FEDRAC MIN 11-22-2011CITY OF
. Federal Way
City Council
FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE
[FEDRACI
Tuesday, November 22, 2011
5:30 p.m.
Federal Way City Hall
Hylebos Room
Meeting Summary
(Preliminary until approved)
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, December 27, 2011
Committee Members:
Mike Park - Chair
Jeanne Burbidge
Jack Dovey
City Staff:
Bryant Enge, Administrative Services Director
Steve Cain, Executive Assistant
253 835 -2402
Action
Topic Title /Description
Presenter
Page*
or Discussion
A.
APPROVAL OF MINUTES: OCTOBER 25, 2011
S. Cain
2
Action
Committee approval
B.
CITIZENS INITIATIVE PROCESS
P. Richardson
11
Action
12/06 Council Business
C.
NOTICE OF INTENT TO WITHDRAW MEMBERSHIP AT WASHINGTON CITIES
P. Richardson
15
Action
INSURANCE AUTHORITY (WCIA)
12/06 Council Consent
D.
FALL2011TOURISM ENHANCEMENT GRANT APPLICATIONS
P. Doherty
17
Action
12/06 Council Consent
E.
UTILITY TAX REBATE PROGRAM REVISION
B. Lindquist
78
Action
12/06 Ordinance
F.
HABITAT FOR HUMANITY— MOU
B. Enge
87
Action
12/06 Council Consent
G.
I CONTRACT EXTENSION FOR THE PURCHASE OF NETWORK VIDEO RECORDER
T. Fichtner
92
Action
12/06 Council Consent
H.
CONTRACT EXTENSION FOR THE PURCHASE OF WIDE FORMAT
T. Fichtner
97
Action
PLOTTER/SCANNER
12/06 Council Consent
I.
...._ . _ _
AMENDMENT TO WASHINGTON STATE COOPERATIVE PURCHASING AGREEMENT
T. Kraus
102
__ - - -- - - - - -_.
Action
12/06 Council Consent
J.
OCTOBER MONTHLY FINANCIAL REPORT
T. Kraus
106
Action
12/06 Council Consent
K.
VOUCHERS
T. Kraus
123
Action
12/06 Council Consent
*Additional materials may also be distributed for review /action during the meeting
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, December 27, 2011
Committee Members:
Mike Park - Chair
Jeanne Burbidge
Jack Dovey
City Staff:
Bryant Enge, Administrative Services Director
Steve Cain, Executive Assistant
253 835 -2402
CITY OF
FEDRAC November 22, 2011 4 4 & Federal Way Page 2 of 9
1. CALL TO ORDER
By: Councilmember Mike Park - Chair
Time: 5:32
Committee Members in attendance:
Mike Park x_ Jeanne Burbidge * ( arrived 5:52) Jack Dovey _x
*Chair announded Councilmember Burbidge will be late.
Other Council Members or elected officials in attendance:
Mayor Priest
Staff in attendance:
Bryant Enge, Administrative Services Director 253 835 -2510
Steve Cain, Executive Assistant 253 835 -2402
Pat Richardson, City Attorney 253 835 -2570
Tho Kraus, Finance Director 253 835 -2520
Patrick Doherty, Community and Economic Development Director 253 835 -2612
Brook Lindquist, Executive Assistant to City Council 253 835 -2401
Thomas Fichtner, IT Manager 253 835 -2547
Brian Wilson, Chief of police 253 835 -6700
2. PUBLIC COMMENT
Norma Blanchard:
Ms Blanchard discussed citizens initiatives, special elections, signature gathering and time limits
3. COMMITTEE BUSINESS
Note: Because Councilmember Burbidge was late, committee items were taken in the following order:
A, C, G, H, I, D, B, E, F, J, K
PAGE #
Recording index time
A. APPROVAL OF MINUTES: OCTOBER 25,2011 S. CAIN 2 Action
3:07 Committee Approval
Discussion /Changes: Steve Cain, Executive Assistant
Motion to accept as presented, second, passed
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FEDRAC November 22, 2011 •� Federal Way Page 3 of 9
C. NOTICE OF INTENT TO WITHDRAW MEMBERSHIP AT WASHINGTON CITIES P. Richardson 15 Action
INSURANCE AUTHORITY (WCIA) 3 : 25 12/06 Council Consent
Discussion /Changes: Pat Richardson, City Attorney
12 month notice of intent is required —this will authorize Mayor to give give that notice
Will give city time to do diligence and locate broker, carrier and actuary analysis.
Councilmember questions 2013 or 2012. Clarifies that we could start our own in 2013.
Councilmember Dovey moves to pass, second and passed.
