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FEDRAC MINS 01-22-2013CITY OF Federal Way City Council FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE [FEDRACI Tuesday, January 22 5:30 p.m. 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMITTEE BUSINESS 2013 Meeting Summary (Preliminary until approved — PRESENTED 2/26/2013) Federal Way City Hall Hylebos Room E. 2013 CDBG COMMUNITY ECONOMIC REVITALIZATION FUNDING LBENNETT 93 Action Topic Title/Description Presenter Page* or Discussion A. APPROVAL OF MINUTES/SUMMARY: NOVEMBER 27, 2012 S. CAIN 2 Action Committee approval B. NON-BINDING STATEMENT OF INTEREST REGARDING THE AMENDED AND RESTATED R. VAN 14 ACTION SOLID WASTE INTERLOCAL AGREEMENT — DEANNA DAWSON ORSOW Committee H. — --------- ---- ------ ----- - SCORE UPDATE T.KRAus 109 Recommendation To Mayor C. ZAyo GROUP, LLC— FRANCHISE ORDINANCE M. SALLOUM 58 ORDINANCE 1st Reading *Additional materials may also be distributed for review /action during the meeting 02/05 Council D. INTERLOCAL AGREEMENT BETWEEN CITY AND FWSD FOR USE OF SCHOOL DISTRICT T.KRAUS 88 CONSENT FUELING STATIONS 02/05 Council E. 2013 CDBG COMMUNITY ECONOMIC REVITALIZATION FUNDING LBENNETT 93 INFORMATION RECOMMENDATIONS discussion only F. ACCEPTANCE OF GRANTS FOR PACC P. DOHERTY 99 Consent 02/05 Council G. WA STATE COOPERATIVE PURCHASING AGREEMENT T.KRAUS 101 Consent 02/05 Council H. — --------- ---- ------ ----- - SCORE UPDATE T.KRAus 109 information discussion only I. VOUCHERS T. KRAUS 110 Consent 02/05 Council *Additional materials may also be distributed for review /action during the meeting 4. OTHER: 5. FUTURE AGENDA ITEMS: 6. NEXT MEETING: Tuesday, February 19, 2013 Committee Members: City Staff: Dini Duclos, Chair Tho Kraus, Finance Director 253 835-2520 Roger Freeman Steve Cain, Executive Assistant 253 835 -2402 Bob Celski CITY OF FEDRAC January 22, 2013 Federal Way Page 2 of 6 1. CALL TO ORDER By: Councilmember Duclos - Chair Time: 5:30 p.m. Committee Members In attendance: DIM Duclos _x_ Bob Celski x_ (Roger Freeman)" 0 - excused "Roger elected to State Legislature - Resign Council /Commfftee - seat empty Other Council Members and /or elected officials in attendance: Skip Priest (Mayor), Jeanne Burbidge, Susan Honda, Diana Noble- Gulliford Staff in attendance (x): x Tho Kraus Finance Director 253 835 -2520 x Steve Cain Executive Assistant 253 835 -2402 x Pat Richardson City Attorney 253 835 -2570 Brian Wilson Chief of Police 253 835 -6711 Thomas Fichtner IT Manager 253 835 -2547 x Jay Bennett Community Services Manager 253 835 -2650 Paul Haas Harry Hoffman Manuela Ginnett x Patrick Doherty Community & Economic Development Director 253 835 -2612 x Cary Roe Director -PW, Parks, Recreation and Culture 253 835 -2710 Jean Stanley Human Resources Manager 253 835 -2532 x Rob Van Orsow Solid Waste & Recycling Coordinator 253 835 2770 Deanna Dawson Executive Director of Sound Cities Association x Marwan Salloum P.E., Deputy Public Works Director 253 835 -2720 2. PUBLIC COMMENT There were no public comments 3. COMMITTEE BUSINESS Tho Kraus requests that Item D. be deleted from the agenda to allow additional research time. Councilmember Celski moves to strike Item D from the agenda, second and passed. A. APPROVAL OF MINUTES /SUMMARY: NOVEMBER 27, 2012 S. Cain 2 Action 1:50 Committee approval Discussion /Changes: Steve Cain Executive Assistant 253 835 -Z4UZ Councilmember Celski moves acceptance of the November 27th minutes as presented, second and passed. CITY OF FEDRAC January 22, 2013 Federal Way Page 3 of 6 B. NON- BINDING STATEMENT OF INTEREST REGARDING THE AMENDED AND R. VAN 14 ACTION RESTATED SOLID WASTE INTERLOCAL AGREEMENT — DEANNA DAWSON ORSOW 2 :24 Committee Recommendation To Mayor Discussion /Changes: Rob Van Orsow Solid Waste & Recycling Coordinator 253 835 2770 Rob and Chair make initial comments on the negotiations for the new agreement and Rob introduces Deanna Dawson, Executive Director of Sound Cities Association. The Memorandum and Agreement can be found on Pages 15 to 57 of the Packet. Deanna comments that it took 2.5 years to negotiate — environmental issues and possible liability being areas of greatest concern and the ultimate resolution is vague. The negotiating team met several hours at a time, three times per week for several weeks to hammer out the agreement with