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FEDRAC MINS 09-30-2002 City of Federal Way City Council Finance/Economic Development/Regional Affairs Committee DRAFT Monday, September 30, 2002 8:30 a.m. City Hall Mt. Baker Conference Room MINUTES Committee Members in Attendance: Chair Michael Hellickson, Member Mary Gates, Member Eric Faison. City Council Members in Attendance: Mayor Jeanne Burbidge, Council Member Linda Kochmar. Staff Members in Attendance: Iwen Wang, Management Services Director; David Moseley, City Manager; Derek Matheson, Assistant City Manager; Pat Richardson, Interim City Attorney; Michael Olson, Deputy Director of Management Services; Patrick Doherty, Deputy Director of Community Development; Donna Hanson, Assistant City Manager; Rob Van Orsow, Solid Waste/Recycling Coordinator; Ken Miller, Deputy Director of Public Works; Jason Suzaka, Management Analyst. Others in Attendance: Battalion Chief Thorson, Federal Way Fire Department. 1. CALL TO ORDER Chair Michael Hellickson called the meeting to order at 8:30 a.m. 2. PUBLIC COMMENT None. 3. COMMITTEE BUSINESS a) Approval of the August 27, 2002 meeting minutes Motion to approve the August 27, 2002 meeting minutes. Motion seconded and carried. b) Legislative and Regional Affairs Update Presented by Der ek Math eson Currently the biggest legislative issue is the election, which looks to be a very tight race. There could be a change in the Senate, where a key incumbent Democrat in Whatcom County lost badly in the primary, giving the Republicans a one-seat majority. The key is the 26th District. A change in the majority party could have a number of consequences for the state, and ultimately, local budgets. Mr. Matheson requested that FEDRAC place the 2003 legislative agenda on its October agenda. Last week the Growth Management Planning Council adopted the housing targets that had been placed on hold for the past two months. Its passage was a big win for South King County. A-1 Th e Kin g Coun ty Distr ict Cour t system h as r ecommen ded closin g both th e Feder al Way an d Renton District Courts. Cases will begin shifting to the Aukeen District Court. This is not a big issue for Federal Way, since the City already has its Municipal Court. But it will be more of an issue for the smaller civil cases. Why are both closures in South King County? Mainly due to the formation of a number of municipal courts in the area. The Regional Policy Committee staff finalized their human services recommendations to the RPC for its review. Councilmember Kochmar stated that the RPC will be meeting on Wednesday, where it will be very heated due to the fact that human services programs will not be receivin g th e mon ey th ey feel is n eeded. Jails – still working out the details on the Yakima Jail Contract. Regional Transit Committee is currently working on Metro’s mission, goals, and financial policies. c) 2003 Solid Waste & Recycling Program Grant Approvals Pr esen t ed by Rob Va n Or sow Mr. Van Orsow reviewed the grant applications with the committee. A question was asked regarding whether or not the household hazardous waste and latex paint are in separate bins. Mr. Van Orsow replied that under the hazardous waste pilot project residents who request this service will have bins at their doorstep. Under the latex paint disposal program, participants are being given paint hardener to mix into the latex paint, which can then be disposed of as general refuse. This allows the paint to be disposed of at a much lower cost, since recycling the paint is a lot more expensive. This program is an attempt to dispose of waste that is convenient for residents, cost-efficient, and minimizes environmental pollution. The program will be very limited to ensure high control. Motion to approve the 2003 Solid Waste and Recycling Grant Applications. Motion seconded and carried. d) Redevelopment Incentives in City Center Presented by Patrick Doherty Mr. Doherty reviewed the redevelopment tools memo with the committee. In addition to a summary of the City Center Market Study, the memo provides more information and background on five potential tools: • SEPA Plan n ed Action • Housing Tax Exemption • Modify Infrastructure Requirements/Build Infrastructure Improvements • Participate in Public Parking Garage • Community Renewal Plan Some notes: SEPA Plan n ed Action • Councilmember Gates mentioned that Hillside Plaza would be a good candidate for redevelopment. • Councilmember Faison asked if there would be big differences in cost between resear ch in g th e cor e an d fr ame. He men tion ed th at maybe th er e ar e oth er ar eas outside the core (such as Ross Plaza) that are also ripe for redevelopment. The committee asked Mr. Doherty to follow up on this and find out what the cost would be. C:\staging\417FD945-072D-106150\in\417FD945-072D-106150.doc A-2 Housing Tax Exemption • Battalion Chief Thorson of the Federal Way Fire Department said that the Fire Department decided not to formally adopt a position on the issue one way or another. • Mr. Doherty mentioned that Tacoma has seen enough development that they are starting to consider whether their housing tax exemption is still needed. This is why the Federal Way project is only a five-year pilot. • State law only allows the exemption in urban centers. • Councilmember