G. CONTRACT EXTENSION FOR THE PURCHASE OF NETWORK VIDEO RECORDER T. Fichtner 92 Action
5:26 12/06 Council Consent
Discussion /Changes: Thomas Fichtner, IT Manager
Time extension to allow camera upgrades
There is no affect on the contract price, it is time extension only.
Councilmember Dovey moves to pass, second and passed.
H. CONTRACT EXTENSION FOR THE PURCHASE OF WIDE FORMAT T. Fichtner 97 Action
PLOTTER /SCANNER 7 :39 12/06 Council Consent
Discussion /Changes: Thomas Fichtner, IT Manager
Scanner delivered inoperable and needed replacement
Contract termination extension only, no change in the contract cost
Councilmember Dovey moves to pass, second and passed.
1. AMENDMENT TO WASHINGTON STATE COOPERATIVE PURCHASING AGREEMENT T. Kraus 102 Action
8:58 12/06 Council Consent
Discussion /Changes: Tho Kraus, Finance Director
State changed department name
Extend one year under the new name with same membership fee
Councilmember Dovey starts a discuss by asking the purpose of program.
Tho replies that allows us group purchase savings for equipment, such as, vehicles, radios
Councilmember Dovey questions why WISKA is not used.
Tho said we have not used and she was not familiar with that program.
Councilmember Dovey enumerated benefits of WISKA, i.e., no monthly fee, similar to current contract, Councilmember
Dovey said he could provide additional info
Tho says we do use use other group purchasers but not WISKA
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FEDRAC November 22, 2011 ;A� Federal Way Page 4 of 9
Councilmember Dovey suggests we look into WISKA but will vote to approve this Amendment and so moves.
Councilmember Dovey moves to pass, second and passed.
D. FALL 2011 TOURISM ENHANCEMENT GRANT APPLICATIONS P. DOHERTY 17 Action
13:30 12/06 Council Consent
Discussion /Changes: Patrick Doherty, Community and Economic Development Director
Patrick discuss funding of events and the Non -Event Item shown in updated version
(Staff indicates that all members received updated version)
Slavic community interested in new event — church based -- $3K offered by FW — Slavic thought too low
Councilmember Dovey says cannot do $30K If they want more, go to lodging tax committee. They can piggyback on
other events, also
Councilmember Kochmar questions using money for marketing Patrick said law changed to include production also
Councilmember Dovey & Patrick discuss the matrix to determine elgibility
Councilmember Kochmar — why listed amounts, Patrick explains this is the remainder of the budget.
Councilmember Dovey — budget included brouchure development but not print /distribute
Chair Park —some still not understand process
Patrick — some funds merely line items and some is down payment, can request more in next budget
Councilmember Dovey — set aside some money for seed. If not used, can roll over
Chair Park & Patrick — soccer tournament, 3000 attend first year
Councilmember Dovey — can take additional requests and amounts to Council based on Lodging Tax
Patrick —tax receipts exceed budget because budget was set low.
Motion to forward to Council by Councilmember Dovey, Second by Chairman Park, (Councilmember Burbidge recused
herself.) Motion passed 2 — 0.
B. CITIZENS INITIATIVE PROCESS P. Richardson 11 Action
26:36 12/06 Council Business
Discussion /Changes: Pat Richardson, City Attorney & Mayor Priest
Mayor — Started the discussion — Council request for staff to look at options
Recommendation -- pattern after current state practice
Place on November ballot - not use special election and extra cost
Only 43 out of 180 cities have initiative process
It was a Council decision
Chair calls for Comments:
Chair Park — speaks against
Councilmember Burbidge — satisfied with process
Chair Park— already discussed tabling
Councilmember Dovey— favors a vote up or down
Chair Park— agrees with Councilmember Dovey
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FEDRAC November 22, 2011 • Federal Way Page 5 of 9
Councilmember Jack Dovey moved for Option 3 - Do not modify. Councilmember Burbidge second. Motion passed
unanimously.
E. UTILITY TAX REBATE PROGRAM REVISION B. LINDQUIST 78 Action
33:27 12/06 Ordinance
Discussion /Changes: Brook Lindquist, Executive Assistant to City Council
Discuss change in program
History Council 2003, increased participation 2007.
Discuss the increase in applicants and staff burden due to reduced staff
Propose amendment change to flat fee, with proof of income, and residence
Councilmember Dovey — national program for free cell phones for seniors
Suggests $100 max, feels we are too generous
Councilmember Burbidge — all get same amount regardless of use?
Brook - described variations in rebates and looked for common ground
Councilmember Kochmar - intent & $10 /mo is reasonable
Councilmember Dovey - discusses ramifications of giving to thousands potentially eligible — could add up to $400K±
Councilmember Kochmar what are the real numbers.
