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HomeMy WebLinkAboutPED 2020-06-15 COMPLETE AGENDA PACKETCity of Tukwila Planning & Economic Development Committee O Thomas McLeod, Chair O Kathy Hougardy O Zak Idan AGENDA MONDAY, JUNE 15, 2020 — 5:30 PM HAZELNUT III IT % E)NFERENCE seem (At east entFanee ef City Hall) Distribution: T. McLeod Mayor Ekberg K. Hougardy D. Cline Z. Idan R. Bianchi D. Quinn C. O'Flaherty A. Youn L. Humphrey THIS MEETING WILL NOT BE CONDUCTED AT CITY FACILITIES BASED ON THE GOVERNOR'S PROCLAMATION 20-28. THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 425495720# Item Recommended Action Page 1. BUSINESS AGENDA a. South King Housing and Homelessness Partners a. Forward to 6/22 C.O.W. for Pg.1 progress report and 2020-2021 Work Plan. consensus on Work Plan Angela San Filippo, Executive Manager of South King items. Housing and Homelessness Partners (SKHHP). Minnie Dhaliwal, Planning Supervisor b. House Bill 1923: An update on the Transit -Oriented b. Forward Contract to 7/6 Pg.31 Development Housing Strategies Plan and scope of Consent Agenda. work, and approval of contract in the amount of $80,000.00 (grant funds). Meredith Sampson, Assistant Planner c. Application for lodging tax funds: City of Tukwila for c. Forward to 6/15 Consent Pg.43 SavingLocalKC.com (formerly Back to Business Agenda. campaign) in the amount of $104,170.00. Brandon Miles, Business Relations Manager d. Lodging Tax Advisory Committee update: d. Discussion only. Pg.63 June funding requests. Brandon Miles, Business Relations Manager e. Business recovery update: Grants. e. Discussion only. Pg.65 Derek Speck, Economic Development Administrator 2. MISCELLANEOUS Next Scheduled Meeting: July 6, ZOZO SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800(TukwilaCityClerk(a�TukwilaWA.gov) for assistance. TO: FROM: BY: CC: DATE: SUBJECT City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Planning and Economic Development Committee Minnie Dhaliwal, Deputy Director Community Development Angela San Filippo, Executive Manager of South King County Housing and Homeless Partnership Mayor Ekberg June 9, 2020 South King County Housing and Homeless Partnership briefing ISSUE Angela San Filippo, Executive Manager of South King County Housing and Homeless Partnership (SKHHP) will provide progress report to the Committee and is seeking input on SKHHP's 2020-2021 work plan. BACKGROUND South King Housing and Homelessness Partners (SKHHP) is a partnership of ten jurisdictions formalized by an Interlocal Agreement. Tukwila City Council approved the Interlocal Agreement to join SKHHP in Jan 2019. The agreement supports South King County to work together and share resources to effectively address affordable housing and homelessness. Other jurisdictions that are part of SKHHP include Auburn, Burien, Covington, Des Moines, Federal Way, Normandy Park, Renton and King County. Interlocal Agreement that was approved by Tukwila City Council is available at http://records.tukwilawa.gov/WebLink/1/doc/313479/pagel.aspx DISCUSSION See attached memo from Angela San Filippo, Executive Manager of SKHHP along with 2019 end of the year report and draft 2020-2021 work plan. FINANCIAL IMPACT Tukwila's annual contribution per the Interlocal Agreement is $7,500 per year through 2022. RECOMMENDATION The Committee is being asked to provide input on the work plan and consider this item at the June 22, 2020 Committee of the Whole meeting. ATTACHMENTS Memo dated June 15, 2020 from Angela San Filippo, Executive Manager of SKHHP Attachment 1: 2019 End of the Year Report Attachment 2: Draft 2020-2021 Work Plan Copy of PowerPoint presentation 2 Memorandum SK:I: South King Housing and Homelessness Partners To: Tukwila Planning and Economic Development Committee From: Angela San Filippo, SKHHP Executive Manager Date: June 15, 2020 RE: SKHHP Briefing — 2019 End of Year Report and Draft 2020-2021 Work Plan and 2021-2022 Budget Overview SUMMARY: South King Housing and Homelessness Partners (SKHHP) is a partnership of 10 jurisdictions formalized by an Interlocal Agreement. The implementation of SKHHP is the culmination of more than 10 years of work by the Housing Development Consortium, King County, and South King County cities to deepen jurisdictional collaboration around housing and homelessness. The agreement supports South King County to work together and share resources in order to effectively address affordable housing and homelessness. The purpose of SKHHP is to increase available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock. Even before the coronavirus pandemic, affordable housing and homelessness were of vital concern in King County. As housing costs soared throughout the region more people were moving to areas like South King County with historically lower housing costs. This led to South King County experiencing some of the highest rent increases in the region and increasing concern over displacement of more vulnerable populations. With the economic impacts and jobs losses of the coronavirus pandemic the need for long-term policy and revenue solutions that help provide housing for all families becomes an even more critical issue. The information contained in this memo is a summary of work done in 2019, a summary of the draft 2020-2021 Work Plan, and an overview of the projected 2021 and 2022 revenue contributions for SKHHP partner jurisdictions. 2019 SKHHP END OF THE YEAR REPORT: The 2019 SKHHP End of the Year Report is provided in Attachment 1. The SKHHP Interlocal Agreement became effective on January 1, 2019 and was signed by individual member jurisdictions throughout the first half of 2019. The SKHHP Executive Board and staff work group held monthly meetings throughout 2019 and collectively worked to: adopt operating procedures; draft a SKHHP Communication Plan; and facilitate educational materials and presentations. June 15, 2020 SKHHP Briefing Page 1 of 3 3 The second half of 2019 included the following key actions: • Identification of priority action items to inform the 2020-2021 SKHHP Work Plan. • Advocacy for jurisdictions to enact the sales tax credit allowed by House Bill 1406 and coordination to pool those funds to address regional affordable housing needs. • Recruitment and hiring process for SKHHP Executive Manager. • Support as fiscal agent for regional South King County housing and policy needs assessment funded by Department of Commerce grants through House Bill 1923. 2020-2021 SKHHP WORK PLAN: The draft 2020-2021 SKHHP Work Plan is provided in Attachment 2. Attributable to the timing of hiring staff this is a two-year work plan, subsequent work plans will be developed annually. Consistent with the SKHHP Interlocal Agreement, the SKHHP work plan and budget must be approved by each legislative body and adopted by the SKHHP Executive Board. The 2020-2021 SKHHP Work plan and overview of the 2021-2022 budget will be presented to each member jurisdiction for feedback prior to approval and adoption by the SKHHP Executive Board. The expected timeline for work plan and budget adoption is as follows: May — June: Partner jurisdiction presentations/briefings and feedback July — August: SKHHP Executive Board adoption August — October: Legislative adoption by partner jurisdictions The 2020-2021 work plan operationalizes the priority action items identified by the Executive Board and staff work group in 2019 and incorporates actions necessary to address opportunities created by the 2019 legislative session. The work plan reflects the intention to hire a Program Coordinator and also identifies key allies with goals and activities that align with SKHHP that will augment staff capacity. The work plan is structured into three work areas: governance and administration; policy and planning; and outreach and education. Governance and administration includes start-up procedures, program -wide management activities, the annual work plan and budget process, and establishing an Advisory Committee. Once established, the Advisory Committee will provide recommendations to the Executive Board that will help to ensure equitable and informed decision making. The key outcomes for this work area are: • Functioning and collaborative entity with clear measures of success. • Implementation that supports equitable outcomes across jurisdictions, community members, and stakeholders. Policy and Planning includes establishing a SKHHP Housing Capital Fund, inventorying affordable housing vulnerable to market pressures, supporting development of housing action plans, and collaborating to enhance local policies and programs that accelerate access, protect existing housing stock, and provide housing security. The key outcomes for this work area are: June 15, 2020 SKHHP Briefing Page 2 of 3 11 • Pooled local resources dedicated to affordable housing in South King County. • Increased number of South King County cities with comprehensive housing action plans. • Number of jurisdictions with new or enhanced legislation or programs to support affordable housing strategies. Outreach and Education includes representing South King County at local and regional forums, furthering stakeholders' and elected officials understanding of housing options and the range of needs and opportunities, and developing state and federal advocacy priorities. The key outcomes for this work area are: • South King County is heard, considered, and supported by regional and state stakeholder groups and policy makers. • Changes in policies, programs, and funding streams that support affordable housing and homelessness programs in South King County. • Increased interest in South King County from non-profit and for -profit housing developers. 2021-2022 SKHHP BUDGET CONTRIBUTIONS: The SKHHP Executive Board is still working on finalizing a draft 2021-2022 SKHHP budget. However, in light of predicted revenue shortfalls and budget uncertainty within all jurisdictions, the Board has indicated commitment to keep jurisdiction revenue contributions stable through 2022. Maintaining current jurisdiction contributions is made possible by carrying over personnel cost savings from 2019 and 2020. The current contributions are based on population size (shown in the table below). Tukwila's contribution would be $7,500 per year through 2022. Population Contribution* <10,000 $4,000 10,001-35,000 $7,500 35,001-65,000 $15, 000 65,001-100,000 $26,000 >100,000 $34,000 *King County contributes an additional $41,000/year for a total annual contribution of $75,000. ATTACHMENTS: 1. 2019 End of Year Progress and Budget Report 2. 2020-2021 Draft SKHHP Work Plan June 15, 2020 SKHHP Briefing Page 3 of 3 5 9 ATTACHMENT 1 SK0011P SOUTH KING HOUSING AND HOMELESSNESS PARTNERS 2019 end -of -year report BACKGROUND South King County cities, supported by the Housing Development Consortium of Seattle -King County (HDC) have led the South King Housing and Homelessness Partners (SKHHP) collaboration efforts. The establishment of this partnership comes from 10 years of work by HDC and South King County cities to deepen interjurisdictional coordination around housing and homelessness. INTERLOCAL AGREEMENT Effective January 1, 2019, SKHHP was formalized by an interlocal agreement approved by the ten member jurisdictions (Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Normandy Park, Renton, Tukwila, and King County) and the SKHHP Executive Board. The interlocal agreement formalizes the member collaboration to address affordable housing and homelessness in South King County. This collaborative model is based on similar approaches used in Snohomish County, East King County, and other areas across the country. By pooling resources, jurisdictions in South King County can efficiently create new staff capacity that will work for each member jurisdiction to develop plans, policy legislation, new programs, work with private and non-profit developers, and help jurisdictions speak with one voice on these topics at regional and state forums. Midway through 2019 HDC and the Cedar River Group turned over SKHHP operations to the SKHHP Board and the SKHHP administering agency (City of Auburn). SKHHP EXECUTIVE BOARD MEETINGS SKHHP is governed by an Executive Board composed of either an elected official or City Manager/Administrator for each city and the King County Executive, or their designated representative of each member jurisdiction. The SKHHP Executive Board held monthly meetings throughout 2019. Early in 2019 the SKHHP Executive Board established the City of Auburn as the administering agency and adopted operating procedures and rules. In 2019 the SKHHP Executive Board also prioritized action items for the SKHHP work plan identifying 'must do', 'should do', and 'could do' actions. This list provides the starting point for developing and executing a SKHHP work plan. SKHHP STAFF WORK GROUP The SKHHP staff work group met monthly during 2019. Members of this group include staff from the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, King County, Renton, and Tukwila. The staff work group identified items for SKHHP Board meeting agendas, facilitated educational materials and presentations, and