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HomeMy WebLinkAbout08-26RESOLUTIONNO. O8'&b A RESOLUTION of the City Council Authorizing the Waiver of Sewer Connection Fees for CHIP Grant-Eligible Affordable Housing Projects and Authorizing the City Manager to Execute a Subrecipient Agreement with Clallam County WHEREAS, the Washington State Department of Commerce offers a grant program to local governments known as the "Connecting Housing to Infrastructure Program" or "CHIP," authorized under RCW Chapter 82.14 and Sections 35.92.380,36.94.370, and 54.24.080 (as enacted or amended); and WHEREAS, CHIP grants are intended to help local governments defray the costs of extending water and utility infrastructure to affordable and/or low-income housing developments by reimbursing eligible connection fees, system development charges, and utility improvement charges waived on behalf of qualifring developers; and WHEREAS, RCW 54.24.080 authorizes public utility districts to waive utility connection fees for affordable and/or low-income housing in connection with CHIP grant programs;and WHEREAS, the City of Port Angeles ("Qj!y"), through its sewer utility ("Utility") provides sewer services to portions of Clallam County, including unincorporated areas, and its sewer connection charges include a Sewer Connection Permit, Sewer System Development Charge, Connection to Sewer Line fee, and Construction Inspection fees; and WHEREAS, Clallam County ("County") has taken a lead role in applying for, and has been granted, CHIP grants to support affordable housing development within its jurisdiction, including within unincorporated urban growth areas served by the Utility; and WHERBAS, the County has requested that the Utility execute a resolution authorizing the waiver of sewer connection fees for County-led CHIP grant reimbursement eligible projects, and has indicated its intent to reimburse the Utility for waived fees through a subrecipient agreement;and WHEREAS, the City's Director of the Department of Public Works & Utilities ("Director") has reviewed the CHIP program guidelines and recommend that the Utility participate as a subrecipient under County-administered CHIP grants, subject to a subrecipient agreement that protects the Utility's financial interests and delineates responsibilities between the County and the Utility; and WHERBAS, the City Council of the City of Port Angeles finds that participation in the CHIP program through a subrecipient agreement with the County is consistent with the City's commitment to supporting affordable housing in the City and Clallam County and is in the public interest; I NOW, THEREFORE, BE IT RESOLVED by the City Councilas follows: Section 1. Authorization to Waive Sewer Connection Fees. The City Council hereby authorizes the City Manager and the Director to waive, on a project-by- project basis, up to one hundred percent (100%) of the Utility's sewer connection fees - including the County Sewer Development Charge, Recording fee for Agreement to Annex, Sewer Connection Permit, Sewer System Development Charge, Connection to Sewer Line fee, Industrial Wastewater Pre-Treatment Fees, Sewer Main Improvements, and Construction Inspection fees -'for projects that are determined to be eligible for CHIP grants reimbursement under County-administered CHIP grant applications. Any such waiver is conditioned upon award of a CHIP grant to Clallam County for the applicable project and the execution of a subrecipient agreement providing for reimbursement of waived fees to the Utility. Section 2. Authorization to Execute Subrecipient Asreement. The City Council hereby authorizes the City Manager to negotiate and execute a subrecipient agreement with Clallam County, as lead agency and CHIP grant recipient, governing the Utility's participation in County-administered CHIP grant projects, substantially in the form of the draft agreement attached hereto as Exhibit A. Section 3. Proiect-by-Proiect Determination. Nothing in this Resolution obligates the Utility to waive fees for any specific project. The Director shall evaluate each proposed CHIP-eligible project individually and shall execute project-specific documentation as appropriate under the subrecipient agreement authorized herein. Section 4. No Independent Guarantee. The Utility makes no independent guarantee of the continued availability of CHIP grant funding or consistency of eligibility criteria. Waivers authorized under this Resolution are contingent upon successful award of a CHIP grant to Clallam County for each applicable project. Section 5. Ratification. All actions previously taken by City staff in support of CHIP-eligible affordable housing projects, including the issuance of letters of support to Clallam County, are hereby ratified and confirmed. Section 6. Effective Date This Resolution shall take effect immediately upon adoption by the City Council 2 PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 7 day of July 2026. Kate Dexter, Mayor ATTEST: i Martinez-Bailey,C APPROVED AS TO FORM: Sheida R. Sahandy, City Attomey 3 Page 1 of 4 Exhibit A – Draft Agreement CONNECTING HOUSING WITH INFRASTRUCTURE GRANT SUBRECIPIENT AGREEMENT FOR THE EKLUND AT GALES PROJECT BETWEEN CLALLAM COUNTY AND CITY OF PORT ANGELES THIS AGREEMENT is entered into by and between Clallam County (“County”) and City Port Angeles (“City”). The County and the City may each be referred to individually as a “Party” or collectively as the “Parties.” I. PURPOSE The purpose of this Agreement is to support the efforts of the Peninsula Housing Authority (“PHA”) to successfully build 24 units of Affordable Housing located on the corner of E. 7th Avenue and N. Gales St. with a project called Eklund at Gales (“Project”). Clallam County submitted for a Connecting Housing Infrastructures Program (CHIP) grant application and has been awarded funding from Washington State Department of Commerce (“DOC”) to fund the cost of Water and Sewer hookup fees associated with this project. II. SCOPE OF WORK 1) City Resolution: The City will execute a resolution waving the cost of the sewer utility connection fees for the Project. The County will reimburse the City for all the following waived sewer connection fees, sewer system development charges, utility improvement charges, and estimated construction inspection fees as permitted within the scope and boundaries of the Connecting Housing Infrastructures Program: a) City Sewer Development Fees $ 7,150.00 b) Sewer Connection (1 ea) $ 686.00 c) Sewer Connection Permit (23 ea) $ 2,300.00 d) Estimated construction inspection at $98/hr $ 294.00 e) Total $10,430.00 2) Pre-contracting Requirements: As CHIP grant recipient, the County is responsible for meeting all Pre- contracting Requirements of the CHIP grant program, specifically: a) Affordability monitoring program requirements established by the Department of Commerce, shall be the responsibility of the County and not the City. Page 2 of 4 b) The County shall be responsible for completing the cultural resources review process. Any project costs arising from that process that affect the City's Cost of Sewer Service Installation as defined in this Agreement shall be borne by the County. 