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Council PKT 06-03-2008 Regular AGENDA FEDERAL WAY CITY COUNCIL REGULAR MEETING Council Chambers - City Hall June 3,2008- 7:00 PM (www.cityofJederalway.com) ***** 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE · Todd Beamer Jr. ROTC 3. PRESENTATIONS · Swearing-in Ceremony for Police Officers · Certificates of Appointment: Diversity Commission, Human Services Commission & Parks and Recreation Commission. · Presidential Service Awards · Proclamation: Amateur Radio Week · City Manager Emerging Issues Introduction of New Employees Recess and Reception honoring Assistant City Manager Iwen Wang 4. CITIZEN COMMENT PLEASE COMPLETE THE PINK SUP & PRESENT TO THE CITY CLERK PRlOR TO SPEAKING. Citizens may address City Council at this time. When recognized by the Mayor, please come forward to the podium and state your name for the record. PLEASE LIMIT YOUR REMARKS TO THREE (3) MINUTES. The Mayor may interrupt citizen comments that continue too long. relate negatively to other individuals. or are otherwise inappropriate. 5. CONSENT AGENDA Items listed below have been previously reviewed by a Council Committee of three members and brought before full Council for approval; all items are enacted by one motion. Individual items may be removed by a Councilmember for separate discussion and subsequent motion. a. Minutes: Approval ofthe May 20,2008 Regular and Special Meetings b. Monthly Financial Report c. Vouchers d. Fleet Maintenance Contract Award e. Tourism Enhancement Grant Approval f. Final Draft Approval: City Center LIFT - Request for Concepts Vision Statement and Process g. Graham Short Plat Side Sewer Easement Across City Stormwater Tract L 6. CITY COUNCIL BUSINESS a. Butko Notice of Intention to Petition for Annexation 7. CITY COUNCIL REPORTS 8. CITY MANAGER REPORT 9. EXECUTIVE SESSION a. Potential Litigation pursuant to RCW 42.30.110(1 )(i) b. 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() ::. c- Cl Ei i::J ~ :::: ," ~ 0 ~ () (l:) ~. :::: ~ ~ C> ,~ ~ :;: '< '" ~ ~ ~ ;';1 " C)-i ~ -. <::>- ...... ~ -. (l:) '" ;';1 Cl ~ Z .., '" .., ~ ;';1 (l:) <::>- ~~ '" .., ~ ~~ ~ (l:) ~ -. .......... Vv trj ..<:::) Z N <:::) ~ ~ ~ 3 e.) The President's Council on Service and Civic Participation created the President's Volunteer Service A ward program as a way to thank and honor Americans who, by their demonstrated commitment and example, inspire other to engage in volunteer service. The President's Volunteer Service Award recognizes individuals, families, and groups that have achieved a certain standard - measured by the number of hours served over a 12-month period or cumulative hours earned over the course of a lifetime. Bob Dubos and Dan Goede, volunteers in the Greater Federal Way Emergency Management program have volunteered over 250 hours in such activities as: Emergency Operations Center drills and exercises Emergency Communications drills All Hazard Vehicle operations Shelter Operations Training And other emergency support activities and training. Their outstanding volunteer service has earned them the President's Silver Volunteer Service Award. COUNCIL MEETING DATE: June 3,2008 ITEM #: Sa CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: CITY COUNCIL MEETING MINUTES POLICY QUESTION: Should Council approve the draft minutes of the May 20, 2008 Special and Regular Meetings? COMMITTEE: Not Applicable MEETING DATE: Not Applicable CATEGORY: I:8J Consent D City Council Business D Ordinance D Resolution D D Public Hearing Other ~!~~~.~!.~~:I.'~Y.~_!.Y~~RP.!~~!.lb~~....___._.._._..__.........__.____.___._______.__..P. Attachments: Draft meeting minutes of the May 20,2008 Special and Regular City Council Meetings. DEPT:NotApplicable .........--.--..................---...-..---.....-.....-..........--.......-.-.-------..--.......--............... Options Considered: 1. Approve the minutes as presented. 2. Amend the minutes as necessary. STAFF RECOMMENDATION: Staff recommends approving the minutes as presented. CITY CLERK ApPROVAL: N/A DIRECTOR ApPROVAL: N/A Committee N/A Committee Council Council COMMITTEE RECOMMENDATION: Not Applicable PROPOSED COUNCIL MOTION: "I MOVE APPROVAL OF THE MINUTES AS PRESENTED". (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # I ST reading Enactment reading ORDINANCE # RESOLUTION # FEDERAL WAY CITY COUNCIL REGULAR MEETING Council Chambers - City Hall May 20, 2008-7:00 PM MINUTES (www.cityoffederalway.com) 1. CALL MEETING TO ORDER Mayor Dovey called the regular meeting to order at 7:02 PM. Councilmembers Burbidge, Duclos, Ferrell, Kochmar, Park and Deputy Mayor Faison present. 2. PLEDGE OF ALLEGIANCE Cub Scout Pack 366 led the flag salute. 3. PRESENTATIONS City Manager Emerging Issues Introduction of New Employees: City Manager Neal Beets introduced the new Court Administrator Rae Iwamoto and new Court Services Supervisor Cindy Roque. City Manager Beets also reviewed his proposal for Festival Management and asked for direction from the City Council. He stated that currently the City sponsors and assists with four community festivals which lack consistent, sustained coordination. He proposes consolidating all civic festivals that receive City assistance under one, large non-profit board of directors. Council directed this item be moved to the ParksIRecreation/Human Services/Public Safety Committee for more information/discussion. 4. CITIZEN COMMENT Joan Tabrum - spoke in support of the Performing Arts Center. Barbara Reid - spoke in support of the Performing Arts Center. Joann Piquette - spoke in support of the Performing Arts Center. Brian Davenport - spoke in support of the Performing Arts Center. Jim Kelly - spoke in support of the Performing Arts Center. Phil Wamba - spoke in support of the Performing Arts Center. Federal Way City Council Regular Meeting Minutes May 20, 2008 - Page 2 Mary Gates - spoke in support of the Performing Arts Center. Kathv Franklin - spoke in support of the Performing Arts Center. John Wilde - thanked the City Council for the invitation to have Cub Scout Pack 366 lead the flag salute. He also thanked the Police Department for visiting Pack 366 with their K-9 Unit. Bob Hitchcock - echoed the City Manager's proposal for Festival Management and stated that Festival Days has not been cancelled; it has just been postponed this year. 5. CONSENT AGENDA Items listed below have been previously reviewed by a Council Committee of three members and brought before fUll Council for approval; all items are enacted by one motion. Individual items may be removed by a Councilmember for separate discussion and subsequent motion. a. Minutes: Approval of the May 6,2008 Regular and Special Meetings b. Contract for FWCC Electronic Message Board Monument Sign c. Saghalie Park Soccer Field - Artificial Turf-Accept work by Atlas Tracks, Inc. d. West Hylebos Wetlands Trail Improvements - Accept work by Epic Construction e. 2008 Human Services Commission Work Plan f. Joint Interlocal Agreement regarding CDBG Program g. Ratification of 1 st Amendment to Valley Communication Center Governing Interlocal Agreement h. Veterans' Education and Training Program 1. Agreement between CFW and Puget Sound Educational Services District regarding funding for reinvesting in youth. J. Sterling Woods Final Plat Approval k. Neighborhood Traffic Safety Program Criteria Revisions 1. Emergency Generator Supply Contract - Bid Award MOTION: Deputy Mayor Faison moved approval of the Consent Agenda as presented. Councilmember Park second. The motion carried 7-0. 6. CITY COUNCIL BUSINESS a. City Commission Appointments: 1. Diversity Commission Councilmember Burbidge moved the appointments of Ron Walker, Chris Brown and Gregory Baruso to full terms on the Diversity Commission expiring May 31, 2011. Councilmember Kochmar second. The motion carried 7-0. Federal Way City Council Regular Meeting Minutes May 20, 2008 - Page 3 11. Parks and Recreation Commission MOTION: Councilmember Burbidge moved the appointments of Chris Hash and Fred Konkell to full terms on the Parks and Recreation Commission expiring April 30,2011. Councilmember Duclos second. The motion carried 7-0. 111. Human Services Commission MOTION: Councilmember Burbidge moved the appointment of Carol Moe to a full term on the Human Services Commission and the appointment of Joseph Choe as an alternate. Both terms expire January 31,2011. Councilmember Kochmar second. The motion carried 7-0. b. Selection of A WC Voting Delegates for June Conference MOTION: Mayor Dovey moved the appointment of himself and Councilmembers Kochmar and Burbidge as voting delegates for the Association of Washington Cities (AWe) Business Meeting. Councilmember Kochmar second. The motion carried 7-0. c. Citizen Survey This item was previously discussed at the Study Session held prior to the regular meeting. MOTION: Deputy Mayor Faison moved to proceed with the full citizen survey. Councilmember Duclos second. The motion carried 7-0. d. Performing Arts Center City Manager Beets stated the Council held a Study Session on May 6, 2008 to discuss the Performing Arts Center and the possible locations which include Truman High School and Paldo Wodd Plaza. The City has received a $500,000 grant from the State Legislature to cover design, engineering and pre-construction of a facility. He introduced Mr. Park, owner of Pal do World Plaza and Architect Spencer Alpert who presented conceptual drawings of a mixed use development that would include a performing arts center, convention center, hotel and residential/retail development. Mr. Beets went on to say the City needs to respond to the State Legislature if we plan on moving forward on the projects as the $500,000 needs to be committed by June 30, 2009. City Manager Beets stated direction from Council is needed as soon as possible regarding which site is the preferable site. He further stated that if the Truman High School site is selected, they will want use rights which have not been defined. He also noted the $500,000 grant is on a reimbursement basis; and suggested the Council vote on a Memorandum of Understanding (MOD) and direct staff to proceed with getting a deed for the land when the preferred site has been established. Federal Way City Council Regular Meeting Minutes May 20, 2008 - Page 4 Councilmember Burbidge thanked Mr. Park and Mr. Alpert for the conceptual drawings; and stated it helps the Council and citizens envision what can be developed. MOTION: Councilmember Duclos moved the following: Staff is hereby authorized and directed to proceed with the following next steps in the development of a Federal Way Performing Arts Center: a. Accept and enter into a contract with the State Department of Community Trade and Economic Development (DCTED) to utilize $500,000 in state funds (reimbursement basis) appropriated by the 2008Legislature for preconstruction activities the state funds related to a Federal Way Performing Arts Center ("the PAC"). b. Utilize $400,000 of the state funds towards a service contract for architectural and engineering services. Select the architectural and engineering services via an RFP process but not to proceed with specific design until the Development Agreement identified in paragraph 4 is reached; c. Utilize $100,000 of the state funds toward a contract for a PAC project manager who would be tasked with coordinating the efforts of the PAC architects and engineers and performing a series of other project duties as scoped by the City with input from a citizens committee; d. Work with the owners of the Paldo World Plaza and/or other prominent City Center sites to achieve first a Memorandum of Understanding (MOU) and ultimately a development agreement specifying how the PAC will be integrated within a private mixed use project. City staff will strive to execute an agreement that either makes land available for the PAC at no purchase cost to the City or that provides the City with long term use rights of the land. City Council authorizes the City Manager to execute a Memorandum of Understanding (MOU) that achieves the following objectives: o Permits City staff and contractors to enter the site(s) to conduct due diligence; o Provides the PAC will be developed on the site as either as a stand-alone facility or as part of a mixed-use development and if part of a mixed-use development will be developed in a phase that coincides with the City s timing for construction of the PAC; o Execution of an MOU will lead to good faith negotiations towards a development agreement by September 2008 for development of the PAC on the site as a stand-alone facility or part of a mixed-use development; and o Successor parties to the MOU will continue to be held to the MOU s obligations and responsibilities. e. Work with the 30th District state legislative delegation the Governor's office and other necessary legislative and caucus staff and interested stakeholders to obtain at least $10 million in state funding for the PAC. Federal Way City Council Regular Meeting Minutes May 20, 2008 - Page 5 f. Assist private citizens and non profit organizations in a capital fund raising effort focusing on PAC naming rights, construction grants, and the creation of an endowment fund from which interest earnings would be dedicated to covering PAC operating costs. g. Enter into a Memorandum of Understanding (MOU) with Federal Way Coalition of Performing Arts to apply by the May 23,2008 deadline for a Building for the Arts grant for the PAC and apply for other grants and awards that could potentially assist with financing the cost of construction or operation of the PAC. h. Report back to the Council at least on a quarterly basis about significant progress or impediments relating to the funding or construction of a PAC. Councilmember Kochmar second. The motion carried 7-0. 7. CITY COUNCIL REPORTS Councilmember Ferrell had no report this evening. Councilmember Kochmar announced a Town Hall Meeting with Congressman Adam Smith on May 28th at 7:00 pm which will be held at the Federal Way Community Center. Councilmember Duclos reported she was excited to announce the Multi-Service Center has recently received a grant for a at-risk youth job training program which will be based out of the Federal Way facility and will help many youth in our area with training and job opprotunities. She further reported on her attendance at regional committees. Councilmember Burbidge stated the next Parks, Recreation/Human ServicesIPublic Safety Committee meeting is scheduled for June 10, 2008 at 5:30 PM; and reported on her attendance at various regional committees. She also reported that both the youth and adult programs for Advancing Leadership are accepting applications, she encouraged anyone interested to contact herself directly or go to the web site for more information. Councilmember Park stated the next FinancelEconomic Development/Regional Affairs Committee meeting is scheduled for May 27,2008 at 5:30 PM and he will attend a King County Flood Control District meeting on May 28th. Deputy Mayor Faison reported he recently attended an A WC Resolutions Committee Meeting where they identified legislative priorities for the next legislative session. He also reportedo~ upcoming regional meetings. Mayor Dovey stated there will be a joint Council meeting with the City of Auburn on May 22, 2008 at the Federal Way Community Center beginning at 6:00pm and noted he will be attending the Suburban Cities meeting held on Wednesday on the topic of emergency management. 8. CITY MANAGER REPORT City Manager Beets had no report this evening and reminded Council there would be no Federal Way City Council Regular Meeting Minutes May 20, 2008 - Page 6 Executive Session tonight. 9. ADJOURNMENT Mayor Dovey adjourned the regular meeting at 8:29 PM. ATTEST: Laura K. Hathaway, City Clerk Approved by Council on: FEDERAL WAY CITY COUNCIL Council Chambers - City Hall May 20, 2008 Study Session/Special Meeting 5:30 PM MINUTES (www.cityoffederalway.com) .......................................................................... 1. CALL MEETING TO ORDER Mayor Dovey called the Special Meeting to order at 5:30 PM. Councilmembers Burbidge, Duclos, Ferrell, Kochmar, Park, and Deputy Mayor Faison present. 