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2023-05-09 City Council PSPHSP Packet1. Op E D o Agenda Edmonds City Council s SAFETY -PLANNING -HUMAN SVCS-PERSONNEL SPECIAL CITY COUNCIL CONFERENCE ROOM 121 - 5TH AVENUE N, EDMONDS, WA 98020 MAY 9, 2023, 3:30 PM COUNCIL COMMITTEE MEETINGS ARE WORK SESSIONS FOR THE COUNCIL AND CITY STAFF. COMMITTEE MEETING AGENDAS DO NOT INCLUDE AUDIENCE COMMENTS OR PUBLIC HEARINGS. STAFF AND COUNCILMEMBERS ATTEND COMMITTEE MEETINGS VIRTUALLY, AND MEMBERS OF THE PUBLIC ARE ENCOURAGED TO ATTEND THE SAME WAY. PERSONS WISHING TO ATTEND THIS MEETING VIRTUALLY IN LIEU OF IN -PERSON ATTENDANCE CAN CLICK ON OR PASTE THE FOLLOWING ZOOM MEETING LINK INTO A WEB BROWSER USING A COMPUTER OR SMART PHONE: HTTPS://ZOOM. US/J/95798484261 OR JOIN BY DIAL -UP PHONE: US: +1 253 215 8782 WEBINAR ID: 957 9848 4261 IF MEMBERS OF THE PUBLIC CANNOT ACCESS THE VIRTUAL COMMITTEE MEETINGS WITH THEIR PERSONAL DEVICES, A MONITOR IS PROVIDED ON CITY COUNCIL COMMITTEE NIGHTS FROM 430- 930 PM AT THE CITY COUNCIL CONFERENCE ROOM AT 121 5TH AVE N, EDMONDS WA. COMMITTEE MEMBERS: VIVIAN OLSON (CHAIR), JENNA NAND, COUNCIL PRESIDENT (EX-OFFICIO MEMBER) CALL TO ORDER COMMITTEE BUSINESS 1. Committee Updates (20 min) 2. Connecting Housing to Infrastructure Program (CHIP) Grant Agreement with Housing Hope (10 min) 3. Proposal to Change from an Annual to a Biennial Budget (15 min) 4. Meadowdale Neighborhood Annexation Discussion (15 min) 5. Public Drug Use Issue (0 min) ADJOURNMENT 5:30 PM Edmonds City Council Agenda May 9, 2023 Page 1 2.1 City Council Agenda Item Meeting Date: 05/9/2023 Committee Updates Staff Lead: Committee Chair CM Olson Department: City Council Preparer: Beckie Peterson Background/History The purpose of this standing agenda item is to allow a mechanism for staff to provide committees with brief, verbal updates on an activity or project overseen by a department and so that the Council can be more aware of what is happening around the city. Updates will facilitate a better set of expectations for councilmembers, the public, and the staff. Recommendation N/A Narrative Requested Committee Updates for May, 9 2023: 1. Update/Discussion on process for code updates requested or identified by Council Packet Pg. 2 2.2 City Council Agenda Item Meeting Date: 05/9/2023 Connecting Housing to Infrastructure Program (CHIP) Grant Agreement with Housing Hope Staff Lead: Susan McLaughlin Department: Planning Division Preparer: David Levitan Background/History The Washington State Department of Commerce's Connecting Housing to Infrastructure Program (CHIP) grants provide funds for water, sewer, and stormwater improvements and/or waived system development charges for new affordable housing projects. The applicant must be a city, county, or public utility district in partnership with an affordable housing project. The City of Edmonds, in partnership with Housing Hope, applied for the CHIP grant in 2022 and was awarded $1,361,011. As the grantee, the City would act as a pass -through entity for the purposes of receipt and distribution of grant funds and would be responsible for reviewing and submitting to Commerce the required documentation provided by Housing Hope. More information regarding the City's obligation is provided in the narrative below. Staff Recommendation No action is required. Staffing is proposing that the committee discuss and ask questions about the proposal before it brought forward to the full Council for approval via the consent agenda. Narrative The CHIP grant program helps reduce the development costs for developers of affordable housing projects. To apply for the program, affordable housing developers must partner with a city, county, or public utility district. Housing Hope contacted city staff in 2021 to inquire about a potential partnership and, in 2022, the parties applied for the CHIP grant and was awarded $1,361,011. The grant requirements include: The city or county must have imposed a sales and use tax for affordable housing. The new housing development must include at least 25% affordable units, which must have a strong probability of serving the target group for at least 25 years. The affordable housing development must begin construction within 24 months of the grant award. Federal funds must be under contract by December 2024 and expended by December 2026. Projects funded with state resources must be completed by June 2025 pending legislative re - appropriations. Where applicable, the extension for new drinking water, wastewater or stormwater connections must be consistent with the approved comprehensive plans under the Growth Management Act and must be within the established boundaries of the Urban Growth Area. Packet Pg. 3 2.2 Housing Hope is planning a 52-unit multi -family development with associated services on the vacant lot immediately to the east of Edmonds Lutheran Church. The completed project will provide supportive services, staff offices, community amenities, and streetscape improvements. All 52 units will serve families with children. Half of the units are allocated to families coming directly from homelessness and the remaining units will serve families with very -low income who earn less than 50 percent (50%) of the Area Median Income, which equates to $57,875 annually for a family of four. Permit review for the project is nearing completion and Housing Hope anticipates closing on funding for the project in late May 2023. If the funds are not received, Housing Hope would need to provide the project funds in the form of philanthropic grants and project contributions, which considering the timing of the project (construction is tentatively scheduled to commence in June 2023) would lead to a potential project delay of 12 months. Such a time period would expose the project to cost escalation and vulnerability to external market conditions (rising interest rates, variability in Low Income Housing Tax Credit pricing, etc), which would also increase costs. The City's role in administration of the grant is detailed in the Capital Agreement with Commerce (Attachment 1) and the grant agreement with Housing Hope (Attachment 2) and summarized in Attachment 3. Not more than once every 30 days, Housing Hope will provide the required documentation, including invoices for eligible expenses, documentation of costs, project status reports, Certification of the Payment and Reporting of Prevailing Wages, and reportable expense forms to the city Planning Division. Planning staff will review the documentation and verify work was completed, fill out an A-19 form (Attachment 4), and submit the required documents to Commerce. Commerce will have 30 days to review the documentation for compliance with the program and issue an approval or denial. If approved, Commerce will issue re-imbursement funds to the city for distribution to Housing Hope. The administrative burden to the city is estimated to be approximately 15-20 hours of staff time over a six- month construction period. The grant is expected to cover nearly 75 percent of the costs to design, construct, and permit on- and off -site utilities. Attachments: Attachment 1 - Capital Agreement with Commerce Attachment 2 - Grant Agreement with Housing Hope Attachment 3 - Grant Administration Procedures Attachment 4 - A-19 Reimbursement Form Attachment 5 - CHIP Grant Eligible Project Costs Packet Pg. 4 2.2.a ® , Washington State ' . Department of �► Commerce Capital Agreement with City of Edmonds through America Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds - Connecting Housing to Infrastructure Program (CHIP) Purpose To support the development of affordable housing by paying for utility infrastructure improvements at Edmonds Lutheran Church Field Apartments Start date: July 1, 2021 Packet Pg. 5 2.2.a THIS PAGE INTENTIONALLY LEFT BLANK Q Packet Pg. 6 TABLE OF CONTENTS 2.2.a FaceSheet.....................................................................................................................iv Declarations.................................................................................................................... 1 Special Terms and Conditions........................................................................................2 1. Authority.................................................................................................. 2 2. Acknowledgement of Federal Funding ..................................................... 2 3. Grant Management..................................................................................2 4. Period of Performance, Costs Incurred, Reimbursement ......................... 2 5. Compensation..........................................................................................2 6. Billing Procedures and Payment.............................................................. 3 7. Subcontractor Data Collection.........................................................4 8. Historical or Cultural Resources, Human Remains...................................4 9. Audit........................................................................................................4 10. Debarment...............................................................................................4 11. Insurance................................................................................................. 5 12. Compliance with Applicable Law and Regulations ................................... 5 13. Federal Exclusion.................................................................................... 6 14. Registration with the System for Award Management (SAM) .................. 7 15. Reduction In Funds..................................................................................7 16. Ownership of Project/Capital Facilities.....................................................7 17. Change of Ownership or Use for Grantee -Owned Property ..................... 7 18. Change of Use for Leased Property Performance Measure ..................... 8 19. Termination for Fraud or Misrepresentation............................................. 8 20. Fraud....................................................................................................... 8 21. Order of Precedence................................................................................ 8 General Terms and Conditions....................................................................................... 9 1. Definitions................................................................................................9 2. Administrative Cost Allocation.................................................................. 9 3. Allowable Costs....................................................................................... 9 4. All Writings Contained Herein.................................................................. 9 5. Amendments............................................................................................9 6. Americans with Disabilities Act(ADA)......................................................9 7. Approval..................................................................................................9 8. Assignment............................................................................................10 9. Attorney's Fees...................................................................................... 10 10. Audit...................................................................................................... 10 11. Certification Regarding Debarment, Suspension or Ineligibility or Ineligibility and Voluntary Exclusion....................................................... 10 12. Code Requirements............................................................................... 11 13. Confidentiality/Safeguarding of Information ............................................ 11 14. Conformance......................................................................................... 12 15. Conflict of Interest.................................................................................. 12 16. Copyright Provisions.............................................................................. 12 17. Disallowed Costs...................................................................................13 18. Disputes.................................................................................................13 19. Duplicate Payment.................................................................................13 Packet Pg. 7 2.2.a 20. Governing Law and Venue..................................................................... 13 21. Indemnification....................................................................................... 13 22. Independent Capacity of the Grantee ..................................................... 14 23. Industrial Insurance Coverage............................................................... 14 24. Laws...................................................................................................... 14 25. Licensing, Accreditation and Registration ............................................... 14 26. Limitation of Authority............................................................................ 14 27. Noncompliance With Nondiscrimination Laws ........................................ 14 28. Pay Equity.............................................................................................. 14 29. Political Activities................................................................................... 15 30. Prevailing Wage Law............................................................................. 15 31. Procurement Standards for Federally Funded Programs ....................... 15 32. Prohibition Against Payment of Bonus or Commission ........................... 16 33. Publicity.................................................................................................16 34. Recapture.............................................................................................. 16 35. Records Maintenance............................................................................ 16 36. Registration with Department of Revenue .............................................. 16 37. Right of Inspection................................................................................. 16 38. Savings..................................................................................................16 39. Severability............................................................................................17 40. Subcontracting.......................................................................................17 41. Survival..................................................................................................17 42. Taxes.....................................................................................................17 43. Termination for Cause............................................................................ 17 44. Termination for Convenience................................................................. 18 45. Termination Procedures......................................................................... 18 46. Treatment of Assets............................................................................... 19 47. Waiver................................................................................................... 19 48. Work Hours and Safety Standards......................................................... 19 AttachmentA- Scope of Work.......................................................................................20 Attachment B- Certification of the Availability of Funds to Complete the Project ........... 22 Attachment C- Certification of the Payment and Reporting of Prevailing Wages ........... 23 Packet Pg. 8 2.2.a Contract Number: 22-96720-: Washington State Department of Commerce Local Government Division Community Assistance & Research Unit ARPA State and Local Fiscal Recovery Funds Grant 1. Grantee 2. Project Name and Address City of Edmonds Edmonds Lutheran Church Field Apartments 121 Fifth Avenue North 8215 236th Street Southwest Edmonds, WA 98020 Edmonds, WA 98026 3. Grantee Representative 4. COMMERCE Representative Brad Shipley Eric Guida PO Box 42525 Associate Planner CHIP Program Manager 1011 Plum Street SE (425)967-2645 (360)725-3044 Olympia, WA 98504-2525 brad.shipley@edmondswa.gov eric.guida@commerce.wa.gov 5. Grant Amount 6. Funding Source 7. Start Date 8. End Date $1,361,011 Federal: ® State: ❑ Other: ❑ N/A: ❑ July 1, 2021 June 30,2025 9. Federal Funds (as applicable) Federal Agency ALN (CFDA #): $1,361,011 US Dept. Treasury 21.027 10. SWV # 11. UBI # 12. DUNS # 13. UNIQUE ENTITY ID # 0013866-07 312-000-093 40172827 N F 1 AQNT457R7 14. Grant Purpose The outcome of this performance -based Grant Agreement is to undertake utility infrastructure improvements as referenced in Attachment A — Scope of Work for the Edmonds Lutheran Church Field Apartments project. COMMERCE, defined as the Department of Commerce and Grantee acknowledge and accept the terms of this Grant and attachments and have executed this Grant on the date below to start as of the date and year referenced above. The rights and obligations of both parties to this Grant are governed by this Grant and the following other documents incorporated by reference: Grantee Terms and Conditions including Attachment "A" — Scope of Work, Attachment "B" — Certification of Availability of Funds to Complete the Project, Attachment "C" — Certification of the Payment and Reporting of Prevailing Wages, FOR GRANTEE FOR COMMERCE Mark K. Barkley, Assistant Director, Local Government Michael Nelson, Mayor Division Date Date APPROVED AS TO FORM ONLY APPROVED AS TO FORM ONLY Name Sandra Adix Assistant Attorney General March 31, 2022 Date Date r a Packet Pg. 9 2.2.a DECLARATIONS CLIENT INFORMATION GRANTEE Name: City of Edmonds Grant Number: 22-96720-210 PROJECT INFORMATION Project Name: Edmonds Lutheran Church Field Apartments Project Address: 8215 236th Street Southwest Project City, State Zip Code: Edmonds, WA 98020 GRANT INFORMATION Grant Amount: Appropriation Number: Grant End Date: Biennium: Biennium Close Date: Earliest Date for Reimbursement: Time of Performance: FUNDING INFORMATION Federal Funding: Federal Award Agency: $1,361,011 2021 Washington State Capital Budget SSB 1080, Section 1074 June 30, 2025 2021-2023, 2023-2025 June 30, 2025 March 3, 2021 In accordance with Special Terms and Conditions Number 4 Sec. 602 Coronavirus State Fiscal Recovery Funds of Title VI of Social Security Act as added by American Rescue Plan Act of 2021 (ARPA or "Act"), Title IX, Subtitle M, Sec. 9901, Public Law 117-2, codified at 42 U.S.C. 802 et seq. US Department of Treasury Amount of Federal Funds Obligated by this Action: $1,361,011 ADDITIONAL SPECIAL TERMS AND CONDITIONS GOVERNING THIS AGREEMENT Extension of Grant Upon Reappropriation. ku U Notwithstanding General Term and Condition No. 4, the End Date of this Grant may be extended upon written notice to Grantee from Commerce for a period of time consistent with the effective date of any re -appropriation of funds, and/or with terms reflecting new Federal requirements for ARPA funds, if any. In E Commerce's sole discretion, after review of any funding re -appropriation terms and applicable Federal law U or guidance, a contract amendment in accordance with General Term and Condition No. 4 may be required a to extend the End Date. r c as E Last revision 11/23/2021 Q Packet Pg. 10 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 1. AUTHORITY Funding for this Grant has been provided in the 2021-2023 biennial state Capital Budget, SSB 1080, pursuant to Federal grants to Washington State under the American Rescue Plan Act of 2021 (ARPA or "Act"), sec. 9901, Public Law 117-2, codified at 42 U.S.C. 802 et seq. Unexpended funds from the 2021-23 state biennium have been re -appropriated to the 2023-25 state biennium. 2. ACKNOWLEDGEMENT OF FEDERAL FUNDING Federal Award Identification Number (FAIN): SLRF0002 Total amount of the federal award: $1,361,011 Federal Awarding Agency: US Department of Treasury Research & Development (R&D): award will not be used for R&D The Grantee agrees that any publications (written, visual, or sound) but excluding press releases, newsletters, and issue analyses, issued by the Grantee describing programs or projects funded in whole or in part with federal funds under this Grant, shall contain the following statements: "This project was supported by grant awarded by the US Department of the Treasury. Points of view in this document are those of the author and do not necessarily represent the official position or policies of the US Department of the Treasury. Grant funds are administered by the America Rescue Plan Act, State and Local Fiscal Recovery Funds, Washington State Department of Commerce." 3. GRANT MANAGEMENT The Representative for each of the parties shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Grant. The Representative for COMMERCE and their contact information are identified on the Face Sheet of this Grant. The Representative for the Grantee and their contact information are identified on the Face Sheet of this Grant. 4. PERIOD OF PERFORMANCE, COSTS INCURRED, REIMBURSEMENT a) Period of Performance, The initial period of performance for this award begins on the date hereof and ends on June 30, 2025. If unexpended funds under this Grant are re -appropriated, the period of performance (Contract End Date) will be extended to not later than October 30, 2026. b) Costs Incurred Period. As set forth in Treasury's implementing regulations, Grantee may use funds awarded under ARPA to cover eligible costs incurred during the period that begins on March 3, 2021, and ends on December 31, 2024. Pursuant to Federal rules, a cost shall be considered to have been incurred if the Grantee has incurred an obligation with respect to such cost by December 31, 2024. All change orders for which reimbursement is requested must be executed on or before December 31, 2024. c) Reimbursement Period. All requests for reimbursement of eligible costs incurred between March 3, 2021 and December 31, 2024 payable from ARPA funds must be submitted to COMMERCE by the earlier of October 30, 2026 or 30 days prior to the Contract End Date. 5. COMPENSATION COMMERCE shall pay an amount not to exceed the total contract amount listed on the contract Face Sheet for the performance of all things necessary for or incidental to the performance of work as set forth in the Scope of Work. 2 Packet Pg. 11 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 6. BILLING PROCEDURES AND PAYMENT COMMERCE shall reimburse the GRANTEE for eligible Project expenditures, up to the maximum payable under this Grant Agreement. When requesting reimbursement for expenditures made, the GRANTEE shall submit to COMMERCE a signed and completed Invoice Voucher (Form A-19), that documents capitalized Project activity performed for the billing period. The GRANTEE can submit all Invoice Vouchers and any required documentation electronically through COMMERCE's Grants Management System (CMS), which is available through the Secure Access Washington (SAW) portal. The invoices shall describe and document, to COMMERCE's satisfaction, a description of the work performed, the progress of the project, and fees. The invoice shall include the Grant Number listed on the contract Face Sheet. The voucher must be certified (signed) by an official of the GRANTEE with authority to bind the GRANTEE. The final voucher shall be submitted to COMMERCE within sixty (60) days following the completion of work or other termination of this Grant Agreement, or if work is not completed or Grant terminated, within fifteen (15) days following the end of the state biennium unless Grant Agreement funds are reappropriated by the Legislature in accordance with Additional Special Terms and Conditions set forth in the Declarations page above. Each request for payment must be accompanied by: a Project Status Report, which describes, in narrative form, the progress made on the Project since the last invoice was submitted, as well as a report of Project status to date. COMMERCE will not release payment for any reimbursement request received unless and until the Project Status Report is received. After approving the Invoice Voucher and Project Status Report, COMMERCE shall promptly remit a warrant to the GRANTEE. Any documentation of costs, and prevailing wage as per section 8 of the Special Terms and Conditions and Attachment C, CERTIFICATION OF THE PAYMENT AND REPORTING OF PREVAILING WAGES. A reportable expenses form as detailed in Section 7 of Special Terms and Conditions, SUBCONTRACTOR DATA COLLECTION. COMMERCE will pay GRANTEE upon acceptance of services provided and receipt of properly completed invoices, which shall be submitted to the Representative for COMMERCE not more often than monthly. Payment shall be considered timely if made by COMMERCE within thirty (30) calendar days after receipt of properly completed invoices. Payment shall be sent to the address designated by the Grantee. COMMERCE may, in its sole discretion, terminate the Grant or withhold payments claimed by the Grantee for services rendered if the Grantee fails to satisfactorily comply with any term or condition of this Grant. No payments in advance or in anticipation of services or supplies to be provided under this Agreement shall be made by COMMERCE. Invoices and End of Fiscal Year Invoices are due on the 20th of the month following the provision of services. Final invoices for a state fiscal year may be due sooner than the 20th and Commerce will provide notification of the end of fiscal year due date. The grantee must invoice for all expenses from the beginning of the contract through June 30, regardless of the contract start and end date. Duplication of Billed Costs The Grantee shall not bill COMMERCE for services performed under this Agreement, and COMMERCE shall not pay the Grantee, if the Grantee is entitled to payment or has been or will be paid by any other source, including grants, for that service. 