Finance & Asset Management Committee Meeting Agenda

Transcription

1 Finance & Asset Management Committee Meeting Agenda Date: Tuesday, August 15 th, 2017 Time: 4:00p.m. 6:00p.m. Location: Classroom Committee Members: Ray Ishii (Chair), Gloria Skouge (Vice-Chair), Patrice Barrentine, Jim Savitt, David Ghoddousi, Betty Halfon 4:00pm I. Administrative: A. Approval of Agenda B. Approval of the Finance & Asset Management Committee July 18 th, 2017 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 for July 2017 i. Checking Account Activity Report B Budget Schedule C. Chief Seattle Club License D. Crossing Guard Program at Western and Virginia E. W/MBE Contracting Update F. Constituency Office Space 5:00pm IV. Action Items A. Proposed Resolution 17-40: Authorization for Contract Authority Replace North Arcade and Desimone Bridge Roofs B. Proposed Resolution 17-41: Install Commercial Storage Units in MarketFront Garage C. Proposed Resolution 17-42: MarketFront Walk-In Cooler D. Proposed Resolution 17-43: Medical and Dental Benefits Sabina Proto Sabina Proto Colleen Echohawk Ben Franz-Knight Steve Nelson Ben Franz-Knight & John Turnbull Bob Beckstrom Bob Beckstrom Bob Beckstrom Erica Bates 5:20pm V. Property Management Report A. Residential Property Management Report John Turnbull 5:30pm VI. Public Comment Chair 5:35pm VII. Closed Session A. Property Management Report - RCW [c] B. Review of Lease Proposals New Tenant The Drink Den, 1516 Western Ave New License Chief Seattle Club, 1901 Western Ave/Pavilion Lease Renewal Brooke Westlund Studio & Gallery, 1514 Western Ave Lease Renewal El Mercado Latino, 1514 Pike Pl #5 Lease Renewal Raven s Nest Treasures, 85 B Pike Pl Chair Jennifer Maietta Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

2 5:45pm Lease Renewal Pure Food Fish, 1515 Pike Pl C. Review of Delinquency Report i. Vacancy Report ii. Current Lease Negotiations VIII. Open Session A. Action Item: Proposed Resolution 14-39: License Agreements B. Action Item: Proposed Resolution 17-44: Lease Proposals August 2017 Chair Jennifer Maietta Ben Franz-Knight 5:50pm IX. Resolutions to be added to the Consent Agenda Chair 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 18 th, :00 p.m. to 6:00 p.m. Classroom Committee Members Present: Ray Ishii, David Ghoddousi, Patrice Barrentine, Gloria Skouge, Ann Magnano Other Council Members Present: Colleen Bowman Staff/ Consultants Present: Ben Franz-Knight, Matt Holland, Sabina Proto, Brady Morrison, Karin Moughamer, Erica Bates, Debra Benn Others Present: Chris Scott, Howard Aller, Jerry Baroh, Mary T. Andrews, Sharon Mukai The meeting was called to order at 4:03 pm by Ray Ishii, Chair. I. Administration A. Approval of the Agenda Ben Franz-Knight added Resolution 17-38: Approval of Mid-Year Adjustments to 2017 PDA Operating and Capital Projects Budgets to the agenda following the Proposed Revisions to 2017 PDA Budget. The agenda was approved by acclamation as amended. B. Approval of the Finance & Asset Management Committee June 20 th, 2017 Minutes Ann Magnano stated that she would like the minutes to reflect that she and Jim Savitt were in attendance at the June 20 th meeting. The June 20 th, 2017 meeting minutes were approved by acclamation as amended. II. III. Announcements and Community Comments Chris Scott reminded the Council that voting for the open PDA Constituency seat is taking place tonight and Friday from 9-5. Reports & Discussion Items A. Review of the Financial Statements for June 2017 Sabina Proto reviewed the balance sheet and accounts receivable noting a slight decrease from prior month. The Operating Statement was reviewed noting total revenue for end of June is $8.7M that is $286,000 under budget while expenses are under budget by $482,000. The net operating result is $196,072 over budget. The PDA is up to date on debt service, contributions to pension plan, and year-to-date $656,669 has been contributed to reserves. Sabina Proto continued to discuss the footnotes, highlighting that commercial is over budget but residential and daystall revenues are under budget. Surface revenue is slightly over budget but Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

