FHSRAC PKT 06-27-2006
City of Federal Way
City Council
Finance/Human Services/Regional Affairs Committee
Tuesday, June 27, 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
. RTID Update Burbidge Information
C. Update on the Organizational Capacity Building Pilot Allen-Mpyisi Information
Program
D. Amending the Organizational Capacity Building Interlocal Allen-Mpyisi Action
Agreement and Professional Service Contract
E. WiFi Project Update Sadri Action
F. Monthly Financial Report Kraus Action
G. Vouchers Kraus Action
4. OTHER
5. FUTURE AGENDA ffiMS
6. NEXT MEmNG: July 24, 2006 5:30 PM
Note: The Special Council Budget Study Session will follow this meeting at 6:30.
Committee Members: City Staff:
Unda Kochmar, Chair Iwen Wang, Management Services Director
Jeanne Burbidge Krystal Kelsey, Deputy City Clerk
Jack Dovey (253) 835-2541
K:\FHSRAC\2006\lune 2.7, 2006\6-27-06 Agenda.doc
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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
MINUTES
Committee Members in Attendance: Chair Linda Kochmar, Member Jeanne Burbidge. Member Jack
Dovey excused.
Council members in Attendance: Mayor Park and Councilmember McColgan
Staff Members in Attendance: Interim City Manager Derek Matheson, Management Services Director
Iwen Wang, City Attorney Pat Richardson, Finance Manager. Tho Kraus, Senior Financial Analyst Mark
Turley, CDBG Coordinator Kelli O'Donnell, Deputy Public Works Director Ken Miller and City Clerk Laura
Hathaway.
1. CALL TO ORDER - Chair Kochmar called the meeting to order at 5:05 PM.
2. PUBUC COMMENT - None
3. COMMmEE BUSINESS
a. Approval of Minutes - The Committee m/s/c to approve the minutes as presented.
b. Congressional and Legislative Affairs Update
Doug Levy updated the Committee on RTID and Sound Transit stating the ballot measure has
been delayed until 2007 and it must be a combined ballot measure for both RTID and Sound
Transit (meaning public must support both). Mr. Levy stated this is the type of thing the City
needs to keep in mined in advocacy of the Triangle Interchange and other projects.
Mr. Levy stated the fates of RTID, Sound Transit, local agencies, transit agencies and WSDOT
could be altered by the recommendation of a nine-member citizen commission (RTC) He also
gave a brief update on proposed initiatives and their potential impacts to the City. (Mr. Levy's
complete submittal is available in the City Clerk's Office).
c. Allocate 2005-2006 CDBG Funds to Participate in the Small Business Development
Center at Highline Community College (SBDC)
The Committee mjsjc to forward Option 1 to the June 20 Council agenda.
d. Proposed Ordinance Washington State Parks & Recreation (Dash Pt. Park) Sewer Line
and Park Utilities Franchise
The Committee mjsjc to forward the proposed Ordinance to a first reading on the June 6 City
Council Agenda.
FHSRAC June 27,2006
A-1
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e. Public Use of City Equipment at Council Meetings
The Committee m/sjc Option 1, to prohibit public use of city equipment at Council meetings, to
the June 6 City Council Consent Agenda.
f. 2005 HWR Final Accounting - Information Only
Finance Manager Tho Kraus reviewed a final accounting of the 2005 Han Woo Ri Festival and
addressed questions related to accounting controls. As the festival resulted in a $29,614 loss,
Council approved a $25,000 transfer from the City Manager Contingency Fund; the remainder of
the deficit was covered by Lodging Tax Funds. Ms. Kraus also reviewed the new guidelines for
the use of Hotel/Motel Taxes in 2006.
g. Monthly Financial Report
The Committee mjsjc to approve the Monthly Finance Report as presented and forward it to the
June 6,2006 City Council Consent Agenda.
h. Vouchers
The Committee mjsjc to approve the vouchers as presented and forward approval to the June 6,
2006 City Council Consent Agenda.
4. OTHER - None
5. FUTURE AGENDA ITEMS - None
6. ADJOURNMENT - Chair Kochmar adjourned the meeting at 6:00 PM
AlTEST:
Laura Hathaway, City Clerk
Approved by Committee on:
FHSRAC June 27, 2006
A-2
r
CITY OF FEDERAL WAY
CITY COUNCIL
FINANCE, HUMAN SERVICES AND REGIONAL AFFAIRS COMMITTEE
Date: June 15, 2006 dd--r----"
From: Angelina Allen-Mpyisi, Human Servl~
Via: Derek Matheson, Interim City Manag
Subject: Update on the Organizational Capacity uilding Pilot Program - Information Item
Backaround
Staff presented the program concept of the Organizational Capacity Building Pilot program during a
December Parks, Recreation, Human Services, Public Safety (PRHSPS) Council Committee meeting
prior to Human Services becoming a part of the Finance, Human Services and Regional Affairs
(FHSRA) Committee.
The concept of the Organizational Capacity Building Pilot (OCBP) program emerged as a result of the
City of Federal Way and City of Tukwila's concerns with the health and sustainability of small grassroots
human service organizations serving Federal Way and Tukwila. Both Cities work with a number of small
grassroots human service agencies and provide financial support to their human service programs.
However, in today's rapidly changing funding environment (with public, private and federal budgets
shrinking), competition for contributed income has intensified. Small human service agencies are
organizationally fragile and may feel overwhelmed to both "run their programs, "and fulfill their
organization's mission. Many are stretched to their limits and don't have the capabilities of addressing
the future health and sustainability of their organizations and program's. As demand for community~
based services grows these agencies are challenged to devise ways to increase and strengthen their
capacity to meet the growing demand.
For the last six months, staff has been working closely with the consultant, Liz Heath, Executive Director
of the Nonprofit Assistance Center, and Evelyn Boykan from the City of Tukwila to implement the
program. This report outlines the progress that has been achieved to date.
Capacity Analvsis Questionnaire
The two agencies selected to participate in the program were the Federal Way Senior Center and the
Tukwila Pantry. To determine the organizational capacity of both agencies an assessment tool was
developed. The assessment tool focuses on ten key areas:
. Role of the Board of Directors
. Community Relationships
. Delivery of Service
. Operational Planning
. Information Systems
. Financial Management
. Resource Development
. Evaluation of programs
. Facilities
. Human Resource Management
FHSRAC June 27, 2006
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Organizational Capacity Building Pilot Program - Status Report
Page 2
Refer to the attached for a copy of the assessment tool.
During the assessment of both organizations the consultant interviewed the agency's board and staff,
and provided them with a copy of the assessment tool. Board and staff from the Federal Way Senior
Center and Tukwila Pantry had the opportunity to self-evaluate their agencies and provided the
information to the consultant. The consultant also collected pertinent documents (i.e. by-laws, policies,
board records, financial reports, etc.), to review and analyze.
After the assessment was completed the consultant prepared a Capacity Analysis Report for each
agency. For purposes of this report the results that came out of the Federal Way Senior Center
Capacity Analysis Report are highlighted.
Federal Way Senior Center - Capacity Analysis Report
The graph depicts the ratings of each of the assessment categories done by the board (solid line) and
by the consultant (dashed line). Each of the categories is discussed in detail below with the ratings
shown in parentheses (Board/Consultant).
Federal Way Senior Center Capacity Analysis
100.0%
90.0%
80.0%
70.0%
I
I 60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
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I. Board of Directors (78%/50%)
The Board of the Federal Way Senior Center scored itself relatively high overall on the characteristics
relating to governance. However, they recognized that several issues existed. Low ratings were given in
the following areas:
0 Understanding of roles and responsibilities.
0 Orientation for new members.
0 Conflict of interest and ethics policies.
FHSRAC June 27, 2006
C-2
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,..---------.- ~- --_..~._-
Organizational Capacity Building Pilot Program - Status Report
Page 3
During the consultant's observation of the board, and contrary to the board ratings, the board structure is
not well defined. Job descriptions are not in place and committees do not appear to exist or be
functioning. Minutes do not reveal deliberation on governance topics but, rather, on specific operational
topics and activities for the Federal Way Senior Center. The board handbook submitted was simply a
copy of another publication for which no citation was provided. For all these reasons, the consultant
rated this category significantly lower than the board's.
II. Community Relationships (85%/66%)
This is the area receiving the highest score from the Board of Directors with not one dissenting vote. The
consultant rating was also comparable. The question of community partnerships bears some
exploration with respect to definition of an effective partnership, but good commitment to building such
partnerships exists.
III. Delivery of Service (62%/50%)
Here the board and consultant ratings are relatively close. It is certainly true that the needs of clients are
kept in mind in delivering services. However, there are concerns about:
0 Effective collection and utilization of customer feedback.
0 Equal delivery of services to all clients by all staff and volunteers.
0 The strengths and capacity of staff and volunteers to deliver services.
IV. Operational Planning (43%/0)
In spite of the consultant's requests for short and long term plans, the consultant didn't receive any
information and was at a loss to understand why the board rated itself as having this capacity. There
appears to be no board involvement in developing plans or assessing progress on them. In fact, there
appear to be no plans. For this reason, the consultant rated this category as a zero.
V. Information Systems (53%/70%)
The board clearly believes that the organization has the ability to track and report client data, yet the
consultant's review of a report to a funder demonstrated there are concerns in this area. While the
Federal Way Senior Center has a number of computers for training purposes, it is not clear that they are
used in management activities, given the number of hand-written reports provided. The board shares the
consultant's concern for the capacity of record-keeping and having computer systems in place.
VI. Financial Management (69%/57%)
The relatively comparable ratings by the board and the consultant on this topic underscore the
fundamental concerns about the Federal Way Senior Center's financial management. While it appears
to be true that the board does receive financial reports regularly and that they approve the budget for the
year, these activities do not go deep enough.
In the process of the consultant studying this characteristic, several issues were identified:
0 There is no record-keeping for donated food and goods, either for receipt or distribution of these
items.
0 There is no balance sheet presented to the board as part of the regular reporting, making it
impossible for the group to know their financial status.
FHSRAC June 27,2006
C-3
Organizational Capacity Building Pilot Program - Status Report
Page 4
0 There is no reserve fund, although there appear, from the Form 990, to be investments. Yet
information could not be provided on these assets.
0 It is uncertain if the organization carries specific Directors' and Officers' Liability Insurance.
0 There may be improvements to be made in providing checks and balances for financial transactions
(this has not been explored to date).
0 The Federal Way Senior Center does not appear to be registered with the Charitable Solicitations
Department of the Secretary of State's Office yet fund raising activities are being conducted. If true,
this is a violation of law.
Because of significantly increased scrutiny of the financial systems and activities of non profits, the
Federal Way Senior Center must make significant improvements to its financial management system.
Responsibility for assuring this is completed rests with the Board of Directors.
VI/. Resource Development (52%/43%)
There is a degree of recognition by the board that more should be done in the area of generating
financial support. There is no development plan in place, and most of the fund raising effort seems to be
focused on grant writing. The board will need to take a more active role in contributing support and in
encouraging others to do so.
VIII. Evaluation (70%/50%)
While the Federal Way Senior Center does submit reports of activities to funding sources, the quality of
those reports is lacking clarity and accuracy. This was the underlying concern in the consultant's rating.
The board evaluated this component rather high, which might indicate only cursory review of this
information or perhaps no review at all.
