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FEDRAC MINS 02-26-2013CITY OF Federal Way City Council FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE [FEDRACi Tuesday, February 26 5:30 p.m. 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMITTEE BUSINESS 2013 Meeting Summary (Preliminary until approved — Presented 3/26/13) Federal Way City Hall Hylebos Room Committee Members: City Staff: Din[ Duclos, Chair Tho Kraus, Finance Director 253 835 -2520 Susan Honda Steve Cain, Executive Assistant 253 835 -2402 Bob Celski Action Topic Title /Description Presenter Page* or Discussion A. APPROVAL OF MINUTES /SUMMARY: JANUARY 22, 2013 S. CAIN 3 Action Committee approval B. SOLID WASTE AND RECYCLING 2013-2015 GRANT APPROVALS ROB VAN 16 Action ORSOW 03/05 Council Consent C. INTERLOCAL AGREEMENT BETWEEN CITY AND FWSD FOR USE OF SCHOOL T. KRAUS 23 Action DISTRICT FUELING STATIONS 03/05 Council Consent D. REPORT FROM CASCADIA VELOCITY (FORMERLY SSRBI) P. DOHERTY 28 Discussion Information only E. SECOND AMENDMENT TO THE THUNDERING OAK ENTERPRISES AGREEMENT S. IKERD 32 Action 03/05 Council Consent F. AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 33 Action CITY ENERGY SYSTEMS 03/05 Council Consent G. AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 38 Action M.A.D. CONSTRUCTION, LLC 03/05 Council Consent H. AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 43 Action TRUFORCE, LLC 03/05 Council Consent I. AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 48 Action C + S GENERAL CONTRACTING, LLC 03/05 Council Consent J. AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 53 Action NORTHWEST ROOF SERVICE, INC. 03/05 Council Consent K. AMENDMENTS TO CDBG COMMERCIAL EXTERIOR IMPROVEMENT PROGRAM J. BENNETT 58 Action POLICIES /PROCEDURES 03/05 Council Consent L. AGREEMENT WITH SKCSRA SOCCER REFEREES J. HUTTON 79 Action 03/05 Council Consent M. AGREEMENT WITH WSSUA SOFTBALL UMPIRES J. HUTTON 80 Action 03/05 Council Consent N. NOTIFYING AND ENGAGING CITIZENS P. RICHARDSON 81 Discussion Information only O. FOLLOW -UP TO WA STATE COOPERATIVE PURCHASING T. KRAUS 8S Discussion Information only Committee Members: City Staff: Din[ Duclos, Chair Tho Kraus, Finance Director 253 835 -2520 Susan Honda Steve Cain, Executive Assistant 253 835 -2402 Bob Celski CITY OF FEDRAC February 26, 2013 A�k Federal Way Page 2 of 10 P. INVESTMENT POLICY AMENDMENTS T. KRAUS 86 Action 03/05 Council Consent Q. DECEMBER 2012 MONTHLY FINANCIAL REPORT T. KRAUS 152 Action 03/05 Council Consent R. 2013 CARRY FORWARD BUDGET ADJUSTMENT T. KRAUS 170 Ordinance First Reading 03/05 Council S. VOUCHERS T. KRAUS 185 Action 03/05 Council Consent "Additional materials may also be distributed for review /action during the meeting 4. OTHER: 5. FUTURE AGENDA ITEMS: 6. NEXT MEETING: Tuesday, February 26, 2013 FEDRAC February 26, 2013 1. CALL TO ORDER CITY OF .A Federal Way By: Councilmember Duclos - Chair Time: 5:31 00:20 Committee Members in attendance: Dini Duclos Susan Honda _c_ Bob Celski -x- Other Council Members and /or elected officials in attendance: Jeanne Burbidge, Diana Noble- Gulliford Staff in attendance (x): • Tho Kraus • Steve Cain Pat Richardson • Peter Beckwith Brian Wilson Thomas Fichtner • Jay Bennett Skip Priest • Patrick Doherty Graham Evans Patricia Mullen • Cary Roe Jean Stanley • Rob Van Orsow Marwan Salloum • Steve Ikerd • John Hutton • Brook Lindquist 2. PUBLIC COMMENT No public comments Page 3 of 10 Finance Director 253 835 -2520 Executive Assistant 253 835 -2402 City Attorney 253 835 -2570 Assistant City Attorney 253 835 -2572 Chief of Police 253 835 -6711 IT Manager 253 835 -2547 Community Services Manager 253 835 -2650 Mayor 253 835 -2410 Community & Economic Development Director 253 835 -2612 Cascadia Velocity CEO CEO — Federal Way Chamber 253 838 -2605 Director -PW, Parks, Recreation and Culture 253 835 -2710 Human Resources Manager 253 835 -2532 Solid Waste & Recycling Coordinator 253 835 2770 P.E., Deputy Public Works Director 253 835 -2720 Parks & Facilities Manager 253 835 -6911 Recreation Supervisor 253 835 -6928 Executive Assistant 253 835 -2401 3. COMMITTEE BUSINESS Because of number of items on the agenda, the chair asks that the Committee and presenters move along quickly. A. APPROVAL OF MINUTES /SUMMARY: JANUARY 22, 2013 S. CAIN 3 Action 0:00:41 Committee approval Discussion /Changes: Steve Cain, Executive Assistant 253 835 -2402 Motion: Councilmember Celski moved to accept the Minutes for the January 22nd meeting, as presented, second and passed. CITY OF FEDRAC February 26, 2013 .