FEDRAC MIN 10-26-2010� Federal Way
City Council
Finance/Economic
SUMMARY
onal Affairs Committee
1. CALL TO ORDER Chair Mike Park called the meeting to order at 5:38 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: City Manager/Police Chief Brian Wilson, Financial Services Administrator
Bryant Enge, Human Resources Director Mary McDougal, City Attorney Patricia Richardson, Finance
Director Tho Kraus, Deputy Public Works Director Ken Miller, Communications & Governmental Affairs
Manager Linda Farmer, Recreation Supervisor poug Nelson, Recreation Supervisor John Hutton, City Clerk
Carol McNeilly and Deputy City Clerk Krystal Roe.
2. PUBLIC COMMENT: None.
3. COMMITTEE BUSINESS
Council
Topic Title/Description Piacement
MOTION: Chair Park moved to amend the agenda to include three walk-on items:
• Flood Benefit District Allocation (item 3.a.1) (Action Item)
• Health Care Task Force (item 3.a.2) (Discussion Item)
• Dumas Bay Centre Marketing Information (item 3.a.3) (Discussion Item)
Motion second and carried 3- 0.
A. Approval of Minutes: September 28, 2010
Motion and second to approve as presented. Carried 3- 0.
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A•1 � Flood Benefit District Allocation
Mr. Milier introduced his staff report, discussed the history of the Flood Control District
(District), and outlined concerns the Council had with the District at its inception in 2007.
That same year the Council sent a pointed, direct letter to the management board
outlining its concerns and requests for change to the taxing/organizational structure.
Council's concerns were largely ignored.
Now, because of over-taxing in many areas, the Flood Control District is in search of a
mechanism to "buy down" fees/taxes in some areas. The District has proposed a
$4,000,000 "buy down" of South King Fire & Rescue's operations fund.
Mr. Miler introduced a draft letter for the Committee's consideration opposing this
measure/tactic. The Committee reached consensus opposing the District's buy down
proposal and directed staff to compose a new, more strongly worded letter (similar to the
2007 version) which includes all significant issues the Council still has with the taxing
structure and to include specifics on the requested taxing percentages. Council seeks a
letter that is not generic and which accurately portrays their displeasure with the District.
Also, the Committee directed staff to form a coalition of sorts with other cities who have
the same concerns and to send a joint letter if possible.
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BUSINESS
11/2/2010
The Committee asked about the timeline for the letter. Mr. Miller replied South King Fire &
Rescue will be making a decision on November 16 about whether or not to accept the
District's buy down proposai.
FEDRAC SUMMARY
October 26, 2010, Page 2 of 4
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Motion second and carried to forward a more strongly-worded draft letter which contains
greater detail for Council consideration to th�e November 2, 2011 Business agenda.
Further moved and second to draft a letter to seek a coalition with similar cities. Carried 3
- 0.
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A.2 Health Care Task Force
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B.
Ms. McDougal presented her staff report, discussed the reason for the task force, the work
conducted and the recommendations reached.
The recommendation is two-fold: Add a new high deductible pian option and issue an
RFP for employee benefit consulting services to guide the task force members in
identifying cost containment goals, strategies and options.
Councilmember povey expressed displeasure with the content of the staff report
indicating he would have preferred a report which included facts, figures, charts and
graphs depicting the current expenses versus alternatives.
Ms. McDougal replied the issue was too compfex and the services of an expert in
empioyee benefits are necessary. An expert consultant will be able to produce a report
with the greater detail Councilmember povey seeks. Staff was concerned about making
a near-sighted decision which might benefit the City in a short-term scenario b�t result in
greater costs long-term.
City Manager/Police Chief Wilson stated he concurred with the findings of the Health
Care Task Force.
Draff 2011 City Legislative Agenda
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Discussion Only
CONSENT
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Ms. Farmer introduced Doug Levy, the City's State Legislative Lobbyist. Mr. Levy reviewed
the draft agenda and encouraged Council's input. He highlighted the top priorities
contained in the agenda and briefly reviewed the most impactfut issues listed in
"support/oppose" section. Councilmember povey raised concern about legislation
proposed by the Commons regarding petition gathering. Mr. Levy stated the issue is on a
"track/monitor" status. In the current agenda, the City does not take a position on the
issue.
Mr. Levy remarked he has plans to brief/coordinate the newly-elected Mayor and will get
him up to speed on the contents of the draft legislative agenda.
Motion second and carried to approve the City of Federal Way Draft 2011 Legislative
Agenda as presented and forward to November 2, 2010 City Council consent agenda.
Carried 3 - 0.
September 2010 Report on State Lobbying Activities
Ms. Farmer presented a brief report on state lobbying efforts.
