PRHSPSC PKT 02-23-1998City of Fcderal Way
CITY COUNCIL
PARKS, RECREATION, IITB .IC SAFE'L'Y ANI)11Ui*IAN SERVICES COMMITTEE
Monday, I cbmary 23, 1998
12:00 p.m.
AGENDA
City I Tall
Administration Conference Room
1.
CALL TO ORDER
2.
PUBLIC FORUM
3.
COMMISSION COMMENTS
4.
APPROVAL OF FEBRUARY 9, 1998 SUMMARY
5.
CONMTTEE BUSINESS
A. Lake Grove Park Project Acceptance
Action
Jainga
B. Mark Twain Elementary Project Acceptance
Action
Jainga
C. Wireless Communications Lease/BPA Trail
Action
Schroder
D. Wireless Communications Lease/Lakota Park
Action
Schroder
E. Celebration Park Flag Pole
Action
Wilbrecht
F. Youth Commission Work Plan
Action
Reuter
G. Parks and Recreation Commission By -Laws
Action
Wilbrecht
Revision/Increase Membership
H. Parks and Recreation Commission Work Plan
Action
Wilbrecht
I. Department Overviews
I. Parks, Recreation & Cultural Services
Information
Schroder
II. Neighborhood Development
Information
Swan
6.
NEXT MEETING - March 9, 1998
7.
ADJOURNMENT
Committee Members: Staff:
Jack Dovey, Chair Jennifer Schroder, Director
Jeanne Burbidge Sue Floyd, Administrative Assistant
Linda Kochmar 661-4041
City of Federal Way
PARKS AND RECREATION COUNCIL COMMITTEE
Monday, February 9, 1998 City Hall
12:00 p.m. Council Chambers
SUMMARY
In attendance: Council Committee chair Jack Dovey; committee members Jeanne Burbidge, Linda Kochmar
Staff members: Jennifer Schroder, Director of Parks, Recreation and Cultural Services; David
Wilbrecht, Deputy Director; Ron Wood, Director of Public Safety; Bonnie Lindstrom, Assistant
City Attorney; Greg Moore, Director of Community Development Services; Ed Swan,
Neighborhood Development Specialist; Ann Guenther, Human Services Manager; Pat Talton,
CDBG Coordinator; Linda Crum, Administrative Assistant/Public Safety; Sue Floyd,
Administrative Assistant
Guests: Linda Coile, Nextel Communications; Barbara Reid, Sean McCarthy, Lisa Welch
Chair Dovey called the meeting to order at 12:07 p.m.
PUBLIC COMMENT
None
COMMISSION COMMENTS
None
COMMITTEE STRUCTURE
Chair Dovey briefed the committee, staff and audience on the structure of the committee. The committee will meet
twice monthly, the second and fourth Mondays at noon; meetings will be kept to approximately one hour. The first
meeting of the month is intended to be Human Services/Public Safety oriented, with the second meeting Parks and
Recreation oriented.
BUSINESS ITEMS
NEXTEL COMMUNICATIONS
Per Council Committee direction, staff began negotiating with Nextel Communications for a telecommunications
facility at Sacajawea Park on October 13. Nextel's proposal involves leasing two existing light standards and the
vacant concessions building. Ms. Schroder displayed a photo simulation of Sacajawea as proposed by Nextel. Staff
is continuing to negotiate the lease in regards to the term and rental fee. The equipment would be installed under the
lights on the existing pole. Nextel shall have the right to draw electricity from the existing utilities be means of
installing an electrical deduct meter. This would be a benefit, as it would not cause the asphalt or landscape to be cut.
The City can direct Nextel to obtain their own power at a future date. A question arose as to whether the installation
of a telecommunications facility would interfere with local hamm radio operators. Ms. Coile responded that the FCC
requires that there be no interference with local operators. Mr. Dovey inquired about Nextel's plans to secure the
concessions building against vandalism. Ms. Coile responded that there will be an alarm system in place on the leased
areas; however, they will not be installing a fence around the building. Nextel will be responsible for their leased
areas, which are covered under the general liability clause of the draft agreement. Ms. Lindstrom noted that if Nextel
is negligent, the City of Federal Way will be held harmless. Mr. Dovey would like to see all revenues derived from
the lease remain in the Parks and Recreation budget, not the general fund.
Parks, Recreation, Human Services and Public Safety Council Committee Page Two
February 9, 1998 Summary
JEANNE BURBIDGE MOVED, LINDA KOCHMAR SECONDED A MOTION TO APPROVE THE DRAFT
AGREEMENT WITH NEXTEL COMMUNICATIONS AS PRESENTED AND FORWARD TO FULL COUNCIL FOR
APPROVAL. MOTION PASSED.
JACK DOVEY MOVED, JEANNE BURBIDGE SECONDED A MOTION TO AMEND THE MOTION TO INCLUDE
THAT REVENUES DERIVED FROM THE LEASE REMAIN IN THE PARKS AND RECREATION BUDGET AND
NOT THE GENERAL FUND. MOTION PASSED.
:u ♦su ► • •CII►: /, .lu • :� II s ':C u ►
agendaThis item was pulled.
HOUSING AND COMMUNITY DEVELOPMENT PLAN
The proposed changes to the 1996 Housing and Community Development Plan/Four Year Strategies was previously
distributed with the agenda packet. Human Services staff recommended, and the Human Services Commission approved,
the changes to update strategies. The City has a yearly option to change the strategies or have them remain as written.
Changes are due to King County by April 1, 1998. The strategies were initially established in 1994, and were
recommended by King County staff that it be for a four year period. However, Human Services staff realized that the
strategies may not be met within a four year period, so that term has been deleted for flexibility. JEANNE BURBIDGE
MOVED, LINDA KOCHMAR SECONDED A MOTION TO APPROVE THE STRATEGIES AS PRESENTED BY
STAFF AND FORWARD TO FULL COUNCIL. MOTION PASSED.
VANDAL-ISM/LAKE GROVE SPORTS FIELD
Mr. Dovey noted that there was some vandalism done at the Lake Grove sports fields ; someone had driven their vehicle
onto the fields and tore them up. Mr. Dovey would like staff to investigate why the gate was not locked. Ms. Lindstrom
informed the committee that there is a reckless driving RCW; however, if a police officer does not witness the reckless
driving, the person(s) cannot be charged with the crime. Ms. Schroder will work with the School District to ensure the
field is locked and report back to the committee.
NEXT MEETING
February 23, 1998
ADJOURNMENT
The meeting adjourned at 12:30 p.m.
Item 5A
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 17, 1998
From: Jon Jainga, Park Planning and Development Manager
Subject: Final Acceptance for the Lake Grove Ballfield Renovation
Background:
On May 20, 1997, the Federal Way City Council awarded the Lake Grove Ballfield renovation project
to Ohana Nursery for $183,669.45. The project scope involved the reconstruction and upgrading of
the existing sports field at Lake Grove Elementary School. The project included two 200 foot
baseball/softball fields, with an overlapping youth soccer field, underground drainage and irrigation
systems, new back stops and dugouts, new warning track fencing, and installation of a new retaining
wall. The City selected to upgrade the field seeding to sod field installation.
The final project amount was $207,662.38. The budgeted amount was $240,000. The project is
complete and within budget.
Committee Recommendation:
Motion to approve acceptance of the construction contract with Ohana Nursery for the Lake Grove
ballfield renovation project.
APPROVAL OF COMMITTEE REPORT:
Committee Chair Committee Member Committee Member
G:\CLERK\CMTE.REC 3/11/96
Item 5B
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 17, 1998
From: Jon Jainga, Park Planning and Development Manager
Subject: Final Acceptance Mark Twain Field Improvement 97-111
Background:
On August 1, 1995, the Federal Way City Council approved the 1995 CDBG reallocation of Harry
S. Truman High School ballfield project to the Mark Twain Field Improvement project. This
approved $144,348 from the CDBG reallocation. Buckley Nursery was the lowest responsible,
responsive contractor and was awarded the bid for $134,294.20.
Buckley Nursery's scope of work included installing an underground irrigation system, retaining wall,
new subsurface soil mix, and coordinated the installation of sod through community volunteers. The
project also improved the accessibility to the field.
The project is complete and within budget. The final project amount is 134,294.20 and is under the
budgeted amount of 144,348. The project was accepted on February 13, 1998.
Committee Recommendation:
Motion to approve acceptance of the construction contract with Buckley Nursery for the Mark Twain
ballfield renovation project.