developed budget proposals and SKHHP work and communication plans. April 16, 2020 Page 1 of 4 7 ATTACHMENT 1 The staff work group was instrumental in drafting SKHHP position descriptions, and executing the hiring and recruitment process for the Executive Manager. The monthly SKHHP staff work group meetings provide the framework for coordination and collaboration between staff from SKHHP member jurisdictions. The monthly meetings are a regular opportunity for staff to share information, ideas, challenges, successes, and work together to advance SKHHP goals and priorities. SKHHP RECRUITMENT AND HIRING Midway through 2019 the SKHHP staff work group and Executive Board developed a position description and began the recruitment process for hiring a program manager. The position description went through several iterations and two recruitment and interview processes before SKHHP hired an Executive Manager in November 2019. The Executive Manager began full time in January 2020. HOUSE BILL 1406 COORDINATION 2019 House Bill 1406 authorizes cities and counties, for a period of 20 years, to retain a portion of sales tax that is currently collected, held and used by Washington State; provided those funds are directed towards objectives that support affordable housing initiatives. In July 2019 SKHHP passed a resolution advocating legislative bodies of all member jurisdictions to enact the provisions authorized under HB 1406. If all nine SKHHP partner cities pool the revenues collected from HB 1406, the revenue projection provided by the department of revenue would be about $1,000,000 annually over 20 years. From July through November of 2019 the SKHHP Executive Board, supported by the SKHHP staff work group, tracked progress of member jurisdictions in enacting HB 1406 and advocated for SKHHP member cities to pool the revenues collected to advance the interlocal agreement and create a SKHHP capital funding source. By the end of 2019 all SKHHP member jurisdictions had passed a resolution of intent to enact HB 1406 and all but one member city had passed an ordinance enacting the collection of the sales tax credit. In November 2019, the SKHHP Executive Board formally passed a resolution recommending each member city pool the revenues collected through HB 1406. By the end of 2019 three member cities passed a resolution to pool HB 1406 funds towards the SKHHP housing capital fund, and one member city created mayoral authority to pool HB 1406 in their enacting legislation. SOUTH KING COUNTY JOINT HOUSING NEEDS AND POLICY ASSESSMENT GROUP In October 2019 the SKHHP Executive Board provided general support to act as the fiscal agent for a joint planning effort between six of the nine SKHHP member cities. These six cities (Auburn, Burien, Federal Way, Kent, Renton, and Tukwila) each applied for a $100,000 Washington State Department of Commerce Planning grant made available by 2019 House Bill 1923 for a collective total of about $600,000. Each of the six cities will contribute $20,000 to a collective pool of money that will be used for the purpose of developing a comprehensive assessment of the housing stock in South King County, including growth, housing type, associated demographics, and income/affordability. Each city will also retain approximately $80,000 for housing policy and action plan development within its own boundaries. SKHHP will be the fiscal agent to execute the project and the City of Kent will manage the grant, consultant contracts, and provide project management. April 16, 2020 S Page 2 of 4 ATTACHMENT 1 EDUCATIONAL ITEMS From June through November of 2019, each SKHHP Executive Board meeting included an educational component. The educational items help the Board to stay current on state and local legislation, gain insight on best practices and policies around affordable housing and homelessness, and stay informed and engaged in local and regional planning efforts, studies, and analyses of housing and homelessness. The educational items included in 2019 were as follows: • June — House Bill 1406 • July — Non-profit versus public entity and funding sources • August — Housing affordability and what it means within your community • September— Healthy housing • October—Burien rental housing rules • November — King County Countywide Planning Policies ATTACHMENT 2019 Quarter 4 and end -of -the -year budget report April 16, 2020 Page 3 of 4 9 ATTACHMENT 1 2019 Quarter 4 and end -of -the -year budget report SKHHP Fund Budget Actual Remaining Percent Used* REVENUES Auburn 20,240 20,236 4 100.0% Burien 11,670 11,676 (6) 100.1 % Covington 5,840 5,838 2 100.0% Des Moines 5,840 5,838 2 100.0% Federal Way 20,240 20,236 4 100.0% Kent 26,460 26,464 (4) 100.0% Normandy Park 3,110 3,114 (4) 100.1% Renton 26,460 26,464 (4) 100.0% Tukwila 5,840 5,838 2 100.0% Unincorporated KC 26,460 27,000 (540) 102.0% Contributions/Donations 68,000 31,000 37,000 45.6% Other Outside Revenue" - 48,000 (48,000) Interest Earnings - 1,496 1,496 Total 220,160 233,200 (13,040) 105.9% EXPENDITURES SKHHP Cost Reimbursement 120,990 6,335 114,655 5.2% Administration Fee 20,920 20,920 - 100.0% Total 141,910 27,255 114,655 19.2% Beginning Fund Balance - - Net Change In Fund Balance 78,250 205,945 Estimated Ending Fund Balance - Dec 78,250 205,945 SKHHP Cost Reimbursement Detail Actual EXPENDITURES Wages 171 Benefits 14 Supplies - Professional Services 6,150 Interfund Allocations - Total 6,335 *Percent used is the percentage of what was originally budgeted versus the actual contributions and expenditures. The entire ending fund balance was carried forward to 2020. **Outside revenue sources include additional contribution from King County bringing the annual County contribution to $75,000. April 16, 2020 10 Page 4 of 4 ATTACHMENT 2 SK:10 SOUTH KING HOUSING AND HOMELESSNESS PARTNERS DRAFT 2020-2021 WORK PLAN Purpose: Establish a 2020-2021 SKHHP Work Plan that is consistent with the SKHHP Interlocal Agreement and shaped by member jurisdictions. The 2020-2021 SKHHP Work Plan reflects individual jurisdiction needs and interests while furthering the overall purpose of SKHHP to increase the available options for South King County residents to access affordable housing and preserve existing affordable housing stock. Introduction: The South King Housing and Homelessness Partners (SKHHP) was established through an interlocal agreement to work together and share resources to increase the available options for South King County residents to access affordable housing and preserve the existing affordable housing stock. The SKHHP 2020-2021 work plan includes three major areas of work that will facilitate implementation of the SKHHP Interlocal Agreement: governance and administration; policy and planning; and education and outreach. These three major work areas are broken into five objectives. Governance and administration is covered in Objective 1 and includes program -wide management activities that will be completed annually including developing and adopting an annual work plan and budget. This work area also includes start-up procedures including establishing decision -making protocols and reporting procedures, and convening a community advisory committee. Policy and planning is covered in Objectives 2 and 3 and includes advocating for and establishing a SKHHP affordable housing capital fund; and collaborating with partners to enhance local policies and programs that accelerate access to affordable housing, protect existing housing stock, and provide housing security. Outreach and education is covered in Objectives 4 and 5 and includes representing South King County and its unique affordable housing needs at all decision tables; and furthering the understanding of the spectrum of affordable housing options and the range of related needs and opportunities. Background: During 2018 and 2019 staff of member jurisdictions discussed a wide range of work plan ideas for SKHHP; the goal was to identify objectives and action items for an 18-month work plan. In June 2019, each jurisdiction was asked what SKHHP "must do", "should do", or "could do" during the course of the first 18-months. In June 2019, the SKHHP Executive Board reviewed and approved the list by focusing on the "must do" and "should do" items. May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 1 of 8 11 ATTACHMENT 2 The 2020-2021 work plan operationalizes the list approved by the SKHHP Executive Board in 2019 and incorporates the HB 1406 sales tax credit and the sub -regional housing assessment made possible by HB 1923 grant funds. The sub -regional housing assessment is being coordinated by six of the nine SKHHP partner cities (SoKiHo). The 2020-2021 work plan also identifies allies like the Housing Development Consortium (HDC) and King County with goals that align with SKHHP that will augment staff capacity. The 2020-2021 work plan prioritizes the "must do" and "should do" activities for 2020. Activities that were part of the 2019 list of activities will be reassessed for possible incorporation in the 2022 work plan. In February 2020 King County had its first reported case of COVID-19, the disease caused by the coronavirus. Since February, the pandemic has continued to expand and we have yet to see the full extent of the virus. On March 23, 2020 Governor Inslee announced a statewide order requiring everyone in the state to stay home for two weeks. The order required everyone to stay home except to pursue essential activities, banned all gatherings for social, spiritual, and recreational purposes, and closed all businesses except those deemed essential. The Stay Home, Stay Healthy initiative has since been extended through May, 2020 with a four phase approach to opening businesses that will begin on May 5, 2020. In response to the impacts of the COVID-19 crisis, federal, state, and local governments have mobilized emergency operations centers, implemented temporary policies to prevent residential and business evictions, and passed unprecedented stimulus packages in the hopes to lessen the impacts of COVID-19 to individuals and businesses. The impacts of this crisis are still unfolding and much of the recovery effort has yet to be determined. During this unprecedented time, staff capacity and local resources may need to adapt. This may require SKHHP to reanalyze priorities and/or shift the timeline for the work identified in the work plan. Progress reports: Consistent with the Interlocal Agreement, the SKHHP Executive Manager will submit quarterly budget performance and progress reports on the status of the work plan elements to the SKHHP Executive Board and the legislative body of each member jurisdiction. To be consistent with the administering agency's finance department, quarterly progress reports will be provided as follows: • Quarter 1: May • Quarter 2: August • Quarter 3: November • Quarter 4: February Next steps: In accordance with the Interlocal Agreement, the 2020-2021 SKHHP Work Plan will be approved by the legislative body of each member jurisdiction and the SKHHP Executive Board. The timeline for review and adoption of the 2020 SKHHP Work Plan is as follows: May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 2 of 8 12 ATTACHMENT 2 • May -June — Draft 2020-2021 SKHHP Work Plan and Draft 2021 operational budget reviewed by legislative body of each jurisdiction and SKHHP Executive Board. • July -August — review and adoption of 2020-2021 SKHHP Work Plan and 2021 operational budget by SKHHP Executive Board. • August -October — adoption of 2020-2021 SKHHP Work Plan and 2021 operational budget by legislative body of each jurisdiction. Acronyms: The 2020-2021 work plan includes several acronyms or abbreviations defined as follows: AdvCom: SKHHP Advisory Committee to be formed during 2020 made up of 12 to 15 community members appointed by the Executive Board to provide advice and recommendation to the Executive Board. EB: SKHHP Executive Board Enterprise: Enterprise Community Partners HDC: Housing Development Consortium SKC: South King County SKCJPD: South King County Joint Planners and Developers group convened by HDC SoKiHo: South King County housing group (six of the nine SKHHP cities) managing the sub -regional housing needs and policy assessment May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 3 of 8 13 ATTACHMENT 2 GOVERNANCE AND ADMINISTRATION Objective 1: Establish SKHHP's governance and decision making structure, foster collaboration between partners, and provide direction to staff on implementation of the SKHHP Interlocal Agreement. Outcomes: 1) Functioning and collaborative entity with clear measures of success. 