IX. Facilities (78%/88%)
There were no question in the minds of the board and the consultant that the facility is appropriate for
the Federal Way Senior Center and its activities. There is a concern by both parties for security and for
reserve funds for emergency repairs.
X. Human Resource Management (53%/25%)
The board and consultant ratings were relatively consistent. Job descriptions were not provided,
staff/volunteers do not have the context of an operational plan to guide their work and training is limited.
Furthermore, the board does not appear to be taking the lead in those areas where they have
responsibility (Le. planning, assessment, fund raising, and financial oversight). There were also a
number of reports of dissention and/or poor working relationships among staff and volunteers. Further,
there are familial relationships between staff and board members, and accusations of inappropriate
behavior (Le. lack of cleanliness, inappropriate language, favoritism).
After the consultant presented her report, the board held a planning retreat with the consultant on May
16 to identify the steps they wish to take toward improving the organization's internal infrastructure.
Plannina Retreat
During the planning retreat, a number of planning goals were identified by the board:
. Set up a system for goods received and distributed.
. Improve financial reports (to be more accountable).
FHSRAC June 27, 2006
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Organizational Capacity Building Pilot Program - Status Report
Page 5
. Add paid staff.
. Add new programs that draw in new members.
. Fundraising.
. Improve facility rental program.
. Promote the Federal Way Senior Center in the community.
. Expand board to include other professionals.
The board narrowed down their goals and selected the top four they would focus working on during the
pilot program. The goals are: 1) Add paid staff, 2) fundraising, and 3) be more accountable and 4)
improve their financial reports. Two committees were set up to work on two sets of goals. On July 18
the committees will report back to the full board to explain what strategies will be implemented to
achieve the goals. It is important to point out that the remaining goals will be addressed but through a
long range plan.
United Way Venture Fund Proaram
To allow the City of Federal Way and City of Tukwila to expand our ability to have more than one agency
receive assistance through the program, I was able to secure a grant in the amount of $14;000 through
United Way of King County's Venture Fund Program. The grant will allow us to enable two more
organizations to receive assistance and will allow us to have the four groups receive training in the areas
of: Financial Management, Fundraising, Board Governance and Board Recruitment. These trainings
will take place beginning the month of September and are scheduled to run through February 2007.
Partnership Expanded
The City of Burien has agreed to partner with the City of Federal Way and City of Tukwila to participate
in the Organizational Capacity Building Pilot program. The City of Burien recognizes their municipality
has similar organizational concerns with agencies they support. An amended Interlocal Agreement and
Professional Services contract have been drafted to reflect the expansion of the partnership and
additional resources coming to the OCBP program.
Conclusion
The work of improving the organizational capacity of small grassroots human service agencies is
complex and challenging. Through the aCBP program the City of Federal Way and City of Tukwila are
seeing the value of the work being conducted through the program. The capacity assessment and the
capacity analysis report provide both Cities with a clearer sense of the organizational health and strength
of their respective agencies. Without strong internal operations (Le. board management, staff, fiscal
accounting, fund development), it will be a constant challenge for the Federal Way Senior Center and
Tukwila Pantry to continue to do a good job of delivering effective programs or improve the quality of life
for low and moderate-income seniors and families. The technical assistance, that the boards and staff
from both agencies receive, has enabled them to begin and define the best ways to help make their
organizations become more efficient and effective. If the aCBP program didn't exist the boards and
staff of the Federal Way Senior Center and Tukwila Pantry would not have the opportunity or the means
to make systematic change in their organizations.
Further success of the OCBP program is evident through the City of Burien's interest in joining to
become a partner and the recent grant award from United Way of King County's Venture Fund Program.
After reviewing the report if you have questions prior to the meeting, I can be reached at (253) 835-2650
or by email anaelina.allenmpvisi@citvoffederalwaV.com.
FHSRAC June 27,2006
C-5
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Capacity Analysis Questionnaire
conducted by
The Nonprofit Center
Tacoma, WA
www.npcenter.org
FHSRAC June 27, 2006
C-6
I. Board of Directors Yes No Working Dissatisfied NA Don't
on it Know
1. The mission statement clearly defines the
organization's vision, purpose and goals.
2. The organization has clear by-laws that make
sense and provide valuable guidance.
3. The board structure well defined (i.e. member
and committee job descriptions are in place;
committees/working groups are active).
4. Board members clearly understand their roles
and responsibilities.
5. The composition of the board represents the
community being served by the organization.
6. The organization has a good orientation
program for new board members.
7. Board members usually complete their full
terms.
.
8. Board approved policies are in place which
address ethics, conflict of interest, anti-
discrimination and anti-harassment.
9. Completed conflict of interest disclosures are on
file for all current board members and key
staff/volunteers.
10. Board meetings are well run and productive.
A. How often did your board meet within the last year?
B. How many times has the board had a quorum in the last year?
C. How many vacancies do you currently have on the board?
D. What strategies are used for board recruiting? Please rate each from 1 (low) to 5 (high) on the success you have
had with each.
Newspaper ad or notice We look to our clients/customers
Newsletter notice Members must find their replacements
Board members ask their friends We ask local businesses/corporations to provide
Nominating Committee is responsible members
We look to our volunteers We use the United Way Volunteer Center
We look to our members The Director/lead staff person is responsible
Other
Capacity Analysis Questionnaire FHSRAC June 27, 2006 Page 2
C-7
II. Community Relationships Yes No Working Dissatisfied NA Don't
on it Know
1. The organization strives to include all
people, regardless of race, color, religion,
sex, age, or national origin in its activities.
2. The organization has active partnerships
with other organizations in the community.
3. The relationship is strong between this
organization and other organizations
providing similar or related services.
A. How do you communicate with your community? Please rate all that apply from 1 (low) to 5 (high) on the
effectiveness of each.
Newsletter Interagency forums
- Press releases Email notices/updates
_Speakers' Bureau Other (please describe)
- Client outreach
- Website
B. Who are your organization's strongest allies?
C. Who are your organization's strongest antagonists? Does this antagonism harm your agency's
reputation?
FHSRAC June 27,2006
C-8
Capacity Analysis Questionnaire Page 3
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III. Delivery of Service Yes No Working Dissatisfied NA Don't
on it Know
1. The concerns of customers/clients, local
government, the business sector, the
community and funders are incorporated
into the organization's approach to service
delivery .
2. The cultural diversity of customers served
by the organization is understood and
considered in designing the organization's
approach to service delivery.
3. Customer feedback is used to assess the
effectiveness of service and is considered in
making any changes to the organization's
approach to service delivery.
4. All staff/volunteers that work directly with
customers deliver the organization's
services equally.
5. The strengths of staff and volunteers meet
the needs of the organization well.
FHSRAC June 27, 2006
C-9
Capacity Analysis Questionnaire Page 4
IV. Operational Planning Yes No Working Dissatisfied NA Don't
on it Know
1. The organization approaches its long term
planning with a clearly understood mission
and organizational philosophy.
2. The board of directors and community at
large are involved in formulating and
reviewing long-term goals.
3. Long-term goals do a good job of projecting
future funding, staffing and operational
needs.
4. The organization develops written annual
(short term) goals that relate to the long-
term plan and that are approved by the
board.
5. The organization regularly reviews progress
toward its goals and assesses whether the
programs continue to reflect the needs of
people being served.
6. The primary staff/volunteer leader and the
board anticipate and respond to changes in
the environment, developing contingency
plans when necessary.
FHSRAC June 27,2006
C-10
Capacity Analysis Questionnaire Page 5
v. Information Systems Yes No Working Dissatisfied NA Don't
on it Know
1. The organization has the ability to track and
clearly report to the board and funders the
status of projects, programs, program
participants, grants received, grants
pending, personnel and other administrative
information.
2. The organization uses a reasonably up-to-
date computer-based system for managing
project and program information.
3. The filing system is efficiently organized and
easy-to-use and old information is regularly
archived. The organization has back-up
copies of all important software and data.
4. The current level of computer hardware and
software is adequate for the uses of people
being served.
5. The skill level of the staff is adequate to
operate existing and anticipated hardware
and software.
A. What additional technical assistance, equipment or software is needed to achieve a good information
system?
FHSRAC June 27,2006
C-11
Capacity Analysis Questionnaire Page 6
--------------------------------
VI. Financial Management Yes No Working Dissatisfied NA Don't
on it Know
1. Written policies and procedures are in place
that address separation of duties,
authorization of expenditures, check signing
and other basic financial best practices.
2. The organization has a board-approved
annual budget process that involves the
board in its development, projects revenues
and expenses, and includes strategies for
developing new revenues.
3. The organization has sound financial record
keeping and reporting systems, which
supply financial information in a clear,
comprehensive and timely manner to the
board and to funding sources.
4. The Board regularly receives, understands
and discusses financial reports.
5. The organization has developed successful
strategies for adjusting expenditures in the
face of changing circumstances.
6. The organization has a reserve fund equal
to three months of operating expenses.
7. The organization's Form 990 is filed in a
timely manner.
A. What insurance does your organization carry?
o General Liability 0 Professional Liability 0 Directors' & Officers' Liability
o Other
B. Please identify the sources of your funding:
Government grants:
Federal % Individual contributions %
State % Corporation grants %
County % Foundation grants %
City % Memberships %
Government contracts % Special Events %
United Way % Earned income %
Capacity Analysis Questionnaire FHSRAC June 27,2006 Page 7
C-12
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VII. Resource Development Yes No Working Dissatisfied NA Don't
on it Know
1. The organization has established a clear
policy on resource development by the
board and organization.
2. There is a written plan in place for raising
funds.
3. The organization can readily compile
information to support and explain the
organization's purpose and need for funds.
4. The organization has the ability to efficiently
and effectively raise funds for its operating
budget and has been successful in doing so.
5. All board members are financial contributors
to the organization at a level appropriate to
their commitment and their means.
6. Board members actively participate in
resource development activities.
7. The organization has an identified person
who takes the lead in fund raising activities.
A. Please identify the fundraising activities you use:
o Donor cultivation activities (tours, special information gatherings, etc.)
o Letter solicitations
o Special events
o Personal solicitations
o Sponsorship solicitations
o Grantwriting (government, foundation and corporation)
o Other (please describe)
Capacity Analysis Questionnaire FHSRAC June 27,2006 Page 8
C-13
VIII. Evaluation Yes No Working Dissatisfied NA Don't
on it Know
1. The tracking and documentation
requirements of all contracts are well
understood and met.
2. Written procedures are in place for tracking
necessary data for reporting.
3. The organization has the ability to organize
data and generate reports to address the
needs of funders, the board and staff.
A. What method is used to evaluate service effectiveness?
B. How is this information used?
FHSRAC June 27, 2006
Capacity Analysis Questionnaire C-14 Page 9
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IX. Facilities Yes No Working Dissatisfied NA Don't
on it Know
1. The organization's facilities provide an
adequate amount of space to meet current
and near-term needs.
2. The organization's facilities and equipment
are secured from damage and theft.
3. The location is accessible to those who may
require its services.
4. The building is accessible for use by people
who are physically challenged.
A. If you own capital assets (buildings, vehicles, etc.) how do you provide for regular and emergency
maintenance and replacement?
FHSRAC June 27, 2006
Capacity Analysis Questionnaire C-15 Page 10
x. Human Resource Yes No Working Dissatisfied NA Don't
on it Know
Management
1. Roles and responsibilities are consistent
with job descriptions.
2. Paid staff are fairly compensated (salary
and benefits) for their work.
