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Home My WebLink AboutReg 2025-12-01 Item 6B - Contract Amendment #1 - Tiny Homes Construction with Low Income Housing Institute (LIHI) for $94,000 (King County Grant)COUNCIL AGENDA SYNOPSIS Initialr Meeting Date Prepared by Mayor's review Council review 12/1/25 BJM ITEM INFORMATION ITEM No. 6.B. STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 12/1/25 AGENDA ITEM TITLE Amendment to Grant Award (25-272) with Low Income Housing (LIHI) for the project at Church by the Side of the Road CATEGORY Discussion Mtg Date 12/1/25 Motion Mtg Date 12/1/25 ❑ Resolution Mtg Date E Ordinance Mtg Date E Bid Award Mtg Date E Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ]B Mayor ❑ .Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIG SPONSOR'S SUMMARY On September 22, 2025 the City Council authorized the Mayor to execute a grant agreement award with Low Income Housing Institute (LIHI) for the construction of 30- tiny homes at Church by the Side of the Road on Tukwila International Blvd. The tiny home village will serve unhoused individuals, and the project is fully funded with a grant from King County. The grant award needs to increased to account for additional project costs. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. DATE: COMMITTEE CHAIR: (� Planning & Community Dev. ❑ Planning Comm. RECOMMENDATIONS: SPONSOR/ADMIN. N/A COMMITTEE N/A COST IMPACT I FUND SOURCE EXPENDITURE REQUIRED $671,722 AMOUNT BUDGETED $0 APPROPRIATION REQUIRED $0 Fund Source: KING COUNTY GRANT Comments: N/A MTG. DATE RECORD OF COUNCIL ACTION 12/1/25 MTG. DATE ATTACHMENTS 12/1/25 Informational Memorandum dated November 20, 2025 Draft Contract Amendment Link to Executed Agreement (Contract 25-272) Link to September 9, 2025, City Council Packet Item 41 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Brandon Miles, Director of Strategic Initiatives and Government Relations CC: Thomas McLeod DATE: November 20, 2025 SUBJECT: Church by the Side of the Road Tiny Home Village Amendment to Grant Award (No.25-272), Low Income Housing Institute ISSUE Authorize the Mayor to execute an amendment to City of Tukwila Contract #25-272 to increase the grant award from $577,722 to $671,722. BACKGROUND On September 22, 2025 the City Council authorized the Mayor to execute a grant agreement award with Low Income Housing Institute (LIHI) for the construction of 30-tiny homes at Church by the Side of the Road on Tukwila International Blvd. The tiny home village will serve unhoused individuals, and the project is fully funded with a grant from King County. In the memo to City Council, dated September 9, 2025 the total construction cost for the tiny home village was proposed to be $1,096,232. Through a combination of earlier grants, prepayments, and credits, contract #25-272 had a not to exceed of $577,722. Staff is requesting that the amount be increased by $94,000. LIHI was success in obtaining $650,000 in the 2026 King County budget for the operations of the tiny home village. DISCUSSION. The increase in the grant award is due to the following: 1. Higher than expected permit fees from Water 125 and Valley View: $19,000. 2. Moving from overhead to underground for the electrical service line: $25,000 3. Installation of pedestrian safety improvements along Military: $50,000 The installation of the pedestrian safety improvements is being done at the request of the City of SeaTac, which controls this portion of Military Road S. The City has sufficient funds in the grant with King County and we have requested an amendment to the grant agreement to account for the additional costs. 42 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The total estimated cost to establish the tiny home village is now $1,190,231.75 To date, $505,390 in prepayments and credits have been applied through existing contracts, leaving $671,741.42 in remaining costs, which will be funded by the King County grant. Cost Item Amount Funding Source Pre -purchase of homes, hygiene trailer, etc. (Contract State Commerce 25-202) ($387,353) Grant Delivery of homes (Contract 25-202) ($5,462) King County Grant Survey, engineering, planning (Contract 25-238) ($59,575) King County Grant Credit (Contract 25-202) ($66,120) N/A Total Pre -Payments & Credits ($505,390) — Original Contract Amount $577,722 Proposed Amendment #1 $94,000 Revised New Total: $671,722 King County Grant RECOMMENDATION Authorize the Mayor to execute an amendment to contract #25-272 to increase the total not to exceed