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Home My WebLink AboutCOW 2024-03-25 COMPLETE AGENDA PACKET�I O LA w Tukwila City Council Agenda J 4s .• COMMITTEE OF THE WHOLE .• 10 1905 Thomas McLeod, Mayor Councilmembers: ❖ De'Sean Quinn ❖ Tosh Sharp MartyWine, Interim City Administrator ❖ Armen Papyan ❖ Jovita McConnell Mohamed Abdi, Council President ❖ Dennis Martinez ❖ Hannah Hedrick ON -SITE PRESENCE: TUKWILA CITY HALL COUNCIL CHAMBERS REMOTE PARTICIPATION FOR THE PUBLIC: 1-253-292-9750, AccEss CODE: 670077847# Click here to: Join Microsoft Teams Meeting 6200 SOUTHCENTER BOULEVARD For Technical Support: 1-206-433-7155 Monday, March 25, 2024; 7:00 PM • Ord #2728 • Res #2092 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. LAND ACKNOWLEDGEMENT The City of Tukwila is located on the ancestral lands of the Coast Salish people. We acknowledge their continuing connections to land, waters and culture. We pay our respects to their elders past, present and emerging. 3. PUBLIC COMMENTS including comment on items both on and not on the meeting agenda Those wishing to provide public comments may verbally address the City Council both on -site at Tukwila City Hall or via phone or Microsoft Teams for up to 5 minutes for items both on and not on the meeting agenda. To provide comment via phone or Microsoft Teams, please email citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the meeting date. Please clearly indicate that your message is for public comment during the meeting, and you will receive further instructions. 4. SPECIAL ISSUES a. A resolution authorizing South King Housing and Homelessness Partners (SKHHP) Housing Projects using funds contributed by the City to the Housing Capital Fund. b. Public Records Request mitigation and staffing request. > Rescheduled from 3/11/24 Committee of the Whole 4 c. 2025 — 2026 Biennial Budget Development kick-off. Pg.1 Pg,37 Pg.45 5. REPORTS a. Mayor b. City Council c. Staff 6. MISCELLANEOUS 7. EXECUTIVE SESSION Pending Litigation — Pursuant to RCW 42.30.110.(1)(i) (30 minutes) NO Action will follow in the open meeting. 8. ADJOURNMENT ❖ CLOSED SESSION ❖ Collective Bargaining — Pursuant to RCW 42.30.140(4)(b) Location: Hazelnut Conference Room (CR #3) This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. RemoteTukwila Council meetings are audio taped (and video taped as of 9/14/20). Available at www.tukwilawa.gov) raw- If you are in need of translation or interpretation services at a Council meeting, Milli please contact us at 206-433-1800 by 12:00 p.m. on the meeting date. WELCOME TO THE TUKWILA CITY COUNCIL MEETING The Tukwila City Council encourages community participation in the local government process and welcomes attendance and public comment at its meetings. MEETING SCHEDULE Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes formal action in the form of motions, resolutions and ordinances at Regular Meetings. Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The City Council considers current issues, discusses policy matters in detail, and coordinates the work of the Council at Committee of the Whole meetings. PUBLIC COMMENTS Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on and not on the meeting agenda during Public Comments. The City Council will also accept comments on an agenda item when the item is presented in the agenda, but speakers are limited to commenting once per item each meeting. When recognized by the Presiding Officer, please go to the podium if on -site or turn on your microphone if attending virtually and state your name clearly for the record. The City Council appreciates hearing from you but may not respond or answer questions during the meeting. Members of the City Council or City staff may follow up with you following the meeting. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. The City Council Rules of Procedure provide the following guidelines for Public Hearings: 1. City staff will provide a report summarizing and providing context to the issue at hand. 2. City staff shall speak first and be allowed 15 minutes to make a presentation. 3. The applicant is then allowed 15 minutes to make a presentation. 4. Each side is then allowed 5 minutes for rebuttal. 5. After City staff and the applicant have used their speaking time, the Council may ask further clarifying questions of the speakers. 6. Members of the public who wish to address the Council on the hearing topic may speak for 5 minutes each. 7. Speakers are asked to sign in on forms provided by the City Clerk. 8. The Council may ask clarifying questions of speakers and the speakers may respond. 9. Speakers should address their comments to the City Council. 10. If a large number of people wish to speak to the issue, the Council may limit the total amount of comment time dedicated to the Public Hearing. 11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the issue is open for Councilmember discussion. 12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as set forth by RCW 42.30.100. For more information about the City Council, including its complete Rules of Procedure, please visit: https://www.tukwilawa.gov/departments/city-council/ COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 3/25/24 LH ITEM INFORMATION ITEM No. 4.A. STAFF SPONSOR: LAUREL HUMPHREY ORIGINAI. AGENDA DATE: 3/25/24 AGENDA ITEM TITLE Resolution authorizing allocation from SKHHP Housing Capital Fund. CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date ® Resolution Mtg Date 3/25/24 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ® Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY The proposed resolution authorizes the allocation of $15,402.00 from the city's existing contributions to the South King Housing & Homelessness Partners (SKHHP) Housing Capital Fund. REVIEWED BY 0 Trans&Infrastructure Svcs 0 Community Svcs/Safety 0 Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. DATE: COMMITTEE CHAIR: ❑ Planning Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMIT ILE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $15,402 Fund Source: HB 1406 REVENUE Comments: AMOUNT BUDGETED $15,402 APPROPRIATION REQUIRED $ MTG. DATE RECORD OF COUNCIL ACTION 3/25/24 4/1/24 MTG. DATE ATTACHMENTS 3/25/24 Information Memo Presentation Draft resolution 4/1/24 1 2 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Claire Goodwin, Executive Manager, SKHHP Laurel Humphrey, Legislative Analyst DATE: March 19, 2024 SUBJECT: Resolution authorizing allocation from SKHHP Housing Capital Fund ISSUE The proposed resolution authorizes the allocation of $15,402.00 from the City's existing contributions to the South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund to finance affordable housing projects. SUMMARY SKHHP was created in 2019 through an interlocal agreement of several cities and King County to address housing needs in South King County. There are currently 11 member jurisdictions: Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, Tukwila, and King County. Mayor McLeod serves as Tukwila's representative on the SKHHP Executive Board, with Councilmember Martinez serving as alternate. Housing Capital Fund In 2019, RCW 82.14.540 (SHB 1406) became law allowing jurisdictions to enact a local sales and use tax for the purpose of supporting affordable housing. In 2021, eight of the nine SKHHP member cities entered into a second interlocal agreement for purposes of pooling sales tax receipts authorized by RCW 82.14.540 with SKHHP to create the Housing Capital Fund (Pooling ILA - SHB 1406). In 2022, SKHHP awarded two projects in South King County almost $1.4 million during the first annual funding round. In 2023, two of the four SKHHP member cities who are able to collect RCW 82.14.530 (HB 1590) revenues desired to pool a portion of those funds with SKHHP for the 2023 funding round of the Housing Capital Fund to add to existing SHB 1406 pooled revenue and entered into an additional interlocal agreement (Pooling ILA - HB 1590). The Establishing ILA and Pooling ILAs established the SKHHP Housing Capital Fund, set parameters for the process for the selection of awards involving pooled funds, and determined the approval process. Pursuant to the ILAs, the SKHHP Executive Board recommends allocations for funding affordable housing projects to the participating City Councils. Even though the Council has already contributed funds to the 2023 Housing Capital Fund funding round, Council approval is needed to authorize the allocation of funds to specific projects. Funding Recommendations The SKHHP Executive Board adopts annual funding guidelines and priorities for each funding round. The SKHHP Advisory Board subsequently reviewed applications and provided a 3 INFORMATIONAL MEMO Page 2 funding recommendation based on adopted priorities to the SKHHP Executive Board. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board's recommendation and recommends funding four projects totaling $5,747,306 as described in the 2023 SKHHP Housing Capital Fund Recommendation memo dated January 17, 2024 (attached). The SKHHP Executive Board requests approval to use $15,402 of the total $17,233 contributed funds from 2023 from the City of Tukwila for the following recommended projects: Project Sponsor and Project Name Location # of Units Total Development Cost Total SKHHP Contribution Total City Contribution Mercy Housing NW - Kent Multicultural Village Kent 199 $134,323,456 $1,000,000 $0 LIHI - Skway Affordable Housing and Early Learning Center Skyway 55 $36,295,892 $2,800,000 $0 TWG - Pandion at Star Lake Kent 168 $87,149,708 $1,170,000 $0 Multi -Service Center- Victorian Place II Des Moines 20 $785,125 $777,306 $15,402 Sales and use tax receipts from Tukwila have already been contributed to SKHHP's 2023 Housing Capital Fund, and with this Council approval of $15,402 those funds may be allocated to the projects recommended by the SKHHP Executive Board. Detailed descriptions of the projects, funding requests, rationale, and recommended conditions of funding for projects by the SKHHP Executive Board are included in the attached memo. RECOMMENDATION Staff is seeking Council approval of the proposed resolution with possible final action on April 1, 2024. ATTACHMENTS 1. Draft Resolution 4 South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations Claire V. Goodwin, SKHHP Executive Manager City of Tukwila Committee of the Whole March 25, 2024 SK:15P South King Housing and