FEDRAC MIN 05-24-2011 � CITY 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 5:37 p.m.
Committee Members in Attendance: Committee Chair Mike Park and Committee Members Jeanne
Burbidge and Jack Dovey.
Elected Officials in Attendance: Mayor Skip Priest, Deputy Mayor Dini Duclos, Councilmember Jim
Ferrell, Councilmember Linda Kochmar and Councilmember Roger Freeman (arrived at 6:10 p.m.)
Staff Members in Attendance: Police Chief Brian Wilson, Financial Services Administrator Bryant Enge,
City Attorney Patricia Richardson, Finance Director Tho Kraus, IT Manager Thomas Fichtner, Economic
& Community Development Director Patrick Doherty, Parks 8� Public Works Director Cary Roe, and
Deputy City Clerk Krystal Roe
2. PUBLIC COMMENT: None.
3. COMMITTEE BUSINESS:
Council
Topic Title/Description Placement
A. Approval of Minutes: April 26, 2011 N/A
Motion to approve as presented. Motion second and carried 3- 0.
B. May 2011 Legislative Report N/A
Mr. Enge introduced Legislative Lobbyist Doug Levy who joined the meeting via
conference call. Mr. Levy provided an update on legislation impacting Federal
Way. Councilmember Burbidge thanked him for his efforts.
C. Secondary Internet Connection - Follow-Up from April FEDRAC Meeting Discussion N/A
Mr. Fichtner presented his staff report and discussed options for secondary service
and highlighted the costs, incentives, and connectivity scenarios. Also discussed
were redundant systems versus fail-only service. The Committee directed Mr.
Fichtner to return to the June FEDRAC meeting with an action
item/recommendation.
D. Animal Services Briefing N/A
Referencing page 86 of the Monthly Financial Report, Chief Wilson updated the
Committee on the Animal Services Unit. While revenue has decreased, licensing
has increased 6.4% above the County's licensing rate. The goal is to reach 10� by
the end of program's first year. Chief Wilson also discussed outreach efforts
encouraging licensing including direct mailings, presence at public events, the
Police Department and City Hall.
Next, Chief Wilson explained plans to replace the vacant animal services
coordinator position with an animal control officer. Chief Wilson's overall
assessment is the City is providing a better level of service than the County did, but
there is more work to do which may result in a mid-biennium budget adjustment.
The Committee encouraged Chief Wilson to continue efforts to renew the 1,800
outstanding licenses.
FEDRAC SUMMARY
May 24, 201 1, Paae 2 of 3
E. Funding for Sand Sculpture Event CONSENT
Ob/07/11
Mr. Doherty announced the dates for the sand sculpting events as August 18
through September 5, 201 l. He further outlined the changes to this year's event
including elimination of teams and changing the venue to a Tour of Champions
rather than a qualifying event. Mr. Doherty reviewed the funding request and the
Lodging Tax Advisory Committee's (LTAC) unanimous approval/recommendation.
Mr. Doherty introduced John Hatcher, event organizer, Rudi Alcott, event co-
organizer and Charlie Beaulieu, World Championship of Sand Sculpting Executive
' Director. The Committee and event organizers discussed canceilation of the
parade, the name/format change, expenses, projected sponsorship, and budget
concerns.
Motion to approve the LTAC recommendation [approve allocation of an
additional $25,000 in the lodging tax funds for the 201 1 Sand Sculpture event and
reallocation of $5,000 from a parade to the event] and forward to the June 7, 201 1
City Council Consent agenda. Motion second and carried 3- 0.
F. Spring 2011 Tourism Enhancement Grant Applications CONSENT
Ob/07/11
Mr. Doherty presented the LTAC's recommendation for allocation of Tourism
Enhancement Grant funds. The Committee inquired about the decision to aliocate
no funds to the Tourism Center . Mr. Doherty replied the applicant did not meet the
threshold of an "event" encouraging tourism.
