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CAP 2016-05-09 COMPLETE AGENDA PACKET
ijOpir W" City of Tukwila Community Affairs & Parks Committee O De'Sean Quinn, Chair O Kathy Hougardy O Thomas McLeod AGENDA Distribution: D. Quinn K. Hougardy T. McLeod J. Duffle D. Robertson Mayor Ekberg D. Cline C. O'Flaherty R. Turpin L. Humphrey D. Johnson R. Still E. Boykan N. Gierloff P. McCarthy MONDAY, MAY 9, 2016— 5:30 PM HAZELNUT CONFERENCE ROOM (formerly known as CR #3) at east entrance of City Hall Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. An agreement for services for Duwamish Hill a. Forward to 5/16 Consent Pg.1 Preserve. Agenda. Dave Johnson, Parks & Recreation Manager b. A staffing increase for the golf course pro shop b. Forward to 5/16 Consent Pg.11 (.50 FTE). Agenda. Rick Still, Parks & Recreation Director c. Authorization to submit a CDBG (Community c. Forward to 5/16 Consent Pg.13 Development Block Grant) application for the Agenda. 2017 Minor Home Repair Program. Evelyn Boykan, Human Services Program Manager d. A briefing on proactive code enforcement. d. Information only. Pg.25 Nora Gierloff, Deputy Community Development Director e. Financing options for City facilities. e. Information only. Pg.27 Peggy McCarthy, Finance Director 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Monday, May 23, 2016 SThe City of Tukwila strives to accommodate those with disabilities. Please contact the City Clerk's Office at 206 - 433 -1800 (TukwilaCityClerk @TukwilaWA.gov) for assistance. TO: FROM: BY: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Community Affairs and Parks Committee Rick Still, Parks and Recreation Director Dave Johnson, Parks and Recreation Manager CC: Mayor Ekberg DATE: April 25, 2016 SUBJECT: Agreement for Services for Duwamish Hill Preserve Phase 2B ISSUE Authorize Mayor to sign Agreement for Service with Mette Hanson, M.S. for work to be done at Duwamish Hill Preserve (DHP). BACKGROUND On April 18, 2016, the City Council authorized the Mayor to sign agreement to accept the Grant award from 4Culture for $200,000 for Phase 2B work to be completed at DHP. The funding through this grant includes an Entrance Kiosk, Interpretive Benches, Interpretive Signs, and installation and establishment of cultural landscape area. DISCUSSION During design of Phase 2, the City entered into agreement with SvR Design Co which included interpretive design. Mette Hanson was the interpretive design consultant retained by SvR to complete that work, which included design and installation of the seasonal round artwork. Ms. Hanson also designed the etched metal bench backs which interpret the cultural and natural history stories that are in Phase 1 at DHP. Attached are photos of her past work at the site. In order to provide continuity and consistency at DHP, the City has worked with Ms. Hanson to develop the scope of work to provide services to continue with the proposed preservation of the site. This work will include design, materials, and construction of Etched Metal Signs and Entrance Kiosk, as well as design and sourcing of the bench blocks. FINANCIAL IMPACT This agreement for services is not to exceed $48,298 and is funded through the recently accepted 4Culture grant. RECOMMENDATION As this agreement exceeds $40,000, Council is being asked to forward this item to the Consent Agenda at the May 16, 2016 Regular Meeting to authorize the Mayor to sign the agreement. ATTACHMENTS - Agreement for Services - Mette Hanson, M.S. - Exhibit A — Scope of Work - Photos of past work at the site. 2 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 CONTRACT FOR SERVICES Contract Number: This Agreement is entered into by and between the City of Tukwila, Washington, a non-charter optional municipal code city hereinafter referred to as the City,'' and Mette Hanson, M.S., hereinafter referred to as the Contractor," whose principal office is located at 10751 Fremont Ave. N, Seattle, WA 98133. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and Vocal statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit A attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $48,298.00. • Contractor Budget. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing May 17, 2016 and ending December 31, 2016, unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. CA Revised 2013 Page 1 of 4 3 6. Indemnification. The Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum limit of $50,000 for bodily injury and $50,000 for property damage per accident. Automobile liability insurance shall cover all owned, non- owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products-completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured-Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. CA Revised 1-2013 Page 2 of 4 4 C. Acceptability of Insurers. insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VI D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City, Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 9. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 10. Termination. This Agreement may at any time be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation or the presence of any disability in the selection and retention of employees or procurement of materials or supplies. 12. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. CA Revised 1-2013 Page 3 of 4 5 13. Entire A eement Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below, 16. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 20 CITY OF TUKWILA CONTRACTOR Allan Ekberg, Mayor ATTEST/AUTHENTICATED: By: Printed Name and Title: Mette Hanson, M.S. Address: 10751 Fremont Ave. N. City Clerk, Christy O'Flaherty Seattle, WA 98133 APPROVED AS TO FORM: Office of the City Attorney CA Revised 1-2013 Page 4 of 4 6 EXHIBIT A Scope of Work 2016-17 Duwamish Hill Preserve Phase 2b Mette Hanson, MS 1, Etched Metal Signs & Frames - Design, fabrication and installation of Cultural Garden Signs (10), Introduction sign (1), Wayfinding sign (1) A Design and Project Management 1 Content development, illustration and design 2 File set-up for sign etching 2 Project management B Materials 1 Etched stainless steel signs (Ind, etching, paint fill, random orbital sanding) 3 Aluminum channel for sign supports 4 Cut top curve, bend and weld sign supports 5 Waterjet cutting images in sign supports 6 Shipping and delivery fees C Construction 1 Concrete footing and sign installation + plants and restoration work as needed SUB-TOTAL 2. Entrance Kiosk - Design, fabrication and installation of kiosk and signage A Design and Project Management Kiosk design 2 Kiosk Project management 3 Signage Design B Materials 1 Kiosk 2 Kiosk 3 Kiosk 4 Kiosk 5 Kiosk 6 Kiosk 7 Signage marine plywood fir for laminated roof supports / framing cedar shakes + roofing materials custom metal armature / sign support concrete footings + brackets shipping and delivery fees materials