2. RETREAT ITEMS FOLLOW-UP DISCUSSION . Dumas Bay Conference Centre Parks, Recreation, and Cultural Services Director Donna Hanson reviewed several options for the Dumas Bay Conference Centre which include maintaining status quo, transitional overnight homeless center; non-profit office space, live-in artist colony and replacing the current building with a corporate retreat facility (with or without the Knutzen Family Theatre). Consensus was to direct staff continue to research into prepayment fees and the types of building repairs needed and comeback to Council at a later date with some definitive costs and recommendations. Council is inclined to pursue the first and last option. The time frame on this is not urgent; however, staff should get a building assessment done which will tell the Council how long the existing building systems will last. . Citizen Survey Community and Government Affairs Manager Linda Farmer reviewed three options for the citizen survey. The first option has all the questions originally presented; the second version is shortened and the third version is a customized version. Ms. Farmer reviewed the cost differences as well as the types of results the City would get with each version. She asked Council for direction on which version to use. Council agreed the original uncut version would be the most beneficial and the vote on the survey would take place at the regular meeting to follow. Federal Way City Council Special Meeting Minutes May 20, 2008 - Page 2 of 2 . Mayor Rotation Discussion City Attorney Pat Richardson reviewed three options: maintain status quo; ask voters to designate position #1 as the Mayor election by the citizens; or have the Mayor elected on a rotation basis upon criteria established in the Council Rules of Procedure. Councilmember Duclos stated this issue should only be pursued if it is brought about by the people. After discussion council consensus was at this time, this is a "non-issue" and they will maintain the status quo unless something warrants a change in the future. 3. ADJOURN Mayor Dovey adjourned the Special Meeting at 6:25 PM. ATTEST: Laura K. Hathaway, City Clerk Approved by Council on: COUNCIL MEETING DATE: June 3, 2008 ITEM #:~ .... ........._......................._.... ..........................M..M..........._..... CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: APRIL 2008 MONTHLY FINANCIAL REPORT POLICY QUESTION: Should the Council approve the April 2008 Monthly Financial Report? COMMITTEE: Finance, Economic Development & Regional Affairs Committee MEETING DATE: May 27, 2008 CATEGORY: [8] Consent D City Council Business D Ordinance D Resolution D D Public Hearing Other ~!~!_~.~!Q~!..!l.Y.~R?~~gg~~?'J:,)~~~~i~1.~~Jy~!. Attachments: · April 2008 Monthly Financial Report Options Considered: 1. Approve the April 2008 Monthly Financial Report as presented and forward to the June 3, 2008 Council Consent Agenda. DEPT: Finance 2. Deny approval of the April 2008 Monthly Financial Report and provide direction to staff. STAFF RECOMMENDATION: StafJrecommends approval of Option 1. DIRECTOR ApPROVAL: o ee -liu ~Olmci] CITY MANAGER ApPROV A COMMITTEE RECOMMENDATION : Forward approval of the April 2008 Monthly Financial Report to the June 3, 2008 City Council Consent Agenda. ~ - Eric Faison, Member PROPOSED COUNCIL MOTION: HI move approval of the April 2008 Monthly Financial Report. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o T ABLED/DEFERRED/NO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # CITYOF ,~ Federal Way April 2008 Monthly Financial Report GENERAL & STREET FUND OPERATIONS The overall operations of the combined General and Street Fund showed a negative result of $273K through April. Overall revenue total $13.3M and is $344K or 2.5% below budget. The decrease in revenues is attributed to the decrease in overall revenues of Building Permits/Fees and interest earnings for the General and Street Fund. The City expects an overall decrease in building permits due to the softening housing market. Year-to-date expenditures total $13.5M and is $565K or 4.4% above budget. 2007 2008 Variance GENERAL & STREET FUND Annual Annual YTD Annual YTD YTD Favorable (Unfavorable) Summary of Sources & Uses Budget Actual Actual Budget Budget Actual $ % Beginning Fund Balance $ 7,088,947 $ 7.088,947 $ 7.088,947 $ 7.645.766 $ 8,009.060 $ 8.009,060 $ - 0.0% OPERATING REVENUES Property Taxes 8,865.097 9.006.922 2,644,363 9.122.267 1,926.440 1.926,440 - 0.0% Sales Tax 12.932.071 13.048.625 4.275,430 13.089,443 4.288,805 4.228,188 (60,617) -1.4% Criminal Justice Sales Tax 2,142.502 2,145.383 666.386 2.289,763 711,232 701,806 (9,426) -1.3% Intergovemmental 2.375.291 2.511.256 835,535 2.398.026 797.861 866,253 68.392 8.6% Leasehold Tax 2.026 7.254 1,088 2,026 304 1,403 1,099 361.9% Gambling Taxes 1,400.000 1.489.952 590,965 1,400,000 555,287 468.763 (86.524 ) -15.6% Court Revenue 986.535 1.217,114 346,191 998,825 275,132 488,604 213,473 77.6% Building Permits/Fees-CD 2.278,857 2,689,040 1.044.330 2.182,100 847,452 530.215 (317,237) -37.4% ROW Permits & Develop Svcs Fees-PW 475.719 499,392 165.136 483,399 159,848 193,046 33.198 20.8% Licenses 235.518 259.209 69.955 235,518 63,561 64,354 793 1.2% Franchise Fees 981.739 982,767 476,680 1,073,269 520.577 491.253 (29,325) -5.6% Passport Agency Fees 88,730 109,720 50.140 91.388 41,763 34,505 (7.258) -17.4% General Recreation Fees 599.310 619,448 185.075 600.915 179.537 214.696 35.158 19.6% Public Safety 1,002,777 1.082.506 192,924 934,775 166.595 137.274 (29.321) .17.6% Admin/Cash Management Fees 582.399 571.011 190.337 605,695 201.898 197.736 (4.162) -2.1% Interest Eamings 741.023 671.880 250.979 741,023 276.807 126,562 (150,245) -54.3% MisclOther 225.583 269.494 95,051 240.750 84.913 82.550 (2.363) -2.8% Onnoinn Transfers In: Utility Tax-Celebration Park 255.800 255.800 255,800 266,000 266.000 266,000 - 0.0% Utility Tax-Arts CommlRW&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 264.275 264.275 264,275 321,592 321.592 321,592 - 0.0% Utility Tax-New Street Lights 112,091 112,091 112.091 116,014 116.014 116.014 - 0.0% Utility Tax-Camp Kilworth M&O 106,000 106.000 106,000 110,000 110.000 110.000 - 0.0% Utility Tax-General Fund Oper 1.238.728 1,238,728 - 1,761,946 - - - nJa Utility Tax - Prop 1 SafeCity M&O - - 37,500 37,500 37.500 - 0.0% Utility Tax-Prop 1 Voter Package 1.837,500 1,837.500 1.000,000 2.548,000 762,382 762,382 - 0.0% Utility Tax-New Parks M&O 59,000 59,000 59,000 62,000 62.000 62,000 - 0.0% [Total Operating Revenues 40,594,571 41,860,369 14,683,731 42,548,234 13,609,502 13,265,136 (344,365) .2.5"10 OPERATING EXPENDITURES ""ity Council 371,771 365,625 199,484 381,122 207.939 217,570 (9.631) -4.6% City Manager 1,195.283 1.136.366 326,466 1,429,870 410,786 437,841 (27.055) -6.6% Municipal Court-Operations 1,371,483 1.280.865 375.531 1,481,211 434,269 462.610 (28.341) -6.5% Economic Development 373.730 215.861 84,828 345,201 135,656 77,085 58.571 43.2% Management Services 2,287.795 2.080,526 598.941 2.438.142 701,892 713,991 (12.099) -1.7% Civil/Criminal Legal Services 1.441.869 1.307.586 400.899 1,604,243 491,853 526,454 (34.601) -7.0% Comm. Development Svcs 4,002.827 3,702.684 1.073.119 4,393,579 1.273,355 1,084,641 188,714 14.8% ~ail Services 1,668,128 1.701.176 254,130 1,974,022 294,889 391,949 (97.060) -32.9% Police Services 21.229.194 20,449,932 6,071,485 22,240,762 6,603,173 7,060,479 (457.305) -6.9% Parks and Recreation 4,020.390 3.782,410 949.352 4,105,782 1.030,516 1,198.630 (168.113) -16.3% Public Works 4.855.671 4,136.883 1,080,812 5.313,315 1,388,170 1,366,523 21.647 1.6% [Total Operating Expenditures 42,818,141 40,159,913 11,415,047 45,707,248 12,972,498 13,537,772 (565,274) -4.4% foperating Revenues over/(under) Operating Expenditures (2,223,570) 1,700,456 3,268,684 (3,159,014) 637,003 (272,636) (909,639) .142.8% OTHER FINANCING SOURCES One-Time Transfers In 358,115 346.151 118,129 120,795 15,819 15,819 - 0.0% Grants & Other 161,751 203.506 25,640 79,171 36,490 36,490 - 0.0% Total Other Financing Sources 519,866 549,657 143,769 199,966 52,309 52,309 - 0.0% OTHER FINANCING USES City Manager Contingency - - 3.036.935 - - n/a nJa One-Time Transfers 1,496.000 1.330,000 1,030.000 - - n/a nJa Other - - - n/a nJa Total other Financing Uses 1,496,000 1,330,000 1,030,000 3,036,935 - - n/a n/a frotal Ending Fund Balance $ 3,889,243 $ 8,009,060 $ 9,471,400 $ 1,649,783 $ 8,698,372 $ 7,788,733 nJa nJa DESIGNATED OPERATING FUNDS Through April, designated operating funds revenue total $lO.IM and is $730K above the year to date budget of $9.4M with utility taxes being the major contributor. Expenditures of$6.7M is $127K under the year-to-date budget estimate of$6.8M. 2007 2008 Variance DESIGNATED OPERATING FUNDS Annual Annual YTD Annual YTD YTD F.vol'llble (Unfavorable) Isummary of Sources & Uses Budget Actual Actual Budget Budget Actual $ % Begin Balance-Designated Funds $ 9.705.215 $ 9.705,215 $ 9,705,215 $ 5,798,400 $ 7,272,399 $ 7,272,399 $ - 0.0% OPERATING REVENUES Intergovernmental 559,023 561,232 175,616 559,023 174.925 170,400 (4.525) -2.6% Utility Taxes 11,036.287 12,796,461 4,361.364 11.782.569 4,367.960 5.105,680 737.720 16.9% Hotel/Motel Lodging Tax 175.100 191,691 53,566 180.353 50.417 55,329 4,911 9.7% Real Estate Excise Tax 4,800.000 4.898.537 2,046,104 3,300,000 1,378,400 1,409,178 30.778 2.2% FW Community Center.. Transition 33.820 17,440 50.201 . nla FW Community Center-Operations 1,248,117 906.126 92,980 1.663,407 554,469 471,545 (82,924) -15.0% Dumas Bay Centre 623,529 518,380 163.360 634,711 200,020 131,852 (68,168) -34.1% Knutzen Family Theatre 77,745 132.017 41.113 77 .955 24,277 53,584 29.307 120.7% SWM Fees 3.710,104 3,650.974 1.094,069 3,604.132 802,673 802,673 0.0% Refuse Collection Fees 242,850 259.014 107,922 242,850 101,187 109,520 8,332 8.2% Interest Eamings 249.970 524.350 170,824 159,970 52,116 126,303 74,187 142.4% Miscellaneous/Other 4.000 25.002 25.000 4.000 . nla IOnanina Transfers 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 1,347,483 1,343.633 - nla Utility Tax-Arterial Streets 1,400,000 1.400.000 1,400.000 1,400.000 1,400,000 1,400,000 , 0.0% Utility Tax-New Community Center 492,923 492,923 492.923 528,348 176,116 176,116 - 0.0% ot;ll OPtrallng Revenu!l$ 26,126.446 27,847,124 10,420,558 25,610,211 9,411.820 10,141,441 729,621 7.8% IoPERATlNG EXPENDITURES !cIty Overtay Program 2,862.975 2,494,146 64,207 2,412.849 65,867 65,867 - 0.0% Utility Tax-Admin/Cash Mgmt Fees 57,449 57,449 19,149 59,747 19,915 19,916 (1) 0.0% Solid Waste 364.890 336.588 111,063 375.060 123,757 115,402 8.355 6.8% Hotel/Motel Lodging Tax 351.164 194,607 60,238 385.510 119,329 67,871 51,458 43.1% FW Community Center TransitionlStart Up 113.549 322,263 328,481 - - - - nla iFw Community Center-Operations 1,681.289 1.331,910 120,612 1,901.761 633,920 622,317 11.604 1.8% Debt Service 11.255,538 10,929,927 6,028,441 1,201.830 17 ,689 17,689 - 0.0% Surface Water Management 3.080.245 3,037,900 888,544 3,203,195 936,891 871,076 65.815 7.0% Dumas Bay Centre 601.363 561,848 164,849 643,413 188,780 170,941 17.839 9.4% Knutzen Family Theatre 235,238 236,162 63.693 210,939 56,890 84,965 (28.074) -49.3% Ionanlna T"'nsfe'" Ollt: Utility Tax-Celebration Park 255,800 255,800 255,800 266.000 265,000 266.000 0.0% Utility Tax-Community Center Oper. 492,923 492,923 492,923 528.348 176,116 176,116 - 0.0% Utility Tax-Arts CommlRW&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 264,275 264,275 264,275 321.592 321.592 321.592 0.0% Utility Tax-New Street Lights 112,091 112,091 112,091 116,014 116.014 116,014 - 0.0% Utility Tax-Knutzen 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 1,400,000 1,400.000 , 0.0% Utility Tax-Camp Kilworth M&O 106,000 106,000 106,000 110.000 110.000 110.000 - 0.0% Utility Tax-Debt Service 1.530.300 1,530,300 - - nla Utility Tax-Transportation CIP 1,400,000 1,400,000 1,400.000 400,000 400.000 - 0.0% Utility Tax-General Fund Operations 1.238,728 1,238,728 1,761,946 - - nla Utility Tax-Prop 1 Voter Package prog 1,837,500 1.837,500 545,000 2,548,000 762.382 762.382 . 0.0% Utility Tax-Prop 1 SafeCity M&O 37,500 37.500 37,500 - 0.0% Utility Tax-Community Center Debt Svc 917,183 917,183 913.333 - - nla Utility Tax-New Parks M&O 59,000 59,000 59,000 62,000 62,000 62,000 - 0.0% ot;llOperatlng expenditures 31,148,996 30,048,095 12,015.861 20,824,296 6,779,903 6,652,907 126,996 1.9% Operating Revenues over/(under) Operating Expenditures (5,022,549) (2,200,970) (1.595.303) 4.785,915 2,631,917 3,488,534 856,617 32.5% OTHER FINANCING SOURCES One.. Time Transfers In 5.733,805 5.733,805 4,583,805 - nla Grants/Mitigation/Other 258,061 223,265 59,717 222,000 54,250 54,250 0.0% Tat;ll Other Financing Sources 5,991,861; 5.957,070 4.643.522 222,000 64,250 64,250 . 0.0oy, OTHER FINANCING USES One-Time Transfers Oul/Other 6,188.913 6.188,911 3,622,703 4,964,300 1,264,000 1,264,000 - 0.0% Total Other Financing Uses 6,188,913 6.188,911 3.622,703 4,964,300 1,264.000 1,264.000 . 0.0% ENDING FUND BALANCE Arterial Street 15,105 388,954 2,388.855 15,106 1,951.662 nla nla Utility Tax 1.711,179 3,480,873 1,622,592 2,359.279 3,977,994 nla nla Solid Waste & Recycling 115.936 138,508 111,773 144,298 133,466 nla nla HotellMotel Lodging Tax 0 198,155 (4.106) 187,381 nla nla FW Community Center 239.101 21,395 515,911 313,524 48,360 nla nla Paths & Trails 34,923 35,369 28,529 44,892 38,291 nla nla Debt Service Fund 1,462,083 2.089,658 3,818,989 2,787,255 2,818.477 nla nla Surface Water Management 903.568 928,050 433.964 187.807 346,943 nla nla Dumas Bay Centre Operations 30,000 (35,634 ) 6.345 (31,907) (74,723) nla nla Knutzen Family Theatre (26,277) 27,071 134.341 21,760 124,950 nla nla otat Ending Fund Balance $ 4,485,619 $ 7,272,399 $ 9,057,192 $ 5,842,015 $ $ 9,552,801 nla nla Real Estate Excise Tax Compared to 2007, collections are down $637K or 31.1 %. April's receipt of $144K is $362K below April 2007's activity and includes a total of 145 real estate transactions, of which 61 were tax exempt and of the remaining 84, 0 were mobile home sales. The unfavorable variance is due to total Real Estate sales through April 2007 totaled $385M and through April 2008 $288M, a total decrease of $97M. The annex area has contributed year-to-date revenue of $29,153. The largest transactions in the current month consist of the sales of Residential Property ($600K) located on SW 296th St., Residential Property ($600K) located on 26th Ave S., Gene's Towing ($602K), and a Warehouse ($7.4M) located on 9th Ave S. Sales Tax REAL ESTATE EXCISE TAX REVENUES Year to date thru April 2007 2008 2008 Change from 2007 2008 Actual vs Budget Month Actual Budget Actual $Var %Var $Var I %Var Jan $ 693,595 $ 467,254 $ 590,477 $ (103.118) .14.9% $ 123.223 I 26.4% Feb 219,522 147.885 511,905 292,383 133.2% 364.020 246.2% Mar 626,241 421.880 162,401 (463,839) .74.1% (259,479) -61.5% Apr 506,747 341,380 144,395 (362,352) -71.5% (196.985) -57.7% May 464,527 326,412 Jun 520,650 350.747 - Jul 407,081 274,238 - AU9 293,865 197.968 . Sep 307,526 207.171 - Oct 353,373 238.057 Nov 302,465 203.762 Dee 182,946 123.245 - YTO Total $2,046,104 $1,378,400 $1,409,178 $ (636,926) .31.1% $ 30,778 2.2'll Annual Total $4,898,537 $3,300,000 Compared to 2007, Sales tax revenues are down $47K or 1 %. April sales tax collection total $909K, which is $50K or 5% below 2007's April sales tax of$959K. Sales Tax bv SIC Code Retail sales continue to remain the largest source of sales tax revenue, accounting for 55% of all sales tax collections. Year-to-date retail sales tax collection is down by $3K or less than I % below year-to-date 2007. Services industry accounts for 19% of the total sales tax collections. On year-to-date basis, services sales tax is up by $31K or 4% compared to 2007. The increase in the service industry is due to the increase in food services/drinking places ($46K). Construction and contracting activity, which accounts for 11 % of sales tax collections, is down $176K or 28% from 2007's activity. Sales tax received year-to-date on major City projects total $4K or less than 1% of total construction and contraCting activity. LOCAL RETAIL SALES TAX REVENUES Year.to-date thru April 2007 2008 2008 Change from~OO7 21/gBAcfual vs Budget Month Actual Budget Actual $ % [ % Jan $ 994,523 $ 997,634 $ 1,014,466 $ 19,944 2.0% $ 16,832 1.7% Feb 1,375,199 1,379,500 1,393,323 18,125 1.3% 13,823 1.0% Mar 946,695 949,656 911,140 (35,554) -3.8% (38,516) -4.1% Apr 959,014 962,014 909,258 (49.756) -5.2% (52,756) -5.5% 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 Nav ! 