APPROVAL OF COMMITTEE .REPORT:
Committee Chair Committee Member Committee Member
G:\CLERK\CMTE.REC 3/11/96
Item 5C
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 17, 1998
From: Jennifer L. Schroder, Director
Parks, Recreation and Cultural Services Department
Subject: Wireless Telecommunications Facility at BPA Trail
Background:
Western Wireless has submitted a proposal for an access and utility easement within the BPA Phase
I Trail section for the purpose of supporting a proposed telecommunications facility attached to a
Bonneville Power Administration tower. Western Wireless has stated that they have a master lease
agreement with BPA to locate telecommunication facilities to their existing towers along the BPA
corridor.
The proposal to the City is necessary to locate a utility cabinet to house the necessary equipment to
operate a telecom facility. Per the City's code, the BPA Trail is the number one prioritized site for
locating wireless service facilities.
Committee Options:
1. Motion to direct staff to negotiate an access and utility easement at the BPA Trail _with
Western Wireless.
2. Motion to direct staff to negotiate a lease agreement with Western Wireless for a wireless
telecommunications facility at the BPA Trail.
APPROVAL OF COMMITTEE REPORT: Option No.
Committee Chair Committee Member Committee Member
Item 5D
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 17, 1998
From: Jennifer L. Schroder, Director
Parks, Recreation and Cultural Services Department
Subject: Wireless Telecommunications Facility at Lakota Park
Background:
US West Communications has submitted a proposal to lease a small portion of property at Lakota
Park for the purpose of a wireless telecommunication site. Two scenarios are possible to consider
for this location:
a) Replace existing light standard
b) Installation of a flag pole antenna site
The attached exhibits show the flag pole and light standard detail options.
Committee Options:
1. Motion to direct staff to negotiate a lease agreement with US West for a telecommunications
facility at Lakota Park.
2. Motion to disapprove a telecommunications facility at Lakota Park.
APPROVAL OF commiTTEE REPORT: Option No.
Committee Chair Committee Member CommitteeMember
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Issue 2
PCS Cell Site Design Standards
February 28, 1997
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COMMUNICATIONS - WIRELESS
12121 Grant St., Rm 201 Thornton, CO 80241
February 21, 1998
4o Al�-
Parks and Recreation Committee:`S
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am sorry that I am unable to z (�
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MAD A
Our neighborhood, Wedgewo( TOMB..
recently to fund a portion of Wedgev t,1v_k,
the letter attached, we have been we —
first meeting s were in the earl Fall Y c6621]3®RPG.Inc.
discouraged when Wedgewood Park, iu„y
Council in the summer of 1996, was not funded, we are now encouraged by
the recent action taken to start developing it. We have a strong base of
neighborhood support, as shown by the representative number of people who
helped at our most recent work party to obtain matching grant money, and we
look forward to a strong partnership with the City in the future of Wedgewood
Park.
This year our neighborhood's goal is to see Wedgewood Park receive
funding to complete the design which was previously approved, and we again
request your assistance in this. As I noted before, the Wedgewood
Neighborhood Park Plan, Option 1-A, was approved by the Federal Way City
Council in the summer of 1996.
Thank you for your assistance in this purpose.
Sincerely,
Cindy Berht
3945 SW 336th Place
Federal Way, WA 98023
CITY OF G
33530 IST WAY SOUTH
June 18, 1996
Dear Neighborhood Resident:
(206) 661-4000
FEDERAL WAY, WA 98003-6210
On June 6, 1996, I presented the three proposed Wedgewood Park designs to the Parks and
Commission for discussion on future action. The Parks and Recreation Commission forwarded
a recommendation for Wedgewood Park design I with the gravel paths to the Parks and
Recreation Council Committee on June 17.
During the June 17 meeting of the- Parks and Recreation Council Committee, Wedgewood
Neighborhood Park Plan, Option I -A was approved and forward to Council for full approval.
The next City Council meeting will be held on July 2 at 7:00 p.m. and future of Wedgewood
Park will be discussed. Because of the time constraints on public comments limited to two
minutes during the Council meeting, it would be beneficial if the neighborhood had a single
spokesperson with a signed petition to show community support.
Thank you for taking time out of your schedules to attend these meetings and voice your
opinions. Please continue to show your support through your participation as we approach final
approval for your future park.
Sincerely,
Matthew J. Caesar; Intern
Parks, Recreation and Cultural Services
661-4193
Item 5E
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 12, 1998
From: David Wilbrecht, Deputy Director
Parks, Recreation and Cultural Services Department
Subject: Increase the Height of Flag Pole at Celebration Park
Background:
The approved plan for Celebration Park includes four 35 foot flag poles. Three of the poles are to
be placed at the entry of the plaza and are equal distance apart with the center pole aligned with the
center of the entry of the batting plaza. The fourth pole will be placed on the south eastern side of
the concession building at the batting plaza. Attached is copy of the approved drawing. The flag
poles are circled for your review.
During the January 8, 1998 Parks and Recreation Commission meeting, Bob Kellogg suggested and
the Commission approved a motion to recommend to the Parks, Recreation, Human Services and
Public Safety Council Committee to replace one 35 foot pole with a 60 foot ceremonial flag pole with
at 20 x 30 foot flag. The 60 foot pole is estimated to cost an additional $9,000. The Commissin
recommends the additional $9,000 be added to the funding committee requirement for fund raising.
The existing plan for the 35 foot flag poles is within the current zoning requirements for the site.
Increasing the height of one pole 60 feet will require a variance to the code requirement. The request
for a 60 foot pole is consistent with other improvements to the site such as the flood light poles that
are 60 feet. Flood lighting was approved by the Hearing Examiner during the permit process.
Committee Options:
1. Approve the Parks Commission motion to replace one 35 foot flag pole with a 60 foot pole
and install a 20 foot by 30 foot flag as and forward to Council on March 2, 1998.
2. Maintain the flag pole height as approved by the City Council.
3. Table until staff can obtain written approval that a 60 foot pole can be installed in place of the
3 5 foot pole that is included in the current permit.
APPROVAL OF COMMITTEE REPORT: Option No.
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Item 5F
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 17, 1998
From: Kurt Reuter, Athletics and Specialized Services Manage .
Parks, Recreation and Cultural Services Department
Subject: 1998 Youth Commission Work Plan
Background:
The City of Federal Way Youth Commission approved this proposed work plan for 1998 at their
February 12 meeting. It is submitted for Committee approval. The plan includes the following
projects:
1. Youth Forum
2. Federal Way High School Mural
3. Used Book Drive
4. Youth Recognition Night
5. Battle of the Bands (held the Friday night before Family Fest)
6. Web Page(s) layout/design
Committee Recommendation:
1. Approve the 1998 work plan as proposed by the Commission and forward to full Council for
approval on March 2, 1998.
APPROVAL OF COMMITTEE REPORT:
Committee Chair Committee Member Committee Member
Item 5G
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 12, 1998
From: David Wilbrecht, Deputy Director
Parks, Recreation and Cultural Services Department
Subject: Parks and Recreation Commission By -Laws
Background:
The request to increase the Parks and Recreation Commission membership from nine to eleven plus
two alternates was brought to the Parks and Recreation Council Committee in July of 1997. At that
time the committee determined that the question of allowing alternate members to vote affected
several other commissions in the City in addition to the Parks and Recreation Commission. The
committee members agreed to discuss the request.
At the February 5, 1998 Parks and Recreation Commission meeting, commission members reviewed
the 1998 work plan and determined the total work load including Celebration Park was a substantial
amount of work requiring full participation of all members including alternates to serve on important
committees such as the funding committee for Celebration Park. After discussion, a motion to
recommend increasing the commission to eleven members plus two alternates was passed. An
amendment was added to the motion recommending that if the eleven members were granted, the
current alternates be appointed as full members. The motion was approved unanimously.
Committee Recommendation:
1. Approve the motion as proposed by the Parks and Recreation Commission and forward to
frill Council for approval on March 2, 1998,
2. Increase the number of Commissioners to eleven for the 1998 work plan. Review the number
of Commissioners needed to complete the work plan on an annual basis.
3. Maintain Parks Commission members to nine with two alternates.
APPROVAL OF COMMITTEEREPORT:' Option No.
Committee Chair Committee Member Committee Member
Item 5H
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 12, 1998
From: David Wilbrecht, Deputy Director
Parks, Recreation and Cultural Se ices Department
Subject: 1998 Work Plan
Background:
A group of citizens approached the Park and Recreation Commission last February 1997, requesting
an off -leash dog park. During the meeting the Commission approved a motion to request the Council
to include the item in the Commission's 1997 work plan. The Commission also asked the group to
collect additional information to better understand the request.