Homelessness Partners w� Establishing SKHHP and the Housing Capital Fund • 2019: SKHHP was formed via an Interlocal Agreement • Eleven member jurisdictions include: = Auburn = Federal Way = Renton = Burien = Kent = Tukwila = Covington = Maple Valley = King County = Des Moines = Normandy Park • 2019: SHB 1406 (RCW 82.14.540) became law allowing jurisdictions to enact a local sales tax for the purpose of affordable housing; sales tax is a recapture of a portion of existing sales tax • 2020: HB 1590 (RCW 82.14.530) became law allowing jurisdictions to impose a 0.1 % local sales and use tax to support affordable housing; limited window to act before County collected revenue • 2021 and 2023: Interlocal Agreements for the Purpose of Pooling Sales Tax Receipts with SKHHP • 2022: Launched first funding round of the Housing Capital Fund 2 SKr1:.? South King Housing and Homelessness Partners itt 2023 Housing Capital Fund • The second annual SKHHP Housing Capital Fund application opened in 2023. • Six applications were received with broad geographic diversity throughout South King County. • The SKHHP Advisory Board reviewed and made recommendations to the SKHHP Executive Board to fund four of the six projects. • The SKHHP Executive Board agreed with most of the recommendation and is seeking concurrence from each jurisdiction. • The recommendation totals $5,747,306 • $777,306 from SHB 1406 • $4,970,000 from HB 1590 SK:IP 3 South King Housing and Homelessness Partners Ast Recommended Projects 1. Mercy Housing NW — Kent Multicultural Village: Kent • 199-unit multifamily rental development adjacent to the future Kent Des Moines Link light rail station • 30%-80% of area median income (AMI); 20% set -aside for households with an I/DD and 30% set -aside for families • $1,000,000 2. LIHI — Skyway Affordable Housing and Early Learning Center: Unincorporated South King County • 55-unit multifamily rental development with on -site support services • 30%-50% AMI; 75% set -aside for households transitioning out of homelessness • $2,800,000 3. TWG — Pandion at Star Lake: Kent • 168-unit multifacility rental development adjacent to the future Kent/Star Lake Link light rail station • 30%-60% AMI; set -asides for families and families transitioning out of homelessness or are at -risk of homelessness • $1,170,000 4. Multi -Service Center— Victorian Place II: Des Moines • 20-unit rehabilitation and preservation project • 5 units up to 35% AMI; 10 units up to 40%AMI; 5 units up to 50%AMI • $777,306 SKr1:.? 4 South King Housing and Homelessness Partners AtiProposed Funding Sources for Recommended Projects o - HB 1590 Jurisdiction 1. Mercy Housing-KMV 2. LIHI-Skyway 3. TWG- Pandion Total Contributed in 2023 Unallocated Covington Kent $ 88,126 $ 246,752 $ 103,107 $ 438,028 $ 43 $ 911,874 $ 2,553,248 $ 1,066,893 $ 4,532,457 $ 442 $ 1,000,000 $ 2,800,000 $ 1,170,000 $ 4,970,485 $ 485 SKr:J:0 5 South King Housing and Homelessness Partners o�Proposed Funding Sources for Recommended Projects - SHB 1406 Jurisdiction 4. MSC -Victorian Place II Total Contributed in 2023 Carry -Over from 2022 Unallocated Federal Way Kent Normandy Park Renton Tukwila $ 137,595 $ 152,865 $ 11,548 $ 26,819 $ 63,128 $ 69,897 $ 5,535 $ 12,304 $ 30,261 $ 34,301 $ 1,858 $ 5,898 $ 119,468 $ 133,558 $ 9,196 $ 23,286 $ 188,422 $ 212,655 $ 12,493 $ 36,726 $ 5,942 $ 6,992 $ 108 $ 1,158 $ 217,088 $ 246,643 $ 12,758 $ 42,313 $ 15,402 $ 17,233 $ 1,171 $ 3,002 777,306 $ 874,145 $ 54,667 $ 151,506 SIP South King Housing antl Homr. Partners Thank you Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org SK:15P South King Housing and Homelessness Partners 12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE DULY -APPOINTED ADMINISTERING AGENCY FOR SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP) TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO AGREEMENTS FOR THE FUNDING OF AFFORDABLE HOUSING PROJECTS, AS RECOMMENDED BY THE SKHHP EXECUTIVE BOARD, UTILIZING FUNDS CONTRIBUTED BY THE CITY OF TUKWILA TO THE SKHHP HOUSING CAPITAL FUND. WHEREAS, on February 21, 2019, the City of Tukwila entered into an Interlocal Agreement to form South King Housing and Homelessness Partners (SKHHP) to help coordinate the efforts of South King County cities to provide affordable housing; and WHEREAS, on May 17, 2021, the City of Tukwila entered into an Interlocal Agreement for the purposes of pooling sales tax receipts with SKHHP to administer funds through the SKHHP Housing Capital Fund; and WHEREAS, the SKHHP Executive Board has recommended that the City of Tukwila participate in the funding of certain affordable housing projects and programs hereinafter described; and WHEREAS, the SKHHP Executive Board has developed recommended conditions to ensure the City's affordable housing funds are used for their intended purpose and that projects maintain their affordability over time; and WHEREAS, pursuant to the SKHHP formation Interlocal Agreement, each legislative body participating in funding a project or program through SKHHP's Housing Capital Fund must authorize the application of a specific amount of the City's funds contributed to the SKHHP Housing Capital Fund to a specific project or program; and 2024 Legislation: SKHHP Allocation Version: 02/15/2024 Staff: L. Humphrey Page 1 of 2 13 WHEREAS, the City Council desires to use $15,402.00 from funds contributed to the SKHHP Housing Capital Fund as designated below to finance the projects recommended by the SKHHP Executive Board; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Pursuant to the Interlocal Agreement, the City Council authorizes the duly -appointed administering agency of SKHHP to execute all documents and take all necessary actions to enter into agreements on behalf of the City to fund the rehabilitation of the Multi -Service Center's Victorian Place II, and to use $15,402.00 from the City's SHB 1406 contribution. Section 2. The agreements entered into pursuant to Section 1 of this resolution, shall include terms and conditions to ensure that the City's funds are used for their intended purpose and that the projects maintain affordability over time. In determining what conditions should be included in the agreements, the duly -appointed administering agency of SKHHP shall be guided by the recommendations set forth in the SKHHP Executive Board's memorandum dated January 17, 2024, a copy of which is attached hereto as Exhibit A. Section 3. This resolution will take effect and be in full force immediately upon passage and signatures. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2024. ATTEST/AUTHENTICATED: Andy Youn, CMC, City Clerk Mohamed Abdi, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment: Exhibit A — SKHHP Executive Board memorandum dated January 17, 2024 14 2024 Legislation: SKHHP Allocation Version: 02/15/2024 Staff: L. Humphrey Page 2of2 SKIIP South King Housing and Homelessness Partners TO: FROM: DATE: RE: City of Auburn City Council City of Burien City Council City of Covington City Council City of Des Moines City Council City of Federal Way City Council Memorandum City of Kent City Council City of Normandy Park City Council City of Renton City Council City of Tukwila City Council SKHHP Executive Board January 17, 2024 2023 SKHHP Housing Capital Fund Recommendation OVERVIEW The 2023 SKHHP Housing Capital Fund was the second funding round made possible by pooling resources among SKHHP member jurisdictions. 2023 was the first year members pooled funds sourced from HB 1590, which led to quadrupling the amount of funding available over the previous year totaling $5,899,297. SKHHP received six applications for funding representing over $8.6 million in requests to develop or preserve 493 units of housing. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board's recommendation and recommends funding four projects totaling $5,747,306 (see Table 1). Of this total, the Executive Board recommends using $777,306 of the total $928,812 sourced from SHB 1406 revenue contributions for one preservation project; and $4,970,000 sourced from HB 1590 revenue contributions for three new construction projects. This recommendation leaves a balance of $151,506 in SHB 1406 funds and $485 in HB 1590 funds in the Housing Capital Fund that will rollover into the next funding round in 2024 (see Tables 2 and 3). A summary of the recommended projects, funding rationale, and the conditions for funding are described in this memo. Included as an attachment are the economic summaries of the recommended projects. Table 1: Recommended Projects and Recommended Funding Level Project Sponsor Location # of Project type Amount Units requested Recommended Recommended Funding — HB 1590 Funding — SHB 1406 Mercy Kent 199 New Construction $1,000,000 Housing NW Rental $1,000,000 LIHI Skyway 55 New Construction $2,800,000 Rental $2,800,000 TWG Kent 168 New Construction $2,856,000 Rental $1,170,000 Multi -Service Des Center Moines 20 Preservation Rental $500,000 -- $777,306 TOTAL 442 $4,970,000 $777,306 Page 1 of 22 15 Table 2: Proposed HB 1590 Allocations by Jurisdiction for Recommended Projects Jurisdiction 1. Mercy Housing-KMV 2. LIHI-Skyway 3. TWG- Pandion Total Contributed in 2023 Unallocated Covington $ 88,126 $ 246,752 $ 103,107 $ 438,028 $ 43 Kent $ 911,874 $ 2,553,248 $ 1,066,893 $ 4,532,457 $ 442 Total $ 1,000,000 $ 2,800,000 $ 1,170,000 $ 4,970,485 $ 485 Table 3: Proposed SHB 1406 Allocations by Jurisdiction for Recommended Projects Jurisdiction 4. MSC- Victorian Place II Total Contributed in 2023 Carry -Over from 2022 Unallocated Auburn $ 137,595 $ 152,865 $ 11,548 $ 26,819 Burien $ 63,128 $ 69,897 $ 5,535 $ 12,304 Des Moines $ 30,261 $ 34,301 $ 1,858 $ 5,898 Federal Way $ 119,468 $ 133,558 $ 9,196 $ 23,286 Kent $ 188,422 $ 212,655 $ 12,493 $ 36,726 Normandy Park $ 5,942 $ 6,992 $ 108 $ 1,158 Renton $ 217,088 $ 246,643 $ 12,758 $ 42,313 Tukwila $ 15,402 $ 17,233 $ 1,171 $ 3,002 Total $ 777,306 $ 874,145 $ 54,667 $ 151,506 BACKGROUND The SKHHP Advisory Board met on October 5, 2023 and November 2, 2023 to review project applications and develop a funding recommendation for the SKHHP Executive Board's consideration. The SKHHP Executive Board met on October 20, 2023 and November 17, 2023 to review each project and consider the recommendations of the Advisory Board. The Advisory Board adopted its recommendation on November 2, 2023 and the Executive Board took final action on November 17, 2023. PROCESS Advisory Board recommendation (November 2, 2023) • ATTACHMENTS Executive Board finalized recommendation (November 17, 2023 1. Economic summaires for recommended projects Member Councils to approve funding recommendation (February -April 2024) 16 Page 2 of 22 1. Mercy Housing NW - Kent Multicultural Village Funding request: $1,000,000 Executive Board recommendation: $1,000,000 (forgivable loan) Address: 23446 Pacific Highway South, Kent, WA 98032 PROJECT SUMMARY Kent Multicultural Village is a 199-unit multifamily rental project in Kent adjacent to the future Kent Des Moines Link light rail station. The light rail station is scheduled to open in 2026. The project will support households earning 30% area median income (AMI) to 80% AMI with a 20% set -aside (39 units) for households with an intellectual and/or developmental disability (I/DD). The I/DD units will benefit from on -site supportive services. A 30% set -aside (61 units) will be for families with children. The project includes studios, 1-bedrooms, 2-bedrooms, and three -bedroom units. The site is comprised of eight stories and will include a community center, a family resource center, and a licensed early learning facility with six classrooms to accommodate 96 infants and children with a focus on serving children with I/DD. The project was awarded the RFP by Sound Transit to be located on surplus land, but the terms of development are forthcoming, and the final project may be slightly different than described. 