Brook explains numbers of senior who qualify, poverty rate about 12%
Councilmember Dovey Proverty greated in senior population, no control if all want rebates
Councilmember Burbidge not sure the number is correct
Chairman Park mentions the need to budget
Councilmember Dovey and Councilmember Kochmar discuss the numbers, people and cost
Chairman Park — comments that N and cell phones no longer luxuries, he likes the flat rate idea.
Chairman Park & Councilmember Dovey engage in discussion of fairness and who will get more or less
Bryant — asks for more time for staff to research
Brook reminds all that this is an emergency amendment, if not to Council, program will run as normal in 2012
Discussion of whether to send to council or not ensues
Decision is to send to Council, as Council Business, without recommendation
Get better numbers, how many may request, what is ultimate cost?
Pat Richardson, City Attorney clarifies form need to send to Council.
Councilmember Burbidge moves to send to Council, as Council Business, without recommendation. Second, motion
passed.
F. HABITAT FOR HUMANITY— MOU B. ENGE 87 Action
(MOU ON PAGES 88 -91) 55.05 12/06 Council Consent
Discussion /Changes: Bryant Enge, Administrative Services Director
History — received almost $13M, work with Habitat for Humanity via MOU
Purchase homes for rehab — sale will provide money to continue the program
Chair Park and Councilmember Dovey have questions regards resale
CITY OF
FEDRAC November 22 Federal Way 2011 Page 6 of 9
Bryant - HUD guideline require 15 years of affordability with deed restriction — cannot make profit for 15 years
consistant with H4H
Councilmember Dovey moves to pass, second and passed.
.I. OCTOBER MONTHLY FINANCIAL REPORT T. KRAus 106 Action
1:00:45
12/06 Council Consent
Discussion /Changes: Tho Kraus, Finance Director
Overall, pretty similar to previous months' reports
General & Street Fund Summary — page 48
• Revenues are up $592K or 6%
• Up - Property Tax, Sales Tax, High Crime, Liquor Profits, Gambling Tax, General Recreation
• Down — Court Revenue, Permit & Development Fees, Police (animal license, mainly)
• Expenditures are down $2.81VI or 8%
o Police down $1.1M due to position vacancy, various one -time grants, timing of dispatch payments, travel /training
Property Tax
• Year -to -date revenue is up $14K compared to year -to -date budget
• Year -to -date revenue is up $66K or 1% compared to year -to -date 2010 actual
• For mid - biennium, estimated 2011 revenues to exceed 2010 by $83K or 1%
Community Development Building Permits & Fees
■ Year -to -date revenues are down $88K or 9% compared to budget and down $145K or 14% compared to prior year.
■ Collected $870K or 70% of annual budget of $1,242K.
■ For mid - biennium, estimated 2011 revenues to come in $174K below 2010
Public Works Permits & Development Review Fees
• Year -to -date revenues are down $32K or 13% compared to budget and $43K or 17% compared to prior year.
• Collected $212K or 64% of annual budget of $333K.
■ For mid - biennium, estimated 2011 revenues to come in $3K below 2010
Sales Tax — page 50 and 51
- On a monthly basis:
• September 2011 sales tax distribution of $927K is flat compared to September 2011 and monthly budget estimate
- On a year -to -date basis:
• Including $85K amnesty payments, up $77K or 1% compared to 2010 and uR $85K or 1.1% compared to budget
• Excluding amnesty payment, down $8K or 0.1% compared to 2010 and budget and flat compared to budget
- Major variances by category compared to 2010:
• Retail Sales is down $49K or 1% due to a major retailer being $46K
• Services is down $67K or 4% due to City receiving money in 2010 as a result of state's audit
CITY OF
FEDRAC November 22, 2011 Federal Way Page 7 of 9
• Construction is up $142K or 21% from a major road construction project
• Information is down $57K or 13% due to City receiving money in 2010 as a result of state's audit
• Government is up $89K or 67% from amnesty payments
- Major variances by area compared to 2010:
• South 348 - up $8K or 1% due to decrease in garden/home improvement stores and increase in major retailer
• The Commons - up $5K or 1% from state audit of clothing store and going out of business sales
• South 312 to South 316 - down $50K or 7% due to decrease in sales at a major store and automotive parts store
• Pavilion - down $12K or 3% due to decrease in electronics and grocery store, and closure of video rental store
• The Crossings - up $2K or 1% due to increase in restaurants and another major store offset by decrease in cellular
store
October's preliminary sales tax distribution of $920K is up $31K compared to October 2010's distribution and October 2011 budget
estimate, all due to construction which added $42K. However, received notification from DOR that system error duplicated records
in the July 2011 distribution resulting in overpayments to local government. The overpayment to Federal Way was $78K which will
be deducted in November's distribution.