2) Implementation supports equitable outcomes across jurisdictions, community members, and stakeholders. ResponsibleV t[ U� :�& Develop Annual Work Plan - SKHHP staff, In �- ( 1 (SKHHP adoption by June 1) work group, & EB progres Partner jurisdiction review SKHHP staff, In FFFFF 7 1a and adoption work group, & EB progress Develop Annual Budget (SKHHP SKHHP staff, In 2 adoption by June 1) work group, & EB progress Partner jurisdiction review SKHHP staff, In 2a and adoption work group, & EB progress 3 Establish decision -making SKHHP staff & EB In protocols progress 4 Develop quarterly reporting SKHHP staff & EB In procedures progress 4a Quarterly progress and SKHHP staff Ongoing budget reports 5 Establish SKHHP Advisory SKHHP staff & EB Not Committee started May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 4 of 8 ATTACHMENT 2 POLICY AND PLANNING Objective 2: Establish South King County Housing Capital Fund, develop an administration plan, and build funding support. Outcomes: 1) Increase resources dedicated to affordable housing preservation, rehabilitation, and production in South King County. 2) Pool resources to address the growing affordable housing and homelessness needs in South King County. Responsible2020 Coordinate City commitment to SKHHP staff, In 1 pool HB 1406 funds work group, & EB progress 2 Inventory and assess existing SKHHP staff & EB Not local affordable housing funds started Create inventory of expiring tax credit developments and SKHHP staff, In 3 naturally occurring affordable progressSoKiHo housing vulnerable to market (ongoing) pressures Assess physical conditions of existing subsidized and SKHHP staff, In 4 naturally occurring affordable work group progress housing stock (ongoing) Create portfolio of potential SKHHP staff, Not 5 uses and allocation strategies work group, & EB started Develop marketing materials by SKHHP staff, Not 6 audience to build funding work group, & EB started support Develop administration plan for SKHHP staff, Not 7 SKHHP Housing Capital Fund AdvCom., & EB started Build funding support through SKHHP staff, In ONE 8 advocacy with philanthropic work group, oroeres and private corporations AdvCom., & EB (ongoing) May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 5 of 8 O� ATTACHMENT 2 Objective 3: Work with partner jurisdictions to enhance and develop new local policies and programs that protect existing affordable housing stock, provide housing security, and accelerate access to affordable housing. Outcomes: 1) Increased number of South King County cities with comprehensive housing strategy plans. 2) Number of jurisdictions that adopt new or enhanced legislation or programs that support affordable housing production and preservation strategies. 3) Increased number of affordable rental housing units in participating programs. Activities/Actions 61 Responsible Status F, im. F�- F--- I 11 F-, F9 Fi.) Support creation of housing policy SoKiHo & In 1 assessment tool SKHHPstaff7 progress FT' Support development of housing SKHHP staff & Not 2 strategy/action plans SoKiHo started Maintain inventory & assessment of existing city preservation SKHHP staff & In 3 programs for affordable rental & work group progress ownership housing Coordinate SKC participation in SKHHP staff, identification of potential locations Sound Transit, Not 4 for future TOD to include affordable King County, started housing Enterprise Catalog successful affordable 5 housing development projects SKHHP staff Ongoing Develop examples of potential 6 design standards and desired SKHHP staff & Not work group started requirements May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 6 of 8 ATTACHMENT 2 OUTREACH AND EDUCATION Objective 4: Represent South King County and its unique affordable housing needs at all decision tables. Outcomes: 1) Establish credibility of SKHHP with potential partners and funders. 2) South King County is authentically heard, considered, and supported by regional and state stakeholders and policy makers. 3) Changes in policies, practices, and funding streams that support affordable housing and homelessness programs in South King County. Activities/Actions'WV-Responsible Create schedule of priority SKHHP staff, Not 1 meetings and designate SKC work group & EB started representatives Represent SKHHP at local & In 2 regional meetings and forums. SKHHP staff progress ress (ongoing) Develop SKHHP State advocacy SKHHP staff, In 3 priorities work group & EB progress Develop SKHHP Federal SKHHP staff, In 4 advocacy priorities work group & EB progress Develop advocacy SKHHP staff, Not 5 presentation and messaging work group & EB started toolkit Conduct work sessions with SKHHP staff, Not 6 state legislators work group & EB 1 started May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 7 of 8 ATTACHMENT 2 Objective 5: Further strengthen regional stakeholders' understanding of the spectrum of affordable housing options and the range of related needs and opportunities. Outcomes: 1) South King County decision makers are informed and prepared to act based on current information and facts. 2) Increased interest from nonprofit and for -profit developer to partner with South King County cities to produce affordable housing. 2020 Activities/Actions 6 Responsible Status ANA CL r i Coordinate and work with developers to better understand SKHHP staff, In 1 barriers to increasing construction SKCJPD, HDC progress and preservation of affordable (ongoing) housing Support SKC engagement and elected official participation in SKHHP staff In 2 affordable housing development & HDC Y\Yl1QYGcC (ongoing) tours Develop affordable housing and SKHHP staff, 3 homelessness awareness AdvCom. & In presentation toolkit EB progress May 13, 2020 SKHHP 2020-2021 DRAFT WORK PLAN Page 8 of 8 South King Housing and Homelessness Partners Angela San Filippo, Executive Manager Tukwila Planning and Economic Development Committee June 15, 2020 Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE no co N O South King Housing and Homelessness Partners • Partnership of 10 jurisdictions to enable South King County to work together and share resources in order to effectively address affordable housing and homelessness. • 10+ years of work by HDC and South King County cities to deepen jurisdictional collaboration around housing and homelessness. Purpose To increase available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock. Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE no South King Housing and Homelessness Partners • Provides unified voice for South King County • Develops shared solutions for regional housing needs • Keeps our neighbors in the region and in their homes • Serves our most vulnerable residents Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKE■ ■ N N N 1 Interlocal Agreement Effective 2019 at -a -glance i Ak Ak i City of Identified HB 1923 Hire Auburn, priority planning Executive SKHHP action items and policy Manager administering SKC joint agency assessment H B 1406 pooling resolution Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE . 2020-2021 Work Plan and 2021-2022 Budget Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKE■ ■ N W N Auburn I Burien I Covington I Des Moines 2020-2021 Work Plan • Collaborative entity with clear measures of success. • Implementation supports equitable outcomes. Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE I no 2020-2021 Work Plan • Advocate for SKHHP Housing Capital Fund. • Develop administration program for housing capital fund. • Inventory affordable housing vulnerable to market pressures. • Collaborate on local policies and programs that accelerate access, protect housing stock, and provide housing security. • Support development of housing action plans. Auburn I Burien I Covington N Outcomes • Increased resources dedicated to affordable housing in SKC. • Increased number of SKC cities with housing action plans. • Number of jurisdictions with new or enhanced legislation or programs to support affordable housing strategies. Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE I no N 2020-2021 Work Plan • Represent South King County at local and regional decision tables. • Further stakeholders' understanding of housing options and range of needs and opportunities. • Develop state and federal advocacy priorities. Outcomes L AM • South King County is heard, considered, supported. • Changes in policies, practices, and funding streams. • Increased interest in SKC from nonprofit and for - profit developers. Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE no 2021-2022 Budget Overview • Personnel cost savings in 2019 and 2020 will be used to: • Maintain current jurisdiction contributions through 2022 Hire SKHHP Program Coordinator Population <10,000 10,001-35,000 351001-651000 651001-1001000 >100,000 Contribution $4,000 $7,500 $15,000 $26,000 $34,000 Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKE■ ■ N Before COVID-19, 1 out of 3 households in King County were cost -burdened Growth • King County Is population growth has been greater than housing production since 2011. • Wages have not kept up with increased housing costs. Cost burden • More than 100,000 low-income households pay more than half their income for housing costs. Disproportionality • Renters are twice as likely to pay half their income for housing costs. • People of color are significantly more likely to be paying more than half their income on housing. Need • 244,000 affordable homes needed by 2040. Affordable Housing Committee - May 15, 2020 Likely Scenarios from COVID-19 Pandemic ✓Cost burden rises because housing supply is still so low that home prices are not likely to go down. Home prices are less responsive to recessions because housing is an absolute need. ✓Disproportionate impacts on vulnerable populations. ✓Renters and owners face evictions/foreclosures at the end of moratorium, and existing affordable housing units are at risk if they have a foreclosure. ✓Immediate crisis response pulls attention from long-term needs. ✓Funding sources uncertain during recession. Affordable Housing Committee - May 15, 2020 N CO W O QUESTIONS?.?. South King Housing and Homelessness Partners Angela San Filippo, Executive Manager asanfilippo@skhhp.org (253) 329-7394 Auburn I Burien I Covington I Des Moines I Federal Way I Kent I Normandy Park I Renton I Tukwila I King County SKEE no City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development Committee FROM: Minnie Dhaliwal, Deputy Director of Community Development BY: Meredith Sampson, Associate Planner CC: Mayor Ekberg DATE: June 15, 2020 SUBJECT: An update on House Bill (HB) 1923: Transit Oriented Development Housing Strategies Plan, Scope of Work, and Contract ISSUE Staff is seeking Council approval to authorize the Mayor to sign a professional services contract with ECONorthwest for $80,000 to prepare Tukwila's Transit Oriented Development (TOD) Housing Strategies Plan. A grant from the WA Department of Commerce through HB 1923 will be used to fund the work. BACKGROUND The State legislature passed HB 1923 providing $5 million in grant opportunities to increase residential building capacity in Washington communities with awards up to $100,000 per jurisdiction. The goal of a housing plan developed using this funding source "must be to encourage construction of additional affordable and market rate housing in a greater variety of housing types and at prices that are accessible to a greater variety of incomes, including strategies aimed at the for -profit single-family home market." Staff applied for the grant at the end of September 2019 after receiving approval to move forward by the Community Development and Neighborhoods (CDN) Committee, and the City was awarded the full $100,000. Council approved and authorized the Mayor to sign an Interagency Agreement with the WA Department of Commerce to accept grant funding at the December 2, 2019 Regular Meeting. Tukwila's scope of work with WA Dept. of Commerce outlines how the $100,000 in grant funds is allocated: $20,000 - Preparing a sub -regional framework, which will help cities understand the housing stock and housing needs in south king county. This portion of the grant award will be pooled with Auburn, Burien, Federal Way, Kent, and Renton, and each City is contributing grant funds towards this effort. $80,000 - Funding the TOD Housing Strategies Plan for Tukwila: o review and evaluation of the Tukwila's existing housing documents o an assessment of barriers and strategies to encourage higher density development in the TOD zone (see attached Figure 1) o consideration of strategies to minimize displacement in the TOD zone o a robust public engagement process throughout the planning effort o and the incorporation of findings into a Transit -Oriented Development Housing Strategies Plan 31 INFORMATIONAL MEMO Page 2 DISCUSSION ECONorthwest was selected to prepare the TOD Housing Strategies Plan for Tukwila within areas one-half mile from the Tukwila International Boulevard Station. The following summarizes the draft scope of work for the project contained in the attached contract for services with ECONorthwest: • Task 1: Public Involvement to Shape and Inform Proposed Strategies o Building on the established community vision, and housing work done in 2017, conduct outreach to local apartment owners, developers, real estate agents, nonprofit housing advocates, and local community and religious groups about housing barriers and opportunities. o Community outreach will take a variety of forms in order to best capture representative feedback. o Create outreach and education materials. Task 2: Assessment & Housing Policy