During the April Parks and Recreation Committee meeting, committee members reviewed the off -
leash dog park request as an information item from the Parks Commission. During the June Parks
and Recreation Council Committee, the committee reviewed the Commission's work plan and revised
the work to included the following items: Celebration Park, Adopt -a -Park and Skate Park. The
Committee indicated the off -leash dog park would be added to the Commission's work plan when
another item of the Commission work plan was completed.
The Commission has completed the Adopt -a -Park information and will forward their final draft to
Council in March. At the Commission's February 1998 meeting, the off -leash dog park group
presented information about other off leash parks in the region, and requested the Commission
include the work in their work plan. The Commission reviewed the request relative to other work
plan items and moved to recommend to the Parks, Recreation, Human Services and Public Safety
Council Committee that the 1998 work plan be restructured to include the following work areas. The
first is Celebration Park. This work includes policy and procedures and funding activities. The
second is citizen oversight for three projects: skate park, Wedgewood Neighborhood Park and off -
leash park.
Committee Recommendation:
1. Approve the revised 1998 work plan as proposed by the Commission and forward to full
Council for approval on March 2, 1998.
2. Approve the 1998 work plan as amended by the Committee and forward to full Council for
approval on March 2, 1998.
APPROVAL OF COMMITTEE REPORT: Option No.
Committee Chair Committee Member Committee Member
Item 5I (I)
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY CONMU TEE
Date: February 12,1998
From: Jennifer L Schroder, Director
Parks, Recreation and Cultural Services Department
Subject: Department Overview and Key Budget Issues for 1999/2000 Biennium
The purpose of this paper is to provide a brief overview of the department's services and responsibilities, the
funding strategy for the department's 1997/98 biennium budget, 1997 year-end department performance, and key
budget issues that staff will present to Council this year in order to prepare the 1999/2000 biennium budget for the
Parks, Recreation and Cultural Services Department.
The mission of the Parks, Recreation and Cultural Services Department is to build a better community
through the provision and stewardship of parks and recreation programs that enrich the lives of our
citizens.
Department Structure:
The Parks, Recreation and Cultural Services (FRCS) Department is made up of four divisions: Administration,
Park Maintenance, Recreation and Cultural Services and Park Planning. Attachment 1 illustrates the department's
areas of programs and staffing.
Fundine:
The department's operating budget funding sources include general fund, fees and charges, grants and donations.
The 1997/1998 PRCS budget was developed on the following strategies:
• Limit general fund subsidy to $2 million for 1997 with a 2% inflation for 1998
• Operate Recreation and Cultural Services at a 40% fee recovery for 1997 and 45% in 1998
• Implement a field usage fee for youth sports
• Discontinue subsidy for the Dumas Bay Centre
• Reduce the Arts Commission funding by $35,000
These budget strategies resulted in a complete reorganization and reduction of the department's staffing levels.
The staffing level reduced from 29.5 in 1996 to 22.0 in 1997. To improve efficiencies and to continue offering
a complete array of recreation programs, services and special events, the Recreation Division, which operated
out of three City facilities, was merged into the Klahanee Lake Community/Senior Center in 1997. Combining staff
into one building has significantly improved administrative support of registration, community center coverage,
daily accounting, as well as responding to the daily volume of inquiries.
The Park Maintenance Division's reduced staffing resulted in prioritizing resources to routine daily maintenance
activities and reduced the amount of resources for project upgrades that staff has typically done each year to raise
the quality of the park system.
Parks, Recreation, Human Services and Public Safety Council Committee Page Two
February 12, 1998
Activities such as annual planting beds, trim mowing, field repairs and community clean-up projects are only a brief
listing of the services reduced Primary maintenance activities performed include mowing, litter control, restroom
maintenance, play ground inspections, reduced level of athletic maintenance, picnics and special event support.
The Park Planning reorganization resulted in a reduction of two Park Planners to one position. The 1997 work plan
was expanded after the reorganization to include two significant projects, Civic Theatre and Celebration Park. To
complete the work plan, it was necessary to contract for additional services such as grant writing and project
management to supplement our available resource. Even though contracting for professional services helps with
completing the work plan, it does not reduce the total number of projects the one planner was responsible to
provide supervision for. Therefore, in addition to the Park Planner, the Director and Deputy Director assumed
additional project management/supervision and grant writing responsibilities in order to support the Planning
Division.
In 1997 the following projects were completed:
Acquired Thompson property
Dumas Bay Centre restroom project
Lake Grove sports field upgrade
Mark Twain sports field upgrade
Klahanee Lake Community/Senior Center renovation
Dumas Bay Centre parking lot bid award
Mirror Lake Neighborhood Park play structure community build project
Skate park master plan and site approval
Civic Theatre project bid award/ground breaking
Celebration Park project bid award/ground breaking
BPA Trail Phase II completed
Heritage Woods Neighborhood Park completed
Dumas Bay Park interpretive sign program installed
Dumas Bay Centre interpretive sign program installed
Lake Killarney construction drawings and permit approved
1997 Year -End Performance Measures:
Performance measures are one tool to evaluate how the reorganization effected our service levels.
Recreation:
Our year-end performance shows that we exceeded our fee recovery mandate of 40% by 5%, and total programs
held increased by 5%. Revenues are not derived solely from classes. Included in these figures are grants,
donations, picnic fees, facility rental fees, athletic programs and field and light usage fees.
As you can see, there is a fluctuation in the number of classes held throughout the last five years.
1997
1996
1995
1994
1993
Classes held
661
626
679
706
665
Revenues
$455,473
$456,292
$419,494
$463,711
$346,726
Expenditures
$1,1012,882
$1,363,227
$1,383,918
$1,344,249
$1,165,658
Recovery
45%
33.5%
30.3%
34.5%
29.7%
FTE
8 1
10.5
1 10.5
11.5
11.5
Our year-end performance shows that we exceeded our fee recovery mandate of 40% by 5%, and total programs
held increased by 5%. Revenues are not derived solely from classes. Included in these figures are grants,
donations, picnic fees, facility rental fees, athletic programs and field and light usage fees.
As you can see, there is a fluctuation in the number of classes held throughout the last five years.
Parks, Recreation, Human Services and Public Safety Council Committee Page Three
Febrduary 12, 1998
In 1994, the Klahanee Lake Community/Senior Center as well as Saghalie Park and School were in their first full
year of operation. In 1995, the department eliminated programming of the class room space in the old fire station
building due to conflicting use between recreation programs and the maintenance operations of the Public Works
and Parks that required complete use of the site's parking for daily operations. In June of 1996 the basement
of the Dumas Bay Centre was remodeled to accommodate two class rooms, increasing our program areas of arts
and crafts , dance and music.
Finally, 1997 program increases are primarily due to continued popularity of our cultural programming offered at
Dumas Bay Centre, as well as increased enrollment in special populations. Overall, the Recreation Division has
continued to evaluate the community's interest for program offerings and has continued to build a consistent
reputation for quality programs.
Park Operations:
To evaluate the performance of Park Operations, it is necessary to develop a Maintenance Management Plan to
define a standard level of maintenance. A Maintenance Management Plan requires a complete inventory of total
assets, including acreage, buildings, play areas, hard surface areas, ball fields and so on. In addition, an agreed
upon level of service needs to be established. For example, a standard of mowing a park twice a week takes more
time than a standard to mow once a week Once a standard of maintenance is applied to the total inventory, a total
accounting of hours necessary to meet the standard can be determined.
In 1997, staff implemented manual accounting work sheets to record daily tasks and time to complete each item.
A committed effort has produced our first year of complete information. Staff will present the developed Park
Maintenance Plan to committee in March and the 1997 actual hours applied to the plan. For the purposes of this
report, the following table shows an historical inventory of key maintenance responsibilities.. The level of service
we are using as our base for measuring outcomes needs to be revisited with Council. The Maintenance
Management Plan is a useful tool to predict budgets for new facilities and identify specifically how our resources
are distributed.
Park Measures:
1997
1996
I 1995
1994
1 1993
1992
1991
Total acres
818
813
813
813
1 790
747
680
Developed parks
21
21
21
19
18
13
12
Athletic fields
13
13
13
10
10
10
10
Restroom
7
7
7
5
5
5
5
Play areas
is
15
15
15
14
11
11
Trails
3 miles
2 miles
2 miles
1 mile
1 mile
1 mile
1 mile
Mowable
acres
200
200
200
200
175
158
156
FTE (Mtc.
