Finance & Asset Management Committee Meeting Agenda

Transcription

1 Finance & Asset Management Committee Meeting Agenda Date: Tuesday, September 18, 2018 Time: 4:00p.m. 6:00p.m. Location: Classroom (Economy Building) Committee Members: Ray Ishii (Chair), Devin McComb (Vice-Chair), Patrice Barrentine, David Ghoddousi, Paul Neal, Mark Brady, JJ McKay 4:00pm I. Administrative: A. Approval of Agenda B. Approval of the Finance & Asset Management Committee July 17 th, 2018 Meeting Minutes Chair 4:05pm II. Announcements and/or Community Comments 4:10pm III. Reports and Discussion Items A. Review of the PDA Financial Statements August 2018 B. Update on 2019 Budget Process C. Status of Capital Projects Sabina Proto Sabina Proto Brady Morrison 4:45pm IV. Action Items A. Proposed Resolution 18-40: Authorization for Contract Authority Replacement of Current PPMPDA IT Server Room AC System B. Proposed Resolution 18-41: Authorization for Contract Authority Expansion of Current PPMPDA Security Camera System C. Proposed Resolution 18-42: Authorization for Contract Authority Replace Roofing System on the Livingston Building D. Proposed Resolution 18-43: Authorization for Contract Authority Repair Gutter System on the South Entrance Pergola Joseph Strong Joseph Strong Kelsey Lindblom Kelsey Lindblom 5:05pm V. Property Management Report A. Residential Property Management Report John Turnbull 5:20pm VI. Public Comment Chair 5:25pm 5:45pm VII. Closed Session A. Property Management Report - RCW (c) B. Review of Lease Proposals Lease Renewal Crumpet Shop, 1503 First Avenue Lease Renewal Chicken Valley, 1507 Pike Place #520 Vacancy Report i. Current Lease Negotiations VIII. Open Session A. Action Item: Proposed Resolution 18-44: Lease Proposals September 2018 Chair Matthew Holland Chair Matthew Holland 5:50pm IX. Resolutions to be added to the Consent Agenda Chair Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

2 5:55pm X. Concerns of Committee Members Chair 6:00pm XI. Adjournment Chair Pike Place Market Preservation & Development Authority (PDA) pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

3 z Finance & Asset Management Committee Meeting Minutes Tuesday, July 17 th, :00 p.m. to 6:00 p.m. Classroom Committee Members Present: Ray Ishii, Gloria Skouge, David Ghoddousi, Patrice Barrentine Other Council Members Present: Mark Brady Staff/ Consultants Present: Mary Bacarella, Sabina Proto, Jay Schalow, Matthew Holland, Brady Morrison, Karin Moughamer Others Present: Howard Aller, Chris Scott, Jerry Baroh, Joan Paulson The meeting was called to order at 4:03 pm by Ray Ishii, Chair. I. Administration A. Approval of the Agenda The agenda was approved by acclamation. B. Approval of the Finance & Asset Management Committee June 19 th, 2018 Minutes The June 19 th, 2018 meeting minutes were approved by acclamation. II. III. Announcements and Community Comments None. Reports & Discussion Items A. Review of the PDA Financial Statements June 2018 Sabina Proto began by noting that the financial statements look good and there are no major changes in categories of the Balance Sheet. The PDA operating statement shows revenue is over budget by $708,274 which is due to commercial, residential, parking and daystall performance. Operating expenses are under budget by $663,732, partly due to some vacancies in staffing. Mary Bacarella noted that the Director of Marketing position as been filled and there is one vacancy in Security. Sabina Proto continued by noting net result after debt service and reserves was $1,742,484, which is $1,372,015 over budget. Sabina Proto handed out the Pike Place Market PDA 5 Year Actuals Analysis for Period January June. Total revenue in 2017 decreased 1% ($96,630) and as a result a mid-year budget adjustment was made. In 2018 revenue has increased 11% ($937,956). All departments are doing well especially commercial, residential and parking. With regards to Expenses, each Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

