Council MIN 01-28-2012 Retreat/SpecialciTV oF
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MINUTES
FEDERAL WAY CITY COUNCIL
SPECIAL MEETING
ANNUAL RETREAT
January 28, 2012
9:00 a.m.
DUMAS BAY CENTRE
3200 SW Dash Point Road
Federal Way, WA
1. CALL MEETING TO ORDER
Deputy Mayor Ferrell called the meeting to order at 9:00 am.
Elected officials present: Mayor Skip Priest, Deputy Mayor Jim Ferrell, Councilmember Linda
Kochmar, Councilmember Susan Honda, Councilmember Jeanne Burbidge, Councilmember
Bob Celski, Councilmember Roger Freeman and Councilmember Dini Duclos.
City staff present: City Attorney Pat Richardson and City Clerk Carol McNeilly.
Deputy Mayor Ferrell reviewed the format for the retreat and stated this event was an
opportunity to get information from staff and have discussion on key issues to determine the
Council's vision and direction on policy items.
2. DISCUSSION ITEMS:
• SUSTAINABLE BUDGET
Finance Director Tho Kraus reviewed the 5 key steps of a sustainable budget: to maintain
high quality service levels, preserve jobs, fund ongoing expenditures with ongoing revenues,
control costs and maintain reserve accounts.
Key General Fund revenues include sales tax, property tax and utility tax.
Sales tax which provides 26% of General/Street Fund operating revenues:
2011 Actual =$10,858,000 or 1.4% above 2010 totals.
2012 Estimate =$10,586,000 or 2.5% decrease from 2011 totals.
2013 Estimate =$10,798,000 or 2% above 2012.
2014 Estimate =$11,014,000 or 2% above 2013.
Each 1% change is roughly $108,000.
City Council Minutes — January 28, 2012 Annual Retreat Page 1 of 9
Property Tax provides 24% of General/Street Fund operating revenues:
2011 Estimate =$9,697,000 or 0.9% above 2010.
2012 Estimate =$9,825,000 or 1.3% above 2011.
2013 Estimate =$9,953,000 or 1.3% above 2012.
2014 Estimate =$10,082,000 or 1.3% above 2013.
Each 1% change is roughly $100,000.
Utility Tax Approximately 65% of total utility tax provides 21 % of General/Street Fund
operating revenues:
2011 Estimate =$12,816,000 or 0.6% below 2010
2012 Estimate =$12,420,000 or 3.1 % below 2011
2013 Estimate =$12,361,000 or 0.5% below 2012
2014 Estimate =$12,322,000 or 0.3% below 2013
Each 1% change is roughly $125,000.
Ms. Kraus reviewed potential impacts of state budget cuts. Revenues at risk include:
• Liquor profits (estimated at $560K per year). Liquor excise tax (estimated at
$440K per year).
• Criminal justice funding (estimated at $90K per year plus an additional $180K
per year if the City qualifies for high-crime funding).
• Fuel tax (estimated at a total of $1.8M for street maintenance, arterial streets
overlay and transportation capital projects).
• Grants/contributions such as auto theft task force and Washington State
Traffic Commission (The City currently receives approximately $145K in auto
task force funding and received WSTC funding for many years primarily in
Police. Public Works recently received a$45K grant for school zone flashing
signals).
Potential Expenditure Impacts include:
• State's contribution towards LEOFF - It would cost the City $365K per year to
pick up the State's 20% contribution.
• Basic Law Enforcement Academy Cost Sharing - Would require a 50%
contribution from local municipalities in 2013 to cover all Washington State
Criminal Justice Training Commission direct and indirect training
expenditures.
• Reduced funding to other agencies indirectly impacting cities — the indirect
impact and dollar amount is unknown but is certain to have an impact to the
City.
The Council discussed strategies to address state budget impacts, including scheduling
meetings with legislators, and drafting letters to outline how state budget cutswill impact local
jurisdictions.
Ms. Kraus reviewed other potential budget impacts:
• Standards for indigent defense are expected to affect public defender
contracts, prosecution and court, pending Supreme Court decision.
• Fire Hydrants - based on a recent court decision the City is not required to pay
for back fire hydrant costs but may need to pay $100K per year beginning in
2012.
• Cost of Contracts - example provided was the King County Traffic
Maintenance contract that has increases for materials, overhead, etc. during
the 2011/12 adopted budget process as well as the recent mid-biennium
budget adjustment.
