FEDRAC MIN 07-27-2010 CITY OF
Federal Way
City Council
Finance /Economic Develo • ment /Re • ional Affairs Committee
Tuesday, July 27, 2010 Federal Way City Hall
5:30 p.m. HYLEBOS ROOM
SUMMARY
1. CALL TO ORDER: Chair Mike Park called the meeting to order at 5:32 p.m.
Committee Members in Attendance: Committee Chair Park and Committee Members Burbidge and
Dovey.
Councilmembers in Attendance: Mayor Kochmar and Deputy Mayor Duclos
Staff Members in Attendance: Acting City Manager Mary McDougal, Financial Services Administrator Bryant
Enge, City Attorney Pat Richardson, Finance Director Tho Kraus, Economic Development Director Patrick
Doherty, Police Chief Andy Hwang, Communications & Governmental Affairs Manager Linda Farmer,
Recreation Supervisor Doug Nelson, Executive Assistant Brook Lindquist, and Deputy City Clerk Krystal Roe.
2. PUBLIC COMMENT: None.
3. COMMITTEE BUSINESS
Council
Topic Title /Description Placement
A. Approval of Minutes: June 22, 2010 N/A
Discussion Only
Motion second and carried to approve as presented. Carried 3 - 0.
MOTION: Chair Park moved to amend the agenda to consider item L - Community Weatherization Program
for Small Businesses and Homeowners RFP Award as discussion, not action. Motion second and carried 3 - 0.
B. Chamber of Commerce Quarterly Report Regarding the Business Incubator N/A
Discussion Only
Mr. Doherty distributed copies of Exhibit A - Scope of Services to the City and Chamber's
contract for the South Sound Regional Business Incubator (SSRBI) and introduced Federal
Way Chamber of Commerce Chief Executive Officer Tom Pierson.
Mr. Pierson, in turn, introduced Cosette Gibson - Pfaff, CEO of the SSRBI. Mr. Pierson
distributed an updated version of the SSRBI quarterly report, highlighted accomplishments
achieved to date, goals for the future, and efforts made to secure funding for the SSRBI.
Ms. Gibson -Pfaff provided details of recent training provided through the SSRBI and plans
to expand the training to cover a broader subject base in evening classes.
C. June 2010 Report on State Lobbying Activities N/A
Discussion Only
Ms. Farmer remarked that City Manager Brian Wilson has directed her to prepare a
formal, written report on state lobbying activities when the legislature is out of session.
She highlighted key topics within her report.
D. June 2010 Report from Strategies 360 on Federal Lobbying Activities N/A
Discussion Only
Ms. Farmer noted no federal funds were secured for the Triangle Project. Councilmember
Burbidge remarked the $3.2 million in federal funds (PSRC) for the 320th Street off -ramp
project were not mentioned in the report and should have been. Ms. Farmer will be sure
to include mention of these federal funds in future reports.
The Committee inquired about the relevance of several paragraphs in 360's report. Ms.
Farmer replied Strategies 360 complies articles from various news sources which may or
may not be of interest to Councilmembers. They are informational only and not intended
to imply a direct correlation to Federal Way.
............
E. Final Report for the 2009 Utility Tax Rebate Program N/A
Discussion Only
Ms. Lindquist updated the Committee on this year's successful utility tax rebate program.
She reported the program grew 66% over last year (a correction to the 60% quoted in her
COMMITTEE MEMBERS: CITY STAFF:
Mike Park, Chair Bryant Enge, Financial Services Administrator
Jeanne Burbidge Krystal Roe, Deputy City Clerk
Jack Dovey 253.835.2541
FEDRAC SUMMARY
July 27, 2010, Page 2 of 3
report) and discussed planned improvements for the 2010 program. The Committee
expressed gratitude and pleasure to Ms. Lindquist for the "excellent job" she did
administering this year's program.
F. Authorization to Accept $1,000 from PSE for National Night Out in Federal Way
Chief Hwang announced the generous gift from PSE would go toward the purchase of
CFL bulbs for distribution during the NNO event on August 3. The Committee inquired
about the number of bulbs purchased with the donation. Chief Hwang replied he was
unsure how many bulbs $1,000 would yield, but they'd be sure to procure as many as
possible.
In reply to a Committee question, Chief Hwang committed to sharing the list of
participating neighborhoods /locations with Council so they might visit with residents on
August 3 following the Council meeting.
G. Amendment to the Valley Communications Center Interlocal Agreement Business
08/03/10
Ms. Richardson presented her staff report and summarized the changes. The Committee
remarked the amendment appeared to be housekeeping in nature. Ms. Richardson
agreed.
Motion second and carried to forward approval of the amendment to the Valley
Communications Center Interlocal Agreement to the City Council Business Agenda on
August 3, 2010. Carried 3 - 0.
H. Proposed Resolution Authorizing Distribution of $58,000 from the Redevelopment Fund Business
08/03/10
Ms. Richardson presented the staff report noting that at the July 20, 2010 Council
meeting, Council committed $58,000 toward the sand castle event, but did not specify
which funds to utilize. Therefore, staff prepared the draft resolution to facilitate the
expenditure.