�/ Federal Way Page 4 of 10 B. I SOLID WASTE AND RECYCLING 2013 -2015 GRANT APPROVALS ROB VAN 16 Action ORSOW 0:01:05 03/05 Council Consent Discussion /Changes: Rob Van Orsow Solid Waste & Recycling Coordinator 253 835 27 Rob discussed the Grants and Resolution (Page 19). Committee: •: Councilmember Honda raises questions regarding staff time and funding. Rob responds that the city budget covers staff and overhead costs for implementing and reporting. Grants fund .5 FTE recycling manager. Motion: Councilmember Celski moved to Forward Option 1 to the March 5, 2013 City Council Consent Agenda for approval - second and passed. C. I INTERLOCAL AGREEMENT BETWEEN CITY AND FWSD FOR USE OF SCHOOL T. KRAUS 23 Action DISTRICT FUELING STATIONS 0:03:20 03/05 Council Consent Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho discusses the agreement. Committee: Councilmember Celski asks if our first priority is fueling at FWSD to save money, Tho responds "Yes." Questions Ernie's reaction, Tho says they are aware and we will still use them for fueling. A short discussion of fuel tax revenues ensues. Motion: Councilmember Celski moved to forward approval of the draft interlocal agreement between the City and the Federal Way School District for use of the school district fueling stations, including access to and use of the pumps, fuel and access cards, located at the school district facility to the March 5, 2013 City Council meeting - second and passed D. I REPORT FROM CASCADIA VELOCITY (FORMERLY SSRBI) P. DOHERTY 28 Discussion 0:06:20 Information only Discussion /Changes: Patrick Doherty Community & Economic Development Director 253 835 -2612 Patrick summarizes the information in the report in the FEDRAC packet and asks Graham Evans and Patti Mullen to join him in the discussion of the program. Patti introduces Graham as the Cascadia Velocity CEO. Patti then recounts the position of the program when she joined the Chamber and its rebranding from SSRBI to Cascadia Velocity and its current organization. 0 Chair joins the discussion, wondering if we are getting a return on our investment. Patti assures her that the city is and it is an incredible investment, with 18 companies engaged (10 had been projected). With the advent of Graham, more companies are making inquiries. Graham comments on value of the Economic Council and a strong Cascadia Velocity board. Discusses the connections and networks contributing to the effort. The entrepreneurs need not only capitol but guidance. They have developed products but need to launch their business and develop the needed infrastructure. They would like to use the connections of the council to help promote outreach to resources. CITY OF FEDRAC February 26, 2013 4:: Federal Way Page 5 of 10 ��► Councilmember Celski thanks Graham for his leadership and asks if the shift in the focus from startup to green technology has been a good move. Graham feels it is the way to go, to help them develop and coach them through to the connections needed to grow. Councilmember Honda wonders if Graham works with DeVry University. Graham states that he is no longer with them but has connections there. He also says that they have students ready to move to full time employment. Councilmember mentions that they are local and should be given consideration. ❖ Chair questions Patti regarding the contractual goals we expect them to reach for the $30K we provide. How well are they doing? Patty refers to the contract and enumerates goals and current status, i.e. research, benchmarking activities (done on quarterly basis and can provide quarterly report, will leave one on the way out), provide written summaries, host a conference (not done), financial reports, develop outreach to community, schools and colleges, educate public about technology policy and innovation issues. She is working to locate the developed businesses in FW, needs to work more with Patrick on that. Chair asks for more reports to the committee. Patti will do so. Motion: No committee action required — Discussion /information only. E. I SECOND AMENDMENT TO THE THUNDERING OAK ENTERPRISES AGREEMENT S. IKERD 32 Action 0:25:00 03/05 Council Consent Discussion /Changes: Steve Ikerd Parks & Facilities Manager 253 835 -6911 Steve discusses amending the agreement. Committee: r� Members raise some questions: Is