FEDRAC PKT 03-25-2008
City of Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, March 25, 2008
5:30 p.m.
City Hall
Hylebos Conference Room
AGENDA
1. CAll TO ORDER
2. PUBLIC COMMENT
3. COMMffiEE BUSINESS
Action
Topic Title/Description Presenter Page # or Info
A. Approval of Minutes: February 26, 2008 FEDRAC Meeting K. Roe 1 Action
B. Legislative Update Levy NjA Info
C. Council Retreat Follow up Items Wang 4 Info
D. liFT Planning and Next Steps Doherty 5 Info
E. 2008 Lodging Tax Budget Adjustment Yeh 7 Action
F. Approval of Vouchers Turley 10 Action
G. 2008 February MFR Turley 66 Action
H. Symphony Multi-Family Tax Exemption Agreement Conlen 77 Action
4. OTHER
5. FUTURE AGENDA ITEMS
· LIFT Program Process
· Neighborhood Development Program Update
6. NEXT MEETING: Tuesday, April 22, 2008 @ 5:30 p.m.
Committee Members:
Mike Park, Chair
Dini Duclos
Eric Faison
City Staff:
Iwen Wang, Assistant City Manager/CFO
Krystal Roe, Deputy City Oerk
(253) 835-2541
K: \FEDRAC\2008\03- 2008\03 -25-08 Agenda.doc
City of Federal Way
City Council
Financel Economic Developmentl Regional Affairs Committee
TuesdaV, February 26, 2008
5:00 p.m.
City Hall
Hylebos Conference Room
MINUTES
Committee Members in Attendance: Chair Park, Member Duclos and Member Faison.
Council members in Attendance: Kochmar.
Staff Members in Attendance: Assistant City Manager Iwen Wang, Economic Development Director Patrick
Doherty, Information Services Director Mehdi Sadri, Deputy City Attorney Aaron Walls, Senior Financial Analyst
Mark Turley, and Deputy City aerk Krystal Roe.
1. CALL TO ORDER - Chair Park called the meeting to order at 5:32 p.m.
2. PUBUC COMMENT - Derek W. Purton addressed the Committee with concerns regarding the rate at which
the utility tax is increasing - especially as it relates to an inequality with wage increases and that it also does
not appear to be keeping pace with other taxing revenues. He further expressed concern about the internal
accounting checks and balances in place to ensure Proposition 1 utility tax revenue is applied only to legitimate
Proposition 1 expenses. Last, he stated that because of the high utility tax revenue, it should no longer solely
be applied for capital expenditures.
Chair Park asked Ms. Wang to speak to Mr. Purton's points. Ms. Wang explained the City's accounting
measures and summarized that the City meets all government accounting practices in regards to all issues -
including utility tax expenditures. All savings and costs from variable staffing levels are pro-rated percentage
wise for the Proposition 1 funds. When a savings is realized because the number of employees falls under the
number allowed by Proposition 1, that account realizes a savings. When. staffing levels rise, the account
realizes a cost. Ms. Wang further explained that position vacancy fluctuations will continually occur due to
employee terminations, sick leave, etc. and that the fluctuations will impact the amount of actual Proposition 1
expenditures.
3. COMMITTEE BUSINESS
A. Approval of Minutes: December 4, 2007 FEDRAC Meeting - 771e Committee m/s/c to approve the
minutes as presented.
B. Legislative Update - Doug Levy, Legislative Lobbyist addressed the Committee via conference call and
gave a brief update regarding legislative issues, including:
Budget Funding: The Senate has approved $500,000 toward the Performing Arts Center in Federal
Way - by far one of the largest earmarks made this year. Mr. Levy noted that of the $4,000,000
Senate budget, Federal Way received one of the largest earmarks. Mr. Levy further reported Senator
Eide's support for the earmarked funding. To date, the House has not recommended funding for the
project and Mr. Levy requested that the City Council convey its importance to Representative Priest
and Miloscia. Councilmember Duclos agreed to contact both representatives on February 27 to request
their support for this important project as well as to request funding for the Dumas Bay Beach
Management District.
Transportation: Mr. Levy was pleased to report that the status of transportation-related legislation is
good and on track with Federal Way's goals. Both the House and Senate budgets have allocated
millions for the Triangle Project and also allocated pre-construction funding for the 1-5/509 and 1-
5/272nd projects.
Executive Session Meetings: The legislation requiring taping of City Council Executive Sessions died.
1
C. Small Business Development &. Outreach Activities - Mr. Doherty gave a brief history of the City's
partnership with the Highline Small Business Development Center (SBDC) and remarked on the program's
success with Federal Way business owners.
He also stated that Lillian Yeh, Economic Development Assistant, has conducted weekly out-reach visits to
small business owners to provide them with brochures and information about the services available to
them through the SBDC, shares how the City functions, and the services available to them at City Hall.
Mr. Doherty introduced Zeg Siegl, Certified Business Advisor with the SBDC. Mr. Siegl spoke regarding the
positive partnership between the City and Highline and the success the program has recently experienced.
Ms. Jackie Muth, Mahrt & Associates, shared her positive experiences expanding her CPA firm with the help
of the SBDC.
D. Report on 2007 FCC form 1205 as filed by Comcast - Mehdi Sadri addressed the Committee and
described the process of setting cable rates. The City hired a consultant to audit the rate adjustment
proposal and found some areas of concern.
After studying the issue, it appears as if the cost of fighting the rate adjustment would be more expensive
for consumers than it would be to allow Comcast to use their rate calculations. Comcast generally charges
less than they are allowed to by law. If the City challenges the rate adjustment and prevails with the
consultant's rate, Comcast may decide to charge the maximum allowed by law which would be an increase
to Comcast customers.
Therefore, staff has negotiated a preliminary rate adjustment settlement with Comcast and will be coming
to Council for approval at a later date. The Committee concurred that staff should proceed with this issue
and bring it back to Committee/Council for final approval.
The consultant also found areas of concern that Comcast will not settle. Therefore, the consultant and
staff recommend that the City issue a rate order. The rate discrepancies between Comcast's figures and
the consultant's vary as much as $2.00 for some services. The Committee concurred that staff should
proceed with filing a form 1205 rate order for these rate adjustments.
Last, Mr. Sadri stated Comcast may be filing paperwork in the future to eliminate the requirement for a City
franchise agreement based on their opinion that there is effective competition for cable; the City will need
to formally file to stop their motion.
E. Sprint Franchise Amendment - Mr. Walls presented the staff report and noted the diagrams in the
document are initial concepts and not necessarily final plans. The project still needs to go through
permitting. Also, the private property owner would need to agree with the final proposal.
771e Committee m/s/c to approve the proposed Ordinance and forward to full Council for first reading at
the March 4, 2008 City Council Meeting (Option 1).
F. Amendment of Right of Way Activities' Ordinance - Mr. Walls presented the staff report to the
Committee and noted the difference between construction-related right-of-way permits and right-of-way
activity permits (parades, demonstrations, community events, block parties, etc.). Mr. Walls highlighted
and reviewed the proposed changes to the ordinance - most notably that the group definition has been
increased to 25 persons and constitutional provisions have been made.
771e Committee m/s/c to approve the proposed Ordinance and forward to full Council for first reading at
the March 4, 2008 City Council Meeting (Option 1).
G. Approval of November through January Vouchers:
771e Committee m/s/c to approve the vouchers as presented and forward to the March 4, 2008 City Council
meeting.
2
H. 2007 Year End Financial - Mr. Turley presented the staff reported and highlighted key figures. He
explained the Police overtime was due to reduced officers available and that staff will be looking to adjust
this number in the next budget cycle to reflect a more realistic figure.
He also remarked that the Community Center is still about 27% below its anticipated revenue amount and
staff still anticipates a higher than estimated gap between expenditures and revenue. Staff is working to
reduce the gap without negatively impacting current users.
I. 2008 Carry Forward Budget Adjustment Ordinance - Ms. Wang presented her staff reported and
highlighted the requests not previously brought forward to Council. The Committee discussed the long-
range budget projections, anticipated economic Changes/fluctuations, and major budget adjustments which
have set the City in a favorable status.
4. OTHER - None.
S. FUTURE AGENDA ITEMS - Two items need to be brought forward: $25 million UFT plan and neighborhood
districts.
6. ADJOURNMENT - Chair Park adjourned the meeting at 7:02 PM.
Attest:
Krystal Roe, Deputy City Clerk
COMMITTEE ApPROVAL:
Mike Park
Committee Chair
Dini Dudos
Committee Member
Eric Faison
Committee Member
3
CITY OF FEDERAL WAY
STAFF REPORT
Date:
To:
March 20, 2008
From:
Via:
Finance, Economic Development & Regional Affairs Committee
I wen Wang, Assistant City Manager \ W
Neal Beets, City Manager
Council Retreat Items Follow-Up and 2008 Committee Work-Plan/Agenda
Subject:
There were a few items discussed at the Council Retreat that require follow up conversation. Staff
developed a timeline they will likely be scheduled for Committee review and action. It should be noted
there are separate items scheduled for the Council of the Whole in April and May to reviewlfollow up
including Utility Tax Usage, Green City Plan, Jail Service Options, DBC Long-Term Plan, PAC, etc.
The following are only those will come back to future FEDRAC.
Council
Item Committee When
1. Economic Development GoalslIdeas (further FEDRAC Action February
discuss/explore) Small Bus. Development Ctr.
a. Destination shopping March
b. Co-marketing (Renton example??) LIFT Update
c. Strengthen customer services culture April
throughout organization LIFT Process Options
d. Small business issues
2. Federal Way Community Center FEDRAC Info June/July
a. First year operation results PRHSPSC Action Propose Fee Structure Changes
b. Operation/fee adjustments Update Business Plan
c. Five-year business plan based on above
changes
3. Communicate City's Vision - FEDRAC April
a. Develop visuals (model, storyboard) Neighborhood Development
b. Empowerlbuild stronger neighborhoods Planning Process Update & Next
c. Mayor's town-hall meetings (in progress).. Steps
4
~
CITY OF ~
Federal Way
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
Via:
From:
Subject:
March 19,2008
Finance, Economic Develop~nd Regional Affairs Committee
Neal J. Beets~'i. anager ~
Patrick Dohe, ic Development Director
Update on L1 panning
. At the 3/25108 FEDRAC meeting, staff will offer a verbal update on the status of
planning for the public infrastructure investments in the City Center pursuant to the
State's award of LIFT funding.
LIFT funds will be begin to be available in 2010 at up to $1 million in matching award
from the State for the ensuing 25 years. By 2015 the City must bond against the
remaining yearly revenue stream, and improvements must be constructed by 2018.
Discussions to date have included the following topics that will be discussed in somewhat
greater detail at the FEDRAC meeting:
· Two basic categories of LIFT investment:
o Investment in conjunction with private development
o Prospective public investment
· Investment in conjunction with private development raises such issues as:
o How to engage private property owners and/or developers?
o Possible Request for Concepts (RFC) process?
o Deadlines for developer commitments
o Phased development - do we entertain near-term and longer-term projects
in two or more phases, with accompanying phased infrastructure?
· Prospective investments raises such issues as:
o Grid roads, bike lanes, pedestrian paths and other ROW improvements are
easier to foresee due to our Comprehensive Plan and/or CIP, but would we
obtain and/or condemn land to make these improvements alone?
o Public open spaces and, especially, public parking facilities may be more
difficult to pursue prospectively on their own and would entail
substantially more unilateral property acquisition.
· Need to begin to "commit" funds starting in 2009. "Commitment" does not mean
expenditure, but requires the up-front planning.
5
Memo to FEDRAC, 3/l 9i08
Discussion on LIFT planning
Page 20f2
· Potential use of LIFT funding to assist in Conference facilities and/or Performing
Arts Center - public parking and/or public open space amenities.
· Next steps, including more complete action items for Council consideration at
4/22/08 FEDRAC meeting.
6
COUNCIL MEETING DATE: April I, 2008
ITEM #:
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: 2008 L T AC BUDGET ADJUSTMENT
POLlCY QUESTION: Should the City approve the 2008 LTAC adjusted budget?
COMMlTTEE: Finance, Economic Development and Regional Affairs
MEETING DATE: March 2~ 2008
CATEGORY:
~ Consent
D City Council Business
D Ordinance
D Resolution
D
D
Public Hearing
Other
~!~~.~~~2~~..I}Y:__f:i!!i:l.':lXt::~.~~9l!9~.i~Pt::Yt::!9P~t::!1t.~~~!~t~J:lt
A TT ACHMENTS: 2008 L T AC Program and Budget
DEPT: City Manager
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SUMMARYIBACKGROUND:
City Council approved the L T AC budget and work program for the current 2007-2008 biennium budget. The
approved budget included total projected revenue of$187,353. However, the actual revenue generated from the
Hotel and Motel Tax, in addition to other sources of revenues, for 2007 increased this figure to $213,519. The
increased revenue prompted the L T AC, at its recent Retreat of 3/14/08, to recommend several adjustments in
order to better align with its mission and anticipated needs for 2008. After accounting for all on-going
expenditures of$176,140, an unallocated balance of$141,605 was generated.