39 units are eligible for SKHHP funds sourced from HB 1590 revenue. The project is a partnership between Mercy Housing NW and Open Doors for Multicultural Families, who will provide support to the I/DD households and will relocate their headquarters to the property. Open Doors for Multicultural Families will also operate the Community Center which will include space for recreational activities and community -focused programming. Open Doors for Multicultural Families is a non-profit organization dedicated to meeting the needs of persons of color living with I/DD, especially immigrants and refugees. PROJECT SCHEDULE Activity Date Site Control 2024 — to be coordinated in Sound Transit negotiations Building Permits Issued 4/2025 Begin Construction 6/2025 Begin Lease Up 2/2027 Certificate of Occupancy Issued 6/2027 First LIHTC Year Start 6/2027 100% Lease Up 2/2028 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has a 20% set -aside for households with an I/DD. • The project serves a diverse range of incomes from 30% AMI to 80% AMI. • The project proposal is thorough, well planned, and has funding commitments already established. Page 3 of 22 17 • The project is located adjacent to the future Kent Des Moines Link light rail station and has convenient access to transit, schools, medical clinics, grocery stores, and services. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit -oriented development (TOD) project, collaboration with local community -based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, advancing geographic equity of the Housing Capital Fund, and the leverage of private and public investment. • Mercy Housing NW is a well -established nonprofit developer in the region. • A third -party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. Page 4 of 22 18 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's construction. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, contingent, forgivable loan. Loan terms will account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of Council approval and shall expire thereafter if all conditions are not satisfied. An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time, the Agency will provide a Page 5 of 22 19 status report on progress to date and expected schedule for start of construction and project completion. The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum, the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. At least 39 of the housing units shall be set -aside for households with an I/DD who earn no more than 60% AMI. Use of funds and population eligibility must be in -alignment with RCW 82.14.530. 4. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 5. Receipt of the documentation of remediation results and Department of Ecology approval of remediation efforts shall be submitted to SKHHP prior to proceeding with construction. Page 6 of 22 20 2. Low Income Housing Institute (LIHI) - Skyway Affordable Housing and Early Learning Center Funding request: $2,800,000 Executive Board recommendation: $2,800,000 (forgivable loan) Address: 12712-12724 & 12742 Renton Ave. South, Seattle, WA 98178 PROJECT SUMMARY Skyway Affordable Housing and Early Learning Center is a multifamily rental project in Unincorporated King County. The project will provide 55 housing units for individuals and families, including 12 studios, 19 one -bedroom, 13 two -bedroom, and 11 three -bedroom units for households earning between 30% and 50% AMI with a 75% set -aside (42 units) for households transitioning out of homelessness. An early learning center will be located on the ground floor of the building, featuring four classrooms to accommodate up to 80 children, a parent resource room, and offices. The surrounding community will be prioritized in the early learning center activities. Additional amenities include a community room, case manager offices, and a roof deck for resident use. LIHI will provide on -site case management. This project has been previously awarded predevelopment and acquisition funds from King County. The project will serve individuals (25 units) and families (17 units) exiting homelessness earning 30% AMI (42 total units) and will support general population households earning up to 50% AMI (12 units). A common room will support all residents (1 unit). 42 units are eligible for SKHHP funds sourced from HB 1590 revenue. Childhaven, a nonprofit dedicated to strengthening families and preventing childhood trauma, plans to lease the early learning center and relocate their program to the site and will assist in applying for local funding for this portion of the project. The early learning center will be financed separately from the residential space, without using tax credits on the commercial space. PROJECT SCHEDULE Activity Date Site Control 1/30/2023 Building Permits Issued 1/23/2025 Begin Construction 6/1/2025 Begin Lease Up 9/15/2026 Certificate of Occupancy Issued 10/15/2026 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has a 75% set -aside for households transitioning out of homelessness. • The project brings quality, affordable housing to a historically underserved neighborhood. • The project will house Childhaven on -site to run an early learning center. • The project is located near schools, a library, and a future community center. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: collaboration with local community -based organizations, addressing the needs of populations Page 7 of 22 21 most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, leverage of private and public investment, and promoting racial equity by prioritizing residents with a connection to the neighborhood. • The project will prioritize residents with a connection to the neighborhood. • LIHI is an established developer in the region. • A third -party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's Page 8 of 22 22 development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's construction. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, contingent, forgivable loan. Loan terms will account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of Council approval and shall expire thereafter if all conditions are not satisfied. An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time, the Agency will provide a status report on progress to date and expected schedule for start of construction and project completion. The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum, the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. Page 9 of 22 23 3. At least 75% of the housing units shall be set -aside for households transitioning out of homelessness and be for an eligible population defined in RCW 82.14.530 and who earn no more than 60% AMI. 4. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 5. LIHI shall reexamine the guest policy allowing only one guest at a time to determine if it is necessary. Page 10 of 22 24 3. TWG — Pandion at Star Lake Funding request: $2,856,000 Executive Board recommendation: $1,170,000 (loan) Address: 2526 S 272nd Street, Kent, WA 98059 PROJECT SUMMARY The South Building (building one of two) of Pandion at Star Lake is a multifamily rental, mixed use project consisting of 168 affordable housing units for households earning between 30% and 60% AMI in Kent. The project is located adjacent to the Kent/Star Lake Link light rail station. This transit -oriented development (TOD) project will provide a mix of studio, one, two and three -bedroom units. The project will include ground floor commercial space consisting of an early learning center for low-income children and other non-profit tenants. The property was purchased by the developer in December 2022. The project is a seven -story building with six stories of affordable housing over one story of commercial space, plus basement level parking. The 168 units includes 109 units for the general population, 30 units for families with children, 25 units for families with children that require permanent supportive services and who are transitioning out of homelessness or are at -risk of homelessness, and 4 units supporting households with an intellectual and/or developmental disability (I/DD) requiring supportive services. Pandion at Star Lake is a partnership between TWG Development and Vision House, with Vision House providing on -site supportive serves for 140 units or those receiving 4% LIHTC support. In collaboration with the City of Kent, an additional service provider will be selected to serve residents of the remaining 28 units or those receiving 9% LIHTC support. 