Framework o The assessment task will evaluate and summarize all available goals, policies, and data that impacts the TIB station area. The assessment task will also summarize an evaluation of zoning, development standards, and design standards to identify barriers to supporting TOD, accommodating future growth, and realizing community identified outcomes. The Housing Policy Framework will identify policy, regulatory, and program interventions to advance the City goals and community desired outcomes of the TIB station area. • Task 3: Opportunities, Barriers, and Displacement Mitigation report o This task will identify policy, regulatory, and program strategies to advance the City goals and community desired outcomes of the TIB station area, including strategies to mitigate displacement that might occur from new development in the area. • Task 4: Transit -Oriented Development Housing Strategies Plan o This task will summarize all work from previous tasks in a final Transit -Oriented Development Housing Strategies Plan for the TIB station area. This strategy will include recommendations that advance City and community goals for increased residential development, enhanced community stability, and growth accommodation in the TIB station area. This strategy can serve as a roadmap for the City of Tukwila to identify a clear path forward to implement the goals and policies in the Housing Element and the Comprehensive Plan. o The plan must obtain City Council approval by April 2021. FINANCIAL IMPACT Grant funded. No financial match needed. Staff time will be needed to manage the grant. RECOMMENDATION Forward this item directly to the Consent Agenda of the July 6, 2020 Regular Meeting. This action will authorize the Mayor to sign a Professional Services Agreement with ECONorthwest through June 2021 for $80,000 to fund the preparation of the TOD Housing Strategies Plan. ATTACHMENT Draft contract with ECONorthwest 32 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/DCD/HB 1923_PED 6-15-20/HB 1923 JUNE 2020 MEMO.docx Contract Number: City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 PROFESSIONAL SERVICES AGREEMENT (Includes consultants, architects, engineers, accountants, and other professional services) THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as "the City", and ECONorthwest, hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform planning services in connection with the project titled Transit -Oriented Development Housing Strategies Plan. 2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect for a period commencing upon execution and ending June 30, 2021, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement no later than June 30, 2021 unless an extension of such time is granted in writing by the City. 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant shall be made as provided on Exhibit "B" attached hereto, provided that the total amount of payment to the Consultant shall not exceed $80,000 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City following the acceptance of each deliverable by the Department of Commerce. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. Deliverables and invoices from the City shall be submitted to Commerce for acceptance and grant payment not more often than quarterly. Payment to Consultant will consequently similarly be not more often than quarterly. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment as provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. {DPK2164945.DOC;1/13175.000001/ } 33 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in 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 Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant'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. 8. Insurance. The Consultant 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 Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant 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 Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 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. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop -gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO endorsement form CG 20 26. {DPK2164945.DOC;1/13175.000001/ } December 2016 34 CA revised Page 2 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. Professional Liability insurance shall be appropriate to the Consultant's profession. B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained by the Contractor are greater than those required by this Contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Contractor. C. Other Insurance Provision. The Consultant'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 Consultant's insurance and shall not be contributed or combined with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage. Consultant 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. Upon request by the City, the Consultant shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Notice of Cancellation. The Consultant shall provide the City 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 Consultant 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 Consultant 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 Consultant from the City. 9. Independent Contractor. The Consultant and the City agree that the Consultant 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 the Consultant nor any employee of the Consultant 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 for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this {DPK2164945.DOC;1/13175.000001/ } CA revised December 2016 Page 3 35 warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. Contractor, 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, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. 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. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. 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. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: ECONorthwest 222 Southwest Columbia, Suite 1600 Portland, OR 97201 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and {DPK2164945.DOC;1/13175.000001/ } CA revised December 2016 Page 4 36 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. {DPK2164945.DOC;1/13175.000001/ } December 2016 CA revised Page 5 37 DATED this CITY OF TUKWILA Allan Ekberg, Mayor Attest/Authenticated: City Clerk, Christy O'Flaherty day of , 20 CONSULTANT By: Printed Name: Title: Approved as to Form: Office of the City Attorney {DPK2164945.DOC;1/13175.000001/ } December 2016 CA revised Page 6 EXHIBIT A Scope of Work Task 1: Public Involvement to Shape and Inform Proposed Strategies • Building on the established community vision, and work done in 2017, conduct outreach to local apartment owners, developers, real estate agents, nonprofit housing advocates, and local community and religious groups about housing barriers and opportunities. • Community outreach will take a variety of forms, in order to best capture representative feedback. Options include: o Online/written surveys o One-on-one interviews o Focus groups o Public meeting in TIB community Create outreach and education materials for the groups mentioned above as well as for City Council. o Includes content for website. o City of Tukwila will provide support for translation/interpretation for materials and meetings. Task 1 Deliverable: Public Involvement Plan and Summary Memo prepared in Microsoft Word. We will prepare a draft memo to solicit feedback, and will incorporate the final text into the Task 4 complete strategy. Task 2: Assessment & Housing Policy Framework The assessment task will evaluate and summarize all available goals, policies, and data that impacts the TIB station area. The assessment task will also summarize an evaluation of zoning, development standards, and design standards to identify barriers to supporting TOD, accommodating future growth, and realizing community identified outcomes. The Housing Policy Framework will identify policy, regulatory, and program interventions to advance the City goals and community desired outcomes of the TIB station area. Specific actions in this task include: • Review and evaluate available data, goals and policies on the TIB area, including: o Tukwila's Comprehensive Plan Elements and Background Reports on Housing and the Tukwila International Boulevard District o PSRC's Growing Transit Communities document about the Tukwila International Boulevard transit community. o Other relevant data, goals, and policies Review and evaluate existing and proposed zoning, development standards, and design standards o Assess existing and proposed development standards, including recreation space and parking requirements for multifamily development. o Review draft zoning code revisions prepared by Placemakers for the TIB area. o Evaluate existing and proposed multifamily design guidelines and suggest revisions that lead to better placemaking and outcomes for community members. Review and evaluate existing development incentives o Document and assess the effectiveness of the current tools and incentives the City uses to encourage housing such as multi -family tax exemption and opportunity zones. Review the existing planning policies impacting housing and evaluate their successes at achieving their goals, such as: o The City's Comprehensive Plan Elements on Housing o PSRC's Growing Transit Communities Document {DPK2164945.DOC;1/13175.000001/ } December 2016 CA revised Page 7 39 Task 2 Deliverable: Assessment & Housing Policy Framework Memo prepared in Microsoft Word. We will prepare a draft memo to solicit feedback, and will incorporate the final text into the Task 4 complete strategy. Task 3: Opportunities, Barriers, and Displacement Mitigation Report This task will identify policy, regulatory, and program strategies to advance the City goals and community desired outcomes of the TIB station area, including strategies to mitigate displacement that might occur from new development in the area. Specific tasks will include: • Identify opportunities to o Build off public sector transit and infrastructure investments of the TIB LINK light rail station and the future 1-405 Bus Rapid Transit (BRT) station. This will evaluate the development and placemaking opportunities to knit together segments of the station area that are fragmented by regional transportation facilitates. o Encourage higher density residential development in Tukwila's TOD area. o Support and compliment City development standards o Identify tools and incentives to support parcel assembly o Identify opportunities to increase rates of homeownership, e.g. co -housing, townhomes, condominiums Identify strategies to minimize displacement and support community stability in the station area, such as: o Small business development and entrepreneurship supports for future mixed -use and commercial development along Tukwila International Boulevard. o Incentives and resources property owners can use to rehabilitate and maintain properties while preserving affordability of housing. o Tools and strategies to preservation of existing affordable housing and the development of new rent -regulated affordable housing. Task 3 Deliverable: Opportunities, Barriers, and Displacement Mitigation Report prepared in Microsoft Word. We will prepare a draft report to solicit feedback, and will incorporate the final text into the Task 4 complete strategy. Task 4: Transit -Oriented Development Housing Strategies Plan This task will summarize all work from previous tasks in a final Transit -Oriented Development Housing Strategies Plan for the TIB station area. This strategy will include recommendations that advance City and community goals for increased residential development, enhanced community stability, and growth accommodation in the TIB station area. This strategy can serve as a roadmap for the City of Tukwila to identify a clear path forward to implement the goals and policies in the Housing Element and the Comprehensive Plan. Task 4 Deliverable: Final Transit -Oriented Development Housing Strategies Plan. The plan will be prepared in Microsoft word. We will prepare a draft and final memo with one round of review. {DPK2164945.DOC;1/13175.000001/ } December 2016 M CA revised Page 8 Hourly Rates from ECONorthwest Project Director - $195 - $250 Project Manager - $135 - $145 Technical Manager I - $120 Technical Manager II - $135 - $150 Associate - $120 Senior Research Analyst - $105 Research Analyst - $80 - $95 Clerical - $55 {DPK2164945.DOC;1/13175.000001/ } December 2016 CA revised Page 9 41 42 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: June 9, 2020 SUBJECT: 2020 Lodging Tax Funding Request City of Tukwila, Pandemic Response, SavingLocalKC.com ISSUE Review of lodging tax funding request from the City of Tukwila in the amount of $104,170 for the SavingLocalKC.com campaign (formally Back to Business Campaign). BACKGROUND The City collects a 1 % lodging tax on certain qualifying overnight stays in paid accommodations (hotels/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'. There is currently just over $1 million in lodging tax funds available for use. The City's Lodging Tax Advisory Committee (LTAC) reviews all requests, even by the City, for use of lodging tax funds. LTAC then forwards a list of recommended applications to the City Council for its review and consideration. If LTAC does not recommend an application be funded, that application is not forwarded to the City Council. The City Council may approve or deny any of the applications recommended by the LTAC. The City Council may also approve an application and increase or decrease the dollar amount awarded'. The City accepts applications on a rolling basis, with the LTAC reviewing requests monthly. Pending Applications LTAC is scheduled to meet on June 12 to consider the request below. Staff will provide an update on LTAC's recommendation following its meetings. 