Workers
6
8
8
8
8
8
8
Parks, Recreation, Human Services and Public Safety Council Committee
February 12, 1998
Park Planning:
Page Four
Key Budget Issues:
The PRCS Department did receive one-time funding in 1997 and 1998 for support of ongoing programs:
Arts Commission $35,000
Admin I.5 FE (recreation division) $25,000
Elimination of field use fees for youth $11,000
Park Maintenance contracts funding $50,000
Park Maintenance supplies and materials $20,000
On call stand by pay $ 4,000
In addition, on July 2, 1997 we received notice from King County that the senior services funding would be
eliminated ($25,500), but funding for the Korean lunch program would remain ($16,000).
The total unsecured funding for 1999/2000 current level programs and services known to date is $170,500.
The Civic Theatre and Celebration Park will be funded by utility tax and fees generated from the increased
programming capacity of these facilities. Council's direction on the policies of field usage fees and the recreation
recovery will shape the operation budgets of each new program.
Other policy issues staff will bring forward are the following:
• Dumas Bay Centre - should the grounds of the facility remain as part of the enterprise fund?
• Knutzen Family Theatre - should the theatre be accounted for separately or as part of the overall
enterprise fund? And if it is viewed as one total operation, is it council's expectation that the funds
earmarked from the utility tax for the theatre operations would continue through the life of the theatre or
is it the expectation that in keeping with the definition of an enterprise would be phased out over time.
• Dumas Bay Centre - renovation/CIP for plumbing replacement program and guest room upgrades
• Celebration Park - priority use policies, fees and charges
• Knutzen Family Theatre - fees and charges
• CIP - establishment of a grant match fund Often grant opportunity cycles are not succinct with the City's
budget cycles.
1997
1996----
1995
1994
1993
1992
1991
CEP Projects
Completed
7
4
3
1
4
4
2
Planning Projects
Managed
12
6
6
6
7
8
4
Total FTE
I 1
1 2
1 2
1 1
1 1
1 1
0
Key Budget Issues:
The PRCS Department did receive one-time funding in 1997 and 1998 for support of ongoing programs:
Arts Commission $35,000
Admin I.5 FE (recreation division) $25,000
Elimination of field use fees for youth $11,000
Park Maintenance contracts funding $50,000
Park Maintenance supplies and materials $20,000
On call stand by pay $ 4,000
In addition, on July 2, 1997 we received notice from King County that the senior services funding would be
eliminated ($25,500), but funding for the Korean lunch program would remain ($16,000).
The total unsecured funding for 1999/2000 current level programs and services known to date is $170,500.
The Civic Theatre and Celebration Park will be funded by utility tax and fees generated from the increased
programming capacity of these facilities. Council's direction on the policies of field usage fees and the recreation
recovery will shape the operation budgets of each new program.
Other policy issues staff will bring forward are the following:
• Dumas Bay Centre - should the grounds of the facility remain as part of the enterprise fund?
• Knutzen Family Theatre - should the theatre be accounted for separately or as part of the overall
enterprise fund? And if it is viewed as one total operation, is it council's expectation that the funds
earmarked from the utility tax for the theatre operations would continue through the life of the theatre or
is it the expectation that in keeping with the definition of an enterprise would be phased out over time.
• Dumas Bay Centre - renovation/CIP for plumbing replacement program and guest room upgrades
• Celebration Park - priority use policies, fees and charges
• Knutzen Family Theatre - fees and charges
• CIP - establishment of a grant match fund Often grant opportunity cycles are not succinct with the City's
budget cycles.
Parks, Recreation, Human Services and Public Safety Council Committee Page Five
February 12, 1998
Summary
1997 proved to be a year of many changes and at the same time a very full work plan. The performance measures
reviewed in this report show that we met our goals. The success of doing so, I believe, is a result of our staffs
ability to be innovative and very professionally committed to the service provided. In addition, Council's support
of adding $145,000 in one-time funding provided the support needed to continue the level of service we
accomplished in 1997.
Given that the season to begin budget preparation is nearing, we are ready to begin adding these items to your
future agendas. Your comments and direction of what items the committee would like to address first would be
very helpful.
Please let me know if you have any questions regarding the information presented in this memo prior to the
February 23 meeting.
PARKS, RECREATION AND CULTURAL SERVICES
PARKS, RECREATION AND CULTURAL SERVICES
AD,M I.N1STRATION
Jenny Schroder
Parks, Recreation and Cultural Serviccs Director
2.0 I -IT
De partment Total: 24.5 F 13
• Coordinate overall department
• Administer acquisition, development, and grants
• Coord/administer Arts, Parks/Rec & Youth Commissions
• Implement Parks, Recreation & Open Space Comp Plan
• Coordinate interdepartmental issues
RECREATION & CULTURAL
SERVICES
Jenny Schroder
Parks, Remation and Cultural SLMces
Director
10.5 FIT
RECREATION
• Arts Commission programs and
projects
• Klahanee Lake Community/
Senior Center
• Teen Programs
• Athletics Program
• Aquatics
• Arts & Special Events
• Special Populations
• Community Recreation
• Red, White & Blues Festival
• Dumas Bay Centre
• Knutzen Family Theatre
1/7/98
PARK PLANNING DIVISION
Jenny Schroder
Parks, Recreation and Cultural Scrvlccs
Director
I FIT.
• Project management
• Master planning
• Park design
• Grants
• Park land acquisition
• Park land development
• Contract administration
Administrative Assistant lI
Sue Flovd
• Director Support
• Committee/Commission
PARK MAINTENANCE
DIVISION
David Wilbrecht
Puke, Recreation and Cultural Services
Deputy Director
1 t F1'E
MAINTENANCE
• Facilities contracts
• Equipment maintenance
contracts
• Urban forestry
• Turf program
• Athletic field maintenance
• IrTigation
• Landscape maintenance
• Park upgrades
• Signs
• Restroom maintenance
• Fabrication
• Hard surface court maintenance
• Graffiti program
CITY HALL
MAINTENANCE/
OPERATIONS CONTRACTS
Item 5I (II)
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES AND PUBLIC SAFETY COMMITTEE
Date: February 9, 1998
To: Parks, Human Services and Public Safety Council Committee
From: Ed Swan, Neighborhood Development Specialist
Subject: Program Overview and January 1998 Program Update
NEIGHBORHOOD DEVELOPMENT PROGRAM OVERVIEW
Program Description
The Neighborhood Development Program is now about two and a half years old. The program has
evolved to cover three main areas of responsibility: Overall volunteer supervision, inter departmental
and community coordination, and neighborhood organizational development. Each of these areas has
gone through a period of trial and error development to evolve into a now fairly consistent pattern
of operation. A number of achievements have occurred in all three pieces of the program and all
three have some potential opportunities for expansion or new activities.
Volunteer Coordination: Overseeing the City's volunteers is about 10-15% of the activity of the
program. The position helps departments recruit volunteers when requested, makes sure that
volunteer activity and supervision are in compliance with risk management procedures and City
volunteer policy and keeps records of volunteer hours performed and volunteer files. This element
of volunteer coordination refers to regular, ongoing volunteers for the most part, as opposed to
special events such as recruitment for a playground construction day (which are covered under
interdepartmental coordination). Each department provides the direct supervision of their volunteers.
The Neighborhood Development Specialist provides technical assistance and occasional recruitment
assistance to the departments. The program provides $50 for each department to perform their own
individual volunteer recognition and organizes the annual City of Federal Way Volunteer and
Commission Recognition Dinner. The City now receives more than 3500 hours of volunteer
assistance per quarter.
Inter -Departmental and Community Coordination: Helping City Departments with
neighborhood and community involvement or inversely connecting neighborhood requests to
particular City Departments ranges from 25-40% of the activity for the position. This ranges from
simple referral of community members to the appropriate person to organizing special events or
meetings for departments to larger, ongoing interaction between a department and a neighborhood.
Some specific examples of this include recruiting volunteers for the Celebration Park work parties
and the various playground construction days.
Neighborhood Organizational Development: Working with existing neighborhood and community
organizations and helping to develop new groups is about 40-50% of the activity for the position.
There is consistent overlap with interdepartmental projects because the Neighborhood Development
program has consciously used the numerous special projects to create numerous informal networks
of activists in individual neighborhoods. For instance traffic meetings in the Brigadoon
neighborhoods provided the initial captains for the NET (Neighborhood Emergency Team) group
meetings in that area and the NET captains in Brigadoon now provide an informal neighborhood -wide
network of activists. Finally, each year there are usually a number of special projects and
neighborhood issues such as the Village Green green belt or the abandoned cars near Lakota Fire
station that present opportunities to channel neighborhood concern into community involvement in
resolving problems.