3 Packet Pg. 12 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS Disallowed Costs The Grantee is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors. Withholding At its sole discretion, COMMERCE may withhold ten percent (10%) of the full grant amount until acceptance by COMMERCE of the final report (or completion of the project, etc.). 7. SUBCONTRACTOR DATA COLLECTION Grantee will submit reports, in a form and format to be provided by Commerce and at intervals as agreed by the parties, regarding work under this Grant performed by subcontractors and the portion of Grant funds expended for work performed by subcontractors, including but not necessarily limited to minority -owned, woman -owned, and veteran -owned business subcontractors. "Subcontractors" shall mean subcontractors of any tier. 8. HISTORICAL OR CULTURAL RESOURCES, HUMAN REMAINS CHIP projects are subject to the requirements of Washington State Governor's Executive Order (GEO) 21-02 "Archaeological and Cultural Resources". CHIP Grantees will cooperate with Commerce to fulfill the requirements of GEO-21-02. Commerce will delegate consultation authority to the grantee by letter, and each project must complete the EZ-1 Form to comply with the GEO 21-02. In the event that historical or cultural artifacts are discovered at the Project site during construction or rehabilitation, the Grantee or subcontractor shall immediately stop work and notify the local historical preservation officer and the state historic preservation officer at the Department of Archaeology and Historic Preservation at (360) 586-3065. If human remains are discovered, the Grantee shall immediately stop work and report the presence and location of the remains to the coroner and local enforcement, then contact DAHP and any concerned tribe's cultural staff or committee. 9. AUDIT If the Grantee is a subrecipient and expends $750,000 or more in federal awards from any and/or all sources in any fiscal year, the Grantee shall procure and pay for a single audit or a program - specific audit for that fiscal year. Upon completion of each audit, the Grantee shall: 1. Submit to COMMERCE the reporting package specified in Uniform Guidance 2 CFR 200, reports required by the program -specific audit guide (if applicable), and a copy of any management letters issued by the auditor. 2. Submit to COMMERCE follow-up and developed corrective action plans for all audit findings. If the Grantee is a subrecipient and expends less than $750,000 in federal awards from any and/or all sources in any fiscal year, the Grantee shall notify COMMERCE they did not meet the single audit requirement. The Grantee shall send all single audit documentation to the Federal Audit Clearinghouse. httr)s://facides.census.gov/Account/Login.asi)x 10. DEBARMENT A. Grantee, defined as the primary participant and it principals, certifies by signing these General Terms and Conditions that to the best of its knowledge and belief that they: Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. 4 Packet Pg. 13 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS Have not within a three-year period preceding this Grant, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of federal Executive Order 12549; and iv. Have not within a three-year period preceding the signing of this Grant had one or more public transactions (Federal, State, or local) terminated for cause of default. B. Where the Grantee is unable to certify to any of the statements in this Grant, the Grantee shall attach an explanation to this Grant. C. The Grantee agrees by signing this Grant that it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by COMMERCE. Grantees should review section 14 of the Special Terms and Conditions for information on documenting that any subcontractors are not on the federal debarment list. D. The Grantee further agrees by signing this Grant that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," as follows, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: LOWER TIER COVERED TRANSACTIONS The lower tier Grantee certifies, by signing this Grant that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. Where the lower tier Grantee is unable to certify to any of the statements in this Grant, such contractor shall attach an explanation to this Grant. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, person, primary covered transaction, principal, and voluntarily excluded, as used in this section, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact COMMERCE for assistance in obtaining a copy of these regulations. 11. INSURANCE Each party certifies that it is self -insured under the State's or local government self-insurance liability program, and shall be responsible for losses for which it is found liable. 12. COMPLIANCE WITH APPLICABLE LAW AND REGULATIONS A. Grantee agrees to comply with the requirements of section 603 of the Act, regulations adopted by Treasury pursuant to section 603(f) of the Act, and guidance issued by Treasury regarding the foregoing. Grantee also agrees to comply with all other applicable federal statutes, regulations, and executive orders, and Grantee shall provide for such compliance by other parties in any agreements it enters into with other parties relating to this award. B. Federal regulations applicable to this award include, but are not necessarily limited to the following: i. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200, other than such provisions as Treasury may determine are inapplicable to this Award and subject to such exceptions as may be otherwise provided by Treasury. Subpart F — Audit Requirements of the Uniform Guidance, implementing the Single Audit Act, shall apply to this award. 5 Packet Pg. 14 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS ii. Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 25 is hereby incorporated by reference. iii. Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 170 is hereby incorporated by reference. iv. OMB Guidelines to Agencies on Government wide Debarment and Suspension (Non - procurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury's implementing regulation at 31 C.F.R. Part 19. v. Recipient Integrity and Performance Matters, pursuant to which the award term set forth in 2 C.F.R. Part 200, Appendix XI to Part 200 is hereby incorporated by reference. vi. Government wide Requirements for Drug -Free Workplace, 31 C.F.R. Part 20. vii. New Restrictions on Lobbying, 31 C.F.R. Part 21. viii. Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. §§ 4601-4655) and implementing regulations. ix. Generally applicable federal environmental laws and regulations. x. Prohibition on certain telecommunications and video surveillance services or equipment 2 CFR 2§ 00.216. C. Statutes and regulations prohibiting discrimination applicable to this award include, but are not necessarily limited to the following: i. Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and Treasury's implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis of race, color, or national origin under programs or activities receiving federal financial assistance; ii. The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§ 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, or disability; iii. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of disability under any program or activity receiving federal financial assistance; iv. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.), and Treasury's implementing regulations at 31 C.F.R. Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and v. Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto. 13. FEDERAL EXCLUSION These terms add to the terms in Section 12 Certification Regarding Debarment, Suspension or Ineligibility and Voluntary Exclusion — Primary and Lower Tier Covered Transactions in General Terms and Conditions. The Grantee also agrees to access the Federal Exclusion List at www.sam.gov and provide Federal Exclusion documentation to Commerce and to keep a copy on file with the Grantee's project records. 6 Packet Pg. 15 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 14. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT By signing this Grant, the Grantee accepts the requirements stated in 48 CFR 52.204-7 to register with the System for Award Management at the SAM website (httr)s://www.sam.gov). To register in SAM, a valid Unique Entity Identifier (UEI) is required. The Grantee is responsible for the accuracy and completeness of the data within the SAM database and for any liability resulting from the Government's reliance on inaccurate or incomplete data. The Grantee must remain registered in the SAM database after the initial registration. The Grantee is required to review and update on an annual basis from the date of initial registration or subsequent updates its information in SAM to ensure it is current, accurate and complete. The Grantee shall provide evidence documenting registration and renewal of SAM registration to Commerce. In the event of the Grantee's noncompliance or refusal to comply with the requirement stated above, Commerce reserves the right to suspend payment until the Grantee cures this noncompliance. 15. REDUCTION IN FUNDS In the event state funds appropriated for the work contemplated under this Grant Agreement are withdrawn, reduced, or limited in any way by the Governor or the Washington State Legislature during the Grant Agreement period, the parties hereto shall be bound by any such revised funding limitations as implemented at the discretion of COMMERCE, and shall meet and renegotiate the Grant Agreement accordingly. 16. OWNERSHIP OF PROJECT/CAPITAL FACILITIES COMMERCE makes no claim to any real property improved or constructed with funds awarded under this Grant Agreement and does not assert and will not acquire any ownership interest in or title to the capital facilities and/or equipment constructed or purchased with state funds under this Grant Agreement; provided, however, that COMMERCE may be granted a security interest in real property, to secure funds awarded under this Grant Agreement to assure affordability when the CHIP grant program contributed to the project, unless monitored by another funder. The funding for this program, [SB 5651 (section 1032), laws of 2021] requires that projects serve and benefit low-income households, and requires affordability for at least 25 years. This provision does not extend to claims that COMMERCE may bring against the GRANTEE in recapturing funds expended in violation of this Grant Agreement. 17. CHANGE OF OWNERSHIP OR USE FOR GRANTEE -OWNED PROPERTY A. The GRANTEE understands and agrees that any and all real property or facilities owned by the GRANTEE that are acquired, constructed, or otherwise improved by the GRANTEE using state funds under this Grant Agreement, shall be held and used by the GRANTEE for the purpose or purposes stated elsewhere in this Grant Agreement for a period of at least twenty five (25) years from the date the final payment is made hereunder. B. This provision shall not be construed to prohibit the GRANTEE from selling any property or properties described in this section; Provided, that any such sale shall be subject to prior review and approval by COMMERCE, and that all proceeds from such sale shall be applied to the purchase price of a different facility or facilities of equal or greater value than the original facility and that any such new facility or facilities will be used for the purpose or purposes stated elsewhere in this Grant Agreement. C. In the event the GRANTEE is found to be out of compliance with this section, the GRANTEE shall repay to the state general fund the principal amount of the grant as stated on the Face Sheet, hereof, plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the effective date of the legislation in which the subject facility was authorized. Repayment shall be made pursuant to Section 34 (Recapture provision). 7 Packet Pg. 16 2.2.a SPECIAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 18. CHANGE OF USE FOR LEASED PROPERTY PERFORMANCE MEASURE A. The GRANTEE understands and agrees that any facility leased by the GRANTEE that is constructed, renovated, or otherwise improved using state funds under this Grant Agreement shall be used by the GRANTEE for the purpose or purposes stated elsewhere in this Grant Agreement for a period of at least twenty five (25) years from the date the final payment is made hereunder. B. In the event the GRANTEE is found to be out of compliance with this section, the GRANTEE shall repay to the state general fund the principal amount of the grant as stated on the Face Sheet, hereof, plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the effective date of the legislation in which the subject facility was authorized. Repayment shall be made pursuant to Section 34 (Recapture Provision). 19. TERMINATION FOR FRAUD OR MISREPRESENTATION In the event the GRANTEE commits fraud or makes any misrepresentation in connection with the Grant application or during the performance of this Grant Agreement, COMMERCE reserves the right to terminate or amend this Grant Agreement accordingly, including the right to recapture all funds disbursed to the GRANTEE under the Grant. 20. FRAUD AND OTHER LOSS REPORTING Grantee shall report in writing all known or suspected fraud or other loss of any funds or other property furnished under this Grant Agreement immediately or as soon as practicable to the COMMERCE Representative identified on the Face Sheet. 21. ORDER OF PRECEDENCE In the event of an inconsistency in this Grant, the inconsistency shall be resolved by giving precedence in the following order: • Applicable federal and state of Washington statutes and regulations • Special Terms and Conditions • General Terms and Conditions • Attachment A — Scope of Work • Attachment B — Certification of the Availability of Funds to Complete the Project • Attachment C — Certification of the Payment and Reporting of Prevailing Wages 8 Packet Pg. 17 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 1. DEFINITIONS As used throughout this Grant, the following terms shall have the meaning set forth below: A. "Authorized Representative" shall mean the Director and/or the designee authorized in writing to act on the Director's behalf. B. "COMMERCE" shall mean the Department of Commerce. C. "Grant" or "Agreement" means the entire written agreement between COMMERCE and the Grantor, including any Exhibits, documents, or materials incorporated by reference. E-mail or Facsimile transmission of a signed copy of this contract shall be the same as delivery of an original. D. "Grantee" shall mean the entity identified on the face sheet performing service(s) under this Grant, and shall include all employees and agents of the Grantee. E. "Personal Information" shall mean information identifiable to any person, including, but not limited to, information that relates to a person's name, health, finances, education, business, use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers. F. "State" shall mean the state of Washington. G. "Subcontractor" shall mean one not in the employment of the Grantee, who is performing all or part of those services under this Grant under a separate contract with the Grantee. The terms "subcontractor" and "subcontractors" mean subcontractor(s) in any tier. 2. ADMINISTRATIVE COST ALLOCATION Administrative costs that may be allowed are set forth in the Special Terms and Conditions. Administrative services shared by other programs shall be assigned to this Grant based on an allocation plan that reflects allowable administrative costs that support services provided under each Grant administered by the Grantee. An approved current federal indirect cost rate may be applied up to the maximum administrative budget allowed. 3. ALLOWABLE COSTS Costs allowable under this Grant are actual expenditures according to an approved budget up to the maximum amount stated on the Grant Award or Amendment Face Sheet. 4. ALL WRITINGS CONTAINED HEREIN This Grant contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Grant shall be deemed to exist or to bind any of the parties hereto. 5. AMENDMENTS This Grant may be amended by mutual agreement of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 6. AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, PUBLIC LAW 101-336, also referred to as the "ADA" 28 CFR Part 35 The Grantee must comply with the ADA, which provides comprehensive civil rights protection to individuals with disabilities in the areas of employment, public accommodations, state and local government services, and telecommunications. 7. APPROVAL This contract shall be subject to the written approval of COMMERCE's Authorized Representative and shall not be binding until so approved. The contract may be altered, amended, or waived only by a written amendment executed by both parties. 9 Packet Pg. 18 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 8. ASSIGNMENT Neither this Grant, nor any claim arising under this Grant, shall be transferred or assigned by the Grantee without prior written consent of COMMERCE. For the purpose of the CHIP contracts, which require a city, county or public utility sponsor of the affordable housing project, Commerce preapproves the grantee to assign this contract to their affordable housing partner. In this case, all requirements and contract terms flow to the assignee's subcontractors, specifically section 11, certification regarding debarment, and section 40, subcontracting, of the General Terms and Conditions. After assignment, all references to Grantee shall mean Grantee's assignee. 9. ATTORNEYS' FEES Unless expressly permitted under another provision of the Grant, in the event of litigation or other action brought to enforce Grant terms, each party agrees to bear its own attorney's fees and costs. 10. AUDIT If the Grantee is a subrecipient and expends $750,000 or more in federal awards from any and/or all sources in any fiscal year, the Grantee shall procure and pay for a single audit or a program - specific audit for that fiscal year. Upon completion of each audit, the Grantee shall: 1. Submit to COMMERCE the reporting package specified in Uniform Guidance 2 CFR 200, reports required by the program -specific audit guide (if applicable), and a copy of any management letters issued by the auditor. 2. Submit to COMMERCE follow-up and developed corrective action plans for all audit findings. If the Grantee is a subrecipient and expends less than $750,000 in federal awards from any and/or all sources in any fiscal year, the Grantee shall notify COMMERCE they did not meet the single audit requirement. The Grantee shall send all single audit documentation to the Federal Audit Clearinghouse. https://facides.census.gov/Account/Login.aspx 11. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY EXCLUSION —PRIMARY AND LOWER TIER COVERED TRANSACTIONS A. Grantee, defined as the primary participant and it principals, certifies by signing these General Terms and Conditions that to the best of its knowledge and belief that they: i. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. ii. Have not within a three-year period preceding this contract, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; iii. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of federal Executive Order 12549; and iv. Have not within a three-year period preceding the signing of this contract had one or more public transactions (federal, state, or local) terminated for cause of default. B. Where the Grantee is unable to certify to any of the statements in this contract, the Grantee shall attach an explanation to this contract. 10 Packet Pg. 19 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS C. The Grantee agrees by signing this contract that it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by COMMERCE. D. The Grantee further agrees by signing this contract that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," as follows, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: LOWER TIER COVERED TRANSACTIONS The lower tier contractor certifies, by signing this contract that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. ii. Where the lower tier contractor is unable to certify to any of the statements in this contract, such contractor shall attach an explanation to this contract. E. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, person, primary covered transaction, principal, and voluntarily excluded, as used in this section, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact COMMERCE for assistance in obtaining a copy of these regulations. 12. CODE REQUIREMENTS All construction and rehabilitation projects must satisfy the requirements of applicable local, state, and federal building, mechanical, plumbing, fire, energy and barrier -free codes. Compliance with the Americans with Disabilities Act of 1990 28 C.F.R. Part 35 will be required, as specified by the local building Department. 13. CONFIDENTIALITY/SAFEGUARDING OF INFORMATION A. "Confidential Information" as used in this section includes: 1. All material provided to the Grantee by COMMERCE that is designated as "confidential" by COMMERCE; 2. All material produced by the Grantee that is designated as "confidential" by COMMERCE; and 3. All personal information in the possession of the Grantee that may not be disclosed under state or federal law. "Personal information" includes but is not limited to information related to a person's name, health, finances, education, business, use of government services, addresses, telephone numbers, social security number, driver's license number and other identifying numbers, and "Protected Health Information" under the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). B. The Grantee shall comply with all state and federal laws related to the use, sharing, transfer, sale, or disclosure of Confidential Information. The Grantee shall use Confidential Information solely for the purposes of this Grant and shall not use, share, transfer, sell or disclose any Confidential Information to any third party except with the prior written consent of COMMERCE or as may be required by law. The Grantor shall take all necessary steps to assure that Confidential Information is safeguarded to prevent unauthorized use, sharing, transfer, sale or disclosure of Confidential Information or violation of any state or federal laws related thereto. Upon request, the Grantee shall provide COMMERCE with its policies and procedures on confidentiality. COMMERCE may require changes to such policies and procedures as they apply to this Grant whenever COMMERCE reasonably determines that changes are necessary to prevent unauthorized disclosures. The Grantee shall make the changes within the time period specified by COMMERCE. Upon request, the Grantee shall immediately return to COMMERCE any Confidential Information that COMMERCE reasonably determines has not been adequately protected by the Grantee against unauthorized disclosure. 11 Packet Pg. 20 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS C. Unauthorized Use or Disclosure. The Grantee shall notify COMMERCE within five (5) working days of any unauthorized use or disclosure of any confidential information, and shall take necessary steps to mitigate the harmful effects of such use or disclosure. 14. CONFORMANCE If any provision of this contract violates any statute or rule of law of the state of Washington, it is considered modified to conform to that statute or rule of law. 15. CONFLICT OF INTEREST Notwithstanding any determination by the Executive Ethics Board or other tribunal, the COMMERCE may, in its sole discretion, by written notice to the Grantee terminate this contract if it is found after due notice and examination by COMMERCE that there is a violation of the Ethics in Public Service Act, Chapters 42.52 RCW and 42.23 RCW; or any similar statute involving the Grantee in the procurement of, or performance under this contract. Specific restrictions apply to contracting with current or former state employees pursuant to chapter 42.52 of the Revised Code of Washington. The Grantee and their subcontractor(s) must identify any person employed in any capacity by the state of Washington that worked on the Commerce program administering this contract, including but not limited to formulating or drafting the legislation, participating in grant procurement planning and execution, awarding grants, and monitoring grants, during the 24 month period preceding the start date of this Grant. Identify the individual by name, the agency previously or currently employed by, job title or position held, and separation date. If it is determined by COMMERCE that a conflict of interest exists, the Grantee may be disqualified from further consideration for the award of a Grant. In the event this contract is terminated as provided above, COMMERCE shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the contract by the Grantee. The rights and remedies of COMMERCE provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. The existence of facts upon which COMMERCE makes any determination under this clause shall be an issue and may be reviewed as provided in the "Disputes" clause of this contract. 