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Home My WebLink AboutCity Council Committees - Operations and Public Safety Committee - 04/19/2022 (2) Approved Operations and Public Safety KENT Committee WA9H... CC Ops and PS Regular Meeting Minutes April 19, 2022 Date: April 19, 2022 Time: 4:02 p.m. Place: Chambers Members: Bill Boyce, Chair Brenda Fincher, Councilmember Satwinder Kaur, Councilmember Marli Larimer, Councilmember Zandria Michaud, Councilmember Les Thomas, Councilmember Toni Troutner Councilmember Agenda: 1. Call to Order 4:02 p.m. Council President Boyce called the meeting to order. 2. Roll Call Attendee Name Title Status Arrived Bill Boyce Chair Present Brenda Fincher Councilmember Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present Zandria Michaud Councilmember Remote Les Thomas Councilmember Present Toni Troutner Councilmember Present 3. Agenda Approval 1. I move to approve the agenda as presented. RESULT: MOTION PASSES [UNANIMOUS] MOVER: Marli Larimer, Councilmember SECONDER: Les Thomas, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner 4. Business A. Approval of Minutes dated April 5, 2022 MOTION: Move to approve the Minutes dated April 5, 2022 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Page 1 of 5 Operations and Public Safety Committee CC Ops April 19, 2022 and PS Regular Meeting Kent, Washington Minutes ......................................................................................................................................................................................................................................................................................................._............................................................................................................................................................................................................... RESULT: APPROVED [UNANIMOUS] MOVER: Toni Troutner, Councilmember SECONDER: Les Thomas, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner B. Payment of Bills - Approve MOTION: I move to approve the payment of bills received through 4/15/22 and paid on 4/15/22 and approve the checks issued for payroll from 4/1/22-4/15/22 and paid on 4/20/22, all audited by the Operations and Public Safety Committee on 4/19/22. RESULT: MOTION PASSES [UNANIMOUS] Next: 5/3/2022 7:00 PM MOVER: Les Thomas, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner C. FlexFund — ARPA Funds - Grant Agreement with National Development Council - Authorize Chief Economic Development Officer, Bill Ellis provided information on the FlexFund - ARPA Funds - Grant Agreement with National Development Council. Ellis advised that the City of Kent has many qualified census tracts where impacts from the pandemic are deemed higher by the federal government. Businesses are affirming continuing economic and other fallout from Covid- 19, and many businesses whose owners are low-and/or moderate income households may have missed or not fully benefited from prior rounds of assistance. The National Development Council created the FlexFund with support from the state of Washington's Department of Commerce. The FlexFund, with translation and language support capabilities in nine different languages, operates an online portal that matches the business or non-profit to the appropriate lender. Participating CDFI lenders are prohibited from charging any fees to borrowers, and secure a 4% interest rate for borrowers. The City's investment in covering eligible expenses increases the capacity of CDFI lenders to offer loans to Kent businesses. The loan fund shall have no obligation to repay grant funds to the City. However, the loan fund commits to collaborate with the City to form a strategic plan to detail the intentions for future use of any unused or returned capital at the end of the Contract Term. Funding will support best practices of economic development today by bolstering CDFIs, which by mission and purpose exist to help very small businesses especially owned from historically marginalized communities and women, that will continue to ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Page 2 of 5 Operations and Public Safety Committee CC Ops April 19, 2022 and PS Regular Meeting Kent, Washington Minutes have resources and relationships with the City of Kent and the city's diverse business owner communities. MOTION: I move to authorize the Mayor to sign a grant agreement with National Development Council, providing $1,650,000 in federal American Rescue Plan Act funds to Kent small businesses and non- profits adversely affected by the Covid-19 pandemic, subject to final agreement