and printing $1,533 $767 $4,928 53,500 $1,600 $2,600 $1,750 $200 52,300 $19,177 52,409 53,066 55,366 5300 5500 5400 52,500 5450 $100 $3,000 C Construction 1 Kiosk custom build w/curved roof and natural timbers 55,000 2 Kiosk installation (w/ galvanized steel brackets bedded in buried concrete footings 2ft X 3ft) 51,500 3 Signage installation $400 SUB-TOTAL $24,991 7 EXHIBIT Scope of Work 2016-17 Duwamish Hill Preserve Phase 2b K4ette Hanson, N1S 3. Sandstone Bench blocks A Design and Project Management 1 Source and/or design sandstone alternate (not to exceed) 1,000 2 Project Management (not to exceed) 1,000 SUB-TOTAL 2,000 PROJECT SUB-TOTAL � 46,168 CONTINGENCY �2/130 PROJECT TOTAL --- ------���---' - -----�---- � 48,298 * includes all applicable Sales 8 Seasonal Round Artwork 0 Etched e a|Benchback , u'r111'1■111,1,1;;',111111111,1 rrr, rr,r rrrrl r "r'kirrir"' rrillt .01, 1,rrIjr?;No TO: FROM: CC: DATE: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Community Affairs and Parks Committee Rick Still, Parks and Recreation Director Mayor Ekberg May 2, 2016 SUBJECT: Increase of 0.5 FTE Pro Shop Staff ISSUE Authorize an increase to the 2016 budget to permit the addition of 0,5 Full Time Employees (FTE) to the Foster Golf Links (FGL) Pro Shop staffing model. BACKGROUND When opening the Clubhouse in 2004, the FGL Pro Shop staffing model included 3.75 FTE. Since August 2014, with the retirement of the Golf Superintendent, FGL has experimented with operating the Pro Shop with 3.0 FTE. The golf course operates from 30 minutes before sunrise to 30 minutes after sunset 363 days per year, taking Christmas Day and New Year's Day off from full course operations. There were over 50,000 golf rounds played in 2015 at FGL contributing approximately $1,700,000 in revenue for the operations of the golf course. DISCUSSION The golf course has been very successful with the experimental golf staffing model. However, with a commitment to excellent customer service and the growth in golf programs, the current staffing model is proving to be more challenging to meet the needs of the golf course within our current budget, mainly managing extra labor costs and meeting the needs of the golfers. One of our current 1.0 FTE Administrative Support Technicians has requested to modify his position to 0.75 or 3/4-time. This request works well to meet the long term plan for the FGL Pro Shop staffing model. The future need of having two 3/4-time employees in addition to the current two 1.0 employees will help provide the hours of coverage and the knowledge base to meet the needs of the golfing community. To support the staff requested hour reduction and to provide a better golf experience, an addition of 0.5 FTE is requested to have an additional 3/1-time employee. The funding for the additional 0.5 FTE in 2016 will come from: 1) 0.25 FTE balance from the current position reduction, 2) Pro Shop Extra Labor reduction and 3) Golf maintenance extra labor reduction. FINANCIAL IMPACT There will be no direct General Fund impact through the addition of 0.5 FTE to the Pro Shop staffing model. The combining of current operating budget resources is sufficient to cover these costs. RECOMMENDATION As this is an increase to the budget authorized for Full Time Employees, Council is being asked to forward this item to the Consent Agenda at the May 16, 2016 Regular Meeting to authorize the Mayor to fill the position accordingly. 11 12 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Affairs and Parks Committee FROM: Evie Boykan, Human Services Manager CC: Mayor Ekberg DATE: April 27, 2016 SUBJECT: Authorization to submit CD:G Application for Minor Home Repair 2017 ISSUE King County must receive a Mayor's signed application, as authorized by the City Council, for the annual application to King County for Federal Community Development Block Grants. These funds target the Tukwila Minor Home Repair program. For 2017, we propose serving as the fiscal administrator for minor home repair in the cities of Tukwila, SeaTac, Des Moines, and Covington. This program successfully assists low and moderate income homeowners in maintaining their homes. We are applying for $125,000 for the 4 cities. BACKGROUND The Office of Human Services has been administering this program in-house since 2005. In 2015 our contractors served 20 unduplicated Tukwila households with 93 hours of labor. While we are still spending on 2015 dollars, we expect to receive a contract this spring/summer for 2016 dollars. Tukwila's current budget for this program is $130,000 for the entire program with $30,000 for Tukwila. DISCUSSION This application competes county wide with other capital, federal applications from both cities and non-profit agencies. Tukwila sits at the table to recommend capital projects, but of course cannot vote on their own application. RECOMMENDATION The Council is being asked to forward this item to the May 16, 2016 Regular Meeting Consent agenda. ATTACHMENTS Application— The full application is in process. 13 14 Print/Preview King County Powered by Zoom GrantsTfl King County, WA Department of Community and Human Services DCHSIHCD-CD_53116 CDBG Capital Funds 5/31/2016 deadline Pagel of 10 City of Tukwila Tukwila, SeaTac, Covington, Des Moines Mnor Home Repair Program $ 125,000 Requested $ 100,000 Secondary amount $ Project Contact Evie Boykan evie boykanAtukwrlavva qov Tel: 206-433-7180 Additional Contacts stacy.hansen@tukwilawa gov Summary Questions City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 City Administrator David Cline Pavid Cline@tukwilawa ciov Telephone206-433-1800 Fax 206-433-7191 Web www.tukwilawa.gov 1. Type of Organization Upload Supporting Documentation as applicable. Non-Profits and Special Districts, see document requirements in Pre-Application tab- 100.1 thru 100,7 , 501(c)(3) Non-Profit V" Municipal Government Agency Institute of Higher Education ; Special District King County Department Public Housing Authority I I Other: Pre-Application [Some answers will not be presented because they are not part of the selected group of questions based on the answer to #2, Project Location 1. Please provide the exact Address of where the project is located (not the agency address) preferred format: address, city, state, zip. If the location is a intersection please find the closest address. Upload document and identify as 000.1 King County l -Map Depicting Location; Form 200.1 Photos; Form 200.2 Site Plan The Program will take place in the jurisdictional boundaries of the cities of Tukwila, SeaTac, Covington and Des Moines. The zipcodes covered include 98148, 98168, 98178, 98188, 98198. Single family homeowners who have lived in their homes for 1 year and who meet income eligibility are eligible for the program depending on the nature of the work that needs to be https://zoomgrants.com/printprop.asp?rfpid=861&propid=51194&print=R 4/27/20135 Print/Preview