16. COPYRIGHT PROVISIONS Unless otherwise provided, all Materials produced under this Grant shall be considered "works for hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE. COMMERCE shall be considered the author of such Materials. In the event the Materials are not considered "works for hire" under the U.S. Copyright laws, the Grantee hereby irrevocably assigns all right, title, and interest in all Materials, including all intellectual property rights, moral rights, and rights of publicity to COMMERCE effective from the moment of creation of such Materials. "Materials" means all items in any format and includes, but is not limited to, data, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and/or sound reproductions. "Ownership" includes the right to copyright, patent, register and the ability to transfer these rights. For Materials that are delivered under the Grant, but that incorporate pre-existing materials not produced under the Grant, the Grantee hereby grants to COMMERCE a nonexclusive, royalty -free, irrevocable license (with rights to sublicense to others) in such Materials to translate, reproduce, distribute, prepare derivative works, publicly perform, and publicly display. The Grantee warrants and represents that the Grantee has all rights and permissions, including intellectual property rights, moral rights and rights of publicity, necessary to grant such a license to COMMERCE. The Grantee shall exert all reasonable effort to advise COMMERCE, at the time of delivery of Materials furnished under this Grant, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this Grant. The Grantee shall provide COMMERCE with prompt written notice of each notice or claim of infringement received by the Grantee with respect to any Materials delivered under this Grant. COMMERCE shall have the right to modify or remove any restrictive markings placed upon the Materials by the Grantee. 12 Packet Pg. 21 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 17. DISALLOWED COSTS The Grantee is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its Subcontractors. 18. DISPUTES Except as otherwise provided in this Grant, when a dispute arises between the parties and it cannot be resolved by direct negotiation, either party may request a dispute hearing with the Director of COMMERCE, who may designate a neutral person to decide the dispute. The request for a dispute hearing must: • be in writing; • state the disputed issues; • state the relative positions of the parties; • state the Contractor's name, address, and Grant number; and • be mailed to the Director and the other party's (respondent's) Contract Representative within three (3) working days after the parties agree that they cannot resolve the dispute. The respondent shall send a written answer to the requestor's statement to both the Director or the Director's designee and the requestor within five (5) working days. The Director or designee shall review the written statements and reply in writing to both parties within ten (10) working days. The Director or designee may extend this period if necessary by notifying the parties. The decision shall not be admissible in any succeeding judicial or quasi-judicial proceeding. The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial tribunal. Nothing in this Grant shall be construed to limit the parties' choice of a mutually acceptable alternate dispute resolution (ADR) method in addition to the dispute hearing procedure outlined above. 19. DUPLICATE PAYMENT The Grantee certifies that work to be performed under this contract does not duplicate any work to be charged against any other contract, subcontract, or other source. 20. GOVERNING LAW AND VENUE This Grant shall be construed and interpreted in accordance with the laws of the state of Washington, and the venue of any action brought hereunder shall be in the Superior Court for Thurston County. 21. INDEMNIFICATION To the fullest extent permitted by law, the Grantee shall indemnify, defend, and hold harmless the state of Washington, COMMERCE, agencies of the state and all officials, agents and employees of the state, for, from and against all claims for injuries or death arising out of, or resulting from, the performance of the contract. "Claim" as used in this contract, means any financial loss, claim, suit, action, damage, or expense, including but not limited to attorney's fees, attributable for bodily injury, sickness, disease, or death, or injury to or the destruction of tangible property including loss of use resulting therefrom. The Grantee's obligation to indemnify, defend, and hold harmless includes any claim by Grantee's agents, employees, representatives, or any subcontractor or its employees. Grantee expressly agrees to indemnify, defend, and hold harmless the State for any claim arising out of or incident to Grantee's or any subcontractor's performance or failure to perform the contract. Grantee's obligation to indemnify, defend, and hold harmless the State shall not be eliminated or reduced by any actual or alleged concurrent negligence of State or its agents, agencies, employees and officials. The Grantee waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold harmless the state and its agencies, officers, agents or employees. 13 Packet Pg. 22 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 22. INDEPENDENT CAPACITY OF THE GRANTEE The parties intend that an independent contractor relationship will be created by this Grant. The Grantee and its employees or agents performing under this Grant are not employees or agents of the state of Washington or COMMERCE. The Grantee will not hold itself out as or claim to be an officer or employee of COMMERCE or of the state of Washington by reason hereof, nor will the Grantee make any claim of right, privilege or benefit which would accrue to such officer or employee under law. Conduct and control of the work will be solely with the Grantee. 23. INDUSTRIAL INSURANCE COVERAGE The Grantee shall comply with all applicable provisions of Title 51 RCW, Industrial Insurance. If the Grantee fails to provide industrial insurance coverage or fails to pay premiums or penalties on behalf of its employees as may be required by law, COMMERCE may collect from the Grantee the full amount payable to the Industrial Insurance Accident Fund. COMMERCE may deduct the amount owed by the Grantee to the accident fund from the amount payable to the Grantee by COMMERCE under this Grant, and transmit the deducted amount to the Department of Labor and Industries, (L&I) Division of Insurance Services. This provision does not waive any of L&I's rights to collect from the Grantee. 24. LAWS The Grantee shall comply with all applicable laws, ordinances, codes, regulations, and policies of local, state, and federal governments, as now or hereafter amended. 25. LICENSING, ACCREDITATION AND REGISTRATION The Grantee shall comply with all applicable local, state, and federal licensing, accreditation and registration requirements or standards necessary for the performance of this Grant. 26. LIMITATION OF AUTHORITY Only the Authorized Representative or Authorized Representative's designee by writing (designation to be made prior to action) shall have the express, implied, or apparent authority to alter, amend, modify, or waive any clause or condition of this Grant. 27. NONCOMPLIANCE WITH NONDISCRIMINATION LAWS During the performance of this Grant, the Grantee shall comply with all federal, state, and local nondiscrimination laws, regulations and policies. In the event of the Grantee's non-compliance or refusal to comply with any nondiscrimination law, regulation or policy, this contract may be rescinded, canceled or terminated in whole or in part, and the Grantee may be declared ineligible for further contracts with COMMERCE. The Grantee shall, however, be given a reasonable time in which to cure this noncompliance. Any dispute may be resolved in accordance with the "Disputes" procedure set forth herein. The funds provided under this contract may not be used to fund religious worship, exercise, or instruction. No person shall be required to participate in any religious worship, exercise, or instruction in order to have access to the facilities funded by this grant. 28. PAY EQUITY The Grantee agrees to ensure that "similarly employed" individuals in its workforce are compensated as equals, consistent with the following: A. Employees are "similarly employed" if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed; B. Grantee may allow differentials in compensation for its workers if the differentials are based in good faith and on any of the following: (i) A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job -related factor or factors; or a bona fide regional difference in compensation levels. 14 Packet Pg. 23 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS (ii) A bona fide job -related factor or factors may include, but not be limited to, education, training, or experience that is: Consistent with business necessity; not based on or derived from a gender -based differential; and accounts for the entire differential. (iii) A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender -based differential; and account for the entire differential. This Grant may be terminated by the Department, if the Department or the Department of Enterprise services determines that the Grantee is not in compliance with this provision. 29. POLITICAL ACTIVITIES Political activity of Grantee employees and officers are limited by the State Campaign Finances and Lobbying provisions of Chapter 42.17A RCW and the Federal Hatch Act, 5 USC 1501 - 1508. No funds may be used for working for or against ballot measures or for or against the candidacy of any person for public office. 30. PREVAILING WAGE LAW The Grantee certifies that all contractors and subcontractors performing work on the Project shall comply with state Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable to the Project funded by this contract, including but not limited to the filing of the "Statement of Intent to Pay Prevailing Wages" and "Affidavit of Wages Paid" as required by RCW 39.12.040. The Grantee shall maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and shall make such records available for COMMERCE's review upon request.. The Grantee shall consult with the Department of Labor and Industries (L&I) as may be required to determine the applicability of prevailing wage to the Project. 31. PROCUREMENT STANDARDS FOR FEDERALLY FUNDED PROGRAMS A Grantee which is a local government or Indian Tribal government must establish procurement policies and procedures in accordance with 2 CFR 200 for all purchases funded by this contract. All recipients of funds under this Contract, including Contractor and subrecipients or subcontractors of any tier, must follow the procurement standards in 2 CFR §§ 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR § 200.320. The Grantee's procurement system should include but not necessarily be limited to, the following: A. General procurement standards 2 CFR 200.318. A code or standard of conduct that shall govern the performance of its officers, employees, or agents engaged in the awarding of contracts using federal funds. B. Competition 2 CFR 200.319. Procedures that ensure all procurement transactions shall be conducted in a manner providing full and open competition consistent with the standards of this section and 2§ 00.320. C. Methods of procurement to be followed 2 CFR 20§ 0.320. D. Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms 2 CFR 2§ 00.321. E. Domestic preferences for procurements 2 CFR 2� 00.322. 15 Packet Pg. 24 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 32. PROHIBITION AGAINST PAYMENT OF BONUS OR COMMISSION The funds provided under this Grant shall not be used in payment of any bonus or commission for the purpose of obtaining approval of the application for such funds or any other approval or concurrence under this Grant provided, however, that reasonable fees or bona fide technical consultant, managerial, or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as project costs. 33. PUBLICITY The Grantee agrees not to publish or use any advertising or publicity materials in which the state of Washington or COMMERCE's name is mentioned, or language used from which the connection with the state of Washington's or COMMERCE's name may reasonably be inferred or implied, without the prior written consent of COMMERCE. 34. RECAPTURE In the event that the Grantee fails to perform this contract in accordance with state laws, federal laws, and/or the provisions of this contract, COMMERCE reserves the right to recapture funds in an amount to compensate COMMERCE for the noncompliance in addition to any other remedies available at law or in equity. Repayment by the Grantee of funds under this recapture provision shall occur within the time period specified by COMMERCE. In the alternative, COMMERCE may recapture such funds from payments due under this contract. 35. RECORDS MAINTENANCE The Grantee shall maintain books, records, documents, data and other evidence relating to this contract and performance of the services described herein, including but not limited to accounting procedures and practices that sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this contract. The Grantee shall retain such records for a period of six years following the date of final payment. At no additional cost, these records, including materials generated under the contract, shall be subject at all reasonable times to inspection, review or audit by COMMERCE, personnel duly authorized by COMMERCE, the Office of the State Auditor, and federal and state officials so authorized by law, regulation or agreement. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 36. REGISTRATION WITH DEPARTMENT OF REVENUE If required by law, the Grantee shall complete registration with the Washington State Department of Revenue. 37. RIGHT OF INSPECTION At no additional cost all records relating to the Grantee's performance under this Grant shall be subject at all reasonable times to inspection, review, and audit by COMMERCE, the Office of the State Auditor, and federal and state officials so authorized by law, in order to monitor and evaluate performance, compliance, and quality assurance under this Grant. The Grantee shall provide access to its facilities for this purpose. 38. SAVINGS In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Grant and prior to normal completion, COMMERCE may terminate the Grant under the "Termination for Convenience" clause, without the ten business day notice requirement. In lieu of termination, the Grant may be amended to reflect the new funding limitations and conditions. 16 Packet Pg. 25 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 39. SEVERABILITY The provisions of this contract are intended to be severable. If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the contract. 40. SUBCONTRACTING The Grantee may only subcontract work contemplated under this Grant if it obtains the prior written approval of COMMERCE. If COMMERCE approves subcontracting, the Grantee shall maintain written procedures related to subcontracting, as well as copies of all subcontracts and records related to subcontracts. For cause, COMMERCE in writing may: (a) require the Grantee to amend its subcontracting procedures as they relate to this Grant; (b) prohibit the Grantee from subcontracting with a particular person or entity; or (c) require the Grantee to rescind or amend a subcontract. Every subcontract shall bind the Subcontractor to follow all applicable terms of this Grant. The Grantee is responsible to COMMERCE if the Subcontractor fails to comply with any applicable term or condition of this Grant. The Grantee shall appropriately monitor the activities of the Subcontractor to assure fiscal conditions of this Grant. In no event shall the existence of a subcontract operate to release or reduce the liability of the Grantee to COMMERCE for any breach in the performance of the Grantee's duties. Every subcontract shall include a term that COMMERCE and the State of Washington are not liable for claims or damages arising from a Subcontractor's performance of the subcontract. 41. SURVIVAL The terms, conditions, and warranties contained in this Grant that by their sense and context are intended to survive the completion of the performance, cancellation or termination of this Grant shall so survive. 42. TAXES All payments accrued on account of payroll taxes, unemployment contributions, the Grantee's income or gross receipts, any other taxes, insurance or expenses for the Grantee or its staff shall be the sole responsibility of the Grantee. 43. TERMINATION FOR CAUSE In the event COMMERCE determines the Grantee has failed to comply with the conditions of this contract in a timely manner, COMMERCE has the right to suspend or terminate this contract. Before suspending or terminating the contract, COMMERCE shall notify the Grantee in writing of the need to take corrective action. If corrective action is not taken within 30 calendar days, the contract may be terminated or suspended. In the event of termination or suspension, the Grantee shall be liable for damages as authorized by law including, but not limited to, any cost difference between the original contract and the replacement or cover contract and all administrative costs directly related to the replacement contract, e.g., cost of the competitive bidding, mailing, advertising and staff time. COMMERCE reserves the right to suspend all or part of the contract, withhold further payments, or prohibit the Grantee from incurring additional obligations of funds during investigation of the alleged compliance breach and pending corrective action by the Grantee or a decision by COMMERCE to terminate the contract. A termination shall be deemed a "Termination for Convenience" if it is determined that the Grantee: (1) was not in default; or (2) failure to perform was outside of his or her control, fault or negligence. The rights and remedies of COMMERCE provided in this contract are not exclusive and are, in addition to any other rights and remedies, provided by law. 17 Packet Pg. 26 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 44. TERMINATION FOR CONVENIENCE Except as otherwise provided in this Grant COMMERCE may, by ten (10) business days written notice, beginning on the second day after the mailing, terminate this Grant, in whole or in part. If this Grant is so terminated, COMMERCE shall be liable only for payment required under the terms of this Grant for services rendered or goods delivered prior to the effective date of termination. 45. TERMINATION PROCEDURES Upon termination of this contract, COMMERCE, in addition to any other rights provided in this contract, may require the Grantee to deliver to COMMERCE any property specifically produced or acquired for the performance of such part of this contract as has been terminated. The provisions of the "Treatment of Assets" clause shall apply in such property transfer. COMMERCE shall pay to the Grantee the agreed upon price, if separately stated, for completed work and services accepted by COMMERCE, and the amount agreed upon by the Grantee and COMMERCE for (i) completed work and services for which no separate price is stated, (ii) partially completed work and services, (iii) other property or services that are accepted by COMMERCE, and (iv) the protection and preservation of property, unless the termination is for default, in which case the authorized Representative shall determine the extent of the liability of COMMERCE. Failure to agree with such determination shall be a dispute within the meaning of the "Disputes" clause of this contract. COMMERCE may withhold from any amounts due the Grantee such sum as the Authorized Representative determines to be necessary to protect COMMERCE against potential loss or liability. The rights and remedies of COMMERCE provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract. After receipt of a notice of termination, and except as otherwise directed by the Authorized Representative, the Grantee shall: A. Stop work under the contract on the date, and to the extent specified, in the notice; B. Place no further orders or subcontracts for materials, services, or facilities except as may be necessary for completion of such portion of the work under the contract that is not terminated; C. Assign to COMMERCE, in the manner, at the times, and to the extent directed by the Authorized Representative, all of the rights, title, and interest of the Grantee, under the orders and subcontracts so terminated, in which case COMMERCE has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts; D. Settle all outstanding liabilities and all claims arising out of such termination of orders and subcontracts, with the approval or ratification of the Authorized Representative to the extent the Authorized Representative may require, which approval or ratification shall be final for all the purposes of this clause; E. Transfer title to COMMERCE and deliver in the manner, at the times, and to the extent directed by the Authorized Representative any property which, if the contract had been completed, would have been required to be furnished to COMMERCE; F. Complete performance of such part of the work as shall not have been terminated by the Authorized Representative; and G. Take such action as may be necessary, or as the Authorized Representative may direct, for the protection and preservation of the property related to this contract, which is in the possession of the Grantee and in which COMMERCE has or may acquire an interest. 18 Packet Pg. 27 2.2.a GENERAL TERMS AND CONDITIONS CAPITAL FEDERALFUNDS 46. TREATMENT OF ASSETS Title to all property furnished by COMMERCE shall remain in COMMERCE. Title to all property furnished by the Grantee, for the cost of which the Grantee is entitled to be reimbursed as a direct item of cost under this contract, shall pass to and vest in COMMERCE upon delivery of such property by the Grantee. Title to other property, the cost of which is reimbursable to the Grantee under this contract, shall pass to and vest in COMMERCE upon (i) issuance for use of such property in the performance of this contract, or (ii) commencement of use of such property in the performance of this contract, or (iii) reimbursement of the cost thereof by COMMERCE in whole or in part, whichever first occurs. A. Any property of COMMERCE furnished to the Grantee shall, unless otherwise provided herein or approved by COMMERCE, be used only for the performance of this contract. B. The Grantee shall be responsible for any loss or damage to property of COMMERCE that results from the negligence of the Grantee or which results from the failure on the part of the Grantee to maintain and administer that property in accordance with sound management practices. C. If any COMMERCE property is lost, destroyed or damaged, the Grantee shall immediately notify COMMERCE and shall take all reasonable steps to protect the property from further damage. D. The Grantee shall surrender to COMMERCE all property of COMMERCE prior to settlement upon completion, termination or cancellation of this contract All reference to the Grantee under this clause shall also include Grantee's employees, agents or Subcontractors. 47. WAIVER Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or breach. Any waiver shall not be construed to be a modification of the terms of this Grant unless stated to be such in writing and signed by Authorized Representative of COMMERCE. 48. WORK HOURS AND SAFETY STANDARDS The Grant Work Hours and Safety Standards Act (40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of $100,000 for construction and other purposes that involve the employment of mechanics or laborers must include a provision for compliance with Section 102 and 107 of the Grant Work Hours Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor regulations (29 CFR part 5). Under Section 102 of the Act, each subcontractor is required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 '/2 times the basic rate of pay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic is required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 19 Packet Pg. 28 2.2.a Attachment A SCOPE OF WORK Funds awarded under this grant will be used for capital expenditures for the Edmonds Lutheran Church Field Apartments, a 52-unit affordable multifamily housing development. The location of the project is: Vacant Land 236th Street Southwest, Edmonds, WA 98026 Project activities will include and be limited to the construction of the following utility improvements: Connect the proposed onsite stormwater system to the existing system in 236th St SW. The stormwater system is based on utilization of a 30,000 cubic foot, below -grade concrete detention vault which will capture the sites water via catch basins and drains, then utilize a flow control structure to release this in a controlled, predetermined rate into the existing City of Edmonds storm system. This cost includes the supply and install of all storm utility specific work: earthwork, materials, asphalt cutting/patching, sidewalk replacement where the utility comes from offsite main into the site, and flagging. This project is expected to be complete by November 30, 2024. The "Copyright Provisions", Section 16 of the General Terms and Conditions, are not intended to apply to any architectural and engineering design work funded by this grant. 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. • The utility project must serve new multi -unit affordable1 housing projects that serve and benefit low-income households.2 If the project is a mixed -income project, the affordable portion of the development must be at least 25%. • 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. 1 "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. 