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HomeMy WebLinkAboutCity Council Committees - Kent City Council - 07/28/2020 Approved Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes July 28, 2020 Date: July 28, 2020 Time: 4:02 p.m. Place: THIS IS A REMOTE MEETING 1. CALL TO ORDER Council President Troutner called the meeting to order. 2. ROLL CALL Attendee Name Title Status Arrived Toni Troutner Council President Present Bill Boyce Councilmember Present Brenda Fincher Councilmember Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present Zandria Michaud Councilmember Present Les Thomas Councilmember Present Dana Ralph Mayor Present 3. AGENDA APPROVAL No changes. 4. DEPARTMENT PRESENTATIONS A. South 228th Street UPRR Grade Separation RailPros Field Services Amendment #2 - Authorize Engineering Supervisor, Mark Madfai provided details on the South 228th Street UPRR Grade Separation RailPros Field Services Amendment for railroad flagging. MOTION: Authorize the Mayor to sign an amendment to the Goods and Services Agreement with RailPros Field Services, Inc. in an amount not to exceed $180,000, for the purpose of railroad flagging, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 8/4/2020 5:00 PM B. INFO ONLY: Small Business Grant Program Economic Development Officer, Bill Ellis reviewed the eligibility criteria, Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes July 28, 2020 Kent, Washington Page 2 of 5 including the relaxation of requirements and the extension of the application deadline to August 9th for the CARES Act Funds Small Business Emergency Relief program. Ellis advised that the application intake extension will not impact target date for awards being given out. After the deadline, the City will approve Craft3's reviewer’s selection method prior to closure. Ellis expressed appreciation for the community helpers and their work getting the word out and assisting businesses with applications. Ellis advised: • 20 total applications received • 87 appeared eligible • #1 reason for ineligibility - Received other assistance (primarily federal) • 46 of applicants indicated they received technical assistance in making application • 50 indicated a language preference other than English The City is putting forward an additional $500,000 in CARES Act dollars from Department of Commerce* to increase award size amount • New award size amounts to be determined and announced by tomorrow afternoon; grant may remain competitive selection depending on total of eligible businesses submit applications • As Covid-19 interruptions and enforced partial closures extend longer it’s appropriate to increase award (expense reimbursement) sizes C. INFO ONLY: CARES Act Community Development Block Grant (CDBG-CV) Overview Human Services Planner, Dinah Wilson advised that on March 27, 2020, the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as the CARES Act. •The bill allocates $670,541 in supplemental CDBG funds to the City of Kent for grants to prevent, prepare for, and respond to the coronavirus. •The City added $184,948 in unallocated CDBG funds to be used for COVID- 19-related activities. •This allows for a total investment of $721,381 after $134,108 is deducted from Planning & Administration activities. The City will use a process like how it allocates regular CDBG funds - contracting with non-profits (HUD uses the term “sub-recipients”) to execute eligible activities. Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes July 28, 2020 Kent, Washington Page 3 of 5 CDBG-CV grants fund public service activities and micro-enterprise projects that prevent, prepare for, and respond to the coronavirus. All CDBG funded activities must benefit low/moderate-income (LMI) persons. Human Services Division staff surveyed non-profits, the Cultural Communities Board, Kent Cultural Diversity Initiative Group, residents and stakeholders and asked them to identify pressing COVID-related community needs. HSD developed a list of activities (e.g., food, rental/utility assistance, homeless Services, healthcare services, micro-enterprise, trauma counseling, COVID-related supplies, digital services, etc.). HSD provided $2,000 in CDBG funds to Economic Development to conduct a Kent COVID-19 business impact survey. HSD and the Economic & Community Development Department coordinated the planning process, and the survey was conducted by Community Attributes Inc. HSD held a public hearing to receive comments on which activities to prioritize for CDBG-CV investment HSD released a Notice of Funding Availability and CDBG-CV application for non-profits to apply for funds. A Review Panel of Kent residents and City staff reviewed the applications and submitted 21 funding recommendations to the Human Services Commission. Human Services Commission approved recommendations, which will be submitted to City Council for final approval and to authorize the mayor to sign the CDBG-CV funding agreement and certifications. D. Use of CARES Grant Funding to Update Technology – Authorize Technical Services Manager, James Endicott provided the Council with details on the use of CARES Grant funding to update technology. Councilmembers expressed their support of the use funds to update the City's computer fleet from desktop computers to laptops. Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes July 28, 2020 Kent, Washington Page 4 of 5 MOTION: Authorize the IT Department to immediately purchase 500 Microsoft laptops, tablets, and associated accessories utilizing CARES Act funding through a cooperative purchasing agreement administered by NASPO ValuePoint and entered into between Microsoft and the State of Minnesota as the Lead Agency; amend the budget as may be necessary to authorize that purchase using grant funds; and authorize future purchases of laptops, tablets, and associated accessories through that same cooperative purchasing agreement if those purchases can be made within the City’s established budgets and during the term of the master agreement, which is currently in effect through July 31, 2021, subject to final terms and conditions acceptable to the IT Director and City Attorney. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 8/4/2020 5:00 PM E. Payment of Bills - Approve MOTION: Approve the Payment of Bills received through July 15, 2020 and paid on July 15, 2020 and approve the checks issued for payroll July 1, 2020 - July 15, 2020 and paid on July 20, 2020, all audited by the Committee of the Whole on July 28, 2020. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 8/4/2020 5:00 PM F. INFO ONLY: 2020-2021 Property Insurance Renewal Risk Manager, Chris Hills provided an overview of the property insurance renewal and also provided an overview of the recent premium history. Hills advised of past events and how those events impacted the rates. Despite the increase in premium and the decrease in Earthquake/Flood coverage, our overall cost of property insurance is only slightly greater for the upcoming year than what we paid for similar limits in the 2013-2014 policy period ($569K v. $525K), which was 7 years ago. 5. ADJOURNMENT Council President Troutner adjourned the meeting. Meeting ended at 4:57 p.m. Kimberley A. Komoto Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes July 28, 2020 Kent, Washington Page 5 of 5 City Clerk RailPros Contract Amendment #2 S. 228th St. UPRR Grade Separation Project CARES Act Funds Update Small Business Emergency Relief Grant Bill Ellis, Chief Economic Development Officer July 28th, 2020 Eligibility Criteria: Relaxation of Requirements and Application Extension To be eligible, businesses must: •Be a for-profit business physically located within the Kent city limits •Be negatively impacted by COVID-19 closures and interruptions •Not received other forms of federal or state Covid-19 aid •Have no more than 15 full-time employees •Have been in business for at least three (2) two years as of June 30, 2020 •Have gross annual revenues of $1.5 million or less •Have a current City of Kent Business License and not be delinquent in payment of taxes or fees owned to the City of Kent as of December 31, 2019. (It’s not too late to get a City of Kent business license –our team can process license applications in about 24 hours.) •If closed due to government mandates, the business intends to reopen when allowed under Washington’s Safe Start plan •See KentWA.gov/BusinessGrant for full list of eligibility requirements Apply online now at KentWA.gov/Business Grant before Sunday, August 9 at 8 p.m. Small Business Grants Work Stream Updating -Timeline Follow -UpOutreachApplication intake Decide grant awards Notifi- cations, forms Application materials Accounce- ment Design grant program Sign & disburse funds Late July, Early AugustEarly June Mid -July Opened July 13th Extending application intake from July 27 th until August 9th Mid -August Application Intake Extension Will Not Impact Target Date for Awards Being Given Out October City to Approve Craft3’s Reviewers Selection Method Prior to Closure Applications Statistics Thanks to Community Helpers •220 total applications received through 9:45am this morning •87 appeared eligible (short glance, not full diagnostic) •Received other assistance (primarily federal) #1 reason for ineligibility •46 of applicants indicated they received technical assistance in making application •50 indicated a language preference other than English And many other helpers unaffiliated! Increasing Grant Award Size •City putting forward an additional $500,000 in CARES Act dollars from Department of Commerce* to increase award size amount •New award size amounts to be determined and announced by tomorrow afternoon; grant may remain competitive