4 department has been doing really well and many are under 2017 values. However, utilities and insurance have increased as a result of adding MarketFront. Sabina noted the PDA outperformed during the slower part of the year and this should bode well for the second half of the year which is busier. The net operating result shows a 50% increase ($983,364) over Sabina Proto continued reviewing the financial report noting that overall the PDA is under budget on expenses. Percent rent is doing well and is $33,000 over budget. Patrice Barrentine appreciated the 5 Year Actuals Analysis and is glad to see a positive result. Ray Ishii asked if there are any accounts receivable that are over 60 or 90 days. Sabina Proto responded there are some but those accounts are on payment plans and nothing needs to be written off. Ray Ishii noted the difference in expenses for the Market Foundation actuals. Sabina Proto responded there were big changes in the expenses as a result of the revised partnership agreement and there were changes in staffing due to fundraising for the MarketFront. Also the resident advocate was under Market Foundation and has now moved to the senior center and the cost is covered under residential department. B. Checking Account Activity Report Sabina Proto handed the Checking Account Activity Report to Karin Moughamer. C. LaSalle Senior Housing LLC Exit Options Sabina Proto began by referencing councilmember Devin McCombs Low Income Tax Credit overview that was presented several months ago. Low Income Tax Credit is a housing subsidy program which provides a tax credit to subsidize the construction of affordable rental units serving tenants at or below 60% of the area median income. LaSalle Senior Housing LLC is a project that was built utilizing the Low Income Housing tax credits. The type of the tax credit used was 9% and tax credits are received over the first 10 years of operation. In this case it started in September 2006 through August The initial compliance period is 15 years beginning on the completion of the construction, in the case of the LaSalle that is September 2006 through August Sabina Proto continued by noting that staff have been exploring the option of exiting the compliance period and the PDA has hired Beacon to consult on this option. LaSalle is a Limited Liability Company (LLC) structure. The General Partner is the PDA which owns just 0.01% and manages the business. The Limited Partner is the NEF (National Equity Fund) which received all the tax credits in exchange for putting cash into the project. NEF gets in return 99.99% of ownership and they are a passive investor and gets its return on investment exclusively from the tax credits. After the 15 year compliance period the LLC dissolves, in our case the exit date is August of 2021, leaving the asset (the project built) with a single owner, hopefully the PDA. Sabina Proto explained that LaSalle LLC is different from Western Housing in that WASH was new construction while the LaSalle project included acquisition, new construction and rehabilitation. The project insured the preservation of 40 units of section 8 housing and created an addition of 24 new units of low income housing by utilizing the last vacant site available in the Market Area. The total number of units are 64, 80% of the units available to residents 55

5 and older, and 20% available to people with disabilities. 15 one bedroom units are for residents at or below 50% median income, 32 studios are for residents at or below 30% median income, 11 studios for residents below or at 40% median income and five one bedroom units are at or below 40% median income. Tenant Rent should not exceed 30% of the monthly income of the target population Sabina Proto reviewed funding for the project. The total cost was $11,641,842 $8,206,504 from Low Income Housing Tax Credit PDA Acquisition Loan; PDA leased/sold the residential portion of the LaSalle building for $2,020,000 Washington State Housing Trust Fund $839,000, 40 year loan, at 1% interest Seattle Office of Housing $839,000, 50 year, at 1% interest Federal Home Loan Bank Affordable Housing Program $321,954 granted to the PDA, and PDA contributed this amount to LAS construction in the form of a loan Tax credit factor on the dollar It was purposely structured in this way so that when it was time to exit from the deal, it was favorable to the PDA. The project required an Operating Reserve, Replacement Reserve, and Special Purpose Reserve. It outperformed estimates and because of that quite a bit of money was put in the Replacement Reserve. The PDA is looking at the exit strategy, whether to exit early or on time. Options include to retain/use the cash for Capital Improvements or paid some of the debt and not spend out of pocket funds to get the LaSalle building. The exit analysis provided in the packet was prepared by Beacon. Ray Ishii noted that NEF is a national organization set up to invest in affordable housing and communities so it s not like they are a hedge fund trying to maximize profit. Sabina Proto continued the PDA has the first right of refusal. The purchase options include: The higher of debt and taxes (assume the debt of $5,060,799) or fair market value ($2,272,703) Purchase of the LP interest: the higher of (1) value plus member loan balances ($2,442,665) or (2) taxes and member loan balances ($40,451) Sabina noted that in order to purchase the partnership assets, the PDA will need to set up a new partnership to purchase the assets. This can be accomplished by assuming the $5.1M debt and triggers a 10 year holding rule and may not allow for re-syndication. Sabina thinks that is ok since the PDA will not reapply for low income housing tax credit for LaSalle again. The PDA is not going to rush into exiting the program. The exit starts in 2021 but it takes 180 days, which would be January David Ghoddousi asked what Beacons recommendation is. Sabina Proto responded their strategy is to purchase the investor member s interest, assuming NEF offers that for $1. Sabina will be interested to see what NEF has to offer.