20 Packet Pg. 29 2.2.a Attachment A 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. Michael Nelson, Mayor DATE How this project meets criteria for APRA SLFRF Projects This project aligns to the Expenditure Category 3 of ARPA SLRF, services to Disproportionately Impacted Communities, Housing Support: Affordable Housing EC 2.15,3 Under ARPA's SLFRF guidance, funding for this grant falls under the category of responding to "Public Health and Economic Impacts" of the COVID-19 public health emergency. Within that category of eligible actions, this program is intended to "Building Stronger Communities through Investments in Housing and Neighborhoods" by serving those communities that were hardest hit by the pandemic through investments in affordable housing development. Eligible services include: Affordable housing development to increase supply of affordable and high quality living units. Supporting the development of affordable housing is important to address a limited supply of housing, some of which is inadequate, or of poor quality.' The Interim Final Rule supports this finding by stating that "both the public health and economic impacts of the pandemic have fallen most severely on communities and populations disadvantaged before it began" including "low income communities, people of color, and Tribal communities.115 3 https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf ' See specific language at printed pages 26795 and 26796 of the Interim Final Rule to implement the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund established under ARPA). 5 Ibid, page 26787. 21 Packet Pg. 30 2.2.a Attachment B CERTIFICATION OF THE AVAILABILITY OF FUNDS TO COMPLETE THE ENTIRE PROJECT Type of Funding Source Description and purpose Amount CHIP Grant Washington State Department of Commerce $1,361,011 Other Sources Source #1 Snohomish County HOME Loan $1,100,000 Source #2 Snohomish County CDMH Loan $793,222 Source #3 Washington State Department of Commerce $4,775,000 Loan Source #4 Beneficial State Bank Construction Loan $16,500,000 Source #5 Sponsor Loan (from Housing Hope) $955,929 Total Other Funds T $24,124,151 Total Project Funding $25,485,162 CERTIFICATION PERFORMANCE MEASURE - AVAILABILITY OF FUNDS The GRANTEE by its signature, certifies that project funding from sources other than those provided by this Grant Agreement has either been expended for eligible Project expenses, or is committed in writing and available and will remain committed and available solely and specifically for carrying out the purposes of this Project as described in elsewhere in this Grant Agreement, as of the date and year written below. The GRANTEE shall maintain records sufficient to evidence that it has expended or has access to the funds needed to complete the Project, and shall make such records available for COMMERCE's review upon reasonable request. Michael Nelson, Mayor DATE 22 Q Packet Pg. 31 2.2.a Attachment C CERTIFICATION OF THE PAYMENT AND REPORTING OF PREVAILING WAGES The GRANTEE, by its signature, certifies that all contractors and subcontractors performing work on the Project shall comply with prevailing wage laws set forth in Chapter 39.12 RCW, as applicable to the Project funded by this Grant Agreement, including but not limited to the filing of the "Statement of Intent to Pay Prevailing Wages" and "Affidavit of Wages Paid" as required by RCW 39.12.040. See Section 30 of the General Terms and Conditions. Before invoices are paid, the "awarding agency" must provide documentation of the "intent to pay commercial prevailing wages". Before the final funds are paid from the state, an "affidavit of wages paid" from L&I must also be provided. The GRANTEE or assignee, shall maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and shall make such records available for COMMERCE's review upon request. CERTIFICATION PERFORMANCE MEASURE — PREVAILING WAGES The GRANTEE, by its signature, certifies that the declaration set forth above has been reviewed and approved by the GRANTEE and their subcontractors as of the date and year written below. Michael Nelson, Mayor DATE 23 Packet Pg. 32 2.2.b CITY OF EDMONDS GRANT AGREEMENT FOR THE USE OF FUNDS FROM THE WASHINGTON STATE DEPARTMENT OF COMMERCE CONNECTING HOUSING TO INFRASTRUCTURE PROGRAM (CHIP) THIS GRANT AGREEMENT ("Grant Agreement"), is made and entered into by and between the City of Edmonds (the "City"), a Washington municipal corporation, and Housing Hope, a public benefit nonprofit corporation (the "Grantee") (collectively the "Parties"). RECITALS WHEREAS, the American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021; and WHEREAS, ARPA provides monetary relief to address the continued impacts of the COVID-19 pandemic on the economy, public health, state and local governments, individuals, and businesses; and WHEREAS, ARPA Sec. 9901 provides funding to states and local governments to mitigate the fiscal effects stemming from the COVID-19 public health emergency; and WHEREAS, state and local governments shall use funds to cover costs incurred by December 31, 2024 to, among other things, respond to the negative economic impacts of the COVID-19 emergency; and WHEREAS, the Washington State Department of Commerce ("Commerce") initiated a program for the use of ARPA funds called the Connecting Housing to Infrastructure Program (CHIP); and WHEREAS, the City has entered into a Capital Agreement with Commerce ("Capital Agreement") to use Commerce -provided CHIP Grant funds ("Funds") to support the development of affordable housing by providing funds for utility infrastructure improvements for an affordable housing project located in Edmonds, Washington to be known as Edmonds Lutheran Church Field Apartments ("Field Apartment Project"); and WHEREAS, the Grantee is the sponsor of the Field Apartment Project and a Subcontractor for the City under the Capital Agreement tasked with performing the utility infrastructure improvements for the Field Apartment Project; and WHEREAS, the City and the Grantee wish to memorialize the rights and responsibilities of each with regard to the allocation and use of the Funds; NOW, THEREFORE, in consideration of the mutual benefits accruing, it is agreed by and between the Parties hereto as follows: Packet Pg. 33 2.2.b Housing Hope Grant Agreement 2023 Page 2 of 6 1. Acknowledtements. The Parties acknowledge and affirm that the Funds provided by the City to the Grantee pursuant to this Grant Agreement are a subaward of federal ARPA grant funds awarded by the federal Department of the Treasury and passed through to the City by Commerce. This subaward is intended as economic support in connection with the COVID-19 public health emergency and related economic crisis to assist with utility infrastructure construction -related expenses incurred during the period of March 3, 2021 through December 31, 2024. The Grantee's unique entity identifier is EIN 94-3060709. The City is operating under the Washington FAIN SLF0002 and CFDA Number 21.027. The City's 2021 Nonentitlement Unit Recipient Number assigned by the State of Washington Office of Financial Management for disbursement of ARPA funds to nonentitlement cities is WA0365, the Federal Award Date is July 1, 2021, and the Subaward Period of Performance Start and End Dates are July 1, 2021 to June 30, 2023. The End Date may be extended contingent upon reappropriation. The City's awarding official is Mayor Mike Nelson, whose contact information is included in Section 15 ("Notices"), below. As a Subcontractor for the City under the Capital Agreement, a copy of which is attached hereto and incorporated herein by this reference, the Grantee agrees that the terms of the Capital Agreement will govern the use of the Funds provided hereunder and the Grantee agrees to be bound by all applicable provisions of the Capital Agreement. Commerce and the State of Washington are not liable for claims or damages arising from the Subcontractor's performance of the subcontract. 2. Grant Funds. Grant funds will be disbursed on a reimbursement basis as provided in the Capital Agreement. 3. Allowable Uses. The Funds provided pursuant to this Grant Agreement are to be loaned by the Grantee to an affiliate of Grantee, ELCFA LLC, a Washington limited liability company ("ELCFA"), and used by ELCFA for the installation of utilities at the Field Apartment Project, located at 8215 236th Street SW, Edmonds, Washington, Parcel ID #00576700002614, which will be a 52-unit affordable multi -family housing development with four (4) three-story structures totaling approximately 49,793 square feet. The development will include supportive services, staff offices, community amenities, street frontage and on -site improvements, as well as off -site sports court improvements. All fifty-two units will serve families with children. The intent is that half of the units will be dedicated to families coming directly from homelessness (the "Homeless Units") to the extent that the Field Apartments Project receives the necessary operating and/or service subsidies to support the operation of the Homeless Units, and all units will be for families with low income who earn less than fifty percent (50%) of the Area Median Income, which equates to $57,850 for a family of four. The utility project activities will be as described in the Capital Agreement, Attachment A — Scope of Work. 4. Records Maintenance. The Grantee will maintain books, records, documents, data and other evidence relating to this Agreement (collectively referred to herein as "Records"). The Records will be subject to inspection by the City at all reasonable times, and will be retained by the Grantee for a period of six (6) years following the termination of this Agreement. If any litigation, claim or audit is started before the expiration of the six (6) year period, the Records will be retained until all litigation, claims or audit findings involving the materials have been resolved. Packet Pg. 34 2.2.b Housing Hope Grant Agreement 2023 Page 3 of 6 5. Reporting. The Grantee will provide regular written financial and performance reports to the City as requested, but no less often than quarterly, to include, at a minimum, information on the amount of Funds expended and a detailed accounting of the uses of the Funds. Such reports will be in compliance with the requirements of the Capital Agreement. 6. Term and Termination of Agreement. This Grant Agreement will be in effect as of the effective date listed below through December 31, 2024. The City may earlier terminate this Grant Agreement, and require repayment of either a portion or the entirety of the Funds if it determines that the Grantee has defaulted on any of its obligations under this Grant Agreement, after giving the Grantee a reasonable opportunity, not to exceed thirty (30) calendar days, to cure such default. 7. Amendments. This Grant Agreement may be amended by mutual agreement of the Parties. Such amendments shall not be binding unless they are in writing and signed by an authorized representative of each party. 8. Compliance with Laws. The Parties will comply with all applicable laws, ordinances, codes, regulations, and policies of local, state and federal governments, as they now exist or are hereafter amended, including those relating to the recipients or subrecipients of federal awards. Federal award laws include, but are not limited to, the applicable provisions of the Assurances of Compliance with Civil Rights Requirements set forth in Attachment A (attached hereto and incorporated herein by this reference). The Grantee will comply with the requirements of Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from excluding from a program or activity, denying benefits of, or otherwise discriminating against a person on the basis of race, color or national origin (42 U.S.C. Sec. 2000d et seq.), as implemented by the Department of the Treasury's Title VI regulations, 31 CFR Part 22, which are herein incorporated by reference and made a part of this Agreement. Title VI also includes protections to persons with "Limited English Proficiency" in any program or activity receiving federal financial assistance, 42 U.S.C. Sec. 2000d et seq., as implemented by the Department of the Treasury's Title VI regulations, 31 CFR Part 22, and herein incorporated by reference and made a part of this Grant Agreement. 9. Non -waiver. Waiver by the City of any default or breach of any provision of this Grant Agreement or any time limitation provided for in this Grant Agreement shall not constitute a waiver of any other provision or any subsequent default or breach. Any waiver shall not be construed to be a modification of the terms of this Grant Agreement unless stated to be such in writing and signed by an authorized representative of each party. 10. Non -assignable. Neither this Grant Agreement nor any claim arising under this Grant Agreement shall be transferred or assigned without the prior express written consent of the City. 11. Severability. The provisions of this Grant Agreement are intended to be severable. If any term or provision hereof is held to be void, illegal, unenforceable, or invalid for any reason whatsoever, such illegality or invalidity will not affect the validity of the remaining provisions. Packet Pg. 35 2.2.b Housing Hope Grant Agreement 2023 Page 4 of 6 12. Survival. The terms, conditions and warranties contained in this Grant Agreement that by their sense and context are intended to survive the completion of the performance, cancellation or termination of this Grant Agreement will so survive. 13. Governing Law and Venue. This Grant Agreement will be construed and interpreted in accordance with the laws of the state of Washington and any applicable federal laws, and the venue of any action brought hereunder shall be in the Superior Court for Snohomish County. 14. Indemnification. Each party will be solely responsible for the acts of its employees, officers, and agents. 15. Notices. Notices to the City of Edmonds shall be sent to the following address City of Edmonds Attn: Mayor Mike Nelson 121 5th Avenue N Edmonds, WA 98020 Notices to the Grantee shall be sent to the following address (which must be identical to the address that appears on the business's W-9 form): Housing Hope Attn: Chief Executive Officer 3331 Broadway Avenue Everett, WA 98201 With a copy to: ELCFA LLC c/o Housing Hope Attn: Chief Executive Officer 3331 Broadway Avenue Everett, WA 98201 And with a copy to: NEF Assignment Corporation 10 South Riverside Plaza Suite 1700 Chicago, IL 60606 Receipt of any notice shall be deemed effective three (3) days after deposit of written notice in the U.S. mails, with proper postage and properly addressed. Packet Pg. 36 2.2.b Housing Hope Grant Agreement 2023 Page 5 of 6 16. Entire Written Agreement. This document and the attachments hereto represent the entire agreement, written or oral, between the Parties. No representation or other oral agreement by either party shall survive the execution of this Grant Agreement. This Grant Agreement shall be amended only upon the express written agreement of both Parties. 17. Effective Date. The effective date of this Grant Agreement shall be the date set forth below. DATED this day of CITY OF EDMONDS Michael Nelson, Mayor ATTEST/AUTHENTICATED: Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney 2023. HOUSING HOPE, a Washington public benefit nonprofit corporation Donna Moulton, Chief Executive Officer Packet Pg. 37 2.2.b Housing Hope Grant Agreement 2023 Page 6 of 6 HOUSING HOPE NOTARY BLOCK STATE OF WASHINGTON ) )ss COUNTY OF ) I certify that I know or have satisfactory evidence that Donna Moulton is the person who appeared before me and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the Chief Executive Officer of Housing Hope, a Washington public benefit nonprofit corporation, to be the free and voluntary act such party for the uses and purposes mentioned in the instrument. DATED: Print Name: Residing at: My appointment expires: Packet Pg. 38 ATTACHMENT A 2.2.b OMB Approved No. 1505-0271 Expiration Date: November 30, 2021 ASSURANCES OF COMPLIANCE WITH CIVIL RIGHTS REQUIREMENTS ASSURANCES OF COMPLIANCE WITH TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 As a condition of receipt of federal financial assistance from the Department of the Treasury, the recipient named below (hereinafter referred to as the "Recipient") provides the assurances stated herein. The federal financial assistance may include federal grants, loans and contracts to provide assistance to the Recipient's beneficiaries, the use or rent of Federal land or property at below market value, Federal training, a loan of Federal personnel, subsidies, and other arrangements with the intention of providing assistance. Federal financial assistance does not encompass contracts of guarantee or insurance, regulated programs, licenses, procurement contracts by the Federal government at market value, or programs that provide direct benefits. The assurances apply to all federal financial assistance from or funds made available through the Department of the Treasury, including any assistance that the Recipient may request in the future. The Civil Rights Restoration Act of 1987 provides that the provisions of the assurances apply to all of the operations of the Recipient's program(s) and activity(ies), so long as any portion of the Recipient's program(s) or activity(ies) is federally assisted in the manner prescribed above. Recipient ensures its current and future compliance with Title VI of the Civil Rights Act of 1964, as amended, which prohibits exclusion from participation, denial of the benefits of, or subjection to discrimination under programs and activities receiving federal financial assistance, of any person in the United States on the ground of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the Department of the Treasury Title VI regulations at 31 CFR Part 22 and other pertinent executive orders such as Executive Order 13166, directives, circulars, policies, memoranda, and/or guidance documents. 2. Recipient acknowledges that Executive Order 13166, "Improving Access to Services for Persons with Limited English Proficiency," seeks to improve access to federally assisted programs and activities for individuals who, because of national origin, have Limited English proficiency (LEP). Recipient understands that denying a person access to its programs, services, and activities because of LEP is a form of national origin discrimination prohibited under Title VI of the Civil Rights Act of 1964 and the Department of the Treasury's implementing regulations. Accordingly, Recipient shall initiate reasonable steps, or comply with the Department of the Treasury's directives, to ensure that LEP persons have meaningful access to its programs, services, and activities. Recipient understands and agrees that meaningful access may entail providing language assistance services, including oral interpretation and written translation where necessary, to ensure effective communication in the Recipient's programs, services, and activities. 3. Recipient agrees to consider the need for language services for LEP persons when Recipient develops applicable budgets and conducts programs, services, and activities. As a resource, the Department of the Treasury has published its LEP guidance at 70 FR 6067. For more information on taking reasonable steps to provide meaningful access for LEP persons, please visit.http://www.lep.pov Packet Pg. 39 2.2.b OMB Approved No. 1505-0271 Expiration Date: November 30, 2021 4. Recipient acknowledges and agrees that compliance with the assurances constitutes a condition of continued receipt of federal financial assistance and is binding upon Recipient and Recipient's successors, transferees, and assignees for the period in which such assistance is provided. 5. Recipient acknowledges and agrees that it must require any sub -grantees, contractors, subcontractors, successors, transferees, and assignees to comply with assurances 1-4 above, and agrees to incorporate the following language in every contract or agreement subject to Title VI and its regulations between the Recipient and the Recipient's sub -grantees, contractors, subcontractors, successors, transferees, and assignees: The sub -grantee, contractor, subcontractor, successor, transferee, and assignee shall comply with Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from excluding from a program or activity, denying benefits of, or otherwise discriminating against a person on the basis of race, color, or national origin (42 U.S. C. § 2000d et seq), as implemented by the Department of the Treasury's Title VI regulations, 31 CFR Part 22, which are herein incorporated by reference and made a part of this contract (or agreement). Title VI also includes protection to persons with "Limited English Proficiency" in any program or activity receiving federal financial assistance, 42 U.S. C. § 2000d et seq., as implemented by the Department of the Treasury's Title VI regulations, 31 CFR Part 22, and herein incorporated by reference and made apart of this contract or agreement. 6. Recipient understands and agrees that if any real property or structure is provided or improved with the aid of federal financial assistance by the Department of the Treasury, this assurance obligates the Recipient, or in the case of a subsequent transfer, the transferee, for the period during which the real property or structure is used for a purpose for which the federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is provided, this assurance obligates the Recipient for the period during which it retains ownership or possession of the property. 7. Recipient shall cooperate in any enforcement or compliance review activities by the Department of the Treasury of the aforementioned obligations. Enforcement may include investigation, arbitration, mediation, litigation, and monitoring of any settlement agreements that may result from these actions. The Recipient shall comply with information requests, on -site compliance reviews and reporting requirements. 8. Recipient shall maintain a complaint log and inform the Department of the Treasury of any complaints of discrimination on the grounds of race, color, or national origin, and limited English proficiency covered by Title VI of the Civil Rights Act of 1964 and implementing regulations and provide, upon request, a list of all such reviews or proceedings based on the complaint, pending or completed, including outcome. Recipient also must inform the Department of the Treasury if Recipient has received no complaints under Title VI. 9. Recipient must provide documentation of an administrative agency's or court's findings of non-compliance of Title VI and efforts to address the non-compliance, including any voluntary compliance or other Packet Pg. 40 2.2.b OMB Approved No. 1505-0271 Expiration Date: November 30, 2021 agreements between the Recipient and the administrative agency that made the finding. If the Recipient settles a case or matter alleging such discrimination, the Recipient must provide documentation of the settlement. If Recipient has not been the subject of any court or administrative agency finding of discrimination, please so state. 10. If the Recipient makes sub -awards to other agencies or other entities, the Recipient is responsible for ensuring that sub -recipients also comply with Title VI and other applicable authorities covered in this document State agencies that make sub -awards must have in place standard grant assurances and review procedures to demonstrate that that they are effectively monitoring the civil rights compliance of sub - recipients. The United States of America has the right to seek judicial enforcement of the terms of this assurances document and nothing in this document alters or limits the federal enforcement measures that the United States may take in order to address violations of this document or applicable federal law. Under penalty of perjury, the undersigned official(s) certifies that official(s) has read and understood the Recipient's obligations as herein described, that any information submitted in conjunction with this assurances document is accurate and complete, and that the Recipient is in compliance with the aforementioned nondiscrimination requirements. Recipient Signatur of Authorized Official Ho,8®r PAPERWORK REDUCTION ACT NOTICE Date The information collected will be used for the U.S. Government to process requests for support. The estimated burden associated with this collection of information is 30 minutes per response. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Privacy, Transparency and Records, Department of the Treasury, 1500 Pennsylvania Ave., N.W., Washington, D.C. 20220. DO NOT send the form to this address. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Packet Pg. 41 HOUSING HOPE Jeff Chandler, Senior Housing Developer, jeffchandler@housinghope Not more than every 30 days, provide: Invoice of eligible expenses • Project status report F Documentation of costs • Certification of the Payment and M Reporting of Prevailing Wages • Reportable expense form a At project closeout: IN • Submit final project report on form to be provided by Commerce PLANNING & DEVELOPMENT DEPARTMENT Review: David Levitan (or assignee), Planning Manager Inspections: Jeff Whatmore, Engineering Reviews the documentation provided by Housing Hope. Verifies work was completed by checking inspections in TRAKiT and/or communication with Engineering/Public Works staff. Complete form A-19. Submit completed A-19 form and documentation provided by Housing Hope to Secure Access ,Washington Site. DEPARTMENT OF COMMERCE Eric Guida, Senior Planner, eric.guida@commerce.wa.gov • Reviews documentation provided for compliance. • Issues approval or denial withi 30 days. • If approved, disbursement of 10 funds is issued to the City within one week. ADMINISTRATIVE SERVICES DEPARTMENT Nori Jacobson (or another assignee per Dave Turley), ,Accounting Specialist • Create an accounting procedure to receive and deposit grant funds from Commerce. Commerce can provide funds in either electronic or check form. • Issue payment to Housing Hope from the funds received from Commerce. 