FEDRAC MIN 09-22-2009<itr ov
Federal Way
City Council
onal Affairs Committee
CommitFee Members in Attendance: Committee Chair Park and Committee Member Duclos.
Councilmembers in Attendance: Councilmember Burbidge, and Councilmember Kochmar.
Staff Members in Attendance: Interim City Manager Brian Wilson, Financial Services Administrator Bryant
Enge, City Attorney Pat Richardson, Interim Police Chief Andy Hwang, Finance Director Tho Kraus,
Economic Development Director Patrick Doherfy, Recreation Supervisor poug Nelson, Public Works 8�
Parks Director Cary Roe, and City Clerk Carol McNeilly.
1. CALL TO ORDER Chair Park called the meeting to order at 5: 31 pm and excused Committee
Member Faison.
2. PUBLIC COMMENT
None
3. COMMITTEE BUSINESS
Placement
Topic Tffle/Description Council Date
A. Approval of Minutes: August 25, 2009 Meeting N/A
Motion: Duclos moved approval, Park second. Motion carried 2-0.
B. Business Incubation in Federal Way
Tom Pierson, Chief Executive Officer, Federal Way Chamber of Commerce
provided a Power Point on business incubation and stated they are designed
to create jobs and accelerate the successful development of companies.
Mr. Pierson reviewed the Chambers proposed business plan for creating a
business incubator in Federal Way. They have leased a 14,000 square foot
building and plan to make tenant improvements. Funding from WA State and
ARRA Job Growth funds have been secured. They are seeking financial
contributions from the City $100K in 2010 and 2011.
The Committee asked clarifying questions of Mr. Pierson.
The Committee requested Mr. Wilson ask Mayor povey to add this item
October 6, 2009 Council Meeting under Council Business.
C. Legislative Briefing
None. Chair Park requested staff provide the Committee adequate notice
when a scheduled item was not going to be presented.
N/A
N/A
COMMITTEE MEMBERS: CITY STAFF:
Mike Park, Chair Bryant Enge, Financial Services Administrator
Dini Duclos Krystal Roe, Deputy City Clerk
Eric Faison 253.835.2541
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Meeting Summary
D. SCORE Update/SCORE Funding
Mr. Enge reported the construction costs for the SCORE Facility is estimated
between 44- 56 million dollars, and development costs are estimated at 38
million dollars. Grading has begun on the project site, construction will begin
by the end of 2009 and the facility is slated to open June 2011.
Mr. Enge stated the SCORE has explored the option of financing their portion
of the project with Build American Bonds (BABS), rather than tax-exempt
bonds. BABS provide lower interest rate, which would save the City money,
however, there are strict regulations associated with them and they would
require a one-time expenditure of approximately �807,500. Mr. Enge stated he
is seeking a recommendation form the Committee on whether the City should
recommend moving forward with tax-exempt bonds or moving forward with
BABS.
Staff stated the funding source for the one time expenditure would be REET
and Utility Tax funds allocated for the purchase of the Camp Killworth
Property.
Mr. Enge also reported the rating agencies have met all of the participating
cities individually and will be meeting with the SCORE Board this week.
Motion: Duclos moved to recommend funding the SCORE Project with Build
America Bonds and a one-time expenditure of $807,500. (from REET and Utility
Tax funds), and forvvard the recommendation to the October 6, 2009 Council
meeting for approval. Park second. Motion carried 2-0.
E. Monthly Financial Report
Ms. Kraus presented her financial report to the Committee for con�deration. The
overall operations of the combined General and Street Fund show a negative $113K
year to date. Sales Tax, Criminal Justice sales tax, Gambling Taxes, and Public Works
Permits and Fees continue to decline. Sales Tax revenues through August were $152K
below budget, and through September are $196K below budget. Based on this
trend, year-end projections estimate Sales Tax Revenues to be $260K below budget.
Recreation Fees through August are $647K ($170K over budget projections),
and are anticipated to increase $175K by year-end. Attendance at the
Community Center has increased with the addition of new programs for
youth, adult and people with disabilities.
Chair Park requested Mr. Wilson ask Mayor povey to provide a financial report
at the Oct. 6 Council Meeting under Emerging Issues.
Motion: Duclos moved approval of the August 2009 Monthly Financial Reporf
and forward to the October 6, 2009 Council meeting for approval. Park
second. Motion carried 2-0
F. Vouchers
Motion: Duclos moved approval of the vouchers and forwaPd to the October
6, 2009 Council meeting for approval. Park second. Motion carried 2-0.
4. OTHER
None
10/06/09
Council
Consent
10/Ob/09
Council
Consent
10/O6/09
Council
Consent
5. FUTURE AGENDA ITEMS
October housekeeping.
6. NEXT MEETING: Tuesday, October 27, 2009.
Chair Park adjourned the meeting at 6:29 pm.
Attest:
Caro McNeil ity
COMMITTEE APPRO
�.1�-�
�I. P rk Dini Duclos Eric Faison
Committee Chair Committee Member Committee �Member