6 Mark Brady asked if Sabina can ask NEF for information on how other deals settled. Sabina Proto responded that NEF has always been very accommodating and NEF is not there to make money, just to get the tax credits. With that said she can ask. David Ghoddousi noted that he has sat through many meetings on this topic and Sabina has done a great job on keeping up with all the changes. For him, it s been a real learning process. Ray Ishii asked if historic tax credits were used on this project. Sabina Proto responded no. Ray Ishii asked if NEF is concerned with the $1.35M fewer losses than projected. Sabina Proto responded NEF has seen these financials every quarter and they are very active in reviewing. The PDA provides most of their services and we provide a good deal. Sabina explained additional reasoning for the losses based on cash flow and loan payments made to the city and PDA. Ray further asked if not delivering the $1.35M in losses will need to be worked out at closing. Sabina responded they will have to see how the negotiations will go. Ray suggested keeping money in case NEF asks for funds to cover that loss. Ray Ishii asked if this will be included in the Capital Needs Assessment. Sabina Proto responded LaSalle has a separate CNA report but she will check with John and Brady. Ray noted it would be good to know what repairs or updates will need to be done once the PDA takes ownership of the building in order to plan. D. Capital Projects Overview Mary Bacarella noted that Brady Morrison and his team have been doing great work to pull all this information together. Brady Morrison began by noting the top five projects on the Capital Projects List have been completed and that a lot of the projects are in progress. Brady added he would be happy to review the list or answer any questions committee members may have. In addition to this list the Maintenance Department is working on a number of small projects. Mark Brady asked if Pike Place Chinese windows are on this list as they are a major eye sore. Brady Morrison responded there are currently four window projects on the list with the goal of getting a bid. Chinese Cuisine is one of those projects and three different contractors have looked at those windows. The window design will need to be reviewed by Historic Commission. Brady continued by noting the Livingston Baker roof has been walked with four different bidders. In looking at the list Brady notes there are a number of large jobs still to be completed. Patrice Barrentine asked if the rest of this list will be completed this year. Brady Morrison responded there will be some projects that will not be completed but he s confident a majority of the projects will be. In addition, Kelsey [Lindblom] is getting up to speed with Bob and once he leaves the department will be all new. Mary Bacarella added that during the budgeting process staffing will be reviewed. Brady added that Keith has been jumping in to help with some capital projects, including the Chiller on the Soames Dunn roof that developed a leak. That will need to be replaced as it affects a lot of tenants.

7 Brady is seeing decent responses to RFP s and he feels confident that the bids are competitive and better than previous times. Mary Bacarella added there will most likely be an emergency resolution to replace the Soames Dunn chiller. Brady noted the leak developed last Friday and on Monday the refrigerant ran out. A RFP went out today to five contractors with a response date of July 27 th. Patrice Barrentine asked if it s possible to move the response date to Thursday at noon. Brady Morrison responded he can look into that but it s a fine balance with giving companies enough time to put together competitive bids. Ray Ishii asked if all of these costs are charged to the capital reserve budget. Sabina Proto responded it depends on the project and costs can be shared among different budgets. Ray Ishii asked if a column could be added to the table that lists Project to Date Expense in order to track projects that span multiple years. A conversation took place discussing the reasoning behind the request. Sabina responded she can add that column. Ray Ishii asked if there is an update on the women and minority owned businesses used on Maintenance projects. Brady Morrison responded an advertisement was placed in the business journal and didn t get much response. Staff reached out to businesses found on the states online roster and they were able to sign up a few businesses. Projects that are not time sensitive are good candidates for working with these businesses and trying to get RFPs from them. Tristan has been working on this project but has not been having success in getting responses. Ray Ishii asked how many businesses are on the small works list. Brady Morrison does not know the number but can find it out. Ray also asked how much has been contracted with women or minority owned businesses. Brady will provide that number as well. Ray Ishii asked if Maintenance reaches out to women and minority owned businesses once a year to update the roster. Brady Morrison is not sure on how often this occurs and will look into it. IV. Action Items None. V. Property Management A. Residential Property Management Report Mary Bacarella reported in lieu of John Turnbull and began by noting vacancy continues to be less than budgeted which is really positive. A new manager for the LaSalle has been hired and the residential buildings are holding summer BBQ s this month. In August there will be a HUD inspection and revenue is on or over budget and expenses are on or below budget. VI. Public Comment Joan Paulson, after reviewing the number of capital projects, is concerned that the number of projects is dwindling and does not feel that is good for the performance level of maintaining the buildings. She feels the bidding process should have started last fall and does not believe the

