FEDRAC MIN 06-28-2011Federal Way
City Council
SUMMARY
Tonal Affairs Committee
1. CALL TO ORDER: Chair Mike Park called the meeting to order at 5:33 PM.
Committee Members in Attendance: Committee Chair Park, Committee Members Burbidge. Chair Park
excused Committee Member Dovey's absence.
Councilmembers in Attendance: Mayor Priest, Deputy Mayor Duclos, Councilmember Kochmar,
Councilmember Ferrell, and Councilmember Freeman.
Staff Members in Attendance: ASD Bryant Enge, Finance Director Kraus, City Attorney Richardson, CED
Director Doherty, Parks /PW Director Roe, IT Manager Fichtner, Parks and Facilities Manager Ikerd, RCM
Jones, Executive Assistant Lindquist, and Executive Assistant Cain.
2. PUBLIC COMMENT: One public comment was received from Susan Honda. She spoke in regards to the
high rise building proposal for the city owned downtown property and her concerns about the previous
development company.
3. COMMITTEE BUSINESS
Topic Title /Description Council
Placement
A. Approval of Minutes: May 24, 2011 N/A
Discussion Only
Chair Park had one correction for the May 24, 2011 minutes. On item E, the motion should
reflect a 2 -1 vote. Committee Member Burbidge moved to approve this change. Chair
Park second. Motion carried 2 - 0.
Committee Member Burbidge moved to approve minutes with the requested change.
Chair Park second. Motion carried 2 - 0.
B. Federal Way Civic Center Project Update N/A
Discussion Only
ASD Enge provided the Committee with an update on the Civic Center project. He
stated there has been progress made since the last update. In February 2011, the
advisory committee was formed. The advisory committee has members from the business
community, performing arts groups, Councilmember Burbidge, a technical advisor and
lodging expert. This group is in an advisory role and provides input in the process. In April
2011, the RFQ went out for architectural and engineering services. 15 proposals were
received including three international firms. LMN Architects were selected and are
currently in contract negotiations. Due diligence will be next. The Public Works
Department is working on sidewalk improvements, which should be done by July 2011.
The cost for those is approximately $100,000.
Councilmembers inquired about where the money will be spent. Parks /PW Director Roe
stated the same downtown standards will be applied here and will include decorative
lights, sidewalks, and plantings.
There will be a presentation for the City Council on July 5, 2011.
There was one question from the audience. Who reviewed proposals? ASD Enge stated
the committee did which included multiple community members as listed above.
C. City Center Redevelopment RFQ Responses Business
07/05/11
Patrick Doherty presented the "Request for Qualifications" responses for the City Center
Downtown Redevelopment RFQ.
The RFQ was released on April 25, 2011. The RFQ was printed in the Daily Journal of
FEDRAC SUMMARY
June 28, 2011
Commerce, the Puget Sound Business Journal, the west coast edition of the Wall Street
Journal, the International Council of Shopping Centers magazine, and direct mail. Three
responses were received.
CED Director Doherty completed a brief summary of each proposal.
Mayor Priest stated this topic will be a special City Council meeting on July 19, 2011.
There was a discussion on the current market conditions that may have had an affect on
the number of responses. There was a discussion on whether or not there could be
modest changes in the downtown area including public art, grassy areas, signage for the
Civic Center, etc to help with attracting development. Mayor Priest discussed having a
more aggressive plan for revitalization of the downtown area. It may be the small things
that make a difference.
Councilmembers expressed their desire to meet on 7/19/2011 to discuss these proposals.
They would like to see finance documents for one of the proposals. They also discussed
what the market could handle, what can be done to spruce up the area, having a
downtown community group, and height of the buildings.
Councilmembers inquired about having a large concept for the entire downtown and
not having competing design concepts. There was a discussion on how to get new
downtown development ideas to decision makers.
Councilmembers inquired on the financing for some of the smaller projects. CED Director
Doherty stated that some of the modest improvements could be financed from city
funds. There are some great opportunities for some improvements. There is interest in
researching some of the ideas to see if they could be implemented.
There was a request for dollar amounts for the modest improvements. Mayor Priest stated
some of these costs will be presented at the 07/19/2011 meeting.
Committee Members discussed their hesitation with the three proposals not reflecting the
Council's vision of the downtown. One commented in regards to throwing out all the
responses. There was a discussion on next steps.
