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HomeMy WebLinkAboutSpecial 2026-03-23 Item 2G - Grant Agreement - CBSR Tiny House Village Start-Up & Operations with Low Income Housing Institute (LIHI) (2)City of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 4.B. & Spec 2.G. Agenda Item Sponsor Legislative History Recommended Motion Grant Agreement with Low Income Housing Institute (LIHI) Brandon Miles, Director March 23, 2026 Committee of the Whole March 23, 2026 Special Meeting Consent Agenda ❑ Discussion Only 0 Action Requested MOVE TO Authorize the Mayor to execute a grant agreement in substantial form, with a not to exceed amount of $200,000, with Low Income Housing Institute (LIHI) for the start-up, commissioning, and initial operations of the tiny home village at Church by the Side of the Road, with the final terms to be negotiated by the Mayor and the form approved by the City Attorney. EXECUTIVE SUMMARY A grant agreement with Low Income Housing Institute (LIHI) for start-up, commissioning, and initial operations costs for the tiny home village at Church by the Side of the Road (CBSR) DISCUSSION The City of Tukwila has partnered with LIHI and CBSR to stand up a 40 unit tiny home village at CBSR's property on Tukwila International Blvd. Using funds from King County and the Washington State Department of Commerce, the City funded the capital and development of the village. No city general funds have been used for the project. The King County funds were part of a grant to respond to the growing needs of asylum seekers and the general homelessness population in south King County. Besides the tiny home village, the City used the funds on congregate sheltering, assisting with rent payments, paying for the large FEMA style tent that was at the Riverton Park United Methodist Church, paying for the City's consulting services (i2 Strategies), and to support food security within the city. We are currently forecasting an underspend of the King County grant funds between $165,000 and $200,000. The underspend was due to the City keeping funds in reserve in case there was large influx of asylum seekers at the end of 2025 and to keep funds in reserve in case there were unforeseen costs with the development of the tiny home village. The reason there is a range is between the City is still closing the books on some of the last remaining costs associated with the King County grant. City Administration is proposing to provide any remaining funds to LIHI to assist with startup, commissioning, and initial operation costs of the tiny home village. If the funds are not committed by the end of March, the City will be required to return the funds to King County. LIHI will use the City funds in concert with funds provided by King County to operate the tiny home village. City Administration is not recommending the City provide additional funds to LIHI beyond the pass -through funds from the King County grant. 36 The agreement is draft and staff is requesting that it be approved in substantial form with the final agreement being approved by the Mayor and City Attorney. FINANCIAL IMPACT implications of work subject to review by the City Attorney Complete for all items with fiscal Disclaimer: Final terms and scope ❑ Expenditure - Budgeted ❑ Expenditure - Unbudgeted Expenditures: Fund Source: $165,000 to $200,000 Revenues(if applicable): King County South King County Homelessness Grant © Expenditure - Grant -Funded ❑ Revenue — One -Time (e.g. asset sale, surplus equipment) ❑ Revenue - Ongoing $0 Contractor (if applicable) Low Income Housing Institute (LIHI) Scope of Work The City of Tukwila shall provide an initial onetime payment to assist with the start up on of the tiny home village and to provide sufficient funds to support initial operations. Amount $165,000 to $200,000 Duration March, 2026 through August, 2026 Additional Comments: advance in order to meet our county grant requirements. In the even the City will claw back the funds and return them to King County. The City will provide the funds in the contractor does not perform, ATTACHMENTS • Award of Grant Funds Agreement C:\Users\andy-y\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\DWVWM4YX\Agenda Bill LIHL.docx 37 City ^�� �'x�� of Tukwila AWARD OF GRANT FUNDS Contract Number: This Agreement is entered into by and between the City of Tuhvv|a. VVaehinoton, a non -charter optional municipal code city hereinafter referred toae"the City," and Low |noorna Housing Institute /L|H|\. a 501(c)3 orgonizodon, hereinafter referred to as "Grantee," whose principal office is located at 1253 G. Jackson GL, Suite A, Gaott|e. WA (collectively, the City and Grantee shall be referred to as "the Parties"). WHEREAS, on November 2, 2015, King County Executive C)ovv Constantine issued o Local Proclamation ofEmergency declaring an emergency regarding the growing homelessness numbers and overall need for housing within King County; and WHEREAS, the Local Proclamation of Emergency stated that King County would continue to work with King County cities to address homelessness; and WHEREAS, in2024.the City experienceda significantinflux ofunhousedasylum seekers, which strained local services, including area shelters for the unhoused; and WHEREAS, King County awarded the City $2 rniUkzn in funding through the "South hJn8 County Homelessness Fund" to expand shelter for the unhoused in south King County; and WHEREAS, Church by the Side of the Road located in the City of Tukwila has expressed a desire to site a tiny home village on its property on Tukwila International Blvd; and WHEREAS, as part nfthe Cit/o grant application to King County for funding through the South King County Homelessness Fund, the City identified that a subrecipient for part of the funds would be an entity that would