• Sales Tax on local telephones — HB 2128 seeks clarification on sales tax on
City Council Minutes — January 28, 2012 Annual Retreat Page 2 of 9
local phones including cellular.
Total potential impact is $1.37M (includes $1 M in refunds) in 2013, $3.9M
(includes $3M in refunds) in 2014 for a total of $5.3M in 2013/2014. Annual
impact in 2015 is projected at $933K.
Ms. Kraus presented information on the SCORE Jail. She noted 2011 was the start-up year
and the financial results are pending. 2012 will be the first full year of operations. The City has
budgeted $2,887,000 in the General Fund for total contract costs paid for by property tax and
utility tax. There are cost variables that SCORE has been asked to ascertain, including
contracted bed revenue falling short of goals; staffing levels, and other potential additional
costs such as the King County memo of understanding for the re-entry program, as well as
additional medical costs for high-risk inmates. SCORE's Finance Committee is working to
refine its financial model to account for variable costs, market conditions and the experience
of the first months of operation. Although the City only has a 17 percent voting share, we will
continue to articulate needed improvements to the financial model.
Police Chief Wilson provided information on the re-entry program and the City's efforts to
maintain the average daily population numbers the City is committed to. Ms. Kraus and Chief
Wilson reviewed the operating structure for the SCORE Jail.
Ms. Kraus stated the snow and ice removal ongoing budget is $32k, plus $100k reserves
established by Council policy. 2011 expenditures for snow and ice removal total $64k. The
January 2012 storm preliminary costs are as follows:
Sto�m Response:
Overtime Standby Labor (City Staffl
King County Traffic Labor
Equipment Repairs
Fuel
Material & Supplies
Food/Meals
$ 41,000
$ 4,157
$ 24,642
$ 6,011
$ 27,633
1 500
Subtotal $104,943
Debris Pickup & Disposal:
Curb Side Debris Pickup by Waste Management $ 40,000
Right-of-way Debris Disposal by City Staff 20 000
Subtotal $ 60,000
Estimated Grand Total
$164,943
Parks and Public Works Director Cary Roe provided additional information on storm related
expenses which may be reimbursable to the City if the recent storm is declared an emergency
at the federal level. He reviewed the strategy for road debris cleanup, which includes a fin+o-
week period for free curbside debris pickup by Waste Management. Councilmember Duclos
suggested that the Code-Red telephone system be used to notify residents of the proposed
cleanup and curbside pickup being offered.
Ms. Kraus recapped the 2013/14 budget development. Preliminary planning began in early
2011 and estimates were refined as part of the 2011/12 Mid-Biennium Budget Adjustment
process. The formal internal process will begin the second quarter of 2012; the goal is to
achieve a sustainable budget.
The Council recessed at 10:30 am and reconvened at 10:45 am.
City Council Minutes — January 28, 2012 Annual Retreat Page 3 of 9
• Public Safetv
Police Chief Wilson reviewed current staffing numbers for the Police department effective
February 1, 2012. Currently the department is at 120 officers; three officers have recently
been hired but have not yet started.
Chief Wilson reviewed the crime statics for 2011, which are down 5.3% from 2010 (homicide,
rape, robbery, assault, burglary, theft, auto-theft and arson). Some contributing factors to
crime reduction in the downtown area include the Safe City Program and the Special
Operations Unit, which includes the Police Bicycle Patrol.
Councilmember Freeman asked about education programs the City can offer to help reduce
the number of rapes/sexual assaults occurring in the City. It was suggested that the City
should work with the school district and other local agencies to address this type of crime
through community efforts. Councilmember Honda asked for background information on the
City's crime index ratings and the funding associated with a high-crime classification.
Police Commander Chris Norman provided some historical information on the Safe City
Program. The program unites businesses, residents, and the police. The purpose isto reduce
crime and attract businesses to locate in a safe community. Federal Way's program went into
effect May 2009. Currently, there are six cameras in the downtown core. Commander Norman
reviewed ways the police department is working with the Twin Lakes Neighborhood
Association to further develop the Safe City Program through on-line communications.
Councilmember Honda asked how much it costs for a home owner association to join the
Safe City website. Commander Norman stated that there is no cost to join.
The Council recessed at 11:45 am for lunch and reconvened at 12:30 pm.
