FEDRAC MINS 09-30-2003
City of Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, September 30, 2003
4:00 p.m.
City Hall
Mt. Baker Conference Room
MINUTES
Committee Members in Attendance: Chair Michael Park, Member Mary Gates, and Member Eric Faison.
City Council Members in Attendance: Mayor Jeanne Burbidge and Council Member Linda Kochmar.
Staff Members in Attendance: Iwen Wang, Management Services Director; David Moseley, City Manager; Pat
Richardson, City Attorney; Michael Olson, Deputy Director of Management Services; Patrick Doherty, Deputy
Director of Community Development; Jason Suzaka, Management Analyst.
Others in Attendance:
1. CALL TO ORDER
Chair Michael Park called the meeting to order at 4:00 p.m.
2. PUBLIC COMMENT
None.
3. COMMITTEE BUSINESS
a) Approval of the August 26, 2003 meeting minutes
Motion to approve the August 26, 2003 meeting minutes. Motion seconded and carried.
b) E con om i c Devel opm en t Repor t
Presented by Patrick Doherty
Currently, there are three events/items of interest:
The Inter national Trade Workshop @ Twin Lakes Country Club (10/1/03 at 9am) •
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Second Economic Opportunity Response Team meeting @ Twin Lakes Country Club
(10/8/03 at 7:30am)
Website for Economic Development (Target date for launch is sometime next month)
Some other notable highlights:
Th e Reebok Cor por ation also r ecen tly an n oun ced on th at Feder al Way h as been ch osen as a
site for the Reebok Women’s Triathlon Series!
In August we received con sider able in ter est via th e EDC (Econ omic Developmen t Coun cil)
from businesses that are interested in locating some or all of their operations in Federal Way.
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In September, the State Office of Tourism notified us that the Today Show has inquired
about doing a segment on fall-foliage related events in Washington State.
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EDC also notified us that the Kubota Corporation of Japan is interested in possibly leasing
some industrial space for a light manufacturing plant here in Federal Way.
The latest word about the Metropolitan Market is that they are in the process of closing the
transaction, and still need to pick up their permit.
Councilmember Kochmar suggested that Mr. Doherty could give a quarterly economic
development report at future Council meetings. Councilmember Gates reminded the committee
that we need to be aware of public disclosure rules and the wishes of potential
businesses/developers about not revealing their potential plans.
Redevelopment Strategies:
Beginning with page B5, Mr. Doherty reviewed some brief descriptions about what other cities
are doing in terms of economic development; using the Cities of Kent, Burien, Tukwila,
Lynnwood, and University Place. Correction: The 4th line on page B6 should read $1 million,
not $1.
Potential Funding Options:
In addition to the 3 options listed on page B8, there was a suggestion that a fourth option might
be using the sales tax revenues derived from the construction on any publicly built facility.
Mr. Doherty then gave 5 options on potential redevelopment funding sources and mechanisms
(labeled “next steps”) for the committee to comment on (see packet for the five named options).
Chair Par k suggested discussing th e topic at the Council retreat in January.
Councilmember Faison expressed his support for options 1, 2, and 3; he felt that the Council
shouldn’t wait until January, but rather to keep pressing forward with the discussion and
take action.
Councilmember Gates suggested pressing ahead with the discussion in order to take
advantage of the current bidding and interest rate climate (if appropriate). The bids Sound
Tr an sit r eceived on some of th eir pr ojects wer e ver y low; someth in g th at Feder al Way could
potentially also enjoy on theirs if acted upon in a timely manner.
After looking at what the other five cities have done, Mr. Moseley suggested that the Council
keep the option open on purchasing land. We should talk to the other cities and ask what the
advantages/disadvantages are in purchasing land; it may be too early in the discussion not to
consider this option.
The committee and staff decided that a Council study session might be appropriate for this
discussion. Staff will coordinate a date and time (mostly likely October 28th after FEDRAC) and
make the necessary notifications. In the meantime, staff will flesh out the options listed for the
Council to help their discussion at the study session.
c) City Code Amendment – Massage Practitioners
Presented by Pat Rich ar dson
Ms. Richardson reviewed the proposed amendments to Chapter 9, Article IX in the code to
reflect th e ch an ges in state law.
Motion to recommend a do-pass to the proposed amendments and forward to full Council for
approval. Motion seconded and carried.
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d) Update of City Council’s Purchasing Policies
Presented by Pat Rich ar dson
Ms. Richar dson reviewed th e pr oposed amen dmen t to th e pur ch asin g policies to r eflect th e
changes in state law. She passed out a copy of the resolution to the committee.
Motion to recommend a do-pass to the proposed amendments to the purchasing policies and
forward to full Council for approval. Motion seconded and carried.
e) Ear ly Retir emen t of Bon ds
Presented by Iwen Wan g
Ms. Wang reviewed the strategy for early retirement of the 1993 Celebration Park Acquisition
Bonds. Because the bond call and utility tax transfer are both in the adopted budget, no action
fr om Council is required to be taken.
f) August 2003 Monthly Financial Report
Presented by Mich ael Olson
Michael Olson reviewed the August 2003 Monthly Financial Report (MFR) with the committee.
YTD operating revenues overall are slightly under budget ($162,000 or -0.4% below YTD). Real
E st a t e E xci se T a x r even ues con t i n ue t o r em a i n wel l a bove budget (57.7% above YT D); however
sales tax revenues are 3.8% below budget due to the slow economy. Hotel/Motel Taxes and
Gam bl i n g T a x Reven ues a r e bot h fa vor a bl y a bove YT D budget, but utility tax revenues continue
to be below YTD budget.
YTD operating expenditures continue to be favorably below budget ($1.68 million, or 6.0%);
much of the saving is due to one-time funding. Correction: On page B10, M&O expenditures for
Celebration Park should read $206K (not $183K), as reflected on the table.
Motion to approve the August 2003 Monthly Financial Report 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 to full Council for approval. Motion seconded and
carried.
4. OTHER
None.
5. FUTURE AGENDA ITEMS
6. NEXT SCHEDULED MEETING
October 28, 2003 at 4:00 p.m. in the Mt. Baker Conference Room.
7. ADJOURN
Chair Michael Park adjourned the meeting at 5:20p.m.
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Recorded by Jason Suzaka