,
seepage or spill of any Hazardous Material within the Public Rights-of-Way that is in violation of
any applicable Hazardous Materials Law and is caused by Grantee Party (as defined in Section
16.1) is referred to as a “Release.”
12.3 Should a Release occur, the Grantee shall immediately upon receiving notice thereof
provide written notice of the Release to the County and the Washington State Department of
Ecology. Notwithstanding the Grantee’s obligation to completely remediate same, in the event of
any Release by a Grantee Party, the County may, but is not required, in the interest of protecting
the health, safety, welfare and property of the public, immediately take whatever actions it deems
necessary or advisable, in its sole discretion, to contain, clean up or remediate the Release at issue.
Should the County choose to take any actions pursuant to the preceding sentence, the County shall
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 14
be entitled to repayment from the Grantee of any and all reasonable costs and expenses incurred
by the County in performing such actions.
12.4 Should the Grantee cause a Release as described in Section 12.2 above, failure to promptly
comply with all orders or instructions lawfully issued by any authorized regulatory agencies
regarding clean-up and remediation shall constitute a material breach of this Franchise, and the
County Council may terminate the Franchise in accordance with Section 24.
Section 13. Dangerous Conditions, Authority for County to Abate.
13.1 Whenever the Grantee’s excavation, construction, installation, relocation, maintenance,
repair, abandonment, or removal of Grantee Facilities authorized by this Franchise has caused or
contributed to a condition that, in the reasonable opinion of the County Engineer, substantially
impairs the lateral support of the adjoining road or public or private property, or endangers the
public, an adjoining public place, road facilities, County property or private property, the County
Engineer may direct the Grantee to remedy the condition or danger to the satisfaction of the County
Engineer, within a specified period of time and at the Grantee’s sole cost and expense.
13.2 In the event that the Grantee fails or refuses to promptly take the actions directed by the
County Engineer, or fails to fully comply with such directions, or if emergency conditions exist
which require immediate action, in accordance with Section 13.1 above, the County may enter
upon the property and take such actions as are reasonably necessary to protect the public, to protect
the adjacent roads, or road facilities, to maintain the lateral support thereof, or to ensure the public
safety, and the Grantee shall be liable to the County for all reasonable costs and expenses incurred
by the County in performing such actions.
Section 14. Removal of Grantee Facilities; Abandonment of Grantee Facilities.
14.1 In no event may all or any portion of any Grantee Facility located in, on, under, over, across
or through the public right-of-way be abandoned or temporarily abandoned in place by the Grantee
without the express written consent of the County. Should the Grantee desire to deactivate,
abandon, or temporarily abandon in place all or any portion of the Grantee Facilities, the Grantee
shall request the County’s permission to do so by delivering a written request to the County not
later than thirty (30) days after the date on which the Grantee discontinues use of any Grantee
Facilities for any reason or this Franchise expires or terminates, whichever is earlier. The Grantee’s
request shall specify which Grantee Facilities the Grantee desires to deactivate or abandon in place.
Within a reasonable time after the date on which the County receives the Grantee’s written request,
the County shall deliver a written response to the Grantee setting forth the County’s decision,
which shall be made in the County’s sole and absolute discretion. If the County denies the
Grantee’s request with respect to all or any portion of the Grantee Facilities at issue, then the
Grantee must promptly proceed to remove those Grantee Facilities for which the Grantee’s request
for abandonment has been denied.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 15
14.2 If the County grants its approval to the Grantee’s request for deactivation or abandonment,
either in whole or in part, the County may impose conditions on such approval. The Grantee shall,
at its sole cost and expense, as directed by the County, purge the Grantee Facilities that will be
deactivated, abandoned, or temporarily abandoned of any product, Hazardous Material and/or
other substance so as to render such Grantee Facilities safe in accordance with applicable law or
such other standards as may be reasonably deemed appropriate by the County. The County’s
consent to such action by the Grantee shall not relieve the Grantee of the obligation and/or costs
to remove or to alter such Facilities in the future in the event it is reasonably determined by the
County that removal or alteration is necessary or advisable for the health and safety of the public,
in which case the Grantee shall perform such work at no cost to the County. This paragraph shall
survive the expiration, revocation or termination of this Franchise.
14.3 Should the Grantee fail to comply with the requirements of Section 14.1 within a
reasonable time after either: (i) the expiration or earlier termination of the Franchise; or (ii) the
County’s denial of the Grantee’s request for permission to deactivate or abandon all or any portion
of the Grantee Facilities, the Grantee shall be deemed to have deactivated or abandoned the
Grantee Facilities without authorization. In the event of any unauthorized abandonment of all or
any portion of the deactivated or abandoned Grantee Facilities by the Grantee, the County may, at
its election, and in addition to any other remedies or enforcement options available to the County
under this Franchise, at law or in equity, remove all or any portion of the deactivated or abandoned
Grantee Facilities on behalf of the Grantee and restore the Public Rights-of-Way following such
removal. Should the County choose to perform any such removal and restoration activities on the
Grantee’s behalf, the County may dispose of the removed Grantee Facilities in any manner it
deems fit and in accordance with applicable laws, and the Grantee shall be liable to the County for
all costs and expenses incurred by the County in performing such removal and restoration
activities.
Section 15. Fees, Compensation for Use of Public Rights-of-Way and Taxes.
15.1 The Grantee shall be subject to all permit fees allowed by law associated with activities
undertaken within Public Rights-of-Way through the authority granted to the Grantee by this
Franchise or under applicable provisions of the SCC.
15.2 Grantee shall pay itemized costs and expenses incurred by the County in the examination
and report of the proposed franchise under SCC 13.80.030(4) and any other fees required under
chapter 13.110 SCC.
15.3 In addition, the Grantee shall reimburse the County for any and all documented costs the
County reasonably and necessarily incurs in response to an emergency involving any Grantee
Facilities. The Grantee shall promptly reimburse the County, upon submittal by the County of an
itemized billing, for the Grantee’s proportionate share of all actual, identified costs and expenses
incurred by the County in repairing any County facility, or altering such County facility if at the
Grantee’s request, as the result of the presence of any Grantee Facilities in the Public Right-of-
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 16
Way. Such costs and expenses shall include, but not be limited to, the Grantee’s proportionate
share of the costs of County personnel assigned to review construction plans or to oversee or
engage in any work in the Public Right-of-Way as a result of the emergency and the presence of
the Grantee Facilities in the Public Right-of-Way. Any and all costs will be billed on an actual cost
basis. The billing may be on an annual basis, but the County shall provide the Grantee with the
County’s itemization of costs at the conclusion of each project for informational purposes.
15.4 Franchise Compensation.
15.4.1 The County reserves the right to exercise any authority it has or may acquire in the
future to charge a reasonable franchise fee and secure and receive reasonable compensation
in exchange for the Grantee’s right to use and occupy the Public Rights-of-Way
(“Franchise Compensation”). If the County elects to exercise such authority, the Franchise
Compensation requirement for Grantee shall be implemented not less than 180 days after
written notice is given to Grantee (“Compensation Notice”). The Compensation Notice
shall describe with specificity the process or formula used in determining the Franchise
Compensation amount and terms of payment, which shall be consistent with any County
ordinances, rules, standards, or policies now existing or hereafter lawfully enacted or
established authorizing collection and calculation of Franchise Compensation. Failure of
Grantee to pay the Franchise Compensation consistent with the terms of the Compensation
Notice may be a Franchise violation subject to Section 23 (County Enforcement of
Franchise).
15.4.2 In the event Grantee for any reason objects to the amount of Franchise
Compensation established by the County as unacceptable, Grantee has the option at any
time after the establishment of the Franchise Compensation payment amount to provide
the County with three years written notice to terminate the Franchise and remove or, with
approval of the County Engineer, abandon in place all of the Grantee Facilities from the
Public Rights-of-Way in accordance with Section 14 by the conclusion of the notice period.
15.5 Utility Tax. The County reserves for itself the right to impose a utility tax on Grantee, if
such taxing authority is granted by the State of Washington.
Section 16. Hold Harmless and Indemnification.
16.1 General Indemnification. Grantee agrees to indemnify, defend, and hold harmless the
County, its elected and appointed officials, employees, authorized agents, and authorized
volunteers (collectively, the “County Parties”) from and against any and all claims, demands,
liability, suits, and judgments, including costs of defense thereof, for bodily injury to persons,
death, or property damage arising out of the acts or omissions of Grantee or authorized agents,
employees, and contractors (collectively, “the Grantee Parties”). This covenant of indemnification
shall include, but not be limited to, any and all claims, demands, liability, suits, and judgments
arising out of, or by reason of, any construction, excavation, erection, placement, operation,
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 17
maintenance, repair or reconstruction of Grantee’s Facilities, or any other act done within the
Franchise Area under this Franchise. Grantee shall consult and cooperate with the County while
conducting its defense of the County. Said indemnification obligations shall extend to any
settlement made by Grantee.
16.2 Indemnification for Relocation. Grantee shall indemnify, defend and hold harmless the
County Parties for any damages, claims, additional costs, or expenses payable by the County
related to, arising out of, or resulting from Grantee’s failure to timely remove, adjust or relocate
any of its facilities in the Rights-of-Way in a in accordance with any relocation required under this
Franchise. Pursuant to Section 16.1, the provisions of this Section 16.2 shall specifically include,
but are not limited to, claims for delay, damages, and/or additional costs asserted by any contractor
performing public work for or on behalf of the County.
16.3 Indemnification for Hazardous Materials. Grantee shall indemnify, defend and hold
harmless the County Parties from and against any and all losses, liabilities, suits, obligations, fines,
damages, judgments, penalties, claims, charges, cleanup costs, remedial actions, or other costs and
expenses (including, without limitation, attorneys’ and other professional fees and disbursements)
that may be imposed on, incurred or paid by, or asserted against the County by reason of, or in
connection with the acts or omissions of Grantee Parties resulting in the release, discharge, seepage
or spill of any Hazardous Material in, on, under, above, across, through or around any portion of
any Public Rights-of-Way or property adjacent thereto, whether public or private, in violation of
any applicable Hazardous Materials Law.
16.4 Procedures and Defense. If a claim or action arises, the County or any other indemnified
party shall tender the defense of the claim or action to Grantee, which defense shall be at Grantee’s
expense. The County may participate in the defense of a claim and, in any event, Grantee may not
agree to any settlement of claims financially affecting the County without the County’s written
approval that shall not be unreasonably withheld.
16.5 Duty of Defense. The fact that Grantee carries out any activities under this Franchise
through independent contractors shall not constitute an avoidance of or defense to Grantee’s duty
of defense and indemnification under this Section 16.
16.6 Duty to Give Notice. The County shall give Grantee prompt written notice of any claim
or of the commencement of any action, suit or other proceeding covered by the indemnity in this
Section 16. The County’s failure to so notify and request indemnification shall not relieve Grantee
of any liability that Grantee might have, except to the extent that such failure prejudices Grantee’s
ability to defend such claim or suit. In the event any such claim arises, the County or any other
indemnified party shall tender the defense thereof to Grantee and Grantee shall have the obligation
and duty to defend any claims arising thereunder, and the County shall cooperate fully therein.
16.7 Separate Representation. If separate representation to fully protect the interests of both
parties is necessary, such as in the event of a conflict of interest between the County and the
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GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 18
counsel selected by Grantee to represent the County, Grantee shall select other counsel without
conflict of interest with the County.
16.8 Prior Franchises. The grant of this Franchise shall have no effect on Grantee’s duty under
the Prior Franchises to indemnify or insure the County against acts and omissions occurring during
the period that the Prior Franchises were in effect, nor shall it have any effect upon Grantee’s
liability to pay all Franchise Fees which were due and owed under Prior Franchises.
16.9 Waiver of Title 51 RCW Immunity. Grantee’s indemnification obligations shall include
indemnifying the County for actions brought by Grantee’s own employees and the employees of
Grantee’s agents, representatives, contractors, and subcontractors even though Grantee might be
immune under Title 51 RCW from direct suit brought by such an employee. It is expressly agreed
and understood that this indemnification for actions brought by the aforementioned employees is
limited solely to claims against the County arising by virtue of Grantee’s exercise of the rights set
forth in this Franchise. To the extent required to provide this indemnification and this
indemnification only, Grantee waives its immunity under Title 51 RCW as provided in RCW
4.24.115; provided however, the forgoing waiver shall not in any way preclude Grantee from
raising such immunity as a defense against any claim brought against Grantee by any of its
employees or other third party. The obligations of Grantee under this Section 16.9 have been
mutually negotiated by the parties hereto.
16.10 Concurrent Negligence. In the event that a particular activity conducted under this
Franchise is subject to RCW 4.24.115, this Section 16.10 shall apply. Liability for damages arising
out of bodily injury to persons, death, or damages to property caused by or resulting from the
concurrent negligence of the Grantee Parties and the County Parties, Grantee’s liability shall be
only to the extent of Grantee Parties’ negligence.
16.11 Inspection. The County’s permitting approval, inspection, lack of inspection, or
acceptance of any work performed by the Grantee Parties in connection with work authorized on
Grantee’s Facilities, pursuant to this Franchise or pursuant to any other permit or approval issued
in connection with this Franchise, shall not be grounds for avoidance of any of the indemnification,
defense and hold harmless obligations contained in this Section 16.
16.12 Cost Recovery. In the event the County incurs attorneys’ fees, legal expenses, or other
costs to enforce the provisions of this Section 16 against the Grantee, all such fees, expenses, and
costs shall be recoverable from Grantee if ordered by a court of competent jurisdiction or Grantee
agrees that it is obligated under the indemnification.
16.13 Survival. The indemnification, defense and hold harmless obligations contained in this
Section 16 for those acts and omissions occurring during the period this Franchise is in effect shall
survive the expiration, abandonment or termination of this Franchise.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 19
16.14 Damage to Grantee Facilities. Notwithstanding any other provisions of this Section 16,
Grantee assumes the risk of damage to its facilities located in or upon the Public Rights-of-Way
from activities conducted by the County Parties, and agrees to release and waive any and all such
claims against the County except to the extent any such damage or destruction is caused by or
arises from the sole negligence, intentional misconduct or criminal actions of the County Parties.
In no event shall the County be liable for any indirect, incidental, special, consequential,
exemplary, or punitive damages, including by way of example and not limitation lost profits, lost
revenue, loss of goodwill, or loss of business opportunity in connection with the County Parties’
acts or omissions in accordance with this Section 16.14. Grantee further agrees to indemnify, hold
harmless and defend the County against any claims for damages, including, but not limited to,
business interruption damages, lost profits and consequential damages, brought by or on behalf of
users of Grantee’s Facilities as the result of any interruption of service due to damage or destruction
of Grantee’s Facilities caused by or arising out of activities conducted by the County Parties.
Section 17. Limitation of County Liability.
The County’s administration of this Franchise shall not be construed to create the basis for any
liability on the part of the County Parties, except for and only to the extent of the County’s
negligence.
Section 18. Insurance.
18.1 Insurance Requirements
A. Insurance Required
Grantee shall procure, and maintain for the duration of this Franchise, 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 the Grantee, its agents,
representatives, employees and/or contractors /subcontractors. The Grantee or
contractor/subcontractor shall pay the costs of such insurance. The Grantee shall furnish
separate certificates of insurance and policy endorsements from each
contractor/subcontractors as evidence of compliance with the insurance requirements of
this Franchise.
The Grantee is responsible for ensuring compliance with all of the insurance requirements
stated herein. Failure by the Grantee, its agents, employees, officers,
contractor/subcontractors to comply with the insurance requirements stated herein shall
constitute a material breach of this Franchise.
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, the Grantee warrants continuation of
coverage, either through policy renewals or the purchase of an extended discovery period,
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 20
if such extended coverage is available, for not less than three years from the date of
Franchise termination, and/or conversion from a “claims made” form to an “occurrence”
coverage form.
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 in this provision shall affect and/or alter the application of
any other provision contained within this Franchise.
B. Risk Assessment by Grantee
By requiring such minimum insurance, the County shall not be deemed or construed to
have assessed the risks that may be applicable to the Grantee under this Franchise, nor shall
such minimum limits be construed to limit the limits available under any insurance
coverage obtained by the Grantee. The Grantee shall assess its own risks and, if it deems
appropriate and/or prudent, maintain greater limits and/or broader coverage.
C. Minimum Scope and limits of Insurance. Coverage shall be at least as broad as and with
limits not less than the following:
(i) General Liability
Insurance Services Office form number (CG 00 01) covering
COMMERCIAL GENERAL LIABILITY including XCU coverage:
$2,000,000 combined single limit per occurrence by bodily injury, personal
injury, and property damage; and for those policies with aggregate limits, a
$3,000,000 aggregate limit.
(ii) Automobile Liability
Insurance Services Office form number (CA 00 01) covering BUSINESS
AUTO COVERAGE, symbol 1 “any auto”; or the appropriate coverage
provided by symbols 2, 7, 8, or 9: $1,000,000 combined single limit per
accident for bodily injury and property damage if the use of motor vehicles
is contemplated.
(iii) 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: Statutory
requirements of the state of residency.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 21
(iv) Stop Gap/Employers Liability
Coverage shall be at least as broad as the indemnification, 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: $1,000,000.
D. Minimum Limits of Insurance - Construction Period
Prior to commencement of Construction and until Construction is complete and approved
by the Grantee and the County, the Grantee shall cause the Construction Contractor and
related professionals to procure and maintain insurance against claims for injuries to
persons or damages to property which may arise from, or in connection with the activities
related to this Franchise. The Grantee and the County shall be named as additional insureds
on liability policies except Workers Compensation and Professional Liability. The cost of
such insurance shall be paid by the Grantee and/or any of the Grantee’s
contractor/subcontractors. The Grantee shall cause the Construction Contractor and related
professionals to maintain limits no less than the following:
(i) Commercial General Liability: $2,000,000 combined single limit per
occurrence for bodily injury, personal injury and property damage and
$3,000,000 in the aggregate.
(ii) Automobile Liability: $1,000,000 combined single limit per accident for
bodily injury and property damage.
(iii) For engineering/design work Professional Liability, Errors & Omissions:
$1,000,000, Per Claim and in the Aggregate.
(iv) Workers Compensation: Statutory requirements of the state of residency.
(v) Stop Gap or Employers Liability Coverage: $1,000,000.
E. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to, and approved by, the
County. The deductible and/or self-insured retention of the policies shall not apply to the
Grantee’s liability to the County and shall be the sole responsibility of the Grantee.
F. Other Insurance Provisions
The insurance policies required in this Franchise are to contain, or be endorsed to contain,
the following provisions:
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 22
(i) All Liability Policies except Professional and Workers Compensation.
a. The County, its officers, officials, employees, and agents are to be
covered as additional insured with respect to liability arising out of activities
performed by or on behalf of the Grantee/contractor in connection with this
Franchise. Such coverage shall include Products-Completed Operations.
b. To the extent of the Grantee’s/contractor’s negligence, the
Grantee’s/contractor’s insurance coverage shall be primary insurance with
respect to the County, its officers, officials, employees, and agents. Any
insurance and/or self-insurance maintained by the County, its officers,
officials, employees, or agents shall not contribute with the Grantee’s
insurance or benefit the Grantee in any way.
c. The Grantee’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.
(ii) 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 45 days prior written notice has been given to the County.
In the event of said cancellation or intent not to renew, the Grantee shall
obtain and furnish to the County evidence of replacement insurance policies
meeting the requirements of this Section by the cancellation date. Failure to
provide proof of insurance could result in suspension of the Franchise.
G. Acceptability of Insurers
Unless otherwise approved by the County, insurance is to be placed with insurers with a
Bests’ rating of no less than A-VII, 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 the County.
If, at any time, the foregoing policies shall fail to meet the above requirements, the Grantee
shall, upon notice to that effect from the County, promptly obtain a new policy, and shall
submit the same to the County, with appropriate certificates and endorsements, for
approval.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 23
H. Verification of Coverage
The Grantee shall furnish the County with certificates of insurance and endorsements
required by this Franchise. 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 the
County prior to the commencement of activities associated with the Franchise. The County
reserves the right to require complete, certified copies of all required insurance policies at
any time.
I. Subcontractors
The Grantee shall include all subcontractors as insured under its policies or shall require
separate certificates of insurance and policy endorsements from each subcontractor. If the
Grantee is relying on the insurance coverage provided by subcontractors as evidence of
compliance with the insurance requirements of this Franchise, then such requirements and
documentation shall be subject to all of the requirements stated herein.
J. Insurance Review
In consideration of the duration of this Franchise, the parties agree that the Insurance
section herein, at the discretion of the County Risk Manager, may be reviewed and adjusted
with each amendment and within ninety (90) days of the end of the first five (5) year period
of the term of this Franchise and the end of each successive five (5) year period thereafter.
Any adjustments made as determined by the County Risk Manager, shall be in accordance
with reasonably prudent risk management practices and insurance industry standards and
shall be effective on the first day of each successive five (5) year period.
Adjustment, if any, in insurance premium(s) shall be the responsibility of the Grantee. Any
failure by the County to exercise the right to review and adjust at any of the aforementioned
timings shall not constitute a waiver of future review and adjustment timings.
18.2 Grantee shall furnish the County with original certificates and a copy of the amendatory
endorsements, including but not necessarily limited to the additional insured endorsements,
evidencing the insurance requirements of the Grantee before commencement of the work.
18.3 In satisfaction of the insurance requirements set forth in this Section 18, Grantee may self-
insure against such risks in such amounts as are consistent with good utility practice. Grantee shall
provide the County with reasonable written evidence that Grantee is maintaining such self-
insurance.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 24
Section 19. Security Device.
In accordance with RCW 36.32.590 and SCC 13.10.104(4), Grantee is a unit of local government
and shall not be required to secure the performance of a County-issued permit with a surety bond
or other financial security device.
Section 20. Annexation.
If any Public Right-of-Way, or portion thereof, is incorporated into the limits of any city or town,
it shall not be subject to the terms of this Franchise.
Section 21. Vacation.
If any Public Right-of-Way, or portion thereof, is vacated, it shall not be subject to the terms of
this Franchise. The County may retain a utility easement as allowed under RCW 36.87.140 when
a Public Right-of-Way, or portion thereof, is vacated. The Grantee may request the County retain
a utility easement; however in no case shall the County be obligated to retain such an easement.
The County shall not be liable for any damages or loss to the Grantee by reason of such vacation
and termination.
Section 22. Assignment.
22.1 Neither this Franchise nor any interest therein shall be leased, sold, partitioned, transferred,
assigned, disposed of, or otherwise subject to a change in the identity of the Grantee (each such
activity, a “Transfer”), in whole or in part, in any manner, without the prior written consent of the
County Council by motion duly passed for that purpose. Should any such Transfer be approved by
the County, then each and every one of the provisions, conditions, regulations and requirements
contained in this Franchise shall be binding upon the approved transferee beginning on the date of
the Transfer, and all privileges, as well as all obligations and liabilities of the Grantee shall inure
to such transferee equally as if such transferee was specifically mentioned wherever the Grantee
is named herein.
22.2 In the case of a Transfer to secure indebtedness, whether by mortgage or other security
instrument, the County’s consent shall not be required unless and until the secured party elects to
realize upon the collateral. The Grantee shall provide prompt, written notice to the County of any
assignment to secure indebtedness.
22.3 Any attempt by Grantee to Transfer this Franchise in violation of this Section 22 shall
constitute a material breach by Grantee.
Section 23. County Enforcement of Franchise; No Waiver.
23.1 If the County reasonably believes that Grantee has failed to perform any obligation
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GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 25
under this Franchise, the County and Grantee agree to use the franchise dispute resolution
process in SCC 13.80.125.
23.2 In the event of a conflict between this Franchise and SCC 13.80.125, the provisions
of this Franchise shall govern and the Snohomish County Hearing Examiner (“Hearing
Examiner”) shall have the authority to resolve any discrepancies.
23.3 The determination as to whether a violation of this Franchise has occurred shall be within
the discretion of the County.
23.4 In the event Grantee does not cure a Franchise violation in accordance with the terms of
a written order to comply with the terms of the Franchise issued by the County Engineer, or any
amendments thereto, including any amendments following an appeal by the Grantee to the
Hearing Examiner under SCC 13.80.125, then the County may:
23.4.1 Recommend the revocation of this Franchise pursuant to the procedures in section
24; or,
23.4.2 Pursue any other legal or equitable remedy available under this Franchise or any
applicable laws.
23.5 In addition to the remedies provided herein, the County reserves the right to pursue any
remedy authorized by law to compel Grantee, and/or its permitted successors or assigns, to
comply with the terms of this Franchise, including the recovery of damages to or costs incurred
by the County by reason of Grantee’s failure to comply with the terms of this Franchise.
23.6 The pursuit of any right or remedy by the County under this Section 23 shall not prevent
the County from thereafter declaring a forfeiture or revocation of this Franchise for breach of the
conditions herein.
23.7 Failure of the County to exercise any rights or remedies under this Franchise shall not
constitute a waiver of any such right or remedy and shall not prevent the County from pursuing
such right or remedy at any future time.
23.8 Nothing in this Franchise is or was intended to confer third-party beneficiary status on any
person or entity to enforce the terms of this Franchise.
Section 24. Termination, Revocation, and Forfeiture.
If the Grantee (i) defaults on any material term or condition of this Franchise; (ii), willfully violates
or fails to comply with any of the provisions of this Franchise; or, (iii) through willful misconduct
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GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 26
or gross negligence fails to heed or comply with any notice given the Grantee by the County under
the provisions of this Franchise, then the Grantee shall, at the election of the County Council,
forfeit all rights conferred hereunder and the Franchise may be terminated by the County Council
using the process described in SCC 13.80.130. Upon termination for any cause, all rights of the
Grantee granted hereunder or under any right-of-way use permit shall cease, and the Grantee shall
immediately commence to remove or, with approval of the County Engineer, abandon in place all
of the Grantee Facilities from the Public Rights-of-Way in accordance with Section 14 above.
Section 25. County Ordinances and Regulations – Reservation of Police Power.