Preliminary YTD October sales tax:
o With Amnesty and adjusted for State's $78K error
■ Sales tax is mR $31K or 0.3% compared to ytd 2010
■ Sales tax is pR $38K or 0.4% compared to ytd budget
o WithOUT Amnesty and adjusted for State's $78K error
■ Sales tax is down $55K or 0.6% compared to ytd 2010
■ Sales tax is down $48K or 0.5% compared to ytd budget
Utility tax - page 51 and page 52
Year -to -date September is up $509K or 5% compared to budget and $184K or 2% compared to 2010 year -to -date.
Compared to ytd 2010:
- Electricity is up $167K or 5% due to increased consumption.
At year -end anticipating a $140K increase, resulting in $30K or 0.6% above 2010 actual .
- Gas is up $235K or 17% due to increase in consumption and some due to rate increase effective November 1, 2010.
At year -end anticipating $200K increase, resulting in $252K or 15% above 2010 actual.
- Solid Waste is up $20K or 1% due to rate increase of 16.9% effective March 1, 2010
At year -end anticipating $115K increase, resulting in $19K or 2% above 2010 actual.
- Cable is up $20K or 2%
At year -end anticipating $27K increase, resulting in no change from 2010.
- Phone is down $90K or 10% due to a decrease of $50K from a major payer. Also, $32K combined decrease from three other
payers.
At year -end anticipating $65K decrease, resulting in $186K or 16% below 2010 actual
- Cellular is down $156K or 7% due to:
o $109K decrease from a major payer excluding data service revenue in utility tax calculation
4 CITY OF
4& Federal Wa y FEDRAC November 22, 2011 Page 8 of 9
• $86K decrease from four other providers
• $39K increase from one tax payer
At year -end anticipating $60K decrease, resulting in $186K or 7% below 2010 actual
By year -end anticipating utility tax will be $12.8M, similar to 2010's collections of $12.9M.
REET - page 53
- Collected $1.36M through September, exceeded annual budget of $900K.
- Will meet and /or exceed 2011 YND Estimate of $1.4M
Police Overtime - page 55
■ Year -to -date City portion of overtime is $31K or 6% above year -to -date 2010
■ Year -to -date City portion of overtime is $4K or 1% below year -to -date budget
■ Red light photo overtime accounts for $31K of the total $517K City overtime
Jail Services - page 55
• Down $123K or 7% compared to year -to -date 2010
($66K savings due to decrease in usage; $106K savings due to decrease in medical; offset by rate increases of $49K
• Down $60K or 4% compared to year -to -date budget
• Expenditures reflect all invoices through July with the exception of King County
Animal Services - page 56
■ Made improvements to animal services reporting on the monthly financial report
Red Light Photo - page 57
• Year -to -date red light photo net revenues total $720K which is $349K or 33% below prior year.
• Red light photo revenues began decreasing in earlier this year -Total decrease during March thru June was $74K or 15%
■ July net revenues of $34K is down $148K or 81%
■ August net revenues of $27K is down $138K or 84%
■ September estimated net revenues of $52K is down $88K or 63%
There were a few issues that caused the decrease:
• Issue of violations exceeding expiration date from prior months which Police has resolved for August and September.
• Equipment malfunction with some school cameras during the months of June, July, August, and September.
• Expected decrease in the number of violations over time because of red light photo implementation. The City's goal is
improving safety; it is working and as a result revenues will be diminishing moving forward.
CITY OF
FEDRAC November 22, 2011 •A� Federal Way
Federal Way Community Center - page 60
Page 9 of 9
• Year -to -date revenues are exceeding year -to -date budget by $39K or 3%
• Year -to -date expenditures are below budget by $25K or 2%
• Through September, $271K or 46% of the annual utility tax funding for operations of $590K has been used.
Councilmember Dovey moves to pass, second and passed.
K. VOUCHERS T. KRAUS 123 Action
1:13:40 12/06 Council Consent
Discussion /Changes: Tho Kraus, Finance Director
Chair calls for questions, none.
Councilmember Dovey moves to pass, second and passed.
4. OTHER Chair Park announces he is retiring, enjoyed working with members and thanks the members of the
committee for their work.
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, December 27, 2011 - however, may be canceled.
Meeting adjourned 6:47 p.m.
Attest: ---
Steve Cain, Executive Assistant
COMMITTEE APPROVAL:
Mika Park Je ae�araaidge
DIM Duclos Roger Freeman
Committee Chair Committee Member
31� 1 r
Jack -Dave
Bob Celski
Committee Member