1 RCW 67.28.080 (6) defines "tourism promotion" as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists." ' On August 17, 2016, the Washington State Attorney General's Office issued an informal opinion regarding whether a municipality could change the dollar amounts recommended by the local lodging tax advisory committee. Specifically, the informal opinion states: "When awarding lodging tax revenues pursuant to RCW 67.28.1816(2)(b)(ii), a municipality may award amounts different from the local lodging tax advisory committee's recommended amounts, but only after satisfying the procedural requirements of RCW 67.28.1817(2), according to which the municipality must submit its proposed change to the advisory committee for review and comment at least forty five days before final action on the proposal." 43 INFORMATIONAL MEMO Page 2 1. City of Tukwila, ($104,170) In April, the City Council approved the City's request for $50,000 in lodging tax funds for the Saving Local KC.com'. SavingLocalKC is a countywide campaign dedicated to providing a one stop resource for consumers looking to help businesses impacted by the COVID-19 Stay Home, Stay Health Order. Any consumer facing businesses in King County can place a deal on the website. Currently there are 34 deals on the website, with more being added weekly. The following are the key performance indicators (KPIs) for SavingLocalKC as of May 29, 2020: Website KPIs Total Sessions: 6,729 Total Page Views: 13,292 Click On Offers: 696 (10.34% conversion rate') Social Media KPIs Facebook: 711 followers Instagram: 110 followers Twitter: 199 followers Impressions KPIs Facebook:1 1,250,000 Twitter: 1 493,000 SavingLocalKC is having initial success and staff is requesting additional lodging tax funds to build the campaign and keep it going through 2020. The additional funds will be used as follows: • Website maintenance. • Social Media Management • Project Management and Reporting • Ads spend and ad management • Video Development • Third Party Ad Busy • Paid Google Search • Email Marketing • Contingency One Time Costs • Strategic Development • Google Search Set Up 3 Staff initially requested $25,000 in funds. At the Lodging Tax meeting in April LTAC increased the total amount awarded to $50,000, provided staff made a briefing to LTAC on how the additional funds would be used. This briefing was completed on May 8. ' Offers are maintained on the sites of businesses providing deals. Conversion for this campaign is defined as someone who click through savinglocalkc.com to an offer on the businesses' website. 44 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED, Saving Local/June PED Memo.doc INFORMATIONAL MEMO Page 3 • Social Media Ad Creation The City will also change the direction of the ads and promotions and begin to focus on the "why" to outline how businesses have been impacted by COVID-19 to create an emotional connection with consumers. Saving Local, Estimated Costs Through Mid -May through December Ongoing Costs Cost Website Maint. $ 13,000 Social Media Post Management $ 19,500 Project Management and Reporting $ 6,500 Social Media Ad Spend (including management fee) $ 22,000 Video Production Costs $ 10,000 Google Search Monthly (Including management fee) $ 1,200 Third Party Ad Buys (including management fee) $ 15,000 Email Marketing $ 2,500 Subtotal: $ 89,700 Contingency (10%) $ 8,970 Ongoing Costs Total: $ 98,670 One Time Costs Cost Strategic Development $ 3,000 Google Search Set Up $ 1,000 Social Media Ad Creation $ 3,000 Email Marketing Setup $ 1,000 One Time Cost Total: $ 8,000 Grand Total: $ 106,670 LESS Port of Seattle Grant $ (2,500) Total Lodging Tax Request: $ 104,170 DISCUSSION SavingLocalKC has provided a great avenue for the City to market itself throughout King County, while supporting Tukwila businesses impacted by COVID-19. The campaign has been well received by Chambers of Commerce and businesses in King County. Tukwila as recognized as providing a great tool for businesses. The City's goals through the year are as follows: Total Number of Participating Businesses: 100 Total Number of Impressions: 5.0 million Total Web a e Visits: 20,000 Total Social Media Followers: 15,000 Conversion Rate: 8% https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED, Saving Local/June PED Memo.doc 45 INFORMATIONAL MEMO Page 4 News Articles Mentions: 13 FINANCIAL IMPACT The following shows the current breakdown for funding for the campaign: Funding Source Amount Note City's April Lodging Tax Application $50,000 Already approved by City Council and LTAC. General Operation's $4,500 Port Economic Development Grant $2,500 Already awarded by Port. City's June Lodging Tax Application $104,170 Pending Total: $161,170 RECOMMENDATION Staff recommends that the City Council approve the funding request, as recommended by LTAC. Staff has placed this on the June 15 regular agenda (same night at P.E.D meeting). ATTACHMENTS • Lodging Tax Application • Staff memo to City Council, dated April 15, 2020 • May 14 Press Release 46 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED, Saving Local/June PED Memo.doc Application to the City of Tukwila for Use of 2020 Lodging Tax Funds Event or Activity Name (if applicable): SavingLocalKC.com (formally Back to Business Campaign) Continued Funding Amount of Lodging Tax Requested: $104,170 Applicant Organization: City of Tukwila, Office of the Mayor Federal Tax ID Number: 91-6001519 Mailing Address: 6200 Southcenter Blvd; Tukwila, WA, 98188 Primary Contact Name: Brandon Miles Primary Contact Phone: (206) 431-3684 Primary Contact Email Address: Brandon.Miles@Tukwilawa.gov Check all the service categories that apply to this application: Tourism promotion or marketing. Operation of a special event or festival designed to attract tourists. Operation of a tourism -related facility owned or operated by a non-profit organization. Operation and/or capital costs of a tourism -related facility owned by a municipality or a public facilities district. Check which one of the following applies to your agency: Non -Profit (Note: Attach a copy of your current non-profit corporate registration from the Washington Secretary of State Office) Municipality For Profit Corporation I am an authorized agent of the organization/agency applying for funding. I understand that: • 1 am proposing a tourism -related service for 2020. If awarded, my organization intends to enter into a services contract with the City; provide liability insurance for the duration of the contract naming the City as additional insured and in an amount determined by the City; and file for a permit for use of City property, if applicable. • My agency will be required to submit a report documenting economic impact results in a format determined by the City. Signature: Date: June 9, 2020 WA 1) Describe your tourism -related activity or event. In April the Lodging Tax Advisory Committee (LTAC) approved $50,0001 for the City of Tukwila's Back to Business Campaign (now known as SavingLocalKC.com. SavingLocalKC provides a one stop place for consumers to purchase deals from businesses impacted by COVID-19. The site currently has just over 35 businesses listed on it, with more being added every week. Any consumer facing businesses in King County can participate. Participating businesses are geographically dispersed throughout King County, with a heavy concentration of businesses in south King County. SavingLocalKC.com launched in early April in partnership with the City of Kent and 10 Chambers of Commerce. These partners provided in -kind services for the campaign. The campaign includes a dedicated website and social media handles. Additionally, in order to promote deals for Tukwila dedicated social media channels for the City were created, Experience Tukwila. The campaign also included an earned media push and paid social media. During the week of June 8 the campaign started to get some interest from news reporters. The City has received support in its marketing efforts from the State of Washington's COVID-19 resource page, Washington State Convention Center, participating businesses, and local Chambers of Commerce. Staff is requesting a total of $100,420 to continue savinglocakc through 2020. The funds will be used as follows: Ongoing Costs: • Website maintenance. • Social Media Management • Project Management and Reporting • Ad spend and ad management • Video Development • Third Party Ad Busy • Paid Google Search • Contingency One Time Costs • Strategic Development • Google Search Set Up • Social Media Ad Creation Staff originally requested $25,000. LTAC increased staff s request to a total of $50,000, provided staff brief LTAC on how the additional $25,000 would be spent. Staff briefed LTAC on the usage of the additional funds at the May 8 LTAC meeting. Page 2 of 8 As part of the next phase of the campaign the City is going to highlight the emotional "why" for the campaign. This will move away from highlighting deals to highlighting how the deals help businesses and the people that work in the businesses. KPIs (As of May 29, 2020) Website Total Sessions: 6,729 Total Page Views: 13,292 Click On Offers: 696 (10.34% conversion rate 2) Social Media Facebook 711 followers Instagram 110 followers Twitter 199 followers Impressions: Facebook 1,250,000 Twitter 493,000 2. If an event, list the event name, date(s), and projected overall attendance. N/A 3. Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? The campaign focuses on both. SavingLocalKC.com features business deals from a variety of businesses, including three hotels. 4. Describe why visitors will travel to Tukwila to attend your event/activity/facility. Prior to the pandemic nearly 150,000 people came to Tukwila to work, play, stay shop, and dine. Tukwila is centrally located and is home to the largest mall in the Pacific NW, 200 restaurants, nearly 2,000 hotel rooms, and nearly a dozen entertainment establishments. 2 Offers are maintained on the sites of businesses providing deals. Conversion for this campaign is defined as someone who click through savinglocalkc.com to an offer on the businesses' website. Page 3 of 8 . • People need something to look forward to once the Say Home Order is lifted. This campaign will lift peoples spirts and allow us to recapture our market share once the Stay Home, Stay Healthy Order is lifted. SavingLocalKC includes businesses outside of Tukwila. This was done to elevate the campaign's reach, with the idea being the greater number of businesses and the large geographic reach would expand consumer interest. Tukwila businesses have been receiving more social media mentions than non - Tukwila businesses. Once the campaign concludes the City will use the audience captured in the campaign to promote Tukwila only businesses. This campaign provides the City a unique opportunity to build a regional customer base and expand Tukwila's market reach. 5. Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Generally, within one -hour drive of King County. 6. Describe the prior success of your event/activity/facility in attracting tourists. Since launch the campaign has had success. Over 6,700 people have visited the website, with 15% of people returning to the website. The site's conversion rate is just over 10%, which is considered a high conversion rate. 7. If this your first time holding the event/activity/facility provide background on why you think it will be successful. This a continuation of an existing marketing campaign. The funds requested will get the campaign through the end of the year. 8. Describe the media strategy you employ to promote your event/activity/facility to attract overnight and/or day tourists? Please list any digital or print media (newsletters, e-blasts, social media, etc.) your agency uses or intends to use to promote your event/activity/facility. The campaign after launch includes a website, developed with SEO in mind, social media, paid social media, and an earned media push. SavingLocalKC has also utilized third party support with information on the campaign published by Chambers of Commerce and other third parties. SavingLocalKC.com will continue to build off the strategies used at launch, but will also add these new elements: • Reposition the overall social media push focusing on establishing an emotional connection with customers. Shifts focus on the "what" to the "why." • Additional paid social. • Possible third -party ads. • Video creation. Page 4 of 8 50 • Additional Paid Search. • Enhanced SEO. • Email Marketing. 9. Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. Any consumer facing business in Tukwila can participate. It is completely free. Participating businesses get promoted via social media posts. While the campaign features businesses throughout King County, Tukwila businesses have received additional posts highlighting their participations. Tukwila businesses will likely be featured in future promotional videos for the campaign. 10. Is the City able to use your digital and print media for collaborative marketing? Yes. 11. Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? The campaign's overall brand is focused on King County. SavingLocalKC identified all Tukwila businesses as being in the City. Additionally, social media posts regarding Tukwila businesses tag all Tukwila businesses with @ExperienceTukwila. The about page states SavingLocalKC is powered by the City of Tukwila. As a result of the campaign, the City has received goodwill from Chambers of Commerce and participating businesses throughout the County for the City's leadership. 12. Measurements and Metrics (Note: You will be required to report these metrics as part of the close out of the agreement between your organization and the City.) As a direct result of your proposed tourism -related service, provide an estimate of: Initial Application Revised (April, 2020). a. Overall attendance at your proposed 2.1 million 5.0 million event/activity/facility. impressions. impressions. 12,500 webpage visits 20,000 webpage visits 8,500 followers 15,000 followers b. Number of people who will travel fewer than 50 90% 90% miles for your event/activity. Page 5 of 8 51 c. Number of people who will travel more than 50 10% 10% miles for your event/activity. d. Of the people who travel more than 50 miles, the Less than 10% Less than number of people who will travel from another 10% country or state. e. Of the people who travel more than 50 miles, the Less than 3% Less than number of people who will stay overnight in 3% Tukwila. f. Of the people staying overnight, the number of 100 100 people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. g. Number of paid lodging room nights resulting 200 200 from your proposed event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) 13. What methodologies did you use to calculate the estimates and what methodologies will you use to track outcomes, such as total participants, estimated visitor spending, etc.? These are rough estimates based on educated guesses by staff and our marketing agency. 14. Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? Not directly. We have requested sponsorship funds from other cities, which could include lodging tax funds, Port funds, or Cares funds. The City also will redirection a portion of an existing Port Grant to the SavingLocalKC costs. 15. Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? No. 16. What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? In April LTAC approved $50,000 in funding. Initial Costs to Date were for building out the website, creating digital assets, an earned media campaign, and paid social medial posts. The City contributed Page 6 of 8 52 additional lodging tax funds from the General Operations application, which includes a small amount of funds for marketing and professional services. The following outlines the estimated costs mid -May through the end of the year. Saving Local, Estimated Costs Through Mid -May through December Ongoing Costs Cost Website Maint. $ 13,000 Social Media Post Management $ 19,500 Project Management and Reporting $ 6,500 Social Media Ad Spend (including management fee) $ 22,000 Video Production Costs $ 10,000 Google Search Monthly (Including management fee) $ 1,200 Third Party Ad Buys (including management fee) $ 15,000 Email Marketing $ 2,500 Subtotal: $ 89,700 Contingency (10%) $ 8,970 Ongoing Costs Total: $ 98,670 One Time Costs Cost Strategic Development $ 3,000 Google Search Set Up $ 1,000 Social Media Ad Creation $ 3,000 Email Marketing Setup $ 1,000 One Time Cost Total: $ 8,000 Grand Total: $ 106,670 LESS Port of Seattle Grant $ (2,500) Total Lodging Tax Request: (Funds may be moved between categories) $ 104,170 Note, funds may be moved between categories, but will not go above the total awarded. Additionally, this is not intended to be the total campaign total. Additional funds may be added from the City's approved General Operation's lodging tax budget or non-LTAC funds. Funds from a Port grant will also be contributed to the campaign. Page 7 of 8 53 17. What will you cut from your proposal or do differently if full funding for your request is not available or recommended? We would reduce the campaign accordingly. At a minimum we need to be able to keep the website update with timely business information. Applications are considered on a rolling basis. Please contact staff to discuss the process for having the application reviewed by the City's Lodging Tax Advisory Committee. Completed applications should be submitted to: Lodging Tax Advisory Committee c/o Brandon Miles City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 MR Brandon.Miles@TukwiIawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Miles@Tukwilawa.gov. Updated: December 17, 2019 Page 8 of 8 54 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: April 15, 2020 SUBJECT: 2020 Lodging Tax Funding Requests City of Tukwila: Pandemic Response, Back to Business Campaign ISSUE Review of a lodging tax funding request from City of Tukwila in the amount of $25,000. BACKGROUND The City collects a 1 % lodging tax on certain qualifying overnight stays in paid accommodations (hotels/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'. There is currently just over $1 million in lodging tax funds available for use. The City's Lodging Tax Advisory Committee (LTAC) reviews all requests, even by the City, for use of lodging tax funds. LTAC then forwards a list of recommended applications to the City Council for its review and consideration. If LTAC does not recommend an application be funded, that application is not forwarded to the City Council. The City Council may approve or deny any of the applications recommended by the LTAC. The City Council may also approve an application and increase or decrease the dollar amount awarded2. The City accepts applications on a rolling basis, with the LTAC reviewing requests monthly. Pending Applications LTAC is scheduled to meet the week of April 13 to consider the request below. Staff will provide an update on LTAC's recommendation following its meeting. 1. City of Tukwila (VS), ($25, 000 1 RCW 67.28.080 (6) defines "tourism promotion" as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists." z On August 17, 2016, the Washington State Attorney General's Office issued an informal opinion regarding whether a municipality could change the dollar amounts recommended by the local lodging tax advisory committee. Specifically, the informal opinion states: "When awarding lodging tax revenues pursuant to RCW 67.28.1816(2)(b)(ii), a municipality may award amounts different from the local lodging tax advisory committee's recommended amounts, but only after satisfying the procedural requirements of RCW 67.28.1817(2), according to which the municipality must submit its proposed change to the advisory committee for review and comment at least forty five days before final action on the proposal." 55 INFORMATIONAL MEMO Page 2 Tukwila relies on visitors to the City for a significant amount of its operating revenue. Prior to the pandemic it was estimated that 150,000 people visited the City everyday to work, play, stay, shop, and dine. As a result of the pandemic all entertainment businesses are closed, Westfield Southcenter has shut its doors, and restaurants can only offer takeout/delivery. Economic Development staff has been looking for ways to support consumer facing businesses during the pandemic and to help them quickly recovery once the Stay Home Order is lifted. The first campaign was the "Great Tukwila Carryout," which promoted restaurants in the City that were offering takeout/delivery. The next campaign is more ambitious, and staff hopes that it helps the City consumer facing businesses that are not operating. The "Back to Business (working name only)" will promote the purchase of deals and gift card by consumer of closed businesses. The idea to help inspire people that this to will past and to help generate cash flow for closed businesses. The campaign will work as follows: • Consumer facing businesses are asked to provide a deal, something that people can purchase now. It is free for Tukwila businesses to participate. Because it would increase the reach of the campaign, non -Tukwila businesses in King County could also participate. Staff is still working on how this work. Ideally other cities will come on as sponsors for the campaign. • A campaign will be developed with its own brand, consistent with the overall Tukwila brand. • A microsite, with a domain name consistent with the brand, will be set up to promote the deals. The actual transaction will occur on the businesses' website, not the City's. Our goal is to have 12,500 unique visitors to the webpage within one month. • Social media channels will be set up to promote the campaign. Our goal is to have 8,500 followers within one month. • Public relations campaign to generate earned media. • While it's free for Tukwila businesses to participate, the businesses will be asked to promote the campaign through their digital channels. The following are the immediate goals of the campaign: • Help to drive businesses to Tukwila hotels, restaurants, and entertainment establishments. Help with the overall rebound of the Tukwila tourism economy once the Stay Home Order is lifted. • Improve the overall brand perception of Tukwila in the overall Puget Sound region. • Establish Tukwila as a leader in the hospitality industry recovery. • Build relationships with businesses in Tukwila and businesses outside of Tukwila. Businesses outside of Tukwila may eventually be interested in opening additional locations in the City. This campaign will also have long term benefits to the City: 1. It will allow the City to develop social media channels that can be transitioned to promoting the Tukwila tourism brand once the pandemic has ended. 2. It will help to reinforce Tukwila as a tourism designation in the Greater Seattle area. 56 INFORMATIONAL MEMO Page 3 FINANCIAL IMPACT The total cost for this campaign is $40,000. Staff utilized $15,000 in funding from the City's general operation's lodging tax application to begin getting the campaign developed. Staff is requesting an additional $25,000 in lodging tax funds for digital marketing, project management by the marketing firm to manage the digital marketing, and for any additional costs that might arise. RECOMMENDATION Staff recommends that the City Council approve the funding request, as recommended by LTAC. Staff has placed this on the April 20 regular agenda (same night at P.E.D meeting). ATTACHMENTS A. City of Tukwila: COVID19 Response, Back to Business Initiative application materials. 57 w PRESS RELEASE For Immediate Release: Thursday, May 14, 2020 Contact: Brandon Miles, Business Relations Manager, City of Tukwila, (206) 731-9071, brandon.miles@tukwilawa.gov UPDATE: SAVING LOCAL SEES THOUSANDS OF POTENTIAL CUSTOMERS, ADDS MORE PARTICIPATING BUSINESSES The "Saving Local" marketing campaign promotes deal offers by businesses impacted by the novel coronavirus pandemic More than 7,000 reviews of campaign website featuring deal offers, now including 25 businesses KING COUNTY 0 Today the City of Tukwila, City of Kent, Seattle Metropolitan Chamber, Seattle Southside Chamber of Commerce, Kent Chamber of Commerce, Renton Chamber of Commerce, West Seattle Chamber of Commerce, Columbia City Business Association, South Lake Union Chamber of Commerce, Greater Issaquah Chamber of Commerce, OneRedmond and GSBA released an update on Saving Local, an effort to help support businesses operating in King County as Washington State continues to follow Governor Insleel� emergency orders to protect public health and safety. Since its launch last week, the local campaign has seen more than 7,000 reviews of its Saving Local website of deal offers, with several hundred potential customers visiting the websites of participating individual businesses to learn more about a specific offer. Saving Local has already grown to now feature 25 businesses in King County offering deal offers, with the Museum of Flight, AgWashingtonWeb, Allegro Performing Arts Academy, Anytime Fitness, Bowlero, Customized Tours, iFly, Diecutstickers.com, Dong Thap Noodles, Outpatient Physical Therapy, Sykart, Burien Actors Theatre, Divalani, A Masquerade Costume and True Nature Hypnotherapy all joining the campaign since its launch last week. Other participating businesses include Brow Arc Salon, DEFY, DoubleTree Southcenter, Famous Dave[ BBQ, Kent Eye Clinic, RAVE Foundation, Safari, Seattle Chocolate Company, Seattle Seawolves, and The Old Spaghetti Factory. The new marketing program 0 SavingLocalKC.com 0 is sponsored by the City of Tukwila and helps gather and highlight deal offers by entertainment, restaurant, retail, event and other business -types severely affected by public health guidelines during the pandemic. The program is in its early stages and intends to grow in funding and include other cities in King County as it joins ongoing efforts to support all those who rely on businesses for economic security. Companies of all sizes operating in King County are eligible to be included in the marketing campaign. There is no fee for businesses in King County to participate. Saving LocalKC.com 59 PRESS RELEASE Saving Local at its outset is funded exclusively with the City of Tukwilal�; Lodging Tax (tourism) dollars which in accordance with state law may only be used to promote tourism activities and cannot be allocated to the General Fund. The initial allocation of funding to launch Saving Local is $50,000. 