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PRHSPSC PKT 03-10-2009
City of Federal Way CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE Tuesday, March 10, 2009 City Hall 5:30 p.m. Hylebos Conference Room 1. CALL TO ORDER 2. PUBLIC COMMENT — THREE (3) MINUTES 3. COMMISSION COMMENTS 4. APPROVAL OF DECEMBER 9, 2008 SUMMARY APPROVAL OF JANUARY 13, 2009 SUMMARY 5. COMMITTEE BUSINESS A. Laurelwood Property Donation Action Ikerd B. Forte Electric Retainage Release Action Ikerd C. Interlocal Agreement for South End ARCH Action Hynden D. Finalize Federal Way Neighborhood Stabilization Program Action Hynden E. Donation from Ms. Ayako for a K-9 Vest Action Wilson F. Donation from Crestwood Animal Hospital for a K-9 Vest Action Wilson G. 2008 Bullet Proof Vest Partnership Grant Action Wilson H. Interlocal Agency Agreement with Seattle PD, WASPC Grant, Gang Related Crime Action Wilson I. Red Light Photo Enforcement Program Status Report Information Wilson J. Knutzen Family Theatre Management RFP Action Faber K. Federal Way Conference and Cultural Center Action Beets 6. PENDING ITEMS • Festivals • Dangerous Dogs 7. NEXT MEETING — Tuesday April 14, 2009 5:30pm — Hylebos Conference Room 8. ADJOURNMENT 2009 Committee Members: Staff Council Member Jeanne Burbidge, Chair Steve Ikerd, Interim Director Council Member Jim Ferrell Mary Jaenicke, Administrative Assistant II Council Member Michael Park 253-835-001 City of Federal Way City Council PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday December 9, 2008 5:30 p.m. SUMMARY In attendance: Council Committee members Chair Jeanne Burbidge, Jim Ferrell, Council member Linda Kochmar, Cary Roe, Assistant City Manager, Karolyn Klohe, City Attorney, Deputy Chief Andy Hwang, Craig Feldman, Aquatics Coordinator, Steve Ikerd, Interim Director PRCS, Mary Faber PRCS Superintendent, Doug Nelson, Community Center Supervisor, Mary Jaenicke, Administrative Assistant II. Guests: Susan Honda, Arts Commission; Phil Dalrymple, Scot Henderson, Federal Way National Little League Excused: Council Member Michael Park Chair Burbidge called the meeting to order at 5:30p.m. PUBLIC COMMENT None COMMISSION COMMENT Susan Honda, Arts Commission chair reported that the Arts Commission voted in favor of making repairs to the kinetic sculpture that is located at the Skate Park. Due to the increase in vandalism to the sculpture the Arts Commission also voted to remove the piece of artwork from the skate park and place it in the round -about located at the Federal Way Community Center. PRCS Superintendent Mary Faber is meeting with the Public Works Department to discuss the restrictions of the traffic circle, and to see if it is even possible to place the sculpture there. The sculpture will be removed from the park in the next few weeks. APPROVAL OF SUMMARY Council Member Ferrell moved to approve the November meeting minutes as written, Council Member Burbidge seconded the motion, Motion passed. BUSINESS ITEM Acceptance of WTSC Grant Money to Purchase Replacement Laser/Radar Devices Deputy Chief Hwang presented the background information. The Federal Way Police Department is requesting permission to accept grant money from the Washington State Traffic Safety Commission to purchase two laser/radar devices. The devices will be given to the Traffic section and will be used to measure speed in and around the school zones. This will give the Department a total of 13 laser/radar devices. Council member Ferrell moved to approve the request by the Police Department to use available grant money to purchase two replacement laser/radar devices for the Traffic Section. Council member Burbidge seconded. Motion passed. Community Center Pool Chemical Vendor Contract Mr. Feldman presented the background information. Orca Pacific submitted the lowest bid. This is the same vendor that staff has been using since they took over the Kenneth Jones Pool, and they have been very pleased with their services. Council member Ferrell moved approval of a contract with ORCA Pacific, Inc. for supply and delivery of Pool Chemicals at the Federal Way Community Center. Council member Burbidge seconded. Motion passed. Electric Upgrade — Annex Brick House Mr. Ikerd presented the background information. Staff is working to upgrade the Steel Lake Annex Brick House for the Historical Society. Staff went out to bid to nine companies off of the small works roster, and two bids were received. Forte Electric was the lowest responsible bidder. Council member Ferrell moved to accept the electrical upgrade bid from Forte Electric and authorize the Assistant City Manager to execute a contract for services in the amount of $22,268.70. Council member Burbidge seconded. Motion passed. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday December 9, 2008 Summary Page 2 Emerging Issues with Change in Health Codes No action is requested at this time. Ms. Faber is presenting this to inform the Committee on the change in pool health codes. The code change is in the pool drain systems including flow rates and grates. The products that are supposed to replace the current grates and drains are not available by the manufacturer at this time. The health code goes into effect December 19. This will affect all public and semi -private pools. The Federal Way Community Center has grates in the lap, leisure and spa that will need to be replaced. If the pools are operated after December 19 without the grates being replaced, they will be operating out of compliance. Other options are retrofitting the grates and drains, and this would involve draining the pools, and shutting them down for a week, or close the pools and wait until January for the new grates. Closing the pools for the month would be a huge business loss for the Center. A meeting is scheduled with the State and local Health Department regarding how they are going to coordinate the new health codes. They have surveyed other local pools, and none of them are planning on closing down at this time. The grates have been pre -ordered, and they have been working with an engineer. Mr. Feldman stated that the Health Department has told him that their target is going to be on the wading pools because they are very shallow. Ms. Faber stated that she has scheduled a meeting with the City Manager, and Assistant City Manager to discuss this issue after the State and local Health Department have their meeting. Federal Way National Little League Proposal for Fencing and Netting Mr. Dalrymple and Henderson reported that they have finished the lighting project at the sports complex. Because of the lights, they were able to schedule games in the fall. Mr. Dalrymple and Mr. Henderson presented a proposal for fencing behind the backstops on fields one and two. They are going to have higher fences for safety issues. They were considering a netting system, but after further research, they discovered it would be more viable to replace the existing backstops and extend the wire material. Mr. Henderson stated that the group is energized, and they have formed a vision committee to look at improvement projects. Because of the improvements made to the complex, their income has increased. They have also formed a marketing committee to increase participation in their program. They want to grow their scholarship program, and revitalize the girls program. They had their first girls All-Star Little League team. Approximately 400 children participated in the FWNLL. Council member Kochmar suggested contact service organizations such as Soroptomist and ask them to sponsor. Council member Burbidge noted that the amount remaining in their budget is $56,250.00, not $57,250.00. Council member Ferrell moved to approve the FWNLL proposal for fencing and netting at 1911 SW Campus Drive, Federal Way and forward to full Council on January 6, 2009 for approval. Council member Burbidge seconded. Council member Burbidge asked if the netting was still in the proposal. Mr. Henderson answered that when they started researching what would be the most viable way to provide the best safety scenario, they realized that the netting would not work. Council member Ferrell made a friendly amendment to remove the word netting from the proposal. Motion passed. NEXT MEETING — January 13, 2009 5:30 p.m. in the Hylebos Conference Room ADJOURNMENT - Meeting adjourned at 6:20 p.m. City of Federal Way City Council PARKS RECREATION, HUMAN SERV ICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday, January 13, 2009 5:30 p.m. SUMMARY In attendance: Council Committee members Chair Jeanne Burbidge, Michael Park, Council member Linda Kochmar, Cary Roe, Assistant City Manager, Pat Richardson, Director, Chief Brian Wilson, Tho Kraus, Finance Director, Linda Farmer Communications & Government Affairs Manager, Steve Ikerd, Interim Director PRCS, Mary Faber PRCS Superintendent, Doug Nelson, Community Center Supervisor, Ray Gross, EOC Manager, Mary Jaenicke, Administrative Assistant II. Guests: Susan Honda, Arts Commission; Fred Konkell, Parks & Recreation Commission Excused: Council Member Jim Ferrell Chair Burbidge called the meeting to order at 5:31p.m. Council member Park moved to add Grant Application for Prosecution Coordination through Co -Location Project to the agenda as item I. Chair Burbidge seconded. Motion passed. Chair Burbidge moved to postpone item D to the February meeting. Council member Park seconded. Motion passed. PUBLIC COMMENT None COMMISSION COMMENT Fred Konkell, chair of the Parks and Recreation Commission was there to represent the Commission APPROVAL OF SUMMARY Approval of the December 9, 2008 minutes will be postponed until February 10, 2009 meeting. BUSINESS ITEM Community Preparedness Grant EOC Manager Ray Gross presented the background information. The City Council approved $100,000 to help the community prepare for emergencies. Mr. Gross met with eight large assisted living facilities. Those facilities are required by law to have generators, and three days of supplies. Their main concern was fuel storage capacity at those facilities. After meeting with the facilities and other organizations, there was an expressed need to increase their supplies as well as strengthening their communications with the Emergency Operations Center. The scope was widened to address other needs such as additional blankets and food and water. The $100,000 was divided up into other projects that agencies could apply for. There are criteria that need to be met; the organization needs to show a 5% match of the total cost, sign an agreement with the City. The grant is performance based, and they will need to submit a work plan. With the submittal of a work plan they will get 25% of their money. At mid -point they will submit a progress report and receive 50% of their funding. Once the project is complete, they will get the remaining 25% of their funding. Council member Park moved to authorize staff to proceed with the Community Preparedness Grant program as written and forward to Full Council on January 20, 2009. Chair Burbidge seconded. Motion passed. Pros and Cons of a Police Officer Reserve Proaram Council member Park stated that he raised this issue a few years ago; because the police vacant rate was very high and having a Police Officer Reserve Program would help fill those vacancies. He has reviewed Chief Wilson's background memo, and he feels that now is not the time to implement this program due to the economic climate. There is not enough funding to maintain this program. Chief Wilson reported that at this time the Police Department vacancy rate is at 4. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday January 13, 2009 Summary Page 2 West Campus Trail/Palisade park Asphalt Replacement Accept Work Done by Northwest Asphalt Inc Mr. Dickinson presented the background information. The trail and park was severely damaged and it became a safety issue. The work is complete, and it is now a lot easier to walk on. Parks staff has received a lot of positive feedback. The total amount of the contract is $44,354.83. The project was finished on budget with no contingency or change orders needed. Council member Park moved to accept the contract with Northwest Asphalt, Inc. as complete and that their retainage be released. Council member Burbidge seconded. Motion passed. West Campus Cottonwood Removal: Accept work by Thundering Oaks Enterprises Inc. Mr. Dickinson presented the background information. The tree removal was successful. The neighbors were notified and there were no reported problems. The replacement trees have been purchased, and staff hopes to have them planted by the end of January. This project came in under budget. Council member Park moved to accept the contract with Thundering Oak Enterprises, Inc. as complete and that their retainage be released. Council member Burbidge seconded. Motion passed. Federal Way Community Center Marketing Plan and Budget Ms. Faber stated that the Center has been opened for 21 months, and has been operating with a projected budget from the Business Plan. Staff discovered that some of the budget projections were not accurate. They have identified those areas that did need adjustments. Ms. Faber stated that in the past six months they have focused on creating a plan that would build a stronger identity for the Community Center within the local region. The plan has been developed with an emphasis specifically on increasing use and increasing revenues. The implementation of the plan should take place at the beginning of summer. Ms. Farmer reviewed some of the specific items. The plan is broken down into five parts: 1) Research and Rationale, 2) Key Strategic Priorities, 3) Recommendations, 4) Metrics, 5) Schedule, Milestones and Budget. Ms. Farmer stated that a standards communications audit was conducted. They looked how city staff communicated about the Community Center. They reviewed paper materials, signage in the Community Center, information on the Web page, and the spoken word, and what the media was saying abut them. They also reviewed the current state of the Community Center; they reviewed the financials, the number of people attending which programs, number and type of passes sold, building capacities and parking lot capacities. After reviewing all of the data, the consultants and the internal team came up with three business adjectives to work towards; Increase pass sales with a revenue increase of 10-15%, increase daily admission sales with a revenue increase of 20%, and increase building rentals with a focus on high-end special events for a revenue increase of 15%. There are 4 key audiences: 1) Pass Holders and Drop -ins, 2) Rental Audience, 3) Community Center Patrons, and 4) Media. These can all be broken down into sub -categories. The tag line for the Community Center will be "It all happens here". The word "all" signifies the wide range of activities offered at the Center. Ms. Faber reviewed the strategic priorities, of which there are six. They also developed 15 recommendations to help the FWCC develop a strong and effective communication strategy. A few of those recommendations are to 1) Apply your identity consistently 2) Create templates and standardize the look 3) Standardize communications 4) Keep advertising targeted and specific 5) Redesign community center pages within the parks catalog. They will continue to measure the success of their communications and marketing efforts. Ms. Faber reviewed the budget. She stated that it will cost approximately $81,000 to implement the plan. This is not a per year cost because about half of the budget is earmarked for up front costs for the templates and flyer information, these will have a shell life of about 3- 5 years. Some of the unused funding for the Community Center construction budget will be used. Some funds are available from their 2008 and 2009 budget. Council member Park stated that there are three staff objectives to increase revenues, he asked what the dollar amount is of those objectives. Ms. Farmer answered that they do not know yet, because the plan was developed in the summer, and they were waiting until they had a full year of operations. Council member Park would like to see the 2008 numbers, so he can see how the revenue compares to the expenditure for the Marketing Plan. He requested that these numbers be presented at the January 20, 2009 Council meeting. It is anticipated that the ongoing cost for the Marketing Plan will be $30,000 per year. Council member Park stated that $81,000 is a lot of money, especially with the economic challenges we are facing. It is very difficult to predict what is going to happen; he is unsure how staff will achieve their objectives. He would like to receive a report of the numbers on a quarterly basis. Council member Burbidge asked that staff try and combine the printed materials; possibly have one design and one format. Council member Park moved to approve the Strategic Communications Plan and Budget and forward to full Council on January 20, 2009. Chair Burbidge seconded. Motion passed. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday January 13, 2009 Summary Page 3 Arts Commission Contract For Services Ms. Faber reported that this is a program that funds not for profit performance groups. The group has to fill out an application, which is then reviewed by the Arts Commission. The Commission will evaluate the agencies and their applications, and then recommend funding based on what has been budgeted for that particular year. Council member Burbidge stated that her husband sings with two of the groups that are requesting funding, and he was on the Board with the Harmony Kings and was President of the Board for the Federal Way Chorale, and she is unsure if he is considered to be on the Board as a past President. This item was forwarded to Full Council without a recommendation. Arts Commission 2009 Work Plan Ms. Faber stated that this is an aggressive commission and they have a lot of ideas and projects that they would like to achieve. They have a budget that is associated with this work plan. Council member Park moved to approve the proposed Arts Commission 2009 Work Plan. Chair Burbidge seconded. Motion passed. Grant Application for Prosecution Coordination Through Co -Location Proiect Ms. Richardson stated that she discovered that King County is going to apply for a Federal Grant. This grant would include the cities of Auburn and Renton and Federal Way. A half-time Deputy Prosecutor would co -locate, and there would be a better coordinated cohesive effort for misdemeanor and felony domestic violence. This program has been in place in Seattle, and they have shown a 36% increase in dealing with domestic violence more efficiently and effectively. Ms. Richardson stated that they have only completed the application, they do not know if they have been accepted. There are no monetary obligations on the part of the City; it is only to provide work space for the Deputy Prosecutor. The grant is for one year. Ms. Richardson stated that this should help the city prosecute cases much quicker and more effectively. Ms. Richardson stated that if we get this grant it will be effective from September 2009 to September 2010. Council member Park moved to authorize the City Attorney to execute (1) Memorandum of Understanding for Prosecution Coordination through Co -location Project and (2) Memorandum of Agreement between King County and the City in a form acceptable to the City Attorney. Chair Burbidge seconded. Motion passed. Pending Items Animal Control ARCH Housing in relationship with the stimulus money that is available to the City for housing and the multi -service center. Chair Burbidge wants to make sure that we are not duplicating programs that already exist. Mr. Roe stated that they are in the process of getting more information on the ARCH program in South King County, and what will the City's role be. NEXT MEETING — February 10, 2009 5:30 p.m. in the Hylebos Conference Room ADJOURNMENT - Meeting adjourned at 6:47 p.m. COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: LAURELWOOD PROPERTY DONATION POLICY QUESTION Should the City accept the transfer of two parcels of land from Laurelwood Community Club? COMMITTEE: PRHSPS MEETING DATE: March 10, 2009 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other: STAFF REPORT BY: Stephen Ikerd, I ........ .............. - _.__._ . ......._ _...... ..._.._ ........... History: Laurelwood Community Club who owns two parcels since the 1960's, sent a letter to the City Council dated April 21, 2008 offering to transfer this property to the City. The letter indicated that the Community conducted a secret ballot vote and the consensus was unanimous to transfer these two parcels to the City of Federal Way (#4222800370 & #0421049219). The club members further requested that this property would continue to be used as a Park and Greenbelt. Staff understands that there is approximately $8,453.00 in back taxes owed to King County. Staff contacted the County for additional information, and the County replied with this statement: "If Laurelwood does not pay the taxes and the City of Federal Way does not assume ownership, the property will go into tax foreclosure. This will actually happen next year because the 2006 tax is unpaid. Foreclosure begins when we file the Certificate of Delinquency in King County Superior Court. This filing will be sometime around the latter part of May, 2009. The actual tax foreclosure sale would take place in mid December, 2009. " The Parks Commission discussed this offer on November 6, 2008 and voted to recommend to Council to accept. Should the Council accept this donation, the City would use a Title Company to secure the property for the cost of back taxes and associated closing cost. Options Considered: Accept the donation, or do not accept the donation. Attachments: Site maps, letter to Council STAFF RECOMMENDATION: Staff recommends Council accept the donation of parcels #4222800370 & #0421049219 from Laurelwood Community Club and authorize staff to secure the property. CITY MANAGER APPROVAL: �� DIRECTOR APPROVAL: to Committee to Council to Committee To Council COMMITTEE RECOMMENDATION: Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move approval to accept the donation of parcels #4222800370 & #0421049219 from Laurelwood Community Club and authorize staff to secure the property. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) _ COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ❑ TABLED/DEFERRED/NO ACTION r Enactment reading ❑ MOVED TO SECOND READING (ordinances only) �w 1 ORDINANCE # REVISED - 02/06/2006 RESOLUTION # April 21, 2008 City Council City of Federal Way 33325-8 1h Ave S PO Box 9718 Federal Way, WA 98063-9718 Honorable City Council Members: The Laurelwood Community Club has voted unanimously to donate to the City of Federal Way the following parcels of property for perpetual use as a City Park and Green Belt: Parcel 4222800370, Parcel Number 0421049219. These pieces of property have been the Laurelwood Community Club property since the 1960's when the Laurelwood subdivision was developed. As the years have past, we find that we no longer have sufficient volunteer members to pay the taxes and insurance on the property or to maintain the property. However, it is valuable space in our community and has potential for recreational use for more than our subdivision. It has been a home to Little League Baseball and other community functions. A secret ballot was conducted in March -April 2008 of all members of the Laurelwood Community Club. A copy of the official ballot is enclosed for your reference. The vote was unanimous. It is our desire to take immediate steps to discuss transfer of this property to the City of Federal Way and ensure its continued use as a park and greenbelt. We are asking your guidance on the steps to make this happen. Without your assistance and acceptance, the community risks the loss of a potentially valuable additional recreational area for the community. Sincerely, Rebecca Watling President 2315S292 nd St Federal Way, WA 98003 253-839-7284 cc: City Manager, Neal Beets City Attorney, Pat Richardson Parks Director, Donna Hanson Lois Watt Secretary 2027 S. 292nd St. Federal Way, WA 98003 253-839-2086 �\- Z CITY OF n Feder'aI WayProposed Park Site: �N Laurelwood Park 0 200 400 Feet Laurelwood Park Site Built Environment: Streams GIS Division Building Land & Boundaries: 100' ft Setback Area Paved Area Federal Way City Limits 835-7000 www.cityoffederalway.com Street County Boundary Natural Features: Quarter -Section Boundary JSurface Water City Owned Property Parcels Laurelwood Park Site (Nap Date: 7,2008 GIS Division Usable Area City of Federal Way 33325 8th Ave S 100' ft Setback Area F d Bai way8we 98063 Wetlands(253) -3 835-7000 www.cityoffederalway.com Is CITY OF Proposed Park Site: a `'� Federal Way Lauralwood Park �5 4,0 Feet naw, :. Y `i fiT�s '0 Walgreens Existing Land Use: Built Environment ' E( ^i 0, Zt PD t # e y: 211 ;+ ORR "j N i M ).. d \ , �UP Y r'rC�: t a�a+a amu, 4 Institutional (Private) Residential (Multi -Family) .- '0 Walgreens Existing Land Use: Built Environment s; E( ^i 0, Zt k N �j _ �- e y: Land &Boundaries: NNltw ORR "j N i M i� Paved Area Federal Way City Limits , zhm Institutional (Private) Residential (Multi -Family) .- County Boundary Institutional (Public) Residential (Single Family) Kh Quarter -Section Boundary Ata Industrial Utilities Surface Water City Owned Property M tial Vacant Land 1 \ LI >P Parcels '0 Walgreens Existing Land Use: Built Environment s; E( ^i 0, Zt sera ' is� ' N �j _ �- ) - :: Building Land &Boundaries: a a i� Paved Area Federal Way City Limits P \ " W Institutional (Private) Residential (Multi -Family) .- County Boundary Institutional (Public) Residential (Single Family) Kh Quarter -Section Boundary Ata Industrial Utilities Surface Water '0 Walgreens -s 4HOlti ppaft Existing Land Use: Built Environment ... r Streams • • Commercial Open Spaces, Golf Courses ) - :: Building Land &Boundaries: a a i� Paved Area Federal Way City Limits W Institutional (Private) Residential (Multi -Family) .- County Boundary Institutional (Public) Residential (Single Family) Kh Quarter -Section Boundary Ata Industrial Utilities Surface Water City Owned Property M tial Vacant Land 1 \ LI Wetlands Parcels E r a'4 -s 4HOlti ppaft Map Date: 7/2008 GIS Division City of Federal Way 33325 8th Ave S P.O.Box 9718 Federal Way, WA 98063 (253) 835-7000 www.cityoffede ralway.com Existing Land Use: Built Environment ... r Streams • • Commercial Open Spaces, Golf Courses ) - :: Building Land &Boundaries: Drainage Parks Paved Area Federal Way City Limits W Institutional (Private) Residential (Multi -Family) Street County Boundary Institutional (Public) Residential (Single Family) Natural Features: Quarter -Section Boundary Ata Industrial Utilities Surface Water City Owned Property Office Vacant Land 1 \ LI Wetlands Parcels Map Date: 7/2008 GIS Division City of Federal Way 33325 8th Ave S P.O.Box 9718 Federal Way, WA 98063 (253) 835-7000 www.cityoffede ralway.com COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: FORTE ELECTRIC RETAINAGE RELEASE POLICY QUESTION: Should the City accept the contract with Forte Electric as complete and authorize staff to release their retainage? COMMITTEE: PRHSPS Committee MEETING DATE: March 10, 2009 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Stephen lkerd, Interim PRCS Director DEPT: PRCS History: The City contracted with Forte Electric to upgrade the electrical system at the Steel Lake Annex brick house for the total amount of $26,509.00. This upgrade was part of a Council approved improvement project so the FW Historical Society could lease this building. Forte Electric has completed all the work within this contract. Prior to the release of retainage on any Public Works project, the City Council must accept the work as complete to meet State Department of Revenue and Department of Labor and Industries requirements. Expenditure Summary including tax: $20,430.00 — Budget from One -Time funding 3,890.00 — Change order to increase the service panel and add extra lights. 2,188.80 — 9% tax $26,508.80 Total expenditure $12,160.00 = 50% retainage held from the contract amount of $24,320.00 (not including WSST) Attachments: NA Options Considered:_ Accept the contract as complete or do not accept the contract as complete. STAFF RECOMMENDATION: Staff recommends Council accept the contract as complete and authorize staff to release the retainage in the amount of $12,160.00 to Forte Electric. CITY MANAGER APPROVAL: DIRECTOR APPROVAL: to Committee to Council to Committee To Council COMMITTEE RECOMMENDATION: Forward to full Council on March 17 for approval and accept the Forte Electric contract as complete and authorize staff to release their retainage. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: `I move to accept the Forte Electric contract as complete and authorize staff to release retainage in the amount of $12,160.00 to Forte Electric " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED �' 1ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: INTERLOCAL AGREEMENT FOR SOUTH END ARCH POLICY QUESTION: Should the City of Federal Way consider entering into an Interlocal Agreement with South King County Cities to create the South End ARCH (SEARCH) — Regional Coalition for Housing? COMMITTEE: PRHS&PS MEETING DATE: March 10, 2009 CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other STAFF REPORT BY _ Lynnette Hynden, Human Services Manager DEPT: Community Development Attachments: • Staff memorandum containing an examination of the proposed Interlocal Agreement as presented by the City of Auburn. • The Interlocal Agreement for South End ARCH - A Regional Coalition for Housing. Background: The City of Federal Way was approached and asked to consider executing an Interlocal Agreement for the purposes of acting cooperatively with other South King County Cities to formulate affordable housing goals and policies to foster efforts to provide affordable housing by combining public funding with private -sector resources. Staff was asked to review and examine the proposed Interlocal Agreement, to which attached is the results of such exploration and comparison between the East Side ARCH and the feasibility of creating a South King County ARCH. STAFF RECOMMENDATION: Staff is seeking further direction and guidance from Council on this Policy Question. CITY MANAGER APPROVAL:DIRECTOR APPROVAL: W Committee Council Committee Council COMMITTEE RECOMMENDATION: I move approval of option Jeanne Burbidge, Chair Jim Ferrell, Member PROPOSED COUNCIL MOTION: "I move approval of option Michael Park, Member Cr (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # Cr CITY OF Federal Way MEMORANDUM TO: Parks, Recreation, Human Services and Public Safety Committee VIA: Cary Roe, P.E. Assistant City Manager/COO G'� FROM: Lynnette Hynden, Human Services Division Manager DATE: February 26, 2009 RE: Interlocal Agreement for South End ARCH CC: Greg Fewins, Community Development Services Director Human Services Commission ARCH — East King County "A Regional Coalition for Housing (ARCH)" is a collaborative group of cities from East King County who jointly fund the professional housing staff acting on their behalf for the collective group. It has taken ARCH around 10 years to organize, build and achieve consensus at the level they are currently operating. There are 15 participating cities and the ARCH staff is comprised of a Manager, two housing planners, and two clerks, one full-time and one part-time. In 2006 the annual operating expenses totaled $417,983. Cash contributions from the cities total $301,445, coupled with in-kind contributions from five cities of $116,603 cover the operating costs of ARCH. ARCH provides project assistance, housing policy planning — both regional and countywide -- housing program implementation and support/education/administrative activities. South End ARCH — Interlocal Agreement proposal A draft Interlocal Agreement for South End ARCH, or SEARCH (attached), has been circulated among a few South King County cities. The agreement reflects the same goals and outcomes as the ARCH agreement from East King County. The outcome is to have a collective group of South King County cities who collectively and collaboratively work together to fund housing projects in South King County. The City of Auburn drafted the agreement hoping to move toward a shared approach in South King County. Achieving the common goal of having housing available that will meet the needs of all income levels in our communities is the basis for circulating the agreement. The invitation to join in and create a coalition with other South King County cities to achieve the same goals as East King County cities through their ARCH organization would not be feasible without financial support and possibly personnel support. Although the draft agreement does not define or assign costs to the participants, it is implied that in order to effectively perform the duties as outlined, SEARCH will need funds to operate; otherwise, the agreement is a "shell" that cannot be put into action. &Z The agreement states that the cities of Auburn, Enumclaw and Federal Way have adopted policies supporting an active approach to increasing the supply of affordable housing for their residents. While that is a true statement, in part, collectively all of the South King County cities agree there is a need and impact of increasing the affordable housing supply. The underlying motivation of the agreement is to "cooperatively formulate affordable housing goals and policies and to foster efforts to provide affordable housing by combining public funding with private -sector resources." The East King County ARCH model has been successful in obtaining county and state funding. SEARCH, according to the draft agreement, will be the mechanism which puts the vision of collaboratively working together in South King County into action. Specifically, the agreement deliruates roles and responsibilities on a perfunctory level. The coalition as stated will be governed by an Executive Board comprised of the chief executive officer from each party. There will be an administrative staff and a Citizen Advisory Board. However, costs and how they will be incurred or contribution levels from each city to operate an administrative staff or boards have not been defined. The agreement further goes on to state that SEARCH shall have responsibilities and authority to provide recommendations regarding allocation of public funding for affordable housing purposes. Conditions may be placed on the use of the funds. Recommendations from SEARCH shall assist in developing strategies and programs to achieve Growth Management Act housing goals. They will also provide technical assistance to those who will adopt land use incentives or affordable housing programs. SEARCH administrative staff (they are not defined) will probe model