1,166,531 1,170.180 Dee 1,076,061 1,079.428 YTD Total $ 4,275,430 $ 4,288,805 $ 4,228,188 $ (47,242) .1.1% $ (60,617) .1.4~ Annual Total $13,048,625 $13,089,443 Wholesale trade accounts for 5% of the total sales tax collections. Year-to-date wholesaling activity is up $48K or 30% above 2007 year-to-date. COM PARISON OF SALES TAX COLLECTIONS BY SIC GROUP Year.to.date trruApril Component 2007 2008 ChangeJrom 2007 Group Actual Actual $ % Retail Trade $ 2,310,715 $ 2,307,275 $ (3,440) -0.1% Services 791,968 $ 823,339 $ 31,372 4.0% Construct/Contract 630,793 $ 454,639 $ (176,154) .27.9% Wholesaling 157,388 $ 205,038 $ 47,650 30.3% Transp/Utility 4,313 $ 9,968 $ 5,655 131.1% Inforrration 172,305 $ 175,970 $ 3,665 2.1% Manufacturing 48,908 $ 95,730 $ 46,822 95.7% Government 41,352 $ 25,242 $ (16,110) .39.0% Fin/Ins/Real Estate 113,630 $ 126,662 $ 13,032 11.5% Other 4,050 $ 4,326 $ 276 6.8% YTD Total $ 4,275,430 $ 4,228,188 $ (47,242) .1.1% Information accounts for 4% of the total sales tax collections. Year-to- date information activity is up by $4K or 2% compared to 2007. Publishing ($9K) and Motion Picture/Recording ($8K) showed a total increase of $17K. Internet Service Providers showed a decrease of $27K. Manufacturing activity accounts for 2% of the total sales tax collections is up by $47K or 96% when compare to 2007 year-to-date. Majority of the increase is due to increase in activity of wood product manufacturing ($43K). $16K of this increase was due to an audit performed by the Department of Revenue. Government activity shows a decrease of $16K or 39% compared to 2007's activity due to nonclassifiable establishment ($18K). Sales Tax bv Area The City's largest retail center, South 348th, which generates 12% of the City's sales tax, is showing a decrease of $23K or 5% compared to the year 2007. The Commons year to date activity show an decrease of $3K or less than 1 % compared to 2007. Major Auto Sale's collection total $IIIK and IS $12K or 10% below 2007. S 312th to S316th tax collections are up by $67K or 26% compared to the prior year. Pavilion Center tax collections shows a decrease of $3K or 1 % compared to the prior year. Federal Way Crossings tax collection IS up by $l3K or 17% compared to the prior year. SALES TAX COM PARISON by AREA Yea r.to-da te thru April 2007 2008 Chg from 2007 Group Actual Actual $ % Total Sales Tax $4,275,430 $4,228,188 ($47,242) -1.1% S 348th Block $510,489 $487,153 ($23,336) .4.6% % chg from prey yr 5.3% -4.6% na na Percentage of total 11.9% 11.5% ,0.4% -3.5% The Com mons 422,410 419,537 (2,873) -0.7'10 % chg from prey yr 5.7% -0.7% na na Percentage of total 9.9% 9.9% 0.0% 0.4% Major Auto Sales 123,014 110,793 (12,221 ) .9.9% % chg from prey yr -8.5% -9.9% na na Percentage of total 2.9% 2.6% -0.3% -8.9% S 312th to S 316th 252,500 319,074 66,574 26.4% % chg from prey yr 23.8% 26.4% na na Percentage of total 5.9% 7.5% 1.6% 27.8% Pavilion Ce nte r 209,898 207,060 (2,838) -1.4% % chg from prey yr 10.5% -1.4% na na Percentage of total 4.9% 4.9% 0.0% -0.3% FW Crossings 73,788 86,524 12,736 17.3% % chg from prey yr na 17.3% na na Percentage of total na 2.0% na na Gambling Tax Gambling tax collection through April is $469K. In comparison to 2007 year-to-date collection, 2008's tax collection is $122K or 21 % 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 $IIK in an amended return from 2006) from a major payer for 2006 revenues. If this was taken into consideration, total variance from 2007 would be a negative variance of $24K or 5%. SAfrlSLINGTAXREVENVE Year-To-D.ateThrouoh Aaril 2007 2008 2008 Changllfrom 2007 2008 Act!lal vsB.u(lg.t Mon.th Actual Bu(laet Actual $Var 0/, Var $ Val: % Var Jan $ 218,118 $ 204,950 $ 104.699 $ (113.419) -52.0% $ (100,251) -48.9% Feb 120.749 113.459 142,126 21,377 17.7% 28.666 25.3% Mar 23.530 22,109 8,543 (14.987) -63.7% (13.566) -61 .4 % Apr 228.568 214.769 213,395 (15.173) -6.6% (1.374) -0.6% May 36.079 33.901 - - - - - Jun 186.964 175.677 - - - - - Jut 34.454 32,374 - - - - - Aug 211.381 198,619 - - - - - Sep 29.788 27,990 .. - - - - - Oct 133.115 125,078 - - - - - Nov 104,609 98.293 - - - - - Dee 162.598 152,782 - - - - - YTO Total $ 590,965 $ 555,287 $ 468,763 $ (122,202) -20.7% $ (86,524) .15.6% AnnuallOtal $ 1,489,952 $ 1,400,000 HoteVMotel Lodging Tax Hotel/Motellodging tax collections through April total $55K. Compared to 2007, the lodging tax is $2K or 3% above the same period. HOTEL/MOTEL LODGING TAX REVENUES Year.to-date thru April 2007 2008 2008 Change from 2007 2008 Actual vs Budget Month Actual Budget Actual $ Var %Var $ 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 11,171 (1.577) -12.4% (823) -6.9% Apr 12.545 11,803 14,266 1.722 13.7% 2,464 20.9% May 15.638 14,713 - - I Jun 13.241 12,458 - - - ! - - Jul 10,427 9,810 - - ! - AU9 24,090 22,665 - - - - - Sep 20.376 19,171 - - - - - Oct 22,461 21,132 - - - - - Nov 17,735 16,686 - - - - Dec 14,136 13,300 - - - YTDTotal $ 53,586 $ 50,417 $ 55,329 $ 1,743 3.3% $ 4,911 9.7% Annual Total $ 191,691 $ 180,353 Utility Tax Utility taxes received through April total $5.1M and is above 2007 year to date collections by $724K or 17%. Compared to year-to-date 2007, Electricity up $425K or 28%, Gas is down $27K or 3%, Cable is up $56K or 14%, Phone is up $1l5K or 36%, and Cellular phone is up $233K or 33%. The increase in overall revenues is due to collection of7.75% of Utility Taxes as opposed to 6% (starting in March of 2007). UTILITY TAXES Year-ta-date thru April 2007 2003 2008 Change from 2007 2008 Actual vsBudget Month Actual Budaet Actual $Var " Var $Var %Var Jan $ 845.364 $ 962,107 $ 1.205.190 $ 359,826 42.6% $ 243.083 25.3% 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 1.472,457 299,038 25.5% 438.548 42.4% Apr 1.233.143 1,086.532 1.164.533 (68,609) 78.001 7.2', May 1.083.946 937.451 Jun 950.406 837.410 Jul 940.312 828.516 Aug 914.481 805.756 Sep 994,042 875.856 Oct 983.515 866.583 Nay 1.006,830 687.126 Dee 1.561.566 1,375.908 YTD Total $ 4.381,364 $ 4,367.960 $ 5.105.680 $ 724,316 16.5% $ 737,720 16.9', Annua Tolal $ 12,796,461 $ 11.782,569 2007 2008 Change from 2O!J7 Actual Actual $ Var %Var Electric $ 1.500,180 $ 1.925.664 $ 425,485 28.4% Gas 1.079,035 1.052,425 (26,610) -2.5% Solid Waste 235,526 263.046 27.520 11.7% !cable 411,255 467.660 56,405 13.7% Phone 321,661 437.073 115,412 35.9% !cellular 717.829 951.054 233,225 32.5% Pager 178 83 (95) -53.3% SWM 119.212 13.882 (105.329) -88.4% IT ax Rebate (3.510) (5,207) (1.697) 48.3% YTD Total $ 4,381,364 $ 5,105,680 $ 724,316 16.5'% UTIUTY TAXES Year-to-date thru April 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 1 funding. Year-to-date Prop 1 tax collections total of $1.2M or approximately 45% of the total budget of$2.6M. Year-to-date prop 1 expenditures total $762K or 27% of the $2.8M budget. 1~~2,!!:439~ .........~~.~~~.7.~.. ......._......~!i.li}.~6.. .....~251>.1..!i 735,765 July --'-727.942 AuguSt~-"- -~07,985 ~epte-rT;ber-' --...~769.58-1- Qct()ber ..761,389 November 779,481 December"-'----1;208,'974 YTD Total $ 3,876,477 Annual Total $ 10,392.609 Annual Budget $ 9,013,787 .......2,2,8J~4_1.. . 276.447 238,931 214,641 ~~~=,~~, ._2,!2,~3.!g . 206.496 224,461 222,126 '"m"M~,,""'''_'_m 227,349 ~~,~~- 352.592 $ 504,887 $ 2,403.852 $ 2.022.500 845.364 1.129,439 1.173,418 1,233.143 1,063.946 950,406 ""'""."'~"_..'"'~~"m,"N" 940.312 .................... 914:481' 994.042 983.515 ,',_._, ""'"""''',"'''',''''""w'w.wn_,,,, 1 ,006,830 ,""""',"'~~~N~'~ 1 ,561.566 $ 4,381.365 $ 12.796,461 11,036,287 332.~~,~0 262,959 10.4% $ 272.140 ~':13.4% f'285:'307 '-20:6o/~'r104:050 . . '~5:8oi~$'-'(13,4~~) $ 3,952,785 $ 1,152.896 $ 3,952,785 $ 1,152.896 $ 9.197,069 $ 2,585.500 $ 5.105,680 $ 5.105,680 $ 11.782.569 $ 76,308 nla nla 2.0% $ 648,008 nla nla nla nla 56.2% nla nla I Public Safety Improverrent Positions & Costs: f' POlic'eServlCes (includes~sw Orn~p();;iions,";:eco'rds'C1er'i<~ and indTr'ect LlnfO~mation Technology support costs) j Court Services (includes Judge, Court Clerk, Prosecutor, public defender I contract. and indirect Information Technology support) $ 29.0% - Human Resources .50 FTE Revenue Communi! Safet Pro ram Costs: Code Enf orcerrent Officer Code Enforcerrent Civil Attorney . Park"Mainienance( vanda lis m: graifiii repair!r;; m::lvaC'and' park'sec I.j;:it Startup Life to date Prop 1 Utility tax Collections total $3.6M and life-to-date expenditures total $2.5M resulting in a balance of $ 1. OM earmarked for Prop 1. State Shared Revenue Year-to-date distribution of$1.8M is above 2007's activity by $58K or 1%. The favorable variance for Year-To-Date is due to the increase in Local Justice Criminal Sales Tax, Liquor Profits Tax, and Liquor Excise Tax. STA TE SHARED REVENUES Year to datethru April 2007 2008 Change from 2007 Revenue Actual Actual $ % Liquor Profits Tax $ 132,806 $ 149,807 $ 17.001 3.1% Liquor Excise Tax 194,913 210,557 15,644 4.2% Crim Just - Population 40,779 42,552 1,772 2.2% Criminal Just High Crime 90.199 96.617 6.418 7.1% Local Crim Just Sales Tax 666,386 701.806 35.420 1.8% Fuel Tax" 655,705 638,231 (19,475) -1.1% DUI-Cities 7,049 7,917 868 6.1% YTD Total $ 1,787,838 $ 1,845,485 $ 57,648 1.2% . Fuel tax is included in both generaVstreet, designated operating funds, and transportation CIP. Permit Activity Year-to-date building permit activity is below 2007's year-to-date activity by $514K or 49%. Compared to year-to-date budget estimates, permit activity is down $317K or 37%. The City expects the revenues for building permits/fees to decrease due to the softening housing market. The largest decrease in permits are the Building permits ($232K) and Plan checking fees ($173K). Community Development's positive expenditure variance of $189K is mainly due to under spending of one-time programs such as: Design review, Nuisance abatement, Chemical dependency treatment, Graffiti clean up and the Organization capacity building program, plus a decrease in temporary help as compared to 2007 ($28K). BUILDING PERMITS & FEES Year-to-DateThrough April 2007 2008 2008 Change from 2007 2008 Actual vs Budget Actual Budget Actual $ % $ % 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 269.618 218,789 108.460 (161,157) -59.8% (110,329) -50.4% Apr 303,057 245.925 163.263 (139,794) -46.1% (82,662) -33.6% 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 - - - - - Nov 304,823 247.357 - - - - - Dee 196.014 159,061 - - - - - YTD Total 1,044,330 847,452 530,215 (514,116) -49.2% (317,237) -37.4% Annual Total 2,689,040 2,182,100 na na na na Right-of-way permits and development services fees are up $28K or 17% when compared to 2007's year-to-date activity. Public Works Operations year-to-date expenditures total $1.4M and is $22K or 2% below budget estimates. The favorable variance is due to timing of payments. ROW PERMITS & DEVELOPMENT SERVICES FEES Year-to-Date Through April 2007 2008 2008 Change from 2007 2008 Actual vs Budget 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 27,416 5.583 25.6% 6.282 29.7% Apr 59.623 57.714 85,319 25,696 43.1% 27.605 47.8% 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 - - - - - Nav 8,370 8.102 - - - - - Dee 84.664 81,952 - - - - - YTD Total 165,136 159,848 193,046 27,910 16.9% 33,198 20.8% Annual Total 499,392 483,399 na na Police Department Expenditures through April total $7.lM and is $457K or 7% above the year to date budget of$6.6M. The unfavorable variance is due to a lower vacancy rate in 2008 compared to 2007 and an increase in overall overtime. However, further analysis shows that the Police Department has spent 31 % of their 2008 budget and we anticipate that the Police Department will be within their budget at year end. The Police Department hired 27 new officers at the beginning of 2008. Through April, City overtime is 39% or $92K above last year. There is a 27% decrease in overtime for contracted services and traffic school. When the decrease from the billable overtime is included, the total overtime increased $80K or 29%. The increase is due to the Criminal Activities noted in the media (Sound Transit Center Homicide and Britt Homicide) and the NCAA Swimming Championships was held at the Aquatic Center, which required security for the first quarter ofthe year. As the first quarter ends, the Police Department is starting to fill vacant patrol spots with solo officers completing the ten- month training process. This should assist in reducing overtime in the Field Operation overtime which is the contributing factor in the increase in overtime from 2007 to 2008. Type Training Court Reid Oper Other Oty FOrtion ContracUGrant Traffic School I-brreland See Billable Grand Total PS Overtime by Type through April 2007 2008 $ $ 12,738 $ 21,262 $ 8,523 12,379 13,741 1,362 178.198 257,721 79,524 33,468 36,172 2,704 236.783 328,897 92.113 24,846 18,335 (6,510) 18,521 13,236 (5,285) 43,366 31,571 (11,795) $280,150 $360,468 $ 80,318 % PS Overtime By Month 2007 2008 2008 Change from 2007 2008 Actual vs Budget Actual Budget Actual $ % $ % Jan $ 68,853 $ 33 .888 $ 119,252 $ 50,399 73% $ 85.363 251.9% Feb $ 32.850 64.247 (2,496) -4% 31,397 95.6% Mar $ 35,767 100,016 27,346 38% 64,249 179.6% Apr $ 71,885 $ 35,381 76,954 5,069 7% 41,573 117.5% May $ 69,400 $ 34,158 . . . . . Jun $ 84,568 $ 41,623 . . . . . Jul $ 81,970 $ 40,345 . . . . . Aug $ 95.835 $ 47,169 . - - - - Sep $ 101,171 $ 49,795 - - . Oct $ 79,262 $ 39,012 . - . - - Nov $ 84,507 $ 41,593 . - - . - Dec $ 83,397 $ 41,047 . - - - . Total $ 280,150 $ 137,886 $ 360.468 $ 80,318 29% $ 222,582 161.4% Annual Total $ 960,261 $ 472,627 67% 11% 45% 8% 39% -26% -29% n/a -27% 29% Jail Services Jail Services through April is $392K and is above the year-to-date budget estimate of $295K by $97K. The unfavorable variance is due to the increase in number of prisoners and the timing of payments. Through April 2007 Yakima Jail Services were paid through February ($1l9K) as opposed to 2008 which services were paid through March ($255K). Taking the Yakima first three months invoices into considering in 2007, the adjusted negative variance is $22K. Court Municipal Court year-to-date expenditures of $463K is $29K or 7% above estimates. The unfavorable variance in expenditures is primarily due to the increase in Salary, Professional Services, and Temporary Staffing compared to 2007. Salary increase is due to adding an additional judge in May of 2007, Professional Services (ProTem) and Temporary Staffing increase due to coverage for terminated employees in early 2008. The Court did not anticipate the hiring of the new judicial officer until May 1 and already had contractual obligations for the services of pro tern judges. Excluding probation through April revenue is up $140K or 44% compared to year-to-date 2007. The revenue increased is due to the court authorizing certain payments via credit card transactions, the increase in fine amounts for most infractions, and the change in court policy in respect to deferred findings. The state legislature increased the fine amounts for traffic and non- traffic infractions in July of 2007. COURT REVENUE Through April 2007 2008 2008 Change from 2007 2008 Actual vsBudget Month Actual Budget Actual $ Var %Var $ Var %Var January $ 74,292 $ 53,642 $ 115,888 $ 41,596 56.0% $ 62.246 116.0% February 71,310 56.949 121,509 50.199 70.4% 64,560 113.4% March 92,354 73,756 113,512 21,157 22.9% 39,756 53.9% April 77,727 67,770 104.436 26,709 34.4%1 36.666 54.1% May 79.456 63.454 .1 June 96.805 77,310 .1 July 90.014 71.887 . i 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 $ 315,683 $ 252,116 $ 455,345 $ 139,662 44.2% 203,228 80.6% Probation Svcs 30.498 23,015 33.261 2,763 9.1% 10,246 44.5% YTDTotal $ 346,191 $ 275,132 $ 488,604 $ 142,412 41.1% 213,473 77.6% Annual Total $1,217,114 $998,825 na na na na COURT REVENUE By Category Through April 2007 2008 Change from 2007 Actual Actual $ Var %Var Civil Penalties $ 4.367 $ 6.916 $ 2.548 58.3% Traffic & Non-Parking 200.732 325.878 125.145 62.3% Parking Infractions 16.769 29.085 12.317 73.5% DUI & Other Misd 28,706 18.350 (10,356) -36.1% Criminal Traffic Misd 16.885 1.206 (15,679) -92.9% Criminal Costs 7.514 33.989 26,475 352.3% Interest I Other I Misc 11.462 15.188 3.726 32.5% Criminal Conv Fees 8.049 8.143 94 1.2% Shared Court Costs 2.524 63 (2.461) -97.5% Services & Charges 18.673 16.527 (2.146) -11.5% Subtotal $ 315,683 $ 455,345 $ 139,662 44.2'10 Probation Services 30,498 33.261 2.763 9.1% YTO Total $ 346,191 $ 488,604 $ 142,412 41.1'10 . Criminal costs include screener fees. Traffic and non-parking fines total $326K and is $125K or 62% above year-to-date 2007. Parking infractions total $29K and is $12K or 73% above year-to-date 2007. DUI and other misdemeanors total $18K and is $lOK or 36% below year-to-date 2007. Criminal costs total $34K and is $26K or 352% above year-to-date 2007. Criminal Conviction Fees total $8K and is above year-to-date 2007 by less than $100. Parks & Recreation Overall parks operations expenditures through April total $l.2M, which is $169K or 16% above the year-to-date budget of $1.0M. The increase in expenditures is due to an increase in Salary/Benefits of $41K due to lower vacancy when compared to 2007. Knutzen Family Theatre revenues and expenditures are both above budget while Dumas Bay Center revenues and expenditures are below budget. General Recreation and Cultural Services Direct program expenditures total $187K or 18.8% of the total annual budget of $993K not including indirect costs. Including indirect administration costs, recreation expenditures total $307K and are 23.3% of the total annual budget of $1.32M. Recreation fees total $167K and are 28.1% of the total annual budget of $595K. Recreation fees have recovered 89.2% of direct program costs and is 29.3% above the annual budgeted recovery ratio of 59.9%. Considering