FEDRAC MINS 09-04-2007
City of Federal Way
City Council
Finance/ Economic Development/ Regional Affairs Committee
Tuesday, September 4, 2007
5:00 p.m.
City Hall
Hylebos Conference Room
MINUTES
Committee Members in Attendance: Chair Faison and Member Burbidge; Member McColgan excused.
Council Members in Attendance: Kochmar (5:10 arrival), Dovey (5:45 arrival), and Mayor Park.
Staff Members in Attendance: Assistant City Manager Iwen Wang, Assistant City Manager Cary Roe, City
Attorney Pat Richardson, Senior Financial Analyst Mark Turley, Parks, Recreation & Cultural Services Director
Donna Hanson, Community Center Supervisor Doug Nelson, Recreation & Cultural Services Supervisor Mary
Faber, Communication & Governmental Affairs Manager Linda Farmer and Deputy City Clerk Krystal Roe.
1. CALL TO ORDER - Chair Faison called the meeting to order at 5:03 p.m.
2. PUBLIC COMMENT - None.
3. COMMITTEE BUSINESS
A. Approval of Minutes: August 7,2007 FEDRAC Meeting - The Committee mjsjc to approve the
minutes as presented.
B. Uniform Utility Tax Calculation Ordinance - Ms. Richardson presented the staff report and
noted that the ordinance was brought forward based on prior direction by the Committee. Ms.
Richardson stated that the changes included in the ordinance were housekeeping in nature.
Specifically the language now deducts the City's utility tax from their income computation so that
utility providers do not "tax the tax" when collecting utility taxes from their customers. Furthermore,
the ordinance will remedy tax collection discrepancies.
The Committee inquired about the status of delinquent collections from some providers. Staff replied
that all utility companies now understand how the tax is to be collected and will pay any back taxes
owed. However, staff does not plan to assess penalties on the amounts owing since utility providers
could argue the collection formula was not clear.
The Committee mjsjc to approve the draft ordinance amending the City Code to decut utility taxes
from the taxable revenue definition and forward to the September 1~ 2007 City Council meeting for
first reading (Option 1).
C. July 2007 Monthly Financial Report - Mark Turley presented the monthly financial report. The
Committee discussed additional information it would like to see on the report regarding the
Community Center. However, the Committee also agreed that issues specifically relating to the
performance of the Community Center should be referred to the Parks, Recreation, Human Services
& Public Safety Committee. Mr. Roe commented that additional reporting will be forthcoming over
the next four months.
The Committee next discussed the amount of overtime used by the Police Department and asked
that the issue be specifically addressed during the next budget session. Mayor Park stated it does
not appear that the overtime is being managed within the budget.
Chair Faison complimented the utility tax reporting format.
Next the Committee discussed the staffing changes in Community Development and Mr. Roe's plans
to manage them. Mr. Roe replied that he has several options under consideration including utilizing
one-time funding for additional employees, contracting with consultants (including a former
employee), continued use of long-term consultant Janet Schull and adding an additional staff
member. Mr. Roe also remarked that frank conversations about formulas for personnel backfilling
and hiring will be coming to Council in the near future.
Mr. Turley noted a correction to the Sales Tax by Area (page 18); the figure was changed to
$616,200 instead of $543,447.
The Committee mjsjc to approve the Monthly Financial Report as presented.
D. Vouchers - Mr. Turley presented the staff report. The Committee inquired about acquisition
method used for the new vehicle purchase and why the vehicle hadn't been purchased from a
local dealer. Staff replied that vehicles are typically purchased through the state so long as the
state offers the best price. However, all purchases over $20,000 go out to bid.
The Committee mjsjc to approve the vouchers as presented.
F. Federal Way Community Center Performance Benchmarking and Strategic Planning - Ms.
Faber updated the Committee on the status of the Community Center's performance. The
Committee discussed how some of the items removed from the budget/project may be negatively
impacting the Center's performance, such as the quality and amenities of the sound system. Ms.
Faber noted that $70,000 has now been allocated to add amenities back into the Center; the audio
system's shortcomings will be remedied.
The Committee discussed the high membership and rental costs and that the City should consider
subsidizing fees so that the Center is enjoyed and utilized by more citizens. Specifically, members of
the Committee addressed reassessing whether the focus of the Center should be a community
resource versus a bUSiness/profit venture.
Ms. Faber further mentioned that up to this point staff has been getting familiar with the building,
the business plan, customer service issues, and necessary (impromptu) adjustments.
To attract more customers, Ms. Hanson announced plans to install a reader board at the Celebration
Park Entrance (South 333rd) and stated staff is sending Community Center pamphlets to all
tournament directors reserving fields at Celebration Park.
The Committee expressed support for additional signage but noted it will take more than one sign.
Mr. Roe replied that a wall sign is under review by Community Development but will likely need to go
before the Hearing Examiner for approval.
4. OTHER - Ms. Wang announced the resignation of Tho Kraus and stated Mark Turley will be representing
the Finance Department at future Committee meetings until a permanent replacement is named.
5. FUTURE AGENDA ITEMS - None.
6. ADJOURNMENT - Chair Faison adjourned the meeting at 5:47 PM.
Attest:
Co~
ric Faison
Committee Chair
d
Jeanne Burbidge
Committee Member