Under the On-Going Expenditures, only minor adjustments are proposed. The TEG and tourism website
increases reflect 2007 charges that were not paid due to delays in invoice submission by vendors. Last year
L T AC also voted to join the Tacoma Sports Commission since many sporting events in Tacoma have generated
increase bookings for our local hotels. Finally, Staff support, appropriately 10%, is adj usted to the revised 2007
revenue.
The following are some more significant adjustments recommended by L T AC for the 2008 One-Time
Expenditures:
I. Transfer of $40,000 to the special set-aside fund for NCAA/Olympics Trials events. This brings the fund to
a total of $11 0,000 available for bids of nationaVinternationa1 aquatic events. This year L T AC will spend
$10,000 towards marketing the NCAA event in March. The next Olympic Trials bid in 2010 (for 2012
Olympics) will likely require up to $100,000 commitment.
2. Increase of budget for Graphic Artist, Copy Writer, Project Management, and Marketing Consultant from
$8,422 to $25,500. As part of the City's effort to maintain fresh marketing materials, on-going changes are
required. These services would include revisions to the rack brochures, tourism map, and quarterly calendar,
in addition to advertisements in guide books and regional newspapers. The marketing consultant also
engages development of earned media on major events such as NCAA, Han Woo-Ri, Women's Triathlon,
and Buds & Blooms, etc.
7
3. Increase of brochure distribution from $10,446 to $20,000 to allow for an additional brochure slot in order
to include either the tourism map or the quarterly calendar. Staff will work with the provider to determine
the revised distribution area.
4. Increase of printing of Explore FW Calendar from $3,408 to $7,500 in order to accommodate expanded list
of distribution outlets to include community organizations and companies. Currently, 5,000 calendars are
printed quarterly.
5. Increase of postcard printing from $3,500 to $5,000. Consistent with the goal to increase distribution of the
City's other tourism materials, the postcards would be used for marketing purposes and will be available to
local businesses.
6. Addition of$23,000 for Buds & Blooms, Spring Garden Festival to build visibility and visitors to the City's
three gardens and the West Hylebos Wetlands Park. These outdoor venues represent some of the best in the
region and it is consistent with the marketing strategy to promote these. This year the Festival will be held
on May 10-11 th during Mother's Day weekend.
7. Website development and management has been increased from $5,000 to $11,000. The adjusted amount
will enable the Chamber of Commerce to hire a dedicated part-time web master to manage the
www.federalway.org site in addition to continue in the joint effort to finalize the develop an interactive
website.
PROPOSAL
Lodging Tax Advisory Committee's Recommendations
To approve the 2008 Program and Budget with all the proposed adjustments in the On-Going and One-Time
Expenditures.
STAFF RECOMMENDATION: Staff recommends approval of the adjusted 2008 Program and Budget, with as
recommended by L T AC.
CITY MANAGER ApPROVAL:
DIRECTOR ApPROVAL:
ConulIittee Council
Council
COMMITTEE RECOMMENDA nON: HI move approval of the LTAC 2008 Program and Budget. as recommended
by LTAC."
Committee Chair
Committee Member
Committee Member
PROPOSED COUNCIL MOTION: HI move approval of the LTAC 2008 Program and Budget, as recommended
by FEDRAC. "
(BELOW TO BE COMPLETED BY CITY CLERK'S OFFiCE)
COUNCIL ACTION:
o APPROVED
o DENIED
o T ABLEDIDEFERRED/NO ACfION
o MOVED TO SECOND READING (ordinances only)
REVISED - 02/06/2006
COUNClL BILL #
1 ST reading
Enactment reading
ORDlNANCE #
RESOLUTION #
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COUNCIL MEETING DATE: Aprill, 2008
ITEM #:
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: VOUCHERS
POLICY QUESTlON: Should the City approve the vouchers in the total amount of$/,947,850.40
COMMITTEE: Finance, Economic Development, and Regional Affairs Committee
MEETlNG DATE: March 24, 2008
CATEGORY:
IZJ Consent
o City Council Business
o Ordinance
o Resolution
o
o
Public Hearing
Other
STAFF REpORT By: Tho Kraus
DEPT: Management Services
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I, the undersigned, do hereby certify under penalty of perjury 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, Washt gton, and that I am authorized to authenticate and certify said liens.
Attachments: Voucher List
Options Considered: NA
STAFF RECOMMENDA TlON: NA
CITY MANAGER ApPROVAL:
DIRECTOR ApPROVAL:
Council
Council
COMMITTEE RECOMMENDATION:
"I move approval of the vouchers andforward to the April/. 2008 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:
o APPROVED
o DENIED
o T ABLEDfDEFERREDINO ACTION
o MOVED TO SECOND READlNG (ordinances only)
REVISED - 02/06/2006
COUNCIL BILL #
I ST reading
Enactment reading
ORDINANCE #
RESOLUTION #
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65
COUNCIL MEETING DATE: April I, 2008
ITEM #:
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: FEBRUARY 2008 MONTHLY FINANCIAL REPORT
POLlCY QUESTION: Should the Council approve the February 2008 Monthly Financial Report?
COMMITTEE: Finance, Economic Development & Regional Affairs Committee
MEETING DATE: 3 j2J:);h2)
CA TEGORY:
[8J Consent
o City Council Business
o Ordinance
o Resolution
o
o
Public Hearing
Other
~!~!:(<-~~~QI!!~~:-M~!~I~~-'~t,~~l)-i~!f_i!!~!l~j_~I_~!!~I)':>L_____________.._._
Attachments:
February 2008 Monthly Financial Report
Options Considered:
I. Approve the February 2008 Monthly Financial Report as presented and forward to the April I, 2008 Council
Consent Agenda_
DEPT: Management Services
. "-"-"-'-'-"-.~__'''''__'_'__4''''___,_,__",,___~,__,____'_~'_~______~"_'__'___'__'__"_'
2. Deny approval of the February 2008 Monthly Financial Report and provide direction to staff.
STAFF RECOMMENDATION: Staff recommends approval of Option l.
Council
DIRECTOR ArPROV AL: 1't fDv p0
Committee
Council
Cln: MANAGER APPROVAL:
COMMITTEE RECOMMENDATION: Fonvard approval of the February 2008 Monthly Financial Report to the Aprill,
2008 City Council Consent Agenda.
Eric Faison, Chair
Jeanne Burbidge, Member
Dean McColgan, Member
PROPOSEO COUNCIL MOTION: H[ move approval of the February 2008 Monthl)! Financial Report. "
COUNCIL ACTION:
o APPROVED
o DENIED
o TABLEDtOEFERREDfNO ACTION
o MOVED TO SECOND READING (ordinances only)
REVISED - 02/06/2006
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL BILL /I
1ST reading
Enactment reading
ORDINANCE /I
RESOLUTION /I
686
~
ClfYOf ~
Federal Way
February 2008 Monthly Financial Report
GENERAL & STREET FUND OPERA nONS
The overall operating of the combined General and Street Fund showed a positive result of $186K through February. Overall
revenue total $6.5M and is $103K or 1.6% below budget. The decrease in revenues is attributed to the decrease in overall
revenues of building permits and gambling taxes. The City expects an overall decrease in building permits due to the housing
market. Year-to-date expenditures total $6.3M and is $156K or 2.5% above budget.
2007 2008 Variance
GENERAL & STREET FUND Annual Annual YTD Annual YTD YTD FavC)rable (Unfavorable)
summary of Sources & Uses Budget Actual Actual Budget Budget Actual $ %
Beginning Fund Balance $ 7.066.947 $ 7,066.947 $ 7.066.947 $ 3,689,249 $ 3.669,249 $ 7,994,190 $ 4,104,941 105.5%
OPERATING REVENUES
Property Taxes 8,865,097 9.006,922 96.896 9,122,267 94,361 94,361 - O.OO,{,
Sales Tax 12,932,071 13,048,624 2,369.723 13,089.443 2,377,136 2.407,793 30,657 1.3%
Criminal Justice Sales Tax 2.142,502 2,145,383 367,569 2,289,763 392,306 396,036 3,730 1.0%
Intergovernmental 2.375,291 2,511,256 353,854 2,398,026 337,899 360,396 22.497 6.7%
Leasehold Tax 2,026 7,254 716 2,026 200 1,151 951 475.6%
Gambling Taxes 1,400,000 1,489,952 338,867 1,400,000 318,409 246,824 (71,585) -22.5%
Court Revenue 986,535 1,217,062 158,726 998,825 125,099 252,175 127,076 101.6%
Building PennitslFees-CO 2,278,857 2,689,041 471,655 2,182,100 382,738 258.492 (124,247) -32.5%
ROW Permits & Develop Svcs Fees-PW 475,719 499,392 83,680 483,399 81.000 80,311 (689) '{).9%
icenses 235,518 259,209 47,213 235,518 42,898 46,347 3,449 8.0%
Franchise Fees 981.739 982,767 233,906 1,073,269 255,446 243,000 (12,446) -4.9%
Passport Agency Fees 68,730 109,753 23,423 91,388 19,503 19,425 (78) '{).4%
~eneral Recreation Fees 599,310 630,007 77,667 600,915 74,080 72,746 (1,334) -1.8%
Public Safety 1,125,865 1,044,646 99,768 934,775 89,275 86,891 (2,384) -2.7%
f'\dmin/Cash Management Fees 582,399 571,011 95,168 605,695 100,949 98,868 (2,081) -2.1%
Interest Earnings 741,023 669,117 134,979 741,023 149,484 75,512 (73,973) -49.5%
Mise/Other 225,583 282,578 54.251 240,750 46,220 43,481 (2,739) -5.9%
Ooooino Transfers In:
Utility Tax-Gelebration Park 255,800 255,800 255,800 266,000 266,000 266,000 0.0%
Utility Tax-Kenneth Jones Pool - - - - nla
Utility Tax-Arts Comrn/RW&B Festival 106.000 106,000 106,000 108,000 108,000 108,000 0.0%
Utility Tax-Police Positions 700,000 700,000 700.000 728,000 728,000 728,000 - 0.0%
Utility Tax-Street Bond Projects 264,275 264,275 264,275 437,606 437,606 437,606 - 0.0%
Utility T ax-New Street Lights 112,091 112,091 112,091 - - - nla
Utility Tax.Camp Kilworth M&O 106,000 106,000 106,000 110,000 110,000 110,000 - 0.0%
Utility T ax-General Fund Oper 1,331,228 1,331,228 - 4,347,446 37,500 37,500 - 0.0%
Utility Tax-Prop 1 Voter Package 1,930,000 1,930,000 - - - - - nla
Utility Tax-New Parks M&O 59,000 59,000 59,000 62,000 62,000 62,000 0.0%
o~al Operatiilg Revenu~ 40,902,659 42,028,369 6,611.227 42,548,234 6,636,110 6,532,916 (103,194) -1.60':
OPERATING EXPENDITURES
City Council 371,771 365,625 157,106 375,819 161,487 121,984 39,503 24.5%
ity Manager - 1,185,881 1,136,366 196,823 2,410,530 285,340 132,173
417,513 31.7%
Municipal Court-Operations 1,380,886 1,280,865 166,777 1,482,846 193,076 230,617 (37,541) -19.4%
Econornic Development 373,729 215,861 41,160 230,634 43,977 39,282 4,695 10.7%
Management Services 2,287,795 2,080,526 290,419 2,139,903 298.707 306,091 (7,384) -2.5%
ivil/Criminal Legal Services 1,441,869 1,307,586 186,739 1,481,898 211,633 225,822 (14,189) -6.7%
Cornm. Development Svcs 4,002,828 3,702,684 539,659 3,841,758 559,929 480,374 79,555 14.2%
ail Services 1,668,126 1,701,176 6,386 1,974,022 7,410 8,968 (1,558) .21.0%
Police Services 21,229,195 20,449,932 3,029,060 21,693,368 3,213,239 3,498,821 (285,582) -6.9%
Par1<s and Recreation 4,020.390 3,780,260 465,681 4,023,586 495,653 506,601 (10,948) -2.2%
Public Wor1<s 4,855,671 4,136,883 505,240 4,822,289 588,949 643,330 (54,381 ) -9.2%
iltal..OP4!l"llting Expenditures 42,818,142 40,157,783 5,585,050. 44,476,656 6,191,573 6,341,230 (155,657) -2.50/.
Operating Revenues ove,/(under)
Operating Expenditu,es (1,915,483) 1,870,586 1,026,177 (1,928,422) 444,537 185,686 (258,851) -58.20/.