programs, develop draft legislation, prepare briefing materials and make presentations to planning commissions and councils upon request by a party to the agreement. SEARCH will also work directly with private developers, financial institutions, non-profit corporations and other public entities to assist in the implementation of affordable housing projects. SEARCH staff will work with parties to provide technical assistance regarding public funding and regulatory agreements for private developments. In addition, the draft agreement states that SEARCH will develop and carry out procedures for monitoring affordable units and administer direct service housing programs on behalf of any party to the agreement. (The state and King County have a 40-50 year housing availability period for monitoring) In order to perform the functions as outlined above, SEARCH will establish a special fund with participating cities and enter into contracts and agreements for personnel and other necessary services. Any party providing personnel to SEARCH shall remain solely responsible for the continued payment of any and all compensation and benefits. To withdraw from the interlocal agreement, if adopted, a party must provide a 12 -month notice. Summary The South End ARCH (SEARCH), as proposed, lacks critical details. Without further discussion or supplemental documentation, the particulars on the individual city contribution formula and further detail on administrative duties and how they will be divided and/or financed are the most glaring questions needing immediate answers. While the overarching goal of collaboratively working within a coalition to meet the needs of the South King County cities is worth pursuing, other options should be explored that would have less costly risks, especially to the larger South King County cities. Further exploration of models in other jurisdictions could benefit in the decision-making process. L-3 "Housing" is a specialized field due to its complexity. Public and private financing is equally as complex in nature, from applying for the funds to monitoring and tracking. In addition, delivering direct service housing programs adds another layer and additional costs. Housing decisions impact neighborhoods which tend to require a graceful balance between private ownership and community needs. Staffing resources are very limited throughout King County. The cities in South King County have limited budgets and already work with restricted personnel and program costs. To achieve the goals set out in the draft agreement as a stand-alone agency who would assume the supervision of SEARCH in order to provide the technical expertise to support the goals of SEARCH similar to that of ARCH in East King County; it will take financial support and full dedication from all South King County Cities. Before executing the interlocal agreement the following issues should be considered: • The technical expertise that has to be cultivated and purchased to operate and function as outlined in the agreement. • The impacts to the cities in South King County and whether or not without other special funding sources it is feasible to expect cities to financially contribute at a level deemed necessary to support SEARCH staffing needs to achieve the deliverables as outlined in the agreement. • Consideration also must be given to whether it is more likely that a majority of the cities in South King County are in a position to support and join in the agreement because, without a majority of the cities, funding a coalition will not gain the strength or momentum necessary to make an impact. • Finally, the varying scale of economic instability within the South King County region has to be taken into consideration to determine if cities can not only provide affordable housing for their residents that need it, but also the ability to provide direct services to that resident. South King County per capita has a higher population of lower income families/individuals than the Eastside of King County. Alternatively, the City Of Federal Way could commit to establishing our own housing position dedicated to affordable housing and housing issues from which, at a later time, this position could be instrumental in organizing a collaborative agreement focused on housing in South King County. This would also provide the flexibility to address affordable housing needs in Federal Way with financial control. If you have any further questions or concerns, I can be reached at 253-835-2650 or lynnette.hyndenkcityoffederalway.com Interlocal Agreement for South End ARCH A Regional Coalition for Housing This Interlocal Agreement ("Agreement") is entered into by and between the Cities of Algona, Auburn, Enumclaw, Federal Way, and Pacific, municipal corporations organized under the laws of the State of Washington, and King County, a subdivision of state government (hereinafter referred to as "Parties"). This Agreement is made pursuant to the Interlocal Cooperation Act, chapter 39.34 RCW, and has been authorized by the legislative body of each jurisdiction. WHEREAS, the South End communities have a common goal to ensure the availability of housing that meets the needs of all income levels; and WHEREAS, the South End communities desire to provide a sound base of housing policies and programs in the South End and to complement the efforts of existing organizations to address South End housing needs; and WHEREAS, the citizen -advisory committees that support human and housing services in the South End cities have identified and desired to address the present and increasing need of supportive housing stock and programs to assist their residents; and WHEREAS, the Cities of Auburn, Enumclaw, and Federal Way adopted policies supporting an active approach to increasing the supply of affordable housing for their residents; and WHEREAS, the Parties have determined that the most efficient and expeditious way for the parties to address South End affordable housing needs is through cooperative action by the parties; and WHEREAS, the intent of this cooperative undertaking is not to duplicate efforts of non-profit corporations and other entities already providing affordable housing -related services; now therefore, IT IS HEREBY AGREED AS FOLLOWS: 1. PURPOSE. All Parties to this Agreement have responsibility for local and regional planning for the provision of housing affordable to citizens that work and/or live in the South End. The Parties desire to act cooperatively to formulate affordable housing goals and policies and to foster efforts to provide affordable housing by combining public funding with private -sector resources. The Parties further intend that this interlocal agreement serve as the legal basis for other communities within the SEARCH sphere of influence to cooperate in planning for and providing affordable housing; the Parties therefore encourage other South End communities to join the initial Parties in this endeavor. SEARCH interlocal 02/26/09 G5 - 1 - 2. STRUCTURE. To accomplish the purposes of this Agreement, the Parties hereby create an administrative entity to be called the South End A Regional Coalition for Housing ("SEARCH"). SEARCH shall be governed by an Executive Board composed of the chief executive officer from each Party. The Executive Board shall be assisted by an administrative staff and by a Citizen Advisory Board. 3. RESPONSIBILITIES AND AUTHORITY. In order to carry out the purposes of this Agreement, SEARCH shall have the following responsibilities and authority: a. To provide recommendations to the Parties regarding the allocation of public funding for affordable housing purposes. Those parties which request that SEARCH make allocation recommendations concerning the use of housing funds either individually or jointly with any other party(s), may place conditions on the use of those funds. SEARCH shall, at least annually, report to the Parties on the geographic distribution of all housing funds as recommended by SEARCH. b. To provide recommendations to the Parties regarding local and regional affordable housing policies. SEARCH will assist the Parties in developing strategies and programs to achieve Growth Management Act housing goals. SEARCH will provide technical assistance to any Party adopting land use incentives or affordable housing programs. SEARCH staff will research model programs, develop draft legislation, prepare briefing materials and make presentations to planning commissions and councils upon request by a Party. SEARCH will assist Parties in developing strategies and programs to implement county -wide affordable housing policies to meet the Growth Management Act objective for an equitable and rational distribution of low - and moderate -income housing. C. To facilitate cooperation between the private and public sector with regard to the provision of affordable housing. SEARCH will work directly with private developers, financial institutions, non-profit corporations and other public entities to assist in the implementation of affordable housing projects. SEARCH will work directly with any Party to provide technical assistance with regard to the public funding of affordable housing projects and the implementation of affordable housing regulatory agreements for private developments. SEARCH will also provide assistance in making surplus sites available for affordable housing and in developing affordable housing alternatives for such sites. d. To develop standard regulatory agreements acceptable to private and public financial institutions to facilitate the availability of funding for private and public projects containing affordable housing. e. To provide other technical advice to any Party upon request and to enter into agreements to provide technical assistance to other public entities on a reimbursable basis. C- G SEARCH interlocal - 2 - 02/26/09 f. To provide support and educational activities and to monitor legislative and regulatory activities related to affordable housing at the state and federal levels. g. To develop and to carry out procedures for monitoring of affordable units and to administer direct service housing programs on behalf of any Party. Such direct service housing programs may include but are not limited to relocation assistance programs, rent voucher and/or deposit loan programs, etc. h. To work directly with other public and private entities for the development of affordable housing policies and to encourage the provision of affordable housing. i. Pursuant to the direction of the Executive Board, to take other appropriate and necessary action to carry out the purposes of this Agreement. 4. EXECUTIVE BOARD. a. Membership. SEARCH shall be governed by an Executive Board composed of the chief executive officer of each Party. The Executive Board shall administer this cooperative undertaking pursuant to the terms of this Agreement and pursuant to any procedures adopted by the Executive Board. b. Chair. The Chair of the Executive Board shall be elected by the members of the Board from the Board membership; shall preside over all meetings of the Executive Board; and shall, in the absence of a Program Manager, process issues, organize meetings and provide for administrative support as required by the Executive Board. C. Alternate Member. Each member of the Executive Board shall be entitled to designate one alternate elected member who shall serve in the place of the member on the Executive Board during the member's absence or inability to serve. d. Powers. The Executive Board shall have the power to (1) develop and recommend a budget and work program to the Parties; (2) adopt procedures for the administration of SEARCH and for the conduct of meetings; (3) make recommendations to the Parties concerning planning, policy and the funding of affordable housing projects; (4) establish policies for the expenditure of budgeted items; '(5) establish a special fund with one of the participating cities as authorized by RCW 39.34.030; (6) hold regular meetings on such dates and at such places as the Executive Board may designate; (7) enter into contracts and agreements for the provision of personnel and other necessary services to SEARCH, including accounting and legal services and the purchase of insurance, and authorize the Chair or Program Manager of SEARCH, if any, to execute any such contracts, agreements or other legal documents necessary for SEARCH to carry out its purposes; (8) establish the responsibilities and direct and oversee the activities of the Program Manager; and (9) take whatever other action, SEARCH interlocal - 3 - 02/26/09 consistent with and subject to the limitations of this Agreement and governing By-laws, is necessary to carry out the purposes of this Agreement. 5. ADMINISTRATION AND OVERSIGHT. The Executive Board shall have final decision-making authority over all legislative and administrative matters within the scope of this Agreement. The Executive Board may delegate responsibility for general oversight of the operations of SEARCH to a Program Manager. The Program Manager shall submit quarterly budget performance and progress reports on the status of the work program elements to the Executive Board and the governing body of each Party. Such reports and contents thereof shall be in a form acceptable to the Executive Board. The Executive Board may, with the consent of the Parties, designate one of the Parties to provide administrative support services on behalf of SEARCH. SEARCH shall be staffed with personnel provided by the Parties and/or independent contractors contracting directly with SEARCH. Any Party providing personnel to SEARCH shall remain solely responsible for the continued payment of any and all compensation and benefits to such personnel as well as for any worker's compensation claims or any other claims arising from the negligence or omissions of the employee in performing his duties for SEARCH.. In the case of personnel directly contracting with SEARCH, the Parties shall be jointly and severally responsible for any claims, not otherwise covered by insurance, arising as a result of the negligence or omissions of such personnel. All Parties shall cooperate fully in assisting SEARCH to provide the services authorized herein. 6. MEETINGS OF EXECUTIVE BOARD. a. Frequency. The Executive Board shall meet as often as it deems necessary, but not less often than quarterly. b. Quorum. A quorum at any meeting of the Executive Board shall consist of the Board members (or alternates) who represent a simple majority of the Board's membership. C. Action. No action may be taken except at a meeting where a quorum exists. Action by the Executive Board requires an affirmative vote by a majority of the Board's membership. No action shall be taken except at a meeting open to the public. 7. CITIZEN ADVISORY BOARD. A Citizen Advisory Board is hereby created to provide advice and recommendation to the Executive Board on land and/or money resource allocation for affordable housing projects and to provide public relations and educational outreach services. The Citizen Advisory Board shall consist of not more than fifteen (15) and not less than twelve (12) citizen members. The Executive Board shall recommend a list of citizens to the Parties for their confirmation. In the event a citizen(s) recommended by the Executive Board is not confirmed by each Party, the Executive Board shall recommend additional citizens for confirmation by the Parties. SEARCH interlocal - 4 02/26/09 Citizen members appointed to the Citizen Advisory Board must have a knowledge and understanding of affordable housing and be committed to the furtherance of affordable housing in the South End. Appointments shall be for a four-year term with service limited to a total of two consecutive terms. The Executive Board shall adopt procedures for the convening and administration of the Citizen Advisory Board. A citizen member may be removed from the Citizen Advisory Board by the Executive Board with or without cause upon a majority vote of membership of the Executive Board. 8. MEETINGS OF CITIZEN ADVISORY BOARD. a. Frequency. The Citizen Advisory Board shall meet as often as it deems necessary, but not less often than quarterly. b. Quorum. A quorum at any meeting of the Citizen Advisory Board shall consist of the Board members who represent a simple majority of the Bcaid's membership. C. Action. No action may be taken except at a meeting where a quorum exists. Action by the Citizen Advisory Board requires an affirmative vote by a majority of those members attending a Board meeting where a quorum exists. No action shall be taken except at a meeting open to the public. 9. DURATION AND TERMINATION. This Agreement shall be of ten years' duration but shall continue in effect for subsequent five-year periods upon affirmative vote of a majority of the membership of the Executive Board. Any vote to continue the Agreement shall be taken not sooner than six months before, nor later than three months before, the end of the initial ten-year term or any subsequent five-year term. This Agreement may be terminated at any time by affirmative vote of a majority of the legislative bodies of the Parties to this Agreement. Upon termination of this Agreement, all property acquired during the life of the Agreement shall be disposed of in the following manner: (i) all property contributed without charge by any Party shall revert to the contributing Party; (ii) all property purchased by SEARCH after the effective date of this Agreement shall be distributed to the Parties based on each Party's pro rata contribution to the overall budget at the time the property was purchased; (iii) all unexpended or reserve funds shall be distributed to the Parties based on each Party's pro rata contribution to the overall budget in effect at the time the Agreement is terminated. 10. WITHDRAWAL. Any Party may withdraw from this Agreement by giving one year's written notice to the Executive Board, by December 31 in any year, of its intention to terminate, effective December 31 of the following year. Any Party withdrawing from this Agreement shall remain legally and financially responsible for any SEARCH interlocal - 5 - G 02/26/09 obligation incurred by the Party pursuant to the terms of this Agreement during the time the withdrawing Party was a member of SEARCH. 11. BUDGET. The budget year for SEARCH shall be January 1 to December 31 of any year. On or before June 1 st of each year, a recommended budget and work plan for SEARCH for the next budget year shall be prepared, reviewed and recommended by the Executive Board and transmitted to each Party. The recommended budget shall contain an itemization of all categories of budgeted expenses and shall contain an itemization of the amount of each Party's contribution, including in-kind services, toward that budget. No recommended budget or work plan shall become effective unless and until approved by the legislative body of each Party and finally adopted by the Executive Board. Approval of the budget by a Party shall obligate that Party to make whatever contribution(s) is budgeted for that Party. Such contribution(s) shall be transmitted to SEARCH on a quarterly basis at the beginning of each quarter unless otherwise provided in the budget document. In the event that any party is delinquent by more than three months in the payment of its budgeted contribution, such party shall not be entitled to vote on matters before the Executive Board until such delinquency has been paid. 12. DUES, ASSESSMENTS AND BUDGET AMENDMENTS. Funding for the activities of SEARCH shall be provided solely through the budgetary process. No separate dues or assessments shall be imposed or required of the Parties except upon unanimous vote of the membership of the Executive Board and ratification by the legislative body of each Party to the Agreement. An approved budget shall not be modified unless and until approved by the legislative body of each Party and finally adopted by the Executive Board; provided that, in the event a Party agrees to totally fund an additional task to the work program, not currently approved in the budget, the task may be added to the work plan and the budget amended to reflect the funding of the total cost of such task by the requesting Party, upon approval by a majority of the membership of the Executive Board without approval by the individual Parties. 13. LIABILITY OF MEMBERS. Each Party shall be jointly and severally liable for . any claims, damages or other causes of action arising from the activities of SEARCH, its officers, employees and agents except as expressly set forth in Section 5 of this Agreement with regard to personnel directly provided to SEARCH by such Party; provided that, SEARCH shall take all steps reasonably possible to minimize the potential liability of the Parties, including but not limited to the purchase of liability, casualty and errors and omissions insurance and the utilization of sound risk management techniques. To the extent reasonably practicable, all Parties shall be named as additional insured on all insurance policies. 14. AMENDMENTS. Any amendments to this Agreement must be in writing, authorized by the legislative bodies of all Parties to this Agreement, and evidenced by the Authorized signatures of all Parties as of the effective date of the amendment. SEARCH interlocal - 6 - C^Io 02/26/09 15. ADDITIONAL PARTIES. Any South End jurisdiction having responsibility for planning or for providing affordable housing may, upon execution of the Agreement and approval of the budget and work plan by its legislative body, become a Party to this Agreement upon affirmative vote of a majority of the membership of the Executive Board. The Executive Board shall determine by a vote of a majority of its membership what, if any, funding obligations such additional Party shall commit to as a condition of becoming a Party to this Agreement. 16. SEVERABILITY. The invalidity of any clause, sentence, paragraph, subdivision, section or portion thereof, shall not affect the validity of the remaining provisions of the Agreement. 17. COUNTERPARTS. This Agreement may be signed in counterparts and, if so signed, shall be deemed one integrated Agreement. 18. FILING AND EFFECTIVE DATE. This Agreement shall become effective upon approval by the legislative bodies of at least three cities and upon filing with the city clerk of each city which is a party to this Agreement, the King County Clerk, and the Secretary of State. Approved and executed this day of 200. Name of Party By: City of Approved as to form City Attorney C-1 I SEARCH interlocal - % - 02/26/09 COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: FINALIZE FEDERAL WAY NEIGHBORHOOD STABILIZATION PROGRAM POLICY QUESTION: Should the City of Federal Way accept, from the State of Washington, the Federal funded Neighborhood Stabilization Program dollars ($651,688) for the intention of establishing a financing mechanism to purchase foreclosed homes within Federal Way? COMMITTEE: PRHS&PS MEETING DATE: March 10, 2009 CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearin ® City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Lynnette Hynden, Human Services Manager DEPT: Community Development Attachments: ■ Draft Federal Way Neighborhood Stabilization Program (NSP) with estimated households to be served. ■ Memorandum explaining details of the Federal Way NSP negotiated with the Washington State Housing Finance Commission (WSHFC). • Memorandum to Human Services Commission dated February 18, 2009, with attachments outlining program requirements, stakeholder input to date, and targeted Census Tracts for use of funds. Background: The City of Federal Way is designated to receive $651,688 in Neighborhood Stabilization Program funding through the State of Washington. The federal funded program is intended exclusively for the purchasing of foreclosed properties. Once ownership is transferred to the qualified low- to middle-income households, local communities will benefit by stabilizing the vacant housing stock in Federal Way. After reviewing the requirements for the use of NSP funds and a request for stakeholder comments, the Human Services Commission passed a motion to recommend that the Federal Way Neighborhood Stabilization Program be a partnership between the City Of Federal Way and the Washington State Housing Finance Program to provide down payment assistance to residents. Options Considered: L Finalize the City of Federal Way Neighborhood Stabilization Program to provide financing mechanisms for homebuyers to purchase foreclosed residential properties in the Census Tracts identified as having a high-risk of foreclosure through an agreement with the Washington State Housing Finance Commission. It is further moved that the City Manager, or his designee, be authorized to enter into the required agreements to carry out Federal Way's Neighborhood Stabilization Program. 2. Modify the recommendation for the City of Federal Way Neighborhood Stabilization Program (NSP). STAFF RECOMMENDATION: Accept option 1. CITY MANAGER APPROVAL: L� DIRECTOR APPROVAL: _,� Committee Council Committee Council COMMITTEE RECOMMENDATION: I move approval of option z)-1 Jeanne Burbidge, Chair Jim Ferrell, Member Michael Park, Member PROPOSED COUNCIL MOTION: "1 move approval of option (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE COUNCIL ACTION: COUNCIL BILL # ❑ APPROVED IST reading ❑ DENIED Enactment reading ❑ TABLED/DEFERRED/NO ACTION ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # RESOLUTION # REV IS ED — 02/06/2006 DRAFT — March 2, 2009 LOCAL NEIGHBORHOOD STABILIZATION PROGRAM SUMMARY 1. Jurisdiction: City of Federal Way Phone: 253.835.2650 PO Box 9718 253.835.2609 Address - Mail: Fax: 33325 a Ave S Address - Street: Tax ID: Federal Way, 98063-9718 Kin City, Zip: County: Lynnefte.Hynden@cityoffederalway.com Email: SWV: 2. Contact Person: L nnette H nden Title. Human Services Manager PO Box 9718 Address - Mail: 33325 8th Ave S 253.835.2650 Address - Street: Phone: Federal Way, 98063-9718 253.835.2609 City, Zip: Fax: Lynnede.Hynden@cityoffederalway.com Email: 3. Fiscal Year. From: January 1 To: December 31 4. Brief Description of Local Program: DRAFT - The City of Federal Way will utilize the Neighborhood Stabilization Program (NSP) to establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft -seconds, loan loss reserves, and shared -equity loans. Financing mechanisms could also include first mortgages, bridge loans, and direct homeownership assistance, such as down -payment assistance programs. The program will be structured to serve residents with incomes between 50% median income and 100% area median income with at least 25% of funds dedicated to serve residents below 50% median income. Homes purchased utilizing this program must be located within the Census Tracts that have been determined to be at high risk for foreclosures: 300.02, 302.01, 302.02, 303.03, and 303.11. These Census Tracts have been determined to have the highest need based upon risk data furnished by the HUD Department of Policy Development and Research to target NSP funds to high risk neighborhoods. Up to 5% of available NSP funds will be used to administer the program. - DRAFT 5. Local NSP Award: $ 651,688 6. Certification of Authorized Official: As the authorized representative to act in all official matters in connection with the jurisdiction's participation in the State of Washington Neighborhood Stabilization Program, I submit this Local Neighborhood Stabilization Program Plan and commit to adhere to the laws and regulations governing the Neighborhood Stabilization Program. Signature Date Assistant City Manager/Chief Operating Officer Cary M. Roe, P. E. Emergency Manager Print Name Title �3 0 O N N L L cts LL i W fal Z U O, 0 _4) (Dm a3 d U ix a) ME = N c a0 a N O c1- o y s 0) w s C;) s rn s m a c ma 3 r �L -00 m�.c tea. a) -M W -- (D 4) o U 22, r-0 �w U =M.r- N CLma Oma a) Lom N .O r 0 e- c,:) E— Ca •a r- y 5 E :sE 6 .a M A N c N c E C7 E O O O O O O Y t N m O •- N E CI CL O CA (D M C) M M M N .� U N N a. 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E: C 3 CD 7 CD CL .(A f/� .�► ems-► ZO O C ' m o m N �;CL - `3 ,35 c' �m c a<m ms's s c m mom." 3=s m Q OCD 0 c 3 m s = ID `G V 0 7 (D cw Q 0 N a a 0 cn _=c CD CD L C CA s CO 0 0 o 0 o m m r 0 -� - o c o m � v CD ID (D — ii (D cD SF - co Z ' ::E -0 CA flY N N Z C n 3 s v m m m y CL 3 O o er a �0 cD v =r W. m a W d m s Q A N 0) O Q W N — � N 0` ( � O A ' 3 u0i n v to c o< tj• <D (D (D M_ .� 3 p� rn fD Q co N O 0 3 d) O 0 ®' I 03 C CL O h Z c O cr M N o O Q y &CS r M 3 � m Q ®' I 4 414� CITY OF Federal Way MEMORANDUM DATE: March 2, 2009 TO: Lynnette Hynden, Human Services Manager FROM: Kelli O'Donnell, CDBG Coordinator SUBJECT: Federal Way Neighborhood Stabilization Program - Washington State Housing Finance Commission Partnership I met with the Washington State Housing Finance Commission (WSHFC)'on February 24, 2009, to discuss details of a partnership to implement the Federal Way` Neighborhood Stabilization Program following the direction received at the February 23, 2009, Human Services Commission. As reported at the Commission meeting, the WSHFC currently provides House Key mortgages and down payment assistance to income qualified residents throughout the State including 28 House Key loans in Federal Way between July 1, 2007 and June 30, 2008, totaling $5.5 million and over $21 million in loans since 1997. The WSHFC has extensive experience in designing loan programs that meet the applicable funding regulations, Under the proposal being negotiated, Federal Way NSP funds would be added as a third mortgage to the first mortgage loan and down payment assistance (second mortgage) provided by the Washington State Housing Finance Commission House Key program for foreclosed` properties purchased in Federal Way within the requirements of the NSP. Federal Way NSP funds would expand the existing program to purchase foreclosed homes and provide down payment assistance sufficient to make the cost of housing affordable to the family. Housing is considered affordable when 30% or less of family income is needed to pay the cost of housing so that the household has income available to pay for other essential needs. According to the 2000 Census, 26% of Federal Way households were considered to have a severe housing cost burden with over half of their household income going to housing expenses. This creates a risk of housing instability and homelessness. In addition to addressing the re -use of foreclosed homes, the proposed program would create opportunities for homeownership that is affordable to residents to further stabilize the community. The program is being designed to target 25% of available funds to serve households at 50% area median income (AMI) to meet the requirement enacting legislation as the first phase of the program. Once this target is met, the program will be offered to residents with up to 80% AMI. The final phase of the program would raise the income limit to 100% of AMI should there not be enough households that are able to qualify and purchase the homes at 80% AMI as the deadline to spend the funding approaches. 