0We are so grateful for the outpouring of support from our local community during this crisis,D said Jean Thompson, Owner and CEO of Seattle Chocolate Company. DWe know that no one is safe from the impacts of the COVID-19 crisis 0 whether it be concern for the health of loved ones, uncertainty over how to pay rent or struggling to make payroll. That's why we welcome creative efforts like Saving Local to add to the toolbox for our communities to help business and economic security now, in the challenging days ahead as we all battle this pandemic and in the future so we may all continue to thrive. I hope that families and community members will find deal offers using this tool that are both a good fit for them and a great way to support the local economy." A new website serves as the central resource for residents looking to take advantage of deal offers from businesses. Customers may use the Saving Local website like a catalogue to browse deal offers, and after finding one they would like to take advantage of they will be redirected to the participating business website to make the purchase. The effort is being promoted in a modest social media campaign to local residents to help promote local and inclusive economic activity. DThe novel coronavirus pandemic has challenged our entire community, and we must all stand together as we work to get through these unprecedented times,D said De Sean Quinn, Tukwila City Council President. 0We are so proud to see people coming together in creative ways to do what they can to help, often as they deal with their own individual uncertain circumstances. That[ why we worked to launch this marketing campaign to help businesses that we are rooting for not only to weather this crisis, but to thrive for years to come. I want to thank the various local Chambers of Commerce that partnered with the City on this campaign.0 As part of the development of Saving Local, it was determined that the campaignI biggest impact would come from expanding it outside of just the City of Tukwila. The City of Tukwila reached out to cities and local Chambers of Commerce within King County to invite them and their members to participate. DSmall, local Chambers of Commerce are on the front lines of helping to serve our community during this crisis, and the needs outpace capacity,0 said Andrea Reay, President/CEO of the Seattle Southside Chamber of Commerce. "We appreciate the City of Tukwila leading the countywide effort to support businesses as part of the Saving Local Campaign. The only way through the pandemic and its economic disruptions is with partnership, creativity, and realizing that impacts do not stop at city Iimits.D Examples of deal offers that may be seen on the Saving Local website include discounts on gift cards, reduced rates to purchase a future DexperienceD at a currently closed or limited -availability location and delivery services. Saving Local KC.com PRESS RELEASE Saving Local Saving Local is a local marketing program funded by tourism activity tax dollars and was created during the novel coronavirus pandemic to help support local businesses adversely challenged by necessary public health guidelines in place to support the safety of all residents. The program helps promote deal offers by local businesses and includes a website and social media advertising campaign. There is no cost to businesses to participate and while the program was launched by the City of Tukwila, it intends to grow in geographic scope in order to support the economic security of as many Washington residents as possible during the deep disruption of community, business and public health caused by COVID-19. Saving Local KC.com 61 62 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: June 9, 2020 SUBJECT: June Lodging Tax Advisory Committee Meeting Update ISSUE Update on the June 12 Lodging Tax Advisory Committee (LTAC) meeting. BACKGROUND The City's LTAC held is regularly scheduled meeting on June 12. On the agenda items were four funding requests. This memo is being written prior to the June 12 meeting and prior to the agenda deadline for LTAC. Thus, information is this memo is subject to change. The following briefly outlines the funding requests submitted to LTAC. 1. SavingLocalKC.com The City is requesting an additional $104,170 in lodging tax funds to expand and keep operating the SavingLocalKC campaign. This item has been scheduled to go to before PED at its June 15 meeting, see the information provided under this agenda items for more information. 2. Seattle Southside Regional Tourism Authority (SSRTA) SSRTA is requesting an additional $195,000 in emergency funding in response to the COVID- 19 pandemic. The funding will be used to help bring meetings back to the Seattle Southside Region. SSRTA has already been awarded $202,500 in funds from the City to support its general operations. 3. Experience Tukwila The City is requesting $75,250 to continue to build out and expand the Experience Tukwila digital marketing initiative. Currently the initiative contains limited social media platforms. As part of the future buildout, the City will develop a dedicated website to promote the City to visitors and for business attraction; launch a Linkedln page, continue to expand social media engagement; launch email marketing; and content creation. 4. Seattle Southside Chamber of Commerce The Chamber is requesting $50,000 to help with its COVID-19 recovery efforts and Southside Promise campaign. The funds will be used to help businesses reopen in compliance with various directives from the State of Washington. More importantly, the funds will be used to help promote business reopenings to the public and to help the public understand what efforts are being made to keep them safe. 63 INFORMATIONAL MEMO Page 2 DISCUSSION Because SavingLocalKC is already up and running and additional funds are needed to keep it operating, staff has placed it on tonight's PED meeting for action. The other three items listed above will come to PED at its July 6 meeting for action. This assumes that the LTAC has forwarded them for final action. FINANCIAL IMPACT At this time none. This item is being provided for information only and no final action is being requested. RECOMMENDATION Discussion Only. ATTACHMENTS • None. 64 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED, June 15, LTAC Update/LTAC Update, PED, June 15.doc City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development Committee FROM: Derek Speck, Economic Development Administrator CC: Mayor Ekberg DATE: June 9, 2020 SUBJECT: Business Recovery Update: Grants ISSUE This item is intended for discussion of grants related to business recovery including potential uses and applications for additional grants. BACKGROUND Currently, the City anticipates receiving two grants that are intended to be used, or can be used, for business recovery from COVID-19. In February 2020 the Planning and Economic Development Committee application for a $20,930 grant from the Port of Seattle for economic development. At that time, the application was intended to include: a residential component into a digital media program to grow tourism; development attraction, and the Kent Valley WA business attraction website. Staff would like to revise the application to focus more on business recovery. The City of Tukwila anticipates receiving $33,000 from King County for business recovery. We expect to receive information on criteria and eligible uses within the next few weeks. There are a few additional grant opportunities the City could explore for business recovery. 1. Some cities are able to use Community Development Block Grant (CDBG) funds for economic development and business recovery. For example, the City of Seattle used CDBG funds for small business grants. The federal government is distributing additional CDBG funds due to COVID-19. Tukwila does not receive a direct CDBG allocation but could apply on its own or with other cities. 2. The City will be receiving $627,900 from the CARES Act through the Department of Commerce. The funds can be used to cover city expenditures related to COVID-19 response, providing economic support to those suffering from unemployment and/or providing economic support to business interruptions. 3. The US Economic Development Administration (EDA) will be distributing $1.5 billion from the CARES Act for economic development recovery assistance. Of that funding, the Seattle office (which includes the seven westernmost states) will receive $266 million for distribution. The application process is competitive and requires a local match of 0% to 20%. Applications are accepted on a rolling basis with final approvals by September 65 INFORMATIONAL MEMO Page 2 30, 2020. Funds need to be spent by September 30, 2022. Individual awards are anticipated to range from $100,000 to $30 million. One of the key eligibility criteria is to show how the proposed project would "prevent, prepare for, and respond to coronavirus" or respond to "economic injury as a result of coronavirus". Examples of projects that may be funded through this program include economic recovery planning and preparing technical strategies to address economic dislocations caused by the coronavirus pandemic, preparing or updating resilience plans to respond to future pandemics, implementing entrepreneurial support programs to diversify economies, and constructing public works and facilities that will support economic recovery, including the deployment of broadband for purposes including supporting telehealth and remote learning for job skills. An addendum from the Federal Notice of Funding Opportunity is attached. DISCUSSION Following are some examples of possible uses of the grant funds for business recovery: 1. Technical assistance to businesses (understanding current programs, applying for loans, marketing plans, business plans, export assistance, city permits, etc.) 2. Translation and interpretation assistance for businesses 3. Marketing and promotion 4. Employee training 5. Workforce development 6. Recruitment 7. Grants 8. Loans 9. City infrastructure and services (sidewalks, internet, public parking, beautification, etc.) A key question will be what criteria and process the City would use for selecting businesses to receive recovery support such as technical assistance, grants, loans, etc. Federal grant applications, such as for CDBG or the CARES Act EDA funding, can be time intensive to apply. To be competitive, those applications need to have a high probability of acceptance and success for the intended businesses. The residents in South King County, including Tukwila, have been significantly affected by COVID-19 and perhaps more than in other parts of the County. As such, our small businesses may also be impacted more and the importance of equity may help the City's application. FINANCIAL IMPACT No budget changes are requested at this time. RECOMMENDATION Information and discussion only. ATTACHMENTS Addendum to EDA CARES Act grant notice of funding opportunity 66 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED 2020-6-15 Infomemo.doc Addendum to the FY 2020 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity (FY20 PWEAA NOFO) for the Economic Development Administration's (EDA)'s Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Recovery Assistance EDA's CARES Act Recovery Assistance is an agency effort to assist communities impacted by the coronavirus pandemic,l The pandemic has caused, and will continue to cause, economic injury to U.S. regions and communities in devastating and unprecedented ways. EDA's CARES Act Recovery Assistance is designed to provide a wide -range of financial assistance to communities and regions as they respond to, and recover from, the impacts of the coronavirus pandemic. Under this announcement, EDA solicits applications under the authority of its Economic Adjustment Assistance (EAA) program, which is intended to be flexible and responsive to the economic development needs and priorities of local and regional stakeholders. Through