29 units of the project are eligible for HB 1590 funds which includes 25 units for families with children transitioning out of homelessness or are at -risk of homelessness and require permanent supportive services and the four units set -aside for I/DD households. PROJECT SCHEDULE Activity Date Site Control 12/6/2022 Building Permits Issued 10/1/2025 Begin Construction 12/31/2025 Certificate of Occupancy Issued 12/31/2027 Placed in service 1/1/2028 First LIHTC Year 2028 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project is located adjacent to the future Kent/Star Lake Link light rail station and has convenient access to transit, schools, grocery stores, and services. Page 11 of 22 25 • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit -oriented development (TOD) project, collaboration with local community -based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, advancing geographic equity of the Housing Capital Fund, and the leverage of private and public investment. • The project construction start date is anticipated by early 2026, six months later than other recommended projects. The sponsor may have more time to secure the additional funds than other projects prior to beginning construction. • The project has a strong partnership with Vision House who will provide on -site supportive services for 140 households. • A second building supporting 173 units for seniors earning 80% to 100% AMI is part of the overall project, but is not part of the application to public funders. The overall project supports mixed -income housing from 30% AMI-100% AMI. • The project sponsor has been in close communication with the City of Kent on project feasibility and zoning requirements since the property was purchased in December 2022. • The project sponsor has agreed to voluntarily meet the design standards for properties zoned as 'Midway Transit Community,' which is a higher degree of development than what is required under general mixed -use commercial standards for the City of Kent. • A third -party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the Page 12 of 22 26 project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's construction. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, 1% interest, non -forgivable loan to the LIHTC partnership. The form of the funds are subject to change, but shall be agreed upon prior to contract execution. Loan terms will Page 13 of 22 27 account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of Council approval and shall expire thereafter if all conditions are not satisfied. An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time, the Agency will provide a status report on progress to date and expected schedule for start of construction and project completion. The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum, the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. At least 29 housing units of the total shall be for an eligible population defined in RCW 82.14.530 including households transitioning out of homelessness or are at -risk of homelessness or households with an I/DD and who also earn no more than 60% AMI. 4. SKHHP funds shall be used solely for new construction of the South Building, unless otherwise approved by SKHHP staff. Page 14 of 22 28 4. Multi -Service Center - Victorian Place II Funding request: $500,000 Executive Board recommendation: $777,306 (grant) Address: 24517 26th Place South, Des Moines, WA 98198 PROJECT SUMMARY Victorian Place II is a multifamily, preservation 20-unit rental project in Des Moines. Since 1996, the nonprofit Multi -Service Center has owned the two adjacent buildings that comprise the project which includes five units for households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI. The 20 three bedroom/two bath affordable rental units are in active use and the target population is families with children. The original request was for $500,000 in the form of a grant. Initial estimates were based on a 2018 construction estimate. An updated cost estimate of the project received on October 25, 2023 totaled $675,918. The Advisory Board recommended fully funding the project at the revised amount, however, after the recommendation was made, it was discovered that the revised estimate did not include contingency funding. The Executive Board recommend funding the project with a 15% contingency which totals $777,306. SKHHP funds are requested to support the rehabilitation of the two buildings including: landscape improvements, staircase repairs, installation of new railings, seal coating the parking lot, upgrading external lighting, recoating tenant decks, installation of new siding, replacing gutters and downspouts, replacing windows, replacing sliding glass doors, replacing unit entry doors, and replacing baseboard heating with energy -efficient heating systems. PROJECT SCHEDULE Activity Date Site Control 1/1/2000 Building Permit Issued Mid-2024 Begin Rehabilitation and Renovation Mid -late 2024 End Rehabilitation and Renovation Mid -late 2025 FUNDING RATIONALE The Advisory Board supports the intent of this application for the following reasons: • There are limited funding sources available for preservation and rehabilitation. The focus for larger public funders has historically been on creating new units of affordable housing. Smaller preservation projects like this one are not as competitive against larger preservation projects competing for the same funds. • The property is in need of rehabilitation to support the health and safety of residents which are families with children. • Preservation of affordable housing is a high -priority for SKHHP. • 75% of the households earn no more than 40% AMI. Page 15 of 22 29 • The project's proximity to the future Kent Des Moines Link light rail station an asset (1.3 miles). • Multi -Service Center is a well -established South King County -based nonprofit that owns and operates over 650 units of affordable housing. • Multi -Service Center's housing programs have a history of serving BIPOC community members with 72% of clients self -identifying as BIPOC. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: the project sponsor's community connection and engagement with the populations they intend to serve, advancing racial equity, addressing the needs of populations most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, and preservation. • Of the two applications submitted by the project sponsor, this project is the higher of the two priorities as the larger housing units are more difficult for families in need to access, and the current safety concerns at the project site are more immediate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project rehabilitation and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.540. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. Page 16 of 22 30 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's rehabilitation. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a secured grant with no repayment. Final Contract terms shall be determined prior to release of funds and must be approved by SKHHP staff. The grant will be secured by a deed of trust recorded against the property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the grant so long as it maintains these project requirements. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of Council approval and shall expire thereafter if all Page 17 of 22 31 conditions are not satisfied. An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time, the Agency will provide a status report on progress to date and expected schedule for start of construction and project completion. The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum, the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. SKHHP funds shall be used solely for the rehabilitation of the property to include, but not be limited to, the following, unless otherwise approved by SKHHP staff: a. landscape improvements b. staircase repairs c. installation of new railings d. seal coating the parking lot e. upgrading external lighting f. recoating tenant decks g. installation of new siding h. applying exterior paint i. replacing gutters and downspouts j. replacing windows k. replacing sliding glass doors I. replacing unit entry doors m. replacing baseboard heating with energy -efficient heating systems 4. SKHHP and Contractor shall agree to the specifics on what will be funded prior to executing a contract to ensure eligibility of expenses in alignment with RCW 82.14.540 and to mitigate cost -overruns. 5. Five housing units shall serve households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI for the duration of the term of affordability. 6. Should cost overruns occur that require funds above SKHHP's contribution, sponsor will work towards filling the funding need through their capital budget process or seeking funds through other sources. Page 18 of 22 32 ATTACHMENT 1: Economic Summaries of Recommended Projects Project: Mercy Housing NW — Kent Multicultural Village Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $1,000,000 Applied 4% LIHTC Equity $48,849,278 Applied King County (2022) $5,000,000 Committed GP Equity $1,000 Self -funded Permanent Loan $23,500,000 Applied State HTF $8,000,000 Awarded Deferred Fee $4,850,000 Self -funded Amazon Grant $2,000,000 Applied Amazon Loan $11,369,574 Applied Private: Non -Residential $7,841,869 Will Apply State: Non -Residential $10,735,000 Will Apply Federal: Non -Residential $2,552,000 Will Apply County: Non -Residential $3,150,000 Will Apply Debt: Non -Residential $5,474,735 Will Apply TOTAL $134,323,456 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Land acquisition $384,504 -- Construction costs $98,698,553 -- Soft costs $12,761,870 -- Development costs $8,372,636 -- Other development costs $4,002,261 -- Community facility $9,402,356 -- 4% bond issuance $701,276 -- TOTAL $134,323,456 -- TOTAL NON-RESIDENTIAL $29,753,604 -- TOTAL RESIDENTIAL (Includes common areas) $104,569,852 $525,476 Residential Cost Per Square Foot Item Amount Residential square footage 246,019 Residential development cost $104,569,852 Cost per square foot $425.05 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio 54 392 $166,619 Average 1-bedroom 40 484 $205,724 Average 2-bedroom 65 710 $301,785 Average 3-bedroom 40 982 $417,399 Common area and other residential spaces, including parking -- 85,700 $36,426,785 Page 19 of 22 33 Project: LIHI — Skyway Affordable Housing and Early Learning Center Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $2,800,000 Applied State HTF $7,465,748 Will apply in fall 2024 King County 2023 $2,500,000 Awarded $2.1M 9% LIHTC 1 $13,080,144 Will apply in fall 2024 King County 2022 (pre -development funds) $2,500,000 Received Direct Appropriations -Federal 1 $700,000 Received