indirect administration costs, the recovery ratio is reduced to 54.4% or 9.2% above the annual budgeted recovery ratio of 45.2%. General recreation fitness programs are expected to decline as a result of the opening of Federal Way Community Center. The table below is a comparison of budgeted versus actual subsidy and recovery ratio by program. RECREATION, CULTURAL SERVICES, COMMUNITY CENTER AND DUMAS BAY CENTRE PERFORMANCE Year to.Date Through Apri/2008 Budget Actual Recovery Recovery Variance Program Revenue Expend Subsidy Ratio Revenue Expend Subsidv Ratio Subsidy GENERAL RECREATION Steel Lake Aquatics 2.000 20.360 18,360 9.8% - - 0 n1a 18,360 Arts & Special Events 93.000 284,900 191,900 32.6% 61.220 57,373 (3,847) 106.7% 195.747 Youth Athletics 42.450 178,612 136.162 23.8% 3,385 18.666 15,281 18.1% 120.880 Adult Athletics 203,875 143,070 (60.805) 142.5% 18.765 24,821 6,056 75.6% (66.861 Community Recreation 124.000 147,313 23,313 84.2% 55,054 34,596 (20,458) 159.1% 43.771 Recreation I nc 48.850 63.966 15,116 76.4% 19.098 27,540 8,442 69.3% 6,675 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% 3.800 360 (3.440) n1a 23.490 Senior Services 58.740 111.227 52,487 52.8% 5.614 23.648 18.035 23.7% 34.452 Subtotal $ 594,915 $ 992,797 $ 397,882 59.9% $ 166,935 $ 187,062 $ 20,127 89.2% $ 377,756 Administration - 322.914 322.914 n/a - 119.753 119,753 n1a 203,161 1 $ 594,915 I $ 1,315,711 I $ 1 $ 1,663,407 I $ 1,901,761 I $ 720,796 I 238,354 I 45.2%1 $ 87.5%1 $ 166,935 I $ 472,117 I $ 306,815 I $139,879 I 622,317 I $ 150,200 I 54.4%1 75.9%1 $580,9171 $88,1541 I TOTAL GENERAL RECREATION I TOTAL FW COMMUNITY CENTER DUMAS BAY CENTRE Dumas Bay Centre Knutzen Famil Theatre I TOTAL DUMAS BAY CENTRE Arts Commission GRAND TOTAL . The subsidy for Dumas Bay Centre should be $0; however Dumas Bay Centre revenue was underbudgeted by $8.700. .. The subsidy for Knutzen Family Theatre should be $129,260 (amount of Utility Transfer to Knutzen). KFT underbudgeted revenue by $3,725. Dumas Bav Centre Dumas Bay Centre operating revenue of $132K is below by $68K or 34% compared to year to date budget of $200K. Operating expenditures through April total $171 K, which is $18K or 9% below the year to date budget of $189K. Dumas Bay Centre has recovered 77.1 % of its operating expenses. Knutzen Familv Theatre Operating revenue of $54K is above year to date budget of $24K by $29K or 121 %. Operating expenditures through April total $85K, which is $28K or 49% above the year to date budget of $57K. The unfavorable variance is due to increase in Salary/Benefits $13K compared to 2007 due to shifting staff from Dumas Bay to Knutzen Family Theatre. Knutzen Theatre has recovered 63.1 % of its operating expenses. Federal Wav 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 April 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 April, operating revenues total $472K and is $82K or 15% below YTD projections. Currently the Open Gym/Indoor Playground and Towel/Equipment Rentals are not up and running as of April 2008. Federal Way Community Center expects Towel/Equipment Rentals to be up and running this summer after going though the vendor selection process. Through April, operating expenditures total $622K and is $12K or 2% below YTD budget estimates. Federal Way Community Center has recovered 75% of operating expenditures compared to the budgeted recovery ratio of 87%. Year-to-date projected subsidy is $79K and Year- to-date actual subsidy is $151K or $71K over the projected subsidy. The Federal Way Community Center planned a subsidy of $238K which is supported by the Utility Tax transfer of $528K, the remaining $290K was for Capital reserves. With the subsidy currently over it's year-to-date budget by $71K, the Community Center is currently using their capital reserves for on-going general operations. Year-to-date operating budget projections are calculated on 1/12th of the Annual Budget times the month we are reporting. For year-to-date April, the projected revenues/expenditure budget is 4/12th of the annual budget. The Federal Way Community Center currently has $424K in their capital budget (construction). Planned capital expenditures includes the following: security system, concession stand vendor/construction, and commercial washer/dryer. Federal Way Com m unity Center Revenues Youth Athletic A-ograms ~,."".,,",._, ..... "'"'''''''''',,''_''T''''''''''_''''''''''''''''''''''' ..... ..................... Open Gynv'lndoor Aayground ~.gu.~.ti~~.~?g~~ITls:~esso~s/~Ia.ss~s. Childcare Fees ""m'~.<'''w""_'''',,','',,...-.-.>.,~...-..,.,..........._.._,',.,.,".,_.^ Rtness Training Fees 'N_""~'~<"~"=".u,,..,",,....y._.....',....,.~,,.,'~_~.,_."'~'_>>" Tow eVequipment Rentals R;oiwRentais/COmpeliiive:LapLa-nes...... Rentals .,._.._.,",.'0."....<<......_._.m.."'.<<,,,""OW,,","",,"'~"..._,., Merchandise Sales <<m_<<'wu~~,<<,_'0",,,.,,',,..,.-"".~,_._~..~," ConcessionsN ending ~teresiIarnings/OtherMiscRevellues @.w<Wu<<'''w'~,="''',w."....._._._.^._._.0._''_.0'''''''' " "ij'-" ,..-.,_''-_._. Total Revenue E:xp~"n,"~"i!ll!!,s~~ . Personnel Costs . Suppli:~_"".._, w~,~~w~~..r:.v~~~<?1arges ntergov:rnmental ~p~~'--"" " Internal Service Charges w...w.....w_.ij_._w_._._._,..._~~w~~,~~_""O,"~'"''''''''''''"."......w., T.ot~.I. E:x.~e,n~i!~re.s ... ,,~!r"ating '!.~~~.er I (lJnder~pL Other Sources .~"m""=w,~~~'"""'m'~.'.".'._m._.".w."n Transfer In from Ulax Fund Total Sources Uses _"~~'^'^'0_'^_'_W'_'__"'_'_~'_'_'~,W.' Transition/Startup Costs .~~_~_<_~_~_~~~^~W"=mmN" Total Other Uses Net Incom e Annual Budget 2008 YTD Budget Variance YTD Actual $ % 89.0% 0.0% 0.0% n/a n/a Other Departmental Variances~.~~~~in,gE!a.I.ance. ..".~. Ending Balance $ 313,524 $ 118,060 $ 47,311 City Council year-to-date expenditures total $218K is $lOK above estimate mainly due to timing of payments. (70,749) O.O~. .59.9~. City Manager year-to-date expenditures of $438K is above year-to-date budget by $27K mainly due to the increase in Professional Services (Conflict Defender Fees and Public Defender Fees). Economic Development year-to-date expenditures of $77K is below year-to-date of $59K due to the timing of Professional Service Payments. Management Services year-to-date expenditures of$714K is $12K above estimate due timing of payments. Law year-to-date expenditures total $526K and is $35K above estimates due to increase in Professional Services (outside legal services). CASH & INVESTMENTS Overall investment interest through year-to-date through April 2007 compared to year-to-date through April 2008 decreased by $57K. 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) 5.24% to 2.70% and 5.38% to 2.26% 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 detennine whether market yields are being achieved is the range between the average 6- month US Treasury Bill (1.58%) and the State Investment Pool (2.70%). The average portfolio yield is 2.66% and falls between the two benchmarks. Investment Schedule April 2008 . Settlement Investment Maturity Yield to Type IJa.te Par Amount Cost Date Maturity AQency - FHLB 3133XLJ53 08/10/07 $1,000,000 $1,008,623 7/2/2009 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 $2,021,345.61 AveraQe Maturity 66 Average Yield to Maturity 4.92% AveraCle Yield - 6 mo. T-BiII 1.58% Municipal Investor Account $27,744,487 1 dav 2.26% State Investment Pool $29,353,138 1 dav 2.70% Average Portfolio Maturity & Yield 3 2.66% Totalll'lvestments $59,118,971 The total invested balance at the end of April is $59.12M, which includes $29.35M in the state investment pool, $2.02M in- house investment purchases, and $27.74M in the Municipal Investor Accounts. The state pool is composed of agency callables (1.05%), repurchase agreements (10.26%), agency coupons (8.89%), interest bearing bank deposit (5.54%), agency floating rate notes (21.94%), agency variable rate notes (2.10%), discount notes (41.65%) and certificates of deposit (8.57%). The City's total investment portfolio is made up of 50% State Pool, 3% In-House Investments, and 47% Municipal Investors Accounts. Total Portfolio by Category April 30, 2008 Interest Rates Comparison For the Month of April 2008 Mmicipal Investors Accounts 47% 6.0% 5.0% 4.0% . State Investment Pool 3.0% e- e-- - - - - - I j 1!lI6 ~nth T-BiII o In-house Investment State Investment Fbol 50% 2.0% 1.0% 0.0% I!lI Mmicipallnvestor kcount . Portfolio Average 2003 2004 2005 2006 2007 2008 . COUNCIL MEETING DATE: June 3, 2008 ITEM #: 5 c- CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: VOUCHERS POLICY QUESTION: Should the City approve the vouchers in the total amount of$3,951,159.03 COMMITTEE: Finance, Economic Development, and Regional Affairs Committee MEETING DATE: May 27, 2008 CATEGORY: [gI Consent D City Council Business D Ordinance D Resolution D D Public Hearing Other .~!~!!..~!'.g~!}!Y:.M~!~!.~!~J..,_~~?i~_!'i!!~?~i_a.!._~~!Y~.!__._______.m DEPT: Finance I, the undersigned, do hereby certify under penalty of petjury that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claims are just and due obligations against the City ofPederal Way, Washington, and that I am authorized to authenticate and certify said liens. d~ Attachments: Voucher List Options Considered: NA ............__...._.....~........ ......................................................._..................-.."., ...-..........................-....... . ........ ............................................................................-......................-.....-.................. ..........................-...... ............................................. ..............-..--...........-.................................................................... STAFF RECOMMENDATION: NA CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL: COMMITTEE RECOMMENDATION: "I move approval of the vouchers and forward to the June 3, 2008 Council Meeting for approval. " /;?/ ~L ~~ T air Committee Member - DLA-CloS - Jb,a:u~A 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 TABLEDIDEFERRED/NO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # 'tl 'm '" LO ll. ~ C'! - - N c N ~ ("<) C') 0 ~ <h .... (l) ..... '" 0 ~ - - :J:l:: ~ iij t.;:I ~ !:l 0 ... :-E .! '" III C 'S C 0- ~ f! .2 <.) ~ l- ii. <r: CD ';: ~ iij ... u ... 3: III 0 CD CD 'tl co Q ~ CD :> u. .... 'tl 0 'm ~ ll. (3 III E 'm (3 CD :;::; i= U; ~ .s::. t:: 0 ... z 0 () 'tl <;::: c '13 CD ell > c... <Xl 0 0 N CD 0 10 C') Q ~ iU N l!) 0 0 0 0 CO Ol!) CO 0 0 0 0 00 .... 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COMMITTEE: Finance, Economic Development, and Regional Affairs Committee MEETING DATE: May 27, 2008 CATEGORY: [gJ Consent D City Council Business D Ordinance D Resolution D ' Public Hearing D Other DEPT: Public Works ~.!.~!!~PORT B~.:..M~~_.~_~!!.2~~?..R.:~.:__~!!:~et Syste~~_M.~~g~ _.. Attachments: Memo to Finance, Economic Development, and Regional Affairs Committee dated May 27, 2008, Options Considered: f~ ~ .~ . A ward the 2008 Fleet Maintenance Contract, a ~ year, non- exclusive fleet maintenance contract, to Pacific . Coast Ford and authorize the City Manager to execute the contract. 2, Reject all proposals for the 2008 Fleet Maintenance Contract and direct staff to re-advertise the project and return to Committee for further action. 3. Do not award the 2008 Fleet Maintenance Contract and provide direction to staff, STAFF RECOMMENDATION: Staff recommends Option 1, CITY MANAGER ApPROVAL: DIRECTOR ApPROVAL: hA.. to Commitlee ~ COMMITTEE RECOMMENDATION: Place Option 1 on the June 3, 2008 Council Consent Agenda for approval. f- - ~~lLt~ . ~ _ ~ Mike ar, air Eric Faison, Member Dini Duclos, Member ~ PROPOSED COUNCIL MOTION: "I move to award the 2008 Fleet Maintenance Contract, a. year, non- exclusive fleet maintenance contract, to Pacific Coast Ford and authorize the City Manager to execute the contract." (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # CITY OF FEDERAL WAY MEMORANDUM DATE: TO: VIA: FROM: SUBJECT: May 27, 2008 Finance, Economic Developoment, and Regional Affairs Committee Cary M, Roe, P,E" Assistant City Manager, Chie Operations Officer, Emergency Manager \ Marwan Salloum, P ,E" Street Systems Manager 2008 Fleet Maintenance - Contract Award BACKGROUND: The City has solicited proposals for repair and maintenance services for 150 general operation vehicles. !-- Specifically, the proposal requested the shop provide all scheduled preventative maintenance, and provide repairs on an as needed basis, The resulting agreement will be for p(ro years and is a non-exclusive agreement. The City could elect to use other vendors at its sole discretion,\1Jti"\ OV The City received a total of 3 proposals (see attached price list), The proposals were evaluated based on responsiveness to the written proposal (40%), cost (50%), and ability and experience to perform (10%), Cost Comparison: In the price comparison, the City used a set of assumptions in frequency and occurrence of the maintenance and repair work. These assumptions were used to project the overall cost and to compare the proposals. Because each car is used differently and requires different repairs, the projected cost is not precise but serves as a basis for comparison only, Among the three proposals, Pacific Coast Ford had the lowest overall price, Eagle Tire and Automotive, Inc, second; and Sparks Car Care was third. Responsiveness, Ability and Experience to Perform: A staff team made up of Public Works and Police Department representatives reviewed and rated the three proposals, agreeing that Pacific Coast Ford is the best firm to do the work. CONCLUSION: ~(QjU Staff recommends awarding a ~-year, non- exclusive fleet maintenance contract to Pacific Coast Ford and authorizing the City Manager to execute the contract. ~ cc: Project File Day File - u l! - c o o CI) u c C'll c CI) - c on; ~ - CI) CI) u: 00 o o N o -= M l!!" iii CO 11I0 o ~ g-t3 Q:~ ~ CI:I 0.. (/) Q) > ~ E N~ CI:I<( !-g 0. CO e Q) o..~ Q) Cl CO W "E o .....LL CiCii III CO o 0 0..0 o 0 Q:~ CO c.. 00 o o N cD ..... "I: Q. < CI) - C'll c iU I/) o Q. o ... D.. ^ i Ql E .. z 5 "0 C ~ s o I- Q) (,,) '': 0.. s o I- Gl U '': 0.. s o I- Q) (,,) 0': Q. - '2 ~ - C :::I o E <( E ~ I/) ~ U :::I t:: 2l '~ Q) (J) II> .!!1 'E o lC) I'- (") o .l: "E o E <0 - .c Cl ::i '0 l: III I/) Q) U :i: ~ ~ Q) ~~ Q) Q) I/) (,,) I/) '~ III Q) 0.. 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Ul => ii: en 1ij => 0 ii: ~ - II> ~ 1:: ~ ~ I'- 00 ~ ~ en w >- en w >- en w >- ~ - o Q) Cl '" c... I!! " m c C> (jj Oi <Il o a. e a. COUNCIL MEETING DATE: June 3, 2008 ~_.....m........"_""""" .. ... ....................._......................__............... ............. ............................................................................... m.._............_........................ ....................mm.... ...... ITEM #: S..e.. CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: SPRING 2008 TOURISM ENHANCEMENT GRANT APPLICATIONS POLICY QUESTION: Should the City approve the Spring 2008 Tourism Enhancement Grant applications? COMMITTEE: Finance, Economic Development and Regional Affairs MEETING DATE: May 27,2008 CATEGORY: [8J Consent D Ordinance D Public Hearing D City Council Business D Resolution D Other ~_!~l!~_~~2~!..~Y..:...!J!1.!.~~_Y~h?_~~?!!~~i~_Q~y~.1?p~~~!..A~_~}~~~!!~~__~_~_~_~:_~.~~_..~_~_~~~!._.____._.__._._-----.------- ATTACHMENTS: ~--2? 