FHSRAC PKT 05-23-2006
City of Federal Way
City Council
Finance/Human Services/Regional Affairs Committee
Tuesday, May 23, 2006 City Hall
5:00 p.m. Hylebos Conference Room
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMmEE BUSINESS
A. Approval of Minutes Kelsey Action
B. Congressional and Legislative Affairs Update Matheson/Levy Information
C. Allocate 2005-2006 CDBG Funds to Participate in the Small O'Donnell Action
Business Development Center at Highline Community
College (SBDC)
,
D. Proposed Ordinance Washington State I;>arks& Recreation Miller Action
(Dash pt. Park) Sewer Line and Park Utilities Franchise
E. Public Use of City Equipment at Council Meetings Richardson Action
F. 2005 HWR Final Accounting Kraus Information
G. Monthly Financial Report Kraus Action
H. Vouchers Kraus Action
4. OTHER
5. FUTURE AGENDA ITEMS
6. NEXT MEETING: June 27, 2006 5:30 PM
Committee Members: City Staff:
Linda Kochmar, Chair Iwen Wang, Management Services Director
Jeanne Burbidge Krystal Kelsey, Deputy City Oerk
Jack Dovey (253) 835-2541
K:\FHSRAC\2oo6\~1ay 23, 2006\5-23-06 Agenda.doc
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City of Federal Way
Finance/Human Services/Regional Affairs/ Committee
Tuesday, April 25, 2006 City Hall
5:30 PM Hylebos Conference Room
MINUTES
COMMITTEE MEMBERS IN ATTENDANCE: Chair Linda Kochmar, Member Jeanne Burbidge and Member Jack Dovey.
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Ferrell (arrived at 5:50) and Mayor Park (arrived at 6:00)
STAFF MEMBERS IN ATTENDANCE: Derek Matheson, Interim City Manager; Iwen Wang, Management Services
Director; Tho Kraus, Finance Manager; Mehdi Sadri, Information Systems Manager; Pat Richardson, City Attorney; Karen
Kirkpatrick, Deputy City Attorney; Anne Kirkpatrick, Police Chief; Brian Wilson, Deputy Chief; Greg Wilson, Commander;
and Krystal Kelsey, Deputy City Clerk
1. CALL TO ORDER
Chair Kochmar called the meeting to order at 5:31 p.m.
2. PUBUC COMMENT
None
3. COMMmEE BUSINESS
A. APPROVAL OF THE MARCH 28, 2006 MEETING MINUTES - The Committee m/s/c to approve the minutes
as presented.
B. MONTHLY FINANCIAL REPORT - Ms. Kraus presented the report to the Committee for review and approval
and highlighted YTD 2006 increases over YTD 2005 revenue amounts for the following revenue sources: REET,
sales tax, utility tax, state shared revenues, building permits, and right of way permits. Ms. Kraus noted a
decrease in the gambling tax which several business owners have attributed to the recently enacted smoking
ban.
The Committee m/s/c to approve the monthly financial report as presented and forward to the May 2, 2006
Consent Agenda.
C. VOUCHERS - Ms. Kraus presented the report to the Committee for review and approval.
The Committee m/s/c to approve the vouchers as presented and forward to the May 2, 2006 Consent Agenda.
D. COMCAST RENEWAL ORDINANCE - Ms. Wang presented the staff report and ordinance to the Committee.
Ms. Wang reviewed the key provisions and highlights of the agreement and discussed the contents of the side
letter to the agreement, referred to as "Attachment C. The Committee discussed preserving the reduced rate
plan for eligible senior citizens, I-Net maintenance, the community service efforts of Comcast, broadcasting
FWTV in the PM, and customer service centers versus payment centers.
The Committee m/s/c to approve the draft Franchise Ordinance/Agreement in substance and place the
ordinance for public hearing/first reading on May 2, 2006.
4. OTHER:
None.
5. FUTURE AGENDA ITEMS:
None.
6. NEXT MEETING:
May 23,2006
7. ADJOURNMENT:
The meeting was adjourned at 6:17 p.m.
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COUNCIL MEETING DATE: June 20, 2006 ITEM #:
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CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: ALLOCATION 2005 & 2006 CDBG FUNDS TO THE SMALL BUSINESS DEVELOPMENT
CENTER AT IDGHLINE COMMUNITY COLLEGE
POLICY QUESTION:
Should the City of Federal Way allocate 2005 and 2006 Community Development Block Grant (CDBG) funds
in the amount of $33,940 to the Small Business Development Center at Highline Community College?
COMMITTEE: FHSRAC MEETING DATE: May 23, 2006
CATEGORY:
~ Consent 0 Ordinance 0 Public Hearing
0 City Council Business 0 Resolution 0 Other
~T~YF ~P.!'! B!:_JS.~lli O'D~~~~_~~~C!.. Coordinato DEPT: Community Development
_...._---~..._._.__.._---
Attachments:
. Staff Report (Attachment A)
. Human Services Commission Staff Report and Handouts (Attachment B)
Options Considered:
1. Fund the Small Business Development Center for 18 months with the addition of a .50 FTE.
2. Fund the Small Business Development Center for 12 months with the addition of a .50 FTE.
3. Fund the Small Business Development Center for 18 months with the addition of a .45 FTE.
4. Fund the Small Business Development Center for 12 months with the addition of a .50 FTE.
(See staff report for conditions of funding for the above options.)
.__.__......_-----...._---_.._...~--~..__._....- ."'..._.__...._.__..~._._---~.......__.._...._--~.~
STAFF RECOMMENDATION: 0 tion 1 as recommended by the Human Services Commission
CITY MANAGER APPROVAL: DIRECTOR APPROVAL: ~
Council Committee Council
COMMITTEE RECOMMENDATION: "] move approval of option _ with the authorization for the City
Manager to enter into the appropriate contracts"
Linda Kochmar, Chair Jeanne Burbidge, Member Jack Dovey, Member
PROPOSED COUNCIL MOTION: "1 move approval of option _ with the authorization for the City Manager
to enter into the appropriate contracts"
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
0 APPROVED COUNCIL BILL #
0 DENIED 1sT reading
0 TABLEDIDEFERREDINO ACTION Enactment reading
0 MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 0210612006 RESOLUTION #
~-- ----------~ ~______ ______ ________n___
Attachment A
CITY OF FEDERAL WAY
MEMORANDUM
Date: May 16, 2006
To: Finance, Human Services, and Regional Affairs Committee
From: Kelli O'Donnell, CDBG Cootdi~
Via: Derek Matheson, Interim City Manage
Subject: Allocation 2005 and 2006 CDBG funds to the Small Business Development Center
at Highline Community College
POLICY OUEmoN:
Should the City of Federal Way allocate available 2005 and 2006 Community Development Block Grant (CDBG)
funds in the amount of $33,940 to the Small Business Development Center at Highline Community College?
BACKGROUND:
The City of Federal Way has $59,863 available to allocate to CDBG capital projects from 2005 CDBG project
under runs and unallocated 2006 CDBG capital funds as outlined in the attached memorandum to the Human
Services Commission. At their May 15th meeting, the Commission considered allocating a portion of these
funds to the Small Business Development Center (SBDC) at Highline Community College as an economic
development activity. CDBG funds would match the funds allocated by the City Council in the 2006 budget to
serve Federal Way entrepreneurs and businesses with one-to-one counseling at the SBDC. A Business
Development Specialist would provide counseling that may include financial planning, marketing strategies,
production and organization issues or other services needed for small business development. Funding of this
program would meet strategies of Federal Way's Housing and Human Services Consolidated Plan and the King
County CDBG consolidated plan to expand economic opportunities. After considering the pros and cons of
allocating CDBG funds to this project, four options were presented to the Human Services Commission:
OPTIONS:
1. Fund the Small Business Development Center for 18 months with the addition of a .50
FTE.
Allocate recaptured 2005 CDBG funds and unallocated 2006 CDBG capital funds in the amount of $33,930
to the King County Economic Development Program for the addition of Federal Way to the Small Business
Development Center at Highline Community College for July 1, 2006 to January 31,2007, with the
following conditions of funding:
1) The project is not considered a Federal Way stand-alone project under the joint interlocal
agreement for the King County Consortium's Community Development Block Grant (CDBG)
program for 2006 through 2008; and,
2) Appropriate performance measures for clients served and job creation are negotiated in addition
to meeting the CDBG economic development minimum job creation; and,
3) King County Economic Development program staff will assure that CDBG requirements are met for
job creation and record keeping; and,
4) Funding for July-December of 2007 would be contingent upon the City of Federal Way allocating
funds to the project at the same level as 2006.
2. Fund the Small Business Development Center for 12 months with the addition of a .50
FTE.
Allocate recaptured 2005 CDBG funds and unallocated 2006 CDBG capital funds in the amount of $22,620
to the King County Economic Development Program for the addition of Federal Way to the Small Business
Development Center at Highline Community College for July 1, 2006 to June 30, 2007, with the following
conditions of funding:
1) The project is not considered a Federal Way stand-alone project under the joint interlocal
agreement for the King County Consortium's Community Development Block Grant (CDBG)
program for 2006 through 2008; and,
2) Appropriate performance measures for clients served and job creation are negotiated in addition
to meeting the CDBG economic development minimum job creation; and,
---_.._~
3) King County Economic Development program staff will assure that CDBG requirements are met for
job creation and recordkeeping; and,
3. Fund the Small Business Development Center for 18 months with the addition of a .45
FTE.
Allocate recaptured 2005 CDBG funds and unallocated 2006 CDBG capital funds in the amount of $26,250
to the King County Economic Development Program for the addition of Federal Way to the Small Business
Development Center at Highline Community College for July 1, 2006 to January 31, 2007, with the
following conditions of funding:
1) The project is not considered a Federal Way stand-alone project under the joint interlocal
agreement for the King County Consortium's Community Development Block Grant (CDBG)
program for 2006 through 2008; and,
2) Appropriate performance measures for clients served and job creation are negotiated in addition
to meeting the CDBG economic development minimum job creation; and,
3) King County Economic Development program staff will assure that CDBG requirements are met for
job creation and record keeping; and,
4) Funding for July-December of 2007 would be contingent upon the City of Federal Way allocating
funds to the project at the same level as 2006.
4. Fund the Small Business Development Center for 12 months with the addition of a .50
FTE.
Allocate recaptured 2005 CDBG funds and unallocated 2006 CDBG capital funds in the amount of $17,500
to the King County Economic Development Program for the addition of Federal Way to the Small Business
Development Center at Highline Community College for July 1, 2006 to June 30,2007, with the following
conditions of funding:
1) The project is not considered a Federal Way stand-alone project under the joint interlocal
agreement for the King County Consortium's Community Development Block Grant (CDBG)
program for 2006 through 2008; and,
2) Appropriate performance measures for clients served and job creation are negotiated in addition
to meeting the CDBG economic development minimum job creation; and,
3) King County Economic Development program staff will assure that CDBG requirements are met for
job creation and recordkeeping.
FINANCIAL IMPACT:
Allocation of 2005/2006 CDBG funds would distribute funds to eligible activities in a timely manner but lower the
amount of funding available for the 2007 CDBG program year capital projects proportionately. Funding of the final
six months of the proposed motion would be contingent upon the City Council allocating matching funds in the
2007 budget process. Future CDBG funding would be considered as part of the annual CDBG capital allocation
process.
HUMAN SERVICES COMMISSION RECOMMENDATION:
The Human Services Commission FOlWard option 1 with the authorization for the City Manager to enter into the
appropriate contracts to implement to the Finance, Human Services and Regional Affairs Committee for
recommendation to the full Council. Public notice will be published and posted. Any public comments received will
be included in the City Council agenda packet for consideration of the Committee's recommendation.
CITYOP A Attachment 8
Federal Way
( MEMORANDUM
DATE: . May 8, 2006 . . .. .
TO: Human Servi~s Commission ~ ..
FROM: . Kelli O'Donnell, CDBG Coordinat . .... .. ..
SUBJECT: Small Business. Development C ter at Highline Community College
Policv Question: .
Should the City of Federal Way allocate available 2005 and 2006 Community Development
Block Granf(CDBG) funds in the amountof $33,940 to the Small Business Development
I Center at Highlin~ Cornmunity Cc)/Iege?
I . BackQround:
The City of Federal Way has $59,863 available to allocate to CDBG capital projects from 2005
! CDBG project under runs and .unallocated 2006 CDSG cfipital funds as follows:
I
I $21,956 2005 under run Multi-Service Center Employment Services Project
$536 2005 under run Planning & Administration
.$37,371 2006 unallocated capital funds.
$59,863 Total Available to Allocate
As ~tatedin the. 2006 CDBGContingency.Ptan (Attachment 1), theCity may consider funding
open CDaG projects funded by Federal Way or the King County CDBG Consortium or these
funds will be added to the 2007 CDBG program unless additional action is taken. The
Consortium has f!Jnded the King County Economic Development Program in 2006 and will be
considering funding the program for 2007.
In the 2006 budget process, the City of Federal Way funded the SmaIlB~~iness Development
Center at Highline CommunitY Coliegf:) that:wasgeveloped by 'the South King Collnty Economic
Development.lnitiativethat includes the cities of Burian, Des.Moines,. NormancfY Park, SeaTac
and Tukwila in 2003. As stated in the attached memorandum to the Finance, Economic
Dev~lopment and Regional Affairs Committee (Attachment 2), the Small Business Development
Center (SBDC) provides one-to-one assistance to entrepreneurs with financial planning and
marketing strategies, production and organizational issues, and business performance
assessment. The SBDC has counseled 165 businesses; created 62 ,new jobs and retained 13
jobs in the participating jurisdictions between February of 2003 and September 2005. In 2005,
44 new jobs were created~obs were retained. by clients of the SBDC. Business served hi 2005
closed $3,5miUionin bank loans and had equity investments madeof$1.7n:iilllon.. The City. of
Federal Way has been asked to participate in the. SBDC to serve the Federal Way business
owners requesting services. It has been estimated that 10% of the inquiries for service have
come from Federal Way businesses and potential business. owners. In order for Federal Way
to participate, additional staffwould need to be hired to accommodate the expected demand.
Funding fpr a half-time Business Development.Sp~cialist was requested should Federal Way
wish to joIn the SBDC. i
Page rof 4 S-,-(.
During the .20.0.6 miq-biennium budget adjustment process, the City Council funded the SBDC in i
the.amount of $17,500 with the caveat that these funds would be matched by funding from area
banks and financial institutions to meet the minimum $35,000 tohire a .45 FTE Business
Development Specialist. The City's Economic Development Director has approached Federal
Way banks and other institutions for matching funds and has been unsuccessful in securing
. ..
commitments.
Economic development is an eligible CDBG activity that would require the creation of one job
for every $35,00.0. allocated to the project in addition to any requireme.nts set by the City. The
King County CDBGConsortium partially funds the King. County. Economic Development
.. .
program that oversees the SBDC. This means that Federal Way can.add CDBGfunds to the
project without it being counted as one of our two stand,.alon~ capital projeCts as long as i(is
funded .bythe Gom~ortium. ,Funding the . project from JlJly 1...2006 to June 30.. 2007wC:?uld.
distribute available CDSG funds in a tirnely~anner rather than waiting for th~2007 CDBG
allocation process. The City could also choose to fund the remaining 6 months of 200.7 with
COSG funds contingent upon the City Council allocating 2007 general funds to the project.
Aftenneeting with staff from our Economic Development progra.m, King County Economic
DevelOpment, and Highline Community College, it is prOposed to utilize availabre COSG funds
as a match to 200.6 Federal Way general funds. .The proposal funded by the City for $35,OOO.a
year was for a .45 FTE that would limit the position to 1.0.00 hours per year. If the position was
increased to a .5 FTE ata cost of $40,120, the position could be expanded in the future should
demand increase for Federal Way or the other partners and additional fundirig is allocated.
(Aftl'~"tfitiiA~'a.}
i
! Pros:
1. The project addresses the Housing and Human Services Consolid,ated Plan Economic
Development Strategies Goal to support low-income individuals and families to attain
self-sufficiency by providing business. development assistance to new andlor expanding
small businesses (EDS2) and rneets Goal 3, Objective30f the King County CDBG
Consolidated Plan to pro.vide Economic Opportunities .for low~.andmoderate-income
. persons.