4 garage revenue is $431,053 under budget as well as events revenue. Overall expenses are under budget year-to-date. The percent rent report showed $129,000 over budget. Ray Ishii asked why the capital reserve fund was ahead of budget and Sabina Proto responded that we have performed better year-to-date therefore more funds are being contributed according to the trends. Ray Ishii also asked if the investment earnings stayed in the capital reserve funds or do they transfer into general operating expenses. Sabina Proto responded that capital reserve investment earnings stay in the capital reserve funds. Ann Magnano asked which surface lots are still operated by the PDA and how are they doing compared to three years ago? Ben Franz-Knight answered the PDA operates the Lenora and Blanchard surface lots. There was a dip in early 2017 but the surface lots recovered faster than the garage. A conversation continued regarding the parking agreements and percent revenue paid to the city for managing the lots and when those surface lots will be removed from PDA management due to viaduct removal. Ann Magnano asked if there was room to renegotiate with the city due to improvements made by the PDA to those lots. i. Checking Account Activity Report Sabina Proto handed the Checking Account Activity Report to Karin Moughamer. B. Discrete Component Units Reporting for 2 nd Quarter Sabina Proto started by outlining the discrete component units which are made up of LaSalle Senior Housing, Pike Place Market QB2, Pike Place Market QB3, and Western Avenue Senior Housing (WASH). The financial statements for each of these organizations was presented noting the quarterly reporting requirements for Low Income HUD Tax Credit and New Market Tax Credit. Proto stated there were no issues with reporting and the PDA submitted them on time. C. Proposed Revisions to 2017 PDA Budget Ben Franz-Knight started by noting that 2017 revenue continues to grow, but not at the same rate as prior years. Garage revenue is well below budget projections, therefore, expense reductions are required to maintain contributions to the Capital Reserve and Replacement Fund and align current and future PDA expenses with actual and projected revenue. Franz-Knight continued by comparing revenue and expenses for January June, A positive note is that garage revenue is improving, comparing July 2016 to July 2017, with a 12.05% increase. Revenue projections were outlined, including: Increase in Commercial Revenue $50,000 Increase Residential Revenue $47,000 Decrease Garage Revenue $680,000 Decrease Event Revenue $88,000 Increase Miscellaneous Revenue $45,000

5 Total Revenue Adjustment: decrease $625,608 from $19,447,222 to $18,821,614 Expense reductions were outlined, including: Non-operational staff reductions of $157,247 Reduction in Garage credit card/bank fees of $36,000 Reduce Marketing expenditures through year-end by $64,000 Insurance premium savings following competitive renewal of $38,000 Eliminate community transit subsidy program totaling $60,000 Market Foundation non-essential program reductions totaling $52,000, the majority is for the resident nurse outreach program, which may come back in Total Expenses Reduction: $387,247 from $14,816,004 to $14,428,757 Franz-Knight concluded by stating that Capital Projects spending will be reduced by $300,000 and total projected CRRF at year end will be reduced by $238,361 to $2,121,027. The presentation ended and he opened the floor for questions. David Ghoddousi asked if the term architect expenditure would be reduced for the remainder of Ben Franz-Knight said that roughly $20-30,000 would be spent but not the entire lineitem. Ann Magnano asked for clarification on what non-operational staff means. Colleen Bowman noted a discrepancy in the total for expense reductions. It should be $407,247, the $20,000 difference is noted in increase in residential expenses, reflected on Exhibit A to Proposed Resolution Alternative budget adjustments were presented but it was stressed that they are not recommended. Proposed Resolution 17-38: Approval of Mid-Year Adjustments to 2017 PDA Operating and Capital Projects Budgets Ben Franz-Knight introduced proposed resolution which states that: WHEREAS, the PDA is a public corporation responsible for the efficient development and operation of the Market and for the effective provision of services designed to preserve and promote the economic health of the Market and its tenants consistent with the Urban Renewal Plan, the Historic District Ordinance and Guidelines, the PDA Charter, deed restrictions, and other City and State ordinances and laws; and, WHEREAS, as a public corporation, the PDA operates on a non-profit basis, where any excess of revenues over expenditures is reinvested in the Market; and, WHEREAS, the PDA desires to communicate to the Market community and the public the bases for its financial, operational and other policy and program decisions; and,

