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PRHSPSC MINS 10-14-2008 City of Federal Way City Council PARKS, RECREATION, HUMAN SERV ICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday October 14, 2008 5:30 p.m. SUMMARY In attendance: Council Committee members Chair Jeanne Burbidge, Jim Ferrell, Council member Linda Kochmar, Neal Beets, City Manager, Pat Richardson, City Attorney, Karolyn Klohe Assistant City Attorney, Chief Brian Wilson, Tho Kraus, Finance Director, Donna Hanson, Director PRCS, Steve Ikerd, Facilities and Parks Manager, Mary Faber PRCS Superintendent, Lynnette Hynden, Human Services Manager, Mary Jaenicke, Administrative Assistant II. Excused: Council member Michael Park Guests: Susan Honda and David Bauch, Arts Commission; Ron Secreto, Human Services Commission; Alan Bryce, Ron Wood, Chad Stalder, Cindy Ducich, Centerstage. Chair Burbidge called the meeting to order at 5:35p.m. COMMISSION COMMENT Ron Secreto, Human Services Commission Chair stated that they received 61 applications from 35 agencies and the amount of funding requested was over 1 million dollars. It was a very tough job for the commission to finalize the report. A lot of work was done. He commended Ms. Hynden and her staff for the excellent support that the Commission receives from them. He also commended Council for continuing to provide the funds for the community. He believes that they are going to see a real strain on the Social Service Agencies due to the financial crisis that is occurring at this time. APPROVAL OF SUMMARY Council Member Ferrell moved to approve the September meeting minutes; Council Member Burbidge seconded the motion, and moved to amend the minutes. The minutes should read that “the City should be given future rights to the Brooklake Community Center’s property” not the County. Council member Ferrell seconded. Motion passed. BUSINESS ITEM Centerstage Management Proposal Mr. Bryce stated that he has been with Centerstage Theater (CST) for 4 ½ years. When he first arrived, it became very clear to him that the business model relationship that CST had with the City was not going to work long term. CST put out a written proposal to the City suggesting that CST manage Knutzen Family Theatre (KFT). Mr. Bryce stated that having CST manage the KFT is the most equitable and makes the most sense financially. The City, with the help of the Arts Commission and the contingency fund, has subsidized CST for the past three years. They have been paying the rental amount that CST has had to pay. This is 23% of CST’s annual operating budget. Mr. Bryce stated that it makes more sense for them to manage the facility, and the City would pay CST a management fee of $75,000.00. Mr. Bryce stated that they are open to discussing all options. Their main goal is to make sure that live professional Theater stays in the City of Federal Way. Ms. Honda stated that after the Arts Commission got the most recent proposal from CST, they spent many hours reviewing the proposal and asking questions. Ms. Honda stated that the Arts Commission did not vote to recommend having CST manage KFT. One of the reasons that she did not vote for it, is because she thinks that the KFT is being managed very well by the current staff, they offer many different programs to children, youth and citizens of Federal Way. The only complaint she hears is about the lack of parking. In regards to the $50,000.00 for CST, Ms. Honda stated that she is concerned that other Arts groups in Federal Way will feel that it is an unfair advantage. Mr. Bryce stated that the funding they receive is not used to cover artistic services; it is a management fee to manage the KFT, which no other arts organization would be doing. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday October 14, 2008 Summary Page 2 Council member Ferrell clarified that there are two proposals; $75,000 to manage the Theatre, and in lieu of management, then a $50,000 award. Mr. Wood stated that 9th Avenue Dance is the only other Arts organization that actually supports the KFT and that they do use the facility. Ms. Honda stated that both Aria Dance and 9th Avenue Dance use the facility. Ms. Faber reported that the Arts Commission has been reviewing the proposal carefully over the last several months. Ms. Faber stated that she has heard a lot of support for Centerstage and for Theater to continue. The challenge is what makes sense from the Arts Commission’s view, and what would be an appropriate action in how to deal with the CST proposal. Ms. Kraus presented information on the financial history of KFT from 2004-2007. The total operating revenue is as follows: 2004 - $84,439.00, 2005 - $78,952.00, 2006 - $132,117.00, and 2007 - $124,589.00. The total operating expenses is: 2004 - $187,801.00, 2005 - $138,385.00, 2006 - $149,440.00, 2007 - $189,348.00. The total operating losses were: 2004 - $103,362.00, 2005 - $59,433.00, 2006 - $17,323.00, 2007 - $64,759.00. There are other charges that finance does not consider as operating expenditures; these are indirect costs such as direct