Nothing in this Franchise shall restrict the County’s ability to adopt and enforce all necessary and
appropriate ordinances regulating the performance of the conditions of the Franchise, including,
but not limited to, any ordinances adopted under the County’s police powers in the interest of
public safety and for the welfare of the public, or to implement the authorities reserved in Sections
15.4 and 15.5. The County shall have the authority at all times to control by appropriate
regulations, including design standards, and utility accommodation policies, the location,
elevation, manner of construction, and maintenance of any Grantee Facilities located within any
Public Right-of-Way, and the Grantee shall promptly conform with all such regulations, unless
compliance would cause the Grantee to violate other requirements of law. In the event of a conflict
between the regulatory provisions of this Franchise and any other ordinance(s) enacted under the
County’s police power authority, such other ordinance(s) shall take precedence over the provisions
set forth herein.
Section 26. Eminent Domain, Powers of the People.
This Franchise is subject to the power of eminent domain and the right of the County Council or
the people acting for themselves through initiative or referendum to repeal, amend or modify the
Franchise in the interest of the public. In any proceeding under eminent domain, the Franchise
itself shall have no value.
Section 27. Survival and Force Majeure.
27.1 Until such time as all of the Grantee Facilities have been removed from the Public Rights-
of-Way in accordance with Section 14.1 above, or have been deactivated or abandoned in place in
accordance with Sections 14.2 and 14.3 above, all of the provisions, conditions and requirements
contained in the following sections of this Franchise shall survive the expiration, revocation,
forfeiture or early termination of the Franchise: (i) Section 4 (Regulation of Use; Permits
Required); (ii) Section 5 (Emergency Work); (iii) Section 6 (Compliance with Applicable Laws;
Performance Standards); (iv) Section 7 (Restoration of Public Rights-of-Way); (v) Section 8
(Record Plans, Record Drawings, and Records of Grantee Facility Locations); (vi) Section 10
(Undergrounding of Grantee Facilities); (vii) Section 12 (Hazardous Materials); (viii) Section 13
(Dangerous Conditions, Authority for County to Abate); (ix) Section 14 (Removal of Grantee
Facilities; Abandonment of Grantee Facilities); (x) Section 15 (Fees, Compensation for Use of
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 27
Public Rights-of-Way and Taxes); (xi) Section 16 (Hold Harmless and Indemnification); (xii)
Section 17 (Limitation of County Liability); (xiii) Section 18 (Insurance); (xiv) Section 19
(Performance Security); and (xv) Section 23 (County Enforcement of Franchise; No Waiver).
27.2 After such time as all Grantee Facilities have been either removed from the Public Rights-
of-Way or abandoned/deactivated in place to the County’s satisfaction pursuant to Section 14
above, only the following provisions shall survive the expiration or earlier termination of the
Franchise: (i) Section 8 (Record Plans, Record Drawings, and Records of Grantee Facility
Locations); (ii) Section 12 (Hazardous Materials); (iii) Section 16 (Hold Harmless and
Indemnification); and (iv) Section 17 (Limitation of County Liability).
27.3 If the Grantee is prevented or delayed in the performance of any of its obligations under
this Franchise by reason of a Force Majeure, then Grantee’s performance shall be excused during
a Force Majeure occurrence. Upon removal or termination of the Force Majeure occurrence the
Grantee shall promptly perform its obligations in an orderly and expedited manner using industry
accepted best practices. Grantee’s performance shall not be excused by economic hardship nor by
the misfeasance or malfeasance of its directors, officers, or employees.
27.4 For the purposes of this Franchise, “Force Majeure” means any event or circumstance (or
combination thereof) and the continuing effects of any such event or circumstance (whether or not
such event or circumstance was foreseeable or foreseen) that delays or prevents performance by
the Grantee of any of its obligations under this Franchise, but only to the extent that and for so
long as the event or circumstance is beyond the reasonable control of the Grantee and shall include,
without limitation, all of the following events and circumstances: (i) acts of nature, including
volcanic eruption, landslide, earthquake, flood, lightning, tornado or other unusually severe storm
or environmental conditions, perils of the sea, wildfire or any other natural disaster; (ii) acts of
public enemies, armed conflicts, act of foreign enemy, acts of terrorism (whether domestic or
foreign, state-sponsored or otherwise), war (whether declared or undeclared), blockade,
insurrection, riot, civil disturbance, revolution or sabotage; (iii) any form of compulsory
government actions, acquisitions or condemnations, changes in applicable law, export or import
restrictions, customs delays, rationing or allocations; (iv) accidents or other casualty, damage, loss
or delay during transportation, explosions, fire, epidemics, quarantine or criminal acts; (vi)
inability, after the use of commercially reasonable efforts, to obtain from any governmental
authority any permit, approval, order, decree, license, certificate, authorization or permission to
the extent required by applicable law; (vii) inability, after the use of commercially reasonable
efforts, to obtain any consent or approval required by the Franchise; and (viii) third-party litigation
contesting all or any portion of the Franchise or Grantee’s rights under this Franchise.
Section 28. Governing Law and Stipulation of Venue.
This Franchise and all use of Public Rights-of-Way granted herein shall be governed by the laws
of the State of Washington, unless preempted by federal law. Any action relating to this Franchise
shall be brought in the Superior Court of Washington for Snohomish County, or in the case of a
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 28
federal action, the United States District Court for the Western District of Washington at Seattle,
unless an administrative agency has primary jurisdiction.
Section 29. Title VI Assurances and Non-Discrimination.
29.1 The following assurances are required by the Washington State Department of
Transportation (WSDOT) Local Agency Guidelines Manual (Publication Number M 36-63) as a
condition to Snohomish County’s receipt of Federal financial assistance from the U.S. Department
of Transportation (USDOT), through WSDOT. The text of Standard Assurance Appendix D,
Clauses for Construction/Use/Access to Real Property Acquired Under the Activity, Facility or
Program, comes from the USDOT Standard Title VI/Non-Discrimination Assurances (WSDOT
Form APP28.94) with minor revisions for clarity.
29.2 Within this Section 29, the following statutory and regulatory authorities are referred to as
the “Acts” and “Regulations”: (i) Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et
seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); (ii) 49
C.F.R. Part 21 (entitled Non-discrimination In Federally-Assisted Programs Of The Department
Of Transportation-Effectuation Of Title VI Of The Civil Rights Act Of 1964); and (iii) 28 C.F.R.
section 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights
Act of 1964).
29.3 The Grantee for himself/herself, his/her heirs, personal representatives, successors in
interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree that (1)
no person on the ground of race, color, or national origin, will be excluded from participation in,
denied the benefits of, or be otherwise subjected to discrimination in the use of the Public Rights-
of-Way as that term is defined in this Franchise, (2) that in the construction of any improvements
on, over, or under such land, and the furnishing of services thereon, no person on the ground of
race, color, or national origin, will be excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination, (3) that the Grantee will use the Public Rights-of-Way
in compliance with all other requirements imposed by or pursuant to the Acts and Regulations, as
amended, set forth in this Assurance.
29.4 In the event of breach of any of the above Non-discrimination covenants, the County will
have the right to terminate the Franchise in accordance with the provisions of this Franchise.
Section 30. Severability.
If any section, sentence, clause, phrase or provision of this Franchise or the application of such
provision to any person or entity 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, phrase or provision of this Franchise nor
the application of the provision at issue to any other person or entity.
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 29
Section 31. Notice and Emergency Contact.
31.1 Notices. All notices shall be in writing and shall be sufficiently given and served upon the
other party by one of the following methods:
31.1.1 Personal service; or
31.1.2 Service by mailing two (2) copies, postage prepaid, one by ordinary first
class mail and the other by certified mail, return receipt requested and addressed as provided
below. Service by mail shall be presumed effective upon the third business day following the day
upon which the notice was placed in the mail.
Snohomish County
Department of Public Works
3000 Rockefeller Avenue, M/S 607
Everett, WA 98201
City of Arlington
Public Works Department
238 Olympic Ave.
Arlington, WA 98223
The Grantee shall also provide the County a current emergency contact name (or title) and phone
number available 24-hours a day, seven days a week. The Grantee shall promptly notify the County
of any change in the notice address or emergency contact (or title) and phone number.
Section 32. Acceptance.
Within ninety (90) days after the passage and approval of this Franchise by the County Council,
the Franchise may be accepted by the Grantee by its filing with the County Council an
unconditional written acceptance thereof. Failure of the Grantee to so accept the Franchise within
said period of time shall be deemed a rejection thereof by the Grantee, and the rights and privileges
herein granted shall automatically cease and terminate, unless the time period is extended by
motion duly passed for that purpose.
Section 33. Effective Date.
This Franchise shall take effect, if at all, on the date on which each and every one of the following
conditions have been met (the “Effective Date”): (i) ten (10) days have passed since the County
Executive executed this Franchise, or this ordinance was otherwise enacted; (ii) the Grantee
executes a copy of this Franchise and returns it to the County Council within the time provided in
Section 32 above; (iii) the Grantee presents to the County acceptable evidence of insurance as
required in Section 18 above; and (iv) the Grantee pays all applicable fees as set forth in Section
15 above.
17th July 24
X
July 18, 2024
046
ORDINANCE NO. 24-046
GRANTING A NON-EXCLUSIVE FRANCHISE AUTHORIZING LIMITED USE OF THE PUBLIC
ROAD RIGHTS-OF-WAY IN SNOHOMISH COUNTY, WASHINGTON TO THE CITY OF
ARLINGTON pg. 31
ACCEPTANCE:
The provisions of this Franchise are agreed to and hereby accepted. By accepting this Franchise,
the City of Arlington covenants and agrees to perform and be bound by each and all of the terms
and conditions imposed by the Snohomish County Charter, Snohomish County Code, and this
Franchise.
Dated: _, 20 CITY OF ARLINGTON
By:
Printed Name:
Title:
CERTIFICATION OF COMPLIANCE WITH CONDITIONS AND EFFECTIVE DATE:
I certify that I have received confirmation that: (1) the Grantee returned a signed copy of this
Franchise to the County Council within the time provided in Section 32; (2) the Grantee has
presented to the County acceptable evidence of insurance as required in Section 18 of this
Franchise; and (3) the Grantee has paid all applicable processing costs and fees as set forth in
Section 15 of this Franchise.
THE EFFECTIVE DATE OF THIS ORDINANCE IS:
By:
Name:
Title:
Engineer’s Report – Page 1
City of Arlington – Utility Franchise (24-101768 RWE)
COUNTY ENGINEER’S REPORT
FRANCHISE – WATER & WASTEWATER FACILITIES
CITY OF ARLINGTON
Pursuant to chapter 36.55.010 Revised Code of Washington (RCW), Section 9.20 Snohomish
County Charter, and Title 13 of the Snohomish County Code (SCC), the City of Arlington (“City”)
has applied to Snohomish County (“County”) for a franchise to construct, maintain, operate,
replace, and repair its water distribution and wastewater collection facilities in County public
rights-of-way, and for no other purpose or use whatsoever. Chapter 36.55 RCW and Snohomish
County Charter Section 9.20 authorize the County to grant nonexclusive franchises for use of
County public rights-of-way. Snohomish County’s franchise procedure is contained in Chapter
13.80 SCC. The County Engineer has examined the application and submits the following report
to council in accordance with SCC 13.80.040.
FINDINGS
1. Applicant
The City of Arlington is a Washington municipal corporation that incorporated in 1903. The city
limits comprise an area of approximately 9.7 square miles with an estimated population 21,740.
It is organized under the mayor-council form of government. The mayor and seven members of
the city council are elected to serve 4-year terms. The mayor serves as the chief executive
officer. A city administrator, under the mayor's direction, oversees daily operations.
The City operates a Group A – Community – Public Water System, ID 02950K, which provides
service to a population of 18,235 through approximately 5,900 customer accounts in the city
limits, its urban growth area (UGA), and surrounding rural residential and agricultural lands. The
City operates a wastewater collection, treatment, disposal, and reuse system which provides
service to approximately 16,116 residents through 4,650 residential connections and 520
commercial/industrial facilities within the city limits and UGA.
Snohomish County has previously granted utility franchises to the City for construction and
maintenance of water and wastewater system facilities in the county rights-of-way by orders
approved on August 14, 1947, recorded in V47 P186; on June 23, 1969, recorded in V48 P557-
560; and by Ordinance 99-043 approved on July 7, 1999, recorded under Auditors File Number
199912130669, with an expiration date of August 8, 2024.
2. Description of County Roads Included in the Proposed Franchise
Approximately 60% of the City's water service area (WSA) is in unincorporated Snohomish
County, which extends beyond city limits to encompass an area of approximately 25.3 square
Snohomish County
Public Works
Engineer’s Report – Page 2
City of Arlington – Utility Franchise (24-101768 RWE)
miles. The WSA extends north to the Stillaguamish River, south to 152nd St NE, east to 115th Ave
NE, and to the Burlington Northern Santa Fe Railway located a mile or two west of Interstate 5.
The proposed franchise area includes all county rights-of-way located in the portions of
unincorporated Snohomish County within the township, range, and sections below:
Township Range Sections
31N 4E 1, 12, 13
31N 5E 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
17, 18, 19, 20, 23, 24, 25, 26, 27, 34, 35, 36
31N 6E 7, 8, 17, 18, 19, 30
32N 5E 34
3. Description of Facilities
The City’s WSA contains approximately 96 miles of water main ranging in size from 2 inches to
16 inches. More than 89% of all water mains in the water system are constructed of ductile iron
pipe (DIP). Most of the remaining mains are constructed of asbestos cement (AC). All new water
main installations are required to use DIP. The City’s drinking water is supplied from two
groundwater wellfields with additional supply from PUD No. 1 of Snohomish County under a
wholesale agreement. In addition to its water facilities in the county right-of-way, the City has a
6” sewer force main along Cemetery Rd and 8” gravity sewer mains in 193 St NE/84 Ave NE
which provide service to The Eagles subdivision.
Work proposed in the county right-of-way would consist of the construction, operation, and
maintenance of water distribution and sewage collection facilities, such as water mains, water
services, fire hydrants, blow-off valves, sample stations, water services, sewer mains, and sewer
laterals that provide service to their customers. Facility access is needed for reading water
meters, fire hydrants usage, routine maintenance, and emergency repairs.
4. Insurance
The City has agreed to obtain and maintain insurance for the term of the franchise in
accordance with SCC 13.10.100 and Section 18 of the franchise. The Risk Management Division
has reviewed and approved the insurance requirements in the proposed franchise. The
franchise will not take effect until the City provides evidence of insurance acceptable to the Risk
Management Division, as provided in Section 33 of the franchise.
5. Term of Franchise
The initial term of the proposed franchise is for a period of ten (10) years (the “Initial Term”),
beginning on the Effective Date as defined in Section 33 of the franchise, and automatically
renew for an additional term of ten (10) years (the “Extended Term”). The County would have
the right to unilaterally open negotiations with the City at any time after the Initial Term, as
more fully described in franchise Section 3.3.
Engineer’s Report – Page 3
City of Arlington – Utility Franchise (24-101768 RWE)
6. Provisions of Franchise
Under the proposed franchise, the City will:
· Obtain a right-of-way use permit pursuant to Title 13 SCC prior to commencing any work
within the Public Rights-of-Way, as more fully described in franchise Section 4.
· Comply with all applicable federal, state and local laws, rules and regulations (including,
but not limited to, the County’s comprehensive plan, zoning code, and other
development regulations), as more fully described in franchise Section 6.
· Promptly, at its own expense, relocate or remove its facilities from county rights-of-way
when the County Engineer determines that it is necessary due to: traffic conditions;
public safety; dedications, improvements and vacations of rights-of-way; and other
reasons more fully described in franchise Section 9.
· In no event abandon in place all or any portion of their facilities without the express
written consent of the county as more fully described in franchise Section 14.
· Compensate the county for its expenses incurred in the examination and report of the
proposed franchise, as more fully described in franchise Section 15.2.
· Indemnify, defend and hold harmless County Parties from any and all claims arising out
of its use of public rights-of-way under the proposed franchise, as more fully described
in franchise Section 16.
· Be exempt from the requirement to secure the performance of a County-issued permit
with a surety bond or other financial security device in accordance with RCW 36.32.590
and SCC 13.10.104(4), as more fully described in franchise Section 19.
· Not assign any franchise rights or obligations without prior written consent of the
county, as more fully described in franchise Section 22.
· Comply with Title VI Assurances and Non-Discrimination requirements, as more fully
described in franchise Section 29.
COUNTY ENGINEER’S RECOMMENDATION
Based on the foregoing findings and pursuant to SCC 13.80.040, the County Engineer
recommends the County Council grant a right-of-way franchise to the City of Arlington with an
initial term of ten (10) years and an automatic renewal for an additional term of ten (10) years,
under the terms and conditions of County Charter, County Code and the proposed ordinance
granting a franchise.
SNOHOMISH COUNTY PUBLIC WORKS
Douglas W. McCormick, P.E. Date
Deputy Director/County Engineer
Prepared by:
Mary Madole, Senior Planner Date
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99thAveNE
184th St NE
Jordan Rd
240th St NE
115th Ave NE
Dike Rd
59th Ave NE
35th Ave NE
27th Ave NE
4th Ave NW
12th Ave NW
Burn Rd
Rd
15th Ave NE
139th
Ave
NE
115th
AveNE
Jim Creek Rd
LakeArmstrongRd
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59th Ave NE
71st Ave NE
Old 99 North
40th Av
36th Ave NW
28th Av
276th St NW
SilvanaTerraceRd
220th St NW
36th Ave NW
212th St NW
Pioneer Hwy
28th Ave NW
36th Ave NW
204th St NW
236th St NW
200th St NE
236th St NE
19th Ave NE
188th St NE
3rd Ave NE
19th Ave NE
ood Rd
30th Ave NW
16th Ave NW
McRae Rd NE
156th St
NE
Forty Five Rd
11th Ave NE
148th St NE
23rd Ave NE
140th St NE
152nd St NE
Smokey Point Blvd
132nd St NE
Hilltop Rd
Wade Rd McElroy Rd
132nd St NE 132ndStNE
StehrRd
Tra
JordanTrailsRd
116th St NE
99th Ave NE
124th St NE
100th St NE
108th St NE
84th St NE 131st Ave NE
115th Ave NE
aterWorksRd
268th St NW
32nd Ave NW
40th Ave NW
172nd St NW
ELakeGoodwin
Rd
140th St NW
Smokey
PointBlvd
27th Ave NE
Kunde Rd
228th St NE127th Ave NE
135th Ave NE
249th St NE
208th St NE204th St NE
51st Ave NE
51st Ave NE
108th St NE
StateAve
84th St NE 84th St NEve NE
252nd St NE
wy
Stanwood-Bryant Rd
159th Ave NE
34
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136th St NE
67th Ave NE
67th Ave NE
Happy Valley Rd
188th St NE 47th Ave NE
McRaeRd
NW
88th St NE48th Dr NE
JordanRd
ArlingtonHeights Rd
SillRd
LarsonRd
Norman Rd
PioneerHwy
128th St NE
19th Ave NE
Pioneer Hwy E
7th Ave NE
Ji
Burn Rd
123rd Ave NE
116th St NE
115th Ave N
Burn Rd
Arlington
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99thAveNE
184th St NE
Jordan Rd
240th St NE
115th Ave NE
Dike Rd
59th Ave NE
35th Ave NE
27th Ave NE
4th Ave NW
12th Ave NW
Burn Rd
Rd
15th Ave NE
139
t
h
A
ve
NE
115th
AveNE
Jim Creek Rd
LakeArmstrongRd
19th Ave NE
55th Ave NE
47th Ave NE
35th Ave NE
59th Ave NE
71st Ave NE
Old 99 North
40th Av
36th Ave NW
28th Av
276th St NW
SilvanaTerraceRd
220th St NW
36th Ave NW
212th St NW
Pioneer Hwy
28th Ave NW
36th Ave NW
204th St NW
236th St NW
200th St NE
236th St NE
19th Ave NE
188th St NE
3rd Ave NE
19th Ave NE
ood Rd
30th Ave NW
16th Ave NW
McRae Rd NE
156th St
NE
Forty Five Rd
11th Ave NE
148th St NE
23rd Ave NE
140th St NE
152nd St NE
Smokey Point Blvd
132nd St NE
Hilltop Rd
Wade Rd McElroy Rd
132nd St NE 132ndStNE
StehrRd
Tra
JordanTrailsRd
116th St NE
99th Ave NE
124th St NE
100th St NE
108th St NE
84th St NE 131st Ave NE
115th Ave NE
aterWorksRd
268th St NW
32nd Ave NW
40th Ave NW
172nd St NW
ELakeGoodwin
Rd
140th St NW
Smokey
PointBlvd
27th Ave NE
Kunde Rd
228th St NE127th Ave NE
135th Ave NE
249th St NE
208th St NE204th St NE
51st Ave NE
51st Ave NE
108th St NE
StateAve
84th St NE 84th St NEve NE
252nd St NE
wy
Stanwood-Bryant Rd
159th Ave NE
34
t
h
A
v
e
N
E
136th St NE
67th Ave NE
67th Ave NE
Happy Valley Rd
188th St NE 47th Ave NE
McRaeRd
NW
88th St NE48th Dr NE
JordanRd
ArlingtonHeights Rd
SillRd
LarsonRd
Norman Rd
PioneerHwy
128th St NE
19th Ave NE
Pioneer Hwy E
7th Ave NE
Ji
Burn Rd
123rd Ave NE
116th St NE
115th Ave N
Burn Rd
Arlington
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Marysville
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Snohomish County
Area
Detailed¨
0 1 Miles
Exhibit A. City of Arlington Proposed Utility Franchise Area
Key to Features:
Local Roads
Freeways
Arterial Roads
(The proposed franchise applies exclusively to county rights-of-way located in the portions of unincorporated Snohomish County depicted above.)
Waterbodies
Unincorporated
Snohomish County
Snohomish County disclaims any warranty of merchantability or warranty of fitness of this map for any particular purpose, either express or implied.
Any user of this map assumes all responsibility for use thereof, and further agrees to hold Snohomish County harmless from and against any damage,
loss, or liability arising from any use of this map.
Proposed Franchise Area! ! ! ! ! !
Cities
City of Arlington Council Agenda Bill
Item: NB #1 Attachment F
COUNCIL MEETING DATE: September 16, 2024
Airport Property Appraisal
Director’s Memo, Lease Rate Table, and Appraisal
Airport; Monroe Whitman, Operations Manager 360-403-3471 EXPENDITURES REQUESTED: Professional Services BUDGET CATEGORY: N/A BUDGETED AMOUNT: LEGAL REVIEW:
requesting City Council approve the new lease rates for the next five-year period. The appraisal was completed in April by Fred C. Strickland and Associates, LLC.
Value for the properties they control. The FAA requires these property appraisals to be conducted at a minimum of every five years.
set lease rates based on this document during that period.
Arlington Municipal Airport
----------------------------------------------------------------------------
18204 59th Avenue Arlington, WA 98223
TO: City Council
FROM: Marty Wray
DATE: September 9, 2024
SUBJECT: Airport Property Appraisal
The FAA requires that all federally obligated airports obtain a property appraisal from an
MAI certified appraiser at a minimum of every five years to ensure the airport is charging
Fair Market Value (FMV) for its land. The last property appraisal for Arlington
Municipal Airport was completed in 2019.
This spring, airport staff sent a Request for Proposals (RFP) to MAI property appraisal
firms with relevant airport experience. Fred C. Strickland and Associates, LLC was
selected to conduct the appraisal.
In determining rental rates, an airport must try to get Fair Market Value, while at the
same time keeping the rates low enough to attract new customers and retain existing
customers. Airports throughout the region were compared for “airside” portions of the
appraisal. Local sales of industrial and commercial properties were used for the
“landside” evaluations. The methodology used to determine these rates is included in the
final report. I have also included the current lease rate table with this agenda bill.
Lease Rate Table
Land Use 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Arlington Municipal Airport
18204 59th Drive Northeast
Arlington, WA 98223
FCS File Number 2024-008
Fred C. Strickland
253.606.4868
Freds@nwlink.com
Fax 253.851.2817
PO Box 2478
Gig Harbor WA 98335
April 25th, 2024
Marty Wray
Airport Director
Arlington Municipal Airport
18204 59th Drive Northeast
Arlington, WA 98223
Re: Rent Study
Arlington Airport
FCS File Number: 2024-008
Dear Mr. Wray:
This Market Rent Analysis has been prepared with the intent to be in conformity with the
requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of
the Appraisal Institute, which includes the Uniform Standards of Professional Practice (USPAP) as
promulgated by The Appraisal Foundation.
AIRPORT SITES DESCRIPTION
Airport Use Categories
The individual airport sites are considered in groups that reflect similar utility.
Aviation Sites
Sites with direct access to runways or taxiways. Aviation/T-Hangar uses include those properties on
which hangars or commercial aviation activities are typically located with direct taxiway or runway
access. No differentiation is made between sites with runway frontage versus more remote sites
with taxiway or ramp access.
Aviation Site Parcel Numbers
1-7, 14-17, 22, 23, 26, 28, 30a, 31, 32b, 33
34a/b, 35, 37, 44-52, 54, 56-65, 399-402
Non-Aviation Sites
Sites that do not have direct access to runways or taxiways. Some of these sites may be subject to
aviation-related use restrictions, some may not. They are considered industrial in nature.
Non-Aviation Sites Parcel Numbers
21, 27, 30b, 32a, 38, 40, 41, 53, 55, 67-88
90-103, 105-120, 300, 301, 302
Former Lumber Yard Site Industrial
A large site previously used as a lumber mill operation is located at the northwesterly corner of the
airport. This site is significantly larger than the majority of the airport sites, and would typically be
utilized as an Aviation Special Purpose site.
Former Lumber Yard Sites Parcel Numbers
201-204
Highway Commercial
Sites located on the southeasterly corner of 172nd Street NE and 51st Avenue NE. This is a
commercial area with no aviation-oriented component.
Highway Commercial Sites Parcel Numbers
500, 501
Ultralight Center
This site is located on the northwesterly section of the airport and has remote access relative to the
other airport properties. Sewer has been extended to the streets in the area.