this service only or are they on stand -by? We call them out when needed, such as a problem tree on city property or storm damage, and they are paid at a set hourly rate. Motion: Councilmember Celski moved to forward the authorization of a second amendment to the Thundering Oak Enterprises Agreement by extending their term through December 31, 2014 and increase the compensation by $54,750.00, and authorize the Mayor to move said authorization to the full Council March 5, 2013 consent agenda for approval - second, passed. F. I AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 33 Action CITY ENERGY SYSTEMS 0:27:47 03/05 Council Consent Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 Chair requests that Jay describe the program and contracts and Committee will consider the contracts (Items F —J) all at once following the discussion. Jay provides a short handout (included with summary) for updates, discusses the program and changes in compensation. Committee: �s Councilmember Honda, — How do homeowners know about the program? Brook Lindquist responds, public notices, outreach, advertised to HOA's, churches, service groups and referrals. Councilmember inquires about other cities, Jay mentions similar programs, with some variations in other cities, such as Renton. 0 Councilmember Celski — How are contractors how selected — We advertise, vet and approve. Questions the program. The program is a loan that is forgiven in 5 years, if homeowner remains in home; otherwise payback is prorated based on years in the home. Emergency Housing Repair Program Update Applications Received: 34 Applications Denied: 4 Client Withdrawals: 4 Applications Needing to be Screened: 4 In- Process Projects: 12 Completed Projects: 10 Types: Emergency Projects (subset of total #): Types: Amount Expended as of 2/25/13:. $78,970.92 Plumbing HVAC ADA Ramp Electrical Electrical /General General /Roofing Plumbing Electrical CITY OF FEDRAC February 26, 2013 .� Federal Way Page 6 of 10 m� Councilmember Honda — Are there matching funds? Matching funds are not needed — program pays 100% up to the set maximum amount. Ar Councilmember Noble - Gulliford - What are the criteria? Various reasons, one is emergency repairs. Are there reasons not to grant? Income or value of home can disqualify. :• Councilmember Celski — If not all funds are used is there a carry over? Yes, funds can be carried over. G. I AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 38 Action M.A.D. CONSTRUCTION, LLC 03/05 Council Consent Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 H. I AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT J. BENNETT 43 Action TRUFORCE, LLC 03/05 Council Consent Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 I. 1 AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT J. BENNETT 48 Action C + S GENERAL CONTRACTING, LLC 03/05 Council Consent Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 J. 1 AUTHORIZATION OF HOUSING REPAIR PROGRAM CONTRACT - J. BENNETT 53 Action NORTHWEST ROOF SERVICE, INC. 03/05 Council Consent Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 Motion: Councilmember Celski moves to forward the proposed Agreements in Items F -J to the March 5, 2013 consent agenda for approval - second and passed. K. I AMENDMENTS TO CDBG COMMERCIAL EXTERIOR IMPROVEMENT PROGRAM J. BENNETT 58 Action POLICIES /PROCEDURES 0:37:25 03/05 Council Consent Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650 Jay discusses the program. There are currently no applications. Committee: 0 Chair — Questions if we target any area; responds that it is city wide. �• Councilmember Celski notes that increase in loan amounts results in fewer possible loans. Jay explains that up to $35K loan requires one job creation. However, every loan need not be for the maximum of $35K. Chair inquires about the effect of the loans, Jay explains that we cannot supplant local dollars. The business must match the federal dollars 1:1 and the investment must be on the building exterior only. Can include landlord improvements. Councilmember Noble - Gulliford engages Jay regarding low- middle income hired as part of the program. Discussion continues regarding differences between a for - profit business /franchise relationship and the federal program's dealing with these businesses. CITY OF FEDRAC February 26, 2013 .