establish a tiny home village at Church by the Side of the Road; and WHEREAS, Low Income Housing Institute has extensive knowledgeinestablishing and operating tiny home villages; and WHEREAS, the City previously provided a grant to Low Income Housing Institute to construct and develop the tiny home village at Church by the Side the Road; and WHEREAS, Low Income Housing Institute will open the tiny home village in the spring of 2026; and WHEREAS. the City has additional funds available from South King County Honne|eaanoea Fund awarded to the City from King County and desires to assist Grantee in startup and operating costsassociated with the tiny home village; WHEREAS, the City desires huaward aportion ofthe grant funds tothe Grantee hu provideaupport pursuant to certain terms and conditions set forth herein; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the Parties hereto agree as follows: 'Scope and Schedule of Services to be Performed by Grantee. The Grantee shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Grantee shall at all times comply with all Federal, State, and 38 local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Grantee shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Grant Award. The City shall award the Grantee for services rendered according to the Grantee Budget set forth on Exhibit B attached hereto and incorporated herein by this reference. The total grant award shall not exceed [TBD1 3. Grantee Budget. The Grantee shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement and Exhibit B. The Grantee shall request prior approval from the City whenever the Grantee desires to amend its budget in any way. 4. Duration of Agreement_ This Agreement shall be in full force and effect for a period commencing on March 24, 2026 and ending August 31, 2026, unless sooner terminated under the provisions hereinafter specified. 5. Ownership of Work Product. All documents, drawings, specifications and other materials produced by the Grantee in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Grantee shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Grantee's endeavors. The Grantee shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Independent Agent. Grantee and City agree that Grantee is an independent entity with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Grantee nor any employee of Grantee shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Grantee, or any employee of the Grantee. 7. Indemnification. The Grantee shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Grantee and the City, its officers, officials, employees, and volunteers, the Grantee's liability hereunder shall be only to the extent of the Grantee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Grantee's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the Parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8. Insurance. The Grantee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Grantee, their agents, representatives, employees or subrecipients. Grantee's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Grantee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Grantee shall obtain insurance of the types and with the limits 2 39 described below: 1. Automobile Liability. Insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability. Insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products -completed operations aggregate limit. Commercial General Liability insurance shall be as least at broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent Grantees, products -completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide a per project general aggregate limit using ISO form CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the Grantee's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing at least as broad coverage. 3. Workers' Compensation. Coverage as required by the Industrial Insurance laws of the State of Washington. B. City Full Availability of Grantee Limits. If the Grantee maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Grantee, irrespective of whether such limits maintained by the Grantee are greater than those required by this Contract or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Grantee. C. Other Insurance Provision. The Grantee's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain, that they shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Grantee's insurance and shall not contribute with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. E. Verification of Coverage. Grantee shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Grantee before commencement of the work. Upon request by the City, the Contractor shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Sub -Recipients. The Grantee shall not use any subcontractor to execute the scope of this Agreement. G. Notice of Cancellation. The Grantee shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. H. Failure to Maintain Insurance. Failure on the part of the Grantee to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Grantee to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection 3 40 UlernvviUl. with any sums so expended to be repaid to the City on dnrnond, orskthe sole discretion ofthe City, offset against funds due the Grantee from the City. 9. Record Keeping and Reportinq. A. The Grantee shall maintain accounts and recorde, including pareonne, proparty, financial and prOg[8OO[O8tiC records which SUffiCi8OUy and properly [8f8Ct all direct and indirect COStS of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14and bythe City. 10'Auudits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 11.lemnUmstiorl. This Agreement may at any time be terminated by the City giving to the Grantee thirty /30\ days written notice of the Cit/n intention to terminate the same. Failure to provide emn/iooe or products on schedule may result in contract termination. If this Aonoarnont is terminated by the City for Grantee's failure to perform, the City shall be entitled to reimbursement of any unexpended Grant Award amounts. If the Grantee's insurance onvonaga is canceled for any reason, the City nho|| have the right to terminate this Agreement immediately. 