FEDRAC MIN 05-25-2010CIiY OF
Federai Way
City Council
SUMMARY
1. CALL TO ORDER: Chair Mike Park called the meeting to order at 5:30 p.m.
Committee
Committee Members in Attendance: Committee Chair Park and Committee Member Burbidge;
Committee Member povey excused.
Councilmembers in Attendance: Mayor Kochmar and Deputy Mayor Duclos
Staff Members in Attendance: Financial Services Administrator Bryant Enge, City Attorney Pat Richardson,
Finance Director Tho Kraus, Acting Police Chief Andy Hwang, Police Commander Melanie McAllester,
Police Commander Stan McCall, Police Support Services Supervisor Cathy Schrock, Economic
Development Director Patrick Doherty, Community Development Director Greg Fewins, Senior Planner
Margaret Clark, Communications & Governmental Affairs Manager Linda Farmer, Recreation Supervisor
Doug Nelson, Acting IT Supervisor Thomas Fichtner, and Deputy City Clerk Krystal Roe.
Chair Park changed the agenda to move item I- Gambling Tax Ordinance - to immediately follow the
legislative update.
2. PUBLIC COMMENT: Chair Park noted comments could be made immediately, or later as part of specific
agenda topics. David Kaplan noted he wished to speak to item G- TEG Applications.
3. COMMITTEE BUSINESS:
Council
Topic Title/Description Placement
A. Approval of Minutes: April 27, 2010 N/A
Motion second and carried to approve as presented. Carried 2- 0.
_ __ _ _ _ _ _. . _
B. Legislative Report: April 2010 N/A
Ms. Farmer presented the report from the City's federal lobbyist firm, Strategies 360 and
stated not much has changed from her report last month. Since April 27, the City has sent
thank you letters to the federal legislators for their support and budget funding requests
for the Triangie Project.
It appears SAFTEA-LU will not be extended after this year; it's likely a new SAFTEA-LU wiil be
crafted for 201 1.
The Committee inquired about HR5156 as quoted in the report and its relevancy to the
City of Federal Way. Ms. Farmer responded she was unaware of the tie to Federal Way,
will investigate the issue, and report back at the next FEDRAC meeting. _
The Committee inquired about the performance of Strategies 360. They directed Ms.
Farmer to report back on the value of their services versus the expense. Ms. Farmer will
provide a presentation in August, prior to a contract extension.
ORDINANCE: Amending Gambling Tax Ordinance No. 90-15 and 98-329 Intro Ord
Ms. Kraus resented the staff re ort clari in the onl difference between o tions 1'and � Enact
P P fY 9 Y p obioiiio
2 is the timing of the effective date. The first option provides first reading and enactment
on June 1, 2010 with an effective date of June b. Option 2 follows the traditional
ordinance process with first reading on June 1, second reading/enactment on June 15,
publication on June 19 and an effective date of August 1.
Ms. Kraus distributed data showing gambling tax rates & establishments in neighboring
communities, maximum rates established by law, and gambling tax revenue history.
FEDRAC Summary
May 25, 2010 - Paae 2 of 5
PUBLIC COMMENT:
Steve Griffiths Co-Owner of PJ Pockets Casino asked the Committee to consider an
expedited process which would allow their b�siness to re-open in August. Presently 85
employees have just been laid-off in addition to 40 more in prior months.
Kellv & John Folev, Owners of the Time Out Ale House urged the Committee to reduce
the gross tax on pull tabs to 3% rather than the proposed reduction of 4%. They
explained taxing their gross sales (as opposed to net profits) results in an actual tax in
excess of 20% for most of their pay-out (i.e. prize) levels. Mrs. Foley distributed data
spreadsheets with figures supporting their position. The couple further stated they've
recently been forced to reduce staffing hours, change benefits coverage and are now
faced with cutting some jobs all together. They believe a 3% gross tax rate will stimulate
growth.
Jason Schafer of the Firehouse Pub in Buckley, Washington stated the maximum
gambling rate for pull tabs allowed by the state is 5% with an average of 3%.
The Committee questioned whether lowering the tax rate would encourage more
gambling and raised concerns about how to best encourage small businesses without
encouraging additional gambling.
The Committee asked clarifying questions of staff including the annual estimated
financial impact of lowering the pull tab tax rate to 3% versus 4%. Ms. Kraus estimated a
difference of $55,000 annuaily based on 2009 pull tab tax receipts of $280,000.