�- Federal Way Page 7 of 10 Motion: Councilmember Honda moved to forward the revised CDBG Commercial Exterior Improvement Program Policies & Procedures to the March 5, 2013 consent agenda for approval - second and passed. _ -- -- L. I AGREEMENT WITH SKCSRA SOCCER REFEREES J. HUTTON 79 Action 0:44:15 03/05 Council Consent Discussion /Changes: John Hutton Recreation Supervisor 253 835 -6928 John discusses the Agreement with the Referees. Motion: Councilmember Celski moved to forward the authorization of a 3 year contract for soccer referee services in the amount of $120,000.00 and authorize the Mayor to execute said agreement to the full Council March 5, 2013 consent agenda for approval - second and passed. M. I AGREEMENT WITH WSSUA SOFTBALL UMPIRES J. HUTTON 80 Action 0:45:15 03/05 Council Consent Discussion /Changes: John Hutton Recreation Supervisor 253 835 -6928 John presents the Agreement. Councilmember Honda questions whether city hires umpires? John explains that the league is responsible, not the city. Motion: Councilmember Honda moved to forward the authorization of a 3 year contract for softball umpire services in the amount of $105,000.00 to WSSUA and authorize the Mayor to execute said agreement to the full Council March 5, 2013 consent agenda for approval, second and passed. N. I NOTIFYING AND ENGAGING CITIZENS Discussion /Changes: Peter Beckwith Assistant City Attorney (Note: Pat Richardson did not attend due to illness) P. RICHARDSON 0:46:15 253 835 -2572 81 Discussion Information only Peter discusses our current methods and requirements for newspaper notices. There is a need to find the most effective way to notify the public. He produced a copy of the newspaper to illustrate a typical, fine print notice, sample included in packet. Staff is currently looking for the best way to meet the legal requirements and disseminate the notices. Expect a report and resolution in the fall. No matter what, any method needs to meet requirements set by state law. Committee: •✓ Chair is concerned about local paper moving to weekly only, inquires about code requirements; discussion ensues regarding costs, deadlines, delays, regulations and vehicle(s) used. Councilmember Burbidge mentions previous discussions and potential cost increases. Councilmember Honda wonders how to determine best method. Peter says to poll the sources, several Members favor multiple venues. Peter calls attention to the variety of notices for the various departments. •:� Discussion and suggestions follow, i.e., inserts in PSE, Lakehaven and other billings, use of the city website, email, Channel 21, include low income via library, schools, hospitals, social media and announcements at council CITY OF FEDRAC February 26, 2013 AA.L Federal Way Page 8 of 10 are mentioned as the Members weigh in with ideas. However, we certainly are not reaching 100% with Mirror ads only, although 100% really isn't possible. Peter recaps discussion and suggests policy direction from full Council will be necessary. Legal can prepare some language and come back to Committee for further discussion. Time frame originally mentioned as fall but would like to have preliminary recommendations by June, with more complete picture by Fall; we are currently in the very early stages of the discussion. Motion: No Committee action — discussion /information only 0. 1 FOLLOW -UP TO WA STATE COOPERATIVE PURCHASING T. KRAUS 85 Discussion 0:58:55 Information only Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho's research on Councilmember Celski's January question on local business participation in state program. 0 Councilmember Celski thanks Tho for the work. Mentions that we have no control and wishes we could have greater influence. Surprised that Weyerhaeuser is not on the list. Motion: No Committee action — discussion /information only P. I INVESTMENT POLICY AMENDMENTS T. KRAUS 86 Action 1:01:20 03/05 Council Consent Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho discusses the background and summary of the major changes in policy (Page 87) to bring up to best practices. Basically it is to update from City Manager to Mayor and bring policy up to code and national standards. Motion: Councilmember Celski moved to forward the proposed resolution and Investment Policy to the March 5, 2013 Council meeting for approval - second and passed. Q. I DECEMBER 2012 MONTHLY FINANCIAL REPORT Discussion /Changes: Tho Kraus Finance Director T. KRAUS 253 835 -2520 152 Action 1:04:50 03/05 Council Consent Tho notes this is the final 2012 financial report. Tho provided