Page 2 of 10 done. Project Category 2. What category does your project fit into? Upload Supporting Documentation as applicable. Non-Profits and Special Districts, see document requirements - 100.1 thru 100.7 Community Facility Public Improvements Parks Microenterprise ✓ Minor Home Repair Housing Human Services Other: 3. What type of activity is involved? Check all That apply Acquisition ✓ Rehabilitation ✓ Construction Services Population Served 4. How will the project's eligibility for CDBG funding be established? If Area Benefit, contact Eric Jensen to complete 800,1 Census Data, If Limited Clientele, upload appropriate documentation demonstrating determination of eligibility. Al! Applicants - Upload document identified as 000.3 Map of Service Delivery Area Area Benefit (include map of service area in uploaded documents) V Limited Clientele (include form used to document income in document upload section). Hi Presumed Benefit Eligible (severely disabled adults, abused children, battered spouses, homeless, elderly over 62 years of age) Elimination of Slum/blight (spot basis) Survey -- Conducted per HUD Regulations Project Description 5. Provide a brief overview of the project and speak specifically how Consortium CDBG funds will be used. CDBG funds will be used to rehabilitate and provide health and safety work for low to moderate income homeowner occupied housing to preserve affordable housing units. The funds pay for repair and rehab in the electrical, plumbing and other trades. Project Funding 6. Provide background and explanation of fund sources and status of other funding pursued for this project, i.e. what other grant/fund sources have you submitted applications? What funds have been committed and is there a time expiration for those funds. Are any of the 'Other' funds from a federal source? This program depends on the in-kind funds of the staffing from the respective cities that are involved in administering this program. VVith the exception of the city of Des Moines, all staff contribute their time to screen clients, hire and pay contractors and administer the full program. No other federal funds or municipal funds are used for this purpose, 7. What public participation has been held or do you anticipate holding during the course of the Pre-application and RFP process regarding this funding request? This proposed project will be reviewed by City Council committees and the full Council. Ali Council meetings are advertised 16 https://zoomgr ts.com/printprop.asp?rfpid=861&propid=51194&print=R 4/27/2016 Page 3 of 10 and open to the public. Public participation also takes the form of client satisfaction surveys which are completed annually. Organization M.Descdbohowmng your agency as offered the services associated with the projoct. Present agencys capabilities, number and characteristics of cients served, and required Iicenses to Upload identified as 100,3 List of Agency Board Members; 100.4 Current Bylaws and Articles of Incorporation; 100.5 Organization Chart; 100.8 Agency Recent Audit and/or General Ledger and Balance Sheet for 2015. The Human Services Manager has succe sfuU operated this program with CDBG funds since 2OU5. The City of Tukwila provides standard municipal services to a population of about 19,300 residents 9. Services: DescrLbe the specitic service(s) or need your pmQramis designed to meet. Quantify this need, using focal or regional data that confirm or describe the problem or need, How much of the need are you currently serving? The majority of the single family housing stock in the respective 4 cities was built prior to 1978, resulting in the need for repair and maintenance work to maintain the viability of affordable housing. The low mod populations ranges from 25% in the City of Covi ,onm64Y&intheCityofTukwi(a.|ndicatorsofpoverty vsuohaxfreoamdmducedxumch stabstics, food bank statistics and DSHS stats show that there is a disproportionate number of individuals d fa iU that are IMng in poverty. Almost haif of the Tukwila residents are burdened by housing costs paying more than 30% of their income for housing, The majority of our homeowners using the program historically make 50% of median income and below. With 25 % of our population using the food bank and DSHS, we are not experiencing the economic recovery of other communities. We believe we are serving about 10% of the need. In SeaTac 17% of the population lives at or below the poverty level. Rebab and maintenance issues such as plumbing, electricaL, hvac and carpentry represent housing needs (hat many of our Iow income homeowners defer, or are unable to schedule due to the strain on their budget. Private costs for these services continue to climb. Our surveys of client satisfaction have indicated that our homeowners consider this a vital service. Over 95% are very satisfied with services that have been provided. 10. What other activities does the agency perform -- how will the proposed program be delineated from other prvgmm*offe°wdmmd/prnemices? All basic municipal services such onfire' police, public works, planning and recreation are available Vo the business and residential community. There is no budget available for housing repair or rehabilitation, nor would it be available without CDBG. 11. ELIGIBILITY: How do you determine | ibility (i i location of residence, eligibility inoxher government programs? Are you familiar with current CDBG income screening requirements? Applicants will be required to provide a copy of the tool used for client intake process as an attachment to the application phase, Upload document identified as 100.6 Intake Tool Used to Qualify Efigibility Having managed the program for 11 years we are very familiar with income screening, identifying residency, and eligibility of social and health programs. Since our main work is human services we are well in touch with the housing related needs in the community. Years ago we developed a screening tool that has already been vetted by staff in King County Housing and Community Development. Each client has a unique file that includes their application, their evidence of income, and required environmental review and lead based paint screens. The tool for screening will be attached to this document. 12. Provide the estimated milestones lor completion of your project. -answer nof presented because of the answer to #2- 13. Program Oriented Milestones: provide the date range for the quarters rw resented for servi delivery. Mkroonterpnisac Upload required document identified as 500.3; Minor Home Repair: Upload required document identifed as 600.2 Depending on when the contract is awarded, construction activities and ongoing marketing will take place during each quarter. Since this is a familiar program in the community, there need not be any delays in service delivery. 