Achievements
1995
• Developed initial scope for program
• Developed volunteer policies for the City
• Assisted in public involvement for traffic safety meetings
• Began Olympic View neighborhood organizing
M
• Olympic View Family Center
S Pacific Highway Business Watch, clean up
• Lake Grove Playground Construction Day
• Brigadoon Neighborhood Emergency Preparedness Program (NET)
• Grant Phase of the Westway Revitalization/First Time Home buyer Program
• Revitalization of Dumas Bay community involvement
• Recruitment of volunteers for numerous special events
• Urban Forestry Grant and several Adopt -A -Park projects
1997
• First Annual Volunteer and Commission Recognition
• Implementation of the Westway Revitalization/First Time Home Buyer Program
• Expansion of the NET Program to two new neighborhoods (Lake Grove, Olympic View)
• Implementation of Neighborhood Matching Fund
• Implementation of matching community groups to code enforcement problems
• Recruitment of volunteers for numerous special events
• Mark Twain Ballfield Construction Day
• Mirror Lake Playground Construction Day
• Celebration Park Work Parties
January 1998 Program Update
Neighborhood Association Building
• One NET (Neighborhood Emergency Team) meeting was held.
• Attended a community meeting at the Lakota Fire Hall led by Chief Wood with
citizens concerned about junk cars, traffic, and a number of other issues. This group
of concerned neighbors should be good recruits for the NET program.
• One NET meeting was held.
• Continued liaison between Brigadoon NET groups and the Parks Department
concerning 1998 work on Wedgewood Park.
a Two NET meetings were held
Departmental Liaison
Three work parties for Celebration Park were held. Groups providing volunteers
were the Weyerhaueser WAVES, US West employees, Parks Commission, Rainier
Audubon Society, Twisters Girls Soccer Team, Decatur High School , and
Americorp.
A proposal to the Earthworks organization was successful. They will provide 100
volunteers for Celebration Park work parties on Earth Day.
Public Works
► Recruited Americorp volunteers for a stream clean up project in the Olympic View
green belt.
Volunteers
♦ Continued work on the second annual volunteer and commission member recognition
event. The event is scheduled for Friday, February 27 at 6:00 p.m. at Steel Lake
Presbyterian Church.
Continued placement and referral for court ordered community service volunteers and
other community group and individual requests for volunteer opportunities.
The City received over 13,000 volunteer hours of service in 1997.
CITY OF FEDERAL WAY
MEMORANDUM
Date: February 27, 1998
To: Finance Economic Development and Regional Affairs Committee
From: Iwen Wang, Management Services Director
Subject: Review Budget Policies and Assumptions
Action Required
Review and discuss (1) Budget Policies, and (2) Budget Balancing Strategies, and forward the same to full
Council for consideration and action.
The attached document is divided into these two sections and the areas Council has expressed interest in
reviewing and/or discussing are identified for consideration.
Backeround
Budget Policies:
The City's Budget Policies are established by City Council to ensure the consistent application of
philosophy, practice, and methods in the administration and allocation of the City's resources. They are
important tools internally in establishing order and consistency, and externally in creating confidence in the
bond market as we are a relatively young organization.
These policies were initially established in 1991 and have been reviewed/revised each year as part of the
budget planning process. The review of this section will include a discussion of the four basic municipal
functions; the structure and key elements of the existing policies, and the review of specific areas identified
by the Council.
Budget Balancing Strategies:
The costs to provide municipal services have a tendency to escalate at a pace faster then revenue growth.
Between 1991 to 1995, the City's general fund operating expenditures grew at an average of 9.4% per year
and the revenue growth at 5.5% per year, compared to the 3% inflation rate. Part of the high expenditure
growth rate is attributable to the startup nature during the first few years of cityhood. However, as the City
approached the 1996 Budget, it become apparent that it must control the cost of municipal services so costs
do not outpace revenues.
To ensure our City functions at a sustainable level, a set of revenue increase and cost control strategies
were instituted in 1995 for the 1996 budget year, and further adjustments were made during the 1997/98
Budget. In addition to staff reductions, the strategies called for reduction in funding for the Arts and
Human Services programs and a switch from the cost recovery principle to a total subsidy approach in
funding parks and recreation programs. A number of activities were restored temporarily with one-time
monies. These sections will review existing strategies; review items funded with one-time money, and
review 1996 Council priority in allocating one-time funds.
Next Steps:
1. March 17 Council Committee of the Whole;
If needed, a follow-up FEDRAC discussion at its March 24 (or March 31, if rescheduled) meeting; and
April 7 Council Committee of the Whole;
2. Final adoption on Council mini budget retreat on April 29.
The City's management staff will be available during these discussions for any clarification and to answer
questions.
REVIEW FRAMEWORK
The Four Basic Areas of Municipal Functions
♦ Protection of the public investment, such as infrastructure, rights of way, buildings, park lands
and the like;
♦ Enforcement of laws, codes and ordinances so as to ensure public safety and maintain an
orderly environment in which people can live, work and play;
♦ Inspection of buildings, structures, areas and grounds to ensure conformance to the laws
enacted by the legislative body or dictated by higher authority, which laws promote safety and
the common good;
♦ Mandates which are new requirements leveled on municipalities by higher levels of
government often without accompanying funding
1
REVIEW BUDGET POLICIES
A. Approve Existing Budget Policies
The following sections are frequently referenced during the budget process:
1. Operating Policies
i Fiscal Integrity (Section I.B)
ii Contingent Accounts (Section I.C)
iii Revenue Assumptions (Section I.D)
iv Service Fees (Section I.K)
2. Capital
i Fiscal Policy (Section II.A)
ii Debt Policy (Section II.B)
iii Criteria for Determining Project Priority (Section II.C.5.e)
B. Review Areas of Council Interest
1. CM Contingency Level
2. Fees, Program Revenues, and General Fund Subsidies
3. Managing Major Building/Facility Repair and Rehabilitation Needs
2
March 3, 1998 Existing Budget Policies
L OPERATING BUDGET
A. OVERALL
1. The budget should be a performance, financing and spending plan agreed to by the Mayor, City
Council, City Manager and Department Directors. It should contain information and data regarding
expected revenues, expected expenditures and expected performance.
2. The City will prepare and annually refine written policies and goals to guide the preparation of
performance, financing and spending plans for the City budget. Adopted budgets will comply with
the adopted budget policies and Council priorities.
3. As a comprehensive business plan, the budget should provide the following critical elements
recommended by the Government Finance Officers Association: public policies, financial plan,
operations guide, and communications device.
4. The City's budget presentation should display the City's service delivery/performance plan in a
Council/constituent-friendly format. Therefore, the City will use a program budgeting format to
convey the policies for and purposes of City operations. The City will also prepare the line -item
format materials for those who wish to review that information.
5. Decision making for capital improvements will be coordinated with the operating budget to make
effective use of the City's limited resources for operating and maintaining facilities.
Under the City Manager's direction, Department Directors have primary responsibility for:
a) formulating budget proposals in line with City Council and City Manager priority direction, and
b) implementing those proposals once they are approved.
B. FISCAL INTEGRITY
1. The City will maintain the fiscal integrity of its operating, debt service, and capital improvement
budgets which provide services and maintain certain public facilities, streets and utilities. It is the
City's intent to maximize the level of public goods and services while minimizing the level of debt.
2. Ongoing operating program costs will not exceed the amount of ongoing revenue to finance those
costs. The ongoing revenue will be identified along with new program costs. Any available
carryover balance will only be used to offset one-time or non-recurring costs.
3. Cash balances in excess of the amount required to maintain strategic reserves will be used to fund
one-time or non-recurring costs.
4. Mitigation fees shall be used only for the project or purpose for which they were intended.
C. CONTINGENT ACCOUNTS
1. The City shall establish an appropriated Contingency Reserve in order to accommodate unexpected
operational changes, legislative impacts, or other economic events affecting the City's operations
which could not have been reasonably anticipated at the time the budget was prepared. Funding shall
be targeted at three (3) percent of the City's operating expenditures.
March 3, 1998 Existing Budget Policies
2. The City shall establish a Strategic Reserve Fund which shall neither be appropriated nor spent
without Council authorization. The purpose of the fund is to provide some fiscal means for the City
to respond to potential adversities such as public emergencies, natural disasters or similarly major,
unanticipated projects. Funding shall be targeted at not less than five (5) percent of the City's
operating expenditures.
3. The City shall prefund each subsequent year's debt service (see II.B.8 below).
The City shall continue to set aside funding from the Strategic Reserve Fund for the eventual
implementation of a self-insurance program (see details in 5. below).