3) Sewer Service Installation: The City will install a typical 1-inch sewer meter connection for the Project. The connection will be made to the City’s existing sewer distribution system on E. 7th Avenue. a. Costs for Sewer Service Installation shall include County sewer development charge, III. AGREEMENT TERM The term shall commence upon execution of the Agreement and shall terminate upon the end of the County CHIP grant Period of Performance, unless otherwise terminated in accordance with the procedure described in Agreement Section VIII. IV. COMPENSATION Payment of Capital Facilities Charge and Service Installation Charge shall be in advance of service installation. Payment of Service Activation Charge shall be at the time sewer service activation is requested at the service location. In accordance with the City’s published Schedule of Deposits and Charges, the County will reimburse the City an amount not to exceed $19,000.00 payment in full upon the received invoices of this agreement. If the sewer service installation is not completed or the project is cancelled, the City will refund the reimbursement funds to the County less any Costs for Sewer Service Installation incurred by the City specific to the Project. The County shall be responsible for determining if City's standard connection and installation charges— which may include administrative and rolling stock expenses—require itemization to distinguish eligible from ineligible costs under CHIP program guidelines. The County shall determine whether service installation and connection work should be invoiced to the County on a time-and-materials basis rather than pursuant to the Schedule of Deposits and Charges, in order to ensure proper cost documentation. In the case the County determines the City ’s standard connection and installation charges shall be itemized and invoiced to the County on a time-and-materials basis, the County will reimburse the City an amount not to exceed $19,000 for the Capital Facilities Charge and Service Activation Charge and for all Costs for Sewer Service Installation incurred by the City specific to the Project. V. AGREEMENT ALTERATIONS AND AMENDMENTS This Agreement 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. VI. RECORDS, DOCUMENTS, AND REPORTS The City shall maintain books, records, documents and other evidence of accounting procedures and practices which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of the Agreement. These records shall be subject to all reasonable times in inspections, Page 3 of 4 review, or audit by personnel duly authorized by the County, the Office of the State Auditor, and federal officials so authorized by law, rule, regulation, or Agreement. The City will retain all books, records, documents, and other material relevant to this Agreement for six years after settlement and make them available for inspection by persons authorized under this provision. VII. DISPUTES Disputes arising under this Agreement shall be resolved by a panel consisting of one representative from the County, one representative from the City, and a mutually agreed upon third party. The dispute panel shall thereafter decide the dispute with the majority prevailing. Neither Party shall have recourse to the courts unless there is a showing of noncompliance or waiver of this section. VIII. TERMINATION Either Party may terminate the Agreement upon thirty (30) calendar days written notice to the other Party. If this Agreement is so terminated, the Parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. IX. GOVERNANCE This Agreement is entered into pursuant to and under the authority granted by the laws of the State of Washington and any applicable federal laws. The provisions of this Agreement shall be construed to conform to those laws. In the event of an inconsistency in the terms of this Agreement, or between its terms and any applicable statute or rule, the inconsistency shall be resolved by giving precedence in the following order: a. Applicable local, state, federal codes, statutes, and rules: b. This Agreement; and c. Any other provisions of the agreement, including materials incorporated by reference. X. WAIVER A failure by either Party to exercise its rights under this Agreement shall not preclude that Party from subsequent exercise of such rights and shall not constitute a waiver of any other rights under the Agreement unless stated to be such in a writing signed by an authorized representative of the Party and attached to the original Agreement. XI. SEVERABILITY If any provision of this Agreement, or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given Page 4 of 4 effect without the invalid provision and to this end the provisions of this Agreement are declared to be severable. XII. ENTIRE AGREEMENT This Agreement contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be considered to exist or to bind any of the parties to the agreement unless otherwise stated in the Agreement. AGREED: City of Port Angeles Clallam County ______________________________________ _______________________________________ Signature Date Signature Date Mike French, Chair Clallam County Commissioners ______________________________________ Name Approved as to Form: ______________________________________ _______________________________________ Title Jay Reno, Chief Civil Deputy Clallam County Prosecutor’s Office