2. Provides matching funds to Federal.Way general funds so that the project can get
underway immediately and continue for up to two years.
3. Utili;zes existing program to expand services to Federal Way business owners.
4. Allocates funds to an existing project that does not count as a Federal Way stand-alone
projects as long as funded by the Consortium.
5. Additional funds available may be used to expand position to .5 FTE.
6. Funding by the City through the general fund and CDSG would provide data that could
be used to~ o~tain future funding through other sources.
Cons:
1. Reduces the amount of funding available for Federal Way's 20.0.7 COBG capital projects
and regional projects fllllded by the Consortium. ;'lLi.\iil'J0Cl"'~IDmSiJ31fi\U~U~n~.
distributed with 20.0.7 Allocation agenda materials.Atta'Chnl'af'lt'~ is?a;,jlm,ot~r~- ,
apf!1)IiQations for 20.0.7 COSG Consertium projects.) .
Page 2 of.4 5-~
-------- -----
, 2. CDBG funding for July through December of 2007 would be contingent upon the City.of
i Federal Way allocathig funds to the project at the same level as 2006 during the 2007~
2008 budget process.
3. The project may not be funded by CDBG in future years, which could cause a reduction
inf?ervic~s.
Options:
1. Fund the Small Business Development Center for 18 months with the addition of a
.50 FTE .
Allocate recaptured 2005 . CDBG .funds and unallocated. .2006 CDBG capital-funds in the
amount of $33,930 t()th~King County EcbnomicDevatopmeht Program for the additionof.
Federai Way JotheSmaUBuslness' Development Center at Highline Community College for.
July 1",2006 to January 31, 2007, with the following condifions of funding: .
1) The project is not considered a Federal Way stand-alone project under the joint
. interlocalagr~ement forthe King Qounty Consortium's "Community Development .
BlockGrant (CDBG) program for 2006 through 2008; and, ,
2) App.ropriate performance measures for clients served and job creation are negotiated
in addition to meeting the CDBG economic development minimum job creation; and,
3) King County Economic Development program staff will assure that CDBG
requirements are mettor job creation and recordkeeping; and,
4) Funding for July-December of2007.would be contingehtupori the City of Federal
. Way allocating funds to the projectatthe same level as 2006.
2. Fund the Small Business DevelopmentCenter for 12 months with the addition of a
.50 FTE.
Allocate recaptured 2005 CDBG funds and unallocated 2006 COBG capital funds in the
amount of $22,620 to the King. County EconomicOevelopment Program for the add~lon of
Federal Way.to theSmall Business DevelopmentC~nter at HighlineCommunitY"College for
July 1, 2006 to June 30, 2007, with the following conditions of funding:
1) The project is not considered a. Federal Way stand-alone project under the joint
interlocal agreement for the King County Cons.ortium's Community Development
Block Grant (CDBG) program for 2006 through 2008; and,
2) Appropriate performance measures for clients served and job creation are negotiated
in addition to meeting the CDBG economic development minimum job creation; and,
3) King County Economic Development program staff will assure that CDBG
requirements arernet forjob .creation andrecordkeeping; and, .
3. Fund the Small Business Development Center for 18 months with the addition of a
..45 FTI:.
Allocate recaptured 2005 CDBG funds and unallocated 2006 CDBG capital funds in the
amount of $26,250 to the King County Economic Development Program for the addition of
Federal Way to the Small Business Development Center at Highline Community College for
July 1, 2006 to January 31, 2007~ with the following conditions offunding:
Page3of4 5-3
1) The project is not considered a Federal Way stand.;alone project l!nder the joint
interlocal agre~ment for the King Cour'ty Consortium's Community Development .
Block Grant (CDBG) program for 2006 through..2008; and, .
2) Appropriate performance measure~ for clients $ervedand job creation ;are I'l~gotiated
in addition to meeting the CDBG economic development minimum job creation; and,
3) King County Economic Development program staff will assure that CDBG
. requirements are met for job creation and record keeping; and, .
. 4) Funding for July-December of 2007 would be contingent upon the City of Federal
Way allocating funds to the project at the ~ame level as 2006.
4. Fund .the Small Bus:inessDevelopmentCenterfor 12 montbs with the addition of a
.50 FTE~
Allocate recaptured 2005 CDSG funds and unallocated 2006 CDBG capital funds in the
amount of $17,500 to the King County Economic Development Program for the addition of
Federal Way to the.Small Business Development Center at Highline CQrnmunilyCollege.for
July 1,20Q6to June 30;2007, With the following conditions of funding:
1) The project is not considered a Federal Way stand-alone project und~r the joint
interlocal agreement for the King County Consortium'~ Community Development
Block Grant (CDBG) program for 2006 through 2008; and,
2) App(op~ate performancemeasur~s for clients served.. and job. creation are negotiated.
in addition to meeitingtheCDBG economic development minimum job creation;. and;
3) King County Economic Development program staff will assure that CDBG
requirements are met for job creation and recordkeeping; and,
Staff Recommendation:
Staff recommends Option 1 because the program meets the economic development strategies
of the Federal Way and kingCounty.Consortium Consolidated Plans by.expandingsr'rlall
businesses in Federal Way and creates jobs~ .Public notiqa will be publj~h~d.ff theCommissic,m
forwards any of the above options to the City Council Committee. Any public comments
received will be included in the City Council agenda packet for consideration.
Commission Recommendation
Forward option _ with the authorization for the City Manager to enter into the appropriate
contracts to implement to the Finance, Human Services and Regional Affairs Committee for
recommendation to the full Council.
Please contact me at (253) 835-2653 or kellio@fedway.org if you have any questions regarding
this item.
Page 4 of 4 5-1
I I
Adopted 09/20/05 . - Attachment 1.
CITY OF FEDERAL WAY
2006 CDSG CONTINGENCY PLAN
The allocation process for 2006 Community Development Block Grant (COBG) funds is based upon
an estimate of Federal Way's 2006 CDBG funds. The City will not know its exact grant amount until
after Congress passes the HUD Appropriation Bill. This is expected to occur by December 2005. For
. this reason, the allocation process includes a contingency plan. The plan allows for adjustment up or
down based upon the final grant amount and/or any additional funds received as the result of project
cancellations or additional recaptured funds.
SHOULD THE GRANT AMOUNT INCREASE OR ADDITIONAL FUNDS B.ECOME AVAILABLE:
. - . " .
Capital Projects -- The City will apply any increase in the amount of CDBG capital fundsasdfollows:
1. If additional capital funds are received,open CbBGproJects servit1gFederal Way residents
thathave been funded by the City of Federal Way and/or the KingCouhty COBGCOnsortium
will be considered for funding.
2. Should no open projects be .identified and/or the Council decide it is not in the best interest of
Federal Way resideritstoadd Federal Way CDBG funds to the project{s), additional funds will
be carried overtothe2b07CDBGprogram year unless the Human ServicesComniission
requests new applications for funds and/or additional Council action is taken to allocatefLinds.
Public Service Programs - The City will apply any increase in the amount of COBG public service
funds as follows:
1. .If any additional public service funds become available, funds will be allocated in reverse
proportion from the 2005 decrease until the programs reach their 2005 funding level. These
programs are: Big Brothers Big Sisters of King and Pierce Counties, Federal Way Mentoring
Program; Community Health Centers of King County Federal Way Dental Access; - Federal
Way Norman Center YMCA, CARES Program; Federal Way Senior Center, Adult Day Care;
Institute for Family Development, PACT program; and, ElderHealth NorthwestConnections
adult day health program; and, .
2. if any additional public service funds become available, fundswill be allocated to the Federal
Way Norman Center for the CARES Program until each program reaches the total amount
requested for 2005; and,
3. If an additional $10,000 of public service funds become available after the first contingency is
fully funded, funds will be allocated to Catholic Community Services for the Katherine's House
Transitional Housing .program; and,
4. If less than $10,000 of public service funds become available and/or any additional public
service funds are received. after the second contingency is fully funded, funds will be allocated
to 2006 CQBG Capital projects as determined above.
Planning and Administration,; The City will apply any increase in the amount ofCDBG planning
and administration funds as follows:
1. Any additional funds for planning and administration activities will be allocated to Planning and
Administration to cover administrative costs for Federal Wats CDBG program;. and
5-5
-----~
I
- Attachment 2
CITY OF FEDERAL WAY
MEMORANDUM
. ...... .
Date: October 6,2005 .
To: Finance, Economi Development and Regional Affairs Committee
Via: David H. Mos ager
From: Patrick Dohe omic Development. Director
Subject: Participation In the all Busln~s Developmen~ Center at Highline
. Community College
POL~CYQUESTJON:
Should the City of Federal Way,partlcipate in the funding ofth~ Small Business
Developmen~ Center at HighUne Communit):' College tq provide assistance to small
buslnesses in Federal Way?
BACKGROUND :
In February 2005, Federal Way was invited to participate in the S.outhwest King County
Economic Development Initiative's Small Business Development Center (SBDC) at .
HighlineCommunity College. The Southwest1<.ingCountyE~non?ie Developm~pt '.' :
Initiative (SKCEn!) includes the citiesof,Burlen, Des Moines, Nonnandy Park, SeaTie ,.
. and'Tukwila;thePortofSeattle, King County andHighlin.e CommunitY College;. As'part '.
ofSKCEDrs goal to generate jobs, increase household:income and encouragequality
development in the mem~er communities, the SBDC was formed in February 2003 to
. provide assistance to small businesses.
The services provided on a one-to-one basis. include assisting entrepreneurs with financial
.. ....
planning. and marketing strategies, production and organizational iSsues, and business
performan~8Ssessment. In addition, businesseshave.access to a wide rang~ of resources
. including tra4ltional and non-tJ1lditional small business lenders, workshops and tndning.
In 2004. SBDC counseled 102 businesses, closed $130,000 in loans, invested $53,500 in
eqUity, and a total of 13 jobs created and/or retained. Year to date in 2005, the c~ter has .
. counsele~ 165 businesses, closed $2.1 million in loans, invested $593,000 in equity,
created 62 new jobs and retained 13 jobs. .
Since i1$ iIJ,ception, approximately 10% or 20-25 of total annual assistance inquiries
representeq Federal Way buSinesses. Highline SBDC has been able to serve a small
number .ofbusiness owners w~o reside in Federal Way hut have businesses.inone of the
cities in the SK.CEDlpartners~ip. Most of the businesses were referred to the Tacoma
SBDC office; however, it appears that the majority of these businesses remain unserved
since Tacoma SBDC counts very few Federal Way businesses among its c~entele.
').. ( 5-G
.Currently, one fuU time Business Development Specialist and a half-time administrative
$UPport personnel staff the SBne at ilighline: The Business DevelopluentSpecialist
hl1n:d1es a full case l~ad of approximately 40-50 per month. lfFedera-1 Way chooses to
participate in the 'program, the Center wiUhave to increase its business development staff
to accommodate the anticipated increase in demancL .lnitiallya half.:time.Business
Development Specialist will be more then sufficient in handling 'Federal Way's
businesses. This change in staffing means an increase of$3S,OOO ift SBDe's 200~
budget.
AU the participants contribute $10,000, with the exception ofSS,()OO from Nonnandy
Park due to the low number of bus messes 10~llted within its boundary. In addition to the
tninimUtncontrlbution, each jurisdiction also actively works with snoe and Highline
CQnmlUnity College to recntit.private spons~I' fin1ding (largetyfr9m banks). Dr'-Mary
Averett, Dean and Director of-the Centerhas been leading this effort. In 2004, SBDC
raised appl'Qximately $30,000 from local banking institutions. A 'budget is attached with
.the memo.
. "Given Federal Way's poplJlation.andnumber ofb\iSinesses (approximately 2,60()"2,800),
SKCEDlhas requested that Federal Way contn'bute a minimum of$35,OOO,.in.any" .
combination of city funds and private sponsor funding, in order to extend SBDC services
to Federal Way's businesses. .. .
PROPOSAL
. . Option 1,. Consider CitY funding for up to . approximately one-half or the projected sane
participation Cost (approximately $17,500) during the upcoming 2006 Supplemental.
Budget process,. to be contingent upon -One-to..one matching contriputionsfrom the
banking community; and, direct staff to seek matching fundingfmm area. banks and
financial institutions.
Option 2. City chooses not to becomeinv()lvedwith the S;BPC ~t this time.
STAFF RECOMMENDATION
I Staffr~mm~nds Option 1.
COMMITTEE ACTION
. "I move to app~ove Option _."
)>.~ 6-7
1
.
Small Business Development Center. at Highline Community College.
I. ORGANIZATIONAL BACKGROUND
. M'l9sion, Aciivitiesand llistory
Mission: The Southwest King County Economic Development Initiative's Small. Business
Development Center (SBDC) ,at HighIine Community College is an all-purpose smail
business resource; providing Southwest King County entrepreneurs with the teclmical
assistance. necessary to .grow their businesses and create and retain jobs in order t~ enhance
the area econoIilY;
Activities: The SBDCis designed to meet the mdividual needs of Sou$westI<ingCounty
, small busiri.eSseg by provi4irig Counseling, trahifug and technical assistance in all aspects of
business management.. The services provided on a one.;to..one basis include assisting.
entrepreneurs with fmancial planning and marketing strategies, aiding them in dealing with
'production and organizational issue~, and helping th~m to assess theperformanQe oftlleir
buS4IeSs. Inadditi6n,$e SaDe offers business ~<>Wtiers access'tQ a wide tangeof
resources including traditional and non-traditional small business lenders, workshops and
training.
The Business Development Specialist (BOS) employed at the SBnC is an experienced
counselor capable of providing business owners with assistance on the full gamut of
management an4 technical topics. ' SpecificaUy~ the BDS may helpenttepre~eurs with:
. E~panding, stabilizing, selling or buying a ,business venture;
. Business planning;
. Analyzing financial data and information;
. Improving marketing tecbniquesand'efforts;
. Starting a business that is past the pre-development stage.
Assistance from the SBDC is available to anyolle interested in starting a sniallbusinQ8Sor
expanding an existing small.business and who 'does tlQt have the. resources. to hire . the ,
services ot's private consultant. The SBnC makes a special effort to serve those
bUsinesses and entrepreneurs who are socially arid economically disadvantaged~ Within the
'. area of the county served by the Highline SBDC there are four cities and an unincorporated
area each with median householp income more than 20% below the median for King
County as a whole. For example, median household income in North Highline (White
Center), an area with a large immigrant and refugee population, is 75% of the County's
median. Moreover, North HigWine is the only ~ensus Tmct in'King County with a
poverty level of over 20%.
.
History: In'1998 an informal partnership between the cities ofBurien,: Des Moines,
Normandy Park, SeaTac and'Tukwila; the Port of Seattle; King County and Highline
. Community College was formed to promote economic development in the area hi
proximity to Sea- Tac International Airport. This partnership, named the Southwest King
County Economic Development Initiative (the Initiative), is an inter';jurisdictional, sub-
regional ~ooperative econoniic development effort whose goals are to I) generate jobs, 2)
1
Southwest King County Economic Development Initiative
Small Business Development Center at Highlinc Community CoUogc , 5~~
D..;3
. .
increase household income aIid 3) encourage quality development in the member
ponununities.. . 0
By collaborating on economic development goals, the partners are able to achieve more
than they can accomplish by each jurisdiction or institution acting individually. It is
. hoped that sOl11.etimeln the future this coope~tive approaclltooeconomic development can
serve as a model transferable to other areas.
The Initiative has produced an economic development plan that, among other things,
evaluated the potential.for real estate development in the area, assessed the strengths and
weaknesses of the Southwest King County economy and identified areas of potential
involvemerit.Theplall,.in turn, was based on a series of economic development
. roundtables and panels which sought to ~coverthe best,means for the area's economic
.develoPnlcnt.. Out otthe planeaiue two impleIIlentation proJects: a small business export
:pro11lotioriprograriUuidthe creation .of the SBDCat Highline. ..
The SBDC was established by the partnership because no such service existed in the area,
a need for small business technical assistance was. observed and a business technical
assistanceetJ.titysuch. as the.SBDC was seen.ils funtlaniental. to businessr6tention.job.
creation and overll1lenhancement of the area's economic base. Iti February 2()03. staff was
hired and the sane opened its .doors. Since its opening, the saoe has served over 90
entrepreneurs and currently has an active case load of 30 businesses. In recognition of its
achievements. the sanc received the 2003 Outstanciini At-Large Business Award from
the Southw~st King County Chamber: of Commerce.