5. The City shall continue to set aside funding from the Strategic Reserve Fund for a self-insurance
reserve in the City's Risk Management Fund. As the City's mix and level of liabilities increase, it
should have a foundation to implement a cost effective program to mitigate the expense of
commercial insurance. The intent is to transfer investment earnings from the Strategic Reserve Fund
into the self-insurance reserve until the self-insurance program is ready to be fully implemented.
After that point the required amount will be transferred to appropriately fund the self-insurance
reserve. Similar transfers will occur annually after that initial set-up.
6. The City shall fund certain asset replacement reserves through depreciation charges paid to the
Internal Service Funds (see 7. below).
Replacement reserves based on historic -al estimated replacement value will be established for any
equipment, furnishings, and computer software when the need will continue beyond the estimated
initial useful life, regardless of whether the equipment is acquired via lease, gift or purchase. An
equal annual amount equal te the depFeeiatie will be included in the service charges paid by City
departments to the various Internal Service funds (Building, Fleet and Equipment, GIS,
Communications, and Data Processing) during the expected life of the asset. The furnishings reserve
may be used for building rehabilitation and will be replenished in accordance with 9 below. This will
permit the accumulation of cash to cost-effectively replace these assets and smooth out future
budgetary impacts. (revised 199 7)
8. The strategic reserve and self-insurance reserve should be replenished as soon as possible and always
within three years from the time the reserve is used or falls below the target. Sources to replenish
these reserves shall be from undesignated fund balances, deferring non -life safety capital, and
operating revenues in this order.
9. Furnishing Replacement Reserve (if used for building rehabilitation projects): An amount equal to
twice the annual depreciation of the project cost will be charged to each department until cost is fully
recovered.
10. The City shall maintain a $100,000 reserve in the Snow and Ice Removal Fund. This reserve is
established for use in the event a major storm occurs and additional funds, above the annual operating
allocation, are needed.
D. REVENUES
1. Revenue estimates shall not assume any growth rate in excess of inflation. Real growth that
occurs will be recognized through budgetary adjustments only after it takes place. This practice
imposes short term constraint on the level of public goods or services. However, in the event
4
March 3, 1998 Existing Budget Policies
that revenues are less than expected, it minimizes the likelihood of severe cutback actions which
may be profoundly disruptive to the goal of providing a consistent level of quality services.
2. Investment income earned through the City's investment pool shall be budgeted based upon the
allocation methodology, i.e. the projected average monthly balance of each participating fund.
E. CONTRACTUAL SERVICES
1. The City will continue to thoroughly investigate the feasibility of contracting certain public
services in accordance with Council Resolution No. 92-103.
F. MINIMIZATION OF ADMINISTRATIVE COSTS
An appropriate balance will be maintained between resources allocated for direct services to the
public and resources allocated to assure sound management, internal controls, and legal compliance.
G. RETIREMENT
1. The budget shall provide for adequate funding of the City's retirement system.
H. MONTHLY REPORT
1. The budget will be produced so that it can be directly compared to the actual results of the fiscal year
and presented in a timely monthly report.
2. All budget amendments, both revenues and expenditures, will be noted in the monthly report.
I. MULTI-YEAR ESTIMATES
1. Each year, the City will update expenditure and revenue projections for the next ten years.
Projections will include estimated operating costs for future capital improvements that are included in
the capital budget.
2. This budget data will be presented to elected officials in a form that will facilitate budget decisions,
based on a multi-year strategic planning perspective.
J. CITIZEN INVOLVEMENT
Citizen involvement shall be encouraged in the budget decision making process through public
hearings and study sessions.
2. Involvement shall also be facilitated through City boards, task forces and commissions, which shall
serve in advisory capacities to the City Council and/or City Manager.
March 31 1998 Existing Budget Policies
K. FEES
1. Fees shall be phased toward covering 100% of the cost of service delivery, unless such amount
prevents an individual from obtaining an essential service. Fees or service charges should not be
established to generate money in excess of the cost of providing service.
2. Fees may be less than 100% if other factors (e.g. market forces, competitive position, etc.) need to be
recognized.
L. NONPROFIT ORGANIZATIONS
1. Future funding decisions regarding nonprofit organizations will be based on guidelines, policies and
priorities determined by the City Council and availability of financing based on General Fund
spending priorities.
H. CAPITAL BUDGET
A. FISCAL POLICIES
1. Capital project proposals should include as complete, reliable, and attainable cost estimates as
possible. Project cost estimates for the Capital Budget should be based upon a thorough analysis of
the project and are expected to be as reliable as the level of detail known about the project. Project
cost estimates for the Ten -Year City Improvement Plan will vary in reliability depending on whether
they are to be undertaken in the first, fifth or tenth year of the Plan.
2. Capital proposals should include a comprehensive resource plan. This plan should include the
amount and type of resources required, and the funding and financing strategies to be employed. The
specific fund and timing should be outlined. The plan should indicate resources needed to complete
any given phase of a project in addition to the total project.
3. All proposals for the expenditure of capital funds shall be formulated and presented to Council within
the framework of a general capital budget and, except in exceptional circumstances of an emergency
nature, no consideration will be given to the commitment of any capital funds, including reserve
funds, in isolation from a general review of all capital budget requirements.
4. Changes in project estimates for the comprehensive resource plan should be fully reported to the City
Council for review and approval.
5. Project proposals should indicate the project's impact on the operating budget, including, but
not limited to, long-term maintenance costs necessary to support the improvement.
6. At the time of contract award, each project shall include reasonable provision for contingencies:
a. The amount set aside for contingencies shall correspond with industry standards and shall not
exceed ten (10) percent, or a percentage as otherwise determined by the City Council of the total
contract amount.
b. Project contingencies may, unless otherwise determined by the City Council, be used only to
compensate for unforeseen circumstances requiring additional funds to complete the project
within the original project scope and identified needs.
6
March 3, 1998 Existing Budget Policies
c. For budgeting purposes, project contingencies are a reasonable estimating tool. At the time of
the contract award, the project's budgeted appropriation, including contingency, will be replaced
with a new appropriation equal to the approved project contract contingency developed in the
manner described above.
7. The City Administration shall seek ways of ensuring that administrative costs of carrying out the City
Improvement Plan are kept at appropriate levels.
8. The Annual Capital Budget shall include only those projects which can reasonably be accomplished
in the time frame indicated. The detail sheet for each budgeted capital project should include a
projected schedule.
9. Capital projects which are not encumbered or completed during the fiscal year will be rebudgeted or
carried over to the next fiscal year except as reported to and subsequently approved by the City
Council. All rebudgeted capital projects should be so noted in the Adopted Capital Budget.
Similarly, multi-year projects with unencumbered or unexpended funds will be carried over to the
subsequent year(s).
10. If a proposed project will cause a direct negative impact on other publicly -owned facilities,
improvements to the other facilities will be required as part of the new project and become a part of
the new project's comprehensive costs.
11. Capital projects will not be budgeted unless there are reasonable expectations that revenues will be
available to pay for them.
B. DEBT POLICIES
1. Short-term lines of credit, tax or Revenue Anticipation Notes may be used only when the City's ability
to implement approved programs and projects is seriously hampered by temporary cash flow
shortages. In general, these Notes will be avoided. No other form of debt will be used to finance
ongoing operational costs.
2. Whenever possible, the City shall identify alternative sources of funding and shall examine the
availability of those sources in order to minimize the level of debt.
3. Whenever possible, the City shall use special assessment, revenue, or other self-supporting bonds
instead of general obligation debt.
4. Long term general obligation debt will be incurred when necessary to acquire land or fixed assets,
based upon the ability of the City to pay. This debt shall be limited to those capital improvements
that cannot be financed from existing revenues and when there is an existing or near-term need for
the project. The project should also be integrated with the City's long term financial plan and City
Improvement Plan.
5. The maturity date for any debt will not exceed the reasonable expected useful life of the project so
financed.
6. Fifty percent (50%) of the principal of any long term indebtedness should be retired over 10 years.
March 3, 1998 Existing Budget Policies
7. Current year revenues shall be set aside to pay for the subsequent year's debt service payments. This
is intended to immunize the City's bondholders from any short term volatility in revenues.
8. The City shall encourage and maintain good relations with financial and bond rating agencies, and
will follow a policy of full and open disclosure on every financial report and bond prospectus.
9. The City shall establish affordability guidelines in order to preserve credit quality. One such
guideline, which may be suspended for emergency purposes, or because of unusual circumstances, is
as follows:
10. Debt service to be repaid with operating revenues should not exceed 8% of the respective operating
budget.
