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Council PKT 11-15-2011 RegularCITY OF ,',�,,�.... Federal Way AGENDA FEDERAL WAY CITY COUNCIL REGULAR MEETING Council Chambers - City Hall November 15, 2011 7:00 p.m. www. cityoffederalway. com 1. CALL MEETING Tp ORDER 2. PLEDGE OF ALLEGIANCE 3. PRESENTATIONS a. Mayor's Emerging Issues 4. CITIZEN COMMENT PLEASE COMPLETE A PWK SLIP AND TURN IT IN TO THE CITY CLERK PRIOR TO SPEAKING. When recognized by the Mayor, come fo►ward fo the podium and state your name for the record. Please limit your comments to three minutes. The Mayor may interrupt comments thaf exceed fhree minutes, re/ate negafively to other individuals or are otherwise inappropriate. 5. CONSENT AGENDA Items listed below have been previously reviewed in their entirety by a Council Commitfee of three members and broughf before full Council for approval. All items are enacted by one motion. lndividual items may be removed by a Councilmember for separate discussion and subsequent motion. a. Minutes: November 1, 2011 Special and Regular Meeting .., paqe 3 b. S. 344 St. at Weyerhaeuser Way Roundabout — 30% Design Status Report.., page 10 c. Village Green — Tract X ... page 12 d. First Amendment to the ORCA Pacific, Inc. Agreement ... page 16 e. Services Agreement for the Commons and Federal Way Police Services... page 17 f. Cingular Wireless Site Lease Amendment — BPA Trail/Aquatic Center... page 25 6. PUBLIC HEARING a. 2011/2012 Biennial Budget Adjustment & Property Tax Rate...page 2s • Staff Presentation • Public Comment � Council Action The Council may add items and take action on items not listed on the agenda. 7. COUNCIL BUSINESS a. SW 336 @ 21 5t Ave. SW intersection Improvements... page 31 b. 2012-2016 CDBG Consolidated Plan .., page 39 c. 2012 CDBG Annual Action Plan... page �33 d. 2012 Legislative Agenda... page �ss 8. ORDINANCES First Reading: a. CB #589 Transportation Impact Fee Code page 177 � An ordinance of fhe City of Federal Way, Washington, relating to Transportation Impact Fee' (TfF) and adding new sections to chapter 19.91 FWRC. � b. CB #590 Proposed Amendments to SEPA Exemptions in Critical Area... page 1s2 An ordinance of the Cify of Federal Way, Washingfon, relating to SEPA Exemptions in Critical Areas; amending FWRC 14.30.030 and 14.30.040. Second Reading: c. CB #588 Puaet Sound Enerqv Franchise ... page 197 An ordinance of the City of Federal Way, Washington, granting Puget Sound Energy, Inc. a non-exclusive franchise to occupy rights-of-way in the City of Federal Way, Washington, within the specified franchise area for the purpose of transmission, distribution and sale of electrical energy for power, heat and light and any other purpose for which such energy can be used. 9. COUNCIL REPORTS 10. MAYOR'S REPORT 11. ADJOURNMENT The Council may add items and take action on items not listed on the agenda. COUNCIL MEETING DATE: November 15, 2011 ITEM #: a CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: CITY COUNCIL MEETING MINUTES POLICY QUESTION: Should the City Council approve the draft minutes of the November 1, 2011 Special and Regular Meetings? COMMITTEE: N/A MEETING DATE: N/A CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Carol McNeilly, City Clerk DEPT: Hum R esour ces Attachments: Draft meeting minutes from the November 1, 2011 Special and Regular Meetings. Options Considered: 1. Approve the minutes as presented. 2. Amend the minutes as necessary. STAFF RECOMMENDATION: Staff recommends approving the minutes as presented. CITY CLERK APPROVAL: N/A 0 A DIRECTOR APPROVAL: N/A N/A Committee COACH Committee Council COMMITTEE RECOMMENDATION: N/A PROPOSED COUNCIL MOTION: "I MOVE APPROVAL OF THE MINUTES AS PRESENTED ". BELOW TO BE COMPLETED BY CITY CLERKS OFFICE COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED I ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06 /2006 RESOLUTION # Federal Way MINUTES FEDERAL WAY CITY COUNCIL SPECIAL MEETING Council Chambers - City Hall November 1, 2011 6:00 p.m. www.cityoffederalway.com 1. CALL MEETING TO ORDER Mayor Priest called the meeting to order at 6:00 pm Elected officials present: Mayor Skip Priest, Deputy Mayor Dini Duclos, Councilmember Jim Ferrell, Councilmember Linda Kochmar, Councilmember Mike Park, Councilmember Jack Dovey and Councilmember Roger Freeman. Mayor Priest excused Councilmember Jeanne Burbidge. City staff present: City Attorney Pat Richardson and City Clerk Carol McNeilly. 2. EXECUTIVE SESSION The City Council adjourned to executive session at 6:00 pm to discuss collective bargaining pursuant to RCW 42.30.140(4)(b) and potential litigation pursuant to RCW 42.30.110(1)(i) for approximately 45 minutes. The City Council adjourned from executive session at 6:43 pm. 3. ADJOURNMENT Mayor Priest adjourned the meeting at 6:43 pm. Attest: Carol McNeilly, CIVIC, City Clerk Approved by Council City Council Minutes — November 1, 2011 Special Meeting Page I of 1 CITY OF Federal Way MINUTES FEDERAL WAY CITY COUNCIL REGULAR MEETING Council Chambers - City Hall November 1, 2011 7:00 p.m. www.cityoffederalway.com 1. CALL MEETING TO ORDER Mayor Priest called the meeting to order at 7:08 pm. Elected officials present: Mayor Skip Priest, Deputy Mayor Dini Duclos, Councilmember Jim Ferrell, Councilmember Linda Kochmar, Councilmember Mike Park, Councilmember Jack Dovey and Councilmember Roger Freeman. Mayor Priest excused Councilmember Jeanne Burbidge. City staff present: City Attorney Pat Richardson and City Clerk Carol McNeilly. 2. PLEDGE OF ALLEGIANCE Councilmember Park led the Pledge of Allegiance. 3. PRESENTATION a. Volunteer Spotlight: Build the Bridge Coalition Mayor Priest stated tonight's volunteer spotlight focuses on the individuals who make up the Build a Bridge Coalition, a community group that has been working over the past two decades to support the Westway neighborhood near Twin Lakes. Mayor Priest asked Kathy Schmidt from St. Francis Hospital to share about the coalition's work. Ms Schmidt thanked the Council for the recognition. Currently they have two major projects; the creation of community gardens at Olympic View Elementary School and the Westway Community Center as well as a soccer field. b. Proclamation: Pancreatic Cancer Awareness Month Deputy Mayor Duclos read the proclamation declaring November as Pancreatic Cancer Awareness Month into the record and presented it to Meg Stegall, a Federal Way resident and volunteer with the Puget Sound Affiliate Pancreatic Sound Affiliate. Ms. Stegall thanked the Council for the recognition. c. Mayor's Emerging Issues Mayor Priest announced there were three emerging issue this evening. Cascadia Medical Tech Corporation City Council Minutes — November 1, 2011 Regular Meeting Page 1 of 5 Deputy Mayor Duclos reported in 2009 the Council authorized the City Manager to execute an agreement with enterprizeSeattle to conduct a feasibility studyfor medical device innovation in Federal Way. In 2010, the Council authorized $245,000 from the downtown re- development fund to begin implementation on a plan to bring jobs to Federal Way. Deputy Mayor Duclos is the chair for the non - profit Medical Tech Association, which oversees the Cascadia Medical Tech Corporation. Deputy Mayor Duclos introduced Garry Welch, CEO of Cascadia Med -Tech Corporation who updated the Council on the status of the organization and its efforts to create jobs in Federal Way. The Med -Tech is currently working with six organizations on various products. Mr. Welch reviewed the resource partners, which include ORION, Adam Smith, Washington State University Spokane and Pullman, Eastern Washington University, University of Washington Tacoma amongst others. Business development activities include premise visits, on -line marketing campaign. and attendance at medical device conferences /summits. City Emplovee Heath Care Mayor Priest recapped the City's actions to meet an $8.9 million budget deficit for the 2011/2012 budget. He stated the City has been taking actions to control healthcare insurance costs as well as the projected deficit facing the City in 2013/2014. On October 3, 2011, non - represented employees were notified the City would be changing healthcare insurance providers. At a previous Council meeting, Mayor Priest stated he was optimistic that represented employees would also agree to the change in providers. With all the employees under the new health care program, the City would save $619,000 to be redirected toward saving jobs. The Teamsters, Court Clerk's and the Parks /Public Works Maintenance Workers have all agreed to the change in providers. The Police Unions voted against accepting the health care package. Without the represented employees in the Police Department agreeing to the change in health care the City will only save $300,000. • Proposed State Budget Cuts Mayor Priest stated the Governor is proposing to eliminate sharing liquor profits and excise taxes with cities. If approved the City would loose approximately $1.3 million annually to our law enforcement budget. The City intends to respond to the proposal and oppose the plan. 4. CITIZEN COMMENT Dick Hayek member of the Kiwanis, invited the Council and citizens to the November 12 Veterans Day Event at Todd Beamer High School. Betty Taylor spoke is support of extending the citizen comment to five minutes. She asked for clarification on the Council Rules of Procedures section 2.2 where it states a group can speak for five minutes. Deanna Kirkpatrick resident of Tall Firs Condo Complex, thanked the Police Department specifically officers Walker and Ellis for their efforts to keep drugs out of their complex. Keith Tyler commented on the Crystal Palace Project. He urged the Council to make sure any public space be open to the public and under the City's management. He stated he would like to know what the representative Police employees concerns were with the new health care coverage. Tim Burns spoke about the Mayor's comments regarding the represented Police City Council Minutes — November 1, 2011 Regular Meeting Page 2 of 5 employees vote on the health insurance coverage. He feels the Police should have the opportunity to speak to their decision 5. CONSENT AGENDA Items listed below have been previously reviewed in their entirety by a Council Committee of three members and brought before full Council for approval. All items are enacted by one motion. Individual items may be removed by a Councilmember for separate discussion and subsequent motion. a. Minutes: October 18, 2011 Special and Regular Meeting b. Monthly Financial Report - September c. Vouchers MOTION: Deputy Mayor Duclos Councilmember Dovey second. VOTE: Deputy Mayor Duclos: Councilmember Ferrell: Councilmember Kochmar: Councilmember Park: Councilmember Burbidge: Councilmember Dovey: Councilmember Freeman: Motion carried 6 -0. moved approval of items 5a through 5c. Yes Yes Yes Yes Excused Yes Yes 6. ORDINANCES First Reading: a. CB #588 Puget Sound Energy Franchise Agreement An ordinance of the City of Federal Way, Washington, granting Puget Sound Energy, Inc. a non- exclusive franchise to occupy rights -of -way in the City of Federal Way, Washington, within the specified franchise area for the purpose of transmission, distribution and sale of electrical energy for power, heat and light and any other purpose for which such energy can be used. Deputy Public Works Director Marwan Salloum presented information on this item. In 2008, the City's electrical franchise expired with Puget Sound Energy (PSE). Since then city staff and PSE have been negotiating a new franchise agreement. The proposed agreement grants PSE non - exclusive use of City right -of -way for electrical transmission /distribution for ten years. PSE will pay the City $5,000 for administrative costs incurred in preparing and approving this franchise. PSE will carry insurance of $5 Million combined single limit for commercial general liability and $5 million for auto insurance. PSE is also required to post a performance bond of $50,000, which will remain in effect for the term of the franchise. Additional bonding may be required as a condition o the right -of -way permit that exceeds $100,000. City Clerk McNeilly read the ordinance title into the record. MOTION: Councilmember Park moved to forward the ordinance to the November 15, 2011 City Council meeting for approval and enactment. Deputy Mayor Duclos second. VOTE: City Council Minutes — November 1, 2011 Regular Meeting Page 3 of 5 Deputy Mayor Duclos: Yes Councilmember Ferrell: Yes Councilmember Kochmar: Yes Councilmember Park: Yes Councilmember Burbidge: Excused Councilmember Dovey: Yes Councilmember Freeman: Yes Motion carried 6 -0. Yes Second Reading: b. CB #586 Shoreline Master Program — Final Approval and Adoption An ordinance of the City of Federal Way, Washington, relating to amendments to the City's comprehensive plan adding a new Chapter 11 `Shoreline Master Program" repealing existing Title 15 FWRC; and adding a new Title 15 FWRC. At their October 18, 2011 Regular meeting, the City Council voted to forward the ordinance to second reading and enactment. City Clerk McNeilly read the ordinance title into the record. MOTION: Councilmember Kochmar moved approval of the ordinance. Councilmember Freeman second. VOTE: Deputy Mayor Duclos: Yes Councilmember Ferrell: Yes Councilmember Kochmar: Yes Councilmember Park: Yes Councilmember Burbidge: Excused Councilmember Dovey: Yes Councilmember Freeman: Yes Motion carried 6 -0. Ordinance 11 -705 c. CB #587 Amendments to the Federal Wav Revised Code Relatinq to Accessory Uses and Convention Centers in the Office Park Zone. An ordinance of the City of Federal Way, Washington, relating to types of accessory uses and status of convention centers in the Office Park Zone, amending FWRC 19.235.010, 19.235.020 and 19.235.030. At their October 18, 2011 Regular meeting, the City Council voted to forward the ordinance to second reading and enactment. City Clerk McNeilly read the ordinance title into the record MOTION: Councilmember Koc Deputy Mayor Duclos second. VOTE: Deputy Mayor Duclos: Councilmember Ferrell: Councilmember Kochmar: Councilmember Park: Councilmember Burbidge: Councilmember Dovey: Councilmember Freeman: hmar moved approval of the ordinance. Yes Yes Yes Yes Excused Yes Yes City Council Minutes — November 1, 2011 Regular Meeting Page 4 of 5 Motion carried 6 -0. Ordinance 11 -706 7. COUNCIL REPORTS Deputy Mayor Duclos encouraged residents to apply for the City's Civil Service and Independent Salary Commissions. Councilmember Freeman had no report. Councilmember Dovey had no report. Councilmember Park had no report. Councilmember Kochmar announced the next LUTC Meeting is November:7, 2011. Councilmember Ferrell reported that it is getting cold and asked people to donate to the local clothing banks. 8. MAYOR'S REPORT Mayor Priest had no report. 9. EXECUTIVE SESSION The Council did not adjourn to executive session. 10. ADJOURNMENT Mayor Priest adjourned the meeting at 8:10 pm Attest: Carol McNeilly, CIVIC, City Clerk Approved by Council: City Council Minutes — November 1, 2011 Regular Meeting Page 5 of 5 SUBJECT: S 344` Way @ Weyerhaeuser Way S Intersection Improvements — 30% Design Status Report POLICY QUESTION Should the Council authorize staff to proceed with design of the S 344"` Way @ Weyerhaeuser Way S Intersection Improvements Project and return to the LUTC and Council at the 85% design completion for further reports and authorization? COMMITTEE Land Use and Transportation Committee CATEGORY: ® Consent ❑ Ordinance MEETING DATE: November 7, 2011 ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: John Mulkey, P. E., Street Systems Project Engineer DEPT: Public Works Attachments: Land Use and Transportation Committee memorandum dated November 7, 2011. Options Considered: 1. Authorize staff to proceed with the design of the S 340 Way @ Weyerhaeuser Way S Intersection Improvements Project and return to the LUTC and Council at the 85% design completion stage for further reports and authorization. 2. Do not authorize staff to proceed with finalizing the present design of this project and provide direction to staff. MAYOR'S RECOMMENDATION Mayor recommends forwarding Option 1 to the November 15, 2011 City Council Co n se nt Agenda for approval. MAYOR APPROVAL: �y� ��rc 1 DIRECTOR APPROVAL: C ommittee C _ ._ ��/ Co ee Council ou teil COMMITTEE RECOMMENDATION Forward Option 1 to the November 15, 2011 City Council Consent Agenda for approval. ----% Linda Kochmar`, Chair / /Jiltlila`e Member / J�[ckpovey,,aVlember PROPOSED COUNCIL MOTION "I mo20 authorize staff to proceed with the�ign of the S 344` Way @ Weyerhaeuser Way S Intersection Improvements Project and return to the LUTC and Council at the 85% design completion stage for further reports and authorization. " (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 # CITY OF FEDERAL WAY MEMORANDUM DATE: November 7, 2011 TO: Land Use and Transportation Committee VIA: Skip Priest, Mayor FROM: Cary M. Roe, P.E., Director of Parks, Public Works and Emergency Management 0 0*** N John Mulkey, Street Systems Project Engineer �tM S UBJECT: S 340 Way @ Weyerhaeuser Way S Intersection Improvements — 30% Design Status Report BACKGROUND This project will construct a two -lane roundabout at this intersection. The purpose of the project is to improve traffic safety and capacity and reduce accidents by eliminating conflicts. The following provides a brief synopsis of the progress on this project to date. Currently, the project design is approximately 30% complete, which includes the following completed tasks: • The Topographical Surveys • Right of Way Plan • Channelization Plans • Project Design to 30% Ongoing Tasks Include: • SEPA Submittals • Right of Way Requirements (Property Appraisals, Review Appraisals, Negotiation and Acquisition) • Preliminary Contract Specifications • Project Design to 85% PROJECT ESTIMATED EXPENDITURES: Design $ 269,000 ROW Acquisition 40,000 2012 Construction Cost 1,200,000 10% Construction Contingency 120,000 C onstruction Management 120,000 TOTAL PROJECT COSTS $1,749,000 AVAILABLE FUNDING: Budgeted City Funds $1,034,000 Mitigation $0 Interest Earning 0 TOTAL AVAILABLE BUDGET . $1,034,000 At this time the project budget has a funding shortfall of $715,000. As we proceed with the project design and right of way acquisition process, the total project costs will be refined and presented to the Committee and Council at the 85% design completion status report for further action. COUNCIL MEETING DATE: November 15, 2011 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL S UBJECT: Village Green —Tract X Relinquishment POLICY QUESTION Based on the City's findings during the Village Green phased development review process that there was no need to extend 2 nd Ave SW onto the subject property as a public roadway, and due to the existing structural development constructed within Tract X, should the Council authorize the Mayor to relinquish the City's interest in Tract X? COMMITTEE Land Use and Transportation Committee MEETING DATE November 7, 2011 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Ken Miller, P.E., Deputy Public Works Director DEPT: Public Works Attachments: Memorandum to the Land Use and Transportation Committee dated November 7, 2011. Options Considered: 1. Authorize the Mayor to relinquish the City's interest in Tract X. 2. Do not authorize the Mayor to relinquish the City's interest in Tract X and provide direction to staff. MAYOR'S RECOMMENDATION Forward Option 1 to the November 15, 2011 City Council consent agenda for approval. MAYOR APPROVAL: _ DIRECTOR APPROVAL: Com ittee � Committee Council COMMITTEE RECOMMENDATION I move to forward Option I to the November 15, 2011 City Council consent agenda for approval. if Kochmar, Mair / /''JiueF'errell, Member PROPOSED COUNCIL MOTION: "I movelfo pr6thorize the Mayor to relinquish the City's interest in Tract X. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 08/12/2010 RESOLUTION # CITY OF FEDERAL WAY MEMORANDUM DATE: November 7, 2011 TO: Land Use and Transportation Committee VIA: Skip Priest, Mayor FROM: Cary M. Roe, P.E., Director of Parks, Public Works and Emergency Managemend * V Ken Miller, P.E., Deputy Public Works Director SUBJECT: Village Green — Tract X Reliinquishment I li—L91 XdMelaz1-13 The Village Green project is an existing senior housing facility located on the northwest corner of V Ave S and S 356 St that includes apartment -, cottage- and duplex -style housing units for senior citizens contained in multiple buildings over a 22 -acre site. Review, permitting and construction of this site have occurred through several phases over the past 16 years. The plat of Tuscany Woods, a single - family residential subdivision lies to the west of the Cottages West development (formally known as Village Green Phase III). The underlying land of Tuscany Woods was under the same ownership and part of the original undeveloped parcels that now make up Village Green, Cottages West and Tuscany Woods. Tuscany Woods and Cottages West share stormwater facilities; however, no portion of the Tuscany Woods plat will be impacted by the tract relinquishment issue that is currently before this committee and Council. In 1977, King County approved a four(4) — lot plat that consisted of a parcel of land that, today, would encompass the plat of Tuscany Woods, a majority of the Cottages West development, and the plat known as John Roe Add, as viewed on a current map of the area (attached as Exhibit A). As a condition of approval of the short plat, the County required a 30 -foot wide Tract X be designated along a portion of the east boundary of the short plat. Tract X aligns with what would now be the northerly extension of 2 nd Ave SW. The Tract X condition stipulates that the `owner... hereby agrees to dedicate Tract X to King County for right of way and street purposes, at such time as (the Tract) is needed for road purposes...'. As successor jurisdiction to King County, the City now possesses the right to enforce the Tract X condition and, if necessary, require the dedication of the tract for road purposes. The only section of the original Tract X to be dedicated for road purposes was with the subdivision and development of the John Roe Add, which occurred under King County jurisdiction. Throughout the development of Village Green, Cottages West and Tuscany Woods, the owner has, for various reasons, reconfigured the underlying property lines through the City's Boundary Line Adjustment (BLA) process. Although there have been four BLA's approved to date, the number of lots remains the same. During the review and approval process for the Village Green phases, it was determined by staff that the internal roadways serving the development could be private. More specifically, in regard to the potential extension of 2 nd Ave SW as a public street: any northerly extension of 2 nd Ave SW would terminate at the November 7, 2011 Land Use and Transportation Committee Village Green — Tract X Relinquishment Page 2 Heights at West Campus (multi - family housing north of Tuscany Woods and Cottages West developments); it was not feasible to connect 2 nd Ave to the west, due to steep topographic constraints; and, and an easterly public roadway connection to 1$` Ave S was unnecessary as the internal Village Green driveway connects to 1 ' Ave. Currently the Village Green/Cottages West owner has applied to the City for another Boundary Line Adjustment. Upon review of the BLA, it was determined that Tract X from the 1977 King County short plat still encumbers the property and the City maintains jurisdictional rights to require the tract to be dedicated for street purposes. The attached exhibit shows that portions of three residential buildings were constructed within Tract X, as well as portions of the private roadways and private utilities associated with Cottages West. In order for the property to be free and clear of the Tract X encumbrance, the owners are requesting to have the City relinquish our interest in Tract X. Based on staff's findings during the Village Green phased development review process that there was no need to extend 2 nd Ave SW onto the subject property as a public roadway, and due to the existing structural development constructed within Tract X, staff recommends the City Council authorize the Mayor to relinquish the City's interest in Tract X. cc: Project File Day File City of Vi I lage G reen Map Date October 2011 City of Federal Way Federai Way Federal Way, Wa 98033 Tract X (P) 253-835-7000 (1nn www.cityoffederalway.com . *' ' ,� �. ...a..�.�w.. �► __.__ ... . �� ' �� 4 � � . �� ,; Tr � iA� , s r . . ._ � � ��- �� _ , � �- ` � � ' � � , �,�' �' �e;� - - "�, .,.,'.. � r - � s ., , - � . . � . , r . . t�, °�� , ". , � 4 . w � � ,�� :� . 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Federal Way Feet The City of Federal Way makes N no warranty as to its accuracy. � � � N� � COUNCIL MEETING DATE: November 15, 2011 ITEM #: L )o ............................................................... ................... . .. ....... .... .................................................................................................................................................................................................................................................. ..-- ..... ........................................... .. ... .................................................................................. ............................... . .............. CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: FIRST AMENDMENT TO THE ORCA PACIFIC, INC. AGREEMENT POLICY QUESTION Should the Mayor and Council authorize a first amendment to the ORCA Pacific, Inc. Agreement? COMMITTEE: PRHSPS MEETING DATE: Nov. 8, 2011 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Crai .. _ z s �__........--- Feldman Aquatics Coordinator DEPT: PRCS ......... ........................... _....................................................................----. ... ................._............................._ .......................... ...................... -- ..........._..............._......_..............................----._._......__...........-----........_............ ......___..._.............._�__ — Background: The proposed amendment to the Agreement with ORCA Pacific, Inc. will allow an ongoing delivery of the chemicals and equipment needed to disinfect and balance the various bodies of water at the Federal Way Community Center. ORCA Pacific, Inc. submitted the lowest per unit quote for these services from the three quotes received in October 2010. By mutual agreement we seek authorization to extend their term for an additional year at the same 2010 rate. The compensation would be increased by $42,000.00 for a grand total contract of $84,000.00. Funding for this service is covered through the Federal Way Community Center Repair and Maintenance Budget. Options Considered: 1. Authorize a first amendment to the ORCA Pacific, Inc. Agreement by extending their term an additional year and increase the compensation by $42,000.00. 2.. Do not authorize . a first amendment . and provide direction to staff . _--..---.- .................. _..._.__..._..............._...-----.--.--__..._._ _.._.._....................._._ ...... _ -.- MAYOR'S RECOMMENDATION: MAYOR APPROVAL: 10 mn2 DIRECTOR APPROVAL: , 7 Committee Coun it Committee Council PROPOSED COUNCIL MOTION: " I move approval of authorizing a first amendment to the UK(-A I' acy1c, Inc. Agreement by extending their term an additional year and increasing the compensation by $42, 000.00. (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 — 08/12/2010 RESOLUTION # COMMITTEE RECOMMENDATION I move to forward the authorization of a first amendment to the ORCA Pacific, Inc. Agreement by extending their term an additional year and increase compensation by $42, 000.00 and authorize the Mayor to move said authorization to the full Council November 15, 2011 consent agenda for approval. S UBJECT: Services Agreement for The Commons at Federal Way Police Services POLICY QUESTION Should the City of Federal Way /Police Department allow ratification of the Service Agreement between the City Of Federal Way and Steadfast Commons II, LLC for police services at The Commons at Federal Way for the term on January 1, 2012 to December 31, 2012? COMMITTEE: Parks, Recreation, Human Services and Public Safety MEETING DATE: November 8, Council Committee - (PRHS &PS) 2011 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Sandy Tudor, Lieutenant DEPT: Police Attachments: 1. PRHS &PS Memo 2. The Commons at Federal Way Police Service Agreement Options Considered: 1. Ratify the Agreement 2. Reject the Agreement MAYOR'S RECOMMENDATION: Option 1., MAYOR APPROVAL: _ , DIRECTOR APPROVAL: AA1'-n 1 b1ak /i - +�ff�, ✓ Conunittee Coun 1 Committee Council COMMITTEE RECOMMENDATION I move to forward the proposed Agreement to the November 15, 2011 consent agenda for approval. Z Committee Chaim Committee Member v Corn 6frlber PROPOSED COUNCIL MOTION: "I move approval of the Commons at Federal Way Agreement, effective January 1, 2012 through December 31, 2012 with a total compensation of $148,232.70 and authorize the Mayor to sign said agreement. " (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 — 08/12/2010 RESOLUTION # CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: November 8, 2011 TO: Parks, Recreation, Human Services and Public Safety Council Committee VIA: Skip Priest, Mayor FROM: Brian J. Wilson, Chief of Police SUBJECT: Acceptance of the Services Agreement Between the City of Federal Way and Steadfast Commons H, LLC, owner of the Commons at Federal Way. Backiround Officers who are assigned to work at the Commons Mall are commissioned police officers providing full law enforcement and security services for the Commons Mall property. The Mall Resource Officers provide the opportunity for increased safety and security for patrons and businesses which enhances the environment for greater commerce, increases public perception of safety, and broadens our outreach and visibility in the community. The original Commons Mall agreement was signed in 1999 and has been renewed by both parties each year since then. The term of this Services Agreement is for one year, commencing January 1, 2012. It shall come up for renewal again in 2013. This agreement has been reviewed and approved by the legal departments of both parties and is ready for final signatures. CITY OF CITY HALL AN& 33325 8th Avenue South • Fe d e ra I Way Box 9718 Federal Way, WA 98063 -9718 18 (253) 835 -7000 www a yoffederalway com SERVICES AGREEMENT FOR THE COMMONS AT FEDERAL WAY POLICE SERVICES This Services Agreement ( "Agreement ") is made between the City of Federal Way, a Washington municipal corporation ( "City "), and Steadfast Commons II, LLC, a Delaware limited liability company ( "Owner "), owner of the Commons at Federal Way ( "Property "). The City and Owner (together "Parties ") are located and do business at the below addresses: STEADFAST COMMONS II, LLC: Lisa Whitney 1928 S. Commons Suite B Federal Way, WA 98003 253- 839 -6156 (telephone) lwhitney@steadfastcompanies.com CITY OF FEDERAL WAY: Brian Wilson, Chief of Police 33325 8 Ave S P.O. Box 9718 Federal Way, WA 98063 -9718 (253) 253 -835 -6701 (telephone) (253) 253- 835 -6739 (facsimile) Lynette. allen@cityoffederalweV The Parties agree as follows: 1. SERVICES The City shall perform the services more specifically described in Exhibit "A ", attached hereto and incorporated by this reference ( "Services "). 2. TERM The term of this Agreement shall be for one year commencing on January 1", 2012. 3. TERMINATION Either party may terminate this Agreement, with or without cause, upon providing the other party thirty (30) days written notice at its address set forth set forth at the beginning of this Agreement. Either Party may terminate this Agreement immediately if the other Party defaults or materially breaches the Agreement. 4. COMPENSATION In return for the Services, the Owner shall pay the City fifty percent of the cost of the salaries and benefits of each officer assigned to the Property for the time periods that they are assigned there. The numbers of hours and total rate shall be as set forth in Exhibit "B" attached hereto and incorporated by this reference ( "Compensation "). The City shall invoice and the Owner shall remit one twelfth of the total yearly compensation on a monthly basis. From time to time the Parties shall agree on any adjustment in rates. 5. INDEMNIFICATION 5.1 Owner Indemnification The Owner agrees to release, indemnify, defend, and hold the City, its elected officials, officers, employees, agents, representatives, and volunteers harmless from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, losses, fines, fees, penalties expenses, attorney's fees, costs, and/or litigation expenses to or by any and all persons or entities, including, without limitation, their respective agents, licensees, or representatives; arising from, resulting from, or in connection with this Agreement or the performance of this Agreement to the extent caused by the negligent or intentional acts, errors, or omissions of the Owner, except for that portion of the claims caused by the City's sole negligent or intentional acts, errors, or omissions. 5.2 City Indemnification The City agrees to release, indemnify, defend and hold the Owner, its officers, directors, shareholders, partners, employees, agents, and representatives harmless from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, losses, fines, fees, penalties expenses, attorney's fees, costs, and /or litigation expenses to or by any and all persons or SERVICES AGREEMENT - 1 - ` CITY OF CITY HALL 33325 8th Avenue South • Box 9718 Federal Way Federal Way, WA 98063 -9718 18 (253) 835 -7000 ww cityoffederalway com entities, including without limitation, their respective agents, licensees, or representatives, arising from, resulting from or connected with this Agreement to the extent caused by the negligent or intentional acts, errors, or omissions of the City, except for that portion of the claims caused by the Owner's sole negligent or intentional acts, errors, or omissions. 5.3 Survival The provisions of this Section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to such expiration or termination. 6. INSURANCE The City agrees to carry as a minimum general liability insurance in the amount of at least $1,000,000 single limit and $2,000,000 aggregate, which includes property liability. City shall provide certificates of insurance, concurrent with the execution of this Agreement, evidencing such coverage and, at Owner's request, furnish copies of all insurance policies and with evidence of payment of premiums or fees of such policies. The provisions of this Section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to such expiration or termination. Alternatively, the City may provide evidence of self insurance which shall constitute compliance with this section. 7. CONFIDENTIALITY All information regarding the City obtained by Owner in performance of this Agreement shall be considered confidential. Breach of confidentiality by the Owner will be grounds for immediate termination. If the City notifies the Owner of a public disclosure request, and the Owner believes records are exempt from disclosure, it is the Owner's responsibility to make determination and pursue a lawsuit under RCW 42.56.540 to enjoin disclosure. The Owner must obtain the injunction and serve it on the City before the close of business on the tenth business day after the City sent notification to the Owner. It is the Owner's discretionary decision whether to file the lawsuit. If the Owner does not timely obtain and serve an injunction, the Owner is deemed to have authorized releasing the record. If the City has notified the Owner of a public disclosure request, and the Owner has not obtained an injunction and served the City with that injunction by the close of business on the tenth business day after the City sent notice, the City will then disclose the record unless it makes an independent determination that the record is exempt from disclosure. Notwithstanding the above, the Owner must not take any action that would affect (a) the City's ability to use goods and services provided under this Agreement or (b) the Owner obligations under this Agreement. The Owner will fully cooperate with the City in identifying and assembling records in case of any public disclosure request. 8. INDEPENDENT CONTRACTOR. The Parties intend that the City shall be an independent Contractor and that the City has the ability to control and direct the performance and details of its work, the Owner being interested only in the results obtained under this Agreement. The Owner shall be neither liable nor obligated to pay City sick leave, vacation pay or any other benefit of employment, nor to pay any social security or other tax which may arise as an incident of employment. 9. GENERAL PROVISIONS 9.1 Interpretation and Modification This Agreement, together with any attached Exhibits, contains all of the agreements of the Parties with respect to any matter covered or mentioned in this Agreement and no prior statements or agreements, whether oral or written, shall be effective for any purpose. Should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. The respective captions of the Sections of this Agreement are inserted for convenience of reference only and shall not be deemed to modify or otherwise affect any of the provisions of this Agreement. Any provision of this Agreement that is declared invalid, inoperative, null and void, or illegal shall in no way affect or invalidate any other provision hereof and such other provisions shall remain in full force and effect. No provision of this Agreement, including this provision, may be amended, waived, or modified except by written agreement signed by duly authorized representatives of the Parties. 9.2 Assignment and Beneficiaries Neither the Owner nor the City shall have the right to transfer or assign, in whole or in part, any or all of its obligations and rights hereunder without the prior written consent of the other Party. If the non - assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. Subject to the foregoing, the rights and obligations of the Parties shall inure to the benefit of and be binding upon their respective successors in interest, heirs and SERVICES AGREEMENT -2- * CITY OF CITY HALL 33325 8th Avenue South • At Fe d e ra I Way Box 9718 Federal Way, WA 98063 -9718 18 (253) 835 -7000 www atyoffederalway com assigns. This Agreement is made and entered into for the sole protection and benefit of the Parties hereto. No other person or entity shall have any right of action or interest in this Agreement based on any provision set forth herein. 9.3 Enforcement Time is of the essence of this Agreement and each and all of its provisions in which performance is a factor. Any notices required to be given by the Parties shall be delivered at the addresses set forth at the beginning of this Agreement. Any notices may be delivered personally to the addressee of the notice or may be deposited in the United States mail, postage prepaid, to the address set forth above. Any notice so posted in the United States mail shall be deemed received three (3) days after the date of mailing. Any remedies provided for under the terms of this Agreement are not intended to be exclusive, but shall be cumulative with all other remedies available at law, in equity or by statute. The failure of a Party to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. Failure or delay of a Party to declare any breach or default immediately upon occurrence shall not waive such breach or default. Failure of a Party to declare one breach or default does not act as a waiver of the City's right to declare another breach or default. This Agreement shall be made in, governed by, and interpreted in accordance with the laws of the State of Washington. If the Parties are unable to settle any dispute, difference or claim arising from this Agreement, the exclusive means of resolving that dispute, difference, or claim, shall be by filing suit under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative process. If either Party brings any claim or lawsuit arising from this Agreement, each Party shall pay all its legal costs and attorney's fees and expenses incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the Parties' rights to indemnification under Section 5 of this Agreement. 9.4 Execution Each individual executing this Agreement on behalf of the City and Owner represents and warrants that such individuals are duly authorized to execute and deliver this Agreement on behalf of the Owner or the City. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and with the same effect as if all Parties hereto had signed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it shall only be necessary to produce one such counterpart. The signature and acknowledgment pages from such counterparts may be assembled together to form a single instrument comprised of all pages of this Agreement and a complete set of all signature and acknowledgment pages. The date upon which the last of all of the Parties have executed a counterpart of this Agreement shall be the "date of mutual execution" hereof. [Signature page follows] SERVICES AGREEMENT -3 - CITY OF CITY HALL ,�..., 33325 8th Avenue South • Box 9718 Federal Way Federal Way, WA 98063 -9718 18 (253) 835 -7000 www cityoffederalway com IN WITNESS, the Parties execute this Agreement below, effective the last date written below. CITY OF FEDERAL WAY ATTEST: B v: Skip Priest, Mayor City Clerk, Carol McNeilly, CMC APPROVED AS TO FORM: DATE: City Attorney, Patricia A Richardson STEADFAST COMMONS II, LLC By: Printed Name: Title: DATE: STATE OF WASHINGTON ) ss. COUNTY OF ) On this day personally appeared before me , to me known to be the of that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he /she was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN my hand and official seal this day of Notary's signature Notary's printed name 2012. _ Notary Public in and for the State of Washington. My commission expires SERVICES AGREEMENT -4- ` CITY OF CITY HALL 33325 8th Avenue South • Federal Way Box 9718 Federal Way, WA 98063 -9718 18 (253) 835 -7000 vvww crryoffederalway com EXHIBIT "A" SERVICES 1. The City will provide to the Property three (3) full time, experienced police officers ( "Contract Officers ") to provide security (in addition to other policy duties) for the Property, its businesses, tenants, and customers. The Contract Officers will work in conjunction with private security or other police agency representatives employed by the Owner at the Property or any of the Property's stores or tenants. Contract officers will combine foot patrol and vehicle patrol of the Property, including its parking lot and perimeter, with office, booth, or kiosk fixed positions to provide security, visibility, and police services. Contract Officers will lose no benefits, assignment, training, or promotional opportunities due to the Agreement. Contract Officers will be assigned in one (1) year increments, but may be rotated to address City needs or Owner interests. 2. The Property will be considered by the City as a mini -beat within the general geographical dispersal structure of the City, placing it as a section within a regular beat. The regular beat officer, in which the Property mini -beat exists, will provide presences and response capabilities consistent with general beat management strategies. The Property's coverage by the regular beat officer will not be reduced by the presence of the Contract Officers or by the use of other police agency representatives or private security staff or agency representatives in the Property or in individual stores. All supplemental police services will remain unaffected by the coverage provided for in this Agreement. 3. During assigned periods, the Contract Officers will respond to police or public safety incidents. If the matter can be resolved by the Contract Officers expediently, no general assignment or specialized assignment officers will need to respond. If needed, as determined by the City, other officers will be dispatched as in the resolution of any similar matter through the City. If the incident requires extended investigation or follow -up investigation away from the Property, or prisoner transportation general assignment officers will relieve the Contractor Officers to allow them to resume the Contract Officer duties as soon as practical. 4. The City will retain control over the Contract Officers and the Contract Officers will work under the general and direct supervision of the Federal Way Police Department and the City. The Contract Officers will work in a full duty status while on duty as in any Police Department duty assignment, and will adhere to departmental policies and procedures. Contract Officers will be in uniform during duty hours and will be provided with regularly used police equipment including vehicles and radios. The City may at its option also provide bicycles, computers, or other equipment. 5. The Owner may provide office space, a public access kiosk, or other facilities. Property Management may coordinate the security efforts of the Contract Officers on a day -to -day basis, consistent with City policy, to assure continuity, coverage, and coordination of efforts; provided that in the event of a conflict between any direction from the Owner or its agents and the City, the City direction shall control. 6. Contract Officer absences due to illness, time off, or training will be replaced by general assignment police officers, to maintain a continuity of coverage, when the absence will result in no Contract Officer being on duty at the Commons Mall for that day. The number of shifts shall be set in Exhibit B Compensation, and may be reduced based on the level of compensation actually provided to the City. Specific hours of coverage will be established by the City in conjunction with the Property management. SERVICES AGREEMENT -5- CITY OF CITY HALL '�.... 8th Avenue South • Fed Way Box 9718 Federal Way, WA 98063 -9718 18 (253) 835 -7000 www atyoffederalway com EXHIBIT "B" COMPENSATION In 2012 the City will provide the Contract Officers for a total of eleven (11) ten -hour shifts per week. The actual days of the week and hours will be agreed upon by the Owner and the City based on the needs of both parties. Below is a sample schedule: Officer A: Sunday through Wednesday, 10:00 am to 8:00 pm Officer B: Friday through Monday, 11:00 am to 9:00 pm Officer C: Thursday through Saturday, 12:30 pm to 10:30 pm This schedule is subject to change based on the needs of the Owner and the City. The City reserves the right to adjust the schedule for the purposes of training, vacation, and other types of leave providing that the impact to the Owner is inconsequential. The 2012 rate (50% of the cost to the City) for this coverage is a total of One Hundred and Forty Eight Thousand, Two Hundred and Thirty Two and 70/100 Dollars ($148,232.70) per year or Twelve Thousand, Three Hundred and Fifty Two and 73/100 Dollars ($12,352.73) per month. SERVICES AGREEMENT -6- COUNCIL MEETING DATE: November 15, 2011 CITY COUNCIL , AGENDA BILL SUBJECT: CINGULAR WIRELESS SITE LEASE RENEWAL — BPA TRAIL /AQUATIC CENTER POLICY QUESTION: SHOULD THE CITY COUNCIL APPROVE THE RENEWAL OF THE WIRELESS SITE LEASE AND AUTHORIZE THE MAYOR TO EXECUTE THE AMENDMENT? COMMITTEE PRHS &PS MEETING DATE l 1 /$ /11 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: PATRICIA RICHARDSON DEPT: Law Cingular Wireless entered into a Lease Agreement with the City on August 6, 2001 for installation and operation of certain equipment on City owned land located on the BPA Trial for use in connection with its wireless telephone communications service. The Lease was amended in 2007 for an additional 5 year term. The amendment will expire on November 7, 2011 and Cingular has requested to renew the lease for an additional five -year term pursuant to the terms of the lease. The current rental rate is $2,701.44 per month with a 4% increase each year. Options Considered: 1. Recommend approval of the lease renewal and authorize the Mayor to execute the amendment. 2. Reiect the lease renewal. CITY OF FEDERAL WAY ITEM #: - P STAFF RECOMMENDATION: Recommend approval of the lease renewal and authorize the Mayor to execute the amendment. _ MAYOR APPROVAL: A�— If— DIRECTOR APPROVAL: Co ttee Council Committee Council COMMITTEE RECOMMENDATION I move to forward the proposed amendment to the Cingular Wireless Site lease to the November 15, 2011 consent agenda for approval. Committee hair C Committee OPOSED COUNCIL MOTION "I move approval of the Second Amendment to the Cingular Wireless Site Lease / located on the BPA Trail, beginning November 8, 2011 and terminating on Novem e�6, and authorize the Mayor to sign said amendment. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: • ❑ APPROVED COUNCIL BELL # ❑ DENIED 1 reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED— 02/06/2006 RESOLUTION # SECOND AMENDMENT TO LEASE AGREEMENT FOR NEW CINGULAR WIRELESS PCS, LLC (AG # 01 -121) This Second Amendment ( "Amendment ") is dated effective this 8 t ' day of November, 2011, and is entered into by and between the City of Federal Way, a Washington municipal corporation ( "City "), and New Cingular Wireless PCS LLC, a Delaware limited liability company, d/b /a AT &T Mobility ( "Tenant "). A. The City and Tenant entered into a Lease Agreement dated August 6, 2001, as amended by First Amendment dated January 31, 2007, whereby the City agreed to lease to Tenant a portion of the space on and air -space above the City Property, located on the BPA Trail ( "Lease "). B. The Lease provided that Tenant may renew the Lease for three (3) additional five (5) year terms under Section 4. C. Under Section 27.b. of the Lease, any modification of or amendment to the Lease must be in writing and executed by both parties. D. The City and the Tenant agree and desire to amend the Lease to renew the term of the Lease for an additional 5 years as stipulated in Section 1, Term, below. NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged the parties agree to the following terms and conditions: Term Pursuant to Section 4 of the Lease Agreement, the Lease shall be renewed for an additional five (5) year term commencing on November 8, 2011, and expiring November 8, 2016, unless renewed pursuant to the terms of the Lease Agreement. 2. Full Force and Effect All other terms and conditions of the Agreement not modified by this Amendment shall remain in full force and effect. - 1 - DATED the effective date set forth above. CITY OF FEDERAL WAY `By: Skip Priest, Mayor PO Box 9718 Federal Way, WA 98063 -9718 ATTEST: APPROVED AS TO FORM: Carol McNeilly; CMC, City Clerk' Patricia A. Richardson, City Attorney - 2 - TENANT: NEW CINGULAR WIRELESS PCS, LLC By: It's Manager, AT &T Mobility Corporation Roy J. Willy Title: Sr. Project Manager 16221 NE 72 Way, RTC -3 Redmond, WA 98052 STATE OF OREGON ) ) ss. COUNTY OF DESCHUTES ) On this day personally appeared before me Roy J. Willy, to me known to be the Sr. Project Manager of AT &T Mobility Corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN my hand and official seal this day of , 2011. Patricia J. Hunter (typed/printed name of notary) Notary Public in and for the State of Oregon. My commission expires - 3 - COUNCIL MEETING DATE: November I 5, 2011 CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL ITEM #:�� SUBJECT: 2011/IZ MID-BIENNIUM BUDGET ADJUSTMENT, PUBLIC HEARING FOLICY QUESTION: N/A COMMITTEE: N/A CATEGORY: ❑ Consent ❑ City Council Business ❑ Ordinance ❑ Resolution MEETING DATE N/A � Public Hearing ❑ Other STAFF REPORT BY: Tho Kraus, Finance Director DEPT: Finance A,TTACHME1vTS: Budget Calendar SUMMARYBACKGROUriD As required by state law, cities adopting biennial budgets must review and make necessary adjustments to their adopted budget before the end of the first year of the biennium. Staff has presented ta Council the recommended adjustments and Couneil has commenced the budget deliberation process and is accepting comments from the public at this meeting. The calendar for budget deliberation has been published and is attached herein. Options Considered: N/A MAYOR'S RECOMMENDATION N/A MAYOR APPROVAL: �J � Committee COMMITTEE RECOMMENDATION N/A DIRECTOR APPROVAL: N �� _� Committee Council PROPOSED COUNCIL MOTION N/A (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) GOUNCIL AC'TION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 reading � TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED— 08/12/2010 RESOLUTION # CITY OF FEDERAL WAY CITY COUNCIL 2012/2012 MID-BIENNIAL CITY BUDGET ADJUSTMENTS MEETINGS The following meetings have been seheduled to consider the City of Federal Way's 2011/2012 Mid- Bienniai Budget Adjustment: NOVEMBER IS, ZOI I- REGULAR MEETING - 7:00 PM • PusL�c H�A�uNC (required by RCW 35A.34) 2011 /2012 Biennial Budget/Property Tax Rate NOVEMBER 29 & 30, 2011 - SPECIAL MEETINGS - 6 :00 pM (November 30 onlv if needed) • Pubiic Hearing Continued � Council Study Session on Mid-Biennial Budget Adjusttnent DECEMBER 6, ZOI I- REGULAR IVIEETING - 7:OQ PM • PuB1.�c HEA�uNG CoNT�NUEn — 2011/2012 Biennial Budget Adjustment • Introduction and Enactment Ordinance — 2011 /2012 Mid-Biennial Budget Adjustment • Introduction and Enactment Ordinance — 2012 Property Tax Rate • Resolution/Fee Schedule 2012 Amendment All meetings will be held at City Hall, 33325 — 8'" Avenue South, Federal Way, Washington. CITIZEN COMMENTS WILL BE ACCEPTED AT ALL BUDGET MEETiNGS. COUNCIL MEETING DATE: November 15, 2011 ITEM #:� CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL S UBJECT: 21st Avenue SW at SW 336th Street Intersection Improvements POLICY QUESTION Should the City Council approve the selection of the preferred alternative for the 21' Avenue SW at SW 336 Street Intersection Improvement Project? COMMITTEE: None MEETING DATE: November 15, 2011 CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other STAFF REPORT BY_ Rick Perez, P. E. City Traffic Engineer ........ Public Works ........................ . ......... _ ........ ____......__. ....... _..........._ ...................... ............................... Attachments: Memorandum dated November 15, 2011. Options Considered: ....................................._..__._........................................_..........._.........._._...........__..._........_................................................................._........_......__......._........__._._...... ..........----- ._.........._ - -- — .._..._......._........ _ ... _ 1. Authorize staff to proceed with the design of the 21st Avenue SW at SW 336th Street. Intersection Project with traditional intersection widening as the preferred alternative. 2. Authorize staff to proceed with the design of the 21st Avenue SW at SW 336th Street. Intersection Project with a roundabout as the preferred alternative. 