Police Chief Andy Hwang summarized police activity/calls for the two establishments and
stated overall they have been good community neighbors with cooperative
owners/management.
Chair Park expressed support for a 3% tax rate for pull tabs and 10% tax rate for card
rooms. Chair Burbidge expressed support for higher tax rates. However, both agreed to
a tax rate reduction with an amount to be set at the June 1 Council meeting using the
expedited process.
Motion second and carried to forward to the June 1, 2010 for first reading and enactment
with an effective date of June 6, 2010 Council meeting without recommendation for
gambling tax rate. Carried 2- 0.
As an aside, Mayor Kochmar noted the door to the Hylebos Conference Room was
closed (by a member of the public) and asked City Attorney Richardson if the meeting
was in compliance with the state's Open Public Meetings Act. Ms. Richardson stated it
was acceptable to close the door; the meeting was properly advertised and remains
open to the public throughout the duration of the meeting.
C. Capital Replacement Reserves for Federal Way Community Center Automated Pool Consent
Vacuum obio�i�o
Mr. Nelson stated three verbal quotes were received. The lowest bidder has been a
good vendor for the City. Staff recommends awarding the contract to them.
Motion second and carried to approve the purchase of an automated pool vacuum
from Lincoln Equipment, Inc., using capital replacement in the amount of *$4,259.81 and
forward to the June 1, 2010 City Council Consent Agenda (option 1). Carried 2- 0.
D. Surface Water Maintenance Management System - Authorization to Purchase Consent
06/O1/10
Mr. Appleton presented his staff report. He noted the benefits of this new software
package including nominal staff training of only 1- 1.5 days, lower maintenance costs
moving forward versus the Hansen system, and an easy-to-use program.
The Committee directed staff to include copies of the bids received, or a bid tabulation,
when asking for purchase authorization in the future. Staff committed to do so.
Motion second and carried to authorize staff to purchase a new Surface Water
Maintenance Mana�ement System from VUEWorks at a cost of $32,028.18, utilizing
_, .. ___ _ _ _ _ _
FEDRAC Summary
May 25, 2010 - Paqe 3 of 5
E. Application for a Communities Putting Prevention to Work (CPPW) Grant
F. Purchase of Document Scanner for Police/CIS
replacement reserves in the amount of $26,768.00 and Department of Ecology grants for
the balance. Carried 2- 0.
Ms. Clark presented her staff report and stated staff seeks to gain consensus from the
Committee on whether or not to apply for the grant; the item would not proceed to
Council at this time. However, if the City is awarded grant funds, staff will return to the full
City Council for authorization to accept.
Motion second and carried to support submittal of the grant application. Carried 2- 0.
N/A
Consent
06/O1/10
Mr. Fichtner presented the staff report.
G.
Motion second and carried to authorize the purchase of a high-speed document
scanner to be used by the Police Department with funding through the RSO grant for an
amount not to exceed $5,000. Carried 2- 0.
Spring Tourism Enhancement Grant (TEG) Applications
PUBLIC COMMENT:
H. David Kaplan stated the lodging Tax Advisory Committee took a long time to
weigh/evaluate the grant requests. He is supportive of the award recommendations as
presented.
Mr. Doherty presented the staff report and outlined the funding requests and
recommended allocations. He noted the sand sculpting event was not awarded money
because they have already been awarded $23,000 under another funding option.
Motion second and carried to accept the LTAC-recommended TEG awards as indicated
in the table contained in the staff report (total allocation $18,000). Carried 2- 0.
_ _ _ _ _ _
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Consent
Ob/O1/10
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Mr. Enge reported his office is still researching this topic and working with Puget Sound
Energy to better understand how/if to partner with them for this program.
Representatives from Puget Sound Energy are not available to meet with Mr. Enge until
June 1 1. Mr. Enge will return to the Committee on June 22, 2010 with more information.
N/A
J. RESOLUTION: Amending the 2010 Fee Schedule and Repealing Resolution No. 09-567 Consent
(Regarding Animal Licensing) obioii�o
Ms. Kraus presented the draft resolution and staff report. The Committee inquired about
the higher expense of altered dogs versus altered cats. Staff replied altered dogs
typically require more animal control services.