Direct Appropriations -State $3,000,000 Received Wyncote Foundation $1,000,000 Received PSTAA $300,000 Received TOTAL $36,295,892 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Cost per Unit Land acquisition $2,041,000 -- Construction costs $26,761,254 -- Soft costs $4,624,073 -- Development costs $1,737,565 -- Other development costs $1,132,000 -- TOTAL $36,295,892 -- TOTAL NON-RESIDENTIAL $3,250,000 -- TOTAL RESIDENTIAL (Includes common areas) $33,045,892 $600,834 Residential Cost Per Square Foot Item Amount Residential square footage 50,608 Residential development cost $33,045,892 Cost per square foot $652.97 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average studio square footage 12 400 $261,188 Average 1-bedroom square footage 19 516 $336,932 Average 2-bedroom square footage 13 816 $532,823 Average 3-bedroom square footage 11 900 1 587,673 Common area and other residential spaces, including parking -- 12,121 $7,914,649 Page 20 of 22 34 Project: TWG — Pandion at Star Lake Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status • SKHHP $2,856,000 Applied LIHTC & Energy Credits $31,023,163 Applied Amazon $22,000,000 Applied Permanent Loan $15,340,000 Applied State HTF $4,218,915 Applied -Not awarded in 2023 King County $4,500,000 Applied -Not awarded in 2023 Deferred Development Fee $2,355,370 Self -funded Non -Residential Commercial $4,856,260 -- TOTAL $87,149,708 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Land acquisition $3,435,523 -- Construction costs $63,626,629 -- Soft costs $9,689,519 -- Development costs $6,902,268 -- Other Development costs $3,154,594 -- 4% Bond Issuance $341,175 -- TOTAL $87,149,708 -- TOTAL NON-RESIDENTIAL $4,856,260 -- TOTAL RESIDENTIAL (Includes common areas) $82,293,448 $489,841 Residential Cost Per Square Foot Item Amount Residential square footage 180,197 Residential development cost $82,293,448 Cost per square foot $456.68 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio 30 381 $173,995 Average 1-bedroom 78 615 $280,858 Average 2-bedroom 24 950 $433,846 Average 3-bedroom 36 1,095 $500,064 Common area and other residential spaces, including parking -- 59,772 $27,296,676 Page 21 of 22 35 Project: Multi -Service Center - Victorian Place II Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $777,306 Applied Multi -Service Center $7,819 Self -Funded TOTAL $785,125 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Title document recording fees $5,000 $250 Rehabilitation costs $780,125 $39,006 TOTAL $785,125 $39,256 Page 22 of 22 36 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 3/11/24 AY 3/25/24 AY 4/1/24 AY ITEM INFORMATION ITEM NO. 4.B. STAFF SPONSOR: ANDY YOUN ORIGINAL AGENDA DATE: 3/11/24 AGENDA ITEM TITLE City Clerk's Office request to increase 0.5 FTE to 1.0 FTE to mitigate the impacts of Public Records Requests CATEGORY ® Discussion Mtg Date 3/11/24 ® Motion Mtg Date 3/18/24 ❑ Resolution Mtg Date ❑ Ordinance Mfg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ® Admin Svcs ❑ DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Public agencies are required to comply with the Public Records Act or face heavy sanctions and fines for failures to comply. The City Clerk's Office is requesting to increase an existing budgeted 0.5 FTE to 1.0 FTE that will be absorbed in the department's budget to provide the necessary support to handle public records requests. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 2/26/24 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Administrative Services/City Clerk's Office COMMITTEE Majority Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 3/11/24 Committee of the Whole cancelled 3/25/24 4/1/24 MTG. DATE ATTACHMENTS 3/25/24 Informational Memorandum dated 2/20/24 Staffing Levels Chart (added after Committee) Minutes from the 2/26 Finance and Governance Committee meeting 4/1/24 37 38 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee BY: Andy Youn, Deputy City Clerk CC: Mayor McLeod Marty Wine, Interim City Administrator Christy O'Flaherty, Records Governance Manager/ City Clerk DATE: February 20, 2024 SUBJECT: Public records requests mitigation and request to increase current 0.5 FTE to 1.0 FTE ISSUE Public agencies are required to comply with the Public Records Act or face substantial sanctions for failures to respond to or provide records. The City Clerk's Office is requesting Council approval for additional staffing to support the heavy workload associated with public records requests. BACKGROUND In 2006, the Public Disclosure Statutes were recodified as the Public Records Act (identified in RCW 42.56), changing the landscape of government transparency by requiring public agencies to make public records (physical or electronic) available upon request. The Public Records Act requires that the City respond within 5 business days to all requests for public records either by making the record available, providing a reasonable estimate of availability, requesting clarification, or denying the request if there is a statutory exemption. The City Clerk's Office coordinates complex, multi -departmental records requests as the department responsible for administering the City's Records Management Program, and for managing governmental transparency to the public. These requests are often in concurrence with pending litigation against the City and require close coordination with the Attorney's Office to mitigate legal and financial risk to the City. The City Clerk's Office also reports annually to the State Legislature's Joint Legislative Audit and Review Committee (JLARC) on required performance metrics related to public records retention, management, and disclosure. The City Clerk is currently the Public Records Officer for the City and oversees Citywide compliance with the Public Records Act. This includes: • Interpreting and distributing the request to staff • Corresponding with requestors • Managing the Citywide search for, review of, and delivery of responsive records • Managing the redaction of exempt and sensitive information • Database tracking • Records retention and destruction • Providing guidance to departmental liaisons on handling departmental requests • Coordinating with the City Attorney's Office on redactions, exemptions, third -party notices, and Nissen Affidavits. 39 INFORMATIONAL MEMO Page 2 DISCUSSION Since staff began tracking public records data in 2010, the total number of requests (Figure 1) received annually by the Clerk's Office has steadily increased, with a record number of requests received in 2019 (161 total). The total number of requests received does not sufficiently describe the scope of work involved in responding, which may range from providing a simple link to an existing document, to providing thousands of email records with attachments that first need to be reviewed by Clerk's Office staff for responsiveness and to ensure exempt information is not released. Figure 2 shows an approximation of the number of electronic records reviewed by staff and provided to requestors over the past few years. The number of files is considerable but does not fully capture other components such as metadata, multiple tabs in an excel document, and files that contain hyperlinks. In other words, this is an undercount of the true scope of work. Staff Time on Public Records Requests Annually (Clerk's Office) 1689 1463 Hours (annual) 1800 1600 1400 1200 1000 800 600 400 200 0 O Figure 3 years and have "commercialized" the process records on behalf of their business clients. requestor of municipal records with an average individuals (30%), and other requestors (7%). 0 N 0 O N 0 0 00 0, 0 0 a -I 0 N N N ON N N O O 0 N N N 1628 0 N 180 160 140 120 100 80 60 40 90 93 Number of Requests Annually (Clerk's Office) 161 .•74 7 65 O 0 N 0 N N 0 N CO 0 0 N 147 131 ii.1213 131 130 18 Lf1 0 N 0 N N. 0 N 11 CO 0 N 0 N 0 N O N N 0 N N N 0 N M N 0 N 1 Figure 1 Total Files Reviewed 2017 12,214 2018 131,508 2019 40,638 2020 11,688 2021 19,444 2022 61,058 2023 43,867 Figure 2 Requests can often take weeks or months to fulfill due to the litigious nature and complexity, and available staff capacity. As shown in Figure 3, the growing scope of requests over the years has resulted in a steady increase in the total staff time spent on Public Records Requests. Two major factors have contributed to the sharp increase in time spent on requests: 1) The growing reliance on technology and software systems over the years has resulted in more digital records that become part of the public record and therefore must be provided in response to requests; and 2) Requestors have grown savvier over the of public records requests by seeking municipal Business organizations are the most frequent of 43% of requests, compared to law firms (20%), While the goal is to complete requests within the legal 5-day timeframe upon receipt, as shown in Figure 4, less than half of requests were closed within 5 business days. Requests took an average of 18 days to fulfill in 2023. In 2023, the longest request took 182 days for City Clerk staff to complete and would have taken longer had the requestor not cancelled the request due to the resolution of their pending litigation against the City. 2017 2018 2019 2020 2021 2022 2023 % Requests closed in 5 days 77% 68% 73% 50% 56% 57% 57% Average days to close 11 18 16 23 19 20 18 40 Figure 4 INFORMATIONAL MEMO Page 3 Responding to Public Records Requests can be labor intensive, but noncompliance can result in hefty sanctions, fines, and legal fees imposed against the City as well as the loss of public trust. Courts often fine public agencies for failure to recognize requests, interpreting requests too narrowly, performing inadequate searches, and failure to provide records in a timely manner. Some examples of the heavy cost of failure to comply with the Public Records Act include: • A $575,000 settlement in 2014 by Snohomish County to resolve a lawsuit brought by a non-profit group that submitted more than 275 requests. The County failed to respond timely to 4 of the requests. • A 2019 Pierce County settlement of $950,000 with former employee Nissen, after an 8- year case to disclose then -County Prosecutor's text messages. This landmark case found that work -related text messages from the private phone were required to be disclosed, resulting in the implementation of "Nissen affidavits" as records. • The Port of Quincy paid $350,000 in 2022 to a