3. Authorize staff to proceed with the design of the 21st Avenue SW at SW 336th Street. Intersection Project with the median U -turn as the preferred alternative. 4. Authorize staff to proceed with the design of the 21st Avenue SW at SW 336th Street. Intersection Project with the hybrid median U -turn as the preferred alternative. MAYOR'S RECOMMENDATION: Mavor recommends ODtion 1. MAYOR APPROVAL: Nq DIRECTOR APPROVAL: C� Committee Co cil Committee Council COMMITTEE RECOMMENDATION: Lin Kochmar, C hair Jim Ferrell, Member Jack Dovey, Member PROPOSED COUNCIL MOTION "I move to authorize staff to proceed with the design of the 21st Ave. SW at SW 336th Street Intersection Project with traditional intersection widening as the preferred alternative. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # CITY OF FEDERAL WAY MEMORANDUM DATE: November 15, 2011 TO City Council VIA: Skip Priest, Mayor • w� FROM Cary M. Roe, P.E., Director of Parks, Public Works and Emergency Management 0 ' Rick Perez, P.E., City Traffic Engineer Ir SUBJECT: 21 st Ave. SW at SW 336th St. Intersection — Alternatives Analysis BACKGROUND This memo is to inform the City Council of what is being presented to the public at the project Open House: The purpose of this project is to increase the capacity and safety of this intersection. This project would result in the modification of five intersections to implement a Median U -Turn Intersection Treatment on all four legs of the intersection of 21st Avenue SW and SW 336th Street / SW Campus Drive. The Median U -Turn Intersection Treatment was approved by City Council as an alternative intersection treatment in the discussion of transportation Level of Service standards at the March 2, 2010, City Council meeting. It was also considered by the City Council in'approving the - submittal of a grant application to the Transportation Improvement'Board,(TIB) fcr this project at the July 20, 2010 `City Council meeting. TIB awarded the City_ this grant, acceptance of which was approved by City Council at its January 18, 2011, meeting. Staff has hired a consultant and executed a Professional Services Agreement' for "design of 'the project. To ensure that the project could be implemented successfully, staff included in the consultant's scope of work a review and validation of staff's traffic analysis, including development of a simulation model using VISSIM, the most robust traffic simulation software available. This simulation revealed aley conceptual design issue that showed that the Median U -Turn Intersection Treatment would not function as originally assumed. This assumption was that both a U- turn/left -turn lane at the U -turn locations and a downstream right -turn lane at 21 Avenue SW / SW 336 Street could accommodate queued traffic without obstructing through traffic, thus additional roadway widening would not be required. The VISSIM simulation showed that both turn lanes needed the entire distance between intersections for queue storage, which `requires widening to add the right -turn lanes that are needed to accommodate the increased right -turn volumes. This results in a significant increase in cost for additional right -of -way and construction, particularly for the northeast corner of the intersection, and reduces the capacity and pedestrian safety benefits originally assumed for the Median U- Turn Intersection Treatment. In addition, the consultant's scope of work included data collection for driveway volumes within the project area in order to better evaluate the impacts of access restrictions that would be necessary to implement the median U -turn concept and identify potential mitigation measures. City Council 21st Ave. SW at SW 336th St. Intersection Improvements — Alternatives Analysis November 15, 2011 Page 2 of 3 One of the more significant impacts noted was the loss of left - turn -in access from northbound 21" Avenue SW into the shopping center on the southwest corner of the intersection of 21" Avenue SW and SW 336 Street (Safeway, Rite -Aid, Chase Bank, et al). Although access would be rerouted by using the U -turns either at 21 Avenue SW and SW :334 � or at - 19 th Avenue SW and SW Campus Drive, this could potentially give a significant market advantage to Fred' Meyer, and, adjacent tenants over the tenants of this _ shopping center. Given current economic conditions; staff is sensitive to the potential for.the project to be a contributing factor to any potential business failure. " , Therefore, staff and the consultant team revisited alternatives that could meet the City's LOS standard in the design year (2035) and improve safety. It should be noted that the traic�volume forecasts, are somewhat ,different than those prepared by staff in 2009.. This is due to the more il ' detailed analyss,conducted the consultant, as suggested by Council. The net result was that leurn lum voes are now" to be ;lower because of the potential to avoid the intersecti ft -t o n, but e'tbound through volumes are; forecast to be higher: Alternatives considered are described below: 1. - Traditional 1� tersgctipn . w i t dening (Exhibit 1): The .sed,tr >c volume farec�.asts reduced the scope o f this a temOve 14 order to,meet City LOS standard, w>lceiing would consist of providing dual left turnanes , eastbound and westbound and wesl righ}it turn lane. No changes would be necessary on 21 Avenue SVV. Queue lengtl�is for the eastbound westbound le k-turn lanes would result, in restricting all access points between 19 Avenue SW and 25'` Place SW to right- in/right -out. In order to mitigate these ,impacts to the shopping centers on ;the west side of 21 Avenue SW,_ a signalized t access is proposed near 25-, th Place SW. „ 2. Roundabout (Exhibit 2): The revised traffic volume forecasts results in this alternative being able to meet the City's LOS standard. " However, it would still need 'to be a three -lane roundabout, . and based on draft. ADA regulations, may need signalized approaches, which could 'negate the safety benefits of a roundabout. 3'. Median U =T urn (Exhibit ,#"� F ': ;� r r.; As desc : earlier, queuing I resul mpacts t iri ifie need for a t sout �bo'und right -turn lane that wo Id extend back to, SW '334 Street and westbound right =turn lane that would extend back to 19 Avenue SW Left-turn lanes at the U -turn, locations would alf extendback to the intersection of 21 Avenue SW ,and SW 336 Street, requiring limiting all access between the U -torn locations to right - in/right -out. To mitigate the impacts of the access restrictions, signalized frill- access points are proposed on SW 336' Street near 25 Place S an-'d'on-21st Avenue SW at S'UV 337 Place. it 4. t ' Hybrid (Exhibit 4); This alternative would 'construct the median U -turn treatments on SW 336 Street / SW Campus Drive, but would not modify 21 Avenue S W `at all. K:\ COUNCIL \AGDBILLS\2011\2011 -11 -15 21st Ave SW at SW 336th Street - Alternatives Analysis memo.doe City Council 21st Ave. SW at SW 336th St. Intersection Improvements — Alternatives Analysis November 15, 2011 Page 3 of 3 Various metrics of these alternatives are summarized in the following table. Alternative Traditional Roundabout Median U -Turn Hybrid Description Add 2 nd left -turn Construct 3 -lane Prohibit left turns Prohibit lanes eastbound roundabout and add eastbound and and westbound, westbound and westbound left and westbound southbound turns and add right -turn lane right -turn lanes westbound right - at 21 / 336 turn lane at 21 / construct 336 construct signalized U- signalized U- turns at turns at 19th / 19 /Campus, 21" Campus and near / 334 21' / 25 / 336 337 and near 25 / 336 LOS D C C C LOS / Delay 54.0 24.0 21.9 34.3 seconds /vehicle V/C 0.92 0.99 0.92 0.94 Maximum 71anes 51anes 61anes 6 lanes Pedestrian Crossing Width Access Impacts Moderate Moderate Extensive Moderate Right -of -Way Moderate Extensive Moderate Low - Moderate Impacts Public Education Minimal Moderate Extensive Extensive Collision Low - Moderate High High- Moderate Moderate Reduction Cost Estimate $5.2 million $9.8 million $9.6 million $6.3 million Given the potential change in scope, staff also consulted with TIB staff to assure that these alternatives would not imperil the grant funding. TIB staff confirmed that the grant award would not be jeopardized by pursuing any of these alternatives as long as safety were improved and congestion were reduced. RECOMMENDATION Based on the increased right -of -way, access impacts to adjacent businesses, and significant educational efforts necessary to assure success of the Median U -Turn Intersection Treatment, Public Works Department and the Mayor are recommending the traditional intersection widening concept as the preferred alternative. K:\ COUNCIL \AGDBILLS\2011\2011 -11 -15 21st Ave SW at SW 336th Street - Alternatives Analysis memo.doc CONCEPTUAL DRAFT DUAL LEFT OPTION NOVEMBER 07, 2011 LEGEND: CITY OF Federal Way �� SIDEWALK O L -- SIGNAL MODIFICATION/ EXISTING SIGNAL SW 334TH ST { #u ',, r 1 LANDSCAPING O I Yya:..;•:,.. �y v. DRIVEWAY „ # ! }• LL NEW TRAFFIC SIGNAL"` TRAFFIC CURB SOUTH KING _FIRE �- too RIGHT OF WAY 0 4Wf ` i1 Mfi._ ... �" x PUERTO VALLAT 12 ACK IN x G STATIO ws P e THE BOX "F PHIL'S SOUTH P A MURPHY'S ' 05 KEY BANK StDE'' CYCLERY TAKE 'N BAKE � pa 11.5 1 ' BANib OF AMERICA 5.5. 12111111 „ 07 r Q' X RNEWAY CLOSURE m II I In III _ -- - a. II E I I I SW 336TH ST a _ _ — -- - O SW 336TH S I ' IE`” vT� �� 1111121It, ' e � e ``s JWL CIRgUEE TOR s c is �ZZA JDFAI . ♦, CHASE W s TACO BELL [ zt = s O G 4 f THE UPS STORE — - w � m w .s .� k' ,,. e . w USPS i r7 . Y a J R i , t., E i• 4 y, RESCI i � I �t T a< 0 Y m ♦ 66r Ak %BOUT OF 9 -30 -2011 r` k� MMLZI WE IM f ¥ �t ` « f �� CONCEPTUAL DRAFT LOON OPTION NOVEMBER 07, 2011 LEGEND: CITY OF 'k Federal Way SIDEWALK O SIGNAL MODIFICATION/ EXISTING SIGNAL LANDSCAPING DRIVEWAY NEW TRAFFIC SIGNAL 1 TRAFFIC CURB RIGHT OF WAY o SLALE M FEEL CH2MHILL. 0 SW 334TH ST s do or � PART 1 P�EX o i f . _ e 111141 r � N i n I 10 r !•A 1 < 1 v R ir® ,! ?� . I Ir a SOUTH KING N RESCUE STAjW�I- a�l ZONE +� ~s. 1 � r PUER VALLAT STATION ; J 'S SOUTH P A MURPHY'S -°o O5 KEY BANK THE BOX TAE 'N' BAKE *' M� 1 BA OF AMERICA 5.5� Z I tt.5 07 ' 12111111 � a 8 8! v 4 RNEWAY CLOSURE Ilk tj • i� - - - — — - a I - - - -° _ (470 STORA STCRAGE) °+ _ - - - JV 4p r► — _ 3 -_— �— - (37 STORAGE) C ^ f a - Sj 336TH �' .�. � - 111 1121 1 t ' DAIRY QUEEN O F THER S ► Y as dr 03 - OF `, CHASE _ TACO BELL t 4 ' ( 3 . E r THE UPS STORE - r a .� � f M I r N T a f STRIP MALL y ' '* r 02 RITE AID AF a _ •'.: t 14 SAFEWAY * f 15 r .r 9 or w & F O SW 336TH ST ♦ �. , Q USPS .r SUBJECT: THE CITY OF FEDERAL WAY 2012 -2016 CONSOLIDATED PLAN POLICY QUESTION: Should the City approve the City of Federal Way 2012 -2106 Consolidated Plan COMMITTEE: NA MEETING DATE: CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Bryant Enee DEPT: Mayor's Office Background: To receive its annual CDBG entitlement grant, the City of Federal Way is required to prepare both a Five -Year Consolidated and an Annual Action Plan. These plans represent a strategy and goals for use of the HUD grants. The plans must meet federal requirements under the Housing and Community Development Act of 1974. All projected use of funds must be determined eligible in accordance with federal regulations. The general purpose of the HUD grants for which these plans were developed is to provide decent housing, establish and maintain a suitable living environment, and expand economic opportunities for all residents, particularly low and moderate income persons. The 2012 -2016 Consolidated Plan is the City's roadmap for use of these funds. The Consolidated Plan, along with the Annual Action Plan, will be submitted to HUD as the City of Federal Way's application for federal funds. Consolidated Plan Summary The purpose of the City of Federal Way's Human Services Department is to support economic development, community revitalization, and human services on behalf of residents and neighborhoods most in need, through effective projects which serve the largest number of people possible. This purpose is proposed to be achieved through the following goals and strategies established in the Consolidated Plan: Goal 1: Expand Economic Opportunities Strategy 1 A: Enrich/diversify City Center with a mix of residential and commercial uses supporting pedestrian, bicycle, and public transit vibrant public spaces, and cultural and civic activities that enliven the downtown and strengthen its economic foundation by retaining local business, attracting new business investment, and creating jobs. Strategy 113: Encourage the creation and growth of businesses. Strategy 1C: Increase opportunities for employment in jobs providing livable incomes. Strategy 1 D: Promote an environment that is attractive to both establishing new businesses and expanding existing business to create jobs and strengthen the economic base of the community. Goal 2: Provide Decent Affordable Housing Strategy 2A: Support homeownership focusing on programs to assist homeowners to retain and maintain their homes, and offer new homeowner opportunities. Goal 3: Establish Suitable Living Environments Strategy 3A: Provide an array of services to households to help them on the path toward self - sufficiency. Strategy 3B: Provide a safety net of services to stabilize households who are in crisis or at risk. Amendments to the Consolidated Plan The City will amend this Consolidated Plan whenever a substantial change is anticipated. A "substantial amendment" is defined as any proposed change in the use of CDBG funds that exceeds 20% of the total amount annually provided by HUD for each program. In addition, the following changes will also be considered "substantial amendments" to the program requiring an opportunity for public comment: • Change in the beneficiaries of the activities • Change in the general location of activities • Change in the purpose or scope of an activity or the addition or deletion of an activity All amendments to the Consolidated Plan will be preceded by appropriate public notice and public comment periods, as required by federal regulations regarding change in use of funds. Attachments: Exhibit A: City of Federal Way 2012 -2016 Consolidated Plan Options Considered: 1. Approve the City of Federal Way 2012 -2016 Consolidated Plan. 2. Not approve the City of Federal Way 2012 -2016 Consolidated Plan and provide staff alternate direction. MAYOR'S RECOMMENDATION Approve the City of Federal Way 2012 -2016 Consolidated Plan. MAYOR APPROVAL: " DIRECTOR APPROVAL: q Committee Coun il Committee V Council COMMITTEE RECOMMENDATION: NA Committee Member Committee Chair Committee Member PROPOSED COUNCIL MOTION: We move approval of the City of Federal Way 2012 -2016 Consolidated Plan. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 sT reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 08/12/2010 RESOLUTION # THE CITY OF FEDERAL WAY CONSOLIDATED PLAN 2012 -2016 DRAFT November 8, 2011 DRAFT 11/8/11 ACKNOWLEGMENTS The following are acknowledged for their contributions in the development of the Federal Way Consolidated Plan 2012 -2016: CITY COUNCIL Skip Priest, Mayor Dini Duclos, Deputy Mayor Jim Ferrell Linda Kochmar Michael Park Jeanne Burbidge Jack Dovey Roger Freeman HUMAN SERVICES COMMISSION Elizabeth Hughes, Chair Robyn Richins, Vice Chair Rick Agnew Julie Davis Jan Owen Waiyego Pearson Kathryn Scanlon Ronald Secreto Betty Taylor Russ Williams Bob Wroblewski CITY STAFF Bryant Enge, Administrative Services Director Brook Lindquist, Executive Assistant Denise Catalano, Human Services Technician CONSULTANTS John Epler, John Epler & Associates Linda Rinaldi, Rinaldi & Associates Page I i DRAFT 11/8/11 TABLE OF CONTENTS Page I ii Page EXECUTIVE SUMMARY 1 PUBLIC PARTICIPATION AND POLICIES 7 Managing the Process 7 Consultation 8 Institutional Structure 9 Coordination 11 ASSESSMENT OF NEEDS 16 Population and Households 16 Background 16 Population 17 Population Growth 17 Mobility 17 Age 18 Race /Ethnicity 20 Linguistic Diversity and Isolation 22 Households 23 Household Size 24 Group Quarters 25 Economy and Income 25 Employment 25 Federal Way Employers 25 Cost of Commuting 26 Unemployment 26 Educational Attainment 28 Income 29 Low and Moderate Income Areas 31 Poverty 31 Housing 37 Existing Housing 37 Recent Trends in Construction 37 Housing Age and Condition 38 Overcrowding 39 Lead -based Paint and Lead Hazards 39 Housing Occupancy and Tenure 41 Housing Costs 42 Recent Sales 43 Recent Rental Market 44 Housing Affordability 45 Renter Ho useholds with Problems 49 Page I ii DRAFT 11/8/11 Owner Households with Problems 51 Barriers to Affordable Housing 52 Impediments to Fair Housing 53 Housing Resources 53 King County Housing Authority 54 Homelessness and Special Needs 58 Homelessness 58 Causes of Homelessness 58 Homelessness in King County 58 Homelessness in Federal Way 59 Needs of People Who Are Homeless 60 Persons Discharged from Institutions 61 Continuum of Care and Strategic Planning 61 Persons with Special Needs 63 Frail Elderly 64 Persons with Disabilities 64 Persons with Mental Illness 67 Persons with Chemical Dependencies 68 Victims of Domestic Violence 69 Persons with HIV /AIDS 69 Resources for People with Special Needs 70 Community Economic Revitalization 71 Background 71 Federal Way Business Districts 72 Civic Center 72 Neighborhood Business Districts 72 Federal Way Neighborhoods 73 FIVE -YEAR STRATEGIC PLAN 74 National Objectives 74 Community Priorities 74 Overarching Goals 74 Five -Year Goals and Strategies 75 Anti - Poverty Plan 81 Lead -Based Paint Hazards Strategies 81 Promoting Fair Housing 82 Removing Barriers to Affordable Housing 82 APPENDICES 83 Appendix A: Glossary 83 Page I Hi DRAFT 11/8/11 LIST OF TABLES Table Title Page 1 Population 1990 -2010 17 2 Date of Move into Housing Units 17 3 Population by Age Ranges 2010 19 4 Median Age 2000 -2010 19 5 Federal Way Seniors by Gender 2010 20 6 Race /Ethnicity 2010 20 7 Language Spoken at Home 22 8 Types of Households 2010 23 9 Average Household Size 2010 24 10 Number of People in Household 2010 24 11 Unemployment by Race /Ethnicity 2010 28 12 Educational Attainment Population Age 25+ 28 13 Educational Attainment by Race /Ethnicity 28 14 Median Income 29 15 Range of Household Incomes 30 16 Population Living in Poverty 33 17 Poverty Thresholds 2010 33 18 Federal Way Self- Sufficiency Standards 34 19 Types of Units as a Percent of Total Units 37 20 Year Built as a Percent of Total Units 38 21 Potential Lead -Based Paint Hazards Federal Way 2000 41 22 Housing Units and Occupancy 2010 41 23 Tenure by Unit Type 42 24 Housing Values and Costs 42 25 Housing Costs, Income and Affordability King County 2010 46 26 2010 HUD Income Limits and Housing Affordable at 30% 47 27 Federal Way Low Income Households by Tenure 47 28 2010 Income and Rents Compared 48 29 Rental Affordability Mismatch 2000 49 30 Renter Households Cost- Burdened and with Housing Problems 51 31 Owner Households Cost - Burdened and with Housing Problems 51 32 Assisted Affordable Housing in Federal Way 54 33 Point -in -Time Summary Seattle /King County Continuum of Care 59 34 Housing Resources for Homeless Persons in Federal Way 60 35 Population with Disabilities 2000 65 36 Population Ages 21 -64 Employed by Disability Status 65 Page 11v DRAFT 11/8/11 LIST OF FIGURES Figure Title Page 1 Date of Move into Housing Unit by Tenure, Federal Way 18 2 Percent Minority Population 21 3 Language Spoken by Linguistically Isolated Households 23 4 Unemployment Rate 26 5 2010 Unemployment and Average Weekly Wage by Education 27 6 Median Household Income by Race /Ethnicity 30 7 Median Household Income by Age of Householder 31 8 Percent Low /Moderate Income Households 32 9 Median Sales Prices (Existing Homes) 2000 -2010 43 10 Average Rents 2000 -2011 45 11 Percent of HH with Rent 30%+ of Household Income 45 12 Percent of Owner HH with Costs 30% of Household Income 46 Page I v. DRAFT 11/8/11 PURPOSE OF THE CONSOLIDATED PLAN During the summer and fall of 2011, the City of Federal Way (City) conducted a community process to prepare a Consolidated Plan (Plan) to work aggressively toward meeting the primary human services, housing, economic development and community development needs of the community. The clear focus of the Plan is to provide expanded opportunities for low- and moderate - income households in employment and housing and to provide them with improved facilities and services. The 2012 -2016 Federal Way Consolidated Plan will guide the City's decisions on allocating Community Development Block Grant (CDBG) funds and the implementation of strategies to meet the goals during this five -year period. FEDERAL PROGRAM OBJECTIVES The Consolidated Plan establishes local priorities consistent with national objectives and goals of the US Department of Housing and Urban Development. National goals are: Expanded economic opportunities Decent housing • Suitable living environments Strategies in the Consolidated Plan will be implemented with CDBG funds provided by HUD. Based on its 2011 formulary allocation, the City estimates that approximately $650,000 in grant funds will be available annually, subject to annual federal appropriations. CONSULTATION AND CITIZEN PARTICIPATION Consultation and citizen participation are critical elements of the plan. Early in the planning process, the City created the Citizen Participation Plan for the City of Federal Way Consolidated Plan to guide the process, provide opportunities for citizen involvement throughout the development of the Plan, and provide input for the implementation and program evaluation phases in future years. During the process of developing the Plan, key organizations (both public and private) were consulted and local planning groups participated in providing input on needs and proposed strategies. Page 11 DRAFT 11/8/11 HOUSING, ECONOMIC AND COMMUNITY DEVELOPMENT NEEDS A first step in the planning process was to assess needs of the area. Consultants were contracted to research housing and human service needs. Research included review of documents, plans and data. Information was obtained from local jurisdictions, service providers, housing and banking industry representatives, agencies involved in developing and managing housing for lower income households, governmental agencies, and both public and private non - profit organizations. Planning documents were reviewed for consistency in goals and strategies. The following highlights needs identified in this process. Population and Growth "Mobile" describes communities in Puget Sound given the ease of transportation along the 1 -5 corridor and the opportunities for housing and employment in the region. Over the years, Federal Way has grown around transportation and residential or retail development that supported the needs of residents who largely commuted to neighboring industrial and urban areas for employment. Federal Way is home to 89,306 residents (2010 census) and 33,188 households. Some have occupied the same house for years, but not the majority. Almost two- thirds of households moved into their house in the last 10 years. Demographics On average, people who live in Federal Way are a little younger than in King County as a whole (a few years difference in median age) and families are a little larger. Since Federal Way offers affordable housing, compared to King County as a whole and certainly neighboring Seattle, finding younger families in the City is not surprising. Federal Way is home to a very diverse population. Almost half (48 %) of the population is Hispanic and /or a race other that white alone. Thirty percent of households speak a language other than English in the home and the Federal Way School District reports 112 languages spoken by students. Inability to speak English can be a barrier to households, especially those who might be isolated by need, age, disability, or other circumstance. Nine percent of households are "linguistically isolated." Income and Unemployment The median household income in Federal Way (2005 -2009 American Community Survey) was $56,980 —15% lower than King County as a whole. Median family income at Page 12 DRAFT 11/8/11 $67,120 was 22% lower. Twenty -nine percent of households had incomes less than $35,000 annually. Most (75 %) workers commute out of Federal Way to work. While housing costs are lower in Federal Way than many areas in King County and Puget Sound, studies have shown that the cost of commuting can easily offset the benefits of lower housing costs. In fact, in the Seattle area, households earning between $20,000 and $50,000 a year pay 60% or more of their income for housing and commuting combined. The official unemployment rate reached 9.3% in 2010 in the Seattle area, which includes Federal Way. Real unemployment is twice that, or more, if people who have given up are marginally employed or underemployed are included. People with lower education levels and younger people have higher rates of unemployment and grimmer prospects. Economic and Community Development Needs Community development, economic development and human needs are intertwined in Federal Way. Business needs the community infrastructure and a skilled workforce to grow. A working community is able to afford products and services offered in its stores. Business and citizens contribute to provide financial resources to support local government and agencies that provide public services. Unemployment is a major issue in the City and is tied to the health of the business and commercial districts. Jobs growth can come from both small business and major employers. The City Center has not reached its potential as a vibrant gateway to the community and a destination attraction. A new mix of residential and commercial uses, types and densities that emphasize pedestrian, bicycle and public transit to create a vibrant and healthy city center is needed. A prosperous and balanced city center will require housing, shopping, restaurants, and well- formed public spaces for cultural and civic activities that secure much needed visitor expenditure, retains local business, and attracts new business investment. In addition, there are several neighborhood business districts that are unattractive and show signs of deterioration. Retail and commercial businesses that could offer jobs for low- and moderate income persons need low interest loans to enhance and expand, and the infrastructure to attract clients. Some of Federal Way's neighborhoods lack basic improvements such as standard quality streets, sidewalks, lighting and drainage that would make their streets safer and more functional. New parks would offer city center and neighborhoods improved opportunities for recreation and serve as a community gathering areas. Page 13 DRAFT 11/8/11 Housing Supply and Affordability The 2010 census counted 35,444 housing units — 58% single family, 39% multifamily and 4% mobile homes. Almost all of the housing was constructed after 1959 (93 %), so most housing is in good condition. Rents and housing costs are more affordable in Federal Way, at least for people earning median income and higher. Housing prices, particularly purchase prices, have dropped sharply since 2007, although not as severely in King County as elsewhere in the nation. The recession has slowed housing construction and resulted in foreclosures. People who have lost homes and jobs are especially vulnerable. There is a backlog of foreclosed properties affecting real estate sales and prices. The economic uncertainty is felt by the whole community but most dramatically by lower income households who may be an event away from homelessness —job loss, loss of transportation, illness. Housing is "affordable" when the cost of housing and utilities is no more than 30% of household income. Many, and even most, lower income households pay substantially more than they can "afford" for housing. People who are Homeless or Have Special Needs The "one -night count" in January 2011 found 2,492 people homeless in King County and 257 people homeless in Federal Way, 124 of whom were unsheltered. This underestimates the actual number of homeless persons because of difficulties in counting and because many more people and families are homeless at times during the year than can be captured on a single night, even if the count was comprehensive. Emergency and transitional housing, along with services to intervene and prevent homelessness are inadequate. Systems of cooperating agencies and volunteers are unable to meet the overwhelming number of calls for assistance. Preventing homelessness is by far the most economical and preferred solution, but the need for prevention services and resources again outpaces the ability to respond. There are particularly vulnerable people in every community — the frail elderly, victims of domestic violence, people with disabilities, people with mental illness, and people with substance abuse problems —to name some. Where personal or family resources are limited or missing, people with special needs are at risk of homelessness. It is the goal of the City to enhance the independence and self- sufficiency of all residents. Page 14 DRAFT 11/8/11 FIVE -YEAR STRATEGIC PLAN Overarching Goals After careful consideration of the needs, the City has developed the following goals to serve as guides in the development of strategies to meet those needs: • Create opportunities for a diverse employee base to live and work in Federal Way by increasing the connectivity of affordable housing and transportation linkages with employment centers. • Expand programs and activities which enhance the opportunity for low- and moderate - income persons to become more self- sufficient and to increase income to "livable wage" levels. • Consider the potential for stimulating jobs and economic development in the programming of all housing, public services, neighborhood improvement and public facilities activities. • Seek to provide safety net services for those populations with significant barriers until they are able to reach the goal of self - sufficiency. Strategies to reach these goals are categorized under the three primary national goals for the CDBG Program. The strategies, summarized below, will be used annually to determine activities that will most effectively work toward meeting the anticipated outcomes fully described in the "Five Year Strategic Plan." Goal 1: Expand Economic Opportunities Strategy 1A: Enrich /diversify City Center with a mix of residential and commercial uses supporting pedestrian, bicycle, and public transit vibrant public spaces, and cultural and civic activities that enliven the downtown and strengthen its economic foundation by retaining local business, attracting new business investment, and creating jobs. Strategy 16: Encourage the creation and growth of businesses. Strategy 1C: Increase opportunities for employment in jobs providing livable incomes. Page 15 DRAFT 11/8/11 Strategy 1D: Promote an environment that is attractive to both establishing new businesses and expanding existing business to create jobs and strengthen the economic base of the community. Goal 2: Provide Decent Affordable Housing Strategy 2A: Support homeownership focusing on programs to assist homeowners to retain and maintain their homes, and offer new homeowner opportunities. Strategy 213: Expand affordable rental housing. Strategy 2C: Provide adequate housing for homeless and special needs populations. Goal 3: Establish Suitable Living Environments Strategy 3A: Provide an array of services to households to help them on the path toward self - sufficiency. Strategy 313: Provide a safety net of services to stabilize households who are in crisis or at risk. Strategy 3C: Improve accessibility and use of existing and new City facilities. Strategy 31): Construct public improvements to support community revitalization strategies. The goals and strategies identified in the Five -Year Strategic Plan will serve as a guide for projects and activities during the five years of this Consolidated Plan. These guidelines are specific enough to set priorities, but broad enough to allow flexibility in making decisions about individual projects. The Annual Action Plan, on the other hand, will identify specific projects to be implemented in the current year to achieve the overarching goals and will provide the necessary justification and detail. PAST PERFORMANCE The City has been able to meet the needs of many low- and moderate - income households through its past involvement as a member of the King County CDBG Consortium. Activities implemented under that arrangement have succeeded in 1) meeting the needs of homeowners through its housing repair programs; 2) providing much needed services to help households to regain stability; and, 3) providing facilities and improvements to improve the quality of life. The City looks forward to achieving even more as a direct grantee of HUD funds under this Consolidated Plan. Page 16 DRAFT 11/8/11 This section describes the community consultation and planning process followed in the development of the Federal Way Consolidated Plan. Also described is the role and relationship of public agencies and public policies to the activities of the Plan. MANAGING THE PROCESS Lead Agency The primary responsibility for managing the CDBG resources rests with the Human Services Department in the Mayor's Office. Planning Process The City encourages involvement by residents and organizations in planning and implementing CDBG activities. To formalize the public participation process, the City prepared the City of Federal Way Citizen Participation Plan. The Plan describes the consolidated planning and citizen participation process, outlines how citizens, agencies, governmental organizations, faith -based organizations, and other interested parties may become involved in the process. Involvement may include attending meetings and hearings in the process of assessing community needs, learning about program resources and eligible activities, reviewing and commenting on proposed activities and performance in implementing those activities. The public was invited to comment on the draft Citizen Participation Plan by an August 20, 2011 notice in the Federal Way Mirror. Following a one -month review period, the Citizen Participation Plan was adopted for immediate use in developing the 2012 -2016 Consolidated Plan. Copies of the Citizen Participation Plan are available at the Mayors Office in City Hall and a copy is also included in the Appendix. The planning process began with research on community needs and resources in the summer of 2011. The review included local planning documents (including the 2006- 2010 Housing and Human Services Consolidated Plan) and data from the 2000 and 2010 US Census, the 2005 -2009 American Community Survey and data available through the Washington State Office of Financial Management. In addition, three focus groups included community leaders as well as representatives of community groups and nonprofit services and housing providers. These focus groups provided key insight into Page 17 DRAFT 11/8/11 the needs of the community and potential strategies to meet those needs. Department staff was also consulted on needs and programs. Interviews of key individuals in the City and the county were also conducted to obtain detailed information on housing, community development and human service needs. An August 11, 2011 notice published in the Federal Way Mirror invited the public to attend and comment on the housing and community needs of the City and in particular the needs of low- and moderate - income residents. The hearing, held in City Hall, also provided information on potential resources (including program income from previous CDBG activities) and eligible uses of the funds. Time was provided for persons who wished to testify or provide comments to members of the Human Services Commission and staff. Five people provided comments during the hearing. The City has designated the Human Services Commission as its primary citizen advisory board on CDBG program activities and the City's Human Services activities. Consultants and City staff met at several steps in the process to present and obtain input from the Commission. The Commission also took responsibility for review and recommendations on the 2012 CDBG Community Economic Revitalization Fund applications. The Commission's advice throughout the process provided valuable contributions to the plan and proposed activities. On October 15, 2011 notice was published in the Federal Way Mirror advising the public of the availability of the draft Federal Way Five -Year Consolidated Plan and the 2012 Annual Action Plan. The notice also invited the public to comment on the plans during a 30 -day comment period. A total of INSERT comments were received. Information on comments and the response of the City can be found in the Appendix. On INSERT, 2011 the Federal Way City Council approved the Five -Year Consolidated Plan 2012 -2016 and Annual Plan 2012 for submission to HUD. CONSULTATION A key component in the development of the plan's needs and strategies statements was the contribution of several organizations during the planning/consultation process. In addition to staff at the City of Federal Way, the following organizations were consulted through interviews or participation in one of the focus groups: Page 18 DRAFT 11/8/11 • King County Housing Authority • WA Department of Health • Public Health Seattle & King County • Multi- Service Center • Federal Way School District • FUSION (Friends United to Shelter the Indigent, Oppressed and Needy) • DAWN (Domestic Abuse Women's Network) • Reach out • St. Vincent DePaul Society • Communities in Schools • Valley Cities Counseling & Consultation • Federal Way Senior Center • Orion • Highline Community College • Federal Way Chamber of Commerce • City Vision • Private realtor • King County Continuum of Care Copies of the draft Consolidated Plan were distributed to the following entities for their review and comment: • WA Department of Commerce • King County • Pierce County • City of Kent • City of Des Moines • City of Burien • WA Health and Social Services • City of Enumclaw • City of SeaTac • City of Renton • City of Tukwila • Housing Development Consortium • City of Auburn • United Way of King County • King County Housing Authority • SKC Council of Human Services • City of Covington • City of Milton INSTITUTIONAL STRUCTURE The institutional structure within which the City of Federal Way operates to plan and deliver-housing, human services and community development programs and activities involves a variety of organizations. Public, private and nonprofit agencies and organizations provide funding and staff to implement activities in Federal Way. The following agencies currently participate in that process and will continue to participate in planning and delivering assistance in the implementation of the 2012 -2016 Consolidated Plan. The City of Federal Way The Human Services Department is responsible for the administration of CDBG funds and the City's Human Services General Fund. The Mayor and the City Council are responsible for policy- making and final decisions on fund allocation. Page 19 DRAFT 11/8/11 City of Federal Way Human Services Commission Human Services Commissioners are appointed by the City Council to advise the City on policy and make funding recommendations for use of all CDBG funds and the City's General Fund allocation for human services. King County Consortia The City participated in the King County CDBG Consortium up to and including 2011. The Consortium served as the HUD grantee and passed through to the City a portion of the allocation based on the HUD formula. Decisions on the use of these funds were largely the City's but also were restricted by Consortium rules. In 2011 the City elected to be become a direct recipient of CDBG funds distributed by HUD, rather than continue as a CDBG King County Consortium member. The City still participates as a member of the King County HOME Consortium. The City also is involved in coordinating homeless programs and activities through participation in Seattle /King County Homeless Continuum of Care planning activities and the Committee to End Homelessness. Finally, the City participates with King County and other municipalities in the countywide Regional Affordable Housing Program (RAHP) for the construction, acquisition and rehabilitation of affordable housing. The King County Housing Authority (KCHA) KCHA owns and operates a number of housing projects within the City and administers the Section 8 Housing Choice Voucher program which provides assistance to Federal Way households. Since the King County Council appoints the Housing Authority Commissioners and KCHA is chartered to work throughout King County, the City has no formal or contractual relationship with the agency. However, City staff maintains a working relationship with KCHA and the City has provided CDBG funding for improvements to KCHA -owned properties while in the Consortium. Public Health Seattle and King County Public Health Seattle and King County provides core prevention and intervention health services; emergency preparedness services; clinical health services such as maternity support, nutrition, and family planning for families and people in need; and, Emergency Medical Services /Medic One for rapid response to urgent medical needs. Services address the needs of low- income families, children, elderly, homeless, and special needs populations, including people with HIV /AIDS. The City consults with the Health Page 110 DRAFT 11/8/11 Department, as required, on incidences of lead, particularly elevated blood -lead levels in children. State of Washington Programs State housing and human service program funds are often combined with funding from the City for projects and programs that implement the local human service, housing, and community development strategies. The State Housing Trust Fund, administered by the Department of Commerce, and the Washington State Housing Finance Commission fund projects for low - income renters and first -time homebuyers. State RAHP and "2163" are made available to the City through the County. Programs of the Department of Social and Health Services assist vulnerable populations with a variety of social service and housing needs. Nonprofit Human Service Organizations A wide variety of nonprofit services agencies operate within the City to provide critical services to the City's most needy populations. The community's churches are among the organizations providing basic services such as shelter, clothing and food to persons who are lower income or homeless. The human service community continues to play a strong role in the City's planning for delivery of human services to its residents. Nonprofit and For -profit Developers The City relies on a variety of agencies to provide housing for low- and moderate - income people in Federal Way. The role of nonprofit agencies in developing emergency, transitional, permanent, and special needs housing is particularly critical to implementing City strategies to address the shelter needs of the homeless. Nonprofit housing development agencies also play an important role in providing senior housing, affordable housing for lower income renters, and opportunities for lower- income first - time homebuyers. Private developers use programs such as the Low - Income Housing Tax Credits and other programs offered through the Washington State Housing Finance Agency. COORDINATION The City is involved in a number of regional and sub - regional forums designed specifically to develop coordinated strategies and funding approaches to address the needs of low- and moderate - income people on a regional basis. These include: • South King County Council of Human Services Page 111 DRAFT 11/8/11 • South King County Human Service Planners • King County Joint Recommendations Committee • Regional Affordable Housing Program • King County HOME Consortium • King County Regional Policy Committee • United Way of King County • Committee to End Homeless in King County The City participates with other South King County cities on mutual activities and planning. The City of Federal Way will be able to enhance the coordination of housing and economic /community development within its jurisdiction through the direct control of CDBG Program resources. Through the CDBG Program, the City will increase involvement of public and private entities (including those providing health, mental health, HIV /AIDS assistance, as well as services to persons in crisis and at -risk) in the planning and implementation of specific project activities in meeting the needs of the community's low- and moderate - income households. The Federal Way Department of Human Services and the Human Services Commission will play a pivotal role in this process. They will continue to coordinate with the surrounding jurisdictions and the County Continuum of Care and Committee to End Homelessness on activities to reduce homelessness in the region. Finally, the City will aggressively pursue the efforts with the business community to undertake a coordinated effort to increase employment opportunities for residents through the Community Economic Revitalization Strategy and the new Economic Development Loan Program. Capacity of the Institutional Structure The existing structure has capacity to plan and deliver human services and assistance to lower income residents at a higher level. The largest single deterrent to reaching that capacity is the lack of financial resources. The recent economic decline and loss of local and state government revenues have severely hampered the ability of the system to maintain its level of assistance. In the past, the private sector has been a major contributor to housing and human services. At the same time, we are witnessing a major reduction in the amount of contributions from corporate and philanthropic entities along with private individuals for housing and human services. The amount of funds allocated by the federal government to these sectors, including CDBG funds, has recently fallen as well. Nevertheless, the strength of the existing institutional system and available funding sources provides a solid enough base from which to plan and deliver programs benefiting low- and moderate - income residents. Page 112 DRAFT 11/8/11 The strength of this structure is the willingness and ability of the organizations to cooperate in planning for the delivery of quality services. A willingness to work through the tough issues of high hopes with limited funding resources has been a major factor in the cities of South King County being able to move forward. In Federal Way, major strengths have been the willingness of the Mayor and City Council to support human services with the General Fund and the energy and capacity of the Human Services Commission. Resources Estimated Federal resources over the next five years include the following (annual amount in $1,000s): CDBG Annual Entitlement $652 $652 $652 1 $652 $652 $3,260 Reprogrammed CDBG Funds $323 $0 1 $0 $0 $0 $323 Estimated CDBG Program Income $0 $0 $0 $0 $0 $0 Total CDBG Resources $975 $652 $652 $652 $652 $3,583 OTHER POTENTIAL RESOURCES Section 108 Loan (under consideration) $0 $0 $0 $0 $0 $0 NSP3 Grant $797 $638 $458 $0 $0 $1,893 Estimated NSP Mortgage Payments $0 $0 $25 $50 $50 $125 City Human Services General Fund $516 $516 $516 $516 $516 $2,580 HOME* $0 $0 $0 $0 $0 $0 Emergency Solutions Grant* $0 $0 $0 $0 $0 $0 Total Resources 1 $2,288 1 $1,806 $1,651 $1,218 $1,218 $8,181 Funding irr$1,000s. *King County resources; amounts for projects in Federal Way unknown. The City does not currently anticipate program income from its business loan program or the homeowner rehabilitation program but there is a potential for income during the five years. Future Annual Action Plans will reassess the potential for any program income during that year and include those amounts in estimated resources of each Plan. The City is considering the use of Section 108 Loan Funds as a tool for stimulating economic development and job creation. At such time as Section 108 funds may be sought, the appropriate Annual Plan will include an estimate of those resources. Past Performance The City has not had recent experience as a direct CDBG Entitlement grantee, operating largely through a pass- through entity, King County, for the management of CDBG activities. In that status the City has significant experience in planning and delivering Page 113 DRAFT 11/8/11 CDBG activities. In 2011, the following CDBG public services activities were managed by the City resulting in 370 clients receiving services: • Federal Way Emergency Services 2011($17,755) Clients served: 333 • Federal Way Special Needs Services 2011($31,755) Clients served: 16 • Federal Way Low- Income Families With Children Services 2011($15,675) Clients served: 21 Presently and in past years Federal Way has consistently spent one hundred percent of its public service funds (provided through the King County Consortium) in a timely fashion during the annual contracting period. In addition to projects listed above, the City of Federal Way has used CDBG funds to complete repairs on 18 houses in the third quarter of 2011 (for a total of $129,831) and will completed an additional ten housing rehabilitations (for an additional $194,300). The City has also used CDBG funds in the past to promote small business development in Federal Way. Project Monitoring In anticipation of their broadened responsibilities as an Entitlement community, Federal Way CDBG staff has attended two HUD - sponsored training workshops, gaining a solid understanding of program requirements and monitoring responsibilities. While the staff will utilize HUD Monitoring Guidelines in establishing areas to be monitored, they intend to focus on assuring timely use of the funds as well as compliance with HUD and federal regulations. Contract compliance, eligibility, record - keeping and performance in meeting anticipated outcomes will also be key components of monitoring. In monitoring sub - recipients, the City plans to use the following five tools: • Program policies • Contractual obligations of grant recipients • Reports • Audits • On -site monitoring The City intends to maintain frequent contact with the funded agencies throughout the year. Prior to the beginning of each year, the City will prepare a brief plan /schedule of Page 114 DRAFT 11/8/11 monitoring activities. In the first year this will include on -site monitoring of all public services grants. Other CDBG funded activities will be monitored using risk factors to determine the schedule. Priority Needs Analysis and Strategies In establishing the priorities for activities to meet the extensive needs of the City, activities are being considered which are likely to be of high impact. Among the conditions currently affecting low- and moderate - income households is the high unemployment and underemployment in the City. Many of the needs identified through the planning process were impacted either directly or indirectly by this condition. The City also looked to its own initiatives and goals to determine how to best to build on efforts already underway which could impact the economic problem affecting low- and moderate - income persons. This has led the City to develop strategies with a focus on economic revitalization activities and job creation, safety net /self - sufficiency services, and protecting/enhancing housing owned or rented by low- and moderate - income households. Basis for Allocating Funds In order to continue services helping populations who are risk, the City allocated the maximum possible to services that have proven to be effective in the past. Because of the high unemployment rate in the community and declining revenues, the City placed a significant amount of the resources into the Business Development Loan Fund for job creation and allocated funding for microenterprise technical assistance; and, in order to begin working on affordable housing needs, set aside funds to maintain owner- occupied housing. The City has chosen to place 100% of program funds toward activities which primarily benefit low- and moderate- income households. Obstacles that May Challenge Meeting Unserved Needs While not anticipating major problems in implementing program activities, the City is cognizant that it has taken on a major commitment in managing the CDBG Program, especially given that several of the activities are new. The City intends to be in frequent contact with assigned HUD representatives and seek guidance where program regulations are unclear. Page 115 DRAFT 11/8/11 POPULATION AND HOUSEHOLDS BACKGROUND The history of Federal Way is tied to the development of transportation and access to resources.' In the early days, the Muckleshoot Indians developed a trail from the east side of the Green River Valley to fish in present -day Salt Water State Park. Absence of easy waterfront access kept the region relatively undeveloped, certainly in comparison with neighboring Tacoma and Seattle. The first road in the area was Military Road, constructed in 1856, which ran north -south and connected Fort Steilacoom to Seattle. The Seattle- Tacoma Interurban Line in 1901 provided better access to urban areas and opened the area to summer recreational users. Federal Highway 99 was complete in 1920. Timber companies built a rail line along the coast to accommodate extensive logging in the area and this helped open the coastline up for development. As roads increased, scattered communities formed, many with their own schoolhouses which were consolidated by King County in the late 1940s into the Federal Way School District. Retail and commercial centers grew, spurred by demand for residential development which was in part linked to the expansion of the Boeing Company in South King County. Engineers brought in to work in the Boeing Company and Weyerhaeuser executives looked for higher quality housing along the coast in Federal Way. Weyerhaeuser's development company, with its substantial timber holdings, was able to build that housing and accompanying amenities to meet that demand. Continued growth of industry in surrounding areas, coupled with the ability to commute in the region along the Interstate 5 corridor and other transportation routes spurred housing construction and more commercial and retail development. In order to gain more self- determination in the face of this considerable development, Federal Way incorporated as a city in 1990. 