100% AMI is the maximum income served by the House Key down payment assistance program that will be used with Federal Way NSP funds. The NSP legislation allows the program to serve up to 120% AMI but would require a higher contribution from Federal Way NSP funds to make the home affordable. Based on an analysis of bank owned properties and area median income for Federal Way as of February 26, 2009, the following targets were developed: • Based on 25% to allow for taxes & insurance The Washington State Housing Finance Commission has extensive experience in providing homeownership programs to residents while meeting the requirements of the funding source. The NSP funds offer some additional challenges to existing programs. The federal requirements allow the funds to only be used for purchase of homes that have completed foreclosure and transferred title back to the bank. Foreclosed properties must also be purchased at a discount that is calculated from an appraisal that meets HOME program requirements and was completed less than 60 days prior to the offer of. purchase. The discount must be a minimum of 5% and have an aggregate of a 15%discount. The required discount is a new federal requirement specific to this program. Since it will depend on the willingness of banks to give the discount, there is a risk that banks will be unwilling to sell foreclosed properties at an acceptable discount to meet this requirement. This is a risk of any program developed utilizing NSP funds. WSHFC's experience and reputation developing and implement homeownership programs and working with banks in the mortgage industry will be instrumental in meeting this requirement. The financial crisis has created an additional risk to the success of the proposed program. The Washington State Housing Finance Commission has not had a recent bond sale due to the current credit crisis. Bond sale proceeds are utilized for reduced rate first mortgages that are required to go with the House Key loans. The Federal Way Neighborhood Stabilization Program proposal relies on these mortgages with the down payment assistance provided by the House Key loans to piggy back on the NSP funds. Dee Taylor, Director of the WSHFC Homeownership Division, notes that there are efforts in the works to get these funds flowing again. With the current finance issues, it is not certain when first loans will be available for the House Key program. This presents a risk that we could nbt spend Federal Way NSP funds with the WSHFC. Since we have a limited time to utilize NSP funds, it is recommended that if the State has not been able to sell bonds by July 1, 2009, that the program be assessed to determine if it will be renegotiated with WSHFC to provide first mortgages with Federal Way NSP funds. Due to the limited amount of NSP funds available for this program, it is likely that only 2-4 foreclosed homes would be purchased and made available to households if first mortgages are provided with NSP funds. NoW CfYY OF Federal Way MEMORANDUM DATE: February 18, 2009 TO: Human Services Commission VIA: Lynnette Hynden, Human Services manager FROM: Kelli O'Donnell, CABG Coordinat SUBJECT: Federal Way Neighborhood Stab ization Program Background: The Washington State. Neighborhood Stabilization Program Local NSP Plan Guidelines are Attachment 1. Federal Way has been designated to receive $651,688 and must develop a local plan to submit to the State by April 1, 2008. As noted in Lynnette Hynden's memorandum of January 20, 2009, (Attachment 2) the Washington State Neighborhood Stabilization Program includes a number of conditions and limitations on how funding may be used based upon the enacting legislation: ` Staff met with Human Services Commission members Roger Freeman, Elizabeth Hughes, Carol Moe and Bob Wroblewski to review the Plan Guidelines, available information on foreclosures and risk of foreclosures and options to address foreclosed properties in Federal Way. A request for stakeholder input (Attachment 3) was e-mailed out to the contact list of agencies and community members serving Federal Way requesting, input on maps showing the areas in the City that have been identified as at high-risk of foreclosure and utilizing available funds for financing mechanisms for purchase and redevelopment of foreclosed upon homes/residential properties and/or the purchase and rehabilitation of homes/residential properties that have been abandoned or foreclosed upon to sell, rent or redevelop the properties. Due to the limited time to obligate funds, the subcommittee felt that the City of Federal Way Neighborhood Stabilization Program should not allocate funds to the NSP eligible activities to demolish blighted structures; or, redevelop demolished or vacant properties. Three responses have been received to date and are included as Attachment 4. Stakeholders were invited to submit comments in writing by 5:00 pm on Monday; February 23, or making public comment at the Human Services Commission meeting. The sub -committee has been in considering limiting the program to provide financing mechanisms for homebuyers to purchase foreclosed residential properties in Federal Way. The Washington State Housing Program has been providing services in Federal Way for first- time homebuyer programs and families with a disabled family member with second mortgages of $10,000 to $15,000. This program could be expanded to provide additional help to homebuyers purchasing foreclosed homes so that it could serve lower income residents and stabilize families that may have lost a job and/or are currently in need of affordable housing. The Consolidated Housing and Human Services Plan includes a strategy to provide affordable home purchase opportunities for 10 low- and moderate -income household in Federal Way. Should the Human Services Commission agree with the direction to move forward with targeting NSP funds developing a program to provide financing mechanisms for homebuyers to purchase foreclosed residential properties in the proposed Census Tracts, staff will begin negotiating the details with the Washington State Housing Finance Commission. The program would be designed to provide enough assistance to homebuyers to ensure that homeownership is sustainable while serving as many homebuyers as possible at the lowest area median income level feasible. Details of the final program will be reported back to the Commission at the March meeting. The recommendation to tairget funding to the proposed Census Tracts for financing mechanisms will be concurrently taken through for City Council approval in order to have a finalized plan to submit to the state by the April 1 2009, deadline. Motions: Option move to recommend that Staff be directed to prepare the City of Federal Way iahbor od Stabilization Plan to provide financing mechanisms for homebuyers to purchase foreclosed residential properties in the Census Tracts identified as having a high-risk of foreclosure, staff will begin negotiating the details with the Washington State Housing Finance Commission to be presented to the City �Councfl for consideration and approval prior to the April 1, 2009, submission deadline. It is further moved,that the City, Manaoer, or hls designee, be authorized to enter into the required agreements to cavy out Federal Way's Neighborhood Stabilization Program. Option 2: l move to recommend that Staff be directed to prepare the City, of Federal Way Neighborhood Stabilization Plan as modrfed by the Human Ser, Commission at tonight's meeting to provide:fnancing mechanisms for: homebuyers to purchase foreclosed residential properties in the Ce'nsu's Tracts identified as having a high nsk of foreclosure, staff will begin negotiating the details with the Washington State Housing Finance Commission to be presented�to the City Council for consideration and approval prior to the April 1', 20691. submission deadline. It is further moved that the City Manager, or his designee, be authorized' to enter into the required agreements to carry out Federal Way's Neighbprhood Stabilization - Program. Please contact me at (253) 835-2653 or kelli:odonnelIO-cituoffederalway.corrt:or Lynnette Hynden at (253) 835-2650 or lynnette.hyndenCcacityoffederalway.com if youlmve questions regarding the Neighborhood Stabilization: -Program or: this agenda item. D -I -o Attachment 1 0- Community, Trade and CTED lEconomic Development Washington State Neighborhood Program January 2009 Due Date: By April 1, 2009 Department of Community, Trade and Economic Development 906 COLUMBIA STREET SW • PO BOX 42525 ♦ OLYMPIA, WASHINGTON 98504-2525 Local NSP Plana Sgbmission _ 2 Areas of Greatest Need .................................. ...... ....... ............. 2 Distribution and Uses of Funds................................................................................. 3 Local Neighborhood Stabilization Program Summary .....................................................................;................... 6 Program Summary Instructions .............. ........ .......... .................................•............................................. 7 Project& Activity Detail .................................................. .............................................................................................. 7 Project & Activty Detail Instructions....... ................ ..........:..................................................... 9 AdministrationPlan ................................................................................................ 14 Neighborhood Stabilization Program Certifications.................................................................................................... 16 Applicant/Recipient Disclosure/Update Report_..:::.:.................................................................................................. 18 Appendix................................................ .................... ...........................:........................................................... 21, Neighborhood Stabilization Award Amounts - *Preliminary... ...,...; ..... 22 Summarized LISC Zip Code Level F6te*, 6Urd*eed Score List... .......... .,.....::.................................................. 23 2008 Income Limits - Neighborhood Stabilization Program.........:........`...•.........................................•••••.............• 26 Definitionsand Descriptions....................................................................................................................................... 29 Acquisition and Relocation Requirements.....................:............................................................................................ 30 CTED CONTACT INFORMATION Bill Cole Kaaren Roe lillanaging Director Program Lead Community Development Programs WA St CDBG Program Unit 360.725-3018 360.725.3018 KaarenR@cted.wa.gov BiIIC@cted.wa.gov www.cted.wa.gov/cdbg Local Neighborhood Stabilization Program Plan Guidelines The state Department of Community Trade and Economic Development (CTED) has been allocated $28,159,293 to establish and implement the Neighborhood Stabilization Program (NSP) in Washington State. The purpose of NSP -is to address the impact of abandoned and foreclosed homes in our neighborhoods and communities. Washington State's plan for distribution and use of the NSP funds has been approved by the US Department of Housing and Urban Development (HUD) and is available on CTED's CDBG website at www.cted.wa.gov/cdbg. By January 15, 2009, all but one jurisdiction on the funding list submitted a letter of intent to participate in NSP. The state will announce the final funding list by January 30, 2009, which will include revised award amounts. By April 1, 2009, jurisdictions on the final award list must submit to the state a detailed plan for use of funds, their capacity to obligate the funds to specific activities within the 18 month timeframe, and how at least 25 percent of the funds will benefit those with income levels at or below 50 percent of area median income. These plan guidelines provide the forms and format for submitting the local NSP plan to the state. Please read all the guidelines and understand the requirements of the NSP funds before finalizing the local NSP plan. Local NSP Plan Submission The local NSP plan must contain the following components: • Program Summary • Project & Activity Detail • Administration Plan • Certifications and HUD forms Plans are to be mailed (postmarked) by April 1, 2009 to: Attn: Bill Cole Community Development Programs Unit CTED PO Box 42525 9t' and Columbia St SW Olympia, WA 98504-2525 CTED will review the plans, and consult with local governments if modifications are necessary, to ensure each plan meets the requirements of the Housing and Economic Recovery Act of 2008 (HERA), the NSP and related CDBG regulations, and the state plan. Once approved by CTED, the local plan will be incorporated into an interlocal agreement between CTED and local government and entered into the HUD's database system. Areas of Greatest Need Washington State is distributing funds to jurisdictions facing the three need categories in the NSP statute: greatest percentage of home foreclosures, highest percentage of homes financed by a subprime mortgage related loan, and most likely to face a significant rise in the rate of home foreclosures. CTED sought to design a process for defining areas of greatest need and distributing NSP funds that would maximize the fund's impact by allowing local flexibility to respond to emerging needs and opportunities resulting from new foreclosures. Counties awarded funding are encouraged to work with the cities that may or may not have received NSP funding to stabilize neighborhoods impacted by foreclosures in the greatest needs areas within the county. To support the local identification of areas of greatest need, a list of zip codes with high foreclosure need scores is provided in the Appendix. T_`�)-I5 Distribution and Uses of Funds Eligible Activities Under the state's plan, NSP funds can: be used to:• . Establish financing mechanisms. for purchase and redevelopment of foreclosed upon homeland residential properties, in such mechanisms as soft -seconds, loan loss reserves, and shared -equity loans. Financing mechanisms could also include first mortgages, bridge loans, and direct homeownership assistance, such, as down -payment assistance programs; • Purchase and rehabilitate homes. and residential properties that have been abandoned or foreclosed upon, in orderto sell, rent,. or redevelop such homes and properties; • Demolish blighted structures; and • Redevelop demolished or vacant properties. Income 'Targeting All NSP -assisted activities must also meet a NSP national objective and the income targeting requirements. Beneficiaries of the funds must have income levels at or below 120 percent of area median income, with at least 25 percentof each award for purchaseiredevelopment of abandoned/foreclosed residential properties to benefit individuals or families with incomes at/below 50% of area median income. Jurisdictions are strongly encouraged to target the 25 percent of their funding to benefit income levels at or below 50 percent of area median income (very low-income) to address the housing needs of the homeless, those at risk of homelessness, and special needs populations. Jurisdictions are also encouraged to support their local ten year plans to end homelessness when deciding how to use NSP funds. Administration All funds must be administered in compliance with the federal NSP requirements. Up to five percent of a jurisdiction's award is available for administrative costs, with up to 2.5 percent available for administrative costs prior to the first activity expenditures. In addition, jurisdictions can use up to ten percent of any locally generated program income. Jurisdictions can charge eligible activity delivery costs, as defined in 24 CFR 570.206, to the particular direct activity performed. Employees paid in whole or in part with NSP funds must maintain time sheets indicating the hours worked on NSP activities for each pay period in accordance with OMB Circular A-87. Timely Obligation and Expenditure of Funds Funds must be obligated to specific activities within 18 months of the state's receipt of NSP funding. CTED anticipates receiving the HUD grant agreement by February 2009, with all funds to be obligated by August 2010. By February 2010, CTED will assess the status of the local NSP activity obligations and income targeting to determine the need for possible reallocation of funds. After the HUD grant agreement is signed, CTED will send award letters to the participating jurisdiction allowing them to incur eligible costs pursuant to 24 CFR 570.489(b). NSP funds will not be released until the NSP interlocal agreement between CTED and the jurisdiction is executed and the environmental review requirements are met Payment requests can be submitted to CTED not more often than monthly. Payment request guidance and forms will be made available. NSP payment requests are to reimburse expenses incurred and local procedures must be established to minimize the time between receipt of NSP funds and its disbursement. Funds in the amount of the initial award (whether from the initial award or from NSP program income) must be expended by July 30, 2013. 3 ✓BILI Prociram Income Program income is revenue within the definition at 24 CFR 570.500(a)(1) which is directly generated by activities carried out with NSP funds and received by a state, unit of general local government, or subrecipient [as defined at 24 CFR 570.500(c)], excluding revenue listed at 570.200(a)(2), (a)(4) and (a)(5). The state will allow the subrecipient jurisdiction to keep NSP program income received prior to July 30, 2013, to continue the income - generating activities or other NSP eligible activities upon state approval. This program income must be held, tracked, and redistributed by the subrecipient jurisdiction. HUD is currently clarifying whether program income received by a subrecipient and revenue received by private individuals/entities are to be treated differently; how revenue generated from NSP activities (A), (C) or (D) may be retained and used after July 30, 2013; and the requirements for reporting and returning program income. CTED will send supplemental guidance on program income when available. Acquisition and Relocation Any NSP funded acquisition, demolition or rehabilitation activity must be conducted in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) before funding for that activity is committed. Given the URA's extensive documentation requirements, the limited NSP funds, and the fur sling obligation timeframe, CTED strongly discourages the use of NSP funds for acquisition, demolition or rehabilitation activities for tenant occupied or commercial properties. If a property is acquired, rehabilitated or demolished, CTED discourages mixing NSP with other federal funds for this activity since this can undo NSP's alternative requirements. Contact CTED if a property being considered for NSP assistance is occupied under URA definitions. Activity and Progress Reports Each local NSP program must provide a quarterly status report for the state to submit to HUD through HUD's Disaster Recovery Grant Reporting (DRGR) system. Data including specific activity information, financial status, and beneficiary data will be maintained in this system. Specific reporting procedures will be provided. �") 5 LOCAL NEIGHBORHOOD STABILIZATION PROGRAM SUMMARY 1. Jurisdiction: Address - Mail: Address - Street. City, Zip: Email: Phone: Fax: Tax ID: County: SWV: 2. Contact Person: Address - Mail: Address - Street: City, Zip: Email Title: Phone: Fax: —. -_----- 3. Fiscal Year From: To: 4. Brief Description of local Program: 5. Local NSP Award: $ 6. Certification of Authorized Official: As the authorized representative to act in all official matters in connection with the jurisdiction's participation in the State of Washington Neighborhood Stabilization Program, I submit this Local Neighborhood Stabilization Program Plan and commit to adhere to the laws and regulations governing the Neighborhood Stabilization Program. Signature Date Print Name Title PROGRAM SUMMARY INSTRUCTIONS ➢ This summary should be the first page of the local NSP plan. Aovbhl ➢ This form must be submitted to CTED with an original signature. 1. The applicant jurisdiction must be a city or county. The Tax Identification number is usually a"91 -"number. The statewide vendor (SVW) number for the jurisdiction must be provided to expedite electronic funds transfer of the grant. 2. Provide information on the staff person to be contacted regarding the local NSP. 3. List the month and day of the jurisdiction's fiscal year from beginning to end. 4. 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O (D a (D CO -(D C' O 7 O 3 n m N w (D (D @ n xc0i mCL (D - 0�o 0 w3 h<< < 3 3�< rt m'mm- �mwnv� =mow 0 : (3 �, 0 3• -0 0 Q o.= CD _ 0 O ES (D m 69 (D = 3 w ca (D.O w n. CL!Il C (D =r (D'm M 0 W O 0 N (D o `� O. � (D (D W,w CL -I x0(D O 7% �<Z = : c c 3 ch - -0 (D 0(WD. w ZR ca (D (D (n (D CD, CL 0Q c ni cr = (D �, N .Q f w ca 67@ dal" 0 0• CA p C[Q o 3 CD (D=0 (D CL - 0 300 -w n ° 0 a of ID ' _ o m s OD 0 ,: CA • INCOME BENEFIT NSP activities must principally benefit low- and middle-income (LMMI) persons, with at least 25 percent of each jurisdiction's award used for the purchase and redevelopment of abandoned or foreclosed homes or residential properties to benefit low-income (LI) individuals or families. Although NSP changes the low and moderate income requirement level of the CDBG program, the remaining requirements of 24'CFR 570.208(a) and 570.483(b) regarding area benefit, housing, and limited clientele benefit remain unchanged; Ori the Projdd & Activity Detail sheet, each activity you list for NSP furid'tng must provide a description of how the income benefit will be achieved as outlined in the.tables below. in addition, local NSP files must maintain documentation of the actual income benefit for reporting purposes and for future state and federal review. incomesbelow 71 N , y� / ivVll fz✓��?' �� j �� Y' b'F a ri air J` 'yam' 9 £i �,.R"�£ i t�tS� S, �i 3 `i q F 3� �f Su r 4 c ✓ ,� ti- �: y r ,� c;� ��,t�z3.. 9a�a �. 3.t 3i a z 1 S xs ";- :° .. y �" :. � �-�'`���� ��,� ✓ice �,��./, ,c .rr a.. 4✓y.' Y,.�.,.w �,r.����r���,� � j ,�..: s� zl�,�', S�>��. Local NSP files must contain: Documentation that residents and properties assisted with NSP funds are located in LMMI areas and the basis for LMMI definition. The "upper quartile" provision for exception criteria communities cannot be used. 'J'Z115 II 12 ADMINISTRATION PLAN The state NSP plan allows flexibility for the local jurisdictions to partner with their local affordable housing organizations and other NSP recipients to administer the funds and implement the activities. Each subrecipient jurisdiction must demonstrate its capacity to manage its local NSP plan and submit an administration plan. ➢ Respond to the questions below and submit this page as part of the local NSP plan. ➢ Attach available policy and procedure documents as requested on the following page. How will you administer state NSP funds? ❑ Directly administer all funds ❑ Sub -grant all funds to local subrecipients ❑ Combination of direct administration and sub -granting to local subrecipients ❑ Combine administration of NSP assisted activities with another jurisdiction receiving NSP funds If funds are sub -granted: • How will you provide oversight of the sub -grantee and ensure compliance with federal and state requirements including environmental review, acquisition and relocation, labor standards, and financial: management? • Describe the monitoring plan to ensure accurate and timely quarterly reporting to the state on sub -grantee activities: How will you track the progress of NSP -assisted activities to ensure timely obligation and expenditure of funds? How will you receive and redistribute program income received prior to July 30, 2013, to NSP activities? Program income must be held, tracked, and redistributed by the subrecipient jurisdiction. Homeownership activities: Who will provide the required 8 hours of homebuyer counseling from a HUD -approved housing counseling agency; how will this be paid, and how will homebuyers be referred to the provider? 13 Describe the plan for informing LMMI populations of the available local NSP resources: Describe significant populations with limited English proficiency within your;jurisdiction and the plan for informing these populations of the available local NSP resources: How are the NSP -assisted projects supporting the goals and objectives identified in your local consolidated or comprehensive plans? Does your jurisdiction have a procedure for providing citizens the address, phone number, and times for submitting complaints and grievances, and providing timely written answers to written complaints and grievances, within 15 working days where practicable? ❑ No. CTED will contact you with assistance for meeting this requirement. ❑ Yes. Copy and submit it with this Administration Plan. Doesyourjurisdiction have a Residential Anti -Displacement and Relocation Assistance Plan under Section 104(d) of the Housing and community Development Act of 1974? ❑ No. CTED will contact you with assistance for meeting this requirement ❑ Yes. Copy and submit it with this Administration Plan. Does your jurisdiction have a fair housing plan or adopted a fair housing resolution in support of the Fair Housing Act? ❑ No. CTED will contact you with assistance for meeting this requirement ❑ Yes. Copy and submit it with this Administration Plan. Does your jurisdiction have (1) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically barring entrance to or exit from, a facility or location that is the subject of such non-violent civil rights demonstrations within its jurisdiction? ❑ No. CTED will contact you with assistance for meeting this requirement. ❑ Yes. Copy and submit it with this Administration Plan. 14 These certifications must be signed by the authorized official and a signed copy must be included with the local NSP plan_ NEIGHBORHOOD STABILIZATION PROGRAM (NSP) CERTIFICATIONS (1) Consistency with Plan. The housing activities to be undertaken with NSP funds are consistent with Washington State's Consolidated Plan, which means that NSP funds will be used to meet the congressionally identified needs of abandoned and foreclosed homes in the targeted areas set forth in the state's 2008 substantial amendment. (2) Acquisition and relocation. The jurisdiction will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the Notice for the NSP program published by HUD. (3) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701 u), and implementing regulations at 24 CFR part 135. (4) Citizen Participation. The jurisdiction meets the requirements of Sections 24 CFR 91.115 and 24 CFR 570.486(a), as modified by NSP requirements. (5) Use of funds in 18 months. The jurisdiction will comply with Title III of Division B of the Housing and Economic Recovery Act of 2008 by using, as defined in the NSP Notice, all of its grant funds within 18 months of receipt of the grant. (6) Use NSP funds 5120 of AMI. The jurisdiction will comply with the requirement that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income. (7) Use of 25% of NSP funds <_ 50 of AMI. The jurisdiction will comply with the requirement that at least 25 percent of the NSP funds made available to itwill be used for purchase/redevelopment of abandoned/foreclosed residential properties to benefit individuals or families with incomes do not exceed 50 percent of area median income. (8) Assessments. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate -income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate -income (but not low-income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (9) Excessive Force. The jurisdiction certifies that it has adopted (or will adopt) and is enforcing: (1) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically barring entrance to or exit from, a facility or location that is the subject of such non-violent civil rights demonstrations within its jurisdiction. (10) Compliance with anti -discrimination laws. The NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619) and implementing regulations, and will affirmatively further fair housing (Title VIII of the Civil Rights Act of 1968). (11) Compliance with lead-based paint procedures. The activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (12) Compliance with laws. The jurisdiction will comply with applicable laws. As the authorized representative to act in all official matters in connection with the jurisdiction's participation in the State of Washington Neighborhood Stabilization Program, I submit these certifications and commit to adhere to the laws and regulations governing the Neighborhood Stabilization Program. Signature Name Date Title 15 Applicant/Recipient U.S. Department of Housing OMB Approval No. 2510-0011 (exp. 1213112006) Disclosure/Update Report and Urban Development Instructions. (See Public Reporting Statement and Privacy Act Statement and detailed instructions on page 2.) Applicant(Recipient Information Indicate whether this is an Initial Report ❑ or an Update Report ❑ 3. Name area code): 12. Social Security Number or Employer ID Number. 5. State the name and location (street address, City and State) of the Droiect or 4. Requested/Received Part I Threshold Determinations 1. Are you applying for assistance for a specific project or activity? These 2. Have you received or do you expect to _receive assistance within the terms do not include formula grants, such as public housing operating jurisdiction of the Department (HUD). involving the project or activity in subsidy or CDBG Mode grants. (For further information see 24 GFR sec. this application, in excess of -$200,000 during this fiscal year (Oct. 1 - 4.3). Sep. 30)? For further information, see 24 CFR Sec. 4.9 ❑ Yes ❑ No ❑ Yes ❑ No If you answered "No" to either question 1 or 2, Stop! You do not need to complete the remainder of this form. However, you must sign the certification at the end of the report Part II Other Government Assistance Provides! or Requested f Expected Sources and Use of Funds. Such assistance includes, but is not limited to, any grant, loan, subsidy, guarantee, insurance, payment, credit, or tax benefit. Department/State/Local Agency Name and Address. Type of Assistance Amount Requested/Provided Expected Uses of the Funds kinum: use ^uuawnai pages it necessary.) Part III Interested Parties. You must disclose: 1. All developers, contractors, or consultants involved in the application for the assistance or in the planning, development, or implementation of the project or activity and 2. any other person who has a financial interest in the project or activity for which the assistance is sought that exceeds $50,000 or 10 percent of the assistance (whichever is lower). Alphabetical list of all persons with a reportable financial interest in the project or activity (For individuals, give the last name first) Social Security No. or Employee ID No. Type of Participation in Project/Activity Financial Interest in Project/Activity ($ and %) know; use huumonai pages it necessary.) Certification Waming: If you knowingly make a false statement on this form, you may be subject to civil or criminal penalties under Section 1001 of Title 18 of the United States Code. In addition, any person who knowingly and materially violates any required disclosures of information, including intentional non- disclosure, is subject to civil money penalty not to exceed $10,000 for each violation. I certify that this information is true and complete. X (MMM YYYY) �- 2, C1 17 Form HUD -2880 (3199) Instructions Public reporting burden for this collection of information is estimated to average 2.0 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed. and:completing: and reviewing the collection of information. This agency may not,conduct or sponsor, and a: person is not required to respond to, a collection information unless that collection displays a valid OMB control number. Privacy Act Statement. Except for Social Security Numbers (SSNs) and Employer Identification Numbers (EINs), the Department of Housing and Urban Development (HUD) is authorized to collect all the information required by this form under section 102 of the Department of Housing and Urban Development Reform Act of 1989, 42 U.S.C. 3531. Disclosure of SSNs and EINs is optional: The SSN or EIN is used as a unique identifier. The informationyou provide will enable HUD to carry out its responsibilities under Sections 102(b), (c), and (d) of the Department of Housing and Urban Development Reform Act of 1989, Pub. L 1.01.235, approved December 15, 1989. These provisions will help ensure greater accountability and integrity in the provision of certain types of assistance administered by HUD. They will also help ensure that HUD assistance for a specific housing project under Section 102(d) is not more than is necessary to make the project feasible after taking account of other government assistance. HUD will make available to the public all applicant disclosure reports for five years in the case of applications for competitive assistance, and for generally three years in the case of other applications. Update reports will be made available along with the disclosure reports, but in no case for a period generally less than three years. All reports, both initial reports and update reports, will be made available in accordance with the Freedom of Information Act (5 U.S.C.-§552) and:HUD's;implementing regulations at 24 CFR Part 15. HUD will use the information in evaluating individual assistance applications and in performing,jntemal.administrative analyses to assist in the management of specific HUD programs.,. The information will also be used in making the determination under Section 102(d) whether HUD assistance for a specific housing profect`is more than is necessary to make the project feasible --after taking account of'bther government assistance. You must provide all the required information. Failure to provide any required information may delay the processing of your application, and may result in sanctions and penalties, including imposition of the administrative and civil money penalties specified under 24 CFR §4.38. Note: This forth only covers assistance made available by the Department States and units of general local government that carry out responsibilities under Sections 102(b) and (c) of the Reform Act must develop their own procedures for complying with the Act. Instructions Overview. A Coverage. You must complete this report if. (1) You are applying for assistance from HUD for a specific project or activity and you have received, or expect to receive, assistance from HUD in excess of $200,000 during the during the fiscal year, (2) You are updating a prior report as discussed below; or (3) You are submitting an application for assistance to an entity other than HUD, a State or local government N the application is required by statute or regulation to be submitted to HUD for approval or for any other purpose. B. Update reports (filed by "Recipients" of HUD Assistance): General. All recipients of covered assistance must submit update reports to the Department to reflect substantial changes to the initial applicant disclosure reports. Line -by -Line Instructions. Applicant/Recipient Information. All applicants for HUD competitive assistance, must complete the information required in blocks 1-5 of form HUD -2880: 1. Enter the full name, address, city, State, zip code, and telephone number (including area code) of the applicant/recipient Where the applicant/recipient is an individual, the last name, first name, and middle initial must be entered. 2. Entry of the applicantfrecipient's SSN or EIN, as appropriate, is optional. 3. Applicants enter the HUD program name under which the assistance is being requested. 4. Applicants enter the amount of HUD assistance that is being requested. Recipients enter the amounf of HVP assistance that has been provided and to which the update report relates. The amounts are those stated in the application or award docurrrentation. NOTE:, in the case, of assistance that is provided.pursuant:tct contract over.a , period of time (such as project -based assistance under section 8 of the United States Housing Act of 1937), the amount of assistance to be reported includes all amounts that are -to be prov[ded over the term of the contract, irrespective of when they are to be received. 5. Applicants enter the name and full address of the project or activity for which the HUD assistance is sought. Recipients enter the name and full address of the HUD -assisted project or activity to which the update report relates. The most appropriate government identifying number must be used (e.g., RFP No.; IFB No.; grant announcement No.; or contract, grant, or loan No.) Include prefixes. Part 1. Threshold- Determinations - Applicants Only Part I contains information to help the applicant determine whether the remainder of the form must be completed: Recipients filing Update Reports should not complete this'Part.' If the answer to either questions 1 or 2 is No, the applicant need not complete Parts It and 111 of the report, but must sign the certification at the end of the form. Part 11. Other Government Assistance and Expected Sources and Uses of Funds. A Other Government Assistance. This Part is to be completed by both applicants and recipients for assistance and recipients filing .update reports. Applicants and recipients must report' any other government assistance involved in the project or activity for which assistance is sought. Applicants and recipients must report any other government assistance involved in the project or activity. Other government . assistance is defined in note 4 on the last page. For purposes of this definition, other government. assistance is expected to be made available if, based on an assessment of all the circumstances involved, there are reasonable grounds to anticipate that the assistance will be forthcoming. - Both applicant and recipient disclosures must include all other government assistance involved with the HUD assistance,.aswell as any other government assistance that was made available beforethe request, but that has continuing vitality at the time of the request Examples of this latter category include tax credits that provide for a number of years of tax benefits,; and grant assistance that continues to benefit the project at the time of the assistance request The following information must be provided: 1. Enter the name and address, city, State, and zip code of the government agency making the assistance available. 