C. CAPITAL RAPROVEMENT PLAN (CIP) POLICIES
1. Citizen participation in the Capital Improvement Program is a priority for the City. Among the
activities which shall be conducted to address this need are the following:
a. The Capital Improvement Plan shall be provided to the City Council in a timely manner to allow
time for the Council members to review the proposal with constituents before it is considered for
adoption.
b. Council study sessions on the Capital Improvement Plan shall be open to the public and
advertised sufficiently in advance of the meetings to allow for the attendance of interested
citizens.
c. Prior to the adoption of the Capital Improvement Plan, the City Council shall hold noticed public
hearings to provide opportunities for citizens to express their opinions on the proposed plan.
d. The City Planning Commission shall review the proposed Capital Improvement Plan and provide
its comments on the Plan's contents before the Council considers the Plan for adoption.
2. All projects included in the Capital Improvement Plan shall be consistent with the City's
Comprehensive Plan. The goals and policies for services, facilities, and transportation should be
followed in the development of the Capital Improvement Plan. The Comprehensive Plan service level
goals should be called out in the Capital Improvement Plan.
3. Capital projects shall be financed to the greatest extent possible through user fees and benefit districts
when direct benefit to users results from construction of the project. Refer to Debt Policies for further
detail.
4. Projects that involve intergovernmental cooperation in planning and funding should be established by
an agreement that sets forth the basic responsibilities of the parties involved.
5. The Council will annually review and establish criteria against which capital proposals should be
measured. Included among the factors which will be considered for priority -ranking are the
following:
a. Projects which have a positive impact on the operating budget (reduced expenditures, increased
revenues);
8
March 3, 1998 Existing Budget Policies
b. Projects which are programmed in the Ten -Year Operating Budget Forecast;
c. Projects which can be completed or significantly advanced during the Ten -Year Capital
Improvement Plan;
d. Projects which can be realistically accomplished during the year they are scheduled;
e. Projects which implement previous Council -adopted reports and strategies.
A complete list of criteria follows.
March 3, 1998 Existing Budget Policies
CRITERIA FOR DETERMINING PROJECT INCLUSION/PRIORITY
(In Priority Order)
1. Projects which are required by statute or by an existing agreement with another agency. M*
2. Projects which are essential to public health or safety.
P
3. Projects which are urgently needed by some other criteria than public health or safety, e.g. environmental P
or public service.
4. Projects which have exhibited a high degree of public support.
5. Projects which are grant funded and would have minimal or no operating cost impact on the General
Fund.
6. Projects which, if not acted upon now, would result in the irrevocable loss of an opportunity, or other p
major alternative actions would have to be initiated.
Projects which would preserve an existing capital facility, avoiding significantly greater expenses in the p
future (e.g. continuation of a ten-year cycle street maintenance program).
8. Projects which would result in significant savings in General Fund operating costs. P
Projects which would fulfill a City commitment (evidenced by previous inclusion in the annual CIP and
community support) to provide minimal facilities in areas which are deficient according to adopted
standards.
10. Projects which would provide significant benefits to the local economy and tax base. P
11. Purchase of land for future projects at favorable prices prior to adjacent development.
12. Purchase of land for future City projects (landbanking).
13. Projects which would provide new facilities which have minimal or no operating costs or which have
operating costs but have been designated as exceptions to the operating cost policy by previous City
Council actions.
14. Projects which would be constructed in conjunction with another agency with the other agency providing p
for the operating costs.
15. Projects which would generate sufficient revenue to be essentially self-supporting in their operation.
16. Projects which would make an existing facility more efficient or increase its use with minimal or no P
operating cost increase.
17. Projects which would fulfill City commitment (evidenced by previous inclusion in the annual CIP and
community support) to provide greater than minimal facilities.
18. Projects which are grant funded but would require increased operating costs in the General Fund.
19. Projects which are not grant funded and would require increased operating costs in the General Fund, and
have not been designated as exceptions to the operating cost policy by previous City Council actions.
* Denotes the four basic municipal functions: P = Protection, E = Enforcement, I = Inspection, M = Mandate.
10
March 3, 1998 Policies Areas of Special Interest
REVIEW AREAS OF COUNCIL INTEREST
1. CM Contingency Level
Policy:
"The City shall establish an appropriated Contingency Reserve in order to accommodate
unexpected operational changes, legislative impacts, or other economic events affecting
the City's operations which could not have been reasonably anticipated at the time the
budget was prepared. Funding shall be targeted at three (3) percent of the City's
operating expenditures. "
Current Practice:
Contingency Reserve, or the City Manager contingency fund, equating to 3% of the
General Fund operating budget is appropriated each year. With the change from annual
budget to biennial budget in 1997/98, the contingency amount is fully funded for the first
year only. Although the policy does not specify, considering the policy was established in
an annual budget environment, it is reasonable to interpret that the 3% applies to the
annual budget amount. Past experience also indicates only a minor portion (up to 20%) of
the CM contingency will be used in a given year, leaving a majority of the balance
available to fund the second year's contingency requirement; therefore, to provide full
funding for a two-year budget will create an extra burden that is inconsistent with the
intent of the policy.
Since the CM contingency is used to provide temporary funding for unexpected activities
only, it is considered a one-time use, and funded with one-time sources. This means
changes in CM contingency levels do not affect the budget that provides day to day
operations (ongoing expenditure), or the ongoing revenue requirement which is driven by
the ongoing expenditure, unless no sufficient one-time funds are available to fund the
contingency.
It should also be noted that a separate $100,000 Snow/Ice Contingency is available for
severe snow/ice conditions beyond the regular budgeted amount.
11
March 3, 1998 Policies Areas of Special Interest
Staff Recommendation:
Staff recommends maintaining current policies on both reserves for the following reasons:
• It is common practice in both private business and government to have a working
capital or unappropriated fund balance between four to six percent for emergency or
other unexpected events. This amount is designed to allow uninterrupted operation
for two to three weeks. In a government environment it is also common that an
additional, larger, "rainy day" reserve be established for catastrophic losses or
sustained economic downturns.
• The City's 3% contingency and 8% strategic reserve are in line with the type of
operation and revenue mixes. These funds provide stability against sudden changes in
the operating environment and are considered heavily by bond rating agencies when
determining the entity's ability to handle unforeseen occurrences.
12
March 3, 1998 Policies Areas of Special Interest
2. Fees, Program Revenues, and General Fund Subsidies
Policy:
"Fees shall be phased toward covering 100% of the cost of service delivery, unless such
amount prevents an individual from obtaining an essential service. Fees or service
charges should not be established to generate money in excess of the cost of providing
service.
Fees may be less than 100% if other factors (e.g.: market forces, competitive position,
etc.) need to be recognized. "
Current Practice:
Program revenues:
A number of City services have program revenues (fees, donations, grants and the like)
that are directly associated to the specific services delivered. However, except for the
those funds expected to be self-sufficient, most programs and operations rely on general
tax revenues as primary sources of support. Therefore, unless restricted by laws,
agreements, or Council Policies, all direct program revenues are available to the overall
City operations and the fewer restrictions or designations the City self -imposes on such
program revenues, the more flexible the City's can be to deliver the overall services.
Subsidv level:
There are subsidy targets established with the 1997/98 Budget after careful review of the
programs against the overall framework of the four basic municipal functions. The new
community investment projects implemented in 1997 also established subsidy levels for the
maintenance and operation of those programs.
These subsidy targets are based on fixed dollar amounts instead of recovery percentage
traditionally use by governmental agencies.
A "fixed dollar" subsidy allows program -generated revenue to be tied to the program, plus
a definitive, predictable amount the City will contribute toward these activities. The fixed
dollar also makes business sense because, as the program expands, it will automatically
contribute a larger share of its cost.
A "percentage" based program has so many variables that it does not portray a true
picture of the bottom line. Depending on the amount of the revenue, a lower subsidy
percentage does not necessarily mean lesser subsidy cost. For example, when comparing a
$100,000 program at 50% recovery ratio, the City will contribute 50% or $50,000 toward
the program versus a $120,000 proposition with a 55% recovery ratio, whereby the City
will subsidize a lesser percentage (45%) but a higher dollar amount($54,000). Actually, as
long as the City fixes the subsidy percentage, the larger the program revenue, the more
subsidy will be required from the City.
13
March 3, 1998 Policies Areas of Special Interest
Some of the current subsidy level examples are:
• PARCS operations: approximately $2,000,000 in 1998, excluding Council one-time
add -backs and Arts Commission, Dumas Bay Centre, Civic Theatre, and Celebration
Park;
• Dumas Bay Centre: due to the construction activity, a subsidy at $70,000 for 1998.