14 Do anticipate electing &ecting to charge the perrnissible Indirect cost rate allowed by0uoV.414(f)|ndirect(p&w) costs. See "Requirements Section " in Program Summary for reference and context Indicate either "Yes — provide an explanation an explanation of (he status of an lndirecl QsyPlan",draftingbaingn,Wemod approval underway m, "No 'we decline Mo take advanfage of the option to charge an indirect cosf rate." No we decline to take advantag of the optio to charge an indirect cost rate. 15. This RFP d o^ provide grant provide grantopportunities in this catsgory. Please visit the King County DCHS Housing and Community Development WeuSmeoo,umntopponunWemmtxis category that might be posted. -answer not presented because of the answer to #2- Documents Requested * 000.1_ All Applicants: I-Map depicting project location and surrounding area information. 000.2_ Pre-App Phase - Consortium Service Delivery Data. Applies to ALL Applicants download template Required? Attached Documents * be 000.1 example of project loca 000.2 service delivery area Intnx . . Q6l ll 4/27/201A7 Print/Preview Page 4 of 10 000.3_ All Applicants - Map with a line depicting area of Service Delivery. If all King County or sub-regional delivery indicate the region on the map, 000. 3 service delivery area 100.1_Pre-Application Phase - Non-Profit IRS Letter V NA Requested non profit letter of Designation 100.3_Pre-App Phase: Non-Profit/Special Districts: Current List of Agency Board Members with term and expiration dates rioted. download template 100A_Pre-App Phase: Non-Profit/Special Districts: Current Bylaws and Articles of Incorporation 100.6_Programs/Services: Upload Agency's Tool used for Client Intake process 100.8_ Agency Audit and/or General Ledger and Financials for 2015, 200,1_ Environmental Review Site Photos download template 800.1_Census Data supporting Low Moderate- Income Area Benefit. Documentation should include Census Tract; Block Group information that fit within the Service Delivery Area identified in 000.3. download template Application Questions • Special District 100.3 Agency board rnembers non profit district ▪ Client intake ▪ Audit Financials so" Requested document determination 200.1 site photos, sites are specific and not identified at this time census data 800.1 Some answers will not be presented because they are not part of the selected group of questions based on the answer to #1. Project Category 1. What category does your project fit into? Community Facility Infrastructure Improvements Parks Microenterprise V Minor Home Repair Other, please explain: Project Description and Background 2. ALL: Discuss the scope and magnitude of the problem or need your project is designed to address. Quantify this need using local, sub-regional or regional data. The cities involved in this proposal have old housing stock (older than 38 years) which shows signs of neglect and or deterioration. This aging housing stock requires more money for maintenance which is difficult for residents already burdened by other economic stressors. The majority of homeowners served in this program are at 50% of median income and below. Many are on fixed incomes. Census figures, the American Community survey, school district data, and Brookings Institute document the increased percentages of households living in poverty. The inability for our homeowners to maintain the plumbing, electrical, and other maintenance categories means that their utility costs may be higher, and the long term preservation of affordable housing is compromised, We estimate serving 10% of the need, and we find that some homeowners cannot qualify for King County Housing Repair due to the loan to value ratio, and the limited funds that are available, 3. ALL: Describe how the project/program is accessible as it relates to the following: 1) transportation, 2) immediacy of services (waiting list?) and 3) reaching isolated individuals. All services are provided at the homeowners residence. As long as contractors and funds are available, homeowners are served on a first come first served basis. Due to the coordination across departments in jurisdictions, referrals of more 18 https://zootngrants.com/printprop.asp?rfpid=861&propid=51194&print=R 4/27/2016 Page 5 of 10 isolated individuals are rnade. Code enforcement, Police and Fire, Senior program staff, concerned neighbors, local faith based organizations i have eyes out on our residents, and connections are easily made to our programs, Our communications departments have used door to door surveying, and a variety of media tools to both advertise the program and reach out to those that may not actively advocate for themselves. Word of mouth from successfully served residents also contribute to the sharing of this information across the single family neighborhoods, 4. ALL: Can your your project or program be tunded at a reduced level? If yes, indicate the minimum amount needed to make the project viable. Indicate what change(s) would be made to the scope of the project to address the reduction in funds? Yes, the program can be funded at a reduced (evel. Since the majority of funding the majority of furiding goes inta the construction costs, we would serve Iess households, and potentiaUy woud narrow the scope of acceptabe job*, We are tinding the repairs are costing more money than they did several years a .onbisNkely that funds woud ruri out faster, We have adjusted our program policies to allow more money per household, and this might need to be scaled back if funds are reduced. 5. Identify Green Building techniques, green buiding materials, efficient cJesign(s) and pervious surfaces that will be used iri construction and long term use for energy conservation. -answer not presented because or the answer to #1- 0 Specify any known code or safety violations, Will updating any of the or energy savings within a reasonable time? If so, please explain - include the estimated payback period (in terms of years or other time frame). 