OTHER FINANCING SOURCES
One-Time Transfers In 169,369 161,151 107,942 70,000 4,779 4,779 0.0%
Grants & Other 161,751 203,506 7,161 79,171 11,226 11,226 0.0%
Tot<ll Other Financing Sources 331,120 364,657 115,103 149,171 16,005 16,005 - 0.0%
OTHER FINANCING USES
City Manager Contingency 416,000 - 2,000,000 - nla n/a
One-Time Transfers 1,180,000 1,330,000 1,000,000 - n/a nla
Other - . - n/a nla
Total Other Financing Uses 1,596,000 1,330,000 1,000,000 2,000,000 - - n/a n/.
[Total Endina Fund Balance $ 3,908,584 $ 7,994,190 $ 7,230,227 $ 109,998 $ 4,349,791 $ 8,195,881 nla n/.
.r able on Cash BaSIS
67
DESIGNATED OPERATING FUNDS
Through February, designated operating funds revenue total $4.3M and is $698K above the year to date budget of $3.5M with
utility taxes and real estate excise tax being the major contributors. Expenditures of $2.7M is $31 K under the year-to-date
budget estimate of $2.8M.
2007 2008 Variance
DESIGNATED OPERATING FUNDS Annual Annual YTD Annual YTD YTD FavQ<abl.. (Unfavorable)
limmary of .Sources & Uses Budget Actual Actual Budget Budget Actual $ %
Begin Balance-Designated Funds $ 9,705,216 $ 9,705,216 $ 9,705.216 $ 6,165.535 $ 6.165,535 $ 6,165.535 $ 0.0%
OPERATING REVENUES
Inlergovernmental 559,023 561,232 90.834 559.023 90,477 88.445 (2.032) -2.2%
Utility Taxes 11.036.287 12,796.461 1.974.804 11.782,569 2.247,520 2.468,229 220,709 9.8%
HotelfMotel Lodging Tax 175.100 191.691 28,294 180.353 26.620 29,892 3.271 12.3%
Real Estate Excise Tax 4.800.000 4.898,537 913.117 3,300.000 615,140 1.102,382 487.242 79.2'%
FW Community Center-Transition 730.548 730,548 696.728 - - - - nfa
W Community Center-Qperations 1.248.117 908,262 1.633 1,683.407 277.235 212.450 (64.785) .23.4%
Dumas Bay Centre 619.529 486.278 34.556 630.711 44.820 71.422 26.602 59.4%
Knutzen F amity Theatre 75.170 160.957 48.189 75.380 22.568 12.620 (9.948) -44.1%
SWM Fees 3.710,104 71,565 71,565 3.604,132 37,220 37.220 0.0%
Refuse Coltection Fees 242.850 280.598 64.753 242.850 56.042 44,127 (11,915) -21.3%
Interest Earnings 256.545 532.146 84.271 166.545 26.374 75.037 48.663 184.5%
Miscellaneous/Other 4.000 25.002 25.000 4.000 - n/a
o""ojnn Tr2nsfers In:
Utility Tax-Knutzen Theatre 125.495 125.495 125.495 129,260 129.260 129.260 0.0%
Utility Tax.Debt Service 1.347.483 - 1.343.633 - nfa
Utility Tax-Arterial Streets 1.400.000 1,400.000 1.400.000 1.400.000 - n/a
Utility Tax-New Community Center 492,923 492.923 492.923 528.348 - - - nfa
qt..ci.n)p~(a~lltGa,~venues 26,823.174 23,661,694 6,052;161 25,610,211 3,573,276 4,271.085 697,807 19:5%
:>PERATING EXPENDITURES
ity Overiay Program 2.862,975 2.494.146 30.324 2.023.894 12.471 12.471 0.0%
Utility Tax-Admin/Cash Mgmt Fees 57.449 57.449 9.575 59.747 9.958 9.958 (0) 0.0%
olid Waste 364.890 336.588 53.805 370.060 59.155 44.188 14.968 25.3%
iHotetlMotel Lod9in9 Tax 351.164 194.607 17.384 187.353 16.736 18.821 (2.086) -12.5%
FW Community Center Transition/Start Up 397.917 397.917 57.254 - - n/a
FW Community Center-operations 1.396.921 1.331.861 17.448 1.901.761 316.960 265,967 50.993 16.1%
!nebt Service 11,255.538 10.920.133 100.808 1.201.830 8.844 8.844 - 0.0%
Surface Water Management 3.080.245 3.037.900 373,942 3.148.732 387,584 414.712 (27.127) .7.0%
Ioumas Bay Centre 593.888 561.847 72.100 605,828 77.744 78.246 (503) .Q.6%
Knutzen Family Theatre 242.711 236.162 28.556 248.524 30.051 35.620 (5.570) w18.5%
Ionnoinn Tr~nsf"'" nut:
Utility Tax-Celebration Park 255,800 255.800 255.800 266,000 266.000 266.000 0.0%
Utility Tax-community Center Oper. 492.923 492.923 492.923 528.348 - n/a
Ulility Tax-Arts Comm1RW&B Festival 106.000 106.000 106.000 108.000 108.000 108.000 - 0.0%
Utility Tax-Police Positions 700.000 700.000 700.000 728.000 728.000 728.000 - 0.0%
Utility Tax-Street Bond Projects 264.275 264.275 264.275 216.387 216.387 216,387 0.0%
Utility Tax-New Street Lights 112.091 112.091 112.091 116,014 116.014 116.014 0.0"10
Utility Tax-KnulZoo Family Theatre 125.495 125.495 125.495 129.260 129.260 129.260 0.0%
Utility Tax-Arterial Streets Overlay 1.400.000 1.400.000 1.400.000 1.400.000 - nfa
Utility Tax-Gamp Kilworth M&O 106.000 106.000 106.000 110.000 110.000 110,000 - 0.0%
Utility Tax-Debt Service 1.530.300 2.115.300 - 105.205 105.205 105.205 0.0"10
Utility Tax-Transportation CIP 1.400.000 1.000.000 1,400.000 - nfa
Utility Tax--General Fund Operations 1.238.728 1.238.728 1.761.946 nfa
Utility Tax-Prop 1 Voter Package Prog 1.837.500 1.837.500 2.548,000 - - nfa
Utility Tax-community Center Debt Svc 913.333 - - 913,333 - - - nfa
Utility Tax-New Parks M&O 62.000 62.000 62.000 62,000 62.000 62.000 - 0.0%
ftcit;l' Op.,.tlrig. e:.q,elidlt'Jr~ 31,148,144 29,384,722 4,385,780 20.140;221' 2,760,369 2,729,694 30.675 1.1.
Operating Revenues over/(under)
Operating Expenditures (4,324,9691 (5,723,028) 1,666,382 5,469,990 812,907 1,541,391 728,483 89_6".
IoTHER FINANCING SOURCES
One-TIme Transfers In 5,733.805 4.430.000 3.803.805 - - n/a
Grants/MitigationfOther 222.000 2.634.687 5.210 222.000 73.602 73,602 0.0%
T Qtal Other' Financing Sources 5,955,805 7.064,687 3,809,015 222;000 73,602 73.602 . 0.0"
:>THER FINANCING USES
One-TIme Transfers Out 6.163.208 5.978.208 3.347.000 5,001.800 37.500 37.500 0.0"1.
Other - nfa
Total Other AnancingUses 6,163,208 5,978,208 3,347,000 5.001,800 37,500 37.500 - 0.0"
ENDING FUND BALANCE
Arterial Street 15.105 15.106 1.543.638 30.212 138,305 nfa nfa
Utility Tax 1,711.179 1.711.179 (229.860) 2,123.708 - 2.308.577 nfa n/a
Solid Waste & Recyding 115.936 115.939 111.233 126.729 143,582 n/a nfa
HotellMotel Lodging Tax 0 265.875 - 12,171 nfa nfa
FW Community Center 239.101 239,101 678,159 529.095 (53.516) nfa ofa
Paths & Trails 34,923 34.922 27.018 44.445 36.462 nfa ofa
Debt Service Fund 1.462.083 3.133.292 8.541.685 3.821.095 4.273.457 nfa nla
Surface Water Management 903.568 903.570 174.300 180,440 - 531.292 n/a nla
Dumas Bay Centre Operations 1.415 (21.391) (65.604 ) 7.492 (26.907) nfa nla
Knutzoo Family Theatre (8.045) 33.817 176.827 (7,492) 140.506 nfa nla
otal Ending Fund Balance $ 4,475.266 $ 6.165.535 $ 11,223,271 $ 6,855,725 $ $ 7,503,928 n/a nfa
''T able on Cash BasIS
68
2
Real Estate Excise Tax
Compared to 2007, collections are up $189K
or 20.7%. February's receipt of $512K is
$292K above February 2007's activity and
includes a total of 144 real estate transactions,
of which 61 were tax exempt and of the
remaining 83,0 were mobile home sales. The
annex area has contributed year-to-date
revenue of $13,187. The largest transactions
in the current month and their sales price
consist of the commercial property located on
1st Ave ($6.7M), Silver Shadows Apartments
($13.4M), office building located on 344th St
($23.7M), and Campus Grove Apartments
($41.0M).
REAL ESTATE EXCISE TAX REVENUES
Year to date thru February
2007 2008 2008 Change flOm 2007 2008 Actua I vs Budget
Month Actual BUdget Actual $ Vat " Var $ Va, "Vat
Jan $ 693,595 $ 467,254 $ 590,477 $ (103,118!! -14.9% $ 123.223 26.4 %
Feb 219.522 147.885 511,905 292,383 133.2% 364,020 246.2%
Mar 626,241 421.880
Apr 506,747 341,380 - i -
Mav 484,527 326,412 - -I -
Jun 520,650 350,7 47 - . i - -
Jul 407,081 274,238 - - -
Aug 293,865 197,968 - -
Sep 307,526 207,171 -
Oct 353,373 238,057 -
Nov 302,465 203,762 -
Dec 182,946 123,245 - - -
YTD T alai $ 913,117 $ 615,140 $1,102,382 $ 189,265 20.7% $ 487,242 79.2%
Annual Total $4,898,537 $3,300,000
Sales Tax
Sales Tax bv SIC Code
Retail sales continue to remain the largest source of
sales tax revenue, accounting for 57% of all sales
tax collections. Year-to-<Iate retail sales tax
collection is up $70K or 5% above year-to-date
2007; majority of the increase is in the following
areas: general merchandise stores, miscellaneous
store retailers, and food/beverage stores.
Services industry accounts for 19% of the total
sales tax collections. On year-to-date basis,
services sales tax is up by $35K or 8% compared to
2007. Food services accounted for the increase.
LOCAl. RETAIL SALES TAX REVENUES
Y~"to,daM:UJ(u February ..
200T 2008 .'.21108 Cha nge from 200T 2G08..~i:tJIar~.8ti~g~
Month Mto.al . Blldget Actoa I $ r. s %
Jan $ 994,523 $ 997,634 $ 1,014,468 $ 19,945 20% $ 16,834 1.1%
Feb 1,375,199 1,379,501 1,393,325 18,126 1.3% 13,824 1.0%
Mar 946,693 949,654 -
Apr 959,014 962,014 - .' -I
May 1,130,690 1,134,227 - -
Jun 1,007,794 1,010,947 -
Jul 1,026,816 1,030,028 -
Aug 1,197,479 1,201,225
Sep 1,108,619 1,112,087
Oct 1,059,203 1,062,516 -
Nov 1,166,531 1,170,180
Dee 1,076,061 1,079,428 -
YTO Total $ 2,369,723 S 2,377,136 $ 2,407,193 $ 38,070 1.6% S 30,657 I 1.3%
I
Annual Total $13,048,624 $13,089,443 I
Construction and contracting activity, which
accounts for 9% of sales tax collections, is down
$123K or 35% from 2007's activity. Sales tax
received year-to-date on major City projects total
$3K or 1% of total construction and contracting 'Blodg~isproj<<tedb.sol..p..t5""'SN"'ry.
activity.
Wholesale trade accounts for 5% of the total sales tax collections. Year-to-date wholesaling activity is up $34K or 41% above
2007 year-to-date.
Manufacturing activity accounts for 3% of the total sales
tax collections is up by $47K or 187% when compare to
2007 year-to-date. Majority of the increase is due to
increase in activity of printing and related support.
.
COM PARfSON OF SALES TAX COLLECTIONS BY SIC GROUP
Year.to.date thru February
Component 2007 2008 Change from 2007
Group Actual Actual $ %
Retail Trade $ 1,297,173 $ 1,367,618 $ 70,445 5.4%
Serv ices 421,377 $ 456,701 $ 35,324 8.4%
Construct/Contract 348,714 $ 226,025 $ (122,689) -35.2%
Wholesaling 83,427 $ 117,711 $ 34,284 41.1%
Transp/UWity 2,763 $ 4,934 $ 2,171 78.6%
Information 97,655 $ 84,500 $ (13,155) -13.5%
Manufacturing 24,976 $ 71,568 $ 46,592 186.5%
Government 29,359 $ 12,864 $ (16,495) -56.2%
Rn/lns/Real Estate 59,701 $ 65,542 $ 5,841 9.8%
Other 4,570 $ 334 $ (4,236) -92.7%
~T,{>Total $ 2,369,723 $ 2,407,793 $ 38,070 1.6%
U7
3
Information accounts for 4% of the total sales tax
collections. Year-to-date infonnation activity is down by
$I3K or 14% compared to 2007. Publishing Industries
showed an increase in activity.