selection depending on total of eligible businesses submit applications •As Covid-19 interruptions and enforced partial closures extend longer it’s appropriate to increase award (expense reimbursement) sizes *(on top of $1 million already allocated from Department and $200,000 from King County) Thank you. WEllis@KentWA.gov | 206-573-6890 806 Critically Impacted 9,106 15% ©2020 Esri 135,113 Employee/Residential Population Ratio (per 100 44 Total Residential Population: Employeesby SIC Codes Number Percent Number PercentBusinesses 1.2%471 0.8%Construction 332 7.6%3,669 6.2% 53Agriculture & Mining 6.1%9,898 16.6%Transportation 256 5.9%3,849 6.5% 264Manufacturing 0.9%245 0.4%Utility 17 0.4%408 0.7% 39Communication 7.4%8,524 14.3%324Wholesale Trade 21.9%13,386 22.5% Home Improvement 77 1.8%1,224 2.1% 956Retail Trade Summary 0.9%674 1.1%Food Stores 109 2.5%1,932 3.2% 38General Merchandise Stores 2.7%1,020 1.7%Apparel & Accessory Stores 19 0.4%406 0.7% 117Auto Dealers, Gas Stations, Auto Aftermarket 1.8%1,068 1.8%Eating & Drinking Places 324 7.4%3,742 6.3% 80Furniture & Home Furnishings 4.4%3,320 5.6%192Miscellaneous Retail 8.0%2,886 4.8% Banks, Savings & Lending Institutions 58 1.3%491 0.8% 348Finance, Insurance, Real Estate Summary 0.7%187 0.3% Insurance Carriers & Agents 60 1.4%229 0.4% 29Securities Brokers 4.6%1,979 3.3%201Real Estate, Holding, Other Investment 33.6%15,022 25.2%Hotels & Lodging 27 0.6%302 0.5% 1,463Services Summary 3.3%1,068 1.8%Motion Pictures & Amusements 83 1.9%1,068 1.8% 142Automotive Services 4.5%1,811 3.0% Legal Services 57 1.3%317 0.5% 194Health Services 1.4%2,779 4.7% Other Services 900 20.7%7,677 12.9% 60Education Institutions & Libraries Government 64 1.5%950 1.6% Unclassified Establishments 242 5.6%209 0.4% Source: Copyright 2019 Infogroup, Inc. All rights reserved. Esri Total Residential Population forecasts for 2019.Date Note : Data on the Business Summary Esri’s Data which uses census block groups to allocate business summary data to Totals 4,358 100.0 59,517 100.0% Business Summary Page 1 of 2 March 30, 2020 Eligibility for Business Grants •Draft Eligibility Criteria (to be finalized and approved by City of Kent) •Craft3 will ensure compliance of all awardees based on the following eligibility criteria. •To be eligible for an award, a business must: •Have no more than 15 full-time employees pre-Covid-19, Jan. 1, 2020 •Have been in business for at least three years as of June 30, 2020 •Have gross revenues of $1.5 million or less per year •Experienced loss of revenue due to COVID-19 related business closures or interruptions •Have received no other COVID-19 related aid from government programs, including grants, loans, or other support, including: •Paycheck Protection Program •SBA Economic Injury Disaster Loan •SBA Economic Injury Disaster Loan Advance (grant) •State of Washington Governor’s office Small Business Grant •Or any other Covid-19 related grant programs over the amount of $2,500 •Be active and licensed in the state of Washington, with a physical business address in the Kent city limits on or before March 1, 2020. Home occupation businesses operated from the owner’s primary residence may qualify if the residence is physically located in Kent city limits, and must be the primary source of income for the owner. •If business is temporarily closed due to COVID-19, the business intends to reopen as allowable by government mandates •Must be current on all city business licensing and other regulatory requirements, and not been delinquent in payment on any taxe s or fees owned to the City of Kent as of December 31, 2019. •Award Size: $2,500 per business ($3,000 if able to co-mingle Department of Commerce Funds with King County Funds) CARES ACT CDBG-CV Funding HUMAN SERVICES CITY OF KENT, PARKS, RECREATION AND COMMUNITY SERVICES CDBG-CV Funds On March 27, 2020, the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as the CARES Act. The bill allocates $670,541 in supplemental CDBG funds to the City of Kent for grants to prevent, prepare for, and respond to the coronavirus. The City added $184,948 in unallocated CDBG funds to be used for COVID-19-related activities. This allows for a total investment of $721,381 after $134,108 is deducted from Planning & Administration activities. CDBG-CV funds Who Will Receive CDBG Funds from Kent? The City will use a process similar to how it allocates regular CDBG funds –contracting with non-profits (HUD uses the term “sub- recipients”) to execute eligible activities. What Can CDBG-CV Fund? CDBG-CV grants fund public service activities and micro-enterprise projects that prevent, prepare for, and respond to the coronavirus. All CDBG funded activities must benefit low/moderate-income (LMI) persons. CDBG-CV Process Human Services Division (HSD) staff surveyed non-profits, the Cultural Communities Board, Kent Cultural Diversity