3. Volunteers are appropriately recognized and
rewarded for their work.
4. An annual operational plan is used for
setting priorities and providing guidance to
staff.
5. Key staff and volunteers have annual work
plans (specific goals & objectives) derived
from the organization's operational plan.
6. There is an emphasis on training for board,
staff and volunteers.
7. The organization's values and working
methods reflect the mission of the
organization.
8. There is an appropriate balance between
the leadership of the board and the staff.
A. What does your organization do to build a strong staff-board-volunteer team? How successful are you
at this?
B. Are your staff and volunteer resources sufficient to deliver services?
C. What concerns do you have with growth, staff retention/turnover and assistance needed with these
issues?
FHSRAC June 27, 2006
C-16
Capacity Analysis Questionnaire Page 11
------.---...---
Additional Comments
(Please reference your comments to a specific section and statement/question number.)
FHSRAC June 27,2006
C-17
Capacity Analysis Questionnaire Page 12
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--- ----------- --------------- -----------------------
Please provide one copy of the following materials when submitting your completed Questionnaire:
0 Current Bylaws
0 Board manual or handbook, if one exists
0 Current board roster with names, terms and affiliations
0 A list of board committees, indicating those that are currently active.
0 A set of board minutes for the past three months.
0 Resumes or experience descriptions of primary staff or volunteers.
0 A copy of your long-term or strategic plan.
0 A copy of your annual operating plan.
0 A copy of your current financials: Statement of Position (Balance Sheet), Statement of
Activities (Profit & Loss)
0 A copy of your budget for the current year.
0 A copy of your Human Resources/Personnel Policy Manual if you have one.
FHSRAC June 27,2006
C-18
Capacity Analysis Questionnaire Page 13
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-- ---- --- --- ------~~------- ---- ----- -------------- ~~------ ----
COUNCIL MEETING DATE: July 5, 2006 ITEM
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: Amend the Interlocal Agreement and Professional Services Contract for the Organizational
Capacity Building Pilot program
POLICY QUESTION:
Should the City of Federal Way amend the current Interlocal Agreement to expand the partnership in the
Organizational Capacity Building Pilot Program to include the City of Burien and amend the Professional
Services Contract to accept funds from United Way of King County and the City ofBurien?
COMMITTEE: FHSRAC MEETING DATE:
CATEGORY:
[gJ Consent 0 Ordinance 0 Public Hearing
0 City Council Business 0 Resolution 0 Other
~!~~~~Y2~!~y:~g~F~~~!!~~:~py'~.~?.!!~~~~~~~~_~~~~~~~g~!. ...~~~~~_~~~~~~.?~:~~~~:~~._...._.__.
Attachments:
. Memo to the Human Services Commission dated June 12,2006
. Proposed amended Interlocal Agreement and Professional Services Contract
Options Considered:
1. Authorize the City Manager to approve the amended Interlocal Agreement and Professional Services
Contract in support of the Organizational Capacity Building Pilot program.
2. Not authorize the City Manager to approve the amended Interlocal Agreement and Professional
Services Contract for the Organizational Capacity Building Pilot program.
,.........................-....... .................................-......p....... . ........................ .......................... ............--...........-....... .. ............~_.H.H..~...~ ......p......._......._....... ......_.....H..._._._._._...._.~_...._.__H__H..
STAFF RECOMMENDATION:
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: "] 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 TABLED/DEFERREDINO ACTION Enactment reading
0 MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED - 02/06/2006 RESOLUTION #
- --------------------- --------------
CrrvOF ~.
Federal Way
MEMORANDUM
DATE: June 12, 2006
TO: Human Services Commission ~
FROM: Angelina Allen-Mpyisi, Human Services Manager
SUBJECT: Amending the Interlocal Agreement and Professional Services Contract for the
Organizational Capacity Building Pilot Program
Policy Question:
Should the City of Federal Way amend the current Interlocal Agreement to expand the partnership in the
Organizational Capacity Building Program to include the City of Burien and amend the Professional
Services Contract to accept funding from United Way of King County and the City of Burien?
Backqround:
The City of Federal Way and City of Tukwila entered into an Interlocal Agreement dated March 28, 2006.
whereby the two Cities agreed to fund an Organizational Capacity Building Pilot (OCBP) Program that
would strengthen the organizational infrastructure of two small human service nonprofit organizations
serving Federal Way and Tukwila. Last month, the City of Burien expressed interest in becoming a
partner to participate in the OCBP Program. Expanding the partnership would enable-the City of Burien
to allow 2 small grassroots human service agencies serving Burien to receive tech nidal assistance and
training that will increase the capacity and knowledge of their staff and board to effectively manage and
lead their agencies. The City of Federal Way is interested in amending the currentlnterlocal Agreement
to expand the partnership, increase the number of agencies that will participate imthe program and
extend the term of the Agreement. Attached is a copy of the proposed amended Interlocal Agreement..
The City of Federal Way successfully secured a grant from United Way of King County through the
Venture Fund Program in the amount of $14,000. The grant will be used to provide te1chnical assistance
and training for two additional organizations serving Federal Way and Tukwila. The City of Burien is also
interested in providing funding to support two agencies they select to participate in the OCBP Program.
The current Professional Services Agreement must be amended to increase funding in the contract
because of the additional funding from United Way and the City of Burien, and extend the term of the
agreement. A copy of the proposed amended Professional Services Contract is attached.
Option 1:
The Human Services Commission recommends that the City amend the Interlocal Agreement to expand
the partnership to include the City of Burien, and extend the term, and to amend the Professional
Services Contract to accept additional funding from the City of Burien and United Way of King County in
support of the Organizational Capacity Building Pilot Program, and extend the term of the contract.
Option 2:
The Human Services Commission does not recommend that the City amend the Interlocal Agreement or
the Professional Services Contract in support of the Organizational Capacity Building Pilot Program.
Staff recommendation:
To approve Option 1.
FHSRAC June 27, 2006
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Proposed Motion:
I move to recommend Option 1 that the City of Federal Way amends the Interlocal Agreement and
Professional Services Contract in support of the Organizational Capacity Building Pilot program.
Please contact me at (253) 835-2650 or anaelina.allenmpvisi(Q>.citvoffederalwav.com if you have any
questions regarding this item.
FHSRAC June 27, 2006
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FIRST AMENDMENT
TO
INTERLOCAL AGREEMENT
FOR
PLANNING, FUNDING AND IMPLEMENTATION OF AN ORGANIZATIONAL
CAPACITY BUILDING PILOT PROGRAM 2006-2007
This First Amendment ("Amendment") is dated effective this _ day of ,
2006, and is entered into by and between the City of Federal Way, a Washington municipal
corporation, the City of Burien, a Washington municipal corporation and the City of Tukwila, a
Washington municipal corporation, hereinafter collectively referred to as "Cities."
WHEREAS, the City of Federal Way and the City of Tukwila entered into an Interlocal
Agreement, hereafter referred to as "Agreement," dated March 28,2006 whereby the City of Federal
Way and the City of Tukwila agreed to fund an Organizational Capacity Building Pilot Program that
will strengthen the organizational infrastructure of two small human service nonprofit organizations
in Federal Way and Tukwila. The organizational capacity building will increase the capacity and
knowledge ofthe staff and board to effectively manage and lead their human service agencies;
WHEREAS, the Organizational Capacity Building Pilot Program has received additional
funding from United Way of King County in the form of a grant in the amount of $14,000, which
will allow the City of Federal Way and City of Tukwila to expand the program;
WHEREAS, Burien engages in activities which support human service and other nonprofit
providers in King County for the benefit of its citizens in its jurisdiction;
WHEREAS, Burien has determined that it would be in the best interest of its citizens ifthey
were to join Federal Way and Tukwila in making the most efficient use of their resources by
cooperating to provide funding to improve the organizational effectiveness of small grassroots
human service and community development agencies in the Cities;
WHEREAS, Section 12 (Provisions) of the Agreement provided that the Agreement may only
be amended by written agreement signed by the parties; and
WHEREAS, The City of Federal Way and the City of Tukwila desire to amend the
Agreement to continue the Services described in Section 1 and 2 ofthe Agreement by expanding the
partnership, increasing the number of agencies that will participate in the program, and extending the
term of the Agreement.
NOW, THEREFORE, the parties agree to the following terms and conditions:
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FHSRAC June 27, 2006
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1. Parties
The first paragraph of the Agreement shall be amended to include the City of Burien as a
party to the Agreement.
2. Purpose.
Section 1 ofthe Agreement shall be amended to indicate that the purpose of the Agreement is
to create a cooperative arrangement between the Cities to fund a program that will strengthen the
organizational infrastructure of six small human service nonprofit organizations or community
development agencies within the Cities.
3. Responsibili ti es.
Section 2(b) and Section 2( c) of the Agreement shall be amended to include the City of
Burien agreeing to the following duties during the implementation ofthe Organizational Capacity
Building Pilot Program:
Tukwila's and Burien's Duties:
1) Remit the total annual funding allocation approved for the organizational capacity building
pilot program to Federal Way, as described in Exhibit A-I, attached hereto and incorporated
by this reference.
Cities' Joint Duties:
1) Attend meetings with the consultant to review information and discuss the progress of the
human service agencies.
2) Identify additional sources of private and philanthropic support for the organizational
capacity building pilot program.
3) Determine whether the Organizational Capacity Building Pilot Program be expanded and
replicated to other communities in King County.
4) Share lessons learned with grantmakers, policy makers and other stakeholders.
4. Contacts.
Section 5 shall be amended to include the following contact information:
Ci Contact
Burien Parks, Recreation and Cultural Services Director, currently
Michael Lafreniere
425 SW 144th Street
Burien, W A 98166
206 988-3703; michaell ci.burien.wa.us
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FHSRAC June 27,2006
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5. Term.
Section 3 ofthe Agreement shall be amended to extend the term through August 1,2007.
6. Full Force and Effect.
All other terms and conditions of the Agreement not modified by this Amendment shall
remain in full force and effect.
DATED the effective date set forth above.
CITY OF FEDERAL WAY
Interim City Manager, Derek Matheson
PO Box 9718
Federal Way, WA 98063-9718
ATTEST: APPROVED AS TO FORM:
City Clerk, Laura Hathaway, CMC City Attorney, Patricia A. Richardson
CITY OF BURIEN
City Manager
415 S.W. 150th Street
Burien, WA 98001
ATTEST: APPROVED AS TO FORM:
City Clerk, City Attorney,
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FHSRAC June 27,2006
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__ ___ n__________ ------~
CITY OF TUKWILA
Steven M. Mullet, Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk, City Attorney, Shelley M. Kerslake
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FHSRAC June 27, 2006
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EXHIBIT A-l
Brief Description
The Organizational Capacity Building Pilot (OCBP) Program is a program ofthe City of Federal
Way in collaboration with the City of Burien and City of Tukwila. Thi!5 capacity building
strategy is designed to increase the organizational effectiveness of small grassroots human
service and community development agencies serving Burien, Federal Way and Tukwila.
. Through the program these organizations will learn techniques to successfully govern and
manage themselves, develop assets and resources, forge and maintain community linkages, and
continue to deliver valued services in Burien, Federal Way and Tukwila.
Goals
. Strengthen the organizational infrastructure of small grassroots human service and
community development organizations serving Burien, Federal Way and Tukwila.