2'2.d s*Ar�oA WASHINGTON STATE a '� DEPARTMENT OF COMMERCE n5 i8aa �� AGENCY NUMBER Short Code Commerce Contract Number VOUCHER DISTRIBUTION 1030 Form 19-1A � C INSTRUCTION TO VENDOR OR CLAIMANT: y DEPARTMENT OF COMMERCE PO BOX 42525 Submit this form to claim payment for materials, merchandise or services. Show O OLYMPIA, WA 98504-2525 Complete detail for each item. _ t VENDOR OR CLAIMANT (Warrant is to be payable to:) Ventlor's Certificate: The individual signing this voucher below warrants they have the authority to do so as authorized and on behalf of the entity identified in the Vendor/Claimant section. The individual signing below certifies under penalty of perjury that the items and totals listed herein are proper charges for materials, merchandise or services furnished to }r the State of Washington, and that all goods furnished and/or services rendered have been provided without discrimination because of age, sex, marital status, race, creed, color, national origin, handicap, religion or Vietnam era or disabled veterans status. c G d L By: Q Contact Person: Phone: (SIGN IN BLUE INK) +' C L (' Email: - Contract Period: REPORT PERIOD: (TITLE) (DATE) a_ PREVIOUSLY DATE DESCRIPTION BUDGET REQUESTED AMOUNT THIS INVOICE AWARD REMAINING BALANCE E 6- 0 O L a N L V L tlf L O .y O V d �O♦ V TOTALS $0.00 $0.00 $0.00 . . L O tL Match: Year/ Dollars I Coding PROGRAM APPROVAL (The individual signing this Youcher warrants they have the authorty to sign this voucher.) +' DATE C ry PRINTED NAME: SIGNATURE: DOG DATE CURRENT DOC. NO. REFERENCE DOC NO. VENDOR NUMBER and SUFFIX L ACCOUNT N0. ASD NUMBER VENDOR MESSAGE �C G SUB TRANS MASTER SUB OBJ SUB GL SUBSID AMOUNT INVOICE r CODE INDEX OBJ ACCT r Q (Cv G V Q r SIGNATURE OF ACCOUNTING PREPARER FOR PAYMENT DATE WARRANTTOTAL FOR PAYMENT GATE I-COUIT11,16APPROVAIL Packet Pg. 43 2.2.e CHIP Program Budget Construction on- Construction off- Construction site site total Engineering Sewer $ 36,809.00 $ - $ 36,809.00 $ 24,550.00 Water $ 274,719.00 $ 87,607.00 $ 362,326.00 $ 24,550.00 Stormwater $ 976,779.00 $ 225,460.00 $ 1,202,239.00 $ 24,550.00 $ 1,288,307.00 $ 313,067.00 73,650.00 Permits Contingency Totals $ 11,820.00 $ 3,680.90 $ 76,859.90 $ 12,970.00 $ 36,232.60 $ 436,078.60 $ 120,223.90 $ 1,347,012.90 $ 24,790.00 $ 160,137.40 $ 1,859,951.40 Packet Pg. 44 2.3 City Council Agenda Item Meeting Date: 05/9/2023 Proposal to Change from an Annual to a Biennial Budget Staff Lead: Dave Turley Department: Administrative Services Preparer: Dave Turley Background/History Edmonds Administration and Council have discussed moving from an annual to a biennial budget, and the response from council members has appeared to be very favorable for making this change. Doing so will require a Biennial Budget Ordinance to be passed by Council. Staff Recommendation After discussing this item with Council several times in committee meetings, at length during a full council meeting as recently as March 7, and again at length by the full council during the budget retreat on April 28, it appears to staff that Council is in favor of moving forward. As such the staff recommendation is to discuss in committee tonight, and then put the Ordinance on the Consent agenda for the May 16 meeting. Narrative: If the city is to move to a biennial budget for the 2025-2026 biennium, it must do so by ordinance, and this ordinance must be passed by June 30, 2024. We are beginning the process of replacing the city's ERP system, and before making a final selection, the Finance Department and the Administration need to know whether the new ERP should be configured for an annual budget or a biennial budget. This means that a decision needs to be made within the next 1-2 months. Passing a biennial budget ordinance was discussed extensively by the entire council during the April 28, 2023 budget retreat, and it appeared that council favors passage of this ordinance. Attachments: 1 Biennial Budget PPT March 7 2 Biennial Budget Process Proposal March 7 3 Biennial Budget Ordinance May 2023 Packet Pg. 45 Moving Forward to a Biennial Budget March 7, 2023 F. D j, Packet Pg. 46 Noteworthy discussion points: • The city will be replacing our Enterprise Resource Planning (ERP) system during the next 2-3 years. We will be selecting the new ERP system within a few months. A decision needs to be made about whether the new ERP should be configured for an annual budget or a biennial budget before the selection is made. • Operating under a Biennial Budget instead of an Annual Budget frees up hundreds of hours in every odd -numbered year — e.g., 2025, 2027, 2029, etc. • A biennial budget schedule allows more time during the first 18 months of the biennium to monitor and evaluate the city's financial performance and condition. The consensus among finance people and council members who are currently on a biennial budget is that it allows more time and opportunity for Council to provide financial review. • A biennial budget schedule would allow time in the odd years to undertake major changes, like implementing "Budgeting by Priorities" for example. s Packet Pg. 47 Noteworthy discussion points (continued): • The term for an appointed councilmember ends when the election is certified —this year it will be November 28. This causes a conflict by seating a new councilmember during budget deliberations and has the potential to happen in any odd year. This occurred on our own Council in both 2021 and 2023. Under a biennial budget the new budget is passed in even years, so this conflict would never happen. • A biennial budget would have no negative impact on planning and budgeting for large capital projects (e.g., Civic Field, Highway 99 Revitalization) as these already involve multiple years, and a biennial budget would actually be more practical when planning for multi -year projects. • For context, many of our neighbors are already on biennial budgets, including Lynnwood, Bothell, Mountlake Terrace, 00 Shoreline, Marysville, Kirkland, Kenmore, Mill Creek, Arlington, Snohomish, and Stanwood, and is considered a "Best Practice" among government professionals. Among large local governments, King County has been on a biennial U budget for a decade. a O t F. D .11 u '1� Packet Pg. 48 Noteworthy discussion points (continued): • Snohomish County on February 22 approved the change to a biennial budget. Council Chair Jared Mead called it a "positive step towards more responsible budgeting and forecasting." Council member Nate Nehring said it will also "reduce the politics involved in the budget process," since it will occur outside of election years. Nehring and fellow Council member Megan Dunn proposed the ordinance together. Both said the change would improve overall efficiency. (from a February 24 article in The Everett Herald by Kayla J. Dunn) • There will be ample time during the April retreat to have an in-depth conversation about a biennial budget. This presentation tonight is intended to be a brief introduction of the topic for council members who may not have been on Council during previous discussions, or for members of the public not familiar with the topic. • See additional information and sample budget preparation schedules in your packet. Ot FDM�� Packet Pg. 49 Questions? Thank you. u "1 Packet Pg. 50 City of Edmonds Budget Process (Proposed) 2.3.b March 2023 Moving Forward to a Biennial Budget Summary: If the City of Edmonds chooses to move to a biennial budget for the 2025-2026 biennium, it must do so by ordinance, and this ordinance must be passed by June 30, 2024. However, we are beginning the process of replacing our current ERP financial system. We need to know at the beginning of the replacement whether to plan for an annual budget or a biennial budget. For this reason we need to make a decision by the end of June of this year. Preparing a biennial budget instead of an annual budget has the potential to free up hundreds of hours, by both the Administration and Council, in every odd numbered year. This is time that will become available to do other value-added activities, including doing a "deep dive" into the CIP/CFP Plan and other comprehensive plans, monitoring financial activity and performance, analyzing the City's financial condition, and working on long range planning. In order to achieve these significant time savings, the City would need to change some current practices. If process changes are not made, the advantages of preparing a biennial budget will be lost. m Significant Advantages Compared to our Existing Process There are several very significant advantages to having a biennial budget instead of an annual budget 1. De -politicizes the budget process: In November of 2021 there was a disagreement over which council members should have the opportunity to vote on and ultimately take part in approving the 2022 budget. This happened because the Council member in Position 2 was appointed rather than elected, and since they did not win re-election, the person who won the election for that seat took office on November 23. Some people felt that the outgoing council member should be able to vote on the budget, while others felt that the incoming council member should be able to vote on the budget. This disagreement caused a significant amount of controversy and discord among the remaining council members, and resulted in the new Council spending a significant amount of time in early 2022 to review and make amendments to the adopted budget. Unfortunately, we are faced with the exact same situation this year. Because all elections occur in odd numbered years, which is the middle of the biennium, if Edmonds adopts a biennial budget this situation will never occur again. We will not have to face the question of whether an outgoing appointed Council member should vote on the upcoming budget, or the incoming newly elected should vote on the upcoming budget. 2. CIP/CFP Analysis: Council members have stated that it has been several years since Council was able to do a thorough analysis of the Capital Improvement Plan/Capital Facilities Plan. A biennial budget schedule would create substantial extra time during the first year of the biennium (July 2025 to December 2025) to perform a thorough analysis and evaluation of the CIP/CFP. It would also allow for more time to work on other big projects, like City Code updates, and other comprehensive City plans. 3. Improved Council Oversight: Having a biennial budget allows significantly more time, mostly in the first 18 months of the biennium (January 2025 to June 2026), to monitor and evaluate Page 1 of 5 Packet Pg. 51 2.3.b City of Edmonds Budget Process (Proposed) March 2023 overall financial performance, analyze financial conditions, and evaluate stakeholder satisfaction. An annual budget does not provide any less opportunity for Council to monitor and analyze the financial transactions or position of the city. 4. Improved accuracy: Done correctly, a biennial budget would actually be more accurate than the annual budgets we now produce. As one example, Departments with large projects will sometimes put their entire project budget into one year, even though it is a multi -year project. In the past this has caused our annual expenditure budget to be overstated by several million dollars. Under a biennial budget, Departments would not have the need to front -load their expenditure budgets in this manner. Also, no "carryforward amendment" would be needed in the even years. m 5. Excellent references: In 2022 1 surveyed 8 Finance Directors in our neighboring cities who -a operate under biennial budgets, and every one of them said that they prefer a biennial budget m over an annual budget. I specifically asked each of them "even given the pandemic which we have been experiencing and current inflation, would you still recommend that we move to a biennial budget for the 2023-2024 biennium?" and every one of them said that we should still op move to a biennial budget, in their opinion. Budget Preparation Schedule State law requires that the first year of a biennial budget be an odd -numbered year. Accordingly, the preparation of the biennial budget occurs during an even numbered year, beginning early in the year and continuing through to the end of the year. The following are key steps that the City would take during the even years to prepare a biennial budget (dates are approximates). 1. The City Council holds a budget retreat early in the year and receives a status report on the current budget and an updated six -year financial forecast, with an emphasis on the coming biennium. In addition, the Mayor receives input from the City Council about their budget priorities and preferred overall direction. 2. On July 1, the Finance Director makes the official "budget call" to all department directors requesting expenditure and revenue estimates be made for the remainder of the current year and for the coming two years. The Finance Department completes all general purpose revenue estimates, (which mostly consist of taxes, state shared revenues and entitlements, and intergovernmental service revenues), by July 15. At the same time, the Finance Department receives and reviews all departmental revenue estimates. All departmental expenditure estimates for the current year and all decision package requests for the coming biennium are received and reviewed by the Finance Department by July 22. The Finance Director and Mayor meet with each Department to review their budget requests. The Finance Department has all Decision Packages reviewed and posted on SharePoint by August 9. 4. In mid to late August, the Finance Director and Mayor meet with each Department Director to review their budget requests. By the end of August the Finance Director updates the Strategic Forecast. In years when funding is limited, departments may also be required to submit expenditure reductions. Page 2 of 5 Packet Pg. 52 2.3.b City of Edmonds Budget Process (Proposed) March 2023 In early September a Salary Ordinance is brought to the City Council, which establishes pay rates for all wage groups for the coming year. By September 10 the Mayor completes their Decision Package review. The Finance Department makes final adjustments to the six -year Strategic Forecast (if needed). 6. In late September the Mayor and Finance Director complete their decision package review and finalize the preliminary budget proposal, which includes approved decision packages and reductions (if any) by the end of September. No later than the first Monday in October, the Mayor delivers the budget message and the Proposed Budget to Council. 7. The Proposed Budget is then filed with the City Clerk, distributed to the City Council and the departments, and made available to the public. a� 8. The City Council meets in October and November for a series of budget study sessions to review m the Mayor's Proposed Budget and to determine what changes they may wish to make. c a� 9. The City Council meets in October and November to hold a public hearing to gather input on op proposed revenue sources, and two more public hearings to gather input on the preliminary budget as well as on changes made by the City Council during their budget deliberations. 10. In November the City Council adopts the final property tax levies for the coming year and the final budget for the coming biennium by ordinance. 11. The Finance Department publishes the final budget document by mid -December. Budget Amendment Processes There are two types of adjustments related to an adopted budget: 1) transfers between line items or between departments within the same fund; and 2) changes to an individual fund's total appropriation. The former is handled administratively when needed with the approval of the Mayor and Finance Director, per RCW 35.33.121. The latter can take place at various times during the biennium and requires Council approval by ordinance. The first opportunity to adjust a fund's total appropriation occurs in February or March of the first year of the biennium. This is when funding for projects and other significant purchases that were not completed during the prior biennium are "carried over" to the new biennium. The second opportunity takes place during the mid -biennial budget review which occurs in December of the first year of the biennium. This adjustment primarily relates to the following: 1. Outside agency and new decision package funding requests for the second year of the biennium. Unanticipated needs or events, or changes to revenue sources. This includes updating General Fund revenues to reflect the new property and sales tax estimates for the second year of the biennium. The final opportunity to adjust a fund's total appropriation occurs at the end of the biennium in December. This is the last time that adjustments for unanticipated needs, events, and revenue sources can be recognized and approved. Also, this is when the General Fund's total appropriation is adjusted, if Page 3 of 5 Packet Pg. 53 2.3.b City of Edmonds Budget Process (Proposed) March 2023 necessary, to provide the budgetary authority to transfer cash to other funds in order to replenish or build-up reserves and to fund one-time decision packages for the coming biennium. In addition to the three adjustment processes described above, other adjustments may still occur during the biennium when an emergency appropriation is necessary. This may occur when unexpected revenues are received or expenses incurred, such as the unanticipated receipt of ARPA funds in 2021 and 2022. Another example would be if the lack of an emergency ordinance will cause expenditures to exceed appropriations in a fund. The process for increasing a fund's total appropriation is as follows: 1. Requests for budget adjustments are submitted to the Finance Director. 2. If approved, requests are consolidated in an ordinance and presented to the City Council. a� 3. If the City Council agrees with the request, Council then approves adjustments to a fund's total m appropriation for the biennium by a simple majority of the members present. Per RCW, if the proposal is to reduce the total appropriation to a fund, the vote must be approved by a majority of the full Council plus one. op 4. Approved adjustments are incorporated into the existing biennial budget resulting in an amended appropriation for the biennium. This is what our new Budget Amendment schedule would look like. Instead of making 10 budget amend- ments in 2 years, we would only be required to make 3 amendments in 2 years (barring unforeseen circumstances, in which case an amendment can still be brought by staff or by council at any time): Current Schedule New Schedule Carryforward Amendment February 14 1st Quarter Amendment April 15 February 14 2nd Quarter Amendment July 15 3rd Quarter Amendment October 15 If needed 4t" Quarter Amendment December 7 Mid -biennium Amendment December 7 Carryforward Amendment February 15 1st Quarter Amendment April 15 2nd Quarter Amendment July 15 If needed 3rd Quarter Amendment October 15 4t" Quarter Amendment December 7 End of biennium Amendment December 7 How much time would we save by changing to a biennial schedule? Obviously, a lot of work goes into preparing the annual budget. As a rough estimate, the total time it takes to each year to prepare an annual budget and budget amendments is over 3,000 hours. However, during the first year of a biennium, most of that time would become available for other things. We would still need around 300 hours during the first year of each biennium to update salary and position information, and to prepare the carryforward amendment in March and the mid -biennial amendment in December. This frees up over 2,500 hours that could be spent on other value-added activities. In every odd -numbered year the Finance Department would have over 1,000 hours of time available to Page 4 of 5 Packet Pg. 54 City of Edmonds Budget Process (Proposed) 2.3.b March 2023 accomplish other work. Anyone throughout the City who participates in budget process, including Councilmembers and staff, would find themselves with significant additional time available to them in every odd -numbered year. Suggested Budget Preparation Schedule This is the City-wide schedule and does not include many items specific to what the Finance Department does "behind the scenes." More meetings could be scheduled with the City Council to discuss feedback from the Public, Council priorities, strategic planning, etc. Date (Examples) Description Team January 31 Distribute Budget Schedule to Staff and Council Finance Director February 15 Council Budget Retreat; approval of schedule City Council July 1 Budget Call for revenue and expenditure estimates Finance Director July 15 General Fund Revenue projections complete Finance Department July 15 Other Fund Revenue projections complete All Departments July 22 All Decision Packages due All August 1 Initial Strategic Forecast placed on SharePoint Finance Department August 9 Narratives and Cap. Project info on SharePoint All Departments August 9 DP's reviewed and posted to SharePoint Finance August 9 Position Budgeting on SharePoint for review Finance August 9 Org charts on SharePoint for review Finance August 23 Position budgeting review complete All Departments August 15-31 Decision Package Reviews with Directors Mayor, Finance Director September 1 DP approvals/rejections finalized Mayor, Finance Director September 7 Updated Strategic Forecast on SharePoint Finance Department September 8 Salary Ordinance brought to Finance Committee Finance Department September 30 Mayor delivers Proposed Budget to Council Mayor October -November Budget Study Sessions City Council, Directors Early -November Property Tax Levy Ordinance City Council Early -November Public Hearings on the Budget City Council Late November Adoption of Budget Ordinance City Council Proposed) New Budeet Amendment Schedule for 2025-2026 Biennium Date Description Week 2 of February 2025 Carryover Amendment Week 1 of November 2025 Property Tax Public Hearing Week 2 of November 2025 Adoption of Property Tax Ordinance for Year 2 Week 1 of December 2025 Mid -Biennium Amendment Week 1 of December 2026 Final Budget Amendment Page 5 of 5 m Packet Pg. 55 2.3.c ORDINANCE NO. XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, REPEALING ORDINANCE 3793 WHICH REESTABLISHED A CALENDAR YEAR BUDGET; AND ESTABLISHING A BIENNIAL BUDGET PROCESS EFFECTIVE JANUARY 1, 2025. WHEREAS, by Chapter 35A.34, RCW, the state legislature has provided that the legislative body of any code city may by ordinance elect to have a two-year fiscal biennial budget in lieu of the annual budget which is otherwise provided for; and WHEREAS, Chapter 35A.34.040, RCW provides that such ordinance must be enacted at least m six -months prior to commencement of the fiscal biennium; and c WHEREAS, the City of Edmonds previously repealed adoption of the biennial budget process m through Ordinance No. 3793 and has produced an annual budget since 2011; and M WHEREAS, the City of Edmonds finds it in the best interest of the city to reestablish a fiscal biennial budget process to be effective January 1, 2025; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Ordinance 3793 Repealed. Ordinance 3793, which reestablished a calendar year budget, is hereby repealed in its entirety. Section 2. Establishment of a Biennium Budget. Pursuant to Chapter 35A.34.040, RCW, the City Council hereby establishes a biennial budget for the City of Edmonds, beginning with the biennium which begins January 1, 2025. The 2025-2026 Biennial Budget and all subsequent budgets shall be prepared, considered and adopted under the provisions of this ordinance and Chapter 35A.34, RCW that is hereby adopted by reference. Section 3. Mid -Biennial Review and Modification. Pursuant to Chapter 35A.34.130, RCW, the City Council hereby provides for a mid -biennial review and modification of the biennial budget. No sooner than eight (8) months after the start of the first year of the fiscal biennium, nor later than conclusion of the first year of the fiscal biennium, the Mayor shall prepare the proposed budget modification and shall provide for publication of notice of hearings consistent with publication of notices for adoption of other city ordinances. Such proposed modifications shall be sent to City Council members and shall be a public record and available to the public. Public hearings on the proposed budget modification shall be heard prior to the adoption of the ordinance modifying the biennial budget. At least seven days before said hearings, the Mayor shall distribute the proposed budget modification to members of the city council, with copies available to the public at City Hall. Packet Pg. 56 2.3.c Section 4. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this ordinance. 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 the remainder of the ordinance, or the validity of its application to other persons or circumstances. Section 6. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 7. Corrections. Upon the approval of the city attorney, the city clerk is authorized to make any necessary technical corrections to this ordinance including, but not limited to, the correction of scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers, and any reference thereto. Section 8. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. APPROVED: MAYOR, MIKE NELSON ATTEST/AUTHENTICATE CITY CLERK, SCOTT PASSEY APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: CITY ATTORNEY, JEFFREY TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. Packet Pg. 57 m 2.3.c SUMMARY OF ORDINANCE NO. of the City of Edmonds, Washington On the _ day of May, 2023, the City Council of the City of Edmonds passed Ordinance No. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, REPEALING ORDINANCE 3793 WHICH REESTABLISHED A CALENDAR YEAR BUDGET; AND ESTABLISHING A BIENNIAL BUDGET PROCESS EFFECTIVE JANUARY 1,. 0 2025. .� m 2 The full text of this Ordinance will be mailed upon request. a� DATED this _ day of May, 2023. 00 CITY CLERK, SCOTT PASSEY Packet Pg. 58 2.4 City Council Agenda Item Meeting Date: 05/9/2023 Meadowdale Neighborhood Annexation Discussion Staff Lead: Councilmember Vivian Olson Department: City Council Preparer: Beckie Peterson Background/History 2022 - Councilmember Vivian Olson, as Council President, , is contacted by residents of an unincorporated area north of the Meadowdale Playfields between the cities of Edmonds and Lynnwood about their desire to become annexed into the City of Edmonds. April 11, 2023 - Councilmember Olson emails staff and elected officials from Snohomish County, the City of Lynnwood, and the City of Edmonds as well as neighborhood representatives informing them of the residents' desire to initiate annexation into the City of Edmonds. April 14, 2023 - A neighborhood resident responds that he would like to start collecting signatures to meet the annexation petition requirements. April 18, 2023 - Snohomish County acknowledges receipt of the April 14 email and informs City of Edmonds and City of Lynnwood staff that annexation into the city of Edmonds would require an interlocal agreement (ILA) with the City of Lynnwood, since the area is in the Lynnwood Municipal Urban Growth Area (MUGA). (Attachment: Edmonds Annexation Inquiry) May 1 - - Lynnwood City Council holds a work session about annexation, during which time they discuss the annexation inquiry from the Meadowdale residents. (Attachment: Lynnwood Staff Report) Note: minutes not yet available but Lynnwood City Council discussed the topic at the 2:06:50 and 2:11:00 marks of this video<https://Iynnwoodwa.v3.swagit.com/videos/225380> Recommendation Review and discuss the Meadowdale residents' request and the annexation process. Ask questions of staff and discuss option and next steps. City staff will need direction from Mayor and the full council before any further steps. Narrative The 60% (Direct) Petition Method that the Meadowdale residents are wanting to utilize - which begins with the 10% petition - is codified in RCW 35.13.125. The 2020 MRSC publication Annexation by Washington Cities and Towns summarizes the various Packet Pg. 59 2.4 annexation methods; the 60% method details are attached. Residents have gathered signatures from 10% of local residents - the designated area is currently in the Lynnwood Municipal Urban Growth Area. City of Edmonds cannot consider the request unless designated area is added to our Municipal Urban Growth Area (MUGA). This would require an Interlocal Agreement (ILA) with Lynnwood. Before City of Edmonds considers signing an ILA, a cursory financial analysis should be conducted considering sewers, sidewalks, and other cost factors required for expected urban levels of service. If an ILA is signed, and the residents formally submit the 10% petition, the City Council would have 60 days to hold a meeting to act on the 10% petition and bring it forward to the 60% petition step. The annexation needs to be approved by the Snohomish County Boundary Review Board by August 1 for the city to be eligible to collect property taxes the following year. Attachments: Edmonds —Annexation —Inquiry Lynnwood May 1 Staff —Report RCW 35.13.125 Pages from Annexation -By -Washington -Cities -And -Towns Packet Pg. 60 2.4.a From: Canola, Eileen To: David Kleitsch; Susan. McLauahlin(c edmondswa.aov Cc: brad. shipley(cbedmondswa.gov; Karl Almgren; Killingstad, David Subject: FW: Upcoming Annexation Petition from neighborhood in unincorporated Snohomish County near 76th Date: Tuesday, April 18, 2023 10:09:06 AM Attachments: imaae001.Dna Neighborhood petition for annexation to City of Edmonds.pdf ILA Edm 95Master.Ddf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello, Snohomish County has received an inquiry regarding a proposed annexation that we would like to bring to your attention (see message below). The proposal is to annex into the City of Edmonds; however, the annexation area is within the Lynnwood MUGA. The Snohomish County Countywide Planning Policies (DP-21, DP-22) and policies in the County's General Policy Plan speak to annexation of land within a City's MUGA. There is also a process in place to modify MUGA boundaries. Further, the attached Edmonds Master Annexation Interlocal Agreement (MAILA) speaks to the issue of overlapping planning boundaries for annexation. Once resolved, County staff would help facilitate the proposed annexation. Thank you, Eileen Eileen Canola, CSBA I Senior Planner Snohomish County Planning & Development Services 3000 Rockefeller Avenue M/S 604 1 Everett, WA 98201 425-262-2253 1 eileen.canola@snoco.org From: Zach Bloomfield <bloomfieldz@gmail.com> Sent: Friday, April 14, 2023 7:11 AM To: Canola, Eileen <Eileen.Canola@co.snohomish.wa.us> Cc: Merissa Benitez Jackson <kidbenitez@gmail.com> Subject: Fwd: Upcoming Annexation Petition from neighborhood in unincorporated Snohomish County near 76th - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ;CAUTION : This email originated from outside of this organization. Please exercise caution with links and; attachments. Hi Eileen, We have an Edmonds City Councilor who is now advocating for our annexation into the city of Edmonds, as captured in the email below. Packet Pg. 61 2.4.a Merissa and I are about to start canvassing the neighborhood (46 households, by my count) for petition signatures. If I understood correctly from our last conversation (some time ago), we only need 10% of the affected households to initiate the petition (so five households). Thereafter, we need 60% to actually sign the official petition to initiate presentation to the boundary review board (since we're in Lynnwood MUGA). I'm attaching what Merissa worked up as a petition template. I wanted to run this by you before we start gathering signatures to make sure it will work for (a) the petition to start the petition, requiring 10% of households and (b) the official petition requiring 60% to ratify intent to be annexed. We want to be sure we're working with templates that will be accepted by the right authorities. I'm also wondering if the (b) version is actually provided by either the city or the county on an official letterhead? Your guidance is very appreciated! Best regards, Zach Bloomfield +1 (208) 721-2565 --- Forwarded message --------- From: Olson, Vivian <Vivian.Olson Pedmondswa.gov> Date: Tue, Apr 11, 2023 at 10:30 PM Subject: Upcoming Annexation Petition from neighborhood in unincorporated Snohomish County near 76th To: Somers, Dave J <Dave.Somers(cDco.snohomish.wa.us>, Dave Somers <Dave.Somers6Dsnoco.org>, Durham, Alessandra<alessandra.durham(@co.snohomish.wa.us>, Peterson, Strom <Strom. PetersonC@co.snohomish.wa.us>, stom.peterson(@snoco.org <stom.peterson(@snoco.org>, Nelson, Michael<Michael.Nelson (@edmondswa.gov>, Tibbott, Neil <Neil.Tibbott(@edmondswa.gov>, Christine Frizzell <frizzell.chris(@gmail.com>, ssessions(@Il innwoodwa.gov <ssessions(ftyn nwoodwa.gov> Cc: bloomfieldz(@gmail.com <bloomfieldz(cDgmail.com>, Merissa Benitez Jackson <kidbenitez(@gmail.com>, Antillon, Oscar<Oscar.AntilIon (@edmondswa.gov>, English, Robert <Robert.English (@edmondswa.gov>, Taraday, Jeff <jeff(@Iighthouselawgroup.com>, Peterson, Beckie <Beckie.Peterson (@edmondswa.gov>, McLaughlin, Susan<susan.mclaughlin(@edmondswa.gov> County Executive Somers, Councilmember Peterson, Mayor Nelson, CP Tibbott, Mayor Frizzell, and CP Sessions, I was contacted by the neighbors bordered by 15719 68th Ave W to the north, 6724 1615t PI SW to the south, 68th Ave W to the west and just east of 66th Ave West in unincorporated Snohomish Packet Pg. 62 2.4.a County* last year when I was the Council President about their desire to become annexed into the City of Edmonds. Much has been learned since that time through discussions with then acting Edmonds Public Works Director Robert English and Kernen Lien in the Edmonds Planning and Development Services Department and through research efforts undertaken by residents from the neighborhood, including conversations with Planning Department personnel in Lynnwood. All information provided is true to the best of my knowledge: 1. An "Intent to Petition" for annexation will be filed with City of Edmonds in the next days 2. This neighborhood a. Has an Edmonds mailing address, 98026 zip code, and has paid Edmonds sales tax rates all of the years they have owned their homes b. Is in the area above sensitive Perrinville Creek where COE should welcome extra control regarding stormwater management c. Is currently in the Urban Growth area of Lynnwood, not Edmonds, thus requiring a boundary review board prior to being considered for annexation to Edmonds d. May have to contract with Edmonds for sewer service anyway based on how the area is situated whether they are unincorporated, Edmonds, or Lynnwood e. Has all or most households on septic so a local improvement district will likely need to be established to address eventual conversion to sewer f. Does not have a business district in it/ is 100% residential 3. Changes to the urban growth area boundaries can only be made during the Comprehensive Plan Update process every ten years I just wanted to bring all stakeholders up to speed with the information I have to help facilitate upcoming conversations on the subject. Please let me know if you have any questions or if I can be helpful to the process in any way. The neighbors leading the petition process are available for the same: Zach Bloomfield at (208) 721- 2565, and Merissa Benitez Jackson at (206)579-7321. Sincerely, Vivian Olson Council President Pro Tern, City of Edmonds (425) 361-8176 *The above boundaries are represented in green area in the map below Packet Pg. 63 2.4.a 1 671i 1411 ISUA 53 15705 � y 9N:iSi'+F2001vF3diS7;2C2� 849 isaag iSg10 15#1E i 1582E 15Q36 {�}�} { A15 � ao 121 Mg5915 WD 69141 6520 18032 69115 Et36 3$454 5Ma E820 i6D]E 16036 n 5M tv # £909 g g 59JSS"' PL SW E•10a M2S �yh } sW T f '[ 3 � 7 0 0 0 � i714 67d6 1660R � 76d�� 4 d717 a70Si¢¢1< � 15415 PL SW 16U26 ' 1w2T # $716 9T42 1614� 114103 .7 B715 603 15111 MIST PL 0 6T't# 6T 12: i $ Nil n h a 6i31 R614 6911 1620 F v -p 162F40 4L 5w 0 sod Mid 639D PL 5W 163 3 �f a 6745 SEA 169 �0 18: 76176 n n aF n w e1A: pa ' 7633� 1rr- 164TH 054411 6+15, 16410 yW24 1G` fdzj i{y 194M iy26 'T 15ti aw 1> qrr-FSJ i 436 w1650: �6S d0 145f ocip e�i6S 11 a3 16 ! .r a Packet Pg. 64 T f '[ 3 � 7 0 0 0 � i714 67d6 1660R � 76d�� 4 d717 a70Si¢¢1< � 15415 PL SW 16U26 ' 1w2T # $716 9T42 1614� 114103 .7 B715 603 15111 MIST PL 0 6T't# 6T 12: i $ Nil n h a 6i31 R614 6911 1620 F v -p 162F40 4L 5w 0 sod Mid 639D PL 5W 163 3 �f a 6745 SEA 169 �0 18: 76176 n n aF n w e1A: pa ' 7633� 1rr- 164TH 054411 6+15, 16410 yW24 1G` fdzj i{y 194M iy26 'T 15ti aw 1> qrr-FSJ i 436 w1650: �6S d0 145f ocip e�i6S 11 a3 16 ! .r a Packet Pg. 64 2.4.b LL Y N N W O O D City Council WASH ING TON Mav1.2023 Introduction: Annexation Staff Report Staff Contact: Karl Almgren, AICP, Community Planning Manager Project Background Annexation by cities or towns is a legislative action whereby a city or town adds territory beyond its existing city limits. While individual property owners may initiate an annexations, whether to annex territory is ultimately at the discretion of the city or town council. There is no "one -size -fits -all" approach to pursuing a single annexation or an overall annexation strategy, however nearly all annexations require significant planning and community outreach. There are several issues to consider when a city is contemplating annexing territory, including zoning/development review, community character, fiscal impacts, impacts on overlapping special purpose districts, and when and how to extend urban services. Until an area is officially annexed, it remains subject to the county's regulations, including its development regulations. The annexation statutes give cities in both GMA and non-GMA planning counties the authority to adopt zoning regulations for areas outside of its city limits in areas it may reasonably expect to annex (for non -code cities, see RCW 35.13.177 and 35.13.178; for code cities, see RCW 35A.14.330 and 35A.14.340). While these regulations won't apply until territory is officially annexed, doing this provides a more seamless transition for when an area is ultimately incorporated. Coordination of Snohomish County Jurisdictions affected by annexations will need to coordinate to ensure orderly transition from county to city governance. The GMA, the Interlocal Cooperation Act, and annexation statutes all contemplate such coordination. An Interlocal Agreement is one way to achieve a smooth and successful transition of governance. These agreements can cover a range of topics including zoning/development review, transition of services, and revenue issues. Annexation Area: Lynnwood's annexation area is part of the Southwest Urban Growth Area which includes areas claimed by adjacent jurisdictions as `Municipal Urban Growth Areas' or MUGAs. Lynnwood's MUGA generally extends north of the city limits to 148th Street SW (Edmonds School District Boundary) and east to Larch Way. Lynnwood and Mill Creek have both claimed the area east of 1-5. Attached is an image of the Lynnwood Annexation areas previously considered. Packet Pg. 65 Annexation Map: ' .f — Lake Stickney Norma Beach ¢`-.-... ay._,:e.-==r _s�/_ 148thStSW_.9_ a r- ----.�-"- i Norma Beacham L nnwo' y od��NortheastLO , � -;Meadow-ale Lynnwood North a, Larch Way N a' N u,, 164th St Sw - y: Lynnwooc LaO' III North Road 0 Z 1. Norma Beach and Lake Stickney are both located in a `Gap Area' where neither Mukilteo nor Lynnwood have claimed the area. 2. Larch Way N and Larch Way S are claimed by City of Lynnwood and City of Mill Creek. 3. North Road is claimed City of Mill Creek and identified in the Lynnwood Comprehensive Plan. a 2 Packet Pg. 66 2.4.b Growth Allocations - Lynnwood's annexation areas are encumbered by current zoning and future growth impacts. If the annexation occurs, the City assumes the allocated growth from Snohomish County. Annexation will very likely not provide more room to grow. Snohomish County is also undergoing significant planning efforts for their Urban Core Subarea Plan (map attached). Any pre -zoning in the urban growth area should account for this effort once it is approved in late 2024. Considerations to Annexation The Lynnwood Comprehensive Plan discusses annexation as an implementation strategy which references the Lynnwood Resolution 96-21 (attached). Below is the implementation strategy: Annexation and Growth Management Policy 1-9. Ensure that annexation and growth management are consistent with the Comprehensive Plan. Strategy I-N. Affected City departments will continue to comment on development proposals within the unincorporated Lynnwood MUGA and encourage their compliance with City standards and guidelines. Strategy 1-0. The City will move forward with annexations of the MUGA. The City will be receptive to working with MUGA residents and property owners interested in annexation into the City. Strategy I-P. The Annexation Evaluation Guidelines, as set forth by Lynnwood Resolution 96-21, shall guide decisions on annexation proposals. The Annexation Evaluation Guidelines call for assessment of factors such as: community identity; delivery of government services; fiscal impacts; economic development opportunities; parks; streets; and utilities Previous Annexation Studies The City hired BERK & Associates to perform a fiscal analysis in 2009. This report the fiscal, governance and strategic implications of potential large-scale annexations. The annexation analysis was conducted by looking at how each potential annexation might fit within the broader context of the City's long-term fiscal situation. The goal of the analysis was to provide decision -makers at the City and key stakeholders including current Lynnwood residents, residents of the annexation area and other affected jurisdictions, with a more complete understanding of the fiscal implications of annexation, both in terms of the costs the City would bear immediately upon annexation, during the transition period, and in the longer term. An update to this analysis will be necessary to review the cost differences in level of service. Packet Pg. 67 2.4.b Methods of Annexation There are eleven different methods of annexations. This staff report will review seven of those that are more likely to be utilized. Election Method, Initiated by 10 Percent Petition The annexation of contiguous, unincorporated territory may be initiated by a petition signed by voters living in the area to be annexed. The petition is signed and provided to the appropriate city official and transmitted within three working days to the County Auditor. Following sufficiency review, the City Council must pass a resolution within 60 days to notify the petitioners of its approval or rejection. The Council may also consider conditions of the annexation including whether property will be assessed and taxed at the same rate and on the same bases as the city, whether properties would be required to assume all or portion of the city's indebtedness, and whether the city will require the adoption of a proposed zoning ordinance. The petition is then filed with the County and Boundary Review Board. The Boundary Review Board makes a review of the annexation. Following the approval by the Boundary Review Board, the matter will then be coordinated as part of an election. Election Method, Initiated by Resolution The City Council must determine that the best interests and general welfare of the city would be served by annexation. Following approval of a resolution, the petition is then filed with the County and Boundary Review Board. The Boundary Review Board makes a review of the annexation. Following the approval by the Boundary Review Board, the matter will then be coordinated as part of an election by the voters. The Sixty Percent Petition Annexation Method The most frequently used method of annexing unincorporated territory is by petition of the owners of at least 60 percent of the property value in the area, computed according to the assessed valuation of the property for general taxation purposes. Prior to circulating a petition for annexation, the initiating party or parties (the owners of property representing not less than 10 percent of the assessed value of the property for which annexation is sought) must give written notice to the city council of their intention to commence annexation proceedings. The city council is to set a date (not later than 60 days after the filing of the notice) for a meeting with the initiating parties to determine: • Whether the city will accept, reject, or geographically modify the proposed annexation; • Whether it will require the simultaneous adoption of a proposed zoning regulation, if such a proposal has been prepared and filed (as provided for in RCW 35A.14.330 and 35A.14.340); and • Whether it will require the assumption of all or any portion of existing city indebtedness by the area to be annexed. 4 Packet Pg. 68 2.4.b If the legislative body requires the adoption of a proposed zoning regulation and/or the assumption of all or any portion of indebtedness as conditions to annexation, it is to record this action in its minutes. Council acceptance of the proposed annexation is a condition precedent to circulation of the petition. The petition is to be filed with the city council then a public hearing is conducted. Since a code city in a county with a boundary review board may not annex territory without prior board approval (unless the board determines, for certain proposals, that review is not necessary, or the board's jurisdiction is not invoked), an annexation ordinance passed following a hearing but before board review cannot yet be effective. Consequently, cities in counties requiring action by a boundary review board, when they have not previously received review board approval, often first pass a motion or resolution of intent to annex. After review board approval, the formal ordinance is adopted. Alternative Petition Annexation Method In response to the state Supreme Court declaring the 60 percent petition method unconstitutional, the 2003 Legislature enacted a new petition method designed to address what the court determined were constitutional defects in the old petition method. Annexation petitions under this new method are to be signed both by property owners and by voters. Subsequently, the state supreme court reversed its earlier decision and determined the 60 percent petition method to be constitutional. So, code cities now have a second, alternative petition method for annexing territory The petition must be signed by qualified voters resident in the area proposed for annexation equal to 10 percent of the votes cast at the last state general election in that area. Annexation For Municipal Purposes A code city may, by majority vote of the council and passage of an ordinance, annex territory outside its limits — contiguous or noncontiguous — for any "municipal purpose," if the territory is owned by the city. Review by the boundary review board or by the county annexation review board for code cities is not necessary if the property being annexed for municipal purpose is contiguous to the city. Interlocal Agreement Method In March 2020, the state legislature passed SIB 5522, amending Chapter 35A.14 RCW to create a new method of annexation for code cities. The new method is available starting June 11, 2020. Under the new method, a code city may annex unincorporated territory pursuant to an interlocal agreement between the city and county, subject to the following requirements: • The city must provide written notice to the governing authorities of the following impacted special purpose districts and adjacent city (if applicable): • Fire protection districts, regional fire protection service authorities, water -sewer districts, and transportation benefit districts within the proposed annexation area; Packet Pg. 69 2.4.b • Any city adjacent to the proposed annexation area where the sole access or majority • Any impacted district or city may disagree with the annexation, in which case, the annexation may not proceed using this new method. The city will then conduct a public hearing. After the public hearing, the city must adopt an ordinance to ratify the annexation. An annexation agreement may include phased annexation of territory. If it does, an ordinance must be adopted at each phase of annexation. Interlocal Agreement Annexation of Area Served by Fire District(s) The city council may initiate an annexation by this method by sending notice to the fire protection district representative and county representative stating the city's interest in entering into an interlocal agreement negotiation process. If the boundaries of the territory proposed for annexation are agreed to by all parties, a notice of intention must be filed with the boundary review board. If the fire district, county, and city reach agreement on the enumerated goals, the jurisdiction of the board may not be invoked. If the city and county, but not the fire district, reach agreement on the goals, the annexation can proceed as discussed below, but the jurisdiction of the boundary review board review can now be invoked. If the fire protection district, city, and county reach agreement on the enumerated goals, or if only the city and the county reach such agreement, the annexation can proceed. The city council approves the annexation by ordinance, but the ordinance is subject to referendum for 45 days after its passage, as follows: • The petition must be signed by qualified electors representing not less than 10 percent of the number of votes cast in the last general state election in the area to be annexed. (An "elector" is not the same as a registered voter, but rather is a person who is qualified to be a voter — 18 years of age or older, a U.S. citizen, and a resident of the jurisdiction for at least 30 days.) • If a timely and sufficient petition is filed, the question of annexation must be submitted to the voters of the area in a general election if one is to be held within 90 days or at a special election under RCW 29A.04.330. • Notice of the election must be given as provided in RCW 35A.14.070. • The annexation is approved unless a majority of those voting on the proposition are in opposition to annexation. If no referendum petition is filed within the 45-day period, the area becomes annexed on the effective date stated in the annexation ordinance. Current Interests Several areas for annexation have been recently discussed. This item is an introduction on annexation and does not make any recommendations. Edmonds Meadowdale Beach Area 6 Packet Pg. 70 2.4.b Approximately 48 residences located east of 68t" Avenue W and north of 161 St Place SW have inquired about petitioning to be annexed into the City of Edmonds. These residences are in the Lynnwood MUGA, not Edmonds MUGA. If these residents file a petition, the City may enter into an interlocal agreement with Edmonds to allow the annexation to Edmonds and transfer the portion of the Lynnwood MUGA. Edmonds School District: Old Alderwood Middle School Staff members of Edmonds School District have expressed consideration for annexing Old Alderwood Middle School. This annexation would place the school into the City of Lynnwood including review of permits. This property is continuous with the City of Lynnwood and would be used for municipal purposes. South Annexation Area Following the outreach of Safe Lynnwood regarding Acadia, annexation was expressed as an opportunity