'Federal Way Comprehensive Plan, Revised 2008. Page 116 DRAFT 11/8/11 POPULATION Population Growth As of the most recent decennial census (2010) there were 89,306 people living in Federal Way, which was a 7% increase over the population in 2000. Part of the population increase between 2000 and 2010 was due to annexations of portions of unincorporated King County. Even with the annexation, growth in Federal Way was lower compared to King County between 2000 and 2010 (11 %). The population in neighboring Pierce County grew by 13% and the population in Washington grew by 14 %. Table 1: Population 1990 -2010 67,449 I 83,259 I 89,306 I 7% King County 1,507,305 1 1,737,034 1 1,931,249 1 11% Pierce County 1 586.203 1 700.820 1 795.225 1 13% Washington 1 4,866,6691 5,894,1211 6,724,5401 14% Source: 2010 US Census. Federal Way is part of the South King County Urban Subarea for regional planning and forecasting purposes. Growth projects and targets, including that anticipated to meet Washington State Growth Management Act requirements, are based on a ratio of housing and jobs. Mobility Opportunities for both housing and employment spill across cities and even counties in the Puget Sound area. This results in considerable mobility between communities in the Puget Sound region. While 81% of Federal Way households reported that they lived in the same house as they did a year earlier (2005 -2009 American Community Survey) — almost one in five households (19 %) had moved in the previous year. Table 2: Date of Move into Housing Unit Source: 2005 -2009 American Community Survey Page 117 DRAFT 11/8/11 Table 2 presents slightly different data on mobility, also drawn from the 2005 -2009 American Community Survey. This shows the date households moved into the unit they occupied at the time of the survey. Thirty -five percent of households moved into the housing unit in 2005 or later. Since the American Community Survey samples annually, the move would have been from one to four years earlier, depending on when the survey was conducted with the respondent household. Data are, however, very dissimilar for owner- occupants and renters. Sixty percent of renter households in Federal Way had moved into the unit in 2005 or later. Note that the American Community Survey data used in this report is based on an annual survey conducted over a five -year period. If anything, the mobility shown is underestimated. Figure 1: Date of Move into Housing Unit by Tenure, Federal Way The Federal Way School District reported 26% annual turnover in the last school year - 26% of students were not in the same school for the whole year, having enrolled late or left early. The rate varied by school, but there were a few schools with turnover greater than 30%. Age The percent of the population by age ranges, indicated in Table 3, are similar across jurisdictions shown. There were slightly more youth under 20 years of age in Federal Way than in King County (28% compared to 24% of the population). About 10% of Federal Way population in 2010 was retirement age, slightly lower than Washington State. Page 1 18 Source: 2005 -2009 American Community Survey. DRAFT 11/8/11 Source: 2010 US Census. On average, Federal Way residents were younger than in King County as a whole (median age 34.9 years compared to 36.3 years in the county) and Washington State (median age 36.2 years). Table 4: Median Age 2000 -2010 Federal Wav 1 32.5 1 34.9 1 33.4 1 36.3 King County I 35.7 1 37.1 1 36.3 1 37.9 Washington 1 35.3 1 37.3 1 36.2 1 38.3 Source: 2010 US Census. The median age was about two years greater in 2010 than in 2000. The increase is in large part due to the aging of the "baby boomers" (those born between 1946 and 1964). The "boomers" pushed up the percent of the population between the ages of 45 and 64 years and, as they age, they will increase the share of those 65 and over. The surge in births following World War II reversed a period of lower birth rates in the late 1920s and early 1930s. Subsequent waves of the baby boom (their children and their grandchildren) will also influence demographically -based services (e.g., schools). The U.S. Census Bureau projects that by 203018% of the population in Washington will be 65 or older. This shift will have an impact on transportation, health care, housing and services. It will also impact families who will likely have increased responsibility for assistance to aging family members. The impact will increase as the baby boomers continue to age. According to national projections, by 2030 almost all baby boomers will be over 70, nearly half (46 %) of seniors (age 65 plus) will be 75 and older and 12% will be 85 and older. By 2050, 55% of seniors will be 75 and older and 22% will be 85 and older. The median age for women in 2010 was higher than the median for men. The life expectancy for women has been higher than for men, reflected in Table 5. In 2010, 64% 2 Grayson, V., and V. Velkoff, 2010, THE NEXT FOUR DECADES, The older Population in the United States: 2010 to 2050, Current Population Reports, P25 -1138, U.S. Census Bureau, Washington DC. Page 119 DRAFT 11/8/11 of seniors age 80 and older were women. The gap is expected to narrow with gains in life expectancy for men, although the trend will continue for the next few decades. Race /Ethnicity Federal Way has a very diverse population. Forty -three percent of the population identified their race as other than white alone in the 2010 census and 16% identified as Hispanic or Latino. In recent decades, census questions have changed, giving people greater flexibility in describing their race and ethnic origins, which results in a more accurate picture. Table 6: Race /Ethnicity 2010 White 57% 69% 77% Black/African American 10% 6% 4% American Indian /Alaska Native 1% 1% 2% Asian 14% 15% 7% Native Hawaiian /Pacific Islander 3% 1% 1% Other race 8% 4% 5% Two or more races 1 7% 5% 5% Source: 2010 US Census. 16% 1 9% 1 11% The requirements of the Consolidated Plan include an analysis of the geographic areas with disproportionate percentages of minority populations. This may indicate lack of housing choice, difficulties in accessing jobs, or other potential problems that might be addressed through this plan. Figure 2 is a map showing neighborhoods (block groups) with greater than 50% minority populations, described here as Hispanic or a race other than white alone (based on percent of non - Hispanic white in the population). Using this description, 48% of the population in 2010 in Federal Way was minority, compared to 35% in King County and 27% in Washington State. Page 120 Figure 2: Percent Minority Population 0 General Legend: Percent Minority 4 j& cozy o f Federal Way City Limits 35% and Less /� F e d era l Way Potential Annexation Area 35% to 50% 0 0.5 1 / \ Over 50% Miles �^1 This map is accompanied by no warranties, N and is simply a graphic representation. I Lake 4 ,. -OR'� Geneva [ co.........::.... ,,,,:,. ... N ...... ........ . �..� R! n ¢' Five t Mile a Lake f 4 Trout Lake General Legend: Percent Minority 4 j& cozy o f Federal Way City Limits 35% and Less /� F e d era l Way Potential Annexation Area 35% to 50% 0 0.5 1 / \ Over 50% Miles �^1 This map is accompanied by no warranties, N and is simply a graphic representation. DRAFT 11/8/11 The diversity in population by race and ethnicity is apparent in this map throughout most neighborhoods in Federal Way. Many of the neighborhoods with 50% and more minority households are in areas with higher multifamily units. Linguistic Diversity and Isolation A multilingual population is an asset in any community, as is a richly diverse population. In Federal Way, 30 of the population age five and older spoke a language other than English in the home. This was higher than King County and considerably higher than Washington as a whole. Among those in Federal Way who spoke a language other than English in the home, almost half (49 %) spoke English less than very well. Table 7: Language Spoken at Home* English 709 1 77% 83% Pacific Island /Asian 13% 10% 5% Spanish 9% 6% 7% Other Indo-European 6% 6% 4% Other 1% 2% 1% *Population age five and older. Source: 2005 -2009 American Community Survey. This linguistic diversity is reflected in Federal Way schools. Even though languages may come with less effort to children, they face real hardships in school without a comprehension of English. Just about 12% of students were enrolled in a transitional bilingual program at the end of the 2010 -2011 school year. This does not nearly reflect the diversity of languages spoken — the Federal Way School District reports that 112 languages are spoken in the district. In addition to English, the most common languages are Spanish, Korean, Russian and Ukrainian. The census defines "linguistically isolated households" as those in which all household members over the age of 14 spoke no English or spoke English less than very well. By that definition, 9% of households in Federal Way were linguistically isolated. Figure 3 looks just at those households. Nearly half spoke an Asian or Pacific Island language and 31% spoke Spanish. The inability to speak English can add to hardship, especially for recent immigrants and refugees from other countries. They must cope with learning English, adapt to a new lifestyle, find employment, develop job skills, introduce children to a new education system, and adjust to other challenges of acclimation. Some are also coping with post - traumatic stress as a result of war or other events in their native country. Page 122 DRAFT 11/8/11 Figure 3: Language Spoken by Linguistically Isolated Households Other 4% Source: 2005 -2009 American Community Survey. Whether new to the country or longer -term residents, people with limited English language skills face barriers in accessing services and understanding important life transactions. This includes comprehending legal rights, understanding how to qualify for and buy a home, responding to discrimination in housing, communicating with health- care professionals, and performing routine day -to -day activities without effort. Limited English- speaking ability can also be a critical barrier in emergencies. HOUSEHOLDS More of Federal Way households are family households than is true of King County (66% in Federal Way compared to 58% in all of King County). In fact, data in Federal Way mirror Washington, as is shown in Table 8. Table 8: Types of Households 2010* Total households 33,188 789,232 2,620,076 Family households 66% 58% 64% With related children <18 32% 29% 31% Husband -wife households 47% 45% 49% With related children <18 21% 21% 22% Female (no husband) ** 14% 9% 10% With related children <18 9% 6% 7% Non - family households 34% 42% 36% Living alone (single person) 26% 31% 27% Sinale 65+ 7% 8% 9% *All percentages shown are of total households. Same sex couples without related children or other related family members are included in non - family households. * *Living in family household with no spouse present. Source: 2010 US Census. Page 123 DRAFT 11/8/11 Of the 34% of households that are non - family households, most (26% of all households) are people living alone. A smaller, though not insignificant portion (7% of all households) are single persons 65 and older. This portion of households is projected to increase. There were 11,732 households in Federal Way with children under 18. Most households with children were husband -wife households (63% were) and most of the remaining 37% were single - parent households. This is higher than King County (27% of households with children under the age of 18 were other than husband -wife households) and also higher than Washington (31% of households with children under 18 were other than husband -wife households). Single parents can face considerable challenges in raising children and meeting the financial obligations of running a household. They may also have higher needs for affordable community services (including transportation, child care and recreation) and have more difficulty accessing those services. Household Size Federal Way households and families were on average larger than those in King County and Washington. Some of this is due to the higher percentage of non - family households, particularly single person households in Seattle — 41% of households in Seattle in 2010 were single individuals. Table 9: Average Household Size 2010 Average household size 2.67 2.40 2.51 Average family household size 3.24 3.05 1 3.06 Source: 2010 US Census. The number of large families has been declining over the years. Still, 13% of Federal Way households had five or more people as of the 2010 census, which was a little higher than in King County and Washington. Table 10: Number of People in Household 2010 Households 1-person 26% 1 31% 27% 2- person 31% 33% 35% 3- person 16% 15% 16% 4-person 14% 13% 13% 5+ person 13% 8% 10% Source: 2010 US Census. Page 124 DRAFT 11/8/11 Group Quarters There were 831 individuals (less than 1% of the population in Federal Way) living in group quarters at the time of the 2010 census. ECONOMY AND INCOME EMPLOYMENT Federal Way, lying between the major employment and transportation hubs of Seattle and Tacoma, is in a unique position to develop businesses and jobs, along with increased residential capacity. The City is host to several prominent businesses, including being headquarters for Weyerhaeuser and World Vision. Hospitals and medical care centers, including St. Francis Hospital, are assets to the community and the region. The Commons, first opened in 1975, is a central retail development which is targeted for improvements and redevelopment in the years ahead. Business parks and office campuses have also been developed in attractive settings. While these are promising avenues, the City competes for businesses with other locations in the region. Federal Way Employers Major employers in Federal Way include Weyerhaeuser, World Vision, St. Francis Hospital, U.S. Postal Bulk Mail Center, Wild Waves Theme Park, and Affiliated Computer Services (ACS). Jobs in Federal Way are largely focused on the retail and service sectors. Governments and the Federal Way School District are also major employers. Employment and housing are both regional issues in Puget Sound. Most of Federal Way workers aged 16 and older commute outside of Federal Way to work — 75% commute." Most commuters stayed within King County, but 16% commuted to another county for work. More men than women commuted outside of Federal Way (81% of men and 68% of women commute). 3 City of Federal Way 2009 Comprehensive Annual Financial Report. "2005 -2009 American Community Survey. Page 125 DRAFT 11/8/11 Cost of Commuting The attractiveness of commuting to more affordable or desirable housing is more and more offset by the rising cost of commuting. A 2006 study determined that when housing and commute costs are combined, the combination of the two is considerably greater than 30% of income for working families. The study drew information from 28 metropolitan areas across the country, including Seattle. Atypical household budget (for the combined 28 metropolitan areas sampled for the study) included 27% of housing and 20% for transportation — 47% combined. Working families, however, with incomes between $20,000 and $50,000, spent 58% of their earnings for the combination of transportation and housing, split about evenly between housing (28 %) and transportation (30%). In Seattle is was a little higher — working families (with incomes between $20,000 and $50,000) spent 61% of their income on transportation and housing (31% on housing and 30% on transportation). Rising fuel costs will further offset advantages of commuting. Public transportation is becoming less a viable option outside of major metropolitan areas with reduction of bus service and routes to meet budget deficits. Federal Way households relying on public transportation will have increasing difficulty. Unemployment Figure 4: Unemployment Rate* *Not seasonally adjusted. Source: Bureau of Labor Statistics. 5 Lipman, Barbara. (2006). A Heavy Load: The Combined Housing and Transportation Burdens of Working Families. Center for Housing Policy. Page 126 10.0 8.0 6.0 4.0 2.0 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Seattle- Tacoma — — Washington *Not seasonally adjusted. Source: Bureau of Labor Statistics. 5 Lipman, Barbara. (2006). A Heavy Load: The Combined Housing and Transportation Burdens of Working Families. Center for Housing Policy. Page 126 DRAFT 11/8/11 The unemployment rate rose sharply in 2009 to 9.3 in the Seattle- Tacoma - Bellevue Metropolitan Area and 9.6 in Washington State. This official rate is based on the proportion of the civilian labor force that is unemployed but actively seeking work. If discouraged job seekers and marginally attached workers (part-time and under- employed) are added, the rate is considerably higher -18.4 in Washington in 2010. The recession and job losses disproportionately affect workers with lower educational attainment, as shown in Figure 5. The unemployment rate nationally in 2010 for workers without a high school diploma approached 15 %. If discouraged job seekers and those marginally employed were added, the rate would be much higher. Job losses since 2007 have been greatest and gains lowest for less- educated workers. The trends are predicted to continue — to be "far reaching and long lasting" and to "mark a dramatic shift away from low- skilled labor. n6 Figure 5: 2010 Unemployment* and Average Weekly Wage by Education ** Looking at the same national data (as used in Figure 5) by race and ethnicity, there are noted disparities in unemployment rates (Table 11). The impact of the recession and changing employment structure is more acute for younger people. The national unemployment rate in 2009 was 9.5, but for people under the age of 25, the rate was 17.3 — for African American workers under the age of 25, the unemployment rate was 29. 1.7 If underemployment is considered, the rates rise. Young 6 Urban Institute. (August 2011). Less Educated Continue to Lose Jobs in Recovery —Even in Low -Wage Industries, Fad Sheet 2. (www.urban.org). Demos /Economic Policy Institute. What Does the Recession Mean for Young People? (www.demos.org and epi.org). Page 127 *Unemployment shown in parentheses by degree level. "Annual averages for persons age 25 and over; earnings are for full -time wage and salary workers. Source: Bureau of Labor Statistics, Current Population Survey DRAFT 11/8/11 people without family financial support may feel more pressured to work than enroll in college, or to work and enroll part -time, which increases the time and barriers to a college degree. Table 11: Unemployment by Race /Ethnicity 2010 No diploma 13.9% 1 22.5% 1 11.1% 113.2% High school graduate HS diploma 9.5% 15.8% 7.6% 11.5% Some college 1 7.6% 12.4% 8.1% 9.7% College degree+ 4.3% 7.9% 5.5% 6.0% Source: Bureau of Labor Statistics, Current Population Survey Educational Attainment The level of education of Federal Way residents age 25 and older is lower than in King County -11% of adults in this age group did not have a high school diploma. Table 12: Educational Attainment Population Age 25+ No diplom 11% 1 8% 1 11% High school graduate 26% 18% 1 25% Some college 37% 29% 34% College deeree or higher 26% 45% 31% Source: 2005 -2009 American Community Survey. Educational attainment varied considerably by race and ethnicity. Just 58% of Hispanics age 25 and older in Federal Way had a high school diploma (or equivalent) compared to 94% of non - Hispanic white residents. Table 13: Educational Attainment by Race /Ethnicity Non - Hispanic white (alone) High school graduate College degree or more 94% 27% 96% 48% 93% 32% Hispanic /Latino High school graduate 58% 67% 58% College degree or more 9% 21% 12% Black/African American High school graduate 92% 84% 86% College degree or more 19% 21% 20% Asian High school graduate 88% 86% 85% College degree or more 39% 51% 45% Source: 2005 -2009 American Community Survey. Page 128 DRAFT 11/8/11 The Office of the Superintendent of Public Instruction reported an on -time graduation rate for the class of 2010 at 72.7% and a rate of 80.7% adding the students who graduated a year late . Rates were lower in Federal Way —the on -time cohort rate was 68.9% and the 5 -year rate was 75.9 %. This means that 31% of students starting the 9 1h grade in 2009 did not graduate with their class and 24% had not graduated a year later. Lack of a high school diploma places the individual student at a disadvantage in terms of jobs and other opportunities in life. Graduation rates also impact local and regional economies. One 2007 national study estimated that moving just a single student from dropout to graduation would yield more than $200,000 in higher tax revenues and lower government expenditures. The Alliance for Excellent Education provides estimates of the economic benefit of increasing graduation at the national, state and metropolitan levels. The following apply to Washington and the Seattle- Tacoma - Bellevue Metropolitan Statistical Area. About 29,000 students from the class of 2010 in Washington dropped out (15,400 in the Seattle MSA). Cutting this in half would result in: • $201 million in increased annual earnings ($108 million in Seattle MSA) • $147 million in increased annual spending ($77 million in Seattle MSA) • $237 million in economic growth ($144 million in Seattle MSA) • $17 million in increased annual tax revenue ($11 million in Seattle MSA) INCOME Table 14: Median Income* Median household 1 $56,980 $67,246 1 $56,384 Median family 1 $67,120 $85,778 $68,457 Median earnings male ** 1 $51,912 $60,953. $51,275 Per capita 1 $27,307 1 $37,797 1 $29,320 *Income in the last 12 months in 2009 inflation- adjusted dollars. * *Full -time, year -round work. Source: 2005 -2009 American Community Survey. 8 Actual adjusted on -time cohort graduation rate and actual adjusted 5 -year cohort graduation rate reported and defined at reportcard /k12.wa.us. 9 H. Levin et al., "The Costs and Benefits of an Excellent Education for All of America's Children" reported in Education and the Economy: Boosting State and Local Economies by Improving High School Graduation Rates, Alliance for Excellent Education, June 2011(www.all3ed.org). 10 www all4ed.org Page 129 DRAFT 11/8/11 The median household income in Federal Way was $56,980 —15% lower than the whole of King County, although on a par with Washington State. Federal Way median family income at $67,120 was 22% lower than King County. Ranges of household income are shown in Table 15, with added detail for ranges below $50,000 annually. Table 15: Range of Household Incomes* Under $15,000 SO% 9% 11% $15,000 to $24,999 8% 7% 9% $25,000 to $34,999 11% 8% 10% $35,000 to $49,999 14% 12% 14% $50,000 to $74,999 21% 18% 20% $75,000 or more 35% 45% 1 36% "Income in the last 12 months in 2009 inflation - adjusted dollars. Source: 2005 -2009 American Community Survey. *Income in the last 12 months in 2009 inflation- adjusted dollars. Data are shown for single races (alone). Black and Asian householders may also be Hispanic. Hispanic householders may be of any race. Non- Hispanic white alone is shown for comparison. Source: 2005 -2009 American Community Survey. Median household income during the previous year by race and ethnicity of the householder is shown in Figure 6. Median income for households with an Hispanic householder or a Black/African American householder was substantially lower than for households with an Asian or non - Hispanic white householder. Page 130 Figure 6: Median Household Income by Race /Ethnicity* DRAFT 11/8/11 Median household income by age of householder is shown in Figure 7. Householders younger than 25 years and older than age 65 and above had lowest household incomes. While this is understandable given increasing income with longer employment and a decline in earnings at retirement, a share of the younger households are young families or even single individuals with children. Similarly for households with an older householder, while some are living in housing with paid mortgages and the ability to live comfortably on less income, a share of these households are in a less comfortable position and vulnerable. Figure 7: Median Household Income by Age of Householder* Low and Moderate Income Areas The map in Figure 8 (following page) shows low and moderate income areas (block groups) in Federal Way. Neighborhoods in which 51% of households are at or below 80'x6 of Area Median Income (AMI) are eligible for projects benefitting the neighborhood. Areas with highest percentages of low and moderate income households are along the corridor between the Pacific Highway and 1 -5. Poverty The percent of people and families living below the official poverty level is shown in Table 16. This is based on the 5 -year American Community Survey (2005 - 2009). More recent data from the U.S. Census show that the poverty rate increased between 2009 Page 131 *Income in the last 12 months in 2009 inflation- adjusted dollars. Source: 2005 -2009 American Community Survey. Figure 8: Percent Low /Moderate Income Households Q Lake Geneva ¢' Five r Mile co Lake A p r . �9/ �� n In�wwi Trou orr 9` �QC $ % ii ... Lake a ._ t 1 t 1 t — q*%. a- 1 General Legend: Federal Way City Limits fi j Potential Annexation Area Low /Moderate Income Below 51 % 51 % and Above 0 CITY OF Federal Way 0.5 1 Miles This map is accompanied by no warranties, N and is simply a graphic representation. DRAFT 11/8/11 and 2010. Real median household income declined during the same period and the number of people without health insurance increased." The percent of the population in poverty shown in Table 16 is also based on a point -in- time count. The figures mask the fact that people transition in and out of poverty. This means that more people than are counted experience poverty at some point during the year. The Survey of Income and Program Participation (SIPP) found that about 32% of the population had at least one two -month period of poverty during the four -year period from 2004 - 2007. Chronic poverty, like homelessness, is less frequent — about 2% of the population lived in poverty continuously fora 48 months period (2004 - 2007). Table 16: Population Living in Poverty Individuals (all) 12% 10% 1 12% Under 18 18% 12% 15% 18 and older 10% 9% 11% 65 and older 8% 9% 8% Families 10% 6% 8% With related children <18 14% 9% 13% Female householder (family)* 26% 20% 26% With related children <18 31% 27% 34% With related children <5 50% 37% 1 43% *No husband present. Source: 2005 -2009 American Community Survey. Official poverty estimates are based on a set of thresholds first established in 1963 -1964 based on U.S. Department of Agriculture (USDA) food budgets. The thresholds, adjusted based on household size and composition and updated annually for inflation, are based on the cost of food, assuming food to be about one -third of the family budget. The thresholds do not vary by location in the United States and are considered a yardstick rather than a precise measure geographically. Table 17: Poverty Thresholds 2010 Single person 65+ $10,458 Single parent, 1 child $15,030 Single parent, 2 children $17,568 Two adults, 2 children $22,113 Two adults, 4 children $29,137 Source: US Census Bureau. 11 DeNavas -Walt, C., B. Proctor, and J. Smith. U.S. Census Bureau, Current population Reports, P60 -239, Income, Poverty, and Health Insurance Coverage in the United States: 1010, U.S. Government Printing Office, Washington DC, 2011. 12 ibid. Page 133 DRAFT 11/8/11 2010 poverty thresholds are shown in Table 17 for a sample of households. The rates vary by number of people in the household and number of related children under 18 years of age. It is recognized that the thresholds are low and do not reflect the degree of actual economic need. The method of calculating poverty rates will likely be refined in coming years to include all sources of income, among other proposed changes. Self - Sufficiency A widely used method of measuring the income working adults need to meet their needs is the Self- Sufficiency Standard. This model provides for modest monthly expenses including housing, food, child care, transportation, health care, miscellaneous expenses and taxes for working adults without public or private assistance. The Self - Sufficiency standard varies with the number and ages of children and number of adults. The following (Table 18) compares federal poverty and the Self- Sufficiency Standard for several household configurations in Federal Way. Single parents, particularly with children needing daycare, have Self- Sufficiency Standards considerably above federal poverty levels. Table 18: Federal Way Self - Sufficiency Standards Single person <65 $11,139 1 $23,028 1 207% Single parent, 1 preschool child $15,030 $47,496 316% Single parent, 1 school-aged child $15,030 $40,154 267% Two adults, 2 children (1 preschool) $22,113 1 $61,037 276% Source: www.thecalculator.org The disparity is greater for women householders and for minority householders. In Washington, the income inadequacy for women- maintained households was almost double that for male- maintained households. This is even more pronounced for minority women- headed households. 14 TANF (Temporary Assistance for Needy Families) Six percent of Federal Way households received TANF (Temporary Assistance for Needy Families) and State Family Assistance in the year ending June 2010. The level of TANF " Information about the Self Sufficiency Standard and related publications can be found at the Center for Women's Welfare, School of Social Work, University of Washington or online at www.selfsuffiicstandard.org. National information can be found at www.wowonline.org/ourprograms /fess. Visit www.thecalculator.org to compute income by household composition by region. 14 Diana Pearce. (2007). Overlooked and Undercounted: Wages, Work, and Poverty in Washington State. Center for Women's Welfare, School of Social Work, University of Washington. is www.clientdata.rda.dshs.wa.gov Page 134 DRAFT 11/8/11 assistance for a family of three ($562) is equal in Washington to 37% of the federal poverty line. With SNAP (Supplemental Nutrition Assistance Program) benefits added, the combined benefit is 71% of the federal poverty line. 16 Food Insecurity People have food insecurity when they are uncertain of having or being able to acquire enough food to meet the needs of all their members because they do not have money or other resources for food. In 2010, 14.5 percent of households in the United States were food insecure. 17 According to the 2005 -2009 American Community Survey, 11% of Federal Way Households received SNAP (Supplemental Nutrition Assistance Program) benefits in the last 12 months. This is higher than Washington (9% of households received SNAP in the past 12 months) and King County (6% received benefits). Washington State Department of Social and Health Services reported that 24% of the population in Federal Way received Basic Food benefits in the year ending June 2010. Another measure of food insecurity is eligibility for free and reduced cost meals in schools. The Federal Way School District calculated that 56% of students received free or reduced -cost meals in a report computed in June 2011. Two schools had rates of 83% free and reduced -cost meals — Olympic View Elementary and Mark Twain Elementary. The Multi- Service Center (MSC) in Federal Way operates a food bank several days a week in Federal Way. Demand for food has increased — 200 to 225 households per day are visiting the food bank in the current year (2011) compared to 160 households per day in the previous year. There are also more new households than in the previous year — 20 to 30 a day in 2011 compared to an average of 10 new households per day in 2010. As with poverty, food insecurity is episodic for many. People visit the food bank when in need and for the time they need it. In 2011, households were coming more frequently (according to an MSC survey of recipients) — visiting three or more times per month compared to one or two times in 2010. The food bank has resources for infants and toddlers and this has also seen an increase. In 2000 the MSC served 209 children (0 -2 36 S. Schott and I. Finch. (2010). TANF Benefits Are Low and Have Not Kept Pace with Inflation: Benefits Are not Enough to Meet Families' Basic Needs. Center on Budget and Policy Priorities. (www.cbpp.org). "U.S. Department of Agriculture, Economic Research Service, reporting results of 2010 Current Population Survey Food Security Supplement ( ers. usda .gov /briefing/foodsecurity). is www.clientdata.red.dshs.wa.gov 39 This is higher than the rate provided by OSPI as of May 2011(50 %) which is due to differences in methods of calculation. Page 135 DRAFT 11/8/11 years old) which has steadily increased —1,688 in 2007, 2,378 in 2008, 3,896 in 2009, 4,717 in 2010 and 4,883 in 2011. All periods measured were from January to September. Unfortunately, as the demand for food and other assistance has increased, resources have declined, including food donations. The Mayor's Day food collection (picked up with trash collection) gathered 65,000 pounds of food in 2008, 29,000 in 2009, 13,000 in 2010 and 9,000 in 2011. This could be due to reduced awareness, reduced willingness to give, or reduced ability to contribute. Page 136 DRAFT 11/8/11 HOUSING EXISTING HOUSING The 2010 census counted 35,444 units of housing in Federal Way — both occupied and vacant. This was an increase of 9% over the 32,589 units counted in the 2000 census. A good amount of the increase (43 %) was due to annexations between 2000 and 2006. Types of units are shown in Table 19. While the majority of housing units are single family (58% are), multifamily housing represents a substantial share of units in Federal Way. This is comparable to all of King County, the percentages for which are strongly influenced by Seattle which has a nearly 50 -50 split on single family and multifamily housing. Table 19: Types of Units as a Percent of Total Units Total housing units 2010 1 35,444 1 851,261 1 2,885 Single family 58% 60% 1 67% Detached 54% 56% 63% Attached 4% 4% 3% Multifamily 39% 38% 26% 2 -4 units 30% 6% 6% 5 -9 units 9% 7% 5% 10 -19 units 10% 8% 6% 20 plus units 9% 17% 9% Mobile homes 4% 2% 8% Sources: 2010 US Census (total units); 2005 -2009 American Community Survey (types of units). Mobile homes, making up 4% of Federal Way housing, are located in nine parks. Mobile homes can be an affordable housing option for lower income households, both as rentals and as owner - occupied units. There is no currently anticipated plan to close or redevelop mobile parks in Federal Way. Conditions in mobile home parks vary considerably; many parks contain units in deteriorating condition. One park of note (Belmor) is an example of a well- maintained complex and boasts an onsite golf course. Recent Trends in Construction Residential building permits have fallen dramatically to the lowest level in 20 years. The economy and housing market have heavily impacted building. Declining prices 20 Washington Office of Financial Management. (2006). 2006 Population Trends. 21 Pugest Sound Regional Council. (2011). Puget Sound Trends: 1009 Residential Building Permit Trends. Page 137 DRAFT 11/8/11 means many owners are paying on mortgages higher than the worth of their homes. These factors have reduced demand for housing and affected permitting accordingly. Single family net permits (new minus demolition) for single family homes in King County in 2009 was just 41% of the net in 2007 and net multifamily permits in 2009 was 21% what it was in 2007. In addition, permitting does not necessarily result in new construction. The dramatic reduction in construction affects both available housing and jobs associated with housing construction. While development in recent years has been modest, as in other communities impacted by the recession, the possibility of a substantial new development in Federal Way in the City Center will bring housing, commercial activities and employment. An anticipated high -rise development is expected to provide 500 units of market rate housing above commercial and retail space. The proximity of the new building to the nearby transit center is consistent with the City's goal of transit - oriented development. Housing Age and Condition Housing in Federal Way is relatively new. Almost all units were built after 1960 (93% were) and 51% were built after 1979. Having newer structures, Federal Way does not have the deteriorating buildings often associated with older cities and suburbs. Table 20: Year Built as a Percent of Total Units 2000 or later 7% 31% 13% 1980 to 1999 44% 30% 33% 1960 to 1979 42% 29% 29% 1940 to 1959 6% 16% 14% Before 1940 1% 14% 12% Sources: 2005 -2009 American Community Survey. The King County Assessor's Office provides general information about housing construction quality, according to their definition. Records indicate that, overall, housing is of average or better construction quality in Federal Way. One exception is the Westway neighborhood which has many units in poor condition and has suffered from foreclosures. The condition of houses in the Westway neighborhood are improving in part as the result of the federal Neighborhood Stabilization Program, the City, efforts of local residents and partnerships including Habitat for Humanity. Many vacant and foreclosed homes are being rebuilt or renovated 22 City of Federal Way Comprehensive Plan. Page 138 DRAFT 11/8/11 in the recent initiate. Fourteen vacant and /or foreclosed homes are being rebuilt or renovated in this initiative. The City supports efforts to develop affordable housing and improve housing conditions. Units are considered to be in standard condition when the dwelling substantially meets HUD's Housing Quality Standards and or the Uniform Housing Code standards. A unit that is in substandard condition but suitable for rehabilitation is one that does not meet current building or housing code standards or HUD's Housing Quality Standard, but exhibits a reasonably sound basic structure, potentially containing one or more defective systems within the unit. Rehabilitation of the unit must be feasible through repairs that will extend the life of the building, contribute to the safety of the occupant, improve condition or livability of the structure, or bring the unit up to HUD Housing Quality Standards. Overcrowding Another indication of housing problems is the extent of overcrowding, defined as more than one person per room. The 2005 -2009 American Community Survey estimated that 3% of Federal Way households had more than one person per room (compared to 2% of households in both Washington and King County). Households doubling up as a necessity of the recession which began in 2007 may contribute to additional overcrowding. A recent study found increases in doubled -up households, increases in extra adults, and increases in young adults living with parents. Lead -based Paint and Lead Hazards The Residential Lead -Based Paint Hazard Reduction Act seeks to identify and mitigate sources of lead in the home. A high level of lead in the blood is particularly toxic to children age six and younger. Childhood lead poisoning is the number one environmental health hazard facing American children. Lead can damage the central nervous system, cause mental retardation, convulsions and sometimes death. Lead can also be injurious to adults. Children who live in homes with lead -based paint can become exposed by inadvertently swallowing lead contained in household dust. This is particularly a problem when houses are remodeled using practices such as scraping or sanding old paint. Lead -based paint is not the only culprit. Lead has also been identified in many other sources, including some 25 PNWLocalNews.com. 24 L. Mykyta and S. Macartney. (2011). The Effects of Recession on Household Composition: Doubling Up' and Economic Well - Being. U.S. Census Bureau. 25 www. kingcounty. gov/ health /ehs /toxic/Leadgeneral.aspx. Page 139 DRAFT 11/8/11 vinyl blinds, pottery, lead in water pipes, lead in dust brought into the home from work sites, certain hobbies (like lead solder in stained glass work), and some herbal remedies. A 2005 study of childhood lead exposure in Washington 26 found the area around Federal Way to have low priority ratings (3 or 4 on a 4 -point scale, with 1 being high). In contrast, Tacoma received a higher priority both because of the ASARCO lead smelter which left higher than normal soil lead levels and because of older buildings in Tacoma, similar to other urban areas. The Washington State Department of Health reports that in 2009 and 2010 (combined) 697 children under the age of seven were tested for lead by healthcare providers in Federal Way. Of those, fewer than five had blood lead levels over 10 WjdL (micrograms per deciliter). In all of King County, for the same period, 11,034 children under the age of seven were tested and 42 (about 0.4 %) had blood lead levels over 10 pg/dL. Testing results are usually maintained by the location of the testing health facility, rather than the address of the individual tested. Children tested in Federal Way, for example, might actually live in another city. However, the Department of Health found that 718 children with Federal Way addresses were tested in Washington in 2009 and 2010, and that fewer than five had blood lead levels over 10 pg/dL. The age of housing units is a leading indicator of the presence of lead- hazards, along with building maintenance. Lead was banned from residential paint in 1978. Potentially, all units built before 1978 could pose a hazard. Realistically, lead -based paint is only a risk if it is disturbed and children are exposed to the dust. Recent surveys have attempted to provide a more accurate estimate of lead -based paint (LBP) hazards. A 1999 national survey found declining chances of lead -based paint hazards with newer buildings: 67% for housing built before 1940, 51% for houses built between 1940 and 1959, 10% for houses built between 1960 and 1977 and 1% for housing built after that. Table 21 shows the results of the application of the study rates to Federal Way's housing as of the 2000 census by date of construction. Potentially, lead hazards are present in about 2,600 housing units in Federal Way. Using those percentages of potential hazards by date of construction and applying the 2000 CHAS tables (see Tables 30 and 31) that provide the percentage of low income households by tenure, and 2005 -2009 American Community Survey data on tenure by 26 Lead Hazards in Housing: Childhood Lead Exposure in Washington's Communities. (2005). CTED Z' Clicker, R. et al. (2001). National Survey of Lead and Allergens in Housing, Final Report, Volume 1: Analysis of Lead Hazards. Report to Office of Lead Hazard Control, U.S. Department of housing and Urban Development. Page 140 DRAFT 11/8/11 date of construction, it is estimated that about 600 low- income renter households and 480 low income owner households are living in units with potential hazards. Table 21: Potential Lead -Based Paint Hazards Federal Way 2000 Before 1940 358 67% 240 1940 to 195 1,554 51% 793 1960 to 1979 14,077 30% 1,408 1980 to 2000 16,600 1% 166 Total units 32,589 7.4 2,607 Source: 2000 US Census. The City of Federal Way was part of the King County Consortium prior to this plan. As Federal Way embarks on housing projects under this Consolidated Plan, the City will emulate the HUD's lead -based paint practices, including paint and risk inspections in homes, as required. If lead hazard reduction is required for a given home repair project, the hazard reduction work will be incorporated into the scope of the rehabilitation work to be done on the house. The City will promote safe lead practices and training. Housing Occupancy and Tenure The numbers of units occupied and vacant as of the 2010 census are shown in Table 22. Vacancy rates were similar for the jurisdictions shown — higher for rental than owned properties. Table 22: Housing Units and Occupancy 2010 Total housing units 2010 35,444 851,261 2,885,677 Occupied units 2010 33,188 789,232 2,620,076 Vacant units 2010 2,256 62,029 265,601 Homeowner vacancy rate ( %) 2.1 2.6 2.4 Rental vacancy rate ( %) 7.5 7.4 7.0 Source: 2010 US Census Over half of Federal Way households (56 %) live in housing they own or are buying. While most of owner - occupied units are single family, not all are —12% of detached single family houses are occupied by renters and 24% of attached single family units are renter - occupied. The majority of mobile homes are owner - occupied, although rented space is the most common arrangement. Page 141 DRAFT 11/8/11 Table 23: Tenure by Unit Type Owner-occupied all units 56% 59% 1 64% Owner - occupied single family (detached) 88% 87% 85% Owner - occupied single family (attached) 76% 74% 58% Owner-occupied multifamily 2 -20 units 12% 17% 12% Owner- occupied mobile homes 90% 85% 78% Renter - occupied all units 44% 41% 36% Renter-occupied single family (detached) 12% 13% 15% Renter - occupied single family (attached) 24% 26% 42% Renter - occupied multifamily 2 -20 units 88% 83% 88% Renter - occupied mobile homes 10% 15% 22% Sources: Overall tenure 2010 US Census; tenure by type of unit 2005 -2009 American Community Survey. There were differences in tenure by race and ethnicity of the householder. • 64% of non - Hispanic white householders lived in owner - occupied units. • 61% of Asian householders lived in owner- occupied units • 44% of both African American and Hispanic householders lived in owner - occupied units. HOUSING COSTS Median housing costs are shown in Table 24. Owner-estimated values and costs were lower in Federal Way than in King County, particularly in estimated unit value (estimated values 28% lower in Federal Way than King County). Selected owner -costs for units with and without a mortgage were lower in Federal Way than King County (16% and 13% respectively). Median gross rents were lower as well in Federal Way — but by just 6 %. Most owner - occupied units had a mortgage (78% did). This is similar to King County (77% with mortgage) and a little higher than Washington State (73% with a mortgage). Table 24: Housing Values and Costs Median monthly owner costs With mortgage $1,806 $2,133 $1,704 Without mortgage $529 $609 $461 Median gross rent $903 $965 $853 Source: 2005 -2009 American Community Survey. 28 2010 US Census. 29 Owner costs include mortgage, taxes, insurance, condo fees and utilities. Gross rent includes utilities, whether included in the rent or paid by the tenant. Page 142 DRAFT 11/8/11 Recent Sales Puget Sound housing prices were not as impacted as other areas in the nation in the early stages of the recent recession. However, since 2007 prices have dropped substantially, sales have been sluggish and foreclosures have increased . Figure 9 reflects that trend in King County, Pierce County and all of Washington State. Even though housing prices have declined, the trend has been less severe compared with many other metropolitan areas. Housing prices remain uncertain, especially with an anticipated backlog of foreclosures which must be cleared before prices stabilize. Home prices in Federal Way are lower than King County, as reflected in Table 24. In the last half of 2010,162 houses (detached resale) were sold in Federal Way at an average price of $269,700. Figure 9: Median Sales Prices (Existing Homes) 2000 -2010 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 King County ...... Pierce County — — Washington Source: Puget Sound Regional Council and Washington Center for Real Estate Research. The decline in housing prices has made housing more affordable. According to research provided by the Washington Center for Real Estate Research (WCRER), by the second quarter of 2010 a family at median income earned more than enough to afford a median priced home — in fact 111% of the amount required (assuming a conventional mortgage). This was a slightly higher margin than in 2009 when housing was affordable by this scale for the first time in several years (affordability index of 105 in 2009, or median income at 105% of that needed to purchase a median priced home). 30 Puget Sound Regional Council. (2009). Puget Sound Trends: Housing Prices and Affordability. 31 Washington Center for Real Estate Research/Washington State University. (2011). Central Puget Sound Real Estate Research Report, Year End 2010. Page 143 DRAFT 11/8/11 While lower housing prices have improved opportunities for middle income buyers in general in King County, this does not apply to first -time buyers who are assumed for purposes of the affordability index to have lower incomes, be seeking lower- priced houses, and require a 10% down payment and 25% qualifying ratio. By the second quarter of 2010, the affordability index for first -time buyers in King County was 61.7 — buyers had just 62% of the income required to buy a home. The affordability index does not consider utilities costs. If the cost of utilities is added for general purchasers and first -time home buyers, median priced homes may not be "affordable" to median income buyers, applying the HUD definition of affordability. First -time buyers would find homes even less affordable if consideration of utilities was included. The recession has had a profound effect on employment and housing prices, as discussed earlier. Foreclosed properties have increased the number of vacant units in King County and Federal Way. The backlog of foreclosed but unsold properties continues to have a downward influence on home sales prices. A hopeful sign is the decline in new foreclosure filings through the third quarter of 2011 compared to a year earlier in King County, Washington and nationally. However, this may turn around to some degree in the months ahead. The national foreclosure signing controversy delayed the foreclosure process, which is now showing some signs of picking up again. The City of Federal Way received funding under the Neighborhood Stabilization Program to counteract the effects of foreclosures. In the first round of funding (NSP1) the City provided down payment assistance to 11 households. The City is currently working with NSP3 funds to acquire 14 houses in the Westway neighborhood, which will be rehabilitated and sold to low- income households. Recent Rental Market Figure 10 shows average rents between 2000 and 2011. These rents are determined by an annual survey of apartments with five or more units and costs have not been adjusted for inflation. Average rents declined and flattened between 2000 and 2005 in King County and then increased. The trend overall is to higher rents. Vacancy rates have fluctuated but fell to 4.3% in King County by the spring quarter 2011. This is slightly below what is considered a "balanced" market.. 32 Puget Sound Regional Council. (2009). Puget Sound Trends: Housing Prices and Affordability. 33 SeattlePl.com. Foreclosures down again, but may be starting to rise. October 13, 2011. Page 144 DRAFT 11/8/11 Figure 30: Average Rents 2000 -2011 Housing Affordability Housing is considered affordable when the cost of housing plus utilities equals no more than 30% of household income. While the sales price of housing has declined and made housing more affordable for median income buyers in King County the prices have not declined to the point that first -time buyers find housing affordable. Considering housing affordability in terms of median household income masks the degree to which lower income households struggle with housing costs. Households with lowest incomes on average pay a considerably greater share of their income for housing which leaves little for other necessities. In this position, households have to choose between necessities, including food and health care. Figure 11: Percent of HH with Rent 30%+ of Household Income Page 145 source: ruget wuna Kegionai t.ouncn ana wasnmgton tenter for neat rstate Kesearcn. 