• Economic Development ! Civic Center Development
Community and Economic Development Director Patrick Doherty provided a status report on
the Former AMC Theatre site. The deadline to execute agreement with Crystal Way LLC
expired on January 27, 2012; however, the Crystal Way project continues to move forward
towards financing. Latest discussions indicate financing should be released by February 15,
2012. Design work has continued and Dr. Ashkouri states it is over 90% complete. A
Washington State LLC has been formed. The team is in place and ready to move forward
toward the permitting stage upon release of financing.
Mayor Priest stated that although the deadline passed, he is encouraged Dr. Ashkouri
continues to work on the financing details and noted that the city continues to be interested in
the Crysal Way Project. He also noted that it is important for the City to develop options for
stimulating downtown development that could be used if Crystal Way does not come to
fruition. Deputy Mayor Ferrell stated before moving forward he would like to see more
transparency from a developer.
Mr. Doherty reviewed the design guidelines that address pedestrian connectivity and other
standards the City has in place for a development project. Other development concept options
include a public park over half of the site with enlivening retail or mixed-use development
adjacent connectivity to PACC site. These options could be used at the AMC site, should
Crystal Way not advance, and they are portable to other key re-development sites in the City
Center. Councilmember Burbidge stated she supports this approach.
City Council Minutes — January 28, 2012 Annual Retreat Page 4 of 9
Administrative Services Director Bryant Enge provided background information on the Civic
Center project. In February 2011, Council approved funding ($750k) for the Civic Center
project development. The City formed an advisory committee as well as a design committee to
provide input on project development. The City engaged LMN Architects to develop the initial
program and budget assessment which included three project options ranging in development
costs from $45M to $50M. Those options are well beyond the project cost the city could
afford. Mr. Enge reviewed specifications for the Lone Tree Cultural Arts Center in Colorado.
The center includes a 700 seat auditorium, lobby with attached conference center, multi-
purpose room and a catering kitchen. The cost to develop a center similar to that in Federal
Way would be approximately $29M.
Mayor Priest summarized information on joint venture projects, partnering with a hotel or
restaurant. The Council discussed conference center options as well on ongoing maintenance
and operation and working with the school district.
Councilmember Honda stated she would like to see notifications of ineetings on this project
sent to the Council so they can participate. She also asked that the Arts Commission be
informed on the progress of this project.
Mr. Doherty reviewed the City's "Think Smart. Move Fast. Think Federal Way" campaign
which includes a 30 second television commercial on three major channels, a dedicated
website and direct mailings. He noted some other City Center developments which include:
• Harbor Freight Tools opened this week in former Gen-X building.
• Ram restaurant is opening in former Marie Callender's building.
• Buffalo Wings opening at new pad in front of The Commons Mall.
• Major department store ready to sign at The Commons - permit application is under
review and business would open in early 2014.
• Restaurant intended for parking area east of Chase Bank.
• Home Goods is opening at former Linens and Things.
• Cratsenberg's interested in re-developing Starbucks and former Key Bank site.
• Banner Infrastructure and Use Policv
City Attomey Richardson stated the question before Council is whether or not to allow banners
in the right-of-way, currently they are not allowed in the FWRC. The process to amend the
FWRC is a land use process. The Planning Commission would conduct public hearings and
forward a recommendation to the Land Use and Transportation Committee for review. From
there it would go to full Council for action. The timeline for this process is estimated to take
three months.
Mr. Doherty reviewed information about street pole banners. There are eighty existing City
logo banners along S 320 and Pacific Highway South. Every other street pole can
accommodate event banners. Minor adjustments would be needed to change out hanging
basket rod for banner rod. City Banners cost approximately $250 each; special event banners
would cost approximately $100 to $200 each.
Parks and Publics Works Director Cary Roe presented information on over-the-street banners
and over the street structures as well as potential locations. Over the street banner systems
are installed with 2 wooden poles on either side of the road, a cable befinreen the poles, and
guy wires. Poles of this nature have a lifespan of approximately 15 — 20 years. One concem
with this type of structure is installation, as utilities are currently under ground along S. 320th.
City Council Minutes — January 28, 2012 Annual Retreat Page S of 9
He showed examples from SeaTac, Maple Valley and Newcastle. Over the street structures
or entryways, are decorative features that can also be used to display banners. Some
potential costs involved are:
Wood structure: Design by structural engineer, 3-wood poles with 2-guy wires is
estimated to cost $13,000.
• Steel structure: Design by structural engineer, 3-steel poles with no guy wires,
estimated at $48,000-$78,000.