. Increase the capacity and knowledge of the staff and board to effectively manage and lead
their human service agencies.
. Share lessons learned with other grantmakers, policy makers and other stakeholders to
expand and replicate this model in other communities in King County.
An outside consultant with expertise in nonprofit capacity building will be hired to work with
each participating group to expand their capacity for effectiveness and sustainability.
During the assessment phase, a self-evaluation tool will be administered and analyzed, pertinent
documents (by laws, policies, board records, financial reports, etc.) will be analyzed and selected
individuals may be interviewed. The assessment will look at the present capacity of two human
service organizations and will identify what is working well and what is needed to help the
organizations become stronger and better able to fulfill their mission.
The assessment phase will conclude with the presentation of a report to each organization
identifying areas for attention and recommendations for action. The planning phase will begin
with at least one extended planning session, led by the consultant and involving the board of
directors and key staff members. The result of this session will be the identification of three to
six capacity-building goals for implementation. Subsequently a plan will be developed by the
organization, with the assistance of the consultant. The plan will include:
1. Strategies or methods that best allow it to get stronger in each priority area;
2. Who will lead the effort in each area and by when;
3. How the organization will know its been successful in building in each area;
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FHSRAC June 27, 2006
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4. How those within the organization will be accountable for following through in areas
that affect them; and
5. How the organization will integrate what its learned into day-to-day operations.
Plan implementation will be the responsibility of each organization and will likely include a
number of components:
0 Education in nonprofit management and governance;
0 Structural changes for the board or the organization;
0 Fund development planning and fund raising; and
0 Additional learning and organizational changes as needed.
In order to assure confidence in the changes they are making and to assist each group in staying
focused on prioritized goals, the consultant will provide ""coaching" services during the plan
implementation period. This coaching will include technical assistance, resource identification
and validation of steps being taken to achieve goals.
To determine the success ofthe pilot project, the final report process will include a repeat
assessment with each organization to determine if changed behavior actually did take place.
New attitudes, skills and knowledge are just some ofthe potential changed behavior techniques
that could emerge from the evaluation.
BUDGET
Participating Cities Amount of Funding
Federal Way - Lead City $ 8,984
Burien $15,667
Tukwila $ 5.250
SUBTOTAL: $29,901
Funding from United Way $14.000
TOTAL: $43,901
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FHSRAC June 27,2006
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FIRST AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
FOR
ORGANIZATIONAL CAPACITY BUILDING PROGRAM TECHNICAL ASSISTANCE
This First Amendment ("Amendment") is dated effective this _ day of ,
2006, and is entered into by and between the City of Federal Way, a Washington municipal
corporation ("City"), and the Nonprofit Center, a Washington nonprofit corporation, a
("Contractor").
A The City and Contractor entered into a Professional Services Agreement dated
effective March 1, 2006 whereby the Contractor agreed to provide technical assistance to two (2)
small human service nonprofit organizations in Federal Way and Tukwila as part of the
Organizational Capacity Building Pilot Program. The technical assistance will help strengthen the
organizational infrastructure ofthese two agencies and increase the capacity and knowledge of the
staff and board to effectively manage and lead their human service agencies. ("Agreement").
B. The City and the Contractor now desire to have the Contractor provide technical
assistance to up to six (6) small human service nonprofit organizations or community development
agencies serving Burien, Federal Way and Tukwila as part ofthe Organizational Capacity Building
Pilot Program. The technical assistance will help strengthen the organizational infrastructure of these
six agencies, increase the capacity and knowledge ofthe staff and board to effectively manage and
lead their human service or community development agencies and provide training to City human
service staffto help increase their technical experience and knowledge on nonprofit organizational
capacity.
C. Section 15.2 (Modification) ofthe Agreement provided that the Agreement may only
be amended by written agreement signed by the parties.
D. The City and the Contractor desire to amend the Agreement to expand the Services
described in Section I of the Agreement, to extend the term of the Agreement, and to increase the
compensation paid to the Contractor.
NOW, THEREFORE, the parties agree to the following terms and conditions:
1. Services.
Section 1 ofthe Agreement and the Services, attached as Exhibit "A" to the Agreement, shall
be amended to include those additional services more particularly described in Exhibit "A-l "attached
hereto and incorporated by this reference ("Additional Services").
- 1 -
FHSRAC June 27, 2006
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2. Term.
Section 2 of the Agreement shall be amended to extend the term of the Agreement until
August 1, 2007.
3. Compensation.
In consideration of Contractor providing the expanded Services described in Section 1 of the
Agreement during the extended term ofthe Agreement, Section 4.1 shall be amended to increase the
compensation paid to the Contractor by an additional amount not to exceed Forty-Three Thousand,
Nine Hundred and Oneil 00 Dollars ($43,901). The total amount payable to Contractor pursuant to
the original Agreement and this First Amendment shall be an amount not to exceed Forty-Three
Thousand and OnellOO Dollars ($43,901).
4. Full Force and Effect.
All other terms and conditions of the Agreement not modified by this Amendment shall
remain in full force and effect.
DATED the effective date set forth above.
CITY OF FEDERAL WAY
By:
Interim City Manager, Derek Matheson
PO Box 9718
Federal Way, WA 98063-9718
ATTEST: APPROVED AS TO FORM:
City Clerk, Laura Hathaway, CMC City Attorney, Patricia A. Richardson
THE NONPROFIT CENTER
By:
Executive Director, Elizabeth Heath
1501 Pacific Avenue, Suite 320
Tacoma, WA 98402
Phone: (253) 272-5844
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FHSRAC June 27,2006
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--- - --- --- -
-------
STATE OF WASHINGTON)
) ss.
COUNTY OF PIERCE )
On this day personally appeared before me Elizabeth Heath, to me known to be the Executive
Director of The Nonprofit Center that executed the foregoing instrument, and acknowledged the said
instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes
therein mentioned, and on oath stated that he/she was authorized to execute said instrument and that
the seal affixed, if any, is the corporate seal of said corporation.
GIVEN my hand and official seal this day of ,2006.
(typed/printed name of notary)
Notary Public in and for the State of Washington.
My commission expires
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FHSRAC June 27, 2006
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FHSRAC June 27, 2006
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COUNCIL MEETING DATE: July 18, 2006 ITEM #:
_.....h.M........_....._............_...._..........._....__............................... .........._.......... .................. .............................. ... .............. .. ....-............-....-....................-.............. ... ..... ................ ..........-..................................-...........-.- ................-.......-
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: WIFI INTERNET SERVICE OPTIONS FOR FEDERAL WAY
POLICY QUESTION: Should the City continue FREE WiFi internet services in the city center?
COMMITTEE: Finance, Human Services and Regional Affairs MEETING DATE: June 27, 2006
CATEGORY:
~ Consent D Ordinance D Pnblic Hearing
0 City Council Business D Resolution D Other
~!~!!~!'2~!!l.Y.:.M~!!.~!~~4!:!'.~!.<:>.!!!1.~~!g~I~~~g!gg.y.M~~~gc::.~.....m_..:I.?~.!'!~M~~~g~.~~~t...~~~.~.~~. .__ ....____.
ATTACHMENTS: Staff report dated June 23, 2006.
OPTIONS CONSIDERED:
1. Continue the free service in the downtown and Silver Lake areas and expand the service in
downtown with remaining equipment.
2. Move the Silver Lake system and use the remaining equipment to expand the free WiFi service
beyond downtown to the SR99 corridor (272nd to 336th), city parks, and city buildings/facilities.
... ...................~... ...........................................-.... ..........................-............ ....................... .............................. ................... .......... ............................................................
STAFF RECOMMENDATION: Staff recommends approving Option 2.
CITY MANAGER ApPROVAL: ~ DIRECTOR ApPROVAL: \VJ
f/11~e Council Cd'mrnittee Council
COMMITTEE RECOMMENDATION: Forward Option _ to the July 18,2006 City Council Agenda.
Linda Kochmar, Chair Jeanne Burbidge, Member Jack Dovey, Member
PROPOSED COUNCIL MOTION: "] move approval of the staff recommendation to move equipment to the
business corridor and continue free WiFi services. "
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
0 APPROVED
0 DENIED
0 T ABLEDIDEFERREDINO ACTION
0 MOVED TO SECOND READING (ordinances only)
REVISED - 02/06/2006
------------ ------
,~ Federal Way
STAFF REPORT
Date: June 23, 2006
To: Finance, Human Services and Regional Affairs Committee
From: Iwen Wang, Management Services Director --J:/<..0
Via: Derek Matheson, Interim City Manager \ w~ c?-FIK___
Subject: WiFi Project Update
BACKGROUND
In 2005 Council approved a "proof of concept" pilot project to determine the viability of providing citywide
wireless broadband internet services. The pilot project is funded with $150,000 in public safety wireless access
grants and $250,000 in city funds.
Staff completed installation of the WiFi network in two areas in the city (downtown core and Silver
Lake) in January of 2006. Since then the network has since been available to the public and Public
Safety use. The system is comprised of over 4.5 miles of fiber line, 16 wireless backhaul
transmitter/receivers and 19 WiFi access points (AP) in the Silver Lake area, two WiFi Panels, two APs
downtown, and two wireless backhaul transmitter/receivers downtown. The infrastructure covers a 1.2
square mile area, including The Commons. At the same time, staff also connected DBC, City Hall, and
Police Officers stationed in The Commons, and set up two networks: one secure network for Public
Safety use and a separate network and website for public use. One remaining WiFi panel and several
APs are available for use.
Total cost of the system to date is around $360K:
. actual WiFi hardware and access software costs - approximately $185K
. fiber optic cables to the two pilot areas - $75K
. contract installation - $40K
. staffing - $25K
. antenna site leases - $5K
. contract and consulting services - $30K
. Remaining Balance - $40K.
SYSTEM CAPABILITIES AND LIMITATIONS
The theoretical capacity is 1.5 MBPS access speed per user which is faster than DSL and cellular
services but slower than Comcast service for public users; and 11 MBPS for Public Safety personnel.
A total of 3,400 login IDs were issued to 2,200 one-time "visitor" users and 1,200 residentiallbusiness-
type users. Since login IDs have preset expiration times, these numbers include return users, or users
who forgot their login IDs. There is an average of 15 users on the network at any given time between 8
AM and 8 PM. Not surprisingly, more consistent returning users exist in the Silver Lake area than in
the downtown.
Our online surveys show residential users may be willing to pay anywhere from $5 to $25 per month
for the service, while visiting users may be willing to pay anywhere from $2 to $8 for a day or week of
service. However, for the most part, users are requesting free service. In addition, residential users are
FHSRAC June 27, 2006
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interested in more complete internet services besides basic access like e-mail, web space, security, spam
control and the like.
There are substantial limitations of 802.11 a/b/g WiFi networks. Sharing frequencies with many other
household devices causes interference while interfering with exiting wireless networks in many homes.
Its radio output power is limited to one watt, thereby providing limited penetration through walls,
buildings, trees, and other obstacles. Also, due to the low power output, the signal strength (speed)
drops rapidly as it moves away from the access point.
Finally, the system's reliability is a concern. For the most part, the equipment is quite reliable and has
limited glitches. However, in order to deliver the glitch free zero (or near zero) downtime services
expected of a fee-based, commercial-grade system, we will need to provide much higher levels of
customer service than our staff can currently support.
