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4431CITYOFRENTON,WASHINGTONRESOLUTIONNO.4431ARESOLUTIONOFTHECITYOFRENTON,WASHINGTON,INRESPONSETOWASHINGTONSTATESUBSTITUTEHOUSEBILL1406(SHB1406),CODIFIEDASRCW82.14.540:(1)AUTHORIZINGTHEMAYORANDCITYCLERKTOCAUSETHECITYTOJOINANINTERLOCALAGREEMENTWITHTHECITIESOFAUBURN,BURIEN,COVINGTON,DESMOINES,FEDERALWAY,KENT,NORMANDYPARK,ANDTUKWILAENTITLED“INTERLOCALAGREEMENTFORTHEPURPOSEOFPOOLINGSALESTAXRECEIPTSWITHSOUTHKINGHOUSINGANDHOMELESSNESSPARTNERS(SKHHP)CITIESTOADMINISTERFUNDSUNDERRCW82.14.540”BYAUTHORIZINGTHEMAYORANDCITYCLERKTO,ATAFUTUREDATE,ENTERINTOANINTERLOCALAGREEMENTENTITLED“COMPANIONAGREEMENTFORTHEPURPOSEOFPOOLINGSALESTAXRECEIPTSWITHSOUTHKINGHOUSINGANDHOMELESSNESSPARTNERS(“SKHHP”)CITIESTOADMINISTERFUNDSUNDERRCW82.14.540”AND(2)AUTHORIZINGTHEMAYORORDESIGNEETOTRANSFERSHB1406FUNDSTOTHESOUTHKINGHOUSINGANDHOMELESSNESSPARTNERS(SKHHP)FORPURPOSESOFPOOLING.WHEREAS,theCityandthecitiesofAuburn,Burien,Covington,DesMoines,FederalWay,Kent,NormandyPark,andTukwila(collectivelythe“Parties”)areauthorized,pursuanttoRCWChapter39.34,theInterlocalCooperationAct,toenterintoaninterlocalgovernmentcooperativeagreement;andWHEREAS,theSouthKingHousingandHomelessnessPartners(“SKHHP”)wasformedonJanuary1,2019byinterlocalagreementbetweenthePartiesandKingCounty,whichinterlocalagreementwasauthorizedbyCityCouncilResolutionNo.4372;andWHEREAS,subsequenttotheformationofSKHHP,theStatelegislatureadoptedSubstituteHouseBill1406(SHB1406),codifiedasRCW82.14.540,authorizingthelegislativeauthorityofacountyorcitytoimposealocalsalesandusetaxforaffordableandsupportivehousingtoincomeeligiblepersonsasfurtherspecifiedinRCW82.14.540;and1 RESOLUTIONNO.4413WHEREAS,withinsixmonthsoftheeffectivedateofRCW52.14.540eachofthePattieshadadoptedaresolutionofintenttoauthorizethemaximumcapacityofthetax.TheCity’sresolutionwaspassedonAugust12,2019asResolutionNo.4386;andWHEREAS,withintwelvemonthseachofthePartieshadadoptedlegislationauthorizingthemaximumcapacityofthetax.TheCity’slegislationwasadoptedonJune15,2020viaOrdinanceNo.5972whichauthorizedarecaptureofWashingtonStatesalestaxpursuanttoRCW82.14.540,withsuchrecaptureestimatedtogenerateapproximately$236,000peryearforthenext20years;andWHEREAS,whiletheCity’sestimated$236,000recaptureauthorizedbyOrdinanceNo.5972isavaluablerevenuestreamthatcanbeusedinRentontosupportvariousaffordablehousinginitiatives,transferofsuchfundstoSKHHPwouldallowtheuseofthefundstostretchfurtherandtomakeamoreprofoundandmeaningfulimpactbyallowingSKHHPtoestablisharegionalfundingsourcethatwillhelptoestablishregionaldecisionmakingandsharedhousingsolutionsandincreasedinvestmentinaffordableandsupportivehousinginSouthKingCounty;andWHEREAS,onNovember22,2019,theSKHHPExecutiveBoardtookunanimousactiontoadoptSKHHPResolution2019-06urgingitsmemberjurisdictionstopool100%ofthetaxreceiptscollectedundertheprovisionsofRCW82.14.540.IfallPartiespoolthemaximumextentofthesetaxreceiptstoSKHHP,theestimatedrevenuewouldtotalapproximately$1,000,000peryearfora20-yearperiod;andWHEREAS,thecitiesofAuburn,Burien,DesMoines,FederalWay,Kent,NormandyPark,andTukwilahavealreadyactedtonegotiateaninterlocalagreement(the“2021Interlocal2 