Organitatiof'al Q()fI/s
The SBDe's 2004 organizadpnal goals are to:
1. Secure a coinmitment . from. the Washington State SBne to a) recognize the
Highline SBnC as part of the State System, b) designate the SBbCas an. official
small business development center in 2005 and c) provide partial funding for the
SBnc in 2Q04 and continued funding in 2005.. ..
2. Be recogtiized as the pri1IUlrybusiness i'esoutce center for Southwest KingCOtinty
sm~lbtisii1~es by the area funding institutions, local governnients,reside~tsand
other stakeholders.
3. Act as a catalyst for economic development efforts in Southwest King County
th~ough cooperation and.partnership with the public. priv!lte and non~profit sectors~
II. OP~TIONAL FINANCES
Overview
Funding for the first year of the SBDC's operation (2003) came from a grant from the U.S.
. Economic Development Association (EDA) and matching funds supplied by the Initiative
partners. Year 2004 revenues include a rela.tively small portion of these funds ($7.095)
o . thai have been carried overJmd areavailable to meet expenses. m addition. the mitiative
partners have pledged a total of at least $65,000 for the year 2004 budget. These funds are
2
Southwest King County Economic Development Initiative
Sm-'l BlI$lnw Development Center at Highline Community Conege .
Dr4- 5~r
. .
over and abQve money they had contributed to the. Initiative in the past. Additional "gaptt
I funding totaiing $24,500 has been'~eceived for Key Bank, US Blink, Washington Mutual,
the Puget Sound Energy Foundatio~ Sterling Savings Bank and the State sanc system.
The Initiative is workina with Washington State University (WSU) to have the sanc at
Highline designated as aMI member business deve~opment center within the Washington
State saoc system in 2005. We ate confidentofsecuringthisdesianation.
. .
With the State system designation will come financial support. Howevert the ~tiative.and
the saoc must secure fuD.ding to finance the SBDC's operation in 2005 as well as tQ
establish a b~is for permanent long-term funding.
Future Funding Strategies
Efforts W raise ndditio.no.l turids for both2()041Uld 2005 .~e currently underway.
It is anticipated that-the sanc Will receiVe recogiUtion by the State SaDe as a participant
in the state program. As a result of this designation, up to 50% of the annual operation$.1
expense fQr the S~DC at Highline could be funded by the State. This level of fWiding is
predicated' on the US. Small Busine.ss Administration ~~iving increased fi~cial ~ppc>rt
forthiS fiScaly,ear from CongreSs. IftlUs does not QCcUr.alower levelofteve.tiue~frOm
. . .
the State system wo:u14 be forthcoming. At.whatevet level of support, the local. SaDC will.
have to match the State contribution dollar-for-dollar and at least one-half of the match
must be in cash. Thus, the Initiative will have a role in seeking funding to match the State
contribution in 2005 and beyond.
.S,ollrcesfor Current Year Operations
.-i;:; .
For the current year. the Initiative has secured funding from:
USEDAlInitiative Partner Matching Funds Carryover $7,075
Initiative Partner Funds Received to Date (612004) 30.000
Key.Bank 1,500
Puget Sound Energy Foundation . 5.000
~Uedingaank .. 500
US Bank 5.,000
Washington Mutual 5.000
Washington State SBDC .LiQQ
TOTALFUNDSCOLLBCTED 6/14104 $61,575
The expenditure budget for 2004 is $97,000.
Collection of the remaining Initiative Partner $35,000 will essentially cover year 2004
.budget.
In additio~ other banks and foundations have been contacted. regarding financial support,
, .
especi~ly in tenns of.funds for 2005.
, i3, :
Southwest King County Economic Development Initiative
Small BlISiness Development ~ntcr at Highlinc Community Coltcgc
])-5 5'- to
..
--
.. .
,
III. PROGRAM EVALUATION AND SBDC 2004 GOALS
The SBDC. undergoes scrutiny of its operations both through reports to the ~tiative's
Steering Committee and Executive CQnunitteeon a monthly and quarterly basis
respectively. These reports include a discussion of:
. Outreach efforts;
. Number of core clients served and a summary of their diversity;.
. A brief narrative on the nature of the teohnical assistance provided and to What
extent the assistance provided created or retained jobs and increased or stabilized
revenues.
.At the end of the y.e!ll'. the SBDCwilrheevaluatedon the basis of the goals its 2004 goals
estabHshed. at the beginningQfthtry~:
'. '. . . .
1. Did the"SBDe serve 30 core clients dwingthe year?
2. Were 100 clients referred to other business res~>urces in 2004?
3. Did six clients comple~ a buSineasplan during the year? '.:
4. Did six clientS complete and make application forftmd.ingtheirbusiness operation
during 20041 . . '.
.
.
.
!
4
Southwest King County Economic Development Initiative
Small Business Development Center at Highlinc CommuniI)' Collc~c
J)"':b 5-[1
.
-
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,5-/~
THE HIGHLINE SBDC
WORKING IN THE COMMUNITY
IN 2005
L.. SBDC Counselin~ Makes A Difference
(]) 2005 2004
......... Local Businesses Helped by SBDC Counselor 139 91
c:: . Jobs Created or Saved in the Community 44 .23
(]) Additional Funding Acquired for Local Businesses $4i64O,155 $229,500
U SBDC Client Success " The saDe helped me control my marketing
......... A Plus Flooring costs. I made the final decision, but going
C Installing floors Is no easy task,and developing a through the process with the SSDe counselor
smalt business to Install flooring Iseveli harder. was a hugehelp/"
(]) James Sorensen, owner of A Phis Flooring, Is well
aware of the complexity of starting a new business.
E Knowing there were many aspects of business devel- SBDC Client Satisfaction*
opment to concentrate on, he approached the SBOC
for technical assistance in bringing his Ideas of start-
Ing up a business to fruition.
0 With the help of a SBOCcounselor,the owner ob- Responded to ClientNee~s? 100%
talned successful business plan coaching, developed a
.";"",;,,,I. powerful and.effectlve marketing plan,andgalned
(]) human resource knowledge. With all of this profes- Recommend to Others? 100%
slonal aclvlce, James opened the doors to his new
> business In 2004 and is on his way to having long-term
success. Counseling Services Rated
(]) Sorensen credits the SBOC with helping to control Hghly? 100%
0 marketing costs, Identifying how best to use advertis- *2004 Survey j)ata
lng, and giving him the confidence needed to proceed
with moving ahead and opening .hls own business.
(/) James Sorensen is building the foundations of success
for his. business, thanks In .paitto the SBOC.
en SBDC Counseling Clients
(]) 1
"The SSDe gave me the confidence to proceed Male 55%
C with my business and helped me see that my
. ..... concept was more than a pipe dream." Female 45%
(/)
::J Business Sectors Served by the SBDC Veterans 13%
.t:C Asian, Black/African American, 23%
Hawaiian/Pacific Islander
Native American/ 1%
--' American Indian
--' I Wholesale 5%
to Construction 3% Hispanic 7%
E Other 14%
www.wsbdc.OI1
t.n
5-[+
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THE SBDC NETWORK
WORKING STATEWIDE IN 2005
V) SBDC Counseling Makes A Difference
L.. 2005 2000- 2004
(]) Local Businesses Helped by SBDC Counselor 3,290 15,412
+-I Jobs Created or Saved in the Community 1,888 7,578
c: Additional Funding Acquired for Local BusineSses $104,483,443 $271,092,642
(])- EstimatedSales Impacts. for Business~s (ROI) $288,334,201 (87:1)
Additional State TaXes Collected. $7,9r4,138
U
SBDC Client Success
"It is impossible to understand all the governmental
+-I us Sheet Metal resour(:es, especially in international arena without
Doug Johnson Is the 2l1!1generatlon' owner of us Sheet Metal. . Since
C the 1950's the fIrm has bilen providing the-archltectural sheet metal a gu.ide, The SBDC provided this valuable.help~o
w6tk on some ciflherealon's most notable .bulldinlis~ He had oper- US, apened doors and theguidan(:e an how best to.
(J) .ated thecompanysilccesSf!Illy for 15 years employlngJO highly
skilled and paid workers. Four years ago the flrm went through a appraach resaurces. " - Tacoma
challenging ownership transition, with Doug buying out some of the
E minority partners. In addition, the market was changing, and the SBDC Business Clients' Performance vs.
business was facing a troubled future. In 2002, Doug called the
SBOC, and during the Initial counseling session, Ooug explained his Other Businesses in the State
desire to flnd a way to continue to employ his long standing work
force, find new revenue and put the firm on soUd financial footing
Into theJuture. The.SBOC counselor helped.Ooug produce a new
0 strategic 'plan, obtain marketlllg research, and explore new stretch % Change In
buSiness Initiatives In order to meet the goals outlined In the Initial . Sales
--' sesslori.lnresponse to these plans, DoUg purchased a $1.1 million 23.2 "
. showroom for homefurnlshfngs an.d chic Industrlalldtchen. This new
(J) venture will help keep Doug's facfllty fuU of work and keep his work-
ers employed. With the SBDC's assistance and a new outlook, US % Change in
> Sheet Metal will continue Its viability well into the future. EmplQyment
(]) "Traditional lending institutions are not used to 14.7%
funding new growth technology companies. With the t-'- 3.6"
0 SBDC's help, Keymaster has been able to accelerate .~
its growth and profitability." - Tti.Cities
en
V) SBDC TrainihgEmeowers Small Businesses
(J) 2005 2004.2000
c: # of Training Sessions Held for Small Business Owners, 549 1,710
Managers, and Employees
. ..... # of Small Business Owners, Managers, and Employees
V) 6,376 21,162
:J Who Attended Training Sessions
C!l BU$iness Sectors Served by th~ SBDC SBDC CounseHngClients
Pre-Venture 9% Male 51~
--' Other 2% Female 48111
--' Retail 22%
tt1 No Reply 1111
E Veterans 1l1ll
Asian, Blackt African American, 1271;
HawaIIan/Pacific Islander
V) American Indlant Alaskan Native 3%
Hispanic 6~
www.wsbdc.o~
6-1S-
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7- l
A MESSAGE FOR THE HUMAN SERVICES COMMISSION Page 1 of 1
Kelli ODonnell- A MESSAGE FOR THE HUMAN SERVICES COMMISSION
From: "AVERETT, MARY" <maverett@highline.edu>
To: <KellLODonnell@cityoffederalway.com>
Date: 5/11/2006 12:51:44 PM
Subject: A MES~AGE FOR THE HUMAN SERVICES COMMISSIQN
CC: "A VEREIT, MARY" <maverett@highline.edu>
Ke11i: Please share this message with the Human Services Commission. I sure wish I or Zev could be there with you
for this meeting. You did such anice job putting together the pieces. Please call me with the neWs at
Dear Federal Way Human Service Commissioners:
I wis.lilcoul<ibethe!~ to~ght to: answer any questions you might have about the issllebefot:e you, thatofCDBG funds
providing a portion of the funding of small business development services for Federal Way residents. I Write withjiIst
a few points to add to the materials Kelli provided for you.
. .
1) CDBG funds are used in many places around the country to provide these services for residents of CDBG program
areas. This WOull:! not be a new use of CDBG funds, and this plan, with CDBG covering only a portion of the funding
will leverage CDBGfunds well. ..
2) Most ofthe business owners and operators who use the SBDe services qualify under CDBGincome guidelines.
Nationwide, a huge percentage of the clients served by SBDCs have low to moderate income levels. They don't always
stay there, because the SBDC helps small and medium sized businesses. succeed at a higher rate than they do on their
own. See materials Kelliprovided.
3) Ifwhat occurred ill the.other :tive cities that the Highline. SBDC has. servecl now for 3 years beco:q1es,~e in Federal
Way, and lpredict it will, within six moriths, you will begin to see real arid substantiv.e outcomes you cau:Cite as
bene~ts 9f having provided CDBG funding. . There will be jobs created, jobs saved, loans acquired to grow businesses
and equity investment to show for your commitment of these funds. In addition, there will be great stories from
Federal Way businesses who are happy with the services.
You will be.amazed athow helpful no~cost-to-the-reCipient business development counseling and education can be to. i
smart-people who are in busineSs, or thinking of starting a business; it helps them separate the forest from the trees, it. I
helps them figure out what they need to do to move their businesses forward; it helps them with the technical
information and skills that they can't yet afford to hire, but that they need in order to grow. Federal Way has thousands
of small businesses will havethe opportunity to benefit from this service, and CDBG funding is key to the project
coming together for Federal Way.
Sincerely,
Mary Averett, Dean .
Highline Community College
Center for Extended Learning
and SBDC Director
file://C:\Documents%20and%20Settings\default\Local%20Settings\ Temp\GW} 00003 .HTM 5/11/2006
"
A Sampling of Achiever Clients
Small Business Development Center
First Quarter 2005
Below is a sampling of five of the 60+ local businesses served by the SKCEOI-
fu~ded Highline SBDC duril1g. the fir~t three months of2Q05.E?1ch of these
enterprises is from a ,different city~ All of them work closely with the SSOC and all
have created jobs and economic activity beyond ' what might have occurred
without.$E3pe support..Relet3~e of this information has bee'n grantedby each
" .
owner/operator:
Barry Rodda
Rodda & Sons
SeaTac, Washington
Land~cape designahd installation. Fourteen employees. Worked closely with,
SBOCon marketing. strategy andtac:tics toidelltifymarketsegments and connect
more effectively with them. Sales are !JP 20% over prior year. Has added 3 full-
time positions."
, TodBookless
Internet Auction Services
Tukwila, Washington
Automobile sales for dealers and for individuals on the Internet at this address:
www.illternetauctionservices.com. Owner worked closely with SBne on. business
plan.Site is now up an.d running_Created 1 fuU-tlmeposi~ionthisyear.
Anile. Basco
Normandy Park Yoga
Normandy Park, Washington
An established, active yoga studio and an instructor training facility. Owner
worked close.ly with saoc on marketing, btjdgeting, forecasting. Owner now
~mploY$ f6.ur part-:-time instru~tdrs and also operates off-site serriinar$~ .. '
David Goretski
Soggy Doggy I
D~sfv1oines,WashiHgtc)l:l
~ self-:-serve.dljg-W<ish.facilityand dog accessories. store~ ~owworking closely ,
with the $BDCon funding and opening a second location. Busin~ss plan., loan . !
application package and site selection are the key issues. New store will create i
i
four new jobs. I
I
Kevin Foxen I
Kevin & Sean's A Place for Pets I
Burien" Washington
Start-up by.exp.erienced operator. Worked closely with the SBDe on aU aspects:
business plan, financing plan, loan package, identifying a business partner,
leasing, marketing. Creating 4 full-time positions. SBA loan has been funded.
Opening late April 2005.
Brief Success Stories
Burien
The owner of a 1 O-pe~on landscaping company contacted The Highline. Small ~usiness
Development Center because his ,sales hadn't groWn fot three years in a row.. The SBDC
supported a thorough evaluation by the owner of the company's marketing. Weak areas
were identified and strategies to fix them have been put in place. Sales are now 10%
ahead of last year aJ,ld rising:stell.<iily;.And this SBDC client h~ hit~d two more
employees: a designer and a work-crew supervisor
Tukwila
The owner of a 125-person manufacturingcorilpany contacted The Highline Small
Business Development Center because he needed toleammoreabout how t.ogo ab.out
replacing his marketing director. A new director is on element or the company's plan to
increase sales. The SBDC researched executive search firms that specialize in marketing
managers and provided theclieIit with:a list of three highly quaIifie4 firms. The dieJ).t
. '. . .
irltervieVied the $"eesearchf'irms,.selected pne.andJbehunt is.tlow onior the.new'
. marketing director. Thedientrecently. requested additional assistance from the SBDC for
developing strategies to growa$150,000 product line into a $500,000 division with the
potential to create six new full-time jobs.
. .
