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FEDRAC MINS 10-02-2007 City of Federal Way City Council Financel Economic Developmentl Regional Affairs Committee Tuesday, October 2, 2007 5:00 p.m. City Hall Hylebos Conference Room MINUTES Committee Members in Attendance: Chair Faison, Member Burbidge and Member McColgan. Council Members in Attendance: Kochmar and Dovey (5:12 arrival). Staff Members in Attendance: Assistant City Manager Iwen Wang, Assistant City Manager Cary Roe, City Attorney Pat Richardson, Senior Financial Analyst Mark Turley, Economic Development Director Patrick Doherty; Deputy Police Chief Andy Hwang; Deputy Public Works Director Ken Miller; Solid Waste & Recycling Coordinator Rob Van Orsow; Communication & Governmental Affairs Manager Linda Farmer; and Deputy City Clerk Krystal Roe. 1. CALL TO ORDER - Chair Faison called the meeting to order at 5:04 p.m. 2. PUBLIC COMMENT - None. 3. COMMITTEE BUSINESS A. Approval of Minutes: September 4, 2007 FEDRAC Meeting - The Committee m/s/c to approve the minutes as presented. B. Solid Waste & Recycling 2008-2009 Grant Approvals and Resolution - Mr. Van Orsow presented the staff report and highlighted key aspects of the resolution. The Committee inquired if there would ever be a time the City might provide waste collection services directly. Mr. Van Orsow replied that because Federal Way does not provide other utilities (such as water, cable, etc.) it would not be likely that it could collect solid waste at a savings to customers and a profit to the City. The amount of money and time to create a billing system alone, in addition to capital expenditures for equipment and vehicles, would be cost prohibitive; the City will likely continue to contract for this service. Committee members expressed their pleasure with the success of the September 29, 2007 Special Recycling Event and remarked they were impressed by the number of customers served, by the community's participation and by staff's efforts. The Committee m/s/c to approve the draft resolution and enter into grant-related agreements with related agencies and forward to the October 16, 2007 City Council meeting (Option 1). C. Regional Solid Waste/Recycling Planning Update - Mr. Van Orsow provided the Committee with an update on new developments since his last presentation in April 2007. Mr. Van Orsow reviewed the three recommendations made by the Metropolitan Solid Waste Management Advisory Committee (MSWMAC) to the King County Council in regards to waste-to-energy conversion. The Committee m/s/c to approve providing a City representative's signature on MSWMAC's letter to the King County Council to highlight concerns about waste-to-energy conversion technology and forward to the October 16, 2007 City Council meeting (Option 1). D. Clearwire Franchise - Ms. Richardson presented the draft ordinance to the Committee and noted it was a standard franchise agreement. The Committee inquired about the diameter of the proposed replacement pole and expressed concern that it not be larger than the existing pole. Mr. Roe committed to providing the dimensions before the next Council meeting. The Committee m/s/c to approve the draft ordinance and forward to the full Council for first reading at the October 16, 2007 meeting (Option 1). E. August 2007 Monthly Financial Report - Mark Turley presented the monthly financial report. The Committee remarked on tt-Je big increase in August lodging taxes and was interested in finding out the cause of the increase and to better understand what went right so the results can be duplicated. The Committee m/s/c to approve the Monthly Financial Report as presented and forward to the October 16, 2007 City Council meeting (Option 1). F. Vouchers - Mr. Turley presented the staff report. The Committee m/s/c to approve the vouchers as presented and forward to the October 16, 2007 City Council meeting. G. Early Retirement of Debt - Ms. Wang asked the Committee to consider using excess REET revenue to retire the $1.89 million balance of 1997 bonds which would free up $430,000 utility tax funds annually. She outlined key aspects of her staff report and encouraged Council discussion. The Committee discussed the benefit of using the excess REET revenue to payoff the bond versus using the REET revenue for current capital expenditures. Ms. Wang answered that no specific capital needs have been identified. Ms. Wang further stated that REET revenue can only be used for very specific expenditures, whereas the utility tax money freed up by paying off the bond could be spent or saved at the Council's discretion. The Committee noted Council will have more flexibility in spending or saving the freed up funds if the bond is paid off. The Committee asked if staff has identified earmarks for the freed funds. Ms. Wang remarked that staff has not made current earmark recommendations for the money. Instead, the funds will be brought forward for Council consideration at the next budget adjustment in the spring. The Committee m/s/c to approve using additional REET to retire the $1.89 million balance of 1997 bonds on December 1, 2007 and forward to the October 16, 2007 Council meeting. 4. OTHER - Chair Faison asked staff to provide the rationale for conducting the citizen survey in early 2008 instead of now. Ms. Wang replied that in her opinion, the holidays would make citizens less likely to respond and that the election season might skew survey results. For these reasons, staff recommended conducting the survey in early 2008. 5. FUTURE AGENDA ITEMS - None. 6. ADJOURNMENT - Chair Faison adjourned the meeting at 5:50 PM. Attest: COMMITIEE APPRO?: ~ ~c ~ison Committee Chair