Council MIN 11-06-2012 RegularCITY OF
� Federal Way
MINUTES
FEDERAL WAY CITY COUNCIL
REGULAR MEETING
Council Chambers - City Hall
November 6, 2012
7:00 p.m.
www. cityoffederalway. com
1. CALt MEETING TO ORDER
Mayor Priest called the meeting #o order at 7:00 pm.
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.
2. PLEDGE OF ALLEGIANCE
Dick'Mayer led the Pledge of Allegiance.
3. PRESENTATIONS
a. Proclamation: Native American Heritaqe Month
Deputy Mayor Ferrell stated the history and the culture of the Puget Sound
Region is profoundly influenced by Native American Tribes. Recognizing the role
Native Americans have played in the region and in Federal Way is important in
understanding our history. Deputy Mayor Ferrell read the proclamation into the
record and presented it to Rachel Gronsky, Vice Regent of the Lakota Chapter of
#he Daughters of the American Revolution. Ms. Gronsky thanked the Council for
the proclamatian.
b. Certificates of Appointment — Lodqinq Tax Advisorv Committee
At their October 16, 2012 meeting the Council re-appointed Rose Ehl and
Joanne Piquette to serve on the Lodging Tax Advisory Committee.
Councilmember Burbidge read the Certificates of Appointment into the record
and presented them to the individuals.
c. Mayor's Emerqinq Issues
Mayor Priest announced the Federal Way Historical Society is hosting a
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Veterans Day celebration on November 12, 2012 from noon to 1:30 pm.
Sound Transit will be hosting two scoping meetings on the Federal Way Transit
Extension. The first will be held November 8, 2012 at Highline Community
College starting at 4:00 pm. The second witl be on November 13, 2012 at
Truman High SchooL Sound Transit will also provide a presentation at the
November 20, 2012 City Council meeting.
4. CITIZEN COMMENT
Donald Barovic — commented on an article in Scientific Magazine regarding global
warming. He is working with city staff to have 12 acres of his property rezoned as a
tree farm. He reported that he saw 12 Coho Salmon in Hylebos Creek today.
5. CONSENT AGENDA
Items listed below have been previously reviewed in their entirety by a Council Committee of three
members and brought before full Council forapproval. All items are enacted by one motion. lndividual
ifems may be removed by a Councilmember for separate discussion and subsequent motion.
a. Minutes: October 16, 2012 Special and Regular Meeting, October 24, 2012
Special Meeting and October 25, 2012 Special Meeting
b. Vouchers — September
c. Monthly Financial Report — September
d. 2012 Tourism Enhancement Grant (TEG) Recommendations
e. interlocal Agreement with Federal Way School District for Storming the Sound
with Salmon Grant
f. Nextel Site Lease Termination
Motion: Deputy Mayor Ferrell moved approval of Consent Agenda items (a)
#hrough (t�. Councilmember freeman second.
Vote:
Deputy Mayor Ferrell Yes
Councilmember Kochmar Yes
Councilmember Honda Yes
Councilmembe� Burbidge Yes
Councilmember Celski Yes
Councilmember Freeman Yes
Councilmember Duclos Yes
Motion carried 7-0.
6. PUBLIC HEARING
a. 2013-2014 Biennial Budqet and Property Tax Levy
Mayor Priest announced this was the first of two public hearings scheduled for
the proposed 2013-2014 Biennial Budget and Property Tax Rate. The second
public hearing is scheduled for November 20, 2012. He reviewed the hearing
procedures and declared the hearing open at 7:13 pm.
City Council Minutes — November 6, 2012 Regular Meeting Page 2 of 8
Finance Director Kraus provided a presentation on the proposed 2013-2014
Budget and Property Tax Levy. Revenues and other sources including
beginning fund balance for all funds total $135,253,000 in 2013 and
$128,180,000 in 2014. Proposed ongoing revenues for all funds in 2013 is
$52,589,000 and $52,480,000 in 2014. Expenditures and other uses for all funds
total $87,720,000 in 2013 and $86,199,000 in 2014. Ending fund balance for all
funds total $47,533,000 in 2013 and $41,981,000 in 2014. Utility Tax, Sales Tax
and Property Tax accounts for a large part of all funds ongoing revenues. Public
Safety accounts for 53% ongoing expenditures for all funds.
Key revenue projections for General and Street Fund include: Sales Tax
decrease of $272,000 or 2.5% in 2012 compared to 2011, followed by a 1%
Sa{es Tax increase in each year of 2013 and 2014 and 2% increase in 2015 and
2016; property tax is projected to increase 1% per year as authorized by state
statute; liquor profits revenue is included while Liquor Excise Tax and additional
liquor revenues are excluded; U#ility Tax alfocations are based on Council
designation; and continue redirection of $600,000 per year overlay utility tax.