Ultralight Center
200a/b Site Parcel Numbers
It is my opinion that the indicated annual rent and the indicated monthly rent for each of the sites as
of April 23rd, 2024, is as follows:
The report that follows summarizes the assignment, describes the area and the subject property,
and explains the techniques and reasoning leading to the final opinion of market rent.
Respectfully submitted,
Fred C. Strickland, MAI, ASA, SRA, ARA
State of Washington Certification 1100429
Annual
Category Lease Rate (sf)
Aviation $0.36
Non-Aviation $0.45
Commerial $1.01
Parcel 200a and 200b Ultralight $0.31
Parcel 201 and 204 Mill Site $0.27
T Hangar Sites $0.32
TABLE OF CONTENTS
Letter of Transmittal ....................................................................................................................... i
Table of Contents .......................................................................................................................... iv
Subject Photographs ...................................................................................................................... v
Factual Description
Intended Use and User .................................................................................................................. 1
Property Identification ................................................................................................................... 2
Property Rights .............................................................................................................................. 4
Purpose .......................................................................................................................................... 4
Scope ............................................................................................................................................. 6
Location Description ...................................................................................................................... 7
Property Description ................................................................................................................... .18
Zoning .......................................................................................................................................... 20
Taxes and Assessments ................................................................................................................ 22
Analysis of Data and Opinions of Appraisers
Highest and Best Use…………………………………………………..………………………………………………………..….25
Market Rent Analysis ................................................................................................................... 28
Airport Survey…………………………………………………………………………………………………………………………..30
Sales Comparison Approach – Site Valuation .............................................................................. 39
Reconciliation .............................................................................................................................. 73
Certification ................................................................................................................................. 75
Qualifications ............................................................................................................................... 77
Assumptions and Limiting Conditions .......................................................................................... 80
Extraordinary Assumptions and/or Hypothetical Conditions ....................................................... 85
SUBJECT PHOTOGRAPHS
PHOTOGRAPHS FROM AIRPORT’S WEBSITE
SUBJECT PROPERTY AT THE INTERSECTION
OF 172ND STREET NE (HWY 531) AND 59TH AVENUE NE
VIEW OF T- HANGARS NORTHERLY OF 172ND STREET NE (HWY 531) AND 59TH AVENUE NE
VIEW OF SUBJECT PROPERTY AIRPORT OFFICE
VIEW OF NEW HANGARS CONSTRUCTED, WEST SIDE OF SUBJECT AIRPORT
AVIATION HANGAR AT NORTHEAST END OF AIRPORT
OLDER HANGARS NORTH OF AIRPORT OFFICE
VIEW FROM THE NORTHWEST OF AIRPORT LOOKING SOUTHERLY
FIXED BASE OPERATION – FUELING STATION
ELLIE’S RESTAURANT FROM AIRPORT AREA
ELLIE’S RESTAURANT STREETSIDE
ULTRALIGHT HANGARS
FORMER LUMBER YARD SITE
MOST RECENT COMMERCIAL LEASED SITE
NEWER AMAZON WAREHOUSE ADJACENT TO COMMERCIAL SUBJECT SITES
VIEW OF COMMERCIAL SITES IMPROVED WITH LEASEHOLD STRUCTURES
FACTUAL DESCRIPTION
Page 1
Fred C. Strickland, MAI, ASA, SRA, ARA
This Report is prepared with the intent to comply with the reporting requirements set forth in the
Uniform Standards of Professional Appraisal Practice.
APPRAISER Fred C. Strickland, MAI, ASA, SRA, ARA
Fred C. Strickland & Associates LLC
PO Box 2478
Gig Harbor, WA 98335
CLIENT Marty Wray
Airport Director
Arlington Municipal Airport
18204 59th Dive Northeast
Arlington, WA 98223
INTENDED USE AND USER OF THE APPRAISAL
This Appraisal Report is intended to be used by the client, as an aide in facilitating fair market
rental rates for the airport’s land.
Intended Use is defined as: “The use or uses of an appraiser’s reported appraisal, appraisal
review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser
based on communication with the client at the time of the assignment.”1
Intended User is defined as: “The client and any other party as identified, by name or type, as
users of the appraisal, appraisal review, or appraisal consulting report, by the appraiser on the
basis of communication with the client at the time of the assignment.”2
A Client is defined as: “The party or parties who engage an appraiser (by employment or
contract) in a specific assignment.”3
1 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation,
Washington D.C.
2 Ibid., p. U-3.
3 Ibid., p. U-2.
FACTUAL DESCRIPTION
Page 2
Fred C. Strickland, MAI, ASA, SRA, ARA
PROPERTY DESCRIPTION
The subject of this appraisal is the sites owned by the Arlington Municipal Airport on or
adjacent to the Arlington Municipal Airport. The airport is located northwest of Arlington
and about one mile east of Interstate-5. In addition to conventional light aircraft, this
airport is the base for many of the area's home-built aircraft, ultra-light aircraft and
gliders. There is no scheduled passenger service and there is no terminal and no tower at
the airport. Corporate activity includes jet and turbo props. In addition to the surfaced
runways, there is a grass landing strip.
In order to determine market rents for the Airport owned land, land values have
historically been established by appraisal and ground rent has been calculated using a
rate of return of 7.50%. Aviation use rates have been substantially lower than the
commercial rates, in part because the commercial sites are on a highly trafficked State
Route and have attracted high intensity development such as hotels and a gas station.
This appraisal focuses on the market rent for the underlying land only.
The City of Arlington is required to initiate the preparation of appraisal documents as required by
the Federal Aviation Administration relevant to various types of airport property including
Aviation Land, Industrial Land, Commercial Land, the Very Light Aircraft Area, “T”-Hangar
Development Land and other properties located at the Arlington Municipal Airport.
Arlington Municipal Airport (ICAO: KAWO, FAA LID: AWO) is a public airport located three miles (5
km) southwest of the central business district of Arlington, a city in Snohomish County,
Washington, United States. It is owned and operated by the City of Arlington.
The Arlington Municipal Airport is included in the Federal Aviation Administration (FAA) National
Plan of Integrated Airport Systems for 2023-2027, in which it is categorized as a regional general
aviation facility.
FACTUAL DESCRIPTION
Page 3
Fred C. Strickland, MAI, ASA, SRA, ARA
AIRPORT OWNED PROPERTY
FACTUAL DESCRIPTION
Page 4
Fred C. Strickland, MAI, ASA, SRA, ARA
SALES HISTORY
The Airport is owned and operated by the City of Arlington. It is an established airport which
provides a range of flight related services. The airport is the fourth largest general aviation
facility (based on annual operations) in the greater Puget Sound Region, behind Boeing Field,
Auburn, and Paine Field. It was originally built as a Navy facility in 1944-45, and was acquired by
the City in 1959. No other ownership changes have occurred since that time. The current owner
of record is the City of Arlington.
PROPERTY RIGHTS APPRAISED
Fee simple estate, subject to existing easements and reservations in the title report. The fee
simple estate is defined as: Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of taxation, eminent domain,
police power, and escheat.4
EFFECTIVE RENTAL ESTIMATE DATES
Date of Report: April **, 2024
Inspection / Rental estimate date April 23rd, 2024
EXPOSURE TIME / MARKETING PERIOD
The indicated exposure time (i.e., the length of time the subject property would have been
exposed for sale in the market had it sold at the market value concluded in this analysis as of the
date of this valuation) would have been twelve months or less. The estimated marketing time
(i.e., the amount of time it would probably take to sell the subject property if exposed in the
market beginning on the date of this valuation) is estimated to be twelve months or less. These
conclusions are based on sales of similar type properties in the extended market.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to provide an opinion of the market rent applicable to the subject
property sites, valued as unimproved, as of the inspection date.
4 The Dictionary of Real Estate Appraisal, 7 Edition, Appraisal Institute, Chicago.
FACTUAL DESCRIPTION
Page 5
Fred C. Strickland, MAI, ASA, SRA, ARA
PROPERTY RIGHT APPRAISED - MARKET RENT
The most probable rent that a property should bring in a competitive and open market reflecting
the conditions and restrictions of a specified lease agreement, including the rental adjustment
and revaluation, permitted uses, use restrictions, expense obligations, term, concessions,
renewal and purchase options, and tenant improvements (TIs).
MARKET VALUE
A type of value that is the major focus of most real property appraisal assignments. Both
economic and legal definitions of market value have been developed and refined, such as the
following:
1.The most widely accepted components of market value are incorporated in the following
definition: The most probable price, as of a specified date, in cash, or in terms equivalent to cash,
or in other precisely revealed terms, for which the specified property rights should sell after
reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the
buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that
neither is under undue duress.
2.Market value is described, not defined, in the Uniform Standards of Professional
Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the
transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date,
under specific conditions set forth in the definition of the term identified by the appraiser as
applicable in an appraisal. Comment: Forming an opinion of market value is the purpose of many
real property appraisal assignments, particularly when the client’s intended use includes more
than one intended user. The conditions included in market value definitions establish market
perspectives for development of the opinion. These conditions may vary from definition to
definition but generally fall into three categories:5
1. the relationship, knowledge, and motivation of the parties (i.e., seller and buyer);
2. the terms of sale (e.g., cash, cash equivalent, or other terms);
and 3. the conditions of sale (e.g., exposure in a competitive market for a reasonable time prior
to sale). 6
5 The Dictionary of Real Estate Appraisal, 7th Edition, Appraisal Institute, Chicago.
6. The Dictionary of Real Estate Appraisal, 7h Edition, Appraisal Institute, Chicago
FACTUAL DESCRIPTION
Page 6
Fred C. Strickland, MAI, ASA, SRA, ARA
SCOPE OF THE APPRAISAL
The scope of this assignment included interviews with various individuals familiar with the subject
property and the market for properties with similar utility. Comparable information relating to
similar type properties was confirmed directly.
Airports are typically owned by port authorities or municipalities and, as a matter of practice,
individual sites are leased rather than sold. Because of this, market sales data on airport land
typically is not available. This is the case in this instance.
Airport land is frequently valued by the use of comparable land sales outside the airport and
adjusted if necessary, for the impact on value created by airport-related use restrictions.
However, quantifying the appropriate adjustment can be difficult and prone to error. The
estimation of the economic rent for the subject parcels requires a two-step process. First,
the land value is estimated based on a comparison to recently sold land comparables in the
general vicinity, and then an estimation of an appropriate rate of return is established, based
on similar real estate investments. The reconciled rental rate does not include the leasehold
excise tax applicable to all leases on airport property. The typical rental term at the subject
property is between 20 to 50 years, with periodic rent adjustments at fixed intervals.
Because of this, a study of practices at other somewhat similar airport locations is also
considered. Information from other airports in the region is also used as the basis for rental
estimates. This report is a recapitulation of the appraiser’s data, analyses, and conclusions.
PERSONAL PROPERTY
The analysis herein does not include any components that are considered to be personal
property.
UNAVAILABILITY OF INFORMATION
Adequate information provided.
FACTUAL DESCRIPTION
Page 7
Fred C. Strickland, MAI, ASA, SRA, ARA
LOCATION DESCRIPTION
A neighborhood is “a group of complementary land uses, a congruous grouping of inhabitants,
buildings or business enterprises”7 Neighborhoods are affected by social, economic,
governmental, and environmental forces which influence property values in the vicinity of the
subject property which, in turn, directly affect the value of a subject property itself. The
boundaries of a neighborhood are typically identified by determining the area within which the
forces affect all surrounding properties in the same way they affect the property being appraised.
The subject property sites are located on or adjacent to the Arlington Municipal Airport and
consists of various types of airport property including Aviation Land, Industrial Land, Commercial
Land, the Very Light Aircraft Area, “T”-Hangar Development Land and other properties located at
the Arlington Municipal Airport.
Arlington Municipal Airport (ICAO: KAWO, FAA LID: AWO) is a public airport located three miles (5
km) southwest of the central business district of Arlington, a city in Snohomish County,
Washington, United States. It is owned and operated by the City of Arlington.
Snohomish County is situated between northern Puget Sound to the west and the crest line of
the North Cascade Range to the east. It shares its northern border with rural Skagit County and
borders King County to the south. Snohomish County is separated from Camano Island (part of
Island County) by Davis Slough. The highest point in Snohomish County is Granite Peak (10,541
feet).
Due to its proximity to the general Puget Sound Region, the economics of this region is
considered next.
Current Economic Indicators
The Puget Sound (PS) aerospace industry is again hiring, adding 200 jobs to the region in January
2024. While other sectors such as construction and information saw month-to-month increases,
the number of jobs in these sectors is still less than a year ago. Of the five industries tracked,
aerospace is alone in posting positive year-over-year gains of 10.5 percent.
The region’s unemployment rate appears to have peaked in December 2023 at 4.7 percent.
January data shows a decrease of 0.1 percentage points to 4.6 percent in the region. The U.S.
unemployment rate remains at 3.7 percent, a value that has held since November 2023.
As for unemployment insurance, the number of initial unemployment insurance claims increased
in January. Claims have been highly variable throughout 2023 with a low in May and a high in
September. Compared to a year ago, claims are up by 55.2 percent.
7 The Dictionary of Real Estate Appraisal, 7th Edition, Appraisal Institute, Chicago
FACTUAL DESCRIPTION
Page 8
Fred C. Strickland, MAI, ASA, SRA, ARA
The Consumer Price Index (CPI), increased by 1.0 percent compared to October while the core
CPI increased by 3.5 percent, indicating food and energy prices are not to blame for remaining
inflation.
National inflation is now occurring more quickly than inflation in the Puget Sound. Since October,
the U.S. CPI has increased by 2.8 percent annualized. Like the Puget Sound, the U.S. core CPI is
increasing at a faster rate than the overall CPI.
The Puget Sound housing market appears to be rebounding from its slumping metrics in
December. Since October, the number of housing permits issued has increased by 22.2 percent
annualized, home sales have increased by 82.0 percent annualized, and the average price of a
home in the region has increased by 11.0 percent annualized.
While overall employment in the region has continued to increase, key industries such as
construction and professional and business services are still seeing job losses compared to three
months prior. However, the unemployment rate appears to have halted its increases and the
average number of hours worked has ticked up in January. These indicators signal a regional
economy that is continuing to grow despite current economic conditions.
FACTUAL DESCRIPTION
Page 9
Fred C. Strickland, MAI, ASA, SRA, ARA
FACTUAL DESCRIPTION
Page 10
Fred C. Strickland, MAI, ASA, SRA, ARA
The geographic distribution of population, economic activity and land use in Snohomish County is
diverse, with a mix of rural and urban zones. For the most part, population centers in the county
are oriented south in proximity to the border with King County and west along Interstate 5. By
contrast, north and east Snohomish County are characterized by smaller towns and cities,
farmland and reservations.
The county ranks 13th statewide in terms of total land area (2,087.3 square miles) and is the 3rd
most densely populated county in Washington, with a 2024 population of 848,163, or 406.34
people per square mile in 2024.
Snohomish County has been and continues to be home to an abundance of natural resources in a
diverse ecological region.
The economy has continued to consistently grow and improve over the past years. Some of the
biggest increases in the King and Snohomish counties submarket are in the construction sector;
retail trade; information/software and the transportation and warehousing .
Boeing being such a strong presence in the north sound economy has had a positive influence on
the subject area and on the subject property itself, with many Arlington based Boeing suppliers in
evidence at and near the subject property.
Boeing is a home-grown multinational corporation, and traces its roots to the Seattle
metropolitan area and continues to play a prominent role in Snohomish County’s economic make
up. In the late 1960s, Boeing established its 747 manufacturing plant at Paine Field near Everett.
The later development of other high technology industries in Snohomish County brought
population increases and a shift from an economy based on logging and agriculture to one rooted
in manufacturing and an expanding service sector. The Boeing Company remains the largest
private employer in the Puget Sound region. In 2023, Boeing hired people steadily, building the
workforce from its pandemic-era low point as jet production rates crept back up and retirements
of more experienced employees demanded replacements.
Taking account of losses due to attrition and additions from new hires, data released by the
company shows Boeing’s Washington state workforce grew last year by 11%, a net increase of
6,553 jobs.
After two years of heavy job losses during the pandemic, then two years of partial recovery, at
the end of 2023 the number of Boeing employees in the state bumped up to 66,792 — still shy of
the pre-pandemic count of 71,829.
FACTUAL DESCRIPTION
Page 11
Fred C. Strickland, MAI, ASA, SRA, ARA
Unemployment
The most currently published unemployment statistic for the state of Washington preliminary
figures, not seasonally adjusted) is 4.7% (down from July 2010 when it was at 9.5%). The latest
figures for individual markets in the region (not seasonally adjusted) are presented below, with
Snohomish County at 4.3%, lower than the state average.
Geographic facts
CITY OF ARLINGTON
The subject property is located in the City of Arlington, Washington. The City of Arlington is
located in northern Snohomish County. The city is located on the Stillaguamish River in the
western foothills of the Cascade Range, adjacent to the city of Marysville. Arlington is
approximately 10 miles north of Everett, the county seat, and 40 miles north of Seattle.
FACTUAL DESCRIPTION
Page 12
Fred C. Strickland, MAI, ASA, SRA, ARA
Arlington was established in the 1880s by settlers and the area was platted as two towns,
Arlington and Haller City. Haller City was absorbed by the larger Arlington, which was
incorporated as a city in 1903. During the Great Depression of the 1930s, the Arlington area was
the site of major projects undertaken for employment under the direction of federal relief
agencies, including construction of a municipal airport that would serve as a naval air station
during World War II. Beginning in the 1980s, Arlington was affected by suburbanization due to
the expansion of Seattle, growing by more than 450 percent by 2000 and annexing the
unincorporated area of Smokey Point to the southwest.
The economy of the Arlington area historically relied on timber and agriculture. In the early 21st
century, it has transitioned to a service economy, with some aviation industry jobs near the
municipal airport. The city is governed by a mayor–council government, electing a mayor and
seven city councilmembers. The municipal government maintains the city's parks system and
water and wastewater utilities. Other services, including public utilities, public transportation, and
schools, are contracted to regional or county-level agencies and companies.
North Snohomish County Industrial Submarket
As to the industrial market, the North Snohomish County Submarket is one of the largest
submarkets in the metro geographically, but one of the smallest in terms of inventory. The vast
majority of inventory is concentrated in Arlington and Marysville, close to I-5. North Snohomish
County has seen relatively strong performance, but new speculative construction has increased
space availability.
Over the past 12 months, 450,000 SF was absorbed in the submarket, while developers added
640,000 SF. Total availability, which includes any sublease and under construction space listed for
sale or lease, is the equivalent of 11.2% of the existing inventory.
Vacancy in the North Snohomish County industrial submarket is 7.3%, up from an all-time low of
1.8%. The submarket has seen significant new development, which has impacted vacancy, as
some of those projects have been speculative. For example, in 23Q4, Panattoni delivered a
337,000 SF building at Northsound Industrial Park in Marysville that is still listed as available for
lease or sale at completion.
Despite a substantial increase in available space, rent growth in the submarket has slightly
outperformed the Seattle metro. Rents have increased 5.9% over the past year, to around
$14.40/SF. In the past three years, cumulative growth was 28.1%.
Much of the inventory in the submarket is newer stock, as 5.5 million SF of the approximately 12
million SF was built within just the past five years. The Arlington and Marysville areas were
FACTUAL DESCRIPTION
Page 13
Fred C. Strickland, MAI, ASA, SRA, ARA
declared the region's Manufacturing Industrial Center by the Puget Sound Regional Council in
2019, helping to spur activity in that area.
NORTH SNOHOMISH COUNTY INVESTMENT TRENDS
Sales volume in the North Snohomish County Industrial Submarket remained strong in 2023. Last
year, about $60 million in trades were completed. While that was down from the $84 million in
transactions the year before, it compares to an average of about $23 million annually in the five
years before COVID.
Sales over the past year were mainly in the $1 million to $2 million range, and late-20th-century
properties represented the bulk of assets traded. Individual investors and owner-users made up
most of the buyer pool. Pricing generally ranges from $150/SF to $250/SF.
Cap rates have trended higher. Assets traded at cap rates in the 5.5% to 6% range two years ago
would likely sell closer to 7% today.
In an example of an owner-user sale, Bud Barton's Glass Company purchased the 6,500 SF
warehouse space the company has occupied for years. The asset traded for $1.1 million
($169/SF). The tenant fully occupied the 1987-built property at the time of the purchase.
While smaller spaces have dominated the sales market, some larger industrial facilities are on the
market, which could lead to higher sales volume. The 337,000 SF Panattoni Northsound Industrial
Park and the 365,000 SF Gateway Business Park are listed for sale for an undisclosed price as of
24Q1. Both offer opportunities to acquire ample, newly-built industrial spaces near Interstate 5.
The submarket has seen annual leasing activity rise since 2020, and vacancy for logistics and flex
properties tends to be less than the metro average.
FACTUAL DESCRIPTION
Page 14
Fred C. Strickland, MAI, ASA, SRA, ARA
The commercial market is also doing well as expressed with median month on the market in
recent years, as well las renewal rates, all fairly close to the robust Seattle market.
FACTUAL DESCRIPTION
Page 15
Fred C. Strickland, MAI, ASA, SRA, ARA
Commercial rental rates in the North Snohomish County market have increased in recent years.,
albeit with rents being consistently lower than the more robust Seattle market.
Direct Overall Capitalization rates have also moved downward for commercial improve properties
to a current rate of 5.7% for the general area. The subject north Snohomish County area shows 6
transactions with a median of 4.5% and a mean of 4.7%.
FACTUAL DESCRIPTION
Page 16
Fred C. Strickland, MAI, ASA, SRA, ARA
FACTUAL DESCRIPTION
Page 17
Fred C. Strickland, MAI, ASA, SRA, ARA
Conclusion
North Snohomish County in general and the City of Arlington area in particular is experiencing
positive trends in both the commercial sector and the industrial sector. This bodes well for the
Arlington Airport, which is a general aviation airport, an integral part of the greater Puget Sound
Region. The location in north Snohomish County makes it home to many subcontractors of the
nearby Boeing facility in Everett.
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
PROPERTY DESCRIPTION
The subject description is based on information provided as well as the physical inspection of the
subject property.
Location: Arlington Airport Properties, office address at 18204 59th Drive NE in
Arlington, Washington
Airport Description: The Arlington Airport, with a total site area of 1,195 acres, is located in
the northern section of Snohomish County. The Arlington Airport is a
general aviation facility, handling a variety of aircraft, ranging from
ultralights to corporate jets.
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
Lease structure: Various sites are frequently leased for between 20 to 50 years.
Adjustments to the lease rates at the subject property are made every
five years. A leasehold excise tax is also required from all tenants at
12.84% of the established rental amount, which is consistent with other
competing airports in the area.
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
Navigation Aides: PAPI- Runways 11, 16, 29, and 34;
· MALS- Runway 34;
· REIL- Runways 11, 16, and 29
Runway dimensions: Number Length (ft) Width (ft)
16/34 5,333 100
11/29 3,500 75
Utilities
Most utilities are available to the airport. Generally, all of 59th Avenue NE is served by public
sewer and public water. The area along 188th Street NE and 47th Avenue NE is also improved
with sewer services. All of 62nd Avenue NE and 63rd Avenue NE are served by sanitary sewer
and water.
The area within the Arlington Airport Business Park at the southwest corner of the airport is
served by sanitary sewer and public water. The mill site in the northwest corner is not currently
served by sewer or water. Sewer and water can be accessed approximately 200 feet to the west
from 47th Avenue NE. The utilities are summarized as follows
Water: Arlington Water District
Sewer: Available at most sites
Electricity: Snohomish County PUD
Telephone: Verizon/GTE
Natural Gas: Cascade Natural Gas
Zoning
Federal Aviation Regulations (FARs) administered by the Federal Aviation Administration
discourage incompatible uses adjoining the airport or under airport approaches and prohibit
penetration of Part 77 surfaces. Residential uses and uses encouraging large public gatherings are
considered incompatible.
Washington statutes require local jurisdictions to protect "essential public facilities", which
have been defined to include airports, from encroaching developments. Generally, this is done
by the local jurisdiction adopting an "airport overlay" that restricts the uses and heights of
developments near airports and under the approaches to airports. An overlay is implemented
at the subject property.
Most of the airport property is zoned Aviation Flightline (AF), with the northeasterly are, with no
runway access zoned Light Industrial (LI). Uses are also under the control of the Airport
underlying land owner. Surrounding uses to the north and east of the main airport areas are light
industrial in nature. The Arlington Airport Business Park is located to the west of the airport. The
residential areas in the Gleneagle area along the easterly side are protected by buffers
The uses at the airport are dictated by the Master Plan and can range from light industrial to
airport related commercial uses. Sections of the airport along the north side of 172nd Street NE
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
are in the General Commercial and Business Park zoning designations, while the south side is in
both the Highway Commercial and General Commercial zoning categories. Properties along the
east side of 59th Avenue contain the General Industrial zoning designation, which primarily
impacts the off-airport industrial properties. Setbacks and development restrictions are also
imposed by the Airport.
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
TAXES/ASSESSMENTS
The subject property is a municipal property and as a public agency, the property is not subject
to property taxes. However, private leasehold improvements, such as hangars and office
buildings, are taxed as personal property at the same rate as the property tax. Additionally, all
leased property is subject to a leasehold tax in lieu of property taxes. The tax is 12.84% of the
annual lease payment.
AIRPORT SITES DESCRIPTION
Airport Use Categories
The individual airport sites are considered in groups that reflect similar utility. Rental rates
estimated later in this report are then applied based on use and physical characteristics.
Aviation Sites
Sites with direct access to runways or taxiways. Aviation/T-Hangar uses include those properties
on which hangars or commercial aviation activities are typically located with direct taxiway or
runway access. No differentiation is made between sites with runway frontage versus more
remote sites with taxiway or ramp access.
Aviation Site Parcel Numbers
1-7, 14-17, 22, 23, 26, 28, 30a, 31, 32b, 33
34a/b, 35, 37, 44-52, 54, 56-65, 399-402
Non-Aviation Sites
Sites that do not have direct access to runways or taxiways. Some of these sites may be subject
to aviation-related use restrictions, some may not. They are considered industrial in nature.