There was a discussion on the EB -5 Program.
There was a lengthy discussion in regards to options for the land.
Chair Park moved to forward to July 19, 2011 City Council meeting as Council business.
Committee Member Burbidge second. Motion was withdrawn by Chair Park.
Chair Park moved to forward this item to a special session on July 19, 2011 and potentially
onto the City Council meeting under Council Business. Committee Member Burbidge
second. Motion carried 2 - 0.
D. ORDINANCE: Citizen Initiative and Referendum Process
Intro
Ordinance
City Attorney Richardson presented a proposed ordinance about the processing of
07/05/11
citizen initiatives and referendums. This is a housekeeping item that deals with who
verifies the signatures, the processing of the initiatives and referendums, and time allowed
to gather the signatures.
Councilmembers had questions about when the signatures can be gathered and how
old they can be when turned in.
Committee Member Burbidge moved option 1. Chair Park second. Motion carried 2 - 0.
E. Energy Conservation Measures
Consent
07/05/11
Parks and Facilities Manager Ikerd and Resource Conservation Manager Jones presented
energy conservation measures to the Committee.
Approximately one year ago, the City entered into agreement with PSE to assist with
conservation measures. This program is partially funded through WSU's Energy Extension
Program, PSE and the City. RCM Jones has been performing building audits at all City
FEDRAC SUMMARY
June 28, 2011
facilities. The primary focus of this program is to implement low cost /no cost measures.
These measures would provide immediate and measurable return on investment. RCM
Jones reviewed a chart of measures that staff is recommending to implement in four
buildings.
Committee Members inquired about lighting measures and had heard that LEDs have
improved. RCM Jones stated that there are incentives for upgrading items. On July 12,
2012, the old style of lighting will not be manufactured and PSE will be taking incentives
off the table. PSE is currently picking up 50% of the per bulb cost. LED lighting has
become a proven technology. LEDs are expensive but they cut wattage by up to 80%
and have reduced maintenance costs due to the longer burn time. These bulbs have
now been installed in the City's traffic lights and in the City Hall art hallway.
Committee Member Burbidge moved to forward the authorization of using building
reserve funds for implementation of energy conservation measures: $15,573 for City Hall &
Police Evidence Building, $8,883 for the Federal Way Community Center, and $3,200 for
Dumas Bay Centre, and authorize the Mayor to move said authorization of using reserve
funds to the full Council July 5, 2011 consent agenda for approval. Chair Park second.
Motion carried 2 - 0.
F. Redundant Internet Connection Consent
07 /05 /11
IT Manager Fichtner discussed a redundant internet connection for the City. NoWYR was
chosen to provide a point -to -point wireless link that would be redundant. Their service will
be much quicker than the other companies in the area. This will also help improve the
free wireless service in the downtown area.
Committee Member Burbidge moved to forward option 1 to the July 5, 2011 consent
agenda. Chair Park second. Motion carried 2 - 0.
G. Copier lease vs. Purchase N/A
Discussion Only
IT Manager Fichtner provided a chart that compares leasing of copier equipment vs.
purchasing it. He also stated that IT has reviewed the brand of copiers to make sure we
are getting the best for our dollars. IT has chosen Canon copiers as the best brand for
City operations.
He also presented manufacture costs for purchase and operations. Staff recommends
purchasing copiers. Committee members stated that purchasing is the best option.
H. Windows 7 /Office 2010 Upgrade
IT Manager Fichtner stated the City is upgrading our Windows products. The current
version does not have the same functions as the new version has. Windows 7 has been
around for 2 years. This is not a simple task for IT staff. There will be major systems
upgraded including the servers that have already been upgraded. The email server will
be upgraded next and then workstations will be done. IT has been running Windows 7
and Office 2010 and a few bugs have been found. IT will fix those before the rollout.
There will be energy savings as Windows 7 can be put in sleep mode easier. Updates will
be completed easier and quicker.
Committee members inquired about a smooth transition. IT has been using this for 7
months to make sure there are no bugs in the system. The timeline is aggressive but IT will
insure a smooth transition.
Committee members inquired about donating old computers to non - profits or the
schools. IT Manager Fichtner stated there are ways of getting rid of excess equipment
and donating to non - profits will be looked at.