terms and conditions acceptable to the Economic and Community Development Director and City Attorney. RESULT: MOTION PASSES [UNANIMOUS] Next: 5/3/2022 7:00 PM MOVER: Les Thomas, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner D. Resolution Expressing Intent to Explore De-annexation of the "Bridges," in Order for the Property to be Annexed to the City of Auburn pursuant to RCW 35.10.217(2) - Adopt Deputy Economic and Community Development Director, Matt Gilbert presented information on the Bridges annexation/de-annexation. Gilbert provided a brief history that included: The Bridges is an island of Kent, surrounded by Auburn 155 acres Annexed by Kent in 1987 as a future water reservoir Site became known as The Bridges when it was sold and developed Surrounding Lea Hill neighborhood was annexed into Auburn in 2008 386 single family homes PUD approved by Kent in 2004 Built between 2007 and 2021 55 acres of open space/active rec. space 13 acres at the south end are for future development. Gilbert talked about the annexation analysis: Talks between Kent and Auburn began in 2018 Key issues: Infrastructure and open space maintenance, development rules Kent provided plans and maintenance records on utility systems, roads and bridges Kent crews have been making sure storm system maintenance is up to date Public Works directors working closely together Gilbert discussed future development: Oakpointe hopes to develop the 13 acres at the south end of the site. Development will require comprehensive plan and zoning changes. Questions about what development rules apply today (PUD), and what will allow redevelopment are complex. .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Page 3 of 5 Operations and Public Safety Committee CC Ops April 19, 2022 and PS Regular Meeting Kent, Washington Minutes • If annexation proceeds, Oakpointe will engage with Auburn on questions of future development. Open space management challenges: Illegal dumping, unauthorized users Engagement with residents of The Bridges - What are the impacts to their property taxes, utility bills, police/fire service, voting districts, etc.? Next steps: Resolutions by Kent and Auburn Councils to formally explore the annexation Obtain feedback from The Bridges HOA (Spring/Summer) Determine cost and service impacts to residents related to police and fire service, utility costs, garbage cost, etc. Obtain feedback from Oakpointe Auburn's evaluation of infrastructure, development policy MOTION: I move to adopt Resolution No. 2038, expressing the Council's intent to explore the de-annexation of the "Bridges" neighborhood in order for the property to be annexed to the City of Auburn pursuant to RCW 35.10.217(2). RESULT: MOTION PASSES [UNANIMOUS] Next: 5/3/2022 7:00 PM MOVER: Toni Troutner, Councilmember SECONDER: Les Thomas, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner E. OMNIA Partners, Public Agencies, Cooperative Agreement - Kronos Incorporated, Telestaff Workforce Management Software - Authorize Deputy Information Technology Director, Tara Duckworth provided information on the OMNI Partners, Public Agencies, Cooperative Agreement. Through the HCMA project, budget, and contracts Council previously approved, the City utilized this cooperative contract to acquire Telestaff, which is used by the Kent Police Department to interface with Workday. However, the HCMA project was time limited and the project account and budget are now closed. Continued use of the Telestaff software and services through Kronos requires additional contract approval by Council. The total cost of purchases outside of the HCMA project and through the current contract term of March 17, 2023 are $30,977.09. The future anticipated costs with Kronos are estimated to be approximately $99,625.15. MOTION: I move to authorize the City's Information Technology Department to purchase products and services through Kronos Incorporated under the terms of Cooperative Purchasing Agreement #18220 Cobb County, Georgia entered into on March 18, 2019, ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Page 4 of 5 Operations and Public Safety Committee CC Ops April 19, 2022 and PS Regular Meeting Kent, Washington Minutes through the OMNIA Partners, Public Agencies cooperative current, through March 17, 2023, or such later contract term as the cooperative may negotiate, if those purchases are within the City's established budget, and ratify all prior acts consistent with this motion. RESULT: MOTION PASSES [UNANIMOUS] Next: 5/3/2022 7:00 PM MOVER: Les Thomas, Councilmember SECONDER: Marli Larimer, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner F. CDW-G