2. State the type of other government assistance (e.g., loan, grant, loan insurance). 3. Enter the dollar amount of the other government assistance that is, or is expected to be, made available with respect to the project or activities for which the HUD assistance is sought(applicants) or has been provided (recipients). 4. Uses of funds. Each reportable use of funds must clearly identify the purpose to which. they are to be put. Reasonable aggregations may be used, such as "total structure" to include a number of structural costs, such as roof, elevators, exterior masonry, etc. B. Non -Government Assistance. Note that the applicant and recipient disclosure report must specify all expected sources and uses of funds - both from HUD and any other source - that have been or are to be, made.available for the project or activity. Non-government sources of funds typically include (but are not limited to) foundations and private contributors. Part M. Interested Parties. This Part is to be completed by both applicants and recipients filing update reports. Applicants must provide information on: 1. All developers, contractors, or consultants involved in the application for the assistance or in the planning, development, or implementation of the project or activity and 18 �_ 2,3Z any other person who has a financial interest in the project or activity for which the assistance is sought that exceeds $50,000 or 10 percent of the'assistance (whichever is lower). Note: A financial interest means any financial involvement in the project or activity, including (but not limited to) situations in which an individual or entity has an equity interest in the project or activity, shares in any profit on resale or any distribution of surplus cash or other assets of the project or activity, or receives compensation for any goods or services provided in connection with the project or activity. Residency of an individual in housing for which assistance is being sought is not, by itself, considered a covered financial interest. The information required below must be provided. 1. Enter the full names and addresses. If the person is an entity, the listing must include the full name and address of the entity as well as the CEO. Please list all names alphabetically. 2. Entry of the Social Security Number (SSN) or Employee Identification Number (E)N), as appropriate, for each person listed is optional. 3. Enter the type of participation in the project or activity for each person listed: i.e., the person's specific role in the project (e.g., contractor, consultant, planner, investor). 4. Enter the financial interest in the project or activity for each person listed. The interest must be expressed both as a dollar amount and as a percentage of the amount of the HUD assistance involved. . Note that if any of the sourceluse information required by this report has been provided elsewhere in this application package, the applicant need not repeat the information, but need only refer to the form and location to incorporate it into this report. (it is likely that some of the information required by this report has been provided on SF 424A, and on various budget forms accompanying the application.) If this report requires information beyond that provided elsewhere in the application package, the applicant must include in this report all the additional information required. Recipients must submit an update report for any change in previously disclosed sources and uses of funds as provided in Section I.D.S., above. Notes: 1. All citations are to 24 CFR Part 4, which was published in the Federal Register. [April 1, 1996, at 63 Fed. Reg. 14448.] 2. Assistance means any contract, grant, loan, cooperative agreement, or other Than of assistance, including the insurance or guarantee of a loan or mortgage, that is provided with respect to a specific project or activity under a program administered by the Department_ The term does not include contracts, such as procurements contracts, that are subject to the Fed. Acquisition Regulation (FAR) (48 CFR Chapter 1). 3. See 24 CFR §4.9 for detailed guidance on how the threshold is calculated. 4. "Other government assistance" is defined to indude any loan, grant, guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect assistance from the Federal government (other than that requested from HUD in the application), a State, or a unit of general local government, or any agency or instrumentality thereof, that is, or is expected to be made, available with respect to the project or activities for which the assistance is sought. 5. For the purpose of this form and 24 CFR Part 4, `person" means an individual (including a consultant, lobbyist, or lawyer); corporation; company; association; authority; firm; partnership; society; State, unit of general local government, or other government entity, or agency thereof (including a public housing agency); Indian tribe; and any other organization or group of people. A-.�-> --31 APPENDIX • Neighborhood Stabilization Award Awards — Preliminary 1/09 • Summarized LISC Zip Code Level Foreclosure Need Score List • 2008 Income Limits • Definitions and Descriptions • Acquisition and Relocation Requirements 'D- 32- 1. MENEM Aberdeen $722,159 15. Pierce County $4,692,761 2. Centralia $373,336 16. Seattle $458,126 3. Clark County $1,577,664 17. Shelton $900,625 4. Everett $546,899 18. Snohomish County $2,313,822 5. Federal Way $651,688 19. Spokane $1,085,281 6. Ho uiam $428,292 20. 1 Spokane County $689,625 7. Kelso $410,554 21. Sunnyside $5P3,906 8. Kent $475,264 22. Tacoma $3,083,548 9. King County $2,285,126 23. To enish $240,757 10. Kitsap County $671,745 24. Vancouver $902,767 11. Lace $339,705 25. Walla Walla $292,870 12. Lakewood $626,793 26. Wa to $246,050 13. Moses Lake $314,519 27. Yakima $650,614 14. Pasco $402,141 28. Yelm $611,076 *All but one jurisdiction on the original funding list submitted a letter of intent to participate in state's Neighborhood Stabilization Program. The state will announce the final funding list by January 30, 2009, which will include revised award amounts. Z> -3� V1 O Cl o0 00 Cl! 00 O\ v'I M eF •-• •-• M O •� I:t 00 N '-O " d' M et• r- M n O 00 M a\ O ' N N M 'd-. M N M -+ M N M N N -• N N N N N O �G 00 O 00 0� O t� C- M M M O\ N CT r n "n CT 00 N C (- ON M %n w et ef- �o 't d N M pl O v'l M M --:r d' M M N N �' N N m N N 'O O C t0 3 �D..OA n M 1, — M t- ON — N O M N N. O Ot ttt OO h N n. cO QO O - -. 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O CO co V N O W CA O C» K3 omo W Cn V OD N A -% W O O V N N 00 O W O N O to O Cn O Cn Cr O 00 0 Cn cut Cn Cn O Cn cn O 0 O O O 0 0 O O O O 0 O O O O O � 3� Definitions and Descriptions HUD required definitions and description of these specific terms in the state's NSP plan: (1) BNghted structure — A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare in context of local laws and in accordance with the Revised Code of Washington (RCW). Washington State RCW 35.80A.010 states that blight on the surrounding neighborhood is any property, dwelling, building, or structure that meets any two of the following factors: • If a dwelling, building, or structure exists on the property, the dwelling, building, or structure has not been lawfully occupied for a period of one year or more; • The property, dwelling, building, or structure constitutes a threat to the public health, safety, or welfare as determined by the executive authority of the county, city, ortown, or the designee of the executive authority; or • The property, dwelling, building, or structure is or has been associated with illegal drug activity during the previous twelve months. (2) Affordable rent — The state NSP will adopt the HOME definitions of affordable rent and affordability period in 24 CFR 92.252(a), (c), (e), and (f), adjusted for the Neighborhood Stabilization Program's 50 percent and 120 percent target populations. These federal regulations are located on the state's CDBG website. (3) Continued Affordability — Continued affordability for each NSP -assisted property will be reinforced through the use of legal documents. Such documents include, as appropriate, a contract, a covenant running with the land, and a deed of trust and promissory note with recapture/resale provisions. (4) Rehabilitation Standards —The state NSP will follow the state HOME requirements for property standards prior to occupancy, as stated in the state :HOME Program Handbook and as follows: NO Construction _ • State and local code requirements; and; • ModehEnergy Code; Washingtoa State- energy code;, and .Handicapped accesstbitity req€�irements of the Fair Housing Act and Section 504 of the Rehabilitation Act O.e. projects of 5 or more units); and Site and Neighborhood Standards per 24 CFR Part 983.6 (b), when not in conflict with HERA's objective of addressing neighborhoods most impacted by foreclosures. Acouisition and/or Rehabilitation • HUD's Section 8 Housing Quality; Standards (HQS) as noted in 24 CFR 982.40;: and • All applicable local codes,. rehabilitation standards, ordinances, and "zoning ordinances; and • Handicapped accessibility requirements of the Fair Housing Act and Section 504 of the Rehabilitation Act where applicable (i.e. projects of 5 or more units). 28 Acquisition and Relocation Requirements The state's program will allow funding to demolish or convert residential properties if the activity meets certain conditions. The local jurisdiction must document that demolition or conversion is the best activity to stabilize the impacted neighborhood, how the activity is conducted in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA), and meets NSP income targeting. If the local jurisdiction identifies a property that includes low- and moderate -income (80 percent of AMI) dwelling units and determines that demolition or conversion is the best activity to stabilize the impacted neighborhood, then the jurisdiction must provide the following required data for CTED's DRGR system: • Number of LMI (80%) expected to be demolished or converted as a direct result of NSP -assisted activities • Number of NSP affordable housing units made available to LMMH (120%) expected to be produced by NSP - assisted activities • Number of dwelling units reasonably expected to be made available for households whose income does not exceed 50% of AMI Any NSP funded acquisition, demolition or rehabilitation activity must be conducted in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) before funding for that activity is committed. Given the URA's extensive documentation requirements, the limited NSP funds, and the funding obligation timeframe, CTED strongly discourages the use of NSP funds for acquisition, demolition or rehabilitation activities for occupied or commercial properties. If a property is acquired, rehabilitated or demolished, CTED discourages mixing NSP with other federal funds for this activity since this can undo NSP's alternative requirements. Contact CTED if a property being considered for NSP assistance is occupied under URA definitions. The minimum discount is 5% for each NSP property. In addition, the average discount for the subrecipient jurisdiction's NSP portfolio of properties is 15%. When buying foreclosed homes from lenders or other mortgages, the purchase price must be at a discount from the appraised value. The subrecipient jurisdiction must seek a "maximum reasonable discount' from the seller. 29 Attachment 2 A'A CITY OF Federal Way MEMORANDUM DATE: January 20, 2009 TO: Neal Beets, City Manager CC: Cary Roe, PE, Assistant City Manager Bryant Enge, Assistant City Manager FROM: Lynnette Hynden, Human Service Division Manager VIA: Greg Fewins, Community Development Services Department Director SUBJECT: Washington State Neighborhood Stabilization Program Background: The Housing and Economic Recovery Act (HERA) of 2008 established the Neighborhood Stabilization Program (NSP). Funding is provided through the US Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. The State of Washington through Community Trade and Economic Development (CTED) is required to allocate the funds based upon jurisdictions facing the three need categories in the NSP statute: greatest percentage of home foreclosures, highest percentage of homes financed by a subprime mortgage related loan, and most likely to face a significant rise in the rate of home foreclosures. Washington State NSP eligible activities include: A. Establish financing mechanisms; B. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon in order to sell, rent, or redevelop such homes and properties; D. Demolish of blighted structures; and E. Redevelop demolished or vacant properties Conditions and Limitations of Funding • Beneficiaries of the funds must have income levels at or below 120 percent of area median income. • Funds must be obligated to specific projects within 18 months of the state's receipt of NSP funding. • All funds must be awarded and administered in compliance with the federal NSP requirements. • Tracking of program income and monitoring of projects will continue through July 30, 2013. • The state CDBG program will use five percent of the award for its administration. Jurisdictions who receive NSP funding will be able to use five percent of their funding for administrative costs and charge eligible program delivery costs to direct activities. In addition, jurisdictions will be able to use ten percent of any program income that is generated. • Twenty-five percent of funds are to benefit income levels at or below 50 percent of area median income (very low-income), while the remainder can benefit income levels at or below 120 percent of area median income (middle-income). • The dollars are to be used on already foreclosed properties. It is not the intent to use NSP funds to halt or interrupt a foreclosure process. Z-43 City Of Federal Way Demographics: The City notified CTED of its intent to develop a plan. Deadlines: January 30, 2009 — CTED will announce final funding list. April 1, 2009 — FW will need to submit a detailed plan for use of funds, capacity to obligate the funds to specific activities within 18 -months. This needs to include a plan for at least 25% of the funds will benefit those with income level at or below 50% of area median income. Tentative Dollars: $651,688.00 Total Amount (after State 5% Admin) $137,198.00 Target dollars at less than 50% of AMI $32,584.00 Local 5% Admin Staff Recommendation: it is recommended that a subcommittee from the Human Services Commission assist Human Services staff in drafting a preliminary plan. The plan will be presented to the entire Human Services Commission for vote on February 23, 2009. Staff would then present the HSC recommendations to the PRHS&PS Committee. The presentation to the committee would have to occur in early March so that if recommended could be forwarded to Council in March as well in order to meet the deadline set our by CTED. ;sem Attachment 3 Federal Way Community Stakeholders: The City of Federal Way has been designated by the state Department of Community, Trade and Economic Development (CTED) to receive $651,688 to establish and implement a Neighborhood Stabilization Program (NSP). Funding is provided through the US Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. The purpose of NSP is to address the impact of abandoned and foreclosed homes in our neighborhoods and communities. All funds must be awarded and administered in compliance with the federal NSP requirements. Funds must be obligated to specific projects within 18 months of the state's receipt of NSP funding. The City of Federal Way Human Services Commission would like stakeholder input into the development of Federal Way's plan for the use of these funds. Federal Way is considering targeting the use of NSP funds to homelessness prevention activities that would stabilize neighborhoods through the use of funds to: 1. Establish financing mechanisms for purchase and redevelopment of. foreclosed, upon homes and residential properties, including such mechanisms as soft -seconds, loan loss reserves, and shared - equity loans. Financing mechanisms could also include first mortgages, bridge loans, and direct homeownership assistance, such as down -payment assistance programs; and/or, 2. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties. Due to the limited time to obligate funds, the City of Federal Way Neighborhood Stabilization Program will not allocate funds to the NSP eligible activities to: 1. Demolish blighted structures; or, 2. Redevelop demolished or vacant properties. The City is required to allocate the funds based upon the areas facing the highest need in the three need categories in the NSP statute: greatest percentage of home foreclosures, highest percentage of homes financed by a subprime mortgage related loan, and most likely to face a significant rise in the rate of home foreclosures. The following Census Tracts have been determined to be at high risk for foreclosures: 300.02, 302.01, 302.02, 303.03, and 303.11. These maps were developed based upon risk data furnished by the HUD Department of Policy Development and Research to target NSP funds to high risk neighborhoods. (Detailed information on the data used to produce these maps is available at: http://www.huduser.org/datasets/nsp target.html.) Beneficiaries of the funds must have income levels at or below 120 percent of area median income, with at least 25 percent of each award for purchase/redevelopment of abandoned/foreclosed residential properties to benefit individuals or families with incomes at/below 50% of area median income. At a minimum, $174,657 of funds allocated to Federal Way must be targeted to serve households below 50% Area Median Income (AMI). Priority will be given to projects that demonstrate the ability to meet these requirements and benefit lower income residents while stabilizing neighborhoods. The HERA legislation requires that homes be purchased at a discount below appraised value. Projects awarded Federal Way NSP funds must demonstrate how they will assure acquired properties will result in a 15% aggregate discount to the program. The City of Federal Way Human Services Commission is requesting comments from the community on Federal Way's Neighborhood Stabilization Program. Written comments may be submitted via e- mail to: kelli.odonnell()citvoffederalway.com or may be forwarded to: City of Federal Way, Attn: Kelli O'Donnell, P.O. Box 9718, Federal Way, WA 98063-9718. Prior written comments must be received 2'�_y5 by 5:00 p.m. on February 23, 2009, in order to provide time to copy andAistribute to.the,,: , Commission. Comments may also be provided during the public comment portion of the Human Services Commission meeting on February 23, 2009, at 5,30 -pm -at Federal_Way;City Hall. Please , RSVP to Kelli Q'Donnel by -5:00 p.m. on February16, 2009, if you plan to attend. the Human Services Commission meeting to provide comment at the above e-mail or by -phone at 253.835.2653 so that we can assure that we have adequate meeting room. Reasonable accommodations at the public meeting such as sign language interpretabon.or alternate formats for printed materials: are available for individuals with disabilities with advance notice. City Hall complies with: the American Disabilities Act. Please call Kelli O'Donnell at {253} 8351.2653 at least two business-, day in advance to request accommodation. For TDD relay service call l.-800-833- 6388/TDD or 1-800-833-6384/voice. Additional information is available at: Washington State Neighborhood Stabilization Program: www.cted.wa;gov/cdbg HUD requirementsfor the Neighborhood Stabilization Program -is available at: httpl/www.hud.gov/officeslcpcVcommunitydevelopmenVorograms/neighborhoodsgg/. Kelli O'Donnell, Human Services/CDBG Coordinator City of Federal Way Mailing: PO Box 9718 Federal Way, WA 98063-9718 Street Address: 333 5:.%ttAve S, Federal- ay Phone:.253.835:2653 Fax: -253.835.2609 sent bcc to protect your e-mail Predicted 18 Month Problem Foreclosure Rate by Census Block Groups Puget Sound Foreclosure Rate 0.00 - 0.1% 0.11 - 0.5% 0.51 - 1.0% 1.01 - 1.59/6 1.51-2.0% 2.01-2.5% 2.51 - 3.0% 3.01 - 3.5% 3.51 - 4.09/6 - 4.01 - 4.2% General Legend: Q Federal Way City Limits Potential Annexation Area Census Tracts = Census Block Groups Surface Water Source: HUD; 2000 Census 0 0.5 1 N Miles CITY OF Federal Way This map is accompanied by no warranties, and is simply agraphic representation. Estimated Foreclosure Abatement Risk by Census Block Groups (Scale of 1 - 10) 1 8u s. r 2Star z 2 9y, __. —Lake Puget 300. 3 4 l 298.02 Sound 3 4 1 s 2 t g 7 2 Steel ' ttafL�he 4 �: 303.05 _ 3 WDx 1 3 Z, .01 303.06 ti y e 299.02 +North 3 2 03.08 Lake 4 1 ?� ? 3 303.10 3 Lake E - -Geneva I Est. Abatement Risk ' + 1 z 4 yT 1 -- Low Risk FLL _� ,-3` . s 304.01 z 2 3l 1 30.04` r i ci 2; 3r 3 * d 3 u� 1l s Oos 1 [f4 q air a ms's hem ' z 4 { 5RM 01, 6 304.0 3 s z Rn 7 -- Medium High Risk.- 1LIEn7OCD%Wghbwh-Wd bit .tb t4lbat.Mi.xd ti General Legend: Source: HUD; 2000 Census Q Federal Way City Limits ,a 0 0.5 1 Potential Annexation Area N Miles Census Tracts CITY of Census Block Groups Federal Way Surface Water This map is accompanied by no warranties, and is simply a graphic representation. Kelli O'Donnell From: Faith Richie [fdchie@valleycities.org] ®� Sent: Wednesday, February 11, 200910:51 AM Attachment 4 To: Kalb O'Donnell Cc: Dawn Cheme; Dan McDougall-Treacy Subject: Written Comments - Neighborhood Stabilization Program Kelli — We have reviewed the city of Federal Way Human Services Commission's proposed Neighborhood Stabilization Program. We are strongly supportive of the focus on homelessness prevention activities —and in particular, want to support the idea of purchasing and renovating homes to serve low income families. in order to benefit both the low income residents and to stabilize the neighborhood we would recommend that you consider Supported Housing models, so that the affordable housing is paired with support services so that the families can be successful Thanks, Faith Faith Richie, Chief Executive Officer Valley Cities Counseling & Consultation 2704 "I" Street NE, Auburn WA 98002 e-mail: frichie@vallgvcities.org Phone: 253-876-3425 Fax: 253-735-411 I www.vall%ycities.com From: Sent: Peggy LaPorte [laportePegg ] To: Wednesday, February 11, 2009y10:04 AM Kelli O'Donnell Cc: Bob Wroblewski Subject: Re: Request for Stakeholders Input on the City of Federal Way Neighborhood Program Stability Hi Kelli, This is a very tempting and intriguing offer and one that I hate to turn down, but our board has discussed it d an decided that it would be in our best interest to maintain and hold steady and not id adding more housing at this time. We do not want to over tax our cos volunteers with what may be additional work in revamping a new unit, nor do we want to take on "more than we can chew" as an organization that has experienced exponential growth in the past year. Thank you for bringing this to our attention and good luck with the Neighborhood Stability Program. Peggy LaPorte From: Dini Duclos [dinid@multi-servicecenter.com] Sent: Monday, February 09, 200910:24 AM To: KeIG O'Donnell Subject: Neighborhood Stabilization Hi Kelli, I am responding as MSC's CEO to this. I would strongly support the first option of establising a financing mechanism to help people get back into housing. I think working with relators would be benefical and take the brunt of work off the staff. Dini No virus found in this outgoing message.://www.avg-antivirus.net/ Checked by AVG. Version: 7.5.552 /Virus Database: 270.10.19/1941 - Release Date: 2/9/2009 6:50 AM �I COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Ms. Ayako Gibbs POLICY QUESTION: Should the City of Federal Way, Federal Way Police Department accept the K9 Vest donation from Ms. Ayako Gibbs? COMMITTEE: Parks, Recreation, and Public Safety Council Committee MEETING DATE: March 10, 2009 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Chief of Police Brian Wilson Attachments: 1. PRHS&PS Memo Options Considered: 1. Accept the donation 2. Do not accept the donation STAFF RECOMMENDATION: Staff recommends Option 1. DEPT: Police Department ........... ...... ...... ....- - -.1-1-1- 1 -- CITY MANAGER APPROVAL: DIRECTOR APPROVAL: t,.Uk"I onm' e I C cil Committee Council COMMITTEE RECOMMENDATION: PRPS recommends Option _ Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # Mie CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: March 10, 2009 TO: Parks, Recreation, Human Services and Public Safety Council Committee VIA: Neal J. Beets, City Manager FROM: Brian J. Wilson, Chief of Police SUBJECT: Ms. Ayako Gibbs Background Ms. Gibbs is 85 years of age and legally blind. She was widowed last year after being married for 60 years. She was hospitalized for a medical condition and when she returned home, she could not find her dog. She called 911 for assistance. Officer Seth Hanson responded. He searched her backyard and found her dog, deceased from a tragic accident. The dog was a well trained 5 year old Chow that Ms. Gibbs raised with her husband. The death of her pet was a great loss to her. Lt. Sandy Tudor responded and assisted Officer Hanson in consoling Ms. Gibbs for several hours. Lt. Tudor and Officer Hanson took it upon themselves, off duty, to help Ms. Gibbs after the incident occurred. They attempted to acquire a dog for her, but after consulting with her and her adult son, decided that for many reasons, the timing was not right. Officer Hanson called Ms. Gibbs several times over the next few weeks to show her he cared and to make sure she was doing alright. Lt. Tudor visited Ms. Gibbs off duty and assisted in making arrangements for the dog to be cremated and placed in a memorial container. Ms. Gibbs called Lt. Tudor and Officer Hanson several times just to talk and cry over the loss of her pet. Ms. Gibbs was so appreciative of the Police Department's support and the efforts of our Lt. and Officer that she sent a thank you letter and a $500.00 donation to the Federal Way Police Department. Ms. Gibbs is in complete support of adding her donation to our account for the purchase of a K9 vest. She loves dogs and for her donation to go to the safety of our K9 makes her extremely happy. COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: — Crestwood Animal HospitalL i 1 POLICY QUESTION: Should the City of Federal Way, Federal Way Police Departments the K9 Vest donation from Crestwood Animal Hospital? COMMITTEE: Parks, Recreation, and Public Safety Council Committee MEETING DATE: March 10, 2009 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Chief of Police Brian Wilson DEPT: Police Department Attachments: 1. PRHS&PS Memo Options Considered: 1. Accept the donation 2. Do not accept the donation STAFF RECOMMENDATION: Staff recommends Option 1. CITY MANAGER APPROVAL: DIRECTOR APPROVAL: Co e ?Pk il Comnti{tee Council COMMITTEE RECOMMENDATION: PRPS recommends Option Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move to accept the Donation from Crestwood Animal Hospital for the purchase of a K9 Vest. ". (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REV IS ED — 02/06/2006 RESOLUTION # R CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: March 10, 2009 TO: Parks, Recreation, Human Services and Public Safety Council Committee VIA: Neal J. Beets, City Manager FROM: Brian J. Wilson, Chief of Police SUBJECT: Crestwood Animal Hospital K9 Vest Donation Background Crestwood Animal Hospital is the primary provider of veterinarian care for the Federal Way Police K9 program. In early January, 2009, the employees of Crestwood initiated a fund raising campaign to purchase a ballistic vest for K9 Fax, who is assigned to Officer Matt Novak. Research shows that K9 teams are 16 times more likely to be involved in a shooting than other officers due to the dangerous nature of the types of calls they track on. A K9 ballistic vest costs approximately $2000.00 dollars and is custom fit to each K9. K9 ballistic vests are not a regularly budgeted item for the K9 teams. Officer Novak recently advised that Crestwood has raised in excess of $2000.00 and is ready to make the presentation to the City of Federal Way to purchase a K9 ballistic vest for K9 Fax. I request that the City accept this donation for the purchase of the vest at the March 17th City Council Meeting. ]� -- 2- M&C4-ti COUNCIL MEETING DATE: 44- 3 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: 2008 Bulletproof Vest Partnership Grant POLICY QUESTION: Should the Federal Way Police Department accept the 2008 Bulletproof nest Grant award for $8,426 00 to pay for 50% of the costs for 22 new bulletproof vests? COMMITTEE: Parks, Recreation, Human Services & Public Safety Committee MEETING DATE: -Feb 10, 2009 CATEGORY: Consent ❑ Ordinance ❑ Public Hearing r City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Commander Steve Neal Attachments: DEPT: Police Department 1. Staff report to Parks, Recreation, Human Services and Public Safety Committee Options Considered: 1. Authorize the City Manager to accept the 2008 Bulletproof Vest Grant award in the amount of $8,426.00. a. The benefit of accepting this grant will save $8,426.00 in the Police Department's budget. 2. Do Not authorize the City Manager to accept the 2008 Bulletproof Vest Grant award in the amount of $8,426.00. a. If the grant is not accepted, the Police Department will have to assume the entire cost of the new bulletproof vests at the cost of $16,852.00. STAFF RECOMMENDATION: Staff recommends Option 1. CITY MANAGER APPROVAL: DIRECTOR APPROVAL:Q 4/� dam' ij ih � C Wil Conunittee Council COMMITTEE RECOMMENDATION: Parks, Recreation, and Public Safety Committee recommends Option _ Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move for approval of the 2008 Bulletproof Vest Grant Award and Authorize the City Manager Accept the Grant. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1sT reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REV [SED — 02/06/2006 RESOLUTION # City of Federal Way PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY To: Parks, Recreation, Human Services & Public Safety Council Committee From: Brian J. Wilson, Chief of Police Via: Neal J. Beets, City Manager Date: February 10, 2009 Subject: 2008 Bulletproof Vest Partnership Grant POLICY QUESTION: Should the Police Department receive grant funding in 2008 from the Office of Justice Program (OJP) to offset 50% of the costs for the purchase of 22 new bulletproof vests for police officers? BACKGROUND: The purpose of the Bulletproof Vest Partnership Act is to provide funding for 50% of the cost of bulletproof vests. Priority funding is given to smaller jurisdictions with populations under 100,000. The Police Department has participated in match grant funding in the previous years of 1999 — 2006. The intent of the Police Department is to use this grant money to purchase 22 new bulletproof vests at a cost of approximately $766.00 a vest, totaling $16,852.00. The grant request amount from OJP will be for $8426.00 with a local department match of $8426.00. COUNCIL MEETING DATE: March 17, 2009 ITEM#: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Interlocal Agency Agreement with Seattle PD, WASPC Grant, Gang Related Crime POLICY QUESTION: Should the City of Federal Way, Federal Way Police Department enter into an Interlocal Agreement with the Seattle Police Department to accept a portion of Seattle's WASPC Grant to use for Overtime in Gang Related Investigation? COMMITTEE: Parks, Recreation, and Public Safety Council Committee MEETING DATE: Marc;: 10, 2009 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Commander Kyle Sumpter DEPT: Police Department _.._....__......... ._......_.............._..._.._.._....._........._..._....___..._........._........._.__........_....._.__.......-._........_'.._..._....._...._.......__........_....---------- Attachments: _ ---__Attachments: 1. PRHS&PS Memo 2. Interlocal Agency Agreement with Seattle PD, WASPC Grant, Gang Related Crime Options Considered: 1. Accept Interlocal Agency Agreement 2. Reject Interlocal Agency Agreement STAFF RECOMMENDATION: Staff recommends Option 1. CITY MANAGER APPROVAL: DIRECTOR APPROVAL: .i ds Committee Council COMMITTEE RECOMMENDATION: PRPS recommends Option Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move approval of the Interlocal Agency Agreement, with the Seattle Police Department, to accept a portion of the WASPC Grant Related to Gang Crime, and Authorize Chief of Police Brian Wilson to sign such Agreement. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ❑ TABLED/DEFERRED,. ) ACTION Enactment reading ❑ MOVED TO SECOND ADING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: March 10, 2009 TO: Parks, Recreation, Human Services and Public Safety Council Committee VIA: Neal J. Beets, City Manager FROM: Brian J. Wilson, Chief of Polic G'__ SUBJECT: Interlocal Agency Agreement with Seattle PD, WASPC Grant, Gang Related Crime Background The purpose of this agreement is to make the Federal Way Police Department eligible for up to $5,000 in reimbursement for pre -approved overtime to assist in the investigation and prosecution of gang related crime. The Funding source: Seattle PD is the recipient of a $25,000 WASPC grant, which the Seattle Police Department seeks to divide among five partnering agencies. The Federal Way Police Department has been invited to participate as one of the five agencies. Interagency Agreement Executed by Seattle Police Department (SPD), a department of the City of Seattle, hereinafter referred to as "SPD", Department Authorized Representative: Lt. Ron Wilson 6105 1h Avenue PO Box 34986 Seattle, WA 98124-4986 and Federal Way Police Department (FWPD) a department of the City of Federal Way, hereinafter referred to as "FWPD", Department Authorized Representative: 33325 8`h Ave S PO Box 9718 Federal Way, WA 98063-9718 WHEREAS, SPD is the recipient of a grant through the Washington Association of Sheriffs and Police Chiefs (WASPC) to assist in the investigation and prosecution of gang related crime; and WHEREAS, SPD oversees and convenes bi-weekly meetings of a multi jurisdictional Special Gang Enforcement Taskforce intended to reduce crime and related activities perpetrated by identified criminal gangs in hot spot emphasis areas through a coordinated and comprehensive application of enforcement activities focusing on the dismantling of these criminal organizations; NOW THEREFORE, the parties hereto agree as follows: This Interagency Agreement contains seven (7) Articles: ARTICLE I: TERM OF AGREEMENT: The term of this Interagency Agreement shall be in effect until June 30, 2009 unless terminated earlier pursuant to the provisions hereof. ARTICLE II? DESCRIPTION OF SERVICES Under the direction of SPD's Gang Lieutenant, who will function as the Coordinator of the Special Gang Enforcement Taskforce, SPD officers along with FWPD officers will implement a coordinated approach to reducing crime and related activities perpetrated by identified criminal gangs in hot spot emphasis areas. SPD will utilize WASPC grant funding to reimburse participating FWPD officers to work on a pre - approved overtime basis, under the coordination of SPD's Gang Unit Lieutenant, to conduct pro- �43 active and follow-up investigations in identified hot spot areas; and to reimburse pre -approved overtime worked by FWPD Crime Analyst personnel for collecting, tracking, and reporting gang - crime data. In order to be reimbursable, overtime worked by FWPD personnel must be approved in advance by SPD's Gang Lieutenant. SPD may, at its sole discretion, utilize WASPC grant funding to purchase investigative equipment to assist the Taskforce in conducting gang investigations and collecting and reporting gang -crime data, i.e. a laptop, software license, air card, digital camera, and/or digital audio recorder. ARTICLE III: OPERATIONAL STANDARDS FWPD agrees to participate in the Special Gang Enforcement Taskforce and attend bi-weekly meetings of the group. FWPD agrees to attend court proceedings relating to cases that arise from working on the Special Gang Enforcement Taskforce at the employing jurisdiction's expense. FWPD agrees that informants are managed by the jurisdiction that the investigation arises out of. FWPD will maintain accurate records pertaining to gang contacts, investigations, and arrests, that will be collected and forwarded not less than monthly to Lt. Ron Wilson, Seattle Police Department, 610 5`" Avenue, PO Box 34986, Seattle, WA 98124-4986, to ensure timely quarterly statistical reporting to WASPC. (A Gang -Crime Data Reporting Form is included as an attachment to this Agreement.) ARTICLE IV: LIABILITY FWPD agrees to indemnify and hold the City of Seattle, its employees, officers and agents and SPD harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogation or other damages resulting from injury to any person (including injury resulting in death) or damage (including loss or destruction) to property, of whatsoever nature, of any person arising out of or incidental to the FWPD's participation in the Special Gang Enforcement Taskforce. FWPD agrees that any and all work related injury or illness incurred by a FWPD employee while working on this Special Gang Enforcement Taskforce shall be covered by the employee's employing jurisdiction, the City of Federal Way. Each jurisdiction participating as a member of the Taskforce shall assume liability for any and all personal injury, property damage, third party damage, or other damage resulting from a vehicle collision that occurs while acting in furtherance of, participation in, or incidental to the Taskforce and its mission. Each jurisdiction participating as a member of the Taskforce shall be solely liable for any and all claims, lawsuits, losses, costs, expenses, judgments, or other damages arising out of that jurisdiction's employees' actions or inactions while working on the Taskforce. Therefore, liability of one Taskforce jurisdiction that arises out of acting in furtherance of the Taskforce and its mission Page 2 of 4 shall not automatically attach to any other participating jurisdiction based upon Taskforce membership alone. ARTICLE V: VENUE STIPULATION — DISPUTE RESOLUTION This agreement shall be construed as having been made and delivered between the City of Seattle and the City of Federal Way and the laws of the State of Washington shall be applicable to its construction and enforcement. Any action at law, suit in equity, or judicial proceeding for the enforcement of this agreement or any provision hereto shall be instituted in King County, Seattle, Washington. ARTICLE VI: REIMBURSEMENT Requests for reimbursement will be made on a monthly basis and should be forwarded to SPS as soon as practical after the first of the month that follows the month for which reimbursemen+ i requested. Such requests should be forwarded by theft. Ji; S,�ee;u1 �.,� s�;gati;,,,,g to SPD's Gang Lieutenant for his review, approval, and submission to SPD's chain of command for processing. Overtime reimbursements for FWPD personnel assigned to the Special Gang Enforcement Taskforce will be calculated at the usual rate for which the individual deputies' time would be compensated in the absence of this agreement, excluding FICA and retirement ben, f ts. Each request for reimbursement will include the name, rank, overtime compensation rate, number of reimbursable hours claimed and the dates of those hours for each officer for whom reimbursement is sought. Each reimbursement request must be accompanied by a certification signed by an appropriate supervisor of the department that the request has been personally reviewed, that the information described in this paragraph is accurate, and the personnel for whom reimbursement is claimed were working on an overtime basis with the Special Gang Enforcement Taskforce. The maximum amount to be paid under this agreement shall not exceed five thousand dollars ($5,000). Requests for reimbursement must be received by SPD by June 30, 2009 to be payable. ARTICLE VII: AMENDMENTS No modification or amendment of the provisions hereof shall be effective unless in writing and signed by authorized representatives of the parties hereto. The parties hereto expressly reserve the right to modify this Agreement, by mutual agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by having their representatives affix their signatures below. FEDERAL WAY POLICE DEPARTMENT SEATTLE POLICE DEPARTMENT Brian Wilson, Chief of Police Attachment: Gang -Crime Data Reporting Form R. Gil Kerlikowske, Chief of Police Date: Page 3 of 4 Gang -Crime Data Reporting Form Special Gang Enforcement Targeting Gang Crime 1. Number of arrests related to Gang Crime: Comments: Number of gang investigations/arrests involving a drug trafficking organization (DTO): Comments: 3. Number of overtime hours spent on gang -related activity: Comments: 4. Number of officer field contacts made: Comments: 5. Number of gang members and gang affiliates contacted: Comments: 6. Number of gang related crimes in jurisdiction: Comments: 7. Number of gang related arrests in jurisdiction: Comments: 8. Number of gang related investigative reports involving weapons: Comments: H -G Page 4of4 SUBJECT: Information — Red -Light Photo Enforcement Program (Status Report) POLICY QUESTION: No policy question — Informational status reporting only. COMMITTEE: Parks, Recreation, Human Services and Public Safety MEETING DATE: March 10, Council Committee - (PRHS&PS) 2009 CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ® Other STAFF REPORT BY: STAN MCCALL/BRIAN J. WILSON DEPT: Police Department Attachments: 1. PRHS&PS Staff Memo Options Considered: 1. Informational Status Report for Council. STAFF RECOMMENDATION: Continue to monitor and evaluate this one (1) year pilot program scheduled to end July 2009. CITY MANAGER APPROVAL: DIRECTOR APPROVAL: Z✓jfv,���lc.-i A�-_ PCI Comnuttee Council COMMITTEE RECOMMENDATION: PRPS recommends Option Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move approval of this Red -Light Photo status report from the Police Department. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # �Z`S CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: March 10, 2009 TO: Parks, Recreation, Human Services and Public Safety Council Committee VIA: Neal J. Beets, City Manage FROM: Brian J. Wilson, Chief of Po 'ce SUBJECT: Red -Light Photo Pilot Program — Three Month Status Report Background Intersection safety is a priority for the Police Department. Red Light Photo Enforcement Programs enable municipalities to enhance safety at intersections, reduce accidents and injuries, improv e traffic flow and efficiency, and enhance citizen compliance with traffic control devices at intersections. Staff invested more than a year researching the advantages and disadvantages of Red Light Photo Traffic Enforcement Programs. Research was conducted into the public's perception, and acceptance of red light traffic cameras and the potential vendors available to provide this type of traffic safety technology. In February, 2007, staff recommended to the City Council that the City enter into a one-year Red Light Photo Enforcement `pilot' Program. Council agreed with staff's recommendation to proceed with a program under Seattle's contract with American Traffic Solutions (ATS) and the City entered into a contract with ATS in December of 2007. The Federal Way Municipal Court also entered into a partnership with ATS to perform specific administrative functions for photo enforcement proceedings. Two target intersections were identified (320th & Pacific Highway South and 348th and Enchanted Parkway) where red light violations were occurring. Research was conducted to install the necessary camera equipment and the City Council authorized a one (1) year pilot program of Red Light Photo Enforcement; beginning in August 2009 and ending in July 2009. Primary responsibility for the management of this pilot program was assigned to the Federal Way Police Traffic Unit Lieutenant. Specific procedures were established to help define the partnerships and to outline the various responsibilities for this pilot program. We have managed the contract with ATS and found the contract to be workable and the fees for services reasonable. The City of Federal Way is protected financially given specific contract language that addresses cost neutrality. Our current program is 100 percent violator funded. ATS provides a local service team for maintenance and repair with responsive technical support. 7-2— I -2- 1 Fees and reported revenues for October—December 2008 are as follows: 1VIONTH 3R FEES . REYE��E .. ,...' NET'TQ'CITY October $23,074.42 $44,189.00 $21,114.58 November $19,477.00 $78,520.00 $59,043.00 December $19,628.50 $98,431.00 $78,802.50 Identified measurable statistics for the two pilot intersections: 1 -Total Red -Light Photo infractions issued: 2008 — (Oct/Nov/Dec) = 4, 154 red light violation citations issued. 2 -Total infractions issued (at the two pilot intersections): In the 4th Quarter of 2007 - 160 officer initiated, traffic related citations issued. In the 4th Quarter of 2008 - 71 officer initiated, traffic related citations issued. 3 -Number and type of traffic accidents at the two pilot intersections (This number represents only the `angle/T-bone & rear -end type of collisions): 2007 = 17 2008 = 16 (This number includes 7 weather related, (ice & snow), collisions at the 3200' intersection) 4 -Total injuries reported: 2007 = 4. 2008 = 2. 5 -Assessment of traffic flow efficiency and safety at both pilot intersections: Red Light Photo has resulted in no perceptible negative impacts to the traffic flow. 6,300 violation incidents were reviewed with no resulting collisions. Perception is that compliance with traffic control devices has been enhanced. 6 -Review of citizen feedback and complaints during pilot program: *One citizen complaint was received during this quarter. The citizen claimed the `flash' from the red-light cameras cause seizures or headaches. We are notable to locate a reputable source to confirm this claim. The available medical data suggests that some seizures and headaches can be caused by strobe lights or multiple bright flashes of light. *We also received approximately 10 calls from citizens in support of the red-light photo project since we went live. Most callers say that they are seeing more compliance in the target areas because drivers seem to be obeying traffic control devices; particularly after they see the `flash'. 7 -Assessment of operational efficiency of ATS Red Light Photo Enforcement System: We reported a technical problem with one of the video cameras at the 3481h /Enchanted intersection in November. ATS replaced this camera within 24hrs. There have been no other operational problems. 2 7-3 8 -Review of inter -departmental coordination and relationships: (Court, Finance and Prosecutor's office). No issues to report. Operational coordination is progressing without issues to date. Recommendations: Early data suggests the Red -Light Photo Enforcement Program is showing results in the following areas: • Number of intersection violations identified • An apparent reduction in intersection accidents (when weather related conditions are considered) • Enhanced compliance with traffic control devices • System operating as designed with timely service and technical support • Positive citizen comments to the Police Department regarding the program outweighing negative comments • Non -budgeted net revenue to the City of approximately $159k during the final 3 months of 2008 No specific recommendations for program adjustment at this time. The Police Department is researching options/recommendations for the future of the Red -Light Photo Enforcement Program including: • Continuing with the Red -Light Photo Enforcement program at these two intersections on a permanent basis • Enhanced lane coverage at the two pilot intersections (if program continued on a permanent basis) • Addition of intersections in the City that meet program goals • Pilot project of two (2) School Zones to address child safety and reduce the speed of vehicles • Use of non -budgeted revenue for Police Department expenses associated with the program as well as enhanced traffic related education, prevention and enforcement programs • Use of non -budgeted revenue for reinvestment in traffic and neighborhood safety related initiatives The Police Department will continue to measure and evaluate the effectiveness of the Red -Light Photo Enforcement program with regard to safety, traffic flow, and citizen compliance with traffic control devices. 3 I COUNCIL MEETING DATE: April 7, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: KNUTZEN FAMILY THEATRE MANAGEMENT AND OPERATIONS POLICY QUESTION: Should the Council approve the proposal for management of the Knutzen Family Theatre? COMMITTEE: PRHSPSC MEETING DATE: March 10, 2009 CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Mary Faber, Recreation and Cultural Svcs. Sunt. DEPT: PRCS In November of 2008 City Council directed staff to develop a Request for Proposals (RFP) for management and operations of the Knutzen Family Theatre (KFT). Currently, KFT is owned and managed by the City. Attachments: 1. Staff Background Memo 2. RFP for Knutzen Family Theatre Management 3. Scoring Information 4. RFP Financial Analysis 5. Proposal submitted from Centerstage Theatre Conservatory 6. Proposal submitted from Tacoma Musical Playhouse Options Considered: 1. Accept the Request for Proposals from Centerstage Theatre Conservatory and authorize staff to negotiate a two agreement for management and operations with a management fee of $70,000 for year one and $75,600 for year two. 2. Accept the Request for Proposals from Tacoma Musical Playhouse and authorize staff to negotiate a two year .agreement for management and operations with a management fee of $90,000 for year one and $75,000 for year two. 3. Maintain current management operations at the Knutzen Family Theatre as a city owned and operated facility. 4. Provide alternative direction to staff. PANEL RECOMMENDATION: The Review Panel recommends Option 2. CITY MANAGER APPROVAL: DIRECTOR APPROVAL: to Committee to Council to Committee To Council COMMITTEE RECOMMENDATION: Forward the Council for approval on April 7, 2009. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: `I move approval of Option 2, acceptance of the Tacoma Musical Playhouse proposal for management of the Knutzen Family Theatre and authorize staff to negotiate a two year agreement with a management fee of $90, 000 for year one and $75, 000 for year two. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ^I ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # -Z 44k CITY OF Federal Way PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM DATE: March 4, 2009 TO: Parks, Recreation, Human Services & Police Council Committee FROM: Mary Faber, Recreation and Cultural Services Superintendent VIA: Neal J. Beets, City Manager SUBJECT: Knutzen Family Theatre Request for Proposals Background: Following Council direction in November of 2008 to develop a Request for Proposals (RFP) for the management of Knutzen Family Theatre, staff researched management models regionally and nationally to develop the RFP. Following a public submittal period, two proposals were submitted: Centerstage Theatre Arts Conservatory and Tacoma Musical Playhouse. A selection panel comprised of four members evaluated the written proposals and participated in an oral interview with each of the respondents. The committee was: Charlie Rathbun, Cultural Arts Program Manager, 4Culture Laurie Rose, Cultural Arts Manager, City of Auburn Heidi Horton, Financial Analyst, City of Federal Way Mary Faber, Recreation and Cultural Services Supt., City of Federal Way The criteria for the evaluation of the RFP is as follows: Selection Process and Criteria The proposals will be evaluated by a selection committee. The City intends to evaluate the proposals generally in accordance with the first 3 criteria itemized below. After this initial evaluation, the 3 respondents with the highest initial scores will be interviewed by the selection committee. 1. Project Approach (25 points) a. Understanding of the Scope of Work and the tasks to be performed b. Detailed plan or strategy to operate the space as a venue for performance rentals, arts -related, civic, and other activities. �-3 c. Response to narrative summary, staffing, marketing and box office and transition plans. d. Respondent's organizational capacity in successfully managing and operating a theatre. 2. Financial Feasibility and Cost Effectiveness (25 Points) a. How realistic is the proposal based on its economic assumptions. b. The experience and financial capacity of the respondent to perform duties and obligations of managing and operating a theatre. c. Reasonableness of the management fee proposed and clarification. 3. Assigned Key Staff (15 Points) a. Recent experience of key staff to and a description of the tasks to be performed by each staff person. b. Professional qualifications and education. 4. Experience of Entity (15 Points) a. Expertise of the entity and any contractors in the fields necessary to complete the tasks. b. Experience of recent similar experience, including adherence to schedules, deadlines and budgets. c. Results of reference checks. 5. Oral Interview (20 Points) Following the evaluation of the qualified, responsive submitted proposals under the criteria listed above, up to 4 respondents receiving the highest scores will be invited to an oral interview. The interview will consist of standard questions asked of each interviewed respondent. The interview will be rated with a final score for each of the sections, for a total score out of 100 points. Information on individual and group scoring of the materials is included along with additional financial analysis of each proposal. Request for Proposals for Knutzen Family Theatre Management February 11, 2009 Deadline for Submission: February 24, 2009, 5:00 p.m. Publication: Daily Journal of Commerce, February 11, 16, 2009 Federal Way Mirror, February 14, 18 City of Federal Way Website www.citvoffederalway.com 2/11-2/24/09 2 --E_ S Table of Contents Title Page Number I. Project Description........................................1 II. Area Demographics and Amenities ..................... l III. Scope of Work..............................................2 IV. Schedule.....................................................3 V. Submission Requirements................................4 VI. Evaluation and Selection Criteria........................6 VII. Terms and Conditions for Receipt of Proposals ....... 7 VIII. Required Forms..............................................8 Appendix A Knutzen Family Theatre Building Layout..............9 Appendix B Excerpt from Performing Arts Center & Conference Center Analysis..........................................10 I. Project Description The City of Federal Way is seeking proposals for the management and operation of the Knutzen Family Theatre ("Theatre"). Specific aspects of the management and operation of the theatre will be identified in the terms and conditions mutually agreed upon by the City and respondent selected as the most qualified entity. The City of Federal Way purchased the 12 acre Dumas Bay Centre property in 1993 from the Sisters of the Visitation Monastery. The site is located on a bluff overlooking the Puget Sound with views of the Olympic Mountains in the distance. The building located on the property is approximately 38,508 sq. ft. and serves as a multi -use facility. The conference and retreat function feature 4 meeting rooms and 67 overnight rooms. There is also a 234 -seat theatre known as Knutzen Family Theatre and recreation program spaces. Local, regional and international meetings and conferences and events are held on-site. One common parking area is shared among all users on site. Uses of the Knutzen Family Theatre will be coordinated with other activities occurring on the site. General Theatre Information: Parcel Number: Building Development: Current Management: Primary Non -Profit Rental Use: Building size: Zoning: Parking: Theatre seating capacity: Stage Dimensions: 25' 122-103-9146 2.2 million project in 1998, renovation of an existing chapel City of Federal Way Centerstage Theatre Conservatory Dumas Bay Centre -38,508 sq. feet, Knutzen Family Theatre occupies approximately 8,100 sq. feet of the building RS, Single 104 parking spaces, shared with Dumas Bay Centre 234 Stage opening -36'6" wide, 19' high, stage depth - See Exhibit "A". Other Spaces: Theatre lobby, men's and women's dressing areas, sound/light booth, rehearsal space, temporary storage, single bathroom, 2 office spaces, access to a designated box office. See Exhibit "A". II. Area Demographics and Amenities Federal Way is located in the southwestern corner of King County between Puget Sound and the Green River Valley, approximately 20 miles from downtown Seattle, 8 miles from SeaTac Airport, and 10 miles from downtown Tacoma. Incorporated in 1990, Federal Way is the third largest city in King County and the seventh largest city in the State of Washington with a current population of 86,500. In addition to the substantial resident base, Federal Way is home to a number of major corporations including Weyerhaeuser Company, World Vision and TOTE (Totem Ocean Trailer Express, Inc.). Federal Way residents and visitors also enjoy an array of attractions and recreational opportunities including the Federal Way Community Center (72,000 sq. foot facility with 2 pools, gyms class and rental spaces), Celebration Park (a 83.5 acre park with softball & soccer tournament complex), Enchanted Parks/Wild Waves (a 70 -acre amusement/theme park), Steel Lake Park (venue of summer concert series), Hylebos State Park (a 150 -acre reserve that protects wetlands and wildlife), Dash Point State Park (398 acres on Puget Sound), Pacific Rim Bonsai Collection, Rhododendron Species Botanical Garden, BPA Trail, Dumas Bay Centre (12 -acre park with a multi -use facility; and the Commons of Federal Way (a regional mall offering 115 diverse stores and restaurants). There is a strong arts community in Federal Way, and the City has been an active partner in promoting the arts. The arts community consists of six performing arts organizations including the prestigious Federal Way Symphony, and a professional theatre organization-Centerstage Theatre Arts Conservatory. The nine -member Federal Way Arts Commission takes an active role in enhancing arts in the community and is responsible for the displays in two visual arts galleries located in the City Hall and at the Knutzen Family Theatre; the 2% for arts program, the Red, White and Blues Festival and the provision of high quality arts opportunities for residents. The City completed an Arts and Conference Feasibility Study in January, 2008. Information regarding the Knutzen Family Theatre contained in the study is included as Exhibit "B". III. Scope of Work The scope of work ("Scope of Work") described in this Section is to be used as a general guide and is not intended to be a complete list of all work necessary for management and operations of the Theatre. A respondent (a "respondent" or "proposer") to this Request for and Proposals (this "RFP") may suggest modifications to the Scope of Work as part of its proposal. The Management entity will be responsible for all day-to-day operations of the Theatre including all financials associated with the operation subject to a negotiated management fee. The RFP should identify the proposed financial support needed from the City for the ongoing management and operation of the Knutzen Family Theatre. This should include a reasonable proposal for maximizing use of the Theatre to develop capacity for long- term, stable management of the Theatre and continuation of valuable civic services and programs. The City will maintain access to the Theatre to continue city -sponsored theatre and recreation programs -this will be a negotiated item with the Management entity. It is recognized that the Management entity will require funding beyond earned revenue to finance capital projects, equipment replacement, extraordinary maintenance, and other needs of the Theatre. These costs will be negotiated bi-annually as a part of the city's budget process. The Management and Operations Agreement with the selected entity will be for an initial two year period, with a renewal term available based on evaluation of the programming, finances and operations of the Theatre. A. City Goals: Maximize the use of the Theatre, maintain and preserve the facility, ensure accountability for fiscal and organizational management, serve as rental space for non-profit arts organizations and other users, serve as a location for civic activities and promote cultural arts growth in the community. B. The scope of the Management and Operations Agreement includes: • Coordination of use with Dumas Bay Centre and recreation programs; • Scheduling rental use of the theatre including local non-profit arts organizations; • Scheduling artists, performances, educational endeavors, and presentations; • Marketing and promotions; • Establishing rental rates and guidelines for the use of the facility; • Providing box office and customer services; • Providing technical theatre support, including proper maintenance of theatre equipment; • Hiring of or contracting for all necessary personnel; • Financial management for the facility operations; • Janitorial, housekeeping, general repairs and maintenance, utilities; • Facility management IV. Schedule The anticipated schedule for selecting a consultant is shown below. The anticipated dates for items 5 and 6 are merely estimates and are not binding on the City. A mandatory pre -proposal tour will be held on February 18, 2009, at 10:00 a.m., at the Knutzen Family Theatre. City representatives will be available to respond to questions regarding this RFP, the physical facilities, and the operating aspects of the Theatre. Proposal Phase Date 1. RFP is advertised and issued by the City ............. February 11, 2009 2. Mandatory Pre -Proposal Tour .............................. February 18, 2009 3. Proposals due (the "Due Date") ........................... February 24, 2009 4. Oral interviews with finalist ................................ February 27, 2009 5. Selection of respondent for negotiations March 18, 2009 -:y _G 3 V. Submission Requirements A. Time and Place for Submission of Proposals. Proposals must be received by 5:00 p.m., on February 24, 2009. Postmarks will not be considered in judging the timeliness of submissions. Proposals must be delivered in person or by courier or by mail to: Jeri -Lynn Clark, Purchasing City of Federal Way 33325 81h Avenue South P.O. Box 9718 Federal Way, WA 98063-9718 (253)835-2526 Respondents shall submit an original and 8 copies of the proposal, separately bound, in a sealed envelope clearly marked "Knutzen Family Theatre Management and Operations Proposal" to the above location. Neither electronically -transmitted proposals nor late submissions will be accepted. B. Format and Content of Proposals. Respondents interested in responding to this RFP must submit the following information, in the order specified below: 1. Qualification Statement (up to 2 pages) Provide a qualification statement, signed by a person authorized to bind the respondent to the representations, commitments and statements contained therein, with the following information: a. A description of the organizational structure of your entity (e.g., corporation, partnership, Limited Liability Company), the jurisdiction in which it is organized and date of such organization. b. The name, address, telephone number and facsimile number of the person authorized to represent your entity with respect to all notices, negotiations, discussions and other communications relating to your proposal, the selection process and any negotiations relating to the contract. c. A general description of all relevant experience and credentials pertaining to projects or transactions similar to the management and operations of the Theatre in size and scope, specifically any public-private partnership proj ects. d. A representation that your entity is in good standing in the State of Washington and has all necessary licenses, permits, approvals and authorizations necessary in order to perform the Scope of Work and conduct its business. If the respondent is comprised of multiple parties or would use other contractors, a duly signed qualification statement must be provided for each party. _�-I1�) 4 2. Key Staff; Past Experience a. Provide a list identifying (i) Executive Director, (ii) the facility manager, (iii) the role each key staff member will play in the project, and (iv) a written assurance that the key individuals listed and identified will be performing the work and will not be substituted with other personnel without the City's prior approval. b. Provide a description of the experience and qualifications of each key staff member, including brief resumes. c. Provide a description of past experience similar in scope to the management and operations of a theatre by your entity, including the location, term, type of facility, reference and telephone numbers, and contact names. Descriptions should be limited to 1 page for each item. The City may ask for supporting documentation substantiating claims of previous experience. 3. A Narrative Summary Include the nature and structure of the proposed management, and how the proposal addresses each of the goals as indicated. The narrative should address how the Respondent intends to divide its priorities between facility management, facility operation, facility maintenance and, if it chooses, presenting. The Knutzen Family Theatre is used extensively by non-profit arts organizations; respondent should include knowledge or abilities in working with non -profits. 4. A Staffing Plan Provide a organization chart, description of the key staff and the roles they will play within the organization. 5. Box Office and Ticket Sales Plan Provide a box office and ticket sales plan including any subscription sales and methodology for incorporating ticket sales with user groups and city uses. 6. Facility Utilization and Marketing Plan Describe the proposed schedule of rentals, events and other uses to maximize utilization of the building and the marketing strategies, resources, and experience to achieve those goals. 7. Transition Plan Provide a plan for the assumption of management and operations duties from the City. 8. References Provide references for your entity, the Executive Director and/or facility manager, and all key staff, including the name, address and telephone number of at least 3, but no more than 5, recent references. A respondent's submission of such 5 �-►1 references shall be deemed to be a grant of permission to the City to contact such clients any time to discuss the respondent and its work for such client. 9. Financials/Management Fee Proposal Provide last three years of financial statements. Respondent to include a detailed projected pro forma for two years of management and operations. The pro forma should include the proposed financial management fee for operating the theatre for year one and year two and clarification of proposed fee; If City elects to award a contract, the City intends to award the contract to the respondent that it considers will provide the best overall services and value. The City reserves the right to accept other than the lowest priced management and operations fee and to reject any proposals that are not responsive to this RFP. VI. Evaluation and Selection Criteria A. Minimum Qualifications 1. The respondent must demonstrate 3 years of experience in managing and operating performance facilities. 2. The respondent must demonstrate general knowledge of non-profit arts planning including booking, scheduling, box office, marketing, and collaborations. 3. Demonstrated financial and organizational capacity to manage a Theatre. Any proposal that does not demonstrate that the respondent meets these minimum requirements by the deadline for submittal of proposals will be considered non- responsive and will not be eligible for any award of the contract. B. Selection Process and Criteria The proposals will be evaluated by a selection committee. The City intends to evaluate the proposals generally in accordance with the first 3 criteria itemized below. After this initial evaluation, the 3 respondents with the highest initial scores will be interviewed by the selection committee. 1. Project Approach (25 points) a. Understanding of the Scope of Work and the tasks to be performed. b. Detailed plan or strategy to operate the space as a venue for performance rentals, arts -related, civic, and other activities. c. Response to narrative summary, staffing, marketing and box office and transition plans. d. Respondent's organizational capacity in successfully managing and operating a theatre. 2. Financial Feasibility and Cost Effectiveness (25 Points) 6 -T-1 2 _ a. How realistic is the proposal based on its economic assumptions. b. The experience and financial capacity of the respondent to perform duties and obligations of managing and operating a theatre. c. Reasonableness of the management fee proposed and clarification. 3. Assigned Key Staff (15 Points) a. Recent experience of key staff to and a description of the tasks to be performed by each staff person. b. Professional qualifications and education. 4. Experience of Entity (15 Points) a. Expertise of the entity and any contractors in the fields necessary to complete the tasks. b. Experience of recent similar experience, including adherence to schedules, deadlines and budgets. c. Results of reference checks. 