SeaTac
T.h~owner of a large, for-profitgymhastics n:aining facility contacted The HighliileSmall
Business DevelopmenfCenterJor .support in increasing her client.base. TheSBOC i
worked. closely with her ta first develap an easy..to..usedatabase ofreferra.l cantacts at i
schaals arid caminunity organizatians and ~en to enable thase contacts to more easily
refer students. The client has hired a person to coardinate this marketing project; as the I
i
project continues it's anticipated that increased emollmentwill create twa new part-time
instructor positions.
Normandy Park
. The owner ofan exercise studio contacted The Highline Small Business Development
Center for assistance in developing a special-focus marketing program. The SBDC
supported the client as she develOPed a strategy, a plan and the details for each tactic. As
a result of this plan membership Iia~dncreased and the studia is enjoying increased .
revenues. . I
Tukwila i
I
An experienced businessperson contacted The Highline Small Business Development I
i
I
Center for help iIi completing a business plan and obtaining a bank loan. With support i
. I
from the SBDC, the client has leased a high-traffic Tukwila lacation, purchased a i
franchise and is applying for a $140,000 SBA-guaranteed bank loan. This business will I
create two new full-timejobsanqthree part~time positions. !
I
i
I
____________n_____ ______
COUNCIL MEETING DATE: June 6, 2006 ITEM
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: Proposed Washington State Parks and Recreation (Dash Point Park) Sewer Line and
Park Utilities Franchise
POLICY QUESTION: Should the City grant the Washington State Parks and Recreation a Franchise to operate and
maintain a sewer line and other park utilities within certain Rights of Way and streets within the City of Federal
Way?
COMMITTEE: FHSRAC MEETING DATE: May 23,2006
CATEGORY:
0 Consent ~ Ordinance 0 Public Hearing
0 City Council Business 0 Resolution 0 Other
~!~I!:F.:~~2~!_!l.y.:~~!.1.Mg!~~'.Q~P~1:yQ~E~~!<?~_ DEPT: Public Works
"..""""...,...."""'.,..,....-,..--.."......... ' ...........M'......._..M..__......... .
Attachments: FHSRAC memorandum, Attachment A
Ordinance, Attachment B
Options Considered:
1. Recommend approval of the Ordinance and forward to the full Council for first reading at the June 6,
2006 meeting.
2. Recommend rejection of the Ordinance.
3. Recommend modification of the Ordinance and forward to the full Council for first reading at the June 6,
2006 meeting.
..,......,..............M.. ....'...M...._.. ,,',............'.................................. ...................." ....................................~....... . ..........M....... ...................................................-........... . .........H.__..__....... ...................HH._..........
STAFF RECOMMENDATION: Approve the Ordinance and forward to the full Council for first reading at the June
6,2006 meeting. (Option 1)
CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL: &~
Council Committee Council
COMMITTEE RECOMMENDATION: Forward Option 1.
Jack Dovey, Chair Eric Faison, Member Dean McColgan, Member
PROPOSED COUNCIL MOTION: "] move to approve the draft ordinance with an effective date of July 24,
2006, placing it on the June 20, 2006 City Council Consent Agenda./iJr second reading. "
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
0 APPROVED COUNCIL BILL #
0 DENIED 1 ST reading
0 TABLEDIDEFERREDINO ACTION Enactment reading
0 MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 02/06/2006 RESOLUTION #
Attachment A
CITY OF FEDERAL WAY
MEMORANDUM
DATE: May 23, 2006
TO: Finance, Human Services and Regional Affairs Committee
VIA: Derek Matheson, Interim City Manager ~0
FROM: Ken Miller, P.E., Deputy Public Works Director
Cary M. Roe, P .E., Public Works Director
SUBJECT: Proposed Washington State Parks and Recreation (Dash Point Park) Sewer
Line and Park Utilities Franchise
BACKGROUND
The basic terms of the proposed franchise are as follows:
1. Equipment. The franchise would permit Washington State Parks and Recreation to
maintain and repair a currently existing sewer line and construct and install new utility facilities
within City Rights-of-Way.
2. Consideration. Washington State Parks and Recreation will pay the City's administrative
costs and expenses in preparing and approving the franchise. Washington State Parks and
Recreation will also relocate its facilities at the City's request, at their cost, and repair any damages it
causes to the right-of-way.
3. Insurance. Washington State Parks and Recreation will maintain insurance of$5 Million
combined single limit for commercial general liability and $5 Million for automobile insurance. The
franchisee may self-insure against such risks in such amounts consistent with good utility practices.
4. Term. The term ofthe proposed franchise is 10 years, consistent with franchises the City
has granted to Tacoma Power, CFC, Olympic Pipeline, for pipeline maintenance, AT&T (now
Comcast), for cable; Puget Sound Energy; Tacoma Public Utilities Water Division; Weyerhaeuser,
Sprint, Metromedia and Williams (for fiber optic cable), VoiceStream and Cingular (for wireless
facilities).
5. Bond. The proposed franchise does not require Washington State Parks and Recreation to
post a bond for work in the right of way since it is a public utility. However, the franchisee will be
required to obtain a right of way permit in accordance with this Franchise.
k:\fhsrac (fedrac)\2006\05-23-06 washington state parks franchise.doc
- ------- ----- -----~._._._---------
Attachment B
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, GRANTING
WASHINGTON STATE PARKS AND RECREATION A
NONEXCLUSIVE FRANCHISE TO OCCUPY RlGHTS-OF-
WAY OF THE CITY OF FEDERAL WAY, WASHINGTON,
WITHIN THE SPECIFIED FRANCHISE AREA TO
CONSTRUCT, MAINT AIN, REPAIR, OPERATE, AND
REMOVE GRAVITY SEWER LINE, AND OTHER
UTILITIES, WITH ALL CONNECTIONS AND
APPURTENANCES THERETO, FOR STATE PARK
PURPOSES, WITHIN AND THROUGH CERTAIN RIGHTS
OF WAY AND STREETS WITHIN THE CITY OF FEDERAL
WAY.
WHEREAS, Washington State Parks and Recreation has requested a franchise from the City
of Federal Way, in order to construct, operate and maintain a sewer line connection and other utilities
for State Park purposes through certain public rights-of-way, including SR509 (Dash Point Road);
and
WHEREAS, the City Council of Federal Way finds that it is in the public interest to grant
such a franchise, which will specify the rights and duties of Washington State Parks and Recreation;
and
WHEREAS, RCW 35A.47.040 permits the City of Federal Way to grant nonexclusive
franchises for the use of public streets, bridges or other public ways for, inter alia, for conduits,
tunnels, pipes and wires and appurtenances thereof for transmission and distribution of electrical
energy, signals and other methods of communication, for water, sewer and other private and publicly
owned and operated facilities for public service; and
ORD# , PAGE 1
---
WHEREAS, in granting such a nonexclusive franchise, the City of Federal Way reserves
such other powers and authorities granted to Washington code cities by general law;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Definitions
Where used in this Franchise the following terms shall be defined as follows:
1.1 "City" means the City of Federal Way, Washington, a municipal corporation ofthe
State of Washington, and its respective successors and assigns.
1.2 "Council" means the City of Federal Way Council acting in its official capacity.
1.3 "Director" means the Public Works Director, or designee, ofthe City of Federal Way
Public Works Department.
1.4 "Facilities" means Franchisee's equipment to be located within the public right-of-
way.
1.5 "FWCC" means the Federal Way City Code.
1.6 "Franchise Area" means only that portion of South West Dash Point Road, 55th
A venue South West, South West 320th Street, and 47th A venue South West rights-of-way located in
the City ofF ederal Way and shown in Exhibit A attached hereto, and/or any other areas approved by
the Federal Way City Council and incorporated into this Ordinance via amendment.
1.7 "Franchisee" means Washington State Parks and Recreation, a State Agency, and its
respective successors and assigns if consented to by the City ofF ederal Way as provided in Section
22 herein.
ORD# , PAGE 2
------------------ ----------~- -- -------------
Section 2. (;ranVAlcceptance
2.1 Grant of Franchise. The City hereby grants to Franchisee the nonexclusive right to
enter upon the Franchise Area for the limited purpose of constructing, excavating, installing,
maintaining, restoring, and repairing Facilities within the Franchise Area. This franchise is
specifically limited to the right for Franchisee to install Facilities owned and operated by Franchisee.
This franchise does not permit Franchisee to lease, rent, or otherwise allow use of conduits, space or
capacity provided by the Facilities to other third-party telecommunications providers, and Franchisee
covenants and agrees that it will not do so.
2.2 Acceptance by Franchisee. Franchisee shall have no rights under this Franchise, nor
shall Franchisee be bound by the terms and conditions of this Franchise, unless Franchisee shall,
within sixty (60) days after the effective date of this Franchise, file with the City its written
acceptance of this Franchise and all of its terms and conditions.
Section 3. Non-Franchise Alrea City Property
This Franchise does not and shall not convey any right to Franchisee to install its Facilities
on, under, over, across, or to otherwise use City-owned or leased properties of any kind outside the
Franchise Area, or to install Facilities on, under, over, across or otherwise use any City owned or
leased property within the Franchise Area other than public roads, streets, avenues, alleys and
highways.
Section 4. Term
Subject to Franchisee filing its acceptance pursuant to Subsection 2.2, the term of this
Franchise shall be for a period often (10) years commencing on the effective date ofthis Franchise,
unless terminated earlier pursuant to this Franchise or other applicable law. At any time not more
than two (2) years nor less than one-hundred-eighty (180) days before the expiration ofthe Franchise
ORD# , PAGE 3
----~--------- -----------------------
or renewed term either party may request a renewal of the Franchise for an additional ten (10) year
renewal period.
Section 5. Location of Facilities
5.1 Location. The Facilities permitted by this Franchise shall be installed underground.
The location ofthe Facilities, including the underground Facilities and appurtenances, their depths
below surface of ground or grade of a right-of-way, and any related existing equipment to which the
Facilities are connected shall be depicted on a map and submitted to the City within thirty (30) days
of the installation of the Facilities. Upon written request of the City, Franchisee shall update such
map to reflect actual or anticipated improvements to the system. Any such map (or update thereof)
so submitted shall be for informational purposes only and shall not obligate Franchisee to undertake
any specific improvements, nor shall such map be construed as a proposal to undertake any specific
improvements.
5.2 GIS Data. At such time as Franchisee develops or employs Geographic Information
System ("GIS") technology, Franchisee shall submit the information required in Subsection 5.1
above in digital GIS format, showing the location of its Facilities within the Franchise Area.
5.3 Design Markings. In the event the City desires to design new streets or intersections,
renovate existing streets, or make any other public improvements, Franchisee shall at the City of
Federal Way's reasonable request, provide the location of Franchisee's underground Facilities within
the Franchise Area by either field markings or by locating the Facilities on the City's design
drawings, and shall provide all other reasonable cooperation and assistance to the City.
Section 6. Noninterference of Facilities
Franchisee agrees to maintain its Facilities and perform any and all activities authorized by
this Franchise: (1) so as not to unreasonably interfere with the free passage of traffic; (2) in
ORD# , PAGE 4
------------------
accordance with the laws of the State of Washington and City Code requirements, franchise
provisions, regulations, resolutions and rules, as now existing or as hereafter amended; and (3) as
required by the Director. This requirement applies whether or not the work is performed by the
Franchisee, its agents, employees, subcontractors, or other third parties at Franchisee's direction.
Section 7. Requirement to Obtain Permits
7.1 Permits and Permit Applications.
Franchisee shall, at its expense, obtain all permits, (including rights-of-way permits), and pay
all permit fees required by applicable City ordinances, regulations, resolutions and rules prior to
commencing any work within the Franchise Area. Franchisee permit applications shall show the
position and location of the proposed facilities to be constructed, laid, installed, or erected at that
time, show their relative position to existing rights-of-way or property lines upon prints drawn to
scale, designate rights-of-way by their names and improvements, such as, but not limited to,
sidewalks, curbs, gutters, shoulders of roadway, ditches, paved roadways, roadways to property lines,
turnouts, parking strips, telephone or electric distribution poles, and water pipes existing on the
ground to be occupied, or as required by the Director. The Franchisee shall specify the class and type
of materials to be used, equipment to be used, and mode of safeguarding and facilitating the public
traffic during construction. Materials and equipment shall be in new or like-new condition for its
type and kind. The manner of excavation, construction, installation, backfill, and temporary
structures such as, but not limited to, traffic turnouts and road obstructions shall meet the standards
ofthe FWCC and be satisfactory to the Director. All traffic control shall be in accordance with the
right-of-way permit, and shall be in accordance with the Manual on Uniform Traffic Control Devices
(MUTCD). The Franchisee shall indicate on any permit application the time needed to complete the
ORD# , PAGE 5
work. The time needed to complete the work is subject to approval by the City as a condition ofthe
issuance of the permit or approval.
7.2 Emergency Exception to Permit Requirement.
In the event of an emergency in which Franchisee's Facilities within the Franchise Area are in
a condition as to immediately endanger property, or the life, health or safety of any individual,
Franchisee may take action immediately to correct the dangerous condition without first obtaining
any required permit so long as: (1) Franchisee informs the City of nature and extent of the
emergency, and the work to be performed, prior to commencing the work; and (2) such permit is
obtained by Franchisee as soon as practicable following cessation ofthe emergency.
Section 8. Standard of Performance
The Franchisee shall not excavate for a distance of more than one hundred feet (100') without
immediately backfilling and compacting to surface grade and city standards. Backfilled trench areas
within a driving lane must be patched, either temporarily or permanently, before the end ofthe work
day in which they have been opened. Trench areas within the right-of-way, but not within a driving
lane, must also be patched within the time limits specified by the City on the right-of-way use permit.
Final surface restoration shall be completed within thirty (30) days and shall be equal to or better
than the surface condition prior to permit issuance.
Any asphalt overlay completed within the Franchise Area during the five (5) year-period
immediately prior to the date of permit application shall not be open cut by Franchisee unless
required by an emergency and subject to the provisions of Subsection 7.2 above. Franchisee shall
install new asphalt overlay on any street that is open cut, whether in an emergency or otherwise, for a
minimum of one (1) block (approximately 500 feet) in length in both directions from the open cut,
unless determined otherwise by the Director.
ORD# , PAGE 6
----
Within fifteen (15) days of completion of any installation of Franchisee's Facilities within the
Franchise Area, Franchisee shall submit to the Director plans, stamped by a Professional Engineer
licensed by the State of Washington, showing the "as-built" location ofthe Facilities.
Section 9. Survey Markers and Monuments
Franchisee shall, using a licensed surveyor, immediately replace all markers or monuments
disturbed during any work by Franchisee within the Franchise Area. Franchisee shall pay all costs
associated with such lost, destroyed or disturbed monuments or markers.
Section 10. Surface Markin2s/Stakes
Prior to Franchisee commencing any excavation work within the Franchise Area, Franchisee
shall reference all monuments and markers relating to subdivisions, plats, highways, and other
surveys, said work shall be completed by a Professional Land Surveyor. The reference points shall
be located so that they shall not be disturbed during the Franchisee's operations under this Franchise.
The method of referencing these monuments or other points shall be approved by the City before
placement. The construction shall be made as expeditiously as conditions permit, and as directed by
the City. The cost of monuments or other markers lost, destroyed, or disturbed, and the expense of
replacement ofthe monuments, shall be borne solely by the Franchisee. A complete set of reference
notes for monuments and other ties shall be filed with the City.
Section 11. Ri2ht of City to Complete Work
In the event Franchisee fails to comply with any applicable federal, state or City laws,
ordinances, rules, regulations or standards or with any of the terms of this Franchise, and such
noncompliance continues for a period of ten (10) days after Franchisee receives written notice from
the City regarding the noncompliance, the City may, but in no event is the City obligated to, order
ORD# , PAGE 7
1-..-- _____.__m__ ---~---- -----_..__._.__._~_._..__._-_._----
any work completed, including without limitation Franchisee's obligation to repair pursuant to
Section 13 herein and Franchisee's obligation to remove or relocate facilities pursuant to Section 12
herein. If the City causes such work to be done by its own employees or by any person or entity
other than Franchisee, Franchisee shall, upon the City's written request, immediately reimburse the
City for all reasonable costs and expenses incurred by the City in having such work performed,
which costs may include the City's reasonable overhead expenses and attorneys fees. However, the
City shall not have any electrical work accomplished by any person or entity other than Franchisee or
a qualified and licensed electrical contractor.