Cooperative Agreement - Computer Laptops, Monitors and Associated Accessories Purchase - Authorize Deputy Information Technology Director, Tara Duckworth presented information regarding The Association of Educational Purchasing Agencies (AEPA). The City previously purchased through a similar contract between KCDA and CDW Government, LLC, which has recently expired. Under that contract, the City purchased $776,132.16 worth of goods over four years. With the expiration of that agreement, the authorization of this new agreement is necessary. IT needs to purchase laptops, monitors and accessories to upgrade and refresh its supply for City use. Currently, the City has a need to purchase an additional 200 computer monitors, at a cost of $58,903.50. MOTION: I move to authorize the City's Information Technology Department to purchase technology supplies, materials, equipment, and software through cooperative purchasing agreement #AEPA- 0022-G between CDW Government, LLC and the King County Directors' Association, if those purchases are within established budgets and made during the term of the cooperative agreement, which is currently in effect through February 28, 2023, but may be extended through February 28, 2026, or later. RESULT: MOTION PASSES [UNANIMOUS] Next: 5/3/2022 7:00 PM MOVER: Les Thomas, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Fincher, Kaur, Larimer, Michaud, Thomas, Troutner S. Adjournment 4:46 p.m. Council President Boyce adjourned the meeting. Ki-*K�ley Ko ou- Committee Secretary ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Page 5 of 5 KENT VALLL. ECONOMIC DEVELOPMENT FCantValleyWA.eam I info�HentValleyWA.�om 1253-84fi-5454 KENT VALLEY DEVELOPMENTECONOMIC Authorizes $ 1 . 65 million investment EVERGREEN a'1 B usiness)"acM [exFUND NNDF 21 ks . - r A public-private par#nership to support for the smalles# �� _ . ►"fit businesses in under-banked communities across Washington 4 � r r � � CRAFT I(entValleyWA.cam I info@}tentValleyWA.cam I �53-846-SR54 KENT VALLE' ECONOMIC DEVELOPMENT Washington Economic DevelopmentAssotlaEion AwardWinning F ex Fun�a THEVOiCE Or KONOW DEVELOPMENT ECON0MICDEVELOPM ENT PROJECTOFTHE YEAR—BUSINESSRETENTION/EXPANSION What is a CDFI? The Small Business Flex Fund This award celebrates the successful creation or completion of a creative,economically significant and/or A CDFI is a private financial institution whose model project in a community or region.The project could be one that has retained jobs,was particularly primary mission is to help communities that are difficult to achieve,was extraordinarily competitive,had multiple partners or contributed to community well- being. traditionally left out of banking and investing The COVID-19 pandemit wrought economicturmoiI across Washington's smallest businesses and nonprofits, options. They attract capital from private and but for many businesses owned by individuals from historically excluded communities,the pandemic exacerhated economic inequities that have existed for generations.Together,Washington State Department public sources to channel more monies into of Commerce,the National Development Council,and DH built a campaign to promote the novel Washington Small Business Flex Fund and provide access to flexible,working capital to business owners who have been distressed communities with a strong fiduciary traditionally underhanked or denied access to affordable loans. responsibility to lend to minority and women The Flex Fund is designed to serve historically underhanked communities.As a core operating principle,the Flex Fund partners with Community Development Financial Institutions,or CDFI5,as lenders—existing non- owned businesses. Since pandemic they are a profits who have been serving underserved communities for decades.The Flex Fund also provides at-the-ready «national best practice" for improving equitable technical assistance support with financial literacy,document preparation,language services,business plan writing,credit score consultation,and other administrative needs to increase an applicant's chances of hearing outcomes. 