Initiative Group, residents and stakeholders and asked them to identify pressing COVID-related community needs. HSD developed a list of activities (e.g., food, rental/utility assistance, homeless Services, healthcare services, micro- enterprise, trauma counseling, COVID-related supplies, digital services, etc.). HSD provided $2,000 in CDBG funds to Economic Development to conduct a Kent COVID-19 business impact survey. HSD and the Economic & Community Development Department coordinated the planning process, and the survey was conducted by Community Attributes Inc. CDBG-CV Process HSD held a public hearing to receive comments on which activities to prioritize for CDBG-CV investment. HSD released a Notice of Funding Availability and CDBG-CV application for non- profits to apply for funds. A Review Panel of Kent residents and City staff reviewed the applications and submitted 21 funding recommendations to the Human Services Commission. Human Services Commission approved recommendations, which will be submitted to City Council for final approval and to authorize the mayor to sign the CDBG-CV funding agreement and certifications. CITY OF KENT $10,000,000 $35,000,000 $10,000,000 $35,000,000 $300M Primary 2019/2020 2020 / 2021 *Excludes Surplus Lines Taxes & Fees Lexington $25M 100% All Risk $265,000 All Risk Earthquake and Flood Deductibles: $100,000 Earthquake: 5%/$100,000 Minimum Flood: $250,000 except 5%/$1M for Zones A&V (ShoWare) TIV: $326,731,065 Total Premium: $467,500* Rate: .143* Flood – A&V (ShoWare) RSUI $125M 100% All Risk $106,500 Lexington SRU Endurance Total $352,470 for 100% All Risk $150,000,000 $5,000,000 All Risk Earthquake and Flood Deductibles: $100,000 Earthquake: 5%/$100,000 Minimum Flood: $250,000 except 5%/$1M for Zone A&V (ShoWare) TIV: $332,520,376 (2%) Total Premium: $*568,970 (21.7%) Rate: .171* (19.5%) Flood – A&V (ShoWare) $5,000,000 Lexington $10M Lexington & SRU $10M Everest Indemnity $15M $110,000 Everest Indemnity $25M 100% $115,000 $25,000,000 RSUI $125M 100% All Risk $87,500 $150,000,000 TO: Committee of the Whole/City Council FROM: Chris Hills, Risk Manager DATE: July 22, 2020 SUBJECT: INFO ONLY: 2020-2021 Property Insurance renewal SUMMARY: Briefing on the City’s 2020-2021 Property Insurance Program. BACKGROUND: Property Insurance renewal was July 1. The recent premium history is as follows: • July 2015 to July 2016 $404,800 Premium decrease of 6.5%, includes increase in Earthquake/Flood limit from $50M to $75M. ShoWare remains at $5M. • July 2016 to July 2017 $370,725 Premium decrease of 10.3%, despite having negotiated a “flat” renewal for 2016-17. • July 2017 to July 2018 $346,323 Premium decrease of 7%. Decrease based on adding another layer to EQ/Flood coverage at a lower rate than Lexington’s rate for the $10M to $25M layer. • July 2018 to July 2019 $362,500 Premium increase of 7%, due primarily to increased reinsurance costs resulting from 3 hurricanes and the fires in California during 2017. • July 2019 to July 2020 $477,521 Premium increase of 23% due to severe losses due to California fires and flooding, combined with the 2 major carriers limiting their coverage. To offset, we’ve lowered our flood/earthquake limits to $35M and we’ve lowered our per occurrence maximum to $150M. • July 2020 to July 2021 $568,970 Premium increase of 22% due to ongoing volatility in reinsurance markets, including negative loss development, increased cost of reinsurance and decreased profitability. Our primary carrier has further limited their participation in the primary layer in response to the market limitations noted above. Despite the increase in premium and the decrease in Earthquake/Flood coverage, our overall cost of property insurance is only slightly greater for the upcoming year than what we paid for similar limits in the 2013-2014 policy period ($569K v. $525K), which was 7 years ago. This illustrates the “soft” state of the Property market over the past 5 years, and which now continues to “harden” as a result of the massive losses in 2017 and overall negative loss development. EXHIBIT: BUDGET IMPACTS: Property insurance premium increased due to market conditions. Despite the increase, the Property Insurance fund has adequately reserved adequate funds to absorb the increase within the projected budget. STRATEGIC PLAN GOAL(S): ☐ Innovative Government – Delivering outstanding customer service, developing leaders, and fostering innovation. ☐ Evolving Infrastructure – Connecting people and places through strategic investments in physical and technological infrastructure. ☐ Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. ☒ Sustainable Services – Providing quality services through responsible financial management, economic growth, and partnerships. ☐Inclusive Community - Embracing our diversity and advancing equity through genuine community engagement