the county attorney. Deanna thinks it is a good agreement that address all of the cities' concerns or, at least, as best possible. It includes loose language that may be appropriate now but maybe not in future. Issues addressed — insurance; the amount shared by cities and also covering the cities; mitigation; future transportation rates to cover cost. Bonding and bonding rates are also at issue. A number of cities have signed on to the non - binding letter. ❖ A considerable discussion and comments involving the Chair, Mayor, Committee and Council Members present, and staff followed: Chair and Deanna discuss the signing, that signing on is not the final binding signature but an indication whether the cities are comfortable enough to continue consideration and the debt implications. Mayor weighs in saying that he has no problem signing but believes another meeting needed; to determine who makes the decisions, answers to insurance rates and the amounts to which the various communities will be obligated and so forth. Must decide what entity will make the decisions. ❖ Chair agrees, many questions left to be answered, much discussion needed, recommends that Mayor sign to indicate we are interested but need the continued discussions. Deanna adds that the city councils need to consider financial ramifications; rates, reserve funds and liabilities. ❖ Questions arise concerning existing landfills, closed landfills and liabilities. Cary Roe weighs in on the responsibilities. Mayor suggests that we have concrete decisions by March and not wait until the April deadline, to allow Council time to raise questions and get answers and recommendations. Deanna reminds committee that we already have an Interlocal agreement to 2028. Motion: Councilmember Celski recommends that the Mayor sign the Non - binding Statement of Interest, second and passed. C. ZAYO GROUP, LLC — FRANCHISE ORDINANCE M. SALLOUM 58 ORDINANCE 23:02 1st Reading 02/05 Council Discussion /Changes: Marwan Salloum P.E., Deputy Public Works Director 253 835 -2720 Marwan highlights the agreement (See Packet pages 59 -87) for use of city rights -of -way for a fiber optics network and financial arrangements involved. ❖ Committee questions if we currently have fiber optics — Marwan says we do, at the hospital (about 10 years ago) Zayco also responds that the system is for high use commercial customers and gives them access to wireless towers to allow them to connect their various sites, not for individuals. Does not compete with their existing communications providers. CITY OF FEDRAC January 22, 2013 �-- Federal Way Page 4 of 6 ❖ Questions on overlay —if penetrate right -of -way, is overlay just a patch - Marwan says the repair normally overlays a block, not just a patch. Motion: Councilmember Celski moves to forward Option 1 to the February 51h Council Agenda for first reading, second and passed. T. KRAUS 88 CONSENT 02/05 COUNCIL Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 This item tabled and not considered at this meeting. E. 2013 CDBG COMMUNITY ECONOMIC REVITALIZATION FUNDING J. BENNETT 93 INFORMATION RECOMMENDATIONS 29:35 discussion only — -- - - - - -- - -- - - - - - - - .._..--- - - - - -- -- - - -- — Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 This discussion is in response to a request from Paul Hass for outreach to the Committee and support for a bill in the Legislature to clarify that bond use is permissible. Paul provided a handout (inserted next in the summary). Basic premise is the use of general obligation bonds to provide affordable housing for workers, principally hospitality workforce, in the vicinity of their employment. They want to bond against future lodging taxes for use now. Of interest to Federal Way because it parallels our work in Westway. Also, anticipates the eventuality of light rail access to Federal Way. ❖ Committee questions if it will affect the lodging tax, answer is no. ❖ The half mile proximity to transportation is discussed; include transit centers? The .5 mile limit is a very short distance. ❖ Politics enters the conversation regarding Legislative support and status of the bill (no bill number available). ❖ Discussion of logistics of program and administration, considering small amount of funding. No request for resolution at this time, just asking that Council recommend program