111- 7. COMMUNITY FACILFrY: Describe what plan exist or actions d`mambeingc*nuidomdmoaddramnuoy inadequacies identified regarding the facility condition. Example: new roof. repair steps, sidewalks, exterior painting. #1- 8. COMMUNITY FACIUTV: Change of Use and Security Instruments are a requirement. Review, sign and upload certification acknowledging the requirements and agency commitment associated with a funding award. -answer not presented because of the answer to #1- 9. CAPITAL PROJECTS: Describe the scope in detail and specify the size of the if applicable). Engineer's or Architect's Estimate should correlate to the construction funding noted on the construction line item 00 your project budget. -answer not presented because o/ the answer m#1' 10. CAPITAL PROJECTS: Specify how you arrived at the total cost of the project, Identify the permits that wilt be required for the project as well as any land use approval (Le. lot line adjustment, subdivision, rezone, conditional use, etc), -answer not presented because of the answer to #1- 11. Describe extent the Attach all supporting documentation that relates m this need. (e.g.orders, letters, traffic accident counts, Department of Transportation (DOT) public safety statistics). Safe and healthy housing is seen as increasingly important regarding longevity of our residents. Tnehea|thnostsufmo|d. excessive moisture, unsafe stairs, wobbly railings, presence of pests, unclean furnaces can contribute to long term negative health outcomes in addition to degradation of the housing infrastructure. Recognizing this need, our code enforcement department has expanded their rental licensing program to include healthy housing standard& We see that our work actively contributes to homelessness prevention, by keeping home in a habitable condition Our fire departments witness living conditions that contribute to poor health and safety concerns, and this attention has reinforced our commitment to use our program to contribute to the best stability possible for often some very vulnerable residents, Citizen Participation Documentation 12. INFRASTRUCTURE/PARKS: Capital Plan is this project Iisted in priorities. s it identified as high, medium or Iow on the Iist? If so, what role or percentage does it constitute in this proposal? -answer not presented because of the answer to 111- ServiuoDeiveryA,ea — projectmndhorPrmWram 13. ALL: The project must serve either un area which is primarily residential and predominately low/mod income (Area Benefit) or be imited to serving CDBG income eligible clientele or rosidonts. Descnbe the area or those residents that will benefit. Required Attachment(s): FOR Infrastructure. Census data supporting LMA or Survey Results of specified area approved by HCD Staff FOR Community Facility, Minor Home Repair or Microenterprise Program: Income Screening Tool All residents are vetted for service by completing a standard application used by all cities and by submitting necessary 19 Page 6 of 10 documentation to show that they fall withiri eligible inuome guidelines. The screening too is attached for this application. Several of our cities have of the highest documented indicators of poverty as referenced in various sources; school district, census, Department of Social and Health Services, the Road Map efforts, King County Public Health Department etc. All low to moderate income residents who live within the jurisdictional boundaries of Tukwila, SeaTac, Des Moines and Covington will be eligible for services once they have filled out their applications and provided documentation of source of income. Ownership of the home is verified by King County parcel viewer. 14. ALL: Briefly describe the agency's existing staff positions/qualifications, and its capacity to carry out this activity. Does your agency have a personnel policy manual with an atfirmative action plan and grievance procedures. The staff involved in this multi jurisdictional program have had collectively almost 30 years years of experienoe in managing this minor home repair program. Evie Boykan, Human Services manager has served as fiscal manager, and has implemented this program in Tukwila sin� 2005, and is well familiar with developing the program internalty, across the cities as well as adhering to necessary regulations and procedures anidantifiedbyKingCounty and Mv sin d Urban development. Her co-worked Stacy Hansen has worked with Evie for 19 years and is familiar with the protocol and procedures around this program. The CIty of Tukwila has a personnel policy manual with equal employment opportunity policies All staif represented by the local Teamsters Union include grievance policies in their bargaining contracts. 15. PROGRAM: MICROENTERPRISE or MINOR HOME REPAIR - Who will imptement the program? Briefly describe their qualifications. Provide of written Pro w,mPo|iuiumandPmcodums Microenterprise: upload required documents identified as 500.1 Program Policies and Procedures and 500.2 Resumes of Project Team Minor Horne Repair: upload required document 600.1 The City of Tukwila Human Services Manager, or her designee, will implement the program for Tukwila and serve as the fiscal agent with King, County, In addition the Human Services managers of SeaTac and Covington will plan and implement the program in their respective cities. SeaTac has 9 years of experience in managing this program and the Covington staff has 6 years. The Des Moines permit staff has managed this program internally for several years and will continue supporting this program. 16. PROGRAM MICROENTERPRISE: What technical assistance witi be offered to assist small business or person(s) interested in establishing a business? -nswer not presentod because of the artswer to tri- ll PROGRAM: MICROENTERPRISE or MINOR HOME REPAIR - What witi be measured and how wilt performance measures be reported outside the number of undupticated persons assisted? -answer not presen(ed becauso ofthe answer to #1- 18. ALL: What i the t use of the ite? If Pro m, what ot er services are offered at this site? Upload documents 200.1_IMap 200.2 Site lan/Map site photo template. The sites are all residential sirigte family owner occupied homes NEPA Environmental Review 19. ALL: Rvodplam:Identify the nearest natural waterbody (stream, lake, etc.) How far, and in which direction is it from the project site? As the sites are all ovor the footprint of the city boundaries, there is not a single natural waterbody that applies in this case. In some areas in Tukwila, several of the neighborhoods are located in areas that are relatively close to the Green River. Staif understand the potential limitations of providing service in a floodplain, but as King county staff are now doing environmental reviews on all project sites prior to work being done, we don't see this as a barrier. 20. Endangered Species Act: How much of a net increase in impervious surface (example: concrete/asphalt) will occur (if applicabte). Does a current stormwater systern exist at the project site? Please describe. -answer not presenleci because of the answer to #1- 21. 21. A » eo|og Will the project excavate or otherwise disturb soit that has not been disturbed before, and if so, to what depth and horizontal dimensions? -answer not presented because ofthe answer 10 111- 22. 