1, Staff report to L T AC with TEG applications, SUMMARYIBACKGROUND: Two rounds of the Tourism Enhancement Grant are included in the Lodging Tax Advisory Committee's work program and budget for 2008. The total amount budgeted for grant awards of $50,000, These grants are intended for not-for-profit organizations engaged in sports or cultural events in Federal Way that will bring out-of-town visitors to the City, The first round of grant applications for 2008, a total of $24,000 was recommended to seven organizations, leaving $26,000 for the fall round. A total of nine applications were submitted, requesting a total of$61,280, are as follows: Federal Way Symphony Orchestra/Summer Pops Concert, August 16,2008 $ 10,000 Rhododendron Species Foundation/Summer Serenade, August 5, 2008 $ 4,730 ECSA 2008 Series Host Committee12008 Gay Softball World Series (Northwest Quest), August $20,000 22-30, 2008 Federal Way Arts Commission/Writer's Conference at Dumas Bay, April 25, 2008 $ 3,000 Washington State USSSA/Men's B, C and D NW National Championships, August 23-24, 2008 $ 4,000 Federal Way ChoralelFederal Way Chorale Spring & Christmas Concerts, May 31, June 1 ~nc1 $ 3,550 December 6 & 7, 2008 Centerstage/My Fair Lady, May 9 - June 1,2008 $ 7,000 Federal Way United Soccer ClublFederal Way Blast Off Soccer Tournament, August 1-3, 8-10, $ 7,000 2008 Federal Way Mod Soccer Club/tracy Whitney Soccer Jamboree, September 27-28, October 4-5, $ 2,000 2008 A copy of each application submittal is attached to Exhibit A to this memo, PROPOSAL After considering recommendations from its Tourism Enhancement Grant Review Subcommittee, the Federal Way Lodging Tax Advisory Committee (LTAC) reviewed each ofthese applications at its April 2, 2008 meeting. The LTAC's unanimous recommendations are as follows: Federal Way Symphony Orchestra/Summer Pops Concert, August 16,2008 $ 1,000 Rhododendron Species Foundation/Summer Serenade, August 5, 2008 $ 2,000 ECSA 2008 Series Host Committee12008 Gay Softball World Series (Northwest Quest), August $10,000 22-30, 2008 Federal Way Arts Commission/Writer's Conference at Dumas Bay, April 25, 2008 NA Washington State USSSA/Men's B, C and D NW National Championships, August23-24, 2008 $ 3,000 Federal Way ChoralelFederal Way Chorale Spring & Christmas Concerts, May 31, June 1 and December 6 & 7, 2008 Centerstage/My Fair Lady, May 9 - June 1,2008 $ 2,000 Federal Way United Soccer ClublFederal Way Blast Off Soccer Tournament, August 1-3, 8-10, $ 4,000 2008 Federal Way Mod Soccer Club/Tracy Whitney Soccer Jamboree, September 27-28, $ 0 2008 The recommended grant funding for the Spring 2008 round totals $24,000, The Federal Way Arts Commission received $2,000 for the 2008 Writer's Conference at Dumas Bay during the 2007 Fall funding round, The TEG Committee also felt that the Tracy Whitney Soccer Jamboree does not draw enough out-of-town participants to warrant TEG support, CITY MANAGER ApPROVAL: ! oval of the TEG awards, as recommended by L T AC, DIRECTOR ApPROVAL: COMMITTEE RECOMMENDATION: "1 move approval of the Tourism Enhancement Grant awards, as recommended by L T A C. " -1:li Member ])UL I l)S- L'tO.1sed Committee Member PROPOSED COUNCIL MOTION: "1 move approval of the Tourism Enhancement Grant applications, as recommended by the Finance, Economic Development and Regional Affairs Committee. " (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: co o o N -- o N -- lt) CI) CI) ~ E E o o ~ o U)CX) .-0 >0 ~~ ><N ftS= ....~ g>>c( .- tnCU "C"C OU) ..JCI) ~s::: ~"C CUCl) 3:3: 'ii ~ CI) "C CI) IL. III- o ~ o co o o N Ol C '': 0. (/) (9 W I- lB lB lB lB lB lB lB lB ~~~~~~~~ . . I I . N(t)'<tL{)COCO'...... 9999999~ co co co co ci..co o.co LLLLLLLLenLLenLL a. 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'5> 0."0 <( 0 ...J CO Q) (5 .!: I- I- NOTICE The Tourism Enhancement Grant (TEG) Applications have previously been distributed in their entirety to all members of the: . Tourism Enhancement Grant Review Subcommittee, . Lodging Tax Advisory Committee, and . To Each Council Member as an attachment to the May 27, 2008 FEDRAC packet. In an effort to reduce resources, additional copies of the TEG applications will be distributed only upon request. However, an electronic copy is available by visiting: http://www.citvoffederalway.com/weblin k/ docview .aspx?id=298304 The first application can be found on page 99 of the packet. Thank you for helping us to reduce the number of unnecessary copies. By eliminating duplicate copies of the applications, we've saved 1,250 sheets of paper. THAT'S MORE THAN TWO REAMSHI COUNCIL PACKETS = 24 copies x 50 sheets = 1,200 sheets FEDRAC PACKETS (w/o copies) = 10 copies x 50 sheets = 500 sheets 3 COUNCIL MEETING DATE: June ~ 2008 ITEM #: of CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: FINAL DRAFT APPROVAL: CITY CENTER LOCAL INFRASTRUCTURE FINANCING TOOL - REQUEST FOR CONCEPTS VISION STATEMENT AND PROCESS POLICY QUESTION: Should Council approve the final draft of the Request for Concepts (RFC) for redevelopment projects in the City Center pursuant to the LIFT funding opportunities? COMMITTEE: FEDRAC MEETING DATE: May 27,2008 CATEGORY: I:8l Consent D City Council Business STAFF REpORT By: Patrick Dohe D Ordinance D Resolution D D Public Hearing Other ......_~J?-_~~~._p.~y~~~P!P..~~!:p_~~~~!9.~ DEPT: City Manager A TT ACHMENTS: Final Draft of the LIFT RFC SUMMARYIBACKGROUND: Pursuant to the State's approval of the City's Local Infrastructure Financing Tool (LIFT) application in September 2007, the City is undertaking a public-private partnership planning process in order to identify, prioritize and pursue implementation of public infrastructure improvements in the City Center in fulfillment of the City's Comprehensive Plan vision. FEDRAC considered this issue preliminarily at its March 25, 2008 meeting at which time it was decided that LIFT infrastructure improvements would best be pursued in partnership with private redevelopment as opposed to prospective public improvements in advance of redevelopment. To this end, an RFC approach was considered the best way to solicit concept-level redevelopment proposals and qualifications from property owners, developers, investors, etc" for sites throughout the City Center, It is important to engage this process soon since the City must begin its LIFT infrastructure commitments as soon as 2009, On April 22, 2008 FEDRAC reviewed and approved a draft redevelopment vision statement as the basis of the RFC and directed staff to proceed with preparing a final draft RFC for their consideration, followed by City Council review and approval, in order to issue the RFC this summer, STAFF RECOMMENDATION: Approv CITY MANAGER APPROVAL: DIRECTOR ApPROVAL: I move accept the final draft of the City Center LIFT ;j and forward to the June ~ 2008 City Council Consent 'enda. " e..,\tLU ~ ~ . Dini Duclos, Committee Member c Faison, Committee Member PROPOSED COUNCIL MOTION: HI move approval of the Committee recommendation to accept the City Center LIFT RFC with issuance scheduled by the first part of July 2008, " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACI'ION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # City of Federal Way, Washington Request for Concepts Cit Center Redevelopment Projects Federal Way, Washington I RFC Issued: 6/23/08 Submission Due: 3:00 pm 8/22/08 [AJ ~ RFC: Federal Way City Center Mixed-Use Development Table of Contents I n v ita t ion. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .2 Project Vision and Principles ..... ....... ............ .... ........ .................................................5 Selection Process.......................................................................................................8 Submittal Requirements.............................................................................................9 Sc h ed u Ie .. .. .. . .. .. . .. .. .. .. .. .. .. .. .. .. . .. . .. . . .. .. . .. .. . . . .. . .. .. . .. . .. . .. . . . . .. .. .. . .. . .. .. .. .. . .. .. . .. .. . . .. .. .. . .. . .. . 1 2 Appendices... .... .............. ... ... ... .... ... ... ...... .... ........ ...... ........ .... ..... ..... ........... ... ........ ..13 . City Center Mixed-Use Development page 1 RFC: Federal Way City Center Mixed-Use Development Invitation The City of Federal Way, Washington (the City), is seeking transformational mixed-use redevelopment concepts in its City Center for consideration as public-private partnerships. Pursuant to State approval in September 2007 of the City's Local Infrastructure Investment Tool ("LIFT") application, the City foresees a financial capacity to enter into public-private partnerships for appropriate City Center redevelopment. The City's potential contribution would be for such public infrastructure components as right-of-way improvements, pedestrian and bicycle trails, public plazas and open spaces, and public parking. Specifically, the City is seeking redevelopment concepts and statements of qualifications from experienced developers (and development teams) willing to engage in a public-private partnership in accordance with the principles and procedures outlined here. This Request for Concepts (RFC) process is intended to provide an opportunity for interested property owners and/ or developers to demonstrate their interest and capability to develop major mixed-use projects in the City Center. This RFC is not related to a specific property within the Federal Way City Center. All properties within the Federal Way City Center LIFT Revenue Development Area (RDA) (see map, Exhibit 1) are potentially eligible for consideration as LIFT-assisted public- private partnerships. The City of Federal Way is an equal opportunity employer and encourages participation of small, minority-, and women-owned businesses. Joint ventures are also encouraged to respond, where feasible. The City is asking prospective development teams to submit sufficient information regarding their development expertise and presentation of development concept to enable the City to select a short list of finalists who will be invited to respond to a more detailed Request for Proposals (RFP) for their respective sites. Respondents will not be competing for a particular site (unless there happen to be more than one response for a particular site) but rather for City participation funding. RFC responses are due by 3:00 pm PDT, on August 22, 2008. We look forward to your submittal. ~ City Center Mixed-Use Development page 2 RFC: Federal Way City Center Mixed-Use Development Team The City seeks qualifications from comprehensive development teams who own or can acquire a site and carry a project through to occupancy. Therefore, development teams should include any discipline that would be appropriate. Team members may include: · Development entity (lead team member); · Architect; · Civil engineers; · General contractor; · Marketing/ sales support; · Financial and/ or property ownership partner(s); and · Any other partners deemed appropriate. Partnership The City seeks to identify development firms or development teams who are willing and able to enter into a public-private partnership to develop a project in fulfillment of the City's vision. Thus, the City seeks developers who: · Understand the significance of the City's Comprehensive Plan vision for City Center which can be summarized as follows: · Creates an identifiable downtown that is the social economic focus of the City · Strengthens the City as a whole... growing employment and housing · Promotes housing opportunities close to employment · Supports area transit investments · Reduced dependency on automobiles · Consumes less land with urban development · Maximizes benefit of public investment · Provide central gathering places(s) · Improves quality of urban design In addition, successful developers should have: . Experience in developing, financing, marketing and selling, and/ or managing projects of similar size, scope and nature; Demonstrated ability to develop projects which are an asset and a "correct fit" with the community; Experience in project management and compliance with budgets and schedules; Capacity, experience, and willingness to enter into a public-private partnership; and Sufficient financing capacity to complete their proposed project. . . . . . City Center Mixed-Use Development page 3 RFC: Federal Way City Center Mixed-Use Development About Federal Way City Center Federal Way City Center is in the midst of a transformation from a traditional suburban commercial district to a vibrant urban center. Bound by So. 312th Street on the north, Interstate 5 on the east, So. 3241h Street on the south, and the Pacific Highway So. corridor on the west -- and comprising 414 acres -- the area features 2.7 million square feet of existing retail space (much of it large format), more than 650 hotel rooms, 225,000 square feet of office and 890 multifamily residential units. The community hosts world-class cultural institutions, engaging open spaces, and close proximity to regional educational and health care institutions. Materials describing conditions within City Center can be found in a supplemental marketing piece to this RFC, Exhibit 4. While City Center has seen continuing investment in retail and commercial projects, it has not seen the same influx of new urban mixed-use developments containing a denser mix of commercial uses, together with urban housing and/ or employment centers as other urbanizing suburban communities in the Northwest. Employment centers, urban housing and mixed-use development are a core component of every successful downtown as it adds vitality to the streets, diversity to the skyline, and buying power to the economy. Even more important, however, is that employment centers, urban housing, and associated commercial uses satisfy a well documented demand for lo-;;/'l: lifestyle-oriented living/ shopping/ entertainment that is currently under-supplied in the Federal Way market. For these reasons, strategic redevelopment projects within the City Center represent a unique opportunity to capture part of the Seattle region's burgeoning market for these uses. A recent market analysis for the greater Federal Way City Center trade area suggested the following: · Population and household growth consistent with the metro area as a whole at approximately 1.3 percent annually; · Median household income estimates in a five-mile radius around City Center were also found to be higher than the same radius around its two major retail com petitors - Tacoma Mall and Southcenter Mall; · Based on supply and demand conditions across all major land uses, market conditions support new construction, greater diversification of development types and the potential for a vital urban center. Detailed market findings are available in Exhibit 4. The City has a number of tools available to assist landowners, developers and investors undertaking this and other development and redevelopment projects in the City Center. These are described later in this Request. ~ City Center Mixed-Use Development page 4 RFC: Federal Way City Center Mixed-Use Development Project Vision and Principles Development Vision and Principles The City is seeking redevelopment concepts from developers who share the enthusiasm and vision for a vibrant downtown Federal Way as a place to live, work, shop, and play. Desired redevelopment projects should include a dense mix of uses, with an emphasis on destination retail, major employment facilities, destination lodging, entertainment uses, etc. Urban housing, other supporting commercial, civic and institutional uses, etc., would be welcome to round out a rich mix of uses. A central approach for the renaissance of City Center consists of encouraging strategic investment in a compact environment that contains an appropriate mix of land uses, gives greater emphasis to multiple forms of access, and creates a unique sense of place. Vision :: "..~ IT I I ,. _j"~ -~I ~ .