FINANCIAL FEASIBILITY
The pilot project provided a very good indicator of what is needed for a successful WiFi system. We
believe it is cost prohibitive to expand the system city-wide. Unlike some early adopters of WiFi
technology, the City of Federal Way owns very limited infrastructure needed for the system such as
fiber optic cable, conduits, power & light poles, and high buildings/structures. Therefore, we must
build all the elements or lease the necessary facilities from others. Another limitation in the
deployment and maintenance is the lack of certified electrical workers and equipment to perform
construction/installation work. These factors substantially increase the capital and maintenance costs.
During the pilot period, all users were routed through the City's network, which cannot be used for
commercial purposes. Therefore, in order to provide retail internet services, we must also purchase a
large bandwidth of access to internet. This would include again both capital and on-going costs.
As mentioned earlier, most fee paying customers want more than basic internet access, including e-
mail, web space, parental control, spam filters etc. which are typically offered by most internet service
providers. Unfortunately, the cost of establishing a system to provide these services would be very
high; contracting opportunities for the services are limited and expensive.
Given the current usage of the system and the response from the surveys, it is highly unlikely the
system can generate enough revenue to offset on-going operating costs, let alone recovering the initial
capital investment.
OPTIONS
Based on these findings, following are two options staff believes Council should consider:
1. Continue the free service in the downtown and Silver Lake areas using the remaining budget and
equipment to expand downtown.
Cost: One time costs = $25,000 (from existing funding)
M&O cost = $10 - $15k/yr which would require ongoing funding.
Pros: . Economic development advantages in downtown
. Minimum M&O costs
FHSRAC June 27. 2006
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Cons: . Limited to only city center core and one residential area
. Limited Public Safety application
2. Move the Silver Lake system and use the remaining equipment to expand the free WiFi service
beyond downtown to the SR99 Corridor (272nd to 336th), city parks, and city buildings/facilities.
Cost: One time costs = $35,000 (from existing funding)
M&O cost = $15 - $20k/yr which would require ongoing funding.
Pros: . Focus on commercial corridor and maximize economic development benefit
. Free WiFi in major city facilities
. Limited or no residential service (so no question about fairness)
. More public safety application potential (wireless camera, etc. on SR99)
Cons: . Coverage limited to business area
. Slightly higher M&O cost
FHSRAC June 27, 2006
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COUNCIL MEETING DATE: July 5, 2006 ITEM #:
_.............._.................w.........................._...__...............,........._..._..............._......_ ................... ............_.__.......m._._............._....... ......................._ ....................... ........................... ..........-............--..--..-.................-... .................................. ...........-..................--...-...........................................-...........
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: MAY 2006 MONTHLY FINANCIAL REPORT
POLICY QUESTION: Should the City approve the May 2006 Monthly Financial Report?
COMMITTEE: Finance, Human Services & Regional Affairs Committee MEETING DATE: June 27, 2006
CATEGORY:
~ Consent 0 Ordinance 0 Public Hearing
0 City Council Business 0 0 Other
~!~!!.~!>.!>~..~Y~_:TI1.~_~~!l.~..!i~!!lce M~E.~g~._.___._ .... DEPT: Management Services
.........-........-.....-...............-.........................-.-......-.......--...............--..-..-....-........----..--...-.-..-"
Attachments:
. May 2006 Monthly Financial Report
Options Considered:
1. Approve the May 2006 Monthly Financial Report as presented and forward to the July 5, 2006 Council
Consent Agenda.
2. Deny approval of the May 2006 Monthly Financial Report and provide direction to staff.
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STAFF RECOMMENDATION: NA
CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL: L
Council Conunittee Council
COMMITTEE RECOMMENDATION: Forward approval of the May 2006 Monthly Financial Report to
the July 5, 2006 City Council Consent Agenda.
Linda Kochmar, Chair Jeanne Burbidge, Member Jack Dovey Member
PROPOSED COUNCIL MOTION: "I move approval of the May 2006 Monthly Financial Report as presented. "
(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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~
CITY OF ~ May 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 $1.48M through May. Overall
revenue total $16.95M and is $1.17M or 7% 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
$14.41M and is $315K or 2% below budget. The favorable expenditure is primarily due to the timing difference in when
payments are made.
2005 2006 Variance
IGENERAl..i&STREET FUND Annual Annual YTD Annual YTD YTD Favorable (Unfavorable)
~llmmaryofSources.&lJses Budget Actual Actual Budget Budget Actual Dollars ($) Percent (%)
Beginning Fund Balance $ 2,945,041 $ 2,945,041 $ 2,945,041 $ 4,728,229 $ 4,728,229 $ 4,728,229 $ 0 0.0%
PPERATING REVENUES
Property Taxes 8,584,024 8,442,168 4,294,756 8,692,174 4,674,249 4,674,249 - 0.0%
~ales Tax 10,793.000 11,305,537 4,499,835 11,120,000 4,425,987 5,025,893 599,906 13.6'!.
~riminal Justice Sales Tax 1.781,000 1,817,981 717,007 1,877,000 740,284 768,739 48,455 6.5%
Intergovernmental 2,210,000 2,248,446 851,360 2,287,000 865,958 841,923 (24,035) -2.8%
easehold Tax 2,SOO 2,026 1,325 2,500 1,635 551 (1,084) -66.3%
Gambling Taxes 1,430,000 l,SOl,064 652,105 1,414,000 614,282 586,236 (28,046) 4.6%
~ourt Revenue 1,281,000 875,986 357,676 976,000 398,512 398,515 3 0.0%
Building PennitslFees-CD 2,942,400 3,141,368 1,405,502 1,653,400 739,760 1,104,400 364,640 49.3%
ROW Permits & Develop Svcs Fees-PW 365,000 346,605 131,9SO 370,000 140,856 175,444 34,588 24.6%
Licenses 208,517 233,304 73,856 210,517 66,642 73,492 6,850 10.3%
Franchise Fees 723,000 787,639 360,185 733,000 353,811 414,428 60,617 17.1%
assporl Agency Fees 85,086 63,418 28,825 86,000 39,089 32,075 (7,014) -17.9%
Recreation Fees 872.335 825,052 369,592 874,335 391,669 374,854 (16,814) 4.3%
Public Safety 931,090 1,100,604 393,646 934,190 334,126 300,171 (33,955) -10.2%
dmin/Cash Management Fees 552,000 552,000 230,000 560,000 233,333 233,334 0 0.0%
Interest Earnings 172,000 277,945 80,326 163,000 52,687 184,227 131,340 248.3%
Iilisc/Other 184,700 305,019 102,432 208,700 70,086 99,718 29,632 42.3%
I )oat.na Transfers In. -
Utility Tax-Celebration Park 236.798 238,798 238,798 245,962 245,962 245,962 0.0%
Utility Tax-Kenneth Jones Pool 314,000 314,000 74,096 319,000 319,000 319,000 - 0.0%
Utility Tax-Arts CommlRW&B Festival 93,7SO 93,7SO 93,7SO 93,7SO 93,7SO 93,7SO - 0.0%
Utility Tax-Police Positions 625.000 625,000 625,000 625,000 625,000 625,000 - 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 Lights 93,900 93,900 93,900 108,300 108,300 108,300 0.0%
Utility Tax-Camp Kilworth M&O SO,OOO 50,000 SO,OOO - 0.0%
QlaIQf)l!....tlng..RijvenjJijI; 34,675.100 35,383,608 t5.Be7.919 33.825,828 15,787;178 16.9SZ.263 1,165.085 1;4%
OPERATING EXPENDITURES
:;tty Council 388,802 344,136 199,357 409,317 237,115 219,723 17,392 7.3%
ily Manager 871,491 853,100 351,604 908,228 374,325 310,332 63,993 17.1%
Municipal Court-Operations 1,401,822 983,097 411,151 1,158,496 484,506 428,913 55,593 11.5%
Economic Development 302,115 228,584 107,163 292,893 137,312 90,882 46,430 33.8%
Managernent Services 1,883,518 1,862,587 805,727 1.897,272 820,731 904,167 (83.436) -10.2%
ivil/Criminal Legal Services 1.145,SOO 1,005,324 410,601 1,200,561 490,341 476,697 13,643 2.8%
::omm. Development Svcs 3,494.215 3.123,953 1,281,831 3,685,745 1.512,347 1,449,688 62,859 4.1%
ail Services 1,442,060 1,400,637 441,244 1,364,060 436,022 475.233 (39,211) -9.0%
Police Services 16,397.701 15.843,471 6,727,248 17,134,669 7,275,500 7,120,798 154,703 2.1%
Parks and Recreation 3,945,274 3,941,474 1,410,420 4,057,237 1,451,845 1,475,293 (23,448) -1.6%
ublic Works 3,910,022 3,644,449 1,330,591 4,109,988 l,SOO,559 1,454,170 46,389 3.1'!.
otlllOpe....tlng Expendlillres 35,182,521 33,230,813 13,476,937 36,238,464 14,720,603 14,405,896 314,708 2.1%
Operating Revenues over/(under)
Operating Expenditures (507,421) 2,152,796 2,410,982 (2,412,636) 1,066,575 2,546,368 1,479,793 138.7%
OTHER FINANCING SOURCES
One- Time Transfers In 81,000 73,551 25,000 55,4SO 16,012 16,012 - 0.0%
Grants & Other 498.256 584.873 306,788 247,772 43,003 43,003 0.0%
Talal Other Financing Sources 579,256 658,423 331,788 303,222 59,016 59,016 . 0.0%
OTHER FINANCING USES
City Manager Contingency - - 907.747 - n/a nla
One- Time Transfers to ell' 1.028,030 1,028,030 - 100.000 100,000 100,000 n/a nla
Other 40,000 n/a nla
Tolal Other FInancing Uses 1,068,030 1,028,030 - 1,007,747 100,000 100,000 nla nla
alai Ending Fund Balance 1,948,846 $ 4,728,229 $ 5,687,811 $ 1,611,068 $ $ 7,233,612 n/a nla
FHSRAC June 27, 2006
F-2
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DESIGNATED OPERATING FUNDS
Through May, designated operating funds revenue total $9.95M and is $1.16M above the year-to-date budget of $8.80M with
utility taxes and real estate excise taxes being the major contributors. Expenditures of $5.49M is $186K below the budget
estimate of$5.68M.