22. Toxics: Has a Phase I Environmental Site Assessment (or equivalent toxics review) been completed? What was the previous use of this property? What is the use of properties surrounding the project site? -answer not presenteci because ofthe answer 10 23. ALL: Other Environmental Factors; check any and all that apply. FEMA designated floodplain Wetland Ecologicall-sensitive area Designated Historic neighborhood 20 https: asp l |{ 4/27/2016 Print/Preview Page 7 of 10 ■ Other: ire No Known Factors 24. ALL: Choice-Limiting Activities: Do you anticipate undertaking any of the following actions on this project after submittal of your application on May 31, 2016? Property acquisition, clearing, grading, site prep, etc.? If so, describe. -answer riot presented because of the answer to #1- 25. PARKS: Describe what plan exist or actions are being considered to address any inadequacies identified regarding the park and/or structure conditions. -answer not presented because of the answer to #1- 26. Will your project generate Program Income? Type Yes or No. If yes, please explain No Budget Funding Sources/Revenues King County Consortium CDBG Joint Agreement City CDBG or Other Funds HOME Consortium City CDBG or Other Funds Federal State Local and/or City, County Funds Private In-Kind Other (specify) Funds Requested by Source $ 125,000.00 Matching Funds Committed Total Not Project Committed 1 Co mitted Cost $ SS 125,000.00 125,000.00 12 ,000 00 $ 0.00 $ 000 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 5 0.00 $ 0.00 $ 0.00 $ 25,000.00 $ 25,000.00 S 50,000 00 $ 50,000 00 $ 50,000 00 5000 $ 0 00 5000 0 Other (specify) $ 150,000.00 $ 25 175,000 0 175,00O00 1 ,000 00 $ 75,000 00 Total $ 300,000.00 $ 0.00 $ $ $ $ 50,000.00 350,000.00 350,000.00 350,000.00 Funding Uses/Expenses Environmental Review (KC Set-aside) Appraisl(s) Architect/Engineer Permit Design and Procurement of Construction Construction *Upload Architect or Engineers Wet Stamped Estimate Project Management / Agency Project Management/ Contractor Acquisition- any type (If applicable) Administrative Costs (O&M, Travel, etc) Indirect Cost per 2 CFR 200.414(f) Other; Specifiy Use Total Joint or State/Local King Co HOME City Funds CDBG CDBG $ 2,500.00 $ 119,000.00 $ 3,500.00 In-Kind Other $ 25,000.00 5 125,000 60 $ 25 00 https://zoomgrants.com/printprop. p?rfpid=8 61 &propid=5 1 1 94&print=R 4/27/201251 Print/Preview Page 8 of 10 $ 250,000.00 $ 0.00 $ 0.00 $ $ 0.00 25,025.00 Budget Narrative 1. Cities are fully dependent on the CDBG funds to deliver the program. In-kind contribution represents the estimate of value of staff that are implementing the program. 2. Anticipated dates of award are fully dependent on the award of the CDBG funding. No other funds are committed. No other expiration dates for in-kind contributions. Other - Risk Assessments for Ibp Tables Service Delivery NORTH/EAST SUB-REGION Beaux Arts Bothell Carnation Clyde Hill Duvall Hunts Point Issaquah Kenmore Lake Forest Park Medina Mercer Island Newcastle North Bend Sammamish Skykomish Snoqualmie Woodinville Yarrow Point Uninc,King Co. Kirkland-- Joint Agreement City Redmond -- Joint Agreement City Shoreline -- Joint Agreement City Total SOUTH SUB-REGION Algona Black Diamond Burien Covington Des Moines Enumclaw Maple Valley Pacific # of Beneficiaries 0 14 13 22 https://zoomgrants.com/printprop.asp?rfpid=861&propid=51194&print=R 4/27/2016 Print/Preview Page 9 of 10 SeaTac Tukwila Uninc. King Co Renton -- Joint Agreement City Total OUTSIDE OF CDBG CONSORTIUM Auburn Bellevue Federal Way Kent Seattle Other Total (Grand Tota Iistod below) Total Documents 19 19 65 0 65 Documents Requested * 000.0 ALL Applications: Application Certification - signed—and on Agency Letterhead download template 100.2_ADA 504 Self Evaluation Template (if applicable). download template Required? Attached Documents * • 100.5_All Applicants - Organization Chart 6/ 100.5 orq chart 100.7 Non-Profits: King County Equal Benefits I/ 100.7 Substantial Compliance Authorization Form 200.2_Site Plan/I-Map t,/ 200.2 Site plan 300.1_Community Facility Comprehensive 300.1 Com Facility Assessment Assessment download template 300.2_Community Facility: Agency 10 year Proforma 300 2 Community facility agency download template 300.3_Community Facility: Wet stamped Architect 300 3 Architect Estimate download template 300.4 ComFac_Change of Use/Ownership 300 4 Ch Use CF AuthForm download template 400.1 Infrastructure/Parks: Capital Improvement 400 1 Plan --Provide cover page of the CIP; excerpts of pertinent pages that reference your proposed project and evidence of the date of publication. Upload as one .pdf 400.2_Infrastructure/Parks: Wet Stamped Engineer Estimate download template 400.1 400.3_ Park, and Structure(s) Comprehensive V 400 3 Assessment download template 500.1_PROGRAMS Microenterprise Program Policies and Procedures 400.2 Parks 500,1 500.2 PROGRAMS: Microenterprise: Resume of 500.2 Microenterprise resurn project team members https://zoomgrants.com/printprop.asp?rfpid=861&propid=51194&print=R 4/27/2013 Print/Preview Page 10 of 10 500.3_PROGRAMS: Microenterprise Timelines Performance Measures download template 600,1_PROGRAMS: Minor Horne Repair Program Policies and Procedures 600.2_ PROGRAMS MHR Timelines Performance Measures download template 700.1_King County W9 - (if new contractor to King 1/ 700 1 County). Requested Document Not Applicable download template Other Supporting Documents Agency Wants Reviewers to Consider in the Evaluation. 500.3 resumes microenterprise 600.1 policies and procedures * ZoomGrantsTm is not responsible for the content of uploaded documents. Application ID: 51194 Become a fan of Zoom Grants on Facebook Problems? Contact us at QuesnersODZoornC:kaces corn ©2002-2016 GrantAnalyst.com All rights reserved "ZoomGrants" and the ZoomOrants logo are trademarks of GrantAnalyst corn, LLC Loocut 1 Browser 24 https://zoomgrants.com/printprop.asp?rfpid=861&propid=51194&print—R 4/27/2016 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Affairs and Parks Committee FROM: Nora Gierloff, Deputy Community Development Director BY: Minnie Dhaliwal, Planning Supervisor CC: Mayor Ekberg DATE: May 9, 2016 SUBJECT: Proactive Code Enforcement Issue Expansion of proactive code enforcement in single family neighborhoods to implement one of Mayor Ekberg's four core priorities. Background Historically code enforcement in Tukwila has been primarily complaint driven which can result in uneven application of our standards. The exception is the Rental Housing Program that requires periodic inspections and has been very successful at improving the conditions in the almost 60% of our housing stock that is rented. Expansion of proactive code enforcement to our single family neighborhoods is proposed as a tool to improve housing conditions. Concept Focused resources that would rotate through different neighborhoods could help to promote a community ethic of improvement and create visible change. Ideally this would spark greater community involvement and help build relationships between neighbors. Discussion Here is an outline of the process: • Begin outreach about rotating proactive code enforcement through web site and social media in order to explain the new approach and set expectations. • Identify the priority order for neighborhoods. Allentown will be the first as we have already conducted an initial survey. • Mail a postcard to the residents and property owners in each neighborhood several weeks before their turn to let them know what to expect, why the City is taking this approach and ask for volunteers to help their neighbors. • Focus on a neighborhood for 6-8 weeks. The areas would be sized to allow for an initial sweep, follow up visit and a first round of violation notices within the time frame, • Conduct a street by street sweep for the 5 priority issues — life safety, junk vehicles, on- site parking violations, garbage and weeds. • Locations with violations will receive a door hanger with itemized issues and user friendly brochures explaining what the code requires and how to make improvements. We are looking into how to provide translations on the web site. • Officers will reinspect 2-3 weeks later and only then begin enforcement if issues have not been corrected. • If the violation(s) have been corrected we would send a thank you letter to the resident. • Consider a 2nd postcard to the neighborhood with results (X many violations resolved, Y in progress) and another call for volunteers. 