~ .m The Federal Way City Center will be highly urbanized, mixed-use urban center with a concentration of commercial uses, employment centers, housing units, civic uses, and public spaces supporting public transportation, pedestrian activity and a sense of place. Redevelopment concepts should serve as catalysts within this urban center, designed to bring an active and vital mix of uses to the area in a pedestrian-friendly, transit-supportive format. Different land uses will be found side by side or within the same structures. The mix of uses will be located in a development with minimal setbacks, reduced parking requirements, and taller structures, all in an effort to achieve higher densities necessary to support "the place." Projects should serve as a catalyst for public and private investment and economic activity, effectively building off the strengths of the surrounding area and connecting to adjacent neighborhood. Desired Components of the Vision The desired components of City Center redevelopment concepts include the following: Highest and best use of the site Buildings of a variety of heights from low- to high-rise, achieving the sense of an "organic" village of structures, not a single" project." Mix of uses -- retail, service, entertainment, office, residential, civic-institutional, etc. Public open space that is seamlessly integrated with surrounding development for activation, programming, passive vigilance, etc., and including art work and/ or artistic expression. . . . . ~ City Center Mixed-Use Development page 5 RFC: Federal Way City Center Mixed-Use Development . Superior urban design, site planning and building design Adherence to the Development Principles enunciated below. . Development Goals and Principles A project should embody the best of Smart Growth principles and should be an urban design showcase. Final development plans to be prepared by the selected developers should incorporate these goals and principles as a fundamental part of the plan: Goals: . Address underserved market niche Support stabilization and diversification Provide direction for targeting and leveraging public investment Advance a market-tested stakeholder vision over the near- and long-term (as expressed herein) Advance a physically and economically sustainable plan . . . . Principles: . Smart Growth Principles, as defined by the American Planning Association (AP A), 1998, including: · Efficient use of land resources; · Full use of urban services; · Mix of uses; · Transportation options; and · Detailed, human-scale design. "Green" or Leadership in Energy and Environmental Design (LEED) development principles to the extent feasible Providing maximum opportunities for viable mixed-use commercial development. Contributing to the overall character of Federal Way. Providing interesting and active fa<;ades at the street level. Respecting and interacting with surrounding property values and land uses. . . . . . Incentives and Public-Private Partnership The City recognizes the physical and financial challenges that can accompany infill redevelopment in urban centers, especially when compared with development of vacant "greenfield" sites at the suburban fringe. Consequently, in addition to potential public-private partnership funding, the City intends to consider measures that may help to level the investment and regulatory playing fields. The City further recognizes that no single measure will address this objective, but rather that a series of measures, designed to capitalize on market opportunities and overcome barriers, may be appropriate. The City has identified the following potential partnership incentives and is willing to discuss their possible application to an appropriate redevelopment project: . City Center Mixed-Use Development page 6 RFC: Federal Way City Center Mixed-Use Development . Provision of a lead staff contact for Projects to facilitate and expedite permit approvals among various City departments, consistent with the development goals identified in the RFC; 10-year limited property tax exemption enacted for residential development and certain mixed-use development components; City Center environmental impact statement completed 2006 and resulting Planned Action Ordinance that substantially lessens the SEPA environmental review burden for individual developers within the City Center Planned Action Area (a majority of the City Center). City Center zoning that allows for higher-density uses, with up to 200+ feet in height allowed; Building Code provisions that allow 5-story wood-frame over concrete construction; Assistance with citizen outreach and public meetings; Other incentives as negotiated. . . . . . . Incentives and/ or financial participation potentially available from the City are not intended to replace other project financing from private or public sources. Rather, they are intended to be flexible resources that can potentially bridge funding gaps which may be created by the sometimes more difficult nature of such urban, infill developments. Once City-identified criteria are satisfactorily addressed, staff will work with the developer or development team to further analyze specific details about the project's financial pro forma and other factors, as warranted. Any potential financial assistance to the project will be determined based upon the nature and extent of the" gap" between the total project costs, the amount of public components, and the amount of private investment available to cover those costs, assuming a market-average rate of return on the private investment. Based upon this information, City staff will then recommend the extent of the City's potential financial participation in the project. Moreover, the level of any potential City financial participation will be dependent, in part, on the fiscal impact of the project to the community and expected private investment leverage resulting from its participation. The ultimate goal will be to make the project economically self-supporting as quickly as possible. I Permitting Process Please feel free to contact Federal Way's Community Development Services Department via phone, in person or through their website for detailed information about development regulations and the permitting process. The Community Development Services Department website may be found at http://www.cityoffederalway.com/Page.aspx?page= 308. ~ City Center Mixed-Use Development page 7 RFC: Federal Way City Center Mixed-Use Development Selection Process Process An evaluation committee of stakeholders from the community and City staff will review the developer submittals. Respondents may be requested to appear in person to present their redevelopment concepts to the committee. Additionally, the City Economic Development Director will contact references and brief committee members on those findings. Also, if needed, the committee will ask for and review supplemental written responses. The evaluation committee will evaluate each RFC respondent's strength vis-a.-vis the evaluation criteria and will determine a composite ranking of the respondents. Based upon the composite rankings, the Federal Way City Council will select those development teams and development concepts that most closely meet the City Center redevelopment vision and public-private partnership criteria. Those finalists will be requested to submit more detailed project development schematics and financial pro formas for continued consideration and negotiation, eventually leading to potential Development Agreements between the City and development teams. Evaluation Criteria Submittals will be evaluated based on the following criteria, listed here in order of importance: 1. Qualifications of Firm and Relevant ExperiencejProjects: The City seeks a development team with demonstrated experience in mid- to large-scale mixed-use projects, commercial developments, lodging andj or urban housing, as well as with the financial capacity to develop such projects. 2. Relevant PublicjPrivate Partnership Experience: Since the Project may include a public- private partnership, any relevant prior experience in similar partnerships should be noted. 3. Presentation of development concept: Development concepts will be evaluated vis-a.-vis their potential to fulfill elements of the City Center Vision. 4. Estimated Economic Impacts: Projects will be evaluated for their potential to create both direct and indirect economic impacts within the City Center and City as a whole. 5. References: The City will contact references to evaluate past performance and working relationships. Development teams are cautioned not to undertake any activities or actions to promote or advertise their submittal, other than discussions with the City staff as described in this RFC. After the release of this RFC, developers and their representatives are not permitted to make any direct or indirect contact with members of the Evaluation Committee, Federal Way City Council, Federal Way Planning Commission, or media on the subject of this RFC, except in the course of City evaluation committee-sponsored presentations. Violation of these rules is grounds for disqualification of the development proposal and team. . City Center Mixed-Use Development page 8 RFC: Federal Way City Center Mixed-Use Development City Discretion and Authority (Terms and Conditions) a. The City may accept such responses as it deems to be in the public interest and furtherance of the purposes of the City of Federal Way Comprehensive Plan, or it may proceed with additional selection processes. b. The City reserves the right to reject any and all RFC respondents at any time, to waive minor irregularities and to terminate any negotiations implied in this RFC or initiated subsequent to it. c. The City reserves the right to request clarification of information submitted, and to request additional information from any respondent. d. The City reserves the right to revise this RFC and the RFC evaluation process. Such revisions will be announced in writing to all RFC respondents. e. The issuance of the RFC and the receipt and evaluation of submissions do not obligate the City to select a developer and/ or enter into project-specific negotiations. f. The City will not be responsible for costs incurred in responding to this RFC. g. The City may cancel this process or the subsequent project-related processes at any time prior to the selection of any respondent without liability. h. Proposals or contracts resulting from acceptance by the City of an RFC response shall be in a form supplied or approved by the City, and shall reflect the specifications in this RFC. The City reserves the right to reject any proposed agreement or contract that does not conform to the specifications contained in this RFC, and which is not approved by the City Attorney's office. Submittal Requirements Submittal Document The following information, to be delivered in a sealed packet marked "City Center RFC," must be included in the submittal response: 1. A letter of introduction signed by the principal(s) of respondent firm(s). 2. Statement of understanding and presentation of project concept: Discuss the significance of the project's site and the project itself, the team's willingness to negotiate a potential private- public partnership with the City; and the respondent's view of the responsibility of the potential public-private partnership. In addition, respondents must submit illustrations of their development concepts with concept-level site plans and sketches, accompanied by a detailed redevelopment concept statement to include proposed uses, square footages and/ or . City Center Mixed-Use Development page 9 RFC: Federal Way City Center Mixed-Use Development unit count, potential phasing and a preliminary financial pro forma. This presentation of project concept is not binding on the specifics of eventual proposal submittals. Rather, it is intended to demonstrate the respondent's initial concepts and/ or programmatic response to the City Center redevelopment vision. 3. Preliminary Estimate of Public Participation Requested: Each respondent must include a preliminary estimate of the amount of public participation requested and how that participation fits within the overall preliminary pro forma of the project. In addition, the respondent must indicate what public components the requested public participation would help to finance. 3. Estimate of Economic Impacts: A preliminary estimate of both direct and indirect economic impacts from the project should be provided. Direct impacts would include projected commercial and service sales and jobs, as well as the property, sales, utility and real estate excise taxes arising from them. Indirect impacts include estimates of induced development and/ or induced commercial activity as a result of the project. 4. Team information: Name, addresses, and phone numbers of firm(s) responding (include contact information for each team member if the acquisition and development team includes other firms); division of tasks among team members; location of principal offices of the developer and each member firm of the consultant team; Description of form of organization (corporation, partnership, etc.); statement of years the firm has been in business under current name and a list of other names under which the firm has operated. 5. Resumes of firm(s) principals and officers and consultant principals to be involved. 6. Description of relevant experience of the development team. Descriptions or' resumes should address individual experience and qualifications. 6. Project Examples: List and briefly describe relevant, successfully completed, mixed-use and/ or urban projects that demonstrate strong integration of uses and/ or with the surroundings, quality of design, attention to detail, integration into existing community fabric, and public-private partnering. Projects must have been completed within the last ten (10) years. Project examples may be from individual experience of the team principals or from firm projects. At a minimum, include examples of projects from the development and design teams. 7. References: For each firm, submit a minimum of three (3) references from public agencies, private companies, or individuals with whom respondent has had relevant experience. Include contact names, addresses and telephone numbers. Submissions to this RFC shall be in the order specified above. RFC responses must be submitted by no later than 3:00 p.m. PDT on August 22, 2008. It is the sole responsibility of the respondent to see that its RFC responses are received by the date and ~ City Center Mixed-Use Development page 10 RFC: Federal Way City Center Mixed-Use Development time stated in this RFC. Respondents are asked to submit twelve (12) copies. Materials in response to the RFC may not be submitted via facsimile or e-mail, Materials must be received by the date and time specified in this RFC. Submit all materials to: Name: Title: Agency: Address (deliveries): (mail): Patrick Doherty Economic Development Director City of Federal Way, Washington 33325 8th Av South, Federal Way, WA 98003 PO Box 9718, Federal Way, WA 98063-9718 Contact Inquiries regarding all aspects of this RFC should be directed to: Patrick Doherty, Economic Development Director City of Federal Way, Washington PO Box 9718 Federal Way, Washington 98063-9718 Phone: 253,835,2612 Fax: 253,835,2409 Email: patrick.doherty@cityoffederalway.com Pre-Submittal Meeting A pre-submittal meeting may be called by the City, depending on the numbers of inquiries andj or requests for information prior to the RFC submittal deadline, If called, all parties known to have inquired about the RFC will be invited, and a notice will be placed on the City's website, Questions Questions regarding the Project or this RFC process must be directed in writing (e-mail, fax, or mail) to the above contact, The City will respond to all questions in writing, All substantive questions and corresponding answers will be posted on the City's website at cityoffederalway.comjbids at the "City Center Redevelopment RFC" link. Questions may be submitted to the City until August 8, 2008 at 5:00 p.m., PDT. . City Center Mixed-Use Development page 11 RFC: Federal Way City Center Mixed-Use Development Schedule The selection process to be carried out as part of this Request for Qualifications (RFC), includes the following steps according to the following tentative schedule, Dates are subject to change, All responding or inquiring parties will be notified of any schedule changes: Publication in Federal Way Mirror, Daily Journal of Commerce and Puget Sound Business Journal, and distribution of RFC to developers: .June 23, 2008 Last day to submit written questions to the City: RFC Response Deadline: August 8, 5:00 p.m. PDT August 22, 2008, 3:00 p.m. PDT August 25-29, 2008 September 19, 2008 Review period: Notification to highest-ranked developers: . City Center Mixed-Use Development page 12 RFC: Federal Way City Center Mixed-Use Development Appendices The following exhibits are appendices to this RFC, containing background information describing the Project and relevant documentation. They are available as a PDF via the city's website at city offederalway,com/bids at the "City Center Redevelopment RFC" link. Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Federal Way City Center and LIFT RDA map Preview of Proposal Requirements Criteria for Public-Private Partnerships City Center Market and Promotional Material Formal Legal Notice/ Advertisement . City Center Mixed-Use Development page 13 RFC: Federal Way City Center Mixed-Use Development Exhibit 1: Map of Federal Way City Center and LIFT RDA ,00 "., 1 "".._~---- ----- ~, 3.ll1 ----- -------- . ~ .--- \ ~ ~ City Center Mixed-Use Development ~~ ns ~ $ ~ _ S ~ ~. CLJ ~ .1) "'C g- ~ &f ~ ~)! l .= I1J ~ ~ l: . 0 ~ U 11. t ,1) $ $ t I1J C C 4: ~ 111 IJJ '"1. () U ti: ,~ ,~ ~oo lD "0 C Q) ...., C/) (/) (/) <(2 I 0 t-Q) u..~ -0 ...J,- '-0.. ~a. .- Q).J:: -(/) .0 a... .0 Q) O .- c - ...., 'W'- (U (U Q)o.. a... Q) <(...... a... ~ Q).- ...... a... co.. Q) I u.