FEDRAC MINS 06-24-2008
~ Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, June 24, 2008 City Hall
5:30 p.m. Hylebos Conference Room
MEETING SUMMARY
Committee Members in Attendance: Committee Chair Park and Committee Members Duclos and
Faison.
Councilmembers in Attendance: Kochmar and Burbidge.
Staff Members in Attendance: City Manager Neal Beets (5:50 arrival) Interim Assistant City Manager
Mary McDougal; Deputy City Attorney Aaron Walls, Finance Director Tho Kraus, Senior Financial
Analyst Mark Turley, Deputy Public Works Director Marwan Salloum; Deputy Police Chief Andy Hwang;
Lieutenant Mark Bensen; and Deputy City Clerk Krystal Roe.
1. CALL TO ORDER: The meeting was called to order at 5:32 p.m.
2. PUBLIC COMMENT: None.
3. COMMITTEE BUSINESS:
AGENDA TOPIC, DISCUSSION & ACTION
A. Approval of Minutes: May 27 22, 2008 Meeting. The summary was amended to
reflect Councilmember Burbidge's presence at the meeting.
The Committee M/S/C to approve the minutes as amended. Carried 3 - O.
B. Acceptance of Grant Funds from the Washington Traffic Safety Commission &
Purchase of Motorcycles for the Police Traffic Unit: Deputy Chief Hwang
presented the staff report. He stated that in recent years the cost to lease
motorcycles has risen substantially. Because of the higher lease rates, it now
makes sense to transition to a purchase plan.
Deputy Chief Hwang explained the Department's proposal for a staggered
purchase/lease plan ensures the vehicles will obtain their projected maximum
useful life at different times. Doing so will prevent the City from replacing all the
vehicles at anyone time.
In response to a Committee question, Lt. Bensen answered that the vehicles would
have a monetary value at the end of their service life and could expect to
generate some revenue when sold.
FORWARD
TO
COUNCIL
N/A
July 1
Consent
Agenda
The Committee M/S/C to approve Option 1 (move to a partial lease plan by
purchasing two leased motorcycles with wrsc grant money; Purchase two new
motorcycles with R&R money; Lease one additional motorcycle; Purchase a third
leased motorcycle in 2009 with R & R money). Carried 3 - O.
June 24, 2008 FEDRAC Meeting
Summary Minutes
Page 2 of 3
C. Approval of Vouchers: No questions were posed.
The Committee M/S/C to approve the vouchers as presented. Carried 3 - O.
July 1
Consent
D. Monthly Financial Report: Mark Turley presented the staff report. The Committee
inquired about the high utility tax revenue variance between home phone service
and cell phone service; Mr. Turley will check the numbers for accuracy.
During his report, Mr. Turley noted that the building permit fee for the Korean
Women's Association had been waived by former City Manager David Moseley.
The Committee asked that the decision-making process for the waiver be
reviewed at the next FEDRAC meeting. The Committee members expressed
concern that the reasons for the waiver should be reviewed and discussed so that
it is clearly understood. The Committee asked Mr. Salloum to follow up with
Community Development Director Greg Fewins on this issue and return to the July
22, 2008 FEDRAC meeting.
The Committee M/S/C to approve the report as presented. Carried 3 - O.
July 1
Consent
Agenda
E. Impact Fee Performance Audit Update (INFO ONLY - NO ACTION): Ms. Kraus summarized the
preliminary audit results and distributed the City's initial reply. She noted the audit's small
scope made it difficult to consider useful at this time. She clarified the performance audit is
non-binding; its intended purpose is to improve efficiency and highlight best practices for the
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4. OTHER:
A. Review November 7, 2006 Proposition 1 utility Tax Rate Increase: Ordinances, (No. 06-
539 & 06-532) and Ballot Language: Committee member Faison asked staff to provide
a legal analysis at the July 22, 2008 FEDRAC meeting about using excess Proposition 1
revenue within the existing language parameters set by the Ordinance and ballot.
B. Historical Review of the City's Asphalt Overlay Program: Mr. Salloum distributed two
handouts detailing the Overlay Program's rating, budget and expenditure history.
The Committee discussed the City's current OCI rating and noted neighboring cities
have not maintained their asphalt as well as Federal Way; they are now experiencing
difficulties funding repairs.
Mr. .Salloum also clarified that while the budget number has remained the same, the
scope of the overlay program has declined each year because of rising expenses.
Without an adjustment for inflation and cost increases, the program will cover fewer
areas each year.
Low-Income Senior Citizen & Low-Income Disabled Citizen utility Tax Rebate Program: Ms.
Roe gave a brief update on the status of the program. This year, a total of 72 rebates were
issued; 34 were from new customers including 20 low-income disabled persons. The rebates
totaled approximately $9,529 with an average rebate of $132. Ms. Roe and Ms. Courtney will
continue to reach out to the community to expand the program and reach more citizens
next year.
June 24, 2008 FEDRAC Meeting
Summary Minutes
Page 3 of 3
streamlined Sales Tax (SST): Chair Park inquired about the status of the SST and the value of
projected revenue from this change. Ms. Kraus replied the initial estimate was a quarter
million dollars, but she's heard from the Department of Revenue that those figures are
outdated with no updated figures available at this time. However, she did report that the
City of Federal Way will be gaining revenue. The SST will become effective July 1, 2008 and
staff will report the figures as soon as they are available.
5. FUTURE AGENDA ITEMS: Nothing further discussed.
6. NEXT MEETING: Tuesday, July 22,2008 @ 5:30 p.m.
Chair Park adjourned the meeting at 6:27 p.m.
Attest:
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Committee Chair
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Committee Member
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Eric Faison
Committee Member