Sales Tax bv Area
The City's largest retail center, South 348th, which generates
11% of the City's sales tax, is showing an increase of $7K or
3% compared to the year 2007.
SALES TAX CC)MPARI$ONby AREA
Year -to.datethrI(F~~rI!UY
2007 2608 Chg from 2007
Group Actual A~tu.a' $ "I.
Total Sales Tax $2,369,723 $2,407,793 $38,070 1.6%
S 348th Block $263,944 $270,560 $6,616 2.5%
% chg from prey yr 3.0% 2.5% na na
Percenlage of lotal 11.1% 11.2% 0.1% 0.9%
The Commons 255,068 275,859 20,791 8.2%
% chg from prey yr 1.6% 8.2% na na
Percenlage of lolal 10.8% 11.5% 0.7% 6.4%
Major Auto Sales 58,139 58,721 582 1.0"1.
% chg from prey yr -18.8% 1.0% na na
Percentage of lolal 2.5% 2.4% 0.0% .0.6%
S 312th to S 316th 126,675 189,226 62,551 49.4%
% chg from prey y, 7.3% 49.4% na na
Percenlage of lolal 5.3% 7.9% 2.5% 47.0%
Pavilion Center 122,831 127,424 4,593 3.7"1.
% chg from prey yr 5.5% 3.7% na na
Percenlage oflolal 5.2% 5.3% 0.1% 2.1%
FW Crossings 36,841 46,061 9,220 25.0%
% chg from prey yr na 25.0% na na
Percenlage oflolal na 1.9% na na
The Conunons year to date activity show an increase of $21 K
or 8% compared to 2007.
Major Auto Sale's collection total $59K and is $IK or 1%
above 2007.
S 3 12th to S316th tax collections are up by $63 K or 49%
compared to the prior year.
Pavilion Center tax collections are up by $5K or 4% compared
to the prior year.
Federal Way Crossings tax collection is up by $9K or 25%
compared to the prior year.
Gambling Tax
Gambling tax collection through February is $247K. In comparison to 2007 year-to-date collection, 2008's tax collection is
$92K or 27% below the same period. The unfavorable variance is due to the timing of cash receipts in January of 2007 in
which the City received $98K ($87K related to November Revenues and $11 K in an amended return from 2006) from a major
payer for 2006 revenues.
200'7
,'Actual
218.118
120,749
23.530
228,568
36,079
186.964
34.454
211.381
29.788
133.115
104.609
162,598
$ 338,867
$ 1,489,952
G
Y~<ir~
260'S
Bji (.lget
204,950 $
113.459
22.109
214,769
33.901
175.677
32,374
198.619
27.990
125.078
98,293
152.782
$ 318,409
$ 1,400,000
BVENUE
h.February
Change ~fO:in 20,!!.8
$ Var, 'Y. Vilr
$(113,419) -52.0%
21.377 17.7%
$ 246,824 $ (92,043)
-27.2"1. $
71,585)
-22.5%
Table reflects gambling activities on cash basis.
HotellMotel Lodging Tax
Hotel/Motellodging tax collections through February total $30K. Compared to 2007, the lodging tax is $2K or 5.6% above the
same period. .
HOTELIAfOTEL LODGING TAX REVENUES
Yea r-Io.da teth,ufeb,ua,y
2007 2008 2008 Change ',om 2007 2008Actua/.vsBlId9,t
At onth Actual Budget Actu.at $ Var %Va, $Var %Var
Jan $ 13,411 $ 12,617 $ 14.985 $ 1.574 11.7% $ 2.367 18.8%
Feb 14.883 14,003 14.907 24 0.2% 905 6.5%
Mar 12,748 11,994 - -
Apr 12,545 11,803 - -
May 15.638 14.713 -
Jun 13,241 12,458 - -
Jut I 10,427 9,810 - -
Aug I 24.090 22,665 -
I
Sep 20.376 19.171
Oct 22.461 21.132 - -
Nav 17.735 16.686 -I - -
Dec 14./36 13.300 - -
YTDTotal I $ 28,294 $ 26,620 $ 29,892 $ 1,598 5.6% $ 3,271 12.3%
Annual T otalT $ 191,691 $ 180.353 7
4
Utility Tax
Utility taxes received through February total $2.5M and is above 2007 year to date collections by $493K or 25%. This is due
to the increase in Utility tax from 6% to 7.75% in February of 2007. Compared to year-to-date 2007, Electricity up $302K or
45%, Gas is up $20K or 4%, Phone is up $47K or 29%, and Cellular phone is up $153K or 46%. Cable reported a decrease of
$50K or 29%, this is due to the timing of payments received in 2007 compared to 2008. The City received Cable payments for
the month of January in February of 2007 versus receiving the January payment in March of 2008 (which is not included in the
cash basis table).
UTILITY TAXES
Ye~'-'o'~~tethru~H .?/1i)B Mtu~1 vsBudget
2007 20M 2008(< .",~ilqi
Month Actual Budget Actual S!1a, .~.Val' SVar %Var
Jan $ 845,364 $ 962,107 $ 1,204,728 $ 359.364 42.5% $ 242,621 25.2%
Feb 1,129.439 1,285,413 1,263,500 134,061 11.9% (21,912) -1.7%
Mar 1,173,418 1.033,908 - 0,0%
Apr 1,233,143 1,086,532 - - 0.0% -
May 1,063,946 937.451 - 0.0% -
Jun 950.406 837,410 - 0.0% -
Jul 940,312 828,516 0.0% -
AU9 914.481 805,756 - - 0.0%
Sep 994,042 875,858 - 0.0%
Oel 983,515 866,583 0.0% - -
Nov 1,006,830 887,126 - 0.0%
Dee 1,561,565 1,375,908 0.0% -
YTD Total $ 1,974,804 $ 2,247,520 $ 2,468,229 $ 493,425 25.0% $ 220,709 9.8%
Annual
Total $12,796,461 $11,782,569
YTO Tal( rebates ,are included in YTO TotaUTable on Cash Basis
UTILITY TAXES
"tear,lp-!!",e thru feb,uary
2007 2008 6~~'irg~fI'ii!"i/ti1'i
Actual Actual s\,/ai' %.Va?
8eetric $ 672,546 $ 974,380 $ 301,834 44.9%
Gas 517,194 537,089 19,894 3.8%
Solid Was Ie 111,734 132,912 21,178 19.0%
Cable 172,527 122,063 (50,464) -29.3%
Rlone 161,332 208,024 46,692 28.9%
Cellular 336,959 490,399 153.440 45.5%
?ager 78 46 (32) -41.3%
SWM 3,624 4,031 407 11.2%
Tax Rebale (1,191) (716) 475 -39.9%
YTO T olal $ 1,974,804 $ 2,468,229 493,425 25.0%
YTO Taxrebates are included in YTO TotaUTableon Cash Basis
Update on Proposition 1
The following table provides a comparison of utility tax revenue collections at the 6.00% rate and the revenue collections at
1.75% for on-going proposition I funding. Year to date, prop I utility tax collections total $557K or approximately 23% of the
total budget of $2.5 million, Year-to-date prop I expenditures total $367K or 14% of the $2,5M budget.
'2QQ$ ~.QQ%
Month%'Ch\lrjge
January $ 845,364 $ 42.5%
February 1,129,439 11.9%
March 1,173,418 0.0%
April 1,233,143 0.0%
May 1,063,946 0.0%
June 950,406 0.0%
July 940,312 0.0%
August 914,481 0.0%
September 994,042 0.0%
October 983,515 0.0%
November 1,006,830 0.0%
December 1,561,565 0.0%
VID Total $ 1,974,804 $ 1,910,887 $ 557,342 $ 2,468,229 $ 493,425 25.0%
Annual Total $ 12,796,461 nfa nfa nfa n1a nfa
Annual Bud et $ 11,036,287 $ 9,234,569 $ 2,548,000 $ 11,782,569 $ 746,282 7%
. 1.75% utility tax rate increase for proposition 1 funding is effective February 4, 2007. Budget is based on 12 months.
Table on Cash Basis
a~M:f:~i\~~gtlm(~~~~i0t~~I."""!3~0'J:"1.~~~~_~~;~P:S!J;)!:)iif."/';
Public Safety Imorovement Positions & Costs:
Police Services (includes S'NOm postions, records derk, and indirect
Information Technology support costs)
Court Services (indudes Judge, Court Clerk, Prosecutor, public defender
contract, and indirect Information Technology support)
">~>:.J. 'tQ~t.eQ!illc~~(etY1tmpm.~~~fj.e~ltiai1$lf"q!:#($
Communitv Safetv Proaram Costs:
Code Enforcement Officer
Code Enforcement Civil Attorney
Park Maintenance (vandalism,graffiti repair/removal. and park security)
. . T9~1~9I1imumtY$~MY'lmpliQ:t~m,pf!RrogfclmCo$ts
rt - Human Resources Anal t.50 FTE
1"i>taIJElf(qg~1~~t~1El!P:~al':'o/~~iif!m"
$
1,913,281 $
270,808
14.2%
339,563
15.6%
53,117
2i25~;MM.'.;;r:. :.: . .' . 323,~26
14.4%
71
5
State Shared Revenue
Year-to-date distribution of $900K is above 2007's activity by $31K or less than I %. The favorable variance is due to the
increase in Local Criminal Justice Sales Tax.
Revenue
uquor Profits Tax
uquor Excise Tax
Grim Just - Population
Criminal Just High Grime
local Crim Just Sales Tax
Fuel Tax'
001 - Cities
YTD Total $
STA TESHARED REVENUES
Year to date thru Febtuaty
2007 2008
Actual Actual
Change from 2007
$ %
$
$ $ nla
93,550 100,492 6,942 1_8%
20,410 21.372 962 1.2%
45.101 48,322 3.222 3.6%
367.569 396.036 28.466 1_5%
339.152 330,232 (8.919) -0_5%
3,528 3.975 448 3.2%
869,309 $ 900,430 $ 31,121 0.6%
, Fuel tax is included in both generaVsIteeI, desi9nated operatin9 funds, and Ifansportation CIP_
Permit Activity
Year-to-date building pennit activity is below 2007's year-to-date activity by $213K or 45%. Comparee:! to year-to-date
budget estimates, penn it activity is down $124K or 33%. The City expects the revenues for building pennits/fees to decrease
due to the housing markets. Significant penn it activity in February includes the Cove Apartments. Community Development's
positive expenditure variance of $80K is mainly due to timing of payments and under spending of one-time funded programs.
BUILDING PERMITS & FEES
'l'eilrM,;D~~ TllroU9hE~bruary
2007 200$ 200$ Ch;lOge from 2007 2011$ActllillvsQu(jgef
Actual Budget ,6,Ctllill $ 0/. $ %
Jan 186.857 151,631 103,926 (82,931) -44,4% (47.705) -31.5%
Feb 284,798 231,108 154,566 (130,232) -45.7% (76.542) -33.1%
Mar 269,618 218,789 - - - -
Apr 303,057 245,925 - - - - -
May 226.214 183,568 - - - - -
Jun 263,124 213,520 - - - - -
Jul 179,257 145,463 - - -
Aug 157.371 127.703 - - - - -
Sep 102.168 82,907 - - - -
Oct 215.739 175.068 - - - - -
Noy 304,823 247.357 - - - -
Dee 196,014 159,061 - - - - -
YTD Total 471,655 382,738 258,492 (213,164~ -45.2% (124,247~ -32.5%
Annual Total 2,689,041 2,182,100 na na na na
Right-of-way pennits and development services fees are down $3K or 4% when compared to 2007's year-to-date activity_
Public Works Operations year-to-date expenditures total $643K and is $54K or 9% above budget estimates.
ROW flERMITS& DEVELOflMENT SERVICES FEES
Year-to,;DC!te Through February
2007 200$ 200$ Change from 2007 200$ Actual vsBUdget
Actual Budget Actual $ % $ %
Jan 33,025 31,967 46,426 13,401 40.6% 14,458 45_2%
Feb 50,655 49,033 33,886 (16,769) -33_1% (15.147) -30_9%
Mar 21.834 21.134 - - - - -
Apr 59.623 57,714 - - - - -
May 39.068 37,817 - - - - -
Jun 36.329 35.165 - - - - -
Jul 64.193 62,137 - - - - -
Aug 26,372 25,527 - - - - -
Sep 3.082 2.983 - - - - -
Oct 72.179 69,867 - - - - -
Noy 8,370 8.102 - - - - -
Dec 84.664 81.952 - - - - -
YTO Total 83,680 81,000 80,311 (3,368) -4.0% (689~ -0.9%
Annual Total 499,392 483,399 na na
72
6
Public Safety
Expenditures through February total $3.5M and is $286K or 9% above the year to date budget of $3.2M. The unfavorable
variance is due to a lower vacancy rate in 2008 compared to 2007.