As the Centre will partially lose its use of the chapel as rentable space to the new
Theatre, the possibility of continued subsidy will need to be reviewed at a later date;
• Civic Theater: As established by CIAC committee and approved by the Council, not to
exceed $100,000/year;
• Celebration Park: As established by CIAC committee and approved by the Council,
not to exceed $50,000/year, supplement the projected $150,000 Park revenue.
Staff Recommendation:
The Policy as it stands is broad and flexible, and no change is recommended. Instead,
Council can establish, review, and adjust the dollar amount committed to program areas
by providing budget direction to the City Manager as desired.
14
March 3, 1998 Policies Areas of Special Interest
3. Managing Major Building/Facility Repair and Rehabilitation Needs
Policy:
"The City shall fund certain asset replacement reserves through depreciation charges
paid to the Internal Service Funds (see 7. below).
Replacement reserves based on hWoriea estimated replacement value will be
established for any equipment, furnishings, and computer software when the need will
continue beyond the estimated initial useful life, regardless of whether the equipment is
acquired via lease, gift or purchase. An equal annual amount equal to the depreeiatiOR
will be included in the service charges paid by City departments to the various Internal
Service funds (Building, Fleet and Equipment, GIS, Communications, and Data
Processing) during the expected life of the asset. The furnishings reserve may be used
for building rehabilitation and will be replenished in accordance with 9 below. This will
permit the accumulation of cash to cost-effectively replace these assets and smooth out
future budgetary impacts. (Redlined areas are revisions approved in 1997). "
"Furnishing Replacement Reserve (if used for building rehabilitation projects): An
amount equal to twice the annual depreciation of the project cost will be charged to each
department until cost is fully recovered. "
Current Practice:
There is no designated source for these purposes exclusively. A modification was made to
the existing building and furnishing reserves, collected on City Hall and the Public Safety
furniture, to allow such use. The use is not restricted to these two facilities only, but the
amount used will be restored by the borrowing facility/department through annual internal
service charge. The cost of the furniture subject to the reserves is $1.2 million, which is to
be collected over a 10 -year period, or approximately $120,000 is set aside each year for
this purpose.
The rationale for the change is the belief that the replacement of furniture can be planned
in advance, acquired in stages, or deferred if necessary, without jeopardizing the City's
overall service delivery. Therefore, making the funds available for other not -as -
predictable purposes will not adversely affect the City's ability to replace the furniture.
Any ongoing resource we take to reserve for the future will not be available for today's
service.
In addition, the City is currently funding the annual facility repair/replacement budget of
$25,000 and $17,000 each for the Klahanee Community and Senior Center and the City
Hall respectively. When not used, the balance could be carried over into the following
year and accumulated for future needs.
Staff Recommendation:
With limited ongoing resources and many competing needs, staff believe it is advisable to
continue with the existing policy.
15
REVIEW BUDGET BALANCING STRATEGIES
A. Review Existing Strategies
1. Restore Arts program funding to 1997 level with carryforward when funds are available,
based on Council -established funding priorities (No. 11.);
2. Restore Human Services funding to 1997 level with carryforward when funds are available
based on Council -established funding priorities (No. 12.);
3. Adjust Property Tax annually by local inflation versus national inflation as provided by
Referendum 47 (No. 13.)
B. Revisit/Revise 1996 Council Priority in Allocating Available One-time Funds
C. List of non -capital items currently funded with one-time money
16
March 3, 1998 Budget Strategies
A. Review Budget Strategies (Basis for preparation of 1996 and 1997/98 Budget)
1. Reduce the 1996 Budget by $180,000 from the 1995 baseline
Implemented
budget.
...................................................................................................................................................................:....................................................................
2. Establish a market driven pay plan in lieu of a Cost -of -Living
Implemented
Adjustment system.
.................................................................................................................................................................
3. Institute a selective hiring freeze with the goal of reducing five
...............................................................
Implemented
positions by December 1997.
(Eliminated a total of 14
positions)
...............................................................................................................................................................:.................................................................
4. Limit future department budget increases for operations to
Implemented
2% per year or approximately 70% of the consumer price
index (CPI-W).
...............................................................................................................................................................i.................................................................
5. Contain police operating costs to $ 9.5 million dollars in 1997 and
Implemented
hold future operation increases to 4% per year from 1997 and
thereafter.
...................................................................................................................................................................:.......................
6. Discontinue General Fund subsidy to Dumas Bay Centre by
Defer ............................
implementation due to
1997.
................................................................•---•--•--...............----................................................................
construction
-•...............................................................
7. Continue fully funding the Solid Waste Management program
-
Implemented
with grants and franchise fees.
.....................................•----.......................----•---......................................................................................
.................................................................
8. Reduce the Street Fund payment to the Surface Water
Implemented
Management fund for right-of-ways to 30 % of surface water
fees. Impact: $71,000 in 1996 dollars.
.......................................................................
9. Stabilize General Fund contribution to Parks Recreation and
Implemented
Cultural Services operations to $2,000,000 a year excluding
Arts Commission funding, instead of the 45% revenue
recovery target established in 1996.
........................................................................................................................................................................................................................
••--............
10. Eliminate not-for-profit organization exemptions for building and
`: Implemented
land use fees.
..............................................................................................................................................................:.................................................................
11. Stabilize General Fund contribution to Arts program at $41,250
To be reviewed
annually. Restore reduced amount with carryforward when
available based on Council -approved funding priorities.
................................................................................................................................................................................................................................
12. Stabilize General Fund contribution to Human Services program
To be reviewed
at $150,000 annually. Restore reduced amount with
carryforward when available based on Council -approved
funding priorities.
..................................................................................................................................................................:.....................................................................
13. Adjust property tax annually by local inflation (Seattle/Everett
To be reviewed
CPI -W) vs the national inflation as provided by Referendum 47.
........................................................................................................................................................................................................................................
14. Stabilize Arterial Street overlay funding level at $1,500,000 per
Implemented with
year. This will allow the $161,370 property taxes be restored to
utility tax funding
General Fund.
17
March 3, 1998 Budget Strategies
B. Review 1996 Council Priority in Allocating One -Time Funds
In January 1996, the Council established the following priority list in allocating available
one-time money.
1. Public Safety (It was also discussed and acknowledged that essential operations should
not rely on one-time funding);
2. Increase Street Overlay funding by $200,000 in 1997, and $400,000 in 1998.
3. After Overlay program is funded at the above level, money should be used to restore
Human Services funding.
Note: Past and current Human Services Funding —1996: $382,000; 1997/98 adopted: $350,000 per year
with $150,000 funded on one-time basis. Additional $38,000 was added in 1998 during Council January
Retreat, also on a 1 -time basis.
4. If funds still remain, restore Arts Commission funding.
Note: Past and current Arts Commission Funding — 1996: $82,500; 1997/1998: 76,250 per year, with
$35,000 funded by 1 -time sources.
Since the formation of the Department of Public Safety is substantially complete except for the
decision on a long-term facility, and the utility tax increase addresses the overlay program, these
priorities need to be reviewed.
Some of the needs Council has discussed before that are one time in nature and can be considered
are:
• Provide seed money for grant matching funds; the City has by-passes grant opportunities due
to the lack of matching funds and/or long-term maintenance funds for such improvements;
• Continue sports field development and improvement (such as a skateboard park).
18
March 3, 1998 Budget Strategies
C. Items Currently Funded with One -Time Money:
As Part of Original Adopted 1997/98 Budget: 1997 1998
1.
Human Services (restore CM proposed reduction starts 1998)
$150,000
2.
Arts Commission (restore CM proposed reduction starts 1997)
$35,000
35,000
3.
PSRC (restores 1997 CM reduction, not 1998)
22,500
0
4.
Neighborhood Development
25,000
25,000
5.
Code Revision (one-time only)
100,000
6.
PARCS: 0.5 Office Clerk
25,000
25,000
7.
PARCS: maintenance contract
50,000
50,000
8.
PARCS: maintenance supplies
20,000
20,000
9.
PW: Contracted Services
15,000
15,000
One-time item in adopted budget
$292,500
$320,000
Action During Mid -Biennium Adjustment:
1. Law: R7C court operation (0.5+ FTE, funded with OT savings in 97) $36,790
2. PS: 2 Recreation Leader (funded w/96 LLEBG)* 46,848
3. PS: 2 PSO (funded w/96 COPS MORE)* 49,930
4. PSRC Membership due 24,000
5. HR: Labor Contract Negotiation 30,000
6. CD Intern 8,665
7. PW: Development Services Intern 9,360
8. PARCS: Eliminate Sports Field Fees 11,000
One-time item in Mid -Biennium Adjustment $187,567
* Amounts reflect 50% of the grant. Balance is currently funded within PS Department
budget.
19