Key expenditures assumptions for the General and Street Fund include:
maintaining staffing levels, excluding salary and benefit projections for three
frozen positions; no cost of living adjustments but allow for performance-based
step increases, pension increases in accordance with State projections and
healthcare premiums increases of 15°/a in 2013 and 13% in 2014. Ongoing and
one-time expenditures total $43.3M in 2013. Public Safety, including Jail,
Prosec�tion, Public Defender and Court accounts for 66% of total expenditures.
Personnel costs account for 63% of total expenditures.
SCORE Jail is comprised of finro components — Maintenance/Operations (M&O)
and Debt Service. M&O costs are based on prior year's average daily population
(ADP). The proposed budget for 2013 $3.77M and $3.75M in 2014. Debt service
is fixed at 17% or approximately $917K per year.
The General Fund operating gap for 2013 is $1,298,437 and $2,171,683 in 2014.
Strategies to address the operating gaps are to continue the re-direction of
overlay funding, move ongoing funded items to one-time funding and temporarily
suspend the collection of excess reserves. With the implementation of these
strategies the gap is reduced to positive $742,000 in 2013 and $2,000 in 2014.
The estimated ending fund balance in 2013 is $6,276,447 and $2,500,170 in
2014.
The long-term projection reflects an operating gap of $2.94M or 7.1 % of
operating expenditures and a deficit ending fund balance of $530,000. The
deficit ending fund balance increases to $3,070,000 in 2016.
Utility Tax Revenue projections for 2013 and 2014 are $12,388,OOO.The budget
includes a$300,000 transfer per year to the Downtown Redevelopment Capital
Improvement Fund for potential future LIFT matching.
Real estate excise tax revenue projections are $1,400,000 in 2013 and 2014.
Traffic Safety Fund is funded by the Red Light Photo Program and is projected to
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maintain revenues of $830,000. The Traffic Safety Fund includes a one-time
transfer of $45,000 to Police for additional costs related to replacement
equipment.
Parks Capital Budget - Includes the following funding sources: Real Estate
Excise Tax, Fuel Tax, King County Expansion Levy and re-allocation of existing
funds. The Capital Expense Budget for 2013 is projected at $686,000 and
$1,373,000 in 2014.
Arterial Streets Overlay Capital Project — Includes 1% Utility Tax, Fuel Tax, and
the reallocation of existing funds. $600,000 per year of Utility Tax is redirected to
the General Fund. The Capital Expense Budget for both 2013/2014 is
$1,536,000. It was noted that Asphalt Overlay continues to be a high priority for
the city and that the redirection of $600,000 per year is made whole via the
$1.1M anticipated Puget Sound Regionaf Council Grant. The grant funded
overlay project is accounted for in the South 320th Street-11�' Place South to I-5
Limited Access Preservation project in the Transportation Capital Project Fund.
Transportation Capital Project — Transportation is funded by 1% Utility Tax, Fuel
Tax, reallocation of existing funds and anticipated grants. The Capital Budget
Expense for 2013 is $5,661,000 and $7,087,000 in 2014.
Surface Water Management Capital Project is funded solely by user fees. The
Capital Expense Budget for SurFace Water Management is $2,664,000 in 2013
and $246,000 in 2014.
Property Tax growth is limited to the lesser of 1% or implicit price deflator. The
City's levy rate limit is $1.60. The 2013 preliminary assessed valuation is down
8% from 2012 resulting in an increase in levy rate. The preliminary proposed
ievy rate is $1.43 per $1,000 Assessed Valuation {AV).
The City's per capita tax revenue is ranked 30th of 38 King County cities.
Mayor Priest noted that the following issues had emerged from the previous
budget meetings; SCORE Jail costs, Municipal Court security, caller response
time at the Federal Way Community Center, Police Staffing levels and Guild
negotiations. Staff will provide proposals for the first four issues prior to or at the
November 20, 2012 Council meeting. Council will be discussing Guild
negotiations this evening under agenda item 7.b.
Mayor Priest called for public comment. No public comment was provided.
Motion: Councilmember Duclos moved to continue the public hearing on
the 2013-2014 Biennial Budget and Property Tax Levy Rate to the
November 20, 2012 City Council meeting. Deputy Mayor ferrell second.
Vote:
Deputy Mayor Ferrell Yes
Councilmember Kochmar Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
City Council Minutes — November 6, 2012 Regular Meeting Page 4 of 8
Councilmember Freeman Yes
Councilmember Duclos Yes
Motion carried 7-0.
7. COUNCIL BUSINESS
a. Establish August and/or November as Election Dates for Citizen Initiatives
Mayor Priest stated this item concerns establishing a date certain for elections
relating to citizen initiatives.
City Attorney Pat Richardson reviewed the State Law requirements relating to
citizen initiative petitions. State Law establishes the format of petitions as well as
the percentage of signatures required to place the matter on the ballot: It
requires the City Clerk to transmit petitions to the County within three working
days of receiving them. The County then determines if the petition contains the
sufficient number of signatures and verifies that signatures are not older than six-
months. Once the County notifies the City Clerk of their determination of the
petition, the City Clerk then notifies the Council at the earliest public meeting that
the signatures were sufficient. Per State Law, an election will be held no sooner
than 30-days and no later than 120-days.
