FEDRAC MIN 11-23-2010 � CIiY OF
Federal Way !
City Council
Finance/Economic Develo ment/Re ional Affairs Committee
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SUMMARY
1. CALL TO ORDER Chair Park called the meeting to order at 5:30 p.m.
Committee Members in Attendance: Committee Chair Mike Park and Committee Members Jeanne Burbidge
and Jack Dovey.
Councilmembers in Attendance: Deputy Mayor Dini Duclos and Mayor Linda Kochmar.
Staff Members in Attendance: Mayor-elect Skip Priest, City Manager/Police Chief Brian Wilson, Financial
Services Administrator Bryant Enge, City Attorney Patricia Richardson, Finance Director Tho Kraus, and City
Clerk Carol McNeilly
2. PUBLIC COMMENT: None.
3. COMMITTEE BUSINESS
Action
Topic Title/Description or Discussion
A. Approval of Minutes: October 26, 2010 Action
Committee member povey moved to approve the minutes as presented. Motion second
and carried 3-0.
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B. Report on Sand Sculpting Event from Event Organizer Rudi Alcott Discussion
Mr. Alcott reported the Sand Sculpture Event was put on by the Federal Way Community
Council. The event ran for three weeks and they had 19,848 attendees. The net revenues
for this event was $272,480 and the expenses were $318,469. The event was impacted
by the weather; however, there was quite a bit of inedia attention. An event visitor's poll
revealed that 71 % of attendees were from outside the Federal Way area. Mr. Alcott
reviewed the estimated revenues the event generated for the City. The Community
Council is asking the City to consider re-investing a maximum of $50,000 in next year's
event. He stated the Community Council is committed to paying back the $58,000 seed
money that the City contributed this year. Mr. Alcott reviewed the 2011 World
Championship of Sand Sculpting preliminary budget, highlighted areas of improvement
for next year's event and answered clarifying questions from Committee members. Mr.
Alcott stated competitors have already begun qualifying for next year's event and he has
begun securing community sponsorships. Committee member povey asked the
Committee to consider forwarding this item to the City Council to see if they want to
contribute to next year's event. Committee consensus was to forward the item to the
December 7, 2010 Council meeting Business Agenda.
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C. Fall 2010 Tourism Enhancement Grant Applications Action
12/7/10 Council Consent
Economic Development Director Patrick Doherty stated the City has two rounds of
Tourism Enhancement Grant funding as part of the Lodging Tax Advisory Committee's
2010 work plan. The first round of grant funding awarded $18,000 in the spring, leaving a
balance of $22,000 available for the fall round of grant funding.
Mr. Doherty stated eight organizations applied for grant funding this round. Committee
member povey stated the evaluation process for next year's grant funding will be
modified to include the ranking for all applicants even it they do not qualify under the
criteria.
Committee member povey moved to approve the Lodging Tax Advisory Committee
Tourism Enhancement Grant funding recommendations and forward to the December 7,
2010 City Council Consent Agenda. Motion second and carried 3-0.
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D. 2010 Budget Adjustment Action
12/7/10 Ordinance
Finance Director Tho Kraus stated the purpose of the draft ordinance is to appropriate
$5,375,000 for the Civic Center/ Performing Arts Conference Center to be funded by a
$5,000,000 state grant and $375,000 from the Downtown Redevelopment CIP fund. The
ordinance also makes adjustments to the REET and Utility Tax for expenditures incurred
in the Downtown Redeveiopment Fund.
City Attorney Richar.dson stated based on information from the state, the amount for the
Civic Center/PACC may need to be increased to cover infrastructure improvements.
More detailed information will be available before the December 7, 2010 City Council
meeting.
Committee member Burbidge moved approval of the 2010 Budget Adjustment Ordinance
as presented and to forward to the December 7, 2010 City Council for first reading and
enactment on December 21, 2010.
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E. Monthly Financial Report Action
12/7/10 Council Conserrt
Finance Director Tho Kraus reviewed the October 2010 Monthly Financial Report.
The total utility tax was estimated to be down by $950k or 7°/o from 2009. On a year-to-
date comparison, 2010 is down by $632K or 6% below 2009. REET collections through
October exceed the annual budget by $237K with November and December collections
still outstanding.
Red light photo proceeds currently exceed the year-end estimate by $79K with three
invoice payments and two months revenue outstanding. The preliminary November
sales tax revenue is $925,607 and is $39,298 above 2009. Sates tax is $695K away
from meeting year-end estimates.
Year-to-date city portion of Police overtime exceeds 2009 by $22,749 but compared to
year-to-date budget is down by $52,843. The increase compared to 2009 is due primarily
to Buckley jail transport, transport ratio per standards and the addition of four red light
cameras and two school zone locations earlier this year which increased review time and
court appearances. General recreation and Federal Way Community Center continue to
perform well, increasing revenues while controlling expenditures.
Committee member povey moved to forward the monthly financial report to the
December 7, 2010 City Council Consent Agenda for approval. Motion second and carried
3-0.
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F, Vouchers Action
12/7/10 Council ConsenT
Committee member Burbidge moved to forward the vouchers to the December 7, 2010
City Council Consent Agenda for approval. Motion second and carried 3-0.
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4. OTHER: None.
5. FUTURE AGENDA ITEMS
A. Contract Amendment for the Solid Waste and Recycling Agreement with Waste Management (Van Orsow)
6. NEXT MEETING: Tuesday, December 28, 2010
Chair Park adjourned the meeting at 6:29 p.m. '
Attest:
� Carol cNeilly, lerk
COMMI EE APPROVAL: ��`'
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M' P rk ` Jeanne Burbidge Jack Dovey
Co ittee Chair � Committee Member Committee Member