in the South Annexation Area. This area is over 900 acres and represents a large annexation in area, infrastructure, and population. Source: Annexation by Washington Cities and Towns, June 2020. MRSC. https://mrsc.org/getmedia/f7797a3e-d87b-4875-b70a-229a082d7ef3/Annexation- By-Wash ington-Cities-And-Towns. pdf?ext=. pdf Attachments: :g • Staff Presentation L • Urban Core Subarea Map, Snohomish County 0 • Resolution 96-21, Lynnwood City Council • Fiscal Annexation Analysis, January 14, 2009, BERK & Associates o https://mrsc.orq/getmedia/d537a2a5-2eff-4dcc-9alf- U) 60852674ea21 /L95AnnexRpt.pdf • Edmonds Annexation Inquiry 7 Packet Pg. 71 RCW 35.13.125 Direct petition method —Commencement of proceedings —Notice to legislative body —Meeting —Assumption of indebtedness —Comprehensive plan. Proceedings for the annexation of territory pursuant to RCW 35.13.130, 35.13.140, 35.13.150, 35.13.160 and 35.13.170 shall be commenced as provided in this section. Prior to the circulation of a petition for annexation, the initiating party or parties who, except as provided in RCW 28A.335.110, shall be either not less than ten percent of the residents of the area to be annexed or the owners of not less than ten percent in value, according to the assessed valuation for general taxation of the property for which annexation is petitioned, shall notify the legislative body of the city or town in writing of their intention to commence annexation proceedings. The legislative body shall set a date, not later than sixty days after the filing of the request, for a meeting with the initiating parties to determine whether the city or town will accept, reject, or geographically modify the proposed annexation, whether it shall require the simultaneous adoption of the comprehensive plan if such plan has been prepared and filed for the area to be annexed as provided for in RCW 35.13.177 and 35.13.178, and whether it shall require the assumption of all or of any portion of existing city or town indebtedness by the area to be annexed. If the legislative body requires the assumption of all or of any portion of indebtedness and/or the adoption of a comprehensive plan, it shall record this action in its minutes and the petition for annexation shall be so drawn as to clearly indicate this fact. There shall be no appeal from the decision of the legislative body. [1990 c 33 § 565; 1989 c 351 3; 1973 1st ex.s. c 164 § 11; 1971 c 69 § 1; 1965 ex.s. c 88 § 10; 1965 c 7 § 35.13.125. Prior: 1961 c 282 § 18.] Purpose —Statutory references—Severability-1990 c 33: See RCW 28A.900.100 through 28A.900.102. Severability-1971 c 69: "If any provision of this 1971 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [1971 c 69 § 5.] RCW (10/5/2022 10:10 AM) [ 1 ] Packet Pg. 72 THE SIXTY PERCENT PETITION ANNEXATION METHOD The most frequently used method of annexing territory in first and second class cities and in towns is by petition of the owners of at least 60 percent of the property value in the area, computed according to the assessed valuation of the property in the proposed annexation area for general taxation purposes. Initiation of the 60 percent Petition Annexation (RCW 35.13.125) A petition annexation is initiated by written notice to the city council of the intention to commence annexation proceedings. This notice may be signed by either: • Not less than 10 percent of the residents of the area proposed to be annexed; • Owners of not less than 10 percent of the value of the property for which annexation is petitioned, according to the assessed valuation for general taxation purposes; or • The board of directors of a school district (only if school property constitutes all of the property for which annexation is being proposed (RCW 28A.335.110). Meeting on the Annexation Proposal (RCW 35.13.125) After being notified of the proposed annexation, the city council is to set a date (within 60 days after the filing of the notice) for a meeting with the initiating parties to determine: • Whether the city will accept, reject, or geographically modify the proposed annexation; • Whether it will require the simultaneous adoption of a comprehensive plan, if such a plan has been prepared and filed as provided for in RCW 35.13.177 and 35.13.178; and • Whether it will require the assumption of all or any portion of existing city indebtedness by the area to be annexed. If the council requires simultaneous adoption of a comprehensive plan or the assumption of indebtedness, it is to record this action in its meeting minutes. The decision of the council whether to "accept" the proposed annexation is entirely within the council's discretion. By accepting the proposed annexation, the council is not committing itself to ultimately annexing the territory proposed when a sufficient petition is presented to it. The decision to accept merely allows the annexation to go forward procedurally. If the council rejects the proposed annexa-tion, the initiating parties have no right of appeal. Petition Requirements (RCW 35.13.130) If the city council accepts the initial annexation proposal, the initiating parties may draft and circulate a petition for signatures. The petition must: • Be in writing and be addressed to the city council Describe the property according to government legal subdivisions or legal plats • Be accompanied by a plat that outlines the boundaries of the property sought to be annexed • If the city council is requiring the assumption of all or any portion of city or town indebtedness and/or the adoption of a comprehensive plan for the area to be annexed, state those facts, with a quotation from the meeting minutes where the council imposed such requirements Annexation by Washington Cities and Towns I JUNE 2020 Packet Pg. 73 2.4.d • Be signed by the owners of not less than 60 percent in value, according to the assessed valuation for general taxation, of the property for which annexation is petitioned • Comply with the rules for petitions in RCW 35.21.005 • Be filed with the city council Legal Sufficiency of the Petition (RCW 35.21.005) Within three working days of the filing of the petition with the city, the petition must be transmitted to the county assessor for a determination of sufficiency (RCW 35.21.005). The officer whose duty it is to determine petition sufficiency must file with the city officer who received the petition a certificate stating the date on which the determination was begun. This "terminal date" is the cut-off point for adding signatures to or withdrawing them from the petition. Id. Hearing on Petition (RCW 35.13.140) When a legally sufficient petition is filed with a city council, the council may consider it (it is not required to), and: • Fix a date for a public hearing, and • Provide notice of the hearing by: — Publishing notice in one issue of a newspaper of general circulation in the city, and — Posting notice in three public places within the territory proposed for annexation. The notice must specify the time and place of hearing, and it must invite interested persons to appear and voice approval or disapproval of the annexation. The petition signers are responsible for the expenses of notice publication and posting (RCW 35.13.140). As a practical matter (particularly where there are a lot of signers), the initiating parties would presumably pay for this notice. Limitation on Competing Annexation Proposals (RCW 35.13.176) After an annexation petition is filed with the city council, no territory included in the petition may be annexed by another city or be incorporated into a new city unless the city council or the electorate or a boundary review board, as the case may be, rejects the annexation or the boundary review board modifies the annexation proposal to remove the territory. Effect of Competing City Incorporation Proposal (RCW 35.02.155) • Annexation Petition Filed Within 90 Days of Filing of Incorporation Petition with County. In this circumstance, when a city incorporation petition and an annexation petition include any of the same territory, the city may still proceed to annex the territory involved, which would then be removed from the incorporation proposal. • Annexation Petition Filed More than 90 Days after Filing of Incorporation Petition with County. In this circumstance, again where the two proposals contain some of the same territory, the annexation effort may not proceed and may not be approved unless the boundary review board modifies the proposed incorporation to remove the territory that is proposed for annexation, the boundary review board rejects the incorporation and the proposal is for a city of less than 7500 population, or the voters reject the proposed incorporation. In counties where there is no boundary review board, the incorporation proposal, if legally sufficient, will go to the voters, who must reject it before the annexation can proceed. Annexation by Washington Cities and Towns I JUNE 2020 Packet Pg. 74 1 Decision (RCW 35.13.150) • Cities in Counties without Boundary Review Boards. Following the hearing (though not necessarily immediately), the city council decides whether to approve the annexation. If it decides to approve, it must enact an ordinance to annex the territory (RCW 35.13.150). It may annex all or any portion of the area proposed for annexation, but may not include any property not described in the annexation petition. Id. • Cities in Counties Having Boundary Review Boards. Because a city in a county with a boundary review board may not annex territory without prior review board approval (unless the board determines, for certain proposals, that review is not necessary, or the board's jurisdiction is not invoked), an annexation ordinance passed following a hearing but before board review cannot yet be effective. Consequently, cities in counties requiring action by a boundary review board, when they have not previously received review board approval, often first pass a motion or resolution of intent to annex. If the review board approves the annexation, the formal ordinance is adopted. Review • Boundary Review Board (RCW 36.93.100). If a boundary review board has been established within the county, the annexation initiators must file a notice of intention with the board within 180 days of when the annexation is proposed. The board may assume jurisdiction over the annexation if, within 45 days of filing the notice of intention, a request for review is made by: — The city to which the annexation is proposed, the county within which the annexation is proposed, or any other affected governmental unit; or — Petition of registered voters or property owners. Ifjurisdiction is not invoked within 45 days, the proposed annexation is deemed approved. The board must act within 120 days of the review request, unless the board and the annexation initiators agree to an extension. If no decision is made within 120 days and no extension is granted, the proposal is deemed approved. • Ad Hoc Annexation Review Board. Whether review of a petition method annexation is required by an ad hoc annexation review board in counties which do not have a boundary review board is problematical. The state supreme court held in State ex rel Thigpen v Kent, 64 Wn.2d 823 (1964), that approval by an ad hoc annexation review board is not a condition precedent to a city council's approval of a 60 percent petition annexation. In light of this case, the legislature in 1973 attempted to remove altogether the requirement of convening the ad hoc annexation review board for the 60 percent petition annexation. Unfortunately, due to legislative oversight, reference to the 60 percent petition annexation was not removed from RCW 35.13.171, relating to the ad hoc annexation review board. It was, however, removed from the companion statutes, namely, RCW 35.13.172 (as amended by Ch. 164, Sec. 15, Laws of 1973, 1st Ex. Sess., but not as amended by Ch.195, Sec. 14, Laws of 1973, 1st Ex. Sess.) and RCW 35.13.173. (RCW 35.13.171 was amended in 1985 (Sec. 2, Ch. 6, Laws of 1985); the amendment, however, was only technical in nature, changing the name of a renamed state agency). Some city attorneys advise convening this board to preclude the possibility of legal challenge on this basis; others advise against convening it, taking the position that a city could successfully withstand a challenge to an annexation based on the failure to convene this board. In any event, under Thigpen, cited above, any decision of the ad hoc annexation review board would be only advisory to the city legislative body. Annexation by Washington Cities and Towns I JUNE 2020 Packet Pg. 75 2.4.d Effective Date of Annexation (RCW 35.13.160) The annexation, together with any provisions for the assumption of indebtedness or adoption of a comprehensive plan, takes effect on the date set in the annexation ordinance. The relevant statute, RCW 35.13.160, does not specify any date by which the annexation must be made effective. Notice of Annexation See Notice of Annexation in Election Method, Initiated by 20 Percent Petition. Annexation by Washington Cities and Towns I JUNE 2020 Packet Pg. 76 2.5 City Council Agenda Item Meeting Date: 05/9/2023 Public Drug Use Issue Staff Lead: Councilmember Vivian Olson Department: City Council Preparer: Beckie Peterson Background/History N/A Recommendation N/A Narrative Several local ordinances* are included in this packet to provide a foundation for councilmembers on the subject of "what other municipalities are doing in response to public drug use." A statewide response to this will pre-empt local laws on this subject. While the legislature did not come to agreement in the regular session, on Tuesday, May 2nd, Governor Inslee called a special session (to begin on May 16th) specifically to address this issue. If statewide action is not ultimately taken in the special session, this "look around" is provided as a basis for consideration of next steps by City of Edmonds. The Chair of the PSPHSP committee is seeking inputs from the public, other councilmembers, and City staff involved in law enforcement and human services. Contact Info: Vivian Olson Chair, Public Safety, Planning, Human Services, and Personnel Committee vivian.olson@edmondswa.gov (425) 361-8176 If there is demand for that conversation in this meeting, it can be added to the agenda for discussion during the approval of the agenda. *or proposed ordinances in the final stages of consideration and likely to pass Attachments: Lynnwood Ordinance City of Marysville possession_ ordinance_4-25-23 Everett proposed ordinance Inslee announces special session date to take up drug possession law _ Governor Jay Inslee Packet Pg. 77 2.5 MRSC - Drug Use and Possession Ordinances Packet Pg. 78 2.5.a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 L LYNNWOOD W A 5 H G N G T O N ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNNWOOD, WASHINGTON, DO ORDAINS AS FOLLOWS: CREATING A NEW CHAPTER TO THE LYNNWOOD MUNICIPAL CODE ENTITLED "USE OF DRUGS IN PUBLIC"; PROVIDING FOR SEVERABILITY; ESTABLISHING AN EFFECTIVE DATE; AND PROVIDING FOR SUMMARY PUBLICATION WHEREAS, people have been openly using and possessing illegal drugs in public places in the City of Lynnwood ("City"); and WHEREAS, law enforcement does not have the legal authority to effectively address this problem, all to the detriment of community members who face an increased risk of harm attributable to the adverse impacts associated with the use of illegal drugs in public; and WHEREAS, while the use of cannabis and alcohol, both legal substances, is prohibited in public, there is no comparable state law prohibiting the use of illegal or controlled substances — like methamphetamine, heroin, and fentanyl — in public; and WHEREAS, although state law preempts the field of setting penalties for violations of the state's Uniform Controlled Substances Act, Chapter 69.50 RCW, cities are authorized to enact local laws that are not inconsistent with state law. Because the Uniform Controlled Substances Act does not expressly permit or otherwise protect the public use of controlled substances, the City is authorized to regulate or prohibit that use; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNNWOOD, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Purpose. The purpose of this ordinance is to: (1) prohibit the use of controlled substances in a public place or in view of the general public; (2) prohibit the deposit of controlled substances on the ground or in any body of water; and (3) provide post -arrest alternatives for police officers to consider. Section 2. New Chapter Adopted. A new Lynnwood Municipal Code Chapter 10.42 entitled "Use of Drugs in Public" is hereby adopted to read as set forth in Exhibit A attached hereto and by this reference fully incorporated herein. Section 3. Severability. If any section, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, Packet Pg. 79 2.5.a 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, phrase, or word of this ordinance. Section 4. Effective Date. This ordinance, or an approved summary thereof consisting of its title, shall be published in the City's official newspaper of record and shall take effect, and be in full force, five (5) days following its publication. PASSED this day of , 2023, and signed in authentication of its passage this day of 12023. ATTEST/AUTHENTICATED: Luke Lonie, City Clerk z Christine Frizzell, Mayor APPROVED AS TO FORM: Lisa M. Marshall, City Attorney Xxxx (Ord #) Packet Pg. 80 2.5.b CITY OF MARYSVILLE Marysville, Washington ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON, AMENDING CHAPTER 6.27 OF THE MUNICIPAL CODE, BY CRIMINALIZING THE POSSESSION OF A CONTROLLED SUBSTANCE WITHOUT A PRESCRIPTION, REMOVING THE OFFER OF REFERRAL REQUIREMENT, AND UPDATING THE CRIMINAL PENALTY FOR USE OF 0 A CONTROLLED SUBSTANCE IN A PUBLIC PLACE. n as WHEREAS, the use of controlled substances without a prescription and the supervision of a medical professional can result in physical injury or death; and L 0 WHEREAS, the use of controlled substances without a prescription and the supervision of a medical professional often exacerbates mental health conditions; and a' WHEREAS, using controlled substances can alter a person's brain or brain chemistry with negative health consequences; and WHEREAS, persons using controlled substances can become addicted to such substances resulting in negative physical and mental health consequences and damage to family and personal relationships; and WHEREAS, the use of controlled substances without a prescription or medical supervision is more likely to result in addiction; and WHEREAS, the use of controlled substances without a prescription is positively correlated with criminal behavior; and WHEREAS, the City has taken steps to address these problems through teaming police officers with social workers and mental health professionals and the municipal court's Mental Health Alternatives Program; and WHEREAS, on February 25, 2021, the Washington State Supreme Court held in the case of State v. Blake, (197 Wn.2d 170, 481 P.3d 521 (2021)), that RCW 69.50.4013(1) — the statute that criminalized the possession of a controlled substance without a prescription — exceeded the state's police power and violated the due process clauses of the state and federal constitutions because it lacked a knowledge element; and WHEREAS, the Supreme Court's ruling had the effect of eliminating any criminal penalties for the possession of a controlled substance without a prescription; and WHEREAS, in response to the Blake decision and in recognition of the negative health and safety consequences associated with the use of controlled substances, the City Council Packet Pg. 81 2.5.b approved Ordinance No. 3179 on March 8, 2021, which amended the Marysville Municipal Code (MMC) by adopting a new Section 6.27.030, which established criminal penalties for possession of controlled substances; and WHEREAS, the Governor signed ESB 5476 on May 13, 2021, which implemented a new RCW 69.50.4013, which in turn established a new criminal law violation and associated penalties for possession of a controlled substance (and which included a knowledge element, thereby addressing the issues raised by the Blake decision); and WHEREAS, ESB 5476 additionally resulted in the adoption of RCW 10.31.115, which implemented requirements for law enforcement to issue at least two referrals to drug assessment n and services in lieu of arrest and prosecution for violations of RCW 69.50.4013 (as well as for N other related violations of Chapter 69.50 RCW); and D L WHEREAS, because RCW 69.50.608 preempts the setting of penalties for violations of Chapter 69.50 RCW, the City Council adopted Ordinance 3183 on May 25, 2021, which removed Section 6.27.030 from the Municipal Code; and a' WHEREAS, the new RCW 69.50.4013 as established by ESB 5476 is set to expire on July 1, 2023, and the State Legislature has not passed any replacement to date; and WHEREAS, RCW 10.31.115 will be rendered inoperative if RCW 69.50.4013 and associated statutes expire; and WHEREAS, the lack of criminal penalties for the possession of controlled substances without a prescription would result in an increase in the negative health and safety consequences associated with the use of controlled substances without a prescription; and WHEREAS, the lack of enforcement authority of the police would interfere with the City's initiatives to address addiction and criminal activity associated with the use of controlled substances without a prescription by eliminating incentives for individuals to enter treatment or obtain necessary social services; and WHEREAS, the lack of criminal penalties and police authority in regard to the possession of controlled substances without a prescription would have an immediate, direct, and negative impact on the health, safety, and welfare of the City's inhabitants; and WHEREAS, the courts in decisions such as City of Tacoma v. Luvene, 118 Wn.2d 826, 827 P.2d 1374 (1992), and State v. Fisher, 132 Wn. App. 26, 130 P.3d 382 (2006), have recognized the concurrent jurisdiction of local governments to criminalize drug -related activity; and WHEREAS, to prevent the negative impacts that would occur if RCW 69.50.4013 expires on July 1, 2023 without a replacement, and to assist City initiatives to address addiction and criminal activity associated with drug use, the City Council desires to establish a criminal penalty for possession of a controlled substance without a prescription, to eliminate current Packet Pg. 82 2.5.b referral requirements, and to update the criminal penalty for use of a controlled substance in a public place, effective on July 1, 2023. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 6.27 of the municipal code is amended as set forth in Exhibit A. SECTION 2. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance should be held to be invalid or unconstitutional by a court of competent 3 jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or n constitutionality of any other section, subsection, sentence, clause, phrase or word of this N ordinance. L SECTION 3. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this ordinance, including scrivener's errors or clerical mistakes; references to other local, state, or federal laws, rules, or regulations; or a' numbering or referencing of ordinances or their sections and subsections. M SECTION 4. Effective Date. This ordinance shall take effect on July 1, 2023. PASSED by the City Council and APPROVED by the Mayor this day of , 2023. Attest: Approved as to form: IC CITY OF MARYSVILLE DEPUTY CITY CLERK JON WALKER, CITY ATTORNEY JON NEHRING, MAYOR Packet Pg. 83 2.5.b EXHIBIT A Chapter 6.27 CONTROLLED SUBSTANCES AND DRUG PARAPHERNALIA Sections: a� 6.27.010 Statutes incorporated by reference. y 6.27.020 Possession of drug paraphernalia. 6.27.021 Possession of 40 grams or less of marijuana - Penalty. 6.27.022 Use of a controlled substance in a public place. 6.27.030 Possession of controlled substances. L 0 2 6.27.010 Statutes incorporated by reference. The following statutes regarding controlled substances and drug paraphernalia are incorporated by reference: RCW 9.47A.010 Definition. 9.47A.020 Unlawful inhalation - Exception. 9.47A.030 Possession of certain substances prohibited, when. 9.47A.040 Sale of certain substances prohibited, when. 9.47A.050 Penalty. 69.41.010 Definitions of legend drugs. 69.41.030 Possession of a legend drug unlawful. 69.41.060 Search and seizure. 69.50.101 Definitions. 69.50.102 Definitions. 69.50.201 Authority to control. 69.50.202 Nomenclature. 69.50.204 Schedule I. 69.50.206 Schedule II. 69.50.208 Schedule III. 69.50.210 Schedule IV. 69.50.212 Schedule V. 69.50.4011 Counterfeit substances - Penalties. 69.50.445 Opening package or consuming marijuana in view of general public or public place. 69.50.505 Seizure and forfeiture. 1 6.27.020 Possession of drug paraphernalia. Packet Pg. 84 2.5.b (1) It is unlawful for any person to use, or possess with intent to use, drug paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or otherwise introduce into the human body a controlled substance, other than marijuana. Any person who violates this subsection is guilty of a misdemeanor. (2) It is unlawful for any person to deliver, possess with intent to deliver, or manufacture with intent to deliver drug paraphernalia, knowing, or under circumstances where one reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, y analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body a controlled substance other than marijuana. Any person who violates this subsection is guilty of a misdemeanor. L (3) Any person 18 years of age or over who violates subsection (2) of this section by delivering drug paraphernalia to a person under 18 years of age who is at least three 3 years his or her junior is guilty of a gross misdemeanor. a (4) It is unlawful for any person to place in any newspaper, magazine, handbill, or other publication any advertisement, knowing, or under circumstances where one reasonably should know, that the purpose of the advertisement, in whole or in part, is to promote the sale of objects designed or intended for use as drug paraphernalia. Any person who violates this subsection is guilty of a misdemeanor. (5) It is lawful for any person over the age of 18 to possess sterile hypodermic syringes and needles for the purpose of reducing blood -borne diseases. 