Non-Aviation Sites Parcel Numbers
21, 27, 30b, 32a, 38, 40, 41, 53, 55, 67-88
90-103, 105-120, 300, 301, 302
Former Lumber Yard Site - Industrial
A large site previously used as a lumber mill operation is located at the northwesterly corner of
the airport. This site is significantly larger than the majority of the airport sites, and is zoned to as
an Event Development area, and would typically be classifies as aviation special purpose.
Former Lumber Yard Sites Parcel Numbers
201-204
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
Highway Commercial
Sites located on the southeasterly corner of 172nd Street NE and 51st Avenue NE. This is a
commercial area with no aviation-oriented component.
Highway Commercial Sites Parcel Numbers
500, 501
Ultralight Center
This site is located on the northwesterly section of the airport and has remote access relative to
the other airport properties. Sewer has been extended to the streets in the area.
Ultralight Center
200a/b Site Parcel Numbers
FACTUAL DESCRIPTION
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Fred C. Strickland, MAI, ASA, SRA, ARA
AIRPORT PROPERTY AND LOTS
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
HIGHEST AND BEST USE
By identifying and interpreting the market forces that affect a specific property in a local and
regional context, the appraiser determines the property's highest and best use. Highest and best
use is a fundamental concept in real estate appraisal because it focuses market analysis on the
subject property and allows the appraiser to consider the property's optimum use in light of
market conditions on a specific date.
Highest and best use reflects a basic assumption about real estate market behavior that the price
a buyer will pay for a property is based on his or her conclusions about the most profitable use of
the site or property. Therefore, sites and improved properties tend to be put to their highest and
best uses. However, the determination of a property's highest and best use set forth in an
appraisal may or may not conform to the existing use. The determination of highest and best use
must be based on careful consideration of prevailing market conditions, trends affecting market
participation and change, and the existing use of the subject property.
Highest and best use is defined as: "The reasonably probable and legal use of vacant land or
improved property, which is physically possible, appropriately supported, financially feasible, and
that results in the highest value." This definition introduces the four key criteria that a property
use must satisfy to qualify as the highest and best use. These include requirements that a
particular use must be:
legal under zoning, building and other codes or other restrictions;
physically possible as determined by analysis of access, shape,
topography, soils and other considerations;
financially feasible in that it produces a positive return on invested
capital; and,
maximally productive, whereby the use produces the highest residual
land value corresponding to the market return for such use.
Because the process utilized to develop an indication of the ground rent for the subject property
sites requires the consideration of the sites as though vacant and available to their highest and
best use, an analysis as improved is not relevant in this instance.
The “Highest and Best Use” of land or a site assumes that a parcel of land is vacant or that it can
be made vacant through the demolition of any improvements. The question to be answered in
the analysis of this type of Highest and Best Use is, “If the land is vacant, what use would be made
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
of it? That is, what type of building or other improvements (if any) should be constructed on the
land?” The first item to be addressed is the scope of legally permissible uses.
HIGHEST AND BEST USE AS VACANT
Legally Permitted Use
The first test of Highest and Best Use is to determine what is legally permissible, or what can
legally be constructed on the subject property. City, county, State, and Federal regulations and
statutes restrict the types of uses for the subject sites of this appraisal. Federal and State
regulations and laws discourage or prohibit uses that are incompatible with the operation of
the airport. Prohibited uses include residential uses and uses that attract gatherings of people
under the approaches to the airport. Additionally, any use that penetrates the protected
airspace around the airport is prohibited. County and city zoning and development regulations
further define the unallowable uses and activities next to the airport and provide the regulatory
tools necessary for enforcement.
By virtue of the regulations applicable to the Federal grants the subject property has received for
the development and maintenance of the airport, the sites within the fence or airport operations
area are limited to aviation and aviation support uses. The other sites must be used for aviation
compatible uses.
All of the airside sites are of sufficient size to support a variety of aviation or aviation support
uses such as hangars, tie-downs, and/or fixed-base operators. The height limitations imposed
by city zoning regulations do not significantly impact the use of any of the sites for aviation or
aviation support uses.
The non-airside sites also are of sufficient size to a variety of aviation compatible uses. Thus, the
legally permitted uses include aviation or aviation support uses for all of the airside sites and for
commercial or light industrial uses compatible with the airport for the non-airside sites.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
Physically Possible Use
The next test of highest and best use is the physical possibility of constructing a legally
permissible improvement on the site. Site areas are all large enough to accommodate uses
consistent with the site sizes. The sites have adequate topography throughout, and all major
utilities are available to the sites. Thus, the subject sites can physically support the uses that are
legally permitted.
Financially Feasible Use
The third test is for financial feasibility. A project’s financial feasibility is measured by whether
the project can produce a positive return on the investment. One of the better indications of
financial feasibility is consideration of the surrounding uses near the subject property. The
subject’s neighborhood has emerged as an airport related area. Thus, based on the subject’s
location and the nature of surrounding development, the most financially feasible use of the
subject sites is for some type of an aviation or aviation support use for all of the airside sites and
for commercial or light industrial uses compatible with the airport for all of the non-airside sites.
Maximally Productive Use
The fourth test of highest and best use is maximum productivity. This test is to determine which
use will generate the greatest rate of return or value for the property. The primary use which has
passed the three previous tests is for an aviation or aviation support use for all of the airside sites
and for commercial or light industrial uses compatible with the airport for all of the non-airside
sites. This type of use is also considered the maximally productive use of the site. Thus, the
maximally productive, and highest and best use of the subject sites as though vacant, is an
aviation or aviation support use for all of the airside-sites and for commercial or light industrial
uses compatible with the airport for all of the non-airside sites.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
METHODOLOGY UTILIZED TO DEVELOP AN ESTIMATE OF MARKET RENT
The intent of this study is to provide an estimate of market rent for specified land types (assumed
unimproved) at the Arlington Airport. Specific airport land parcel types are identified, and an
estimate of market rent is provided, based primarily on current market conditions.
This analysis includes a study of the most pertinent somewhat similar regional airports. The land
classifications, methods of valuation, trends, and actual rental rates for several somewhat similar
airports are presented. This study provides the primary basis for determining an appropriate
capitalization rate, an important component of the analysis.
An analysis of land sales in the general market areas at and near the Arlington Airport is also
provided, with the primary focus of unimproved sites with somewhat similar allowed uses.
This dual focus results in providing a full spectrum of land values, rates of return, and ultimately
appropriate supported land rent rates relevant to the different land uses identified at the airport.
The Income Approach, Cost Approach and Sales Comparison Approach are the three basic
techniques or approaches to value when appraising real property.
The Income Approach to value is a technique whereby the net income of an income producing
property is capitalized at a rate which provides a return of interest on the money invested and a
recapture of the capital investment in the improvement over a reasonable term of the
investment. Another way of stating this is that the income stream is converted into value. An
Income Analysis is typically not relevant in the valuation of land.
The Cost Approach requires the appraiser to estimate the reproduction or replacement cost new
of the improvements, subtract the depreciation due to all causes, and then add the value of the
land.
The Sales Comparison Approach involves direct comparisons of the property being appraised to
similar properties that have sold in the same or in a similar market in order to derive a market
value indication for the subject property.
In this instance, the Income Approach and the Cost Approach are not relevant as the appraisal is
considering the value of the sites as though vacant, as a benchmark from which to determine
market rent for the sites as vacant.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
The Sales Comparison Approach relevant is utilized as it relates to vacant land. Land sales are
utilized to develop an indication of the site values relevant to the appropriate property types.
An appropriate direct capitalization rate is then applied to provide the estimated market rent
attributable to the various subject property sites.
Prior to developing a site value estimate for each of the airport sites from which to estimate
market rent, a survey has been prepared of some somewhat similar airports in the area to
compare practices, rates and values from other similar properties. The results of this survey are
presented next, followed by the land valuation, and the establishment of an estimate of market
ground rent for each of the airport site types.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
AIRPORT GROUND LEASE SURVEY
A survey has been completed to ascertain how other airports consider the leasing of sites.
The focus of the survey is sites values, rates of return, and lease rates. The airports selected
are considered most relevant to the subject airport. A summary of pertinent details to the
surveyed airports is presented below.
Land value (sf)Rate Ground rent
Airport Classification (excludes large acreage)of return $/sf/year
Auburn VASI REIL, no tower, non precision approach $12.50 8.00%$1.00
Mostly airport related uses, minimal commercial uses in evidence
Reportedly in 2019 rent was $0.825 sf per year. In 2014 rent
range was from $0.33 -$0.54 sf per year, and in 2009 range
was from $0.26 - $0.49 sf per year.
Bayview-Skagit VASI Runway 29 Lots-Developed $9.00 7.50%$0.68
VASI Runway 29 Lots-Undeveloped $6.50 7.50%$0.49
VASI Runway 22 Lots-Developed $7.50 7.50%$0.56
VASI Runway 22 Lots-Undeveloped $4.00 7.50%$0.30
Reportedly in 2019 rental range was $0.33 to $0.37 sf per
year, 2012 rent range was from $0.40 to $0.45 sf per year,
and in 2007 range was from $028 to $0.35 sf per year.
Thun Field Mostly airport related uses, minimal commercial uses in evidence $5.38 8.00%$0.43
evidence
In 2019 rental range was $0.25-$1.69/sf year, at an 8% rate
with land valued at $3.1`3/sf to $21.13/sq. ft.
Chehalis Most recent site for aeronautical use $3.40 10.00%$0.34
Current commercial site leases $11.00 10.00%$1.10
In 2019 Aeronautical rents were $0.27/sf per year
Commercial sites were $0.43 to $1.20/sf per year
A commercial site lease for a shopping center in 2019 was
$0.40/sf.
Shelton Currently leased based on a 2019 rent study $2.17 - $4.67 6.00%$0.13 - $0.28
Land is leased on a $/acre basis, from a low of $580/acre to
$1,200/acre, which translates to $0.13/sf to $0.28/sf.
in 2019, land was leased on a $/acre basis, from a low of
$350/acre to $1,000/acre, which translates to $0.08/sf to
$0.23/sf.
2024 AIRPORT SURVEY
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
Auburn Airport
This airport is located at 2143 East Street N, In Auburn WA. The Auburn Municipal Airport is a
city-owned public-use airport located two nautical miles to the north of central Auburn, in
King County. The Auburn airport is named the Dick Scobee Field, after Francis "Dick" Scobee,
an Auburn a Washington native who was the commander astronaut for the Space Shuttle
Challenger.
The airport has a variety of aircraft storage options from public to privately owned hangars.
The airport is at capacity for all hangars and there is a waiting list. Tie down spaces are
available for rent. Unimproved sites with no storm sewer capacity or asphalt paving lease for
a lower rate compared to sites with paving and storm sewer in place.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
Skagit Regional-Bayview-Skagit
This airport is located approximately five miles west of I-5 and is about one mile north of SR 20.
Access to 1-5 is good but the interchange is often congested. The airport has a good quality
terminal building containing offices, counter space and waiting room suitable for a regional air
carrier. Offices of the Port of Skagit are located in the building. Vehicular parking is surfaced and
adequate in size. Six large hangars are located west of the terminal and a restaurant and a
corporate center are located east of the terminal.
An industrial park with land owned by the Port of Skagit County is adjacent to the north of the
airport. The Port invested about five million dollars developing this property that contains a
total of 320 acres. Land values are established by appraisal and ground rent is calculated using a
rate of return of 7.50%.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
Pierce County Airport - Thun Field – Puyallup (PLU)
Thun Field is located in central Pierce County twenty one miles southeast of Tacoma,
Pierce County Airport-Thun Field functions as a community transportation and
emergency services facility.
Capabilities
The runway at Thun Field, measuring 3,650 feet long by 60 feet wide, and is capable of
handling all general aviation aircraft, from light sport to small business jets. Available aviation
support and airport services include:
Aircraft repair and maintenance
Aircraft storage and parking
Aviation fuel and oil sales
Avionics repair
Charter and business flights
Flight supplies and equipment
Flight training
Restaurant with observation deck seating.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
The airport is improved with a variety of airport related services including the Hangar Inn
Restaurant, Mountain Aircraft Service, Northwest Propeller, Seattle Turbine, Teenflight
Puyallup, Wings West Governors, Allstar Aircraft of Washington, the Civil Air Patrol, Colors
Aircraft Painting, EAA Chapter 326, Flying Signaleers Flying Club, Safety in Motion Flight
Center, Spanaway Aviation, and Spencer Aircraft/Avionics.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
Chehalis-Centralia Airport - CLS
The Chehalis-Centralia Airport is located along I-5, and currently has around one hundred
based aircraft. There are 10 conventional hangars and 48 tee hangers, and a runway
viewing area is in evidence on the southeast side of the field. The airport manages 444
acres of property.In conjunction with the City of Chehalis, the Chehalis-Centralia Airport
is developing commercial properties in the retail district known as the Twin City Town
Center. This airport has a very large commercial segment compared to the airport use
area.
Rich Development Enterprises has constructed a 70,000 square-foot shopping center. The
property needed fill at the expense of the developers, as it was below grade. The lease
was reportedly based on a base rent of 40 cents per useable square foot of land across
the three land parcels.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
Sanderson Field- Industrial Park and Airport 21 West Sanderson Way, Shelton, WA
Sanderson Field Industrial Park consists of 1,053 acres, with an airport improved with a
5,000-foot runway and a general aviation facility with facilities to serve private aircraft
and business jets.
This facility accommodates commercial, corporate, and recreational aircraft. Olympic Air
provides charter airplane and helicopter services.
A Foreign Trade Zone (FTZ) designation to postpone and, in the case of re-export of
cargo, avoid the applications of U.S. Customs laws that impose duties, taxes, and certain
other requirements is also available.
In addition to aviation, Sanderson Field is also home to a number of light industrial
tenants including aerospace manufacturing, vibration dampening equipment
manufacturing, and micro technology machining.
The site is an industrial/commercial park located adjacent to U.S. Highway 101, 20
minutes off of Interstate 5, and has industrial land and buildings available.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
DIRECT CAPITALIZATION RATE CONCLUSION
The majority of airports surveyed utilize a rate of return applied to appraised land value. The
results of the survey show that there is considerable variation in the ground rent methodology
and results at airports throughout the region. Most airports do use appraisals or other market-
based methods to determine rents; a few do not.
A review of the rates of return in use at other airports deemed most similar to the subject facility
ranges from 6.0% at Shelton to 10% at the Chehalis-Centralia location, with the airport in closest
proximity to the subject property, Bayview-Skagit, utilizing a rate of 7.5%.
Shelton, at the lowest rate of 6.5%, is deemed inferior in demand to the subject location.
Shelton’s non-aviation related property is in a low demand area, resulting in lower lease potential
compared to other more intensely utilized areas. At the other extreme is the Chehalis-Centralia
facility. The Chehalis-Centralia airport has a low percentage of airport related land uses
compared to the off airport commercial sector. The airport owned commercial land is in the
highest demand area on the Centralia-Chehalis location, with substantial desirable frontage on
the I-5 corridor. This results in the ability to command higher rental amounts, compared to areas
with a more typical balance of supply-and demand. Other airports with the higher 10% rate in
effect are predominantly in Eastern Washington, where land value are generally substantially
lower, compared to the subject airport general area.
The airports surveyed utilize rates with a central tendency of 8/00 to 8.54%, with the airport in
closest proximity to the subject utilizing a rate of 7.5%. Thus, a direct capitalization rate of 7.5%
appears to be well supported for the subject property.
AIRPORT DIRECT CAPITALIZATION RATES
Shelton 6.00%
Orcas Island 7.00%
BayvIew-Skagit 7.50%
Port Townsend 8.00%
Port Angeles 8.00%
Thun Field 8.00%
Auburn 8.00%
Port of Benton 10.00%
Port of Pasco 10.00%
Walla Walla 10.00%
Chehalis 10.00%
Anacortes 10.00%
Mean 8.54%
Median 8.00%
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
LAND VALUATION - SALES COMPARISON APPROACH
This method utilized to develop appropriate land values requires a study of comparable sales of
property either surrounding the Arlington Municipal Airport, or similar use properties in other
somewhat similar locations. This provides a basis for direct comparison for non-aviation related
sites. It also provides a basis for aviation related sites, with adjustments potentially required due
to aviation-related restrictions. In order to arrive at the market value for the subject property
sites the greater Arlington/Marysville area and other similar locations have been researched for
recent sales. Lacking a plethora of Arlington commercial and industrial land sales, land sales in
the general area have also been researched with the following result. The commercial sales are
detailed first, followed by industrial land sales.
Uplands Analysis
Analysis Area Area Price/
Sale Location Sale Date Price (Acres) (Sq.Ft.)Sq.Ft.
C-1 XX NE 156th Street Dec-23 $9,050,000 45.97 2,002,453 $4.52
Marysville
C-2 7423 204th Street NE Nov-23 $2,820,000 4.38 190,793 $14.78
Arlington
C-3 18726 Smokey Point Boulevard Mar-23 $620,000 0.92 40,075 $15.47
Arlington
C-4 16520 Smokey Point Boulevard Jan-24 $4,200,000 4.97 216,493 $19.40
Arlington
C-5 7313 44th Avenue NE Dec-22 $1,400,000 1.56 67,954 $20.60
Marysville
C-6 8703 36th Avenue NE Mar-23 $655,000 0.52 22,651 $28.92
Marysville
C-7 9432 State Avenue Dec-22 $825,000 0.51 22,216 $37.14
Marysville
COMMERCIAL LAND SALES COMPARABLES
ANALYSIS OF DATA AND OPINION OF APPRAISER
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ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
COMMERCIAL LAND SALE C-1
Property Identification
Address XX 156th Street, Marysville
Assessor’s Parcel Number 31052900303100 and 31052900303200
Instrument SWD
Grantor Terra Firma Development Company
Grantee Arroyo Capital
Sale Date December 6, 2023
Sale Price $9,050,000
Zoning CB Commercial and Multi family
Topography The parcel is fairly level
Utilities All utilities available
Land Size 2,002,453 sq.ft.
Sale Price/Sq.Ft. $4.52/sq.ft.
Remarks
This original site was zoned site is zoned CB AND Multifamily by the City of Marysville. The
property was subject to a boundary line adjustment and the resultant parcel sold is zoned for
multifamily commercial development. The property is bounded on the west by a railroad right of
way.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
BOUNDARY LINE ADJUSTMENT FOR C-1
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
COMMERCIAL LAND SALE C -2
Property Identification
Address 7423 204th Street NE, Arlington
Assessor’s Parcel Number 31051100304000 and 31051100400700
Instrument SWD
Grantor AVS Community Development LLC
Grantee Harmony at Arlington LLC
Sale Date November 21, 2023
Sale Price $2,820,000
Zoning General Commercial
Topography Fairly level
Utilities All available
Land Size 190,793 sq.ft.
Sale Price/Sq.Ft. $14.78/sq.ft.
Remarks
This site was purchased for future development, this is a site which is to the northwest of the
204th Street NE/State Route 9 interchange. The site consists of two parcels which will support
construction of Multi Housing or 150 unit Senior Living Market Rate Apartments. Adjoining
properties consist of a Starbucks and a Bartell Drugstore. Across Hwy 9 is Safeway, McDonalds,
Chevron, and 77 Condominiums.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF C-2
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
COMMERCIAL LAND SALE C-3
Property Identification
Address 18726 Smokey Point Blvd, Arlington
Location Westerly side of Smokey Point Boulevard
Assessor’s Parcel Number 31052000100300
Instrument SWD
Grantor Jake's House Church
Grantee Jammeh Bintou & Yaya
Sale Date March 6, 2023
Sale Price $620,000
Zoning Commercial Corridor
Topography Level
Utilities All utilities available.
Land Size 40,075 sq.ft.
Sale Price/Sq.Ft. $15.47/sq.ft.
Land Sale Price/Sq.Ft. $11.29/sq.ft.
Remarks
This commercial lot contains an area of 40,075 sq.ft. with frontage on Smokey Point Boulevard.
This site is level and ready to be developed. Zoning is Commercial Corridor. This is a high
visibility corner lot with a 2,250 sq ft manufactured home. Zoning is Commercial Corridor. Some
of the allowed uses for this zoning included: Multi Family, Mixed Use, Veterinarian Clinic, Pet
Grooming/Pet Store, Dentist or Physician Clinics or Offices, Carryout or delivery service, Indoor
athletic facility, General Mercantile, Convenience store, Transitional Housing, Offices of
attorneys, other professions, insurance and stockbrokers, travel agencies, government office
buildings, a Day Care Center or Nursery School. The mobile home on site adds value, and is in
continued use, thus, the site as vacant would command a lower unit value than the $15.47/sg. ft.
unit value suggested by the sale as improved. The assessed value of the improvement is
$167,600. Deducting this value from the sale price suggests a value attributable to the land of
$11.29/sq. ft.
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 46
Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF C-3
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 47
Fred C. Strickland, MAI, ASA, SRA, ARA
COMMERCIAL LAND SALE C-4
Property Identification
Address 16520 Smokey Point Boulevard, Arlington
Location Westerly side of Smokey Point Boulevard
Assessor’s Parcel Number 31052900101300
Instrument SWD
Grantor Leedawn Capital LLC
Grantee Hawk Financial 1 LLC
Sale Date January 12, 2024-
Sale Price $4,200,000
Zoning Commercial
Topography Level
Utilities All to site
Shape Rectangular
Land Size 216,483 sq.ft.
Sale Price/Sq.Ft. $19.40/sq.ft.
Land Sale Price/Sq.Ft. $18.52/sq.ft.
Remarks
The parcel had formerly supported Halterman’s RV and Auto retail sales. The site coveres nearly
5 Acres of Commercial Corridor (CC) zoned land with approximately 220 feet of frontage on both
Interstate 5 and Smokey Point Blvd. The parcel is flat with all utilities provided to the site with the
ground improvements completed, including asphalt paving, concrete curbs, stormwater drainage
and water retention. Excellent local and regional access along primary arterials. This corridor is
stable with recent new construction north of the subject parcel which benefits from the location
near a variety of other businesses and arterials.
The assessed value of the site improvements is $189,500. Deducting this value from the sale
price suggests a value attributable to the land only of $18.52/sq. ft.
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 48
Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF C-4
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 49
Fred C. Strickland, MAI, ASA, SRA, ARA
LAND SALE C-5
Property Identification
Address 7313 44th Avenue NE, Marysville
Location Easterly of I-5
Assessor’s Parcel Number 00497200001200
Instrument SWD
Grantor Uniway Inc
Grantee Royal Group Of Companies Inc
Sale Date December 30, 2022
Sale Price $1,400,000
Zoning Commercial
Topography Level
Utilities All to site
Shape Rectangular
Land Size 67,954 sq.ft.
Sale Price/Sq.Ft. $20.60/sq.ft.
Land Sale Price/Sq.Ft. $15.87/sq.ft.
Remarks
The property was leased at time of sale, with lease expiring in December of 2024. The teants is
the Marysville Skate Center. The building is in good condition, has parking spaces about 45-50
spaces! Current general commercial zoning allows many different commercial uses! Current
tenant pays $7,500 a month plus triple NNN, with the sale price at $1,400,000, a 6.43% cap rate.
The assessed value of the improvements is $321,900. Deducting this value from the sale price
suggests a value attributable to the land only of $15.87/sq. ft.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF C-5
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 51
Fred C. Strickland, MAI, ASA, SRA, ARA
LAND SALE C-6
Property Identification
Address 8703 36th Avenue NE, Marysville, WA
Location Just to the south of 88th Street NE
Assessor’s Parcel Number 00459600000104
Instrument SWD
Grantor Adams Danielle
Grantee J & J 8703 LLC
Sale Date March 23, 2023-
Sale Price $655,000
Zoning Commercial
Topography Level
Utilities All to site
Shape Rectangular
Land Size 22,651 sq.ft.
Sale Price/Sq.Ft. $28.92/sq.ft.
Land Sale Price/Sq.Ft.$22.91/sq.ft.
Remarks
This is the sale of a residentially improved commercial site near the 36th Avenue NE 88th Street
NE interchange. As of the date of inspection, the site still supports the single-family residence,
but the site was marketed for its commercial potential use. The improvement on C-3 is similar to
the improvement on this property, and the C-3 improvement was assessed at slightly less than
$75/sq. ft. The improvement area on this site is 1,813 sq, ft. suggesting a contributory value on
the residential improvements of $135,975, with a land unit value of $22.91 sq. ft.
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 52
Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF C-6
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 53
Fred C. Strickland, MAI, ASA, SRA, ARA
COMMERCIAL LAND SALE C-7
Property Identification
Address 9434 State Avenue, Marysville, WA
Location Westerly side of State Avenue
Assessor’s Parcel Number 30051600302900
Instrument SWD
Grantor Walker Group LLC
Grantee Kellyak LLC
Sale Date December 10, 2022
Sale Price $825,000
Zoning Commercial
Topography Fairly level
Utilities All to site
Shape Quadrilateral
Land Size 22,216 sq.ft.
Sale Price/Sq.Ft. $37.14/sq.ft.
Land Sale Price/Sq.Ft.$31.01/sq.ft.
Remarks
This is the sales of a General Commercial Lot in Marysville on State Avenue. There is about 100’
frontage and approximately 222'-240’ deep. An 800 sf office building (former dental office) is at
the front & a 408 sf garage is near the rear. BNSF rail is on the west, State Avenue on the east..
The improvements value per the assessor is $136,100, suggesting a unit value for the land at
$31,01/sq. ft.
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 54
Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF C-7
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 55
Fred C. Strickland, MAI, ASA, SRA, ARA
Industrial land sales are provided in a similar fashion, as follows:
Analysis
Analysis Area Area Price/
Sale Location Sale Date Price (Acres) (Sq.Ft.)Sq.Ft.