'NOUrce: LW7-GW7 American Lommunity. survey. DRAFT 11/8/11 Figures 11 and 12 show costs (housing plus utilities) as a percent of household income by income range. These figures show that the vast majority of households with incomes less than $35,000 a year are paying more for housing than they can afford. Figure 12 includes households with and without a mortgage. Again, households at the lowest income ranges are most cost - burdened. Figure 12: Percent of Owner HH with Costs 30%+ of Household Income Every year throughout the United States, the National Low Income Housing Coalition demonstrates the relationship between modest housing costs (Fair Market Rents set by HUD based on actual area housing costs) and the income required to afford that housing. Table 25 shows that comparison for the HUD - designated Seattle- Bellevue Metro FMR Area (applicable to Federal Way and all of King County). Table 25: Housing Costs, Income and Affordability King County 2010 Fair Market Rent (FMR)" $770 $878 $1,056 $1,492 1 $1,823 Income needed to afford $30,800 $35,120 $42,240 $59,680 $79,920 Hourly wage to afford 40 hours /week) $14.81 $16.88 $20.31 $28.69 $35.06 Hours /we ek to afford at min. wage" 69 79 95 134 164 *Fiscal Year 2010 (HUD) * *$8.55 in Washington. Source: National Low Income Housing Coalition (www.nlihc.org) • Fair Market Rent (FMR) for a 2- bedroom unit in King County in FY 2010 was $1,056. • In order to afford that rent (including utilities), a household would need to have an income of $42,240 a year. Page 146 Source: 2005 -2009 American Community Survey. DRAFT 11/8/11 • If this was a single wage- earner, that person would need to earn a wage of $20.31 an hour. • If the wage- earner was earning minimum wage ($8.55 an hour), that person would need to work 95 hours a week to afford the unit. Minimum wage in Washington is $8.55 an hour. A person employed at minimum age would only be able to afford (at 30% of earnings) housing that costs $444.60. If this was a single mother with a child, working at minimum wage and renting a 2- bedroom apartment at FMR, she would pay 71% of her monthly income for rent. The remaining $426 a month (assuming no taxes or other withholding) would have to cover all other expenses. The monthly Supplemental Security Income (SSI) payment for a person in Washington in 2010 was $674. If SSI was the only source of income, the individual would only be able to afford $202 for housing. The FMR for a 1- bedroom in King County was $770 — more than 100% of SSI monthly sum. Table 26 shows 2011 HUD income limits for King County (Seattle - Bellevue HUD Metro FMR Area) along with maximum incomes within the ranges and what affordable housing would cost at the maximum end of the range for a family of 4 people. Table 26: 2011 HUD Income Limits and Housing Affordable at 30% Extremely low income 1 0% to 30% 1 $26,050 1 $651 Very low income 31% to 50% $43,400 $1,085 Low income 51% to 80% $64,200 $1,605 Notes: HUD estimated AMI (Area Median Income) for King County was $72,000 for a family of 4 in 2011. Source: huduser.org/datasets Looking at median income and housing costs alone does not portray the extent of cost - burdened households. Table 27: Federal Way Low Income Households by Tenure Source: HUD CHAS tables based on 2000 US Census. Page 147 0% to 30% of AMI 2,480 876 3,356 31% to 50% of AMI 2,776 996 3,772 51% to 80% of AMI 3,377 2,694 6,071 Total low income 8,633 4,566 13,199 % of total 63% 1 26% 429'0 Source: HUD CHAS tables based on 2000 US Census. Page 147 DRAFT 11/8/11 Table 27 was taken from the 2000 CHAS data (displayed in Tables 30 and 31), which were the most recent available. Sixty -three percent of all renter households and 26% of owner- occupant households were considered low- income (below 80% of AMI) by HUD. Housing Affordability and Wages Table 28 compares Fair Market Rents and average (mean) annual income for a selection of jobs in the Seattle, Tacoma - Bellevue metropolitan areas. It is clear from this comparison that many service and retail positions pay below what is needed for even studio apartments (including utilities). Table 28: 2010 Income and Rents Compared* Civil Police patrol officers ($70,670 /year) 1 $1,767 Fire fighters (568.590 /vear) I 51,715 Elementary teachers Healthcare social wo Ambulance dispatch Garbage collectors (; EMT /paramedics ($9 School social worker Dental assistants ($3 Nursin>; aides (530.4 4- bedroom 3- bedroom 2- bedroom 1- bedroom Studio Fast food cooks ($20,630 /year) $516 Minimum wage job ($8.55 /hour) $445 SSI income ($674 /month) $202 *Seattle, Tacoma - Bellevue incomes; 2010 Fair Market Rent Seattle- Bellevue Metro Area. Sources: Bureau of Labor Statistics (mean annual wages); HUD. Affordability Mismatch One of the challenges in planning for affordable housing is that, unless housing is managed by a program that earmarks units by qualifying household income, lower cost units may not be available to lower income households. Page 148 DRAFT 11/8/11 Table 29: Rental Affordability Mismatch 2000 Rent /price affordable at <30% of AMI Occupied units in Drice ranee 1 629 Occupants at <30% of AN I 52% 1 58% 1 45% Rent/price affordable at >30% and <50% of AMI Occupied units in price range 1 4,125 66,975 221,180 Occupants at >30% and <50% of AMI 1 50% 46% 48% Rent/price affordable at >50% and <80% of AMI Occupied units in price range 8,215 143,510 390,845 Occupants at >50% and <80% of AMI 56% 53% 54% Source: 2000 US Census; HUD. Table 29 is a HUD analysis of 2000 census data comparing rents and household income. Only around half of rental units in Federal Way within the budget of households below 80% of AMI were actually occupied by households in those income ranges. Far fewer owner - occupied units were actually available and occupied by households within the appropriate income ranges. Clearly, households with incomes below median are unable to compete with higher income households. Renter Households with Problems Tables 30 and 31 are based on the most recent HUD - provided CHAS (Comprehensive Housing Affordability Strategy) data available at the local level. While there may be some disparity, especially at higher incomes, it is likely that the burden on lower income households remains pronounced. Housing problems are defined by HUD as cost burden (paying over 30% of income for rent and utilities), overcrowding, and /or lack of complete kitchen and plumbing facilities. The tables also show the percent of renters and owner households paying more than 50% of household income for housing and utilities. It is clear that renter households below 50•0A of Median Family Income spend more money on housing than is considered affordable. About 70% of the lowest income households spend half or more of their income on housing, leaving little for other expenses. Looking at total renter households, 46% had housing problems due to cost or overcrowding, 37% were paying more than 30% of their income for housing and 16% were paying half or more of their income for housing. Page 149 DRAFT 11/8/11 Table 30: Federal Way Renter Households Cost- Burdened and with Housing Problems HHs at 0% to 30% of MFI 424 1,008 299 749 1 2,480 % with housing problems 80% 86% 99% 80% 1 85% • cost burden >30% 80% 79% 82% 79% 80% • cost burden >50% 59% 69% 69% 78% 70% HHs at 31% to 50% of MFI 333 1,350 274 819 2,776 % with housing problems 84% 87% 99% 88% 88% • cost burden >30% 78% 81% 57% 87% 80% • cost burden >50% 27% 16% 7% 17% 17% HHs at 51% to 80% of MFI 189 1,448 320 1,420 3,377 % with housing problems 42% 39% 69% 25% 36% • cost burden >30% 32% 24% 20% 24% 24% • cost burden >50% 8% <1% 0% 0% 1% HHs at 80% or more of MFI 282 2,175 465 1 2,173 5 % with housing problems 17% 10% 37% 4% 10% • cost burden >30% 14% 3% 0% <I% 2% • cost burden >50% 11% 0% 0% 0% 1% Total renter households 1,228 5,981 1,358 5,161 13,728 % with housing problems 61% 47% 70% 34% 46% • cost burden >30% 57% 39% 34% 1 32% 37% • cost burden >50% 31% 1 15% 1 17% 1 14% 1 16% Notes: MFI is median family income. Housing problems include cost greater than 30% of income and /or overcrowding and /or without complete kitchen or plumbing facilities. Cost includes rent and utilities. Totals may vary slightly from census data. Source: HUD 2000 CHAS tables. Disproportionate Burden for Minority Renter Householders. While data are not precise, examination of supplemental tables provided by HUD (CHAS 2000) show that some populations have a disproportionate share of housing problems. Both African American and Hispanic households (by race /ethnicity of householder) had more problems than the average for all households in Federal Way. Differences were small (less than 10 %) for African American households, but overall a greater percent of African American households had housing problems. Fifty three percent of African American households had housing problems compared to 46% of all households in Federal Way. Hispanic households also were disproportionately burdened — 61% of all Hispanic renter households had housing problems, compared to 46% of all Federal Way households. This was especially the case for households earning over 50% of Median Family Income. Some of the variation, however, should be viewed with caution because of small numbers of households broken out by tenure, income and family type. 34 This analysis is based on data contained in HUD - provided 2000 CHAS tables. Page 150 DRAFT 11/8/11 Owner Households with Problems Table 31 displays similar information as above for owner households. While generally having higher income, owner households are also burdened by housing costs, particularly at lower income levels. Seventy -two percent of owner households with incomes lower than 30% of Median Family Income were paying more than 30% of household income toward housing costs. This dropped slightly to 63% for households in the next income bracket (between 31% and 50% of MFI) and dropped again to 56% in the next income bracket (between 51% and 80% of MFI). Small families (2-4 people) were most cost - burdened. Table 31: Federal Way Owner Households Cost - Burdened and with Housing Problems HHs at 0% to 30% of MFI 375 257 44 200 1 876 % with housing problems 67% 81% 77% 78% 74% • cost burden >30% 67% 79% 55% 78% 72% • cost burden >50% 39% 72% 23% 68% 54% HHs at 31% to 50% of MFI 430 329 64 173 996 % with housing problems 49% 77% 94% 69% 65% • cost burden >30% 49% 77% 70% 69% 63% • cost burden >50% 13% 42% 39% 49% 31% HHs at 51% to 80% of MFI 754 1,070 480 390 2,694 %with housing problems 28% 76% 73% 58% 59% • cost burden >30% 28% 73% 60% 58% 56% • cost burden >50% 8% 24% 15% 10% 16% HHs at 80% or more of MFI 1,885 7,645 1,399 2164 13 093 % with housing problems 10% 14% 26% 21% 16% • cost burden >30% 10% 12% 1 14% 19% 13% • cost burden >509. 2% 1 1% 1 0% 2% 1% Total owner households 3,444 1 9,301 1 1,987 1 2,927 1 17,659 % with housing problems 25% 25% 41% 33% 28% • cost burden >30% 25% 23% 1 28% 31% 25% • cost burden >50% 8% 7% 5% 10% 1 8% Notes: MFI is median family income. Housing problems include cost greater than 30% of income and /or overcrowding and /or without complete kitchen or plumbing facilities. Cost includes mortgage payment, taxes, insurance and utilities. Totals may vary slightly from census data. Source: HUD 2000 CHAS tables. Disproportionate Burden for Minority Owner Householders. As with renter households, discussed above, data showed that some minority populations are disproportionately burdened by housing problems. Both African American and Hispanic households (by race /ethnicity of householder) had more problems than the average for all households in Federal Way. Differences for African American householders (as with renters) were modest at lower income levels, with larger differences in burden (compared to all Page 151 DRAFT 11/8/11 households) at incomes above 80% of Median Income. Fifty two percent of African American households had housing problems compared to 36% for all Federal Way owner households. Hispanic owner households were also more cost burdened compared to all of Federal owner households. Overall 56% of Hispanic households had housing problems compared to 36% of all Federal Way owner households. The differences were at the higher income levels — 63% of Hispanic owner households earning between 51% and 80% of MFI had housing problems compared to 47% of all Federal Way households. Burdens at other income levels were comparable to the extent data were valid and available for comparison. Barriers to Affordable Housing The Washington State Growth Management Act (GMA) contains the following goal :36 Encourage the availability of affordable housing to all economic segments of the population of this state, promote a variety of residential densities and housing types, and encourage preservation of existing housing stock. Barriers to affordable housing in Federal Way, as in other substantially developed communities, are a combination of low household income relative to housing costs and utilities, costs of new development including available land and infrastructure, the existing patterns of development which may preclude affordable redevelopment and infill, a long history of commuting in the Puget Sound region between employment and housing, and the current lack of market incentives for development, particularly for lower -cost housing. Development in Federal Way initially grew around demand for housing and retail opportunities. Resulting zoning in some areas does not currently promote desired densities. The City is reviewing the possibility of modifications in some areas to encourage more residential development including changes to the definitions of density for conventional subdivisions which will increase the number of lots. The City is also seeking to promote more density, including multifamily development, in the City Center. The fact that the City is essentially "built out" requires innovative strategies to increase housing opportunity without changing the nature of existing neighborhoods. The City 35 This analysis is based on data contained in HUD - provided 2000 CHAS tables. 36 RCW 36.70A.020 37 City of Federal Way Comprehensive Plan. Page 152 DRAFT 11/8/11 promotes infill as part of its housing strategy. In addition to "cluster housing" which is already permitted, strategies that might be considered include accessory dwelling units, duplexes, cottage developments, and low- density multifamily structures. A significant barrier to housing development, particularly affordable housing, is cost. While the City has limited control over affordable housing development, it takes steps to boost affordable housing where possible. The City requires rental housing developments of 25 units or more to provide two units or 5% of the units (whichever is greater) to be affordable in exchange for one bonus market rate unit for each affordable unit included in the project and allows up to 10% increase in the number of units allowed in the underlying zoning district. The City provides an added incentive in the City Center in the form of a tax exemption to increase density and /or affordable units. Impediments to Fair Housing The federal Fair Housing Act prohibits discrimination in sales and rentals based on race, color, national origin, religion, sex, family status and disability. Washington State law further prevents discrimination on the basis of marital status, sexual orientation and military or honorable discharge veteran status. Federal Way will develop an Analysis of Impediments to Fair Housing as the City embarks on activities in 5 -year plan. Strategies will be outlined as a result of that analysis. In addition to specific strategies to be identified in the Analysis of Impediments, City staff will participate in fair housing training, display fair housing information, and support regional and local efforts to promote fair housing. HOUSING RESOURCES Housing assistance fot lower income households is provided primarily as rental assistance. The King County Housing Authority is a major provider, along with the Multi - Service Center and other partners in Federal Way. Assisted housing in Federal Way is shown in Table 32. In addition a number of Housing Choice Vouchers are being used in Federal Way. Federal Way Veteran's Housing is currently being developed in the City. Managed by the Multi- Service Center, this will provide 25 units of housing for single adults and families, along with support services. Page 153 DRAFT 11/8/11 Table 32: Assisted Affordable Housing in Federal Way Federal Way houses Public housing KCHA 1 3 3 Famil Evergreen Court Public housing KCHA 30 30 Family King's Court Public housing KCHA 30 30 Famil Southridge House Public housing KCHA 80 80 Elderly /disabled Campus Green Subsidized KCHA 15 15 Elderly Cove East Work force KCHA 190 190 Family Laurelwood Gardens Work force KCHA 91 91 Family Mariposa Park Tax credit 194 189 Meridian Court Tax credit SHAG 200 196 Elderly Mitchell Place Senior Res. Bond /CDBG MSC 50 50 Elderly /disabled Parkway Apartments Bond 203 84 Disabled West Hampton Tax credit 90 18 Willamette Court Apts. Bond SHAG 100 100 Elderly/disabled Woodside Apartments Bond 159 32 Federal Way duplexes Nonprofit Partner KCHA 4 4 Mentally ill MHHF Federal Way condos CDBG 10 10 Mentally ill AIDS Housing of WA CDBG 2 2 People with AIDS Oxford House CDBG 8 8 Recovering alcoholics Transitional housing CDBG 6 1 6 Homeless /DV victims Villa Capri Tax credit MSC 86 1 86 Families King County Housing Authority Public Housing and Project-Based Housing The King County Housing Authority (KCHA) operates 143 units of public housing in Federal Way in three developments — Evergreen Court, King's Court and Southridge House — and three units of single family housing in the same subdivision. In addition, there are 281 units of work force housing owned by the KCHA that are available to low and moderate income families. These units are held below market rate to provide affordable housing options. The KCHA also owns two duplexes which are leased to Sound Mental Health and provide housing for persons with mental illness along with case management. The KCHA will, if the application is approved, convert 63 units of public housing in Federal Way to project -based vouchers (Evergreen Court, Kings Court and the three scattered site houses). Existing tenants would receive Section 8 vouchers which could be used anywhere, or remain in their existing units. The conversion would allow the housing authority to provide a deeper subsidy and, at the same time, improve cash flow to avoid operating at the current loss. No additional units are planned for Federal Way at this time, although the KCHA is always looking for empty or distressed units near current properties. This would add to Page 154 DRAFT 11/8/11 the inventory of affordable housing and allow efficient management. There is no expectation that units will be lost in Federal Way. Recent improvements include the rehabilitation of the King's Court community room. In addition to the substantial improvements, new work stations were added (in partnership with the Boys and Girls Club) so that students would have space and equipment to study. Southridge House also benefitted from major renovation, including increased insulation as part of the exterior facade improvements. The public housing wait list is open continuously. Applicants have the choice of applying by region or by facility (specific site). Applicants typically wait from two to three years for an opening. Since wait lists are managed by building and region, the housing authority reports on that basis. Examples of people on the wait list for Federal Way properties are: • Federal Way houses (three scattered site): 40 families currently waiting • King's Court (30 units): 176 families waiting • Southridge (80 units): 126 elderly and 113 disabled waiting Housing Choice Vouchers One of the largest forms of subsidy is Housing Choice Vouchers which provide the opportunity for tenants to select housing in locations of their choosing. The King County Housing Authority currently has 9,876 vouchers, 1,263 of which were being used in Federal Way as of the end of September 2011. By far the largest number (estimated over 90 %) is used for households with incomes below 30% of Area Median Income (AMI). On average, families use Housing Choice Vouchers for about four years. It is up to families to use the vouchers within 120 days of issuance, although extensions are often granted to families with disabilities. The housing authority estimates that about 14% of households with vouchers are not able to find housing and return them unused. Barriers to moving include the inability to cover move -in costs, poor credit ratings, poor landlord history, criminal background and lack of units in many areas. Federal Way, however, has affordable units for many households with vouchers. The wait list for Housing Choice Vouchers was recently opened and slots filled by lottery. There were 24,063 applications, 1,477 of which were from Federal Way households. A total of 2,500 households were selected in the lottery for the new wait list, 166 from Federal Way. The King County Housing Authority also has two project -based properties in Federal Way totaling 13 units. One of the projects, with five units, serves homeless families. Page 155 DRAFT 11/8/11 King County Housing Authority Plan The King County Housing Authority is a Moving to Work (MTV) housing authority which is part of a program of innovation adopted by Congress in 1996. This gives housing authorities flexibility to implement locally- designed approaches to administer federal housing programs. MTV allows participating agencies to combine funding (public housing, capital and Section 8) under a single block -grant and allocate resources based on local need. This provides flexibility to leverage funds and provide subsidies at levels and locations of most need and promise. Program objectives are: • Increase housing choices for low- income families. • Provide incentives for families to become increasingly employed and economically self- sufficient. • Reduce costs and achieve greater cost effectiveness in federal expenditures. The KCHA has achieved recent acclaim reducing evictions dramatically among public housing recipients, resulting in avoidance of homelessness and significant cost - savings to the agency, not to mention extended savings to community and service providers should the families have become homeless. The program entails early intervention by Resident Services staff to review circumstances (and avoid errors), provide limited assistance and, if needed, link the household with partner agencies. Success with Public Housing tenants has resulted in testing the same approach with Housing Choice Voucher recipients. The KCHA has relationships with 25 agencies in King County to provide support services and housing. MTV allows greater flexibility in working with those partner agencies. One of the goals is appropriate location of housing and tenants to take advantage of opportunities (including education and employment) to move toward greater self- sufficiency. The current plan (2012 draft) calls for completion of necessary capital improvements to Public Housing communities and upgrading several Public Housing developments to ensure compliance with Section 504 of the Rehabilitation Act (meeting the goal of having at least 5% of units available to persons with disabilities). The upgrades include Southridge and Evergreen Court in Federal Way. 38 King County Housing Authority. (2011). MTWAnnual Plan FY2012, Draft August 2011. 39 Ibid. 40 National Alliance to End Homelessness. (2011). Promising Practices: King County Housing Authority Eviction Prevention Initiative, Solutions Brief, March 2011. Page 156 DRAFT 11/8/11 A "green retrofit" project (Green Communities) will increase energy efficiency and building envelope upgrades in 2012, including improvements to KCHA Federal Way Houses (scattered site Public Housing). The KCHA plans to remove 509 Public Housing units and replace the current subsidy stream with Section 8 Project -based assistance. This will provide continued assistance for eligible households and allow KCHA to leverage funds to ensure the units continue to be a resource in the communities. The conversion of Public Housing and contract -based Section 8 to project -based Section 8 subsidies meets the HUD goal of reducing the number of different rent subsidy programs. The Long Term Plan of the Housing Authority outlined below includes several strategic priorities which are aligned with or are supportive of the Federal Way Consolidated Plan goals, especially numbers 2, 3, 4, 5, and 7 at 1. Continue to strengthen the sustainability of its 8,000 affordable housing units. 2. Expand the number of units affordable to households <30% of area median through development and preservation. 3. Promote economic self - sufficiency by addressing barriers to employment and access training and education. 4. Provide expanded geographic choice for low- income households to locate in neighborhoods with quality services, mass transit and adjacent to the workplace. 5. Closely coordinate with the region's public and behavioral healthcare and human services to develop an adequate supply of supportive housing for chronically homeless and special needs populations. 6. Improve low- income neighborhoods through "place- centered" revitalization. 7. Promote the integration of new affordable housing into regional growth corridors aligned with mass transit nodes. 8. Expand partnerships with Public Health, Head Start, school districts, after - school providers, community colleges and the philanthropic community to improve educational and life outcomes for youth. 9. Develop institutional capacity to maximize the use of Federal resources. 41 King County Housing Authority. MTW Annual Plan FY2011. Page 157 DRAFT 11/8/11 HOMELESSNESS AND SPECIAL NEEDS HOMELESSNESS Causes of Homelessness Homelessness across the nation is a long- standing issue faced primarily by urbanized cities, such as Federal Way. Its root causes lay in poverty. When poverty is combined with the high cost of today's housing it becomes the primary recipe for homelessness. When severe illness /injury or family dysfunction is added, the results are generally predictable as support systems whither. The current economic recession, unemployment /underemployment only adds to the issues faced by families and individuals. Head injuries and post traumatic stress suffered by veterans of this decade's wars continue to contribute to homelessness. Finally, the severe cutbacks in safety net services and supports result in many who are at risk of homelessness losing their housing. National experts place the reasons for homelessness in three categories: Changing housing markets pricing people below poverty out of the market. Dwindling employment opportunities for people with minimal education. Removal of institutional supports. Discrimination in housing, along with local zoning restrictions. Limited education or skills training. Mental illness. Disability. Lack of family support or domestic abuse. Alcohol or drug abuse. Lack of housing guarantees. Lack of health care. Source: Burt, M.R. What Will it Take to End Homelessness? 2001. Washington, D.C.: Urban Institute. Homelessness in King County On a given night in the cities and unincorporated areas of South King County, people who lack adequate resources or have disabling conditions are found on the streets, in parks or in vehicles. Other, more fortunate persons find their way to one of the few beds that are available for homeless persons in shelters or transitional housing facilities in the area. Those at risk of falling into homelessness represent yet a much larger group — only an event away from falling into homelessness as a result of loss of housing or a job, illness, disability, domestic violence or family dysfunction. Page 158 DRAFT 11/8/11 Each year, a one -night point -in -time count of the homeless is conducted by nonprofit and government agencies, churches and other volunteers, covering large areas of the County in order to find homeless persons on the streets, in cars or in other places not meant for housing. The results of the 2011 count are shown below: Table 33: Point -in -Time Summary Seattle /King County Continuum of Care — January 2011 Households 1 192 1 831 1 0 1 17 1 1,040 Persons (adults & children) 1 668 1 2.770 1 0 1 50 1 3.488 Households 1 1,946 1 1,005 1 42 1 2,408 1 5,401 Persons (adults) 1 1.946 1 1.011 1 42 1 2.408 1 5.407 Households 1 15 1 21 1 0 1 34 70 Persons (age 17 or under) 1 15 1 28 1 0 1 34 77 Veterans 546 41 587 Severely mentally ill 585 585 Chronic substance abuse 710 710 Persons with HIV /AIDS 101 101 Victims of domestic violence 746 746 Unaccompa child (<18) 26 26 *In emergency shelters, transitional housing and safe havens A total of 2,492 persons were found homeless in the County the evening of January 28, 2011. Local officials use these results to establish a minimum floor of the actual number of homeless. Because of the fact that large areas of the county were not surveyed and many homeless become "invisible" in the nighttime hours, the actual number of homeless is significantly higher. Further, national experts are in agreement that the number homeless on a given night represents 20% to 25% of those who are homeless at some point in time during a year period. Homelessness in Federal Way The January 28, 2011 one -night homeless count found 124 unsheltered persons in Federal Way, representing 5% of the County total. Again, persons coordinating the count indicate that the amount found represents a fraction of the total amount actually homeless that night. The number found unsheltered in 2011 represented a 31% decline from the 2010 count. At the same time, a total of 133 more homeless persons were Page 159 DRAFT 11/8/11 housed in shelters and transitional housing facilities in Federal Way on that night for a total of 257 homeless persons. A large number of the unsheltered homeless were found living in cars and trucks (35), while another 27 were found in abandoned buildings or alcoves. While only seven were found in bushes, it is assumed that another large, uncounted population spent the evening in the City's parks or other wooded areas. Of the sheltered homeless in Federal Way (found on the one -night count in January 2011), 24 found their way to one of the two shelters in the community while the other 109 stayed in one of the five transitional housing programs. Only eight single persons were in sheltered or transitional housing on that night despite single men being a significant part of the homeless population. While there is an array of services in the City which provide essential services to the homeless and those at risk of homelessness, housing resources located in Federal Way are limited. The following table shows the bed capacity of shelters and transitional facilities in Federal Way. A total of 25 seasonal emergency shelter beds are available in two shelters and 149 transitional beds are available in six facilities. As homelessness knows no borders and is a regional issue, other facilities in South County also provide housing resources for persons becoming homeless in Federal Way. Table 34: Housing Resources for Homeless Persons in Federal Way Emergency shelter CCs Reach Out 9 Sin le men Emergency shelter CCs Reach Out 16 Single men Transitional housing MSC Villa Capri 15 HH w/c Transitional housing CCS FUSION 24 HH w/c Transitional housing Consejo Villa Esperanza 99 HH w /c; DV Transitional housing MSC Carpenter House 6 Single men Transitional housing MSC Horizon House 5 Single men Totals 1 25 1 149 Organizations: CCS- Catholic Community Services; Consejo- Consejo Counseling and Referral; MSC- Multi- Service Center. Target populations: HH w /c- households with children; DV- victims of domestic violence Needs of People Who Are Homeless Almost all persons who are homeless face more than one barrier to their return to self - sufficiency. As we have seen earlier, housing costs in Federal Way are unaffordable for a large segment of the population. Often, it is not just the cost of housing but past tenant history, tight housing markets or insufficient support systems that serve as barriers to obtaining housing. Persons with mental illness and /or substance abuse problems are Page 160 DRAFT 11/8/11 unable to function in much of the standard housing and need services to support their independent living. The US Department of Housing and Urban Development estimates that nationally about 35% to 40.00 of people who are homeless suffer from mental illness and approximately 30% of all single individuals have chronic substance abuse problems. Health counseling and substance abuse treatment and counseling are necessary as well as housing and supportive services for the victims of domestic violence. Case management services are generally necessary for all persons falling into homelessness to help them obtain benefits and services that will support them while they regain their independence. Persons Discharged from Institutions into Homelessness County homeless coordinators are working with the state and local medical institutions and clinics to plan and coordinate the release of individuals from institutions and foster care so that they do not simply become homeless. Corrections and hospital counselors are beginning to establish a process, in coordination with the Seattle /King County Continuum of Care and its member agencies, which includes early planning, counseling, assessment of needs and the availability of family and community support systems so they can be released into a stable situation. Where such support systems and housing are not available, coordination with local housing providers and homeless housing providers gives an opportunity for the released individual to integrate into the community with housing and services. For youth aging out of foster care, state programs provide short term housing and living assistance. While this program provides a benefit, it is far from adequate in a time when employment opportunities for youth are extremely competitive, if available at all, and housing remains unaffordable. Continuum of Care and Strategic Planning The Seattle /King County Committee to End Homelessness (CEH) serves as the primary homeless planning organization for the geographical area of King County. Its members represent a broad diversity of the agencies involved in homeless issues in the County and have established both geographical and local government representation on its Board. In response to a 2005 state mandate to prepare a 10 -year plan to end homelessness, the organization conducted a careful and extensive planning process to develop a plan, A Roof Over Every Bed in King County: Our Community's Ten -Year Plan to End Homelessness. Page 161 DRAFT 11/8/11 The King County Ten -Year Plan to End Homelessness establishes the following goals: • Prevent homelessness • Coordinate leadership and initiatives to end homelessness countywide • Build and sustain the political will and community support to end homelessness • Secure 9,500 units of housing for homeless persons • Deliver flexible culturally competent services to support stability and independence • Measure success and report on outcomes A great deal of progress has been made in implementing the detailed provisions of the plan. Providers in Federal Way have had a voice and have been involved in the process. In 2008, the CEH and United Way of King County partnered to sponsor an extensive community process to plan to resolve homelessness specifically in South King County. A committee of regional and local homeless providers and planners (including representatives from Federal Way) met to develop strategies for unique issues facing the homeless in the southern areas of the county. This effort was an extension of the countywide plan. The following is excerpted from the South King County Response to Homelessness —A Coll to Action and represents the vision and strategic plans that guide the effort to prevent and end homelessness in South King County. Guiding Principles of the South King County Action Plan: 1. Communication with key South King County and regional stakeholders is essential for obtaining input, identifying and building on a system of strengths, and developing the most cost - effective and efficient actions. 2. A critical element to success is effectively engaging and communicating with policy makers who can impact the net availability of both capital and operational resources. 3. There must be recognition of the fact that ending homelessness requires work across multiple systems and agencies; demands that new relationships be created to effect change; and necessitates ownership and implementation on a regional and countywide basis. 4. Homelessness can best be ended by engaging homeless populations in solutions for ending their homelessness while providing housing and services that are tailored to their specific needs. 5. The system of housing and services to prevent homelessness must reach out to those populations who are traditionally underserved. Page 162 DRAFT 11/8/11 Strategies to End Homelessness in South King County Eight primary strategies will be pursued to end homelessness in South King County consistent with the King County Plan to End Homelessness :41 1. Develop the political and community will to prevent and end homelessness. 2. Prevent homelessness by supporting local and regional plans to provide and maintain subsidized and private sector housing affordable to households with incomes below 30% of Area Median Income (AMI). 3. Build on existing promising programs in South King County, both geographically and quantitatively, to provide appropriate solutions for the unique needs of all cities in South County. 4. Provide services and support to prevent homelessness, rapidly re -house those who have lost their housing and increase permanent supportive housing resources to prevent and end chronic homelessness. 5. Create and maintain sufficient shelter and transitional capacity to meet the short-term needs of homeless individuals and families. 6. Prevent homelessness by supporting local and regional plans to provide and maintain a diversity of non - subsidized market housing affordable to households with incomes at 120% of Area Median Income (AMI) and below. 7. Support and identify ways to partner with local and regional initiatives to prevent and end homelessness. 8. Prevent homelessness by supporting local and regional plans to create and expand job training, job supports, and living wage jobs so that South King County employees are able to maintain their housing. PERSONS WITH SPECIAL NEEDS A significant number of people in the community require specialized services, support systems and /or housing assistance to be safe and live with maximum self - sufficiency and independence. Their needs vary and might be met with minimum efforts in the community, such as appropriate planning, project siting, and design standards for accommodations or accessibility. Families also provide a significant level of support for people with special needs, support which can be enhanced by respite services, day care, and training. Some people with special needs, because of type or severity of need, require ongoing case management and housing assistance. Those without personal or family resources are always at risk of being homeless without that support. 42 South King County Response to Homelessness: A Call for Action. Page 163 DRAFT 11/8/11 With reduced budgets and diminished public willingness to provide ongoing and reliable assistance to vulnerable populations, the growing demand for services is not being met. Nonessential services have been slashed by governments and nonprofit providers, and already lagging essential services are threatened. Frail Elderly The definition of frail elderly is more functional than age - specific. According to one source, the frail elderly are "...older persons (usually over the age of 75 years) who are afflicted with physical or mental disabilities that may interfere with the ability to independently perform activities of daily living.i The US census found that over half (52 %) of Federal Way seniors over the age of 75 had a disability that made it difficult to walk or perform other functions comfortably. In addition to physical and mental disabilities that can become incapacitating, seniors may become increasingly isolated from social networks, services and amenities. Anxiety and depression, which might not be recognized by family and neighbors, can arise from isolation, loss of a spouse or partner, effects of medication, and awareness of deteriorating health — including onset of dementia. Older adults are at the greatest risk of suicide and rates are continuing to grow in King County. The Seattle -King County Area Plan on Aging contains the following 5 goals: • Improve health care quality for older adults and adults with disabilities • Address basic needs • Improve health and well being • Increase independence for frail older persons and adults with disabilities • Promote aging readiness Persons with Disabilities The Seattle -King County Area Plan on Aging applies equally to people with disabilities in King County. Throughout, the goal is to promote healthy living and allow maximum independence and self- sufficiency. These can be enhanced by a number of steps, including: housing designed to accommodate mobility and safety; transportation that allows easy access to goods, services and recreation; options for healthy activities; and support for family and kinship caregivers. 43 Mosby's Dental Dictionary, 2 nd edition. "Aging and Disabilities Services (ADS). (2011). Area Pion on Aging — Seattle /King County Washington 2012 -2015 (draft). 45 Ibid. Page 164 DRAFT 11/8/11 The census defines disability as a long- lasting physical, mental, or emotional condition... that can make it difficult for a person to do activities such as walking, climbing stairs, dressing, bathing, learning, or remembering. This condition can also impede a person from being able to go outside the home alone or to work at a job or business. The following table shows the percent of the population with disabilities by age in 2000 The percent increased with age — dramatically among the population 75 and older. In Federal Way, 17% of the population between the ages of 21 and 64 had a disability according the census definition. That increased to 30% for people between the ages of 65 and 74 and then rose to over half of seniors aged 75 and older. Table 3S: Percent of Population with Disabilities 2000 16 to 20 17% 1 12% 1 15% 1 13% 1 10% 1 1235 1 13% 1 11% 1 12% 21 to 64 17% 16% 17% 16% 14% 15% 19% 17% 18% 65 to 74 30% 30% 30% 1 29% 28% 1 29% 34% 1 30% 32% 75 and up 51% 52% 52% 50% 52% 51% 53% 55% 54% Source: 2000 US Census. The percent of Hispanics between the ages of 21 and 64 (working age) with disabilities was higher in all jurisdictions shown in the table — 23% in Federal Way, 21% in King County, and 23% in Washington. Numbers for other races were too small to be reliably presented here. Employment by disability status for the population between the ages of 21 and 64 shows considerable disparity by disability status, some of which can be attributed to the ability to work. A lower percentage of women were employed — more so for those with disabilities than without. No disability 1 88% 1 Source: 2000 US Census. Nationally, median household income in 2010 for householders between the ages of 18 and 64 with a disability was less than 45% of median household income for 46 The 2000 census provided the most recent estimates of disability and employment at the local level. The American Community Survey included a question on disability beginning in 2008; 3 -year and 5 -year data will be available after 2011 will provide more current information. Page 165 Table 36: Percent of Population Ages 21 -64 Employed by Disability Status 2000 DRAFT 11/8/11 householders without a disability. Real median income declined between 2009 and 2010. The percent decline was greater for householders with a disability. During the same year, the percent of the population age 18 to 64 with a disability living in poverty and without health insurance rose more for people with a disability than for people without a disability. Income disparity adds to the challenge of finding suitable housing. The Washington State Plan for Independent Living notes four needs expressed at public forums: accessibility (physical, technological, location and programmatic); affordability; safety; and, education' These needs were mirrored in the Area Plan on Aging discussed in the section on frail elderly. An online questionnaire in early 2011 identified the most pressing needs: transportation, affordable health care, and housing. The already - limited support for persons with disabilities is threatened. For instance, the Disability Lifeline program in Washington State is ending at the end of October 2011. This program provided cash and medical benefits for persons who are physically and /or mentally incapacitated and unemployable. Persons with Developmental Disabilities Developmental disabilities include mental retardation, cerebral palsy, epilepsy, autism or other neurological condition that may impair intellectual functioning. These disabilities are expected to last a lifetime. The trend nationally and in the Washington has been to reduce institutionalization of persons with developmental disabilities, including large congregate settings. Instead, the focus is towards more independence and choice, which encourages opportunities for supported employment and living and self - directed services. Many people with developmental disabilities can be mostly or fully independent. Others, depending on the severity, require ongoing support, including case management, personal care assistance, live -in residential support, supported employment, guardianship, and payee services. State support for persons with developmental disabilities falls behind what is needed. As demonstrated earlier in this plan, income of persons with disabilities is significantly 47 DeNavas -Walt, C., B. Proctor, and J. Smith, U.S. Census Bureau, Current Population Reports, P60 -239, Income, Poverty, and Health Insurance Coverage in the United States: 2010, U.S. Government Printing Office, Washington, DC, 2011. 48 Washington State Plan for Independent Living 2011 -2013. 49 King County Consortium, Consolidated Housing and Community Development Plan 2010 -2012. Page 166 DRAFT 11/8/11 below median income. There are up to 108,062 individuals with developmental disabilities in Washington. Of these, over 37,000 have been determined eligible for disability services. More than one -third of those currently eligible receive no disability services so Washington does provide a cash subsidy for family support which comes in the form of payments or vouchers directly to families, but this is paid currently to only about 13% of families who are providing care. Family caregivers may also have reduced earning capacity themselves because of caregiving requirements. In addition, family caregivers are aging — 27% of persons with developmental disabilities were living at home with caregivers aged 60 and older. Persons with Mental Illness According to the King County Mental Health, Chemical Abuse and Dependency Services Division, 10% of King County residents below 200% of the federal poverty level have a chemical dependency and 15% have a serious mental illness. These are often dually diagnosed conditions. These individuals are overly represented in the criminal justice system, accounting for 2/3 of the highest utilizers in the King County jail system. Absence of mental health care resources often leaves local police having to make decisions to incarcerate individuals for their own safety. Almost half of King County's homeless have a serious mental illness or substance abuse disorder. Persons with mental illness, chemical dependency, or both, are often frequent visitors to hospital emergency rooms — a costly alternative to case management and ongoing preventive care. According to data provided by NAMI (National Alliance on Mental Illness) South King County, nearly 10% of the population is believed to have a mental disorder serious enough to interfere with normal activities. Half, and probably more than half, are never treated and, if treated, treatment begins after ten years or more of delay. That treatment is often inadequate. Reasons for non - treatment given by respondents to a 2005 national survey included the stigma associated with mental illness, lack of resources and limited government help. Children and youth are among the ranks of the mentally ill. The 1999 "Mental Health: A Report to the Surgeon General" indicated that upwards of one in five children has a so (www.ddc.wa.gov) si D. Braddock. (2011). Challenges in Developmental Disabilities Services in Washington State and the Unite States: 2011. (PowerPoint presentation can be found at www.ddc.wa.gov.) 52 www.kingcounty.gov/healthServices/MHSA) 53 National Comorbidity Survey Replication (NCS -R). Page 167 DRAFT 11/8/11 diagnosable mental illness, and 5% to 9% have a mental illness that results in "extreme functional impairment. " Veterans returning from recent wars in the Middle East have are among those suffering from mental health problems. Studies have shown that 17% of soldiers returning from the wars suffer from post- traumatic stress disorder (PTSD) and that one in six suffered from a variety of emotional problems and mental disabilities. The impact of untreated mental illness goes beyond the individual involved. The impacts on the community and systems have been described (emergency rooms, homelessness, criminal justice). The impact is also felt by family members, including children. One of the risk factors included as an Adverse Childhood Experience (ACE) is living with a family member experiencing mental illness. If a child experiences four or more of the factors on a list of risks (including forms of abuse, living in a home with domestic violence or substance abuse, among others), the child's own risk is increased, including depression and suicide. Persons with Chemical Dependencies Chemical dependencies occur across economic groups, as does mental illness and other needs described in this section. As has already been established, they often co- occur. Substance abuse is prevalent among chronically homeless persons. Parental substance abuse is a key risk factor for youth substance abuse. The effects on youth include not only increased risk of chemical dependency, but also exposure to family poverty, family crisis and dissolution, and domestic violence. In addition to the effect of chemical dependency and substance abuse on the individuals who are addicted and their families, the effects on the larger community are substantial. Assessment and treatment can offset considerable public expense. The Washington State Department of Social and Health Services looked at cost offsets and reductions in criminal justice recidivism for people on SSI who entered publicly- funded drug/alcohol treatment and found (among other findings) that for each person treated (compared to those untreated) 5 7 • Medical costs were lower by $311 /month. • Community psychiatric hospital costs were lower by $16 /month. • Nursing home care costs were lower by $56 /month. • The likelihood of arrest was lower by 16% and felony conviction lower by 34 %. 54 Washington State Department of Health, office of Maternal and Child Health. (2007). Children's Mental Health in Washington State: A Public Health Perspective Needs Assessment. 55 New England Journal of Medicine, July 1, 2005. 56 (www .aceresponse.org /thestudy.html) 57 Estee, S. and D. Nordlund. (2003). Washington State Supplemental Security Income (SSI) Cost Offset Pilot Project: 2002 Progress Report. Washington DSHS, Research and Data Analysis Division. Page 168 DRAFT 11/8/11 Victims of Domestic Violence Domestic violence is the willful intimidation, physical assault, battery, sexual assault, and /or other abusive behavior perpetrated by an intimate partner against another."" One in every four women will experience domestic violence in her lifetime; 85% of victims are women. In spite of prevalence, domestic violence is one of the most underreported crimes. Violence in the home impacts children and society. The cost of intimate partner violence exceeds $5.8 billion each year nationally, $4.1 billion of which is for direct medical and mental health services. Victims of intimate partner violence lost almost eight million days of paid work because of violence perpetrated against them by current or former husbands, boyfriends and dates. Victims of domestic violence need an array of services including emergency shelter, medical services, legal advocacy and crisis counseling in the short term. In the longer term, transitional housing, job training/retraining, child care, long -term counseling or support groups, and financial assistance may be required to help abused partners reestablish themselves after a separation. Leaving a violent home is difficult and fearful. Without a team of advocates, challenges may be too great for a successful transition. According to data from the Washington component of a national survey, there were 31 hotline calls every hour during the 24- hour period surveyed. Programs reported a critical shortage of funds and staff to meet needs, and are forced to turn away requests for services, including shelter. The number of people turned away is growing with increased demand and reduced resources. Persons with HIV /AIDS According to data from Public Health- Seattle /King County 60 there were 6,852 persons living with HIV, including AIDS, in King County. Most (79 %) were living in Seattle. HIV /AIDS is a disease increasingly affecting low- income, homeless and substance abusing persons. As a result, the traditional services required by those with HIV /AIDS — medical case management, insurance continuation, access to prescription drugs, respite and in -home care, and nursing home care — are extended to include emergency shelter and supportive housing, financial assistance, mental health case management, chemical dependency treatment and public assistance. ss National Coalition Against Domestic Violence, Domestic Violence Fads. 59 2010 National Census of Domestic Violence Services (24 -hour census) conducted by the National Network to end Domestic Violence. EO HIV /AIDS Monthly Surveillance Report, through August 2011. Page 169 DRAFT 11/8/11 Resources for People with Special Needs Overtime, a system of support has evolved to provide coordinated assistance to people with special needs. A coordinated system is essential to achieve efficiency and non - duplication in service delivery — both long -term and emergency services. Regional planning and agency cooperation has gone a long way toward this goal. However, declining resources and increasing poverty have increased demand well beyond the capacity of the service and housing network. Decline in basic supports, such as cutting "optional" Medicaid services, which pays for hospice, vision /dental care, and prescription drugs, may result in more expensive care requirements later. Without access to prevention and maintenance services — medical, case management, treatment — the demand for more expensive crisis intervention increases. Lack of support for basic programs has predictable consequences. Housing and supportive services for people with special needs is provided on a regional basis. Providers usually serve multiple cities and often more than one county. The resources shown below are primarily local to Federal Way, and may not include all resources available. • King County Housing Authority provides housing for low income seniors and people with disabilities. The KCHA also owns units that are leased out to agencies providing case management to individuals with mental illness, disabilities, and those with substance abuse issues. • SHAG (Senior Housing Assistance Group) has several buildings in Federal Way providing housing for seniors, including units set aside for low and very low income households. • South Sound Mental Health, Valley Cities Counseling, and the Multi- Service Center (MSC) provide case management in supportive housing. • MSC Long -Term Care Ombudsman Program (LTCOP) provides emergency assistance and ongoing advocacy for seniors and people with disabilities, including seniors living in adult family homes. • Building Changes (formerly AIDS Housing of Washington) leases two units of housing from the KCHA in Federal Way. • Multi- Service Center, serving many communities in King and Pierce counties, is located in Federal Way. The MSC provides an array of supportive services to clients with special needs. • Valley Cities Counseling provides mental health services, chemical dependency, domestic violence counseling and other support services in Federal Way and regionally. 