Through February, City overtime is 54% or $58K above last year. There is a 35% decrease in overtime for contracted services
and traffic school. When the decrease from the billable overtime is included, the total overtime increased $48K or 35%.
PSOvertime by Type
through February
Type 2007 2006 $ %
Training $ 5,564 $ 12.166 6.604 116%
Court 6.966 7.446 460 7%
Field Oper 73,792 127.371 53,565 73%
Other 20,521 17,691 (2,630) -13%
aty Fbrtion 106,664 164,903 56,039 54%
Contract/Grant 19,669 11.196 (6.671) .44%
Traffic School 6,662 7.397 (1,465) -17%
HolOOland See nla
Salable 26,732 16,595 (10,137) .35%
Grand T olal $ 135,596 $ 183.498 $ 47,903 35%
PSOo'lll1itre 9J Mlnlh
2fJJl ani ani QawIim12fJJl anlJldl.B \IS ~
Jldl.B ~ Jldl.B $ % $ %
..131 $ 68,ffi3 $ 33,888 $ 119,2>1 $ 5O.m T.J'I. $ as.:E3 2>1.9''f<
Rb $ 00,743 $ 32,ffil 64,247 (2.400) 40/. 31,397 9i6''f<
Ivtr $ 72.fm $ :E.767 - - - - -
P{r $ 71,885 $ 35.381 - - - - -
M1y $ 69,400 $ 34,158 - - - - -
JJ1 $ 84,S58 $ 41,623 - - - - -
jj $ 81,970 $ 40,345 - - - - -
Ag $ 95,835 $ 47,169 - - - - -
~ $ 101,171 $ 49,7$ - - - - -
ill $ 79.m2 $ ~012 - - - - -
N:w $ 84,!:D7 $ 41,$3 - - - - -
[k $ 83,397 $ 41,047 - - - - -
T~ $ 1:E.!m $ 00,738 $ 183,400 $ 47,003 FI.$ 116.700 175.0'1.
Pnul T~ $ !ID,<B1 $ 472.filJ
Jail Services
Jail Services through February is $9K and is above the year-to-date budget estimate of $7K by $2K. The $9K consists of
payments made to the City ofTukwila ($7K) and the City of Enumclaw ($2K).
Court
Municipal Court year-to--date expenditures of $231K is $38K or 19% above estimates. The unfavorable variance in
expenditures is primarily due to employee payout in February of 2008. Excluding probation through February revenue is up
$91K or 63% compared to year-to-date 2007. The revenue increased is due to the court increasing the number of judges in
May of2007 from one to two, which increased the number of cases/filings.
Traffic and non-parking fines total $171K and is $89K or 108% above year-to-date 2007. Parking infractions total $16K and
is $7K or 81% above year-to-date 2007. DUI and other misdemeanors total $12K and is $OK or 4% below year-to-date 2007.
Criminal costs total $14K and is $IIK or 378% above year-to-date 2007. Criminal Conviction Fees total $4K and is below
year-to-date 2007 by less than $IK.
COURT REVENUE
Through FebI'lJaty
. 2007 2008 2008 Cha1Ige fn1m. 2007 2008 ACtual vsE3ildget
Moflth ~, Q~ Actual SVar "VII/" SVIl/" "Var
January $ 74,292 $ 53,642 $ 115.885 $ 41,593 56.0% $ 62.243 116.0"1:
FebnJaty 71,310 56,949 120.754 49.444 69.3% 63,805 112.0"1:
March 92,354 73,756 - - - - -
April 77,7'ZT 67,770 - - - - -
May 79,456 63,454 - - - - -
June 96,805 77.310 - - - . -
July 90.014 71,887 - - - -
August 97,385 77.773 - - - - -
September 101,982 81.444 - - - - -
October 122,605 97.917 - - - - -
November 120,895 96.567 - - - -
December 90,603 72.357 - - - - -
Subtotal $ 145,601 $ 110,591 $ 236,639 $ 91,037 62.5% 126,048 114.0%
Probation SI/CS 13.125 14.509 15,536 2,411 18.4% 1,027 7.1%
YTD Total $ 158,726 $ 125,099 $ 252,175 $ 93,448 58.9".4 127,076 101.6%
Annual Total $1,217,062 $998,825 na na na na
COURT REVENUE
By Category Th'oUllh!':!lb....al I.........
2007 2008 I..... Change.". 0/If2f1P7
. Actual Actu.al .....$Var "Var
ivil Penalties S 1.583 S 3.325 $ 1,742 110.0%
raffic & Non-Parking 82.080 170.621 88.541 107.9%
Parking Infractions 8.997 16,283 7.285 81.0%
DUI & Other Misd 12.375 11.889 (486) -3.9%
riminal Traffic Misd 8,722 369 (8.353) -95.8%
riminal Costs 3,017 14,431 11,414 378.3%
Interest I Other I Mise 11.684 7.697 (3,987) -34.1%
riminal Cony Fees 4.368 3,739 (629) -14.4%
Shared Court Costs 2.449 35 (2,413) -98.6%
Services & Charges 10.326 8.249 (2,077) -20.1%
Subtotal $ 145,601 $ 236,639 $ 91,037 62.5%
Probation Services 13.125 15,536 2.411 18.4%
YTD Total $ 158,726 $ 252,175 $ 93,448 58.9%
, Criminal costs Include sc,eener fees.
73
7
Parks & Recreation
Overall parks operations expenditures through February total $507K, which is $llK or 2% above the year-to-date budget of
$496K. Dumas Bay Centre revenues and expenditures are both above budget while Knutzen Family Theatre revenues are
below budget and expenditures are above budget.
The table below is a comparison of budgeted versus actual subsidy and recovery ratio by program.
GENERAL RECREATION & CULTURAL. SERVICE PROGRAMS AND DUMAS BAY CENTRE PERFORMANCE
Year to bate Through February20()8
Bw:fg~t Actual
Recovery Recovery Variance
Program Revenue Expend Subsidy Ratio Revenue Expend Subsidy Ra6a SQMi(iy
GENERAL. RECREATION
Steel lake Aquatics 2,000 20,360 18,360 9.8% - - 0 n1a 18,360
Arts & Special Events 93,000 255,858 162,858 36.3% 28,866 20,067 (8,799) 143.8% 171,657
Youth Athletics 42,450 178,612 136,162 23.8% - 9,152 9,152 n/a 127,010
Adult Athletics 203,875 143,070 (60,805) 142.5% 7,080 13,396 6,316 52.9% (67,120
Community Recreation 124,000 147,313 23,313 84.2% 24,184 12,330 (11,855) 196.1% 35,167
Recreation Inc 48,850 63,966 15.116 76.4% 9,474 13,044 3,570 72.6% 11,546
Youth Commission 500 1,800 1,300 27.8% 58 58 n1a 1,242
Red, White & Blue' 21,500 41,550 20,050 51.7% - - 0 n/a 20,050
Senior Services 58,740 111,227 52,487 52.8% 2,342 8,445 6,103 27.7% 46,384
Subtotal $ 594,915 $ 963,755 $ 368,840 61.7% $ 71,946 $ 76,491 $ 4,545 94.1% $ 364,296
Administration - 326,766 326,766 n1a - 44,216 44,216 n1a 282,550
TOTAL GENERAl RECREATION $ 594,915 $ 1,290,522 $ 695,607 46.1% $ 71,946 $ 120,708 $48,761 59.6% $646,846
TOTAL FW COMMUNITY CENTER $ 1,663,407 $ 1,901,761 $ 238;354 87.5% $ 212,450 $ 265,967 $ 53,518 79.9% $184,836
DUMAS BAY CENTRE
Dumas Bay Centre 630,711 605,828 (24,883) 104.1% 71,422 78,246 6,824 91.3% (31.707
Knutzen Family Theatre 75,380 248,524 173,144 30.3% 12,620 35,620 23,000 35.4% 150,144
! TOTAL DUMAS BAY CENTRE
Arts Commission"
GRAND TOTAL
General Recreation and Cultural Services
Direct program expenditures total $76K or 7.9% of the total annual budget of $964K not including indirect costs. Including
indirect administration costs, recreation expenditures total $l21K and are 9.4% of the total annual budget of $1.29M.
Recreation fees total $72K and are 12.1% of the total annual budget of$595K. Recreation fees have recovered 94.1 % of direct
program costs and is 32.4% above the annual budgeted recovery ratio of 61. 7%. Considering indirect administration costs, the
recovery ratio is reduced to 59.6% or 13.5% above the annual budgeted recovery ratio of 46.1 %.
General recreation fitness programs are expected to decline as a result of the opening of Federal Way Corrununity Center.
Dumas Bav Centre
Dumas Bay Centre operating revenue of$7lK is above by $27K or 59% compared to year to date budget of$45K. Operating
expenditures through February total $78K., which is $IK or 1.6% below the year to date budget of$79K. Dumas Bay Centre
has recovered 91.3% of its operating expenses.
Knutzen Familv Theatre
Operating revenue of $13K is below year to date budget of $23K by $lOK or 44%. Operating expenditures through February
total $36K, which is $5K or 17.1% above the year to date budget of $30K. Knutzen Theatre has recovered 35.4% of its
operating expenses.
74
8
Federal Way Community Center
The Federal Way Community Center Fund was established as a special revenue fund supported by user fees and designated
utility tax transfer. The facility opened early March with a grand opening on March 31, 2007. '
The operating revenue budget
includes $1.7M in user fees/program
revenue and $528K in utility tax
subsidy. Through February,
operating revenues total $212K and is
$65K or 23% below YTO
projections.
Through February, operating
expenditures total $266K and is $51 K
or 16% below YTO budget estimates.
Federal Way Community Center has
recovered 80% of operating
expenditures compared to the
budgeted recovery ratio of 87%.
Other Departmental Variances
City Council year-to-date
expenditures total $122K is $40K
below estimate mainly due to the
decrease in Association Oues
expenditure compared to 2007.
City Manager year-to-date
expenditures of $285K is below
year-to-date budget by $ I 32K mainly
due to the decrease in expenditures in
various line items related to salaries
and benefits.
Economic Development year-to-date
expenditures of $39K is below year-
to-date budget of $44K mainly due to
the timing of payments.