The 2013 election dates are in February (special election), April (special
election), August (primary election) and November (general election). Ms.
Richardson provided the dates Council would need to take action by to place an
item on each ballot. Participation in the February and April special elections can
cost the city up to hundreds of thousands of dollars. The August and November
election dates tend to have higher voter turnout and the cost incurred is much
iess than participating in a special election.
Staff is recommending establishing November as the election date for citizen
initiatives. If the Council wishes to move forward with this, State Law provides
they must place the issue on the ballot for a vote. To place this issue on the
November 2013 ballot, the Council would need to take action by July 2013.
Councilmember Duclos stated she supports this and would like citizen initiative
petitions to be placed on ballots in November as there is higher voter
participation and marginal cost incurred by the city.
Councilmember Freeman inquired if citizen initiatives are limited to changing the
type of government. Ms. Richardson stated the change of government is not
subject to a citizen initiative, it is a separate statute. Citizen initiatives are unique
to the City.
Motion: Councilmember Duclos moved approval of option 1—to directthe
City Attorney to prepare a ballot title and resolution to place the issue
before the voters at the November 2013 election, limiting the elections for
citizen initiatives to November. Deputy Mayor Ferrell second.
Deputy Mayor Ferrell spoke in support of the motion and inquired if term-limits for
Councilmembers fall under citizen initiatives. Ms. Richardson stated yes, term-
limits would fall under citizen initiatives.
Councilmember Freeman stated he will be voting against the motion, as he
would like citizens to have the opportunity place items in both the August and
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November elections.
Vote:
Deputy Mayor ferrell Yes
Councilmember Kochmar Yes
Councilmernber Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Freeman No
Councilmember Duclos Yes
Motion carried 6-1.
b. Citv's Latest Proposal to the Police Guild
Mayor Priest noted that the City and the Police Guild have been negotiating a
Collective Bargaining Agreement for over a year.
City Attorney Pat Richardson stated the current agreement with the Police Guild
expired December 31, 2011. Staff is seeking Council approval of a tentative
agreement prior to the Guild ratifying it because notice to the health insurance
carrier is required by November 9, 2012. The Guild will notify the City on
November 8, 2012 if officers ratify the tentative agreement.
Elements of the City's latest proposal to the Guild are a switch in healthcare
providers effective January 1, 2013, and anticipated savings from lower
hea{thcare premiums going towards Officers' wages with a 2% increase effective
January 1, 2012 and a.5% increase effective November 16, 2012. The City will
pay 100% of the accrued sick leave when death occurs in the line of duty, and
pay 25% accrued sick leave upon retirement to LEOFF (Law Enforcement
retirement system). Officers will be eligible to accrue 204 vacation hours annually
for twenty years of service and the City will waive the $15 monthly payment for
dental insurance.
Motion: Deputy Mayor Ferrell moved to approve the tentative agreement
with the Federal Way Police Guild, whicfi is the Gity's latest proposal, and
authorize the Mayor to execute the necessary documents provided the
Guild ratifies the agreement and timely notifies the City. 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.
Cdty Council Minutes — November 6, 2012 Regular Meeting Page 6 of 8
8. ORDINANCES
First Reading:
a. CB #611 Citizen Initiative Petitions — Modifv Federal Wav Revised Code
An ordinance of the City of Federal Way, Washington, Relating to Filing Citizen
Initiative Petitions; amending Federal Way Revised Code 1.30.060
Mayor Priest stated the proposed ordinance concerning the timeframe to
collect signatures for citizen initiate petitions was addressed by the
Finance, Economic Development and Regional Affairs Council
Committee (FEDRAC).
City Attorney Pat Richardson reported the proposed language change to
Federal Way Revised Code 1.30.060 would delete the 90-day timeframe
for initiative petitions to be submitted to the city.
City Clerk McNeilfy read the ordinance title into the record.
Motion: Councilmember Duclos moved to approve and forward the
ordinance to the November 20, 2013 City Council meeting for
second reading and enactment. Deputy Mayor Ferrell 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.
9. COUNCIL REPORTS
Councilmember Kochmar had no report.
Councilmember Honda reported the next PRHSPC meeting is November 13, 2012 at
5:30 pm.
Deputy Mayor Ferrell reported next week is Suburban Cities Associations annual
meeting.
Councilmember Burbidge stated the next LTAC meeting is November 28, 2012 at
8:00 am.
Councilmember Celski had no report.
Councilmember Freeman thanked Habitat for Humanity for the breakfast event they
hosted.
City Council Minutes — November 6, 2012 Regular Meeting Page 7 of 8
Councilmember Duclos had no report.
10. MAYOR'S REPORT
Mayor Priest had no report.
11. EXECUTIVE SESSION
The Council did no adjourn to Executive Session.
•_ � . . .
12. ADJOURNMENT
Mayor Priest adjourned the meeting at 7:47 pm.
Attest:
Carol McNeilly, CMC City Cler c
Approved by Council on: November 20, 2012
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