61 Multi- Service Center. (2010). Multi - Service Center Community Needs Assessment. Page 170 DRAFT 11/8/11 COMMUNITY ECONOMIC REVITALIZATION BACKGROUND The City of Federal Way is a mature community with primary infrastructure, community facilities and economic framework in place. Yet as pointed out in the City's Comprehensive Plan, the ".....community has the ability to absorb a higher density (more compact) uses and greater development as growth in the Puget Sound region continues..... and much of its future will be tied to redevelopment and transformation. "' New jobs for its residents offering incomes adequate to fully participate in the region's economy will add to the tax base and encourage the choice to live near their place of employment. While employment opportunities at all scales are needed, jobs that improve the sufficiency of low- moderate - income households are a priority of this plan. The City can be characterized as primarily suburban. Retail shopping areas range from neighborhood level to region -wide in scope. The two office and business parks are of high quality and reflect the community's attunement to the environment by the attention to scale, and the integration of buildings and transit routes into the existing conifer canopy. Parks are abundant and well -used and the City boasts a system of trails and bike paths that link many neighborhoods. While there is promise of a connection with the regional Link rapid transit system that could positively alter its position in the region, it remains a distant potential, leaving Federal Way as an auto -based community serviced by a region -wide bus system. Its public infrastructure is capable of absorbing additional density and business expansion, provided transportation corridors are carefully planned to enhance traffic flow. The community's residential neighborhoods offer a diversity of housing — mostly single - family —often set in or near its many parks and forested areas. Within this backdrop, the Federal Way Comprehensive Plan outlines a vision of its economic development future. The expressed vision is to transform the City from a largely bedroom - community of Seattle into a diversified, full- service, and self- contained city.' To reach that vision, the community still has a variety of critical community development and economic development needs, including improvements to the infrastructure of its economic core and its many neighborhoods. Updates to the City's Comprehensive Plan provide much of the following summarized assessment of needs. ' Federal Way Comprehensive Plan, Revised 2008. ' Ibid. Page 171 DRAFT 11/8/11 FEDERAL WAY BUSINESS DISTRICTS City Center The City's business district includes a shopping mall, entertainment and eating establishments, community facilities and smaller boutique and specialty shops. It is located next to a major interchange of a major interstate highway between the State's largest and third largest cities. Yet it suffers from its image as a sprawling mixture of low -rise buildings, concrete parking lots and busy streets. As the "gateway" to the City, it is has little to attract travelers, commuters and vacationers. It lacks the full service and variety offered by several malls in the area — notably South Center to the north and the Tacoma Mall to the south — that would allow it to compete with those shopping centers. Limited cultural and recreational opportunities and co- located housing options are available that could make the Center a vibrant 24 -hour hub of activity and living. Other than travel by car and bus, it offers minimal connectivity with surrounding residential neighborhoods. The primary needs for improvement in the City Center fall into four areas: • Physical improvements would improve the attractiveness and human scale of the area, including landscaping to soften the visual impact of concrete, lanes of connectivity for pedestrian and bikers, improved transit safety, and pocket parks to serve as community gathering places. • Among the primary needs is business expansion and new retail or commercial growth to provide "living wage" jobs for low- and moderate - income persons. • Additional residential development, including high -rise residential and mixed used structures offering residential and commercial /retail space, would provide opportunities for residents to live and work nearby. • Cultural, conference and civic facilities that will create a cultural, entertainment, and dining district that will be year- around resident and tourist destination. Neighborhood Business Districts Federal Way has several small business districts that provide convenience to adjacent residential neighborhoods. Many are located along Pacific Highway South. Some are older, smaller shopping centers. Vacant properties have increased in number during the recent economic downturn. Thrift shops and other part-time or small start-up businesses have tended to fill vacant buildings. Page 172 DRAFT 11/8/11 Among the needs are facade improvements to small businesses, improved access and egress to parking areas, and landscaping to make the business areas more attractive. Potential small businesses or microenterprises that could provide jobs to low- and moderate - income persons need assistance for start-up or expansion. Related is the need for multi - family residential development near many of these neighborhood or strip mail business centers, particularly along the Pacific Highway South corridor. Such residential developments represent opportunities to build the customer base of nearby businesses that offer conveniences to the new residents. FEDERAL WAY NEIGHBORHOODS The City's neighborhoods provide a range of housing at various prices. While the majority of single family homes and some of its mobile homes are in good condition, many are in need of basic repairs, including roofs, porches, energy efficiency improvements and other repairs. Residents of many neighborhoods have well - landscaped parks and playgrounds and some are connected by trails. On the other hand, disabled persons have only limited opportunities to participate in the City's parks except those offering passive recreation. While most of the City's infrastructure is well - developed, there are pockets in neighborhoods where the basic infrastructure lacks adequate streets, curbs, gutters, lighting, sewer connections and drainage. The City has provided funding to assist in the improvement of its neighborhoods, including housing repair, parks and street improvements. Neighborhood and community centers have recently been added to provide both recreation and services to local residents. A limited supply of residential facilities meeting the needs of homeless persons is available in the community. Housing rehabilitation and weatherization are in great need, particularly for those homeowners with limited incomes. Rehabilitation assistance can result in reduced utilities and maintenance costs while home values may increase. Assistance with side sewer hook -ups as homes are connected to City sewer systems will be needed to prevent heavy financial burdens on low- and moderate - income homeowners. There are a few multi - family residential structures in deteriorated condition that require rehabilitation to resolve deferred maintenance and improve energy efficiency. New pocket parks in selected neighborhoods and improvements to neighborhood parks to make them places for community gatherings will enhance the livability of neighborhoods. There is currently no park that provides passive and active recreational opportunities for persons who are disabled. Page 173 DRAFT 11/8/11 NATIONAL OBJECTIVES Legislation passed by the U.S. Congress in 1974 creating the CDBG Program established as the primary goal of the program developing viable communities by providing: • Expanded economic opportunities • Decent housing • Suitable living environments The Federal statutes further required that each activity using CDBG resources must meet one of the following three primary national objectives: • Benefitting low- and moderate - income persons • Preventing or eliminating slums or blight • Meeting other urgent community needs posing a serious and immediate threat to health and safety Within these national program goals and objectives, each Entitlement Community is charged with developing (every five years) its own set of goals, strategies and objectives for use of program resources. As a new Entitlement Community, the City of Federal Way has developed, through a community planning process, a set of overarching goals and priorities which provide a broad framework for establishing strategic steps to achieve specific objectives. COMMUNITY PRIORITIES OVERARCHING GOALS As a result of research assessing the needs and resources of the community and the community consultation process, four clear goals — expressed as overarching goals — emerged. The following goals reflect the vision of the community and will serve as guides in the development of strategies to meet them: Page 174 DRAFT 11/8/11 • Create opportunities for a diverse employee base to live and work in Federal Way by increasing the connectivity of affordable housing and transportation linkages with employment centers. • Expand programs and activities which enhance the opportunity for low- and moderate - income persons to become more self- sufficient and to increase income to "livable wage" levels. • Consider the potential for stimulating jobs and economic development in the programming of all housing, public services, neighborhood improvement and public facilities activities. • Seek to provide safety net services for those populations with significant barriers until they are able to reach the goal of self - sufficiency. FIVE -YEAR GOALS AND STRATEGIES These overarching goals are consistent with HUD's national goals. The strategies and sub - strategies outlined below have been designed by the City to reach its goals. They also fit well under the three HUD goals. The strategies will drive the annual allocation of CDBG funds over the five -year period. Progress will be measured by performance in reaching anticipated targets on indicators and outcomes for each goal. GOAL 1: EXPAND ECONOMIC OPPORTUNITIES The community has a diversified economic base, a major shopping center at its core, a large working age population and quality housing for its working population. However, its residents travel long distances to their work. In addition, the City Center business district has not met its potential as a vibrant core, business districts have abnormally high vacancies, small businesses have been closing at high rates, high unemployment and underemployment face many of its citizens and the skills of its working population does not always match the needs of employers. To meet the challenges posed by these conditions and take advantage of the assets of the community, the following strategies will be pursued to expand economic opportunities in the City. Strategy 1A: Enrich /diversify City Center with a mix of residential and commercial uses supporting pedestrian, bicycle, and public transit vibrant public spaces, and cultural and civic activities that enliven the downtown and strengthen its economic foundation by retaining local business, attracting new business investment, and creating jobs. Page 175 DRAFT 11/8/11 1. Support the growth of businesses in the Civic Center which will provide livable wage jobs. 2. Develop the amenities and public infrastructure to provide connectivity between places of business and residential areas, including pocket parks and walkways /bikeways. 3. Support activities that result in enhancing the City Center as the gateway to the community and a regional destination. 4. Support mixed residential /commercial uses in and near the City Center. Strategy 113: Encourage the creation and growth of businesses. 1. Develop opportunities for the creation and growth of small businesses to spur job growth. 2. Support efforts to improve the viability of existing neighborhood business districts. 3. Assist businesses that either provide new employment opportunities for Federal Way residents or retain jobs in Federal Way. Strategy 1C: Increase opportunities for employment in jobs providing livable incomes. 1. Improve the technical and job retention skills of residents to match the needs of employers in a revitalized Federal Way business community. 2. Consider the goal of creating "living wage" jobs in all decisions affecting economic development. Strategy 1D: Promote an environment that is attractive to both establishing new businesses and expanding existing business to create jobs and strengthen the economic base of the community. 1. Develop a long -range economic revitalization plan for business development and job creation that is integrated with other City initiatives. Anticipated Outcomes /Indicators • 90 jobs created or retained for low- and moderate - income persons. Page 176 DRAFT 11/8/11 • 480 businesses helped to be established or stabilized that provide low- or moderate income persons with jobs, are owned by low- or moderate - income persons, or that serve low- and moderate - income neighborhoods. GOAL 2: PROVIDE DECENT AFFORDABLE HOUSING The housing stock of Federal Way includes a range of housing choices, including housing which is more affordable compared to most areas of the County. The housing stock is also newer than most areas of the county but is beginning to show signs of decay. While more affordable than many areas of the region, housing costs nevertheless present a burden on the primarily working class community. A total of 37% of its renter households pay more than 30% of their income for housing and 25% of its homeowners. The burden is heaviest on the lowest income renters and owners, persons with disabilities and the elderly. The number of persons at risk of losing their housing is rising and homelessness continues to face many in the community. Recent decreased values in single family homes have caused record foreclosure rates and pressures on homeowners, many of whom have deferred significant maintenance and improvements which affect the health, safety and livability of their homes. In addition, prospects for adding affordable renter housing are limited by continuing reductions in federal and state support for affordable low income housing. New multifamily development in the City is hampered by high land costs and limited areas available for development as well as recent stagnant private sector construction. While these conditions present challenges to the City's ability to maintain and improve its affordable housing stock, the City is committed to take strategic steps to achieve the goal of supporting affordable housing. Strategy 2A: Support homeownership focusing on programs to assist homeowners retain and maintain their homes, and offer new homeowner opportunities. 1. Assist homeowners maintain safe and standard housing through repairs and rehabilitation, maximizing the potential for hiring local contractors and local laborers to participate in the repair programs. 2. Support efforts to stabilize homeownership and prevent foreclosures. 3. Support programs expanding homeownership opportunities. Page 177 DRAFT 11/8/11 Strategy 26: Expand affordable rental housing. 1. Encourage development of affordable multifamily housing near parks, transportation and employment. 2. Focus resources on households most in need ( <50% of median income). 3. Preserve existing subsidized rental housing resources. 4. Coordinate with other entities to improve opportunities for increasing rental and homeowner affordable housing through organizations such as the County HOME consortium, 2163 funds, RHAP, NSP and Homesight. Strategy 2C: Provide adequate housing for homeless and special needs populations. 1. Retain existing homeless shelter and transitional housing programs. 2. Support "Housing First" options for persons at risk of homelessness and those who fall into homelessness. 3. Assure services provided are adequate to stabilize occupants of homeless facilities and special needs housing. 4. Support Fair Housing initiatives and conduct an Analysis of the Impediments to Fair Housing in Federal Way. Anticipated Outcomes /Indicators • 2,500 low- and moderate - income households benefitting from short-term rental assistance (non -CDBG assistance). • 81 low- and moderate - income households assisted to maintain their homes. • 14 low- and moderate - income households receiving assistance to become homeowners or retain their home (NSP funding assistance). • 200 homeless persons continuing to be housed (non -CDBG assistance). GOAL 3: ESTABLISH SUITABLE LIVING ENVIRONMENTS A suitable living environment has two facets — physical and human. In terms of the human needs, the City has a strong and collaborative group of nonprofit organizations providing a variety of services to those most in need, a City Council that is supportive of human services programs, a wide variety of cultural and linguistic groups, and strong community schools. These are assets that can help meet some of the many services needs of the community. These needs include growing number of individuals and Page 178 DRAFT 11/8/11 families with limited or no income, a lack of sufficient programs providing flexible services to meet the individual needs of persons at risk, a diminishing base of financial resources from the state and county for safety net services and insufficient program support to meet the needs of special populations such as persons with disabilities, homeless persons and the elderly. In terms of the physical assets of the community, the City boasts attractive residential neighborhoods, many located with views of surrounding mountains and the Sound, serviced by an array of parks, trails and community facilities. Its major thoroughfares are well - constructed and maintained and generally well - linked by transportation systems. Yet there remains a need for pocket parks and gathering points in the Civic Center and in key neighborhoods. In spite of the fact that many residential streets are properly developed and in good condition, some areas of the City are without adequate curbs, gutters, sidewalks (or traffic /pedestrian separators) and there are instances where street lighting and transit areas are in need of improvements to assure safety and accessibility. With this backdrop of needs, the City will take steps to implement the following strategies: Strategy 3A: Provide an array of services to households to help them on the path toward self - sufficiency. 1. Support development of regional human services solutions through networks of service and housing providers. 2. Encourage development and expansion of stabilizing wraparound services, including financial management and landlord tenant relations. 3. Provide assistance to promote strong family development, supporting parenting skills and early childhood skills. 4. Support activities that prepare youth for employment and assist them to be successful in the workplace. 5. Provide critical public services to special needs populations, including seniors and persons with disabilities. 6. Continue supportive services to persons entering the job market to assist them in becoming successful. Page 179 DRAFT 11/8/11 Strategy 3B: Provide a safety net of services to stabilize households who are in crisis or at risk. 1. Support a safety net of services for persons without the resources to meet their basic needs. 2. Work collaboratively toward the development of a centralized intake system, while considering the intake standards of existing service providers. 3. Seek to fill major housing and services gaps for low- and moderate - income persons. 4. Work cooperatively and strategically with local and regional networks and providers to reduce the impacts of emerging reductions to health care and mental health care. S. Support homelessness prevention solutions and activities providing flexible funding resources to prevent persons with disabilities and other at -risk populations from losing housing; and seek solutions to barriers faced by homeless single men or men with children in finding housing. Strategy 3C: Improve accessibility and use of existing and new City facilities. 1. Invest in development of pocket parks in the City Center and other key neighborhoods to increase connectivity and serve as community gathering centers. 2. Enhance existing playground equipment for accessibility by persons with disabilities and seek opportunities for designing a park specifically for use by persons with disabilities. 3. Maximize the use of parks and community facilities for social interaction and the delivery of services to residents. Strategy 3D: Construct public improvements to support community revitalization strategies. 1. Build a vibrant community through creation and support of facilities and activities throughout the City, including those supporting economic development and connectivity in the Civic Center and other neighborhoods. 2. Support community revitalization efforts in deteriorating neighborhoods and assure neighborhood streets are safe. Page 180 DRAFT 11/8/11 3. Work toward affordable residence -job transportation solutions for persons with limited incomes. Anticipated Outcomes /Indicators • 1,770 low- and moderate - income persons receiving safety net services and 80 receive self - sufficiency services. • 4 neighborhood capital and facility improvement activities serving low- moderate - income neighborhoods. ANTI - POVERTY PLAN The Federal Way Consolidated Plan focuses on meeting the needs of low- and moderate - income persons. Within that group are persons living in poverty, persons more vulnerable than other lower- income groups because of their extremely limited resources. Ten percent of Federal Way families live in poverty. The City's long -term goal is to reduce the percentage of families living in poverty and increase family independence. CDBG resources will be used for critical supportive services designed either to provide a safety net for families and individuals served so they can be stabilized or to help them to strengthen living skills and income to progress on the road out of poverty and into self - sufficiency. CDBG- funded public services will provide those supports and the housing repair /rehabilitation program will help stabilize families by decreasing housing costs and improving safety. Finally, the City's Economic Revitalization Fund will provide direct benefits to persons through job creation and potentially, through assistance to microenterprises owned by low- and moderate - income persons. Among the City's goals is the creation of jobs at livable wages. The City cannot accomplish the task of reducing poverty alone. Financial assistance from the federal, state and county sources will be critical to success. As important is the collaborative strength of the regional environment in which Federal Way operates. Coordination with the King County Housing Authority, a variety of nonprofit social services agencies, local educational institutions, faith -based organizations, and the surrounding cities and the County is essential. Finally, the City's many active volunteers will play a crucial role in the effort to reduce poverty in the community. LEAD -BASED PAINT HAZARDS STRATEGIES It is the City of Federal Way's goal to reduce the number of residential units in the City with lead -based paint hazards. The Federal Way Home Repair and Rehabilitation Program (HRRP) (and other residential rehabilitation activities the City may undertake) Page 181 DRAFT 11/8/11 will fully comply with the lead -based paint hazards requirements. In the design of the HRRP Program, the City will set standards and procedures to inspect and test properties as appropriate and develop a checklist for site inspections. This will apply to all residential units and homes constructed prior to 1978, as required. The City will utilize lead- certified contractors in inspection and rehabilitation programs. Homes testing positive for lead -based paint or identified as having lead hazards will be stabilized or abated consistent with HUD guidelines by certified contractors. The City will actively promote safe lead practices. PROMOTING FAIR HOUSING The City of Federal Way promotes fair housing practices and will remain a strong partner in regional efforts to build fairness into housing rental and purchase transactions. A first step will be completion of an Analysis of Impediments to Fair Housing, specific to Federal Way. City staff will participate in fair housing training and encourage ongoing training in the community. The City will provide information on fair housing to residents, and work with realtors and lenders to instill fair housing practices uniformly. With the completion of the Analysis of Impediments to Fair Housing in Federal Way, goals and strategies will be identified and incorporated into the Annual Action Plans. Progress will be monitored by the Department of Human Services and will be annually reported to HUD and the community. REMOVING BARRIERS TO AFFORDABLE HOUSING The City of Federal Way promotes increased opportunities for a range of housing choices and costs to meet diverse needs. This includes promotion of higher densities, particularly in areas close to transit and amenities, such as those available in retail centers. The City offers an affordable housing density bonus for development throughout the City requiring rental housing developments of 25 units or more to provide affordable housing units in exchange for allowing additional units. The incentive in the City Center includes a tax exemption which encourages both density and affordability. The City is reviewing the possibility of modifications in some areas to encourage more residential development, including changes to the definitions of density for conventional subdivisions which will increase the number of lots. Even with the absence of vacant available land, the City continues to promote infill as part of its housing strategy. In addition to "cluster housing' which is already permitted, the City is considering additional strategies to increase affordable housing options. Page 182 DRAFT 11/8/11 APPENDIX A: GLOSSARY Affordable Housing Housing for which the occupant is paying no more than 30% of gross income for housing costs, including utilities. HIV /AIDS The disease of human immunodeficiency virus /acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome. Assisted Housing Owner - occupied or rental housing subject to restrictions on rents or sale prices due to the requirements of public funds provided as grants, loans, or rent subsidies, including Section 8 Housing Choice Vouchers. Cost Burden The extent to which housing costs, including utility costs, exceed 30% of gross income. If housing costs, including utilities exceed 50% of gross income, cost burden is considered severe. Elderly Person HUD defines as a person who is at least 62 years of age as eligible for housing programs intended for the elderly. Extremely Low- Income A person or family whose income does not exceed 30% of the median income for the area. Family A family is a self - defined group of people who may live together on a regular basis and who have a close, long -term, committed relationship, and share or are responsible for the common necessities of life. Family members may include adult partners, dependent elders or children, as well as people related by blood or marriage. Fair Housing Act The federal Fair Housing Act protects all citizens from discrimination on the basis of race, color national origin, religion, sex, handicap or familial status (families with children under the age of 18 living with parents or legal guardians; pregnant women and people trying to get custody of children under 18). Homeless Person HUD considers a person homeless if he /she is sleeping in places not fit for humans to live (on the streets, in cars, in parks, etc.), or sleeping in homeless shelters, or about to sleep in one of the above places because they are being evicted /discharged, have no other place to sleep and have no resources and support with which to obtain housing. The Committee to End Homelessness in King County recognizes that prevention is a critical part of the continuum of care and includes people living in overcrowded situations, couch surfing, or have a place to sleep at night but are at high risk of becoming homeless. Homeless Youth A person between the ages of 12 and 17 who is without stable housing with a parent, relative, foster parent or state contracted placement. Page 183 DRAFT 11/8/11 Households One or more persons occupying a housing unit (Census definition). Housing Problems Households with housing problems include those that (1) occupy units lacking complete kitchen and plumbing facilities; (2) occupy units that meet the definition of overcrowded; or (3) have housing cost burden greater than 30% of household income. Housing Unit Defined by the US Census as a house, apartment, mobile home or trailer, a group of rooms, or a single room intended for occupancy as separate living quarters. HUD US Department of Housing and Urban Development. Human Services The particular services identified for vulnerable populations which typically include transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services to prevent loss of housing, premature institutionalization and assist individuals to continue living independently. Income Guidelines Maximum income limits published periodically by HUD which are used to determine the eligibility of households for assistance through HUD - administered programs. Guidelines are for households of various sizes by income category. Lead -based Paint Hazard Any condition that causes exposure to lead from lead- contaminated dust, lead- contaminated soil, and lead- contaminated paint that is deteriorated or present on accessible surfaces, friction surfaces, or impact surfaces that would result in adverse human health effects as established by the appropriate Federal agency. LIHTC The federal Low Income Housing Tax Credit was created by the Tax Reform Act of 1986. The program is the primary affordable housing production program in the U.S. It gives states authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower- income households. Low Income A person or family whose income does not exceed 80% of the median income for the area, as determined by HUD, with adjustments for smaller or larger families. Mental Illness A serious and persistent mental or emotional impairment that significantly limits a person's ability to live independently. Moderate Income Households whose incomes are between 81% and 95% of median income for the area, as determined by HUD, with adjustments for smaller or larger families. Neighborhood A comprehensive approach to address economic development Revitalization Strategy needs in particular neighborhoods. Persons with Special People needing special supportive services in order to be able to Needs live independently and function in the community. Overcrowded Housing The US Census defines an overcrowded housing unit as one that contains more than one person per room. Owner - occupied The Census defines as a unit in which the owner or co -owner lives in the unit even if it is mortgaged or not fully paid for. Page 184 DRAFT 11/8/11 Person with Disabilities A person who is determined to: 1) Have a physical, mental or emotional impairment that: is expected to be of long- continued and indefinite duration, substantially impedes his or her ability to live independently, and is of such a nature that the ability could be improved by more suitable housing conditions; or 2) have a developmental disability, as defined in the Developmental Disabilities Assistance and Bill of Rights Act; or 3) be the surviving member or members of any family that had been living in an assisted unit with the deceased member of the family who had a disability at the time of his or her death. Poverty Level The Census Bureau uses a set of money income thresholds that vary by family size and composition to detect who is poor. If the total income for a family or unrelated individual falls below the relevant poverty threshold, then the family or unrelated individual is classified as being "below the poverty level." Rental Assistance Rental assistance payments provided as either project- or tenant - based rental assistance. Tenant -based rental assistance is provided to a rental property owner on behalf of the tenant and, should the tenant move, the rental assistance stays with the tenant and can be used in a different unit. Project -based rental assistance is provided for a project, not for a specific tenant. Tenants receiving project - based rental assistance give up the right to that assistance upon moving from the project. Renter - occupied The US Census defines owner - occupied as units which are not owner occupied, whether they are rented for cash rent or occupied without payment of cash rent. Senior Household For HUD rental programs, a one or two person household in which the head of the household or spouse is at least 62 years of age. Sheltered Persons Families and individuals whose primary nighttime residence is a supervised publicly or privately operated shelter, including emergency shelters, domestic violence shelters, residential shelters for runaway and homeless youth, and any hotel /motel /apartment voucher arrangement paid because the person is homeless. This term does not include persons living doubled up or in overcrowded or substandard conventional housing. Subsidized Rental Assisted housing that receives or has received project -based Housing governmental assistance (whether for capital or operating costs) and is rented to, or held for rent exclusively for, low- or moderate - income households as determined at the time of initial occupancy. Supportive Housing Housing (individual units or group quarters) that includes supportive services. Supportive Services Services provided for the purpose of facilitating personal independence and self- sufficiency. Examples are case management, medical or psychological counseling and supervision, childcare, transportation, and job training. Page 185 DRAFT 11/8/11 TANF Temporary Assistance to Needy Families created by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 which replaced the old welfare system with a new program, Temporary Assistance to Needy Families (TANF), designed to focus on work and responsibility. Transitional Housing A project that is designed to provide housing and appropriate supportive services to homeless persons to facilitate movement into a permanent housing situation. People typically stay in transitional housing for between six months and two years. Very Low - Income I Individuals and families whose incomes do not exceed 50% of median income for the area. Page 186 COUNCIL MEETING DATE: November 15, 2011 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: THE CITY OF FEDERAL WAY 2012 ANNUAL ACTION PLAN POLICY QUESTION Should the City approve the City of Federal Way 2012 Annual Action Plan COMMITTEE: NA MEETING DATE: CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other STAFF REPORT B Bry ant En .&e DEPT: Mayor's Office Background: To receive its annual CDBG entitlement grant, the City of Federal Way is required to prepare both a Five -Year Consolidated and an Annual Action Plan. These plans represent a strategy and goals for use of the HUD grants. The plans must meet federal requirements under the Housing and Community Development Act of 1974. All projected use of funds must be determined eligible in accordance with federal regulations. The general purpose of the HUD grants for which these plans were developed is to provide decent housing, establish and maintain a suitable living environment, and expand economic opportunities for all residents, particularly low and moderate income persons. The 2012 Annual Action Plan identifies activities to be funded and implemented during 2012. These plans meet federal requirements. The Annual Action Plan, along with the Consolidated Plan, will be submitted to HUD as the City of Federal Way's application for federal funds. Annual Action Plan Summary The purpose of the City of Federal Way's Human Services Department is to support economic development, community revitalization, and human services on behalf of residents and neighborhoods most in need, through effective projects which serve the largest number of people possible. The following activities will take place in 2012 to benefit low- and moderate- income households in Federal Way: Community Economic Revitalization Program Action Steps: The City will continue to work toward the development of a cultural civic center and new mixed use (residential/commercial) developments in the Federal Way downtown area. The City will work with property owners (both current and potential) with the objective of revitalizing the City Center. Activities include meeting with the business community to discuss plan and potential improvements; undertaking a marketing campaign in concert with the Chamber of Commerce to attract new business and residential development; and, assessing the potential for a Section 108 Loan to create jobs for low- and moderate - income persons and business development. Establish a new Business Development Loan Program and Micro - Enterprise Assistance Program. The Business Development Loan Program will provide loans and assistance to: 1) businesses in the community who are willing to expand; and 2) businesses willing to locate in the City. In both cases, the funds would only be provided to businesses willing to make new jobs available to low- and moderate - income persons. In addition, the City will provide assistance to retain jobs currently held by low- and moderate - income persons in cases where those jobs would be lost if not for the assistance. The assistance may include public improvements which are in support of the business development. ($300,000 CDBG) The Micro - Enterprise Assistance Program will provide assistance to small businesses owned (or to be owned) by persons who are low- and moderate - income and to businesses which serve neighborhoods which are primarily low- and moderate - income. This type of assistance includes financial support, general support, facade improvements and training/technical assistance. ($100,000 CDBG) Resources: $400,000 CDBG Anticipated Outcomes: 10 jobs created or retained for low- and moderate - income persons 96 businesses owned by low- and moderate - income persons assisted Essential Public Services Program (Self - sufficiency and Safety Net) Action Steps (Self - sufficiency): Assistance to nonprofit organizations that will provide key services to promote the self - sufficiency of individuals and households will be provided to the following programs: Orion Industries Rehabilitation Services: The program will provide education, skills training, career exploration, employment and job placement assistancelpost placement follow -up to Federal Way residents with disabilities and significant barriers to employment. ($17,974) Highline Community College Inclusion Program: The various activities of this program help educate participants, foster social interactions, and focus on a healthy lifestyle. This program helps participants with very important life skills, such as job development and living on their own. The program collaborates with local organizations, such as the Kiwanis Club and Federal Way Public Schools giving participants the opportunity to be involved with the community in a positive way and to be seen in different aspects within our community. ($26,000) Resources: $43,974 CDBG Anticipated Outcomes: 155 low- and moderate - income persons will receive self - sufficiency services. Action Steps (Safety Net): Provide a safety net of services to households that are in crisis or at risk through support of programs operated by community based non - profit organizations operating the following programs: Federal Way Emergency Feeding Program: The Multi- Service Center will provide food that addresses the special dietary needs of adults, infants and children in emergency hunger situations and makes diapers available to clients. ($8,002 CDBG) Federal Way Senior Center Adult Day Care: The program will provide adult daycare for low- and moderate - income senior citizens experiencing dementia/Alzheimer disease and other limitations. ($16,993 CDBG) Federal Way PACT (Parents and Children Together): The program will provide in -home counseling, skill building and support services to high risk children and their families in the City of Federal Way. ($17,620 CDBG) HealthPoint Federal Way Dental Access: HealthPoint will provide 80 dental visits for 27 unduplicated persons. This project will help to partially meet the need for dental services for low- and moderate - income Federal Way residents. ($11,549) Resources: $53,804 CDBG Anticipated Outcomes: 365 low- and moderate - income persons will receive safety net services. Federal Way Home Repair and Rehabilitation Program Action Steps: Develop the standards and procedures for a program to repair single - family housing. The funds will assist homeowners to make needed repairs and improvements and resolve health and safety issues including lead - based paint hazards. ($150,000 CDBG) Support the activities of the NSP Program operating in the Westway Neighborhood which provides assistance to low- and moderate - income households to purchase rehabilitated homes which had been in foreclosure. ($797,000 NSP3) Resources: $150,000 CDBG $797,000 NSP3 Anticipated Outcomes: 9 homes repaired (CDBG) 3 low- and moderate - income homeowners assisted (NSP3) Fair Housing Activities Action Steps: An Analysis of the Impediments to Fair Housing will be prepared in 2012. The Analysis will involve research, key informant interviews, an assessment of the barriers to fair housing and propose actions by the community. Anticipated Outcomes: The City will have a full analysis of existing impediments to fair housing and a series of recommended action steps to be following in assuring fair housing in the community. CDBG Administration Action Steps: Provide CDBG program administration/coordination and project monitoring during the first program year. Anticipated Outcomes: Ensure that all activity is eligible in accordance with federal regulations and information is timely and properly reported. Resources: $ 130,370 Amendments to the Annual Action Plan The City will amend this Annual Action Plan whenever a substantial change is anticipated. A "substantial amendment" is defined as any proposed change in the use of CDBG funds that exceeds 20% of the total amount annually provided by HUD for each program. In addition, the following changes will also be considered "substantial amendments" to the program requiring an opportunity for public comment: • Change in the beneficiaries of the activities • Change in the general location of activities • Change in the purpose or scope of an activity or the addition or deletion of an activity All amendments to the Annual Action Plan will be preceded by appropriate public notice and public comment periods, as required by federal regulations regarding change in use of funds. Attachments: Exhibit A: City of Federal Way 2012 Annual Action Plan Options Considered: 1. Approve the City of Federal Way 2012 Annual Action Plan. 2. Not approve the City of Federal Way 2012 Annual Action Plan and provide staff alternate direction. MAYOR'S RECOMMENDATION: Approve the City of Federal Way 2012 Annual Action Plan. MAYOR APPROVAL: / A V DIRECTOR APPROVAL: 2 Committee COUP Committee Council COMMITTEE RECOMMENDATION: NA Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: We move approval of the City of Federal Way 2012 Annual Action Plan. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED— 08/12/2010 RESOLUTION # LS%w6& i ,11► • THE CITY OF FEDERAL WAY ANNUAL ACTION PLAN 2012 DRAFT November 8, 2011 DRAFT 11/8/11 PURPOSE OF THE CONSOLIDATED PLAN The following describes the actions to be taken by the City of Federal Way in implementing the goals and strategies outlined in the 2012 -2016 Federal Way Consolidated Plan. The 2012 Annual Action Plan described below will be the first undertaken by the City as a direct recipient of Community Development Block Grant Funds provided by the US Department of Housing and Urban Development. It represents an opportunity to address activities high on the City's priorities. The 2012 Plan will focus on meeting the needs of low- and moderate - income households through job creation and business development activities, assistance to homeowners to improve their homes and providing critical supportive services to persons most in need. EXECUTIVE SUMMARY GOALS AND STRATEGIES Activities planned for 2012 will work toward achieving the proposed outcomes in each of the major Goals of the Consolidated Plan. The specific strategies from the Consolidated Plan that will be pursued in 2012 are listed below under each Goal. Goal 1: Expand Economic Opportunities Strategy 1A: Enrich /diversify City Center with a mix of residential and commercial uses supporting pedestrian, bicycle, and public transit vibrant public spaces, and cultural and civic activities that enliven the downtown and strengthen its economic foundation by retaining local business, attracting new business investment, and creating jobs. Strategy 1B: Encourage the creation and growth of businesses. Strategy 1C: Increase opportunities for employment in jobs providing livable incomes. Page 11 DRAFT 11/8/11 Strategy 11): Promote an environment that is attractive to both establishing new businesses and expanding existing business to create jobs and strengthen the economic base of the community. Goal 2: Provide Decent Affordable Housing Strategy 2A: Support homeownership focusing on programs to assist homeowners to retain and maintain their homes, and offer new homeowner opportunities. Goal 3: Establish Suitable Living Environments Strategy 3A: Provide an array of services to households to help them on the path toward self - sufficiency. Strategy 36: Provide a safety net of services to stabilize households who are in crisis or at risk. PAST PERFORMANCE The City has been able to meet the needs of many low- and moderate - income households through its past involvement as a member of the King County CDBG Consortium. Activities implemented under that arrangement have succeeded in 1) meeting the needs of homeowners through its housing repair programs; 2) providing much needed services to help households to regain stability; and, 3) providing facilities and improvements to improve the quality of life. The City looks forward to achieving even more as a direct grantee of HUD funds under this Annual Plan. CONSULTATION AND CITIZEN PARTICIPATION Consultation and citizen participation are critical elements of the plan. Early in the planning process, the City created the Citizen Participation Plan for the City of Federal Way Consolidated Plan to guide the process, provide opportunities for citizen involvement throughout the development of the Plan, and provide input for the implementation and program evaluation phases in future years. During the process of developing the Plan, key organizations (both public and private) were consulted and local planning groups participated in providing input on needs and proposed strategies. The City conducted outreach to organizations representing low- and moderate - income households, minority and cultural groups and disabled populations to learn their needs and priorities. Page 12 DRAFT 11/8/11 Citizen comments on the Draft 2012 Action Plan: (INCLUDE COMMENTS made on the draft plan during the public comment period /city response following completion of the period.) SOURCES OF AVAILABLE FUNDS During the 2012 year the following resources are anticipated to be available for program activities (amounts are in $1,000s): CDBG Ann ual Entitlement $652 Reprogrammed CDBG Funds $323 Estimated CDBG Program Income $0 Total COBG Resources $975 OTHER POTENTIAL RESOURCES Section 108 Loan (under consideration) $0 NSP3 Grant $797 Estimated NSP Mortgage Payments $0 City Human Services General Fund $516 HOME* s0 Emergency Solutions Grant* $0 Total Resources $2,288 Funding in $1,000s. *King County resources; amounts for projects in Federal Way unknown. The amount of private funds leveraged during the first year will depend a great deal on the individual loans the City will approve under the business loan programs. As this is the first year that the City will operate the program, the amounts are unknown. DESCRIPTION OF ACTIVITIES The following activities will take place during the first year to benefit low- moderate- income households in Federal Way: COMMUNITY ECONOMIC REVITALIZATION PROGRAM To implement the Consolidated Plan's economic development and job creation strategies, the City will launch a new Economic Development Loan Program. The program will be specifically directed toward providing assistance to businesses that will commit to creating new jobs for low -and moderate - income persons or preventing the loss of jobs for low- and moderate - income persons. Assistance to businesses that are owned by low -and moderate - income persons or provide services to low- and moderate - income neighborhoods may also be considered for assistance. Page 13 DRAFT 11/8/11 The following strategies from the 2012 -2016 Federal Way Consolidated Plan will be employed to expand economic opportunities in the community during the 2012 Program Year: Strategy 1A: Enrich /diversify City Center with a mix of residential and commercial uses supporting pedestrian, bicycle, and public transit vibrant public spaces, and cultural and civic activities that enliven the downtown and strengthen its economic foundation by retaining local business, attracting new business investment, and creating jobs. Action Steps: The City will continue to work toward the development of a cultural civic center and new mixed use (residential /commercial) developments in the Federal Way downtown area. The City will work with property and business owners (both current and potential) with the objective of revitalizing the City Center. Activities include meeting with the business community to discuss plans and potential improvements; undertaking a marketing campaign in concert with the Chamber of Commerce to attract new businesses and residential development; and, assessing the potential for a Section 108 Loan to create jobs for low- and moderate - income persons and business development. Resources: Human resources only — no specific funding required. Strategy 113: Encourage the creation and growth of businesses. Action Steps: Establish a new Business Development Loan Program and Micro - Enterprise Assistance Program. The Business Development Loan Program will provide loans and assistance to: 1) businesses in the community who are willing to expand; and 2) businesses willing to locate in the City. In both cases, the funds would only be provided to businesses willing to make new jobs available to low- and moderate income persons. In addition, the City will provide assistance to retain jobs currently held by low- and moderate income persons in cases where those jobs would be lost if not for the assistance. The assistance may include public improvements which are in support of the business development. The Micro - Enterprise Assistance Program will provide assistance to small businesses owned (or to be owned) by persons who are low- and moderate - income and to businesses which serve neighborhoods which are primarily low- and moderate - income. This type of assistance can includes financial support, general support, facade improvements and training/technical assistance. Page 14 DRAFT 11/8/11 Resources: $400,000 CDBG Strategy 1C: Increase opportunities for employment in jobs providing livable incomes. Action Steps: See above. Resources: See above. Anticipated Outcomes: • 10 jobs created or retained for low- and moderate - income persons • 96 businesses owned by low- and moderate - income persons assisted ESSENTIAL PUBLIC SERVICES To assist low- and moderate - income families and individuals to become more self - sufficient and to provide a safety net for persons in crisis, the following Five -Year Strategies will be employed: Strategy 3A: Provide an array of services to households to help them on the path toward self - sufficiency. Action Steps: Assistance to nonprofit organizations that will provide key services to promote the self - sufficiency of individuals and households will be provided to the following programs: Federal Way Emergency Feeding Program: The Multi- Service Center will provide food that addresses the special dietary needs of adults, infants and children in emergency hunger situations and makes diapers available to clients. ($7,267 CDBG) Orion Industries Rehabilitation Services: The program will provide education, skills training, career exploration, employment and job placement assistance /post placement follow -up to Federal Way residents with disabilities and significant barriers to employment. ($16,323 CDBG) Resources: $23,590 CDBG Anticipated Outcomes: • 311 low- and moderate - income persons will receive safety net services Page 15 DRAFT 11/8/11 Strategy 36: Provide a safety net of services to stabilize households who are in crisis or at risk. Action Steps: Provide a safety net of services to households that are in crisis or at risk through support of programs operated by community based non - profit organizations operating the following programs: Federal Way Senior CenterAdult Day Care: CDBG funds will provide adult daycare for low- and moderate - income senior citizens experiencing dementia /Alzheimer disease and other limitations. ($15,432 CDBG) Federal Way PACT (Parents and Children Together): The program will provide in- home counseling, skill building, and support services to high risk children and their families in the City of Federal Way. ($15,674 CDBG) HealthPoint Federal Way Dental Access CDBG funds will provide 80 dental visits for 27 unduplicated persons. This project will help to partially meet the need for dental services for low- to moderate - income Federal Way residents. ($10,488 CDBG) Resources: $41,594 CDBG Anticipated Outcomes: • 59 low- and moderate - income persons will receive self - sufficiency services FEDERAL WAY HOME REPAIR AND REHABILITATION PROGRAM To assist low- and moderate - income homeowners to preserve their investment in the homes and the neighborhood, the City will initiate a new housing repair and rehabilitation program. The program will support the following goals of the Five -Year Consolidated Plan: Strategy 2A: Support homeownership focusing on programs to assist homeowners to retain and maintain their homes, and offer new homeowner opportunities. Action Steps: Develop the standards and procedures for a program to repair single - family housing. The funds will assist homeowners to make needed repairs and improvements and resolve health and safety issues including lead -based paint hazards. Continue to support the activities of the NSP Program operating in the Westway Neighborhood which provides assistance to low- and moderate - income households to purchase rehabilitated homes which had been in foreclosure. Page 16 DRAFT 11/8/11 Resources: $130,370 CDBG, $797,000 NSP3 Anticipated Outcomes: • 9 homes rehabilitated (CDBG) • 3 low- and moderate - income homeowners assisted (NSP3) FAIR HOUSING ACTIVITIES The City supports full choice of all persons in purchasing and renting housing. To support the Fair Housing strategies of the Consolidated Plan, the City will take the following action: Action Steps: An Analysis of the Impediments to Fair Housing will be prepared during the 2012 year. The Analysis will involve research, key informant interviews, an assessment of the barriers to fair housing and propose actions by the community. Anticipated Outcomes: • The City will have a full analysis of existing impediments to fair housing and a series of recommended action steps to be following in assuring fair housing in the community. ALLOCATION PRIORITIES The City has chosen to allocate its first program year funds as an Entitlement Community to activities which have the potential of creating jobs /expanding business opportunities, preserving housing and providing a safety net for persons at risk or in need of supports. In 2012,100% of the available funds will be to provide assistance to persons who are low- and moderate - income. The City's highest priority in the 2012 year is to expand the local economy by create or retain jobs for Federal Way low- and moderate - income residents while stimulating business growth. Almost half of available resources were allocated to the Community Revitalization Program consisting of the Economic Development Loan Program and the Micro - Enterprise Assistance Program. The second largest allocation was made to assure that the community's housing stock was preserved and low- and moderate - income households received the benefit of energy improvements to their homes. All units assisted with CDBG housing rehabilitation assistance will be inspected to assure that code violations are resolved. The City allocated most of the rest of resources to public services activities that have proven track records in meeting the needs of low- and Page 17 DRAFT 11/8/11 moderate - income households. Finally, reprogrammed funds received from the King County Consortium have been set aside as uncommitted funds to be distributed to eligible CDBG activities at a later date. While the NSP3 project is geographically focused in the Westway Neighborhood, most of the first year CDBG Program activities are community -wide or are public services offered at specific locations of the nonprofit service providers. It has not yet been determined if the City's new housing rehabilitation program will have a geographical focus. At this point no CDBG funds are targeted to specific areas of the community. The City has not established any specific affordable housing goals for the current year as the housing rehabilitation program has not yet been designed. 