I-1 3505 188th Avenue NE Sep-23 $4,700,000 39.47 1,719,313 $2.73
Arlington
I-2 4500 152nd Street SE Feb-23 $2,700,000 9.58 417,305 $6.47
Marysville
I-3 15953 39th Avenue NE Oct-22 $3,362,000 7.54 328,442 $10.24
Marysville
I-4 XX Arlington Valley Road Nov-22 $1,535,207 2.97 129,373 $11.87
Arlington
I-5 15955 39th Avenue NE Oct-22 $3,386,570 5.87 255,697 $13.24
Marysville
I-6 19516 Arlington Valley Road Nov-22 $1,263,240 2.00 87,120 $14.50
Arlington
I-7 19712 Arlington Valley Road Nov-22 $1,006,018 1.49 64,904 $15.50
Arlington
INDUSTRIAL LAND SALES COMPARABLES
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 57
Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I-1
Property Identification
Address 3505 188th Avenue NE, Arlington
Assessor’s Parcel Number 31051600300500, 310516-003-025-00 and 310516-003-003-00
Instrument SWD
Grantor Poortinga/Poortinga/Munneke-Howlett
Grantee Smokey Point Industrial LLC
Sale Date September 1, 2023
Sale Price $4,700,000
Zoning Business Park and AG-10, City of Arlington
Topography Fairly level
Utilities All utilities available
Land Size 1,719,313 sq.ft.
Sale Price/Sq.Ft. $2.73/sq.ft.
Remarks
This site is in the Cascade Industrial Center area. 11.59 acres is zoned business park. 28.41 acres
is zoned AG-10. The site has water, electricity and sewer in the street. This site is close to
Arlington Airport, I-5, and Highway 9. There are two homes on the property which are leased.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF I-1
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 59
Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I -2
Property Identification
Address 4500 152nd Street SE, Marysville
Location North side of 136th Street NE, Marysville
Assessor’s Parcel Number 31053300100500
Instrument SWD
Grantor Long Steven
Grantee Marysville City of
Sale Date February 27th, 2023
Sale Price $2,700,000
Zoning Light Industrial LI with GC Overlay
Topography Level
Utilities All available
Land Size 417,305 sq.ft.
Sale Price/Sq.Ft. $6.47/sq.ft.
Remarks
This level site is located to the east of I-5 on the north side of 152nd street NE, in Marysville.
The property was purchased by the City of Marysville, and as of the date of inspection has not
been developed. Although the property to the north is being developed with industrial uses.
.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF I-2
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 61
Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I-3
Property Identification
Address 15953 39th Avenue NE, Marysville
Location East side of 39th Avenue NE
Assessor’s Parcel Number 31052800302500
Instrument SWD
Grantor Web Industries Realty LLC
Grantee CRP/VDC Twin Lakes Owner LLC
Sale Date October 31, 2022
Sale Price $3,362,000
Zoning Industrial-City of Marysville
Topography Level
Utilities All utilities available.
Land Size 328,442 sq.ft.
Sale Price/Sq.Ft. $10.24/sq.ft.
Remarks
This site is currently being developed with an industrial use, together with an adjacent site. This
site is in a desirable industrial area.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF I-3
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I -4
Property Identification
Address XX Arlington Valley Road NE, Arlington
Location Fronting on Arlington Valley Road NE
Assessor’s Parcel Number 31051400304300
Instrument SWD
Grantor Avr Business Park LLC
Grantee Weiss Company Xi LLC
Sale Date November 10th, 2022
Sale Price $1,535,207
Zoning General Industrial-
Topography Level
Utilities All utilities available.
Land Size 129,373 sq.ft.
Sale Price/Sq.Ft. $11.87/sq.ft.
Remarks
This site is currently not developed with an industrial use. This site is in a desirable industrial
area. The site was purchased by an adjacent property owner.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
AERIAL MAP OF I-4
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 65
Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I -5
Property Identification
Address 15955 39th Avenue NE, Marysville
Location East side of 39th Avenue NE
Assessor’s Parcel Number 31052800302900
Instrument SWD
Grantor East Forty LLC
Grantee CRP/VDC Twin Lakes Owner LLC
Sale Date October 31, 2022
Sale Price $3,386,570
Zoning Industrial-City of Marysville
Topography Level
Utilities All utilities available.
Land Size 255,697 sq.ft.
Sale Price/Sq.Ft. $13.24/sq.ft.
Remarks
This site is currently being developed with an industrial use, together with an adjacent site. This
site is in a desirable industrial area.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
AERIAL MAP OF I-5
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 67
Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I-6
Property Identification
Address 19516 Arlington Valley Road , Arlington, WA 98223
Location Westerly side of Arlington Valley Road
Assessor’s Parcel Number 31051400204200
Instrument SWD
Grantor Arlington Valley Road LLC
Grantee Snowlion Properties LLC
Sale Date November 29, 2022
Sale Price $1,263,240
Zoning Industrial
Topography Level
Utilities All to site
Shape Irregular
Land Size 87,120 sq.ft.
Sale Price/Sq.Ft. $14.50/sq.ft.
Remarks
This is the November 2022 sale of an industrial site located on Arlington Valley Road. All utilities
are available. The site is currently unimproved.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF I-6
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 69
Fred C. Strickland, MAI, ASA, SRA, ARA
INDUSTRIAL LAND SALE I-7
Property Identification
Address 19712 Arlington Valley Road, Arlington
Location Westerly side of Arlington Valley Road
Assessor’s Parcel Number 31051400204300
Instrument SWD
Grantor AVR Business Park LLC
Grantee Bosses & Kings Property Group LLC
Sale Date November 11th, 2022
Sale Price $1,006,018
Zoning Industrial
Topography Level
Utilities All to site
Land Size 64,904 sq.ft.
Sale Price/Sq.Ft. $15.50/sq.ft.
Remarks
This is the November 2022 sale of an industrial site located on Arlington Valley Road. All
utilities are available. The site is currently unimproved.
ANALYSIS OF DATA AND OPINION OF APPRAISER
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Fred C. Strickland, MAI, ASA, SRA, ARA
MAP OF I-7
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 71
Fred C. Strickland, MAI, ASA, SRA, ARA
COMMERCIAL SITE ANALYSIS
The sales range from $4.52/sq. ft. to $37.14 sq. ft. The lower end comparable, C-1 is a large site,
with a predictably lower unit value, as large sites typically have a lower unit value compared to
smaller sites. Conversely, the upper end comparables, are either in a more desirable location or
had immediate development potential. The highest unit value was commanded by C-7, a highly
desirable location, with substantial site improvements. In some instances, site improvements are
deducted from the unit price of the comparables to arrive at a unit price for land only, as shown
on the adjustment grid below.
The baseline commercial site unit value is bracketed and supported by these sales, with a median
central tendency of $15.87/sf. The commercial sites surrounding the Arlington Airport location
are removed from the I-5/Smokey Point commercial corridor, and the Marysville area where
more substantial commercial activity is in evidence. This suggests a base unit price adjusted for
location by about 15%, suggesting a unit value lower than the central tendency of the most
similar comparables, reconciled at $13.50/sf.
INDUSTRIAL SITE ANALYSIS
The sales range from $2.73/sq. ft. to $15.50. The lower end comparable, I-1 includes some non-
industrial lower valued land with less immediate development potential. Conversely, the upper
end comparables, are in more desirable locations. The highest unit value was commanded by I-7,
in a highly desirable location, commanding a higher unit value than sites in less desirable
locations. All of the sales suggest a mean of $9.84/sq.ft. and a median of $11.05/sq. ft. The
appropriate baseline industrial site unit value is lower than the central tendency. This suggests a
base unit price near I-2 at $6.47/sq. ft., reconciled at $6.00/sf.
The base land value is the market value of the subject sites based on sales of comparable sites in
the subject's general market area, the estimated fee simple value of the subject sites if not
limited to aviation use. This result in base land value estimates which can be summarized as
follows:
Aviation related sites $6.00/sf
Non-aviation industrial sites $6.00/sf
Commercial sites $13.50/sf
C-1 C-2 C-3 C-4 C-5 C-6 C-7
Sale Price $9,050,000 $2,820,000 $620,000 $4,200,000 $1,400,000 $655,000 $825,000
Improvement Contribution $0 $0 $167,600 $189,500 $321,900 $135,975 $136,100
Land Value $9,050,000 $2,820,000 $452,400 $4,010,500 $1,078,100 $519,025 $688,900
Site Size (sq. ft.)2,002,453 190,793 40,075 216,493 67,954 22,651 22,216
Land Unit Value $/sq.ft.$4.52 $14.78 $11.29 $18.52 $15.87 $22.91 $31.01
Mean $16.99
Median $15.87
ANALYSIS OF DATA AND OPINION OF APPRAISER
Page 72
Fred C. Strickland, MAI, ASA, SRA, ARA
Once a base land value is determined, some form of adjustment is frequently applied because of
the atypical airport restrictions imparting the subject aviation related sites.
The aviation use restriction issue is an important factor affecting the aviation land leases. This is
recognizing the restriction that on-airport land be used only for aviation-related activities. This is
an additional loss of the bundle of rights reflective of the limitations on use stipulated by the
underlying zoning. In the case of the subject Arlington Airport aviation related sites, this
restriction is established by the policies set by the City of Arlington.
An adjustment for the aviation use limitations is estimated at a 20% discount from the non-
aviation base land value estimated. This is applicable to the aviation lands only. This results in
base land value estimates which can be summarized as follows:
Category Non adjusted Adjustment Site unit value
Aviation related sites $6.00/sf -20% $4.80/sf
Non-aviation industrial sites $6.00/sf $6.00/sf
Commercial sites $13.50/sf $13.50/sf
The indicated annual rent rate and the indicated annual rent for each of the sites is as follows:
Annual
Category Unit Value Rate Lease rate/sf
Aviation $4.80 7.50%$0.36
Non-Aviation $6.00 7.50%$0.45
Commercial $13.50 7.50%$1.01
RECONCILIATION
Page 73
Fred C. Strickland, MAI, ASA, SRA, ARA
The Sales Comparison Approach as it relates to land was utilized to develop an estimate of the
Market Value of each site. Rent relevant to each site category was then developed utilizing a
market support direct capitalization rate. The concluded annual rent for each site category as of
April 23rd, 2024, is as follows:
There are subject sites not directly considered in this analysis up to this point, which are
considered next. These sites are the historical lumber yard (Sites 201 through 204), the Ultralight
center and the General Aviation T-Hangar sites.
Ultralight Center (Aviation Special Purpose - Sites 200a and 200b)
This 4.3-acre site is located on the north westly area of the subject airport. It is relatively remote
compared to the balance of the aviation sites; and relies on a septic system. This site does not
support the same intensity of use compared to other areas of the airport. This is recognized by
an additional discount of 15% resulting in an estimated annual lease rate of $0.31 per square
foot, rounded.
Sites 201 through 204 (Aviation Special Purpose – Mill Site)
This site is over 20 acres in size. It is zoned as an Event Development area and is classified as an
Aviation Special Purpose site. It is also relatively remote compared to the balance of the aviation
sites. Due to the relatively large site size, and the lack of liquidity inherent in larger sites with
inferior locational attributes, more weight is given to the larger industrial sales I-1 through I-3,
resulting in a discount of 25%. The concluded lease rate for this parcel, is therefore $0.27 per
square foot, per year, rounded.
General Aviation T-Hangar Sites
The last consideration in the land valuation and rental analysis is the application of the land rent
for T-hangar sites. Arlington's historical T-hangar policy includes the lease of a total parcel
without regard to the actual building area. The developer is generally responsible for paving the
taxiways between buildings. Given the characteristics of existing developments, an additional
10% downward adjustment to the base land value is applied, resulting in an estimated annual
lease rate of $0.32 per square foot, rounded, applicable to T-hangar land areas.
Annual
Category Unit Value Rate Lease rate/sf
Aviation $4.80 7.50%$0.36
Non-Aviation $6.00 7.50%$0.45
Commercial $13.50 7.50%$1.01
RECONCILIATION
Page 74
Fred C. Strickland, MAI, ASA, SRA, ARA
Based on the analysis herein market supported rental rates for the specified Arlington Airport site
categories as of the date of inspection, April 23rd, 2024, are summarized as follows:
The recent historical trend at the subject property is presented below:
Over the last few years there has been either no movement in rates, or minimal movement in
rates at the subject property, with most land categories being flat the last four years. There are a
variety of methods in the marketplace allowing for changes in values over time being considered
in lease agreements. One common method is a CPI increase every year, with a new base line
typically set periodically, typically in five-year increments. An equally common method is for a
lease amount to remain flat for five-year periods with step increases (or decreases) dependent on
a new base amount being determined, commonly by rent studies. Either method is considered
reasonable, with the latter method assumed in this study. Thus, the rates estimated herein are
applicable as of the date of appraisal, and following market parameters would be in place for a
five year period with an escalation mechanism applicable, in the case of airport properties
frequently flat for five years.
Current
Market Previous % per year
Annual Annual %Change
Category Lease Rate (sf)Lease Rate (sf)Change 5 years
Aviation $0.36 $0.30 20.00%4.00%
Non-Aviation $0.45 $0.38 18.42%3.68%
Commerial $1.01 $0.86 17.44%3.49%
Parcel 200a and 200b Ultralight $0.31 $0.25 24.00%4.80%
Parcel 201 and 204 Mill Site $0.27 $0.23 17.39%3.48%
T Hangar Sites $0.32 $0.27 18.52%3.70%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0.250 $0.260 $0.270 $0.270 $0.270 $0.280 $0.290 $0.300 $0.300 $0.300
$0.320 $0.330 $0.340 $0.340 $0.340 $0.350 $0.360 $0.370 $0.380 $0.380
$0.760 $0.780 $0.790 $0.800 $0.810 $0.820 $0.830 $0.840 $0.850 $0.860
$0.220 $0.230 $0.230 $0.230 $0.230 $0.240 $0.250 $0.250 $0.250 $0.250
$0.230 $0.240 $0.240 $0.240 $0.240 $0.250 $0.250 $0.260 $0.270 $0.270
$0.210 $0.210 $0.210 $0.210 $0.210 $0.220 $0.230 $0.230 $0.230 $0.230
Last 9 years Last 5 years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 %/year %/year
$0.250 4.00%3.85%0.00%0.00%3.70%3.57%3.45%0.00%0.00%2.22%2.22%
$0.320 3.13%3.03%0.00%0.00%2.94%2.86%2.78%2.70%0.00%2.08%2.35%
$0.760 2.63%1.28%1.27%1.25%1.23%1.22%1.20%1.19%1.18%1.46%1.23%
$0.220 4.55%0.00%0.00%0.00%4.35%4.17%0.00%0.00%0.00%1.52%1.74%
$0.230 4.35%0.00%0.00%0.00%4.17%0.00%4.00%3.85%0.00%1.93%2.50%
$0.210 0.00%0.00%0.00%0.00%4.76%4.55%0.00%0.00%0.00%1.06%1.90%
CERTIFICATION
Page 75
Fred C. Strickland, MAI, ASA, SRA, ARA
I certify that, to the best of my knowledge and belief,
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions and conclusions are limited only by the reported
assumptions and limiting conditions, and represent my personal, impartial and unbiased
professional analyses, opinions and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report
and have no personal interest with respect to the parties involved.
4. I have no bias with respect to the property that is the subject of this report or to the parties
involved in this assignment.
5. Engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6. Compensation is not contingent upon the reporting of a predetermined value or direction in
value that favors the cause of the client, the amount of the value estimate, the attainment
of a stipulated result, or the occurrence of a subsequent event directly related to the
intended use of this appraisal.
7. I have made a personal inspection of the property that is the subject of this report.
8. No one provided real property appraisal assistance to the person signing this report in the
preparation of and research contained within this report.
9. The reported analyses, opinions and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute, which include the
Uniform Standards of Professional Appraisal Practice.
10. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
11. This appraisal assignment was not based on a requested minimum valuation, a specific
valuation, or an approval of a loan.
12. The appraiser is competent and qualified to perform the appraisal assignment.
CERTIFICATION
Page 76
Fred C. Strickland, MAI, ASA, SRA, ARA
13.I have not appraised this property within the past three years.
14. The Appraisal Institute conducts a voluntary program of continuing education for its
designated members. MAIs and SRAs who meet the minimum standards of this program are
awarded periodic educational certification. As of the date of this report, Fred C. Strickland
has completed the requirements of the continuing education program of the Appraisal
Institute.
Fred C. Strickland, MAI, ASA, SRA, ARA
State of Washington Certification 1100429
QUALIFICATIONS
Page 77
Fred C. Strickland, MAI, ASA, SRA, ARA
FREDERICK C. STRICKLAND, MAI, ASA, SRA, ARA
PROFESSIONAL EDUCATION:
American Institute of Real Estate Appraisers
All courses successfully completed as a prerequisite to the designation MAI; plus, various other
courses, including specific Appraisal Institute material relevant to computer use for appraisal
purposes, Discounted Cashflow, statistical analysis, etc.
American Association of Appraisers
Courses primarily oriented towards business valuation, and asset segregation, valuation of
intangibles
Society of Real Estate Appraisers
All courses successfully completed as a prerequisite to the designation SREA.
State of Washington Appraisal Courses
Various courses on appraisal of land, residential and commercial real property, and machinery
and equipment valuation, taken primarily at Central Washington University.
International Association of Assessing Officers
All courses required for the CAE and RES designations plus instructor's courses for real property
appraising and statistical analysis in real property appraisal.
Various Appraisal Institute Seminars, including:
Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book)
Valuation of Conservation Easements
PROFESSIONAL DESIGNATIONS AWARDED:
MAI American Institute of Real Estate Appraisers
ASA American Association of Appraisers
SRPA Society of Real Estate Appraisers
SRA Society of Real Estate Appraisers
ARA American Society of Farm Managers and Rural Appraisers
CAE International Association of Assessing Officers
RES International Association of Assessing Officers
Broker Licensed Washington State Real Estate Broker
QUALIFICATIONS
Page 78
Fred C. Strickland, MAI, ASA, SRA, ARA
CERTIFICATIONS:
General Classification - Washington State Certified Real Estate Appraiser
Certification 1100429
General Classification - Oregon State Certified Real Estate Appraiser
Certification C001348
General Classification - California State Certified Real Estate Appraiser
Certification 3043276
EXPERIENCE:
Fred C Strickland & Associates LLC (2016)
Managing partner with the appraisal firm of Strickland, Heischman & Hoss, Inc. (1989-2015)
Commercial real estate appraiser with Charles E. Anderson & Associates (1984-1989)
Owner/Manager of San Juan Appraisal Services (1979-1984)
Appraiser for San Juan County Assessor's Office (1977-1979)
Instructor of real estate courses for State of Washington, Land Appraisal Course at The
Evergreen State College; IAAO Course 1, Residential Appraising at Central Washington
University; and IAAO Course 302, Appraisal of Income Property (utilizing statistical analysis) at
Central Washington University.
COURT EXPERIENCE:
Qualified as expert witness on real estate values in United States District Court, Western District
of Washington, Seattle, King County, in Pierce County Superior Court, Thurston County Superior
Court, San Juan County Superior Court, and Clallam County Superior Court, all in Washington
State, and Yellowstone County Superior Court, Montana.
QUALIFICATIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
PARTIAL LIST OF CLIENTS:
Office of Thrift Supervision Department of Justice
Resolution Trust Corporation National Park Service
Federal Deposit Insurance Corporation US Army Corps of Engineers
U.S. Department of Commerce Wells Fargo Bank
WA Department of Natural Resources US Bancorp
WA Department of Fish and Wildlife Hongkong Bank
University of Washington Columbia Bank
Attorney General of Washington West One Bank
Metro (Seattle) First Union National Bank, FL
King County Open Space Washington Mutual Savings Bank
Kitsap County Everett Mutual Savings Bank
Pierce County Real Property Management Bank of America
City of Bellevue Multicare Medical Center
City of Tacoma Nature Conservancy
Port of Tacoma City of Olympia
Intervest Mortgage Investment Company KeyBank
Other institutions, attorneys and individuals
ASSUMPTIONS AND LIMITING CONDITIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
Unless noted otherwise in the body of the report, this appraisal is subject to the following
assumptions and limiting conditions.
1.No responsibility is assumed for legal or title considerations. Title to the subject property is
marketable and free and clear of all liens, encumbrances, encroachments, easements and
restrictions. The property is assumed to be under responsible ownership and
competent management and is assumed available for its highest and best use.
2.There are no existing judgments or pending or threatened litigation that impact the value
of the property.
3.There are no hidden or undisclosed conditions of the land or of the improvements that
impact the value of the property.
4.Information, public and private, relevant to sale price indications is assumed to be
correct.
5.The property is in compliance with all applicable building, environmental, zoning, and
other federal, state and local laws, regulations and codes.
6.Information, estimates and opinions contained in the report, obtained from others,
including third-party sources, are assumed to be reliable and have not been independently
verified and no warranty is given for accuracy.
7.An appraisal is inherently subjective and represents our opinion as to the value of the
property appraised.
8.The conclusions stated in our appraisal apply only as of the effective date of the
appraisal, and no representation is made as to the effect of subsequent events.
9.No changes in any federal, state or local laws, regulations or codes (including, without
limitation, the Internal Revenue Code) are anticipated.
10.When environmental impact studies are not provided in conjunction with the appraisal,
we reserve the right to revise or rescind any of the value opinions based upon any
subsequent environmental impact studies. If any environmental impact statement is
required by law, the appraisal assumes that such statement will be favorable and will be
approved by the appropriate regulatory bodies.
ASSUMPTIONS AND LIMITING CONDITIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
11.Unless otherwise agreed to in writing, we are not required to give testimony, respond to
any subpoena or attend any court, governmental or other hearing with reference to the
property without compensation relative to such additional employment.
12.I have made no survey of the property and assume no responsibility in connection with
such matters. Any sketch or survey of the property included in this report is for illustrative
purposes only and should not be considered to be scaled accurately for size. The
appraisal covers the property as described in this report, and the areas and dimensions set
forth are assumed to be correct.
13.No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and
we have assumed that the property is not subject to surface entry for the exploration
or removal of such materials, unless otherwise noted in our appraisal.
14.I accept no responsibility for considerations requiring expertise in other fields. Such
considerations include, but are not limited to, legal descriptions and other legal matters such
as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical,
electrical, structural and other engineering and environmental matters.
15.The distribution of the total valuation in the report between land and improvements applies
only under the reported highest and best use of the property. The allocations of value for
land and improvements must not be used in conjunction with any other appraisal and are
invalid if so used. The appraisal report shall be considered only in its entirety. No part of
the appraisal report shall be utilized separately or out of context.
16.Neither all nor any part of the contents of this report (especially any conclusions as to value,
the identity of the appraisers, or any reference to the Appraisal Institute) shall be
disseminated through advertising media, public relations media, news media or any
other means of communication (including without limitation prospectuses, private
offering memoranda and other offering material provided to prospective investors)
without the prior written consent of the person signing the report.
17.Any income and expense estimates contained in the appraisal report are used only for the
purpose of estimating value and do not constitute predictions of future operating results.
ASSUMPTIONS AND LIMITING CONDITIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
18.If the property is subject to one or more leases, any estimate of residual value contained in
the appraisal may be particularly affected by significant changes in the condition of the
economy, of the real estate industry, or of the appraised property at the time these leases
expire or otherwise terminate.
19.No consideration has been given to personal property located on the premises or to the cost
of moving or relocating such personal property; only the real property has been considered.
20.The current purchasing power of the dollar is the basis for the value stated herein. We have
assumed that no extreme fluctuations in economic cycles will occur.
21.The analyses contained in the report necessarily incorporate numerous estimates and
assumptions regarding property performance, general and local business and economic
conditions, the absence of material changes in the competitive environment and other
matters. Some estimates or assumptions, however, inevitably will not materialize, and
unanticipated events and circumstances may occur; therefore, actual results achieved
during the period covered by our analysis will vary from our estimates, and the
variations may be material. The Americans with Disabilities Act (ADA) became effective in
the 1990s. We have not made a specific survey or analysis of the property to determine
whether the physical aspects of the improvements meet the ADA accessibility guidelines.
We claim no expertise in ADA issues, and render no opinion regarding compliance of the
subject with ADA regulations. Inasmuch as compliance matches each owner's financial
ability with the cost to cure the non-conforming physical characteristics of a property, a specific
study of both the owner's financial ability and the cost to cure any deficiencies would be
needed for the Department of Justice to determine compliance.
22.No studies have been provided to us indicating the presence or absence of hazardous
materials on the subject property or in the improvements, and our valuation is
predicated upon the assumption that the subject property is free and clear of any
environmental hazards including, without limitation, hazardous wastes, toxic
substances and mold. No representations or warranties are made regarding the
environmental condition of the subject property and the person signing the report shall
not be responsible for any such environmental conditions that do exist or for any engineering or
testing that might be required to discover whether such conditions exist. Because we
are not experts in the field of environmental conditions, the appraisal report cannot be
considered as an environmental assessment of the subject property.
ASSUMPTIONS AND LIMITING CONDITIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
23.The person signing the report may have reviewed available flood maps and may have noted
in the appraisal report whether the subject property is located in an identified Special Flood
Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such
determinations. The presence of flood plain areas and/or wetlands may affect the value of
the property, and the value conclusion is predicated on the assumption that wetlands are
non-existent or minimal.
24.The appraisal report and the value conclusion within the appraisal is predicated upon the
assumption that the satisfactory completion of construction, repairs or alterations will be
performed in a workmanlike manner.
25.It is expressly acknowledged that in any action which may be brought against Fred C.
Strickland & Associates LLC or their respective officers, owners, managers, directors, agents,
subcontractors or employees the “Fred C. Strickland & Associates LLC ", parties arising out of,
relating to, or in any way pertaining to this engagement, the appraisal reports, or any
estimates or information contained therein, the "Fred C. Strickland & Associates LLC " parties
shall not be responsible or liable for an incidental or consequential damages or losses, unless
the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged
that the collective liability of the Fred C. Strickland & Associates LLC , parties in any such
action shall not exceed the fees paid for the preparation of the appraisal report unless the
appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that
the fees charged herein are in reliance upon the foregoing limitations of liability.