Federal Way
Community Center
2008
YTO
Budget
$ %
Variance
Annual
Budget
YTO
Actual
i
-~_.- -'-.........-..---....---...-..-+.. ,---'.'- .--....,'- n' __.. _~~"___'_ ._.....~_ _ __ ._ _____no.'.___ . _._..._+_" ________...,,_..___'_m_..._
Revenues i
-AdOlssklns----.---.- ... ........- $.1,1~3,4~!:t $- .1~!:?3~:trT63:~~_ .!:.._~4,8~t=.:=~1y7%
Y oulhAthletlCProg'rarrs.. . . __. . ..1.~.~O~.~. j...... . ~:~~7_L_._.._._....::. __.._. (3,l~~Lf-.__.__~.~~~~k
Open GY-miiiidoorAayground'.' .... .-1..:~~q..L._.__ ..~!._L._.___:_.___ (167~_._.:22.~~~
'Aquatics Programs-Lesso~~~~s~~':___1~8~~!l..L_~~~!..L_.__ 9,7~_ ....... (14,886) L-~
Olildcare Fees 10,000 i 1,667 i .. (1,667)! -100.0%
'Hness Training Fees-.-.n'M_~' ....1.. -'.i5:boor' M_.. .8:3I-:--....-998- -.-.----165!-.-.--19.8%
____.,..,_._..,..,..^O'._~._~,^__.....^ ",.~_.,._...',,,,...~__._,~,.~_,,...~,__,.~_...:,-.~.__.,_~ ,__~~.___.._._
~~;~~~~~iapLanes"" . "'--3~:~%l---'i.~+'---'"3~01i "'..-"'i~:::~~--.-~-m
--.-.-.-..--------.--.-.......-.-....... .. ..................;..... .........--...,.-..-. ...--.-.-. .......--------l---.-._=
. ReI1tals .____... '__'...... ... ......~1.~~~.9...L......3_5.!.500.L. 27 ~~~~ ....._.!!.911) '--_____..:32.3%
Werchandise Sales ..____.___..__..~1~~~..L.___3,50~_L....-?:?75 __~4751... 127.8%
~':5sionsNending .__...___.M_.~:.OOO J..___~,.~67 .j._____..__:. .. (3,167)1 .._.:100.0%
nterest Earnings/Other Msc Revenues --.--..--=-!-----,..::..l....~- _~L___~a
Total Revenue ___ _!~~.'40~..f---.377.235_~1~~ (64.785)1 .~~
ExPI!riditures.----"-.~~~~~:::-. ...~~=..-,.=t=.__._=-=..,t.___..__=: ..==~~=~=t=..=,~.=:=
-~rsonneICOSls-=.=..:.-.,...._..._ .......~~2}.3c~~.~L-3~~c~~1_~90,332.. __~06~___..2~
. ~=r~k:es.&a;arges.....---...--..-...-.1~H~+-. ---~H~}~-- ~~:~~ -----~: ::~ ~--.-~~~
ntergovernrrental =~__-=--====~:.:=_....}.i~="[===_333t. 1,015 (682)1 ..~~
Capital ._ ......__~?,OOO 1.___ 3,667 i . . 3,667 100.0%
nternal Serv~~ Olarges _.,,_..____.. ~____.._1..1..~~~__L____.~:~22 i _ 19,92~ ____..@ ___. O~~
Total Expenditures .,.._ ___!~!!.!~t_..216,960 + 26~~ __....!i0.993 16.1%
----..---.--.---.------------....-.-.. .........-.....--.--..L..-....-----..~_._____.__ --.-.--..-._.________
~erati~g Rev Over ~l~der ~~L__J~~~~--Q~!.~~l+--!~~~ _..J~';~~!j-.._.~
_.N. ______,____._.___, ~-___^_,N,____.._.__l___.__.___.._L_~_____,__..___~^' _____.__--L.._______._
Other Sources i i I
Transfer ~. from utax.Fund=..=-~=.==-.==~.52_~~ 1..==~~i~:L=:..=.=:. ::=~-(88.~~-.---:.i'oo:!l~
Total Other Sources .._. .~.~~~!~~J..._.!~~s.a_L.-__.:... _~~~~____:.1.~.0%
___"_~__.""___,_..".._H_"__~_..,,_"'_._..__,,._,.,_.__,_ 0'__ "",-,_. --.-.,-~.-.t..._.-.'._H'-"..-.~_.._...-.o~..,---...--.__.__.~__,..., ..,_,~.,~O"_,_U___~'l......-.-...-__~'H_
Other Uses i i i
==~n~~~~i~~~ts~~.~=~=:=.=~~ .--~~-~.~.:~[~~=--:.~~.:T.=~:~=.-~~. ~==~=:~=-.=~l=.::.:.=::=-.JJ
--.--.-.-----....---....----........-.. -...... ._.._....L__._".__._.__."..L.......__~._ -.--------L..-_____
Net Income 289,994! 48,332 i (53.518) (101.85O)! -210.7%
-.-----..~---.,---_.,-:==,~~~="~~~-~~~ ~~=~~.~:~=~=-J~~=~~=~L~~~.~==~ ----~=-t, ~.-~~=~---~=
Beginning Balance 239,10.!l...___.:t..____-=-.. i n/~
Ending Balance $ 529,095 I $ 48,332 i $ (53,518) $ (101.850)1 -210.7%
Management Services year-to-date
expenditures of$306K is $7K above estimate mainly due to hiring consultant for infrastructure reporting.
Law year-to-date expenditures total $226K and is $14K above estimates mainly due to the increase in professional services and
salarieslbenefits.
75
9
CASH & lNVESTMENTS
Overall investment interest year to date have decreased by $25K. The unfavorable variance is due to the decrease in interest
rates for the State Investment Pool and the Municipal Investor Account. Both interest rates have decreased (on average) 5.25%
to 4.08% and 5.38% to 3.69% respectively.
The following table shows the in-house investment activity schedule and their related yields and comparison to benchmark. Per
policy, the basis used by the City to determine whether market yields are being achieved is the range between the average 6-
month US Treasury Bill (2.71%) and the State Investment Pool (3.79%). The average portfolio yield is 3.63% and falls
between the two benchmarks.
Investment Schedule
FelmJJflY 2()()[J
Settlement /irllestlnenl Maturity Yieldlo
Tvpe Date Par Amoun.t Cost Date Maturity
AQency - FHLB 3133XLJ53 08/10/07 $1.000,000 $1.008.623 7/212009 5.29%
US T -BOND 912828LP 08/10/07 $1.000,000 $1.012.723 4/30/2009 4.50%
Subtotal In-House Investments $2,000,000 $2,021,346
Average Maturity 76
Average Yield to Maturity 4.92%
Average Yield - 6 mo. T-BiII 2.71%
Municipal Investor Account $27.630,451 1 day 3.30%
State Investment Pool $29,484,113 1 day 3.79%
Average Portfolio Maturitv & Yield 4 3.63%
T9l,I...f~"e~ful~ri~ .. '.$:$~i13~;~~.g. ...
The total invested balance at the end of February is $59.14M, which includes $29.48M in the state investment pool, $2.02M in-
house investment purchases, and $27.63M in the Municipal Investor Accounts. The state pool is composed of repurchase
agreements (25.51%), agency coupons (8.70%), Interest Bearing bank deposit (5.71%), agency floating rate notes (13.89%),
agency variable rate notes (.95%), discount notes (36.55%) and certificates of deposit (8.69%). The City's total investment
portfolio is made up of50% State Pool, 3% In-House Investments, and 47% Municipal Investors Accounts.
Total Portfolio by Category
February 29, 2008
Interest Rates Comparison
For the Month of February 2008
h-House
hvestrrenls
3%
MmiCipal
hvestors
Accounts
47%
6.0%
5.0%
I!II 6 Month T-Bill
4.0%
. State Investment Pool
3.0%
o In-house Investment
State
hvestrrent
Pool 50%
2.0%
1.0%
m MJnicipallnvestor
Account
. Portfolio Average
0.0%
2003 2004 2005 2006 2007 2008
76
10
COUNCIL MEETING DATE: April!, 2008
ITEM #:
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: Multi-family Housing Limited Property Tax Exemption Agreement
POLICY QUESTION: Should the City Council authorize the City Manager to execute a Multi-family Housing Limited
Property Tax Exemption Agreement with United Properties-Symphony, LLC?
COMMITTEE: FINANCE/ECONOMIC DEVELOPMENTIREGlONAL AFFAIRS
MEETING DATE: 3/25/08
CATEGORY:
o Consent
o City Council Business
o Ordinance
~ Resolution
o
o
Public Hearing
Other
STAFF REPORT By: ISAAC PLANNING MANAGER DEPT: CDS
On February 18,2003, the City Council passed Ordinance No. 03-438 amending Chapter 14 of the FWCC to allow for a property
tax exemption incentive for the development of multi-family housing in the City Center Core ("CC-C") and City Center Frame
("CC-F") zones ("Residential Targeted Areas"). The City's tax exemption program excludes multi-family residential
improvements from collection of property taxes for a period of ten years, contingent upon meeting certain criteria, including the
provision of twenty percent of total units as affordable units. The program requires applicants to enter into a Multi-family
Housing Limited Property Tax Exemption Agreement with the City regarding the tenns and conditions of the Project. FWCC
14-236(4)(d) requires Council approval of the Agreement.
On December II, 2007, the City entered into a Real Property Purchase and Sale Agreement (the "P&SA") with United
Properties-Symphony, LLC regarding the development of 4 mixed use residential and retail buildings, an associated parking
garage, and a public park (the "Project") in a Residential Targeted Area. The Project is eligible for a partial property tax
exemption under FWCC Chapter 14, Article VII and RCW 84.14.
On December 21,2007, United Properties submitted a Multi-family Tax Exemption Application to the City.. On March 4,2008,
the Director of the Community Development Services Department approved United Properties' application based on the criteria
set forth in FWCC 14-236. The next step in the process is for City Council to approve the attached resolution and Agreement.
Attachments: Proposed Resolution and Agreement.
Options Considered:
I. Recommend approval of the proposed resolution and Agreement and forward to full Council at the April I, 2008 City
Council meeting
2. Modify the proposed resolution &/or Agreement and forward to full Council at the April I, 2008 City Council meeting
_._..}~.._Q.9..~9.~..<Ippr.o.Y<;:!!1<;:PE9.P()~<;:~E<:~91~~ig~.<Il.l:~.~.~~~l!.!<!l!!_ .._..__....... .... ...._........ _.. _..................... ---........--...
STAFF RECOMMENDATION: Approve 0 tion I.
CITY MANAGER ApPROVAL:
DIRECTOR ApPROVAL:
&1J+
Committee
Council
Council
COMMITTEE RECOMMENDATION:
Committee Chair
Committee Member
Committee Member
PROPOSED COUNCIL MOTION: "[move approval of Option
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
o APPROVED
o DENIED
o TABLEDffiEFERRED/NO ACTION
o MOVED TO SECOND READING (ordinances only)
REVISED - 02/06/2006
COUNCIL BILL #
1sT reading
Enactment reading
ORDINANCE #
RESOLUTION #
K:\Agenda !tem\FHSRAC\2008\Property Tax Exemption Contract.doc
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, AUTHORIZING THE CITY
MANAGER TO EXECUTE A MUL TI-F AMIL Y HOUSING
LIMITED PROPERTY TAX EXEMPTION AGREEMENT
WITH UNITED PROPERTIES-SYMPHONY, LLC
WHEREAS, the City has, pursuant to Chapter 84.14 of the Revised Code of Washington
("RCW"), designated a City Center Residential Target Area for the allowance of a limited property
tax exemption for new multi-family residential housing; and
WHEREAS, the City has, through Ordinance No. 03-438, enacted a program whereby
property owners in the Residential Target Area may qualifY for a Final Certificate of Tax Exemption
which certifies to the King County Assessor/Treasures that the owner is eligible to receive a limited
property tax exemption; and
WHEREAS, on December 11, 2007, the City and United Properties-Symphony, LLC,
("United Properties") entered into a Real Property Purchase and Sale Agreement ("Agreement")
regarding real property located at 31600 20th Avenue South, Federal Way, W A, Tax Parcel No. 09-
21049021 (the "Property"); and
WHEREAS, the Property is located in the City's Residential Target Area; and
WHEREAS, the Agreement provides that United Properties intends to divide the Property
into five (5) separate parcels and construct one mixed use residential and retail tower on each of the
four parcels and a public park on the fifth parcel (the "Project"); and
WHEREAS, the Agreement provides that the Project will consist of approximately 900
RES #
, Page 1
residential units, of which a minimum of approximately 650 housing units shall be "ownership"
units; and
WHEREAS, these units will provide housing for individuals and small families; and
WHEREAS, on December 21, 2007, United Properties submitted a Multi-family Tax
Exemption Application (the "Application") to the City; and
WHEREAS, the Application provides that a minimum of 20% of the total units will be
affordable to moderate-income households; and
WHEREAS, the Community Development Services Department has determined that the
Project, if developed as proposed, will meet the requirements for the exemption; and
WHEREAS, on March 4, 2008, the Director of the Community Development Services
Department approved United Properties' Application based on the criteria set forth in FWCC 14-
236; and
WHEREAS, the City's tax exemption program requires United Properties to enter into an
agreement with the City regarding the terms and conditions of the Project.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. Authorization to Execute Multi-Family Housing Limited Property Tax Exemption
Agreement. That the City Manager of the City of Federal Way is hereby authorized to execute a
Multi-Family Housing Limited Property Tax Exemption Agreement with United Properties,
substantially in the form of the agreement attached hereto as Exhibit A, which agreement shall
provide for the development of the above-described Project in accord with certain terms and
conditions, in consideration for which the Property developed with the new multi-family housing
RES #
, Page 2
will be certified by the City as qualifying for a ten-year limited property tax exemption, pursuant to
Chapter 84.14 RCW.
Section 2. Severability. If any section, sentence, clause or phrase of this resolution should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause or phrase of this resolution.
Section 3. Corrections. The City Clerk and the codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener/clerical errors, references, resolution numbering, section/subsection numbers and any
references thereto.
Section 4. Ratification. Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Section 5. Effective Date. This resolution shall be effective immediately upon passage by
the Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this day of , 2008.
CITY OF FEDERAL WAY
MA YOR, JACK DOVEY
RES #
, Page 3
ATTEST:
CITY CLERK, LAURA HATHA WAY, CMC
APPROVED AS TO FORM:
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
RESOLUTION NO.:
K:\Resolution\2008\Property Tax Exemption Contract.doc
RES #
, Page 4
MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT
THIS MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION
AGREEMENT (herein this "Agreement") is entered into as of the date of mutual execution
hereof, by and between UNITED PROPERTIES - SYMPHONY, LLC, a Washington limited
liability company (herein the "Applicant"), and the CITY OF FEDERAL WAY, a Washington
municipal corporation (herein the "City") (collectively referred to as the "Parties") with regard to
the following.