RESOLUTIONNO.4413Agreement”)topoolwithSKHHPtheRCW82.14.540taxreceiptsreceivedintheindividualcities;andWHEREAS,the2021lnterlocalAgreementwillbecomeeffectiveretroactivelytoMarch1,2021uponitsapprovalbythelegislativebodiesofthecitiesofAuburn,Burien,Covington,DesMoines,FederalWay,Kent,NormandyPark,andTukwila,whichlegislativeapprovalisunderway;andWHEREAS,theSKHHPExecutiveBoardvotedtoexpandthe2021InterlocalAgreementtoallowtheCityofRentontojointhe2021InterlocalAgreementbyexecutingacompanionagreementtothe2021InterlocalAgreement;andWHEREAS,theCitydesirestojointheotherPartiesinpoolingwithSKHHPtheCity’sRCW82.14.540taxreceipts.Thus,theCitydesirestojointhe2021InterlocalAgreement,afterithasbecomeeffective,byexecutingacompanionagreementtothe2021InterlocalAgreement;andWHEREAS,uponjoiningthe2021InterlocalAgreement,theCitywishestocommencetransferringitsRCW82.14.540fundstoSKHHP,pursuanttothetermsofthisResolutionandthe2021InterlocalAgreement;NOW,THEREFORE,THECITYCOUNCILOFTHECITYOFRENTON,WASHINGTON,DORESOLVEASFOLLOWS:SECTIONI.TheMayorandCityClerkareherebyauthorizedtojointheinterlocalagreementreferredtoaboveasthe“2021lnterlocalAgreement”entitled“InterlocalAgreementForthePurposeofPoolingSalesTaxReceiptswithSouthKingHousingandHomelessnessPartners(“SKHHP”)CitiestoAdministerFundsUnderRCW82.14.540”aftersuchinterlocal3 RESOLUTIONNO.4413agreementhasbecomeeffective.AcopyofthisinterlocalagreementisattachedtothecompanionagreementaddressedinSectionIIofthisResolution.SECTIONII.AfterCitystaffreceiveswrittenconfirmationthatthe2021InterlocalAgreementaddressedinSectionIofthisResolutionhasbecomeeffective,theMayorandCityClerkareherebyauthorizedtoenterintoaninterlocalagreemententitled“CompanionAgreementforthePurposeofPoolingSalesTaxReceiptswithSouthKingCountyHousingandHomelessPartners(“SKHHP”)CitiestoAdministerFundsUnderRCW82.14.450,”attachedheretoasAttachment“A”andincorporatedbythisreference.Assetforthinsuchcompanionagreement,executionofthecompanionagreementwillcausetheCitytobejoinedinthe“InterlocalAgreementForthePurposeofPoolingSalesTaxReceiptswithSouthKingHousingandHomelessnessPartners(“SKHHP”)CitiestoAdministerFundsUnderRCW82.14.540”whichisaddressedinSectionIofthisResolution.SECTIONIII.TheMayorordesigneeisherebyauthorizedtotransfertoSKHHPtheCity’staxreceiptfundscollectedundertheprovisionsofRCW82.14.540andOrdinanceNo.5972.ThisauthorizationtakeseffectonthedatethattheMayorandCityClerkenterintothecompanionagreementthatisattachedasAttachment“A”hereto.PASSEDBYTHECITYCOUNCILthis12thdayofprll,2021.Jason[.Seth,CitClerk4 RESOLUTIONNO.4413APPROVEDBYTHEMAYORthis12thdayofprji,2021.avone,MayorApprovedastoform:ShaneMoloney,CityAttorneyRES:1866:3/23/215 ATTACHMENT“A”CompanionAgreementForthePurposeofPoolingSalesTaxReceiptswithSouthKingHousingandHomelessnessPartners(“SKHHP”)CitiestoAdministerFundsUnderRCW82.14.540 