to legislators. Jay to keep the committee apprised of status. Motion: No Committee action — information and discussion only Housing Our Workforce Creating the next generation of housing for... ...workers in hotels, motels and restaurant, childcare and homecare workers, office and retail workers, hospital workers, and a vibrant, healthy community. HOUSING DEVELOPMENT consortium Housing Our Workforce Planning Group c/o Housing Development Consortium 1402 Third Avenue, Suite 1230 Seattle, WA 98101 www.housingconsortium.org Phone: (206) 682 -9541 Problem Statement Please consider the following housing - related factors that workers, families and other King County residents currently face: • Burden for Renters: Currently in King County, 45% of renters are paying over 30% of their monthly income on housing (U.S. Census Bureau's American Community Survey). Also, renters often have to pay far more for transportation to and from work. • Affordability Gap: According to King County's "I work at a hotel in Downtown Seattle. I cannot afford housing most recent assessment of housing affordability, near my work. It is simply too the gap between what the average family can expensive." afford and median home price is over $80,000. - MeseretAlemu • Increasing Distance between Housing and Work: According to a newly released report by Puget Sound Sage, "The numbers of jobs accessible by public transportation decreases the farther workers live from the urban core." • Accessing Funding Now while Land is still Affordable: Though the Washington State Legislature has dedicated 37.5% of the Lodging Tax for affordable housing, these funds do not become available until 2021 at which time the cost of land near transit will be prohibitive. In response to these factors, we are working to _pain legislative authority in the 2093 session to bond against these dedicated revenues, thereby creating a reliable fund source for new housing in neighborhoods close to transit, jobs, schools and other amenities. A Vision for Housing Our Workforce Housing Our Workforce utilizes a sustainable source of funding for the next generation of affordable housing in safe, thriving neighborhoods close to transit, jobs, schools Uand other vital amenities. Specifically, Housing Our Workforce addresses urgent and emerging housfng- needs- arnong - -eur -law- wage -war -ken, tne{adft- the - -hotel- -ancI restaurant industries, childcare and homecare workers, young teachers, hospital workers, laborers and others who currently struggle to find affordable housing within King County and close to jobs. In particular, housing created through this effort would be affordable to families earning between $26,400 and $70,000 (for a family of four). Examples of what this dedicated housing resource could potentially accomplish in the months and years to come include the following: Transit Station Workforce Housing is an opportunity to create housing that is built at, at, or adjacent to, transit stations, thereby providing residents with direct access to transportation to jobs, schools and other locations. And locating this housing at transit stations could, in most cases, serve to reduce the cost of land. "if I have to work late at night I • Hotel /Motel and Restaurant Employee can't get a bus. Living close to Housing created in partnership with Unite work would make yeasierto spend time with my family." HERE and others could create attractive, - Quan Nguyen affordable and environmentally friendly homes so that workers serving our tourist trade can afford to live in good quality, well - located housing. • Neighborhood -based housing in communities throughout King County could provide hundreds of units of greatly needed affordable housing for families with children and others, located close to schools, services, grocery stores, parks and open space, and all within walking distance of transit and /or light rail. Housing created through this effort would be located close to transit, thereby decreasing reliance on cars. Plus, Housing Our Workforce will create thousands of family -wage jobs in the construction trades. And this newly-created housing would be owned and - operated by non - profit organizations or public housing authorities, thereby ensuring that financial equity derived from this investment of public resources remains an enduring