6 IV. WHEREAS, except for HUD contract rents, the PDA s operations are not subsidized by public funds and rely on rental and miscellaneous income for its total operating and capital revenues; and, WHEREAS, the PDA Council approved resolution adopting the 2017 Operating and Capital budgets; and, WHEREAS, overall revenue continues to grow but at decreased rate of increase over the last five years and revenues for the first two quarters of 2017 have been below projections including garage revenue which was impacted by multiple factors; and, WHEREAS, the PDA has a responsibility to manage and operate the Market in a manner that insures prudent allocation of resources to support ongoing necessary reinvestment in Market maintenance, repairs and upkeep; and, WHEREAS, the PDA has carefully tracked actual performance year-to-date, reviewed revenue trends, analyzed expenses and developed a plan for mid-year budget adjustments that realize savings without changes to operations or critical programs; and, NOW, THEREFORE, BE IT RESOLVED, that the PDA Council does hereby approve mid-year budget adjustments to the 2017 PDA Operating and Capital Budgets as outlined in the 2017 PDA Operating Budget Mid-Year Adjustments attached hereto as Exhibit A. Ann Magnano moved the proposed resolution and David Ghoddousi seconded the motion. Patrice Barrentine asked for clarification of Market Foundation cuts, wondering if those are directly tied to services. Ben Franz-Knight responded that PDA supports the work of the PDA through a services agreement. These cuts are salary and direct program costs. Patrice Barrentine encouraged the PDA to look for ways to make the relationship less complicated and to find a way to build and strengthen the financial relationship. This will continue to be discussed during the 2018 budget process. Patrice Barrentine and David Ghoddousi recognized the difficulty in making cuts and appreciates the tough work being done to make budgetary changes. Ann Magnano asked if Daystall rules were reduced, would there be any costs savings. Ben Franz- Knight stated in theory any deregulation would free up resources on management, how much he s unsure. For: Ann Magnano, David Ghoddousi, Ray Ishii, Patrice Barrentine, and Gloria Skouge Against: 0 Abstain: 0 Proposed Resolution passed by a vote of Action Items A. Proposed Resolution 17-35: Additional MarketFront Tenant Improvement Funds Indi Chocolate