5. Oral Interview (20 Points) Following the evaluation of the qualified, responsive submitted proposals under the criteria listed above, up to 4 respondents receiving the highest scores will be invited to an oral interview. The interview will consist of standard questions asked of each interviewed respondent. The interview will be rated with a final score for each of the sections, for a total score out of 100 points. VII. Terms and Conditions for Receipt of Proposals 1. 'The successful proponent will be required to possess or to obtain a City Business License. 2. The City reserves the right to reject any and all proposals, and to waive minor irregularities in any proposal. 3. The City reserves the right to request clarification of information submitted, and to request additional information from the respondent. 4. The City reserves the right to award the contract to the next most qualified entity, if the awardee vendor does not execute a contract within thirty (30) days after being awarded as the most qualified entity. 5. Any proposal may be withdrawn up until the date and time set above for submittal of the proposal. Any proposal not so timely withdrawn shall constitute an irrevocable offer, for a period of ninety (90) days to sell to the City the services 7 --�-13 described in the attached specifications, or until one or more of the proposals have been approved by the City administration, whichever occurs first. 6. The City shall not be responsible for any costs incurred by the respondent in preparing, submitting or presenting its response to the RFP. 7. If no single proposal satisfactorily meets the criteria above, the City may choose to award this proposal to more than one proponent, or to award only part of this proposal, whichever is in the City's best interests. VIII. Required Forms Before the City can award any contract, that contractor must file the following forms: 1. W-9 Taxpayer Identification Number and Certification 2. Signature Authority 3. Certificate of Insurance showing sufficient type of coverage and coverage amount as required by the City; and showing the City as additional insured. 8 --:K _) ul Fel NA The Knutzen Family Theatre 9 OF CYC UISTRAVELER **W.WM WORKROOM MTRAVELER LVISET41 HOLDNG ROOM HOUSE MO MIN _WWMWNM W, 91 ALI I ta&Operin Sr 36`6%Wx19'IrH -allows 1111110 subsooll'o 0-- REHEARSAL WWI - ROOM gownsman a Samoans The Knutzen Family Theatre 9 CYC UISTRAVELER **W.WM MTRAVELER LVISET41 HOLDNG ROOM HOUSE MO MIN _WWMWNM W, 91 I ta&Operin Sr 36`6%Wx19'IrH The Knutzen Family Theatre 9 Eiblit B C.H. JOHNSON CONSULTING, INC. foggrs W CAT*vzwr=m, SmArAmuftA4 F-vrATrCrwwLTayt� This sectim-i will explore the current performing arts market in Federal Way, Washington, the regional performing arts market, and the national performing arts market, Reviewing tl-& curfent'performing arts market and the Y-ftu&xn Fan* Theatre will determine the need for a new facility and if a need is deterrni,nod to be pie sen r, what orientation the new facility should take, ,k jeVj,%v of the tegional,perfornling attS Market is al sio required, to ageedtin what similar jwTfom-Ling arts contmunities !!I the area, am like and what types of facilities d"e commut-iWes utaim, did diliozfly, a tc-t of Aafio:nal <*mparable facilities was sd&--ted to explore p4ticinal, trends in performingart& Ktwtzen Family Theatre Knutzen Family Theatre, eral Way, Waahingtoft - Lomfed i -n VederoA Way, the Y,ftutmn Runily Theatre (KM) was built in 199& A $2--2 million project of the City, for %rhich the Federal Way Coalitim forPerforming Arts (MCPA), a 301 C3 non - profit organiza&n, raked $400,0M for amsMicttm- 'Me *eatre U naffiRd afWr longtime Federal Way regidents and dmorq the nuxbvn family. The Uwafte currently seats 234 poopig, and, isn't lar pe-Aou$h forReVeral PCYtM-ktW UgLIX gtOup& The M, located within the Dumas Bay Conferetuv Center, is an the Puget Sound, in a beautiful wtting. The facility is owned by the City and -run by one full time staff member supplemented with part time and temporary hands, The fa fid has seen firnited use as a rental. fodlity with. a local performing grouts (0--ntendage Th. eaz&e) as anclior tenant. A primary obkoactive of the City of Federal Way is to create more us^ - fear the facility. Currmfly the theatre is used, by a wide viarlay of $iroupa but mostly relies 011 the groups highlighted bvJf nv: Centurstage Theatre Knutzen F Theatre Workshop Ada Dance Company ■ Minh Avenue -c<hoolof Dance Tl w factlity also offers re'dital, space, which can mat up to 70 people. The lotiby featur" a, gallery where. selected works of local, visual arm community, are "played, rodwW Wpy Perkwwdng AM Goa ftr =W Catfttavee Cft*er spomb 5 P"9 1 f65tMilfty Aa Mpla MM"YOM 10 --5-1 � JOHNSON CONSULTING, INIC. "MT -j 441 9ffA?e0-M(ffX*X M4jM 6077 1 Q7 4,14tl42 SM I M! 663 670 f i5ma ls.m i,w 22,746 4SSSt 1M 1419" $3.M 47% 10% -2% 9% is% lam 12404 -121L Sirwe mueb of the theater is €f fart' upon relitair, and f1w ss ted rovemms produrod, the table below higNights c rental rates for the KFE --E- I --� AW&M WN4 PV Wmlng Arts Cwftr ow CW*R"n CWftr FqWMWty 144,706 11�5- 11!B A� 41 M muff —7-WI—A" PC" sis)"5 670� NM 6tit MJM 132 47% 10% -2% 9% is% lam 12404 -121L Sirwe mueb of the theater is €f fart' upon relitair, and f1w ss ted rovemms produrod, the table below higNights c rental rates for the KFE --E- I --� AW&M WN4 PV Wmlng Arts Cwftr ow CW*R"n CWftr FqWMWty 144,706 11�5- 11!B A� Cli. JOHNSON CONSULTING, INC. Rental Reskient Arts Orp« Non-Reeldent.: W,, CdmmerdW ta b F a,Qanizalbn (n�n, 3 hm) Adkillionat Costs Lob. Technician i i i' Deposit�. Ciurerit rental taus for tl�e iacifity range in -i for the different � of or t} :t utMze the theater. TIw rental sates of the KFT are inudi, iower ff tan the comparaW testi dnr* to the differoxv in facility amen - Wes. Althougl: the KtT is a fdoe venue, the facility is W in the sae league as t1w others prod' , Rental ralft are not current to mwket tiandards and ffiereime to MentW- wyet-tue is inevitable. The KPT Wli ty i rtat um4ijig the nwds requiredI , .mom of the I 1 ups' and only a s4lect (ew, have been using the KVT as a Mutt. The Kff is vel well utilize Porwidering its location, stale layout, coati ig Un -d"€ ns,� and %k of houge'latagmg limitations. TIW KFT caters to more than jus Pedomilng arts groups, they, also hit chursfi groups, arKi buainew evems, The national standard for traddng, use of a theater is pre9ftiled ixt number of lornafrt r Mayr Aax`idiar€i;is not po&sible fi- the T aatzen Family Theatre due to the limited pgrforminguse of the facility. I"he following tahle4kows € ys r conn head cyf hom used due to the lots hourly imp of the'rh , -S-1 t NO MY � "Ca3 y C,Ii. JOHNSON CONSULTING, INC. URM COWKWWW, SPOPTAXORbt qtr Tables -3 knittwo F - B x 17 61% is f may 15 58% julno 22 73% ly August 18 L # •-: 13 yy, 7 w to 32% i mmber 21 70% yy, �1' w 14 45% ®' aIgo , Mmihly VO urr xtty the KTT has a total of 145 days ol a The mmt s that are most actin for the deter are June and July, w itlx x, .73 and 71 per uslage for the motive month. These rnanths are pri ariy used ' the Childreds Family Theatre. FORDWing that, the .next greatest WWW comes in November, . a'd the facility is at,70 p' :`nt occupancy for the avai6ble date, As a rental iaa e"Iity, %fig tpo many unuwd dam hinder tlVe a to the appropriate amount.of revenues to cover ovmU averate tnontWdy 0-ccupancy is at 54 Percent.not great, it does not provide a tompeffing ry s®n to reriovate, Theatre while a potential new performing arts facility is in the Works, TIle. (Acwt could be retooled towards otkier uses, primmity co miry oriented pedftmantesl WMUS e0mmercW pnxl e a Wger and moro s+rtlsti t f In shfmmg the t0W Mg of facifity, eve also nm,�d to 4horw,,vhat that usage in bays of attend . Hj8hfighted ih Tyle a tong attendanCe reported by dw lam, --Y-h Feftal W*V P*kn*M AMCBMW MW Co.fflmm owtu SMOM 5 P4p 4 C-14, JOJHN5QN CONSULTING., INC} EAMMitiCMV"_rA_*V,5PAXf Mri IkAi f4T.11`f C{7A"$MWW, TaW Events 1 TOW, Seatli 234 MAUMd OccWarw, y.. Flag' j' Msumed Att dance3DJ 16 Atsumd Mrage Attendetwe. per' Event 1: The Imo' tuttetly has a total of 195 events hem at In the 234 seat th k _ Total attaldarke in t1w 2W6 seaman was an ammed 30,116. ` his was akn estirtute, ,calculated by the slafl at Ow KFTr they have nc4 been a e to cakutate tota3. attendees bewwoe the individual u that rent the Kn are reTmLsible for t ck+ event ,attendan-w- CtuTmtly the assumed occupactcy rate is 66 pen:Lmt. A we look at 0(fijer emparable f it number is getter, but very misleading lyeuse the size is maller than the cornparablv& Financiallytl tit r as doing itg best bo keep the -city* subsidy to a wirdmunt, but as the numb at org iratiorts lis there z da to be, gm -Liter ta accon-unodate, and, keep and attract cument and potAeptial LJSM� During this a ly* )sort Consulting met with neral clif'#erwt orb nations and City all of whom have a role,. goting a mw performjng arts eeriteat built in Fedew WaY. JOhnsm C It met with rep s -,tathres t the �� 1 ag wa � and tioxu .lo d s the current si tiers Infederal Way: •, Fetleml Way Chorale, Harmony kms, and ,het Gfie&Chorus Leri: Lyric,Opm Northwest .Fire and Ice Irish a Federal Way Symphony ■ 9th Avenuec Schoul of Lite • FligNine Community ; e ,e • Federal Way i kik is Schools __�-Z0 1 ce canmr 8"tkM S Pow 6 C.H. JOHNSON CONSULTING, INC. -from thege hAerviews, Jobnam Ctinsulting:fit invi uar la insight in% some of the Opportunities d dudkngrs that mv currently acing Federal Way and the pi,�rf in& a commmifty.: following is a summary of key observations: 0 iredera! Way aatains a paste fir the arts, a t� local performing arts ` g a F much in ofgetting their ori local fKility to showease their talents - z f a ice. i # � � �. � s r ♦ '' ` s b Y S y r•_ � f � b .r C d E a e� c m L m CD E m LL C d 7 C N tm a % Lo M O N O to O O M M In LO N ON LOO O LOW) 000 ti 00 M to N N N NM N N N N 00 �- — c-- b � r r r to N — — r- ^ M !0 7 O U LO to tC1 C O to N O ^ N O N O t0 O "T O O <t 1� r .-00 Cl ti 00 r N LO 00 1- LO N 00 r i N M c! 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N a-0 m �° iu wt�- ,O= O c Y ° 3 us M F- y •p a) C u. c = a a) w a) ° L. c = - o 3 m ° m a> L) U a E O > m LT e @ ca c .N �m N m > ami °' ai o U E T a) a= m C:� m ai c _ y m M E Y> U R a) rn 0 m a m> 'v ami N t= s m •� m n m aa) 0 •°o - a o 3 H o °, n 6 10- N tcl) tf1 LG I� Knutzen Family Theatre Management Proposal Analvsis -2-S \\cfwfile\users\PR\MaryJ\ParksCommittee\2009VCFT Mgmt Proposal Malysisl Cost to City 3/5/2009 2:40 PM STATUS qUO Operating Revenue $ 84,000 $ 79,000 $ 132,000 $ 122,000 $ 107,000 Operating Expense 188,000 138,000 149,000 189,000 240,000 Net Operating Loss (104,000) (59,000) (17,000) (67,000) (133,000) Indirect Costs 15,000 31,000 32,000 33,000 35,000 Capital Costs 9,000 - 35,000 14,000 4,000 Subtotal Other Costs 24,000 31,000 67,000 47,000 39,000 €'roposed �act _ CENTERSTAGE Management Fee 72,500 72,500 72,500 72,500 72,500 Indirect Costs 15,000 31,000 32,000 33,000 35,000 Capital Costs 9,000 - 35,000 14,000 4,000 Subtotal Other Costs 24,000 31,000 67,000 47,000 39,000 �e j At nd_pr Gd tersta Pr-.. y j ._ .( faro nosed Contract - TACOMA MU�.iCA , PLAY -OUSE Management Fee 82,500 82,500 82,500 82,500 82,500 Indirect Costs 15,000 31,000 32,000 33,000 35,000 Capital Costs 9,000 - 35,000 14,000 4,000 Subtotal Other Costs 24,000 31,000 67,000 47,000 39,000 , -2-S \\cfwfile\users\PR\MaryJ\ParksCommittee\2009VCFT Mgmt Proposal Malysisl Cost to City 3/5/2009 2:40 PM R ST, M Ci. i p,p. h10x 3141 , fedeW play, vqa 9$063 • www.centefstagetheatre,cnm RESPONSE TO CITY OF FEDERAL WAY'S REQUEST FOR PROPOSAL FOR KNUTZEN FAMILY THEATRE MANAGEMENT February 24, 2009 7-.-m I TABLE OF CONTENTS Page 2................................................Qualification Statement Page g................................................Key Staff; Past Experience Page 5 ................................................A Narrative Summary Page 7 ................................................A Staffing Plan Page'7................................................Box Office and Ticket Sales Plan Page'7................................................Facility Utilization and Marketing Plan Page 8................................................Transition Plan Page 8................................................References Page 9 . ............................................Financials/Management Fee proposal Appendix A.......................................Organization Structure Appendix B.......................................Financials Appendix C.......................................Letters of Reference Appendix D ....................................... Signature Authority; Certificate of Insurance QUALIFICATION STATEMENT a. Centerstage is a nonprofit 501(c)(3) corporation, it was organized on July 6,1981 in Seattle. b. Alan Bryce 11527 261h Avenue SW, Seattle WA 98146 (home) Centerstage, PO Box 3141, Federal Way WA 98063 2o6 932 81f1(home) 253 6611444 (office) c. Relevant experience and credentials Centerstage was founded in 1977 and incorporated in 1981. Except for a hiatus in the late eighties and nineties, it has served Federal Way ever since. Centerstage's management team includes years of experience in theatrical management (as Development Director, Executive Director and Artistic Director); and similar experience as a corporate executive. Centerstage's bookkeeper also serves in that capacity for the Broadway center for the Performing Arts in Tacoma. d. Centerstage is in good standing in the State of Washington and has all necessary licenses, permits, approvals and authorizations necessary in order to perform the Scope of Work and conduct its business. 3 2. Key Staff; Past Experience a. (i) Artistic Director/Executive Director: Alan Bryce (ii) Facility Manager: Seattle Scenic Studios, Director Craig Wollam. Seattle Scenic Studios will appoint an on-site Facility Manager. (iii) Artistic Director/Executive Director *In addition to duties as Artistic Director of Centerstage, which include selection of program, hiring of personnel, oversight of all artistic projects, budgeting and liaison with the community, the following new duties: *To supervise all personnel working within the Knutzen Family Theatre, including artistic, office, technical and custodial staff. *Additional programming of rentals and liaison with other performing arts groups within the community Technical Director (Seattle Scenic Studios) *To provide technical staff for all events taking place at the Knutzen Family Theatre, including, but not limited to Centerstage productions and presentations; rentals and production by community arts organizations; business and other rentals of the space. Officer Manager (Laura Campbell) Responsibilities for supervision of Box Office volunteers and all box office operations; creation of all marketing materials; supervision of House Management for all events taking place at the Knutzen Family Theatre Treasurer (Judy Kent) All matters relating to bookkeeping; liaison with accountants; responsibility for contracts with rentals or other organizations using the Knutzen Family Theatre Board of Trustees. (President, Chad Stalder) As a nonprofit corporation, Centerstage policies are established and monitored by a io-member Board of Trustees, which includes prominent members of the Federal Way community. (iv) Centerstage assures the City Federal Way that these key individuals will be performing the work as described and will not be substituted with other personnel without the City's prior approval. b. Experience and qualifications of each key staff member. *Alan Bryce, Artistic Director, Overground Theatre, London; Theatre Consultant, John F. Kennedy Center for the Performing Arts; Development Director, Proctor's Theatre, Schenectady, NY (also Artistic Director of Proctor's Too); Executive Director, Landers Theatre, Springfield, MO. *Seattle Scenic Studios is a nonprofit Technical Theatre Organization, which serves many theatres and other clients throughout the region, including: Seattle 4 Public Theater, Youth Theatre NW, Seattle Shakespeare Company, Bellevue Opera, The Seattle School District, Wooden 0 Productions, Book It Repertory, Spectrum Dance Theater, Storybook Theatre, The Attic Theatre, the Seattle Seahawks, The Village Theatre, The University of Washington... and many others. *Laura Campbell is a graduate of Western Oregon State College. Laura taught Elementary School Art in the Federal Way School District, was Manager of PetSmart in Federal Way and continues her lifelong education by taking courses in Graphic Design. *Judy Kent was a consultant to Frank Russell Co. She was also Controller of Rocky Mountain Traders, Inc. where she was responsible for all financial reporting and office management for this commodity exporter. Also Chief Financial Officer of Kleinwort Benson Cross Financing, Inc. a securities derivatives dealer. She served as Vice President of First Interstate Bancorp and a Supervisor at Ernst & Ernst, Audit Supervisor. C. Past Experience in Management and Operations of a theatre (i) Centerstage has not managed a facility comparable to the Knutzen Family Theatre. It managed its small studio facility in the Spectrum Business Park as a 48 -seat theatre, and has retained Office Space in the same facility since 1997. References to Centerstage's tenure at Spectrum Business Park may be obtained by contacting Steve Redford, CAM Management at 253,588 9158 (ii) Alan Bryce managed the 600 -seat Landers Theatre in Springfield, MO from 2000 through 2002 and London's 12o -seat Overground Theatre 1974- 1981. g. Narrative Summary *How Centerstage's proposal addresses City Goals: (i) Maximize the use of the Theatre: Centerstage will use the theatre for 5 of its own productions each year: A maximum usage of ao weeks and a minimum usage of 15 weeks. (Not including rehearsal in the rehearsal studio). Centerstage is committed to retaining other current renters such as Ninth Avenue Dance and Aria Dance. Centerstage also will work with the City to retain summer youth programs. months for generation of other revenues. � S3z In order for Centerstage to continue presenting loss -makers such as Storybook Theatre, it is essential that Centerstage retains all rental income, in order to subsidize these day performances for youth. Centerstage will be in a position to more aggressively market the facility to other renters by offering significantly lower rental fees than the City was able to do. Centerstage has had success with its own presentations (Mark Twain and Will Rogers). With the additional flexibility of managing the space, Centerstage more such will offer presentations. Centerstage will offer marketing and box office services to renters of the Knutzen. (ii) Maintenance of the facility: Centerstage will subcontract maintenance and operation of all technical theatre to Seattle Scenic Studios. We propose that the custodial staff currently employed by Dumas Bay Centre continue to work on the lobby, auditorium, dressing room and rehearsal hall. Custodians would be employed by Centerstage for time worked on areas of Centerstage responsibility. If it is simpler for custodial personnel to stay on City payroll and Centerstage be billed for their services, Centerstage is open to that option. (iii) Ensuring accountability for fiscal and organizational management: Please see the enclosed Business Plan commissioned by Centerstage in response to the City's Request For Proposal. (iv) Serving as rental space for nonprofit arts organizations and other users. Please see (i) above. Since Centerstage plans to produce 5 shows per year, each using the theatre for a maximum of one month, this leaves 7 months for generation of other revenues. � S3z (2) Office and Marketing Manager, Laura Campbell will continue to take responsibility for marketing, publicity, office management and supervision of Box Office Activities; Front -of -house custodial staff will now report to Laura. (g) Treasurer, Judy Kent's role will be expanded to cover negotiation and execution of contracts with renters, and will include liaison with City and Dumas Bay staff. (4) Craig Wollam (Seattle Scenic Studios), Facilities Manager will be responsible for all routine maintenance and care of backstage facilities. 6 (v) Serve as a location for civic activities. Centerstage is a prominent member of the Federal Way Community. It is a member of the Chamber of Commerce and Board Members and former Board Members are members of local service clubs such as Rotary, Kiwanis and Lions. Through these contacts we intend to promote the use of the Knutzen by other groups and businesses. (vi) Promote cultural arts growth in the community. has Decatur HS, DeVry Centerstage established relationships with University, Truman HS on various projects over the past few years. In addition, Centerstage produces at least one show each year which involves actors of school age. As managers of the Knutzen Family Theatre, Centerstage will have the flexibility to develop its educational outreach with day release performances and other projects, yet to be determined. How will Centerstage divide its priorities between facility management, maintenance and presentation? Centerstage is currently a Theatrical Producer. The priorities referred to above are interlocking, no one more important than the other. Without a well- maintained and technically efficient facility, all presentation will be adversely effected. But the purpose of a well-maintained facility is to produce good art. In order to address the new responsibilities, Centerstage has re -defined the roles of its staff and subcontractor, Seattle Scenic Studios. It has also re -defined its future staffing structure. New assignments of Centerstage staff are in italics: (i) While Managing Artistic Director, Alan Bryce, will remain focused on Centerstage Productions and will address the promotion of Centerstage productions elsewhere, he will promote the Knutzen actively within the South Sound Arts and Business Communities. (2) Office and Marketing Manager, Laura Campbell will continue to take responsibility for marketing, publicity, office management and supervision of Box Office Activities; Front -of -house custodial staff will now report to Laura. (g) Treasurer, Judy Kent's role will be expanded to cover negotiation and execution of contracts with renters, and will include liaison with City and Dumas Bay staff. (4) Craig Wollam (Seattle Scenic Studios), Facilities Manager will be responsible for all routine maintenance and care of backstage facilities. V1 Centerstage's experience working with non-profit organizations. Centerstage is itself a nonprofit 501(c)(3) corporation. In recent months Centerstage has produced shows at Theatre On The Square in Tacoma and at ACT Theatre in Seattle. Both are nonprofit organizations. Alan Bryce has over 30 years experience in the nonprofit theatre sector as a Development Director, Artistic Director and Executive Director. Seattle Scenic Studios is also a nonprofit organization. 4. Staffing Plan Please See Appendix A 5. Box Office and Ticket Sales Plan (a) As soon as Centerstage assumes management of the Knutzen Family Theatre it will call a meeting with the City and with Ninth Avenue Dance/Aria Dance, as core users of the space, in order to establish a core schedule, around which all other uses will scheduled. (b) One of the key problems Centerstage has encountered over the years is brand confusion. The distinction between Knutzen Family Theatre and Centerstage is often unclear to consumers. Three year ago Centerstage undertook a branding process pro bono with a local marketing company. Upon assumption of the management of the Knutzen, Centerstage will undergo a new branding process to help us re -define the two entities and how to best market all KFT performing arts activities. (c) Centerstage is not unaware of the difficulties the City has had in finding and promoting performing arts organizations at the Knutzen. Centerstage q s 31 (a) Centerstage currently has operated Box Office for between 55 and 70 performances each year for the past four years at the Knutzen Family Theatre. Sales are made by mail, telephone and through the Centerstage website (using Click 4 Tix Inc.) Box Office telephone hours are loam -spm on weekdays, and Saturdays and Sundays on show days. Centerstage, for a fee of $1 per ticket, will handle Box Office sales (both online and telephone) for renters, should the renter elect to have Centerstage handle that responsibility. Renters will have the option of handling all sales themselves. Telephone orders are handled by current Centerstage staff and volunteers. This will continue. (b) Subscriptions. Centerstage currently runs on a September through May Season. Season or Flex Tickets are marketed in June of each year. Renters will be given the option of inclusion in the Season Brochure for a fee contingent upon the size of the rental. 6. Facility Utilization and Marketing Plan (a) As soon as Centerstage assumes management of the Knutzen Family Theatre it will call a meeting with the City and with Ninth Avenue Dance/Aria Dance, as core users of the space, in order to establish a core schedule, around which all other uses will scheduled. (b) One of the key problems Centerstage has encountered over the years is brand confusion. The distinction between Knutzen Family Theatre and Centerstage is often unclear to consumers. Three year ago Centerstage undertook a branding process pro bono with a local marketing company. Upon assumption of the management of the Knutzen, Centerstage will undergo a new branding process to help us re -define the two entities and how to best market all KFT performing arts activities. (c) Centerstage is not unaware of the difficulties the City has had in finding and promoting performing arts organizations at the Knutzen. Centerstage q s 31 *Preparation. As soon as Centerstage assumes its management role, Centerstage and City representatives will meet to: (a) Negotiate the details of the management contract, including but not limited to: usage of City Equipment, interlocking responsibilities of Centerstage and Dumas Bay Centre staff (such as greeting guests at Dumas Bay), use of Dumas Bay storage space etc. (b) Review the logistics and utilization of space as Centerstage personnel move to the Dumas Bay Centre. (c) Establish a mutually agreeable timeline for the physical move and for the assumption of full management responsibilities. (d) Establish a payment schedule of the management fee. *Action: (a) Upon the signature of the Management Contract, Centerstage wishes intends to build upon the partnerships, renters and community organizations already using the facility. _ In addition, Centerstage has already had preliminary discussions with Second Story Rep in Redmond, with the goal of exchanging one or more productions per year. After its run in Federal Way, a show would move to Redmond and vice versa. Thus each company would be saved the capital costs of a new production, and expand the season at both theatres. Centerstage has budgeted $26,000 to market the Knutzen in its first year of management, with a 5% annual increase over 4 years. 7. Transition Plan *Preparation. As soon as Centerstage assumes its management role, Centerstage and City representatives will meet to: (a) Negotiate the details of the management contract, including but not limited to: usage of City Equipment, interlocking responsibilities of Centerstage and Dumas Bay Centre staff (such as greeting guests at Dumas Bay), use of Dumas Bay storage space etc. (b) Review the logistics and utilization of space as Centerstage personnel move to the Dumas Bay Centre. (c) Establish a mutually agreeable timeline for the physical move and for the assumption of full management responsibilities. (d) Establish a payment schedule of the management fee. 8. References Please find attached letters of reference in Appendix Cfrom Mr. Keith Dahlgren, Managing Director, Seattle Public Theater 2o6 5231370 Ms. Alyssa Byer, Special Events Producer, ACT Theatre 2o6 292 766o Please also accept references from: Mr. Dick Mayer, Wal-Mart 253 9419974. Mr. Tim Robinson, Federal Way News, 2o6 388-185o Mr. Paul Ellingon, Bargreen Ellingson Inc. 253 475 9201 q S 3s *Action: (a) Upon the signature of the Management Contract, Centerstage wishes to move its offices to the Knutzen within one month. Also, upon signature of the contract, the City will provide Centerstage with all _ relevant paperwork/files and contracts with renters and all other relevant documents to the operation of the Knutzen Family Theatre. (b) Upon signature of the Management Contract, Seattle Scenic Studios will assume its responsibilities within one month. *Schedule: Pending the results of negotiation with the City, Centerstage's preferred date of concluding the above is June 1st, 2009. 8. References Please find attached letters of reference in Appendix Cfrom Mr. Keith Dahlgren, Managing Director, Seattle Public Theater 2o6 5231370 Ms. Alyssa Byer, Special Events Producer, ACT Theatre 2o6 292 766o Please also accept references from: Mr. Dick Mayer, Wal-Mart 253 9419974. Mr. Tim Robinson, Federal Way News, 2o6 388-185o Mr. Paul Ellingon, Bargreen Ellingson Inc. 253 475 9201 q S 3s Gi 9. Financials/Management Fee Proposal We propose a management fee starting at $70,000. Please see attached financials in Appendix B w r� I a i 0 IN I I IN PROPOSAL TO THE CITY OF FEDERAL WAY FEBRUARY 24, 2009 APPENDIX A M ORGANIZATION � STRUCTURE Iq -7-K-S -� 10, E j APPENDIX A Organization Ci CENTERSTAGE THEATRE ARTS CONSERVATORY, INC. STATEMENTS OF SUPPORT, REVENUE AND EXPENSES AND CHANGES IN NET ASSETS - CASH BASIS PROJECTION - YEAR ONE Centerstage Revenues Ticket Sales $ 101,000 Donations/Contributions 44,500 Grants 24,500 Program Advertising 4,000 Fund Raising 1,000 Management Fee 70,000 245,000 Knutzen Theatre Revenues Theatre Rentals 7,500 Service Charges 17,918 Program Fees 21,049 Event Admissions 20,947 Rehearsal Space Rental 2,946 AV Equipment Rental 541 Grants & Donations 4,000 Concessions/ Misc. 5,500 80,401 Centerstage Expenses Production 90,900 Marketing/Advertisement 26,000 Contract Labor 1,500 Salaries 70,000 Office Supplies 3,500 Fees/ Ins/Maint/ Taxes 15,000 Past Due Rent Payment 6,250 213,150 Knutzen Theatre Expenses Non -Program Costs 14,243 Supplies & Utilities 8,565 Other Services & Charges 38,396 Utilities, Repairs, & Maint 30,000 Seattle Scenic Studios 25,000 116,204 Other Income Interest 11000 Decrease in Net Assets (2,953) Net cash balance, beginning of year 34,863 Net cash balance, end of year $ 32,910 CENTERSTAGE THEATRE ARTS CONSERVATORY, INC. STATEMENTS OF SUPPORT, REVENUE AND EXPENSES AND CHANGES IN NET ASSETS - CASH BASIS PROJECTION - YEAR TWO Centgstage Revenues Ticket Sales $ 107,060 Donations/Contributions 44,500 Grants 24,500 Program Advertising 4,200 Fund Raising 1,050 Management Fee 75,250 Knutzen Theatre Revenues Theatre Rentals 7,875 Service Charges 18,814 Program Fees 22,101 Event Admissions 21,995 Rehearsal Space Rental 3,093 AV Equipment Rental 568 Grants & Donations 4,200 Concessions/ Misc. 5,775 84,421 Centerstage Expenses Production 96,354 Marketing/Advertisement 27,300 Contract Labor 1,500 Salaries 71,750 Office Supplies 3,675 Fees/ ins/Maint/ Taxes 15,600 Past Due Rent Payment 6,250 222,429 Knutzen Theatre Expenses Non -Program Costs 14,670 Supplies & Utilities 8,822 Other Services & Charges 39,548 Utilities, Repairs, & Maint 30,900 Seattle Scenic Studios 26,250 Interest 1,000 Decrease in Net Assets (638) Net cash balance, beginning of year 32,910 Net cash balance, end of year $ 33,272 J - L,o CENTERSTAGE AND KNUTZEN THEATRE COMPOSITE CASH FLOW **** BASED ON 20OR MUMS **** 7 2008 Year 1 Year 2 Yeor 3 Year4 Ticket Sales 83,289 91,516 110,837 101,000 107,060 113,484 120,293 6% Donations/Contributions 30,681 45,687 53,191 44,500 44,500 44,500 44,500 0% Grants 22,000 37,792 22,400 24,500 24,500 24,500 24,500 096 ` Program Advertising 2,343 2,145 2,500 4,000 4,200 4,410 4,631 S% Fund Raising 10,080 17,893 200 11000 11050 1,103 1,158 5% Management Fee 0 0 0 70,000 75,250 80,894 86,961 8% Interest 40 5 0 0 0 0 0 CTG Co ksM/ , r $,674 &243 31250 0 0 0 Centj 154107 199,.281 192,253 245 000, 2 --WS 26 $90 R82 042 S% Production 101,699 142,753 101,765 90,900 96,354 102►135 108,263 7% Marketing/Advertisement 0 0 28,797 26,000 27,300 28,665 30,098 5% Rent 6,410 6,494 6,667 0 0 0 0 Contract Labor 1,700 1,300 1,400 1,500 1,500 11500 1,500 Salaries 29,378 33,739 38,415 70,000 71,750 73,544 75,382 S% Depreciation 2,884 75 0 0 0 0 0' Utilities 2,511 2,715 2,639 0 0 0 0 Office Supplies 2,332 1,676 2,660 3,500 3,675 3,859 4,052 S% Fees/ins/Maint/Taxes 6,545 13,051 11,207 15,000 15,600 16,250 17,250 5% Past Due Rent Wm -wt 6 250 50 62s13Uso 62SO, 15 459 201,803 193.550 213t,150, 22 42923 2 42 79r 596 (2,322 Q,2-97) 314850 11 3.441S1, 36-,687,' 3 6 P BMW" 20 018 16,273 ` 19.0,63 51,713 85 844 122.S31 1617,7 -XM=sumha648 Theatre Rentals 48,803 33,997 22,980 7,500 7,875 8,269 8,682 5% Theatre- Secondary Tenant 5,150 25,750 15,450 0 0 0 0 Theatre- Nonresident Art Org 632 231 0 0 0 0 0 Service Charges 12,079 16,787 16,289 17,918 18,814 19,754 20,742 5% Program Fees 16,177 15,632 19,135 21,049 22,101 23,207 24,367 S% Event Admissions 20,401 9,286 19,043 20,947 21,995 23,094 24,249 5% Rehearsal Space Rental 5,563 6,259 2,678 2,946 3,093 3,248 3,410 5% Space & Facility Rental 0 6,716 0 0 0' 0 0 AV Equipment Rental 3,142 1,937 492 541 568 597 627 S% Grants & Donations 4,000 0 6,000 4,000 4,200 4,410 4,631 ' Interest Earnings 4,848 3,921 2,660 0 0 0 0 01 11+8s 1 323 1 003 2124 %5 VIS 6.064 6`367 596 KW=13 EMOM 12211$ 121 19 106 851 80 40i : .44421 596 Non -Program Casts 18,122 18,043 18,990 14,243 14,670 15,110 15,564 3% Personnel Costs 67,897 97,254 105,001 0 0 0 0 Personnel Benefits 15,691 25,641 39,152 0 0 0 0 Supplies and Utilities 38,568 23,898 11,434 8,565 8,822 91087 9,359 3% Other Services & Charges 39,474 44,970 51,194 38,396 39,548 40,734 41,956 3% Utilities, Repairs & Maint. 36,647 26,356 53,100 30,000 30,900 31,827 32,782 3% Seattle Sce1C Studio..0 0 0 25 000; 26 250 ,27 $63 28 941 5% Total Eat21 23 162278 871 116 ' 04 12 190 12` .32 12 4% trpius(Deficit)94,281 (114 643 7 72,{}2 3 J35.76. (35,678)4% Knutzen Cash -on -Hand (Estimated) 15.0w Knutzen Interfund Transfer 121 AL40 717SPOS. 180O00 fiQiAL REVENUES 5% 226,225 320,$Oo 299,104 325,401 340,941 357,533 376117 TOTAL. ��� 369,858 437,965 472,421 329,354 342,619 356`524 371,397 1%ji1�lttt Errlirl S 1,000 1,000 11 1,000 TotalS 4rp uS 6 IC11` (93,633) (117,165) (173,317) (2,953) (638) 2,009 4,719 oRR &Sh�-on-Hand N/A N/A 34,863 32,910 33,271 36,280 42,000 PROPOSAL TO THE CITY OF FEDERAL WAY FEBRUARY 24, 2009 APPENDIX B FINANCIALS APPENDIX B � 4 FINANCIALS Contents • Last three Years .of financial statements. • Detailed projected pro forma for two years of management and operations. • Composite cash flow spread sheet. • Composite cash flow chart. • Knutzen Family Theatre cash flow chart. • Centerstage Theatre cash flow chart. ASSUMPTIONS USED FOR THE DEVELOPMENT OF THE KNUTZEN FAMILY THEATRE FOUR YEAR FINANCIAL PROJECTIONS 1. All financial data contained here in is based on 2008 dollars. 