requestor as a result of missing one of four emails requesting public records that had landed in the spam folder. Continued media coverage on the Public Records Act, an influx of new technologies, the growing demand for access to government records, and ever -evolving records requirements by the State all translate to increased workload impacts when it comes to public records requests. There are also immediate impacts based on current events and activities: Requests are often submitted in conjunction with pending or potential litigation, in response to issues happening locally or nationally, actions taken (or not taken) by the City, and many other scenarios. Over the years, the urgent need for high-level staffing dedicated to public records request has become very apparent. As a service that is both legally mandated and high -risk, the escalating impact of public records requests on public agencies cannot be overstated, especially given the fluctuating and unpredictable nature of this workload. While the Clerk's Office has sought to absorb public records request workload on top of existing core functions, this approach is becoming unsustainable and presents legal and financial risk for the City. FINANCIAL IMPACT Prior to budget cuts, the Clerk's Office used available departmental funds towards public records request support. However, due to the minimal available hours and high level of responsibility required in this support role, maintaining staffing has proven difficult. As part of the 2023-2024 Biennial Budget, the Council approved funding for a 0.5 FTE (full time equivalent) Public Records Request Assistant. The City Clerk's Office is requesting this existing position be increased to 1.0 FTE to provide the necessary support to handle the workload associated with public records requests at a high level, given the legal and financial risks, evolving mandates, complexity of reporting requirements, and sensitive information handled in this position. The costs associated with this position are estimated to be $94,000 (salary and benefits) and will be absorbed in the current City Clerk's budget using available salary savings. RECOMMENDATION The Committee is being asked to approve an increase from 0.5 FTE to 1.0 FTE for the City Clerk's Office for staffing of Public Records Requests, to be included in the year-end budget amendment, and forward this item for consideration to the March 11 Committee of the Whole and March 18 Regular Meeting Consent Agenda. ATTACHMENTS None. 41 Current Staffing Levels - City Clerk's Office (5.5 FTEs) The City Clerk's Office is a small team of 5.5 FTEs responsible for day-to-day administration of essential public services and governmental transparency to the public. This office oversees the key Citywide functions of Public Access, Public Meetings, and Public Records. Each member of the team oversees and/or executes core Citywide programs that require coordination with all departments, from Contract Processing, Records Management, Legislative Development, Policy Development, Public Records Requests, Council Agendas, and Public Meetings. In addition, the City Clerk's Office is considered the central information center for the City and handles essential public services such as acceptance of claims and litigation, distribution of Citywide mail, recording of documents to the County, noticing of bids, legal notices, publications for all City departments, and more. Position Core duties (LEAN) City Clerk (1.0 FTE) Management/Supervision of Dept; Focus on oversight of PRRs, Agendas, Council meetings, DRC, Records Management Program, Legal Notices, Essential public services, Budgeting, Risk Management Deputy City Clerk* (1.0 FTE) Same as above with focus on execution of assigned core programs/services; Legislative development, TMC codification Records Program Coordinator (1.0 FTE) Management of Citywide Records Program (retention, destruction, archiving); back-up of other departmental core functions Electronic Content Mgmt. Coordinator (1.0 FTE) Management of Digital Records Center; Complex digitization projects (as-builts, permits); agenda compilation; Importing contracts Administrative Support Coordinator* (1.0 FTE) Front desk services; mail/postage; staffing of Council meetings; agenda production; contract processing; Acceptance of claims/litigation/appeals Public Records Request Assistant (0.5 FTE) Public records request support *As of March 2024, these positions will be vacant due to internal promotions, bringing staffing levels down to 3.5 FTEs. Proposed Staffing Levels - City Clerk's Office (6 FTEs) City Clerk/ Records Governance Manager Deputy City Clerk/ Legislative Manager Deputy City Clerk/ Public Records Request Manager Records Program Coordinator Electronic Content Management Coordinator Administrative Support Coordinator 42 City of Tukwila City Council Finance & Governance Committee Meeting Minutes February26, 2024 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Staff Present: I. BUSINESS AGENDA De'Sean Quinn, Chair; Tosh Sharp, Jovita McConnell Vicky Carlsen, Tony Cullerton, Laurel Humphrey, Marty Wine, Pete Mayer, Christy O'Flaherty, Andy Youn A. City Clerk Staffing Request - Public Records Response Staff is seeking Council approval of additional .5 FTE to handle the workload associated with public records requests. Committee Recommendation Divided recommendation with Councilmembers Quinn and McConnell in favor of the proposal and Councilmember Sharp opposed. Forward to March 11, 2024 Committee of the Whole. B. Financial Policies Committee members discussed the current Financial Policies as adopted by Resolution 2014. Staff plans to return in March with a modification to Section 5(b) with regard to grant applications. Committee Recommendation Return to Committee. C. December 2023 and January 2024 General Fund Expenditure Update Staff presented the report. Committee Recommendation Discussion only. MISCELLANEOUS The meeting adjourned at 6:32 p.m. Committee Chair Approval 43 44 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 3/25/24 VC ITEM INFORMATION ITEM NO. 4.C. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 3/25/24 AGENDA ITEM TITLE 2025-2026 Budget Development Kick Off CATEGORY ® Discussion Mtg Date 3/25/24 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY 2025-2026 Budget Development Kick Off and Discussion REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 3/25/24 MTG. DATE ATTACHMENTS 3/25/24 Info Memo dated 3/25/24 Proposed Budget Calendar Power Point Presentation 45 46 City of Tukwila Thomas McLeod, Mayor Finance Department - Vicky Carlsen, Director INFORMATIONAL MEMORANDUM TO: Committee of the Whole CC: Mayor McLeod FROM: Vicky Carlsen, Finance Director BY: Tony Cullerton, Deputy Finance Director DATE: March 25, 2024 SUBJECT: 2025 — 2026 Budget Kickoff Meeting SUMMARY This presentation aims to apprise the council of the commencement of the 2024-2025 biennial budget preparation process. Finance will provide regular updates on budget information from now until budget adoption. Tonight's presentation marks the beginning of the 2025-2026 budget process. It will cover various aspects including the Budget Process, Roles, Council Touchpoints, Community Engagement Overview, and details on Priority Based Budgeting (PBB). ATTACHMENTS Proposed 2025-2026 Biennial Budget Calendar Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 47 48 City of Tukwila Proposed 2025-2026 Biennial Budget Calendar *Note* To make the best use of Council time, Workshops may take place during COW, Regular Meeting, or Special Work Sessions, depending on schedules and other legislative items. February March Budget Steering Committee convenes- Program list reviewed and refined. Programs rescored as necessary. Drafting of 2025-26 City Work Plan Launch Phase 1 Community Engagement Process- Balancing Act sorting budget buckets, priorities, trade-offs, etc. Council workshop: Budget Kick -Off, overview of Budget Process, critical path, community engagement plan, budget drivers/assumptions, Mayor's Goals/Priorities April Budget Call / Kick -Off w/ City Staff- budget worksheets sent to Departments Budget Steering Committee convenes Budget Liaison Group convenes- begins supporting Department budget development Council Workshop- Program Budgeting 101; Capital Budgeting 101 April 1-30 Launch Phase 2 Community Engagement Process- ETC statistically valid community survey and Boards/Commissions outreach Financial Sustainability Plan Recommendations Presentation: • Council guidance regarding Financial Sustainability Committee recommendations • Preliminary Council guidance/assumptions Budget Steering Committee convenes April 15— May 15 Launch Phase 3 Community Engagement Process- Balancing Act testing Financial Sustainability Committee recommendations Department Narratives Due to Finance May Draft budgets due for Finance, Debt, Fund 611 Firemen's Pension, Fund 302 Urban Renewal, Fund 303 General Improvements, Fund 304 Fire Improvements, Fund 305 Public Safety Plan, Fund 109 Drug Seizure Fund) Council Workshop • Results and recommendations from Community Engagement Process; • Utility Cost of Service Analysis • Department Goals and Objectives due Budget Steering Committee convenes Page I 1 49 May - July Department heads prepare budget estimates (on/before the 4th Monday in September) • Departments incorporate City Work Plan items into Department Work Plans June Department Head meetings w/City Administrator & Finance Director to review budget proposals & work plans Department Accomplishments Due Department Year -End Projections Due Draft budgets due for: Finance- Fund 502- Employee Healthcare, Finance- Fund 503- LEOFF 2 Healthcare, Fund 301- Parks, Trails & Open Space, Fund 103- Residential Streets, Fund 104- Bridges & Arterial Streets, Fund 401- Water, Fund 402- Sewer, Fund 412- Surface Water July Department Head meetings w/City Administrator & Finance Director to review budget proposals CPI-W released by DOR Council Workshop • Overview of Capital Improvement Program (CIP) including: capital (Residential Street, Bridges & Arterial Streets, Parks, Trails & Open Space, City Facilities)project funds, utility funds (Water, Sewer, Surface Water), and golf course Finance provides Departments salary/benefits information Draft budgets due for: City Council, Mayor's Office, Mayor's Office- Economic Development, Mayor's Office- Lodging Tax, Administrative Services- Human