Section 12. ReQnired Relocation of Facilities
12.1 City Reservation of Rights. The City reserves the right to use, occupy and enjoy all or
any part ofthe Franchise Area, either above, below, or adjacent to the Facilities, for any purpose that
is not inconsistent. with the terms and conditions of this Franchise. The rights reserved herein
include, without limitation, the construction, installation, and/or maintenance of any electrical, water,
sewer or storm drainage line, traffic signals, street lights, trees, landscaping, bicycle paths and lanes,
equestrian trails, sidewalks, other pedestrian amenities, and other public street improvement projects.
This Franchise is not an exclusive Franchise and shall not be construed to in any manner
prohibit the City from granting other and further Franchises in, under, over, upon, and along the
Franchise Area, nor from exercising such other powers and authorities granted to the City by the
Washington State Constitution and general law.
12.2 City's Duties. In the event the City undertakes any work, including necessary
maintenance within a right-of-way in which Franchisee's facilities are located, and such work
necessitates the relocation of Franchisee's then existing Facilities within the Franchise Area, the City
shall:
ORD# , PAGE 8
r--- - --------..----------.-- ------_.._._----~ --- ------------
(a) Provide written notice of the required relocation to Franchisee within a
reasonable time prior to the commencement of such City work; and
(b) Provide Franchisee with copies of pertinent portions of the City's plans and
specifications so that Franchisee may relocate its Facilities to accommodate the City work.
Nothing in this section shall be construed as to relieve Franchisee of its duty and obligation to
relocate its Facilities, at Franchisee's sole cost, for any improvement project undertaken by, or on
behalf of, the City in the interest of public health, safety, welfare, necessity or convenience, as
adjudged in the sole discretion ofthe City.
12.3 Franchisee's Duties. Within thirty (30) days of receipt of the City notice under
Subsection l2.2(a) requiring relocation and receipt of the plans and specifications pursuant to
Subsection l2.2(b), Franchisee shall raise, lower, or move such Facilities within the Franchise Area
at its sole cost and expense to the location or position directed by the City, to cause the least
interference with the improvement, repair, or alteration contemplated by the City and to conform to
such new grades as may be established. If the City improves a right-of-way, Franchisee shall, at its
sole cost and expense, upon receipt of notice, replace the Facilities located in the improved subgrade
of the improvement with substitute Facilities conforming to the specifications for the improvement
ofthe right-of-way.
12.4 The provisions ofthis Section shall in no manner preclude or restrict the Franchisee
from making any arrangements it may deem appropriate when responding to a request for relocation
of its Facilities by any person or entity other than the City, where the Facilities to be constructed by
said person or entity are not or will not become City-owned, operated or maintained Facilities;
provided that such arrangements do not unreasonably delay a City improvement project.
ORD# , PAGE 9
-------------------- - - -----------------------
Section 13. Dama2e Repair
In case of damage by the Franchisee, its agents or employees or by the Facilities of the
Franchisee to rights-of-way, or to public and private improvements within or adjacent to rights-of-
way, the Franchisee agrees to repair the damage at its own cost and expense. The Franchisee shall,
upon discovery of any such damage, immediately notify the City. The City will inspect the damage,
and set a time limit for completion of the repair. If the City discovers damage caused by the
Franchisee to rights-of-way, or to public and private improvements within or adjacent to rights-of-
way, the City shall give the Franchisee notice of the damage and set a time limit in which the
Franchisee must repair the damage. In the event the Franchisee does not repair a right-of-way or an
improvement as required in this section, the City may repair the damage pursuant to Section 11 of
this Agreement.
Section 14. Default
14.1 Notice of Default. In addition to other remedies set forth herein, if Franchisee shall
fail to comply with any of the provisions of this Franchise, the City may serve a written notice to
Franchisee ordering such compliance and Franchisee shall have sixty (60) days from the receipt of
such notice in which to comply.
14.2 Revocation of Franchise. If Franchisee is not in compliance with this Franchise after
the expiration of the sixty (60) day period, the City may, by resolution, declare the franchise
immediately revoked.
Section 15. Limited Ri2hts
This Franchise is intended to convey only a limited right and interest to Franchisee in the
Franchise Area. This Franchise is not a warranty of title or conveyance of any ownership interest in
or to the Franchise Area to Franchisee.
ORD# ,PAGE 10
--------- -------- ___n_____________
Section 16. Vacation
If at any time the City, by ordinance, vacates all or any portion ofthe Franchise Area, the City
will not be liable for any damages or loss to the Franchisee by reason of such vacation. The City shall
notify Franchisee in writing not less than 30 days before vacating all or any portion of the Franchise
Area. The City may, after thirty (30) days written notice to Franchisee, terminate this Franchise with
respect to any such vacated area.
Section 17. Compliance with Laws
17.1 General. Franchisee shall comply with all applicable federal, state and City laws,
franchises, resolutions, regulations, standards, policies and procedures, as now existing or hereafter
amended or adopted, including without limitation the State Environmental Policy Act; provided,
however, that if any term or condition of this Franchise and any term or condition of any City law,
code, franchise, resolution, regulation, standard, procedure, permit or approval are in conflict, the
term or condition of this Franchise will control.
17.2 Future City of Federal Way Regulation. Franchisee acknowledges that the City may
develop rules, regulations, ordinances and specifications for the use ofthe right-of-way which shall
govern Franchisee's Facilities and activities hereunder as if they were in effect at the time this
Franchise was executed by the City and Franchisee covenants and agrees to be bound by same.
Section 18. Guarantee
Franchisee shall guarantee work completed by the Franchisee under this Franchise for a
period of 10 years against settlement or repair.
Section 19. Chan!e for Administrative Costs
Franchisee agrees to pay a fee or a charge to recover the actual reasonable administrative
expenses incurred by the City that are directly related to preparing and approving this Franchise.
ORD# , PAGE 11
--- ---------------
Nothing herein shall preclude the City from charging administrative fees or recovering any
administrative costs incurred by the City in the approval of permits or in the supervision, inspection
or examination of all work by Franchisee in the Franchise Area as prescribed in accordance with
applicable provisions ofthe Federal Way City Code.
Section 20. Indemnification
Franchisee agrees to indemnify and hold harmless and defend the City, its elected officials,
officers, employees, agents, and volunteers from any and all claims, demands, losses, actions and
liabilities (including costs and all attorney fees) to or by any and all persons or entities, including,
without limitation, their respective agents, licensees, or representatives, arising from, resulting from,
or connected with this Franchise to the extent caused in part or in whole by the acts, errors or
omissions of the Franchisee, its officers, agents, employees, or by the Franchisee's breach of any
provisions ofthis Franchise; provided, however, that this section shall not be construed as requiring
Franchisee to indemnify, hold harmless or defend the City against claims or damages arising from
the negligence ofthe City, its agents or employees. In the event any claim, demand, suit or action is
commenced against the City that gives rise to Franchisee's obligation pursuant to this Section 20, the
City shall promptly notify Franchisee thereof. Franchisee's selection of an attorney to defend any
such claim, demand, suit or action shall be subject to the City's approval, which shall not be
unreasonably withheld. Franchisee shall not settle or compromise any such suit or action except with
prior written consent of the City, which shall not be unreasonably withheld. The City shall have the
right at all times to participate through its own attorney in any suit or action which arises pursuant to
this Franchise when the City determines that such participation is required to protect the interest of
the City or the public. In the event it is determined that RCW 4.24.115 applies to this Franchise,
ORD# ,PAGE 12
Franchisee agrees to defend, hold harmless and indemnify the City to the maximum extent permitted
thereunder, to the full extent of Franchisee's negligence.
Section 21. Insurance
The Washington State Parks and Recreation Commission, an agency of the State of
Washington, warrants that it is self-insured against liability claims in accordance with the risk
management and tort claims statutes, including RCW 4.92 and RCW 43.21.280 et seq. The tort
claims procedure, RCW 4.92.100 et. seq. provides the fundamental remedy for all tort liability
claims against the Agency and its officers, employees, and agents acting as such and all such claims
must be filed and processed as provided therein.
21.1 Minimum Limits. The Franchisee agrees to carry as a minimum, the following
insurance, in such forms and with such carriers as are satisfactory to the City.
(a) Workers compensation and employer's liability insurance in amounts
sufficient pursuant to the laws of the State of Washington;
(b) Commercial general liability insurance with combined single limits ofliability
not less than $5,000,000 for bodily injury, including personal injury or death, products
liability, contractual coverage, operations, explosion, collapse, underground and property
damage; and
(c) Automobile liability insurance with combined single limits ofliability not less
than $5,000,000 for bodily injury, including personal injury or death and property damage.
21.2 Mandatory Insurance Provisions. The comprehensive general liability insurance and
automobile liability insurance policies shall be endorsed to contain the following provisions:
(a) The City, its officers, elected officials, employees, and volunteers are to be
named as additional insured;
ORD# , PAGE 13
_m_._m
(b) Coverage shall apply separately to each insured against whom claim is made
or suit is brought, except with respect to the limits of the insurer's liability;
Coverage shall not be suspended, canceled, modified or reduced except after thirty (30) days
prior written notice to the City delivered by certified mail, return receipt requested; and Coverage
shall be primary as to the City, its officers, officials, employees and volunteers. Any insurance or
self-insurance by the City, its officers, officials, employees or volunteers shall be in excess of
Franchisee's required insurance, or that of Franchisee's contractors, subcontractors, and agents.
21.3 Verification of Coverage. Franchisee shall furnish the City with certificates of
insurance and original endorsements evidencing the coverages required by this Section. The
certificates and endorsements shall be signed by a person authorized by the insurer to bind coverage
on its behalf and must be received and approved by the City prior to the commencement of any work.
At the City's request, Franchisee shall deliver certified copies of all required insurance policies.
21.4 Self-Insurance. In satisfying the requirements set forth in this Section, Franchisee
may self-insure against such risks in such amounts as are consistent with good utility practices.
Franchisee shall provide the City with sufficient written evidence, upon request, that such insurance
(or self-insurance) is being so maintained by Franchisee. Such written evidence shall include, to the
extent available from Franchisee's insurance carrier, a written certificate of insurance with respect to
any insurance maintained by Franchisee in compliance with this Section.
21.5 Contractors and Subcontractors. Franchisee's contractors and subcontractors
must be licensed and bonded in accordance with applicable ordinances, regulations, and
requirements. Work by contractors and subcontractors is subject to the same restrictions,
limitations, and conditions as if the work were performed by Franchisee. Franchisee must ensure
that all such work is performed in compliance with this Franchise and other applicable law.
ORD# ,PAGE 14
---. ----~
-~-------
Franchisee is responsible to ensure that contractors, subcontractors, or other Persons performing
work on Franchisee's behalf maintain insurance in compliance with this Section.
Section 22. General Provisions
22.1 Entire Agreement. This Franchise contains all ofthe agreements ofthe Parties with
respect to any matter covered or mentioned in this Franchise and no prior agreements or
understandings pertaining to any such matters shall be effective for any purpose.
22.2 Modification. No provision ofthis Franchise may be amended or added to except by
agreement in writing signed by both of the Parties.
22.3 Assignment. Franchisee shall not have the right to transfer or assign, in whole or in
part, any or all of its obligations and rights hereunder without the prior written consent of the City.
Any assignee shall, within thirty (30) days ofthe date of any approved assignment, file written notice
of the assignment with the City together with its written acceptance of all terms and conditions of
this Franchise. Notwithstanding the foregoing, Franchisee shall have the right, without such notice or
such written consent, to mortgage its rights, benefits and privileges in and under this Franchise to the
Trustee for its bondholders.
22.4 Attornev Fees. In the event the City or the Franchisee defaults on the performance of
any terms in this Franchise, and the Franchisee or the City places the enforcement of the Franchise or
any part thereof or for the collection of any monies due, or to become due hereunder, in the hands of
an attorney, or files suit upon the same, the prevailing party shall be entitled to an award of all
reasonable attorneys' fees, costs and expenses. The venue for any dispute related to this Franchise
shall be King County, Washington.
ORD# ,PAGElS
-----~--~--- -- --- ----- ---- --
22.5 No Waiver. Failure of either party to declare any breach or default by the other party
immediately upon the occurrence thereof, or delay in taking any action in connection therewith, shall
not waive such breach or default, but such party shall have the right to declare any such breach or
default at any time. Failure of either party to declare one breach or default does not act as a waiver of
such party's right to declare another breach or default.
22.6 Governing Law. This Franchise shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington.
22.7 Authority. Each individual executing this Franchise on behalf of the City and
Franchisee represents and warrants that such individual is duly authorized to execute and deliver this
Franchise on behalf of the Franchisee or the City.
22.8 Notices. Any notices required to be given by the City to Franchisee or by Franchisee
to the City shall be delivered to the parties at the following addresses:
Franchisee: Washington State Parks and Recreation
7150 Cleanwater Lane
PO Box 42650
Olympia, W A 98504-2650
Franchisor: City of Federal Way
Attn: City Attorney
33325 8th Avenue South
P.O. Box 9718
Federal Way, W A 98063
Any notices may be delivered personally to the addressee of the notice or may be deposited in
the United States mail, postage prepaid, to the address set forth herein. Any notice so posted in the
United States mail shall be deemed received three (3) days after the date of mailing.
ORD# , PAGE 16
- --- ---
--- --------- ------ ------- --- ------------------- -----
22.9 Captions. The respective captions of the sections of this Franchise are inserted for
convenience of reference only and shall not be deemed to modify or otherwise affect in any respect
any of the provisions of this Franchise.
22.10 Remedies Cumulative. Any remedies provided for under the terms ofthis Franchise
are not intended to be exclusive but shall be cumulative with all other remedies available to the City
at law, in equity or by statute.
Section 23. Severability
If any section, sentence, clause, or phrase of this Franchise should be held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not
affect the validity or constitutionality of any other section, sentence, clause or phrase of this
Franchise.
Section 24. Ratification
Any act consistent with the authority and prior to the effective date ofthis Franchise is hereby
ratified and affirmed.
Section 25. Effective Date
This ordinance shall take effect and be in force 30 days from the time of its final passage, as
provided by law, provided it has been duly accepted by Franchisee as herein provided above.
PASSED by the City Council of the City of Federal Way this day of
,2006.
ORD# , PAGE 17
-----
CITY OF FEDERAL WAY
MAYOR, MICHAEL PARK
ATTEST:
CITY CLERK, LAURA HATHA WAY, CMC
APPROVED AS TO FORM:
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTNE DATE:
ORDINANCE NO.:
ACCEPTANCE:
ORD# , PAGE 18
ACCEPTANCE:
The undersigned hereby accepts all the rights and privileges ofthe above granted License and
acknowledges that such rights and privileges are subject to and limited by all of the terms, conditions
and obligations contained therein.
DATED this _dayof ,2006.
Washington State Parks and Recreation
By: Larry Fairleigh
Its: Assistant Director
K:\Franchise\State Dash Pt.
ORD# ,PAGE 19
- ----- - -- ----------------------- --- -----
EXHIBIT A
FRANCHISE AREA
ORD# ,PAGE 20
-----------
----- - -...---------
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~----_._._--
COUNCIL MEETING DATE: June 6, 2006 ITEM
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: Public Use of City Equipment at Council Meetings
POLICY QUESTION: Should the Federal Way City Council allow the public to use city equipment during the
public comment portion of City Council meetings?
COMMITTEE: FINANCE, HUMAN SERVICES & REGIONAL AFFAIRS MEETING DATE: May 23,2006
CATEGORY:
~ Consent D Ordinance D Public Hearing
D City Council Business D Resolution D Other
~!A~~~.~Q~!~Y:!?~!~~~hll:~4.~g~~g!1:y~!!(?'!.!1.~y.m DEPT: Law
,..................................... ...........- ..................... ........................ ....................................................................................... ....
Attachments: Staff Report
Options:
1. Prohibit the use of the equipment by the public during Council meetings.
2. Open the City's equipment for use by the public, but direct staff to draft Council Rules that establish
clear parameters for use of the equipment similar to the rules regarding the public comment to restrict the
use of the equipment and to protect the city's network.
........ ..........-..................................................................-...... ..........................-................................................... ...................................................... ................................................................................. .......................--- .....................................-......-....................-._....__..__.._...__._-~._-_._...._.._...._.._..