The Committee asked how the fee schedule was determined. Staff answered fees of
surrounding communities were taken into consideration. Also, the rates are purposely
lower than King County's to encourage licensing with a compliance rate at 20% or better.
Deputy Mayor Duclos stated she wants to encourage licensing and suggested utilizing
local veterinarians to help get licensing for their patients. Commander McAllester stated
the City is developing pamphlets targeting cat owners which will be available city-wide
(including at vet offices). Furthermore, the City is working to partner with veterinarians
who ideally will become on-line licensing agents providing proof of vaccinations during a
pet's regular office visit.
Staff also noted penalties are not currently included in the fee schedule.
The City is on target to provide animal control services on July l, 2010. The Committee
directed staff to provide an update on the status of animal control services at the regular
City Council meeting on June 15, 2010.
Motion second and carried to approve the addition of the proposed animal license fees
and amend the fee sched�le accordingly. Carried 2- 0.
FEDRAC Summary
Mav25,2010-Page4of5
K. Monthly Financial Report Consent
06/Ol /10
Ms. Kraus presented her report and stated revenue is down in the following sectors:
property tax, criminal justice sales tax, gambling tax, and building permits (Public Works
and Community Development).
She also stated the Council budget has a year-to-date variance of $9,000 mainly as a
result in timing of travel/training expenditures and payment to King County in support of
Mental Health/Chemical Abuse & Depending Services. Also, food/beverage expenses
have increased for fhe now twice-monthly special Council meetings which have mainly
been held to discuss/prepare for the change of government.
Ms. Roe stated staff strives to provide a budget-conscious light dinner for Council and
staff who are required to attend both the regular and speciai Council meetings at a cost
typically between $65 -$100. Other factors include more Council receptions and lunches
for agenda setting meetings. Recently, however, a decision was made to discontinue
the purchase of lunches for the agenda setting meetings.
PUBLIC COMMENT:
Mr. Kaplan stated he would like to see a comprehensive accounting of the costs
incurred as a result of the change of government rather than simply the expense of the
mayor's compensation.
Ms. Kraus reviewed department favorable variances and discussed the reasons for them
including timing of expenditures, unused/unspent one-time funds, salary savings and
�tilizing fewer contract services.
The Committee asked Ms. Kraus to return to the Committee in June with historical sales
tax information.
The Committee asked Ms. Kraus to investigate and provide information regarding
increases to jail service costs at the June FEDRAC meeting.
The Committee discussed a large utility invoice from Lakehaven Utility District covering
services from September 2008 to January 2010 for miscellaneous sewer and stormwater
charges at the Community Center. Staff will follow up with Lakehaven to check the
accuracy of their meter, the validity of the invoice and the impacts moving forward.
Also discussed was a recent letter to the Federal Way Mirror by a citizen regarding
Proposition 1 funding and expenditures. The Committee directed Ms. Kraus to work with
Ms. Farmer to provide accurate information to the Mirror as soon as possible in response.
Motion second and carried to approve the Monthly Financial Report as presented.
Carried 2 - 0.
L. Vouchers
Motion second and carried to approve the vo�chers as presented.
4. OTHER:
Consent
O6/O1/10
• Disc�ssion on red-light signal enforcement specifically regarding right-hand turn violations for drivers not
coming to a full, complete stop.
• Discussion of using e-verify to establish applicant eligibility for employment.
5. FUTURE AGENDA ITEMS:
Ms. Farmer to provide performance report/satisfaction rating for Strategies 360 in August prior to
amending their contract.
• Ms. Farmer to report back in June regarding HR5156 as referenced in Strategies 360's April report and
the impact of this legislation upon the City. �
• Mr. Enge to return to FEDRAC in June with partnering recommendations for PSE & Federal Way Mirror
regarding the Community Weatherization Program.
FEDRAC Summary
May 25, 2010 - Paae 5 of 5
Ms. Kraus to provide historical sales tax information at the June FEDRAC meeting per Committee
discussion.
Ms. Kraus directed to investigate and provide information regarding increases to jail service costs at the
June FEDRAC meeting.
6. NEXT MEETING: Tuesday, June 22, 2010.
Meeting adjourned at 7:31 p.m.
Attest: �
Krystal Roe, Deputy City Clerk
COMMITfEE APPROVAL:
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c Mike k Jeanne Burbidge
Commit e Chair ommittee Member
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