Motion to adopt the LTAC recommendations as presented and forward to the June
7, 2011 City Council Consent agenda. Motion second and carried 3- 0.
G. April Monthly Financial Report CONSENT
�, 06/07/11
Ms. Kraus presented her report to the Committee and highlighted favorable
Generat and Street Fund revenues above year-to-date budget estimates due to
increases in property tax, liquor profits and gambling tax offset by decreases in
sales tax, court revenue and permits and fees.
Court fines and forfeitures are down $30K with an anticipated annualized shortfall
of $90K.
On the expenditure side, all departments reflect positive variances with the
exception of jail services which is $26K or b% over the year-to-date budget estimate
mainly due to timing of payments.
The Designated Operating Funds continue to see increases in utility tax, real estate
excise tax and red light photo enforcement. On the expenditure side, all funds are
mainly on target with budget.
Through April, City portion of overtime is down $5K compared to year-to-date 2010
' and down $1 1 K compared to budget. The Police Department has made efforts to
mitigate overtime. The overtime incurred so far includes overtime related to red
light photo ($12K incurred through April) which is not currently in the budget and is
identified as a potential adjustment for year 201 1 and beyond.
April 2011's net red light photo revenues $473K but does not include April's invoice
payment of approximately $55K. Including April's estimated invoice payment, the
revised year-to-date April 2011 revenues total $418K and would be $77K or 23%
above year-to-date 2010. Gross revenues in March and April 201 1 is slightly less ($bK
less each month) than March and April 2010 which may be an indication that
these infractions are decreasing consistent with the intent.
Federal Way Community Center revenues are above year-to-date budget by $23K
and above year-to-date actual by $4K. Although expenditures are above year-to-
FEDRAC SUMMARY
May 24, 201 l, Paae 3 ot 3
date 2010 by $14K, they are still under year-to-date budget by $9K. Overall
revenue increase and expenditure savings results in an overall favorable position
when compared to budget. Currently there is $781 K in ending fund balance for
capital reserves and maintenance.
Motion to approve the April 2011 Monthly Financial Report as presented and
forward to the June 7, 2011 City Council Consent agenda. Motion second and
carried 3 - 0.
Motion to recess the meeting until affer conclusion of the City Council Special Meeting. Motion second and
carried 3 - 0.
At 7:00 p.m. the FEDRAC meeting was immediately recessed. Chair Park reconvened the meeting at 8:10
p.m.
H. Long-Range financial Plan Update EMERGING
Ma or Priest introduced the lon ran e financial re ort. Ms. Kraus rovided a �SSUE
Y g g p P obimn �
general overview. The Committee discussed re-wording the gambling tax increase
explanation to more clearly describe the change.
Councilmember povey expressed concern with referring to reductions in the
overlay program/budget as "on-going". Mayor Priest clarified "on-going" refers to
2013 and 2014, only.
Mayor Priest further explained this report is advisory with the intended goais of
providing Council opportunity to plan further ahead than in prior years, prioritize
funding, and to best position the 2013/2014 budget to obtain the outcomes they
seek.
Due to the late hour, Mayor Priest suggested adding this topic as a
presentation/emerging issue at the June 7, 201 1 City Council regular meeting. The
Committee concurred. The Mayor also requested input and asked that specific
concerns be forwarded to him so the issues could be addressed during a more
lengthy disc�ssion at the Council meeting.
I. Vouchers CONSENT
06/07/1 1
Motion to approve the vouchers as presented and forward to the June 7, 2011 City
Council Consent agenda. Motion second and carried 3- 0.
4. OTHER: None.
5. FUTURE AGENDA ITEMS
6, NEXT MEETING: Tuesday, June 28, 2011
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Chair Park adjourned the meeting at 8:40 p.m. , d�' �1 �
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Attest:
� K�' tal Roe, Deputy City Clerk
COMMITTEE APPROVAL: �
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Mi e ark Jeanne Burbidge Jack Dovey
Committee Chair Committee Member Committee Member