STAFF RECOMMENDATION: 0
CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL:
Council Council
COMMITTEE RECOMMENDATION:
Committee Chair Committee Member Committee Member
PROPOSED COUNCIL MOTION: "] move approval of Committee Recommendation. "
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
0 APPROVED COUNCIL BILL #
0 DENIED 1 ST reading
0 T ABLEDIDEFERRED/NO ACTION Enactment reading
0 MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 02/06/2006 RESOLUTION #
--------- -- --~------- ------- ---
CITY OF FEDERAL WAY
MEMORANDUM
DATE: May 18, 2006
TO: Finance, Human Services & Regional Affairs Committee
VIA: Derek Matheson, Interim City Manage~
FROM: Patricia A. Richardson, City Attorney
SUBJECT: Public Use of City Equipment
Policy Issues:
Should the Federal Way City Council allow the public to use city equipment during the public
comment portion of City Council meetings?
Back2:round:
During the public comment period of a recent city council meeting, a member ofthe public used
city equipment (computer, etc.) to show a power point presentation. While this member ofthe
public was able to keep oral comments within the allotted time, the power point presentation
remained on the projection screen and advertised personal business. This use of the equipment
caused some concern for some council members and staff. Two primary issues of concern were
the use of city equipment for commercial speech, and the potential vulnerability of the City's
system to any computer viruses that may have been present on the software used.
Several cities in Washington do not allow a public comment period during their city council
meetings, and the majority of cities contacted do not allow use of city equipment by the public.
Those that do allow use of public equipment have restrictions on the public's use of city
equipment during a public meeting. For instance, Spokane does not have a formal policy, but
normally, a member ofthe public has a staff sponsor that coordinates the use of city equipment.
Additionally, the computer in the council chambers is logged in with a user account that does not
allow administrative rights and is locally virus protected. In Redmond, they have established a
City-owned laptop in their council chambers to ensure stability and security for presentations
such as a power point presentation.
Options:
Option One.
Prohibit the use of the equipment by the public during Council meetings.
- -- ---- -------------
Option Two.
Open the City's equipment for use by the public, but direct staff to draft Council Rules that establish
clear parameters for use of the equipment similar to the rules regarding the public comment to
restrict the use of the equipment and to protect the city's network.
Staff Recommendation:
Option Two.
_____ __n___________ ___ _____________ ----------
CITY OF FEDERAL WAY
MEMORANDUM
Date: May 16, 2006
To: Finance, Human Services and Regional Affairs Committee
Via: Derek Matheson, Interim City Manager ~
Iwen Wang, Management Services Director
From: Tho Kraus, Finance Manager ~
Subject: Accounting of 2005 Han Woo Ri Festival
The purpose of this memo is to provide a final accounting of the 2005 Han Woo Ri Festival and also
address questions related to accounting controls that were raised.
Final Accountino (see attached Income Statement)
Grants and program revenue generated $286,437 and hotel/motel tax contributed $175,196 to the
festival. Expenditures totaled $491,248, resulting in a loss of $29,614. Council approved a $25,000
transfer from the city manager contingency fund as part of the 2005 year end budget adjustment, and the
balance of the deficit was covered by Lodging Tax funds.
Internal Control Procedure Related to Cash Disbursements
Because all of the performers and athletes were from a foreign country and do not have bank accounts in
the US, per diem payments by check would have been very difficult for them. For this reason, it was
requested that cash per diem payments be issued to these foreign visitors in person. To do this, two
checks, in the amounts of $10,975 and $1,550 were made directly to City staff which were then cashed
and distributed to either the Director/Agent of the performing group or to the performers themselves. For
accountability purposes, persons receiving the cash funds were required to sign off for the amount they
received.
New Guidelines on Use of Hotel/Motel Tax
In February 2006 the Attorney General issued an opinion (AG2006-04) restricting the use of hotel/motel
tax. The new opinion indicates:
1. The City must have ownership in a property to allocate lodging tax revenues to the operation
of the tourism-related facility;
2. The City may not spend lodging tax revenue on operating expenses of tourism-related
special events and festivals operated by non-governmental entities, rather the City may only
spend lodging tax revenues on advertising and promotion of such events; and
3. The City may not provide advance payment to private organizations for tourism promotion.
The City is complying with the new opinion with 2006 programs, including the 2006 HWR Festival. For
example, the Tourism Enhancement Grants (TEG) awarded in 2006 require the recipient to use the
money for marketing and advertising, and payment will be made after the marketing expenses are
incurred and/or after the event occurs so there is no payment in advance of services performed. The
2006 funding from City to HWR Festival will only be used for marketing as well.
The 2005 expenditures for Lodging Tax, including the Han Woo Ri Festival, were consistent with PRIOR
guidelines and directions from the State Auditor's Office.
Attachments:
Income Statement
Committee Recommendation:
None required.
K:IFINANCEIL T AC\2005\FHSRAC-2005 HWRdoc
- ---------- --- ----- ----
2005 Han Woo Ri Festival
Income Statement
Amount
Revenue Per Book
City L TAX $ 175,196
Grants and Program Revenue: City Other Subtotal
King County 50,000 - 50,000
State 50,000 - 50,000
Korean Fundation 30,000 - 30,000
Gala 12,825 11,175 24,000
Banner 6,900 - 6,900
Sponsorship 80,050 200 80,250
April 9 Fund raising 21,750 - 21,750
Golf 3,250 4,225 7,475
Ticket Sales 122 2,461 2,583
Children's Fes 5,514 - 5,514
Entrance Fee - 5,239 5,239
Trade Seminar 700 - 700
Soccer - 630 630
Film 240 10 250
Interest/Miscellaneous 655 491 1,147
Subtotal Grants & Program Revenue 262,006 24,431 $ 286,437 $ 286,437
Total Ltax & Revenue $ 262,006 $ 24,431 $ 286,437 $ 461,633
Exoenditure
City Doxtater Subtotal
Marketing 8,120 50,519 58,639 $ 58,639
Program
Talent - 29,876 29,876
Travel 60,837 3,949 64,786
Catering - 11,471 11,471
Other Programing cost 2,994 19,477 22,471 128,605
Production
Tix - 8,160 8,160
Venue - 16,760 16,760
Electric - 10,753 10,753
Stage - 36,253 36,253
Crew - 13,106 13,106
Other Production - 34,006 34,006 119,037
Production Admin
City Staff/Cordination 20,988 - 20,988
Workshop fee - 86,450 86,450
Workshop OH - 53,729 53,729
WS Commission - 23,800 23,800 184,967
Total Expenditures $ 92,939 $ 398,309 $ 491,248 $ 491,248
Profit (Loss): $ (29,614)
Additional Funding to Cover Losses
Transfer In From General Fund (CM contingency) 25,000 - 25,000 25,000
L T AC Contingency 1,546 - 1,546 1,546
Lodging Tax Interest Earnings 3,068 - 3,068 3,068
Total additional funding $ 29,614 $ . $ 29,614 $ 29,614
K:\FINANCEILT ACI200S\FHSRAC-200S HWR.doc
~-----------
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COUNCIL MEETING DATE: June 6, 2006 ITEM #:_
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CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: APRIL 2006 MONTHLY FINANCIAL REPORT
POLICY QUESTION: Should the City approve the April 2006 Monthly Financial Report?
COMMITTEE: Finance, Human Services & Regional Affairs Committee MEETING DATE: May 23, 2006
CATEGORY:
~ Consent 0 Ordinance 0 Public Hearing
o City Council Business 0 Resolution 0 Other
STAFF REpORT By: Tho Kraus, Finance Manager.'""""; DEPT: Management Services
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Attachments:
· April 2006 Monthly Financial Report
Options Considered:
1. Approve the April 2006 Monthly Financial Report as presented and forward to the June 6, 2006 Council
Consent Agenda.
2. Deny approval of the April 2006 Monthly Financial Report and provide direction to staff.
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STAFF RECOMMENDATION: N.
CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL: -1
Council Committee Council
COMMITTEE RECOMMENDATION: Forward approval of the April 2006 Monthly Financial Report to
the June 6, 2006 City Council Consent Agenda.
Linda Kochmar, Chair Jeanne Burbidge, Member Jack Dovey Member
PROPOSED COUNCIL MOTION: HI move approval of the April 2006 Monthly Financial Report as presented. "
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
o APPROVED COUNCIL BILL #
o DENIED 1ST reading
o TABLED/DEFERREDINO ACTION Enactment reading
o MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 02/06/2006 RESOLUTION #
- -- -------------------
an.. A April 2006 Monthly Financial Report
Federal Way GENERAL & STREET FUND OPERATIONS
The overall operating of the combined General and Street Fund showed a positive result of $980K through April. Overall
revenue total $12.4M and is $l.06M or 9% above budget, primarily attributable to the exceptional building permit activities
and a positive sales tax infused by new constructions. Both permit and construction sales taxes are cyclical in nature and very
sensitive to changing economy and should not be overly relied upon for long-term purposes. Year-to-date expenditures total
$ll.3M and is $81K or 1% over budget. The unfavorable expenditure comparison is primarily due to the timing difference in
when payments are made in the previous year.
2005 2006 VarlliJll:e
~ENERAl. & STREET FUND Annual Annual YTD :J~~:~ . YTD YTD FllvOl'llllle(Ullfavotable)
~!llIIl1IlIryof Sour_& US" ll!ldlllilt Actual klllal llu!iget Actual Dollars ($) PllrCeltt w.)
!Beginning Fund Balance $ 2,945.041 $ 2.945.041 $ 2.945.041 $ 4.728,229 $ 4.728.229 $ 4,728,229 $ 0 0.0%
PPERATlNG REVENUES
Properly Taxes 8.584.024 8,442.166 2,147,900 8,692.174 2,329.896 2.329.896 - 0.0%
lsales Tax 10.793.000 11,305.537 3.584.771 11,120.000 3,506.269 4.028,929 522,660 14.9%
!criminal Justice Sales Tax 1.781.000 1,817,981 555.287 1,877,000 573.314 619.985 46.672 8.1%
Intergovernmental 2,210.000 2.248,446 749.980 2.287,000 762.840 743.091 (19.749) -2.6%
Leasehold Tax 2,500 2.026 1.325 2,500 1,635 551 (1.084) -66.3%
Gambling Taxes 1.430,000 1,501.084 519.752 1.414.000 489,606 512.241 22.636 4.6%
!court Revenue 1,281.000 875.986 286.095 976.000 318,759 318,925 166 0.1%
Isuilding PemlitslFees-CD 2,942,400 3,141.368 953,019 1.653,400 501.604 875,667 374,063 74.6%
[Row Pemlits & Development Services Fees-PW 365.000 346.605 95.265 370.000 101.696 142.250 40,554 39.9%
~censes 208,517 233.304 67.713 210,517 61.100 63.197 2,097 3.4%
ranchise Fees 723.000 787.639 360.185 733,000 353.811 414,428 60.617 17.1%
Passport Agency Fees 85,086 63.418 22.585 86.000 30,627 26.525 (4.102) -13.4%
ecreation Fees 872,335 825.052 309,657 874.335 328,154 303.116 (25,037) -7.6%
ublic Safety 931.090 1,100.604 352,584 934.190 299,256 223,485 (75.771) -25.3%
~dmlnlCash Management Fees 552.000 552.000 184.000 560.000 186,667 186.667 0 0.0%
Interest Earnings 172,000 277.945 60.375 163.000 39.751 137,106 97.355 244.9%
MisclOther 184,700 305.019 85.060 208.700 58.200 73,586 15,386 26.4%
bn ; In. -
Utility Tax-<:elebration Par1< 238.798 238.798 238,798 245,962 24.784 24.784 - 0.0%
Utility Tax-Kenneth Jones Pool 314.000 314,000 60,547 319.000 319.000 319.000 - 0.0%
Utility Tax-Arts CommIRW&B Festival 93.750 93,750 70.200 93.750 93,750 93.750 - 0.0%
Utility Tax-PoIice Positions 625.000 625,000 360.378 625.000 625.000 625,000 - 0.0%
Utility Tax-Street Bond Projects 192,000 192.000 192.000 202.000 202.000 202,000 - O.()'%
Utility Tax-New Street Ughts 93.900 93.900 93.900 108.300 108.300 108,300 - 0.0%
Utility Tax-Camp Kilworth M&O 50,000 50.000 50,000 - 0.0%
9#11..~llg.Il8'\f"'ues 34;875,10ll 35,383,808 11,351,356 33,825,828 11,366,017 12,422,479 1,056,4Q lI.3'M!
:lPERATlNG EXPENDITURES
ity Council 366,802 344.136 185.095 409,317 220,152 196.997 23,155 10.5%
ity Manager 871.491 853,100 271.824 908.228 289,389 228.859 60.530 20.9%
Municipal Court-Qperations 1.401,822 983.097 294.294 1,158.496 346.800 361,851 (15.051) -4.3%
Economic Development 302,115 228.584 83,133 292,893 106,521 62,442 44.079 41.4%
Management Services 1,883.518 1,862,587 653,213 1.897,272 665.377 692,541 (27,165) -4.1%
iviVCriminal Legal Services 1,145.500 1,005,324 329,494 1,200,561 393,483 375.129 18,354 4.7%
:omm. Development Svcs 3,494.215 3.123,953 1.012.802 3.665.745 1.194,938 1.140.279 54,659 4.6~
ail Services 1.442,060 1.400,637 153.402 1,384.060 151,586 377.857 (226,071 ) -149.1%
Police Services 16.397.701 15.843.471 5.288,743 17,134.669 5,719,761 5.889.936 29.825 0.5%
"arks and Recreation 3.945.274 3.941.474 1.101.926 4.057.237 1,134,290 1.138.455 (4.185) -0.4%
Public Works 3,910.022 3,644.449 919,024 4.109,988 1.036.419 1.075,961 (39.542) -3.8%
0#11 Qperatirl9;Expendllllr811 35,182.521 33,:t30.813 10.292.949 3$.:t38.494 11,256.717 11,340,109 (81.392) ..o.7'A
pperatlng Revenues over/(under)
OperatIng Expendllllr811 (507,421) 2,152,796 1,058,407 (2,412,638) 107,300 1,082,371 975,071 908.7',1
PTHER FINANCING SOURCES
One- Time Transfers In 81.000 73,551 25,000 55.450 8,144 8.144 - 0.0%
Grants & Other 498.256 584,873 292,379 247,772 40.110 40,110 - 0.0%
Tolal Other Financing SourC:ell 579,256 658,423 317,379 303,222 48,254 48,254 - 0.0',1
pTHER FINANCING USES
City Manager Contingency - - 907.747 - nla nla
One- Time Transfers to CIP 1,028.030 1,028,030 - 100.000 100,000 100.000 nla nla
Other 40.000 - - nla nla
TolalOtlter FlnanclngUsell 1.068,030 1,028,030 - 1,007,747 100,000 100,000 nJa nla
alai Endlna Fund Balance 1,948,846 $ 4,728,228 $ 4.320,826 $ 1,611,066 $ - $ 5,758,854 nla nI
- - - - ----------- ----- ---------
DESIGNATED OPERATING FUNDS
Through April, designated operating funds revenue total $7.0M and is $909K above the year-to-date budget of $6.09M with
utility taxes and real estate excise taxes being the major contributors. Expenditures of $4.78M is $56K below the budget
estimate of$4.84M.
2005 2006 Variance
DESIGNATED OPERATING FUNDS Annual Annual YTD Annual YTD YTD FlIVllrable (Unfavorllble)
Summllry llf Sources/!. U!les Budget Actulll Actual Budget Budget Actual DoUlIrs($) Percent(%)
Begin EllIlance-Designated Funds $ 4,610,136 $ 4,610,136 $ 4,610,136 $ 5,725,052 $ 5,725,052 $ 5,725,052 $ - 0.0%
OPERATING REVENUES
Intergllvemmental 596,245 565,157 177,347 617,953 178,982 178,982 - 0.0%
Utility Taxes 8,225,399 8,292,520 3,022.196 8,407,499 3,064,100 3,441,188 377,088 12,3%
Hlltel/Meltel Llldging Tax 150,000 158,117 41.930 150,000 39,778 46,274 6,497 16.3%
Real Estate Excise Tax 4,2SO,OOO 4,695,984 1,614,666 3,150,000 1,083,095 1,675,511 592,415 54,7%
Dumas EllIy Centre 523,775 452,672 146,849 529,598 171,804 116,294 (55.510) -32.3%
Knutzen Family Theatre 78,515 69,648 21,627 84,145 26,129 39,114 12,985 49.7%
SWM Fees 3,576,746 3,535,750 992,308 3,607,080 925,466 925,466 - 0.0%
Refuse Collection Fees 167,701 165,950 69,107 170,217 70,884 70,377 (S07) -0.7%
Interest Earnings 203,345 217,821 75,237 204,345 70,582 46,616 (23,965) -34.0%
Miscellaneous/Other 217,2SO 284,251 70,287 - 3 3 - 0.0%
nn f In. .