a handout of the highlights, which she then discusses. She noted the revenues from various sources and the many ups and downs. Committee: �• Chair comments on animal services and cost comparison with King County. On Dumas Bay Centre, Chair complements the staff for excellent job on cost control and their use of leeway allowed by the Council. Tho explains the change of $314K in ending balance on revised page 169 (included with this summary). y Councilmember Celski comments on the growth of the traffic safety fund and possible uses; Tho explained the funds are already allocated and would require direction of the Council to make changes. DECEMBER 2012 MONTHLY FINANCIAL REPORT - HIGHLIGHTS General & Street Fund Summar —Page o Revenues are above budget by $537K or 1.3% with major variances in: Above Budget: $153K property tax; $145K criminal justice sales tax; $187K Intergovernmental (liquor profits); $466K building permits & fees; $26K net miscellaneous/passport agency fees /other; $23K police services; $23K franchise fees Below Budget: $52K sales tax; $86K court revenue; $54K gambling tax; $18K parks & general recreation fees; $277K prop 1 utility tax transfer o Expenditures are below budget $3.8M or 8.6% (before carry forward budget requests) Property Tax • Above YID budget by $153K or 1.6% • Above YTD 2011 by $305K or 3.2% Sales Tax — Pages 155 & 156 Total 2012 revenue of $10.53M • Below budget by $52K or 0.5% • Below total 2011 by $324K or 3.0% - Estimated 2012 annual sales tax of $10.58M to come in $272K or 2.5% below 2011 actual ■ 2012 Compared to 2011 by Category: • Retail up $180K or 3.3% • Up $234K — building material/garden, furniture/home furnishings, health/personal care store, motor vehicle /parts dealer, general merchandise stores, clothing and accessories stores, and nonstore retailers. • Down $54K — electronics /appliances, food/beverage stores, miscellaneous store retailers, and sporting goods/hobby/books. • Services down $71K or 3.0% • Up $57K — food services /drinking places, and personal/laundry services, waste management remediation, company management, and educational services. • Down $128K — professional/scientific /tech, administrative /support services, hospitals, nursing/residential care, ambulatory health care services, accommodation, and amusement/gambling/recreation. o Construction down $345K or 28.7% • Up $41K — specialty trade contractors • Down $386K— heavy & civil construction and construction of buildings o Information up $7K or 1.3% • Up $18K — Publishing and broadcasting • Down $11 K —telecommunications and internet programs • Manufacturing up $17K or 11.8% (wood product manufacturing) • Government down $137K or 53.2% ($86K is due to no amnesty payments and $30K is due to 2011 audit) Utility Tax - Pages 156 & 157 • 2012 revenues total $13.1M • Above 2011 by $15K or 0.1% • Above budget by $663K or 5.3% HOWEVER, increase is due to audit of major taxpayer. Adjusted variances (excluding audit proceeds) are: ■ Below 2011 by $405K or 3.1% ■ Above budget by $244K or 2.0 % 2012 compared to 2011 as, shown on monthly financial report and adjusted to exclude audit proceeds: • Electricity up $234K or 4.8% (exclude audit proceeds then electricity down $153K or 3.1 %) • Gas down $185K or 9.5% (exclude audit proceeds then gas down $218K or 11.1 %) • Solid Waste up $42K or 5.3% • Cable up $39K or 2.7% • Phone down $26K or 2.5% • Cellular down $109K or 4.0% • Storm Drainage up $21 K or 8.0% Projected 2012 revenues to come in $648K or 5.0% below 2011, with projected changes from 2011 as follows: • Electricity down $183K or 3.7% • Gas down $95K or 4.9% • Solid Waste up $29K or 3.7% • Cable down $7K or 0.5% • Phone down $229K or 21.5% • Cellular down $170K or 6.3% • Storm Drainage up $8K or 3.0% REET -Page 15 8 ■ 2012 revenues of $1.5M is: • Below 2011 by $53K or 3.4% • Above budget by $107K or 7.7% ■ 2012 annual budget estimate of $1.4M is consistent with 2009, 2010 & 2011 revenues $1.4M to $1.5M. o 2012 year -end estimate revised to $1.1M based on trends earlier in the year ■ Significant Transactions: 2012: Centerpoint Management Inc (sold for $29M / $14K tax) Lowe's Home Improvement (sold for $5M / $25K tax) The View at Redondo AF.artments (sold for $5.1M / $25K tax) Office Building So 333` (sold for $1.4M / $7K tax) Garden Depot (sold for $1.5M / $7K tax) Weyerhaeuser IT Center (sold for $17M / $84K tax) Vacant Retail store (sold for $2M / $1OK tax) House (sold