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FEDRAC MIN 04-28-2009 A Federal Way MEETING SUMMARY Committee Members in Attendance: Committee Chair Park and Committee Members Duclos and Faison Councilmembers in Attendance: Mayor Dovey and Councilmembers Burbidge, Ferrell and Kochmar. staff Members in Attendance: City Manager Neal Beets, Assistant City Manager Cary Roe, Police Chief Brian Wilson, Deputy Police Chief Andy Hwang, City Attorney Pat Richardson, Deputy City Attorney Aaron Walls, IT Director Mehdi Sadri, Finance Director Tho Kraus, Human Resources Director Mary McDougal, Community Development Director Greg Fewins, Communications & Governmental Affairs Manager Linda Farmer, Court Administrator Rae Iwamoto, ICMA Fellow Scott Pingel and Deputy City Clerk Krystal Roe. 1. CALL TO ORDER: 5:31 P.M. Committee Member Duclos moved to amend the agenda to move items "i" and "1" to immediately follow item "g". Committee Member Faison second. Motion carried 3 - O. 2. PUBLIC COMMENT: H. David Kaplan spoke about the importance of filling the Parks Director position. He expressed concern that a lack of strong leadership in this position may cause the Parks system to fall behind, causing increased future costs to bring the department back up to speed. He asked that the hiring freeze for this position be lifted. 3. COMMITTEE BUSINESS MOTION: Topic Title/Description A. Approval of Minutes: February 24, 2009 Meeting Motion second and carried to approve the minutes as presented (carried 3-0). B. Approval of Minutes: March 24, 2009 Meeting Motion second and carried to approve the minutes as presented (carried 3-0). C. Legislative Briefing J. Local Update by Doug Levy via Conference Call Ms. Farmer distributed a handout from Mr. Levy which provided a brief status update on legislation and issues important to the City. Mr. Levy joined the meeting via a conference call and highlighted some of those topics. Mr. Levy highly commended Chief Wilson and Ms. Farmer for their efforts this season, particularly in regards to the look-a-like gun bill signed into law. Forward to Council N/A N/A N/A FEDRAC Meeting Summary April 28, 2009 - Page 2 of 5 2. Federal Update for March & April Ms. Farmer distributed the April activity report from Strategies 360 pertaining to key federal lobbying activities and events. Ms. Farmer highlighted several items in the report and noted the helpfulness of Strategies 360 staff in working to build relationships with our federal leaders. Councilmember Kochmar inquired about the possibility of introducing Strategies 360 to the Council. Ms. Farmer answered plans are underway to introduce them to Council in the summer of this year and perhaps again in December. Chair Park asked Ms. Farmer to speak to Strategies 360 about the Chamber of Commerce's planned trip to Washington, D.C. on May 12 and their ability to help coordinate appointments with the legislators. Ms. Farmer will be sure to raise the issue with them. D. RESOLUTION: Adopting an Identity Theft Prevention Program for the Surface Water Utility Mr. Walls presented his staff report. Motion second and carried to approve option 1 and forward to the consent agenda (carried 3 - 0). Vouchers E. F. Motion and second to approve the vouchers as presented. Discussion: Committee Member Faison inquired about two expenditures from March 25 (page 59) totaling $1,398.0lfor casino trips. Staff clarified the expenditure was part of the Parks & Recreation activities class purchased by senior citizens as an outing/field trip. City funds were not used for gambling. Motion carried 3-0. Monthly Financial Report Ms. Kraus presented her financial report to the Committee for consideration. She highlighted revenues, expenditures, and cash & investment performance. Ms. Kraus focused a portion of her report on the performance of the Federal Way Community Center. The Committee discussed that the chart on the bottom of page 67 regarding utility tax seems duplicative. Consensus was reached to eliminate this chart in future reports. The Committee inquired about the decline in Solid Waste & Recycling utility Tax revenue. Ms. Kraus will report back at the next meeting with an analysis. Chair Park called a brief recess due to a medical emergency in the audience. The meeting was reconvened after 10 minutes. Committee Member Duclos raised concems about the deficit a the Community Center which she said seems to be mounting. Mary Faber, PRCS