~ >'.0 :!::::::s uo.. page 14 RFC: Federal Way City Center Mixed-Use Development Exhibit 2: Preview of Proposal Requirements The following is a brief synopsis of the key substantive components expected to figure in subsequent Proposals requested of those development teams selected by City Council for further consideration and/ or negotiation, The description of the process and statement of components are subject to further terms and conditions. Within a mutually agreed-upon period of time after selection as a Proposal finalist, the developer or development team will be required to submit: . An increasingly developed project site plan, elevations and/ or renderings, dimension of site and building (s) and dimensions of property liens, and project sections, including proposed phasing schedule, if applicable. Detailed financial and development cost information relating to the proposed development concept, including preliminary pro forma financial analysis; Proposed development timeline, including any expected development phasing; Greater detail regarding requested public participation in the project, timing or phasing thereof, or other significant" deal points," Discussion of proposed program for major building material, finishes and colors (not specific selections); A schematic landscaping plan and designation of public and semi-public areas; and Vehicular and pedestrian circulation patterns, including parking layouts, . . . . . . Proposals from invited respondents will be reviewed by City staff and further refined in on- going collaboration between the parties, When ready, the project proposals will be presented to the City Council in a public forum, allowing questions and/ or comments from the public, Selected developers or development teams will negotiate with the City to reach mutually agreeable terms for participation in a project(s), It is envisioned that these terms will first be outlined in a Memorandum of Understanding (MOU) and then finalized in a Development Agreement (DA), After final selection, the selected developer or development organization will be required to provide detailed financial statements and agree to a criminal background check. Control of sensitive financial documents will be reviewed by an independent agent (i,e., CPA) under attorney client privilege and will not be made public, Further, the selected developer must agree to an "open book" process in which the City can review on-going financials and ensure that there be no inappropriate windfall profit arising from public participation, . City Center Mixed-Use Development page 15 RFC: Federal Way City Center Mixed-Use Development Exhibit 3: City Council-Adopted Criteria for Public-Private Partnerships in City Center Preference for public participation will be given to projects that rate highly with regard to the following guidelines and/ or objectives: . The proposed development is comprised of (or contains) a mix of uses in a variety of building sizes and heights, and/ or offers a "village" or "lifestyle center" site and building design, with such elements as street-oriented storefronts, outdoor eating and dining, and outdoor public amenities, such as artwork, fountains, plazas and seating. Projects with the greatest mix of uses (retail/ service, residential, lodging and office) will be given priority, Phasing may be allowed to accomplish the full mix of uses contemplated in a development concept. . The proposed development is transit-oriented in design and concept, where feasible, especially when in proximity to the Transit Center; . The proposed development is of superior site and building design, including use of high- quality materials, Parking facilities (both surface lots and structures) are aesthetically pleasing and integrated into the design of the overall project, Parking structures include street-level uses and/ or are preferably be wrapped by other uses, where possible, to reduce their apparent bulk and mass. . The proposed development is located within the City Center and is of sufficient scale and scope to have a substantial impact on the image and desirability of the City Center and suggests a high probability of inducing additional, spin-off development; . The proponent can provide a solid track record with similar private development (previous experience in public-private partnerships desirable); . The project is projected to provide additional jobs at a variety of levels, Projects with family- wage and higher-paying jobs will rate more highly against this guideline, . The proponent provides an economic impact analysis, A detailed analysis and estimate of the project's direct economic impact in increased property, utility, and sales taxes, as well as an analysis and estimate of indirect economic impacts by multiplier effects throughout the local economy; . When selected for partnership consideration, the proponent provides a financial" gap" analysis, including development costs, projected revenue, disclosure of developer's desired capitalization rate, internal rate of return (based on other portfolio projects), etc., in order to determine the necessary level of public participation, . City Center Mixed-Use Development page 16 RFC: Federal Way City Center Mixed-Use Development Exhibit 4: City Center Market and Promotional Material The following pages contain a summary of the City Center Redevelopment Strategy. Market Analysis Findings and Strategy for Investment report prepared by the Leland Consulting Group. For additional details, you may access the entire report on the City's website at: http://www.citvoffederalwav.com/citvcenter (click on Leland PowerPoint presentation). . City Center Mixed-Use Development page 17 RFC: Federal Way City Center Mixed-Use Development Exhibit 5: Formal Legal Notice/Advertisement . City Center Mixed-Use Development page 18 COUNCIL MEETING DATE: June 3, 2008 ITEM ~:~ CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Graham Short rlat Side Sewer Easement Across City Storm water- T.-act POLIC\' QUESTION: Should the Assistant City Manager execute an easement tor sanitary side sewer facilities across a City stoml\vater tract? COMMITTEE: Land Use and Transportation Committee MEETING DATE: May 19,2008 C.\TEGOR\': [3] Consent o City Council Rusiness D Ordinance D Resolution o o Public Heal-ing Other ~!t\ !~~_rt!=-'-'-() !l-LI! \'_:_~~'-!_~ i I ~t:~,_~~_--,-Q~El~t)'!)l1_~li~~~r:!<:~__Qirl~_~!~~__. OEPT: Public Works Attachments: Memorandum to Land Use and Transportation Committee dated May 19,2008_ Options Considered: 1_ Execute the Easement for Sanitary Side Sewer Facilities within Tract B of land owned by the City of Federal Way for surface water facilities_ 2, Do not execute the Easement for Sanitary Side Sewer Facilities and provide direction to staff. STAFF RECOMMENOA TION: Staff recommends 01tion 1_ Crrv MANAGER APPRO V At' \~ COMMITIEE RECOMMENDATION: DIRECTOR APrROVAI..-:h . ~ ~ a/kk Dini Duclos, Member lC that the Assistant City Manager-le executes 8ft easementsfor a _ .. Trad-- ~ IJ'l!it i/ c-T or--ffle (JrtLi14J1f1 Sl-wrr PLtt j- (BELOW TO BE COMPLETED BY on <;.!:.!~I~KS OFFICE) COUNCIl. ACTION: o APPROVED o DENIED o TABl.EDIDEFERREDINO ACHON o MOVED TO SECOND READING (ordmances onl}) RE VISED - 02l06f2006 COUNCIl. BILl. # 1ST .-eading Enactment .-eading ORDINANCE: # RESOl.UTlON # CITY OF FEDERAL WAY MEMORANDUM DATE: TO: VIA: FROM: SUBJECT: May 19,2008 Land Use and Transportation Committee Cary M. Roe, P.E., Assistant City Manager, C.O.O" Emergency Manager ~ Ken Miller, P.E., Deputy Public Works Director \::::.tv" Graham Short Plat Side Sewer Easement Across City Storm water Tract BACKGROUND: When the Plat of Northlake Ridge was developed in May/June of 2004, a two-inch low pressure side sewer was installed across a portion of Tract B by the developer and contractor to service the Graham two-lot short plat at the owner's request. The utility easement is ten feet wide and approximately 358 square feet. Lakehaven Utility District has an as-built plan on file for the installation of the low pressure service line to the property line of the short plat. The plat sold to Quadrant later in 2004, and the easement was not recorded or shown on the plat for the low pressure side sewer stub. The owner ofthe short plat is requesting the City execute the attached easement in favor ofthe short plat for side sewer service to the lots. No construction on the easement is required because the side sewer already exists; the easement will be for future maintenance if needed. A copy of the easement and exhibit is attached for your information. Staff is recommending that a fee of $250.00 is charged for processing the easement plus recording fees. cc: Project File When Recorded Mail To: City of Federal Way Attn: Ken Miller, Deputy Public Works Director 33325 8th Ave S P_ 0_ Box 9718 Federal Way, W A 98063 EASEMENT FOR SANITARY SIDE SEWER FACILITIES City of Federal Way, a Washington Municipal Corporation Mark J. Springall, Janine N. Springall, and Haggai Homes, LLC, a Washington Limited Liability Company Property Legal Description: Complete Legal Description attached as Exhibit "A" Assessor's Tax Parcel ID#: 618141 0990 Grantor (s): Grantee (s): For and in consideration of One Dollar ($1.00) and other valuable consideration, the receipt of which is hereby acknowledged, City of Federal Way, a Washington Municipal Corporation, ("Grantor") grants, conveys and warrants to Mark J. Springall, Janine N_ Springall, and Haggai Homes, LLC, a Washington Limited Liability Company, ("Grantees"), for the purposes hereinafter set forth a permanent easement under, across and over certain real property (the "Property") located in Federal Way, Washington, legally described as follows: Full legal description attached hereto as Exhibit "8", depicted on Exhibit "C", and incorporated herein by this reference. 1. Purpose. Grantee and its agents, designees and/or assigns shall have the right, without prior notice to Grantor, at such times as deemed necessary by Grantee, to enter upon the Property to inspect, construct, reconstruct, operate, maintain, repair, replace, remove, excavate, and enlarge all sanitary side sewer facilities including, but not limited to, underground facilities and/or systems upon and under the Easement, semi-buried or ground mounted facilities, pipes, and all appurtenances thereto ("Facilities"). 2, Access. Grantee shall have the right of access to the Easement over and across the Property to enable Grantee to exercise its rights hereunder by utilizing the improved driveway on the Property or by any other method mutually agreeable to Grantor and Grantee. 3. Obstructions; Landscaping. Grantee may from time to time remove vegetation, trees, or other obstructions within the Easement, and may level and grade the Easement to the extent reasonably necessary to cany out the purposes set forth in paragraph I hereot: provided, that following any such work, Grantee shall, to the extent reasonably practicable, restore the Easement to a condition similar to its condition prior to such work. Following the installation of the Facilities, Grantor may undertake any ordinary improvements to the landscaping of the Easement, provided that no trees or other plants shall be placed thereon, which would be unreasonably expensive or impractical for Grantee to remove and restore. - I - Parcel No. 618\41 0990 4. Grantor's Use of Easement. This Easement shall be exclusive to Grantee; provided, however, Grantor reserves the right to use the Easement for any purpose not inconsistent with Grantee's rights provided: further, that Grantor shall not construct or maintain any buildings or other structures on the Easement, that Grantor shall not perform grading or other form of construction activity on the Property, which would alter the functioning of the Facilities, and that Grantor shall not blast within fifteen (15) feet of the Easement S. Indemnification. Grantee agrees to indemnify, defend, and hold Grantor, its elected officials, officers, employees, agents, and volunteers hamlless from any and all claims, demands, losses, actions and liabilities (including costs and all attorney fees) to or by any and all persons or entities, including, without limitation, their respective agents, licensees, or representatives, arising from, resulting from, or connected with this Easement. 6. Successors and Assigns. The rights and obligations of the parties shall inure to the benefit of and be binding upon their respective successors in interest, heirs and assigns. DATED THIS day of ,2008. GRANTOR: City of Federal Way By: Cary M. Roe, P.E. Assistant City Manager/Chief Operating Officer Emergency Manager 33325 8th Ave S PO Box 9718 Federal Way, WA 98063-9718 A TrEST: City Clerk, Laura Hathaway, CMC - 2- Parcel No. 618141 0990 GRANTEE: Mark J. Springall GRANTEE: Janine N. Springall Signature Signature STATE OF WASHINGTON COUNTY OF ) ) ss_ ) On this day personally appeared before me, Mark J. Springall, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that he executed the foregoing instrument as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this day of ,200 (typed/printed name ofnotalY) Notary Public in and for the State of Washington. My commission expires ST A TE OF WASHINGTON ) ) 5S. COUNTY OF ) On this day personally appeared before me, Janine N. Sprillgall, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this day of ,200 (typed/printed name of notary) Notary Public in and for the State of Washington. My commission expires ^' - -' - Parcel No. 6181410990 GRANTEE: Haggai Homes, LLC By: Signature Printed Name Its Title STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day personally appeared betore me to me known to be the of Haggai Homes, LLC that executed the toregoing 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. GlVEN my hand and official seal this day of ,200_. (typed/printed name of notary) Notary Public in and for the State of Washington. My commission expires K:\DEVELOPMENT SERVICES\NLRidge S5 Esmtdoc G:\lawtorms\easement and temp constructioll_swm 08/04 - 4- Parcel No. 618141 0990 EXHIBIT A Legal Description of Parent Parcel Tax Parcel No. 618141-0990 Tract B of Northlake Ridge Division 2 according to the plat thereof recorded in Volume 225 of plats, pages 20 through 25, under Recording No. 20041207000341, records of King County, Washington. Page 6 of 8 11266_051_doc EXHIBIT "B" PRIVATE SANITARY SEWER EASEMENT LEGAL DESCRIPTION The Southerly 10_00 feet of Tract B of the plat of Northlake Ridge Division 2, as recorded under Recording Number 20041207000341, records of King County, Washington, lying Northerly of Lot 42 of said plat, and adjoining said Lot 42. Containing 358 square feet, more or less_ Project Name: Northlake Ridge Division 2 December 17,2007 Page 7 of 8 JMSJjms 11266LOO6_psse_doc P:\ 11 ooos\ 11266\surveylplats\ 11266exh01sse_dwg EXHIBIT "C. TRACT B I ! I m I ..... I 0 <( 43 I 44 a: I- I I I I rt-10' PRIVATE SANlfARyj L S~ER ~:J --------- "'RAe "'E (j) x w V1 ::J 0 J: x 45 u <.{ r- V1 -.0 CD 0 , ~ QJ 0 U (() Q) E t- (l) o o ~~ l,6lr IT ,:;,t!( '-?~. rv v Q/?~ m t- o c( a: t- 43 44 PRIVATE SANITARY SEWER EASEMENT "RA C" € 42 45 S. 329TH ST. ~- ~ --- ----- -r r--~--~ SCALE: 1" - 30' Scale: Horizontal 1 "=30' Vertical For: NORTHlAKE RIDGE DIVISION 2 GHAU 18215 72ND AVENUE SOUTH ~~ ~ KENT, WA 98032 llJV" . ~ ~ (425)251-6222 _ ".#_ (425)251-8782 FAX <6 .~'9 . }i\ 0... (\) {.;: Job Number 11266 Sheet y ~ Q) ~ x w c.n ::J o I ~ <.) <( f- c.n -:> co o ~ o u c.n Q) E 1-= -Q) ~ o o 3: "0 Q) en en o r. x Q) <.0 <.0 N en o (1) > '-- ::J en <.0 <.0 ('oJ en o o o COUNCIL MEETING DATE: June 3, 2008 CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Butko Notice of Intention to Petition for Annexation m.__!!~~~:__~____ POLICY QUESTION: Should the City Council accept the Notice of Intention to Petition for Annexation filed by Mr. Richard Butka on April 7, 2008, and shall the city require the assumption of a proportionate share of existing city indebtedness? COMMITTEE: LUTe CATEGORY: IZI Consent D City Council Business D Ordinance D Resolution MEETING DATE: May 19, 2008 D D Public Hearing Other: Information Only STAFF REPORT By: Senior Planner Janet Shull, AICP DEPT: Community Development 4_.._____._.___.._..._.....__._.._.__...._.____........___...____...__________._.___.__....______._._______.._......____~_.._...___..____....._.____..._...._._.___..M_...__.____m__.__..___.___...._._.....__.__.__.______......__......._._'"____...___...___ Background: On April 7, 2008, the city received a Notice of Intention to Petition for Annexation from Mr. Richard Butko. Per state law (RCW 35A.l4.120), the City Council is to set a date no later than 60 days after filing of the notice to meet with the initiating parties and take action as outlined in the attached staff report. Planning Division staffwilI give a brief presentation on this topic followed by committee discussion and recommendation to the full Council. Attachment: May 13, 2008, Staff Report to LUTC, including all exhibits. Options Considered: I) Recommend that the Notice ofIntention to Petition for Annexation be accepted by the City Council; 2) Recommend that the Notice ofIntention to Petition for Annexation be accepted with a modified geographic boundary; or 3) Recommend that the Notice ofIntention to Petition for Annexation not be accepted by the City Council; and 4) Decide whether or not to require the assumption of proportionate share of existing city indebtedness. STAFF RECOMMENDATION: Staff recommends Option No.2, that the City Council accept the Notice of Intention to Petition for Annexation with a modified geographic boundary; and per Option No.4, that the annexed area be required to assume a proportionate share of city indebtedness. CITY MANAGER ApPROVAL: ~ to Committee DIRECTOR ApPROVAL: t:#f' to Committee ~ To Council JL-~ Dini Duclos, Member PROPOSED COUNCIL MOTION: ill move that the City Council accept the Notice of Int nti to Petition for Annexation filed by Mr. Richard Butka on April 7, 2008, with a modification to the geographic boundary as proposed by staff, and. that, the area to be annexed be required to assume a proportionate share of existing city indebtedness., tots totlL ({oS (!