Resources, Administrative Services- Information Technology, Administrative Services- City Clerk, Administrative Services- Human Services, Administrative Services - Communications, Finance, Parks and Recreation- Parks, Rec and Golf, DCD, Court, Police, Public Works, Public Works -Streets August 2023-24 Budget Amendments due to Finance 2025-26 Work Plan Draft finalized Finance reconciles and builds 2025-26 Preliminary Draft Operating and Capital Budget Finance presents 2025-26 Preliminary Draft Operating and Capital Budget (no later than first Monday in October per RCW) Council Workshop- Overview of Funds Special Revenue (Drug Seizure, Lodging Tax), General (Contingency), Debt Service (LTGO, UTGO, LID #33, Guaranty), Internal Service (ER&R, Self -Insured Healthcare, LEOFF 1 Retiree, Firemen's Pension) September Council Workshop- Presentation of Preliminary 2025-26 Budget Page 12 50 Council Workshops- Program Presentations- Aligned & Innovative Services, Strategic & Responsive Engagement, Connected & Vital Infrastructure, Accessible Mobile Networks October Council Workshops- Program Presentations (Healthy & Sustainable Community, Integrated Operations, Safe & Resilient and Capital Improvement Program Council Workshop & Public Hearing Council Workshops- guidance, deliberations, and direction on finalizing budget proposal Revised 2025-26 Proposed Operating and Capital Budget Released November Council Workshop(s) & Public Hearings • Tax Levy Legislation (property tax legislation must be sent to the County by November 30) • Budget Legislation- 2023-24: Ordinance amending 2023-24 Budget • Budget Legislation -2025-26: Ordinance adopting 2025-26 Budget • Fire and Park Impact Fees • Consolidated Fee Schedule Council Meeting • Adoption of 2025-25 Biennial Operating and Capital Budget (must be adopted by December 31, 2024 December Final 2025-26 Adopted Operating and Capital Budget + Budget Brief Released Page 13 51 52 CITY OF TUKWILA 2025-26 1 11110141.1.1b DEVELOPMENT PROCESS March 25, 2024- City Council Meeting The City of opportunity, the community of choice. Budget Kick -Off Presentation 01 01 Marty Wine Interim City Administrator Vicky Carlsen Finance Director Tony Cullerton Deputy Finance Director Today's Briefing • Budget Process, Roles & Council Touch Points • Community Engagement Overview • About Priority Based Budgeting ICity of Tukwila 2025-26 Budget Development 2 I Budget Process per State Law The City of Tukwila's budget procedures are mandated by RCW 35A.33 • October 2-Mayor submits a proposed budget to the City Council • November- City Council conducts public hearings on the proposed budget • By December 31- Council makes any adjustments and adopts by ordinance • January- Final adopted budget published & distributed Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 18. City of Tukwila 2025-26 Budget Development 3 01 07 Tukwila Budget Process • The City Council, Mayor, City Administrator, Department Directors, City staff and residents all participate in the budget process • Budget planning includes reviews of • City Strategic Plan • Policy Priorities for the next biennium • City Financial Policies • Final estimates of revenues, expenditures and capital improvement investments • The six -year capital improvement program is developed in conjunction with the biennial budget. • The preliminary budget is presented to the Council and the final budget is adopted in late November or early December. Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 18. City of Tukwila 2025-26 Budget Development 4 Tukwila Budget Process- cont'd • The adopted biennial budget takes effect on January 1st of odd numbered years. • Biennial budgeting vs. annual budgeting • Mid -Biennium Reviews • Occurs in both budget years. • The City Council authorizes transfers within funds and must approve by ordinance any amendments that increase the total for the fund. Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 18 - " City of Tukwila 2025-26 Budget Development 5 U7 v 01 00 Financial Structure of the City Budget GOVERNMENTAL FUND TYPES General Fund: Supports general operations of the City. Taxes are the principal source. Accounts for all City resources except those required to be accounted for in a different fund. Special Revenue Funds: Revenues which are legally or administratively restricted for special purposes. Debt Service Funds: Account for resources necessary to pay principal and interest on general long-term debt. Capital Projects Funds: Accounts for financial resources to be used for the acquisition or construction of capital items, facilities, or infrastructure. Not to be used for maintenance or repairs. Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 25. PROPRIETARY FUND TYPES Enterprise Funds: Accounts for operations that are financed and operated in a manner similar to business enterprises. Internal Service Funds: Used to account for operations or services to other departments on a cost reimbursement basis. FIDUCIARY FUNDS Account for assets held by the City in a trustee capacity and cannot be used to support the City's own programs. City of Tukwila 2025-26 Budget Development 6 Budget Inputs System Plans Transportation; Parks; Water; Sewer; Stormwater Utility Rate Stu +ie� Council & Community Engagement Facilities Studies & Recommendations Mayor's Priorities City Strategic Plan City Comp Plan Update City Work Plan 6-Year Financial Forecast Statistically Valid Polling Results Business & Strategic Plans Financial Sustainability Committee ,commPrictlions Operating and Capital Budget Proposal City of Tukwila 2025-26 Budget Development 7 U1 Q) O Strategic Foundation City Strategic Plan Goals • Acommunityof inviting Neighborhoods and Vibrant Business Districts • A solid foundation for all Tukwila residents • A diverse & regionally competitive economy • A high performing & effective organization • A positive community identify & image City Comprehensive Plan Land Use • Housing Element • Economic Development • Natural Environment • Parks, Recreation & Open Space • Regional Centers • Utilities • Capital Facilities City of Tukwila 2025-26 Budget Development 8 Critical Milestones MARCH BUDGET KICK-OFF JULY Dep't Budget Submittals 6 Year Financial Forecast & Town Hall NOVEMBER Public Hearings & Final Budget Adoption APRIL-MAY Community Engagement & Feedback AUGUST Budget Document Prep DECEMBER Final Adopted Budget Distributed APRIL-MAY Policy Review & Council Guidance SEPTEMBER Preliminary Budget Proposal Program Presentations JUNE Capital& Transportation Plans OCTOBER Program Presentations Revised Proposed Budget City of Tukwila 2025-26 Budget Development 9 0) 0) N Budget Development Roles Mayor • Sets Priorities and Goals Council • Establishes strategic goals & priorities to provide framework for budget • Sets policy and adopts the final budget Staff • Informs and develops the budget Community • Financial Sustainability Committee • Boards/Commissions • Community Members ICity of Tukwila 2025-26 Budget Development 10 I Budget Outreach & Engagement Seeking community priorities: • uommunity Survey (ETC Institute - statistically valid sample) • Balancing Act tool • Board/Commissions outreach • Council Town Hall City of Tukwila 2025-26 Budget Development 11 a) W Q) Budget Outreach & Engagement Phase 1- Community Feedback • Program Based Budgeting • Budget Priorities & Trade-offs Phase 3- Boards & Commissions • Program Based Budgeting • Budget Priorities & Trade-offs Phase 2- Statistically Valid Survey • Needs and Priorities Phase 4- City Staff & Council • Program Based Budgeting • Budget Priorities & Trade-offs City of Tukwila 2025-26 Budget Development 12 Foundations of Priority Based Budgeting • • Prioritize services • Do the important things well • Question past patterns of spending • Know the true cost of doing business • Provide transparency of community priorities • Provide transparency of service impact: • Demand accountability for results • Evaluating programs based on their influence in achieving the Strategic Goals Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 30 City of Tukwila 2025-26 Budget Development 13 6) 01 Priority Based Budgeting (PBB) A priority -driven budgeting process that demonstrates how resources are allocated to the programs and services that provide the greatest value to our residents. PBB • Drives alignment between the City Strategic Plan and community priorities • Encourages strategic decision -making regarding funding, adding and/or eliminating programs and services Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 30. City of Tukwila 2025-26 Budget Development 14 Program Alignment & Categorization Aligned & Innovative Strategic & Responsive Services Accessible Mobile Networks Engagement Healthy & Sustainable Community y Connected & Vital Infrastructure Integrated Operations Safe & Resilient "W- City of Tukwila 2025-26 Budget Development 15 6) Q) 00 Program Alignment and Categorization Aligned & Innovative Services E4 Strategic & Responsive Engagement Prioritizes timely and reliable solutions efficiently and effectively across internal programs and services Endeavors to foster an inclusive community characterized by open communication, transparency and equitable access to municipal services for all residents g g Strategically allocates resources to enhance assets and infrastructure and ensures the 88� provision of safe and sustainable utilities for both residential and commercial Connected&Vital communities Infrastructure Accessible Mobile Networks Prioritizes investments in mobility and well -maintained transportation routes throughout the city, encompassing streets, sidewalks, and trails, to facilitate safe, accessible and efficient travel for both residents and visitors City of Tukwila 2025-26 Budget Development 16 Program Alignment and Categorization Healthy & Sustainable Community Integrated Operations Naha owe .. Safe & Resilient Values a healthy environment and exemplifies a well planned and structurally sound city, offering a diverse array of cultural and recreational amenities that supports an active community. Offers comprehensive support in financial management, technology integration, and policy development to various program areas within the city. Committed to fostering a structurally sound community, ensuring both residents and visitors feel safe and secure. City of Tukwila 2025-26 Budget Development 17 0) CO v O Next Steps • Program list refined and programs re -scored as needed • Public outreach to gather budget input & feedback • Department heads prepare budget estimates • Council Budget Workshop — Overview of capital projects • City Council Town Hall • Finance & Administration review department budgets; community feedback evaluated • Mayor presents draft budget to Council ICity of Tukwila 2025-26 Budget Development 18 CITY OF TUKWILA 2025-26 x 1 1 BUDGE DEVELOPMENT PROCESS te41 Ana it The City of opportunity, the community of choice. 