RECITALS
A. The Applicant has applied for a limited property tax exemption as provided for in
Chapter 84.14 RCW and Federal Way City Code (FWCC) Chapter 14, Article VII for
multifamily residential housing in the Residential Targeted Area, as designated in FWCC
14-232, and the Director of Community Development of the City has approved the
application; and
B. The Applicant has submitted to the City preliminary site plans and floor plans for new
multifamily residential housing to be constructed as part of a Phased, mixed-use project
(the "Proiect") to be located at 31600 20th Avenue South, Federal Way, Washington, and
which is legally described on Exhibit A hereto (herein the "Property"). The City has
determined that the Property is located in the urban area of the City and zoned CC-C;
such zoning is within the designated residential targeted area as defined in FWCC 14-
231(6) and FWCC 14-232; and
C. The City is the current owner of the Property. The Applicant has entered into a Purchase
and Sale Agreement (the "P&SA") with the City dated effective December 11,2007, for
the purchase, sale and development of the Property; and
D, No existing rental housing building that contained four or more occupied dwelling units
was demolished on the Property within 12 months prior to the Applicant's submission of
its application for limited property tax exemption; and
E. The Parties contemplate that the Project will incorporate a binding site plan to divide the
Property into five parcels and that Buyer shall thereafter develop the Project in four
Phases: (i) Phase 1 will consist of the construction of one of four mixed-use towers on
one of the parcels within the Project, and a portion of the parking garage with enough
parking to satisfy the minimrun parking requirements for the first tower, as well as a
public park on one of the parcels (herein "Svmphony Park"), which shall be dedicated to
the City pursuant to the P&SA, and (ii) Phase 2, Phase 3 and Phase 4 will each consist of
the construction of one of the remaining towers on other parcels platted from the
Property, and the construction of an additional portion of the parking garage. Such
construction will be accomplished in accordance with the terms and conditions of the
P&SA for the Property. Each of the Phases of the Project (Phases 1 through 4) will be
referred to herein individually as a "Phase".
The four towers to be constructed are identified as: (i) "Tower A" (the structure to be
located upon the parcel platted from the south-west comer of the Property), and
-1-
K:\City Manager-CM\Economic Development\AMC\Symphony\Prop. Tax Exemption Contract 3.21.08.DOC
- -~ - ~ --- --- - ---. ~ -- "-~'~'----~-'-"-";'-"':'~:":::~".J2':':
(ii) "Tower B" (the structure to be located upon the parcel platted from the south-east
comer of the Property), and (iii) "Tower C" (the structure to be located upon the parcel
platted from the northwest comer of the Property), and (iv) "Tower D" (the structure to
be located upon the parcel platted from the northeast comer of the Property), The tower
to be constructed during each Phase may be adjusted or modified as mutually agreed
upon for the purposes of facilitating this Agreement; and
F. The City recognizes that the Project Phases will require approximately seven (7) years to
complete, due to external market forces that compel phasing rather than complet~, up-
front project financing. Therefore, the Applicant will not complete the entire Project
within three years of approval of this Agreement. The City anticipates that it will issue
multiple extension(s) of the Conditional Certificate of Acceptance of Tax Exemption as
defined in FWCC 14-236(d) (the "Conditional Certificate") following expiration of the
initial three-year approval for those Phases that have not been substantially completed
within the three year period. Provided, the Applicant must demonstrate fulfillment of the
extension criteria of FWCC 14-238 for each such Phase. Furthermore, the City
acknowledges that the ability to secure only phased financing to construct the Project
constitutes "market forces outside the control of the Applicant" with regard to completion
ofthe Project within the initial three-year approval period; and
G. The Applicant has submitted a complete application for exemption under FWCC 14-235
and RCW 84.14.050 and has committed to provide a minimum of fifty percent (50%) of
the space for permanent residential occupancy (the "Multifamily Housing Componentn);
and
H. As defined in RCW 84.14,010, the Applicant agrees that: (1) for any Phase of the Project
that is intended by Applicant exclusively for rental units or a combination of rental and
owner occupancy units, Applicant [or its successor] shall rent or sell at least twenty
percent (20%) of the multifamily housing units within each such Phase of the Project as
affordable housing units to low and moderate-income households, and (2) for any Phase
of the Project that is intended by Applicant [or its successor] exclusively for owner
occupancy, Applicant shall sell at least twenty percent (20%) of the multifamily housing
units within each such Phase of the Project as affordable housing units to moderate-
income households; and
I. The City has determined that each Phase of the Project will, if completed, occupied, and
owned or leased substantially as proposed, satisfy the requirements for a Final Certificate
of Tax Exemption as defined in FWCC 14-239; and
J. The Parties understand and agree that the Applicant intends to create condominium units
designated for separate ownership within the Project and that the rights, duties, and
obligations of this Agreement and the Conditional Certificate and Final Certificates of
Tax Exemption will benefit each such condominium unit and will be assigned to each of
the successor owners of each condominium unit. Further, the Applicant intends to
include within the Condominium Declaration an obligation for each successor owner of
each condominium unit to designate a third party to undertake to comply with the
continuing obligations of this Agreement, including by way of example and not
-2-
K:\City Manager-CM\Economic Development\AMC\Symphony\Prop. Tax Exemption Contract 3.21.08.DOC
. -.- - --~ -_.- -_.- - _.~ -'., .....~~~" ,'., '~:~,..-.,:..'",:';~:'~":'-,,,-~..::,:;,::,
limitation, the reporting and certification requirements pursuant to Section 5 herein. The
City agrees that in such circumstances, it will accept that report and certification on
behalf of the owners of the condominium units; and
K, The Parties understand and agree that the Applicant intends to create rental units within
the Project. The rights, duties, and obligations of this Agreement and the Conditional
Certificate and Final Certificate of Tax Exemption for the Tower containing the rental
units will continue to be the responsibility of the Applicant until such time as the Tower
containing the rental units are sold, at which time the rights, duties, and obligations of
this Agreement and the Final Certificate of Tax Exemption will be assigned to each ofthe
successor owners of the Tower containing the rental units; and
L. The Parties understand and agree that tax exemption for each Phase of the Project shall
be for a period of ten years beginning January 1st of the year immediately following the
calendar year of issuance of the Final Certificate of Tax Exemption for the Phase, except
that the tax exemption shall be ended immediately upon cancellation for cause as
specified in FWCC 14-241.
NOW, THEREFORE, in consideration of the mutual promises herein, the City and the
Applicant do mutually agree as follows:
1. Conditional Certificate of Acceptance of Tax Exemption.
The City agrees, upon execution of this Agreement following approval by resolution of
the City Council, to issue a Conditional Certificate for the Project, which Conditional Certificate
shall expire three (3) years from the date of approval of this Agreement by the Council;
provided, the Director may grant extensions the Conditional Certificate for multiple periods of
two (2) years as specified in FWCC 14-238(a). The City understands that Applicant may transfer
ownership of all or a portion of the Project, and that the Conditional Certificate shall apply to the
Project in whole regardless of ownership. The Applicant understands and agrees that this
Agreement and the Conditional Certificate based thereon pertain to the Project complying with
the eligibility requirements of FWCC Chapter 14, Article VII and Chapter 84.14 RCW and that
in the event that a Phase ofthe Project ceases to comply with those requirements or conditions of
the land use or building permit approvals, this Agreement shall not be binding on the Parties as
to such non-complying Phase and any Conditional Certificate issued for such non-complying
Phase pursuant to this Agreement shall be cancelled in the manner specified in FWCC 14-241.
2. Agreement to Construct Multifamily Housing.
2.1 The Applicant agrees to construct the Project on the Property, including the
Multifamily Housing, substantially as described in the site plans, floor plans, and elevations
attached hereto, subject to such modifications thereto as may be required to comply with
applicable codes and ordinances, including the design review process and the terms of the P&
SA). The ,Project shall include approximately 900 residential units.
-3-
K:\City Manager-CM\Economic Development\AMC\Symphony\Prop. Tax Exemption Contract 3.21.08.DOC
. -'. -'. '-' -,~'-'-'--_."':"'-"-"",-_~_~_."",,,,"W"'~
2.2 The Applicant agrees to construct the Project on the Property, including the
Multifamily Housing, and to comply with all applicable zoning requirements, land use
regulations, and building and housing code requirements contained in the FWCC. The Applicant
further agrees that approval of this Agreement by the City Council, its execution by the Director
of Community Development, or issuance of a Conditional Certificate by the City pursuant to
FWCC 14-236 is for the sole purpose of authorizing issuance of a Final Certificate of Tax
Exemption for each Phase of the Project and in no way constitutes approval of proposed
improvements on the Property with respect to applicable provisions of the FWCC or obligates
the City to approve proposed improvements. Issuance of a Final Certificate of Tax Exemption
by the City pursuant to or under authority of this Agreement, FWCC Chapter 14, Article VII, or
Chapter 18.14 RCW, shall NOT constitute or be construed as a representation or warranty,
express or implied, by the City that such improvements comply with applicable laws and no
liability shall attach to the City, it officers and officials (elected and appointed), employees, or
agents with respect thereto.
2.3 The Applicant agrees that the Multifamily Housing Component of the Project will
be completed as soon as reasonably possible from the date of approval of this Agreement by the
Council; the parties contemplate that the Conditional Certificate will be extended by the Director
for cause as provided in FWCC 14-238 to accommodated the phased construction of the Project.
The Applicant has indicated a final Project completion date of approximately September 2014.
The City anticipates the issuance of extension(s) of the Conditional Certificate following
expiration of the initial three-year approval for those Phases that have not been completed by that
time, provided the Applicant demonstrates fulfillment of the extension criteria of FWCC 14-238.
Furthermore, the City acknowledges that the ability to secure only Phased financing to construct
this Phased Project constitutes "market forces outside the control of the Applicant" with regard
to completion of the Phases of the Project within the initial three-year approval period.
2.4 The Applicant agrees that (I) for any Phase of the Project that is intended by
Applicant exclusively for rental units or a combination of rental and owner occupancy units,
Applicant [or its successor] shall rent or sell at least twenty percent of the Multifamily Housing
units within each such Phase of the Project as affordable housing units to low and moderate-
income households as defined in RCW 84.14.010; and (2) for any Phase of the Project that is
intended by Applicant [or its successor] exclusively for owner occupancy, Applicant shall sell at
least twenty percent of the Multifamily Housing units within each such Phase of the Project as
affordable to moderate-income households as defined in RCW 84.14.010. The units in each
Phase of the Project shall continue to meet affordability requirements noted above for a period of
ten years following issuance of the Final Certificate of Tax Exemption for each such Phase.
3. Requirements for Final Certificate of Tax Exemption.
The Applicant may, upon completion of the Multifamily Housing Component of each
Phase of the Project and upon issuance by the City of a temporary or permanent certificate of
occupancy for that Phase, request a Final Certificate of Tax Exemption for any such Phase of the
Project as ,described in Section I of the Recitals. The request shall be in writing directed to the
City's Department of Community Development and at a minimum be accompanied by the
following:
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. - - - -~' - -' -'., '- '" - - ~. _ _ '~'._" _-:"~"_'a,."",,,.~...,,,,"''''''~'''';':
a. A statement of expenditures made with respect to each Multifamily Housing unit
and the total expenditures made with respect to the entire Project;
b. A description of the completed work and a statement of qualification for the
exemption;
c. Documentation that the work was completed within the required three-year period
or any authorized extensions and in compliance with the terms of this Agreement;
d. A fee in the amount of$50.00 to cover the City's administrative costs;
e. Any such further information that the Director of Community Development
deems necessary or useful to evaluate eligibility for the Final Certificate of Tax Exemption.
4, Agreement to Issue Final Certificate.
The City agrees to file a Final Certificate of Tax Exemption for each Phase of the Project
applied for with the King County Assessor within thirty (30) days of submission of all materials
required by Section 3 hereof, if the Applicant has:
a. Successfully completed the Multifamily Housing Component of such Phase in
accordance with the terms of this Agreement and FWCC Chapter 14, Article VII;
b. Filed a request for a Final Certificate of Tax Exemption with the Community
Development Department and submitted the materials described in Section 3 hereof;
c. Paid to the City a fee to cover the Assessor's administrative-costs as specified in
FWCC 14-239(b); and
d. Met all other requirements provided in FWCC 14-239 for issuance of the Final
Certificate of Tax Exemption.
5. Annual Certification/Report.
5.1 Within thirty (30) days after the first anniversary of the date the City filed the
Final Certificate of Tax Exemption for each Phase of the Project and each year thereafter for a
period often (10) years, the Applicant (or its successors) shall file a certification or declaration
with the Director of Community Development, verified upon oath or affirmation, with respect to
the accuracy of the information provided therein, cont~ining the following with regard to each
Phase:
i. A statement of the occupancy and vacancy of the Multifamily Housing
units durit;lg the previous year;
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ii. A certification that the Multifamily Housing units within the specified
Phase has not changed use since the date of filing of the Final Certificate of Tax Exemption, and
that such Phase continues to be in compliance with the contract with. the City and the
requirements of Chapter 14, Article VII of the FWCC; and
Ill. A description of any improvements or changes to the specified Phase of
the Project made after the filing of the Final Certificate or the previous certification; and
iv. Any such further information that the Director of Community
Development deems necessary or useful.