6.27.021 Possession of 40 grams or less of marijuana - Penalty. Except as provided in RCW 69.50.401(3) or as otherwise authorized by Chapter 69.50 RCW, any person knowingly possessing 40 grams or less of marijuana is guilty of a misdemeanor. 6.27.022 Use of a controlled substance in a public place. (1) It is unlawful for any person to knowingly use a controlled substance in a public place unless the controlled substance has been lawfully prescribed to the person using it. Packet Pg. 85 2.5.b (2) "Use" means any effort taken in furtherance of an attempt to inject, ingest, inhale or otherwise introduce a controlled substance into the human body. (3) 'Public place" means an area generally visible to public view, and includes streets, sidewalks, bridges, alleys, plazas, parks, driveways, parking lots, automobiles (whether moving or not), and buildings open to the public, and doorways, windows, drive -up windows, and entrances to buildings or dwellings that are visible to public view. (4) Use of a controlled substance in a public place is a gross misdemeanor punishable by up to 364 days in jail and a $5,000 fine. 1 6.27.030 Possession of controlled substances. (1) It is unlawful for any person to knowingly possess a controlled substance or to possess a controlled substance with intent to use it, unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of his or her professional practice, or except as otherwise authorized by Chapter 69.50 RCW. (2) Any person who violates this section is guilty of a gross misdemeanor punishable by up to 364 days in jail and a $5,000 fine. (3)(a) The possession, by a person 21 years of age or older, of usable marijuana, marijuana concentrates, or marijuana -infused products in amounts that do not exceed those set forth in RCW 69.50.360(3) is not a violation of this section or this chapter. (b) The possession of marijuana, usable marijuana, marijuana concentrates, and marijuana - infused products being physically transported or delivered within the state, in amounts not exceeding those that may be established under RCW 69.50.385(3), by a licensed employee of a common carrier when performing the duties authorized in accordance with RCW 69.50.382 and 69.50.385, is not a violation of this section or this chapter. (c) The possession by a qualifying patient or designated provider of marijuana concentrates, usable marijuana, marijuana -infused products, or plants in accordance with Chapter 69.51A RCW is not a violation of this section or this chapter. (d) It is unlawful for a person under 21 years of age to knowingly possess or possess with intent to use marijuana, marijuana -infused products, or marijuana concentrates, regardless of THC concentration. This does not include qualifying patients with a valid authorization. Violation of this subsection is a misdemeanor punishable by up to 90 days in jail and a $1,000 fine. Packet Pg. 86 2.5.b d Q Packet Pg. 87 2.5.c `EVERETT Project title: Adopt an ordinance prohibiting public consumption of controlled substances, amending Chapter 10.35 EMC. City Council Agenda item Cover Sheet .......... ..................................................................................... ..................................................... .... ... _ ................. Council Bill # Ordinance prohibiting public consumption of controlled substances CB 2304 — 29 Project: Agenda dates requested: 4119, 4126, 513 Briefing Proposed action 4/19 and 4/26 Consent Action 5/3 Ordinance x Public hearing Yes x No Budget amendment: Yes x No PowerPoint presentation: Yes x No Attachments: Ordinance Department(s) involved: Legal Contact person: Lacey Off utt Phone number: (425) 257-8528 Partner/Supplier: N/A ......................... _..... . Location: Everett, WA Preceding action: N/A Fund: N/A .Fiscal summary statement: - N/A Project summary statement: This ordinance will amend Chapter 10.35 of the Everett Municipal Code. Councilmembers received a briefing at the April 12, 2023 city council meeting. The proposed new code (EMC 10.35.120) will create a new misdemeanor offense to knowingly use a controlled substance a public place within the City of Everett. The proposed ordinance defines "controlled substances" as "a drug, substance, or immediate precursor included in Schedules I, II, Ill, and IV as set forth in federal or state laws, or federal or commission rules, but does not include cannabis, cannabis concentrates, cannabis products, or cannabis -infused products as those terms are defined in RCW 69.50.101." This definition includes controlled substances such as heroin, methamphetamine, fentanyl, and Xanax, but excludes controlled substances federally scheduled as schedule V controlled substances, which are rarely, if ever, abused or used in public, such as antidiarrheals. The definition of Controlled Substances also excludes cannabis and cannabis products from its definitions for the purpose of proposed new EMC 10.35.120. The proposed ordinance amends existing EMC 10.35.100, relating to Drug -Free Zones, to Email: permit enhanced fines and imprisonment of up to two times that otherwise permitted loffutt@everettwa.gov when the offender commits specified crimes within designated drug -free zones. Specified crimes include existing crimes such as possession of a controlled substance, as well as the new crime of knowingly using controlled substances in a public place. Enhanced imprisonment under this EMC elevates the maximum imprisonment to 180 days in custody and the fine to a maximum of $2000. Initialed by: Recommendation (exact action requested of Council): ............................................................................. Department head Adopt an ordinance prohibiting public consumption of controlled substances, amending Chapter ..................................................................... Administration 10.35 EMC. ............................................................. Council President Q Packet Pg. 88 2.5.c �i EVERETT WASHINGTON ORDINANCE NO. An ORDINANCE Prohibiting Public Consumption of Controlled Substances, AMENDING Chapter 1.0.35 EMC. WHEREAS, A. In February 2021, the Washington State Supreme Court held in State v. Blake, 197 Wn.2d 170, that former RCW 69,50,4013, criminalizing the possession of certain controlled substances, unconstitutionally created a strict liability felony offense. B. In response, the Washington State Legislature in May, 2021 passed Engrossed Senate Bill 5476, amending the State's Uniform Controlled Act to include a mens rea and requiring that persons subject to arrest for possession of a controlled substance be referred to assessment and services in lieu of arrest at least twice before he or she may face misdemeanor criminal charges for the possession of a controlled substance. C. The State law change has resulted in increased public use of controlled substances without a prescription in the City of Everett. D. The use of controlled substances without prescription and the supervision of a medical professional can result in physical injury or death to the user. E. The use of controlled substances can have negative mental and physical health consequences for the user. F. The use of controlled substances without a prescription is positively correlated with criminal behavior. G. The City has taken steps to connect individuals who publicly use controlled substances within the City of Everett with resources such as substance use disorder treatment through various City programs, including pairing social workers and mental health professionals with peace officers, referring individuals to services, and connecting individuals with the Law Enforcement Assisted Diversion program. H. The public use of controlled substances adversely impacts public order and endangers the health, safety, and welfare of the residents and visitors of the City of Everett. I. The City of Everett has the power to provide for the punishment of all practices dangerous to public health or safety, and to make necessary for the preservation of public health, peace, and Packet Pg. 89 2.5.c good order, and to provide for the punishment of all persons charged with violating any city ordinance. NOW, THEREFORE, THE CITY OF EVERETT DOES ORDAIN: Section 1. EMC is amended to add the following section as EMC 10.35.XXX: A. Except where punishable under Chapter 10.37 EMC, it is unlawful for any person to knowingly use any controlled substance in a public place, unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of his or her professional practice, or as otherwise authorized under Federal or State law. B. "Use" means to inject, ingest, inhale, or otherwise introduce a controlled substance into the human body. C. "Controlled substance" means a drug, substance, or immediate precursor included in Schedules I, II, III, and IV as set forth in federal or state laws, or federal or commission rules, but does not include cannabis, cannabis concentrates, cannabis products, or cannabis -infused products as those terms are defined in RCW 69.50.101. D. "Public place" means an area generally visible to public view, and includes any place to which the public has a right of access, including streets, sidewalks, bridges, alleys, plazas, parks, driveways, parking lots, automobiles (whether moving or not), transit vehicles, transit stations, and buildings open to the public, as well as doorways, windows, drive -up windows, and entrances to buildings or dwellings that are visible to public view. "Practitioner" shall have the same meaning as in RCW 69.50.101 as currently enacted or later amended. F. Any person who violates this section is guilty of a misdemeanor. Section 2. EMC 10.35.100 is amended as follows, with strikeouts deleted and underlining added: Drug -Free zones - Violations A. Any person who violates Section 1 of this ordinance, EMC 10.35,011, EMC 10,35.12, EMC 10.35.020, EMC 10.35.030, EMC 10.35,040, EMC 10.35.055, EMC 10.35.055, EMC 10.35.060, EMC 10.36.020, or EMC Chapter 10.37and the violation occurs in a school, on a school bus, within one thousand feet of a school bus route stop designated by the school district, within one thousand feet of the perimeter of the school grounds, in a public park, in a public housing project designated as a drug -free zone, on a public transit vehicle or in a public transit stop 2023 ORDINANCE Page 2 of 5 Packet Pg. 90 2.5.c shelter may be punished by a fine of up to twice the fine otherwise authorized by this chapter, or by imprisonment of up to twice the imprisonment otherwise authorized by this chapter, or by both such fine and imprisonment. The provisions of this section shall not operate to more than double the fine or imprisonment otherwise authorized by this chapter for an offense. It is not a defense to a prosecution for a violation of this section that the person was unaware that the prohibited conduct took place while in a school or school bus or within one thousand feet of the school or school bus route stop, in a public park, in a public housing project designated as a drug -free zone, on a public transit vehicle, or in a public transit stop shelter. C. It is not a defense to a prosecution for a violation of this section or any other prosecution under this chapter that persons under the age of eighteen were not present in the school, the school bus, the public park, the public housing project designated as a drug -free zone, or the public transit vehicle, or at the school bus route stop or the public transit vehicle stop shelter at the time of the offense or that school was not in session. D. It is an affirmative defense to a prosecution for a violation of this section that the prohibited conduct took place entirely within a private residence, that no person under eighteen years of age or younger was present in such private residence at any time during the commission of the offense, and that the prohibited conduct did not involve delivering, manufacturing, selling or possessing with the intent to manufacture, sell or deliver any controlled substance for profit. The affirmative defense established in this section shall be proved by the defendant by a preponderance of the evidence. This section shall not be construed to establish an affirmative defense with respect to a prosecution for an offense defined in any other section of this chapter. In a prosecution under this section, a map produced or reproduced by any municipal, school district, transit authority engineer, or public housing authority for the purpose of depicting the location and boundaries of the area on or within one thousand feet of any property used for a school, school bus route stop, public park, public housing project designated as a drug -free zone, or public transit vehicle stop shelter, or a true copy of such a map, shall under proper authentication, be admissible and shall constitute prima facie evidence of the location and boundaries of those areas if the governing body of the municipality, school district or transit authority has adopted a resolution or ordinance approving the map as the official location and record of the location and boundaries of the area on or within one thousand feet of the school, school bus route stop, public park, public housing project designated as a drug -free zone, or public transit vehicle stop shelter. Any map approved under this section or a true copy of the map shall be filed with the clerk of the city, and shall be maintained as an official record of the city. This section shall not be construed as precluding the prosecution from introducing or relying upon any other evidence or testimony to establish any element of the offense. This section shall not be construed as precluding the use or admissibility of any map or diagram other than the one which has been approved by the governing body of a municipality, school district, transit authority or public housing authority if the map or diagram is otherwise admissible under court rule. F. As used in this section, the following terms have the meanings indicated unless the context clearly requires otherwise: 2023 ORDINANCE Page 3 of 5 Packet Pg. 91 2.5.c "School" has the meaning under RCW 28A.150.01 or 28A.150,02 . The term "school" also includes a private school approved under RCW 28A.195.01 ; 2. "School bus" means a school bus as defined by the superintendent of public instruction by rule which is owned and operated by any school district and all school buses which are privately owned and operated under contract or otherwise with any school district in the state for the transportation of students. The term does not include buses operated by common carriers in the urban transportation of students such as transportation of students through a municipal transportation system; 3. "School bus route stop" means a school bus stop as designated by a school district; 4. "Public park" means land, including any facilities or improvements on the land, that is operated as a park by the state or a local government; 5. "Public transit vehicle" means any motor vehicle, street car, train, trolley vehicle or any m other device, vessel or vehicle which is owned or operated by a transit authority and which is used for the purpose of carrying passengers on a regular schedule; 0 6. "Transit authority" means a city, county or state transportation system, transportation authority, public transportation benefit area, public transit authority or metropolitan ' o_ municipal corporation within the state that operates public transit vehicles; 7. "Stop shelter" means a passenger shelter designated by a transit authority; 8. "Public housing project" means the same as "housing project" as defined in RCW 35.82.02 d. Section 3. The following is provided for reference and may not be complete: EMC Amended/Repealed by this Ordinance Ordinance History of EMC Amended/Repealed by this Ordinance 10.35.100 (Ord. 2238-97 § 1, 1997; Ord. 1775-91 § 1, 1991.) Section 4. The City Council hereby declares in the event that the Washington State Legislature passes a law preempting this ordinance, this ordinance shall cease to have effect on the same date the statute comes into effect. Any violation of this ordinance that occurs prior to the preempting statute coming into effect may be prosecuted and punished pursuance to this ordinance. Section 5. 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's/clerical errors, 2023 ORDINANCE Page 4 of 5 Packet Pg. 92 2.5.c references, ordinance numbering, section/subsection numbers, and any internal references. Section 6. The City Council hereby declares that should any section, paragraph, sentence, clause or phrase of this ordinance be declared invalid for any reason, it is the intent of the City Council that it would have passed all portions of this ordinance independent of the elimination of any such portion as may be declared invalid. Section 7. The enactment of this Ordinance shall not affect any case, proceeding, appeal or other matter currently pending in any court or in any way modify any right or liability, civil or criminal, which may be in existence on the effective date of this Ordinance. Section 8. It is expressly the purpose of this Ordinance to provide for and promote the health, safety and welfare of the general public and not to create or otherwise establish or designate any particular class or group of persons who will or should be especially protected or benefited by the terms of this Ordinance. It is the specific intent of this Ordinance that no provision or any term used in this Ordinance is intended to impose any duty whatsoever upon the City or any of its officers or employees. Nothing contained in this Ordinance is intended nor shall be construed to create or form the basis of any liability on the part of the City, or its officers, employees or agents, for any injury or damage resulting from any action or inaction on the part of the City related in any manner to the enforcement of this Ordinance by its officers, employees or agents. Cassie Franklin, Mayor ATTEST: City Clerk PASSED: VALID: PUBLISHED: EFFECTIVE DATE: 2023 ORDINANCE Page 5 of 5 Packet Pg. 93 5/3/23, 5:47 PM Inslee announces special session date to take up drug possession law I Governor Jay Inslee Washington Governor - Jay Inslee 2.5.d Inslee announces special session date to take up drug possession law May 2, 2023 Sto ry Gov. Jay Inslee announced he will call a special session to begin May 16. The session will focus on passing a new drug possession law. Inslee set the date after conversations with Democratic and Republican legislative leaders. "My office and I have been meeting with legislators from all four caucuses and I am very optimistic about reaching an agreement that can pass both chambers," Inslee said. "Cities and counties are eager to see a statewide policy that balances accountability and treatment, and I believe we can produce a bipartisan bill that does just that. Details are still being negotiated, but caucus leaders share the desire to pass a bill. I believe that starting the clock on May 16 will put us on a path to getting the job done this month." The so-called "Blake fix" was the only remaining must -do item legislators didn't finish during the regular legislative session that ended April 23. In 2021, the Washington Supreme Court overturned the state's felony drug possession law. Legislators adopted a temporary misdemeanor policy that expires July 1. In the absence of a statewide policy, several cities and counties have announced their intent to pass their own ordinances which would create a confusing patchwork of policies, treatment options and penalties. The Legislature has earmarked more than $600 million in new state funding for myriad behavioral health services, including additional treatment facilities and services for people with substance use disorders. Special sessions are 30 days, but Inslee says that if legislators come with an agreed -upon proposal, they should be able to finish within several days and adjourn promptly Media Contact Public and constituent inquiries 1 360.902.4111 Press inquiries 1 360.902.4136 https://www.governor.wa.gov/news-media/inslee-announces-special-session-date-take-drug-possession-law I Packet Pg. 94 5/4/23, 1:03 PM MRSC - Drug Use and Possession Ordinances oMRSC Empowering local governments Search... Contact Us Partners Rosters SECTIONS I Ask MRSC Home > Explore Topics > Public Safety > Drug Use and Possession Ordinances a � o E L C Q Drug Use and Possession Ordinances N This page provides examples of city and county ordinances prohibiting drug possession and public drug use in Washington State, in response to State v. Blake (2021) and the 2023 failure of a bill that would have created a long-term statewide approach. We will be updating this page with other information and examples as needed. On this Page [hide] Overview Examples of City and County Ordinances Overview One of the surprises of the 2023 legislative session was that the legislature did not adopt a long-term replacement for the current laws prohibiting public drug use and possession that are currently set to expire on July 1, 2023. The current state laws were adopted as a temporary measure response to the State V. Blake case, which is summarized in a March 2021 MRSC blog article. The expectation was that long-term legislation would be adopted in the 2023 regular session, but the bill was voted down in the closing hours of the session. On May 2, 2023, Governor Inslee announced that he will call a special session of the legislature to address this issue to start on May 16. In the meantime, many Washington cities and counties have adopted or are Back to top https://mrsc.org/explore-topics/public-safety/law-enforcement/drug-use-possession Packet Pg. 95 5/4/23, 1:03 PM MRSC - Drug Use and Possession Ordinances considering local ordinances to address prohibition of drug use and possession in the event the specia session does not result in legislation that takes effect on July 1, 2023. Examples of City and County Ordinances Some cities and counties adopted ordinances prior to the end of the legislative session due to concerns about the effectiveness of the state legislation enacted in response to the Blake case. At least some of those local governments have indicated they will rely on those ordinances after July 1, 2023 if state legislation is not adopted. Other cities and counties are adopting ordinances now to ensure that there are local regulations in effect on July 1, 2023 if necessary. a� N N MRSC is providing representative examples of such ordinances on this page for informational N purposes but does not endorse or make any representations about the legality of any ordinance. Regulation of drug use and possession raises complex policy and legal issues which must be decided o at the local level. .2 a. C ities a • Bellingham Ordinance No. 2023-04-009 (April 10, 2023) — Makes it a misdemeanor to knowingly use a controlled substance in public places without a prescription; section sunsets in two years. "Public place" is defined in BMC Sec.10.08.010. Law enforcement/prosecutor are encouraged to divert cases to substance abuse treatment services. • Kent Ordinance 4461 (May 2, 2023) — Repeals and reenacts chapter on drug and alcohol possession. Use or possession of controlled substances in public is gross misdemeanor; possession of drug paraphernalia is misdemeanor. Creates alternative deferred prosecution program to provide additional treatment options. • Lakewood Ordinance No. 782 (March 20, 2023) —Adds section to the municipal code making it unlawful to intentionally use any dangerous drug in a public place or to knowingly dump, throw, deposit, or discharge onto the ground or into any body of water any dangerous drug or drug paraphernalia. • Lynnwood Municipal Code Ch.10.42 (February 13, 2023) — Use of Drugs in Public. Makes it a misdemeanor for any person to intentionally use a controlled substance in a public place unless it has been lawfully prescribed. • Richland Municipal Code Chapter 9.09 (January 17, 2023) —Makes it a misdemeanor to use a dangerous drug in a public place. • Sumner Municipal Code Sec. 9.16.045 (2021) — Possession or use of dangerous drugs is prohibited; violation is a gross misdemeanor. Cour+;-- Back to top https://mrsc.org/explore-topics/public-safety/law-enforcementldrug-use-possession I Packet Pg. 96 5/4/23, 1:03 PM MRSC - Drug Use and Possession Ordinances • Chelan County Code Chapter 7.34 (2021) — Controlled Substances. Knowing possession of contro e substances is a misdemeanor. • Grant County Ordinance No. 21-020-CC (2021) — Makes it a gross misdemeanor to knowingly possess a controlled substance, with exception of legal marijuana possession and valid prescriptions. • Snohomish County Draft Ordinance No. 23-X)0( (2023; not yet adopted) —Makes the possession or public use of controlled or counterfeit substances or legend drugs illegal. Note: this is a draft ordinance. We will update with final ordinance when/if passed by the Snohomish County Council. Sample Documents Topics Stay Informed Subscribe to E-Newsletters MRSC Insight Blog Related Services MRSC FOSTERS www.mrscrosters.org Follow us: © 2023 Municipal Research and Services Center of Washington (MRSQ. All rights reserved. Privacy & Terms. Last Modified: May 03, 2023 Back to top https://mrsc.org/explore-topics/public-safety/law-enforcementldrug-use-possession Packet Pg. 97