7 Ben Franz-Knight introduced proposed resolution which states that: WHEREAS, Pike Place Market Preservation and Development Authority ( PPMPDA ) was chartered by the City of Seattle pursuant to RCW et. seq with the mission of performing renewal, rehabilitation, preservation, restoration, development, and nonprofit management of structures and open spaces in a manner that will initiate programs to expand food retailing; to promote the survival and predominance of small shops, marginal businesses, thrift shops, arts and crafts, other enterprises, activities and services which are essential to the functioning of the Public Market; and, WHEREAS, the Tenant Improvement plans for the Indi Chocolate space were approved and bid prior to the design build installation of the common area HVAC system located within the main hall of the MarketFront building in which the installation of the common area HVAC system hydronic loop connections and electrical panel were required to be in the Indi Chocolate space due to limited wall space within the project; and, WHEREAS, the Tenant incurred additional fees as a result of redesigning and permitting required for additional walls, reconfiguration and relocation of equipment and core drill work as a result of the common area HVAC system installation in the amount of $22,795; and, WHEREAS, the Tenant, as a condition of the Lease, was required to install its own electrical meter and has paid for this installation, but incurred additional fees from the City of Seattle as a result of the Landlord building outage to energize the meter in the amount of $3,921; and, WHEREAS, the Landlord and Tenant shall enter into a Lease Amendment for the additional Tenant Improvement funds in the total amount of $26,716 due to the unexpected additional expenses incurred by the Tenant due to building and site complexity; and, NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to reimburse Indi Chocolate for additional Tenant Improvement expenses not to exceed $26,716 with the funds coming out of MarketFront Tenant Improvement Funds GL Patrice Barrentine moved the proposed resolution and Ann Magnano seconded the motion. David Ghoddousi asked if the building complexity was caused by Indi Chocolate or by the PDA. Ben Franz-Knight responded it was due to changes determined by the PDA during design and construction. For: Ann Magnano, David Ghoddousi, Ray Ishii, Patrice Barrentine, and Gloria Skouge Against: 0 Abstain: 0 Proposed Resolution passed by a vote of B. Proposed Resolution 17-36: Authorization for Contract Authority Fairly Climacool Compressor Replacement Brady Morrison introduced proposed resolution which states that:

8 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, WHEREAS, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined that the Fairly Climacool module 1 compressor 2 (M1C2) and module 2 compressor 2 (M2C2) have reached the end of their life cycle due to their non-function status and need to be replaced; and, WHEREAS, the PPMPDA has executed a bid to replace two (2) compressors. NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with ACCO Engineered Systems, in an amount not to exceed $13, for the execution of work necessary to accomplish scope. The funds for this project will be drawn from the Capital Inventory Budget, PDA Capital Inventory HVAC. Ann Magnano moved the proposed resolution and David Ghoddousi seconded the motion. Ann Magnano asked the location of the units. Brady Morrison stated they are near the child care center. Ray Ishii asked if this schedule was in-line with the replacement schedule. Brady Morrison said it was in line with the expected life and provided an overview of how the system operates. A conversation continued on their current operational status and what buildings these units would serve. For: Ann Magnano, David Ghoddousi, Ray Ishii, Patrice Barrentine, and Gloria Skouge Against: 0 Abstain: 0 Proposed Resolution passed by a vote of V. Property Management A. Residential Property Management Report Ben Franz-Knight presented that overall vacancies are slightly higher and management is working hard to turn over residential vacancies. Continue to monitor ongoing changes in city legislation relating to the ability to screen rental applicants. Revenue for events department is below budget for the year. Ray Ishii asked how residential revenue was going to increase (according to the budget revision report) with an increased vacancy rate. Ben Franz-Knight responded that the revenue increase

9 was directly related the new HUD subsidy for Stewart House. In addition older units that are now vacant are undergoing renovations that are taking longer to complete. VI. Public Comment Mary T. Andrews provided an overview of her relationship with the Pike Place Market community and invited the Council to a meeting July 26, 2017 to discuss the naming process for Western Housing. The meeting will be held at 8 th Generation in the Busted Knuckle Gallery. VII. Closed Session The Committee Chair stated that the committee would go into closed session at 5:12 p.m. to discuss the property management report and return into open session at approximately 5:27 p.m. The committee entered into closed session at 5:14 p.m. A. Property Management Report - Closed Session (RCW [c]) B. Review of Lease Proposals i. Lease Renewal Cedar River Group, LLC, 93 Pike Street #315 ii. Lease Renewal Lungu Gifts, 1906 Pike Place #7 C. Review of Delinquency Report i. Vacancy Report ii. Current Lease Negotiations The committee entered into open session at 5:34 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 A. Proposed Resolution 17-37: Lease Proposals July 2017 Matt Holland introduced the lease proposals which included the following businesses: Tenant Term Start Date Cedar River Group, LLC Three (3) Years August 1, 2017 John Howell Lungu Gifts Three (3) Years August 1, 2017 Philip Kwara Patrice Barrentine moved the proposed resolution and Ann Magnano seconded the motion. For: Ann Magnano, David Ghoddousi, Ray Ishii, Patrice Barrentine, and Gloria Skouge Against: 0 Abstain: 0