A.3 Dumas Bay Centre Marketing Information
Ms. Famer explained the bid review process. She expiained that although one consultant
may have had a lower bid line item, the consultant with the lowest overall, combined bid
was selected. Ms. Farmer further explained the materials she provided for review at this
meeting only included the pricing which accounted for only 20% of the criteria. The
chosen consultant out-paced and out-scored the other candidates in all other
areas/criteria.
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C. September 2010 Report from Strategies 360 on Federal Lobbying Activities
Ms. Farmer reviewed the September report for the City's federal lobbyist. She is working to
prepare a report for the November Committee meeting. Although the contract has
ended with Strategies 360, they continue to provide assistance with information on issues
in Washington, D.C.
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Discussion Only
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Discussion Only
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Discussion Only
FEDRAC SUMMARY
October 26, 2010, Paae 3 of 4
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Official Newspaper Designation - RFP
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Discussion Only
F.
G.
• extend the term until June 30, 201 1, and
• include initiai Phase il activities, and
• raise the total payment to $336,839 (which includes pass-through of
$91,839 in state matching funds and $245,000 as approved by City
Council on February 2, 2010)
Ms. McNeilly introduced her staff report and briefly discussed the history of the official
newspaper and previous requests for proposals. In reply to Committee questions Ms.
McNeilly clarified no criteria has been established for daily publication. The purpose of
the RFP is to ensure the City is receiving the best product and services at the best price.
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Application for Innovation Partnership Zone Designation
Mr. Doherty presented his staff report and reviewed the background and benefits to
Federal Way with an IPZ designation.
Motion second and carried to authorize staff to apply in 2011 for designation as an
innovative partnership zone. Carried 3- 0.
Mayor Kochmar left the meeting at 6:45 p.m.
funding of the Medical Device Incubator with enterpriseSeattle
Mr. Doherty presented his staff report. Councilmember povey stated one business has
been set up and another is close to completion. Mr. Doherty and the Committee
discussed EB5 structuring, who is able to apply as a"manager", and representative duties
and responsibilities of applicants.
The Committee amended the staff recommendation to include a reference to funds
authorized by Co�ncil in February 2010.
Motion second and carried to approve amendment of the contract with
enterpriseSeattle to:
CONSENT
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CONSENT
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• and authorize the City Manager to execute the amended contract with
enterpriseSeattle.
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Carried 3 - 0.
Tax Recovery Services
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Discussion Only
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J.
Ms. Kraus presented her staff reporf and explained the difference between TRS and the
current provider (Microfiex). Mr. Dovey �rged hesitancy when considering any provider
who uses an hourly compensation mechanism. Ms. Kraus replied that is one of her
concerns and is under negotiation.
2011 Legislative Agenda Regarding Real Estate Excise Tax (REET)
Ms. Kraus presented her staff report with the purpose of explaining in greater detail REET
funding, restrictions currently in place and the City's efforts to expand expenditure
options for this revenue stream. Bill language has not yet been finalized.
ORDINANCE: 2010 Year-End Housekeeping Budget Adjustment
Ms. Kraus presented her staff report and reviewed several items contained in the budget
adjustment ordinance outside the typicai requests.
Motion second and carried to approve the 2010 year-end budget housekeeping budget
adjustment ordinance as presented and forward to the full Council on November 2, 2010 for
first reading and November 16, 2010 for adoption. Carried 3- 0.
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Discussion Only
INTRO
ORDINANCE
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K. Monthly Financial Report CONSENT
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Ms. Kraus reported that revenues which have been increasing continue to grow. The
gambling tax revenues will not be seen until November or December. The pull tabs tax
revenue continue to hold steady after the adjustment in the tax rate.
FEDRAC SUMMARY
October 26, 2010, Page 4 of 4
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City Manager/Police Chief Wilson stated PJ Pockets was encouraged with their initial
start-up and hired over 100 people in their re-opening efforts.
The City has received $34,800 from King County due to an error on their part in
interpreting/applying administrative fees. Although utility tax revenues are down by
$650,000, Ms. Kraus anticipates the revenues will meet the budget target and possibly
exceed slightly.
The Police Department continues to effectively manage their overtime budget with a
2010 year-to-date (YTD) savings of 12.5%. Jail services are �p more than $466,000. The
Federal Way Community Center revenue is up $27,000. Expenses for 2009 YTD and 2010
YTD are below 2009 actual and 2010 YTD budgets.
Motion second and carried to approve the Monthly Financial Report as presented and
forward to the November 2, 2010 Council consent agenda for approval. Carried 3- 0.
L. Vouchers
Motion second and carried to approve the vouchers as presented. Carried 3- 0.
4. OTHER:
5. FUTURE AGENDA ITEMS: None.
6. NEXT MEETING: Tuesday, November 23, 2010
Meeting was adjourned at 7:12 p.m.
Attest:
COMMIiTEE APP O L: � ��
Mii c < Jeanne Burbidge
Com ttee Chair Committee Member
CONSENT
11/2/2010