8 projects listed as on hold will be completed or started this year. The report shows that things are lagging behind and preservation is not a priority and needs to be. She feels this plays into the changes of staff and staff wages. The name of the organization is Pike Place Market Preservation and Development. Preservation is named first and Development should follow. What has been happening is Development and then Preservation. That needs to be switched. Sabina Proto noted that today is Gloria s last Finance and Asset Management meeting and she thanked Gloria from the bottom of her heart. She has been reliable, available, helpful, and supportive every time. Her commitment to the Market and all of us has been amazing. VII. Closed Session The Committee Chair stated that the committee would go into closed session at 5:03 p.m. to discuss the property management report and return into open session at approximately 5:33 p.m. The committee entered into closed session at 5:04 p.m. A. Property Management Report - Closed Session (RCW (c)) B. Review of Lease Proposals i. Lease Renewal Pike Place Chowder Co., 1530 Post Alley #11 ii. Lease Renewal Manzo Brothers Produce, 1509 Pike Place iii. Lease Renewal Seattle Bagel Bakery, 93 Pike Street #4 iv. Lease Renewal Quality Cheese Inc., 1508B Pike Place C. Review of Delinquency Report i. Vacancy Report ii. Current Lease Negotiations The committee entered into open session at 5:37 p.m. The committee discussed the property management report which included the delinquency and vacancy report along with the current commercial lease negotiations during the closed session. VIII. Open Session Proposed Resolution 18-26: Lease Proposals July 2018 Tenant Term Start Date Pike Place Chowder Five (5) Years July 1, 2018 Pike Place Chowder Co. Larry Mellum Manzo Brothers Produce Two (2) Years July 1, 2018 Mario Manzo Seattle Bagel Bakery Five (5) Years August 1, 2018 Seattle Bagel Bakery, LLC

9 AJ Ghambari Quality Cheese Inc. Five (5) Years August 1, 2018 Shirley Linteau Patrice Barrentine moved the proposed resolution and Patrice Barrentine seconded the motion. For: David Ghoddousi, Ray Ishii, Patrice Barrentine, Gloria Skouge Against: 0 Abstain: 0 Proposed Resolution passed by a vote of IX. Resolutions to be added to the Consent Agenda Proposed Resolution 18-26: Lease Proposals July 2018 X. Concerns of Committee Members Ray Ishii will be reaching out to Councilmembers about serving on the Finance & Asset Management Committee for the coming year. Patrice Barrentine noted the Council is not going to be the same without her. Ray Ishii added that she is the backbone of the committee. David Ghoddousi noted the Constituency vote is taking place tonight and again on Friday from 9 am 5 pm on Flower Row. XI. Adjournment The meeting was adjourned at 5:40 p.m. by Ray Ishii, Chair Meeting minutes submitted by: Karin Moughamer, Executive Administrator

10 Date: September 18, 2018 To: From: Subject: PPM PDA Council Sabina Proto, Director of Finance August 31, 2018 Financial Statements Balance Sheet Notes: Page 1: Designated Cash: Decreased due to spending on the Capital Projects. Restricted Cash: Decreased due to the payment of the semiannual portion of the interest to the bondholders of the 2015 PDA Bonds. No other major changes in categories of Balance Sheet Net Position Current Year Result $4,008,028 Page 2: Accounts Receivable Activity Report Increased slightly from the prior month. Page 3: PDA Operating Statement Notes: Total Revenue for the end of August 31, 2018 was $13,746,931, over budget by $907,668 or 7.1% Total Operating Expense for the end of August 31, 2018 was $9,193,058, under budget by $685,932 or 6.9% Net Result after Debt Service and Reserves was $3,186,685, which is $1,593,594 over budget. We are up to date on all debt payments. Page 4: Footnotes on the Operating Statement Commercial Revenue is over budget by $213,340; it s up in Base Rent-Retail, Common Area and Direct Utilities. One of the main reasons is that we are collecting rents from spaces not forecasted for period January-March. Also, Percent Rent is $14K over budget.