Utility Tax-Knutzen Theatre 118,869 118,869 100,000 121,840 121,840 121,840 - 0.0%
Utility Tax-Debt Service 4,242,273 4,202,629 361,859 3,885,861 . - - n/a
Utility Tax-Arterial Streets 890,625 890,625 890,625 890,625 346,000 346,000 - 0.0%
QtlIl OP!WatlngR!W!!n!l" 23,240,742 23.649,993 7.584.038 21,$19,162 6.098.663 7.oo7,!I!I!I 909,004 14.9%
OPERATING EXPENDITURES
Oty Overlay Program 1,547,040 1,495,865 73,636 1,599,792 59,677 59,677 - 0.0%
Utility Tax-Admin/Cash Mgmt Fees 54,429 54,429 18,143 55,237 18,413 18,412 0 0.0%
Solid Waste 387,238 322,151 113,381 340,130 119,708 99,086 20,622 17.2%
Hotel/Meltel Llldging Tax 567,446 509,592 94,024 282,627 52,147 53,315 (1.168) -2.2%
Debt Service 6,833,128 6,801,614 201,355 3,678,856 201,616 201,616 - 0.0%
Surface Water Management 2,864,111 2,684,052 772,095 2,975,739 856,002 851,172 4,829 0.6%
Dumas EllIy Centre 538,575 478,294 151,481 534,628 169,322 150,4SO 18,873 11.1%
Knutzen Family Theatre 201,090 168,945 64,245 201,720 76,708 64,026 12,682 16.5%
Utility Tax-Celebration Park 238,798 238,798 238,798 245,962 24,784 24,784 - 0.0%
Utility Tax-Kenneth Jones Pool 314,000 314,000 60,547 319,000 319,000 319.000 - 0.0%
Utility Tax-Arts CommlRW&B Festival 93,750 93,7SO 70,200 93,7SO 93,750 93,7SO - 0.0%
Utility Tax-PoIice Positions 625,000 625,000 360,378 625,000 625,000 625,000 - 0.0%
Utility Tax-Street Bond Projects 192,000 192,000 192,000 202,000 202,000 202,000 - 0.0%
Utility Tax-New Street Ughts 93,900 93,900 93,900 108,300 108.300 108,300 - 0.0%
Utility Tax-Knutzen Family Theatre 118,869 118,869 100,000 121,840 121,840 121,840 - 0.0%
Utility Tax-Arterial Streets Overlay 890,625 890,625 890,625 890,625 855,832 855,832 - 0.0%
Utility Tax-Camp Kilworth M&O - - . SO,OOO 50.000 SO,OOO - 0.0%
Utility Tax-Debt Service 4,242,273 4,202,629 361,859 3,885,861 . - - n/~
Utility Tax-Transportation CIP 890,625 890,625 890,625 890,625 890,625 890,625 - 0.0%
otal.()pe.-allrig~pel#l!~r" 20.692.897 20.175,138 4.747.281 17.101.692 04;$44.724 04;788;885 55.839 1~
Operating Revenues over/(under)
Operlltlng expenditures 2,547,845 3,474,855 2.838,747 4,717,470 1,253,939 2,218,781 964,842 76.9%
OTHER FINANCING SOURCES
One- Time Transfers In 60,404 62,904 19,404 - - - - n/a
Grants/Mitigation/Other 175,036 257,131 99,066 123,280 179,010 179,010 . 0.0%
Total other Flnllnclng SOurces 235,440 320,035 118,470 123,280 179,010 179.010 . 0.0%
OTHER FINANCING USES
One- Time Transfers Out 2,830,419 2,679,974 1,729,974 4,255,095 3,610,605 3,610,605 - 0.0%
Other - - - - - - - n/a
TotlllOtherFlnllnclng Uses 2,830,419 2.679.974 1.729,974 4,255.095 3,610;805 3.610,605 . 0.0%
ENDING FUND BALANCE
Arterial Street - 97,272 1,096,334 (1) - 570,121 nla n/a
Utility Tax 868,708 1,027,502 879,861 1,228,801 - 1,087,925 n/a n/a
Solid Waste & Recycling 60,641 121,707 126,285 75,072 - 253.277 nla n/a
Hotel/Meltel Llldging Tax - 132,627 194,769 - - 127,183 nla n/a
Paths & Trails 14,991 15,272 8,580 24,831 - 18,550 nla n/a
Debt Service Fund 2,815,373 3,195,705 3,027,561 3,902,710 - 1,866,337 n/a n/a
Surface Water Management 799,420 1,120,908 448,511 1,059,622 . 523,892 n/a n/a
Dumas EllIy Centre Operations - (14,816) (4,731) (16,046) - (33.249) n/a n/a
Knutzen Family Theatre 3,869 28,875 58,209 35,716 - 98,203 n/a n/a
0131 Ending Fund Balance $ 4,563,002 $ 5,725,052 $ 5,835,380 $ 6,310,705 $ . $ 4,512,238 nla nla
2
Real Estate Excise Tax
Compared to 2005, collections are up $61K or 3.8%. Sales Tax bv SIC Code
April's receipt of $464K is $320K below April 2005's
activity and includes a total of 332 real estate transactions, COMPARISON OF SALES TAX COLLECTIONS BY SIC GROUP
of which 118 were tax exempt and of the remaining 214, Year.to-,d;JtethruADril
10 were mobile home sales. The annex area has Com;iOiifiiit 2005 2006 (iifJllhge frOin2Qg5
contributed year-to-date revenue of $24,598. The largest GroUD Actual Actual $ %
transactions in the current month consist of the sales of Retail Trade $ 2.005.800 $ 2.128,454 $ 122,654 6.1%
The Pointe Apartment @ 28300 18th Ave S, Pinewood ervices $ 653,305 $ 768.276 $ 114,971 17.6%
onstrucVContract $ 365,738 $ 596.073 $ 230,335 63.0%
Village Apartment @ 33311 18th Ln S, Campus Park 'Iholesaling $ 162,076 $ 165.237 $ 3,161 2.0%
Business Park @ 34310 9th Ave S, Bayview Apartment @ ransplUtility $ 3.074 $ 6,415 $ 3.341 108.7%
30911 1st Ave S, and vacant residential land @ 4334 SW Information $ 190.002 $ 165.236 $ (24.766) .13.0%
307th St. Manufacturing $ 42.512 $ 59,694 $ 17.182 40.4%
Government $ 35.056 $ 16,632 $ (18,424) -52.6%
Fin/Ins/Real Estate $ 98,073 $ 106,726 $ 8,653 8.8%
O1her $ 9,134 $ 16.186 $ 7,052 77.2%
REAL rESl'AfE EXCISE TAX AEVENUES Total $ 3,564,770 $ 4,028,929 $ 4&4,159 13.0%
Ylllir (Q .dllte thru Aolil
2QQ5 2006 Retail sales continue to remain the largest source of sales
. Moiitli Ae(ulil Actual .$Vsl' "Vat
Jan $ 170.866 $ 157.303 $ (13.563) -7.9% tax revenue, accounting for 53% of all sales tax
Feb 275,617 $ 468.067 $ 192.449 69.8% collections. Y ear~to-date retail sales tax collection is up
Mar 384.048 $ 585,651 $ 201,602 52.5% $123K or 6.1% above year-to-date 2005; majority of the
Apr 784.135 $ 464.491 $ (319,644) -40.8% increase is in the following areas: miscellaneous store
May 481.264 $ - $ - - retailers, electronics and appliances, and retail building
Jun 425,029 $ - $ - - materials.
Jul 290,288 $ - $ - -
Aug 416,213 $ - $ - - Services industry accounts for 19% of the total sales tax
Sep 515.578 $ - $ - -
Oct 237.983 $ - $ - - collections. On year-to-date basis, services sales tax is up
Nav 357,228 $ - $ - - $115K or 18% compared to 2005. This includes $100K in
Dee 357,736 $ - $ - - one-time increase from a major software company.
Y IU lotal $ 1,614,666 $ 1,675,511 $ 60,845 3.80/,
Construction and contracting activity, which accounts for
Sales Tax 15% of sales tax collections, is up $230K or 63% from
Year-to-date revenue of $4.03M is above April 2005 year- 2005's activity. Sales tax received year-to-date on major
to-date revenue of $3.56M by $464K or 13%. The current City projects total $153K or 26% of total construction and
month's Sales Tax of $863K is above the 2005 monthly contracting activity.
activity by $110K or 14.6%. As shown in the detail by
SIC code table below, new construction alone increased by Sales Tax bv Activity
$23 OK, which is the primary contributing factor of the
positive bottom line. In addition, the major projects that ...~.
contributed to this increase are mainly public projects. For
these reasons, the sales tax improvement is temporary in 2005 ~
nature, different than the broad based economic Stouo. ACtual rACta'. .($.
improvement which would be more sustainable. Total Sales Tax $3,564,770 $4,028,929 $464,159 13.0%
S 348th Retail Block $458,422 $484,631 $26,209 5.7%
% chg from prey yr -66.3% 5.7% na na
Percentage of total 12.9% 12.0% -0.8% -6.5%
The Commons 386,661 355,514 131.1471 -8.1%
% chg from prey yr -45.1% -8.1% na na
Jan 862.219 $ 8.8% Percentaae of total 10.8% 8.8% -2.0% -18.6%
Feb 1,155,867 $ 18.2% Major Auto Sales 120,010 134,487 14,477 12.1%
% chg from prey yr -68.2% 12.1% na na
Mar 794,197 $ 8.6% Percentage of total 3.4% 3.3% 0.0% -0.8%
Apr 752,487 $ 14.6% S 312th to S 316th 205,345 203,988 11,3571 .0.7%
May 935.065 - $ - % chg from prev yr -61.2% -0.7% na na
Jun 857.410 - $ Percentaae of total 5.8% 5.1% -0.7% -12.1%
Jul 813.885 - $ - Pavilion Center 179,638 186,502 6,864 3.8%
Aug 1,057.583 - $ - % chg from prey yr -58.0% 3.8% na na
Sep 1.004.058 - $ Percentage of total 5.0% 4.6% -0.4% -8.1%
Oct 994.469 - $ -
Nav 1.051,158 - $ The City's largest retail center, South 348th, which
Dee 1.027.139 - $ -
Total $ 3,564,770 $ 4,028,929 $ 464,159 13.0. generates 12% of the City's sales tax, is showing an
increase of $26K or 6% compared to the year 2005. The
Commons is showing a decrease of $31K or 8% compared
3
to year 2005 activity. Major Auto Sale's collection total I UTILITY TAXES I
$134K and is $14K or 12% above 2005. S 312th to Year-to..datethru April
S316th is almost the same as prior year. Pavilion Center Z()qs 2()()6 ChJtfigtJfitJrfl~Q(J5
tax collections are up by $7K or 4% comparing to prior Actual Actual SVar "Vat
year. Electric $ 996.125 $ 1.143.313 $ 147,188 14.8%
Gas $ 635,943 838,281 $ 202,338 31.8%
Solid Waste $ 173,548 190,062 $ 16,514 9.5%
Gambling Tax Cable $ 287,142 310,427 $ 23,285 8.1%
Gambling tax collection through April is $512K. In Phone $ 335,163 315,815 $ (19,348) -5.8%
comparison to 2005 year-to-date collection, 2006's tax Cellular $ 524,911 574,754 $ 49,843 9.5%
collection IS lower by $8K 1.4%. January and Pager $ 1.127 112 $ (1,016) -90.1%
or SWM $ 68.237 68,424 $ 186 0.3%
February's increase is due primarily to the change in Tax Rebate $ (7,165) (2.908) $ 4,258 -59.4%
accounting for accruals in 2005. To simplify the year-end Total $ 3,022,196 $ 3,441,188 $ 418,992 13.9%
closing process in 2005, the threshold amount for accruals Tax rebates are excluded from total
back to 2005 was increased to $ lOOK, up from the HoteVMotel Lodging Tax
previous threshold of $25K. Therefore, gambling taxes for
2005 received in early 2006 that did not meet the new Hotel/Motel lodging tax collections through April total
threshold are included as part of 2006's revenue. March $46K. Compared to 2005, the lodging tax is $4K or 10.4%
and April's gambling tax is down mainly due to two major above the same period.
establishment's decreased activity. The annex area has
contributed year-to-date revenue of$5,131. HOTEUMO.TELLODGING TAX REVENUES
Year-to-dat.thtu April
#~"" 2()05 2()()6 Change from.2005
A ~,
Month Actual Actual $Var "Var
Mpnth ~jji:!ll<. Acltial $ Vat !'/"iNlar' Jan $ 9.669 $ 11,357 $ 1.687 17.5%
Jan $137,311 $ 165,496 $ 28,186 20.5% Feb $ 11.717 $ 11 ,290 (427) -3.6%
Feb 115,768 123.992 8,223 7.1% Mar $ 9,153 $ 11,953 2.800 30.6%
Mar 130,206 103,346 (26,860) -20.6% Apr $ 11,390 $ 11.675 284 2.5%
ADr 136,467 119.407 (17,060) -12.5% May $ 14.067 $ - - -
May 132,353 - - - Jun $ 11,566 $ - - -
Jun 122.257 - - - Jul $ 12.247 $ -
- -
Jul 130.114 - - - Aug $ 14,632 $
Aua 133.906 - - -
- - - Sep $ $
SeD 115,878 17.633 - - -
- - -
Oct 150,900 - Oct $ 18.047 $ - - -
- -
Nav 119,925 - - - Nov $ 13,765 $ - - -
Dec 75,979 - - - Dee $ 14.231 $ - - -
YTD Total $519,752 512,241 (7,511) -1.4% YTD Total $ 41.930 $ 46,274 $ 4,344 10.4%
Annual I atal $ 158.117
Table reflects gambling activities on a cash basis.
Utility Tax State Shared Revenue
Utility taxes received through April total $3.44M and is Year-to-date distribution of$1.6M is above 2005's activity
above 2005 year to date collections by $419K or 14%. by $116K or 8%. Liquor profits tax is down while local
criminal justice sales tax and fuel tax are up. Through
April, new gas tax effective in August 2005 has
<~~~" '''''''':':t ril contributed $56K of the increase.
. MonUi Af~~ Ai","..., (s'Var H!J,,<V.:or <<
Jan $ 726.583 $ 876,526 $ 149,943 20.6%
Feb 794.152 838,758 $ 44,606 5.6%
Mar 731.064 801,915 $ 70.851 9.7% I~QIl5 200i.
Apr 770.397 923,989 $ 153.593 19.9% Revenue ",titu.,. Actual $ 1"1.
May 745,699 - $ - - Uquor Profits Tax $ 155,926 $ 139,119 $ (16,807) -10.8%
Jun 592.788 - $ - -
Jul 609.227 - $ - - Uquor Excise Tax 174,867 178,380 3,513 2.0%
Aug 585.489 - $ - - Crim Just Low-Pop/CCD 38,867 39,717 1,051 2.7%
Sep 590.070 - $ - - Local Crim Just Sales Tax 555,287 619,986 64,699 11.7%
Oct 636.521 - $ - - Fuel Tax' 550,755 613,916 63,161 11.5%
Nov 635.678 - $ - - CUI - Cities 7,113
Dee 882.017 7,140 27 0.4%
- $ - -
lTax Rebate (7.165) (2,908) $ 4,258 -59.4% Total $ 1,482,614 $ 1,598,258 $ 115,644 7.8%
YTD Total $ 3,022.196 $ 3.441.188 $ 418,992 13.9O/' . Fuel tax is included in both generaVstreel and designated opeIating funds.