26.Fred C. Strickland & Associates LLC, an independently owned and operated company, has
prepared the appraisal for the specific purpose stated elsewhere in the report. The intended
use of the appraisal is stated in the report. The use of the appraisal report by anyone other
than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report
is addressed to and shall be solely for the Client's use and benefit unless we provide our prior
written consent. We expressly reserve the unrestricted right to withhold our consent to your
disclosure of the appraisal report (or any part thereof including, without limitation,
conclusions of value and our identity), to any third parties. Stated again for clarification,
unless our prior written consent is obtained, no third party may rely on the appraisal report
(even if their reliance was foreseeable).
ASSUMPTIONS AND LIMITING CONDITIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
27.The conclusions contained in this report are estimates based on known current trends and
reasonably foreseeable future occurrences. These estimates are based partly on property
information, data obtained in public records, interviews, existing trends, buyer-seller decision
criteria in the current market, and research conducted by third parties, and such data are not
always completely reliable. Fred C. Strickland & Associates LLC and the undersigned are not
responsible for these and other future occurrences that could not have reasonably been
foreseen on the effective date of this assignment. Furthermore, it is inevitable that some
assumptions will not materialize and that unanticipated events may occur that will likely
affect actual performance. While we are of the opinion that our findings are reasonable
based on current market conditions, we do not represent that these estimates will actually be
achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume
competent and effective management and marketing for the duration of the projected
holding period of this property.
28.Any prospective value estimates presented in this report are estimates and forecasts which
are prospective in nature and are subject to considerable risk and uncertainty. In addition to
the contingencies noted in the preceding paragraph, several events may occur that could
substantially alter the outcome of our estimates such as, but not limited to changes in the
economy, interest rates, and capitalization rates, behavior of consumers, investors and
lenders, fire and other physical destruction, changes in title or conveyances of easements and
deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present
time are consistent or similar with the future.
29.The value estimate herein is subject to these and to any other assumptions or conditions set
forth in the body of this report but which may have been omitted from this list of
Assumptions and Limiting Conditions.
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL
CONDITIONS
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Fred C. Strickland, MAI, ASA, SRA, ARA
1)Extraordinary Assumption: “an assumption, directly related to a specific assignment,
which, if found to be false, could alter the appraiser’s opinions or conclusions.”8
Extraordinary assumptions assume as fact otherwise uncertain information about
physical, legal, or economic characteristics of the subject property; or about conditions
external to the property, such as market conditions or trends; or about the integrity of
data used in analysis.
There are no extraordinary assumptions relevant to this appraisal.
2) Hypothetical Conditions: “that which is contrary to what exists but is supposed for the
purpose of analysis.”9
A hypothetical condition assumes conditions contrary to known facts about physical,
legal, or economic characteristics of the subject property; or about conditions external to
the property, such as market conditions or trends; or about the integrity of data used in
analysis.
There are no hypothetical conditions relevant to this appraisal.
8 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation,
Washington D.C., p. U-3.
9 Ibid., p. U-3.
City of Arlington Council Agenda Bill
Item: NB #2 Attachment G
COUNCIL MEETING DATE: September 16, 2024
Perimeter Fencing Improvements Project – Change Order and Amendment
Change Order, Amendment, Project Cost Summary, and Previously Approved Contracts
Airport; Monroe Whitman, Operations Manager 360-403-3471 EXPENDITURES REQUESTED: $547,247.69 (not including design costs) BUDGET CATEGORY: CIP Fund BUDGETED AMOUNT: LEGAL REVIEW:
construction administration services amendment for the Perimeter Fencing Improvements Project. This project was previously approved as part of the airport’s bi-annual budget, and involves design, construction, and construction administration services. This change order will revise the proposed fence line to avoid conflicts with the upcoming WSDOT project, mitigate the need for locate teams to access airport active areas, and extend the existing proposed fence west to 51st Ave NE, north, and east to encompass an additional potential lease area. This change will add approximately 1,000’ of new chain-link fence and 450’ of existing fence removal. Additional survey effort will also be required due to the increased number of angle points in the proposed fence line. Dallum Build Company came in as the lowest bidder for construction at $345,803.34. The City Council previously authorized the Mayor to sign the contract with Dallum Build Company in the amount of $345,803.34. Airport staff is now requesting approval of a change order to the construction contract in the amount of $79,734.35. If approved, the amended construction contract amount will total $425,537.69. The City Council previously authorized the Mayor to sign a professional services agreement with DOWL (airport’s current on-call engineer) for construction administration services in the amount of $99,560.00. Airport staff is requesting approval of an amendment to the construction administration professional services agreement in the amount of $22,150.00. If approved, the amended professional services agreement amount will total $121,710.00. Airport staff is required by the FAA to complete an Independent Fee Estimate (IFE) for construction administration services, which is currently being completed.
City of Arlington Council Agenda Bill
Item: NB #2 Attachment G
HISTORY: The existing three-wire perimeter fence does not provide a secure airport perimeter and will be replaced with standard 8-foot chain-link fence with 3-strand barbed wire. The proposed fencing improvements will also reduce potential wildlife hazards on airport property per FAA-approved Wildlife Hazard Management Plan. The perimeter fence is critical for compliance with 14 CFR 139.335 Public Protection and 139.337 Wildlife Hazard Management. The City Council authorized the Mayor to sign a professional services agreement with DOWL in the amount of $62,634.00 for design services at their April 1, 2024 meeting. The City Council authorized the Mayor to sign a contract with Dallum Build Company in the amount of $345,803.34 at their July 1, 2024 meeting. The City Council authorized the Mayor to sign a professional services agreement with DOWL in the amount of $99,560.00 for construction administration services at their July 1, 2024 meeting.
to increase the contract amount by $79,734.35, and to authorize the Mayor to sign the construction administration services professional services agreement amendment with DOWL to increase the contract amount by $22,150.00 (subject to the IFE being approved by the FAA).
CHANGE ORDER NO. 1 Page 1 of 3
PROJECT: Perimeter Fencing Improvements DATE: September 4, 2024
LOCATION: Arlington Municipal Airport (AWO)
OWNER: City of Arlington
CONTRACTOR: Dallum Build Company
PROJECT NO.: BIL No. 3-53-0002-040-2024
CITY PROJECT NO.: AP24.2.1
You are requested to perform the following described work upon receipt of an approved copy of this document
or as directed by the Owner:
ITEM
NO.
SPEC
NO.
DESCRIPTION
UNIT
UNIT
PRICE
QTY.
AMOUNT
CO1 – A2 GP50-07 Additional Construction Surveying LS $2,000.00 1 $2,000.00
CO1 – A5 P-101 Additional Fencing Removal LF $11.00 450 $4,950.00
CO1 – A8 F-162 Additional Chain-Link Fence LF $59.00 1,000 $59,000.00
CO1 – B1 F-162 Additional Black PVC Coating
(non-eligible) LF $7.00 1,000 $7,000.00
Subtotal This Change Order (without 9.3% Sales Tax) $72,950.00
Original Contract Amount (with 9.3% Sales Tax) $345,803.34
Total This Change Order (with 9.3% Sales Tax) $79,734.35
Total Previous Change Orders $0.00
REVISED CONTRACT TOTAL $425,537.69
There will be ten (10) additional working days required for completion of work associated with this change order.
An approved copy of this document will serve as the notice to proceed. This document shall become an
amendment to the contract and all provisions of the contract will apply.
Recommended By: ___________________
Engineer – DOWL Date
Approved By: ___________________
Airport Director – Arlington Municipal Airport Date
Approved By: ___________________
Mayor – City of Arlington Date
Accepted By: ___________________
Contractor – Dallum Build Company Date
Approved By: ___________________
Federal Aviation Administration Date
Page 2 of 3
PROJECT NO.: BIL No. 3-53-0002-040-2024 CHANGE ORDER NO. 1
LOCATION: Arlington Municipal Airport (AWO) OWNER: City of Arlington
JUSTIFICATION FOR CHANGE
1. Brief description of proposed contract changes and locations.
This change order will revise the proposed fence line to avoid conflicts with upcoming WSDOT construction,
and to extend the existing proposed fence west to 51st Ave NE, north, and east to encompass an additional
potential lease area. This change will add approximately 1,000’ of new chain-link fence and 450’ of existing
fence removal. Additional survey effort will also be required due to the increased number of angle points in the
proposed fence line. A detailed breakdown of revised quantities is included in Section 3 below. A revised set of
plans are included as Attachment A to this change order.
2. Reason for the changes.
WSDOT recently provided detailed drawings showing their planned right-of-way impacts due to the upcoming
widening of 172nd St NE/SR531 on the south side of the airport, and construction of roundabouts at the
intersections with 51st Ave NE and 59th Ave NE. This change order will revise the proposed fence line to avoid
placing fence in near-term construction areas and avoid removal of this fence by WSDOT when they begin
construction. Additionally, the existing and previously proposed fence line cuts off airside access to a potential
lease lot located northeast of the intersection of SR 531 and 51st Ave NE. The addition of approximately 1,000
feet of additional fence will encompass this lot and provide uninterrupted airside access. Additional survey is
required to stake the increased number of angle points in the new fence.
3. Justification for unit prices or total cost.
The contractor has agreed to perform the additional work at the contract unit prices for fence removal, new
fence, and black PVC coating. Additional survey will be required for the increased number of angle points in
the proposed fence line.
Contractor’s Proposal – Bid Item A2, Construction Surveying:
Increase to Bid Item A2 – Construction Surveying, as follows:
• Original LS Cost (Item A5): $5,000.00 LS
• New LS Cost (Item A5): $7,000.00 LS
o Proposed Cost Increase: $2,000.00
Contractor’s Proposal – Bid Item A5, Fencing Removal:
Increase to Bid Item A5 - Fencing Removal, as follows:
• Original Quantity (Item A5): 3,680 LF
• New Quantity (Item A5): 4,130 LF (+450 LF)
• Unit Cost (per SF): $11.00
o Proposed Cost Increase: $4,950.00
Contractor’s Proposal – Bid Item A8, Chain-Link Fence:
Increase to Bid Item A8 - Chain-Link Fence as follows:
• Original Quantity: 3,650 LF
• New Quantity: 4,650 LF (+1,000 LF)
• Unit Cost (per LF): $59.00
o Proposed Cost Increase: $59,000.00
Page 3 of 3
PROJECT NO.: BIL No. 3-53-0002-040-2024 CHANGE ORDER NO. 1
LOCATION: Arlington Municipal Airport (AWO) OWNER: City of Arlington
Contractor’s Proposal – Bid Item B1, Black PVC Coating (non-eligible):
Increase to Bid Item B1 – Black PVC Coating, as follows:
• Original Quantity: 3,650 LF
• New Quantity: 4,650 LF (+1,000 LF)
• Unit Cost (per LF): $7.00
o Proposed Cost Increase: $7,000.00
Engineer’s Cost Analysis:
This change will increase fence removal by about 12%, and the new fence quantity by approximately 25%.
These work items will be performed at the contract bid item unit prices. The approximately 40% increase in
survey effort is proportional to the additional staking required.
Based on a review of the cost analysis, the sponsor finds the proposed changes fair and reasonable.
1. The Sponsor’s share of this cost is available from: Airport Funds.
2. If this is a supplemental agreement involving more than $2,000, is the cost estimate based on the latest
wage rate decision?
Yes X No _____ Not Applicable .
3. Has consent of surety been obtained?
Yes Not Necessary X .
4. Will this change affect the insurance coverage?
Yes _____ No X .
5. If yes, will the policies be extended?
Yes _____ No .
6. Has this change order been discussed with FAA officials?
Yes X No When: 8/29/24 Whom: Karen Miles
CONTRACT AMENDMENT
Service Provider:
Name, Title Signature
City of Arlington:
Name, Title Signature
Contract Name
Project No
This amendment extends all of the terms of the existing Agreement, including the existing
Scope of Work, with the exception of the new additional amendments:
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
on ________________.
Page 1 of 2
TASK ORDER #4
EXHIBIT A-1: SCOPE OF WORK
City of Arlington – Arlington Municipal Airport (AWO)
Perimeter Fencing Improvements Project
Phase 2: Construction Administration
Amendment #1 – Additional Const. Admin. Phase Services
This project will be completed under the Professional Services Agreement (AGREEMENT) between the City of
Arlington and DOWL, LLC, dated August 1, 2024.
Project Description
This Amendment #1 includes additional Construction Administration phase services to support ten (10)
additional contract working days added via Change Order No. 1. Additional CA services are as follows:
2.4 CONSTRUCTION ADMINISTRATION (CA) & INSPECTION
The CONSULTANT will provide additional CA and inspection services to support the ten (10) additional
working days added via Change Order No. 1, including:
a) The Inspector will provide ten (10) additional days of onsite construction inspection services (10
working days, 10-hour days).
• Total project onsite inspection: 35 working days, 10-hour days
b) The Project Manager will conduct two (2) additional weekly meetings on-site to coordinate
progress of construction with the airport, airport tenants, and the contractor. Each meeting will
last up to four (4) hours.
• Total project weekly meetings: 7 meetings, 4-hours each meeting
c) The inspector will prepare ten (10) additional inspector daily reports documenting construction
progress, materials used, number of workers and work progress, and equipment used.
• Total project IDR’s: 35
d) No changes.
e) No changes.
f) No changes.
g) The Project Manager and Resident Engineer will prepare up to one (1) additional construction
change order.
• Total project change orders: 2
h) No changes.
i) No changes.
j) No changes.
k) No changes.
l) The Project Manager will prepare two (2) additional weekly meeting agendas and meeting
minutes (Estimated 1 hour each).
m) The Project Manager and Resident Engineer will prepare two (2) additional FAA weekly reports
with progress photos for every week the contractor is working at the airport (7 reports
estimated).
• Total project FAA weekly reports estimated: 7
City of Arlington – Arlington Municipal Airport
Perimeter Fencing Improvements Project
Page 2 of 2
Deliverables
Deliverables associated with work under this amendment will consist of additional documents related to the
additional efforts outlined in task 2.4 above. These documents, exhibits, or other presentations for work
covered by this amendment will be furnished by the CONSULTANT to the AIRPORT and/or FAA as noted.
Additional Fee
DOWL will complete the work under this amendment for an additional fee of $22,150. A detailed fee estimate
is included as Exhibit B-1, and a breakdown of contract costs is included below.
Original Task Order #4 Amount: $99,560.00
Amendment No. 1 Amount (this amendment): $22,150.00
Total Revised Task Order No. 4 Amount: $121,710.00
Client:Arlington Municipal Airport (AWO)
Project:Perimeter Fencing Improvements Project Date:8/19/2024
Phase:02 - Construction Administration
LABOR:
TASK Senior Engineering Acct.
NO.TASK (Scope of Services)Manager II Engineer IV Engineer II Tech. VI Tech.TOTAL LABOR
260.00 190.00 145.00 175.00 120.00 HOURS COST
2.1 Project Management 9 18 0 0 12 39 7,200$
a General Project Management (12 months)6 12 18 3,840$
a Invoices & Progress Reports (12 Invoices)3 6 12 21 3,360$
2.2 Pre-Construction Activities 8 10 6 0 0 24 4,850$
a Review Schedule with Airport 4 4 8 1,800$
b Review SPCD 2 2 4 670$
c Conduct Pre-Construction Conference 4 4 4 12 2,380$
2.3 Submittal Review 2 8 18 0 0 28 4,650$
a Submittal Reviews (6)6 12 18 2,880$
b Submittal Log 6 6 870$
c Submittal Responses 2 2 4 900$
2.4 Construction Administration & Inspection 39 50 427 12 0 528 83,655$
a Construction Inspection (35 days, 10 hrs/day)350 350 50,750$
b
Weekly Construction Meeting (PM - 7 days, 4
hrs/day)28 28 7,280$
c Inspector Daily Reports (35)9 18 27 4,320$
d Engineer Inspection (2 days, 8 hrs/day)16 16 3,040$
e Contractor Progress Payments 2 4 6 1,280$
f Field Note Records 2 8 10 1,540$
g Change Order (2)2 8 8 12 30 5,300$
h Requests for Information (3)6 6 12 2,010$
i Certified Payroll Review 5 20 25 3,850$
j Labor Documentation Review 5 5 725$
k Employee Wage Rate Interview 5 5 725$
l Weekly Meeting Agenda and Minutes 7 7 1,820$
m FAA Weekly Reports 7 7 1,015$
2.5 Final Inspection 0 9 12 0 0 21 3,450$
a Final Inspection 4 4 8 1,340$
b Punch list 1 4 5 770$
c Closeout Inspection 4 4 8 1,340$
EXHIBIT B-1: CONSULTANT FEE ESTIMATE
DOWL PROJECT TEAM
\\dowl.com\j\Projects\72\15001-08\10PM\10PM - Move to CA\Scope and Fee\Amendment 1 - Addl CA\EXHIBIT B-1 - Amend1 Fee Estimate - AWO Perimeter Fencing CA.xlsx
Client:Arlington Municipal Airport (AWO)
Project:Perimeter Fencing Improvements Project Date:8/19/2024
Phase:02 - Construction Administration
LABOR:
TASK Senior Engineering Acct.
NO.TASK (Scope of Services)Manager II Engineer IV Engineer II Tech. VI Tech.TOTAL LABOR
260.00 190.00 145.00 175.00 120.00
EXHIBIT B-1: CONSULTANT FEE ESTIMATE
DOWL PROJECT TEAM
2.6 Record Drawings 2 4 8 8 0 22 3,840$
a Record Drawings 2 4 8 8 22 3,840$
2.7 Project Closeout 5 12 38 4 0 59 9,790$
a Draft FAA Construction Final Report/Project
Summary 2 8 26 36 5,810$
b FAA Construction Final Report/Project Summary 1 4 12 17 2,760$
c ALP Update & Narrative 2 4 6 1,220$
2.8 Grant Assistance 0 4 0 0 0 4 760$
a FAA Quarterly/Annual Performance Reports 4 4 760$
Labor Subtotal 65 115 509 24 12 725 118,195$
Expenses
Mileage (per vehicle)45 Trips @ 100 Miles R.T at 0.67$ / mile 3,015$
Plotting / Reproductions (Record Drawings)500$
Total Expenses 3,515$
Subconsultants Markup (N/A)
0%-$
Total Subconsultants -$
Total Original Task Order #4 Fee (Phase 2 - Construction Administration)99,560$
Total Ammendment No. 1 Fee (Amendment No. 1)22,150$
TOTAL REVISED TASK ORDER NO. 4 FEE 121,710$
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EROSION CONTROL NOTES
CONSTRUCTION NOTES
GENERAL NOTES:
LEGEND
Know what's below.
before you dig.Call
R
GENERAL NEW FENCING NOTES:
Arlington Municipal Airport (AWO)Date:9/3/2024
Perimeter Fencing Improvements Project By:MAZ
FAA BIL No. 3-53-0002-040-2024
ESTIMATED REVISED PROJECT COST SUMMARY:
Item Total
Administration
Design IFE (C&S)3,000.00$ -$ 3,000.00$
Advertisement for Bid (Sound Publishing)756.80$ 756.80$
Advertisement for Bid (DJC)2,126.70$ -$ 2,126.70$
Subtotal Administration 5,883.50$ -$ 5,883.50$
Engineering
DOWL Task Order #3
Phase 1: Design 62,634.00$ -$ 62,634.00$
Subtotal Engineering 62,634.00$ -$ 62,634.00$
Construction
Dallum Construction (Sch A: BIL eligible)317,877.19$ -$ 317,877.19$
Dallum Construction (Sch B: Non-BIL eligible)27,926.15$ 27,926.15$ -$
Dallum Construction (Sch A: BIL-eligible) - CO1 72,083.35$ -$ 72,083.35$
Dallum Construction (Sch B: Non-BIL eligible) - CO1 7,651.00$ 7,651.00$ -$
Subtotal Construction 425,537.69$ 35,577.15$ 389,960.54$
Project Inspection Fees
DOWL Task Order # 4
Phase 2: Construction Administration 99,560$ -$ 99,560$
DOWL Task Order # 4 Amend. No. 1 - Add'l CA 22,150$ -$ 22,150$
Subtotal Inspection 121,710$ -$ 121,710$
580,188.04$
35,577.15$
TOTAL PROJECT COSTS 615,765.19$
Federal Share (FAA)
Federal Share (90% BIL)522,169$
BIL Grant 040 Total (Issued Grant)437,359$
BIL Grant 040 w/ Max. 15% Amendment 502,962$
Remaining Federal Share Outside of Amendment Capability 19,207$
WSDOT Aviation (Anticipated Grant)24,750$
AIRPORT SPONSOR Revised (Amnd. 1)Original Difference
Sponsor Match
(Grant 40 + Max Amnd. BIL Eligible Costs)31,134.67$ 24,298.69$ 6,835.98$
Sponsor Share
(Remaining Federal Share Outside of Amnd.)19,207.24$ -$ 19,207.24$
Sponsor Match
(Remaining Federal Share Outside of Amnd.)2,134.14$ -$ 2,134.14$
Remaining Non-BIL Eligible Costs 35,577.15$ 27,926.15$ 7,651.00$
Airport Sponsor (Eligible & Non-Eligible)88,053.19$ 52,224.84$ 35,828.35$
BIL
Eligible Costs
PROJECT FUNDING SUMMARY:
TOTAL ELIGIBLE COSTS
Non-BIL
Eligible Costs
TOTAL NON-ELIGIBLE COSTS
\\dowl.com\j\Projects\72\15001-08\10PM\Grants\FAA\Cost & Funding Summary - Design and Construction Fencing - Amend.xlsx
EXHIBIT B – FEDERALLY FUNDED CONSTRUCTION PROJECTS
(A) Equal Employment Opportunity. The provisions of this sec�on related to 23 CFR Part 230, Subpart A,
Appendix A are applicable to all Federal-aid construc�on contracts and to all related construc�on subcontracts
of $10,000 or more. The provisions of 23 CFR Part 230 are not applicable to material supply, engineering, or
architectural service contracts. In addi�on, the contractor and all subcontractors must comply with the following
policies: Execu�ve Order 11246, 41 CFR Part 60, 29 CFR Parts 1625-1627, 23 U.S.C. 140, Sec�on 504 of the
Rehabilita�on Act of 1973, as amended (29 U.S.C. 794), Title VI of the Civil Rights Act of 1964, as amended (42
U.S.C. 2000d et seq.), and related regula�ons including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230,
and 633. The contractor and all subcontractors must comply with: the requirements of the Equal Opportunity
Clause in 41 CFR 60- 1.4(b) and, for all construc�on contracts exceeding $10,000, the Standard Federal Equal
Employment Opportunity Construc�on Contract Specifica�ons in 41 CFR 60-4.3. Note: The U.S. Department of
Labor has exclusive authority to determine compliance with Execu�ve Order 11246 and the policies of the
Secretary of Labor including 41 CFR Part 60, and 29 CFR Parts 1625-1627. The contrac�ng agency and the FHWA
have the authority and the responsibility to ensure compliance with 23 U.S.C. 140, Sec�on 504 of the
Rehabilita�on Act of 1973, as amended (29 U.S.C. 794), and Title VI of the Civil Rights Act of 1964, as amended
(42 U.S.C. 2000d et seq.), and related regula�ons including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200,
230, and 633.
The following provision is adopted from 23 CFR Part 230, Subpart A, Appendix A, with appropriate revisions to
conform to the U.S. Department of Labor (US DOL) and FHWA requirements.
1. Equal Employment Opportunity: Equal Employment Opportunity (EEO) requirements not to discriminate and
to take affirma�ve ac�on to assure equal opportunity as set forth under laws, execu�ve orders, rules, regula�ons
(see 28 CFR Part 35, 29 CFR Part 1630, 29 CFR Parts 1625-1627, 41 CFR Part 60 and 49 CFR Part 27) and orders
of the Secretary of Labor as modified by the provisions prescribed herein, and imposed pursuant to 23 U.S.C.
140, shall cons�tute the EEO and specific affirma�ve ac�on standards for the contractor's project ac�vi�es under
this contract. The provisions of the Americans with Disabili�es Act of 1990 (42 U.S.C. 12101 et seq.) set forth
under 28 CFR Part 35 and 29 CFR Part 1630 are incorporated by reference in this contract. In the execu�on of
this contract, the contractor agrees to comply with the following minimum specific requirement ac�vi�es of
EEO:
a. The contractor will work with the contrac�ng agency and the Federal Government to ensure that it has
made every good faith effort to provide equal opportunity with respect to all of its terms and condi�ons of
employment and in their review of ac�vi�es under the contract. 23 CFR 230.409 (g)(4) & (5).
b. The contractor will accept as its opera�ng policy the following statement: "It is the policy of this Company
to assure that applicants are employed, and that employees are treated during employment, without regard to
their race, religion, sex, sexual orienta�on, gender iden�ty, color, na�onal origin, age or disability. Such ac�on
shall include: employment, upgrading, demo�on, or transfer; recruitment or recruitment adver�sing; layoff or
termina�on; rates of pay or other forms of compensa�on; and selec�on for training, including appren�ceship,
pre-appren�ceship, and/or on-the-job training."
2. EEO Officer: The contractor will designate and make known to the contrac�ng officers an EEO Officer who will
have the responsibility for and must be capable of effec�vely administering and promo�ng an ac�ve EEO
program and who must be assigned adequate authority and responsibility to do so.
3. Dissemina�on of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote,
and discharge employees, or who recommend such ac�on or are substan�ally involved in such ac�on, will be
made fully cognizant of and will implement the contractor's EEO policy and contractual responsibili�es to
provide EEO in each grade and classifica�on of employment. To ensure that the above agreement will be met,
the following ac�ons will be taken as a minimum:
a. Periodic mee�ngs of supervisory and personnel office employees will be conducted before the start of work
and then not less o�en than once every six months, at which �me the contractor's EEO policy and its
implementa�on will be reviewed and explained. The mee�ngs will be conducted by the EEO Officer or other
knowledgeable company official.
b. All new supervisory or personnel office employees will be given a thorough indoctrina�on by the EEO
Officer, covering all major aspects of the contractor's EEO obliga�ons within thirty days following their repor�ng
for duty with the contractor.
c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in
the contractor's procedures for loca�ng and hiring minori�es and women.
d. No�ces and posters se�ng forth the contractor's EEO policy will be placed in areas readily accessible to
employees, applicants for employment and poten�al employees.
e. The contractor's EEO policy and the procedures to implement such policy will be brought to the aten�on
of employees by means of mee�ngs, employee handbooks, or other appropriate means.