2012 ACTIONS TO IMPLEMENT ANTI - POVERTY STRATEGIES The City's long -term goal is to reduce the percentage of families living in poverty and increase family independence. The Human Services staff and the Human Services Commission will continue to work toward meeting this goal and focus on the needs of the most needy through the coordination of resources and coordination with nonprofit service providers and volunteer organizations. The allocation of CDBG funds will support these efforts. Funded activities in the first year which focus on those in poverty are each of the five CDBG- funded public services projects. Two projects are designed specifically to serve as a safety net, while the other three help sustain households they serve through supportive services. COORDINATION ON PUBLIC HOUSING ACTIVITIES While the City does not have a Housing Authority, continued coordination will occur with the King County Housing Authority which serves the community. The City will consult with the Housing Authority on the potential for additional Section 8 Vouchers for South King County. The Housing Authority is not listed as a troubled agency by HUD. HOMELESS /SPECIAL NEEDS POPULATIONS COORDINATION City staff and the nonprofit providers in the community will continue to participate in countywide and South King County planning activities involving programs for homeless persons and other populations with special needs. The City will work toward meeting the needs of these populations through two specific projects in 2012. The Federal Way Emergency Feeding Program will provide more than 300 persons with food and supplies, 11 seniors with disabling conditions will be provided supervised activities through the Page 18 DRAFT 11/8/11 Federal Way Senior Center Adult Day Care Program and five persons with disabilities will receive job skills training and employment services. The citizen participation process revealed a need for housing assistance for homeless single men, especially those with children. Some of these may be considered Chronic Homeless. The City will continue to work with agencies providing service and housing to homeless populations including Chronic Homeless individuals to explore the potential for expanding homeless housing and services in Federal Way. ACTIONS TO REMOVE BARRIERS TO AFFORDABLE HOUSING The City will review possible zoning plan modifications in some areas to encourage more residential development, including changes to the definitions of density for conventional subdivisions which will increase the number of lots. Even with the absence of vacant available land, the City continues to promote infill as part of its housing strategy. In addition to "cluster housing' which is already permitted, the City is considering additional strategies to increase affordable housing options. LEAD -BASED PAINT HAZARDS STRATEGIES The Federal Way Home Repair and Rehabilitation Program (HRRP) will be developed and implemented during 2012. A goal of rehabilitating nine homes in the in 2012 has been established. The City will fully comply with the Lead -Based Paint Hazards requirements in the operation of the program. The City will set procedures to inspect and test properties as appropriate and develop a checklist for site inspections. Residential units and homes constructed prior to 1978 that are assisted through the HRRP will be inspected and /or tested. Homes testing positive for lead -based paint, or identified as having lead hazards, will be stabilized or abated, as required, by certified contractors. PROMOTING FAIR HOUSING In 2012 the City will work towards promoting Fair Housing by contracting to develop a thorough Analysis of the Impediments to Fair Housing. The Analysis, to be completed in early 2012, will provide the City with recommended actions to overcome unfair housing practices in the community. CDBG MONITORING AND OTHER CITY ACTIONS The City will use the information and administrative materials gained by Federal Way staff at two HUD - sponsored training workshops, to establish program management Page 19 DRAFT 11/8/11 procedures for the CDBG Program. Staff will utilize HUD Monitoring Guidelines in establishing areas to be monitored. Subrecipient progress (timeliness), minority business outreach and program compliance /reporting issues will be a focus in the initial year. Additional monitoring areas will be selected appropriate to the activity and subrecipient. In monitoring sub - recipients, the City plans to use the tools provided during the training supplemented by tools used by surrounding Entitlement communities. The City intends to maintain frequent contact with the funded agencies throughout the year. Following the contracting period, the City will prepare a brief plan /schedule of monitoring activities. In the first year, this will include on -site monitoring of all public services grants. Other CDBG funded activities will be monitored using risk factors to determine the schedule. Page 110 CITY OF FEDERAL WAY CITIZEN PARTICIPATION PLAN PURPOSE The City of Federal Way provides direct support for critical human services, affordable housing and neighborhood stability through its Human Services Department. The City receives annual funding in support of the human services program through the U.S. Community Development Block Grant (CDBG) program, The City of Federal Way encourages involvement by residents and organizations in the planning and implementation of activities included in the Housing & Human Services Consolidated Plan. The Plan provides for an assessment of community needs, outlines five -year strategies to address the needs, and establishes an Annual Plan including the proposed use of grant funds. The City is required by the U.S. Department of Housing and Urban Development (HUD) to follow a Citizen Participation Plan in the planning and evaluation of programs in its Consolidated Plan. This plan describes how residents and organizations can access information, review and comment on proposed activities and provide comments on performance evaluations of approved activities. Residents and organizations are also encouraged to participate in program implementation and monitoring activities. Specifically, this Plan describes the details of the formal process for public participation in annual and long -range planning for the use of Community Development Block Grant Funds (CDBG) in the City of Federal Way. PUBLIC COMMENT ON THE CITIZEN PARTICIPATION PLAN The City will advise the public of the availability of the draft Citizen Participation Plan and invite resident comments. If modifications to the plan are being considered, the public will be invited to comment on the proposed amendments to the plan. Notices advising the public of the availability of the Citizen Participation Plan and any proposed amendments to it will be published in the Federal Way Mirror and will be placed on the City of Federal Way web site at http:// www. cityoffederalway .com /humanservices. A copy of the Citizen Participation Plan is also available at the City of Federal Way Mayor's Office located at 33325 8th Avenue South, Federal Way, Washington, 98003 -6325. The public will be given 30 days to comment on the Plan and any amendments to it. Written comments may be submitted to the City of Federal Way Department of Human Services located at 33325 8th Avenue South, Federal Way, Washington, 98003 -6325. PUBLIC COMMENT ON THE CONSOLIDATED PLAN, THE ANNUAL ACTION PLAN AND AMENDMENTS TO THE PLANS The City also encourages public participation in the development of the Consolidated Plan (including the Annual Action Plan) and any "substantial amendments" to the Plan. Prior to adoption 1 of the plan, the public will be advised of the amount of financial assistance that is expected to be provided to the City by HUD, the range of activities that may be undertaken, and the amount of funding expected to benefit low and moderate - income persons. A "substantial amendment" is defined as any proposed change in the use of CDBG funds that exceeds 20% of the total amount annually provided by HUD for each program. In addition, the following changes will also be considered "substantial amendments" to the program requiring an opportunity for public comment: • Change in the beneficiaries of the activities • Change in the general location of activities • Change in the purpose or scope of an activity or the addition or deletion of an activity The Draft Consolidated Plan and any "substantial amendments" to the plan will be published and made available in the same manner as indicated in the previous section. The public will be notified in the Federal Way Mirror that they have at least 30 days to review and comment on the Draft Plan and any substantial amendments to the Plan. Citizen comments on the Plan will be considered if they are received orally at the public hearing or submitted in writing within the 30 -day period for comment to Administrative Services Director located at 33325 8th Avenue South, Federal Way, Washington 98003 -6325. In addition, the public will be advised of the City's plans to limit the displacement of persons through CDBG program activities and the ways it will assist any persons who may be displaced. The Anti - Displacement Plan will discuss these procedures and will be included in the Appendix as part of the Consolidated Plan. A copy of the Consolidated Plan and any "substantial amendments" to the Plan will be available for review at the City of Federal Way Mayor's Office located at 33325 8th Avenue South, Federal Way, Washington, 98003 -6325. The Consolidated Plan will be available for review at the City website http:// www. cityoffederalway .com /humanservices. Finally, a copy of the Plan may be requested by contacting the Administrative Services Director at 33325 8th Avenue South, Federal Way, Washington, 98003 -6325 or by telephoning 253 - 835 -2510. PUBLIC COMMENT ON THE ANNUAL PERFORMANCE REPORT In the spring of 2013, the City will begin reporting annually on its performance in implementing the activities of the Consolidated Plan. The public will be notified of the availability of the Report in the Federal Way Mirror and is encouraged to review and comment on this document prior to its submission to HUD. The report will generally be available in February or March of each year. The public will be provided at least 20 days within which to comment on the report. Copies of the report will be available for review at the City of Federal Way Mayor's Office. ENCOURAGING PUBLIC PARTICIPATION The Citizen Participation Plan encourages public participation by facilitating involvement of low - and moderate - income residents, including those in any targeted neighborhoods and consumers of public and assisted housing. Appropriate steps will be taken to encourage involvement of people of 2 color, people who do not speak English, and people with disabilities. Upon request to the Administrative Services Director at253- 835 -2510, to the extent feasible, materials will be made available in a form accessible to persons with disabilities. PUBLIC HEARINGS/PUBLIC NOTICE A minimum of two public hearings will be held each year. The hearings will discuss the performance of the program; provide information on housing and community development needs, available funds and proposed activities. Citizens will be provided opportunity to make comments at the hearings. At least one hearing will be held prior to publishing the proposed Consolidated Plan for comment. A hearing will also be held to consider any "substantial amendments" to the Plan. To the extent feasible, the hearings will be located and timed to ensure opportunities for residents to participate. If requested at least 5 business days prior to the hearing, translation services and assistive listening devices will be provided at public hearings. Notice of all public hearings will be published in the Federal Way Mirror at least twenty (20) days prior to the date of the hearings. All oral or written comments will be considered in decisions on the program and planning documents. A response to any written comments received will be included in the Appendix of the Consolidated Plan (or Annual Action Plan document). ADDITIONAL INFORMATION Citizens, public and private agencies and other interested parties will be given reasonable and timely access to information and records related to the Consolidated Plan and program activities. A copy of the final, approved documents (the Citizen Participation Plan, Consolidated Plan, Annual Action Plan, and any amendments to those plans; and the Annual Performance Report) may be obtained through the City website http:// www. cityoffederalway .com /humanservices. TECHNICAL ASSISTANCE Upon request, technical assistance will be made available to groups representing low and moderate - income persons to assist them in understanding the requirements for developing proposals under the Consolidated Plan. COMPLAINT PROCESS A complaint pertaining to the Community Development Block Grant Program, Consolidated Plan, any plan amendments and /or the performance report may be submitted for response to Human Services staff at the City of Federal Way Mayor's Office. Staff will review the complaint and will provide a response within a period of 15 working days of receipt of any complaint. A written appeal of a response may be requested of the Administrative Services Director who will review and provide a written response within 21 days. The Administrative Services Director decision will be final. 01 City of Federal Way Anti - Displacement and Relocation Assistance Plan (November 2012) This Residential Anti Displacement and Relocation Assistance Plan (RARAP) is prepared by City of Federal Way in accordance with the Housing and Community Development Act of 1974, as amended; and HUD regulations at 24 CFR 42.325 and is applicable to our Community Development Block Grant (CDBG) assisted projects. In the implementation of CDBG activities, the City is responsible for implementation of the Uniform Relocation Assistance and Real Properties Acquisition Act of 1970, as amended (URA), as well as Section 104(d) of the Housing and Community Development Act, including the Barney Frank Amendment. The City of Federal Way discourages (CDBG) proposals which would cause displacement of people or businesses. A proposal that is likely to cause displacement may be required to budget for the full relocation assistance payment under federal law. Federal Way Human Services staff will work with applicants to identify proposed projects that may trigger relocation and replacement requirements and require that the applicant budget sufficient funds in any proposed project to address these issues. Federal Way Human Services staff will work with the applicants of such a proposal, explain the requirements the relevant federal regulations, and ensure that they comply with those regulations. The funded agency will be responsible for any unforeseen relocation costs. The Federal Way Human Services staff are responsible for ensuring that all the requirements are met for notification of potentially displaced households and for provision of relocation assistance, per of the Uniform Relocation Assistance and Real Properties Acquisition Act of 1970, as amended (URA), as well as Section 104(d) of the Housing and Community Development Act of 1974, including the Barney Frank Amendment. To minimize the direct and indirect displacement of persons from their homes, the City of Federal Way will take the following actions: • Federal Way Human Services staff will identify replacement units for all low- income units that are demolished or converted to another use in connection with a project funded fully, or in part, with Federal Way's Community Development Block Grant dollars. • Provide assistance to homeowners to rehabilitate their homes, including removal of health and safety issues. • Evaluate housing codes and rehabilitation standards in reinvestment areas to prevent undue financial burden on established owners and tenants. • In the event that the City provides assistance to improve multi - family housing, stage rehabilitation of apartment units to allow tenants to remain in the building /complex during and after the rehabilitation, working with empty units first. • Identify facilities to house persons who must be relocated temporarily during rehabilitation. • Adopt policies to identify and mitigate displacement resulting from intensive public investment in neighborhoods. • Adopt policies which provide reasonable protections for tenants faced with conversion to a condominium or cooperative. • Provide homeowners and tenants with information on assistance available to help them remain in their neighborhood in the face of revitalization pressures. Finally, before entering into any contract for a CDBG- funded project that will result in displacement of residents or businesses in a currently occupied structure, the City of Federal Way will publish a notice in the Federal Way Mirror describing the proposed project and the relocation plans. The City will also provide HUD with a written notification that includes the following information: • A detailed description to the proposed activity • A map of the proposed location and the number of dwelling units by number of bedrooms that will be either demolished or converted to a_ use other than as low- income dwelling units as a direct result of the proposed activity. • A project timeline for commencement and completion of the proposed activity • The source of funding and the timeline scheduled to obtain the replacement dwelling units. • The rationale for determining that all replacement dwelling units will remain a low- income unit for at least 10 years from the date of occupancy. • An explanation of how the replacement units are consistent with the housing needs of lower- income household, particularly when the size of any replacement units differs from the demolished or converted unit. U.S. Department of Housing and Urban Development Table 1B Special Needs (Non- Homeless) Populations FEDERAL WAY NEEDS OMB Approval No. 2506 -0117 (Exp. 4/30/2011) SPECIAL NEEDS SUBPOPULATIONS Priority Need Level High, Medium, Low, No Such Need Unmet Need Dollars to Address Unmet Need Multi- Year Goals Annual Goals Elderly H 55 11 Frail Elderly H 55 11 Severe Mental Illness M 0 0 Developmentally Disabled M 25 5 Physically Disabled M 25 5 Persons w/ Alcohol/Other Drug Addictions M 0 0 Persons w/HIV /AIDS M 0 0 Victims of Domestic Violence H 0 0 Other TOTAL 160 32 U.S. Department of Housing OMB Approval No. 2506 -0117 and Urban Development (Exp. 4/30/2011) Table 10203A Summary of Specific Objectives Grantee Name: Ci of Federal Way Deeent•l1binCSin v�+itli ".P ose bI ' f+�w or x 'veu �i tbifi' ". " Aeries ibili g =1 Specific Objective Source of Year Performance Expected Actual Percent Funds Indicators Number Number Completed DH Support homeownership CDBG 2012 Households 9 % 1.1 by assisting owners to 2013 assisted to 18 % maintain their homes 2014 maintain housing 18 % 2015 (rehabilitated) 18 % 2016 18 % MULTI -YEAR GOAL 81 % oft" . ew nt'" =;. " roY I DH Support homeownership NSP3 2012 Households 3 % 2.2 by assisting new 2013 assisted to 8 % homebuyers or existing 2014 become 3 % homeowners to retain 2015 homeowners or 0 % homeownership 2016 remain 0 % homeowners MULTI -YEAR GOAL 14 % Suitable Envi ronment with Purp ose of,,New or Im proved Availablli /Ackessl �; SL Provide a safety net of CDBG 2012 Persons receiving 354 % 1.1 services to stabilize 2013 safety net services 354 % households who are in 2014 354 % crisis or at risk 2015 354 % 2016 354 % MULTI -YEAR GOAL 1,770 % Specific Objective Source of Year Performance Expected Actual Percent Funds Indicators Number Number Completed SL Improve accessibility and CDBG 2012 Capital or facility 0 % 1.2 use of existing and new 2013 improvements 1 % city facilities/construct 2014 serving LM 1 % public improvements to 2015 neighborhoods 1 % support community 2016 1 % revitalization strategies MULTI -YEAR GOAL 4 % Suitable Living ""Euvironment with Purpose of" New or Improved Sustaivability SL Provide services to CDBG 2012 Persons receiving 16 % 3.1 households to help them 2013 self - sufficiency 16 % on the path toward self- 2014 services 16 % sufficiency 2015 16 % 2016 16 % MULTI -YEAR GOAL 80 % Economic Opportunity,with Purp ose of New or Improved Avallabffl /Accessibili O4) " Specific Objective Source of I Year Performance I Expected Actual I I Percent Funds Indicators Number Number Completed EO Encourage the creation and CDBG 2012 Jobs created or 10 DH -2 % 1.1 growth of businesses S L- 2 2013 retained for LM 20 EO -2 % 2014 persons 20 % 2015 20 % 2016 20 % MULTI -YEAR GOAL 90 % Specific Objective Source of Year Performance Expected Actual Percent Funds Indicators Number Number Completed EO Encourage the creation and CDBG 2012 LM -owned 96 % 1.2 growth of businesses 2013 businesses 96 % 2014 assisted 96 % 2015 96 % 2016 96 % MULTI -YEAR GOAL 480 % *Outcome /Objective Codes Availability/Accessibility Availability/Accessibility Affordability Sustainabili Decent Housing DH -1 DH -2 DH -3 Suitable Living Environment SL-1 S L- 2 SL-3 Economic Opportunity EO -1 EO -2 EO -3 Table 2A FEDERAL WAY Priority Housing Needs /Investment Plan Table Renter Owner Small Related Large Related Elderly All Other Small Related Large Related Elderly All Other Elderly Frail Elderly Severe Mental Illness Non - Homeless Physical Disability Special Needs Developmental Disability Alcohol/Drug Abuse HIV /AIDS Victims of Domestic Violence 0 -30% 31 -50% 51 -80% 0 -30% 31 -50% 51 -80% 0 -30% 31 -50 % 51 -80% 0 -30% 31 -50% 51 -80% 0 -30% 31 -50% 51 -80% 0 -30% 31 -50% 51 -80% 0 -30% 31 -50% 51 -80% 0 -30% 31 -50% 51 -80% 0 -80% 0 -80% 0 -80% 0 -80% 0 -80% 0 -80% 0 -80% 0 -80% H H M H H M H H M H H M H H M H H H H H H M M M M M M M M M M M 1,008 1,350 1,448 299 274 320 424 333 189 749 819 1.420 257 329 1,070 44 64 480 375 430 754 200 173 390 Table 2A Priority Housing Needs /Investment Plan Goals Renters 0 - 30 of MFI 31 - 50% of MFI 51 - 80% of MFI Owners 81 9 18 18 18 18 0- 30 of MFI 14 2 3 3 3 3 31 - 50 of MFI 41 5 9 9 9 9 51 - 80% of MFI 26 2 6 6 6 6 Homeless* Individuals Families Non - Homeless Special Needs Frail Elderly Severe Mental Illness Alcohol/Drug Abuse HIV /AIDS Victims of Domestic Violence Total 81 9 18 18 18 18 Total Section 215 215 Renter 215 Owner * Homeless individuals and families assisted with transitional and permanent housing NOTE: The above estimates include 14 units assisted by NSP3. Priority Need Rental assistance Short term rent/mortg Facility based housi Facilitv based housi Suvoortive services Table 2A Priority Housing Activities 5 -Yr. Yr.1 Yr.2 Yr.3 Yr.4 Yr.5 Goal I Goal I Goal I Goal Goal Goal NOTE: The above estimates include 14 units assisted by NSP3. U.S. Department of Housing and Urban Development Table 2B FEDERAL WAY Priority Community Development Needs OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Priority Need Priority Need Level Unmet Priority Need Dollars to Address Need 5 Yr Goal Plan/Act Annual Goal Plan/Act Percent Goal Completed Acquisition of Real Property L Disposition L Clearance and Demolition M Clearance of Contaminated Sites L Code Enforcement L Public Facility General Senior Centers L Handicapped Centers L Homeless Facilities H Youth Centers L Neighborhood Facilities L Child Care Centers L Health Facilities L Mental Health Facilities L Parks and/or Recreation Facilities H Parking Facilities L Tree Planting L Fire Stations/Equipment L Abused/Neglected Children Facilities L Asbestos Removal L Non - Residential Historic Preservation L Other Public Facility Needs L Infrastructure General Water /Sewer Improvements L Street Improvements L Sidewalks L Solid Waste Disposal Improvements L Flood D raina ge Improvements L Other Infrastructure L Public Services General Senior Services H Handicapped Services H Legal Services L Youth Services M Child Care Services M Transportation Services L Substance Abuse Services M Employinent/Training Services H Health Services H Lead Hazard Screening M Crime Awareness L Fair Housing Activities H Tenant Landlord Counseling M Other Services M Economic Development General C/I Land Acquisition/Disposition H C/I Infrastructure Development H C/I Building Ac /Const/Rehab H Other C/I H ED Assistance to For -Profit H ED Technical Assistance H Micro-enterprise Assistance H Other Transit Oriented Development L Urban Agriculture L U.S. Department of Housing and Urban Development Federal Way Consolidated Plan Listing of Projects Jurisdiction's Name FEDERAL WAY Priority Need Public Services Project Orion Industries Rehabilitation Services Activity Job Training Services Description Orion Industries will provide job assessments, education, skills training, career exploration, employment placement assistances and post placement follow -up to Federal Way residents with disabilities and other barriers to employment. Objective category: ® Suitable Living Environment ❑ Decent Housing Outcome category: ® Availability /Accessibility ❑ Affordability ❑ Economic Opportunity ❑ Sustainability OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Location/Target Area: Orion Industries (Street Address): Principal location — 33926 9 th Ave South (City, State, Zip Code): Federal Way, WA 9800 Specific Objective Project ID Number 2012 PS 5 SL-3.1 HUD Matrix Code CDBG Citation 05B/H Public Services 570.201 e Type of Recipient CDBG National Objective Non -Profit Low/Mod Benefit570.208 (a)(2 Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # Persons receiving self- sufficiency services 5 Local ID Units Upon Completion NA NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $16,323 $16,323 $16,323 The primary purpose of the project is to help: ❑ the Homeless ❑ Persons with HIV /AIDS ® Persons with Disabilities ❑ Public Housing Needs Table 3C Federal Way Consolidated Plan Listing of Projects U.S. Department of Housing and Urban Development Federal Way Consolidated Plan Listing of Projects Jurisdiction's Name FEDERAL WAY Priority Need Public Services Project HealthPoint Federal Way Dental Services Access Activity Health Services Description HealthPoint Dental, which provides comprehensive dental services, will provide 80 dental visits for 27 low- and moderate - income individuals. Objective category: ® Suitable Living Environment ❑ Decent Housing Outcome category: ® Availability /Accessibility ❑ Affordability ❑ Economic Opportunity ❑ Sustainability OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Location/Target Area: HealthPoint Dental Clinic (Street Address): 955 Powell Ave SW (City, State, Zip Code): Renton, WA 98057 Specific Objective Project ID Number 2012 PS 4 SL -1.1 HUD Matrix Code CDBG Citation 05M Public Services 570.201 e Type of Recipient CDBG National Objective Non -Profit Low/Mod Benefit570.208 (a)(2 Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # Persons receiving safety 27 net assistance served Local ID Units Upon Completion NA NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $10,488 $10,488 $10,488 The primary purpose of the project is to help: ❑ the Homeless ❑ Persons with HIV /AIDS ❑ Persons with Disabilities ❑ Public Housing Needs Table 3C U.S. Department of Housing and Urban Development Table 3C Federal Way Consolidated Plan Listing of Projects Jurisdiction's Name FEDERAL WAY Priority Need Public Services Project Federal Way Emergency Feeding Program Activity Food and Essential Services OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Description The Multi- Service Center Food Bank will distribute food that addresses the special dietary needs of adults, infants and children in emergency hunger situations and provide diapers to families with children in need. Objective category: ® Suitable Living Environment ❑ Decent Housing Outcome category: ® Availability /Accessibility ❑ Affordability Location/Target Area: Multi- Service Center (Street Address): 1200 South 336 Street (City, State, Zip Code): Federal Way, WA 98003 Specific Objective Project ID Number 2012 PS 1 SL -1.1 HUD Matrix Code CDBG Citation 05W Public Services 570.201 e Type of Recipient CDBG National Objective Non -Profit Low/Mod Benefit570.208 (a)(2 Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # Persons receiving safety net aggistance 306 Local ID Units Upon Completion NA NA ❑ Economic Opportunity ❑ Sustainability Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $7,267 $7,267 $7,267 The primary purpose of the project is to help: ❑ the Homeless ❑ Persons with HIV /AIDS ❑ Persons with Disabilities ❑ Public Housing Needs U.S. Department of Housing and Urban Development Table 3C Federal Way Consolidated Plan Listing of Projects Jurisdiction's Name FEDERAL WAY Priority Need Public Services Project Federal Way Senior Center Adult Day Care Activity Senior and Disabled Adult Services Description Adult Day Care for low- and moderate - income senior citizens experiencing dementia, Alzheimer disease or other disabling condition. Provide specialized activities for cognitively- impaired individuals to promote their well- being. Objective category: ® Suitable Living Environment ❑ Decent Housing Outcome category: ® Availability /Accessibility ❑ Affordability ❑ Economic Opportunity ❑ Sustainability OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Location/Target Area: Federal Way Senior Center (Street Address): 4016 South 352 St. (City, State, Zip Code): Federal Way, WA 98001 Specific Objective Project ID Number 2012 PS 2 SL -1.3 HUD Matrix Code CDBG Citation 05A Public Services 570.201 e Type of Recipient CDBG National Objective Non -Profit Low/Mod Benefit570.208 (a)(2 Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # Persons receiving self- 11 sufficiency services Local ID Units Upon Completion NA NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $15,432 $15,432 $15,432 The primary purpose of the project is to help: ❑ the Homeless ❑ Persons with HIV /AIDS ® Persons with Disabilities ❑ Public Housing Needs U.S. Department of Housing and Urban Development Table 3C Federal Way Consolidated Plan Listing of Projects Jurisdiction's Name FEDERAL WAY Priority Need Public Services Project Federal Way PACT (Parents and Children Together) Program Activity Family Counseling Services OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Description PACT Therapists provide in -home services to low- and moderate - income at -risk families including counseling, skill- building, and assistance to access the community support system and resources with the goal of improving family function and child well - being. Objective category: ® Suitable Living Environment ❑ Decent Housing Outcome category: ® Availability /Accessibility ❑ Affordability ❑ Economic Opportunity ❑ Sustainability Location/Target Area: Community -Wide (Street Address): (City, State, Zip Code): Specific Objective Project ID Number 2012 PS 3 SL -1.1 HUD Matrix Code CDBG Citation 05 Public Services 570.201 e Type of Recipient CDBG National Objective Non -Profit Low/Mod Benefit570.208 (a)(2 Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # Persons receiving safety 21 net assistance served Local ID Units Upon Completion NA NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $15,674 $15,674 $15,674 The primary purpose of the project is to help: ❑ the Homeless ❑ Persons with HIV /AIDS ❑ Persons with Disabilities ❑ Public Housing Needs Table 3C U.S. Department of Housing and Urban Development Jurisdiction's Name FEDERAL WAY Priority Need Owner- occupied Housing Project Federal Way Home Repair and Rehabilitation Program Activity Home Repair Description The City will create a new Home Repair Program to provide assistance to low- and moderate - income homeowners to make needed repairs and improvements, resolve health and safety conditions and eliminate lead -based paint hazards in their homes. Objective category: ❑ Suitable Living Environment ® Decent Housing Outcome category: ® Availability /Accessibility ❑ Affordability ❑ Economic Opportunity ❑ Sustainability OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Location/Target Area: Community -wide (Street Address): (City, State, Zip Code): Specific Objective Project ID Number 2012 Housing DH1.1 HUD Matrix Code CDBG Citation 14A 570.202 S -F Rehabilitation Type of Recipient CDBG National Objective Local Government LMH 570.208 a Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # households assisted 9 homes Local ID Units Upon Completion NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $23,704 $23,704 $126,296 $150,000 The primary purpose of the project is to help: * �• �i• �••~• ..............._.___....._..... p ' ary p rp p p: ❑ the Homeless ❑ Persons with HIV /AIDS ❑ Persons with Disabilities �] Public Housing Needs Table 3C Federal Way Consolidated Plan Listing of Projects U.S. Department of Housing and Urban Development Jurisdiction's Name FEDERAL WAY Priority Need Economic Development Project Economic Development Loan Program Activity Assistance to For - Profits & Micro - Enterprises OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Description The City will administer a business loan program, including assistance to businesses committed to providing or retaining jobs for low- and moderate - income persons or assistance to build the capacity /viability of businesses owned by low- moderate - income persons or serving low- moderate - income neighborhoods. Objective category: ❑ Suitable Living Environment ❑ Decent Housing ® Economic Opportunity Outcome category: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Location/Target Area: Community -wide (Street Address): (City, State, Zip Code): Specific Objective Project ID Number 2012 ED EO -1.1 HUD Matrix Code CDBG Citation 18A/C ED 570.201 0 & 570.203 Type of Recipient CDBG National Objective Local Government LMJ/LMCMC 570.208 a Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units # jobs created/retained 10 LMI jobs # of businesses assisted 96 LMI -owned businesses Local ID Units Upon Completion NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $400,000 $400,000 $400,000 ................................ ............................... The primary purpose of the project is to help: ❑ the Homeless [] Persons with HIV /AIDS ❑ Persons with Disabilities Public Housing Needs Table 3C Federal Way Consolidated Plan Listing of Projects U.S. Department of Housing and Urban Development Jurisdiction's Name FEDERAL WAY Priority Need Program Administration Project CDBG Administration Activity CDBG Administration Description Provide CDBG program administration/coordination and project monitoring during the first program year. Objective category: ❑ Suitable Living Environment ❑ Decent Housing Outcome category: ❑ Availability /Accessibility ❑ Affordability ❑ Economic Opportunity ❑ Sustainability OMB Approval No. 2506 -0117 (Exp. 4/30/2011) Location/Target Area: Community -wide City of Federal Way Department of Human Services (Street Address): 33325 8th Avenue South (City, State, Zip Code): Federal Way, WA 98003 Specific Objective Project ID Number 2012 Administration HUD Matrix Code CDBG Citation 21A 570.206 General Administration Type of Recipient CDBG National Objective Local Government Start Date (mm/dd/yyyy) Completion Date ( mm/dd/yyyy) 01/01/2012 12/31/2012 Performance Indicator Annual Units Local ID Units Upon Completion NA Funding Sources: CDBG ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $ 130,370 $ 130,370 $130,370 The primary purpose of the project is to help: ❑ the Homeless ❑ Persons with HIV /AIDS ❑ Persons with Disabilities [ Public Housing Needs SUBJECT: THE CITY OF FEDERAL WAY 2012 STATE LEGISLATIVE AGENDA POLICY QUESTION: SHOULD THE CITY OF FEDERAL WAY 2012 LEGISLATIVE AGENDA BE APPROVED? COMMITTEE: NA MEETING DATE: CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other STAF REPORT B Y: Bryant En a DEPT: Mayor's Office _ _._. _....._._... r _ ._.._._......_ ...._...._.__.._.__._._ -. -. -- Background: On an annual basis, the City produces a state legislative agenda. Working with the city's lobbyist, Intergovernmental staff produced the City of Federal Way 2012 State Legislative Agenda for Council consideration. The purpose of the state legislative agenda is to affect state legislation and regulations as they relate to the interests of the city and its residents. The 2012 agenda sets policy direction on statutory changes that may impact the financial stability of the city, public safety issues, promoting economic development, managing growth and preserving neighborhoods and other basic services that help to maintain our community and our quality of life. The City of Federal Way's 2012 State Legislative Agenda identify the principles and priorities city staff will engage on state legislative issues. The key principles of the state legislative agenda are: preserving and enhancing the city's ability to deliver quality and cost - effective services to citizens and visitors; promoting economic growth; addressing quality -of -life issues for Federal Way residents; retaining local decision making authority and maintaining revenue sources. This legislative agenda defines the city's 2012 priorities for the upcoming 2011 Special Session and the 2012 Regular Session and will guide the city's lobbying activities at the state legislature. The Intergovernmental staff recommends prioritizing the 2012 state legislative agenda to a few key issues to allow the city to have a stronger, more consistent message on the items of greatest priority: • The City's highest priority is to protect all of our local funding streams that come from the state. • Items in the second priority tier focus on public safety, transportation, and economic development issues. • Third -tier priorities include monitoring possible legislation that tie back to the city's core principles: cost effective services; economic growth; quality of life; and local accountability and fiscal responsibility. • Final tier priorities include monitoring possible legislation that would affect departmental priorities. Attached is the proposed agenda that provides the City's stated position(s). Most of these categories are general in nature and provide direction to staff in what to monitor and how to respond to proposed legislation that could impact the City. Attachments: Exhibit A: THE CITY OF FEDERAL WAY 2012 STATE LEGISLATIVE AGENDA Options Considered: 1. Approve the City of Federal Way 2012 State Legislative Agenda 2. Not approve the City of Federal Way 2012 State Legislative Agenda and provide staff alternate direction. MAYOR'S RECOMMENDATION Approve the City of Federal Way 2012 State Legislative Agenda MAYOR APPROVAL: �� % DIRECTOR APPROVAL: � ' Committee Coun committee Council COMMITTEE RECOMMENDATION: NA. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION We move approval of the City of Federal Way 2012 State Legislative Agenda 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— 08/12/2010 RESOLUTION # CITY OF F7 W a y 2012 STATE LEGISLATIVE AGENDA MAYOR Skip Priest CITY COUNCIL Jeanne Burbidge Jack Dovey Dini Duclos Jim Ferrell Roger Freeman Linda Kochmar Michael Park CITY ADMINISTRATION Bryant Enge, Administrator Services Director Chris Carrel, Communications Coordinator Doug Levy, Outcomes by Levy, Contract State Lobbyist Martin J. Durkan, Special Contract Lobbyist on Sound Transit issues VA CITY OF � Federal Way 2012 STATE LEGISLATIVE AGENDA The City of Federal Way's Legislative Agenda, which begins on the following page, reflects the City's position on matters expected to arise either as legislation, or through the State of Washington budget process, or both. The City's level of advocacy and engagement is categorized as follows: • Top Priorities. The City takes the lead and /or actively advocates for or against issues. • Support/Oppose Policy Positions. The City joins others in either support or opposition of issues. • Track/Monitor Policy Positions. The City actively tracks issues, but takes no action. 2012 State Legislative Agenda Protecting State - Shared Revenues: Federal Way's top priority — both for the 2011 Special Session and the 2012 Regular Session -- will be to protect and maintain existing state revenue sources essential to the city's ability to fund public safety, human needs, and other governmental operations. Significant state cuts in areas such as human and social services are already increasing service obligations on local governments. Cities and counties absorbed a 3.4 percent reduction in "state- shared revenues" in the 2011 -13 Operating Budget. Additionally, the Governor is preliminarily proposing to eliminate all local distributions of liquor profits and liquor excise taxes to cities and counties that will result in $1.3M city revenue loss, which translates to 12 police officers. State - shared revenues comprise approximately five percent of the city's biennial operating budget. Additionally, the city annually receives several grants in areas such as auto theft prevention, sex offender address verification, and public defense. Public Safetv • Legislation to enhance the ability of law enforcement to combat auto theft and other property crimes. Federal Way strongly supports a Washington Association of Sheriffs and Police Chiefs -led effort to extend from three years to six years the current statute of limitation for prosecuting first- and second - degree criminal trafficking of stolen property. Due to the complexities of investigating crimes such as auto theft, the three -year limitation often acts as a barrier in solving these cases. On the fiscal side, Federal Way will work with law enforcement and prosecutors to continue progress reducing auto theft, and protect "Washington Auto Theft Prevention Authority" funds for the collaborative task force in South King County. Transportation • Transportation Investment Package - and Completion of the "Triangle" project. Federal Way wants to ensure inclusion of $118.7 million to complete remaining phases of the "Triangle" interchange in any transportation investment package submitted to voters. The Triangle - Interstate 5, State Highway 18, and State Route 161 - is the fifth - most - congested interchange in the state. Completing interchange improvements would significantly enhance mobility, safety, freight movement and local traffic flow. The City will also look to ensure inclusion of I -5 /S. 320 and 1 -5 /SR -509 improvements in the transportation package; Transportation Improvement Board (TIB) funds; and direct distribution funds and local funding options for local government. Economic Development Efforts — Downtown Redevelopment • $1 million request for 2012 Capital Budget to upgrade downtown sewer capacity. Federal Way is partnering with the Lakehaven Utility District in 2012 on a $1 million Capital Budget request to seed a sewer capacity upgrade in the downtown business core. The request is key to ensuring that the City and the District can provide necessary infrastructure for future development, including a proposed $300 million redevelopment of the AMC Theater site. This project is a key "jobs" element for any economic development/jobs package lawmakers may consider. Sound Transit • New accountability and fairness measures. Federal Way and its working class, transit - dependent community continues to suffer from the actions of Sound Transit. The agency removed the light rail extension to 272 Street promised in its ST II package - the only Puget Sound city to have its light rail connection eliminated. Federal Way will be working with its area legislators on bills to bring accountability and fairness into the Sound Transit operations in areas such as subarea equity, "opt -out" authority, etc. 2012 State Legislative Agenda 3 Economic Development/Infrastructure • Infrastructure /jobs package. The 2012 Legislature may well look at using the 2012 Capital Budget as a vehicle for a jobs or stimulus package of infrastructure investments. Federal Way is prepared to support such a package, providing it includes key investments for cities. Federal Way obviously will need to see and analyze the details of any such package. • Economic development and infrastructure investment tools for cities. Federal Way will support initiatives aimed at enhancing economic development and infrastructure investment. This includes efforts to establish more robust "Tax Increment Financing" (TIF) authority in the law or to reauthorize the Local Revitalization Financing (LRF) program. The City was fortunate to receive an LRF grant in 2009 for the Federal Way Village project. Protect key infrastructure funds for local government -- Public Works Trust Fund (PWTF), Washington Wildlife & Recreation Program (WWRP). The 2011 Legislature restored funding for the PWTF and retained funding for the WWRP at a level of $42 million. The PWTF has been a very effective low- interest loan program for more than three decades, while the WWRP is a key funding partnership source for local parks, trails, and water - access areas. The City will strongly support a multi - stakeholder effort to ensure these funds are protected. Environment Stormwater funding to meet NPDES Phase II obligations. While lawmakers appropriated $50 million in 2010 and an additional $30 million in 2011 for local stormwater needs, cities such as Federal Way will continue to need substantial state and federal assistance to meet NPDES Phase II stormwater responsibilities that are established under the federal Clean Water Act and administered by the State Department of Ecology. Federal Way will continue to support efforts to ensure adequate funding is in place for stormwater requirements, including monitoring. • Green development and sustainability. Federal Way will support initiatives on green development and sustainability, while also seeking to ensure cities are not left with expensive mandates and requirements. • Pharmaceutical drug disposal. In 2011, the Legislature considered SSB 5234, a bill that would have added pharmaceutical drug disposal to the state's "product stewardship" law (manufacturer - financed program to ensure safe disposal of items). 5234 or a similar bill is likely to be brought forth in 2012, and Federal Way will support it. Fiscal /Budget/Funding Items • Clarifying that state and local sales tax exemptions for "local phone service" were not meant to include cellular phone service. Federal Way will strongly support a Department of Revenue (DOR) request bill — one that may well arise during the 2011 Special Session — to ensure that cellular phone service is not exempted from state and local sales tax obligations. This legislation would remedy a case currently winding its way through the courts. • Efficiencies for local governments. AWC is helping with an effort to offer the 2012 Legislature a series of ways for local governments to operate more efficiently, reduce or delay cost impacts, or cut costs. The City will support this effort. Examples of this initiative include a bill to reduce overlap between the State Environmental Policy Act (SEPA) and the Growth Management Act 2012 State Legislative Agenda (GMA), and legislation to ensure federal mandates administered by the state do not unnecessarily go above and beyond federal minimum guidelines. • Unfunded mandates /legislative actions that erode /eliminate local government revenues. As an annual staple of its Legislative Agenda, Federal Way will strongly urge legislators to refrain from taking actions that impose unfunded mandates on local governments, erode local revenues, or add local cost impacts. • Pension enhancements that add new costs. Federal Way will follow the lead of the AWC in opposing pension enhancements that add new costs to local governments. • Better manage personnel and labor costs. AWC is considering pursuing a series of legislative items to better manage these costs. Federal Way will support these efforts. • Public health and Healthy Communities funding. Federal Way will support an effort to protect public health funding and promote programs that better ensure active and healthy living to curb growing obesity, diabetes, and heart disease trends. General Government Costs of complying with the state's Public Records Act. Federal Way strongly supports transparency with the public and making records available to those who request them. In some cases, however, the costs of complying with large, complex records requests can be significant and can result in considerable staff -time burdens. Additionally, in some cases, records are requested strictly for commercial purposes and not for the public good. Federal Way will support efforts by AWC and other groups to allow for cost recovery with very complex and /or very large records requests, and to more explicitly limit requests that are for commercial purposes vs. the public good. Housing & Human Services Affordable housing and human services. Federal Way will support efforts to preserve State funding sources and budget allocations to prevent and end homelessness; sustain affordable housing options; enhance early childhood education and school readiness; and improve access to basic needs. One legislative effort around homelessness and low- income housing assistance will involve ESHB 2048, a bill the Legislature nearly passed in Special Session earlier this year. Federal Way will support this legislation. Land-Use/Planning/GMA SEPA/GMA streamlining. Federal Way will join local governments and the business community in supporting legislation that seeks to reduce the amount of overlap between substantive SEPA requirements and GMA codes for drainage, traffic control, etc., which already provide a level of environmental protection. The City is concerned that on numerous projects, current law is requiring developers to go through processes twice instead of just once, needlessly burdening the local economy. Timing of collection of GMA impact fees. In 2012, lawmakers may again be asked to look at legislation that mandates the collection of GMA impact fees at the time of the sale or closing of residential dwellings (rather than at the time of permit issuance). Federal Way is piloting a project to delay the collection of impact fees, but has exempted school district impact fees from the delayed collection option. The City will want to ensure that its type of program is grandfathered in any 2012 legislation considered or passed by lawmakers. 2012 State Legislative Agenda • Pre - empting local control over the siting of small alternative energy facilities. Federal Way will join cities and counties in opposing legislation that would pre -empt local governments from having primary siting authority over small alternative energy projects. Law Enforcement/Courts • Gangs prevention legislation. While Federal Way does not have a "home - grown" gangs problem, the City will support efforts to enhance intervention, prevention, and enforcement/suppression to combat growing gang activity in certain pockets of the state. The City will seek to ensure that any dedicated funding established for intervention and prevention can also be used for areas such as transit centers. • Reduce vehicle prowls. The City will support 2012 legislation to strengthen penalties against repeat vehicle prowl offenders — Federal Way is one of numerous agencies seeing a significant number of "smash and grab" incidents with vehicles. • Protect records relating to home burglar alarms and neighborhood crime watch programs. Federal Way will join WASPC and other law enforcement agencies in strongly supporting legislation to protect the confidentiality of sensitive records related to home burglar alarms and neighborhood crime watch programs. • Traffic safety camera programs. Federal Way and other cities may see legislation in 2012 that seeks to abolish traffic safety camera authority, or limits the fines a local government may collect as part of any program, or dictates operational aspects of the programs. Federal Way has seen its cameras enhance traffic safety in previously high- accident areas such as 320 Street and Pacific Highway, and thus will join law enforcement, cities, counties and others in opposing such legislation. • Better tracking of scrap metal transactions; increasing penalties for metal theft. Federal Way is prepared to support a proposal that would improve the regulation of scrap metal transactions by establishing an industry- financed, statewide database to better track transactions and better pinpoint potential illegal dealings. Additionally, if public utility districts bring forward legislation to strengthen penalties for metal theft, Federal Way will support it. • Medical Marijuana/Collective Gardens. Federal Way respects federal laws that declare marijuana as an illegal drug. If lawmakers choose to pursue 2012 legislation to clarify the use and distribution of medical marijuana through "collective gardens," Federal Way will work to ensure cities retain the authority to ban such collective gardens — or at least would have to 'opt in' to any local decision to allow them. • Administration of ignition interlock requirements. Federal Way will strongly support legislation being developed by the District and Municipal Court Judges Association (DMCJA) to ensure that the Department of Licensing — and not local judges — is in charge of administering particular elements of the DUI ignition interlock program. • WASPC priority items. Federal Way will be supporting these priority items being brought to the 2012 Legislature by the Washington Association of Sheriffs and Police Chiefs: requiring hospitals to report all gunshot wounds to local law enforcement; adding burglary crimes to the list of crimes where DNA collection is required; and strengthening penalties and 'implied consent' for Boating Under the Influence (BUI). 