72 UPCOMING MEETINGS AND EVENTS MARCH — APRIL 2024 City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in -person and virtual attendance available. MAR 25 MON MAR 26 TUE MAR27 WED MAR 28 THU MAR 29 FRI MAR 30 SAT ➢ Finance and Governance 5:30 PM City Hall — Hazelnut Conference Room Hybrid Meeting ➢Transportation and Infrastructure Services 5:30 PM 6300 Building — Duwamish Conference Room Hybrid Meeting ➢ City Council Committee of the Whole Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting FREE TAX HELP IN -PERSON / ONLINE OR FILE YOUR OWN TAXES Onsite locations are open through April 21! See below for Westfield Southcenter Mall information. Click here for information. APR1 MON APR 2 TUE ➢ Work Session 5:30 PM City Hall Council Chambers Hybrid Meeting ➢ City Council Regular Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting ➢ Library Advisory Board 6:00 PM Hybrid Meeting ➢ Arts Commission 6:00 PM Hybrid Meeting APR 3 WED King County Library System FREE EMPLOYMENT SERVICES AND SKILLS TRAINING PROGRAMS Reasonable accommodation for people with disabilities is available by request. Email access@kcls.org at least 7 days before the event. 1:00 PM - 3:00 PM Tukwila Library 14380 Tukwila Intl Blvd Click here for information. ➢ Planning -Commission Cancelled Give Blood = Save 3 Lives DONATE AND ENTER TO WIN A SCHWINN ADULT ELECTRIC BIKE! It takes 1,000 donors a day to sustain a blood supply for patients in our community. Click here to schedule an appointment. Or call 1-800-398-7888. APR4 THU ➢ Equity and Social Justice Commission 5:30 PM Hybrid Meeting R Recology RE -THINK WASTE: EARTH DAY ART, PHOTO AND VIDEO CONTEST Students can submit video clips, photos, drawings or art with a waste reduction theme for the chance to win prizes up to $350! Submissions due today! Click here for information. Or, email ajarvis@recology.com. APR 5 FRI United Way FREE TAX HELP IN -PERSON / ONLINE OR FILE YOUR OWN TAXES Onsite locations are open through April 21! See below for Westfield Southcenter Mall information. Click here for information. THE MUSEUM OF FLIGHT FREE SENSORY DAY EVENT For adults and families of children, teenagers and young adults with disabilities. Guests will get access to the Museum during off -hours. Pre -registration required. 8:00 AM — 10:00 AM Click here for information. TUKWILA CITY OF OPPORTUNITY SCHOLARSHIP Scholarships will be awarded to individuals enrolled for undergraduate study in community colleges, colleges, trade schools and universities. Applications due today! Click here for information. APR 6 SAT BM Explore - Seattle 11=0 Southside FREE SAVINGS PASS Sign up now and get the mobile pass delivered instantly. You will get savings at attractions, restaurants, retailers and more. Both one- time and repeating offers allow you to save all year long! Click here for information. CITY HALL & 6300 BUILDINGS ARE OPEN TO THE PUBLIC MONDAYS, WEDNESDAYS & THURSDAYS 8:30 AM — 4:00 PM SUMMER CAMP REGISTRATION OPENS APR 1 Join us at Camp Tukwilly and make some memories that will last a lifetime! Camp is for children entering grades K-5 at the beginning of 2024-2025 school year. Click here for information. CALL FOR UTILITY BOX ARTISTS APPLICATIONS DUE APR 26 We are seeking artists to create artwork for this year's Utility Box Art Program. Artists will receive a budget of up to $1,000. Click here for information. RE -THINK WASTE: EARTH DAY ART, PHOTO & VIDEO CONTEST FOR STUDENTS SUBMISSIONS DUE MAR 29 Submit your creative work to win prizes up to $350. Click here for information. Or, email ajarvis@recology.com. TUKWILA CITY OF OPPORTUNITY SCHOLARSHIP APPLICATIONS DUE MAR 31 Scholarships will be awarded to individuals enrolled for undergraduate study in community colleges, colleges, trade schools and universities. Click here for information. NEIGHBORHOOD WATCH GROUP HELP Police Community Engagement Coordinator can help to create a neighborhood watch group in your neighborhood and apartments. Click here to email Brooke Lamothe. FREE CRIME PREVENTION SURVEY FOR BUSINESSES TO ENHANCE SECURITY Police Community Engagement Coordinator will visit your business to conduct a security assessment and recommend making your business more secure. Allow up to 2 weeks for an appointment date confirmation. Click here to make an appointment. FOOD BANK OPENS: TUESDAYS, THURSDAYS AND SATURDAYS 10:00 AM — 2:30 PM 3118 S 140TH ST, TUKWILA T� ire. VOLUNTEERS — In need of volunteers for food packaging or food distributions. To volunteer, click here to sign up. DONORS — Please donate at tukwilapantry.org/please-donate/. Donations can be dropped off on Tuesday -Saturday from 8 AM —11 AM or by appointment. Click here for a current list of items in need. STILL WATERS SNACK PACK NEEDS YOUR DONATIONS AND VOLUNTEER HELP! SnackPack distributes food bags on Fridays to Tukwila students in need. Click here for the Snack Pack list. VOLUNTEERS NEEDED ON WEDNESDAYS. Pack snacks every Wednesday at 9:30 AM. To volunteer, email Stillwatersfamilyservices@gmail.com. To deliver food, click here to register with Tukwila School District. Please donate to feed our Tukwila kids. Click here to donate online or mail checks to Still Waters, PO Box 88984, Tukwila WA 98138. United Way GET FREE TAX HELP IN -PERSON / ONLINE OR FILE YOUR OWN TAXES Free tax filing assistance if you make less than $80,000 a year (or $96,000 for non -single filers). In -person locations will run through Apr 21. Please arrive no later than 45 minutes BEFORE closing time. First come, first serve. Click here for information. SOUTHCENTER MALL (NEAR SEARS) 11:00 AM -7:00 PM THURSDAYS, FRIDAYS, SATURDAYS AND SUNDAYS K ! N G COUNTY LIBRARY SYSTEM FREE ONLINE TUTORING AND HOMEWORK HELP FOR GRADES K THRU 12 Use a computer, tablet, smartphone or home phone to connect with tutors by phone or on Zoom. Click here for information. FUN ACTIVITIES AND OTHER EVENTS AT TUKWILA LIBRARY Tukwila Library offers many resources and services. Click here for information. FREE EMPLOYMENT SERVICES AND SKILLS TRAINING PROGRAMS This is a monthly event hosted by Puget Sound Training Center. Reasonable accommodation for people with disabilities is available by request. Click here for information. 73 Tentative Agenda Schedule MEETING 1 — REGULAR MEETING 2 — MEETING 3 — C.O.W. REGULAR MEETING 4 — C.O.W. MARCH 4 See below links for the agenda packets to view the agenda items: March 4, 2024 Work Session March 4, 2024 Regular Meeting MARCH 11 See below links for the agenda packets to view the agenda items: March 11, 2024 Committee of the Whole Meeting MARCH 18 See below links for the agenda packets to view the agenda items: March 18, 2024 Work Session March 18, 2024 Regular Meeting MARCH 25 See below links for the agenda packets to view the agenda items: March 25, 2024 Committee of the Whole Meeting MEETING 1— REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. APRIL 1 APRIL 8 SPECIAL ISSUES - An ordinance updating the City's Tax Codes. - Resolution revising the City Council rules of procedure. APRIL 15 WORK SESSION - Update on Annual Overlay Program. - Update on Neighborhood Traffic Calming Program. - Introduction to Transportation Improvement Program. REGULAR MEETING PRESENTATION - Tourism presentation. - State of the City Address. UNFINISHED BUSINESS - An ordinance updating the City's Tax Codes. - Resolution revising the City Council rules of procedure. NEW BUSINESS Authorize the Mayor to sign a settlement participation form through the One Washington Memorandum of Understanding between Washington municipalities to accept allocation for Opioid Funds received from entities within the pharmaceutical supply plan. APRIL 22 PUBLIC HEARING An ordinance amending rezone regulations and appeal body. SPECIAL ISSUES An ordinance amending rezone regulations and appeal body. Special Meeting to follow Committee of the Whole Meeting. WORK SESSION Robert's Rules Training. REGULAR MEETING APPOINTMENTS / REAPPOINTMENTS Appointments and reappointments to Boards and Commissions. CONSENT AGENDA - Authorize the Mayor to sign a grant agreement with the Washington State Department of Transportation (WSDOT) through the National Highway System Asset Management Program for Orillia Road South pavement repairs and overlay, in the amount of $1,309,000.00. - Authorize the Mayor to sign a grant agreement with the Washington State Department of Transportation (WSDOT) through the National Highway System Asset Management Program for Interurban Avenue South pavement repairs and overlay, in the amount of $4,958,000.00. - Authorize the Mayor to sign a grant agreement with the Washington State Department of Transportation (WSDOT) through the National Highway System Asset Management Program for Boeing Access Road pavement repairs and overlay, in the amount of $3,990,000.00. - Authorize the Mayor to sign a grant agreement for waste reduction and recycling education, in the amount of $50,000.00. - Authorize the Mayor to sign a contract for a commercial organics collection and diversion outreach project, in the amount of $100,000.00. - Authorize the purchase of LED King Lumineers, in the amount of $104,176.62. - Authorize the Mayor to sign a grant agreement with the Washington State Department of Commerce for the Washington Electric Vehicle Charging Program (WAEVCP), in the amount of $46,000.00. - Award a bid and authorize the Mayor to sign a contract for the Stormwater Outfalls WQ Retrofit project, in the amount of $850,000.00. UNFINISHED BUSINESS - Authorize the Mayor to sign an Interlocal Agreement with the Cities of Burien and Maple Valley for an organics project. - Resolution authorizing South King Housing and Homelessness Partners' Housing Projects using funds contributed by the City to the Housing Capital Fund. - Public Works Operations Facility, Phase 2 Update. - Approve 1.0 FTE (full-time employee) for the City Clerk's Office for staffing of Public Records Requests, to be included in the year-end budget amendment. 74