supervision and support, general fund administration fee and internal service charges. These indirect costs totaled $32,714 in 2007. When you add the operating loss and the indirect costs the total loss comes to $97,473 in 2007. Utility tax money has also been transferred to support the KFT. In 2007 the amount transferred was $125,495.00, which leaves a positive balance of $28,022.00. That $28,000 goes into a Capital reserve account to be used to maintain the facility. In 2007 the capital spending was $14,100.00. Ms. Kraus stated that if we kept things they way they were in 2007 the total City out of pocket would be $111,000.00. If we went with the proposed contract with a management fee of $75,000, the total City out of pocket would be $122,000.00. In response to Ms. Kraus’ presentation, Mr. Bryce stated that the revenues and the 2007 actuals include a substantial amount from a Church rental, and that Church is no longer using the facility. Mr. Bauch stated that he is a non-voting member on the Arts Commission. He asked if it was possible to give CST a reduction or relief in their rental charges. Mr. Bryce stated that this is a solution that CST would consider, as long as that reduction was realistic and long term. They don’t want to have to come back in two years, and have to go through the whole process again. CST would probably have to employ their own technicians. Mr. Wood stated that he is concerned that the Arts Commission did not have enough information from CST, and he was mystified that CST was not asked to come in and answer any questions after Mr. Bryce made the original presentation. He is wondering who they asked the questions of. Ms. Honda stated that the Arts Commission meets twice a month, and that this proposal has taken them many hours, and it has been discussed at every meeting. A lot of items on their work plan did not get done, because of the time consumed by discussing the proposal. They asked questions, and Ms. Faber and her staff were able to get answers for them. Ms. Honda also stated that their meetings are open, and CST could have come any time, and there is a time for public comment. Mr. Bryce stated that he did come, but was not permitted to speak. Ms. Honda replied that Mr. Bryce spoke during public comment time, and that is how their meetings are run. Council member Ferrell asked Ms. Faber how much money CST is paying for the rental. Ms. Faber answered that their standard rental fee per production is approximately $5,100.00, and does not include technician fees. It is based on how many productions they do. There is a limit of 170 hrs per production. If it goes over 170 hours, they have the ability to charge them fees for use above those hours. CST does approximately 4-5 productions a year. Mr. Ferrell asked where the rental money goes to. Ms. Faber answered that the KFT is setup as a different program budget within the PRCS department. It has its own expenditure and revenue expectations. Council member Ferrell asked what the pros and cons would be in reducing the rental fee. Ms. Faber answered that reducing the subsidy would be an intermediate resolution because if they reduce the rent, then they reduce the revenue expectation by the same amount. There would be $25,000 less money coming into the city. Council member Ferrell asked for clarification on the Arts Commission vote. Ms. Faber stated that the Arts Commission Chair did not recognize all of the voting members, and missed a vote. After review of the written minutes, and tape, it was decided that the item did pass, and the Commission voted to approve a $50,000 award annually to CST. Council member Ferrell asked Ms. Faber what the procedure is once something is approved out of Commission. Ms. Faber answered that the recommendation from the Arts Commission would be to subsidize the funding, and it would go to Committee. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday October 14, 2008 Summary Page 3 Council member Ferrell asked CST how they are raising money to close the gap. Mr. Wood stated that they apply for grants, and they get donations. City Manager Beets stated that we are at a point where staff needs some policy direction with respect to KFT. Staff has tried to outline what the options are. We are in the midst of our budgetary process. The budget will be submitted to Council, and they will have from October until December to finalize it. The City Manager is not making any assumptions about additional subsidies for CST or any other Arts Organization. If Council says to forgive the rent or to enter into a management proposal that requires the City to pay a management fee we will need to find the money to make it a balanced budget. The budgetary challenge is to find out whether or not we are looking for a greater subsidy. From a Governance standpoint, we are assuming that KFT is a city operated facility until Council tells us otherwise. Council has indicated from time to time, some interest in contracting out management of some of the City’s facilities. Council member Kochmar asked what the dollar amount would