11 Residential Revenue is over budget by $62,330; Rent revenue is over budget because the actual vacancy is less than budgeted, Stewart building had a higher rent increase than budgeted; Laundry and Other are slightly under budget. Daystall Revenue over budget by $15K in Daily Craft and Farmer. We are short in lockers for the crafts, and also permits for the crafts are going at a lower pace than projected. Page 5: Surface Revenue net of City Share is over budget by $15,360. Garage Revenue is over budget by $343,655; for period Jan-Aug is 29% higher than the same period of the last year. Miscellaneous Revenue is over budget in all categories but mostly in Investment Income and Trademark. Page 6: Operating Expenses over all under budget mostly in all departments due to several vacancies in staffing, spending less in Utilities, and of course due to trending. Page 7: Percent Rent spreadsheet- Percent Rent is $14K over budget YTD, and $162 K higher than the actuals of the same period last year. Page 8: The report states the balance of the Capital Replacement Reserve, which was $13.3 MM for the end of August 31, Page 9: Capital Projects Report provides the status and YTD spending on different Capital Project we are working on.

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21 2019 Budget Review and Approval Schedule Date / Time / Location Participants Activity Tuesday 9/18 4:00 PM- 6:00 PM The Classroom Finance and Asset Management Committee & Staff PDA Finance and Asset Management Committee Regular Meeting Budget discussion, goals, and direction with Finance and Asset Management Committee members. Thursday 10/11 4:30 PM- 5:30 PM The Classroom PDA Staff & Community Community Budget Meeting PDA staff will give an overview of 2019 programs, discuss the opportunities and challenges that will effect the 2019 budget, and hear the public's ideas and comments on Market needs that effect the budget. Tuesday 10/16 3:00 PM- 6:00 PM The Classroom Finance and Asset Management Committee & Staff PDA Finance and Asset Management Committee Regular Meeting Presentation of 2019 Proposed Final Budget. Thursday 11/1 4:30 PM - 5:30 PM The Classroom Finance and Asset Management Committee Community Staff Special Finance and Asset Management Committee Meeting Budget Discussion & Public Comments Finance Committee members and staff will discuss recommended changes to the 2019 Budget as presented to the FAM Committee on 10/16/2018. Committee will also hold public hearing for tenants and public to ask questions, make comments, or offer suggestions on 2019 Proposed Budget. Tuesday 11/13 4:00 PM- 6:00 PM The Classroom Finance and Asset Management Committee Community Staff PDA Finance and Asset Management Committee Regular Meeting Additional public comment, and report on public dialogue feedback; Committee discussion and direction provided to PDA staff for recommended changes to the 2019 Proposed Budget; Committee adopts final recommended 2019 Budget and Budget resolutions for consideration by Full Council. Thursday 11/29 4:00 PM- 6:00 PM The Classroom PDA Council Staff Regular PDA Council Meeting Full PDA Council reviews Finance & Asset Management Committee recommendations and adopts 2019 Final Budget. Section I

22 PROPOSED RESOLUTION Authorization for Contract Authority Replacement of Current PPMPDA IT Server Room AC System September 2018 WHEREAS, WHEREAS, WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, the current cooling system for the PPMPDA IT server room consists of three portable AC units that have had six units replaced due to failure, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined that the current cooling systems for the PPMPDA IT server equipment does not provide adequate capacity and reliability: and, the PPMPDA has executed a bid process to purchase and install a 24K BTU mini-split AC system. NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or her designee to enter into a contract with Horeco in an amount not to exceed $13,500 for the purpose of installing a 24K BTU minisplit AC system for cooling PPMPDA server room. The funds for this project will be drawn from the Capital Project PDA Mark Brady, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