2005 2006 Variance
DESIGNATED OPERATING FUNDS Annual Annual YTD Annual YTD YTD Favorable (Unfavorable)
Summary of Sources & Uses Budget Actual Actual Budget Budget Actual Dollars ($) Percent (%)
Begin Balance-Designated Funds $ 4,610,136 $ 4,610,136 $ 4,610,136 $ 5,725,052 $ 5,725,052 $ 5,725,052 $ - 0.0%
!OPERATING REVENUES
Intergovernmental 596,245 565,157 225,496 617,953 225,688 225,688 - 0.0%
Utility Taxes 8,225,399 8,292,520 3,767,894 8,407,499 3,820,137 4,208,848 388,710 10.2%
HoteVMotel Lodging Tax 150,000 158,117 55,997 150,000 53,122 61,313 8,191 15.4%
Real Estate Excise Tax 4,250,000 4,695,984 2,095,930 3,150,000 1,405,920 2,212,374 806,453 57.4%
Dumas Bay Centre 523,775 452,672 170,088 529,598 198,993 159,059 (39,934) -20.1%
Knutzen Family Theatre 78,515 69,648 25,397 84,145 30,683 43,066 12,383 40.4%
SWM Fees 3,576,746 3,535,750 1,835,351 3,607,080 1,880,379 1,880,379 - 0.0%
Refuse CoIleclion Fees 167,701 165,950 82,942 170,217 85,075 84,453 (622) -0.7%
Interest Earnings 203,345 217,821 89,130 204,345 83,616 64,653 (18,963) -22.7%
Miscellaneous/Other 217,250 284,251 216,910 - 3 3 - 0.0%
nnninn T"'n<fA'" 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 4,202,629 771,745 3,885,861 - - - n/a
Utility Tax-Arterial Streets 890,625 890,625 890,625 890,625 890,625 890,625 . 0.0%
otatOperating Revenues 23,240,742 23,649.993 10,327.507 21,819,162 8,796,0111 9,952.300 1,151li219 13.1"
OPERATING EXPENDITURES
City Overlay Program 1,547,040 1,495,865 92,068 1,599,792 89,806 89,806 - 0.0%
Utility Tax-Admin/Cash Mgmt Fees 54,429 54,429 22,679 55,237 23,016 23,015 0 0.0%
Solid Waste 387,238 322,151 137,674 340,130 145,358 123,769 21,588 14.9%
HoteVMotel Lodging Tax 567,446 509,592 315,333 282,627 174,888 67,256 107,633 61.5%
Debt SeMce 6,833,128 6,801,614 251,694 3,678,856 252,020 252,020 - 0.0%
Surface Water Management 2,864,111 2,684,052 1,022,593 2,975,739 1,133,723 1,113,994 19,728 1.7%
Dumas Bay Centre 538,575 478,294 198,538 534,628 221,922 198,409 23,513 10.6%
Knutzen Family Theatre 201,090 168,945 77,296 201,720 92,292 78.439 13,853 15.0%
Utility Tax-Celebration Park 238,798 238,798 238,798 245,962 245,962 245,962 - 0.0%
Utility Tax-Kenneth Jones Pool 314,000 314,000 74,096 319,000 319,000 319,000 - 0.0%
Utility Tax-Arts CommlRW&B Festival 93,750 93,750 93.750 93,750 93,750 93,750 - 0.0%
Utility Tax-Police Positions 625,000 625.000 625,000 625,000 625,000 625,000 - 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 Lights 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 890,625 890,625 890,625 890,625 890,625 890,625 - 0.0%
Utility Tax-Camp Kilworth M&O - - - 50,000 50,000 50,000 - 0.0%
Utility Tax-Debt Service 4,242.273 4,202,629 771,745 3,885,861 - - - n/a
Utility Tax-Transportation CIP 890,625 890,625 890,625 890,625 890,625 890,625 - 0.0%
otal OperatlfillExPllfiditures 20,692.897 20,175,138 6,O1lll,414 17,101.692 5,6110.126 5,493,1110 1l16;316 3.3"
Operating Revenues over/(under)
Operating Expenditures 2,547,845 3.474,855 4.239,092 4,717,470 3,115.955 4,458.490 1,342,534 43.1"
OTHER FINANCING SOURCES
One-Time Transfers In 60,404 62,904 19,404 - - - - n/a
Grants/Mitigation/Other 175,036 257,131 101,816 123,280 217,010 217,010 - 0.0%
TotaiOther Financing Sources 235,440 320,035 121.220 123,280 217,010 217.010 . 0.0%
OTHER FINANCING USES
One-Time Transfers Out 2,830,419 2,679,974 1,979.974 4,255.095 3,719,686 3,719.686 - 0.0%
Other - - - - - - - n/a
Total Other Financing Uses 2;830,419 2,679,974 1,979,974 4,255,095 3.719,686 3,719,686 . O.O"A
ENDING FUND BALANCE
Arterial Street - 97,272 1,130,451 (1) - 1,172,581 n/a n/a
Utility Tax 868,708 1,027,502 910,437 1.228.801 - 1,487,146 n/a n/a
Solid Waste & Recycling 60,641 121.707 116,021 75.072 - 243,083 n/a n/a
Hotel/Motel Lodging Tax 132,627 134,516 - - 128,759 n/a n/a
Paths & Trails 14,991 15,272 9.353 24,831 - 19,423 n/a n/a
Debt Service Fund 2,815,373 3,195,705 3,626,104 3.902,710 2,360.099 n/a n/a
Surface Water Management 799,420 1,120,908 1,043.063 1,059,622 - 1,220,094 n/a n/a
Dumas Bay Centre Operations - (14,816) (28,560) (16.046) - (38,628) n/a n/a
Knutzen Family Theatre 3.869 28,875 49,091 35.716 - 88.307 n/a n/a
otal Ending Fund Balance $ 4,563,002 $ 5,725,052 $ 6.990,476 $ 6,310,105 $ - $ 6,680,865 n1a n1a
FHSRAC June 27,2006 2
F-3
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Real Estate Excise Tax Sales Tax bv SIC Code
Compared to 2005, collections are up $116K or 5.6%.
May's receipt of$537K is $56K above May 2005's activity COMPARISON OF SALES TAX COLLECTIONS BY SIC GROUP
and includes a total of 322 real estate transactions, of Year-to-dateithfllAf!iV
which 96 were tax exempt and of the remaining 226, 11 Component 2005 2006 Chang~ffT)m2005
were mobile home sales. The annex area has contributed GroUD Actual Actual $ "
year-to-date revenue of $29,414. The largest transactions Retail Trade $ 2,473,287 $ 2,628,165 $ 154,878 6.3%
in the current month consist of the sales of Foundation ervices $ 844,533 $ 948,939 $ 104,406 12.4%
onstructlContract $ 483,118 $ 761,151 $ 278,033 57.5%
House of Federal Way - Retirement home @ 32290 1st Vholesaling $ 217,730 $ 214,886 $ (2,844) -1.3%
Avenue S, Solano Heights Apartment @ 1808 S 311 th PI, ransplUtilny $ 4,767 $ 7,444 $ 2,677 56.2%
a couple of vacant residential lands, Information $ 244,620 $ 216,267 $ (28,353) -11.6%
Manufacturing $ 57,557 $ 69,569 $ 12,012 20.9%
Government $ 36,945 $ 19,230 $ (17,715) -47.9%
REAI....ES.!ArEiE)(t~!~7.TAX.REVENUES Fin/I nslReal Estate $ 126,769 $ 141,453 $ 14,684 11.6%
Other $ 10,509 $ 18,789 $ 8,280 78.8%
)filar to . d~tll:thl1l May Total $ 4,499,835 $ 5,025,893 $ 526,058 11.7%
2005 2006 Chiihgeif,.qifj.2005
....Monll'i Actual Actual ..$Var "Var Retail sales continue to remain the largest source of sales
Jan $ 170,866 $ 157,303 $ (13,563) -7.9%
Feb 275,617 $ 468,067 $ 192,449 69.8% tax revenue, accounting for 52% of all sales tax
Mar 384,048 $ 585,651 $ 201,602 52.5% collections. Year-to-date retail sales tax collection is up
Apr 784,135 $ 464,491 $ (319,644) -40.8% $155K or 6% above year-to-date 2005; majority of the
May 481,264 $ 536,863 $ 55,599 11.6% increase is in the following areas: miscellaneous store
Jun 425,029 $ - $ - - retailers, electronics and appliances, and motor vehicles
Jul 290,288 $ - $ - - and parts dealer.
Aug 416,213 $ - $ - -
Sep 515,578 $ - $ - -
Oct 237,983 $ - $ - - Services industry accounts for 19% of the total sales tax
Nov 357,228 $ - $ - - collections. On year-to-date basis, services sales tax is up
Dec 357,736 $ - $ - - $104K or 12% compared to 2005. This includes $100K in
YTD Total $ 2,095,930 $ 2,212,374 $ 116,443 5.6"1. one-time increase from a major software company.
Sales Tax Construction and contracting activity, which accounts for
Year-to-date revenue of $5.03M is above May 2005 year- 15% of sales tax collections, is up $278K or 58% from
to-date revenue of$4.5M by $526K or 11.7%. The current 2005's activity, Sales tax received year-to-date on major
month's Sales Tax of $1M is above the 2005 monthly City projects total $168K or 22% of total construction and
activity by $62K or 6.6%. As shown in the detail by SIC contracting activity.
code table below, new construction alone increased by
$278K, which is the primary contributing factor of the Sales Tax bv Activitv
positive bottom line. In addition, the major projects that
contributed to this increase are mainly public projects. For SALESTAXCOMPAfl!~H"';~Y.AREA
these reasons, the sales tax improvement is temporary in Y~ar,fo"ltalllth""'May
nature, different than the broad based economic 2005 2006 Cha from 2005
improvement which would be more sustainable. Group Actual Actal $ %
Total Sales Tax $4,499,835 $5,025,893 $526,058 11.7%
LOCAI..RE.TA/LS~+E.~rAX8EVENUES S 348th Retail Block $574,273 $605,976 $31,703 5.5%
Yllar,tQ-date.thl1l..May % chg from prev yr -57.8% 5.5% na na
2005 ..A~:' Chiihaefrom2OQS Percentage of total 12.8% 12.1% -0.7% -5.5%
Month Actual $ % The Commons 468,116 422,054 146,062\ -9.8%
Jan $ 862,219 $ 938,053 $ 75,834 8.8% % chg from prev yr -33.5% -9.8% na na
Feb 1,155,867 1,365,682 $ 209,815 18.2% Percentage of total 10.4% 8.4% -2.0% -19.3%
Mar 794,197 862,566 $ 68,369 8.6% Major Auto Sales 156,697 171,603 14,906 9.5%
Apr 752,487 862,628 $ 110,141 14.6% % chg from prev yr -58.5% 9.5% na na
May 935,065 996,964 $ 61,899 6.6% Percentage of total 3.5% 3.4% -0.1% -2.0%
S 312th to S 316th 249,857 250,207 350 0.1%
Jun 857,410 - $ - - % chg from prev yr -52.8% 0.1%
813,885 - $ na na
Jul - - Percentage of total 5.6% 5.0% -0.6% -10.3%
Aug 1,057,583 - $ - - Pavilion Center 219,158 226,770 7,612 3.5%
Sep 1,004,058 - $ - - % chg from prev yr -48.7% 3.5% na na
Oct 994,469 - $ - - Percentage of total 4.9% 4.5% -0.4% -7.4%
Nov 1,051,158 - $ - -
Dec 1,027,139 - $ - - The City's largest retail center, South 348th, which
YTD Total $ 4,499,835 $ 5,025,893 $ 526,058 11.7%
generates 12% of the City's sales tax, is showing an
increase of $32K or 6% compared to the year 2005. The
Commons IS showing a decrease of $46K or 10%
compared to _year 2005 activity. Major Auto Sale's
FHSRAC June 27, 2006 3
F-4
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collection total $l72K and is $15K or 10% above 2005. I UTIUTYTAXES I
S 312th to S316th shows almost no growth from prior year Year-tOodatethruMay
collections. Pavilion Center tax collections are up by $8K 2005 2006 CilafJgfjftoir,20Q5
or 4% comparing to prior year. Actual Actual $Vai %Vai
Electric $ 1,222,738 $ 1,373,362 $ 150,624 12.3%
Gambling Tax Gas $ 784,269 985,949 $ 201,679 25.7%
Solid Waste $ 217,047 238,917 $ 21,870 10.1%
Gambling tax collection through May is $586K. In Cable $ 360,891 390,019 $ 29,129 8.1%
comparison to 2005 year-to-date collection, 2006's tax Phone $ 410,173 392,183 $ (17,990) -4.4%
collection is lower by $66K or 10.1 %. January and Cellular $ 671,692 725,780 $ 54,088 8.1%
~ebruary's favorable variance is the result of a change Pager $ 1,151 131 $ (1,020) -88.6%
SWM $ 99,933 102,506 $ 2,573 2.6%
m accounting of accruals and therefore includes ax Rebate $ (7,165) (4,183) $ 2,982 -41.6%
approximately $50K of 2005 gambling taxes. March Total $ 3,767.894 $ 4.208,848 $ 440,954 11.7%
through May gambling tax is declining mainly due to two Tax rebates are excluded from total
major establishments' decreased activity. Smoking ban
appears to be a factor for the decrease. Our biggest Hotel/Motel Lodging Tax
contributor experienced approximately 6% decrease when Hotel/Motel lodging tax collections through May total
comparing to 2005 year-to-date, while the other smaller $61K. Compared to 2005, the lodging tax is $5K or 9.5%
establishments faced an approximate 30% decrease in above the same period.
activities. The annex area has contributed year-to-date
revenue of$6,233.