Motion to approve the proposed resolution. Motion died for lack of a second.
Motion to forward the proposed resolution to the August 3, 2010 City Council Business
Agenda without recommendation. Motion second and carried 3 - 0.
I. Potential Financial Impact of Fire District Issues N/A
Discussion Only
Ms. Kraus reviewed the fire impact fee and the implications to the City. Chair Park
announced he'd met with Chief Al Church and Commissioner Bill Gates regarding the
issue. It was explained, during the meeting, how the fee structure would work. Using The
Commons as an example, the new formula would result in an annual increase of $800 for
the mall. Chair Park remarked it has been difficult to understand the proposed changes
because the district's formula has not been widely published.
Committee Member Burbidge expressed concern that the formula has not been
forthcoming in advertising from the District. Deputy Chief Olson replied the formula has
been "out there" and provided to whomever has requested it.
Ms. Richardson raised a point of order that committee members must be mindful to keep
their discussion limited to understanding the impacts of the proposed fee to the City and
not refrain from discussing the merits and politics of it.
The Committee and Deputy Chief Olson discussed various scenarios as a result of the fee.
It was clarified there are no restrictions in the current proposition to cap the fee
collection; the District could theoretically impose a maximum rate of $2.50 per $1,000
assessed value (current rate is $1.50). Deputy Chief Olson commented there are no
current plans to maximize the benefit.
J. Monthly Financial Report Consent
08/03/2010
Ms. Kraus presented her report and stated not much has changed from the prior month's
report. However, three pages would be provided to Ms. Roe following the meeting with
corrected figures to be included in the August 3, 2010 Council agenda packet.
Ms. Kraus noted a change to the red light photo enforcement revenue on page 36. The
revenue actual YTD figure should be $439,000.94 (not $371,758 as reported) which results
in changing the budget vs. actual figure to $203,853 (not $269,254 as reported).
Ms. Kraus noted the sales tax by activity /location (page 37) seven -month trend continues.
There are no real changes in this category.
FEDRAC SUMMARY
July 27, 2010, Page 3 of 3
The City now qualifies for state shared revenues as a result of high crime rates.
On page 42, the Police Department overtime was erroneously reported. The Police
Department has made concerted efforts to reduce the department overtime and to
manage the figure within the budget provided by Council. There is currently a savings of
$42,000 for this expenditure; it is not over budget as reflected in the report.
On page 43 the red light photo enforcement net revenue is $580,000 for the first six
months and is projected to exceed $830,000 by year -end. Ms. Kraus clarified the revenue
generated goes to the traffic safety fund established by Council through a resolution
process. State law does not limit how the funds can be spent; it is a policy decision of the
Council.
Mayor Kochmar noted an interest in revisiting the issue. Deputy Mayor Duclos urged
caution, Councilmember Dovey commented "if it's not broke don't fix it" and Chair Park
stated support for working within the current policy, not changing it.
Ms. Richardson noted the funds not only go to the Police Department, they are also used
by Public Works for traffic improvement /control. Chief Hwang stated the first four
controlled locations have experienced a decline in violations. The seven new locations
are expected to experience declining violations.
Returning to the MFR, Ms. Kraus remarked the Federal Way Community Center's revenue
is better and the expenditures are also better controlled because of a concerted effort to
control spending. The Committee thanked staff for their work to reduce costs.
Ms. Kraus reported the bonds outstanding should be negative $29 million and the debt
capacity should be $126 million for non -voted debt (page 48).
Motion second and carried to approve the Monthly Financial Report as
presented /amended. Carried 3 - 0.
K. Vouchers Consent
08/03/2010
Motion second and carried to approve the vouchers as presented without discussion.
Carried 3 - 0.
L. Community Weatherization Program for Small Businesses and Homeowners RFP - Bid N/A
Award Discussion Only
Mr. Enge announced one bid was submitted in response to the RFP process. The single
bidder, Sustainability Works appears to be responsive. However, Mr. Enge prefers an
opportunity to review their bid in -depth before coming to Committee with a
recommendation; he proposed returning to FEDRAC on August 24, 2010. Consensus
reached to bring the item back to Committee in August.
M. South Correctional Entity (SCORE)- Update N/A
Discussion Only
Mr. Enge presented his staff report. He noted Auburn and Renton will begin utilizing the
facility sooner than previously agreed. Federal Way and the other cities remain on -track
to utilize the facility beginning in September 2011. The new schedule for Auburn and
Renton is revenue neutral to Federal Way.
The Committee discussed increased jail costs and anticipated expenditure trends for the
SCORE facility both at start -up and in the future.
4. OTHER: None.
5. FUTURE AGENDA ITEMS: None.
6. NEXT MEETING: Tuesday, August 24, 2010 ,
Meeting was adjourned at 7:05 p.m. / eiJ
Attest: MO ' M,■
1 Krystal Roe, Deputy City Clerk
COMMITTEE APPR • VAL:
Vii/ i
I I "164 ADP
P•rk Jeanne Burbidge I/ "jack Dovey
Co mittee Chair Committee Member mittee Member