10 Proposed Resolution passed by a vote of IX. Resolutions to be added to the Consent Agenda Proposed Resolution 17-35: Additional MarketFront Tenant Improvement Funds Indi Chocolate Proposed Resolution 17-36: Authorization for Contract Authority Fairly Climacool Compressor Replacement Proposed Resolution 17-37: Lease Proposals July 2017 Ben Franz-Knight recommended Proposed Resolution be discussed at Executive Committee and allow Council Chair Matt Hanna to decide whether or not to add it to Consent Agenda. X. Concerns of Committee Members Ann Magnano asked the Council to review the process for how current councilmembers are assigned to committees and how chairs and vice-chairs are selected. XI. Adjournment The meeting was adjourned at 5:36 p.m. by Ray Ishii, Chair Meeting minutes submitted by: Karin Moughamer, Executive Administrator

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20 2018 Budget Review and Approval Schedule Date / Time / Location Participants Activity Tuesday 8/22 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. Monday 9/11 4:30 PM- 5:30 PM The Classroom PDA Staff & Community Community Budget Meeting PDA staff will give an overview of 2018 programs, discuss the opportunities and challenges that will effect the 2018 budget, and hear the public's ideas and comments on Market needs that effect the budget. Tuesday 9/19 3:00 PM- 6:00 PM The Classroom Finance and Asset Management Committee & Staff PDA Finance and Asset Management Committee Regular Meeting Presentation of 2018 Proposed Final Budget. Wednesday 9/27 4:30 PM - 5:30 PM Elliott Bay Room 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 2018 Budget as presented to the FAM Committee on 9/19/17. Committee will also hold public hearing for tenants and public to ask questions, make comments, or offer suggestions on 2018 Proposed Budget. Tuesday 10/17 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 2018 Proposed Budget; Committee adopts final recommended 2018 Budget and Budget resolutions for consideration by Full Council. Thursday 10/26 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 2018 Final Budget. Section I

21 PROPOSED RESOLUTION Authorization for Contract Authority Replace North Arcade and Desimone Bridge Roofs August 2017 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 both North Arcade and Desimone Bridge roofs are at the end of their useful life cycle, and are on the 30 Year Capital Needs Assessment for replacement; and, the PPMPDA has executed a bid process to replace the North Arcade and Desimone Bridge roofs; and, OW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Cobra Roofing, in an amount not to exceed $407,299.54, for the purpose of replacing both roofs. The funds for this project will be drawn from the Capital Projects COMNAR GL Gloria Skouge, 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

22 Proposed Resolution Authorization for Contract Authority Replace North Arcade and Desimone Bridge Roofs August 2017 Proposed Resolution Costs: $407, Current Budget: $500,000 Project: Account: Replace North Arcade and Desimone Bridge Roofs Capital Projects Accounting Code: Project Description: Scope: Bid Process: Replace North Arcade Metal roof and Desimone Bridge roofs with a 20 year warrantied roof system The purpose of this project is to install new roofing systems on the North Arcade and Desimone Bridge. Project was advertised in the Daily Journal of Commerce for one week o Cobra Roofing $369,936 ($407, with 10% Contingency) o Cadence $412, o NW Roofing Unresponsive o Snyder Roofing Unresponsive o SSI Construction Unresponsive

23 PROPOSED RESOLUTION Authorization for Contract Authority Install Commercial Storage Units in MarketFront Garage August 2017 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 Storage Area in the MarketFront Garage has the room to install Secure Commercial Storage Units; and, the PPMPDA has executed a bid process to install storage units in the Storage Room; and, NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Engineered Products in an amount not to exceed $16, for the purpose of installing storage units. The funds for this project will be drawn from the MarketFront Post Construction COMMAR GL Gloria Skouge, 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