Gates noted that the libraries have also been consulted on this idea and are satisfied with it. o However, how success will be measured on this project? What is the best way to make people understand the reason for the exemption? Councilmember Gates also requested that she would like to see balance sheets on all of the options being offered, if possible. Participate in Public Parking Garage • Councilmember Hellickson said he felt uncomfortable supporting funding for the garage at the present time. • Councilmembers Faison and Kochmar expressed their interest in further study on the issue, with Ms. Kochmar particularly interested in the feasibility of the use of the tactic used in the City of Santa Monica in Federal Way. • The committee asked that the words "potentially funding" be stricken from motion #5. Community Renewal Plan • Councilmember Kochmar expressed her interest in the plan and further research into the idea. • The committee mentioned that they would like to see some sort of prioritization of the various options offered. Mr. Moseley replied that the options are ordered in such a way that options 1, 2, and 3 are being looked at right now; with 4, 5, and 6 further down the line if Council is interested. Mr. Doherty also explained that 6 is a vehicle for 4 and 5; it provides a plan for looking ahead. • Councilmember Gates also offered that the City may want to look into how to get Federal Way in corporate marketing plans (i.e. trying to get corporations to expand/locate into FW). • Ms. Richardson mentioned that it would probably take a couple months to research the constitutionality of the Community Renewal Plan. She felt that the issue would probably be fa ct -dr i ven . The FEDRAC Council Committee moves the following: 1. Forward to LUTC the SEPA Planned Action for the City Center Core on the area described by South 316th and 324th Streets and Pacific Highway South and 23rd Avenue South, and include Ross Plaza and Hillside development. 2. Forward the Housing Tax Exemption proposal back to City Council for a public hearing on the "residential targeted area," as required by RCW, followed by action on the designation of the "residential targeted area: and action on the corresponding code amendments. 3. Forward to LUTC the issue of further studying the potential for any modification to ROW improvement standards within the City Center Core, or specific areas therein, C:\staging\417FD945-072D-106150\in\417FD945-072D-106150.doc A-3 that could lessen this burden to developers, while still maintaining necessary ROW functionality. 4. After LUTC has made a determination regarding the ROW improvements outlined above, return the issue to FEDRAC to direct City staff to identify the potential incentives to redevelopment and conduct further study of the potential for funding/partially funding these requirements. 5. Direct City staff to study further the two approaches discussed above for potentially funding or partially funding a public parking garage in the City Center, including potential funding plans and implementation strategies, to be brought back to FEDRAC for discussion and potential action. 6. Direct staff to continue to study the potential for and legal ramifications of implementing a Community Renewal Plan and, barring serious legal obstacles; proceed with such a plan in tandem with the planning efforts associated with the SEPA Planned Action. Motion seconded and carried. e) Proposed Tyco International, Inc. Fiber Optic Franchise Presented by Pat Rich ar dson Ms. Richardson reviewed the proposal with the committee. She added that although Councilmember Gates requested a letter of credit from the company, unfortunately the City had already reached an agreement on everything beforehand. Tyco is not building anything, the conduits are already there. In the event they do go bankrupt, the City gets $50,000 bond plus the conduits. Councilmember Gates requested that the City ask for a letter of credit before entering into any agreement with telecom companies. A letter of credit is first in line in bankruptcy court. Motion to forward the proposed franchise to full Council for placement on the October 1, 2002 City Council agenda. Motion seconded and carried. f) Monthly Financial Report Presented by Mich ael Olson Mr. Olson reviewed the August 2002 Monthly Financial Report (MFR) with the Committee. He added that the City was given an "unqualified opinion" from the State Auditors Office. Reven ues a r e 8.8% a bove budget (1/3 from the Real Estate Excise Tax and Utility Tax) Correction: Expenditures are actually $2.2 mil below year to date budget. Motion to accept the August 2002 MFR and forward to full Council for approval. Motion seconded and carried. g) Voucher s Presented by Mich ael Olson Mr. Olson presented th e vouch er s for appr oval. Motion to accept the vouchers and forward them to full Council for approval. Motion seconded and carried. C:\staging\417FD945-072D-106150\in\417FD945-072D-106150.doc A-4 C:\staging\417FD945-072D-106150\in\417FD945-072D-106150.doc A-5 4. OTHER None. 5. FUTURE AGENDA ITEMS a) Voicestream/BPA Twin Lakes Lease b) Olympic Pipeline 6. NEXT SCHEDULED MEETING October 22, 2002 at 5:30 p.m. in the Mt. Baker Conference Room. 7. ADJOURN Chair Michael Hellickson adjourned the meeting at 10am. Recorded by Jason Suzaka