12.Discriminatiun Prohibited. The Consultant, with regard to the work performed by it under this Au[e8[D8Ot' will not diSCFDliO8t8 UD the QnOuOdS Of n8&8. religion, C[8gd, CO|O[, D@UOD@| UhgiD. @g8. veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disobi|ih/, or any other protected class status under state or federal |avv, in the selection and retention of employees or procurement of materials or supplies. 13.Assignment and Subcontract. The Grantee shall not assign orsubcontract any portion ofthe services contemplated by this Agreement without the written consent of the City. 14`Entire Agreement: Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the Qb/ and the Grantee and supersedes all prior negotiations, [8pFHSRDt8dODS. or @0Fe8DleOtS VV[iUBO or O[8|. NO 80eDdnl8Dt or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the Parties. 15'SevemmbHity and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other prOViSiOOS Sh@|| [8Dl@iO fully SDfO[C88b|e. The prOViSiOOS of this Agne8OOeOL. which bytheir sense and context are reasonably intended tOsurvive the completion, expiration O[cancellation Ofthis Agreement, shall survive termination Ofthis Agreement. 16. Notices.Noticesto the City ofTukwila shall bosent to the following address: City Clerk, City of Tukwila 820O8outhconterBlvd. Tukwila, Washington 98188 Notices tothe Grantee shall besent to the address provided hvthe Grantee upon the signature line below. 17'Am»m|immbWa Law: Venue: w Fees. This Agreement shall be governed by and construed in @CCOnd@O&e with the |@vvS Of the State of \8/8ShiDgU]D. In the event any Suit, 8dbit[@tiOO, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King Counh/, Washington. The prevailing party in any such action shall bnentitled toits @ttOrney'nfees and costs Ofsuit. 4 41 18. Compliance with Laws. The Grantee shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the actions taken in use of the grant funds rendered under this Agreement. 19. Compliance with King County Grant Agreement` The City is receiving reimbursement for the work to be performed under this Agreement through a grant from King County, (City of Tukwila Contract No. 25-098). A copy of said grant agreement is attached as Exhibit C. As a subgrantee of the King County grant, the Grantee shall comply with all requirements of Exhibit C that are applicable to the work outlined in the Scope of Services. The Grantee shall provide the City with all documentation and information required for the City to obtain reimbursement from King County. DATED this day of , 20 CITY OF TUKWILA Thomas McLeod, Mayor ATTEST/AUTHENTICATED: Andy Youn-Barnett, City Clerk APPROVED AS TO FORM: Office of the City Attorney GRANTEE: By: Printed Name: Title: Address: 42 Exhibit "A" Scope of Services Tiny Home Village Grantee has previously received funding from City/Grantor to develop and construct a tiny home village (the "Project"). Substantial construction of the tiny home village was completed on March 10, 2026. Grantee now needs to start to accept referrals, move people into the tiny home village, provide adequate staffing, and complete other initial opening activities. Grantee shall provide the following activities on the Project site: 1. Hire staff to operate and manage the tiny home village. 2. Purchase personal items for the tiny home villages that residents might need. 3. Set up utility and other services for the tiny home village. 4. Begin to accept referrals, subject to any restrictions found in the Memorandum of Agreement between the City of Tukwila, Grantee, and Church by the Side of the Road dated @. 5. Pay for any administrative costs associated with operating and managing the tiny home village. 6 43 6. Operate the tiny home village in a manner consistent with the Memorandum of Agreement between the City of Tukwila, Grantee, and Church by the Side of the Road dated a@. 7. Complete any minor repairs for the tiny home village. 8. Pay rent to the Church by the Side of the Road. 44 Exhibit "B1" LIHI Budget for Grant Award The City of Tukwila shall provide an initial onetime payment of $@@@@ to assist with the start up on of the tiny home village and to provide sufficient funds to support initial operations for the Project. Grantee shall provide the City, on a monthly basis, a report that outlines the following: 1. Total monthly expenditures and costs associated with the operation of the tiny home village. 2. Total staff hours worked by each staff position at the tiny home village. 3. Number of residents at the village and total occupancy rate (number of occupied units divided by the total number of units on the site). 4. Funding narrative outlining other funds used to support the site. 5. Copies of any reports provided to other government entities, such as the King County Regional Homelessness Authority, for the tiny home village. 6. Narrative of activities on the site, including success and challenges with the site operations. The monthly reports shall start in April of 2026 and run through August, 2026. The reports shall be sent to Brandon.Miles(a�Tukwilawa.gov. Claw Back Provision In the event Grantee ceases to operate the tiny home village, the City shall be entitled to reimbursement of the full amount of the grant award outlined in this Exhibit B2 and outlined in Section 2 of this Agreement. 8 45 Exhibit "C" Copy of grant agreement between the City of Tukwila and King County (D25-098) 46