CompanionAgreementForthePurposeofPoolingSalesTaxReceiptswithSouthKingHousingandHomelessnessPartners(“SKHHP”)CitiestoAdministerFundsUnderRCW82.14.540ThisCompanionAgreementexpandsthePartiesoftheInterlocalAgreementforpoolingsalestaxreceiptswithSKHHPcitiestoadministerfundsunderRCW22.14.540(“CompanionAgreement”)toincludetheCityofRenton(“Renton”),amunicipalcorporationoftheStateofWashington.WHEREAS,thisCompanionAgreementismadepursuanttotheInterlocalCooperationAct,chapter39.34RCW,toaddresstheuseofpooledtaxreceiptsforaffordableandsupportivehousingsalesandusetaxinaccordancewithRCW82.14.540(10);andWHEREAS,thecitiesofAuburn,Burien,DesMoines,FederalWay,Kent,NormandyPark,andTukwilaexpressedanintentiontoenterintoanInterlocalAgreementwithaneffectivedateofMarch1,2021,forthepurposeofpoolingsalestaxreceiptswithSKHHPtoadministerfundsunderRCW22.14.540;andWHEREAS,consistentwiththeintentandspiritofpoolingsalestaxreceiptswithSKHHPtoadministerfundsunderRCW82.14.540,theSKHHPExecutiveBoardvotedtoexpandtheInterlocalAgreementtoincludetheCityofRentonthroughtheexecutionofthisCompanionAgreementbyanaffirmativevoteofatwo-thirdsmajorityofthemembershipoftheSKHHPExecutiveBoard;NOW,THEREFORE,inconsiderationofthemutualpromises,benefits,andcovenantscontainedinthisAgreement,theCityofRentonagreestotheaboverecitalsandthefollowingtermsandconditions:Section1.TheCityofRentonagreestoandadoptstherecitals,mutualpromises,benefits,terms,covenants,andconditionsoftheInterlocalAgreementforpoolingtaxreceiptswithSKHHPcitiestoadministerfundsunderRCW82.14.540signedbythecitiesofAuburn,Burien,DesMoines,FederalWay,Kent,NormandyPark,andTukwila,whichInterlocalAgreementisattachedheretoasExhibitA.Section2.ThisCompanionAgreementwillbeinfullforceonthedateofexecution.Executedthis________dayof__________________,2021. CITYOFRENTONArmondoPavoneMayorAttest:JasonSethCityClerkApprovedastoform:ShaneMoloneyCityAttorney EXHIBITA[Seenextpages.] InterlocalAgreementForthePurposeofPoolingSalesTaxReceiptswithSouthKingHousingandHomelessnessPartners(“SKHHP”)CitiestoAdministerFundsUnderRCW82.14.540ThisInterlocalAgreement(“Agreement”)isenteredintobyandbetweentheCitiesofAuburn,Burien,DesMoines,FederalWay,Kent,NormandyPark,andTukwilaeachmunicipalcorporationsandpoliticalsubdivisionsoftheStateofWashington(individually,a“Party”andcollectively,“theParties”).WHEREAS,thisAgreementismadepursuanttothelnterlocalCooperationAct,chapter39.34RCW,andhasbeenauthorizedbythelegislativebodyofeachjurisdictiontoaddresstheuseofpooledtaxreceiptsforaffordableandsupportivehousingsalesandusetaxinaccordancewithRCW82.14.540(10).WHEREAS,SKHHPwasformedonJanuary1,2019byInterlocalAgreementamongthejurisdictionsofAuburn,Burien,Covington,DesMoines,FederalWay,Kent,NormandyPark,Renton,Tukwila,andKingCounty(the“SKHHPInterlocalAgreement”);andWHEREAS,afterSKHHPwasformed,theWashingtonStateLegislaturepassedSubstituteHouseBill(SHB)1406,whichwassignedintolawbytheGovernor,andisnowcodifiedatRCW82.14.540;andWHEREAS,RCW22.14.540authorizesthelegislativeauthorityofacountyorcitytoimposealocalsalesandusetaxforaffordableandsupportivehousingtoincome-eligiblepersons;andWHEREAS,RCW82.14.540stipulatesthemoneyscollectedorbondsissuedthroughthissalestaxcreditmayonlybeprovidedtopersonswhoseincomeisatorbelow60percentofthemedianincomeofthecountyorcityimposingthetaxandmayonlybeusedforthefollowingpurposes:(I)acquiring,rehabilitating,orconstructingaffordablehousing,whichmayincludenewunitsofaffordablehousingwithinanexistingstructureorfacilitiesprovidingsupportivehousingservicesunderRCW71.24.385;or(ii)fundingtheoperationsandmaintenancecostsofnewunitsofaffordableorsupportivehousing;andWHEREAS,fundingtosupporttheacquisition,rehabilitation,andnewconstructionofaffordablehousing,andoperationandmaintenancecostsofnewaffordablehousingiscriticaltoprovidinganarrayofhousingopportunitiesforresidents;andWHEREAS,RCW82.14.540allowscitieswithapopulationofonehundredthousandorlesstousemoneyscollectedforprovidingrentalassistancetotenantsinadditiontotheaffordablehousingpurposeslistedabove.AsofthedateofthisAgreement,althoughatleastsomeofthePartieshaveapopulationofonehundredthousandorless,allsuchPartiesintendthatthefundstheycontributepursuanttothisAgreementshallnotbeusedforprovidingrentalassistance;andSKHHPSHB1406InterlocalAgreement—February4,2021Page1of6 WHEREAS,withinsixmonthsoftheeffectivedateofRCW82.14.540,eachofthePartiesadoptedaresolutionofintenttoauthorizethemaximumcapacityofthetax,andwithin12months,eachofthePartiesadoptedlegislationauthorizingthemaximumcapacityofthetax;andWHEREAS,onNovember22,2019,theSKHHPExecutiveBoardtookunanimousactiontoadoptSKHHPResolution2019-06urgingeachoftheninememberjurisdictionstopool100percentofthetaxreceiptscollectedundertheprovisionsofRCW82.14.540whichexpresslyanticipatespoolingoftaxreceiptsreceivedunderRCW82.14.540ifdonepursuanttothisAgreement;andWHEREAS,thePartieswishtoactcooperativelytopooitaxreceiptsreceivedinindividualcitiestoallowtheuseoffundstoleverageotherfundsandmakeamoremeaningfulandsignificantimpactonaffordablehousingchallengesinsouthKingCountyconsistentwiththisAgreementandRCW82.14.540;andWHEREAS,poolingRCW82.14.540salestaxreceiptswithSKHHPwillestablisharegionalfundingsourcethatwillhelptoestablishregional-decisionmakingandsharedhousingsolutionsandincreasedinvestmentinaffordableandsupportivehousinginsouthKingCounty.NOW,THEREFORE,inconsiderationofthemutualpromises,benefits,andcovenantscontainedinthisAgreement,thePartiesincorporatebyreferenceandagreetotheaboverecitalsandthefollowingtermsandconditions:1.Purpose.ThepurposeofthisAgreementistoalloweachofthePartiestopoolalloraportionofitstaxreceiptsreceivedunderRCW82.14.540forusebySKHHPinfundingaffordableandsupportivehousingprojectsand/orprogramsaspermissibleunderRCW82.14.540.2.ResponsibilitiesandAuthority.ForthepurposesofRCW39.34.030(4)(a),theSKHHPAdministeringAgencyisdesignatedastheadministratorresponsibleforoverseeingandadministeringthejointorcooperativeundertakingcontemplatedbythisAgreement.NopropertyshallbeacquiredbythePartiestothisAgreementbyreasonofthisjointorcooperativeundertaking.3.PooledFunds.ThelegislativebodyofeachPartyshallconsiderwhetheritwillpoolwithSKHHPalloraportionofitsRCW82.14.540taxreceipts.EachPartythatdeterminesthatitwillpoolalloraportionofitsRCW82.14.540taxreceiptsshalltransferthefundstobepooledintotheSKHHPHousingCapitalFund.4.UsesofPooledFunds.ConsistentwiththepermissibleusesoffundssetforthinRCW82.14.540,SKHHPwilldistributefundspooledunderthisAgreementonlyforthefollowingpurposesthatservepersonswhoseincomeisatorbelow60percentofthemedianincome:SKHHPSHB1406InterlocalAgreement—February4,2021Page2of6 