HomeMy WebLinkAboutR-2024-168 Resolution amending a contract with Washington State Department of Commerce to Revise the Scope of Work for the Fruitvale Housing Project CHIP Grant RESOLUTION NO. R-2024-168
A RESOLUTION authorizing an amendment to the agreement with the Washington State
Department of Commerce for $299,771.00 through the Connecting
Housing to Infrastructure Program (CHIP) administered by the City of
Yakima's Community Development Department.
WHEREAS, the City of Yakima was granted a total of$299,771.00 from the Connecting
Housing to Infrastructure Program (CHIP) to financially assist Yakima Housing Authority in its
construction of affordable housing; and
WHEREAS, with this grant funding, Yakima Housing Authority has paid for sewer and
water system development charges for its new affordable housing project and has remaining
funds to use in the amount of$135,311.92; and
WHEREAS, utility infrastructure improvements costs are a permissible use of the CHIP
funds but were not elected by the Yakima Housing Authority to be included in the scope of work
in the original contract agreement; and
WHEREAS, the City Council finds that it is in the best interest of the City of Yakima and
residents to amend the contract between the City of Yakima and the Washington State
Department of Commerce to revise the scope of work to allow further eligible reimbursements of
the funds provided through the CHIP grant, and authorizes the City Manager to enter into a
contract amendment with the Washington State Department of Commerce; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Council approves the amendment to contract number 22-96720-015 and
authorizes the City Manager, or their designee, to execute and administer such Amended
Agreement with the Washington State Department of Commerce, and to execute and administer
all applicable documents and agreements pursuant to such grant.
ADOPTED BY THE CITY COUNCIL this 3rd day of September, 2024.
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Patricia Byers, ayor
ATTEST:
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Rosalinda Ibarra, City Clerk lot /7;1sNiriG�o�':'/
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Amendment
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Contract Number: 22-96720-015
Amendment Number: 2
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Washington State Department of Commerce
Local Government Division,Growth Management Unit
Connecting Housing to Infrastructure Program(CHIP)
1. Contractor 2. Contractor Project Address
City of Yakima Fruitvale Housing Project Phase 2
129 North Second Street 810 North Sixth Avenue
Yakima, WA 98901 Yakima, WA 98902
3.Contractor Representative(only if updated) 4.COMMERCE Representative(only if updated)
Lisa Maxey, Administrative Assistant Mischa Venables 1011 Plum St SE
129 N 2nd St., Yakima, WA 98901 CHIP Project Manager Olympia, WA
(509)576-6660 (360)725-3088 98504-2525
Lisa.maxev(a�yakimawa.gov Mischa.venables(a�commerce wa qov
5.Original Contract Amount ' 6. Amendment Amount 7. New Contract Amount
(and any previous amendments)
$299,771 No Change $299,771
8. Amendment Funding Source 9. Amendment Start Date 10. Amendment End Date
Federal: State: x Other: N/A: Date of Execution June 30,2025
11. Federal Funds(as applicable): Federal Agency: ALN:
N/A N/A
12. Amendment Purpose:
To expand the scope of work(Attachment A)to include construction of water, sewer and stormwater improvements for the
Fruitvale Housing Project Phase 2.
COMMERCE, defined as the Department of Commerce, and the Contractor,as defined above, acknowledge and accept the terms
of this Contract As Amended and attachments and have executed this Contract Amendment on the date below to start as of the date
and year referenced above. The rights and obligations of both parties to this Contract As Amended are governed by this Contract
Amendment and the following other documents incorporated by reference: Contractor Terms and Conditions including Attachment
"A"-Scope of Work. A copy of this Contract Amendment shall be attached to and made a part of the original Contract between
COMMERCE and the Contractor. Any reference in the original Contract to the"Contract"shall mean the"Contract as Amended".
FOR CONTRACTOR FOR COMMERCE
—Signed by: ,.—DocuSigned by:
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Victoria Baker, City Manager Mark K. Barkley,Assistant Director
City of Yakima Local Government Division
9/20/2024 I 10:13 AM PDT 9/23/2024 I 3:49 PM PDT
Date Date
CITY CONTRACT NO:12Paa:143rr�,�T► APPROVED AS TO FORM ONLY
RESOLUTION NO:a �a -'�6
Sandra Adix
Assistant Attorney General
3/20/2014
Date
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Amendment
Scope of Work
To support the development of affordable housing by paying $299,771 for the construction of water,
sewer and stormwater utility infrastructure improvements and reimbursement of waived system
development charges for the Fruitvale Housing Project Phase 2.