4. Recruitment: When adver�sing for employees, the contractor will include in all adver�sements for employees
the nota�on: "An Equal Opportunity Employer." All such adver�sements will be placed in publica�ons having a
large circula�on among minori�es and women in the area from which the project work force would normally be
derived.
a. The contractor will, unless precluded by a valid bargaining agreement, conduct systema�c and direct
recruitment through public and private employee referral sources likely to yield qualified minori�es and women.
To meet this requirement, the contractor will iden�fy sources of poten�al minority group employees and
establish with such iden�fied sources procedures whereby minority and women applicants may be referred to
the contractor for employment considera�on.
b. In the event the contractor has a valid bargaining agreement providing for exclusive hiring hall referrals,
the contractor is expected to observe the provisions of that agreement to the extent that the system meets the
contractor's compliance with EEO contract provisions. Where implementa�on of such an agreement has the
effect of discrimina�ng against minori�es or women, or obligates the contractor to do the same, such
implementa�on violates Federal nondiscrimina�on provisions.
c. The contractor will encourage its present employees to refer minori�es and women as applicants for
employment. Informa�on and procedures with regard to referring such applicants will be discussed with
employees.
5. Personnel Ac�ons: Wages, working condi�ons, and employee benefits shall be established and administered,
and personnel ac�ons of every type, including hiring, upgrading, promo�on, transfer, demo�on, layoff, and
termina�on, shall be taken without regard to race, color, religion, sex, sexual orienta�on, gender iden�ty,
na�onal origin, age or disability. The following procedures shall be followed:
a. The contractor will conduct periodic inspec�ons of project sites to ensure that working condi�ons and
employee facili�es do not indicate discriminatory treatment of project site personnel.
b. The contractor will periodically evaluate the spread of wages paid within each classifica�on to determine
any evidence of discriminatory wage prac�ces.
c. The contractor will periodically review selected personnel ac�ons in depth to determine whether there is
evidence of discrimina�on. Where evidence is found, the contractor will promptly take correc�ve ac�on. If the
review indicates that the discrimina�on may extend beyond the ac�ons reviewed, such correc�ve ac�on shall
include all affected persons.
d. The contractor will promptly inves�gate all complaints of alleged discrimina�on made to the contractor in
connec�on with its obliga�ons under this contract, will atempt to resolve such complaints, and will take
appropriate correc�ve ac�on 3 within a reasonable �me. If the inves�ga�on indicates that the discrimina�on
may affect persons other than the complainant, such correc�ve ac�on shall include such other persons. Upon
comple�on of each inves�ga�on, the contractor will inform every complainant of all of their avenues of appeal.
6. Training and Promo�on:
a. The contractor will assist in loca�ng, qualifying, and increasing the skills of minori�es and women who are
applicants for employment or current employees. Such efforts should be aimed at developing full journey level
status employees in the type of trade or job classifica�on involved.
b. Consistent with the contractor's work force requirements and as permissible under Federal and State
regula�ons, the contractor shall make full use of training programs (i.e., appren�ceship and on-the-job training
programs for the geographical area of contract performance). In the event a special provision for training is
provided under this contract, this subparagraph will be superseded as indicated in the special provision. The
contrac�ng agency may reserve training posi�ons for persons who receive welfare assistance in accordance with
23 U.S.C. 140(a).
c. The contractor will advise employees and applicants for employment of available training programs and
entrance requirements for each.
d. The contractor will periodically review the training and promo�on poten�al of employees who are
minori�es and women and will encourage eligible employees to apply for such training and promo�on.
7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will
use good faith efforts to obtain the coopera�on of such unions to increase opportuni�es for minori�es and
women. 23 CFR 230.409. Ac�ons by the contractor, either directly or through a contractor's associa�on ac�ng
as agent, will include the procedures set forth below:
a. The contractor will use good faith efforts to develop, in coopera�on with the unions, joint training programs
aimed toward qualifying more minori�es and women for membership in the unions and increasing the skills of
minori�es and women so that they may qualify for higher paying employment.
b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the
end that such union will be contractually bound to refer applicants without regard to their race, color, religion,
sex, sexual orienta�on, gender iden�ty, na�onal origin, age, or disability.
c. The contractor is to obtain informa�on as to the referral prac�ces and policies of the labor union except
that to the extent such informa�on is within the exclusive possession of the labor union and such labor union
refuses to furnish such informa�on to the contractor, the contractor shall so cer�fy to the contrac�ng agency
and shall set forth what efforts have been made to obtain such informa�on.
d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the
�me limit set forth in the collec�ve bargaining agreement, the contractor will, through independent recruitment
efforts, fill the employment vacancies without regard to race, color, religion, sex, sexual orienta�on, gender
iden�ty, na�onal origin, age, or disability; making full efforts to obtain qualified and/or qualifiable minori�es and
women. The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive
referrals under the terms of a collec�ve bargaining agreement) does not relieve the contractor from the
requirements of this paragraph. In the event the union referral prac�ce prevents the contractor from mee�ng
the obliga�ons pursuant to Execu�ve Order 11246, as amended, and these special provisions, such contractor
shall immediately no�fy the contrac�ng agency.
8. Reasonable Accommoda�on for Applicants / Employees with Disabili�es: The contractor must be familiar
with the requirements for and comply with the Americans with Disabili�es Act and all rules and regula�ons
established thereunder. Employers must provide reasonable accommoda�on in all employment ac�vi�es unless
to do so would cause an undue hardship.
9. Selec�on of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not
discriminate on the grounds of race, color, religion, sex, sexual orienta�on, gender iden�ty, na�onal origin, age,
or disability in the selec�on and reten�on of subcontractors, including procurement of materials and leases of
equipment. The contractor shall take all necessary and reasonable steps to ensure nondiscrimina�on in the
administra�on of this contract.
a. The contractor shall no�fy all poten�al subcontractors, suppliers, and lessors of their EEO obliga�ons
under this contract.
b. The contractor will use good faith efforts to ensure subcontractor compliance with their EEO obliga�ons.
10. Assurances Required:
a. The requirements of 49 CFR Part 26 and the State DOT’s FHWA-approved Disadvantaged Business
Enterprise (DBE) program are incorporated by reference.
b. The contractor, subrecipient or subcontractor shall not discriminate on the basis of race, color, na�onal
origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49
CFR part 26 in the award and administra�on of DOT-assisted contracts. Failure by the contractor to carry out
these requirements is a material breach of this contract, which may result in the termina�on of this contract or
such other remedy as the recipient deems appropriate, which may include, but is not limited to: (1) Withholding
monthly progress payments; (2) Assessing sanc�ons; (3) Liquidated damages; and/or (4) Disqualifying the
contractor from future bidding as nonresponsible.
c. The Title VI and nondiscrimina�on provisions of U.S. DOT Order 1050.2A at Appendixes A and E are
incorporated by reference. 49 CFR Part 21.
11. Records and Reports: The contractor shall keep such records as necessary to document compliance with the
EEO requirements. Such records shall be retained for a period of three years following the date of the final
payment to the contractor for all contract work and shall be available at reasonable �mes and places for
inspec�on by authorized representa�ves of the contrac�ng agency and the FHWA.
a. The records kept by the contractor shall document the following:
(1) The number and work hours of minority and nonminority group members and women employed in
each work classifica�on on the project;
(2) The progress and efforts being made in coopera�on with unions, when applicable, to increase
employment opportuni�es for minori�es and women; and
(3) The progress and efforts being made in loca�ng, hiring, training, qualifying, and upgrading minori�es
and women.
b. The contractors and subcontractors will submit an annual report to the contrac�ng agency each July for
the dura�on of the project indica�ng the number of minority, women, and nonminority group employees
currently engaged in each work classifica�on required by the contract work. This informa�on is to be reported
on Form FHWA-1391. The staffing data should represent the project work force on board in all or any part of the
last payroll period preceding the end of July. If on-the-job training is being required by special provision, the
contractor will be required to collect and report training data. The employment data should reflect the work
force on board during all or any part of the last payroll period preceding the end of July.
(B) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148).
The following provisions are from the U.S. Department of Labor regula�ons in 29 CFR 5.5 “Contract provisions
and related maters” with minor revisions to conform to the FHWA1273 format and FHWA program
requirements.
1. Minimum wages (29 CFR 5.5)
a. Wage rates and fringe benefits. All laborers and mechanics employed or working upon the site of the work
(or otherwise working in construc�on or development of the project under a development statute), will be paid
uncondi�onally and not less o�en than once a week, and without subsequent deduc�on or rebate on any
account (except such payroll deduc�ons as are permited by regula�ons issued by the Secretary of Labor under
the Copeland Act (29 CFR part 3)), the full amount of basic hourly wages and bona fide fringe benefits (or cash
equivalents thereof) due at �me of payment computed at rates not less than those contained in the wage
determina�on of the Secretary of Labor which is atached hereto and made a part hereof, regardless of any
contractual rela�onship which may be alleged to exist between the contractor and such laborers and mechanics.
As provided in paragraphs (d) and (e) of 29 CFR 5.5, the appropriate wage determina�ons are effec�ve by
opera�on of law even if they have not been atached to the contract. Contribu�ons made or costs reasonably
an�cipated for bona fide fringe benefits under the Davis-Bacon Act (40 U.S.C. 3141(2)(B)) on behalf of laborers
or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph
1.e. of this sec�on; also, regular contribu�ons made or costs incurred for more than a weekly period (but not
less o�en than quarterly) under plans, funds, or programs which cover the par�cular weekly period, are deemed
to be construc�vely made or incurred during such weekly period. Such laborers and mechanics must be paid the
appropriate wage rate and fringe benefits on the wage determina�on for the classifica�on(s) of work actually
performed, without regard to skill, except as provided in paragraph 4. of this sec�on. Laborers or mechanics
performing work in more than one classifica�on may be compensated at the rate specified for each classifica�on
for the �me actually worked therein: Provided, That the employer's payroll records accurately set forth the �me
spent in each classifica�on in which work is performed. The wage determina�on (including any addi�onal
classifica�ons and wage rates conformed under paragraph 1.c. of this sec�on) and the Davis-Bacon poster (WH–
1321) must be posted at all �mes by the contractor and its subcontractors at the site of the work in a prominent
and accessible place where it can be easily seen by the workers.
b. Frequently recurring classifica�ons.
(1) In addi�on to wage and fringe benefit rates that have been determined to be prevailing under the
procedures set forth in 29 CFR part 1, a wage determina�on may contain, pursuant to § 1.3(f), wage and
fringe benefit rates for classifica�ons of laborers and mechanics for which conformance requests are
regularly submited pursuant to paragraph 1.c. of this sec�on, provided that:
(i) The work performed by the classifica�on is not performed by a classifica�on in the wage
determina�on for which a prevailing wage rate has been determined;
(ii) The classifica�on is used in the area by the construc�on industry; and
(iii) The wage rate for the classifica�on bears a reasonable rela�onship to the prevailing wage rates
contained in the wage determina�on. The Administrator will establish wage rates for such
classifica�ons in accordance with paragraph 1.c.(1)(iii) of this sec�on. Work performed in such a
classifica�on must be paid at no less than the wage and fringe benefit rate listed on the wage
determina�on for such classifica�on.
c. Conformance.
(1) The contrac�ng officer must require that any class of laborers or mechanics, including helpers, which is
not listed in the wage determina�on and which is to be employed under the contract be classified in
conformance with the wage determina�on. Conformance of an addi�onal classifica�on and wage rate and
fringe benefits is appropriate only when the following criteria have been met:
(i) The work to be performed by the classifica�on requested is not performed by a classifica�on in the
wage determina�on; and
(ii) The classifica�on is used in the area by the construc�on industry; and
(iii) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable rela�onship to
the wage rates contained in the wage determina�on.
(2) The conformance process may not be used to split, subdivide, or otherwise avoid applica�on of
classifica�ons listed in the wage determina�on.
(3) If the contractor and the laborers and mechanics to be employed in the classifica�on (if known), or their
representa�ves, and the contrac�ng officer agree on the classifica�on and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the ac�on taken will be sent by the
contrac�ng officer by email to DBAconformance@dol.gov. The Administrator, or an authorized
representa�ve, will approve, modify, or disapprove every addi�onal classifica�on ac�on within 30 days of
receipt and so advise the contrac�ng officer or will no�fy the contrac�ng officer within the 30–day period
that addi�onal �me is necessary.
(4) In the event the contractor, the laborers or mechanics to be employed in the classifica�on or their
representa�ves, and the contrac�ng officer do not agree on the proposed classifica�on and wage rate
(including the amount designated for fringe benefits, where appropriate), the contrac�ng officer will, by
email to DBAconformance@dol.gov, refer the ques�ons, including the views of all interested par�es and
the recommenda�on of the contrac�ng officer, to the Administrator for determina�on. The Administrator,
or an authorized representa�ve, will issue a determina�on within 30 days of receipt and so advise the
contrac�ng officer or will no�fy the contrac�ng officer within the 30–day period that addi�onal �me is
necessary.
(5) The contrac�ng officer must promptly no�fy the contractor of the ac�on taken by the Wage and Hour
Division under paragraphs 1.c.(3) and (4) of this sec�on. The contractor must furnish a writen copy of such
determina�on to each affected worker or it must be posted as a part of the wage determina�on. The wage
rate (including fringe benefits where appropriate) determined pursuant to paragraph 1.c.(3) or (4) of this
sec�on must be paid to all workers performing work in the classifica�on under this contract from the first
day on which work is performed in the classifica�on.
d. Fringe benefits not expressed as an hourly rate. Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly
rate, the contractor may either pay the benefit as stated in the wage determina�on or may pay another bona
fide fringe benefit or an hourly cash equivalent thereof.
e. Unfunded plans. If the contractor does not make payments to a trustee or other third person, the
contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably
an�cipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of
Labor has found, upon the writen request of the contractor, in accordance with the criteria set forth in
§ 5.28, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may
require the contractor to set aside in a separate account assets for the mee�ng of obliga�ons under the plan
or program.
f. Interest. In the even t of a failure to pay all or part of the wages required by the contract, the contractor
will be required to pay interest on any underpayment of wages.
2. Withholding (29 CFR 5.5)
a. Withholding requirements. The contrac�ng agency may, upon its own ac�on, or must, upon writen
request of an authorized representa�ve of the Department of Labor, withhold or cause to be withheld from the
contractor so much of the accrued payments or advances as may be considered necessary to sa�sfy the liabili�es
of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest,
required by the clauses set forth in this sec�on for viola�ons of this contract, or to sa�sfy any such liabili�es
required by any other Federal contract, or federally assisted contract subject to Davis-Bacon labor standards,
that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the
contractor under this contract, any other Federal contract with the same prime contractor, or any other federally
assisted contract that is subject to Davis-Bacon labor standards requirements and is held by the same prime
contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such
funds may be used to sa�sfy the contractor liability for which the funds were withheld. In the event of a
contractor's failure to pay any laborer or mechanic, including any appren�ce or helper working on the site of the
work all or part of the wages required by the contract, or upon the contractor's failure to submit the required
records as discussed in paragraph 3.d. of this sec�on, the contrac�ng agency may on its own ini�a�ve and a�er
writen no�ce to the contractor, take such ac�on as may be necessary to cause the suspension of any further
payment, advance, or guarantee of funds un�l such viola�ons have ceased.
b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance
with paragraph 2.a. of this sec�on or Sec�on V, paragraph 3.a., or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limita�on performance bond sure�es and payment bond
sure�es;
(2) A contrac�ng agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor,
or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901–3907.
3. Records and cer�fied payrolls (29 CFR 5.5)
a. Basic record requirements
(1) Length of record reten�on. All regular payrolls and other basic records must be maintained by the
contractor and any subcontractor during the course of the work and preserved for all laborers and
mechanics working at the site of the work (or otherwise working in construc�on or development of the
project under a development statute) for a period of at least 3 years a�er all the work on the prime
contract is completed.
(2) Informa�on required. Such records must contain the name; Social Security number; last known
address, telephone number, and email address of each such worker; each worker's correct classifica�on(s)
of work actually performed; hourly rates of wages paid (including rates of contribu�ons or costs
an�cipated for bona fide fringe benefits or cash equivalents thereof of the types described in 40 U.S.C.
3141(2)(B) of the Davis-Bacon Act); daily and weekly number of hours actually worked in total and on
each covered contract; deduc�ons made; and actual wages paid.
(3) Addi�onal records rela�ng to fringe benefits. Whenever the Secretary of Labor has found under
paragraph 1.e. of this sec�on that the wages of any laborer or mechanic include the amount of any costs
reasonably an�cipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of
the Davis-Bacon Act, the contractor must maintain records which show that the commitment to provide
such benefits is enforceable, that the plan or program is financially responsible, and that the plan or
program has been communicated in wri�ng to the laborers or mechanics affected, and records which
show the costs an�cipated or the actual cost incurred in providing such benefits.
(4) Addi�onal records rela�ng to appren�ceship. Contractors with appren�ces working under approved
programs must maintain writen evidence of the registra�on of appren�ceship programs, the registra�on
of the appren�ces, and the ra�os and wage rates prescribed in the applicable programs.
b. Cer�fied payroll requirements
(1) Frequency and method of submission. The contractor or subcontractor must submit weekly, for each
week in which any DBA- or Related Acts covered work is performed, cer�fied payrolls to the contrac�ng
agency. The prime contractor is responsible for the submission of all cer�fied payrolls by all
subcontractors. A contrac�ng agency or prime contractor may permit or require contractors to submit
cer�fied payrolls through an electronic system, as long as the electronic system requires a legally valid
electronic signature; the system allows the contractor, the contrac�ng agency, and the Department of
Labor to access the cer�fied payrolls upon request for at least 3 years a�er the work on the prime contract
has been completed; and the contrac�ng agency or prime contractor permits other methods of
submission in situa�ons where the contractor is unable or limited in its ability to use or access the
electronic system.
(2) Informa�on required. The cer�fied payrolls submited must set out accurately and completely all of
the informa�on required to be maintained under paragraph 3.a.(2) of this sec�on, except that full Social
Security numbers and last known addresses, telephone numbers, and email addresses must not be
included on weekly transmitals. Instead, the cer�fied payrolls need only include an individually
iden�fying number for each worker ( e.g., the last four digits of the worker's Social Security number). The
required weekly cer�fied payroll informa�on may be submited using Op�onal Form WH–347 or in any
other format desired. Op�onal Form WH–347 is available for this purpose from the Wage and Hour
Division website at htps://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347/.pdf or its successor
website. It is not a viola�on of this sec�on for a prime contractor to require a subcontractor to provide
full Social Security numbers and last known addresses, telephone numbers, and email addresses to the
prime contractor for its own records, without weekly submission by the subcontractor to the contrac�ng
agency.
(3) Statement of Compliance. Each cer�fied payroll submited must be accompanied by a “Statement of
Compliance,” signed by the contractor or subcontractor, or the contractor's or subcontractor's agent who
pays or supervises the payment of the persons working on the contract, and must cer�fy the following:
(i) That the cer�fied payroll for the payroll period contains the informa�on required to be provided
under paragraph 3.b. of this sec�on, the appropriate informa�on and basic records are being
maintained under paragraph 3.a. of this sec�on, and such informa�on and records are correct and
complete;
(ii) That each laborer or mechanic (including each helper and appren�ce) working on the contract
during the payroll period has been paid the full weekly wages earned, without rebate, either directly
or indirectly, and that no deduc�ons have been made either directly or indirectly from the full wages
earned, other than permissible deduc�ons as set forth in 29 CFR part 3; and
(iii) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefits or cash equivalents for the classifica�on(s) of work actually performed, as specified in the
applicable wage determina�on incorporated into the contract.
(4) Use of Op�onal Form WH–347. The weekly submission of a properly executed cer�fica�on set forth
on the reverse side of Op�onal Form WH–347 will sa�sfy the requirement for submission of the
“Statement of Compliance” required by paragraph 3.b.(3) of this sec�on.
(5) Signature. The signature by the contractor, subcontractor, or the contractor's or subcontractor's agent
must be an original handwriten signature or a legally valid electronic signature.
(6) Falsifica�on. The falsifica�on of any of the above cer�fica�ons may subject the contractor or
subcontractor to civil or criminal prosecu�on under 18 U.S.C. 1001 and 31 U.S.C. 3729.
(7) Length of cer�fied payroll reten�on. The contractor or subcontractor must preserve all cer�fied
payrolls during the course of the work and for a period of 3 years a�er all the work on the prime contract
is completed.
c. Contracts, subcontracts, and related documents. The contractor or subcontractor must maintain this
contract or subcontract and related documents including, without limita�on, bids, proposals, amendments,
modifica�ons, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts,
and related documents during the course of the work and for a period of 3 years a�er all the work on the
prime contract is completed.
d. Required disclosures and access
(1) Required record disclosures and access to workers. The contractor or subcontractor must make the
records required under paragraphs 3.a. through 3.c. of this sec�on, and any other documents that the
contrac�ng agency, the State DOT, the FHWA, or the Department of Labor deems necessary to determine
compliance with the labor standards provisions of any of the applicable statutes referenced by § 5.1,
available for inspec�on, copying, or transcrip�on by authorized representa�ves of the contrac�ng agency,
the State DOT, the FHWA, or the Department of Labor, and must permit such representa�ves to interview
workers during working hours on the job.
(2) Sanc�ons for non-compliance with records and worker access requirements. If the contractor or
subcontractor fails to submit the required records or to make them available, or refuses to permit worker
interviews during working hours on the job, the Federal agency may, a�er writen no�ce to the contractor,
sponsor, applicant, owner, or other en�ty, as the case may be, that maintains such records or that employs
such workers, take such ac�on as may be necessary to cause the suspension of any further payment,
advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to
make such records available, or to permit worker interviews during working hours on the job, may be
grounds for debarment ac�on pursuant to § 5.12. In addi�on, any contractor or other person that fails to
submit the required records or make those records available to WHD within the �me WHD requests that
the records be produced will be precluded from introducing as evidence in an administra�ve proceeding
under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD
will take into considera�on a reasonable request from the contractor or person for an extension of the
�me for submission of records. WHD will determine the reasonableness of the request and may consider,
among other things, the loca�on of the records and the volume of produc�on.
(3) Required informa�on disclosures. Contractors and subcontractors must maintain the full Social
Security number and last known address, telephone number, and email address of each covered worker,
and must provide them upon request to the contrac�ng agency, the State DOT, the FHWA, the contractor,
or the Wage and Hour Division of the Department of Labor for purposes of an inves�ga�on or other
compliance ac�on.
4. Appren�ces and equal employment opportunity (29 CFR 5.5)
a. Appren�ces
(1) Rate of pay. Appren�ces will be permited to work at less than the predetermined rate for the work
they perform when they are employed pursuant to and individually registered in a bona fide
appren�ceship program registered with the U.S. Department of Labor, Employment and Training
Administra�on, Office of Appren�ceship (OA), or with a State Appren�ceship Agency recognized by the
OA. A person who is not individually registered in the program, but who has been cer�fied by the OA or
a State Appren�ceship Agency (where appropriate) to be eligible for proba�onary employment as an
appren�ce, will be permited to work at less than the predetermined rate for the work they perform in
the first 90 days of proba�onary employment as an appren�ce in such a program. In the event the OA or
a State Appren�ceship Agency recognized by the OA withdraws approval of an appren�ceship program,
the contractor will no longer be permited to use appren�ces at less than the applicable predetermined
rate for the work performed un�l an acceptable program is approved.
(2) Fringe benefits. Appren�ces must be paid fringe benefits in accordance with the provisions of the
appren�ceship program. If the appren�ceship program does not specify fringe benefits, appren�ces
must be paid the full amount of fringe benefits listed on the wage determina�on for the applicable
classifica�on. If the Administrator determines that a different prac�ce prevails for the applicable
appren�ce classifica�on, fringe benefits must be paid in accordance with that determina�on.
(3) Appren�ceship ra�o. The allowable ra�o of appren�ces to journey workers on the job site in any cra�
classifica�on must not be greater than the ra�o permited to the contractor as to the en�re work force
under the registered program or the ra�o applicable to the locality of the project pursuant to paragraph
4.a.(4) of this sec�on. Any worker listed on a payroll at an appren�ce wage rate, who is not registered or
otherwise employed as stated in paragraph 4.a.(1) of this sec�on, must be paid not less than the
applicable wage rate on the wage determina�on for the classifica�on of work actually performed. In
addi�on, any appren�ce performing work on the job site in excess of the ra�o permited under this
sec�on must be paid not less than the applicable wage rate on the wage determina�on for the work
actually performed.
(4) Reciprocity of ra�os and wage rates. Where a contractor is performing construc�on on a project in a
locality other than the locality in which its program is registered, the ra�os and wage rates (expressed in
percentages of the journey worker's hourly rate) applicable within the locality in which the construc�on
is being performed must be observed. If there is no applicable ra�o or wage rate for the locality of the
project, the ra�o and wage rate specified in the contractor's registered program must be observed.
b. Equal employment opportunity. The use of appren�ces and journey workers under this part must be in
conformity with the equal employment opportunity requirements of Execu�ve Order 11246, as amended,
and 29 CFR part 30.
c. Appren�ces and Trainees (programs of the U.S. DOT). Appren�ces and trainees working under
appren�ceship and skill training programs which have been cer�fied by the Secretary of Transporta�on as
promo�ng EEO in connec�on with Federal-aid highway construc�on programs are not subject to the
requirements of paragraph 4 of this Sec�on IV. 23 CFR 230.111(e)(2). The straight �me hourly wage rates for
appren�ces and trainees under such programs will be established by the par�cular programs. The ra�o of
appren�ces and trainees to journey workers shall not be greater than permited by the terms of the
par�cular program.
5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR
part 3, which are incorporated by reference in this contract as provided in 29 CFR 5.5.