2. Lacking detailed information on the expenses for the last three years, the projected expenses were calculated on ratios of costs to earned revenue. More information is needed to refine these numbers. 3. A carry over cash on hand of 10% of expenses less salaries for 2008 was added to Centerstage's cash on hand for beginning the first year projection. 4. An amount of $6,250 dollars per year is added to the expenses of the Centerstage Theatre management account to pay off the past due rent of $25,000. i5. The proposed management fee is $70,000 for the first year increasing 8% each following year. 1 ---E--y 3 ---y- 9 LI m 'oo b9 4 OO O O ER O O O` O O O m O 69 0 N EMR co m N N M ER dMq N cn Ln � O iF M — ER p9r ER E9 E9 ---y- 9 LI m 'oo b9 4 m M Ln Ln tM N 0 N MEfl N O CjO i N i m O 69 0 N EMR co m N N M ER dMq Lr m EMR cn Ln � O � p O0 M iCO p m Ln 0 N to r ER ER ER v O N Ln N ER COLO to m 40 j In M ER .Z P-4 r s� 7 -LI CENTERSTAGE THEATRE ARTS CONSERVATORY, INC. ACCOUNTANT'S COMPILATION REPORT AND FINANCIAL STATEMENTS - CASH BASIS DECEMBER 31, 2007 AND 2006 BRANTLEY JANSON YOST & ELLISON Certified Public Accountants A Professional Service Corporation 1617 South 325t" Street Federal Way, Washington 98003-6009 d, ACCOUNTANT'S COMPILATION REPORT November 7, 2008 To the Board of Directors Centerstage Theatre Arts Conservatory, Inc. Federal Way, Washington We have compiled the accompanying statements of assets, liabilities and net assets - cash basis of Centerstage Theatre Arts Conservatory, Inc. (a nonprofit organization) as of December 31, 2007 and 2006, and the related statements of support, revenue and expenses, and changes in net assets - cash basis for the years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures ordinarily included in financial statements prepared on the cash basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Organization's assets, liabilities, net assets, revenues, expenses and other changes in net assets. Accordingly, these financial statements are not designed for those who are not informed about such matters. 64K f -1- ---s -� CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS • 1617 South 325th Street • Federal Way, Washington 98003-6009 CENTERSTAGE THEATRE ARTS CONSERVATORY. INC. STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS - CASH BASIS DECEMBER 31, 2007 AND 2006 (See Accountant's Compilation Report) ASSETS CASH 2007 2006 Cash $ 14,473 $ 13,415 Savings .500 5,603 14,973 19,018 SECURITY DEPOSIT 1,300 1,000 EQUIPMENT, at cost 11,419 11,419 less accumulated depreciation (11,251) (11,176) 168 243 TOTAL ASSETS $ 16,441 $ 20,261 LIABILITIES AND NET ASSETS PAYROLL TAX WITHHOLDING $ 1,175 $ 761 UNRESTRICTED NET ASSETS 15,266 19,500 TOTAL LIABILITIES AND NET ASSETS $ 16,441 $ 20,261 -2- 7�— q � A 1 CENTERSTAGE THEATRE ARTS CONSERVATORY, INC. STATEMENTS OF SUPPORT, REVENUE AND EXPENSES, AND CHANGES IN NET ASSETS - CASH BASIS DECEMBER 31, 2007 AND 2006 (See Accountant's Compilation Report) 1:0.149:0►I►K Production 2007 2006 UNRESTRICTED NET ASSETS 33,739 29,378 SUPPORT AND REVENUE 6,684 710 V✓ Ticket sales $ 91,516 $ 83,289 Donations 45,687 30,681 Grants 37,792 22,000 Fund raising 17,893 10,080 Other 4,243 5,674. ,Program advertising 2,145 2,343 Insurance 199,276 154,067 1:0.149:0►I►K Production 142,753 101,699 Salaries 33,739 29,378 Fund raising 6,684 710 V✓ Rent 6,494 6,410 Utilities 2,715 2,511 Bank fees 2,651 2,493 t Taxes 2,620 1,734 ✓ Office 1,676 2,332 Contract labor 1,300 1,700 Insurance 1,051 1,160 Depreciation 75 2,884 Dues and membership 25 3661// Licenses and permits 20 82 ✓ Repairs and maintenance 201,803 153,459 OTHER INCOME (EXPENSE) Interest 5 40 Miscellaneous (1,712) (118) (1,707) (78) INCREASE/DECREASE IN NET ASSETS (4,234) 530 NET ASSETS, beginning of year 19,500 18,970 NET ASSETS, end of year $ 15,266 $ 19,500 -3- --E- 5�� AM /09 Basis Centerstage 03 Profit & Loss January through December 2008 Ordinary Income/Expense Income 2007 Ticket Sales General Ticket Sales Total 2007 Ticket Sales 2008 Ticket Sales General Tickets Group Sales Season ticket sales 2008 Ticket Sales - Other Total 2008 Ticket Sales 2009 Ticket Sales General Ticket Sales Total 2009 Ticket Sales Concessions Contributions Income Unrestricted Corporate Donations Individual Donations Organization Donations Total Unrestricted Contributions Income - Other Total Contributions Income Donations Fund Raising Grants Foundation Grants Government Grants Total Grants Program Advertising Total Income Expense Bank Fees IBAA Bankcard Fee miscellaneous charges Total Bank Fees Contract Labor (non production) Administrative Total Contract Labor (non production) Dues & Memberships Fund Raising Exp Insurance Liability Insurance Property Insurance Total Insurance Licenses & Permits Marketing Banners, Signs Mailing Service Media Ads Miscellaneous Photos Postage (Bulk Mail) Postcards, Flyers Total Marketing --E5l Jan - Dec 08 0.00 0.00 98,601.47 1,001.00 11,185.50 50.00 110,837.97 545.00 545.00 3,125.46 25,660.00 22,407.00 5,000.00 53,067.00 50.00 53,117.00 73.66 200.00 12,400.00 10,000.00 22,400.00 2,500.00 192,799.09 2,785.44 270.00 3,055.44 1,400.00 1,400.00 320.24 3,382.00 V 683.22 177.00 860.22 10.00 t'/ 1,843.62 1,671.25 7,094.63 2,500.00 754.00 5,255.50 9,678.11 28,797.11 P J AM Centerstage 03 /09 Profit & Loss Basis January through December 2008 Miscellaneous Internet Maintenance Meeting/Party/Meals Perusal Scripts Miscellaneous - Other Total Miscellaneous Office Office Equipment Office Supplies Postage & Courier Studio Maintenance & Repairs Subscriptions Total Office Payroll Gross Wages Total Payroll Production Costs (non labor) Audition expense Choreographer Concession Costumes Facility Rental Hospitality Miscellaneous Programs Props Rehearsal Royalties Scripts Sets Tickets Travel Total Production Costs (non labor) Production Labor (Artistic) Asst. Stage Mgr Costumer Director Lighting Design Musical Director Musician Performer Set Designer Stage Hand Stage Manager Total Production Labor (Artistic) Rent Taxes FICA Expense Labor & Industries Total Taxes Utilities Power & Electricity Telephone Total Utilities Total Expense Net Ordinary Income Jan - Dec 08 7.00 318.24 28.20 57.00 3.39 413.83 83.38 918.87 1,275.78 155.00 227.60 2,660.63 36,415.55 38,415.55 1,162.00 1,600.00 315.38 5,638.21 2,880.00 1,835.09 840.36 6,371.71 4,020.55 32.00 13,134.15 1,140.16 11,606.00 564.66 650.00 51,790.27 100.00 6,459.82 3,000.00 1,700.00 12,157.00 8,725.00 13,523.26 3,000.00 510.00 800.00 49,975.08 6,666.96 2,914.47 248.47 3,162.94 100.88 2,538.53 2,639.41 193,549.68 (750.59) p 'AM Centerstage 03 109 Profit & Loss Basis January through December 2008 Jan - Dec 08 Other Income/Expense Other Income Interest Income 0.35 Total Other Income 0.35 Net Other Income 0.35 Net Income (750.24) P Centerstage 03 Balance Sheet As of December 31, 2008 ASSETS Current Assets Checking/Savings Petty Cash Rainier Pacific Checking Rainier Savings Washington State Savings Total Checking/Savings Total Current Assets Fixed Assets Office Equipment Reserve for Depreciation Office Equipment - Other Total Office Equipment Office Furniture Reserved for Depreciation Total Office Furniture Studio Equipment Total Fixed Assets Other Assets Security Deposit Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable Other Current Liabilities Payroll Liability .FICA Labor & Industries Withholding Total Payroll Liability Rainier LOC Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity Opening Bal Equity Retained Earnings Net Income Total Equity TOTAL LIABILITIES & EQUITY Dec 31, 08 100.00 6,917.38 12,851.00 (5.16) 19,863.22 19,863.22 (11,176.00) 5,145.40 (6,030.60) (3,555.00) (3,555.00) 10,150.92 565.32 1,300.00 1,300.00 21,728.54 2,800.00 2,800.00 819.66 39.60 330.92 1,190.18 5,630.00 6,820.18 9,620.18 9,620.18 (0.01) 12,858.61 (750.24) 12,108.36 21,728.54 7-5`-) P i i PROPOSAL TO THE CITY OF FEDERAL WAY FEBRUARY 24, 2009 APPENDIX C LETTERS OF REFERENCE To Whom It May Concern: I am writing on behalf of Alan Bryce and Centerstage Theater. I would like to offer two suggestions: To strongly consider contracting a non-profit theater organization to manage your Performing Arts Center, and to strongly consider Centerstage as that organization. I am currently the Managing Director of Seattle Public Theater (SPT), the resident company of the Bathhouse Theater on Green Lake, an historic 165 -seat performance venue in Seattle. SPT has had a lease with the City of Seattle Parks and Recreation since 2000, and at this point has a five-year lease which ends in 2011. We have no concerns that our lease will be renewed for another five years at that time. Our partnership with the City of Seattle has been very fruitful on both sides: the City provides SPT with a space, assistance with building management through their facilities departments, and low rent. In return SPT provides the public with non-stop live theater and youth education programming, as well as discounted tickets and assistance with other community groups who use the surrounding area in the Green Lake Park for special events. Prior to my taking the position at SPT, I was the General Manager of the'Village Theater at the Everett Performing Arts Center, a 500 -seat venue. I filled a similar role there for five years, as Village Theater has a contract to manage the EPAC for the City of Everett. I had very good relations with the City of Everett and the facilities staff there which continue to this day. Village Theater provides the City of Everett with theater programming, youth programming (both classes and performances), rental income from other performing arts groups, and a strong artistic presence in the community. I was a member of the Everett Rotary and built many strong connections with the local merchants, the community and the City staff. I write this to encourage those interested to consider using an established non- profit performing organization as management. The company will have experience producing theater, creating education programs, operating within a set budget, working with other arts organizations and the myriad of unknowns that an ordinary facilities management company or a City staff does not have knowledge of. In addition, the theater company will have experience with that unique type of building, the performance space, with its individual challenges and S �P 7312 W Green Lake Dr N Seattle, WA 98103 (206) 524-1300/admin (206) 523-1370 www.seattlepublictheater.org. technical difficulties, again which a non -arts company or City facilities staff will not realize. In my experience, a strong, well-established non-profit arts company has a distinct advantage in managing an arts venue. I have worked with Alan Bryce and Centerstage on many levels: as a performer, as a fellow theater manager, and as a service provider, as I am the Board President of Seattle Scenic Studios, the company that constructs all of Centerstage's sets. Alan has many years under his belt as a theater professional, in every sense of the word. He is an outstanding producer as well as an artist, and his current job as head of Centerstage is proof of his strength as a producer and a businessman. Centerstage, the theater company itself, has a long history in the Federal Way community, and would be an excellent choice as Management Company for a large performance venue. It is a healthy company, both financially and artistically, and you would be wise to use this local resource. I would be happy to speak to anyone further about my experience as a theater manager working with a City landlord. Please do not hesitate to contact me further in this regard. K KJ"'. bkt�� Keith Dahlgren Managing Director Seattle Public Theater 7312 W Green Lake Dr N Seattle WA 98103 www.seaftlepublictheater.org keithCaD-seattlepublictheater.org (206) 523-1370 __�- 51 � ® A Contemporary Theatre February 19, 2009 City of Federal Way PO BOX 9718 Federal Way, WA 98063-9718 To Whom It May Concern: I am writing to express my support and to be a reference for the Centerstage Theater Company's aplication to directly manage the Knutzen Family Theatre. The Centerstage Theater is currently renting one of our theater spaces, the Bullitt Cabaret, for a remounted production of Always Patsy Cline. Kurt Beattie Artistic Director Kevin M. Hughes Managing Director Our experience has been entirely positive. Centerstage is an organized, well run company that produces a very high quality of work. I have worked closely with Alan Bryce, Centerstage's Artistic Director, though out this process, and he exceeded in maximizing the artistic integrity of the performance while remaining within a very restrained budget. Our building was placed on the National Register of Historic Places in 1983, and was made a Seattle Historic Landmark in 1984. Centerstage Theater has been very respectful of our full facility. Please feel free to contact me if you have any questions about ACT's relationship or our current rental agreement. kp�,- 13r Alys9a Byer Special Events Producer ACT — A Contemporary Theater r PROPOSAL TO THE CITY OF FEDERAL WAY FEBRUARY 24, 2009 APPENDIX D SIGNATURE AUTHORITY; CERTIFICATE OF INSURANCE; TAX ID NUMBER RST4 (aii P o. box 310 j • federal w0y, wil 49063 ` www-c"'er Stag eiheatte.tom February 23, 2009 City of Federal Way 33325 8th Avenue South P.O. Box 9718 Federal Way, WA 98063-9718 Dear Sir/Madam, Signature Authoritv The Board President (currently myself) and Managing Artistic Director (currently Alan Bryce) have the power to sign on behalf of Centerstage Inc. Yours Sincerely, Chad Stalder President, Board of Trustees T or POLICY NUMBER: CLP 012565 COMMERCIAL GENERAL CG 20 26 07 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization CITY OF FEDERAL WAY FEDERAL WAY ARTS COMMISSION PO BOX 9718 FEDERAL WAY, WA 98063-9718 Section II - Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: A. In the performance of your ongoing operations, or B. In connection with your premises owned by or rented to you. CG 20 26 07 04 Copyright, ISO Properties, Inc., 2004 Page I of 1 0 F.m W-9 (Rev. October 2007) o.pwenera a »• Trewury. wanes asvarxw service . N me (as ;tion Request for Taxpayer .Identification Number and . Certiflcation X Zuslnew.name; fi"dttfeterkfrom above .9X C O . Check.appmpriate-box ❑ `tndividuabSoldpropdetor s ❑ Umited liability compahy.'Enter'the tax classIficetl (t9=d 6. 0. Other (see instructions) f Address (num er,.street,.and apt:, aufla no. I 1 a� � City, stats' ZIP code' 1 Ust account number(s) here (optional) co Give form to the requester. Do not serW to the, IRS: an ❑- :Partnership .Exampt. . en ft; 0=corporation; P=partnership} •►° ....... E] payee and address (optional) Enter your TIN. in the appropriate box. The TIN provided must match the name given on. Line .1 to. avoid. Social security number backup withholding. For individuals, this is your social security number (SSN). However, for a resident I alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, It is your employer identification number (EIN). If you do not have a number, see Now to get a TIN on page 3. or Note. If the account Is in more than one name, see the chart on page 4 for guidelines on whose E)ppl r kt'npttctI07u bety.� number to enter. ((JJ4411 ma / y Under penalties of perjury, I certify that: 1. The number shown on this form Is my correct taxpayer Identification number.(or I am waiting for a number to be issued to me), and 2. lam not subject to backup withholding. because: (a). I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all Interest or dividends, or {c) the IRS has notified me that -I am no longer subject to backup -withholding, and 3. 1 am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (iRA), and generally, payments other than Interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the Instructions on page 4. Sign signature of Here I U.S. person 10, General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer Identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TiN to the person requesting it (the requester) and, when applicable, to: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Clalm exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership Income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. 9 a requester gives you a form other than Form W-9 to request your TIN, you must use the requester's form if it is substantially similar to this'Form W-9. Date ► Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is.a U.S. citizen or. U.S. resident alien, • A partnership: corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined In Regulations section 301.7701-7). Special rules for partnerships. Partnerships that conduct a trade or business In the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W-9 has not been received, a partnership Is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. The person who gives Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States Is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Form - (Rev. 10.2007) ':� Z CERTIFICATE OF LIABILITY INSURANCE IDATE (MM/DD/YYYY) PRODUCER 1 L/20/2009 GRIFFIN UNDERWRITING SERVICES THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION PO BOX 3867 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR BELLEVUE, WA 98009 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANTFC ARM-10nMr_ r-^-..... PHONE Nn INSURED CENTERSTAGE THEATRE ART CONSERVATORY INC PO BOX 3141 FEDERAL WAY, WA 98063 COMPANY A COMPANY B COMPANY C COMPANY D COMPANY E RED SHIELD INSURANCE COMPANY COVERAGE THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION JPERIODINDICATED, OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICCERTIFICATE MAY BE ISSUEDOR MAY PERTAIN, THEINSURANCE AFFORDED BYTHE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALLTHE TERMS, EXCL AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN' MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY EFFECTIVE POLICY EXPIRATION .TR POLICY NUMBER DATE (MM/DD/YY) GENERAL DATE (MM/DD/YY) LIMITS A X COMMERCIAL GENERAL GENERAL AGGREGATE 2 000 000 CLAIMS MADE ©OCCUR PRODUCTS - COMP/OP AGG ncl in Gen A ge WNER'S & CONTRACTOR'S PROT CLP 012565 6/03/2008 6/03/2009 PERSONAL & ADV INJURY 110M.00 EACH OCCURRENCE 1 FIRE DAMAGE (Any one fire) 100 000 AUTOMOBILE LIABILITY MED EXP (Any one Person) 5000 ."AUTO COMBINED SINGLE LIMIT ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY - HIRED AUTOS BODILY INJURY NON -OWNED -AUTOS OTHER PROPERTY DAMAGE HEATRE GROUP/ACTING SCHOOL Ie Certificate Holder is included as an additional insured pursuant to ISO form CG 2026(07/04) an exemplar copy of which is attached reto for informational purposes. SHOULD ANY OFTHE ABOVE DESCRIBED POLICIES BECA14CELLED BEFORE THE EX IIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL CITY OF FEDERAL WAY 9_ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE FEDERAL WAY ARTS COMMISSION Lam• EXCEPT FOR NON-PAYMENT OF PREMIUM WHEN MORE THAN 10 DAYS IS INDICATED, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO PO BOX 9718 OBLIGATION OR LIABILITY OF ANY KIND UPON THE CO PANY. ITS S OR FEDERAL WAY, WA 98063-9718 �—� > REPRESENTATIVES. AUTHORIZED REPRESENTATIVE r — UL I&A/UIP Proposal for Knutzen Family Theatre Management February 24,'2009 Tacoma Musical playhouse Background: The City of Federal Way is seeking to contract a Management entity to be responsible for the management and day-to-day operations of the Knutzen Family Theatre (KFT). This would include facility maintenance and preservation, scheduling and programming, and marketing and financial management - all with full coordination and cooperation with the Dumas Bay Centre (DBC) and the City of Federal Way recreation programs. S1 1VAeA N\ 0"S 1. Qualification Statement a. Tacoma Musical Playhouse (TMP) is a non-profit 501(c)(3) corporation. Federal ID #94-3198670, State of WA UBI #601-514-802 founded in 1994 by Jon Douglas Rake. See Appendix A - G. b. The agent to represent TMP is: Jon Douglas Rake, Managing Artistic Director, 71166 th Avenue, Tacoma, WA 98406 Tele.: (253) 565-6867; Fax: (253) 564-7864 Email: jon@tmp.org, Website: www.tmp.org. c. TMP is the largest community theater in the entire four -state Northwest region. We present a diverse program of theater productions to single ticket patrons and subscription patrons averaging 5,500— 6,500 per mainstage show. Current programming includes: six fully -staged mainstage musicals, three fully -staged musicals for families, numerous specialty shows (Musical Revues, Stardust Follies, Jazz at TMP, Murder Mystery Dinners). Our education department provides a wide array of programs including: camps, after-school academy, senior theater, and other classes. TMP owns and operates the Narrows Theatre Complex in Tacoma with a seating capacity of 380. Our annual budget is $1,200,000. d. TMP is in good standing with all agencies that require licensing or other authorization to conduct its business. 2. Key Staff: Past Experience TMP/Knutzen Family Theatre Staff List Current Employees: Jon Douglas Rake, Founder and Managing Artistic Director (Full-time) Jeffrey Stvrtecky, Music Director, Business Manager (Full-time) Maria Valenzuela, Marketing & Office Manager (Full-time) Chris Serface, Director of Education (Full-time) Diana George, Director of Development (Full-time) Will Abrahamse, Technical Director (Full-time) Part-time employees: Knutzen Family Theatre Administrative Coordinator (new position) Knutzen Family Theatre Technical Coordinator (existing position) Staff Contracted Positions: (as -needed basis) House Manager Box Office — Day of Production Janitorial TMP is currently staffed by six full-time personnel. Although each individual position is designed by the individual responsibilities of development, marketing, education, technical, artistic/programming and financial management, all positions are tailored to include the opportunity to cross -relate with' multiple disciplines in order to more fully provide for the best_ possible application of individual staff talents and abilities. Effective relationships have been established between all disciplines in order to allow for optimal support, as well as for seamless transfer of duties when a need arises. For example, programming and finance considerations are ideally supported by working relationships between development and marketing; while programming, technical and financial issues are all employed in order to support TMP's strong educational programs. The Knutzen Family Theater will directly benefit from TMP's history of solid organizational management techniques with multiple staff members fully capable of providing financial, programming and technical management expertise from the first day of operations. Current TMP staff will provide the immediate ability to schedule theater rental use (non-profit arts and business commercial), present TMP produced programming and a offer a full complement of quality youth and senior educational programs, including: summer youth camp, after-school and/or Saturday classes, winter break and spring break camps and daytime senior classes. Existing TMP staff will also provide marketing materials of KFT events to include: brochures, flyers, posters, show programs, a quarterly newsletter and maintain the www.kftevents.com website. As is the case at TMP, additional part-time or contract employees would be fully trained by TMP personnel, in full coordination with DBC personnel, in order to provide additional on-site theater and technical coordination, maintenance and educational opportunities. See Appendix H — I. — b / 3. Narrative Summary Management Summary: TMP will act as a facility manager for current users of KFT and expand the marketing of the facility to additional non -profits, private parties and commercial businesses. It is TMP's goal to maximize the usage of KFT. It is also our intent to expand programming by presenting a diverse range of new programs. Some of these programs will include musicals from TMP's mainstage and Tacoma Children's Musical Theater (TCMT) productions, concerts from classical to jazz to new age, a family film series, educational programs and presentations, touring productions from other theater companies, Washington Artists programs and other special events appropriate for the technical capabilities of the space. It is our goal to see KFT present a wide variety of options for Federal Way/South King County and surrounding community residents. The basic structure of the management team for the KFT is already in place within the TMP organization. Additional staffing will be added as needed. This will include a KFT Facility Administrator and a KFT Technical Coordinator. Both of these positions will begin as part-time positions and gradually be increased if needed. The current TMP staff will expand their duties to include presenting and administrating programming. TMP would like to expand the partnership with the beautiful Dumas Bay Centre, offering patrons dinner theater options, pre -show receptions and expanding possible options for the Centre's clients. It is TMP's intent to market KFT and the complete assortment of facilities available at the Centre. Educational Summary: TMP has a long-standing history of providing quality arts education for youth in the Puget Sound area. KFT is located in an area that is hungry for arts education opportunities and is a facility that lends itself to all of the base requirements necessary for an education program to thrive and succeed. We intend to offer a full year-round education program comprising a curriculum that would mirror what TMP already offers. TMP strongly believes that if a student desires to be involved in theater, they will be given an opportunity to participate in the program. Current TMP Educational programs include: After School Academy—This program meets twice a week over four weeks for two hours. Students learn a small scale musical theater production. Basic theater skills are taught such as acting, dancing, voice, and how to work together as an ensemble. Each program culminates in a public performance of the show that they have rehearsed. ACT at KFT—This program is designed to help students reach new heights in their studies of theater. These intensive classes are taught by local artists and professionals who will challenge and inspire students while building a solid base of skills in the theater arts. Each session lasts ten Saturdays and there are a wide variety of courses offered (i.e. acting, improvisation, voice, auditioning, dance). Winter, Spring, Summer Camps—These intensive camps take place during scheduled "break" times from the school calendar and involve students in the production of a fully -staged musical. These full-day camps immerse students in the art of theater expanding their understanding of the process of putting together a musical. During the summer, the camp moves to a four-week session 7—L and expands its focus to include specialty workshops taught by local professionals in different aspects of the theatrical arts. Each camp culminates in multiple public performances of the production that the students have rehearsed. Development Summary: Approximately 30% of TMP's annual budget is unearned revenue comprised of Government, Foundation, Corporation, and Individual contributed support. The most important component of our development strategy is the establishment of trust and familiarity with our patrons and donor organizations. TMP has hundreds of patrons who donate consistently to our theater. With our FundRaiser software, we are able to track and maintain these relationships; TMP has a donor retention rate of 62% of those patrons who have given consistently during the past three seasons. We establish trust with our patrons by involving them in many of the events TMP hosts from Wine -tasting cruises to patron surveys at the end of each season. We create a familiarity with our patrons by establishing a presence at every event and production TMP offers. TMP intends to duplicate all of our existing development plans with the management of KFT. We would also maximize the potential for new sources of developmental support that would come from our presence in King County through grants for performing arts programs and youth/senior educational programs. Current unearned revenue includes: grants from Dimmer Foundation, Norcliffe Foundation, Boeing Corporate Sponsorship, Pierce County Arts Commission, Forest Foundation, The Seattle Foundation, Ben Cheney Foundation, ArtsFund and Tacoma Arts Commission's AnchorFund. TMP hosts a variety of fundraising events that allow the awarding of scholarships and tickets to underserved populations in our community. TMP awards an average of $3,000 worth of tickets annually to assist other non-profit groups to raise funds through their own fundraising events. We also give scholarships to students in our educational programs. Our fundraising events include: Ladies Luncheon, Wine -Tasting Cruise, Gala events, Silent Auctions, Raffles, and our new event this year -"Dancing with the Tacoma Stars." TMP believes the atmosphere and grounds of the DBC and KFT is perfect for many fundraising events. The picturesque grounds are a breathtaking backdrop for an English Tea and Fashion Show on the Lawn during the summer or a Wine -Tasting event accompanied by a quartet. These events are complimentary to the many activities the DBC provides and collaborating with both the activities and kitchen staff of DBC will simplify many of the challenges inherent with these types of events. In short, TMP currently has in place the ability to provide the necessary elements of proven successful theater management, marketing, education, and development programs. 4. Staffine Plan Current TMP staff will provide the immediate ability to schedule theater rental use, present TMP produced programming and offer a full complement of quality youth and senior educational programs, including: summer youth camp, after-school and/or Saturday classes, winter break and spring break camps and daytime senior classes. Existing TMP staff will also provide marketing materials of KFT events. Additional part-time or contract employees would be fully trained by TMP personnel, in full coordination with DBC personnel, in order to provide additional on-site theater and technical coordination, maintenance and educational opportunities. Other staffing plan information has already been presented in other sections of this proposal. S. Box Office and Ticket Sales Plan TMP currently uses "WinTix" ticketing software for all Box Office sales and "MYOB Accounting" software for financial reporting. TMP will require the "Theater Coordinator office space" currently designated in the DBC to administer onsite Box Office, Marketing and Educational programs. Current TMP ticketing software would be used for education programs and TMP presented productions. User groups, including the City of Federal Way, may elect to either maintain their own ticket sales for pre -sale events (ie, Brown Paper Tickets, user's website) or coordinate with TMP to provide pre -event ticket sales through TMP staffing and software. TMP will contract this service as desired by the users, negotiated on a case-by-case basis. TMP will provide a schedule of Box Office hours for onsite customer services during the week, as well as maintain phone and website services. TMP will implement season subscription packages for KFT patrons. Ideally, package options could be described as "Family" events, "Special" events (ie, music and film series), "Full Season" (all- inclusive packages) etc, in order to provide the best variety of options to the customers. An "Enhanced Season" package could also be designed to include an educational element with each of the selected performance dates. User groups and the City could elect at the time of contracting to have their events and/or productions not included in a pre -sale season package. 6. Facility Ultilization and Marketine Plan TMP will maintain a schedule to include all current user groups: Centerstage, 9th Avenue Dance/Aria Dance, Thistle Theatre, Storybook Theater, Pushcart Players, Missoula Children's Theatre; incorporate TMP produced musical theater productions and the TCMT; enhance with additional year-round educational opportunities for seniors and youth; and create additional entertainment series' that may highlight local artists in jazz, recital, concert and/or film. Existing TMP staff will provide marketing materials of KFT events to include: brochures, flyers, posters, show programs, and a quarterly newsletter and will maintain the www.kftevents.com website. Currently, TMP maintains a mailing database of nearly 10,000 South Puget Sound households and would negotiate access of the City of Federal Way Parks & Recreational division mailing list to directly reach the immediate community with educational and event information. TMP currently uses "MyMaillist" bulk mail software for all direct mailings. TMP will provide a rental rate schedule competitive with other area facilities of comparable size, accessibility and technical capability. The schedule will include detailed rates for differing user groups and requirements. TMP will provide contracted janitorial services for the designated theater areas. See Appendix J. 7-12-- 7. Transition Plan TMP proposes to assume management operations of the KFT on June 1, 2009 with a transition period coordinated with the existing City, DBC and KFT personnel through June 14. All 2009 programming and rentals firmly scheduled (contract in hand) in the KFT as of May 31, 2009 will be honored. Beginning June 1, the KFT calendar will be maintained by TMP. TMP will expect to provide a 2009 Youth Summer Musical Theater Camp for the area youth at KFT. The City of Federal Way Parks and Recreation would not be obliged to provide a 2009 summer youth theater program at KFT. Ideally, the TMP camp would be advertised in the City of Federal Way 2009 Summer Parks Recreation & Cultural Services Guide. This may likely require coordination with the City publication prior to May 31, 2009. TMP will require a full inventory list of city -owned KFT equipment and its condition. TMP will require the City to provide a physical inspection of the Fly and Fire Systems with documentation to indicate current and up-to-date inspections and approval. TMP will require an explanation of the current security plan of the building and a guaranty of a Building and Liability Insurance Policy from the City of Federal Way. TMP will also be responsible for carrying its own Liability Insurance Policy. All KFT renters will be required to carry a Liability Policy naming the City of Federal Way and TMP on the rider. 