HOTEUMOTEL"LODGING..TAX,REVENUES
9AM~l...l"!8T~ff'fllENtt'f Year.tOodate thru Mav.
Year:-.1{O"Daff1,1{hroughM;lV 2005 2006 Chllll'Jl1efmm ,2005
2905 2006 Cllanl:iiifroi'n 2005 Month Actual Actual SVar " Va"
Montll ActUal l/iAall~; $ Va.. ,I'%Var Jan $ 9,669 $ 11,357 $ 1,687 17.5%
Jan $137,311 $ 145,990 $ 8,680 6.3% 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 136.467 119,588 (16,879) -12.4% May $ 14,067 $ 15,039 972 6.9%
Mav 132,353 93,321 (39,033) -29.5% Jun $ 11,566 $ - - -
Jun 122,257 - - - Jul $ 12,247 $ -
- -
Jul 130,114 - - - Aug $ 14,632 $
Aug 133,906 - - -
- - - Sep $ 17,633 $
Sep 115,878 - - -
- - -
Oct 150,900 - Oct $ 18,047 $ - - -
- -
Nov 119,925 - - - Nov $ 13,765 $ - - -
Dee 75,979 - - - Dee $ 14,231 $ - - -
YTD Total $652,105 586,236 (65,869) -10.10/0 T I U lotal $ 55,997 $ 61,313 $ 5,316 9.5%
Table reflects gambling activities on a cash basis.
State Shared Revenue
Utility Tax Year-to-date distribution of$1.9M is above 2005's activity
Utility taxes received through May total $4.21M and is by $133K or 7%. Liquor profits tax is down while local
above 2005 year to date collections by $441K or 12%. criminal justice sales tax and fuel tax are up. Through
May, new gas tax effective in August 2005 has contributed
u1f{L.IT'I'1f~E$ $71K ofthe increase.
Y~r'!:tQ+date"thfY/(!IIaY
2005 2006 Chanaefr<>m,,2005 .sTATf;$~~~EDiRt:VENUE.s
MQnth Actual Actual SYar " Var
Jan $ 726,583 $ 876,526 $ 149,943 20.6% fe;jr to date t!Jru May
Feb 794,152 838,758 $ 44,606 5.6% 2005 2006 Change froih200S
Mar 731,064 801,915 $ 70,851 9.7% Revenue Actual Actual $ "
Apr 770,397 923,989 $ 153,593 19.9% Liquor Profits Tax $ 155,926 $ 139,119 $ (16,807) -10.8%
May 745,699 767,660 $ 21,961 2.9% Liquor Excise Tax
Jun 592,788 - $ - - 174,867 178,380 3,513 2.0%
Jul 609,227 - $ - - Crim Just Low-Pop/DCD 38,667 39,717 1,051 2.7%
Aug 585,489 - $ - - Local Crim Just Sales Tax 717,007 788,740 71,733 10.0%
Sep 590,070 - $ - - Fuel Tax. 700,285 774,120 73,835 10.5%
Oct 636,521 - $ - - DUI - Cities
7,113 7,140 27 0.4%
Nov 635,678 - $ - -
Dee 882,017 $ Total $ 1,793,864 $ 1,927,216 $ 133,352 7.4%
- - -
Tax Rebate (7,165) (4,183) $ 2,982 -41.6% . Fuel tax is included in both generaVstreet and designated opemting funds.
YTD Total $ 3,767,894 $ 4,208,848 $ 440,954 11.70;'
Tax rebates are excluded from total
Compared to year-to-date 2005, Electricity is up $151K or
12%, Gas is up $202K or 26%, Cable is up $29K or 8%,
Phone is down $18K or 4%, and Cellular phone is up
$54K or 8%.
FHSRAC June 27, 2006 4
F-S
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Permit Activity
Year-to-date building permit activity is below 2005's year- Through May, City overtime is 10% or $20K above last
to-date activity by $301K or 21%. The primary reason for year. There is a 36% decrease in overtime for contracted
the negative balance is due to several large permits: one services and traffic school. When the decrease from the
extra-ordinarily large permit in April of 2005 from the billable overtime is included, the total overtime decrease is
Christian Faith Center, one from Walmart, and a few from minimal.
Danville Station and ColIela Estates in May 2005.
Significant permits include: Lakota Crest, Windswept, and Type 2005 2006 $ %
Training $ 4,876 $ 13,671 $ 8,794 180%
Quadrant. Right-of-way permits and development services Court 16,371 10,831 $ (5,540) -34%
fees are down in May by $3K and year-to-date activity is Field Operation 158,472 180,478 $ 22,006 14%
Up by $43K or 33% when compared to 2005. SOAP - $ - nla
Other 25,426 20,513 $ (4,913) -19%
City Portion 205,144 225,493 20,348 10%
BUILDING PERMITS & FEES Contract or Grant 17,115 14,109 $ (3,007) -18%
Yllar-to-Ol\teThroughMay Traffic School 22,902 11,639 $ (11,263) -49%
2005 2006 Change frorn2005 Homeland Security $ nla
- - -
Actual Actual $ % Billable 40,017 25,748 (14,270) -36%
Jan 164,108 111,925 (52,184) -31.8% Grand Total $ 245,162 $ 251,241 $ 6,079 2%
Feb 160,765 239,689 78,924 49.1%
Mar 206,886 217,839 10,953 5.3%
Apr 421,260 306,214 (115,046) -27.3% PS Overt/me Bv Month
May 452,483 228,733 (223,749) -49.4% Change
Jun 330,658 - - - 2005 2006 $ %
Jul 215,967 - - - Jan $ 50,235 $ 51,717 $ 1 ,482 3%
Aug 314,271 - - - Feb 54,688 $ 46,446 $ (8,242) -15%
Sep 255,906 - - - Mar 48,571 $ 51,638 $ 3,067 6%
Oct 285,630 - - - Apr 53,135 $ 56,413 $ 3,278 60/0
Nov 175,341 - - - May 38,533 $ 45,026 $ 6,493 17%
Dee 158,092 - - - Jun 55,867 $ - $ - -
YTO Total 1,405,502 1,104,400 (301,1021 -21.4% Jul 44,155 $ - $ - -
Annual Total 3,141,368 na na Aug 45,364 $ - $ - -
Sep 61,691 $ - $ - -
Oct 41,252 $ - $ - -
ROW..PERMITS & OEVELOPMENTSERVICES FEES Nov 67,305 $ - $ - -
Year-to-Oate ThroUgh May Dee 42,002 $ - $ - -
2005 2006 YTD $ 245,162 $ 251,241 $ 6,079 20/.
Actual Actual $ i'Y. Annual Total $ 602,799
Jan 20,643 36,913 16,271 78.8%
Feb 27,622 45,720 18,099 65.5% Jail Services
Mar 23,748 34,545 10,797 45.5% Jail Services through May is $475K, which is $39K or 9%
Apr 23,253 25,072 1,818 7.8% above the year-to-date budget of $436K. The variance is
May 36,684 33,195 (3,490) -9.5%
Jun 28,971 - - - mainly due to the timing of payments and some rate
Jul 30,332 - - - mcreases.
Aug 29,350 - - -
Sep 39,638 - - - Court Revenue
Oct 19,992 - - -
Nov 27,648 - - - Excluding probation through May revenue is up $52K or
Dee 38,724 - - - 17% compared to year-to-date 2005.
YTO Total 131,950 175,444 43,495 33.0%
Annual Total 346,605 na na COURT REVENUE
Through May
Community Development's positive expenditure variance 2005 2006 Change frorn200S
of $63K is due to under spending one-time programs. Month Actual Actual SVat %Vat
January 62,618 $63,844 $1,226 2.0%
Public Work's positive expenditures variance of $46K is February 63,236 $77 ,646 $14,410 22.8%
March 61,529 $68,498 $6,969 11.3%
due to under spending of Joint Emergency Management April 60,872 $75,494 $14,622 24.0%
Funds and salary savings from 1st quarter's Emergency May 63,309 $78,082 $14,773 23.3%
Management Coordinator position vacancy. June 55,631 $0 $0 0.0%
July 50,952 $0 $0 0.0%
August 55,260 $0 $0 0.0%
Public Safety September 56,387 $0 $0 0.0%
Expenditures through May total $7.lM, which is $155K or October 77,052 $0 $0 0.0%
2% under the year-to-date budget of $7.3M. This positive November 68,906 $0 $0 0.0%
variance is mainly due to under spending of seizure funds. December 68,535 $0 $0 0.0%
Subtotal $311,564 $363,565 $52,001 16.7%
Probation Services 46,113 34,950 (11,162) -24.2%
Revenues through May total $300K and is $34K or 10% Year-to-date Total 357,676 $398,515 $40,839 11.4%
below year-to-date estimate. The unfavorable variance is
due to timing of school resource officer contract payments
received in 2005, partially offset by litigation settlement
funds of $84K received in 2006 for bulletproof vests.
FHSRAC June 27, 2006 5
F-6
--------
COURT REVENUE Overall parks operations expenditures through May total
By Category Through May $1.48M, which is $23K or 1.6% over the year-to-date
2005 2006 Change from 2005 budget of $1.45M. The negative variance in salary and
Actual Actual $Var "Var benefits is primarily due to timing ofP3 payments that will
Civil Penalties $5,245 $6,576 1,331 25.4% reverse at year-end. Dumas Bay Centre revenues and
Traffic & Non-Parking 205,034 $214,309 9,275 4.5% expenditures are both below budget. Knutzen Family
Parking Infractions 11.881 $22,800 10,919 91.9%
oUt & Other Misd 42.338 $43,938 1.600 3.8% Theatre's revenue exceeds budget while expenditures are
Criminal Traffic Misd 18.919 $14,568 (4.351) -23.0% below.
Criminal Costs' 17.181 $16,911 (270) -1.6%
Interest I Other I Misc 7,026 $8,116 1.090 15.5% Recreation and Cultural Services
Criminal Conv Fees 61 $12,469 12,408 nla Direct program expenditures total $473K or 36.9% of the
Shared Court Costs 1,051 $5.949 4,898 nla total annual budget of $1.28M not including indirect costs.