6. Subcontracts. The contractor or subcontractor must insert FHWA-1273 in any subcontracts, along with the
applicable wage determina�on(s) and such other clauses or contract modifica�ons as the contrac�ng agency
may by appropriate instruc�ons require, and a clause requiring the subcontractors to include these clauses and
wage determina�on(s) in any lower �er subcontracts. The prime contractor is responsible for the compliance by
any subcontractor or lower �er subcontractor with all the contract clauses in this sec�on. In the event of any
viola�ons of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any
unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any
workers of lower-�er subcontractors, and may be subject to debarment, as appropriate. 29 CFR 5.5.
7. Contract termina�on: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for
termina�on of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
8. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpreta�ons of the Davis
Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract
as provided in 29 CFR 5.5.
9. Disputes concerning labor standards. As provided in 29 CFR 5.5, disputes arising out of the labor standards
provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall
be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7.
Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors)
and the contrac�ng agency, the U.S. Department of Labor, or the employees or their representa�ves.
10. Cer�fica�on of eligibility.
a. By entering into this contract, the contractor cer�fies that neither it nor any person or firm who has an
interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue
of 40 U.S.C. 3144(b) or § 5.12(a).
b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government
contract by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
c. The penalty for making false statements is prescribed in the U.S. Code, Title 18 Crimes and Criminal
Procedure, 18 U.S.C. 1001.
11. An�-retalia�on. It is unlawful for any person to discharge, demote, in�midate, threaten, restrain, coerce,
blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote,
in�midate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker
or job applicant for:
a. No�fying any contractor of any conduct which the worker reasonably believes cons�tutes a viola�on of
the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
b. Filing any complaint, ini�a�ng or causing to be ini�ated any proceeding, or otherwise asser�ng or seeking
to assert on behalf of themselves or others any right or protec�on under the DBA, Related Acts, this part, or
29 CFR part 1 or 3;
c. Coopera�ng in any inves�ga�on or other compliance ac�on, or tes�fying in any proceeding under the DBA,
Related Acts, this part, or 29 CFR part 1 or 3; or
d. Informing any other person about their rights under the DBA, Related Acts, this part, or 29 CFR part 1 or
3.
(C) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708).
Pursuant to 29 CFR 5.5(b), the following clauses apply to any Federal-aid construc�on contract in an amount in
excess of $100,000 and subject to the over�me provisions of the Contract Work Hours and Safety Standards Act.
These clauses shall be inserted in addi�on to the clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in this
paragraph, the terms laborers and mechanics include watchpersons and guards.
1. Over�me requirements. No contractor or subcontractor contrac�ng for any part of the contract work which
may require or involve the employment of laborers or mechanics shall require or permit any such laborer or
mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such
workweek unless such laborer or mechanic receives compensa�on at a rate not less than one and one-half �mes
the basic rate of pay for all hours worked in excess of forty hours in such workweek. 29 CFR 5.5.
2. Viola�on; liability for unpaid wages; liquidated damages. In the event of any viola�on of the clause set forth
in paragraph 1. of this sec�on the contractor and any subcontractor responsible therefor shall be liable for the
unpaid wages and interest from the date of the underpayment. In addi�on, such contractor and subcontractor
shall be liable to the United States (in the case of work done under contract for the District of Columbia or a
territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be
computed with respect to each individual laborer or mechanic, including watchpersons and guards, employed
in viola�on of the clause set forth in paragraph 1. of this sec�on, in the sum currently provided in 29 CFR
5.5(b)(2)* for each calendar day on which such individual was required or permited to work in excess of the
standard workweek of forty hours without payment of the over�me wages required by the clause set forth in
paragraph 1. of this sec�on.
* $31 as of January 15, 2023 (See 88 FR 88 FR 2210) as may be adjusted annually by the Department of Labor,
pursuant to the Federal Civil Penal�es Infla�on Adjustment Act of 1990.
3. Withholding for unpaid wages and liquidated damages
a. Withholding process. The FHWA or the contrac�ng agency may, upon its own ac�on, or must, upon writen
request of an authorized representa�ve of the Department of Labor, withhold or cause to be withheld from
the contractor so much of the accrued payments or advances as may be considered necessary to sa�sfy the
liabili�es of the prime contractor or any subcontractor for any unpaid wages; monetary relief, including
interest; and liquidated damages required by the clauses set forth in this sec�on on this contract, any other
Federal contract with the same prime contractor, or any other federally assisted contract subject to the
Contract Work Hours and Safety Standards Act that is held by the same prime contractor (as defined in § 5.2).
The necessary funds may be withheld from the contractor under this contract, any other Federal contract
with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work
Hours and Safety Standards Act and is held by the same prime contractor, regardless of whether the other
contract was awarded or assisted by the same agency, and such funds may be used to sa�sfy the contractor
liability for which the funds were withheld.
b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance
with Sec�on IV paragraph 2.a. or paragraph 3.a. of this sec�on, or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limita�on performance bond sure�es and payment bond
sure�es;
(2) A contrac�ng agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor,
or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901–3907.
4. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth in
paragraphs 1. through 5. of this sec�on and a clause requiring the subcontractors to include these clauses in any
lower �er subcontracts. The prime contractor is responsible for compliance by any subcontractor or lower �er
subcontractor with the clauses set forth in paragraphs 1. through 5. In the event of any viola�ons of these
clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and
monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower �er
subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate.
5. An�-retalia�on. It is unlawful for any person to discharge, demote, in�midate, threaten, restrain, coerce,
blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote,
in�midate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker
or job applicant for:
a. No�fying any contractor of any conduct which the worker reasonably believes cons�tutes a viola�on of the
Contract Work Hours and Safety Standards Act (CWHSSA) or its implemen�ng regula�ons in this part;
b. Filing any complaint, ini�a�ng or causing to be ini�ated any proceeding, or otherwise asser�ng or seeking
to assert on behalf of themselves or others any right or protec�on under CWHSSA or this part;
c. Coopera�ng in any inves�ga�on or other compliance ac�on, or tes�fying in any proceeding under CWHSSA
or this part; or
d. Informing any other person about their rights under CWHSSA or this part.
(D) Rights to Inven�ons Made Under a Contract or Agreement. If the Federal award meets the defini�on
of “funding agreement” under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract
with a small business firm or nonprofit organiza�on regarding the subs�tu�on of par�es, assignment or
performance of experimental, developmental, or research work under that “funding agreement,” the recipient
or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inven�ons Made by Nonprofit
Organiza�ons and Small Business Firms Under Government Grants, Contracts and Coopera�ve Agreements,”
and any implemen�ng regula�ons issued by the awarding agency.
(E) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollu�on Control Act (33 U.S.C. 1251-
1387), as amended
By submission of this bid/proposal or the execu�on of this contract or subcontract, as appropriate, the bidder,
proposer, Federal-aid construc�on contractor, subcontractor, supplier, or vendor agrees to comply with all
applicable standards, orders or regula�ons issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the
Federal Water Pollu�on Control Act, as amended (33 U.S.C. 1251-1387). Viola�ons must be reported to the
Federal Highway Administra�on and the Regional Office of the Environmental Protec�on Agency. 2 CFR Part 200,
Appendix II. The contractor agrees to include or cause to be included the requirements of this Sec�on in every
subcontract, and further agrees to take such ac�on as the contrac�ng agency may direct as a means of enforcing
such requirements. 2 CFR 200.327.
(F) Debarment and Suspension (Execu�ve Orders 12549 and 12689)
1. Instruc�ons for Cer�fica�on – First Tier Par�cipants:
a. By signing and submi�ng this proposal, the prospec�ve first �er par�cipant is providing the cer�fica�on
set out below.
b. The inability of a person to provide the cer�fica�on set out below will not necessarily result in denial of
par�cipa�on in this covered transac�on. The prospec�ve first �er par�cipant shall submit an explana�on of
why it cannot provide the cer�fica�on set out below. The cer�fica�on or explana�on will be considered in
connec�on with the department or agency's determina�on whether to enter into this transac�on. However,
failure of the prospec�ve first �er par�cipant to furnish a cer�fica�on or an explana�on shall disqualify such
a person from par�cipa�on in this transac�on. 2 CFR 180.320.
c. The cer�fica�on in this clause is a material representa�on of fact upon which reliance was placed when the
contrac�ng agency determined to enter into this transac�on. If it is later determined that the prospec�ve
par�cipant knowingly rendered an erroneous cer�fica�on, in addi�on to other remedies available to the
Federal Government, the contrac�ng agency may terminate this transac�on for cause of default. 2 CFR
180.325.
d. The prospec�ve first �er par�cipant shall provide immediate writen no�ce to the contrac�ng agency to
whom this proposal is submited if any �me the prospec�ve first �er par�cipant learns that its cer�fica�on
was erroneous when submited or has become erroneous by reason of changed circumstances. 2 CFR 180.345
and 180.350.
e. The terms "covered transac�on," "debarred," "suspended," "ineligible," "par�cipant," "person,"
"principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I,
180.900-180.1020, and 1200. “First Tier Covered Transac�ons” refers to any covered transac�on between a
recipient or subrecipient of Federal funds and a par�cipant (such as the prime or general contract). “Lower
Tier Covered Transac�ons” refers to any covered transac�on under a First Tier Covered Transac�on (such as
subcontracts). “First Tier Par�cipant” refers to the par�cipant who has entered into a covered transac�on
with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier
Par�cipant” refers any par�cipant who has entered into a covered transac�on with a First Tier Par�cipant or
other Lower Tier Par�cipants (such as subcontractors and suppliers).
f. The prospec�ve first �er par�cipant agrees by submi�ng this proposal that, should the proposed covered
transac�on be entered into, it shall not knowingly enter into any lower �er covered transac�on with a person
who is debarred, suspended, declared ineligible, or voluntarily excluded from par�cipa�on in this covered
transac�on, unless authorized by the department or agency entering into this transac�on. 2 CFR 180.330.
g. The prospec�ve first �er par�cipant further agrees by submi�ng this proposal that it will include the clause
�tled "Cer�fica�on Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier
Covered Transac�ons," provided by the department or contrac�ng agency, entering into this covered
transac�on, without modifica�on, in all lower �er covered transac�ons and in all solicita�ons for lower �er
covered transac�ons exceeding the $25,000 threshold. 2 CFR 180.220 and 180.300.
h. A par�cipant in a covered transac�on may rely upon a cer�fica�on of a prospec�ve par�cipant in a lower
�er covered transac�on that is not debarred, suspended, ineligible, or voluntarily excluded from the covered
transac�on, unless it knows that the cer�fica�on is erroneous. 2 CFR 180.300; 180.320, and 180.325. A
par�cipant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible
to par�cipate in covered transac�ons. 2 CFR 180.335. To verify the eligibility of its principals, as well as the
eligibility of any lower �er prospec�ve par�cipants, each par�cipant may, but is not required to, check the
System for Award Management website (htps://www.sam.gov/). 2 CFR 180.300, 180.320, and 180.325.
i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records
in order to render in good faith the cer�fica�on required by this clause. The knowledge and informa�on of
the prospec�ve par�cipant is not required to exceed that which is normally possessed by a prudent person
in the ordinary course of business dealings.
j. Except for transac�ons authorized under paragraph (f) of these instruc�ons, if a par�cipant in a covered
transac�on knowingly enters into a lower �er covered transac�on with a person who is suspended, debarred,
ineligible, or voluntarily excluded from par�cipa�on in this transac�on, in addi�on to other remedies available
to the Federal Government, the department or agency may terminate this transac�on for cause or default. 2
CFR 180.325.
2. Cer�fica�on Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – First Tier
Par�cipants:
a. The prospec�ve first �er par�cipant cer�fies to the best of its knowledge and belief, that it and its principals:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from par�cipa�ng in covered transac�ons by any Federal department or agency, 2 CFR 180.335;.
(2) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment
rendered against them for commission of fraud or a criminal offense in connec�on with obtaining,
atemp�ng to obtain, or performing a public (Federal, State, or local) transac�on or contract under a public
transac�on; viola�on of Federal or State an�trust statutes or commission of embezzlement, the�, forgery,
bribery, falsifica�on or destruc�on of records, making false statements, or receiving stolen property, 2 CFR
180.800;
(3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental en�ty
(Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this
cer�fica�on, 2 CFR 180.700 and 180.800; and
(4) Have not within a three-year period preceding this applica�on/proposal had one or more public
transac�ons (Federal, State or local) terminated for cause or default. 2 CFR 180.335(d).
(5) Are not a corpora�on that has been convicted of a felony viola�on under any Federal law within the
two-year period preceding this proposal (USDOT Order 4200.6 implemen�ng appropria�ons act
requirements); and
(6) Are not a corpora�on with any unpaid Federal tax liability that has been assessed, for which all judicial
and administra�ve remedies have been exhausted, or have lapsed, and that is not being paid in a �mely
manner pursuant to an agreement with the authority responsible for collec�ng the tax liability (USDOT
Order 4200.6 implemen�ng appropria�ons act requirements).
b. Where the prospec�ve par�cipant is unable to cer�fy to any of the statements in this cer�fica�on, such
prospec�ve par�cipant should atach an explana�on to this proposal. 2 CFR 180.335 and 180.340.
3. Instruc�ons for Cer�fica�on - Lower Tier Par�cipants: (Applicable to all subcontracts, purchase orders,
and other lower �er transac�ons requiring prior FHWA approval or es�mated to cost $25,000 or more -
2 CFR Parts 180 and 1200). 2 CFR 180.220 and 1200.220.
a. By signing and submi�ng this proposal, the prospec�ve lower �er par�cipant is providing the
cer�fica�on set out below.
b. The cer�fica�on in this clause is a material representa�on of fact upon which reliance was placed
when this transac�on was entered into. If it is later determined that the prospec�ve lower �er
par�cipant knowingly rendered an erroneous cer�fica�on, in addi�on to other remedies available to
the Federal Government, the department, or agency with which this transac�on originated may
pursue available remedies, including suspension and/or debarment.
c. The prospec�ve lower �er par�cipant shall provide immediate writen no�ce to the person to which
this proposal is submited if at any �me the prospec�ve lower �er par�cipant learns that its
cer�fica�on was erroneous by reason of changed circumstances. 2 CFR 180.365.
d. The terms "covered transac�on," "debarred," "suspended," "ineligible," "par�cipant," "person,"
"principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart
I, 180.900 – 180.1020, and 1200. You may contact the person to which this proposal is submited for
assistance in obtaining a copy of those regula�ons. “First Tier Covered Transac�ons” refers to any
covered transac�on between a recipient or subrecipient of Federal funds and a par�cipant (such as
the prime or general contract). “Lower Tier Covered Transac�ons” refers to any covered transac�on
under a First Tier Covered Transac�on (such as subcontracts). “First Tier Par�cipant” refers to the
par�cipant who has entered into a covered transac�on with a recipient or subrecipient of Federal
funds (such as the prime or general contractor). “Lower Tier Par�cipant” refers any par�cipant who
has entered into a covered transac�on with a First Tier Par�cipant or other Lower Tier Par�cipants
(such as subcontractors and suppliers).
e. The prospec�ve lower �er par�cipant agrees by submi�ng this proposal that, should the proposed
covered transac�on be entered into, it shall not knowingly enter into any lower �er covered
transac�on with a person who is debarred, suspended, declared ineligible, or voluntarily excluded
from par�cipa�on in this covered transac�on, unless authorized by the department or agency with
which this transac�on originated. 2 CFR 1200.220 and 1200.332.
f. The prospec�ve lower �er par�cipant further agrees by submi�ng this proposal that it will include
this clause �tled "Cer�fica�on Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion-Lower Tier Covered Transac�on," without modifica�on, in all lower �er covered transac�ons
and in all solicita�ons for lower �er covered transac�ons exceeding the $25,000 threshold. 2 CFR
180.220 and 1200.220.
g. A par�cipant in a covered transac�on may rely upon a cer�fica�on of a prospec�ve par�cipant in a
lower �er covered transac�on that is not debarred, suspended, ineligible, or voluntarily excluded from
the covered transac�on, unless it knows that the cer�fica�on is erroneous. A par�cipant is responsible
for ensuring that its principals are not suspended, debarred, or otherwise ineligible to par�cipate in
covered transac�ons. To verify the eligibility of its principals, as well as the eligibility of any lower �er
prospec�ve par�cipants, each par�cipant may, but is not required to, check the System for Award
Management website (htps://www.sam.gov/), which is compiled by the General Services
Administra�on. 2 CFR 180.300, 180.320, 180.330, and 180.335.
h. Nothing contained in the foregoing shall be construed to require establishment of a system of
records in order to render in good faith the cer�fica�on required by this clause. The knowledge and
informa�on of par�cipant is not required to exceed that which is normally possessed by a prudent
person in the ordinary course of business dealings.
i. Except for transac�ons authorized under paragraph e of these instruc�ons, if a par�cipant in a
covered transac�on knowingly enters into a lower �er covered transac�on with a person who is
suspended, debarred, ineligible, or voluntarily 13 excluded from par�cipa�on in this transac�on, in
addi�on to other remedies available to the Federal Government, the department or agency with
which this transac�on originated may pursue available remedies, including suspension and/or
debarment. 2 CFR 180.325.
4. Cer�fica�on Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower Tier
Par�cipants:
a. The prospec�ve lower �er par�cipant cer�fies, by submission of this proposal, that neither it nor
its principals:
(1) is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from par�cipa�ng in covered transac�ons by any Federal department or agency, 2 CFR 180.355;
(2) is a corpora�on that has been convicted of a felony viola�on under any Federal law within the
two-year period preceding this proposal (USDOT Order 4200.6 implemen�ng appropria�ons act
requirements); and
(3) is a corpora�on with any unpaid Federal tax liability that has been assessed, for which all judicial
and administra�ve remedies have been exhausted, or have lapsed, and that is not being paid in a �mely
manner pursuant to an agreement with the authority responsible for collec�ng the tax liability. (USDOT
Order 4200.6 implemen�ng appropria�ons act requirements) b. Where the prospec�ve lower �er
par�cipant is unable to cer�fy to any of the statements in this cer�fica�on, such prospec�ve par�cipant
should atach an explana�on to this proposal.
(G) Byrd An�-Lobbying Amendment (31 U.S.C. 1352).
1. The prospec�ve par�cipant cer�fies, by signing and submi�ng this bid or proposal, to the best of his or
her knowledge and belief, that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned,
to any person for influencing or atemp�ng to influence an officer or employee of any Federal agency,
a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress
in connec�on with the awarding of any Federal contract, the making of any Federal grant, the making
of any Federal loan, the entering into of any coopera�ve agreement, and the extension, con�nua�on,
renewal, amendment, or modifica�on of any Federal contract, grant, loan, or coopera�ve agreement.
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or atemp�ng to influence an officer or employee of any Federal agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in connec�on
with this Federal contract, grant, loan, or coopera�ve agreement, the undersigned shall complete and
submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instruc�ons.
2. This cer�fica�on is a material representa�on of fact upon which reliance was placed when this transac�on
was made or entered into. Submission of this cer�fica�on is a prerequisite for making or entering into this
transac�on imposed by 31 U.S.C. 1352. Any person who fails to file the required cer�fica�on shall be subject
to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
3. The prospec�ve par�cipant also agrees by submi�ng its bid or proposal that the par�cipant shall require
that the language of this cer�fica�on be included in all lower �er subcontracts, which exceed $100,000 and
that all such recipients shall cer�fy and disclose accordingly.
(H) Build America, Buy America Act (Pub. L. 177-58)
All products must meet the Build America, Buy America Act (BABAA) requirements mandated by Title IX of the
Infrastructure Investment and Jobs Act (“IIJA”), Pub. L. 177-58.
Contractor shall include Manufacturer’s Cer�fica�on for BABAA requirements with all applicable submitals. If a
specific manufacturer is used in the bidding, a statement that Manufacturer will comply with BABAA must be
included with the bid submission.
Contractor shall comply with BABAA requirements, including coordina�on with manufacturers, distributors, and
suppliers to correct deficiencies in any BABAA documenta�on.
Engineer/Architect approval of shop drawings or samples shall include review of BABAA documenta�on.
Contractor shall cer�fy upon comple�on that all work and materials have complied with BABAA requirements.
For any change orders, Contractor shall provide BABAA documenta�on for any new products or materials
required by the change.
Installa�on of materials or products that are not compliant with BABAA requirements shall be considered
defec�ve work. Contractor should ensure that Engineer/Architect has an approved Manufacturer’s Cer�fica�on
or waiver prior to items being delivered to the project site.
By submi�ng an applica�on for payment, based in whole or in part on furnishing equipment or materials,
Contractor cer�fies that such equipment and materials, to contractor’s knowledge, are compliant with BABAA
requirements.
Page 1 of 1
TASK ORDER #4
EXHIBIT A: SCOPE OF WORK
City of Arlington – Arlington Municipal Airport (AWO)
Perimeter Fencing Improvements Project
Phase 2: Construction Administration
This project will be completed under the Professional Services Agreement between the City of Arlington and
DOWL, LLC, (CONSULTANT) dated August 1st, 2024.
Project Description
The project includes the following improvements to the Arlington Municipal Airport (AWO), as shown in the
attached Figure 1.
Airport Perimeter Fencing (AIP Eligible):
1.Removal and replacement of approximately 3,700 linear feet of existing 3-wire perimeter fence at the
southwest, south, and southeast corners of the airport adjacent to 51st Ave NE, 172nd St NE (SR
531), and 59th Ave NE respectively with new 8-foot chain-link fence. New fence will include 3-strand
barbed wire, and all fencing materials will meet FAA Technical Specification F-162 contained in FAA
AC 150/5370-10H. One manual swing gate will be removed and replaced along the south segment to
provide FAA maintenance access to the Medium Intensity Approach Lighting System with Runway
Alignment Indicator Lights (MALSR).
City of Arlington Council Agenda Bill NB #3 Attachment September 16, 2024
Amendment No. 3 Final Design and Construction Support Services for the 211th Place Corridor Project
Public Works; Jim Kelly, Director EXPENDITURES REQUESTED: BUDGET CATEGORY: Transportation Improvement Fund 2024
LEGAL REVIEW: DESCRIPTION:
Arlington received a grant from the Transportation Improvement Board for the design and construction improvements to 211th Place from SR530 to 67th Ave to Arlington’s current “Complete Streets” standards. The City contracted with SCJ Alliance for the project design work. Amendment #3 amends the scope of work for additional final design changes that include: utility adjustments, retaining wall changes, ROW issues, additional design and geotechnical coordination for a stormwater pond, and establishment of reserve funds to address questions during construction. A summary of project change orders to date is as follows:
Original Contract
Amendment #1
Amendment #2
Amendment #3
$ 47,054.00
$ 19,834.00
$ 60,827.00
ALTERNATIVES:
Project and authorize the Mayor to sign the amendment.
Exhibit B
Amendment 3 – Additional Final Design & Constructio n Support
211th Place NE – 67th Ave NE to SR 530
Arlington, Snohomish County, WA
Prepared For: James Kelly, PE
Prepared By: Dan Ireland, PE
Date Prepared: August 20, 2024
Introduction:
It is our pleasure to provide the City of Arlington (City) with this amendment to capture the additional design
services requested during the final design process. The following describes the additional services that were
requested and fulfilled for the project:
Phase 10 Final Design
This amendment supplements budget to an existing Phase 10. Major changes to the project were requested
after the 90% design milestone. Major changes to the scope and key elements of the project result in changes in
multiple areas of the plans, design documentation, calculations, estimates, and specifications. The major
changes to the project or that included the following:
1) Adding a sewer mainline to 211th roadway between 67th Avenue and extending east.
2) Adding new sewer service lines to residence along 211th east of 67th Avenue.
3) Removing retaining wall 1 located east of SR530.
4) Adding a new water service to the project for a residential home.
5) Removing an existing residential well to the project to satisfy property negotiations.
6) Adding a retaining wall (low-height) to the frontage of a private property.
7) Providing additional exhibits of private property for use for property negotiations during the
right of way phase.
8) Continued changes to temporary easement and additional right of way exhibits to support
City’s Right of Way effort.
9) Updates and coordination to the Geotech to reflect wall and pond changes in the project.
10) Additional revisions to the contract specifications to reflect the major changes.
11) Additional revisions to the cost estimate to reflect the major changes.
Phase 10 Understanding
1) This additional work was verbally authorized and already completed and provided to the City.
Phase 10 Deliverables
1) All deliverables including the contract plans, specifications, and project estimate of costs were
previously submitted to the City for public bid advertisement.
City of Arlington – 211th Corridor
August 27, 2024
Page 2 of 2
25 N Wenatchee Ave, Suite 238 Wenatchee, WA 98801 Office 509.886.3265 Fax 360.352.1509 scjalliance.com
Phase 13 Construction Support (New Phase)
Task 1 Construction Support
SCJ will provide the City with construction support services on an as-requested basis for an estimated duration
of 8 months, occurring between September 2024 and the end of September 2025 (assuming a 4-month winter
shutdown with no requested services). The budget amount for this phase of work was set by the City without a
defined scope of services. If the requested services start to accumulate near the allotted budgeted amount, SCJ
will notify the City with an estimate of costs to complete the requested services prior to execution.
Phase 10 Understanding
1) The intent of this support role is to respond to clarifications and technical material reviews.
2) Budget was added to Phase 99 Expenses for a site visit if requested.
3) This scope does not represent standard construction administration or inspection services.
Phase 10 Deliverables
1) Emailed responses to City request for clarification or review of submittals.
Cost Summary
(Not to exceed with prior authorization)
Phase
Phase Title
Amendment
Estimate
Previous
Phase
Amount
New Phase
Amount
11 Final Design $50,327 $20,980 $71,307.42 T&M NTE
13 Construction Support $10,000 $0 $10,000.00 T&M NTE
99 Expenses $500 $1523.50 $2023.50 T&M NTE
$60,827
Current Contract Amount: $385,666.70
Amendment Amount: $60,827.00
New Contract Amount: $446,493.70
Attachment: 2024 SCJ Billing Rate Table
These rates are current as of January of 2024 and will be subject to change on a yearly basis
SCJ Alliance
Billing Rate Schedule – 2024
Hourly Billing