8. References Business References: Viking Bank Doug Westmark, Manager Tacoma Branch 5821 Sprague Court, Suite 101 Tacoma, WA 98409 (253) 475-0100 Washington State Housing Finance Commission Sharonn Meeks, Administrator 1000 Second Avenue, Suite 2700 Seattle, WA 98104 (206) 464-7139 City of Tacoma Economic Development Department Genal Gavaldon, Administrator 747 Market Street, Rm. 1036 Tacoma, WA 98402 (253)5 91-5213 ArtsFund James F. Tune, President & CEO 10 Harrison Street Suite 200, Seattle WA 98109 (206) 281-9050 Individual References: Joann Piquette, Member (TMP Patron) Federal Way Performing Arts Coalition 302S295 th St Federal Way, WA 98003 (253)839-4389 Diane L. Mataraza, Inc. (Building Cultural Capacity Consultant) Consulting Services in Arts Management, Planning, Evaluation and Special Projects 2901 Camberly Circle Viera, Florida 32940 (321) 690-4370 Desk, (321) 427-0049 Cell, (321) 637-1384 Fax 9. Financials/Management Fee Proposal The CPA firm of Dwyer Pemberton and Coulson, PC currently reviews TMP's financial statements. TMP Business Manager provides monthly interim financial statements to the Board of Directors for review. TMP proposes the City of Federal Way to pay a management fee of $90,000 for 2009-10 and $75,000 for 2010-11. TMP will require % of the annual fee to be paid with acceptance of contract and the balance to be paid monthly. See Appendix K - L. -:E, I S Tacoma Musical Playhouse Proposed budget for management of Knutzen Family Theatre June 1, 2009 - May 31, 2011 2009-10 2010-11 Revenue Earned Ticket & Program KFT Management Fee 90,000 75,000 Facility rentals and fees 60,000 64,800 Box office ticket sales 54,000 62,100 Tuition 89,000 96,120 Other Earned concessions, advertising 3,000 3,240 Unearned Revenue grants, donations, 20,000 21,600 sponsorships, events Total Revenue $ 316,000 322,860 Expense Artistic Personnel 30,000 30,900 actors, musicians, designers Technical Personnel 30,000 30,900 KFT Technical Coordinator salaries, taxes, tech assts. Technical Expenses 5,000 5,150 materials, rentals, equip. Facility Expenses 39,000 40,170 insurance, utilities, janitorial repairs & maintenance Production Expenses 20,000 20,600 royalties, rentals, sets, costumes, travel Education Expenses 68,500 70,555 instructors, supplies, rentals royalties Development Expenses 10,000 10,300 fundraising events, postage printing Marketing Expenses 20,500 21,115 printing, postage, advertising, design Administrative 52,000 53,560 KFT Facility Administrator supplies, salaries, taxes, insurance, banking, fees Total Expenses $ 275,000 283,250 Net Surplusl(Defecit) $ 41,000 39,610 C 10. Appendix A. History of Musicals Presented B. TMP Board of Directors C. IRS Determination Letter D. Season Brochure E. Sample Playhouse Post F. Annual Fund Solicitation G. TMP History H. TMP Staff bios I. TMP Organizational Chart J. Sample Calendar of Events K. 2004 — 2007 TMP Financial Statements L. TMP Growth Graphs Tacoma Musical playhouse Mainstage Show History 1993-1994 2000-2001 Lullaby of Broadway High Society Nunsense A Funny Thing Happened Cinderella On the Way to the Forum 1994 — Radio Gals The Fantastiks Crazy for You The Music Man Stepping Out without Really Trying Rodgers and Hammerstein's 42nd Street A Grand Night for Singing 2001-2002 Working The Pajama Game Big, the musical Annie Singin' in the Rain 1995-1996 Stepping Out I Do! I Do! The Scarlet Pimpernel Cole Joseph and the Amazing A Day in Hollywood, Technicolor Dreamcoat A Night in the Ukraine Carnival 2002 -2003 Oklahoma 19% — 1997 Boys from Syracuse Something's Afoot Beguiled Again Babes in Arms Ibe �y fiend The Sound of Music Romance, Romance Grease 2W3 - 2 1997 — 1998 Fiddler on the Roof Into the Woods ILove You, You're Perfect, Now Change Suds Cabaret Kiss Me, Kate Anything Goes ,men Brides for Seven Brothers West Side Story 1998-1999 2004-2005 Gypsy Little Shop of Horrors Nunsense A Christmas Carol, the musical Cinderella She Loves Me A Chorus Line Meshuggah Nunsl How to Succeed in Business without Really Trying 1999 - 20M 42nd Street State Fair Nunsense II Big, the musical Annie 2005 - 2000 My Fair Lady A Christmas Carol, the musical Heaven Help Us On the Twentieth Century Ragtime The King and I 2006 " 2007 Thoroughly Modern Millie A Christmas Carol, the musical They're Playing Our Song Big River The Full Monty Disney's Beauty and the Beast 2007 - 2008 Damn Yankees Meet Me in St. Louis Urinetown, the musical My One and Only Miss Saigon Grease 2008-2009 South Pacific The Slipper and the Rose Glorious! Footloose, the Musical The Producers The Wizard of Oz Taccma . Musical riayhcuse Board of Directors 2008-2009 Executive Committee President: Lark Moore, Director of Finance, Steilacoom School District, 9709 Zircon Dr SW, Lakewood, WA 98498 Vice President: Jan Gee, Owner, G&G Public Affairs, 12215 Interlaken Dr. SW, Lakewood, WA 98498 Secretary: Nick Masington, International Attorney, 2301 Nanimo Ct NE, Tacoma, WA 98422 Treasurer: Marvin Rogers, Owner, Pioneer Assisted Living Facility, 5621 A St, Tacoma, WA 98408 Members at Large John Chenault, Community Volunteer/ Retired Amazon Engineer, 2506 Shoreland Dr S, Seattle, WA 98144 Phyllis Erickson, Community Volunteer/Retired Legislator, 8201 6d' Ave #170, Tacoma, WA 98406 Frank Hankins, Retired Boeing Pilot, 5410 Old Stump Dr NW, Gig Harbor, WA 98332 Beverly McConaghy, Investment Securities, 5000 Bridgeport Way W, Univ. Place, WA 98467 Rick Stockstad, Educator, 3421 N 22nd St, Tacoma, WA 98406 Doug Westmark, Marketing Manager Viking Bank, 2418 E. Pioneer, Puyallup, WA 98372 Staff Jon Douglas Rake, Founder, Managing Artistic Director, jon@tmp.org Jeffrey Stvrtecky, Business Manager, Music Director, jeffAtmp.org Diana George, Director of Development, dianana,tmp.org Maria Valenzuela, Office Manager, mariaAt`mp.org Chris Serface, Education Director, chris(a,tmp.org William Abrahamse, Technical Director, will(d,tmp.org INTERNAL REVENUE SERVICE P. O. BOX 2508 CINCINNATI, OH 45201 Date: TQCT n .� Z00.1 tACOMA MUSICAL PLAYHOUSE 7116 6TH AVE TACOMA, WA 98406-1213 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 94-3198670 DLN: 601285005 Contact Person: JAMES H BLAIR ID# 31324 Contact Telephone Number: (877) 829-5500 Our Letter Dated: April 1994 Addendum Applies: No This modifies our letter of the above.date.in which we stated that you would be treated as an -organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3) is still -in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a)(2). Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a)(2) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a)(2) organization. You are required to make your annual information return, Form 990 or Form 990 -EZ, available for public inspection for three years after the later of the due date of the return or the date the return is filed. You are also required to make available for public inspection your exemption application, any supporting documents, and your exemption letter. Copies of these documents are also required to be provided to any individual upon written or in person request without charge other than reasonable fees for copying and postage. You may fulfill this requirement by placing these documents on the Internet. Penalties.may be imposed for failure to comply with these requirements. Additional information is available in Publication 557, Tax -Exempt Status for Your Organization, or you may call our toll free number shown above. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Letter.1050 (DO/CG) J-�1 Tacoma Musical Playhouse Histo Tacoma Musical Playhouse was founded by Jon Douglas Rake in January 1994 to fulfill a need in Tacoma for a theater company that specializes in the uniquely American art form of musical theater. Mr. Rake's artistic leadership of the company, supported by a need in the community and an availability of excellent local talent, are the driving forces of its success. The primary artistic team of Jon Douglas Rake, Artistic Director and Jeffrey Stvrtecky, Music Director, provide stability to the productions at TMP. This stability has assured a level of quality that is maintained from production to production and anticipated by an ever-growing, musical -theater -loving audience. TMP's mission is "Enriching lives through the art form of musical theater." We- believe that people's lives are enriched by high-quality entertainment. Sometimes that entertainment challenges people to think about life issues; other times it offers opportunities for hilarity; and still other times it offers moments for tears. In all cases, however, the experiences move people's emotions and take them to a new place in their thinking. TMP has enriched people with productions like Into the Woods, The Music Man, The Sound of Music, Oklahoma, Disney's Beauty and the Beast, Thoroughly Modern Millie and West Side Story. We are committed to providing our patrons with a wide variety of musical theater selections that will touch them emotionally. TMP is the fastest growing arts organization in the Puget Sound region. From its modest beginning at Annie Wright Kemper Center, to a church basement, then to the Narrows Theatre which seats 380, TMP has rapidly grown into Tacoma's premier musical theater company. TMP added facility space by renting the retail space next to the theater. The 4,800 square -foot room is used for rehearsal space, costume building, set building, and storage. We added another small retail space which serves as our administrative office and box office. Several years ago, the company added the retail space at 7108 Sixth Ave to serve as a costume storage and building area and 610 S Oxford as its educational room. In all, TMP occupies 630 of the Narrows Center and leases the remaining space to tenants. TMP offers season subscriptions and season flex passes to its mainstage productions. The season includes six mainstage shows which run for four or five weekends each. Single tickets, including student, senior, military, child and group discounts, are available for all productions as well. Group sales have become a significant portion of the company's annual ticket revenue. Annually, TMP offers free tickets for each production's preview performance to numerous Pierce County social service organizations to distribute to under -served individuals. TMP has expanded its artistic offerings beyond its six mainstage shows. TMP presented two original murder mystery dinners and two musical revues per season until this year. The organization regularly books its performers for specialty shows throughout the community. TMP has also been a presenting organization. We have hosted the Seattle hit comedy show Late Nite Catechism, Marni Nixon, The Voice of Hollywood, and A Tribute to Red Skelton in the Narrows Theatre. These shows attract many new potential patrons to our theater. In the 2006-07 season, we launched the Tacoma Children's Musical Theater program. Three productions for children, presented by adults, are offered each season. TMP's budget has been driven by the fantastic growth of the company's earned revenue. The organization hired a part- time Development Coordinator in 2000 and successfully launched its first Annual Fund campaign which raised over $37,000. The Annual Fund campaign drive continues to grow and has met its goal in subsequent years. TMP has received grant funds from several new sources since this hiring �� c6 2- including U.S. Bank, the Forest Foundation, the Seattle Foundation, the West End Neighborhood Council, Junior League of Tacoma, Pierce County Arts Commission, Tacoma Public Utilities, Frank Russell Company and the Dimmer Family Foundation. TMP has established relationships for in-kind support from The News Tribune, Microsoft Corporation, the Boeing Company and the Seattle Opera House. The organization was also initiated into the Tacoma Arts Commission's Anchor Fund in December 2000. TMP's operating budget ($1.2M) has been driven by the fantastic growth of the company's revenue from increased season subscriptions and single ticket sales. TMP has yet to experience a significant operating deficit. An independent accounting firm reviews or audits our financial statements. Education is a priority for TMP. Initially, a Summer Musical Theater Youth Camp trained a group of talented and eager young performers each summer, culminating in a fully -staged public production. A professional staff of instructors offers a well-rounded program in all aspects of musical theater. In 2004 a Spring Break Youth Camp was additionally offered. In 2005, a full year of education opportunities now exist with the hiring of a Director of Education. A Winter Break Youth Camp, an After School Academy, and a Summer Honor Camp were added to the educational programs ensuring nearly year-round activities for young people at TMP. This year we have added another new program ACT at TMP. This program offers young students the chance to enhance or learn more theatrical skills such as auditioning, acting, singing and dancing. These programs are structured in the manner of a conservatory program. Another successful educational outreach program focuses on professional theater. TMP directors, Jon Rake and Jeffrey Stvrtecky, offer intensive theater tours to destinations like New York, London, Chicago, Las Vegas or Los Angeles where patrons enjoy the experience of attending several Broadway shows. Hundreds of patrons have enjoyed the touring opportunity thus far. These tours serve several purposes: they build patron loyalty for TMP; they help educate our patrons about the entire professional theater experience; and they offer an insight into professional theater production. Increased marketing efforts have contributed to the growth in attendance of our productions. TMP entered into.a sponsorship agreement with The News Tribune to increase our visibility through display ads. This has brought several new patrons to the theater,. and we have increased our sponsorship agreement with them for the current season. The organization also occasionally uses radio advertisements with KPLU or KING -FM. A two-for-one incentive to first time ticket buyers was a huge success in getting patrons back through our doors for a repeat visit. TMP's "Playhouse Post" newsletter is a promotional tool that has resulted in a positive response from the community. We are more visible to our existing patrons and are attracting new patrons through this effective tool. It has resulted in a steady flow of in-kind contributions from a "wish list" printed in each newsletter. We also use the newsletter to recognize and thank the volunteers who supportthe ongoing programs of TMP. TMP's website www.tmp.org receives thousands of hits monthly and allows patrons to order tickets directly on line. Perhaps the most important issue facing TMP is its theater facility. The Narrows Theatre became home to the company in 1995. In November, 2002, TMP purchased the Narrows Theatre and its surrounding Narrows Shopping Center from the family members of the original family that built the Center. In the fall of 2007, TMP unveiled a major remodel (Phase 1) that included taking over two of the rental units adjoining the theater and turning those spaces into new expanded lobby, concessions, patron restrooms, cast dressing rooms, green room and restrooms. A refinance of our debt through the Washington State Housing Finance Commission and grants from local and state governments paid for the remodel without the need for a capital campaign. The theater requires significant restorations and modifications to make it a viable space to present live theater productions into the future. TMP would like to expand its current reach and programming by adding a secondary performing arts space for Education and smaller scale productions. This new space would also be used for fostering workshops and new productions not suitable for our current space and its technical limitations. Phases 2 and 3 will include theater technical modifications and will, however, be accomplished with capital campaign funding. e -TAI Tacoma Musical playhcuse Key Staff Bios Jon Douglas Rake, Founder and Managing Artistic Director Jon Douglas Rake has spent nearly all of his adult life devoted to musical theater. He began his career as a professional dancer and soon discovered his unique talents for choreography and directing. Educated at the University of California, San Diego, Jon has produced, directed, choreographed or acted in well over 200 musical theater productions at the professional or community theater level on the West Coast. He founded Tacoma Musical Playhouse in 1994 to fill a gap in the Tacoma theater scene. TMP is the only South Sound theater company devoted to producing musicals exclusively. His creative energy is the driving force behind the company. Jon's other interests include historic architecture and gourmet dining. Jeffrey Stvrtecky, Business Manager, Music Director Jeffrey Stvrtecky earned his B.M. degree in Piano from Wheaton College and his M.M. and D.M.A. degrees in Choral Music from USC. He was the Founder and Music Director of Tacoma Master Chorale, founded in 1994. Jeff serves as Director of Music at First Christian Church, Tacoma. He has maintained a secondary avocation in accounting, serving as Business Manager for TMP since its inception. He has held full -charge bookkeeping positions and other finance positions at numerous firms or businesses including: Moss Adams, Gibson, Dunn and Crutcher, Sir Speedy Printing, and Pacific Video. Maria Valenzuela Lewis, Marketing & Office Manager, Director of Youth Music A former scientist and manager with the Departments of Commerce and Defense, Maria also has over 30 years of performance experience and education in music and theater. She spent 12 years with the Federal Government managing satellite offices and programs along the west coast prior to entering the business of non-profit arts management. At the age of 26, she was the youngest individual ever appointed to the position of Official -in -Charge of a major National Weather Service Office (San Francisco International Airport) where she maintained a high-profile office of professional and technical staff in support of the region's critical needs. After several subsequent management positions, Maria has effectively developed the ability to balance the unique needs of the administrative, artistic, human resource and marketing requirements of a successful non-profit performing arts organization. Currently, Maria oversees all Box Office operations for TMP and organizes and creates all marketing literature and calendars including: newsletters, brochures, posters, press releases and show programs. She also maintains the TMP website. A native of NE Tacoma, she currently resides in the Dumas Bay neighborhood of Federal Way. As an actor, coach, director and professional singer, Maria's recent experiences have included everything from directing the Tacoma Children's Musical Theater productions for family audiences; to regularly appearing as a member of the renowned Seattle Opera Chorus; to serving as music director for the Pierce County Daffodil Festival since 2005; and to a Carnegie Hall debut performance in 2007. Chris Serface, Director of Education Chris Serface has been active in theater for over 15 years. Raised in the Pacific Northwest, Chris became passionate about the theater at an early age and became involved with the local community theater scene. During his educational and professional travels, he has found himself involved with theaters from Washington to Utah, working closely with Capital Playhouse, Weber State University, Capital High School, Utah Musical Theatre, The Wasatch Playhouse, The Garage Theatre, The Abbey Players, Lakewood Playhouse, and Tacoma Musical Playhouse as either an administrator, educator, actor, technician, director or musician. In his travels outside of Washington, Chris was never able to find any programs that matched the caliber of those provided in the Pacific Northwest and is proud to be back in the area. Chris brings the dynamic of being a performer, educator, and businessman, able to see all sides of an organization and give a viewpoint that reflects the interests of the artistic and business sides of the theater world. In his previous professional experiences he served as: District Manager for Hollywood Video, managing 18 retail locations with full profit/loss responsibility and human resources control; Company Manager for Capital Playhouse where he implemented and developed a Human Resources program, oversaw the reorganization of their accounting practices, developed a Community Outreach program, oversaw Profit & Loss management, and ensured patron retention. Currently in his role as Director of Education at Tacoma Musical Playhouse he is committed to teaching the discipline of theater to the youth of our communities and is excited to be returning to the educational side of theater to help build the next generation of actors that will come out of the Pacific Northwest. --E-t 5 Diana George, Director of Development Diana has 15 years experience working in fundraising and event coordination. This includes Budget/ Final reports of events, Proposal presentations, Emcee, Coordination of Event schedules, Advertising/ Marketing, Decorations, Entertainment, Contracts, Catering, Allocation of Venues, Caterers, Sponsorships and Grants, Speakers, and Volunteer Coordination. Various events include: Ladies Luncheons, Silent Auctions, Fashion Shows, Dinners, and Educational Workshops. She has also formatted grant programs for various non-profit organizations completing research and writing of grant proposals, Letters of Interest and final reports and tracking of budget and expenditures of grants. Diana is a member of the Puget Sound Grantwriters Association, The Foundation Center, The Non -Profit Center, and Philanthropy Northwest. She has completed classes and workshops such as Pierce County Grantwriting Workshop, Beginning and Advanced Grantwriting, and the PGSA Grantwriting Conference 2008. Alongside such varied positions as Research Scientist in Cancer Cytogenetics, Tap Dance Instructor, and Executive Director of CAPRI Heart and Lung Institute, Diana's path and passion has always included involvement with musical theater arts bringing over 30 years experience onstage and backstage as insight to her position. Will Abrahamse, Technical Director Will recently joined the TMP family after spending the last decade in technical theater with ArtsWest Playhouse and Gallery in West Seattle, Coeur d'Alene Summer Theatre, Puget Sound Musical Theatre and others. Will served as the Technical Director for ArtsWest for three years where he also performed the duties of Resident Set Designer and Scenic Artist. He has also worked extensively with the Drama Programs at Auburn Riverside and Enumclaw High Schools. Will is experienced in all aspects of technical theater and is proficient in ETC lighting controls systems, intelligent lighting systems, live sound mixing, rigging, and operation and maintenance. Will studied Technical Theatre and Design at the University of Idaho and Washington State University. U Representative Calendar of Events for Knutzen Family Theatre January Rentals TCMT Family musical, Midweek school matinees After school camp July Saturday Conservatory ACT at the Knutzen TMP Summer Musical Production Jazz Concert Summer camp continues Rentals Rentals February Valentine's Day Cabaret Production TMP Production After school camp ACT at the Knutzen City of Federal Way Presentation Family Film Series Tour show—Washington Artists Midweek school matinees Rentals March TCMT Family musical, Midweek school matinees Missoula Children's Theatre—City of FW Classical concert series Centerstage Theatre Afterschool camp ACT at the Knutzen Rentals April Touring production—City of FW Afterschool camp ACT at the Knutzen Family Film Series Spring break camp & shows Guest artist presentation Rentals May Centerstage Theatre Afterschool camp ACT at the Knutzen Jazz at the Knutzen Touring show—Washington Artists Midweek school matinees TCMT Family musical, Midweek school matinees Rentals June Summer camp begins Dance company recitals Classical concert ---�-8� August TMP Broadway style revue City of Federal Way Presentation Family Film Series Summer camp Productions Rentals September Preview Event of upcoming at the Knutzen Classical concert series Centerstage Theatre Afterschool camp ACT at the Knutzen Rentals October Touring production—City of FW Afterschool camp ACT at the Knutzen Family Film Series Guest artist presentation Murder Mystery Dinner Rentals November Missoula Children's Theatre—City of FW Centerstage Theatre Afterschool camp ACT at the Knutzen Jazz at the Knutzen Touring show—Washington Artists Midweek school matinees TCMT Family musical, Midweek school matinees Rentals December Winter break camp Centerstage Theatre Holiday Family Film Holiday musical production Dance company recitals Classical concert TACOMA MUSICAL PLAYHOUSE FINANCIAL STATEMENTS For the years ended August 31, 2007 and 2006 TACOMA MUSICAL PLAYHOUSE STATEMENTS OF FINANCIAL POSITION August 31, 2007 and 2006 Other Assets: Deposits 2,630 13,330 TOTALASSETS $ 2,437,105 $ 1,750,330 LIABILITIES AND NET ASSETS 2007 2006 ASSETS $ 73,826 $ 17,616 Current Assets: Cash and cash equivalents $ 4,040 $ 152,229 Accounts receivable 31 31,373 2,086 Employee receivable 5,552 4,779 4 Prepaid expenses 81,209 86,.139 TOTAL CURRENT ASSETS 558,174 272,233 Land, Property and Equipment, Net 1,876,301 1,464,767 Other Assets: Deposits 2,630 13,330 TOTALASSETS $ 2,437,105 $ 1,750,330 LIABILITIES AND NET ASSETS Current Liabilities: Accounts payable $ 73,826 $ 17,616 Federal income tax payable 1,000 2,995 Deferred ticket revenue and sponsorships 366,281 240,815 Refundable deposits 2,875 8,329 Current portion of long-term debt 265,453 28,740 TOTAL CURRENT LIABILITIES 709,435 298,495 Long -Term- Debt: Net of current portion 1,434,224 1,138,106 TOTAL LIABILITIES 2,143,659 1,436,601 Net Assets: Unrestricted 284,230 304,513 Permanently restricted 9,216 9,216 TOTAL NET ASSETS 293;446 313,729 TOTAL LIABILITIES AND NET ASSETS $ 2,437,105 $ 1,750,330 See Accountant's Review Report. See accompanying notes. • -2- TACOMA MUSICAL PLAYHOUSE STATEMENTS OF ACTIVITIES AND CHANGE IN NET ASSETS For the years ended August 31, 2007 and 2006 PROGRAM REVENUES Ticket sales Theater trips Tuition revenue Concessions, net of cost TOTAL PROGRAM REVENUES OTHER REVENUES Corporate sponsorships Government contracts Foundation funding Individual donations Program advertising Fundraising . Capital campaign Miscellaneous TOTAL OTHER REVENUES TOTAL REVENUES PROGRAM EXPENSES Artistic personnel Theater trips Technical Education Facilities Production Development Marketing TOTAL PROGRAM EXPENSES GENERAL AND ADMINISTRATIVE EXPENSES TOTAL EXPENSES CHANGE IN NET ASSETS FROM OPERATIONS NET RENTAL ACTIVITY CHANGE IN NET ASSETS NET ASSETS, Beginning NET ASSETS, Ending See Accountant's Review Report. See accompanying notes. 2007 Permanently Unrestricted Restricted Total 499,525 $ - $ 499,525 179,919 -- 179,919 61,196 - 61,196 11,380 --- 11,380 752,020 - 752,020 29,850 -- 29,850 11,000 11,000 2,500 - 2,500 133,462 - 133,462 1,830 -- 1,830 22,808 - 22,808 26,603 - 26,603 5,692 - 5,692 233,745 - 233,745 985,765 - 985,765 134,271 - 134,271 192,814 - 192,814 73,667 --- 73,667 58,558 - 58:55E 126,256 - 126,25E 103,333 -- 103,332 69,240 - 69,24C 42,172 - 42,172 800,311 -- 800.,311 230,956 - 230,95E 1,031,267 -- 1,031,267 (45,502) - (45,502 25,219 - 25,21S (20,283) - (20,281- 304,513 20,28: 304,513 9,216 313,725 $ 284,230 $ 9,216 $ 293,44E -3- 2006 Permanently Unrestricted Restricted Total $ 432,958 $ --- $ 432,958 153,985 - 153,965 46,256 --- 46,256 - 7, 584 _1,584 640,783 - 6401783 26,595 - 26,595 12,000 -- 12,000 8,100 -- 8,100 105,413 - 105,413 940 940 8,207 -- 8,207 7,454 - - 7;454 168,709 --- 168,709 809,492 - 809,492 133,819 -- 133,819 159,719 -- 159,719 49,751 -- 49,751 107,444 - 107,444 71,788 - 71,788 46,739 -- 46,739 41,956 - 41,956 611,216 --- 611,216 222,047 -- 222,047 833,263 - 833,263 (23,771) -- (23,771) 12,425 -- _ 12,425. (11,346) -- (11,346) 315,859 9,216 325,075 $ 304,513 $ 9,216. $ 313,729 7- I Z TACOMA MUSICAL PLAYHOUSE FINANCIAL STATEMENTS AUGUST 31, 2005 and 2004 Tacoma Musical Playhouse STATEMENTS OF FINANCIAL POSITION August 31, ASSETS CURRENT ASSETS: Cash Accounts receivable Employee receivable Federal income tax deposit Prepaid expenses Total current assets 2005 2004 $ 222,987 $ 232,404 29,622 14,577 9,187 17,613 - 414 48,174 52,859 309,970 317,867 LAND, PROPERTY AND EQUIPMENT, net of depreciation 1,330,128 1,364,860 OTHER ASSETS: Deposits Restricted cash Total other assets TOTAL ASSETS 2,417 3,380 9,318 7,252 11,735 10,632 $ 1,651,833 $ 1,693,359 LIABILITIES AND NETS ASSETS CURRENT LIABILITIES: Accounts payable $ 30,334 $ 31,030 Federal income tax payable 2,469 - Deferred ticket revenue and sponsorships 169,247 180,984 Current portion of long-term debt 22,897 21,240 Total current liabilities 224,947 233,254 LONG-TERM LIABILITIES: Long-term debt, net of current portion Deposits Total long-term liabilities Total liabilities 1,094,557 1,116,958 7,254 7,254 1,101,811 1,124,212 1,326,758 1,357,466 NET ASSETS: Unrestricted 315,859 328,677 Permanently restricted 9,216 7,216 Total net assets 325,075 335,893 TOTAL LIABILITIES AND NET ASSETS See accountants' review report and notes to the financial statements. 2 n ", $ 1,651,833 $ 1,693,359 Tacoma Musical Playhouse STATEMENTS OF UNRESTRICTED REVENUES EXPENSES AND OTHER CHANGES IN UNRESTRICTED NET ASSETS For the years ended August 31, CHANGES IN .UNRESTRICTED NET ASSETS: PROGRAM REVENUES: Ticket sales Theater trips, net of direct costs of $204,616 for 2005 and $216,124 for 2004 Summer youth program tuition Concessions, net of cost Total program revenue OTHER REVENUES: Corporate sponsorships Government contracts Foundation funding Individual donations Program advertising Fundraising Miscellaneous Total other revenue Total Revenue PROGRAM EXPENSES: Artisitic personnel Technical Facilities Production Development Marketing Total program expenses GENERAL AND ADMINISTRATIVE EXPENSES Total Expenses INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS FROM OPERATIONS NET RENTAL ACTIVITY INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS See accountants' review report and notes to the financial statements. 2005 % 2004 $ 405,878 66.17 $ 361,656 63.24 (29,494) (4.81) 24,710 4.32 21,276 3.47 20,285 3.55 5,224 0.85 5,690 0.99 402,884 65.68 412,341 72.10 23,315 3.80 17,803 3.11 24,000 3.91 13,600 2.38 30,800 5.02 18,750 3.28 97,090 15.83 94,806 16.58 60 0.01 850 0.15 30,463 4.97 11,683 2.04 4,779 0.78 2,039 0.36 210,507 34.32 159,531 27.90 613, 391 100.00 571,872 100.00 112,885 18.40 91,153 15.94 52,722 8.60 39,685 6.94 104,375 17.02 80,803 14.13 84;018 13.70 48,083 8.41 51,555 8.40 41,419 7.24 41,922 6.83 37,936 6.63 447,477 72.95 339,079 59.29 191,118 31.16 155,480 27.19 638,595 104.11 494,559 86.48 (25,204) (4.11) 77,313 13.52 12,386 2.02 5,547 0.97 $ (12,818) (2.09) $ 82,860 14.49 Tacoma Musical Playhouse STATEMENTS OF CHANGES IN NET ASSETS For the years ended August 31, UNRESTRICTED REVENUES UNRESTRICTED EXPENSES NET RENTAL ACTIVITY INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS CHANGES IN PERMANENTLY RESTRICTED NET ASSETS: Individual donations INCREASE (DECEASE) IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR NET ASSETS AT END OF YEAR See accountants' review report and notes to the financial statements. 4 2005 % 2004 % $ 613,391 100.00 $ 571,872 100.00 (638,595) (104.11) (494,559) (86.48) 12,386 2.02 5,547 0.97 (12,818) (2.09) 82,860 14.49 2,000 0.33 - - (10,818) (1.76) 82,860 14.49 335,893 54.76 253,033 44.25 $ 325,075 53.00 $ 335,893 58.74 Tacoma Musical playhouse Growth History Annual Attendance + W" e e W."J" qOf opo e #A o 4;',' o'�0 Season Season Subscriptions rrr' n C�ro e e" e C�� Ce �� ee C��, -;�A e / e COUNCIL MEETING DATE: March 17, 2009 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: FEDERAL WAY CONFERENCE AND CULTURAL CENTER POLICY QUESTION: Should the City Council authorize the expenditure of State pre -construction dollars to assist the City Council in selecting a downtown site for a Conference and Cultural Center, and a conforming amendment to the existing CTED contract for pre -construction funds. COMMITTEE: PRHSPS MEETING DATE: March 10, 2009 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Neal Beets DEPT: City Manager At the January 31" City Council Retreat, the Council asked staff to develop addit------------ ional information to enable Council to pick a downtown site for a potential combined Conference and Cultural Center. Staff now seeks Council approval to amend the existing $500,000 contract with CTED and to spend up to but not to exceed $75,000 of those State pre -construction dollars to accomplish this. This money could be used however Council directs that is consistent with an amended CTED contract. Staff suggests we contract with an architect for a conceptual level design of a prototype building that combines a Conference and Cultural Center within one building; this architectural engagement would include developing approximate square footages for the major functions within the building and a prototype footprint for a combined Conference and Cultural Center. It would also entail evaluation of up to five downtown sites using the prototype building footprint as an evaluation guide. Staff also recommends we develop a conceptual level business plan for an integrated Conference and Cultural Center. This business plan would draw upon information previously developed and reported by Charles S. Johnson and Associates in their 2007 PAC and Conference Center Feasibility Report to the City Council. Staff estimates this site and business planning work will take approximately two months to complete following CTED's consent to a conforming contract amendment. At the conclusion of this work, staff would return to the City Council with this additional information to see if the Council is ready to select a preferred downtown site for a Conference and Cultural Center. STAFF RECOMMENDATION: Authorize the expenditure of up to $75,000 from the $500,000 in State Pre -construction funds to develop additional architectural, site, and business information relating to a potential combined Conference and Cultural Center in downtown Federal Way, and authorize the City Manager to sign a conforming CTED contract amendment for such pre - construction services. CITY MANAGER APPROVAL: �\ ` DIRECTOR APPROVAL: %- C ee ncd �ttee ` 6_tcd COMMITTEE RECOMMENDATION: Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION(S): I move that we authorize Staff to spend up to $75, 000 from the $500, 000 in State Pre -Construction dollars to develop additional information to enable Council to select a site for a possible downtown Conference and Cultural Center, and to amend the existing CTED contract to conform.. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED IST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED— 02/06/2006 RESOLUTION # �, -2-