25 INFORMATIONAL MEMO Page 2 This emphasis on proactive enforcement will likely reduce the number of abatements that code enforcement is able to complete in 2016. It will also create a larger backlog of open cases as we will not be able to resolve all issues before moving on to the next area. We also expect that the Tukwila Works application will result in an increase in code complaints which will require officer time to respond, investigate and resolve. Hopefully the performance numbers will be seen in the context of the increased efforts. We anticipate that many of our residents will face barriers to compliance so the more resources we are able to offer them, such as free dump passes or vehicle removal, the more quickly we will see change. For Consideration We see the need to have someone to coordinate work parties for neighborhood volunteers and solicit donations for our residents (tools for yardwork, paint for graffiti, gravel for parking areas, etc.). We have had people perform court ordered community service by helping clean up properties for elderly or disabled residents but they need to be supervised. If there were additional code enforcement personnel to do this then we wouldn't have to pull an officer out of the field. Recommendation The Committee is asked to review and provide feedback before staff moves forward with neighborhood based proactive code enforcement using the process outlined above. 26 City of Tukwila INFORMATIONAL MEMORANDUM TO: Communfty Atfairs and Parks Committee FROM: Peggy McCarthy, Finance Director CC Mayor Ekberg DATE: May 3'2O16 SUBJECT: Facilities Plan Financing Options Allan Ekberg, Mayor ISSUE What is the difference in financing costs between the originally modeled 63:20 lease/LTGO bond (Limited Tax General Obligation) financing for the Public Works shops, as shown in the Facilities Plan [)raft submitted to Council on December 14, 2015, and financing comprised entirely of LTGO bonds? BACKGROUND In the Facilities Model Plan B. LTGO bonds were used to fund the $6.000 thousand and purchase for the Public Works shops. The design, permitting and construction costs of $20,625 thousand were funded through a 63:20 lease. The lease payments and debt service over the life of this debt totaled S46,974 thousand. DISCUSSION If LTGO bond financing were used to fund the entire project, (land and the design, permitting and conntruction), the debt service over the life of the debt would total $43,817 thousand. This is $3.157 thousand Iess than the 63:20/LTGO scenario. The annual debt service/Iease payment differentaF is $158 thousand for most of the years the bonds and lease are outstanding. Even though the 63:20 financing is more expensive than Councilmanic or voted bonds, the 63:20 financing is sometimes used when private sector involvement in developing a governmental facility is likely to provide significant benefits compared to a traditioral public approach. Some of these benefits include: • 63:20 financing could streamline delivery of a pnojeut, as an experienced developer, chosen via a request for proposals (RFP) process, would likely steward the process, • 63:20 financing shifts a significant amount of the p jecthokfronmtheQh/0odeveVopero. A page from the Facilities Plan discussing 63:20 financing is attached to this memorandum. CONCLUSION Information only. ATTACHMENT Pages 4 and 5 of the Facilities Model draft, submitted to Counci! December 14, 2015 Analysis: Comparison of 63:20/LTGO Financing with All LTGO Financing 28 INVESTING IN TUKWILA j ESSENTIAL GOVERNMENT SERVICES FACILITIES PLAN APPENDIX G - FUNDING AND PHASING OPTIONS FIGURE 2: EXISTING DEBT DEMAND COMPARED TO TOTAL DEBT CAPACITY, 2016-2041 (NOT INCLUDING ENTERPRISE FUNDS. IN MILLIONS) $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 2016 2021 2026 2031 2036 2041 *WM Existing LTGO Debt (balance outstanding) — — LTGO Capacity ($thousands) Total Debt Capacity (Stbousands) Source: City of Tukwila, 2015; Rice Fergus Miller, 2015; and BERK, 2015. Based on the overall CIP needs, a conceptual bond financing plan was developed for both phasing options which found that both options could be completed within existing LTGO debt capacity. However, as LTGO bonds are merely one financing option, it is still prudent of the City to consider additional financing options as port of its facilities phasing plan. Considerations: • One of the benefits of LTGO bonds is that they can be passed by councilmanic ordinance. • LTGO bond capacity is substantial, but limited. Currently, the City of Tukwila has $41.4 million in LTGO bond capacity. Given the flexible nature of LTGO debt it is an important tool for the City's ability to react to unexpected expenses. While the City has enough capacity to support either facilities option with LTGO dept, deploying too much of the City' bond capacity will limit its ability to respond to unexpected expenses. • Since bonds are debt, the added costs of interest will increase project costs long term. • The timing of repayment of bonds for these projects would align the projects' payees with the beneficiaries. 