5.2 Pursuant to RCW 84.14.100, by December 31 of each year the City is required to
report annually to the Department of Community, Trade, and Economic Development certain
information related to the use and occupancy of each Phase of the Project. In order to facilitate
such reporting, the owner or assigned designee for each Phase agrees to file with the Director of
Community Development by no later than November 30th of each year during the duration of the
exemption, a certification or declaration verified upon oath or affirmation, with respect to the
accuracy of the information provided therein, containing the following.
i. The actual development cost of each multiunit housing produced within
the Phase for which the report is issued; and
ii. The total monthly rent or total sale amount of each unit of multiunit
housing produced within the Phase for which the report is issued; and
Ill. The income of each renter household at the time of initial occupancy and
the income of each initial purchaser of owner-occupied units of multiunit housing within the
Phase for which the report is issued at the time of purchase for each of the units receiving a tax
exemption and a summary of these figures.
6. No Violations for Duration of Exemption.
For the duration of the exemption granted under FWCC Chapter 14, Article VII, the
Applicant agrees that each Phase of the Property will have no violations of applicable zoning
requirements, land use regulations, and building code requirements contained in the FWCC for
which the Department of Community Development or its functional successor shall have issued
an order to cease activity (OTC), or notice of violation and order to correct (NOV) that are not
resolved by a voluntary correction agreement, vacation by the hearing examiner, or action of the
property owner in compliance with the applicable code requirements as determined by the
Director, within the time period for compliance provided within such aTC or NOV, and any
extension of the time period for compliance granted by the Director. The rights of one Phase
shall not be negatively affected by the failings or breaches of any duties owed or obligations to
be performed by any other Phase(s) of the Project.
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7. Notification of Change in Use.
The Applicant agrees to notify the Director of Community Development and the King
County Assessor within sixty (60) days if the Applicant intends to convert the Multifamily
Housing on the Property to another use, or if the owner intends to discontinue compliance with
the affordable housing requirements as described in RCW 84.14.020. The Applicant
acknowledges that such a change in use may result in cancellation of the tax exemption and
imposition of additional taxes, interest and penalty pursuant to State law.
8. Cancellation of Tax Exemption - Appeal.
8.1 The City reserves the right to cancel the Final Certificate of Tax Exemption for
any of the Phases of the Project if at any time the Multifamily Housingfor such Phase, no longer
complies with the terms of this Agreement or with the requirements of FWCC Chapter 14,
Article VII, or the use of the Phase is changed to a use that is other than residential or for any
other reason no longer qualifies for an exemption.
8.2 If the exemption as to a Phase of the Project is canceled for non-compliance, the
Applicant acknowledges that RCW 84,14.110 requires that an additional real property tax is to
be imposed in the amount of: (I) the difference between the tax paid and the tax that would have
been paid if it had included the value of the non-qualifying improvements, dated back to the date
that the improvements became non-qualifying; (2) a penalty of 20% of the difference calculated
under section (1) of this paragraph; and (3) interest at the statutory rate on delinquent property
taxes and penalties, calculated from the date the tax would have been due without penalty if the
improvements had been assessed without regard to the exemptions provided by Chapter 84,14
RCWand FWCC Chapter 14, Article VII. The Applicant acknowledges that, pursuant to RCW
84.14.110, any additional tax owed, together with interest and penalty, become a lien on the
Phase of the Property for which the exemption has been cancelled and attach at the time the
Property or portion of the Property is removed from multifamily use or the amenities no longer
meet applicable requirements, and that the lien has priority to and must be fully paid and
satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with
which the Property may become charged or liable. The Applicant further acknowledges that
RCW 84.14.110 provides that any such lien may be foreclosed in the manner provided by law for
foreclosure of liens for delinquent real property taxes.
8.3 Upon determining that a tax exemption for a Phase of the Project is to be
canceled, the Director, on behalf of the City Council, shall notify the property owner(s) of the
Phase by certified mail, return receipt requested. The property owner(s) may appeal the
determination in accordance with FWCC 14-241.
9. Amendments.
No modification of this Agreement shall be made unless mutually agreed upon by the
Parties in writing and unless in compliance with the provisions of FWCC 14-237 and Chapter
84.14 RCW. If the City Council amends FWCC 14, Article VII to extend the period of
eligibility for tax exemption, this Agreement may be amended to allow the same period of tax
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exemption. For example, as of the date of this Agreement, RCW 84, 14.020(1)(a)(ii)(b) presently
specifies that the period of eligibility is for twelve (12) years. If the provisions of FWCC 14,
Article VII is so amended to extend the term from ten (10) years to any period of longer
duration, this Agreement may be amended to provide for the longer period of eligibility for tax
exemption.
The provisions ofRCW 84.14.020(1)(a)(ii)(b) extend to the Applicant the right to apply
for an eight (8) year period of the tax exemption based upon the construction of Multifamily
Housing units in the Residential Targeted Area, as designated in FWCC 14-232. This eight-year
tax exemption is not dependent upon the sale or rental to either low or moderate-income
households. Therefore, in the event Applicant [or its successors] intends to sell or rent one or
more of the Multifamily Housing units in one or more Phases with the result that the Phase of the
Project in which such Multifamily Housing unit(s) is/are located, will cease to qualify for, or be
eligible for the tax exemption provided pursuant to this Agreement, Applicant [or its successors]
shall be entitled to convert the tax exemption applicable to such Phase of the Project from the tax
exemption provided pursuaIlt to this Agreement to the eight-year tax exemption under Chapter
84.14 RCW, or such other period established by State law and the FWCC. The ability to convert
to such shorter duration tax exemption period shall be conditioned upon Applicant [or its
successors] complying with all requirements for the eight-year tax exemption. The conversion of
the duration of the tax exemption shall require the parties to agree to an amendment to this
Agreement, which agreement shall not be unreasonably delayed or conditioned. As a condition
to such Amendment, Applicant [or its successors] shall notify the City prior to ceasing to be
eligible for the tax exemption provided pursuant to this Agreement.
10. Binding Effect.
The provisions, covenants, and conditions contained in this Agreement are binding upon
the Parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries;
provided that, as to each condominium unit created, the obligations herein shall be limited to the
individual ownership interest(s) created.
11. Recording of Agreement.
The Director shall cause to be recorded, or require the Applicant to record, in the real
property records of the King County Department of Records and Elections, this Agreement and
any other documents as will identify such terms and conditions of eligibility for exemption as the
Director deems appropriate for recording, including requirements under this chapter relating to
affordability.
12. Audits and Inspection of Records.
The Applicant understands and agrees that the City has the right to audit or review
appropriate records to ensure compliance with this Agreement and FWCC Chapter 14, Article
VII and to, perform evaluations of the effectiveness of the Multifamily Tax Exemption program.
The Applicant agrees to make appropriate records available for review or audit upon seven days'
written notice by the City.
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13. Incorporation of Recitals.
The Recitals to this Agreement are an integral part of the agreement between the parties
and are incorporated herein by this reference.
14, Headings.
The headings of the Articles, Sections and Paragraphs in this Agreement are inserted
solely for indexing and convenience and are not a part of and are not intended to amplify or
restrict the contents of the respective paragraphs or sections or to govern, limit or aid in the
construction of any term or provision hereof.
15. Notices.
All notices to be given pursuant to this Agreement shall be in writing and shall. be deemed
given when hand-delivered within normal business hours, when actually received by facsimile
transmission, or two business days after having been mailed, postage prepaid, to the parties hereto at
the addresses set forth below, or to such other place as a party may from time to time designate in
writing.
APPLICANT:
Primary
United Properties - Symphony, LLC
c/o Inslee Best
PO Box C-900 16
Bellevue, W A 98009
Phone: (604) 7363864 Fax: (604) 736 3811
Attn.: David Setton
Secondary
United Properties, Ltd.
2608 Granville Street, Suite 550
Vancouver, BC V6H 3V#
Phone: (604) 736 3864 Fax: (604) 736 3811
Attn: Director
CITY:
City of Federal Way
Department of Community Development Services
PO Box 9718
Federal Way, WA 98063-9718
Phone: (253) 8352611 Fax: (253) 835-2609
Attention: Director
16. Requirements Binding on Successors.
Th~ covenants, agreements, restrictions, and requirements contained herein shall run with
the land and be binding upon all subsequent owners, successors, and assigns of Applicant. This
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Agreement expires three (3) years from the date of approval of this Agreement by the Councilor
after any extension authorized under FWCC 14-238.
17. Indemnification.
The Applicant acknowledges that it is aware of the potential tax liability that may be
imposed if and when one or more Phases cease to be eligible for the incentive provided pursuant
to this Agreement, Such liability may include the imposition of additional real property tax,
penalties and interested pursuant to RCW 84,14.110. The Applicant, for itself [for so long as it
is the fee owner of any unit in the Phase that is subject to the additional property tax liability
pursuant to RCW 84.14.110], and the successors, designees, assigns, and all subsequent owners
of such Phase, shall protect, defend, indemnify and hold harmless the City, from and against any
and all third party claims, actions, causes of action, demands, damages, liabilities, losses, costs
and expenses ("Liability"), including reasonable attorney's fees and costs arising from any
mediation, arbitration and litigation (through all appeals), commenced due to a
determination that one or more Phases ceases to be eligible for the incentive provided pursuant to
this Agreement; provided, the Applicant's obligation under this Section [and that of its
successors, designees and assigns] shall not require such defense, protection or indemnification
from Liability that arises from the negligent, unlawful, erroneous or improper acts or omissions
by the City, its officers, officials, employees or agents that directly or indirectly results, causes or
initiates the imposition of the potential tax liability.
18. Attorneys' Fees.
In any controversy, claim or dispute arising out of, or relating to this Agreement or the
method and manner of performance thereof or the breach thereof, except as otherwise set forth in
Section 17, the prevailing party shall be entitled and awarded, in addition to any other relief, to a
reasonable sum as litigation expenses. If neither party wholly prevails, the party that
substantially prevails, shall be awarded a reasonable sum as litigation expenses.
19. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and with the same effect as if all parties hereto had signed the same
document. All such counterparts shall be construed together and shall constitute one instrument,
but in making proof hereof it shall only be necessary to produce one such counterpart. The
signature pages from such counterparts may be assembled together to form a single instrument
comprised of all pages of this Agreement and a complete set of all signature. The date upon
which the last of all of the parties have executed a counterpart of this Agreement shall be the
"date of mutual execution" hereof.
20. Severability.
In the event that.any term or clause of this Agreement conflicts with applicable law, such
conflict sliall not affect other terms of this Agreement which can be given effect without the
conflicting terms or clause, and to this end, the terms of the Agreement are declared to be
severable.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
of mutual execution hereof as indicated below.
CITY OF FEDERAL WAY, a political
subdivision of the State of Washington
NEAL BEETS, City Manager
Dated this _ day of March, 2008
ATTEST:
City Clerk, Laura Hathaway, CMC
APPROVED AS TO FORM:
City Attorney, Patricia A Richardson
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APPLICANT:
UNITED PROPERTIES-SYMPHONY,
LLC, a Washington limited liability company
By: DVS Symphony, Inc., a Washington
corporation
Its: Managing Member
By: David Setton, its President
Dated this _ day of March, 2008
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this day personally appeared before me DAVID SETTON, known me known to be the PRESIDENT of DVS
Symphony, Inc., a Washington corporation, the managing member of United Properties-Symphony, LLC 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
,2008.
(typed/printed name of notary)
Notary Public in and for the State of Washington.
My commission expires
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
ParcelS of the Federal Way Binding Site Plan Number BSP , as recorded under King County
Recording number 2008 , Records of King County, which Parcel is a portion of the
real property formally known as:
Lot 1, King County Short Plat Number 182027, according to the short plat recorded under recording number
84031407 S2,Records of King County
EXCEPT that portion condemned in King County Superior Court Cause Number 03-2-18100-SKNT for the
construction, operation and maintenance of the Regional Express Federal Way Transit Center and related
facilities,
AND EXCEPT that portion described as follows:
Beginning at the Southwest comer of said Lot 1; Thence along the West line of said Lot North 01120'/23" East
28.21 feet; thence parallel with the South line of said Lot South 88116'19" East, 413.S7 Feet to the East line of
said Lot; Thence along said East line South 01129'/00" West, 28.21 feet to the South line of said Lot; thence
along said South Line North 88116' 19" West, 413.50 feet to the Point of Beginning.
Also known as Parcel A of City of Federal Way Boundary Line Adjustment No BLA 06-106111-SU, Recorded
under recording Number 20061229900009
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