~ -+he.- w ~-f ~ ptUT,eJ 01NhU"S f'fii'ifPOi/Fo 1iPC6s1JfJ.!fED'fflcfI}l1JLlftB&f}fj.lc~>!:r COUNCIL ACTION: o APPROVED o DENIED o T ABLEDIDEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 0210612006 COMMITTEE RECOMMENDATION: Forward the recommendation of Option No. Consent Agenda for approvaL " to the June 3, 2008, City Council COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # File #08-1Q1650-00-AX Doc ID 45307 ~ CITYOF 11' 7 Federal Way CITY COUNCIL COMMITTEE STAFF REPORT DATE: To: May 13,2008 Linda Kochmar, Chair Members of the Land Useffransportation Committee (LUTC) Cary Roe, Assistant City Manager ~ Greg Fewins, CDS Directo~ Isaac Conlen, Planning Manager ~ Janet Shull, AICP, Senior Planner VIA: FROM: SUBJECT: Notice of Intention to Petition for Annexation for Butko Property MEETING DATE: May 19,2008 I. POLICY QUESTION The policy question consists of two-parts as follows: {, Should the _City Council accept, reject, or geographically modify the Notice of Intention to Petition for Annexation received on April 7, 2008, for the Butko property?; and 2. Should the City Council require the assumption of all or any portion of the existing city indebtedness by the area to be annexed? II. BACKGROUND On April 7, 2008, the city received a Notice of Intention to Petition for Annexation (Exhibit A) from Mr. Richard Butko of Butko Construction, Inc. The subject property is a 2,61 acre parcel (King County Tax ID No. 551560-0055) located north of South 320th Street and east of 1-5. The subject property is located within the City of Federal Way's designated Potential Annexation Area (P AA), The western parcel boundary is directly adjacent to the current city limits. The parcel is surrounded to the north, south, and east by unincorporated King County (Exhibit B), III. STAFF ANALYSIS 1. Description of Proposed Annexation Area and Staff Recommended Annexation Area Boundary The proposed annexation area is a single 2.61 acre parcel (Butko property) indicated on Exhibit B. Staff from the Planning Division; Public Works, Management Services, and Police Departments; and South King Fire and Rescue reviewed the Notice of Intention to Petition for Annexation and its subject property within the context of: . The city's designated PAA; . Current city limits; · Right-of-way in the vicinity of the proposal; and . Existing land use, Based on this review, staff is recommending that the boundary be modified to take in seven additional parcels located between the Butko property and the intersection of South 320th Street and Military Road, along with the South 320th Street right-of way. This modification would result in contiguous and regular boundaries as well as inclusion of a portion South 320th Street within the annexation boundaries (see Exhibit C). 2. Parcel Specific Information a) The total area proposed for annexation is a single parcel, 2.61 acres in size (reference number I in the table below), b) The total area within the staff-recommended modified annexation area is 8.45 acres. The following table lists the tax parcel numbers, parcel size, existing land use and King County zoning: Ref Tax Parcel Owner Size Existing Land Use Existing Zoning No. Number (in acres) (King County) I 551560 0055 Butko 2.61 Single Family Multifamily 2 5515600040 Reebs 1.84 Vacant Multifamily 3 551560005\ Kronlund 0.46 Vacant Commercial 4 5515600052 Kronlund 0.55 Vacant Commercial 5 5515600050 loon 0.89 Espresso Stand Commercial 6 5515600047 Kronlund 0.46 Massage and Rehab Office Commercial 7 5515600048 Kronlund 0.64 Chiropractic Office Commercial 8 5515600046 BP West 1.00 Gas Station and Commercial Coast Convenience Store Total: 8.45 3. Property Access The Butko property is accessed from Military Road, Access to the modified proposed annexation area would be from either Military Road or South 320th Street. The staff- recommended modification to the proposed annexation boundary would result in responsibility for a section of South 320th Street, located between the existing city limits and the west right-of-way line of Military Road (approximately 800 feet), shifting from King County to the city. The city's comprehensive plan anticipates widening South 320th Street from five to seven lanes by the year 2020. 4. Existing Land Uses and Natural Features Refer to Exhibit D for approximate locations of existing building footprints and the existing topography and wetlands within and adjacent to the proposed annexation area. The Butko property (parcel I) is currently utilized for residential purposes. Three of the parcels (parcels 2-4) are currently vacant. Four parcels (parcels 5-8) are currently utilized for commercial purposes, including a gas station and convenience store on the corner (parcel 8); an espresso stand (parcel 5); and massage, rehab, and chiropractic services (parcels 6 and 7), According to the city's Critical Areas Map, there is an existing Category II wetland of approximately ~ to I acre in size located on parcel 2, There are no identified steep slopes or City Council Committee Staff Report Butko Notice of Intention to Petition for Annexation File #08- to I 650-00-AX Meeting Date: May 19,2008 Page 2 Doc. tD_ 45308 geologically hazardous areas within the proposed annexation area. Areas that are not currently developed appear to contain significant vegetation cover. 5. Zoning Designations The Butko property is currently zoned R-18 (multifamily - 18 units per acre). One additional parcel (parcel 2) is zoned R-18, The remaining parcels in the proposed modified annexation area are zoned NB (Neighborhood Business). (Refer to Exhibit E.) The City of Federal Way has adopted similar zoning and comprehensive plan designations for this area. Per the 2007 Comprehensive Plan Map VII-7, Federal Way zoning is RM2400 ( 18.2 units/acre), for the parcels currently zoned R-18; and Neighborhood Business (BN) for the areas currently zoned NB in King County. (Refer to Exhibit F,) V. COUNCIL ACTION As presented in Section I of this report, the City Council is required to take action on the Notice of Intention to Petition for Annexation by June 6, 2008. This item is currently scheduled for the June 3, 2008, City Council meeting. Pursuant to state law (RCW 35A.14.120), the City Council must decide whether to accept the applicant's intention to petition for annexation and if so, under what conditions. Council members must act on the following specific decision points at the June 3, 2008, council meeting. Staff comments are provided. ./ Whether or not the city will accept, reject. or geographically modify the annexation boundaries as proposed. Annexation of the Butko property by itself would result in irregular geographic boundaries. Should the Council accept the 10% petition, a modification of the proposed boundaries is recommended to include seven additional parcels and a section of South 320th Street to provide for contiguous and regular boundaries. ./ Whether the city will require the simultaneous adoption of interim or initial comprehensive plan and zoning map designations. Pre-annexation comprehensive plan and zoning designations have already been established by the 2007 Federal Way Comprehensive Plan Map VII-7. Therefore, no Council action is required on this issue. ./ Whether the city will require the assumption of all or any portion of existing city indebtedness by the area to be annexed. Staff recommends that annexed properties be required to assume their proportionate share of city indebtedness. The city's total outstanding bonded indebtedness is $19,605,000 (as of December 31,2007, per the city's Finance Division). VI. NEXT STEPS: ANNEXATION PROCESS OVERVIEW If the City Council accepts the Notice of Intention to Petition for Annexation, then the following steps would occur assuming that the applicant pursues annexation. City Council Committee Staff Report Butko Notice of Intention to Petition for Annexation File #08-IOI65()..()()..A)( Meeting Date: May 19, 2008 Page 3 Doc. tD. 45308 1. The 60% petition is prepared for the applicant to circulate for signatures in the proposed annexation area. 2. After the signatures on the 60% petition are validated, and if the City Council wishes to entertain the petition, a City Council public hearing on the petition is scheduled, 3, After the public hearing, staff submits the Notice of Intention to Annex, and other required information, to the King County Boundary Review Board (BRB). 4. The city's annexation ordinance is written to become effective upon approval by the BRB, with the effective date fixed in the ordinance. VII. STAFF RECOMMENDA nON Staff recommends the following: 1. That the City Council accept the Notice of Intention to Petition for Annexation with modified boundaries to include seven additional parcels and a portion of South 320th Street as shown in Exhibit C; and 2. That the City Council require assumption of the property's proportionate share of the city's outstanding bonded indebtedness. VIII. LAND USE(fRANSPORT A TION COMMITTEE RECOMMENDA nON Note: if the LUTC chooses either option I or 2 as outlined below, the recommendation must also include a recommendation regarding assumption of indebtedness as outlined in Sections V and VII, above, The LUTC has the following options: 1, Recommend that the City Council accept the Notice of Intention to Petition for Annexation as submitted; 2, Recommend that the City Council accept the Notice of Intention to Petition for Annexation with modified boundaries as shown on Exhibit C; 3. Recommend that the City Council not accept the Notice of Intention to Petition for Annexation; or 4. Forward the Notice of Intention to Petition for Annexation to the City Council without a recommendation. AND: I, Require assumption of the property's proportionate share of the city's outstanding bonded indebtedness; or 2. Not require assumption of the city's outstanding bonded indebtedness. IX. LIST OF EXHIBITS Exhibit A: Notice ofIntention to Petition for Annexation received on April 7, 2008, with Exhibits Exhibit B: Annexation Petition Area Map Exhibit C: Staff Recommended Annexation Boundary Map Exhibit D: Natural and Built Features Exhibit E: King County Zoning Map Exhibit F: City of Federal Way Zoning Map City Council Committee Staff Report Butko Notice of Intention to Petition for Annexation File #08.101650-00.AX Meeting Date: May 19,2008 Page 4 Doc. I.D. 45308 CITY OF ~ Federal Waf/TV OF FEDERAL WAY CDS R E eEl V EDMENT OF COMMUNITY DEVELOPMENT SERVICES 33325 8th Avenue South PO Box 9718 Federal Way WA 98063-9718 253-835-2607; Fax 253-835-2609 www.citvoffederalwav.com APR 07 2008 NOTICE OF INTENTION TO COMMENCE ANNEXATION PROCEEDINGS To: HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF FEDERAL WAY 33325 8TH AVENUE SOUTH, PO Box 9718, FEDERAL WAY, WASHINGTON, 98063-9718 The undersigned, who are the owners of not less than ten percent (1O%) in value, according to the assessed valuation for general taxation of property for which annexation is sought, hereby advises the City Council of the City of Federal Way that it is the desire of the undersigned residents of the following area to commence annexation proceedings: The property referred to herein is outlined on the map that is marked Exhibit "An and is described in Exhibit "B" attached hereto_ It is requested that the City Council of the City of Federal Way set a date of not later than sixty (60) days after the filing of this request for a meeting with the undersigned to determine: I) Whether the City Council Will accept the proposed annexation; 2) Whether the City will require the assumption of existing city indebtedness by the area to be annexed; and 3) Whether the City Council will accept the proposed annexation on the condition that the area proposed for annexation be zoned prior to the annexation of the proposed area. This page is one of the group of pages containing identical text material and is intended by the signers of this Notice of Intention to be presented and considered as one Notice of Intention, and may be filed with other pages containing additional signatures which cumulatively may be considered as a single Notice of Intention. OWNER'S SrGNATURE PRINTED NAME ADDRESS DATE SIGNED 2. P. D. (l,o'f-32.(.b tf/;/4? f-1~fJ.I..~O C_ /Ju7ko r /tJ FR'KL- wA~ /.vA. . ~, P S.7?/ S- HIL-'IJ.FLr ~O ~"V' ~/ppr~VM~s- - ;rl ot5v~i.J lJ.A. ??~/-51/ f JjJtU-- 3. Bulletin #0 17 - August 18, 2004 Page 1 of4 k:\Handouts\Annexation Intention Memo EXHIBIT A t Df 6 ~ W N o -I I r .. Q HZ 2$0 , '04- -47:6 Z50 .1_'(5t:'!) f>...,..1 ~. '" C- ~ ~ -" ~ <so -" ~ <::::. -:- ? ~\i..C)~ --'I.~ "" S Z.CJ-f- - 2..:S;;'WZS. o./.3/,.,q-,r.j 2.00 , ~ Q a ~ ".L ~ -" ~--~ -I~, --100 "'00 1 ,'-1 ~ ,c., OJ , -l:. o "- -.0 :v o <> ""e ~ 1\ .3-S0 "" <:> -,- "" ~ ~ ...~ "" - " \l'.'~ ~ " .... (.. O~ .~_."-"'_.,,/o'~~ ...350 200 ~ """ ~ "" '" ~~ ~'- ~ "- c, '-'" ~ """ ~ o " ",..r- \,-'-J' 'h. ~ '" I '~ - "' .,., '{) ~. l\) [,0 ,~/_~ .---: I ~.!!~ - ,:.;:::------ u '<.11 I \ I \ 1/'1 C. ---.0 _ ___________ 0'<.1 O't1 ^ CJ 00 ' --- \ 00' 0'" 00' RE <>01 'z \ ~ Covered Risk 18: (Encroachrrent of Bounda Walls or Fences) : 1% of IDlicy Mount or $2,500.00 (whichever is less) $25,000.00 Street Address of the Land: 31815 Military Road South, Auburn, WA 98001 1. Name of Insured: RICHARD G. BUTKO, a married person, as his separate estate 2. Your interest in the Land covered by this Policy is: FEE SIMPLE 3. The land referred to in this Policy is described as: Tract 11, Midway Suburban Tracts, according to the plat thereof recorded in Volume 38 of Plats, page 40, in King County, Washington. \ \ ) \ '_1'-," . _._ RECEIVED APR 0 7 2008 CITY OF FEDERAL WAY CDS EXHIBIT A .~ ek IS ~ MIDWAY SUBURBAN TRACTS o o '1 . ~ . ~ 0 o I) .... ~ 'I ,D'/' "Q'~l~'- ~ '~Q" " 38"l.-...., 'S" eD04t(WAJ i 0 ~ Q $ '" ~ ,. i: 1I~ .' - ~C,D ~~,. ,.' 1 -.NIJ1..........tfI(, "J,' gO' . ".. "" ~ . .;\,& ! 1-- .. ..~ Q ~ ...t.(" ~i .. ~ 2.00 6 k rtf. '1'/ 7-1.,,98 , 'A \ , 12 .s-~".98 /I '00 . 0 ~ 0 ... . ~ '00,,1"' ,.,0 ..~')- of ~ .,. ., " <( 91 100 ",A. ,1 ..00.,0 ,- 00 0' , ~, I .' ,.,0 16'.lJI1 Company of Washington, Inc. Order No. VOL. 38 PG. 40 .J> 0..,1,1.. IY'.OS" ." 197." o. + to - .,. .. ... :. ... ..J 1/-"" 43~",. ~! .,sf/A" - o ... N I IMPORTANT: This is not a Plat of Survey. It is furnished as a I convenience to locate the land indicated hereon with reference to ! ~~~::~s and other land - No liapi! i ty is assumed by reason. of re RaEC E IV Ed 581735 APR 0 7 lOCa CITY OF FEDERAL WAY CDS EXHIBIT_ A ~f- .5 King County Property Description for parcel number 5515600055 W King County Page I of 2 Assessor information for parcel number 5515600055 Taxpayer name BUTKO RICHARD G Parcel number 5515600055 Tax Account number 551560005508 Mailing address 4517 NASSAU AVE NE TACOMA WA 98422 Levy code Jurisdiction Present use Appraised value ~.; ) ~ ; KING COUNTY Single Family(CII Zone) $228,300 Address(es) at this parcel None - Legal descrir.tion MIDWAY SUBURBAN TRS ~ Sales hist<J.~Y~ 11-29-2007 $0 BUTKO RICHARD G BUTKO RICHARD G VINYARD HELEN L VINYARD HELEN LOUISE VINYARD LESTER D Statutory Warranty Deed Quit Claim Deed Property Settlement Trust 12-17-2003 $0 VINYARD HELEN L VINYARD HELEN LOUISE FOOTE NEDA F Quit Claim Deed 12-17-2003 $0 20 'j 2:5Da Quit Claim Deed Estate Settlement Settlement 09-10-1986 $0 1 Ct~~.j45 : ~)Ut~,,_:<:: Quit Claim Deed - Parcel description Property RESIDENCE name Property type C - COMMERCIAL Plat name Plat block MIDWAY SUBURBAN TRS Water system WATER DISTRICT 11 SW-10-21-4 Sewer system Access Street surface PUBLIC Present use Lot area Single Family(CII Zone) 113,691 sq, ft. (2.61 acres) Plat lot Q-S-T-R PUBLIC PAVED 2008 T~BLE NONE OR UNKNOWN $227,300 (land) + $1.000 (improvements) $228,300 (total) $227,300 (land) + $1 000 (improvements) $228,300 (total) $195,700 (land) + $1.000 (improvements) $196,700 (total) $227,300 (land) + $1.000 (improvements) $228,300 (total) $227,300 (land) + $1 000 (improvements) $228,300 (total) $195,700 (land) + $1.000 (improvements) $196,700 (total) ~- qM .~...- qRE-G-EIV-E-D-. 2007 T~BLE NONE OR UNKNOWN 2006 T~BLE NONE OR UNKNOWN ~~d Related King County Assessor: Subrnlt <l fe9,yest tqcQrrectlnfQrmgtion inthi$ (@port King County Assessor: eReal Property Report (PDF format requires Acrobat) King County Assessor: Quarter Section MflP (PDF fonnat requires Acrobat) King County GIS: PI"QPl:!rtYiflf9rm~t!QI1FAQ APR 0 7 2003 CITY OF FEDERAL WAY CDS http://www5.kingcounty.govIKCGISReportslproperty Jeport _print.aspx?PIN=55 15600055 ~/7/2008 c3 EXHIBIT _h ~ of ';:J s:::: o >. ~ m "0 c :;j o (l) c o +:; m x Ql >. c 1::: C Ql <( Q. 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