63-20 FINANCING 63-20 is a method of obtaining tax-exempt financing that allows public bonds to be used to construct public facilities If they are secured by a lease agreement. A nonprofit corporation issues tax-exempt debt on behalf of a political subdivision for the purpose of financing facilities. Generally, these bonds require a credit-worthy private developer that is willing to enter into a lease to support the bond offering. The nonprofit corporation also manages and operates the building over the lease term. The facility is transferred to the government entity once the debt is retired. The tenant is required to be either a governmental entity or a charitable organization. A minimum 90% of the space must be occupied by the governmental entity, as specified by "private use" requirements. DRAFT 1 Submitted to City Council December 14, 2015 4 29 .0 JO .0. gm, 2016 2021 2026 2031 2036 2041 *WM Existing LTGO Debt (balance outstanding) — — LTGO Capacity ($thousands) Total Debt Capacity (Stbousands) Source: City of Tukwila, 2015; Rice Fergus Miller, 2015; and BERK, 2015. Based on the overall CIP needs, a conceptual bond financing plan was developed for both phasing options which found that both options could be completed within existing LTGO debt capacity. However, as LTGO bonds are merely one financing option, it is still prudent of the City to consider additional financing options as port of its facilities phasing plan. Considerations: • One of the benefits of LTGO bonds is that they can be passed by councilmanic ordinance. • LTGO bond capacity is substantial, but limited. Currently, the City of Tukwila has $41.4 million in LTGO bond capacity. Given the flexible nature of LTGO debt it is an important tool for the City's ability to react to unexpected expenses. While the City has enough capacity to support either facilities option with LTGO dept, deploying too much of the City' bond capacity will limit its ability to respond to unexpected expenses. • Since bonds are debt, the added costs of interest will increase project costs long term. • The timing of repayment of bonds for these projects would align the projects' payees with the beneficiaries. 63-20 FINANCING 63-20 is a method of obtaining tax-exempt financing that allows public bonds to be used to construct public facilities If they are secured by a lease agreement. A nonprofit corporation issues tax-exempt debt on behalf of a political subdivision for the purpose of financing facilities. Generally, these bonds require a credit-worthy private developer that is willing to enter into a lease to support the bond offering. The nonprofit corporation also manages and operates the building over the lease term. The facility is transferred to the government entity once the debt is retired. The tenant is required to be either a governmental entity or a charitable organization. A minimum 90% of the space must be occupied by the governmental entity, as specified by "private use" requirements. DRAFT 1 Submitted to City Council December 14, 2015 4 29 INVESTING IN TUKWIIA 1 ESSENTIAL GOVERNMENT SERVICES FACILITIES PLAN APPENDIX G - FUNDING AND PHASING OPTIONS 63-20 financed bonds have a higher interest rate and issuance fees due to the perceived higher level of risk compared to the general obligation bond, which has the full backing of the governmental jurisdiction. 63-20 financed bonds also have a small asset management fee associated with them. Benefits of 63-20 financing include the ability to realize construction cost savings through using a general contractor/construction manager (GC/CM) project delivery process compared to the design-bid-build model typically used for government facilities construction. Under this project delivery method, the general contractor guarantees a fixed price for the work and takes on the additional construction risk of subcontracting the project work. In addition, the contractor provides specialized project management, scheduiing, budgeting, and other advice early on and thrc!)ughout the project design process, which can result in a more efficient construction process and less costly project. This project delivery process is especially advantageous for unique or complex projects where governmental agencies may not have experience. The cost savings are not guaranteed, and they vary by project depending on the situation. Lastly, 63-20 bonds do not count towards a jurisdiction's debt limit, which is advantageous for jurisdictions with limited or no debt capacity. Considerations: 63-20 bonds may make sense when private sector involvement in developing a governmental facility is likely to provide significant benefits compared to a traditional public approach. These benefits may be most apparent for facilities that: • The obligation to pay rent is not a debt of the agency for the purposes of constitutional and statutory limitations on state debt. 63-20 bonds offer an option when the agency already carries the debt allowed by statutory regulation. • 63-20 financing could streamline delivery of a project, as an experienced developer, chosen via a request for proposals (RFP) process, would likely steward the process. • 63-20 financing shifts a significant amount of the project risk from the City to developers. • The timing of payment of the 63-20 lease established for a project would align the projects' payees with the beneficiaries. UNUMiTED TAX GENERAL OBLIGATION (UTGO) BONDS — (VOTED) Unlimited tax general obligation (UTGO) bonds are both a financing and funding source as their issuance includes the levy of an additional tax to repay them. These bonds require 60% voter approval and may only be used for capital purposes. When residents of a city vote for a bond issue, they are being asked to approve: (a) the issuance of a fixed amount of general obligation bonds and (b) the levy of on additional tax to repay the bonds, unlimited as to rate or amount. Once voter approval is obtained, a municipal corporation is still restricted by constitutional and statutory debt limits with these bonds. The statutory debt limits on this type of debt is 2.5% of the assessed value of property inclusive of any LTGO (non-voted) debt. The City currently has $32.4 million (2015$) in non-voter approved debt outstanding applicable to its UTGO debt. Debt Capacity as of May 2015 for UTGO Bond Debt is $90.1 million (2015$). This is not directly additive to LTGO debt capacity. Only $49 million (2015$) in UTGO bond capacity would be available if LTGO debt capacity was reached. DRAFT I Submitted to City Council December 14, 2015 5 30 City of Tukwila Facilities Plan Public Works Shops Comparison 0f63:J O Financing with All [TGF)Financing All Amounts are stated in $ Thousands Scenario 1. 63:20/LTGO Combination Scen rio 2. All LTGO LTGO 63:20 Leas Total LTGO Total Addition- to fund to fund design, to fund design, al Cos of land permitting, and permitting, and 63:20 construction construction Financing MINSMIn 2016 2017 2018 475 475 475 475 2019 475 475 663 663 2020 475 1'873 2,340 2'191 2,191 2021 475 1'873 2,349 2,191 2'191 2022 475 1,873 2,349 2,191 2^191 2023 475 1'873 2,349 2'191 2,191 2024 475 1'873 2'349 2'191 2,191 2025 475 1'873 2,349 2'191 2'191 2026 475 1'873 2,349 2,191 2'191 2027 475 1'873 2'349 2'191 2,191 2028 475 1.873 2,349 2'191 2'191 2029 475 1,873 2'349 2,191 2,191 2030 475 1,873 2'349 2,191 2,191 2031 475 1'873 2,349 2'191 2'191 2032 475 1,873 2.349 2,191 2,191 2033 475 1,873 2,349 I'I91 2.19I 2034 475 1'873 2,349 2'191 2'191 2035 475 1'873 2,349 2'191 2'191 2036 475 1,873 2,349 2^191 2,191 2037 475 1,873 2,349 2'191 2'191 2038 1'873 1'873 1'715 1,715 2039 1,873 1'873 1,528 1'538 $ 9,508 $37,46G $ 46,974 43,817 $ 43,817 3,157 Projected Cost of Public Works Shops in 2015 $ $ 26,625 32