• Banner costs: Banners (3 ft. x 30 ft.) Approximate cost $1,500 -$2,000. One
additional cost is banner installation/take down by King County, which is estimated at
$1,500.
Another option is to install decorative poles on either side of the road that would
accommodate banners but not have the archway. The Council discussed this option as well
as locations for banners. Deputy Mayor Ferrell stated thousands of vehicles pass through the
intersection of S. 320 and Hwy 99 daily; allowing banners is an opportunity to reach
numerous people.
The Council discussed modifying the sign code to allow banners. City Attomey Richardson
clarified that the amendment will be for City sponsored and civic events. Council consensus
was this is correct. Ms. Richardson will provide a timeline to the City Council by February 1,
2012 that outlines the process for amending the sign code. Mr. Roe will provide refined
options for banners in the downtown core.
MOTION: DEPUTY MAYOR FERRELL MOVED TO AUTHORIZE STAFF TO BEGIN THE
PROCESS TO ALLOW BANNERS FOR CITY SPONSORED, CIVIC AND COMMUNITY
EVENTS ON POLES AND ACROSS STREETS. COUNCILMEMBER DUCLOS SECOND.
VOTE:
Deputy Mayor Ferrell Yes
Councilmember Kochmar Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Freeman Yes
Councilmember Duclos Yes
Motion carried 7-0.
• Steel Lake Park 70 Anniversarv Celebration with Historical Societv —
Information, Introductory Discussion
Councilmember Burbidge provided information on this item. The Federal Way Historical
Society has come forward with some ideas for the City to celebrate the 70"' anniversary of
Steel Lake Park. She stated this event could possibly be incorporated an existing event such
as Summer Sounds at the Beach or the Kiwanis Salmon Bake. Since the park is so well used
in the summer, this event would likely occur in September or October.
Councilmember Honda suggested including a dedication of the arlwork that has moved to the
center of the park. Parks and Public Works Director Roe stated this item was on the Parks
and Recreation Commission's annual work plan.
City Council Minutes — January 28, 2012 Annual Retreat Page 6 of 9
Planning for this event could be a joint effort between the Arts Commission, Planning
Commission and the Historical Society. Diana Noble Gulliford, member of the Federal Way
Historical Society shared her ideas for the event and noted they would like to see the name of
the park changed to reflect the correct spelling of the individual the park was named after -
Steele (with an "e" at the end).
Mayor Priest recommended that everyone forward their ideas on this event to Chris Carrel at
City Hall.
• Council Rules of Procedure
City Attorney Pat Richardson reviewed the following proposed amendments to the Council
Rules of Procedure. (Proposed additions are underlined and proposed deletions are noted via
strike through.)
Citizen Comment:
Rule 2.2(4) and Rule 5.1: There is an inconsistency in the Council Rules of Procedure Rules
2.2(4) and 5.1 regarding citizen comment. Rule 2.2(4) states five minutes shall be given on
behalf of a group, rule 5.1 is silent regarding the time allotted for groups to speak. The
proposed amendment would add a definition for groups as "more than five individuals in
attendance" or upon written and would allow a representative to speak for _five minutes
provided the Citv Clerk has been notified in advance.
Councilmember Freeman would like extend the citizen comment period to five minutes for
groups and individuals. Councilmember's Burbidge and Kochmar feel most people are able to
deliver their message to the Council within the allotted three minutes. Councilmember Honda
would like to see a courtesy extended to speakers so they are not cut off mid-sentence.
Councilmember Duclos stated that the request for more time was only coming from one or two
people.
The Council discussed amending Rule 2.2.4 and Rule 5.1 and the following language was
proposed and approved: "A qroup of more than 5 in attendance or written proof mav sqeak
for five (5) minutes provided the Citv Clerk has been notified in advance (preferablv bv 3:00
p.m. but no later than the beqinninq of the meetinq)."
Proposed New Rule: A proposed addition to the Council Rules of Procedure includes
addressing written comments. The following language was proposed_ "Written commentswill
be accepted bv the Citv Clerk For individuals attendinq the meetina but declininq to speak
the Citv Clerk will read the written comments into the record. For individuals not attendina the
public meetinq and submittinq written comments the Citv Clerk will distribute copies of the
comments to the Council at the dias and will maintain a copv for the official record."
The Council discussed and did not approve the new rule addressing written comments.