• Water system improvements: The main waterline will be relocated as it currently runs in
the middle of the site limiting the use of the site, and 55 new water connections must be
made to accommodate the new affordable housing units and office.
• Sewer system improvements sufficient for the 54-unit development.
• Stormwater system improvements: Stormwater will be managed on site with sloped
parking lots, drainage from the roof and directed to drainage swales.
• Reimbursement of waived system development fees.
Based on the criteria within the state capital budget, SSB 1080 Sec 1074, (Laws of 2021) and
criteria developed by Commerce to ensure the terms of the appropriation are met, all grants must
meet the following criteria:
• Applicant must be a city, county or public utility district, applying in coordination
with the developer of a multi-unit affordable housing project, located within a
jurisdiction that imposed a sales and use tax under RCW 82.14.530(1)(a)(ii),
82.14.530(1)(b)(i)(B), 82.14.540, or 84.52.105.
• For system development charge waiver reimbursement,jurisdictions must have an
adopted fee waiver program, and documentation that the fees have been waived for
the affordable housing units by each provider for water, sewer, and stormwater, in
accordance with the budget.
• The utility project must serve new multi-unit affordable' housing projects that serve
and benefit low-income households.2 If the project is a mixed-income project, the
"Affordable housing" has the same meaning as in RCW 43.185A.010,and means residential housing for rental
occupancy which,as long as the same is occupied by low-income households,requires payment of monthly housing
costs, including utilities other than telephone, of no more than thirty percent of the family's income. In the context of
homeownership,the definition from the Housing Trust Fund Handbook applies(Section 701.7): "affordability
occurs when a household's monthly housing costs are generally no more than 38 percent of monthly household
income and total debt is no more than 45 percent of monthly household income. Housing costs include mortgage
principal, interest,property taxes, homeowner insurance, homeowner association fees, and land lease fees,as
applicable. Total debt includes other debt and utilities."
2 "Low-income household" has the same definition as in RCW 43.185.010(6),and means a single person,family or
unrelated persons living together whose adjusted income is less than eighty percent of the median family income,
adjusted for household size, for the county where the project is located.
2
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Amendment
affordable portion of the development must be at least 25%. CHIP funds can pay for
the system development charges for the affordable units.
• The affordable housing project should be part of a program that will monitor
affordability for a minimum of 25 years, such as the Housing Trust Fund, low-
income housing tax credits, housing authority, or a city monitoring process. A
covenant and/or note and deed of trust may be required as part of securitization to
ensure affordability.
CERTIFICATION PERFORMANCE MEASURE—SCOPE OF WORK
The GRANTEE, by its signature, certifies that the declaration set forth above has been reviewed and
approved by the GRANTEE as of the date and year written below
,—Signed by
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Victoria Baker, City Manager DATE
ALL OTHER TERMS AND CONDITIONS OF THIS CONTRACT REMAIN IN FULL FORCE
AND EFFECT.
3
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.M.
For Meeting of: September 3, 2024
ITEM TITLE: Resolution amending a contract with Washington State Department of
Commerce to Revise the Scope of Work for the Fruitvale Housing
Project CHIP Grant
SUBMITTED BY: Bill Preston, Community Development Director
SUMMARY EXPLANATION:
On September 20, 2022, City Council adopted a Resolution to enter into an agreement with the
Department of Commerce and accept an award of$299,771 for the Connecting Housing to Infrastructure
Program (CHIP) grant to financially assist the Yakima Housing Authority (YHA)with sewer and water
system development charges for their new affordable housing project (Fruitvale Housing). Subsequently,
Council adopted a Resolution on November 15, 2022, to enter into a contract agreement with YHA for
this project.
To date, YHA has used $164,459.08 of the funds awarded through this grant for use towards system
development charges (i.e. utility connection permitting fees). No additional utility connection permit fees
are anticipated to be incurred which leaves $135,311.92 in unused funds. YHA has approached the City
and Commerce with the desire to use the remaining funds for soft costs related to utility infrastructure
improvements which is allowable under the CHIP guidelines.
The Resolution and contract amendment revises the scope of work that was detailed in the original
contract between the City of Yakima and Washington State Department of Commerce to include utility
infrastructure improvements as part of the work that will be completed and submitted for reimbursement.
This contract amendment does not affect the amount awarded to the City for this grant nor will it incur
any expenses to the City.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Adopt Resolution.
ATTACHMENTS:
RESOLUTION with Commerce_Fruitvale - Contract Amendment.docx
COM 22-96720-015 Contract Amendment 2.pdf
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