Superintendent, addressed the Committee and explained recent changes aimed at reducing the deficit. Changes include staff working hours and schedules to be most efficient with demand. In response to direct questions, Ms. Faber clarified the changes made will bring staffing expenditures back on track by year end. She further reported they are closely monitoring the cost and purchase of supplies and working with vendors to renegotiate costs. Supplies have also been purchased in bulk at the beginning of the year to take advantage of savings 5.5.2009 Consent 5.5.2009 Consent 5.5.2009 Consent FEDRAC Meeting Summary April 28, 2009 - Page 3 of 5 benefits. She hopes these amounts will flush out by years end. In regards to revenue, the greatest challenge remains the discrepancy between the business plan's targeted daily pass sales versus actual sales. The business plan assumed 300 passes per day (on average) would be sold; reality is approximately 210 on an annual average (with summer months having a higher daily pass rate lower in winter months). Some of the fitness programs have been extremely popular and profitable. To continue with the success, other similar programs will be offered in the near future including a fitness program for couples and two which will target teens. The Committee asked for a review of current pass holder rates. Daily rates, including taxes, for adults is $8, Seniors/T eens $5, and kids are $4. Membership passes are $35/month for single members and $61/month for families (2 - 6 people) . Ms. Faber emphasized staff has done well in converting daily-use pass purchases into membership passes which then shows a negative impact on the daily pass numbers. The Center has also pushed to add more aquatic programs including additional swimming lessons, fitness programs and activities to take advantage of higher interest in this area. The Committee inquired about efforts to implement the marketing plan. Ms. Faber stated the contract with the vendor has just now been fully-executed; work will begin shortly. Also, the new logo will be loaded into a new banner on the Federal Way Mirror'swebsite beginning May 1,2009. Council member Kochmar inquired about vertfication of the gambling tax reported revenue. Ms. Kraus answered the City has the authortty to conduct an audit for the reporting business. Councilmember Kochmar inquired about the status of the Utility Tax Rebate Program. Ms. Roe replied the number of applicants has increased this year to just under 100 which is up from last year's total of nearly 75 persons. Ms. Roe further stated the deadline to apply is Thursday, Aprtl 30. To date, nearly 50 applications have been processed with refunds ranging from $18 up to nearly $300. Councilmember Kochmar encouraged anyone with friends or family to apply by the deadline. Motion second and carried to approve Monthly Financial Report as presented (carried 3 - 0). G. Carry-Forward Requests Ms. Kraus presented her staff report and highlighted the recommended carry-forwards and the cost savings from expenditures removed from the Internal Service budgets. Ms. Kraus noted these recommended carry-forwards have been heavily scrutinized by the City Manager and the Management Team and are as pared down as possible; likely the most conservative request, ever. She further noted that approving these requests would increase the budget deficit to $4.4 million. Motion second and carried to approve the staff recommendation (carried 3-0). Approval to Pursue Available Grant Funding for Traffic Safety Improvements Ms. Iwamoto presented her staff report and requested approval to seek grant funds for a new DUI court. She noted there would be no initial 5.5.2009 Intro Ord & Enactment 5.5.2009 Consent FEDRAC Meeting Summary April 28, 2009 - Page 4 of 5 financial cost to the City. She reviewed the purpose of the program and how the grant funds would be utilized. In response to a Committee inquiry, Ms. Iwamoto answered their preliminary plan is to request approximately $62,000 to start the court. The program would require the entire staff to attend training out of state (judges, court administrator, probation officers, public defenders and prosecutors) at cost of $10,000 - 12,000. She also answered that additional grant funding opportunities would be available, but would require an annual competitive application process. The Committee discussed concerns as to whether or not participation