Tax rebates are excluded from total
Compared to year-to-date 2005, Electricity is up $147K or
15%, Gas is up $202K or 32%, Cable is up $23K or 8%,
Phone is down $19K or 6%, and Cellular phone is up
$50K or 10%.
4
Permit Activity Type 2005 2006 $ %
Year-to-date building permit activity is below 2005's year- Training $ 3,289 $ 10,367 $ 7,078 215%
Court 11,915 8,821 $ (3,094) -26%
to-date activity by $77K or 8.1 %. The primary reason for Field Operation 137,369 148,685 $ 11,316 8%
the negative balance is from an extra-ordinarily large SOAP - $ nla
permit in April of 2005 from the Christian Faith Center. Other 20,246 13,895 $ (6,351) -31%
City Portion 172,819 181,768 8,948 5%
Significant permits include: Federal Way Self Storage, Contract or Grant 15,863 12,798 $ (3,066) -19%
Quadrant, Road House Grill, and Pena. Right-of-way Traffic School 17,946 11,649 $ (6,297) -35%
permits and development services fees are up in April by Homeland Security $ nla
$2K and year-to-date activity is up by $47K or 49% when Billable 33,810 24,447 (9,363) -28%
Grand Total $ 206,629 $ 206,215 $ (414) 0%
compared to 2005.
BUILDING PERMITS &F'EES PS Overtime By Month
Chance
Year-to-Date Throulll'IAprll 2005 2006 $ %
2005 2006 Change frQI112005 Jan $ 50,235 $ 51,717 $ 1,482 3%
Actual Actual $ % Feb 54,688 $ 46,446 $ (8,242) -15%
Jan 164,108 111,925 (52,184) -31.8% Mar 48,571 $ 51,638 $ 3,067 6%
Feb 160,765 239,689 78,924 49.1% Apr 53,135 $ 56,413 $ 3,278 6%
Mar 206,886 217,839 10,953 5.3% May 38,533 $ - $ - -
Apr 421,260 306,214 (115,046) -27.3% Jun 55,867 $ - $ - -
May 452,483 - - - Jul 44,155 $ - $ - -
Jun 330,658 - - - Aug 45,364 $ - $ - -
Jul 215,967 - - - Sep 61,691 $ - $ - -
Aug 314,271 - - - Oct 41,252 $ - $ - -
Sep 255,906 - - - Nov 67,305 $ - $ - -
Oct 285,630 - - - Dee 42,002 $ - $ - -
Nov 175,341 - - - YTD $ 206,629 $ 206,215 $ 1414 0%
Dec 158,092 - - - Annual Total $ 602,799
YTD Total 953,019 875,667 (77,353) -8.1%
Annual Total 3,141,368 na na Jail Services
~ow .PERMll'S&DEVELC)PMENl'SERVICESFEES Jail Services through April is $378K, which is $226K or
Y!Kir-to-Dl!Je..Tllro!J91l..April 150% above the ytd budget of $152K. The variance is
2005 2006 Ctlange..from..2oo5 mainly due to the timing of payments and some cost
Actual Actual $ % mcreases.
Jan 20,643 36,913 16,271 78.8%
Feb 27,622 45,720 18,099 65.5% Court Revenue
Mar 23,748 34,545 10,797 45.5% Excluding probation April revenue is up $37K or 15%
Apr 23,253 25,072 1,818 7.8%
May 36,684 - - - compared to year-to-date 2005.
Jun 28,971 - - -
Jul 30,332 - - - COURT REVENUE
Aug 29,350 - - - Ttlr()U9I!April
Sep 39,638 - - - 2()C)5 2006 Cbanaefromto!J$
Oct 19,992 - - - MOnth Actual Actual I Veri "Var
Nov 27,648 - - - $63,844 $1,226
Dec 38,724 January 62,618 2.0%
- - -
YTD Total 95,265 142,250 46,984 49.3"1. February 63,236 $67,088 $3,853 6.1%
Annual Total 346,605 na na March 61,529 $79,055 $17,527 28.5%
April 60,872 $75,494 $14,622 24.0%
Public Safety May 63,309 $0 $0 0.0%
Expenditures through April total $5.7M, which is $30K or June 55,631 $0 $0 0.0%
0.5% above the year-to-date budget of$5.7M. July 50,952 $0 $0 0.0%
August 55,280 $0 $0 0.0%
September 56,387 $0 $0 0.0%
Through April, City overtime is 5% or $9K above last October 77 ,052 $0 $0 0.0%
year. There is a 28% decrease in overtime for contracted November 68,906 $0 $0 0.0%
services and traffic school. When the decrease from the December 68,535 $0 $0 0.0%
billable overtime is included, the total overtime decrease is Sublotal $248,254 $285,482 $37,228 15.0%
Probation Services 37,840 33,442 (4,398) -11.6%
minimal. Year-to-dale T olal 286,094 $318,925 $32,830 11.5%
5
- __ __ _u__ ----- - --
COURT REVENUE Overall parks operations expenditures through April total
By Cate!lQry Throll911 April $1.14M, which is $4K or 0.4% over the year-to-date
2005 2006 ChiingeJrbrn 2005 budget of $1.13M. Dumas Bay Centre revenues and
Actual Actual $Var % Var expenditures are both below budget. Knutzen Family
Civil Penalties $4,172 $4,912 740 17.7% Theatre's revenue exceeds budget while expenditures are
Traffic & Non-Parking 167,039 $168,317 1,279 0.8% below.
Parking Infractions 10,165 $16,190 6.025 59.3%
DUI & Other Misd 32,271 $36,138 3,867 12.0% Recreation and Cultural Services
Criminal Traffic Misd 15.412 $12,037 (3.375) -21.9%
Criminal Costs' 12,117 $13,796 1,679 13.9% Direct program expenditures total $373Kor 29.1% of the
Interest I Other I Misc 4,547 $5.994 1.447 31.8% total annual budget of $1.28M not including indirect costs.
Criminal Conv Fees 20 $10,005 9.985 nla Including indirect administration costs, recreation
Shared Court Costs 626 $3,236 2,610 nla expenditures total $494K and are 30.4% of the total annual
Services & Charges 1.886 $14,856 12,970 nla budget of $1.63M. Recreation fees total $326K and are
Subtotal 248,254 285,482 37,228 15.0% 38.3% of the total annual budget of $852K. Recreation
Probation Services 37,840 33,442 /4,398)1 -11.6%
Total $ 286,094 $ 318,925 32,830 11.5% fees have recovered 87.5% of direct program costs and is
, Criminal costs include screener fees. 20.9% above the annual budgeted recovery ratio of
66.6%. Considering indirect administration costs, the
Traffic and non-parking fines total $168K and is $lK or recovery ratio is reduced to 66% or 13.6% above the
1% above year-to-date 2005. Parking infractions total annual budgeted recovery ratio of 52.4%.
$16K and is $6K or 59% above year-to-date 2005. DUI Dumas Bav Centre
and other misdemeanors total $36K and is $4K or 12%
above year.to-date 2005. Criminal costs total $14K and is Dumas Bay Centre operating revenue of $116K is down by
$1,700 or 14% above year-to-date 2005. Criminal $56K or 32.3% compared to the year-to-date budget of
Conviction Fees total $lOk and is above year-to-date 2005 $172K. Operating expenditures through April total
by $lOK. The City didn't start receiving the fees until $150K, which is $19K or 11.1 % below the year-to-date
August of 2005. Services and Charges total is $15K and is budget of $169K. Dumas Bay Centre has recovered
above year-to-date 2005 by $13K. This category includes 77.3% of its operating expenses.
Legal Services which the City didn't start receiving until Knutzen F amilv Theatre
June of 2005. Shared Court Costs total is $3K and is
above year-to-date 2005 by $3K because this category Operating revenue of $39K is up $13K or 49.7% compared
includes Court Enhancement revenue which the City didn't to the year-to-date budget of $26K. Operating
start receiving until October of2005. expenditures through April total $64K, which is $13K or
17.0% below the year-to-date budget of $77K. Knutzen
Parks & Recreation Theatre has recovered 61.1 % of its operating expenses.
RECREATION & CULTURAL SERVICE. PROGRAMS AND DOMAS BAY CENTRE PERFORMANCE
I Year to Date Through iJ,priI20()6
I I Re.llenlies I EXpenYJitlJrfH; I 1:ti!c;g~R~"
Proaram I 8/Jdii9f Ai;fulilI I % 1 Budget 1 ActI1aI I % irBud~til ActI1aI
RECREATION & CUL ruRAL SERVICE PROGRAMS
Steel Lake Aquatics 2,000 - 0.0% 20,398 96 0.5% 9.8% nfa
Arts & Special Events 93,600 46,310 49.5% 185,299 52,686 28.4% 50.5% 87.9%
Youth Athletics 60.558 5,385 8.9% 90,131 20,979 23.3% 67.2% 25.7%
Adult Athletics 204,970 105,219 51.3% 129,766 34,799 26.8% 158.0% 302.4%
Community Recreation 170,300 34,707 20.4% 178,019 45,287 25.4% 95.7% 76.6%
Community Center 28,500 11,913 41.8% 76,059 38,493 50.6% 37.5% 30.9%
Recreation Inc 18,512 15,720 84.9% 60,776 19,534 32.1% 30.5% 80.5%
Youth Commission 500 936 187.3% 1,800 725 40.3% 27.8% 129.2%
Red, White & Blue' 49,250 30,900 62.7% 41,200 267 0.6% 119.5% nfa
Senior Services 16,195 13,998 86.4% 70,105 26,936 38.4% 23.1% 52.0%
Kenneth Jones Pool 208,000 61,048 29.4% 425,514 133,035 31.3% 48.9% 45.9%
Subtotal $ 852,385 $ 326,135 38.3% $ 1,279,067 $ 372,838 29.1% 66.6% 87.50/.
Administration - - 0.0% 347,132 120,936 34.8% nfa nfa
I TOTAl. RECREATION 1$ 852,385 I $ 326,135 I 38.3%\ $ 1,626,199 I $ 493,774 I 30.4%1 52.4%1 66.0o/~
DUMAS BAY CENTRE
Dumas Bay Centre [ 529,598 I 116,294 I 22.0%1 534,628 1 150.450 T 28.1%T 99.1%1 77.3%
Knutzen Family Theatre I 84,145 I 39,114 I 46.5%1 201,720 1 64,026 I 31.7%T 41.7%1 61.1%
I TOTAl. DUMAS BAY CENTRE I $ 736,349 I $ 214,475 I
Arts Commission' 70,200 14,661
GRAND TOTAL 2,432,748 $ 722,910
. Excludes interfund ltansfers and Celebration Pari<.
6
--.- --..-
- ---- ------ ------------- --- -
CASH & INVESTMENTS
The following table shows the in-house investment activity schedule and their related yields and comparison to benchmark. Per
policy, the basis used by the City to determine whether market yields are being achieved is the range between the average 6-
month US Treasury Bill (4.89%) and the State Investment Pool (4.66%). The portfolio average current in-house investment
yield is 4.54% which is slightly lower than the benchmark due to lower rates on in-house investment purchased in 2003,
Investnumt Schedule
Aprll2QQfi
Settlement Interest lnvestm:ent MatiJrItY Yield/to
. Type Date Pavments Par AmoiJnt Cost Date It{tfldty
Aoencv - FNMA 3136F3V3 07/21/03 1121-7/21 $ 800,000 $ 797,500 07/21/06 2.38%
Agency- FHLB 31339YZX3 08/14/03 2114-8/14 $ 1,000,000 $ 1,000,000 08/14/06 2.52%
Aoency- FFCB 31331QN78 06/09/03 03/09/06 $ 1,000,000 $ 999,500 03/09/07 2.46%
Aoency - FNMA 3136F3VQ6 OS/27/03 05/25/06 $ 1,000.000 $ 1,000,750 05/25/07 2.48%
Aoencv- FNMA 3136F3UT1 05/30/03 06/03/06 $ 1,000,000 $ 997,529 12/03/07 2.59%
Agency - FHLMC 3128X1VW4 08/22/03 01/30/06 $ 900,000 $ 887,400 01/30/07 3.18%
Agency- FHLB 3133XBT54 OS/25/05 11/25/05 - 5125106 $ 1,000,000 $ 1,000,000 OS/25/07 4.07%
Aoency- FHLB 3133XBT54 OS/25/05 11/25/05 - 5125106 $ 1,000,000 $ 1,000,000 OS/25/07 4.07%
Aoencv - FHLMC 3128X4RFO 10/24/05 04/05/06 - 10/06/06 $ 1,000,000 $ 999,990 10/24/07 4,63%
Agency - FHLMC 3128X4RFO 10/24/05 04/05/06 - 10/06/06 $ 1,000,000 $ 1,000,000 10/24/07 4.63%
1 year T-BiII912827Z62 10/15/05 04/15/05 - 10/15/06 $ 1,022,900 $ 1,022,900 10/15/06 4.15%
Subtotal In-House Investments $10,722,900 $ 10,705,569
Averaoe Maturity 315
Averaoe Yield to Maturity 3.56%
Averaoe Yield - 6 mo. T-BiII 4.89%
Municioallnvestor Account $ 6.073.301 1 dav 4.86%
State Investment Pool $ 49,057,812 1 day 4.66%
Averaoe Portfolio Maturitv & Yield 52 4.54%
L~''''J/ 1$
The total invested balance at the end of April is $65.84M, which includes $49.06M in the state investment pool, $10,71M in-
house investment purchases, and $6,07M in the Municipal Investor Accounts, The state pool is composed of repurchase
agreements (46.51%), treasury securities (16.10%), agency coupons and callables (10,17%), IB bank deposit (10.05%), agency
floating rate notes (9.52%), discount notes (2,94%) and certificates of deposit (4.71 %). The City's total investment portfolio is
made up of74% State Pool, 16% In-House Investments, and 10% Municipal Investors Accounts.
Total Portfolio by Category Interest Rates Comparison
April 30, 2006 Mmicipal For the Month of April 2006
h-House
hvestrrents hvenstors
16% Account 6.0%
10% 116 M"lnth T-BiU
5.0%
4.0% II State Investrrent Pool
3.0% [] In-house Investrrent
2.0%
II Mmicipallnvestor
1.0% Account
0.0% II Fbrtfolio Average
2003 2004 2006
7
COUNCIL MEETING DATE: June 6, 2006 ITEM #: -
....... ......m..~......................._..............m....__._.____.._..._..._.. ......... ..............__ .......................................... ...m................. ........................_.......................... .....................mm.. ...................... no m.m................................_ ...........__......................._.... .... ................... ........ ............_m....................._................_._.__
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: VOUCHERS
POLICY QUESTION: Should the City approve the vouchers in the total amount of $1,800,264. 70?
COMMITTEE: Finance, Human Services & Regional Affairs Committee MEETING DATE: May 23, 2006
CATEGORY:
[8] Consent D Ordinance D Public Hearing
D City Council Business D Resolution D Other
STAFF REpORT By: Tho Kraus ~ DEPT: Management Services
----..........-.---...-................---......--......--..--...-.............--.....................-.---........-.--.....-......--........--.........--..-.-.--.....-...........-....-...--.-........................--....-...-..---....-.----.-.........---.-.-......---....-.-..--.--.....--..-.-.-
I, the undersigned, do hereby certify under penalty of petjury that the materials have been furnished, the services
rendered, or the labor performed as described herein and that the claims are just and due obligations against the
City of Federal Way, Washington, and that I am authorized to authenticate and certify said liens.
Attachments: Voucher List
Options Considered: NA
-.......--.--..--.....-- -----.---..---...--..--....-........-------.......--.-.--------........--.--.--.-.....---.---......----...-.---.---.---.-----.--.-.....-..--.....-.....-----.---
STAFF RECOMMENDATION: M
CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL:
Council Council
COMMITTEE RECOMMENDATION:
"I move approval of the vouchers and forward to the June 6, 2006 Council Meeting for approval, "
Committee Chair Committee Member Committee Member
PROPOSED COUNCIL MOTION: "I move approval of the vouchers pursuant to RCW 42.24. "
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
0 APPROVED COUNCIL BILL #
0 DENIED 1 ST reading
0 T ABLEDIDEFERRED/NO ACTION Enactment reading
0 MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 02/06/2006 RESOLUTION #
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