be if we increased the subsidy. Mr. Beets answered it would be approximately $35,000. Council member Ferrell stated that the recommendation to subsidize $50,000 to CST passed through the Arts Commission. He is interested at a minimum to give CST rent forgiveness. The $50,000 that was approved by a majority of the Arts Commissioners should be explored by the Full Council. Mr. Beets stated that the $35,000 was an approximation. Mr. Wood stated that they would rather manage KFT and work for their rent, than receive rent forgiveness. Council member Ferrell stated that there is money left over in the City Manager’s contingency fund every year. Mr. Wood stated that he is unclear why the management proposal was turned down by the Arts Commission. He has heard statements that the City is already doing a great job managing the Theatre, but he would also like to know the other reasons. Mr. Wood asked Ms. Faber what the specific reasons were that the management proposal was turned down. Ms. Faber stated that there was a lot of emphasis on the programming that KFT produces and sponsors. There was a lot of discussion about the interaction between DBC and KFT, and how closely they work together, and share resources. They cover for each other. DBC and KFT also offer recreation programs. There are a lot of mixed uses that occur at those sites. Staff works very dependently with each other to provide the services between the park, recreation, Theatre and retreat services. Council member Kochmar stated that she knows that everybody has good intentions. The issue is that everybody in the city is paying utility tax for the use of the facility. This becomes an issue when people cannot use the facility. This needs to be looked at as a city as whole – what is paying for this Theatre. They also need to look at the budgetary impact. Mr. Bauch stated that there were a few Arts Commissioners who stated that they were on the Commission to support the arts, but that they also felt they had to be accountable to the City, and the City is getting pressure to support the food bank and other social service programs, that are needing to help people in need. Some members felt it was difficult to approach the city and ask them to embrace the CST proposal when it could hurt the City’s ability to provide human services. Mr. Bryce said that if they do manage the facility, they would maintain everything that the City would want to keep there. Council member Ferrell stated that the Council needs to explore the recommendation of the Arts Commission, which is a $50,000 grant. Ms. Faber stated that CST could also apply for Contract for Services. Ms. Ducich thanked everybody and she appreciates the efforts being taken to keep live Theatre in Federal Way. Chair Burbidge stated she would like Management Staff and the Council to look at the alternatives that have been proposed, and the recommendations. There are policy questions, budget questions and Governance questions that need to be answered. Chair Burbidge stated that the next step is to have the opportunity for informal discussion back and forth with staff and be ready to come to the next Committee meeting, or go directly to Full Council. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday October 14, 2008 Summary Page 4 Amendment to the Diversity Commission By-Laws Ms. Hynden presented the background information. This amendment cleans up the language in the by-laws regarding attendance. The Commission has had some concerns about attendance, when they reviewed the by-laws they felt that further clarification was needed. This makes the by-laws clearer on what actions can be taken. Councilmember Ferrell asked why they are making these changes. Ms. Hynden answered that there are ten Commission meetings a year, and if a commissioner misses three meetings, it can put the Commission behind on their programs and projects. Council member Ferrell moved to recommend approval of the Amendment to the Diversity Commission By-Laws addressing attendance. Chair Burbidge seconded. Motion passed. 2009-2010 Human Services Commission Funding Recommendations. Ms. Hynden presented the information. 61 applications were received from approximately 35 agencies. Over 1 million dollars in funding was requested. There has been a steady increase in requests year after year. The Commission kept to their strategies and adhered to their plans. The Council in 1988 wanted a minimum of 37% allocated for basic needs, the Commission felt that in light of the down turn in the economy that they would support the needs of food, shelter and clothing and raised the level to 49%. To take away from anyone would have been very difficult. The funds have been equally divided as follows: Family needs are at 31%, self Sufficiency is at 24%, Community Protection 21%, Youth Services 15%, and Senior Services at 9%. Staff has recommended that a contingency plan be built for $33,000; this would not be additional funding, it would come from the carry forward budget. The $33,000 would be used to fund four additional programs. The contingency plan 2 allocates fundraising monies from the United Way/Human Services giving campaign, and those funds will be given to the Federal Way Boys and Girls Club. Chair Burbidge thanked Ms. Hynden for her work, and for explaining the process that the Human Services Commission and staff went through. Chair Burbidge recused herself because she serves as a Board Member for the Boys and Girls Club. Council member Ferrell thanked Ms. Hynden, staff and the Human Services for their hard work, and for Ms. Hynden’s detailed presentation. Council member Ferrell moved that this be forwarded to Full City Council without a recommendation. Chair Burbidge seconded. Motion passed. Patrol Auto Theft Task Force Chief Wilson presented the background information. No discussion was held. Council member Ferrell moved to approve participation with the 17 South King County and North Pierce County Police and Sheriff Departments in the P.A.T.R.O.L. Auto Theft Task Force, and authorize City Manager Neal Beets to sign the Interlocal Agreement. Chair Burbidge seconded. Motion passed. KC Regional 800 MHZ Radio System Chief Wilson presented the background information. When Federal Way started their own Police Department, they also changed their dispatch center. At this same time, the new 800 MHZ radio’s system was starting. In the early days, they had to communicate by cell phones. This created tremendous security issues. The plan was to have a tower installed in Federal Way. That tower was installed and it enhanced the ability of the radio system significantly. There are still gaps in coverage for the 800 radio in emergency services. This is for both police and fire. The gap is primarily in the Decatur High School area, Western section of the town, and along the water. They have been working on this issue for a very long time. They have tried to make software and system adjustments to get the coverage right. Chief Wilson is very concerned about officer safety because there are times that they cannot communicate on the radio. They have been working with King County to find a solution. King County’s response has been that the system has performed as designed. Chief Wilson is not satisfied with that response. There have been tactical situations where the Officer’s can see each other, but they can’t communicate because the radio doesn’t work. After a very serious incident at Decatur High School, the Federal Way Police Department met with the School District and Nextel and developed a system to fix the non-existent radio signal at Decatur High School. King County has acknowledged in writing that there is a problem with the system. There is a new radio system that is supposed to come out in the next 6-10 years. Chief Wilson stated that they cannot wait 6 years. One solution is to put up another tower in Federal Way – this will cost approximately 1.5 million. Council member Kochmar suggested partnering with some of the sites, and she could provide Chief Wilson with the contact information. Chief Wilson stated that the Federal Way Police Department is seeking support from Council to communicate with King County officials and the Regional Communications Board on the importance of repairing the inadequate radio signal in Federal Way. Chief Wilson and City Manager Beets will work on the correspondence. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Tuesday October 14, 2008 Summary Page 5 Asphalt Path Repair Mr. Ikerd provided the background information. Staff went out to bid for three parks with asphalt trails that need to be repaired. Those parks are West Campus Trail, Palisades Park and Wildwood Park. The trails have been damaged from tree roots and weather related factors. They sent out bids to nine companies, and they received three bids. The companies were told up front that the City reserved the right to split the bid if it was to our advantage. By splitting the bid we are saving $6400. The bid will be split into two contracts for a total of $77,148.57. Council member Ferrell moved approval to accept the asphalt path repair bid from NW Asphalt and A.C. Moate and authorize the Assistant City Manager to execute two separate contracts for services in the total amount of $77,148.57. Chair Burbidge seconded. Motion passed. West Campus Trail Tree Removal Mr. Ikerd presented the background information. Bids were sent out to six companies off of the small works roster. The companies receiving the bids were pre-qualified by having a certified arborist. Only one of those companies submitted a bid. The bid was submitted by Thundering Oaks in the amount of $53,410.00. Chair Burbidge and Council member Ferrell thanked Steve for his presentation on this issue at the September City Council meeting. Council member Ferrell moved approval to accept the tree removal bid from Thundering Oak Enterprise and authorize the Assistant City Manager to execute a contract for services in the amount of $53,410.00. Chair Burbidge seconded. Motion passed. NEXT MEETING – November 10, 2008 5:30 p.m. in the Hylebos Conference Room ADJOURNMENT - Meeting adjourned at 7:22 p.m.