2012 State Legislative Agenda General Government • Limiting local government liability. Federal Way will track any 2012 efforts by a "Liability Reform Coalition" to limit the liability exposure that is currently placed on local governments. • Removing local franchising authority. In past sessions, the telecommunications industry has unsuccessfully attempted to shift franchising authority from local governments to the state. Cities and counties have opposed this. Federal Way will monitor this issue in 2012. Land - Use /Planning /GMA • Providing notice of any rezoning. A Kitsap County area lawmaker sponsored bills in 2010 and 2011 that would have required local governments to undertake expansive notification of all area property owners for all rezoning proposals, no matter how ministerial. Local governments opposed this "unfunded mandate" legislation. Federal Way will monitor this issue in 2012. Law Enforcement/Criminal Justice /Courts • Requiring Municipal Courts to accept additional subject -matter caseloads. In prior legislative sessions, there have been bills that would have required Municipal Courts to accept caseloads involving Anti - Harassment Orders (AHOs) or Domestic Violence Prevention Orders (DVPOs). Federal Way supports the current -law discretionary authority of Municipal Courts to take on such cases if they wish — but opposes a mandated caseload addition. This issue has not arisen in recent Sessions of the Legislature, so the City will simply track it. • Basic Law Enforcement Academy training. Federal Way will monitor this issue to ensure that BLEA funds are maintained for training newly hired police officers. • Driving While License Suspended (DWLS). Federal Way opposes efforts to completely decriminalize DWLS, and will track this issue in 2012. • Public Safety Authorities. Certain cities have proposed the idea of "Public Safety Authorities" as a way to offload direct police and public safety costs. Federal Way opposes this idea and believes it undermines the direct authority and accountability cities need to manage law enforcement operations. The City will track this issue in 2012. Transportation • Creation of street utilities. In 2012, the AWC and a number of individual jurisdictions will seek to obtain legislative authorization to allow cities to establish "Street Utilities" for local maintenance and preservation needs. Federal Way will track this effort. 2012 State Legislative Agenda COUNCIL MEETING DATE: November 15, 2011 ITEM #: 44' .......................... .. .................... ............................................... .... .................................................... _ ............ _.......................................................................... CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Transportation Impact Fee Code Amendment to Temporarily Suspend Impact Fees for Changes in Use POLICY QUESTION: Should the City amend the Federal Way Revised Code (FWRC), Section 19.91, to allow a three -year temporary suspend transportation impact fees for changes in use that do not add square footage? COMMITTEE: Land Use and Transportation Committee MEETING DATE: November 7, 2011 CATEGORY:' ❑ Consent ® Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Rick Perez P.E. City Traffic Engineer _ DEPT: Public Works __......._...._.._..._..._._........__._._ .__ ..............._._.......... ---- ....._._.. ...............__r .._. __.. __....... ....._._....._..._._..._....... — Attachments: Memorandum to the Land Use Transportation Committee dated November 7, 2011. Options Considered: Adopt the Mayor's recommendation, allowing a three -year temporary suspension of transportation impact fees for changes in use that do not add square footage per the attached draft ordinance. 2. Do not adopt the Mayor's recommendation, which allows for a three -year temporary suspension of transportation impact fees for changes in use that do not add square footage and provide direction to staff. MAYOR'S RECOMMENDATION: Forward Option Ito the November 15, 2011 City Council ordinance agenda for first reading. MAYOR 41ft 0) DIRECTOR APPROVAL: C Com ttee I coudbil commium Council COMMITTEE RECOMMENDATION: I move to forward the proposed ordinance to First Reading on November 15, 2011 as rV&A'f b-y sfic -#. , , 11-1 Linda KochmarVhair / /gym P6riell, Member PROPOSED COUNCIL MOTION(S): 13T READING OF ORDINANCE (11/15/2011): "I move to forward approval of the ordinance to the December 6, 2011 Council Meeting for adoption. " 2 ND READING OF ORDINANCE (12/6/2011): "1 move approval of the proposed ordinance." (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 ST reading ' ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED - 08/12/2010 RESOLUTION # CITY OF FEDERAL WAY MEMORANDUM DATE: September 12, 2011 TO: Land Use and Transportation Committee VIA: Skip Priest, Mayor FROM: Cary M. Roe, P.E., Director of Parks, Public Works and Emergency Management 0 401, Rick Perez, City Traffic Engineer 0 SUBJECT: Transportation Impact Fee Code Amendment to Temporary Suspend Impact Fee for Changes in Use BACKGROUND: On July 1, 2010, the City implemented the Transportation Impact Fee (TIF) program requiring new development to pay their proportionate share of the cost of new facilities to serve new development consistent with RCW 82.02. Under the impact fee program, all development projects pay the same per trip fee. This provides predictability, simplicity and generally results in a lower traffic fee than the SEPA- based pro -rata mitigation system. Current code (FWRC 19.91) allows the city to collect impact fees on all new development including redevelopment of an existing building from one use to another use if the change increases the number of trips generated. For example, a redevelopment of an existing restaurant to a drive -in bank would pay the net difference between the two uses due to higher trip generation. Below is an example of change in use and resultant traffic impact fee. Example: Convert an existing 2,500 SF Restaurant to a Dive -in Bank Land Use ITE Land Use Code Unit of Measure New Trip Rate Impact Fee Rate Total Fee Cost Per Trio End - $2,729 Drive -in Bank - (Proposed Use 912 sf /GFA 15.49 $20.46 $51,150 Restaurant - (Existing Use 931 sf /GFA 4.49 $13.45 $33,625 Total impact fee $17,525 Due to the economic downturn, development/redevelopment activity within the city over the last couple years has been slow. Vacancy rates for office use are up to 35% and 15% for retail/commercial. To encourage and promote development activity, the Mayor proposes a three -year temporary suspension of transportation impact fees charged for changes in use that do not add new square footage. Essentially, the City would not charge an impact fee for a business to occupy an existing building- when the use of that building is changed such that higher trip generation would result in a higher fee. In the example above, under the temporary suspension this redevelopment would not pay the $17,525 impact fee. The temporary suspension will not apply to new development or redevelopment that increases or expands the gross floor area of an existing building and would automatically expire on December 31, 2014. The temporary suspension may also help to attract new businesses to fill vacant buildings thus generating needed tax revenue for the City. If this temporary suspension is successful, higher traffic volumes may result, with less financial capacity to fund roadway improvements needed to accommodate the new development. cc: Project File Day File K:' [RAF F1( `2008 11 F I IF Momtorium l0 -17 LUiC IlF Suspension Memo_`$ -i0 -1 I.doo ORDINANCE NO. AN ORDINANCE of the City of Federal Way, Washington, relating to Transportation Impact Fee (TIF); and adding new sections to chapter 19.91 FWRC. (Amending Ordinance Nos. 09 -627) WHEREAS, the City established chapter 19.91 FWRC authorized by Chapter 82.02 RCW to require development within the City to pay a proportionate share of the cost of new facilities to serve new development activity through the assessment of impact fees; and WHEREAS, the City Council finds that due to the current economic conditions development within the City has been slow creating vacancy rate of up to 35 %; and WHEREAS, the Council finds that it is in the public interest to amend the FWRC establishing a temporary suspension of the transportation impact fee for changes in use to encourage and promote development activity; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1 . Chapter 19.91 of the Federal Way Revised Code is hereby amended to add a new section 19.91.065 to read as follows: 19.91.065 Temporary suspension of transportation impact fees relating to change in use Notwithstanding an other of this chapter, the City temporarily sugpends the imposition of transportation impact fees to the extent the assessment of the fee is the result of a change to a land use category that results in a higher fee. This Section shall not apply to a project that expand the gross floor area of an existing building; uilding; and provided that this Section applies only to the use, renovation or remodeling of existing structures and does not appl�to redevelopment projects in which existing structures are replaced. This Section shall apply to projects for which complete building applications are filed with the City between the effective date of this ordinance and December 31, 2014. This Section shall automatically expire on December 31, 2014. Ordinance No. 11- Page I of 3 Rev 1 /10 Section 2. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this chapter, or its application to any person or situation, be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this chapter or its application to any other person or situation. The City Council of the City of Federal Way hereby declares that it would have adopted this chapter and each section, subsection, sentence, clauses, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 3. Corrections The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener /clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 4. Ratification Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 5. Effective Date This ordinance shall take effect and be in force thirty (30) days from and after its passage and publication, as provided by law. Ordinance No. H- Page 2 of 3 Rev 1 /10 PASSED by the City Council of the City of Federal Way this day of , 20 ATTEST: CITY CLERK, CAROL MCNEILLY, CMC APPROVED AS TO FORM: CITY OF FEDERAL WAY MAYOR, SKIP PRIEST CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO.: Ordinance No. 11- Page 3 of 3 Rev 1/10 COUNCIL MEETING DATE: November 15, 2011 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT SEPA exemptions for projects located in critical areas. POLICY QUESTION Should the City amend the Federal Way Revised Code (FWRC) to make all standard State Environmental Policy Act (SEPA) exemptions applicable to projects located in critical areas? COMMITTEE Land Use /Transportation Committee MEETING DATE: November 7, 2011 CATEGORY: ❑ Consent ® Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Contract Planner Jim Harris DEPT: Community & Economic Development Summary: The proposed amendment to the Federal Way Revised Code (FWRC) Title 14, "Environmental Policy," would make all State Environmental Policy Act (SEPA) exemptions applicable to projects located in critical areas (wetlands and their buffers, stream buffers, steep slopes, etc.). Currently, the adopted SEPA rules state that a number of the standard SEPA exemptions are not applicable, if the proposed project is located within or in close proximity to critical areas. The effect of the current language is that many smaller projects (of the type that would normally be exempt from SEPA review) located within or in close proximity to critical areas must go through the SEPA review process prior to project approval. The proposed amendment would have the effect of exempting those projects from SEPA review. The provision establishing inapplicable SEPA exemptions in FWRC 14.30.030 is no longer necessary for these types of proposals, as the critical areas regulations contained in FWRC Title 19, Division V, provide adequate regulation and mitigation of potential impacts to critical areas from these types of proposals. The proposed code amendment would eliminate a regulation that unnecessarily burdens many small scale development projects. Attachments: 1) Draft Adoption Ordinance; 2) Staff Report to the Planning Commission with Exhibit A; 3) Draft minutes of the October 19, 2011, Planning Commission Public Hearing. Options Considered: 1) Adopt the Planning Commission's recommendation as shown in the Draft Adoption Ordinance; 2) Adopt the Planning Commission's recommendation as further amended by the LUTC; 3) Do not adopt the Planning Commission's recommendation. PLANNING COMMISSION'S RECOMMENDATION The Planning Commission recommends adoption of the proposed amendments as written in t he D raft Adop tion Ordinance. MAYOR APPROVAL: 4.4 DIRECTOR APPROVAL: o ee Co Committee ommittee uncil COMMITTEE RECOMMENDATION: I move to forward the Linda Chair ordinance to First Member PROPOSED COUNCIL MOTION(S): IsT READING OF ORDINANCE (November 15,2011): I move to forward approval Council Meeting for adoption. . 5, 2011. Member ordinance to the December 20, 2011, 2" READING OF ORDINANCE (December 20,2011): "I move approval of the proposed ordinance.' (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1 reading -� ❑ TABLED/DEFERRED /NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED - 08/12/2010 RESOLUTION # K: \2011 Code Amendments \SEPA Critical Area Inapplicable Exemptions \COUNCIL Agenda Bill.doc ORDINANCE NO. AN ORDINANCE of the City of Federal Way, Washington, relating to SEPA Exemptions in Critical Areas; amending FWRC 14.30.030 and 14.30.040. (Amending Ordinance Nos. 04 -468; 91 -105; and 90 -40) WHEREAS, the City recognizes the need to periodically modify Title 14 of the Federal Way Revised Code (FWRC), `Environmental Policy," in order to conform to state and federal law, codify administrative practices, clarify and update development regulations as deemed necessary, and improve the efficiency of the regulations and the development review process; and WHEREAS, this ordinance, containing amendments to development regulations and the text of Title 14 FWRC, has complied with Process VI review, chapter 19.80 FWRC, pursuant to chapter 19.35 FWRC; and WHEREAS, it is in the public interest for the City Council to adopt amended regulations pertaining to State Environmental Policy Act (SEPA) exemptions in critical areas within the City of Federal Way; and WHEREAS, the adopted FWRC SEPA rules state that a number of the standard SEPA exemptions are not applicable if the proposed project is located within or in close proximity to critical areas. The effect of the current language is that many smaller projects (of the type that would normally be exempt from SEPA review) located within or in close proximity to critical areas must go through the SEPA review process prior to project approval; and WHEREAS, the proposed code amendment would have the effect of exempting those projects from SEPA review, and the proposed code amendment would eliminate a regulation that unnecessarily burdens many small scale development projects; and WHEREAS, the provision establishing inapplicable SEPA exemptions in FWRC 14.30.030 is no longer necessary, as the critical areas regulations contained in FWRC Title 19, Division V, Ordinance No. 11- Page I of S Rev 1/10 LU provide adequate regulation and mitigation of potential impacts to critical areas from these types of proposals; and WHEREAS, the proposed code amendment action is categorically exempt from SEPA review pursuant to Washington Administrative Code (WAC) Section 197 -11- 800(19); and WHEREAS, the Planning Commission properly conducted a duly noticed public hearing on these code amendments on October 19, 2011, and forwarded a recommendation of approval to the City Council; and WHEREAS, the Land Use /Transportation Committee of the Federal Way City Council considered these code amendments on November 7, 2011, and recommended adoption of the text amendments as recommended by the Planning Commission. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings, The City Council of the City of Federal Way makes the following findings with respect to the proposed amendments. (a) These code amendments are in the best interest of the residents of the City and will benefit the City as a whole as the provision establishing inapplicable SEPA exemptions in FWRC 14.30.030 is no longer necessary, as the critical areas regulations contained in FWRC Title 19, Division V, provide adequate regulation and mitigation of potential impacts to critical areas. (b) These code amendments comply with Chapter 36.70A RCW, Growth Management. (c) These code amendments are consistent with the intent and purpose of Title 14 FWRC and will implement and are consistent with the applicable provisions of the Federal Way Comprehensive Plan. Ordinance No. 11- Page 2 of S Rev 1 /10 LU (d) These code amendments bear a substantial relationship to, and will protect and not adversely affect, the public health, safety, and welfare. (e) These code amendments have followed the proper procedure required under the FWRC. Section 2. Conclusions. Pursuant to chapter 19.80 FWRC and chapter 19.35 FWRC, and based upon the recitals and the findings set forth in Section 1, the Federal Way City Council makes the following Conclusions of Law with respect to the decisional criteria necessary for the adoption of the proposed amendments: (a) The proposed FWRC amendments are consistent with, and substantially implement, the following Federal Way Comprehensive Plan goals and policies: LUG2 Develop an efficient and timely development review process based on a public /private partnership. LUG4 Maximize efficiency of the development review process. LUP6 Conduct regular reviews of development regulations to determine how to improve upon the permit review process. EDP15 The City will continue to implement a streamlined permitting process consistent with state and federal regulations to reduce the upfront costs of locating businesses in the City. EDP18 The City will periodically monitor local and regional trends to be able to adjust plans, policies, and programs. (b) The proposed FWRC amendment bears a substantial relationship to the public health, safety, and welfare because it will allow a streamlined development review process for projects. The critical area code provisions within FWRC Title 19, Division V, will provide adequate protection of the environment and critical areas. Eliminating the SEPA inapplicable exemptions will simplify the development review process for proposals, with less cost and a shorter review time for the applicant. Any potential impacts that are identified for these projects will be Ordinance No. I1- Page 3 of S Rev 1 /10 LU addressed through existing codes or mitigated through the land use process approval as conditions of approval for the project. (c) The proposed amendments are in the best interest of the public and the residents of the City of Federal Way because it provides for the opportunity for a shorter and less costly review process for proposed development and/or redevelopment of structures. In addition the proposed code amendments identify and eliminate regulatory redundancy in the municipal code. Section 3. FWRC 14.30.030 is hereby repealed in its entirety as follows: Section 4 . Chapter 14.30.040 FWRC is hereby amended to read as follows: 14.30.040 Treatment of proposals. The city shall treat proposals located wholly or partially within a critical area no differently than other proposals under this title_ exeept as stated in FAVRG 14.30.030. A ..� Y: vYvvvu for avvutivia in Section 5. Severability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the validity of its application to any other persons or circumstances. Ordinance No. 11- Page 4 of 5 Rev 1110 Lu •.A _ Section 4 . Chapter 14.30.040 FWRC is hereby amended to read as follows: 14.30.040 Treatment of proposals. The city shall treat proposals located wholly or partially within a critical area no differently than other proposals under this title_ exeept as stated in FAVRG 14.30.030. A ..� Y: vYvvvu for avvutivia in Section 5. Severability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the validity of its application to any other persons or circumstances. Ordinance No. 11- Page 4 of 5 Rev 1110 Lu Section 6. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener /clerical errors, references, ordinance numbering, section/subsection numbers, and any references thereto. Section 7. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 8. Effective Date. This ordinance shall be effective five (5) days after passage and publication as provided by law. PASSED by the City Council of the City of-Federal Way this day of 20 CITY OF FEDERAL WAY ATTEST: MAYOR, SKIP PRIEST CITY CLERK, CAROL MCNEILLY, CMC APPROVED AS TO FORM: CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO.: KA2011 Code Amendments \SEPA Critical Area Inapplicable Exemptions \LUTC\Ordinance SEPA Critical Area Exemption.doc Ordinance No. 11- Page 5 of 5 Rev 1 /10 LU CITY Of STAFF REPORT TO THE PLANNING COMMISSION Amendments to Federal Way Revised Code (FWRC) Title 14, "Environmental Policy" Exemptions in Critical Areas Federal Way File No. 11- 103919 -00 -UP Public Hearing of October 19, 2011 I. BACKGROUND AND PROPOSED AMENDMENTS The proposed amendment to the Federal Way Revised Code (FWRC) Title 14, "Environmental Policy," would make all State Environmental Policy Act (SEPA) exemptions applicable to projects located in critical areas (wetlands and their buffers, stream buffers, steep slopes, etc.). Currently, the adopted SEPA rules state that a number of the standard SEPA exemptions are not applicable, if the proposed project is located within or in close proximity to critical areas. The effect of the current language is that many smaller projects (of the type that would normally be exempt from SEPA review) located within or in close proximity to critical areas must go through the SEPA review process prior to project approval. The proposed amendment would have the effect of exempting those projects from SEPA review. The proposed code amendment would eliminate a regulation that unnecessarily burdens many small scale development projects. Specifically, this proposed amendment would eliminate FWRC 14.30.030 and modify FWRC 14.30.040. The Planning Commission is being asked to review the proposed changes to FWRC Title 14 (attached as Exhibit A), and forward a recommendation to the City Council's Land Use/Transportation Committee (LUTC) and City Council. This proposed code revision is part of the 2011 Planning Commission Work Program as adopted by the City Council. II. ANALYSIS OF PROPOSED CODE AMENDMENTS A. Proposed Code Amendments 1. Recommended elimination of FWRC Section 14.30.030 "Exemptions" as follows: 62 M WT W I I • '11 I • ' 1 1 � � • 11 • f•1 b) f 2. Recommended modifications to FWRC Section 14.30.040 "Treatment of Proposals" If the inapplicable exemptions of FWRC 14.30.030 are eliminated as recommended, then FWRC 14.30.040 must be revised to eliminate the reference to section FWRC 14.30.030, and the unnecessary last sentence as identified below and in Exhibit A. "14.30.040 Treatment of proposals. The city shall treat proposals located wholly or partially within a critical area no differently than other proposals under this title_ emoept as s4a4ed in FWRG 14.30.030. .q th e s h e ld d at:,. shall be m ade f all s eh p ropos al s. Th eity shall not B. Rationale for Proposed Change SEPA was adopted in 1971 and is considered to be one of the landmark pieces of environmental legislation in Washington State. At that time, many cities and counties did not have a comprehensive set of development regulations to address and mitigate the wide range of impacts associated with land development. SEPA was viewed as a tool to ensure that minimum standards of environmental protection and impact mitigation were imposed in the development review process. Forty years later, the regulatory landscape has changed dramatically. All cities that plan under the Growth Management Act (GMA) are required to adopt comprehensive sets of development regulations, including zoning codes, subdivision codes, critical areas codes, shoreline regulations, traffic mitigation standards, stormwater regulations, etc. These codes are in place to address the impacts of development and require mitigation as appropriate. The advent of this more robust regulatory environment has rendered SEPA review redundant for the most part. Despite a growing consensus that SEPA review has become redundant and unnecessary in many instances, it is mandated by state law and must be implemented. The state law however, gives local jurisdictions the option of either: a) applying standard SEPA exemptions to all projects, or b) not allowing the standard SEPA exemptions for projects located in or near critical areas. Current city code requires option b), the more restrictive of the two. City staff recommends that the standard SEPA exemptions apply to all projects (option a, above), including those within or in close proximity to critical areas. The provision establishing inapplicable SEPA exemptions in FWRC 14.30.030 is no longer necessary for these types of proposals, as the critical areas regulations contained in FWRC Title 19, Division V, provide adequate regulation and mitigation of potential impacts to critical areas from these types of proposals. C. Research of Other Cities Regulations As part of the background research, staff reviewed codes of the cities of Kent, Auburn, Tukwila, Sea -Tac, and Kirkland to see how these cities address SEPA exemptions within and outside of critical areas. The cities of Auburn and Tukwila allow standard SEPA exemptions within (and outside of) critical areas (the same approach we are recommending for Federal FWRC Code Amendments, Exemptions in Critical Areas File 11- 103919 -00 -UP October 19, 2011, Planning Commission Public Hearing Page 2 of 5 Way). Both of these cities rely on their critical area codes, rather than SEPA review to mitigate impacts to critical areas. Conversely, the cities of Sea -Tac, Kent, and Kirkland all state that a number of the standard SEPA exemptions are not applicable if the proposed project is located in close proximity to critical areas, as the FWRC currently does. III. PROCEDURAL SUMMARY Public notice of the October 19, 2011, Planning Commission public hearing was published on October 1, 2011, and posted on September 30, 2011, in accordance with the city's procedural requirements. As of this date, no comments have been received from the public on this proposal. IV. DECISIONAL CRITERIA FWRC Chapter 19.80.130 provides criteria for zoning text amendments. The following section analyzes compliance of the proposed zoning text amendments with the criteria provided by this chapter. The city may amend the text of the FWRC only if it finds that: 1. The proposed amendments are consistent with the applicable provisions of the comprehensive plan. The proposed FWRC text amendments are consistent with the following Federal Way Comprehensive Plan (FWCP) policies: LUG2 Develop an efficient and timely development review process based on a public /private partnership. LUG4 Maximize efficiency of the development review process. LUP6 Conduct regular reviews of development regulations to determine how to improve upon the permit review process. EDP15 The City will continue to implement a streamlined permitting process consistent with state and federal regulations to reduce the upfront costs of locating businesses in the City. EDP18 The City will periodically monitor local and regional trends to be able to adjust plans, policies, and programs. 2. The proposed amendments bear a substantial relationship to public health, safety, or welfare. The proposed FWRC text amendments bear a substantial relationship to the public health, safety, and welfare because they will allow a streamlined development review process for projects. The critical area code provisions within FWRC Title 19, Division V, will provide adequate protection of the environment and critical areas. Eliminating the SEPA inapplicable exemptions will simplify the development review process for these applicable proposals with less cost and a shorter review time for the applicant. Any potential impacts that are identified for these projects will be addressed through existing codes or mitigated through the land use process approval as conditions of approval for the project. FWRC Code Amendments, Exemptions in Critical Areas File 11- 103919 -00 -UP October 19, 2011, Planning Commission Public Hearing Page 3 of 5 3. The proposed amendments are in the best interest of the residents of the city. Approval of the proposed text amendments would benefit the city as a whole as they would provide the opportunity for a shorter and less costly review process for proposed development and/or redevelopment of structures. The FWRC critical area provisions contain appropriate regulation and protection from any improvements within critical areas. It is in the best interest of the residents of the city that the city identifies and eliminates regulatory redundancy in the municipal code. V. STAFF RECOMMENDATION Based on the above staff analysis and decisional criteria, staff recommends that the following amendments to FWRC Title 14, "Environmental Policy" be recommended for approval to the Land Use /Transportation Committee (LUTC) and City Council. 1. Elimination of FWRC 14.30.030, "Exemptions." 2. Modifications as identified in Exhibit A to FWRC 14.30.040, "Treatment of Proposals." VI. PLANNING COMMISSION ACTION Consistent with the provisions of FWRC Chapter 19.80.240, the Planning Commission may take the following actions regarding the proposed development code text amendments: 1. Recommend to the City Council adoption of the FWRC text amendments as proposed; 2. Modify the proposed FWRC text amendments and recommend to the City Council adoption of the FWRC text amendments as modified; 3. Recommend to the City Council that the proposed FWRC text amendments not be adopted; or 4. Forward the proposed FWRC text amendments to the City Council without a recommendation. EXHIBIT Exhibit A — Proposed Code Amendment: • FWRC Title 14, `Environmental Policy," 14.30.030 and 14.30.040 FWRC Code Amendments, Exemptions in Critical Areas File 11- 103919 -00 -UP October 19, 2011, Planning Commission Public Hearing Page 4 of 5 Exhibit A October 19, 2011, Planning Commission Staff Report Proposed Code Amendments Federal Way Revised Code Title 14, "Environmental Policy" iiii- 061 1 0. . M�W •�. 14.30.040 Treatment of proposals. The city shall treat proposals located wholly or partially within a critical area no differently than other proposals under this title_ detemiinatien shall be made for- 11 eFi lieal area.- (Ord. No. 04 -468, § 3, 11- 16 -04; Ord. No. 90-40, § 1(20.280.20), 2- 27 -90. Code 2001 § 18 -144.) DRAFT CITY OF FEDERAL WAY PLANNING COMMISSION October 19, 2011 City Hall 7:00 p.m. Council Chambers MEETING MINUTES Commissioners present: Merle Pfeifer, Hope Elder, Wayne Carlson, Tom Medhurst, and Tim O'Neil. Commissioners absent: Lawson Bronson and Sarady Long. Staff present: Planning Manager Isaac Conlen, Contract Planner Jim Harris, Senior Planner Deb Barker, Assistant City Attorney Peter Beckwith, and Administrative Assistant II Tina Piety. CALL TO ORDER Chair Pfeifer called the meeting to order at 7:00 p.m. APPROVAL OF MINUTES The minutes of September 7, 2011, were approved as presented. AUDIENCE COMMENT None ADMINISTRATIVE REPORT None COMMISSION BUSINESS PUBLIC HEARING — SEPA Exemptions in Critical Areas in all Zoning Districts Contract Planner Harris delivered the staff report. State Environmental Policy Act (SEPA) environmental review is required for any proposal which involves a government "action," and is not categorically exempt. Project actions involve an agency decision on a specific project, such as a construction project or timber harvest. Non - project actions involve decisions on policies, plans, or programs, such as the adoption of a comprehensive plan, development regulations, or a six -year road plan. The city's Growth Management Act (GMA) plan and current development regulations has rendered SEPA review redundant for many proposals. Proposals such as a home addition, small office building, short plat, eight inch sewer line, etc., typically do not require (trigger) SEPA review. However, if these improvements /actions are proposed in a critical area then SEPA review is required. The proposed code amendments would allow the standard SEPA exemptions for projects in critical areas. As a result, projects in critical areas will be treated no differently than projects outside of a critical area. The city will rely on its critical area code to address impacts of development and require mitigation, as appropriate. The city's codes are more than adequate to protect and preserve critical areas. Modification of the code will streamline the development review process; with less cost and shorter review time for applicants. There was no public comment. KAPIanning Commission \2011\Meeting Summary 10- 19 -11doc Planning Commission Minutes Page 2 October 19, 2011 Commissioner Carlson complimented staff on their work. He stated that the proposed amendments will not lessen protection and will remove redundancies. Commissioner O'Neil asked what regulations the city has for displacing wetlands. Contract Planner Harris stated that the city's critical areas codes have substantial regulations for displacing wetlands. Commissioner Carlson noted that anyone seeking to displace a wetland must also apply for a separate permit from the Army Corps of Engineers. Commissioner Carlson moved (and it was seconded) to recommend adoption of the amendments as proposed by staff. The motion carried unanimously. PUBLIC HEARING – Temporary Uses, FWRC 19.275 Senior Planner Barker delivered the staff presentation. She noted a change that should be made to Exhibit A. On page 2 of 5, 19.275.030(1)(c)(ii), the sentence should end as follows: "...shall not be required to obtain a temporary use permit," not "business registration." The existing temporary use code: duplicates much of the temporary business license code; is not consistent with the temporary business license code; places unnecessary limitations on temporary uses within certain zones; and hampers economic development. The changes proposed to the temporary use regulations are inter - related to the temporary business regulations. In fact, temporary uses really are the same as temporary businesses. The proposed amendments to the temporary business regulations are relevant to consideration of the proposed amendments to the temporary use code. However, Planning Commission purview does not extend to the temporary business codes because they are not zoning and development regulations (Federal Way Revised Code [FWRC] Title 19). Only the City Council reviews changes to business provisions (FWRC Title 12). The proposed temporary business amendments are discussed in the staff report and presentation, even though the Planning Commission will not act on them. Temporary uses are divided into two types. Class I (which requires Process I approval) includes: seasonal retail sales; farmers markets; festivals, fairs, and carnivals; and similar uses of a transitory nature. Class II (which requires Process III approval) includes: critical and essential human services like food banks or clothing banks. It does not include homeless shelters The existing requirements for temporary uses and temporary business are duplicative; there are dual reviews, dual fees, and similar requirements. What this means for a temporary flower stand use/business is that they would have to apply for a temporary use approval AND a temporary business license. There would be two fees and approval timelines that are different. It is confusing and there is no reason for it to be so complicated. The City is here to foster business —not discourage it. Most of the time, temporary uses and temporary businesses are essentially the same thing. We only need one permit to review and approve a temporary business. With this proposed code amendment, when a business license is obtained, that is all the approval that a temporary use needs. This concept is addressed in the temporary use code amendment by referencing temporary business license provisions, and vice versa with temporary licenses. Staff made the approval time consistent (90 days), and every business gets one opportunity for one 90 day extension. After that it is no longer a temporary use but a permanent use, and zoning approval is required. Another proposed change is to allow temporary uses to operate in any zone. Current code limits them only to zones where they are not allowed. All of the performance standards apply to temporary uses, even though an applicant will not be obtaining a temporary use permit. The standards are again referenced in the license chapter. In addition, director discretion will be allowed. With the proposed code amendments, the flower stand that originally had to obtain two separate approvals now only has to obtain one license, has an opportunity for an extension, and will still need to meet the performance standards. In addition, they will be able to operate in any zone, as long as the performance standards are met. K\PlanningCommission\201 IVoleeting Summary 10- 19- 11.doc Planning Commission Minutes Page 3 October 19, 2011 Commissioner feedback from the September 7, 2011, study session is incorporated into the proposed amendments. One of the topics was about temporary and permanent use competition. Commissioner feedback was not to discourage temporary businesses from competing with brick and mortars. To that end, the code amendment does not limit temporary businesses or uses. It does have maximum timelines for temporary businesses. Another topic was about restricting temporary uses to zones in which they are not allowed. That is what the current code prescribes. Commissioner feedback was not to restrict temporary uses. The code amendment allows temporary uses in all zones, subject to criteria. Another topic was an exemption to businesses that operate for less than three days. The city's city clerk was not comfortable exempting all temporary businesses operating less than three days from license requirements, so the proposed amendments require businesses to get a license regardless of duration. However, the proposed amendments include outright exemptions for smaller businesses such as cookies sales, car washes, residential garage sales, and lemonade stands. In addition, the city clerk and director are given exemption discretion and clear authority. At the study session, we discussed mobile food trucks. Mobile foot units, as King County refers to mobile food trucks, are not called out with specific code language in the proposed amendments, yet they are addressed within the code amendments as temporary uses and temporary businesses. If they exceed the 180 day window in a calendar year, they become permanent, just as any other temporary use would become permanent. Lastly, we discussed tax collection. The state indicated that the tax is to be collected in the jurisdiction that the car is picked up. We propose to address this issue through implementation of the temporary business code, which the council must amend. The hearing was opened for public comment. John Tsakonas, CEO & Owner, Evergreen Sales and Lease, Inc., 33216 Pacific Highway South — He has been doing business in Federal Way for over ten years. He had submitted a letter via email to the Commission. He is concerned about allowing temporary care sales. The last one in July almost put him out of business; he is only just now recovering. They come into our city and take away our buyers and money. Not only for the sale of the car, but the maintenance as well. He has spoken to other car dealers who feel the same. Brick and mortar businesses are the backbone of the city. They provide the tax revenue that keeps the city running. He is concerned about staying in business and keeping his employees out of the unemployment line. He is also concerned about the loss of revenue to our growing community. Sam Tsakonas, 33216 Pacific Highway South — He also works for Evergreen Sales and Lease and is concerned about how temporary car sales have adversely affected their business. Off -site sales have killed businesses in Federal Way and put their employees out of work. The city needs to support its people and businesses. We cannot afford to lose any more people or businesses. Public comment was closed. Commissioner Medhurst commented that he is sympathetic to the concerns raised. In addition, he is concerned that a temporary business can do business in any zone. Commissioner Carlson expressed concern over the length of time a temporary business can do business in residential zones (90 days with a 90 day extension, for a total of 180 days). That is too long for a flower stand to be located on the corner outside your house. He suggested Class I temporary uses be limited to 15 days, with a 15 day extension. He asked what is meant by significant impact and stated the decisional criteria need more definition. Commissioner Elder commented that she is finding the decision whether to allow temporary uses in all zones difficult to make. She is a strong believer in free enterprise, but is also very concerned over the effect they have on the city's brick and mortar businesses. Many Commissioners agree. Commissioner KAPlanning Commission\201 RMeeting Summary 10 -19 -1 Ldoc Planning Commission Minutes Page 4 October 19, 2011 O'Neil commented that a brick and mortar business could always do their own temporary car sales. Commissioners would like to know what regulations other cities have. Planning Manager Conlen responded that staff has been researching this issue, and to date, have not found any cities that regulate temporary car sales. Commissioner Medhurst commented that if he understands correctly, if he has a vacant lot he can rent that to any temporary use for a total of 180 days without having to worry if the lot is zoned for the use. That is half a year. Planning Manager Conlen said that is correct. Chair Pfeifer suggested that all temporary uses be granted 15 days with one 15 day extension. He asked if temporary car sales could have different regulations that would allow them, but would also protect the brick and mortar businesses. Commissioner Elder commented that a total of 30 days is too long for the car sales. The last sale in July lasted 14 or fewer days and we've heard from a business that is just now recovering its losses. Commissioner Carlson commented that he can see car dealerships /sales as a fundamentally different type of business and therefore, would be willing to accept different regulations for them. Senior Planner Barker commented that some cities do make distinctions between temporary businesses. The Commission discussed mobile food trucks. Commissioner Carlson said that he views dining at a food truck as a different experience from dining at a restaurant and sees no reason to restrict a food truck from parking in front of a restaurant. Chair Pfeifer thinks it would be detrimental to a restaurant to have a food truck parked in front of (or near) it. Commissioner Medhurst asked if the city is currently licensing mobile food trucks. Senior Planner Barker commented that to our knowledge, the city does not have any food trucks that serve meals operating in the city. We do have ice cream vendors and trucks that serve meals at events. Planner Manager Conlen commented that the city does not have a large workforce to support a food truck, but if we had any, we would license it. There are different types of food trucks and the Commission discussed which type is temporary and which (if any) is permanent. Chair Pfeifer commented that at the study session we discussed limiting temporary food trucks to three days. What happened with that idea? Senior Planner Barker responded that the city clerk wants every business to be registered no matter how long they operate in the city. However, an outright exemption of three days is allowed for smaller businesses such as cookies sales, car washes, residential garage sales, and lemonade stands. City Attorney Beckwith suggested that staff further research the issues raised and return with more information that may help the Commissioners formulate a decision. Commissioner Carlson moved (and it was seconded) to continue the public hearing on Temporary Uses, FWRC 19.275, to the December 7, 2011, Planning Commission meeting at 7:00 p.m. in the City Hall Council Chambers. The motion carried unanimously. ADDITIONAL BUSINESS Administrative Assistant II Piety commented that the city is attempting to save money wherever possible. In light of this, she asked the Commissioners if they would object if she no longer mailed them an agenda packet. She would continue to email them the agenda packet and would provide a hard copy at the meeting. The Commissioners had no objection. She also noted that Commissioners drink little of the provided coffee; she asked if they would object if she only made one container of either regular or decaffeinated. The Commissioners discussed it and decided they would bring their own coffee if they want it and she no longer needs to provide them with coffee. They did request she provide them with water. ADJOURN The meeting was adjourned at 8:50 p.m. KAPlanning Commission\201 IWeeting Summary 10- 19- 11.doc COUNCIL MEETING DATE: ................._1.....1.. _11 1..�f......�.5 �[- 1. 1.......... ............................... ...............ITEM... #.'... — v� CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL S UBJECT: Puget Sound Energy (Electric) Franchise Ordinance POLICY QUESTION Should the City grant Puget Sound Energy (Electric) a Franchise Ordinance to install, operate and maintain their electrical light and power system within the City of Federal Way? COMMITTEE: Finance, Economic Development and Regional MEETING DATE October 25, 2011 Affairs Committee CATEGORY: COUNCIL ACTION: ❑ APPROVED ❑ Consent ® Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ n Othe STAFF REPORT BY Marwan Salloum, P.E., Deputy Public Works Director DEPT: Public Works Attachments: Memorandum to the Finance, Economic Development and Regional Affairs Committee dated October 25, 2011. Options Considered: 1. Approve the Ordinance and forward to the November 1, 2011 City Council meeting for first reading. 2. Modify the Ordinance and forward to the November 1, 2011 City Council meeting for first reading. 3. Reject the Ordinance and provide direction to staff. MAYOR'S RECOMMENDATION The Mayor recommends forwarding Option 1 to the November 1, 2011 City Council Ordinance Agenda for first reading. , 10 MAYOR APPROVAL: DIRECTOR APPROVAL: ff6u Committee Council COMMITTEE RECOMMENDATION Committee recommends forwarding Option 1 to the November 1, 2011 City Council Ordinance Agenda for first reading. Jeanne Burbidge. Member PROPOSED C 6 UNCIL MOTION: v 1 READING OF ORDINANCE (11/01/2011): "1 move to forward the ordinance to a second reading for enactment on the November 15, 2011 City Council Consent agenda. " 2 READING OF ORDINANCE (11/15/2011) "1 move approval of the Puget Sound Energy (Electric) Franchise Ordinance. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) , COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # �$g ❑ DENIED 1ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 02/06/2006 RESOLUTION # CITY OF FEDERAL WAY MEMORANDUM DATE: October 25, 2011 TO: Finance, Economic Development, and Regional Affairs Committee VIA: Skip Priest, Mayor � Marwan Salloum, P.E., Deputy Public Works Director FROM: Cary M. Roe, P.E., Director of Parks, Public Works and Emergency Management tok SUBJECT: Puget Sound Energy (Electric) Franchise Ordinance BACKGROUND In 2008, the City's electrical franchise with Puget Sound Energy (PSE) expired. Since then, Staff and PSE have been actively negotiating a new franchise that has resulted in the attached proposed franchise ordinance. Under the proposed franchise the City will grant PSE non - exclusive use of City right -of -way for PSE's electrical transmission and distribution system for a period of ten years. In addition, PSE has agreed to pay the City five thousand dollars ($5,000) for administrative costs incurred in preparing and approving the franchise. PSE will maintain insurance of $5 Million combined single limit for commercial general liability and $5 Million for automobile insurance. The franchisee may self - insure against such risks in such amounts consistent with good utility practices. The proposed franchise requires PSE to post a performance bond for the sum of $50,000 which will remain in effect for the term of the Franchise. Additional bonding of up 120% of the cost of the work or improvements may be required as a condition of the right of way permit before commencing any construction work that exceeds $100,000 in value within the City to guarantee performance of construction, maintenance or repair in accordance with any permits required by this Franchise. KAFEDRA02011 \10 -25 -11 Puget Sound Energy (electric) Franchise Ordinance memo.doc Revised: 8/1/2011 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, GRANTING PUGET SOUND ENERGY, INC., A NONEXCLUSIVE FRANCHISE TO OCCUPY RIGHTS -OF -WAY OF THE CITY OF FEDERAL WAY, WASHINGTON, WITHIN THE SPECIFIED FRANCHISE AREA FOR THE PURPOSES OF TRANSMISSION, DISTRIBUTION AND SALE OF ELECTRICAL ENERGY FOR POWER, HEAT, AND LIGHT AND ANY OTHER PURPOSE FOR WHICH SUCH ENERGY CAN BE USED. WHEREAS, Puget Sound Energy, Inc., has requested a franchise from the City of Federal Way, in order to install, operate and maintain an electrical light and power system in rights -of -way; and WHEREAS, the City Council of Federal Way finds that it is in the public interest to grant such a franchise, which will specify the rights and duties of Puget Sound Energy; Inc., through a franchise; and WHEREAS, RCW 35A.47.040 permits the City of Federal Way to grant nonexclusive franchises for the use of public streets, bridges or other public ways for, inter alia, poles, conduits, tunnels, towers and structures, pipes and wires and appurtenances for transmission, distribution and sale of electrical energy for power, heat, light and any other purposes for which such energy can be used; and WHEREAS, in granting such a nonexclusive franchise, the City of Federal Way reserves such other powers and authorities granted to Washington code cities by general law; ORD # , PAGE 1 07772- 0926/LEGAL 17833979.1 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 4. - Definitions Where used in this Franchise the following terms shall be defined as follows: 1.1 "City" means the City of Federal Way, Washington, a municipal corporation of the State of Washington, and its successors and assigns. 1.2 "City Code means the Federal Way City Code as amended from time to time. 1.3 "Council" means the City of Federal Way Council acting in its official capacity. 1.4 "Director" means the Public Works Director, or designee, of the City of Federal Way Public Works Department. 1.5 "Facilities" means, collectively, any and all electric transmission and distribution systems, including but not limited to, poles, wires, lines, conduits, ducts, cables, braces, guys, anchors and vaults, transformers, switches, meter- reading devices, fixtures, and communication systems; and any and all other equipment, appliances, attachments, appurtenances and other items necessary, convenient, or in any way appertaining to any and all of the foregoing, whether the same be located over or under ground. 1.6 "Franchise Area" means rights -of -way for public roads, streets, avenues, alleys, and highways of the City as now existing, or as hereafter laid out, platted, dedicated or improved within the present limits of the City depicted on Exhibit A and as such limits may be hereafter extended; all City owned utility easements dedicated for the placement and location of various utilities provided such easement would permit Franchisee to fully exercise the rights granted under this Franchise within the area covered by the easement. The Franchise Area does not, however, include (a) any ORD # , PAGE 2 07772- 0926/LEGAL 17833979.1 other public property owned, in whole or in part, leased, or otherwise occupied by the City, or (b) Franchisee -owned or leased properties or easements of any kind. 1.7 "Franchisee" means Puget Sound Energy, Inc., and its permitted successors and assigns as provided in Section 32.3 herein. 1.8 "Guy Wire" means a tensioned cable designed to add stability to a utility pole subject to unbalanced forces. The cable could be anchored to the ground or aerially to another pole at a distance from the utility pole. 1.9 "Transmission Lines" means electrical transmission lines of a voltage of 115 KV or more including poles and wires. Section 2. Grant/Acceptance 2.1 Grant of Franchise The City hereby grants to Franchisee, subject to the terms of this Franchise, the nonexclusive right to enter upon the Franchise Area for the limited purpose of setting, erecting, laying, constructing, extending, supporting, attaching, connecting, excavating, installing, maintaining, restoring, repairing, replacing, enlarging, operating and using Facilities in, upon, over, under, along, across and through the Franchise Area. This Franchise is specifically limited to the exercise of the foregoing rights with respect to Facilities owned and operated by Franchisee. This Franchise does not permit Franchisee to lease, rent, or otherwise allow use of conduits, space or capacity provided by the Facilities within the Franchise Area to other third -party telecommunications providers unless required by law, government regulation, or approved by the City and/or Franchisee contractually requires that the third -party telecommunications provider have sufficient rights from the City, independent of Franchisee, to use and operate within the Franchise Area. ORD # , PAGE 3 07772- 0926/LEGAL 17833979.1 2.2 Acceptance by Franchisee Franchisee shall have no rights under this Franchise, nor shall Franchisee be bound by the terms and conditions of this Franchise, unless Franchisee shall, within sixty (60) days after the effective date of this Franchise, file with the City its written acceptance of this Franchise and all of its terms and conditions. Section 3. Non - Franchise Area Property 3.1 City Property This Franchise does not and shall not convey any right to Franchisee to install its Facilities on, under, over, across, or to otherwise use City -owned or leased properties of any kind outside the Franchise Area, or to install Facilities on, under, over, across or otherwise use any City owned or leased property within the Franchise Area other than public roads, streets, avenues, alleys and highways. Notwithstanding the foregoing, existing Facilities installed or maintained by Franchisee on public grounds and places within the City in accordance with prior franchise agreements (but which such Facilities are not within the Franchise Area as defined in this Franchise) may continue to be maintained, repaired, and operated by Franchisee at the location such Facilities exist as of the effective date of this Franchise for the term of this Franchise; provided no such Facilities may be enlarged, improved, or expanded without the prior approval of the City. 3.2 Franchisee Property This Franchise shall not govern or apply to any Facilities located on Franchisee -owned or leased properties or easements (whether granted by a private or public entity and whether now existing or hereafter acquired) and such Facilities are not, and will not be deemed to be, located pursuant to rights derived from this Franchise or the City. Section 4. Term Subject to Franchisee filing its acceptance pursuant to Subsection 2.2, the term of this Franchise shall be for a period of ten (10) years commencing on the effective date of this Franchise, ORD # , PAGE 4 07772- 0926/LEGAL 17833979.1 unless terminated earlier pursuant to this Franchise or other applicable law. This Franchise may be renewed for one additional ten (10) year period upon written request of Franchisee, not more than two (2) years or less than one hundred eighty (180) days prior to the expiration of the initial term. Section 5. Location of Facilities 5.1 Location Franchisee shall provide the City, upon the City's reasonable request, copies of available maps in use by Franchisee showing the location of its Facilities within the Franchise Area, provided the request is limited to Facilities at specific locations in the Franchise Area. In addition, the approximate location of new Facilities installed by Franchisee within the Franchise Area, including underground Facilities and appurtenances, their depths below surface of ground or grade of a right -of -way, and any related existing equipment to which the Facilities are connected shall be depicted on a map and submitted to the City within sixty (60) days of the installation of the Facilities. Upon written request of the City, Franchisee shall update such map to reflect actual or anticipated improvements to such new Facilities. Any such map (or update thereof) so submitted shall be for informational purposes only, without warranty as to accuracy, and shall not obligate Franchisee to undertake any specific improvements, nor shall such map be construed as a proposal to undertake any specific improvements. 