a.Acquiring,rehabilitating,orconstructingaffordablehousing,whichmayincludenewunitsofaffordablehousingwithinanexistingstructureorfacilitiesprovidingsupportivehousingservicesunderRCW71.24.385;and/orb.Fundingtheoperationsandmaintenancecostsofnewunitsofaffordableorsupportivehousing.5.SelectionofFundingAwardsinvolvingPooledFunds.SKHHPintendstoperiodicallyinviteapplicationsforfundingforprojectsand/orprogramseligibleforfundingundertheSKHHPInterlocalAgreement.ForeachroundoffundingapplicationsforwhichSKHHPintendstousefundspooledunderthisAgreement,thefollowingshallapply:a.TheSKHHPExecutiveBoardwillidentifyfundingguidelinesthatwillinclude,butnotbelimitedto:theamountofavailablefunding,householdincometargets,fundingpriorities,eligibleactivitiesandgeographicareas,regulatoryterms,otherawardterms/reportingrequirements,applicationcontents,reviewprocess,evaluationcriteria,andthescheduleforfundingallocation.b.TheSKHHPAdvisoryBoard,tobeestablishedbytheSKHHPExecutiveBoardasoutlinedintheSKHHPInterlocalAgreement,willproviderecommendationstotheSKHHPExecutiveBoardonthestrategicfundingprioritiesandtheallocationoftaxreceiptscollectedthroughthisAgreement.TheserecommendationswillconsidersouthKingCountyhousingneeds,otherfundingsourcesthatsupportaffordablehousingandsupportivehousing,localhousingneeds,andequitablegeographicdistributionoffunds.c.TheSKHHPExecutiveBoardshallconsidertherecommendationsoftheSKHHPAdvisoryBoardtodecideboththerecommendedfundingawardsforselectedprojectsand/orprogramsandthespecificfundingfromeachparticipatingPartyconsistentwiththeSKHHPExecutiveBoardPowers.d.FundingwillbelimitedtoprojectsorprogramsthatarewithintheSKHHPsphereofinfluenceasidentifiedintheSKHHPInterlocalAgreementandmeettheeligibilitycriteriaofRCW82.14.540.6.ExpenditureofPooledFunds;LegislativeAuthorityofEachParty.a.AsprovidedintheSKHHPInterlocalAgreement,theSKHHPExecutiveBoardwillrecommendtotheindividuallegislativebodiesvarioustermstoaccompanytheirauthorizations.TermsshallbeconsistentwithRCW82.14.540andmayincludebutwillnotbelimitedto:theamountoffundsallocated,projectdescription,minimumaffordabilityrequirements,natureoffundingcommitment(loan,grant,orother),andgeneralrepaymenttermsforloans,ifapplicable.SKHHPSHB1406InterlocalAgreement—February4,2021Page3of6 b.BeforeanyParty’spooledfundsareawardedordistributedforfundingofaprojectorprogramselectedpursuanttoSection4“SelectionofFundingAwardsinvolvingPooledFunds”ofthisAgreement,thelegislativebodyofsuchPartyshallauthorizetheapplicationofaspecifiedamountofits22.14.540taxreceiptsinitsIndividualAccount,asprovidedinSection14oftheSKHHPInterlocalAgreement.c.SKHHPmayonlyawardanddistributeaParty’spooledfundsafteraParty’slegislativebodyhasapprovedparticipationinthisAgreement.7.Administration.FundscollectedthroughthisAgreementshallbeadministeredthroughtheSKHHPHousingCapitalFundasoutlinedintheSKHHPInterlocalAgreementandadministeredbytheSKHHPAdministeringAgency.TheSKHHPAdministeringAgencywillmaintainrecordssufficienttoseparatelytrackthedepositsandwithdrawalswithineachIndividualAccountandeachprojectaccount.8.Reporting.InadditiontoreportingrequirementsundertheSKHHPInterlocalAgreement,SKHHPwillsubmitanannualreporttothePartiesofworkplanprogressthatincludes,butisnotlimitedto,housingpriorities,strategies,capitalfundinginvestments,useofpooledRCW82.14.540taxreceipts,andotherSKHHPaccomplishments.9.Audit.ThePartiesacknowledgethattheexpenditureofallfundswillbesubjecttoauditbythestateauditororotherauthorizedentity.TheSKHHPAdministeringAgencyreservestherighttoreview,monitor,oraudittheuseofthesefundsasdeemednecessary.Suchactivitiesmayoccurwithorwithoutnotice.10.TerminationorWithdrawal.ThisAgreementmaybeterminatedatanytimebyanaffirmativevoteofamajorityofthelegislativebodiesofthePartiestothisAgreement.IfaPartywishestowithdrawfromparticipationinthisAgreement,itmaydosowithwrittennoticetotheSKHHPExecutiveBoardofitsintentiontowithdraw,dueonorbeforeJuly1ofayearandbecomeeffectiveasof11:59p.m.onDecember31ofthatyear.UponterminationofthisAgreementorPartywithdrawalfromthisAgreement,alluncommittedpooledRCW82.14.540taxreceiptmoneysintheSKHHPHousingCapitalFundwillbedistributedtothePartiesincaseofterminationoftheAgreement,orindividuallytoanyPartywithdrawingfromtheAgreement,byremittingthetotaluncommittedamountsremainingintheParty’sIndividualAccounttothatParty,unlessotherwiseauthorizedbythelegislativeauthorityofthatParty.11.Additionalmunicipalities.ThisAgreementmaybeexpandedtoincludeadditionalSKHHPmunicipalitiesthroughtheexecutionofacompanionagreementthatisconsistentwiththisAgreementandtheSKHHPInterlocalAgreement,anduponanaffirmativevoteofatwothirdsmajorityofthemembershipoftheSKHHPExecutiveBoard.12.Amendments.AnyamendmentstothisAgreementmustbeinwriting.ThisAgreementmaybeamendeduponapprovalofatleasttwo-thirdsofthelegislativebodiesofallPartiestoSKHHPSHB1406InterlocalAgreement—February4,2021Page4of6 thisAgreement,evidencedbyauthorizedsignaturesofthosePartiesasoftheeffectivedateofthisAgreement,however,anyamendmenttothisAgreementaffectingthetermsandconditionsofmembership,provisionsregardingduration,terminationorwithdrawal,ortheconditionsofthisSectionwillrequireconsentofthelegislativeauthoritiesofallParties.ThisSectionshallnotbeconstruedtorequireamendmentofthisAgreementfortheadditionofanewPartycontemplatedunderSection11.13.Effectivedate.ThisAgreementwillbecomeeffectiveMarch1,2021,subjecttoitsapprovalbythelegislativebodiesofallparticipatingjurisdictions,andpursuanttoRCW39.34.040.AlthoughthisAgreementmaybeapprovedandsignedbyaPartyaftertheAgreement’seffectivedate,allactsconsistentwiththeauthorityofthisAgreementthatoccuronorafterMarch1,2021,areherebyratifiedandaffirmed,andtheothertermsofthisAgreementwillbedeemedtohaveapplied.14.AgreementDuration.Thisagreementwillbeinfullforceandeffectuntilitisterminatedinaccordancewiththetermsandconditionsofthisagreement.(SignaturePageFollows)SKHHPSHB1406InterlocalAgreement—February4,2021Page5of6 Approvedandexecutedthis________dayof_________________,2021.NameofParty:[fillinjurisdiction][fillinappropriatesignatory]Approvedastoform:[fillinCityAttorneyinformation]SKHHPSHB1406InterlocalAgreement—February4,2021Page6of6