to $671,722. ATTACHMENTS • Proposed Amendment • Link to Original, Executed Agreement (Contract 25-272) • Link to September 9, 2025, City Council Packet https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/2025 AGENDAS/2025 Agenda Packets/2025 COUNCIL - Agenda Packets/12-01-25 Regular/LIHI/Informational Memorandum (Info Memo).docx 43 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: CONTRACT FOR SERVICES Amendment #1 Between the City of Tukwila and Low Income Housing Institute (LIHI) That portion of Contract No. 25-272 between the City of Tukwila and Low Income Housing Institute (LIHI) is hereby amended as follows: Compensation and Method of Payment. The total grant award in section 2 of the agreement is increased from $577,722 to $671,722. Exhibit B: Table 1 in exhibit "B" of the original Agreement is replaced with the new table as shown below. Low Income Housing Institute - THV Budget.. - Annual Spend. Projections Site Name: Church By the Side of the Road Site Address: Jurisdiction: Date: Site SF: Tiny Houses: 14820 MilitaryRd S Tukwila 11/19/2025 23,000 30 01-000 Budget Item Pre -Construction Budget '$ 35,.06808 2025 Spend $ �: 35,D00.08 2026:Spend $, - Notes 01-100 Feasibility&Startup $ 8,000.90 5 8,000.00 $ - Site survey 01-200 Design $ 11,000.00 5 11,000.00 $ - Site planner and civil engineer 01-300 Permitting $ 15,000.90 S 15,000.00 $ - Pablioworks perm9t and aver -the -counter MEP peCmito 01-400 Community Outreach $ 1,000.00 5 1,000.00 $ - 02-000" Corrs#ruction 018,24 ,00 $ i787,245,00 0ii1Y.00 02-100 Mobil zati on, Site Services, Rent $ 5,500.00 S 4,500.00 $ 1,000 00 Garbage, sanitary services, and temporary fencing 02-200 Earthwork $ 150,000.00 S 120,000.03 $ 30,000 00 Grading, gravel, utility trenching, and ADA asphalt 02-300 Demolition $ - $ - 02-400 Utilities $ 190,000.00. 5 130,000.00 $ 60,000,00 Electrical, water,: and side sewer 02-500. Tiny Houses and Offices $ 301,000.00 S 301,000.00 $ - (30) tiny homes and (3) offices plus delivery and finishing: 02-600 Common Buildings $ 145,000.00. 5 145,000.00 $ - Kitchen tent,4-bay hygiene trailer,. laundry roam, and security office 02-700`. :Site Furnishing & Other ' $ 100,00000' S 60,000.03 $ 40,00000 Decking, fencing, security system and outdoor furnishings 02-800 Miscellaneous Consiru Gino Costs. $ $ 02-900 Construction Contingency [1] $ 26,745.00 S 26,745.00 $ - 3% 03-008 LIHI Project Management $ 142,986,75 $ 129,000.00i $ 10,98675 03-100 Protect Management Fee[21 $ 14298675 S 129,000.00 $ 13:98675 153f, 04-000. Change Orders $ 04,000.00 $ 88,000.00i $ 5£t00.00' 04-100 Additonal Permit Fees $ 19,00000 S 19.000.03 $ - Higher than eicpected sewer connectionfees 04-200: Underground Electrical $ . 25,000.90 S 20.000.00 $ 5:000e0 SeaTac requiring underground electrical. Assumed overhead. 04-300. SeaTac Cones & Sigrage. $ 50,000.00 S 50.000.00 $ - SeaTac requiring new pedestrian protections on Military Rd. . ........... 3)EK%E.T$ .;'l0tx>2'$1.75 $ 1,040,245.00 $ 149966.79 Cost. Per SF: $ 51.75 Cost Per Tiny House: $ 39,694.39 44 Page 1 of 2 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Low Income Housing Institute - THV Budget - Annual Spend Projections Site Name: Church By the Side of the Road Site Address: 14820 Military Rd 5 Jurisdiction: Tukwila Date: if/f9f202e Site SF: 23;000 Tiny Houses: 30 Agreement Number: LOW INCOME HOUSING 8 INSTITUTE Change Order8 Desw,riptton Cot .. Ndigs 1 Early purchase of (30) nny houses, (3) staff offices, and (1) 4-bay hygiene trailer $ (337,353.00) Amount equal to Invoice #2 provided to Tukwila on 6/25/25. 2 Delivery of (30) tiny houses, (3) staff offices and (1) 4-bay hygiene trailer $ (5,462.33) Amount equal to Invoice #3 provided to Tukwila on 7/16/25. 3 LIHI donation of 25% of tiny homes. $ (66,120.00)S2,000 credit per house (30) with 10.2% sales tax. 4 Village Design B Permitting Contract $ (59,575.00) Contract dated 7/16/25. Amendment A dated 6/27/25, FUNDS TO COMPLETE: $ 671,721.42 [1] 02-900 Construction Contingency covers all required unforeseen construction labor and materials. This may be triggered by unforeseen sit conditions design changes, etc: [2] 03-100 Project Management Fee covers all direct LIHI management and labor hours reimbursable costs, and overhead. All other provisions of the contract shall remain in full force and effect. Dated this CITY OF TUKWILA day of , 2025. Thomas McLeod, Mayor ATTEST/AUTHENTICATED: Andy Youn, City Clerk APPROVED AS TO FORM: Office of the City Attorney CONTRACTOR: By: Printed Name: Title: Page 2 of 2 45