23 Proposed Resolution Authorization for Contract Authority Replacement of Current PPMPDA IT Server Room AC System 2018 Proposed Resolution Costs: $13,500 Project: Account: Replace current PPMPDA IT server room AC system Capital Projects Accounting Code: Scope: Purchase and install 2-ton mini-split AC system to provide cooling PPMPDA server room. Outside condenser unit shall be mounted in LaSalle stairwell leading to PPMPDA main office and inside unit shall be mounted on wall within PPMPDA server room. Installation will include electrical wiring to circuit located within the PPMPDA IT office, insulated refrigeration pipes and condensation drain lines. Bid Process: Three bids solicited, three received. Horeco $10,923 ($13,500 with 20% contingency) Comfort Systems USA $16,606 Acco Engineered Systems $24,400

24 PROPOSED RESOLUTION Authorization for Contract Authority Expansion of Current PPMPDA Security Camera System September 2018 WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, in order to maintain the security and viability of the Pike Place Market buildings the PPMPDA has determined that additional security camera coverage for Pike Street, Western Avenue, Leland, Fairley, Sanitary, Desimone Bridge, and the Arcade are required. NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or her designee to enter into contracts with Security Solutions Northwest, Beach Electric, and Connections.com in an amount not to exceed $52, for the purpose of purchasing twenty Avigilon cameras and licenses, the installation of conduit, and purchase of network switches and cable to facilitate connecting the cameras to the existing PPMPDA Avigilon security camera system. The funds for this project will be drawn from the Capital Project PDA Mark Brady, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Pike Place Market Preservation & Development Authority (PDA) pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

25 Proposed Resolution Authorization for Contract Authority Expansion of Current PPMPDA Security Camera System September 2018 Proposed Resolution Costs: $52,586 Project: Account: Addition of 20 cameras to current PPMPDA security camera system Capital Projects Accounting Code: Camera Scope: Authorized Avigilon dealer to purchase and deliver to PPMPDA 18 specified model Avigilon cameras, associated camera accessories, and 18 Avigilon ACC version 5 Enterprise licenses. Bid Process: Five bids solicited, four received. Olympic Security & Communication $33,602 Security Solutions Northwest $28,755 Johnson Controls $29,565 Absco Solutions $31,818 Red Hawk no bid received Additional Information: After reception of all bids it was determined that an additional 2 cameras are required. All received bids contain itemized prices, of which the additional camera models are included. After adjustments to each bid using supplied item pricing for the 2 additional cameras and corresponding licenses the same supplier, Security Solutions Northwest, has the lowest bid. Revised Final Bid: Security Solutions Northwest $30,681 ($36,817 with 20% contingency) Installation Scope: To install conduit and junction boxes totaling 250 feet for new security cameras. All conduit is to be ¾ with one exception which will be around 4 foot of 2 inch conduit. Termination points where the cameras will be attached should be 1 and raised off of the mounting surface by ½. Pull string should be left in all installed runs. Some drywall, wood and metal may need to be drilled through and mounting surfaces may be drywall, wood or concrete. Work may need to be performed on ladders. Bid Process: Three bids solicited, one received. Beach Electric $10,750 ($12,900 with 20% contingency) Advanced Electric & Alarm Systems, INC. No submittal Consumer Electric No submittal

26 Network Scope: PPMPDA to directly purchase and have shipped five network switches and 3000 feet of bulk network cable to power and connect security cameras to existing PPMPDA network. Bid Process: Three suppliers priced Connections.com $2,391 ($2,869 with 20% contingency) Insight.com $2,909 NewEgg.com $2,746

27 PROPOSED RESOLUTION Authorization for Contract Authority Replace Roofing System on the Livingston Building September 2018 WHEREAS, WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined that the roofing system on the Livingston Building is at the end of the useful life cycle and in need of replacement; and, the PPMPDA has executed a bid process to install new roofing systems on the Livingston Building. NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or her designee to enter into a contract with Olympic Roofing in an amount not to exceed $203, for the purpose of installing upper and lower roofing systems on the Livingston Building. The funds for this project will be drawn from the Capital Projects COMLB Mark Brady, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