Citizen Advisory Committees:
Rule 19.14:
Newly appointed members "will attend an orientation no later than thirtv (30) davs after the
appointment The orientation will include a qresentation bv the Citv Attornev or desiqnee, to
address applicable laws, includinq the Federal Wav Ethics Code, and" receive a briefing by
the commission, committee or task force chairperson, the "Council Committee Chair" and/or
City staff. "The briefinq will include" �� the duties and responsibilities of the members
City Council Minutes — January 28, 2012 Annual Retreat Page 7 of 9
of the advisory body. T"�° "�'ll 'r�nl rle .+ re 'o ��,f +he !`'4v �f Cerler.+l \A/.+v �+h�,.� r.,� Each
newly-appointed member will receive an information packet which will include a-t�e�#+sa�e
', a commission, committee or task force membership list,
responsible City staff member, statement of purpose for the advisory body which may include
an ordinance, resolution, bylaws, or annual work program and a copy of the City of Federal
Way Ethics Code.
The Council discussed the amendment to Rule 19.14 and Council consensus was to approve
the amendment.
Rule 19.23:
"At the first meetinQ of each calendar vear or upon appointment" Aall members of advisory
bodies "shall provide a written list of all memberships on boards and anv emplovment to the
Chair and to Staff. The list shall include the members and immediate familv (spouse/nartner
and dependent children) It is the responsibilitv of the member to update the list when
chanqes occur. The purpose of the list is" to avoid any instance
of conflict of interest. No individual should use an official position �a"forfinancial" gain "and/or"
personal advantage.
City Attorney Pat Richardson reviewed the proposed amendment to Rule 19.23. The Council
discussed and approved this amendment.
Rule 19.26:
The City Council transmits referrals for information or action through the Mayor "and the
applicable Council Committee �Chair" to the advisory groups. These advisory groups transmit
findings, reports, etc., to the City Council through the Mayor "and the applicable Council
Committee Chair
City Attorney Pat Richardson reviewed the proposed amendment to Rule 19.26. The Council
discussed and approved this amendment.
Council Committees:
Rule 20.9: The following language was proposed to reflect the City Council's practice:
"Council shall ratifv the Deputv Mavor's committee assiqnments at the Council Meetin4."
The Council discussed the amendment and directed staff to amend this rule to extend the
length of Council Committee Terms to 2-years (rather than 1-year), and add the following
language: The Deputy Mayor has the discretion to appoint or remove Committee members at
any time, "subiect to ratification bv the Council."
City Attorney Richardson reviewed the role of the Deputy Mayor as outlined in the Council
Rules of Procedure.
The Council directed staff to include a removal process for the Deputy Mayor. The
following language was proposed and approved by the Council: Rule 18.2: "The Council
mav rescind the vote for Deputv Mavor bv a simple maioritv at anv time. If a vacancv
occurs, the Council shall elect a Deputv Mavor to fill the unexpired term."
3. COUNCIL QUESTIONS/ OTHER TOPICS
Deputy Mayor Ferrell asked if Councilmembers had any other topics they wished to discuss.
Councilmember Celski stated that he has been working with the Reach-Out organization.
They are conducting a fundraiser to raise money for the Women's shelter at Pattison's Rink
City Council Minutes — January 28, 2012 Annual Retreat Page 8 of 9
on April 16, 2012.
Councilmember Freeman inquired what has been done with the initiative/referendum issue.
City Attorney Richardson stated the item was reviewed by FEDRAC, but was not forwarded to
Council by the Committee. He also inquired about term limits. Ms. Richardson stated the
Council discussed term limits but it was not referred to a Council Committee for review.
4. PUBLIC COM�VIENT
Deputy Mayor Ferrell called for public comment.
Bettie Simpson-Opstad reported on a boutique hotel she visited. She thinks a boutique
hotel would be a nice addition to Federal Way's lodging options.
Joann Piquette, representative from The Federal Way Coalition of the PerForming Arts,
spoke in support of the development of a Civic/Performing Arts Center in Federal Way.
Diana Noble Gulliford, representative of the Federal Way Historical Society, stated she
would like to see a visitor's center developed in Federal Way.
5. ADJOURNMENT
Deputy Mayor Ferrell adjourned the meeting at 4:47 pm.
Attest:
1
Carol McNeilly, CMC, City Cler
Approved by Council: February 7, 2012
City Council Minutes — January 28, 2012 Annual Retreat Page 9 of 9