Loading...
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 1% CITY OF 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 CITY OF 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 CITY OF 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