28 Proposed Resolution Authorization for Contract Authority Replace Roofing System on the Livingston Building September 2018 Proposed Resolution Costs: $203, Current Budget: $210, Project: Account: Install Roofing System on Livingston Building Capital Projects Accounting Code: Project Description: Preparation of current roofing system to accommodate complete tear off, R38 upgrade, and TPO layover on the Upper and Lower Baker Roof. Scope: Complete two layer tear off, asbestos abatement, and R38 insulation upgrade. Complete layover with 60mil TPO Membrane with 2 part low rise Fast Adhesive. Additional work includes but is not limited to new scupper units, new metal slip flashing installation around HVAC unit curbs and install of slip counter flashing under the inside flange to preserve existing coping. Scope includes a 20 year manufacturer s NDL warranty and one year installers warranty to cover labor and material. Bid Process: Advertised in the Daily Journal of Commerce; received three bids. o Olympic Roofing $184, ($203, with 10% Contingency) o Flynn Construction $206, o Cadence Construction $319, o SSI Construction Unresponsive o SQI Unresponsive o Oasis Roofing Unresponsive

29 PROPOSED RESOLUTION Authorization for Contract Authority Repair Gutter System on the South Entrance Pergola September 2018 WHEREAS, WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined that the gutter system on the South Entrance Pergola, located at the corner of First and Pike Street, is at the end of the useful life cycle and in need of repair and replacement; and, the PPMPDA has executed a bid process to prepare the existing gutter system for new coating and sealing as well as install a new gutter system. NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or her designee to enter into a contract with Flynn Roofing in an amount not to exceed $22, for the purpose of repairing and replacing the gutter system on the south entrance pergola. The funds for this project will be drawn from the Capital Projects COMLB Mark Brady, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

30 Proposed Resolution Authorization for Contract Authority Repair Gutter System on the South Entrance Pergola September 2018 Proposed Resolution Costs: $22, Current Budget: $25, Project: Account: Repair and Replace Gutter System on the South Entrance Pergola Capital Projects Accounting Code: Project Description: To prepare the existing gutter system for new coating and sealant. New gutter system to be installed. Scope: The gutter will be cleaned of debris and loose rust. The gutter system in place will then be lined with a Karnak 502 base coat, reinforced with a Polyester fleece liner, and recoated with Karnak 502 Top Coat. New liner inset to be installed, approximately 110ft. Loose metal sheeting to be refastened and secured. Bid Process: Solicited 3 bids; received 3 bids. o Flynn Roofing $18, ($22, with 20% Contingency) o SSI Construction $26, o Olympic Roofing $50,646.00

31 Residential Property Management Report September, 2018 Residential Property Update Report Vacancy continues to be less than budgeted. Increased due to move outs and significant extra repair work required for several units planned when units vacated.

32 Page 2 Major tasks for September 1. Complete HUD MOR (Management/operations and records audit) for Market House Sept Prepare for State audit this month of all HUD contracts in housing (Lasalle, Market House, Stewart House) Sept Complete building work orders for building inspection of Market House on September Complete work items required from Lasalle REAC inspection in August 5. Finish pre clean and unit prep for re-rent on vacancies (3 move-ins Sept 13, 8 units still with work to do with 15 units.) 6. Walkthrough with City of Seattle Housing in Lasalle to identify potential projects for energy efficiency/city share funding (windows/lights/water heaters.) 7. Capital project priorities for 2019 budget. 8. Contract Capital Needs Assessment for WASH 9. Distribute updated Market Emergency information booklet Pending projects 1. Upgrade of YARDI accounting to new HUD standards has been delayed by HUD 2. Fire repairs to LB unit L203 - seeking new contractor to complete work 3. Redo pest control contract to quarterly service standard in Stewart House move back to general maintenance schedule, an intensive schedule no longer needed. 4. Improve efforts to assist tenants with housekeeping/aging in place issues. 5. Stewart House REAC scheduled for January 4 6. Update Residential Policies/ Procedures/ Affirmative Marketing Plan waiting for City of Seattle updated requirements

33 PROPOSED RESOLUTION Lease Proposals September 2018 Tenant Term Start Date Crumpet Shop Five (5) years September 1, 2018 Gary Lasater & Nancy McFaul Chicken Valley Five (5) Years September 1, 2018 Chicken Valley, LLC. Aiping Weng &Jincheng Yu Mark Brady, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Pike Place Market Preservation & Development Authority (PDA) pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101