5.2 GIS / Digital Data At such time as Franchisee develops and deploys Geographic. Information System ( "GIS ") technology for its electrical utility maps and records throughout the Franchise Area and has such information available in digital GIS format for its Facilities within the Franchise Area, the City may request, by written notice to Franchisee, that the parties promptly instigate negotiations with the objective of amending this Section 5.2 to make provision for the distribution of such maps to the City in digital GIS format and for disclaimers the parties may ORD # , PAGE 5 07772- 0926/LEGAL 17833979.1 include relative to such distribution if such disclaimers are agreed to by both parties. In the event the parties cannot, within a reasonable period of time after Franchisee's receipt of the City's request, reach an agreement as to the terms of such amendment, either party may, by written notice to the other party, demand that the foregoing issue be submitted to mediation under and pursuant to the Mediation Rules of the Judicial Arbitration and Mediation Service in Seattle, Washington. If the parties cannot resolve the issue through mediation, this Franchise may be terminated by either party providing sixty (60) days written notice to the other party. 5.3 Design Markings In the event the City desires to design new streets or intersections, renovate existing streets, or make any other City involved improvements within the Franchise Area, Franchisee shall at the City's reasonable request, provide the location of Franchisee's underground Facilities within the relevant portion of the Franchise Area by either field markings or by locating the Facilities on the City's design drawings, and shall provide all other reasonable cooperation and assistance to the City in determining the location of such Facilities. Upon reasonable request by the City, Franchisee shall verify the location and depth of its underground Facilities within the relevant portion of the Franchise Area by excavating (e.g., pot holing) at no expense to the City. 5.4 No Warranty or Waiver Nothing herein is intended to relieve the parties of their respective obligations arising under Chapter 19.122 RCW or other applicable law with respect to determining the location of utility facilities prior to construction. Further, neither the provisions of this Franchise nor the absence of any specific provision in this Franchise is intended to limit, detract from or render ineffective any disclaimer (including, without limitation, any disclaimer as to accuracy or completeness) placed by Franchisee on any map furnished to the City pursuant to this Section 5. ORD # , PAGE 6 07772- 0926/LEGAL 17833979.1 Section 6. Noninterference of Facilities Franchisee agrees to maintain its Facilities and perform any and all activities authorized by this Franchise: (a) so as not to unreasonably interfere with the free passage of traffic; and (b) in accordance with the laws of the State of Washington and City Code requirements, franchise provisions, regulations, resolutions and rules, as now existing or as hereafter amended; provided, however, in the event of any conflict or inconsistency between City Code requirements or such City regulations, resolutions and rules and the terms and conditions of this Franchise, the terms and conditions of this Franchise shall govern and control. This requirement applies whether or not the work is performed by the Franchisee, its agents, employees, subcontractors, or other third parties at Franchisee's direction. Section 7. Requirement to Obtain Permits 7.1 Permits and Permit Applications Franchisee shall, at its expense, obtain all permits, (including rights -of -way permits), and pay all permit fees required by applicable City ordinances, regulations, resolutions and rules prior to commencing any work within the Franchise Area except for emergency work under Section 7.2 and routine maintenance under Section 7.3. Franchisee permit applications shall, as required by generally applicable City Code requirements and regulations, show the position and location of the proposed Facilities to be constructed, laid, installed, or erected at that time, show their relative position to existing rights -of -way or property lines upon prints drawn to scale, designate rights -of -way by their names and improvements, such as, but not limited to, sidewalks, curbs, gutters, shoulders of roadway, ditches, paved roadways, roadways to property lines, turnouts, parking strips, telephone or electric distribution poles, and water pipes existing on the ground to be occupied, or as required by the Director. As required by ORD # , PAGE 7 07772- 0926/LEGAL 17833979.1 generally applicable City Code requirements and regulations, Franchisee shall specify the class and type of materials to be used, equipment to be used, and mode of safeguarding and facilitating the public traffic during construction. The manner of excavation, construction, installation, backfill, and temporary structures such as, but not limited to, traffic turnouts and road obstructions shall meet the standards of the City Code and be reasonably satisfactory to the Director. All traffic control shall be in accordance with the right -of -way permit, and as required by the permit shall be in accordance with the Manual on Uniform Traffic Control Devices (MUTCD). The Franchisee shall indicate on any permit application the time needed to complete the work. The time needed to complete the work is subject to approval by the City as a condition of the issuance of the permit or approval. Franchisee shall restore the surface of the Franchise Area as nearly practicable, to its existing or better condition prior to the work. Such restoration responsibility shall continue for the length of the Franchise, but shall not apply to any subsequent repair or restoration made necessary by the acts or omissions of the City or any third party. 7.2 Emergency Exception to Permit Requirement In the event of an emergency in which Franchisee's Facilities within the Franchise Area are in a condition as to immediately endanger the property, life, health or safety of any individual, Franchisee may take action immediately to correct the dangerous condition without first obtaining any required permit so long as Franchisee reasonably attempts to inform the City of nature and extent of the emergency, and the work to be performed, prior to commencing the work. This provision shall not relieve Franchisee from later obtaining any necessary permit for the emergency work. Franchisee shall apply for the required permit the next business day following the emergency work or, in the case of an extended state of emergency, as soon thereafter as practical. ORD # , PAGE 8 07772- 0926/LEGAL 17833979.1 7.3 Maintenance Franchisee shall have the right to conduct maintenance to repair, modify, supplement, replace or upgrade the Franchisee's Facilities within the Franchise Area, provided that the Franchisee shall obtain any permits or authorizations required by all applicable federal, state, and local laws, rules and regulations prior to the performance of any said routine maintenance. Notwithstanding any requirements contained herein, routine maintenance that does not interfere with pedestrian or vehicular traffic (such as inspection, switching, or opening vaults and enclosures) does not require a permit. 7.4 Notice of Entry At least forty-eight (48) hours prior to entering the Franchise Area adjacent to private property to perform excavation or removal of Facilities that is likely to have a material adverse impact on the adjacent private property, except those emergency activities exempted from permit requirements, a written notice describing the nature and location of the work to be performed shall be physically posted upon the affected private property by Franchisee. A pre- printed door hanger may be used for this purpose. Section 8. Standard of Performance The Franchisee shall not excavate a trench and leave the jobsite at the end of the workday without complying with the following: Trench areas within a driving lane in the Franchise Area must be plated or patched, either temporarily or permanently, before the end of the work day in which they have been opened. Trench areas within the Franchise Area, but not with in a driving lane, must also be patched within the time limits specified by the City on the right -of -way use permit. Final surface restoration shall be completed, weather permitting, within the time limits specified by the City in the right -of -way use permit. Any asphalt overlay completed within the Franchise Area during the five (5) year -period immediately prior to the date of permit application (or ORD # , PAGE 9 07772- 0926/LEGAL 17833979.1 such longer time as permitted by generally applicable City Code requirements or regulations) shall not be open cut by Franchisee unless required by an emergency and subject to the provisions of Section 7.2 above. If and as required by generally applicable City Code requirements and regulations, Franchisee shall install new asphalt overlay on any street that is open cut, whether in an emergency or otherwise, for a minimum of one (1) block (approximately 500 feet) in length in both directions from the open cut, unless determined otherwise by the Director in accordance with the City Code or Department of Public Works internal policies. Franchisee shall not open cut any street without an approved permit except as described in Section 7.2. Permit conditions will be reasonable based on facts and circumstances and a one block in length overlay in both directions from an open cut will not apply in all circumstances. The City may elect, by written request to Franchisee, to have Franchisee install conduit in Franchisee's trenches for the City's use and ownership; provided such work for the City does not unreasonably delay the work of Franchisee, the work is arranged and accomplished upon terms and conditions reasonably acceptable to the City and Franchisee, and the City agrees to reimburse Franchisee for the incremental cost of installing such conduit. Within sixty (60) days of completion of any installation of Franchisee's Facilities within the Franchise Area, Franchisee shall submit to the Director plans showing the "as- built" location of the Facilities. Franchisee shall, in carrying out any authorized activities within the Franchise Area, comply with all applicable laws, codes and standards, as now existing or hereafter adopted or amended, and in compliance with the terms of this Franchise, whether or not the work is performed by the Franchisee, its agents, employees, subcontractors, or other third parties at Franchisee's direction; provided, however, in the event of any conflict or inconsistency of such City laws, codes and standards with the terms and conditions of this Franchise, the terms and conditions of this Franchise ORD # , PAGE 10 07772- 0926/LEGAL 17833979.1 shall govern and control. Section 9. Survey Markers and Monuments Franchisee shall, using a licensed surveyor, immediately replace all markers or monuments disturbed during any work by Franchisee within the Franchise Area. Franchisee shall pay all costs associated with replacing such lost, destroyed or disturbed monuments or markers. Prior to Franchisee commencing any excavation work within the Franchise Area, Franchisee shall, using a licensed surveyor, reference all monuments and markers relating to subdivisions, plats, highways, and other surveys if they are likely to be disturbed. The reference points shall be located so that they shall not be disturbed during the Franchisee's operations under this Franchise. The method of referencing these monuments or other points shall be approved by the City before placement. A complete set of reference notes for monuments and other ties shall be filed with the City. Section 10. Surface Markings /Stakes Prior to Franchisee commencing any excavation work within the Franchise Area, Franchisee shall locate its underground Facilities within the Franchise Area in the vicinity of such excavation work by placing temporary identification surface markings on the pavement or hard ground, made with spray paint, spray caulk or temporary wood stakes of the specific color to identify the type of underground utility Facility, which are color coded and marked to indicate the type of underground Facility, all pursuant to the American Public Works Association Uniform Color Code Marking Standards as now existing or as thereafter adopted or amended, and to Chapter 19.122 RCW. In the event of any conflict or inconsistency between this Section 10 and Chapter 19.122 RCW, as now existing or hereafter amended, Chapter 19.122 will control. ORD # , PAGE 11 07772- 0926/LEGAL 17833979.1 Section 11. Right of City to Undertake Maintenance Work The laying, construction, maintenance, and operation of Franchisee's Facilities within the Franchise Area as granted under this Franchise shall not preclude the City, its accredited agents or its contractors from doing necessary maintenance work contiguous to the Facilities, provided that the Franchisee shall have sufficient notice of blasting or excavating in order that Franchisee may protect its Facilities or property. Section 12. Right of City to Complete Work In the event Franchisee, in performing work within the Franchise Area, fails to comply with any of its obligations under the terms of this Franchise, and such noncompliance continues for a period of ten (10) days after Franchisee receives written notice from the City regarding the noncompliance (or such longer period of time as may be reasonably necessary to achieve compliance so long as Franchisee commences promptly and diligently to effect such compliance), the City may, but in no event is the City obligated to, order such work completed. If the City causes such work to be done by its own employees or by any person or entity other than Franchisee, Franchisee shall, upon the City's written request, immediately reimburse the City for all reasonable costs and expenses incurred by the City in having such work performed, which costs may include the City's reasonable overhead expenses and attorneys fees. However, the City shall not have any electrical work accomplished by any person or entity other than Franchisee unless it is performed by a qualified and licensed electrical contractor reasonably acceptable to Franchisee and in compliance with all applicable federal, state and local laws and regulations and all applicable rules, standards, specifications and requirements of Franchisee then in effect. ORD # , PAGE 12 07772- 0926/LEGAL 17833979.1 Section 13. Relocation of Facilities 13.1 City's Duties In the event the City undertakes any Public Improvement Project (as defined in Section 13.6 below) within the Franchise Area, and such Public Improvement Project requires the relocation of Franchisee's then existing Facilities within the Franchise Area (for purposes other than those described in Section 13.4 below), the City shall: (a) Provide written notice to Franchisee requesting such relocation. within a reasonable time (which in no event will be less than one hundred twenty (120) days) prior to the commencement of such Public Improvement Project; and (b) Provide Franchisee with copies of pertinent portions of the City's plans and specifications so that Franchisee may relocate its Facilities to accommodate such Public Improvement Project. 13.2 Franchisee's Duties After receipt of the City notice under Section 13.1(a) requiring relocation of the Facilities and receipt of the plans and specifications pursuant to Section 13.1(b), Franchisee shall relocate such Facilities within the Franchise Area at no charge to the City so as to accommodate the mutually agreed upon schedule for the Public Improvement Project. When relocating Facilities located within any portion of the Franchise Area in which all other Facilities of Franchisee are located underground, no Guy Wires that cross aerially over any public road, street, avenue, alley or highway within the Franchise Area from one side to the other side are permitted for Transmission Lines, unless Franchisee reasonably determines (e.g., based on safety considerations) that under the circumstances the use of such Guy Wires cannot reasonably be avoided, and any additional cost incurred by Franchisee to accommodate such restriction shall be at Franchisee's expense. Except as provided otherwise herein, Franchisee shall complete relocation of its Facilities ORD # , PAGE 13 07772- 0926/LEGAL 17833979.1 within the Franchise Area at its sole cost and expense. 13.3 Alternative Proposals The Franchisee may, after receipt of written notice requesting a relocation of its Facilities under this Section 13, submit to the City written alternatives to such relocation. The City shall evaluate such alternatives and advise the Franchisee in writing if one or more of the alternatives are suitable to accommodate the work that would otherwise necessitate the relocation of the Franchisee's Facilities. If so requested by the City, the Franchisee shall submit additional information to assist the City in making such an evaluation. The City shall give each alternative proposed by the Franchisee full and fair consideration. In the event the City determines in its sole discretion that there is no other reasonable alternative, the Franchisee shall relocate its Facilities as provided in this Section 13. The Parties agree to exercise good faith, reasonable and timely decision - making especially when issues arise in the field pertaining to relocation. 13.4 Third Party Relocations Whenever (a) any public or private development within the Franchise Area, other than a Public Improvement Project, requires the relocation of Franchisee's Facilities within the Franchise Area to accommodate such development; or (b) the City requires the relocation of Franchisee's Facilities within the Franchise Area for the benefit of any person or entity other than the City, then in such event, Franchisee shall have the right as a condition of such relocation, to require such developer, person or entity to make payment to Franchisee, at a time and upon terms acceptable to Franchisee, for any and all costs and expenses incurred by Franchisee in the relocation of Franchisee's Facilities. 13.5 City Imposed Conditions Any condition or requirement imposed by the City upon any person or entity, other than Franchisee, that requires the relocation of Franchisee's Facilities shall be a required relocation for purposes of Section 13.4 above (including, without limitation, any ORD # , PAGE 14 07772- 0926/LEGAL 17833979.1 condition or requirement imposed pursuant to any contract or in conjunction with approvals or permits for zoning, land use, construction or development); provided, however, (a) in the event the City reasonably determines (and promptly notifies Franchisee in writing of such determination) that the primary purpose of imposing such condition or requirement upon such person or entity is to cause the construction of a water, sewer or storm drainage line or other public street improvement (including without limitation the construction or installation of any traffic signals, street lights, trees, landscaping, bicycle paths and lanes, equestrian trails, sidewalks or other pedestrian amenities) on the City's behalf, and (b) such public street improvement is otherwise reflected in the City's then - current six -year Transportation Improvement plan, then only those costs and expenses incurred by Franchisee in integrating and connecting such relocated Facilities with Franchisee's other Facilities shall be paid to Franchisee by such other person or entity, and Franchisee shall otherwise relocate its Facilities within such segment of the Franchise Area in accordance with the provisions of Section 13.2. 13.6 Definition As used in this Franchise, the term "Public Improvement Project" means any capital improvement or repair within the Franchise Area (including, without limitation, the construction, installation and/or maintenance of any electrical, water, sewer or storm drainage line, traffic signals, street lights, trees, landscaping, bicycle paths and lanes, equestrian trails, sidewalks or other pedestrian amenity) that is undertaken by or on behalf of the City and is funded by the City (either directly with its own funds or with other monies obtained by the City). 13.7 Reservation of Rights Nothing in this Section 13 shall require Franchisee to bear any cost or expense in connection with the location or relocation of any Facilities located on Franchisee -owned or leased properties or easements or other rights not derived from this Franchise, ORD # , PAGE 15 07772- 0926/LEGAL 17833979.1 regardless of whether the same is on public or private property and regardless of whether this Franchise co- exists with such easement. Section 14. Undersroundine of Facilities 14.1 Under ogr unding of Lines Franchisee acknowledges the City's desire to encourage the undergrounding of overhead electrical Facilities within the Franchise Area. The City acknowledges that Franchisee utilizes such overhead Facilities to provide electrical service on non- preferential basis subject to and in accordance with tariffs on file with the Washington Utilities and Transportation Commission. Subject to and in accordance with such tariffs, Franchisee will cooperate with the City in the formulation of policy and regulations. 14.2 By City Request The City may, by written notice to Franchisee, request Franchisee to convert its existing aboveground Facilities within the Franchise Area (of 15,000 volts or less) to underground Facilities in connection with any improvement within the Franchise Area undertaken by the City including, but not limited to, any Public Improvement Project which otherwise requires the relocation of such Facilities in accordance with Section 13 herein. In such event, such undergrounding shall be arranged, provided and accomplished in accordance with applicable provisions of the City Code, and all applicable schedules and tariffs on file with the Washington Utilities and Transportation Commission or its successor; provided that if any term or condition of such City Code and any term or condition of such schedules and tariffs are in conflict, the term or condition of the schedules and tariffs shall govern and control. 14.3 At Franchisee's Election If during the term of this Franchise, Franchisee undertakes a major replacement of any of Franchisee's existing aboveground Facilities within the Franchise Area (of 15,000 volts or less) or installs a major addition of new Facilities within the Franchise Area ORD # , PAGE 16 07772- 0926/LEGAL 17833979.1 (of 15.000 volts or less), such major replacement or addition shall be underground to the extent required by City Code. Such undergrounding shall be done subject to and in accordance with all applicable schedules and tariffs on file with the Washington Utilities and Transportation Commission or its successors. 14.4 Exclusivity This Section 14 shall govern all matters related to undergrounding of Franchisee's Facilities (i.e., conversions or otherwise) in connection with this Franchise. Section 15. City Use of Facilities 15.1 City -Owned Communications Equipment During the term of this Franchise, the City may, subject to Franchisee's prior written consent, which shall not be unreasonably withheld, install and maintain City -owned communications equipment, wires and/or fiber on poles that are owned by Franchisee (in whole or in part), that are located in the Franchise Area. The City's use of such equipment, wires or fibers shall be for the City's own non - commercial municipal communications purposes and such use will be administered under a Joint Facilities Use Agreement between Franchisee and the City. 15.2 City- -Owned Signs During the term of this Franchise, the City may, subject to Franchisee's prior written consent, which shall not be unreasonably withheld, and subject to such reasonable rules and regulations as maybe prescribed by Franchisee from time to time, and subject to the limitations prescribed by RCW 70.54.090 or any other applicable law, post and maintain City signs on Franchisee's poles which are Facilities within the Franchise Area. 15.3 Installation and Maintenance of City -Owned Equipment • Installation and maintenance shall be done by the City at its sole risk and expense, in accordance with all applicable laws, and subject to such reasonable requirements as Franchisee may specify from time to time ORD # , PAGE 17 07772- 0926/LEGAL 17833979.1 including, without limitation, requirements accommodating Franchisee's Facilities or the facilities of other parties having the right to use Franchisee's Facilities. 15.4 Indemnification Franchisee shall have no obligation arising under the indemnity and insurance provisions of this Franchise as to any circumstances directly or indirectly caused by or related to such City -owned communications equipment, wires, fiber and or signs or the installation or maintenance thereof. 15.5 No Rental Charge to City_ Franchisee shall not charge the City a rental fee for the City's use of the poles provided, however, that nothing herein shall require Franchisee to bear any cost or expense in connection with any such installation and/or maintenance by the City. Franchisee may charge the City an administrative fee for the purposes of reviewing such joint facility installations. Section 16. Damage Repair In case of damage to the Franchise Area, or to public and private improvements within or adjacent to the Franchise Area, that is caused (but only to the extent it is caused) by the negligence or willful misconduct of Franchisee or its agents or employees in the exercise of Franchisee's rights under this Franchise, the Franchisee agrees to repair the damage at its own cost and expense. The Franchisee shall, upon discovery of any such damage, immediately notify the City. The City will inspect the damage, and the parties will mutually agree upon a time limit for completion of the repair. If the City discovers any such damage caused, the City shall give the Franchisee notice of the damage and the parties will mutually agree upon a time limit in which the Franchisee must repair the damage. ORD # , PAGE 18 07772- 0926/LEGAL 17833979.1 Section 17. General Maintenance of Facilities 17.1 General Maintenance Franchisee will maintain its Facilities located within the Franchise Area in good operating condition and repair in a manner consistent with applicable law and prudent utility practice, and will comply with the following procedures: (a) Franchisee will provide the City, on an annual basis upon the City's written request, a proposed schedule of its routine Facilities replacement or repair activities within the Franchise Area. (b) Franchisee will meet, at least annually upon the City's written request, with a City representative to discuss the City's concerns regarding the timing, scope, nature or method of such repair or replacement activities within the Franchise Area. Section 18. Emergency Operations and Decommissioned Facilities 18.1 Emergency Operations Prior to the beginning of each winter storm season, Franchisee will, at the request of the City, attend an annual coordination meeting with the City to discuss Franchisee's Emergency Response Plan. At the request of the City, a copy of those portions of Franchisee's Emergency Response Plan that Franchisee makes generally publicly available will be provided to the City at the coordination meeting, along with appropriate telephone numbers and pager numbers used during each emergency. 18.2 Annual Meeting Annually, upon the request of the City, Franchisee will meet with the City Emergency Preparedness department to coordinate emergency management operations and, at least once a year, at the request of the City, Franchisee personnel will actively participate with the EOC in emergency preparedness drills or planning sessions. ORD # , PAGE 19 07772- 0926/LEGAL 17833979.1 18.3 Decommissioned Facilities Franchisee will notify the City if Franchisee elects to permanently decommission any of its Facilities within the Franchise Area. The City will have the sole right, in its discretion, to require Franchisee to remove such decommissioned Facilities from arterial and collector rights -of -way within the Franchise Area. If so required by the City, Franchisee shall remove its permanently decommissioned Facilities from major arterial rights -of -way within the Franchise Area within one hundred twenty (120) days following the later of the date the City notifies Franchisee in writing that such removal is required or the date the Facilities are permanently decommissioned by Franchisee, or such other period as may be mutually agreed by Franchisee and the City. Franchisee shall not be required to remove its permanently decommissioned Facilities from other rights -of -way within the Franchise Area (e.g., residential rights -of -way), but Franchisee otherwise agrees to remove any of its permanently decommissioned Facilities within the Franchise Area at the request of the City as necessary to accommodate public improvement projects or reasonably accommodate other franchised utilities within the Franchise Area. Upon request for a utility locate, Franchisee will provide underground locates for all facilities, including any decommissioned facilities in the City right -of -way. Section 19. Vegetation Management 19.1 General WAC 296-44-31719 states that "[t]rees which may interfere with ungrounded supply conductors should be trimmed or removed." Franchisee shall coordinate its routine vegetation management activities with the City and will trim vegetation in the vicinity of its Facilities within the Franchise Area in compliance with all City ordinances, regulations, resolutions and rules. Trimming and removal of vegetation within and/or adjacent to the Franchise area will be performed using standard practices accepted by the International Society of Arboriculture addressing ORD # , PAGE 20 07772- 0926/LEGAL 17833979.1 vegetation health and aesthetics. However, such obligation to coordinate and comply shall not limit Franchisee's right under this Franchise to cut, trim or otherwise remove vegetation at any time within the Franchise Area which, due to proximity to Franchisee's Facilities, poses an imminent threat to property, public safety or continuity of electrical service. 19.2 Vegetation Management Franchisee will undertake its vegetation management activities within the Franchise Area in a manner consistent with the procedures set forth in this Section and in compliance with all reasonable conditions issued by the City in conjunction with its right -of- way permit. 19.3 Routine., Vegetation Management Activities Franchisee will conduct its routine vegetation management activities within the Franchise Area in accordance with the following procedures: (a) Franchisee will provide the City, on an annual basis, a proposed schedule of its routine vegetation management activities within the Franchise Area. (b) Franchisee will meet, at least sixty (60) days prior to commencing any routine vegetation management activities within the Franchise Area, with a representative of the City to discuss the City's concerns regarding the timing, scope, nature or method of such routine vegetation management activities. (c) Prior to undertaking its scheduled routine vegetation management activities within the Franchise Area, Franchisee will consider any concerns raised by the City and will incorporate the City's reasonable suggestions as to the timing, scope, nature or method of such scheduled routine vegetation management activities. Both parties recognize that differences of ORD # , PAGE 21 07772- 0926/LEGAL 17833979.1 opinion will occur, and if such differences occur, the parties will negotiate in good faith to try to resolve such differences. 19.4 Ve eg tation Removal, Planting and Pruning Activities Franchisee will conduct vegetation removal, planting and pruning projects within the Franchise Area in accordance with the following procedures: (a) Forty-five (45) days prior to commencing any vegetation removal, planting or pruning project within the Franchise Area, Franchisee will notify the City of the project. Such notification will include but not be limited to the following documentation: (i) geographic and electrical system maps of the project; (ii) Vegetation Management Standards; (iii) a copy of any communication between Franchisee and Franchisee's customers with respect to the project and a list of such customers; (iv) a brief vegetation management history and the demographics for the project; and (v) the proposed description of the planned vegetation management activities for the project. In addition, for the following specific types of projects, the notification will also include the following documentation: (vi) for tree removal projects, the notification will identify the tree(s) to be removed and the size, location and reason for removal of the tree(s); (vii) for planting projects, the notification will describe the size, quantity and spacing and the scientific and common names of the new plants; and (viii) for pruning projects, the notification will include a pruning plan that identifies the specific areas to be pruned. (b) Prior to commencing any vegetation removal, planting or pruning project, the City will conduct a project review meeting with Franchisee to discuss the scope of such project, the timing of such project, the landscape plans for such project, and any memoranda regarding such project. At these meetings, Franchisee and the City will review and address tree removal and tree ORD # , PAGE 22 07772- 0926/LEGAL 17833979.1 replacement projects on a case -by -case basis. The City will agree to any tree replacement project that would provide a significant enhancement to the utility corridors within the Franchise Area. Both parties recognize that differences of opinion will occur, and if such differences occur, the parties will negotiate in good faith to try to resolve such differences. (c) Prior to the project review meetings, Franchisee will mark in the field all trees that are candidates for removal. (d) Franchisee will perform all pruning projects within the Franchise Area under the direction of an arborist certified by the International Society of Arboriculture. Such arborist will be mutually agreed upon and jointly retained by Franchisee and the City. Franchisee will pay for up to eight (8) hours of arborist review per pruning project. 19.5 Maintenance Assurance Following completion of any planting project described in paragraph (c) above, Franchisee will provide the following maintenance assurance for such planting project: (a) Franchisee and the City will enter into a maintenance assurance agreement following completion of the planting project. Under the maintenance assurance agreement, Franchisee will agree to ensure proper installation, establishment and maintenance of the planting project for a one -year period beginning with completion of the project. (b) Franchisee will replace any unhealthy or dead plant materials in accordance with the project plan reviewed by the City for such project. Franchisee will remove the dead plant materials from the project area within a reasonable time after receiving notice from the City or otherwise discovering the need for removal. Franchisee may replace the dead material during the next dormancy period (e.g., during the fall and winter months). ORD # , PAGE 23 07772- 0926/LEGAL 17833979.1 Section 20. Default 20.1 Notice of Default In addition to other remedies expressly set forth in this Franchise, if Franchisee shall fail to comply with any of the provisions of this Franchise, the City may serve a written notice to Franchisee ordering such compliance and Franchisee shall have sixty (60) days from the receipt of such notice in which to comply. 20.2 Revocation of Franchise If Franchisee is not in compliance with this Franchise after the expiration of the sixty (60) day period, the City may, by ordinance, declare this Franchise immediately revoked; provided, however, if any failure to comply with this Franchise by Franchisee cannot reasonably be corrected with due diligence within such sixty (60) day period (Franchisee's obligation to comply and to proceed with due diligence being subject to unavoidable delays and events beyond its control), then the time within which Franchisee may so comply shall be extended, upon notice to the Director, for such time as may be reasonably necessary and so long as Franchisee commences promptly and diligently to effect such compliance. Section 21. Limited Rights This Franchise is intended to convey only a limited right and interest to Franchisee in the Franchise Area. This Franchise is not a warranty of title or conveyance of any ownership interest in or to the Franchise Area to Franchisee. Section 22. Performance Bond (a) Within sixty (60) days of the Effective Date of this Franchise, Franchisee will provide a performance bond to the City, in the total sum of $50,000.00 which will remain in effect for the term of this Franchise in a form acceptable to the City. The performance bond is to ensure the faithful performance of Franchisee's obligations under the Franchise including the payment by ORD # , PAGE 24 07772- 0926/LEGAL 17833979.1 the Franchisee of any penalties, claims, liens, fees, or assessments due the City which arise by reason of the transmission, distribution and sale of Electrical Energy within the Franchise Area, except as otherwise provided herein. In the event Franchisee undertakes construction, the cost of which exceeds $ 1 00,000, the City shall have the option of requesting the Franchisee provide and maintain, at its sole cost and expense, an additional performance bond. The amount of the bond shall not exceed one - hundred twenty percent (120 %) of the cost of the work or improvements covered by the bond based on estimated costs immediately following the expiration of the bond. Franchisee will pay all premiums or other costs associated with maintaining the bond. The City may reduce the amount of the performance bond consistent with Franchisee's performance of its responsibilities under this Franchise and applicable law. (b) The performance bond will be from a major financial institution or surety. The performance bond will not require the consent of the Franchisee prior to the collection by the City of any amounts covered by the performance bond. The City will provide to Franchisee reasonable written notice and opportunity to cure any alleged non - compliance of any provision of the Franchise or any penalties, claims, liens, fees or assessments due the City. (c) If the Franchise is terminated, or upon expiration or transfer of the Franchise, the City will return the original bond or sign the necessary documentation to release the bond promptly if Grantee does not have any unexpired obligations with respect to right of way work and does not owe funds to the City or is not in default of a material provision of the Franchise. Section 23. Nonexclusive Franchise This Franchise is not an exclusive franchise. Without limiting Franchisee's rights under this Franchise, this Franchise shall not in any manner prohibit the City from granting other and further ORD # , PAGE 25 07772- 0926/LEGAL 17833979.1 franchises in, under, over, upon, and along the Franchise Area that do not interfere with Franchisee's rights under this Franchise. This Franchise shall not prohibit or prevent the City from using the Franchise Area for any reason not inconsistent with this Franchise or affect the jurisdiction of the City over the Franchise Area or any part thereof. Section 24. Eminent Domain The existence of this Franchise shall not preclude the City from acquiring by condemnation, in accordance with applicable law, all or a portion of Franchisees Facilities within the Franchise Area. In determining the value of such Facilities, no value shall be attributed to the right to occupy the Franchise Area conferred by this Franchise. Section 25. Vacation If at any time the City, by ordinance, vacates all or any portion of the Franchise Area, the City will not be liable for any damages or loss to the Franchisee by reason of such vacation. The City shall notify Franchisee in writing not less than 30 days before vacating all or any portion ofthe Franchise Area. The City may, after thirty (30) days written notice to Franchisee, terminate this Franchise with respect to any such vacated area. Section 26. Compliance with Laws Franchisee shall comply with all applicable federal, state and City laws, franchises, resolutions, regulations, standards, policies and procedures, as now existing or hereafter amended or adopted; provided, however, that if any term or condition of this Franchise and any term or condition of any City law, code, franchise, resolution, regulation, standard, procedure, permit or approval are in conflict, the term or condition of this Franchise will control. ORD # , PAGE 26 07772- 0926/LEGAL 17833979.1 Section 27. Charge for Administrative Costs As and to the extent provided in RCW 35.21.860, Franchisee agrees to pay a fee of $5,000 for the actual reasonable administrative expenses incurred by the City that are directly related to preparing and approving this Franchise. Subject to RCW 35.21.860 and other applicable laws, nothing herein shall preclude the City from charging administrative fees or recovering any administrative costs incurred by the City in the approval of permits or in the supervision, inspection or examination of all work by Franchisee in the Franchise Area as prescribed in accordance with applicable provisions of the City Code. Section 28. UTC Tariff This Franchise is subject to the provisions of any applicable tariff now or hereafter on file with the Washington Utilities and Transportation Commission or its successor ( "WUTC "). In the event of any conflict or inconsistency between the provisions of this Franchise and such tariff, the provisions of such tariff shall control. Franchisee shall, when making application for any changes in tariffs affecting the provisions of the Franchise, notify the City in writing of the application and provide City with a copy of the submitted application within five (5) days of filing with the WUTC. Franchisee shall further provide the City with a copy of any actual approved tariff(s) affecting the provisions of this Franchise. Section 29. Indemnification Franchisee agrees to indemnify and hold harmless and defend the City, its elected officials, officers, employees, agents, and volunteers ( collectively, the "Indemnitees ") from any and all claims, demands, losses, actions or liabilities (including costs and all attorney fees), to or by any and all person or entities, arising from, resulting from or connected with this Franchise to the extent caused ORD # , PAGE 27 07772- 0926/LEGAL 17833979.1 in part or in whole by the negligent acts, errors or omissions of the Franchisee, its officers, partners, shareholders, agents, or employees, or by the Franchisee's breach of this Franchise; provided, however, that this section shall not be construed as requiring Franchisee to indemnify, hold harmless or defend any Indemnitee against claims or damages arising from the negligence or willful misconduct of the City, its agents or employees or any other Indemnitee. In the event any claim, demand, suit or action is commenced against the City that gives rise to Franchisee's obligation pursuant to this Section 29, the City shall promptly notify Franchisee thereof. The City shall have the right at all times to participate, at its own expense, through its own attorney in any suit or action which arises pursuant to this Franchise when the City determines that such participation is required to protect the interest of the City or the public. In the event it is determined that RCW 4.24.115 applies to this Franchise, Franchisee agrees to defend, hold harmless and indemnify the City as required by this Section 29 to the maximum extent permitted thereunder to the full extent of the Franchisee's negligence. Section 30. Insurance 30.1 Minimum Limits Subject to Section 30.4, Franchisee agrees to carry as a minimum, the following insurance using a combination of self insurance and carrier insurance, in such forms and with such carriers as are reasonably satisfactory to the City. (a) Workers compensation and employer's liability insurance in amounts sufficient pursuant to the laws of the State of Washington; (b) Commercial general liability insurance with combined single limits of liability not less than $5,000,000 for bodily injury, including personal injury or death, products liability, contractual coverage, operations, explosion, collapse, underground and property damage; and ORD # , PAGE 28 07772- 0926/LEGAL 17833979.1 (c) Automobile liability insurance with combined single limits of liability not less than $5,000,000 for bodily injury, including personal injury or death and property damage. 30.2 Mandatory Insurance Provisions The commercial general liability insurance and automobile liability insurance policies shall be endorsed to contain the following provisions: (a) The City, its officers, elected officials, employees, and volunteers are to, be named as additional insured; (b) Coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability; (c) Coverage shall not be suspended, canceled, modified or reduced except after thirty (30) days prior written notice to the City delivered by certified mail, return receipt requested; and (d) Coverage shall be primary as to the City, its officers, officials, employees and volunteers. Any insurance or self - insurance by the City, its officers, officials, employees or volunteers shall be in excess of Franchisee's required insurance. 30.3 Verification of Coverage Franchisee shall furnish the City with certificates of insurance and original endorsements evidencing the coverages required by this Section. The certificates and endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf and must be received and approved by the City prior to the commencement of any work. 30.4 Self- Insurance In lieu of the insurance requirements set forth in this Section, Franchisee may self - insure against such risks in such amounts as are consistent with good utility ORD # , PAGE 29 07772- 0926/LEGAL 17833979.1 practices. Upon the City's request, Franchisee shall provide the City with reasonable written evidence that Franchisee is maintaining such self - insurance. Section 31. Dispute Resolution 31.1 In the event of a dispute between City and Franchisee arising by reason of this Franchise, or any obligation hereunder, the dispute shall first be referred to the operational officers or representatives designated by City and Franchisee to have oversight over the administration of this Franchise. Said officers or representatives shall meet within thirty (30) calendar days of either parry's request for a meeting, whichever request is first, and the parties shall make a good faith effort to attempt to achieve a resolution of the dispute. 31.2 In the event that the parties are unable to resolve the dispute under the procedures set forth in Section 31.1, then the parties hereby agree that the matter shall be referred to mediation. The parties shall mutually agree upon a mediator to assist them in resolving their differences. Each party shall bear its own expenses related to the mediation and the parties shall share the cost of the mediator equally. 31.3 If either party is dissatisfied with the outcome of the mediation, that party may then pursue any available judicial remedies, provided, that if the parry seeking judicial redress does not substantially prevail in the judicial action, it shall pay the other parry's reasonable legal fees and costs incurred in the judicial action. Section 32. General Provisions 32.1 Entire Agreement This Franchise contains all of the agreements of the parties with respect to any matter covered or mentioned in this Franchise and no prior agreements or understandings pertaining to any such matters shall be effective for any purpose. ORD # , PAGE 30 07772- 0926/LEGAL 17833979.1 32.2 Modification No provision of this Franchise may be amended or added to except by agreement in writing signed by both of the parties, which agreement specifically states that it is an amendment to this Franchise and is approved in accordance with applicable laws. 32.3 Assi ng ment Franchisee shall not have the right to transfer or assign, in whole or in part, any or all of its obligations and rights hereunder without the prior written consent of the City, which consent shall not be unreasonably withheld or delayed. Any assignee shall, within thirty (30) days of the date of any approved assignment, file written notice of the assignment with the City together with its written acceptance of all terms and conditions of this Franchise. Notwithstanding the foregoing, Franchisee shall have the right, without such notice or such written contest, to mortgage its rights, benefits and privileges in and under this Franchise to the Trustee for its bondholders. 32.4 Attorney Fees In the event the City or the Franchisee defaults on the performance of any terms in this Franchise, and the Franchisee or the City places the enforcement of the Franchise or any part thereof or for the collection of any monies due, or to become due hereunder, in the hands of an attorney, or files suit upon the same, the prevailing party shall be entitled to an award of all reasonable attorneys' fees, costs and expenses. The venue for any dispute related to this Franchise shall be King County, Washington. 32.5 No Waiver Failure of either party to declare any breach or default by the other party immediately upon the occurrence thereof, or delay in taking any action in connection therewith, shall not waive such breach or default, but such party shall have the right to declare any such breach or default at any time. Failure of either party to declare one breach or default does not act as a waiver of such party's right to declare another breach or default. ORD # , PAGE 31 07772- 0926/LEGAL 17833979.1 32.6 Governing Law This Franchise shall be made in and shall be governed by and interpreted in accordance with the laws of the State of Washington. 32.7 Authori . Each individual executing this Franchise on behalf of the City and Franchisee represents and warrants that such individual is duly authorized to execute and deliver this Franchise on behalf of the Franchisee or the City. 32.8 Notices Any notices required to be given by the City to Franchisee or by Franchisee to the City shall be delivered to the parties at the following addresses: Franchisee: City: Puget Sound Energy, Inc. City of Federal Way Attn: Community Services Attn: City Attorney EST-11W 33325 8` Avenue South P.O. Box 97034 Federal Way, WA 98063 Bellevue, WA 98009 -9734 Any notices may be delivered personally to the addressee of the notice or may be deposited in the United States mail, postage prepaid, to the address set forth herein. Any notice so posted in the United States mail shall be deemed received three (3) days after the date of mailing. 32.9 Captions The respective captions of the sections of this Franchise are inserted for convenience of reference only and shall not be deemed to modify or otherwise affect in any respect any of the provisions of this Franchise. 32.10 Remedies Cumulative Any remedies provided for under the terms of this Franchise are not intended to be exclusive but shall be cumulative with all other remedies available to each party at law, in equity or by statute. ORD # , PAGE 32 07772- 0926/LEGAL 17833979.1 Section 33. Severability If any section, sentence, clause, or phrase of this Franchise should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Franchise. Section 34. Effective Date This ordinance shall take effect and be in force thirty (30) days after its passage and publication, as provided by law. PASSED by the City Council of the City of Federal Way this day of , 2011 CITY OF FEDERAL WAY SKIP PRIEST, MAYOR ATTEST: CAROL MCNEILLY, CMC, CITY CLERK, APPROVED AS TO FORM: PATRICIA A. RICHARDSON, CITY ATTORNEY, ORD # , PAGE 33 07772- 0926/LEGAL 17833979.1 FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. ACCEPTANCE: The undersigned hereby accepts all the rights and privileges of the above granted License and acknowledges that such rights and privileges are subject to and limited by all of the terms, conditions and obligations contained therein. DATED this day of 9 2011 PUGET SOUND ENERGY, INC. L Its: K: \Ordinances\PSE Franchise April 2009.doc ORD # , PAGE 34 07772- 0926/LEGAL 17833979.1 Exhibit A Present City Limits ORD # , PAGE 35 07772- 09261LEGAL 17833979.1 City of Federal Way Exhibit A Puget Sound Energy (Electrical) Franchise Area Map Date: October 26, 2011 City of Federal Way Federal Way, Wa. 98003 (P) 253- 835 -7000 (W) www.cityoffederalway.com CITY OF This map is intended for use 0 0.5 1 as a graphical representation. \ Federal Way Miles The City of Federal Way makes N no warranty as to its accuracy.