24 Proposed Resolution Authorization for Contract Authority Install Commercial Storage Units in MarketFront Garage August 2017 Proposed Resolution Costs: $16, Current Budget: $20,000 Project: Account: Install Commercial Storage Units Capital Projects Accounting Code: Project Description: Scope: Bid Process: Install four (4) commercial storage units, for a total of 908 sq. ft. in the MarketFront Garage Storage Room. The purpose of this project is to install new commercial storage units for the tenants in the MarketFront Building. Bid process: Solicited four bids received three o Engineered Products $14, ($16, with 10% Contingency) o Easyup Storage Systems $14, o All Fence Co. $16, o Alpine Fence Unresponsive

25 PROPOSED RESOLUTION Authorization for Contract Authority MarketFront Walk-In Cooler August 2017 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 commercial viability of the MarketFront, the PPMPDA has determined the installation of a commercial walk-in cooler is vital to the success of its tenants and internal departments. This unit will be available for lease to all commercial vendors needing it for their operations. Additionally, the PPM Farm Program will be using parts of it for their community programs; and, the PPMPDA has executed a competitive bid process to perform the necessary scope to install a walk-in cooler on the 4 th floor of the MarketFront garage; and, NOW, THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Mobile Cooler Rentals Inc. in an amount not to exceed $49,213 for the execution of work necessary to accomplish scope. The funds for this project will be drawn from the Capital Projects Budget, 2016 Market Front Post Construction, GL Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Opposed: Abstained: Pike Place Market Preservation & Development Authority (PDA) info@pikeplacemarket.org pikeplacemarket.org P: F: Pike Street, Room 500 Seattle, WA 98101

26 Project Support Information Account: Project: Project Scope: MarketFront Commercial Walk-in Cooler Execution of all necessary supervision and installation scope needed for the erection of new walk-in cooler on the 4 th floor parking of MarketFront. Proposed Schedule: September 2017 Project Support: Bid Process: MarketFront does not have walk-in cooler for its commercial tenants Proposed unit will be 430 sf in size located on the 4 th floor of the MarketFront parking garage. Proposed cooler to become a shared leased facility to commercial tenants and PDA s own Farm Program. The PDA has several coolers leased to commercial tenants throughout other buildings in the market. Five (5) Contractors were solicited. Three (3) Contractors responded with qualified bid. Mobile Cooler Rentals: $42,794 ($49,213 w/ Taxes and 15% Contingency) Horeco: $46,340 Dick s Restaurant Supply: $48,804 Hoover Commercial Refrigeration Commercial Refrigeration: Declined Eastside Ice Machines: Unresponsive

27 PROPOSED RESOLUTION Employee Medical and Dental Coverage August 2017 NOW, THEREFORE, BE IT RESOLVED, that the PDA Council authorizes the PDA Executive Director or his designee, to enter into contracts with Regence BlueShield for employee medical coverage, SunLife Insurance for employee life insurance and Washington Dental Service for employee dental coverage for policy year in the amount not to exceed $889,000. Medical Coverage $790,000 Life Insurance $55,000 Dental $44,000 $889,000 A cushion to account for a flux in number of employees was taken into account. Gloria Skouge, 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 Residential Property Update Report August, 2017 Some improvement on turn over with eight (8) move-ins during August, however vacancies continue above projected 3%. Focus is on turning over Section 8 units as quickly as possible (greatest rent). The lagging turnover in Livingston Baker will show improvement at the end of August. Highlights Three resident summer picnics were hosted by staff and WAVE (a Cable TV provider) at Western Avenue/Lasalle, Market House/Sanitary Market and Stewart House/Livingston Baker.