the EAA program, EDA provides investments that support a wide range of non -construction and construction activities, including Revolving Loan Funds, in regions experiencing severe economic dislocations, such as those brought about by the coronavirus pandemic. As part of CARES Act Recovery Assistance, EDA will also fund projects that qualify for EAA funding but are similar to the kinds of projects funded under other EDA programs, such as Public Works, Research and National Technical Assistance, Planning, Local Technical Assistance, University Centers, and Build to Scale (formerly Regional Innovation Strategies (RIS)).2 In addition to projects with a regional focus, EDA anticipates making awards for projects of national scope as part of this funding opportunity. In general, except as discussed below, EDA's CARES Act Recovery Assistance serves as an addendum to and follows the same rules as the FY 2020 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity (FY20 PWEAA NOFO) (link below). For more information, please see EDA's website at https://www.eda. zov/programs/eda-pro-rg ams/ or contact the EDA representative for your region who can be found at https://www.eda.gov/contact/. Funding Availability The CARES Act (P.L. 116-136) provided EDA with $1,500,000,000, to remain available until September 30, 2022, to "prevent, prepare for, and respond to coronavirus, ... including for necessary expenses for responding to economic injury as a result of coronavirus." EDA intends to make these funds available through the EAA program using the existing procedures specified in the FY20 PWEAA NOFO (link below).3 Under the EDA's CARES Act Recovery Assistance addendum, EDA expects on a case - by -case basis to receive applications that exceed the historical averages described in section B.1 of the FY20 PWEAA NOFO. 1 Section 23005 of the CARES Act, Pub. L. 116-136 (March 27, 2020), defines "coronavirus" as "SARS—CoV-2 or another coronavirus with pandemic potential." 2 Only applicants who are eligible to receive funding under the Economic Adjustment Assistance program are eligible to receive grants under EDA's CARES Act Recovery Assistance. EDA will work to ensure that its funding is not duplicative of other Federal assistance through grant conditions and certifications by applicants as well as recipients of RLF loans. s To expedite funding to affected communities and regions, EDA may invite existing or past grantees, such as Economic Development Districts currently in receipt of Partnership Planning awards, operators of existing EDA-funded Revolving Loan Funds, and EDA-funded University Centers, to apply using specific procedures. EDA will independently contact such grantees with instructions. 1 67 EDA has allocated $1,467,000,0004 in supplemental program funds among its offices as follows: Atlanta Regional Office — $248,000,000 Austin Regional Office — $236,000,000 Chicago Regional Office — $225,000,000 Denver Regional Office — $193,000,000 Philadelphia Regional Office — $259,000,000 Seattle Regional Office — $266,000,000 Headquarters — $40,000,000 Note: When appropriate, EDA may exercise its discretion to adiust the allocations to its offices based on its experience in administering the supplemental appropriations to ensure funds are used to maximum effect, or to adjust to unforeseen changes in recovery efforts. Eligible Applicants Eligible applicants under the EAA program include a(n): a. District Organization; b. Indian Tribe or a consortium of Indian Tribes; C. State, county, city, or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of political subdivisions; d. Institution of higher education or a consortium of institutions of higher education; or e. Public or private non-profit organization or association acting in cooperation with officials of a political subdivision of a State. EAA Program and Application Requirements for EDA's CARES Act Recovery Assistance The following EAA program requirements are specific to EDA's CARES Act Recovery Assistance. This is an addendum to the FY20 PWEAA NOFO (link below), and unless otherwise stated below, the requirements of the FY20 PWEAA NOFO apply. Please see the FY20 PWEAA NOFO for information on other EAA program requirements, award information, and the content and form of application submissions. CARES Act Recovery Assistance Projects Successful applications will enable affected communities to respond to the impacts of the coronavirus pandemic by supporting affected businesses and communities, including by providing technical assistance to retain existing and hire new employees; by providing a range of skills -training and workforce development projects to help employees compete for high -quality jobs; and by developing and implementing strategies to diversify regional economies to create jobs in new or existing industries. EAA investments are designed to help communities catalyze public -private partnerships to foster collaboration, attract investment, create jobs, and foster economic resiliency and prosperity. Examples of projects that may be funded through CARES Act Recovery Assistance include economic recovery planning and preparing technical strategies to address economic dislocations caused by the coronavirus pandemic, 4 Congress authorized up to $30,000,000 to cover EDA's administrative and oversight activities related to these awards and a transfer of $3,000,000 to the Department of Commerce's Office of the Inspector General for related investigations and audits. preparing or updating resiliency plans to respond to future pandemics, implementing entrepreneurial support programs to diversify economies, and constructing public works and facilities that will support economic recovery, including the deployment of broadband for purposes including supporting telehealth and remote learning for job skills. Economic Distress Criteria and Special Need; Pandemic Response Requirement Section C.3. of the FY20 PWEAA NOFO (starting on pg. 13) sets out the economic distress criteria for the EAA program, including "Special Need" criteria. EDA has determined that economic injury from the coronavirus pandemic constitutes a "Special Need," and eligibility may be established on that basis without reference to the other economic distress criteria specified in the FY20 PWEAA NOFO. This determination of nationwide eligibility for these funds is consistent with the President's March 13, 2020 Proclamation on Declariniz a National Emerzency Concerninz the Novel Coronavirus Disease (COVID- 19) Outbreak that established a national emergency for all states, tribes, territories, local governments, and the District of Columbia (hiips://www.fema.gov/news-release/2020/03/13/covid-19-emergency declaration). To be eligible for funding under EDA's CARES Act Recovery Assistance, applicants must explain clearly in their application how the proposed project would "prevent, prepare for, and respond to coronavirus" or respond to "economic injury as a result of coronavirus." This explanation is required to assist reviewers in understanding how a proposed project aligns with the goals of EDA's CARES Act Recovery Assistance. For example, if Smith County has experienced significant small business closures as a result of the pandemic, Smith County must demonstrate how the project addresses small business recovery and resilience priorities and objectives established under a Comprehensive Economic Development Strategy (CEDS) or other strategy acceptable to EDA (see below for information on strategy requirements). Projects that consider economic recovery in general must address the direct consequences of the coronavirus pandemic itself and how the project will contribute the community's' recovery and resiliency. The extent to which a proposed project responds to needs caused by the coronavirus pandemic is one factor that EDA will consider when evaluating applications for funding. Cost Sharing or Matching Section C.2. of the FY20 PWEAA NOFO (starting on pg. 11) sets out the cost sharing requirements for EDA projects. For EDA's CARES Act Recovery Assistance, given the extent of the economic impact and in accordance with the agency's statutory authority under Section 703 of the Public Works and Economic Development Act of 1965 (PWEDA) (42 U.S.C. § 3233), EDA generally expects to fund at least 80%, and up to 100%, of eligible project costs. In determining whether to fund a project's Federal share above 80%, EDA's Grants Officers in the applicable Regional Office will consider on a case -by -case basis whether the circumstances of the proposed project warrant a Federal share in excess of 80%, including whether the applicant has exhausted its effective taxing or borrowing capacity, the extent of the impact of the coronavirus pandemic on the region, or whether the region meets other thresholds for elevated need based on the relative economic distress of the region. Additionally, EDA may establish a maximum investment rate of up to 100% for projects of Indian Tribes. Any portion of the costs for the EDA scope of work funded below 100% must be borne by the recipient or provided to the recipient by a third party as a contribution for the purposes of and subject to the terms of the award. The applicant is responsible for demonstrating to EDA that a grant rate above 80% is justified by providing statistics and other appropriate information on the nature and level of economic distress in the We region, including information regarding other recovery -related needs facing the region and the level of resources available to address those needs. Comprehensive Economic Development Strategy CEDSLquirements Except for a "Strategy Grant" to develop, update, or refine a CEDS, each project must be consistent with the region's current CEDS or equivalent EDA-accepted regional economic development strategy that meets EDA's CEDS or strategy requirements. Please see Section A.3. of the FY20 PWEAA NOFO (starting on pg. 5) for more information on CEDS requirements. In addition, in accordance with 13 CFR § 303.7(c)(1), in certain circumstances EDA may accept a non-EDA-funded CEDS that does not contain all the elements EDA requires of a CEDS.S Application Information, Review and Selection Process, and Link to FY20 PWEAA NOFO Applications are accepted on a rolling basis. Unless otherwise directed by EDA, all applicants for CARES Act Recovery Assistance must follow instructions included within the FY20 PWEAA NOFO, which can be found on: hops://www.grants.gov/web/grants/view-opportuni ..h� tml?oppId=321695. As necessary, each EDA Regional Office will periodically convene investment review committees (IRCs) that consist of at least three EDA staff members. After EDA determines an application is complete, it will be reviewed by the IRC, which will make a recommendation to the Grants Officer regarding funding.6 Along with other controlling law, EDA's CARES Act Recovery Assistance awards will be governed by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements as set forth in 2 C.F.R. part 200. For additional information, please contact the EDA representative for your region who can be found at https://www.eda.gov/contact/. Applicants should note that the Office of Management and Budget (OMB) has provided flexibility with respect to System of Award Management (SAM) registration at the time of application; however, at the time of award, the requirements of 2 C.F.R. § 200.205, Federal awarding agency review of risk posed by applicants, will continue to apply, including the requirement for SAM registration. In addition, current registrants in SAM with active registrations that expire before May 16, 2020 will be afforded an automatic one-time extension of 60 days. Instructions for Applicants: - Download the FY20 PWEAA Notice of Funding Opportunity (NOFO) and application package from h!Ws://www. rg ants.gov/web/grants/view-opportuni , .ht�ppId=321695. - In Form ED-900, section B.3.b., include a description of the economic impacts in the region from the coronavirus pandemic and describe how the proposed project scope of work will respond to those impacts and support pandemic recovery and resilience efforts. Applicants may also provide a separate narrative statement, not to exceed one page in length, of the economic impacts in the region from the coronavirus pandemic and how the proposed project scope of work responds to those impacts. - Additionally, in Form ED-900, section B.6, explain how the proposed project would meet EDA's Recovery and Resilience investment priority, which all CARES Act Recovery Assistance projects are expected to meet. You may also explain in this space how the proposed projects will meet any of EDA's other investment priorities. 5 In doing so, EDA shall consider the circumstances surrounding the application for Investment Assistance, including emergencies or natural disasters and the fulfillment of the requirements of section 302 of PWEDA. 6 See 13 C.F.R. § 302.2 ("When non -statutory EDA administrative or procedural conditions for Investment Assistance awards under PWEDA cannot be met by an Eligible Applicant as the result of a disaster, EDA may waive such conditions."). 4 70