'ye s'to their loan application.Washington's Flex Fund has had the best conversion rate compared to similar programs in other states(like New York and California),at one loan funded for every 11.9 applicants-with other states closer to a n e loan per 18 applicants.This means more capital in the hands of businesses that need it most—and to date over$32.4 million has been distributed to fiver 986 small businesses and nonprofits. The Flex Fund lending of 1 per 11.9 applicants is Additionally,almost 80%of the organizations that have been funded through this program have diverse ownership. industry leading ratio of"getting to yes." KENT VALLEY ECONOMIC DEVELOPMENT SMALL B1J51NE5S pplicationsi A n Kent, leXFUND MATCHED APPLICATION SUMMARY Region and Conversions Including Funded Loans FUNDEDLOANS Strong demand to date for PERCENT OULATI KING loans from region and Kent COUNTY POPULATION WTION PERCENT OF KING $VALUE OF PERCENT OF KING PERCENT OF KING AVERAGE LOAN POPULATION TOTAL APPLICATIONS COUNTY TOTAL APPLICATIONS COUNTY TOTAL NUMBER LOANED COUNTY TOTAL SIZE Goal is not every application 152,600 • BELLEVUE 7% Ill 6% $13,068,656 7% 30 $815,366 5% 81,53 BURIEN 52,430 2% 50 3% 13'977,549 2% 6 $702,549 4% 117,09 funded ISSAQUAH 40,640 2% 23 1% $2,246,413 1% 6 $518,413 3% 86,40 KENT 137,700 6% 98 5% $10,454,547 5% 16 $1,547,698 10% 96,73 Businesses remain in need RENTON 307 100 5% 104 5% 9 983 329 5% 8 649 291 4% 8116 490,470 21% 386 20% $39,730,494 21% 46 $4,233,317 $92,029 after restrictions lift...balance PERCENT OF STATE PERCENT OF STATE $VALUE OF PERCENT OF STATE sheets and debt incurred to POPULATION POPULATION TOTAL _ APPLICATIONS TOTAL _ APPLICATIONS TOTAL _ NUMBER LOANED KING COUNTY 2287050 29% 1916 45% $193688203 48% 187 $16172300 $86,as survive the pandemic cast shadows PERCENT OF STATE PERCENT OF STATE $VALUE OF PERCENT OF STATE PERCENT OF WA POPULATION, POPULATION TOTAL APPLICATIONS TOTAL APPLICATIONS TOTAL NUMBER $LOANED STATE TOTAL Reaching more businesses SEATTLE 742,400 10% 1,048 24% $108,392 0% 84 $7,403,152 20% $88,13 and making capital available EVERETT 112,300 1% 87 2% $14,871,052 4% 31 $966,669 3% $87,87 SPOKANE 229,400 3% 132 3% $11,893,669 3% 15 $1,045,199 3% $69,68 will help faster, more TACOMA 218,700 3% 323 8% $25,573,198 6% 29 $2,003,918 5% $69,10 VANCOUVER 194,400 3% 117 3% $11,701,918 3% 13 $1,089,769 3% $83,828 equitable recovery WASHINGTONSTATE 7,766,975 4,305 $406,987,824 437 $36,855,114 $84,33 Kent's conversion rate is very ,-OFMApril,I,—Frti.- high, near 1:8 applicants KENT KENT VALLEY ECONOMIC DEVELOPMENT Kent Commercial Corridors : Majorly Defined as Qualifs' Census T70% 0%&0% � - Pacific Highway; Valley; Meeker; Downtown; Kent- k Kangley; Benson Hwy—Majority of lands in ""QCT" Ma.. Eligibility standards for lending : 0 Business confirming an impact from Covid-19• and/or xgrX _- 0 Businesses, whose owners are low- and/or moderate income (3 person household with incomes below 65% Area Median .s F4 \ ceuneycluX T°a••°'°_ Income); and/or • Businesses which are located in a Qualified Census Tract (QCT). • Indication of on-going need for recovery assumed by Census Tract HUD designation where 50% or more of households have income less than 60%of AMI or overt rate of 25% poverty • Community Development Finance Institutions (CDFIs) which are charted by the U.S. Treasury to predominantly lend to minority-owned businesses in eligible investment areas KENT KENT VALLEY ECONOMIC DEVELOPMENT Increasin9Capacity CDFI to Lend in Kent • City of Kent receives for its investment: US Treasury Guidance on Eligible Expenses under ARPA • Loan Loss Reserves to Cover Projected Losses. Any loan fund • Better interest rates for Kent businesses would expect that some loans will not be repaid. The loan loss • Increased capital availability for Kent businesses reserve assists lenders by helping to cover some portion of losses. The Fund is projecting a 10%loss reserve. This figure was based • Removal of fees for Kent businesses on a review of CDFI lendinghistory; ry; and • Achieves the outcome of more capital available for Interest Rate Buvdown for Eligible Businesses. The Fund is Kent businesses, which traditional lenders typically providing a low interest rate to businesses. Calvert Impact Capital underserve, by allowing the National Development reviewed many comparable lending sources and identified 12%o s a rate most would access for borrowing. The Fund provides a 4/o Council (a CDFI) and the Flex Fund's CDFI rate to businesses, so the rate subsidy of 8%would be an eligible collaborative to borrow more private capital expense; and • Regular reports on impact of loans, and by key Loan Fee Buvdown to Benefit Eligible Businesses. Most lending business owner demographics programs require some fees to be paid by borrowers as a condition of a loan. These would include a loan fee, closing costs,wiring • In future, contract stipulates CDFIs to access funds costs, etc. The Fund does not allow CDFI lenders to charge any fees to borrowers. Instead,the Fund pays those costs and this must consult City of Kent staff on strategic planning expense would be eligible for ARPA fund use. to redeploy funds KENT KENT VALLEY ECONOMIC DEVELOPMENT " #fSMALL BUSINESS lay A Closer Look at the Numbers Eligible expenses less, as of today, less than full amount indicated in Mid-Biennium Budget prior to Treasury Final Rule ARPA Expense Categories Authorization by City Council of Total Projected $1.65 million would remain below Lending in King eligible expenses of fund County Defaults Rate buy-down Fee buy-down Total Eligible Expenses $40,000,000 10% 8%spread 2% By city It would increase Flex Fund ability to borrow and support $5,428,439 $542,844 1,266,049 $108,569 $1,917,462 Kent lending in Kent by $2.7 million KENT KENT VALLE' ECONOMIC DEVELOPMENT Voo,,, SMALL BUSINESS f1jeX A Closer Look at Kent's Numbers POPULATION PERCENT OF STATE $ Requested WASHINGTON LENDING SUMMARY Projected Funded Loans (To Remaining Loan STATE 71766,975 $411303,743 Loans Date) Requirements KING COUNTY 2,287,050 29% $196,262,918 PERCENT OF KING NUMBER COUNTY TOTAL Kent 137,700 $10,604,547 $5,428,439 $1,547,698 $3,880,741 1 - OFM April 1,2021 Estimates Z-As of 04.15.2022 KENT VALLE' 4r ECONOMIC DEVELOPMENT Outreach, Marketing, Supports • Better understand the "use case" of • Nine languages with call center support business recovering; e.g. racked up too already managed by FlexFund much higher interest debt to adapt to 0 Engage and hire local Community Based Covid-19 Organizations, similar to prior experience with • Opportunity to re-introduce the state and Small Business Emergency Granting local CDFIs to our small businesses and . Work with Kent Chamber, Kent Downtown ecosystem of supporters Partnership, Small Business Development • Eye on the longer term: mission of CDFIs Centers and City economic development aligned. • Flex Fund closes intake in September liquidity with funds earmarked establishing relationships and networking soft' for Kent sets up further partnered lending infrastructure with CDFI lenders, a national for years to come best practice, to continue for years to come KENT VALLE" � ECONOMIC DEVELOPMENT Questions .& W i l l i a m E l l i s, Chief Economic De velopment Officer Economic and Community Development Phone : 253-856-5707 E-mail : wellis@kentwa .gov THE BRIDGES Annexation/De-annexation update Matt Gilbert, Deputy Director ECD April 19, 2022 of SeaTac '$' Cascade Fairwood �; ORILL4A— An island 11 �� 99 Q Hydroplane& Ke nt, Race Boat Museum Amazon 9WinCo Foodsl® • d d b Recruiting Office East tir ie1 Hill-Meridian Auburn . s M`oines 0. 1 � acres 516 x 167 Soos-Creek Trail Mill Creek Canyon Annexed by e 1987 as a _ f Q ©Earthworks Park future water \1 516 reservoir. �� 1 Lake Fe"nwick Park © Target0 Site 509 • . • . Bridges Trader Joe's ©Lake Meridian when it was • • and developed. Surrounding Lea Hill neighborhood 1,1 was annexed into Auburn in 2008. 509 Lakeland North !i` Oov ` ,1 � e Bridges 4 ,* 386 single family homes • PUD approved by Kent in 2004 - a • Built between 2007 and 2021 • 55 acres of openspace/active rec. f «' p -- � space • 13 acres at the south end are for , future development. Y •• 47--20'25.41" N 122010'40.91"W elev 4 I J Annexation Analysis REP- • Talks between Kent and Auburn began in 2018. Key issues: Infrastructure and open LAJ- space maintenance, development rules. ilk • Kent provided plans and maintenance records on utility systems, roads and bridges. • Kent crews have been out making sure •• storm system maintenance is up to . date. • Public Works directors working closely together. Future Development ■ Oakpointe hopes to develop the 13 acres at the south end of the site. ■ Development will require comprehensive plan and zoning changes. ■ Questions about what development rules apply today (PUD), and what will allow redevelopment are complex. ■ If annexation proceeds, Oakpointe will engage with Auburn on questions of future development. 12j2020 Other moving ro Pa rts _AWL - �� Open space management challenges: -� - Illegal dumping, unauthorized users. -� J Tru ress Engagement with residents of The x- Bridges. What is the impact to their f property taxes, utility bills, police/fire Y �' service, voting districts, etc.? ; Annexation process: city to city - annexations are rare. Transferring assets including paper and digital records, land and infrastructure, inspection and permit records, etc. GOO _ _ lilR4 A. br — 4T19'59.83" N 1221110'.42.32"W elev "4 tt Next Steps ■ Resolutions by Kent and Auburn Councils to formally explore the annexation ■ Obtain feedback from The Bridges HOA ( Spring/Summer) ■ Determine cost and service impacts to residents related to police and fire service, utility costs, garbage cost, etc ■ Obtain feedback from Oakpointe ■ Auburn 's evaluation of infrastructure, development policy THANK YOU