Services & Charges 2,828 $17.929 15,102 nla Including indirect administration costs, recreation
Subtotal 311,564 363,565 52,001 16.7% expenditures total $625K and are 38.4% of the total annual
Probation Services 46,113 34,950 111,162\1 -24.2%
Total $ 357,676 $ 398,515 40,839 11.4% budget of $1.63M. Recreation fees total $374K and are
, Criminal costs include screener fees. 45.1 % of the total annual budget of $829K. Recreation
fees have recovered 79.1 % of direct program costs and is
Traffic and non-parking fines total $214K and is $9K or 14.3% above the annual budgeted recovery ratio of 64.8%.
5% above year-to-date 2005. Parking infractions total Considering indirect administration costs, the recovery
$23K and is $IIK or 92% above year-to-date 2005. DUI ratio is reduced to 59.8% or 8.8% above the annual
and other misdemeanors total $44K and is $2K or 4% budgeted recovery ratio of 51 %.
above year-to-date 2005. Criminal costs total $17K and is
$300 or 2% below year-to-date 2005. Criminal Conviction Dumas Bav Centre
Fees total $12K and is above year-to-date 2005 by $12K. Dumas Bay Centre operating revenue of$159K is down by
The City didn't start receiving the fees until August of $40K or 20% compared to the year-to-date budget of
2005. Services and Charges total is $18K and is above $199K. Operating expenditures through May total $198K,
year-to-date 2005 by $15K. This category includes Legal which is $24K or 11 % below the year-to-date budget of
Services which the City didn't start receiving until June of $222K. Dumas Bay Centre has recovered 80.2% of its
2005. Shared Court Costs total is $6K and is above year- operating expenses.
to-date 2005 by $5K because this category includes Court Knutzen F amilv Theatre
Enhancement revenue which the City didn't start receiving
until October of2005. Operating revenue of $43K is up $12K or 40% compared
to the year-to-date budget of $31K. Operating
Municipal Court year-to-date expenditures of $429K is expenditures through May total $78K, which is $14K or
$56K or 11 % below estimates. Salary and benefits are 15% below the year-to-date budget of $92K. Knutzen
down due to position vacancies earlier this year. Theatre has recovered 54.9% of its operating expenses.
Parks & Recreation
.
RECREATION & CULTURAL SERVICE PROGRAMS AND DUMAS BAY CENTRE PERFORMANCE
Yea, to Oate'ThrQugh Mav 2006
T Revenues I ExDIHlditu,.s I RecovervRatio "
PfOfIram Budget I. Actual I " Buddj)! I Actual I " I BUdget I Actual
RECREATION & CULTURAL SERVICE PROGRAMS
Steel Lake Aquatics 2,000 - 0.0% 20,398 109 0.5% 9.8% nI.
Arts & Special Events 93,600 57,246 61.2% 185,299 74,069 40.0% 50.5% 77.30/.
Youth Athletics 60,558 10.830 17.9% 90,131 24,528 27.2% 67.2% 44.20/.
Adult Athletics 204,970 119,880 58.5% 129,766 43,760 33.7% 158.0% 274.0%
Community Recreation 170,300 44,178 25.9% 178,019 53.506 30.1% 95.7% 82.60/.
Community Center 28,500 14,153 49.7% 76,059 47.660 62.7% 37.5% 29.70/.
Recreation Inc 18,512 22,196 119.9% 60,776 24.421 40.2% 30.5% 9O.9OA
Youth Commission 500 936 187.3% 1,800 775 43.1% 27.8% 120.70/.
Red, White & Blue' 25.700 7.350 28.6% 41,200 346 0.8% 62.4% nla
Senior Services 16,195 19,133 118.1% 70,105 33,099 47.2% 23.1% 57.80/.
Kenneth Jones Pool 208.000 77,845 37.4% 425,795 170,285 40.0% 48.8% 45.70/.
Subtotal $ 828,335 $ 373,747 45.1% $ 1,279,348 $ 472,559 36.9'\1. 64.8'\1. 79.10/.
Administration - 0.0% 347,163 152,661 44.0% nla nla
I TOTAL RECREATION 1$ 828,835 I $ 373.747 I 45.1'\1.1 $ 1,626,511 I $ 625,219 I 38.4%1 51.0%1 59.8'\1-1
DUMAS BAY CENTRE
Dumas Bay Centre I 529.598 I 159.059 T 30.0%1 534,628 I 198.409 I 37.1'1.1 99.1%1 80.2%
Knutzen Family Theatre 1 84.1451 43.066 1 51.2%1 201,7201 78,439 I 38.9%1 41.7%1 54.9%
I TOTAL DUMAS BAY CENTRE I $ 613.743 I $ 202,126 I 32.9'\1.1 $ 736,349 I $ 276,848 I 37.6'\1.1 83.3'\1., 73.0'\1-1
Arts Commission' nla 70,200 14.661 20.9% nla n/a
GRAND TOTAL $ 1.442,578 39.9'\1. $ 2,433,060 $ 916,728 37.7'\1. 59.3'\1. 62.80/.
. Excludes inlerfund transfers and Celebration Park
FHSRAC June 27, 2006 6
F-7
----.--.----..-
Other Departmental Variances programs. To date, only $17K or 9% of the $174K one-
time budget has been spent.
City Council year-to-date expenditures total $220K and is
$17K below estimates due to timing of City Manager Management Services year-to-date expenditures of $904K
recruitment costs. is $83K above budget due to timing of election cost which
will reverse at year-end. The department expects to be
City Manager year-to-date expenditures of $31 OK is below within appropriated budget by year-end.
estimates by $64K due to salary savings from the vacant
City Manager position. Law year-to-date expenditures total $477K and is $14K
below estimates due to timing of one-time programs. To
Economic Development year-to-date expenditures of $91K date, only $18K or 16% of the $118K one-time budget has
is $46K below estimates due to timing of one-time been spent.
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 dete~ne whether market yields are being achieved is the range between the average 6-
month US Treasury Bill (5.00%) and the State Investment Pool (4.85%). The portfolio average current in-house investment
yield is 4.74% which is slightly lower than the benchmark due to lower rates on in-house investment purchased in 2003.
Mil\liOO6
Silttli/mjjjjt Iiltilrest ~6~I'f'i ,"1ICN~
1."de Diltil Pavments UCost
Aoencv - FNMA 3136F3V3 07/21/03 1/21-7/21 $ 800,000 $ 797 500 07/21/06 2.38%
A en - FHLB 31339VZX3 08/14/03 2/14-8/14 $ 1000000 $ 1 000 000 08114/06 2.52%
A en - FFCB 31331QN78 06/09/03 03/09/06 $ 1 000,000 $ 999 500 03109/07 2.46%
A en - FNMA 3136F3VQ6 OS/27/03 OS/25/06 $ 1 000 000 $ 1 000 750 OS/25/07 2.48%
A en - FNMA 3136F3UTl 05130/03 06/03106 $ 1000000 $ 997,529 12/03/07 2.59%
A enc - FHLMC 3128X1VW4 08/22/03 01/30/06 $ 900 000 $ 887 400 01130/07 3.18%
A enc - FHLB 3133XBT54 OS/25/05 11/25/05 - 5/25/06 $ 1,000,000 $ 1,000 000 OS/25/07 4.07%
A enc - FHLB 3133XBT54 OS/25/05 11/25/05 - 5/25/06 $1000000 $ 1 000 000 OS/25/07 4.07%
Aoen - FHLMC 3128X4RFO 10/24/05 04/05/06 - 10/06106 $ 1,000000 $ 999,990 10/24/07 4.63%
Aoenc - FHLMC 3128X4RFO 10/24/05 04/05/06 - 10/06/06 $ 1000000 $ 1 000 000 10/24/07 4.63%
1 yearT-Bi11912827Z62 10/15/05 04/15/05 - 10/15/06 $ 1,022,900 $ 1,022,900 10/15/06 4.15%
Subtotal In-Hause Investments $10722900 $ 10705569
Averaoe Maturity 287
Averaoe Yield to Maturitv 3.58%
Averaoe Yield - 6 mo. T -Bill 5.00%
Municioallnvestor Account $ 11,316,807 1 day 5,05%
State Invesbnent Pool $ 47 124268 1 day 4.85%
Averaoe Portfolio Maturity & Yield 45 4.74%
TotliFlliWestmilrits $,6!fi~46i~
The total invested balance at the end of May is $69.15M, which includes $47.12M in the state investment pool, $1O.71M in-
house investment purchases, and $11.32M in the Municipal Investor Accounts. The state pool is composed of repurchase
agreements (61.27%), treasury securities (6.22%), agency coupons and callables (10.01%), IE bank deposit (8.91%), agency
floating rate notes (5.90%), discount notes (4.16%) and certificates of deposit (3.53%). The City's total investment portfolio is
made up of 69% State Pool, 15% In-House Investments, and 16% Municipal Investors Accounts.
Interest Rates Comparison
For the Month of May 2006
6.0% 11I6 Mlnlh T-Bil
.5.0%
4.0% III State hvestrrenl FIloI
3.0% o h-house hvestrrenl
2.0%
El Mmicipal hveslor
1.0% Account
0.0% III Portfolio Average
2003 2004 2005 2006
FHSRAC June 27, 2006 7
F-8
----...--
COUNCIL MEETING DATE: July 5,2006 ITEM #:
....._......_...mm.........~____._.m_..m..m .........._.....H._...._....... ........._......... mm.............H._ ..........._..~........._............. ... . .................... .mm................__ ....................................~...._....._....... ......_.....____............._...._m..........__.................._.__.._.......... ......._...............~.........
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: VOUCHERS
POLICY QUESTION: Should the City approve the vouchers in the total amount of$5,123, 052.96
COMMITTEE: Finance, Human Services & Regional Affairs Committee MEETING DATE: June 27, 2006
CATEGORY:
~ Consent 0 Ordinance 0 Public Hearing
0 City Council Business 0 Resolution 0 Other
.~!~!!_!U:~Q~!..:I.!Y: !~2..~aus.?.yin~!l:.~~..-r.~:!~!!~:1~;~~....._._ . .__..___......__.._.__. ..____.._.._.._..._..___~!:.~!.: ~~~~?~~ent S~ce~______
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.
Management Servic~s Director
Attachments: Voucher List
Options Considered: NA
~_........_-_..............._--._..........._-_.._._..__.._.--_._...._-_..._-_..._..........-..._._......_-._............_........-........_~.............--.-- ...._--_._...._._.__._._------~......
STAFF RECOMMENDATION: NA
CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL: ~
Council Council
COMMITTEE RECOMMENDATION:
"I move approval of the vouchers and forward to the July 5, 2006 Council Meetingfor 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 I ST reading
0 T ABLED/DEFERREDINO ACTION Enactment reading
0 MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED.. 02/06/2006 RESOLUTION #
! --_._~
----
City of Federal Way
Claims Paid Via Wire Transfer
Date Vendor Description Amount Paid
6/1/2006 Bank of New York 6/1 Debt Service Payment: 1997 and 2003 GO Bond $ 2,140,046.26
Total $ 2,140,046.26
"" ..
0-*
0-*
0-*
2, 1lIO,046'26+
849,678-86+
2,133,327-84+
5,123,052-96*+
0-*
2',133,327-84+
849,678-86+
2,ll;O,046'26+
5,123,052-96*+
0-*
FHSRAC June 27, 2006
G-2
Claims Paid by EFT.xls June 06 5/12/2006 9:38 AM
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G-3
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