public asset. Funding Mechanism for Housing Our Workforce The projected funding mechanism for Housing Our Workforce is revenue generated from King County's lodging tax, which is available starting in 2021. Bonding now against these dedicated revenues would generate as much as $5 million annually prior to 2021, to address current and emerging housing priorities for working families and individuals in King County. In addition to creating a long -term solution to our region's housing needs, Housing Our Workforce makes good financial sense in that the long -term capital assets generated through this newly created housing, combined with on -going rent payments, result in well over $1 billion in lasting investments in our community. Next Steps Forward for Housing Our Workforce Now and throughout the 2013 legislative session, we will be working to gain specific authority to bond against Lodging Tax revenues starting later this year. And though this is considered a technical solution for an already approved bill (SB 5834) bonding authority still requires additional legislative approval. Towards this end, Senator Steve Litzow (R 41 st Legislative District) and Representative Joe Fitzgibbon (D 34th Legislative District) have signed on as lead sponsors for this important legislation. This bi- partisan support demonstrates the broad appeal that this legislation holds in addressing the tremendous need for additional affordable housing. "I'd love to take the bus to work and not have to depend on a car" Once approved by the Washington State Legislature, the King County Council would have the authority to issue councilmanic bonds, thereby potentially creating a stable revenue source for workforce housing as early as the fall of 2013. King County's Department of Community and Human Services would subsequently oversee and convene the granting of these revenues through the County's annual funding process for housing projects. Partners in Housing Our Workforce Enterprise Community Partners • Housing Development Consortium • Unite HERE Local 8 • Seattle Human Services Coalition • Church Council of Greater Seattle • Futurewise • King County Labor Council* Puget Sound Sage • and many others. About Housing Development Consortium The Housing Development Consortium (HDC) is the professional association and advocate for the King County affordable housing community and its many supporters. In addition_ to the Housing Our Workforce Project, HDC's priorities include Incentive /Inclusionary zoning, Transit- Oriented Development, allowing cities to exempt impact fees for affordable housing and other strategies to encourage equitable housing development throughout King County and Washington State. ACITY OF :�AL Federal Way FEDRAC January 22, 2013 Page 5 of 6 -- - - - - -- --- - - - - -- F. ACCEPTANCE OF GRANTS FOR PACC P. DOHERTY 99 Consent 49:50 02/05 Council --- _..._ ------ ,,._ ... . ..... ...... .. .. - - - - - -- -- - - - - - -- - - - - - - -- -- - - ---- - - - - -- ---- -- - -- - Discussion /Changes: Patrick Doherty Community & Economic Development Director 253 835 -2612 Patrick Doherty is sick, Tho Kraus (Finance Director) to handle the Item. Tho discusses the grants as described in the Agenda Bill Background. ❖ Questions and discussion of use to date, no end date so need to figure out how and when Council wants to use the funds. Discussion ensues about the planning and preparations for the project and future funding. Motion: Councilmember Celski moved to forward Option 1 to the February 51h Council, second and passed. G. WA STATE COOPERATIVE PURCHASING AGREEMENT T. KRAUS 101 Consent 54:53 02/05 Council - - - -- -- - -- - -- - - -- -------- -- - - -- - -- - Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho discusses the background and amendment. ❖ Questions on city uses of the service —we use for vehicles, equipment, services; state has done the bid process and contracts. ❖ Are any FW businesses part of the State Contracting agreements? Tho is unaware but can research. Are our businesses taking advantage of contracts, if available? Unknown. Motion: Councllmember Celski moved to forward the proposed amendment to the 2/5 consent agenda for approval, second and passed. -- -------------------------- H. SCORE UPDATE T. KRAUS 109 Information 57:25 discussion only ---- ---- -- ------------ - - - - - - -- - — Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho did not have current information available when packet was prepared. She does have information now and prepared spreadsheets and charts (inserted next in the summary). ❖ Committee notes we are the largest user. ❖ Questions and discussion about our obligations - Tho discussed the longevity of the contract, the costs and obligations and contracts with other entities and their usage. ❖ Our marketing efforts to fill other pods are outlined. Various options, marketing committee and brochure; suggestions made by FEDREC members. ❖ Mayor is active in the marketing and happy with progress. ❖ Members pleased to see the $600K+ results from the marketing effortsj. Motion: No committee action - information and discussion only. , en r-i ri r4 i 00 ON oo C41 ti en eq 00 t— ml- 81- 8 111 lq 00 00 N cli C4 00 loo c C4 e4 eq en MIM en CD 0 tn km 00 00 r4 m loo t— 00 en en t en E r4 en ell Cq en cc en en Co All 150 140 130 120 110 100 90 80 70 60 ADP Comparison - Federal Way 110 100 1 100 loo 90 91 91 90 83 81 80 73 70 Apr May Jun Jul Aug Sep Oct Nov Dec ■ Prior Year ■ Current Year ADP Comparison - Auburn 16 14 12 10 8 6 4 14 12 10 8 6 4 2 Apr May Jun Jul Aug Sep Oct Nov Dec ■ Prior Year ■ Current Year ADP Comparison - Burien Apr May Jun Jul Aug Sep Oct Nov Dec ■ Prior Year ■ Current Year ADP Comparison - Des Moines Apr May Jun Jul Aug Sep Oct Nov Dec ■ Prior Year ■ Current Year 120 110 100 90 80 70 30 25 20 15 10 5 35 30 25 20 15 10 5 ADP Comparison - Renton Apr May Jun Jul Aug Sep Oct Nov Dec ■ Prior Year ■ Current Year ADP Comparison - SeaTac Apr May Jun Jul Aug Sep Oct Nov Dec ■Prior Year ■Current Year ADP Comparison - Tukwila Apr May Jun Jul Aug Sep Oct Nov Dec ■ Prior Year ■ Current Year i A ency Daily I Effective Contract ; Bed Rate Date ' Expires ; Contract Type Billable ADP YTD Dec I YTD Billable ADP City of Algona $ 135.00 1/1/12 12/31/14 Walk -In 1.12 $55,485 City of Bellevue ` $ 135.00 ' 6/27/12 6/30/15 Walk -In 0.25 $12,150 City of Black Diamond $ 135.00 ' 4/27/11 12/31/16 I Walk -In 0.01 $270 City of Clyde Hill $ 135.00 ` 11 /1 /11 ; 10/31/16 i Walk -In 0.00 ! $0 City of Covington ; $ 90.00 4/1/12 12/31/21 4 Guaranteed 4.79 $171,720 Town of Hunts Point $ 135.00 j 10/1/12 12/31/15 Walk -In 0.00 $0 City of Issaquah $ 135.00 1/1/12 12/31/16 Walk -In 0.00 $0 City of Kirkland $ 135.00 6/29/11 12/31/21 Walk -In 0.00 $135 City of Mercer Island $ 135.00 i 5/25/11 12/31/22 Walk -In 0.08 $4,050 City of Normandy Park $ 135.00 9/28/11 9/28/21 Walk -In 0.37 $18,090 City of Pacific $ 90.00 10/1/12 12/31/21 2 Guaranteed 1.96 $78,885 Port of Seattle $ 90.00 ; 9/1/12 i 8/14/15 1 Guaranteed 0.01 $180 Private Parties j $ 135.00 j Walk -In 0.06 $2,835 City of Snoqualmie $ 135.00 1 2/22/12 12/31/17 Walk -In 0.01 i $540 US Marshals Walk -In 0.01 ' $405 US Military $ 135.00 I Walk -In 0.03 $1,350 Valley Narcotics Enforcement Team $ 135.00 i 6/27/12 I 12/31/15 1 Walk -In 0.01 i $405 WAD t of Corrections $ 80.00 ' 8/12/12 5/31/13 ' Walk -In 8.93 $261,360 Total 17.62.. - $607 860 CITY OF FEDRAC January 22, 2013 Federal Way Page 6 of 6 - - - -- --- - - - - -- - -- - - -- - - - -- -- - - - - -- I. VOUCHERS T. KRAUS 110 Consent 1:11:20 02/05 Council -- _.. .,.... _.. _ „_ ..... - ---- ---- -._... - . - - - - -- -- - Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho mentions that she had provided email answers to Councilmember Celski's questions (which he appreciated). ❖ Questions on the interpreter services ❖ 'Examination of King County service invoices — discussion of the value from King County services. Tho explains that a number of departments use KC services and have different requirements but invoices are examined. City attorney says that we can recuperate some costs from insurance reimbursements for traffic accident caused damage. ❖ Observed number of PSE charges — PSE charges for lighting per pole. Motion: Councilmember Celski moves the approval of the vouchers and forward to 2/5 Council, second and passed. 4. OTHER: None 5. FUTURE AGENDA ITEMS: INTERLOCAL AGREEMENT BETWEEN CITY AND FWSD FOR USE OF SCHOOL DISTRICT FUELING STATIONS 6. NEXT MEETING: Tuesday -FEBRUARY 26, 2013 Meeting adjourned at 6:46 p.m. Attest. -r Steve Cain, Executive Assistant COMMITTEE APPROVAL: A AZ Dini Duclos Committee Chair Susan Honda Committee Member