in a DUI court would remove convictions from the criminal record of an offender. Ms. Iwamoto answered it would not be removed for persons who were assigned DUI court post-sentencing, but may for those who agreed to participate pre-trial. Other counties with DUI courts include Thurston, Grant & Spokane. Ms. Iwamoto will be working with those jurisdictions to learn more about their practices and costs. She is unaware of any other courts, including King County, but will investigate further. The Committee asked Ms. Iwamoto to bring specific funding and budget figures with her to the Council meeting. Motion second and carried to approve option 1 (carried 3 - 0). Energy Efficiency and Conservation Block Grant Mr. Gary Nomenson, an representative from PSE addressed the Committee and audience regarding potential partnerships between the City and PSE to best utilize these grant funds. Mr. Pingel presented his staff report and clarified he seeks Council approval to apply for grant funds available through the Department of Energy. Under this program, the City would be able to apply for a implementation of energy conservation programs in a broad spectrum (hybrid cars, natural gas conversions, building improvements, etc.) After the grant is awarded, the City would have 120 days to submit its energy conservation proposal. Motion second and carried to approve option 1 (carried 3 - 0). H. Long-Range Plan Update Mr. Beets gave a PowerPoint presentation outlining the current budget status, the history of the budget in recent years, and proposals for eliminating the deficit. J. In summary, his recommended proposal includes cuts to the following: · 7 employee lay-offs · closing Dumas Bay Center · furloughs for 15 employees; 10 days each · eliminating the previously allocated COLA for 2010 (but not 2009) · reduce CM Contingency fund by $1 million Additional cost savings measures include hiring freezes (8 significant positions) : · Parks Planner · Development Services Manager & Engineering Plans Reviewer · Vacant Police Lieutenant, 3 Police Civilian Positions, and CM Admin (.5 FTE) Position 5.5.2009 Consent FEDRAC Meeting Summary April 28, 2009 - Page 5 of 5 Eliminating Reserve/Depreciation Account Contributions: · Vehicle Replacement · IT Equipment Replacement · Unemployment Insurance Account Mr. Beets strongly recommend Council institute a policy of re-allocating utility tax (not including Prop 1 taxes) to be used for operating rather than capital expenditures. When REET is again strong Council could revisit how utility taxes are allocated. David Bauch, Arts Commissioner, inquired about the proposed cuts to Dumas Bay and how it would impact the Knutzen Family Theater /Centerstage. Mr. Beets answered his current proposal would keep Knutzen Family Theater open and accessible (such as entrances, restrooms, etc.), but would close all other aspects of Dumas Bay Centre. The Committee and Council asked Mr. Beets to provide the following at the May 5, 2009 Study Session: · Financial impacts for each slide from his presentation (line-item details for all proposed cuts/reductions/proposals). · How other cities with utility taxes allocate their revenue (% of capital and operating funds). · Other options for restructuring the budget other than reallocating the utility tax. · Details on services levels and how they would be impacted by an across-the-board cut to all departments, including Police. · If possible, the Council would like to receive these figures in advance of the meeting; Mr. Beets stated he would attempt to get them by Monday, May 4. The Committee complimented Mr. Beets and everyone who worked on the proposal for their work; they expressed the proposal was good and obviously was the result of a lot of effort, thoughtfulness, and hard work. The Committee also inquired if Mr. Beets has, or plans to, sit down with staff to discuss his proposals and to ask for staff ideas/input. Mr. Beets has met with some staff, including Management Team members and feels that department directors have a good understanding of their employee's ideas and concerns. The Committee encouraged employees to attend the May 5 study session and to provide input at the meeting. 4. OTHER: None 5. NEXT MEETING: Tuesday, May 26, 2009 @ 5:30 p.m. The meeting was adjourned at 8:00 p.m. Attest: COM:<;;~ ~ Mi rk - Committee Chair t2.:~ rystal R:::; City Clerk Dinl uclos Eric Faison Committee Member Committee Member