29 Page 2 Livingston Baker Notice sent to all residents that remaining HUD regulations on rent and income limits for the building will expire this fall. Potential to increase rent but propose to keep at rates considered low-income/affordable for Seattle (60 to 80% of AMI). This will not affect rents for tenants with Section 8 subsidies. We will provide special consideration for three tenants who have lived in the building over 10 years paying the lower rent limits without subsidies. Western Avenue Senior Housing Have received, unpacked and distributed most of the new furnishings and equipment paid for by the generous grant from Boeing Employees. With the volume of new equipment, we needed all hands in the residential department to help out. The funding provides microwaves for every unit, and inventory of bedbug resident furniture for resident use, general building equipment and new furnishings for outdoor decks and patios. Garbage services have begun with activation of new utility billing account (finally). Work is also underway to improve functionality of shared elevator use with the garage. Working with a couple of tenants who will be leaving the building in the next month and making units ready for quick turnover to new residents on the waiting list. Stewart House Continue to operate with staff fill-in for manager on family leave. Have reinforced efforts on pest control with a couple chronic and acute infestations, requiring extraordinary effort by pest service staff and PDA staff as well. HUD approved rent increase for Stewart House effective this fall. Staff training Fair Housing Workshops scheduled for this fall i:\executive directors\017 ed & admin\committees\finance and asset management\08\asset management august 2017.docx

30 Page 3 Programs and Events Bookings tapering off expect little more than current reservations through end of year, as reflected in revised budget. i:\executive directors\017 ed & admin\committees\finance and asset management\08\asset management august 2017.docx

31 PROPOSED RESOLUTION License Agreements AUGUST 2017 Tenant Term Start Date Chief Seattle Club One (1) Year September 1, 2017 (Colleen Echohawk) Gloria Skouge, 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

32 PROPOSED RESOLUTION Lease Proposals AUGUST 2017 Tenant Term Start Date The Drink Den One (1) Year September 15, 2017 Anita Apte Elford Brooke Westlund Studio & Gallery Five (5) Years September 1, 2017 Brooke Westlund El Mercado Latino Five (5) Years September 1, 2017 Jilasco, LLC (Marie Luisa Bicierro) Raven s Nest Treasures Five (5) Years September 1, 2017 Matthew Steinbrueck Pure Food Fish Ten (10) Years September 1, 2017 Solomon Amon, Inc. (Solomon Amon) Gloria Skouge, 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

33 Lease Summary Date: August 16, 2017 Business Name/Owner: Address/Building/Square feet: Tenant Since: Primary Term: Options: Use Description: The Drink Den / Anita Anu Apte Elford 1516 Western Ave / Fairley / 447 sf New Tenant One (1) Year Two (2) Years Retail shop specializing in, but not limited to, the sale of artisan bar tools, drinkware, supplies/utensils and nonalcoholic potables (i.e., bitters, mixers and spice blends) and Mixology classes. Business Name/Owner: Brooke Westlund Studio & Gallery / Brooke Westlund Address/Building/Square feet: 1514 Western Ave / Fairley / 380 sf Tenant Since: Since 2011 Primary Term: Five (5) Years Options: N/A Use Description: Art studio and gallery featuring the work of Brooke Westlund and other local artists. Business Name/Owner: El Mercado Latino / Jilasco LLC (Marie Luisa Bicierro) Address/Building/Square feet: 1514 Pike Place #5 / Sanitary / 560 sf Tenant Since: Since 1999 Primary Term: Five (5) Years Options: N/A Use Description: Latin grocery store Business Name/Owner: Raven s Nest Treasures / Matthew Steinbrueck Address/Building/Square feet: 85 B Pike Place / LaSalle / 980 sf Tenant Since: Since 1989 Primary Term: Five (5) Years Options: N/A Use Description: NW Indian Art New and used. Costume jewelry, loose gem stones and antiques Business Name/Owner: Pure Food Fish / Soloman Amon, Inc. (Soloman Amon) Address/Building/Square feet: 1515 Pike Place / Fairley / 807 sf Tenant Since: Since 1979 Primary Term: Ten (10) Years Options: Five (5) Years Use Description: Retail and wholesale fish shop (fresh, smoked, canned, salted, cured, boxed and live), packing and shipping of fish; sauces and spices pertaining to seafood.