I. Cooperative Purchasing Agreements
N/A
Discussion Only
N/A
Discussion Only
Finance Director Kraus stated the City intends to join three national purchasing
cooperatives that will provide additional options for purchasing. Membership with these
cooperatives does not mean they meet our purchasing requirement so Finance has
developed a checklist for departments to use to make sure City's purchasing
FEDRAC SUMMARY
June 28, 2011
requirements are met. Chair Park inquired whether the City uses the state contract.
Finance Director Kraus responded yes and this would add more options.
Committee Members wanted to make sure we are using the State of Washington
procurement. Finance Director Kraus stated we do use their contract.
J. May Monthly Financial Report Consent
07/05/11
Finance Director Kraus provided a brief update on May's Monthly Financial Report.
Property tax continues to show a favorable variance, up approximately $60K compared
to year -to -date budget estimate. By year -end property tax is expected to exceed
budget by approximately $123K.
During the last few months, we have sales tax down roughly 2 %. This month we are seeing
a better picture but some of the increase is due the $59K amnesty payments the City
received. Excluding amnesty payments, sales fax is down 2 %. We have received June's
sales tax distribution that also included amnesty payments of roughly $29K. Year -to -date
June sales fax excluding amnesty payments is down 1.4% from budget.
Utility fax continues to exceed budget. Compared to year -to -date 2010:
• Electricity is up $187K, 2011 year -end estimate projects a $1 OK increase
• Gas is up $198K, 2011 year -end estimate projects a $152K increase
• Solid Waste is up $14K, 2011 year -end estimate projects a $19K increase
• Cable is up $13K, 2011 year -end estimate projects a $27K
• Phone is down $46K, 2011 year -end estimate projects a $121 K decrease
• Cellular is down $99K, 2011 year -end estimate projects a $565K decrease
Real estate excise tax continues to exceed budget and is projected to reach $1.4 million
by year -end. Gambling tax also continues to exceed budget and by year -end should be
close to exceeding by roughly $350K. Red light photo revenues are also up, however,
March, April and May net revenues are below 2010 levels. Animal licenses are still
projected to reach 50% of budget by year -end.
Court fines and forfeitures are seeing some improvement with Traffic and Non - Parking
fines maintaining the similar variance as in April's report - down $45K compared to year -
to -date May 2010.
Jail is currently showing a positive variance. We are seeing savings by using the Chelan
jail in 2011 instead of Yakima. January through April Yakima bills in 2010 total $464K
compared to $31 OK in 2011, a savings of $100K from decreased usage and $54K from
medical savings.
Federal Way Community Center continues to perform well with revenues exceeding
budget and expenditures below budget.
Chair Park inquired whether adjustments would be made to the 2013/2014 budget.
Finance Director Kraus stated the mid - biennium budget adjustment would start in
September of this year and there would be adjustments made to the 2011/2012 budget
which may impact 2013/2014 estimates as a result.
Chair Park stated the City's financial situation is much better than other cities. There is
some work to do with Animal Services fees.
Committee members inquired about what will be done with any revenues that are higher
than expected. There will be some adjustments stated Finance Director Kraus.
Committee Member Burbidge moved adoption. Chair Park second. Motion carried 2 -
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June 28 2011
0.
K. Vouchers
Councilmember Kochmar inquired on check # 223432, payment to Rainier Valley
Construction. Finance Director Kraus stated this was a payment made by Public Works
Street Department for Hylebos but did not have the specific details of the payment but
would provide follow -up. Kraus stated all payments were standard and noted there was
one payment to state that was voided and reissued.
Committee Member Burbidge moved adoption. Chair Park second. Motion carried
2 -0.
* *NOTE: This follow up was sent via email directly after the meeting. **
The payment of $15,603.75 to Rainier Valley Construction is according to agreement # 1 1-
083 for waterline hookup to Lakehaven to the two Hylebos Caretakers homes. Currently
the caretakers' homes are on well service. Water connection is scheduled to occur later
this year.
4. OTHER: None
5. FUTURE AGENDA ITEMS: Financial Procedures
6. NEXT MEETING: Tuesday, July 26, 2011
Meeting adjourned at 7:34 PM.
Attest:
Mike Park Jeanne Burbidge
Committee Chair Committee Member
Consent
07/05/11
Brook Lindquist, Executive Assistant
Jack Dovey
Committee Member