for $1.5M / $7K tax) Vacant Commercial Property (sold for $1.1M / $5K tax) Quality Inn & Suites (sold for $2.9M / $15K tax) Office building on 6fl' Ave S (sold for $3.6M / $18K tax) Top Foods & Drug (sold for $5.1M / $25K tax) Weyerhaeuser East Campus (sold for $19.8M / $98K tax) Complete Collision Center (sold for $1.1M / $5K tax) Blue Ridge Apartments (sold for $1.9M / $9K tax) Campus Square Shopping Center (sold for $12.5M / $62K tax) Forest Cove Apartments (sold for $293M / $146K tax) 2011: Palisades Apartment (sold for $67.5M / $334K tax) Woodmark Retirement (sold for $9.2M / $45K tax) Vacant Business Bdg (sold for $4.4M / $22K tax) Vacant Lot (sold for $2.OM / $ l OK tax) The Lodge Apartments (sold for $52M / $256K tax) House (sold for $2.6M / $13K tax) St. Croix Apartments (sold for $23.1M / $114K tax) Bally Total Fitness (sold for $3.5M / $17K tax) 2 Community & Economic Development Permits/Fee Activity — Page 159 ■ 2012 revenues of $1.57M is: • Exceeds 2012 annual revenue budget of $1.11M by $466K or 42% • Exceeds 2012 annual year -end estimate of $1.22M by $352K or 28% (maintained conservative estimates) • Exceeds 2011 annual revenue total of $1.10M by $470K or 43% o Major permits in 2012 include KC Library System, Federal Way Public Schools, Buffalo Wild Wings,U- Haul, Davita, Northlake Rim, Wynstone Animal Services — Pat e161 & 162 ■ 2012 budget is comprised of $153K revenue and $332K expenditure for a net cost of $179K o Budgeted net cost is lower than the $400K - $500K estimated cost had City stayed w/King Co. ■ 2012 license revenues total $98K or 65% of annual license budget (and exceeds year -end estimate of $50K) • Exceeds 2011 license revenue by $3K • Below budget by $55K or 36% • Exceeds 2012 year -end estimate of $50K by $48K or 96% Note: Maintained conservative revenue estimates due to unpredictability of multi year licenses. ■ 2012 expenditures total $256K • Above 2011 by $23K or 12% • Below budget by $76K or 23% ■ 2012 net cost is $152K • Above 2011 by $22K or 17% • Below budget by $32K or 17% Red Light Photo — Page _162 ■ 2012 net revenues total $2.26M • Above 2011 by $1.31M or 138% • Above budget by $1.43M or 172% • Exceeds year -end estimate of $1.8M by $457K or 25% Court Revenue — Page 163 ■ 2012 revenues total $1.45M • Below 2011 revenue of $1.50M by $51K or 3.4% • Below 2012 budget of $1.50M by $60K or 4.0% • Above 2012 year -end estimate of $1.44M by $9K or 4.0% ■ 2012 versus 2011 highlights: • Traffic & non - parking down $107K or 12% • Criminal conviction fees up $26K or 49% • DUI & misdemeanors up $37K or 57% Federal Way Community Center ■ 2012 Revenues total $1.74M • Above budget by $179K or 11.5% • Above 2011 by $110K or 6.8% o Shift from daily drop in to membership passes ■ Net increase of $155K compared to budget ■ Net increase of $83K compared to 2011 3 • Fitness classes /fitness training (Silver Sneakers enrollment, specialty fitness training classes, personal training programs) ■ Increase of $24K compared to budget ■ On target with YTD 2011 • Youth Athletic Programs (Kidz Love Soccer, Basketball Life) ■ Increase of $9K compared to YTD budget ■ Decrease of $1 K compared to YTD 2011 • Aquatic Programs (Lessons) ■ Increase of $20K compared to budget ■ Increase of $5K compared to 2011 • Rentals (gym and meeting rentals) ■ Decrease of $16K compared to budget ■ Increase of $16K compared to 2011 • YTD 2012 Expenditures total $2.11M • Below budget by $34K or 1.6% • Below 2011 by $18K or 0.9% • Increase of $28K in personnel costs due to instructor and program costs for various programs offset by increased revenue • Increase of $16K in household supplies and repair /maintenance for fitness equipment, boiler and other service maintenance (refrigerator, elevator, compressor, corrosion inhibitor) • Decrease of $62K in utilities due to energy savings • Utility Tax Contribution • Reserves =Annual Budget $87K/ YTD Actual $281K (add'I $194K due to less operating subsidy needed) • Operations = Annual Budget $619K / YTD Actual $425K or 69% of budget ■ Ending Fund Balance (Reserved for capital maintenance & replacement) o Budget $987K / Actual $1.2M Dumas Bay Centre — Page 166 ■ 2012 revenues of $588K • On target with 2012 budget • Above 2011 by $25K or 4.5% ■ 2012 expenditures of $621K • Below budget by $68K or 9.8% • Below 2011 by $29K or 4.4% ■ 2012 operating loss is $33K o Budget anticipated $101K operating loss 0 2011 actual was $88K operating loss ■ Ending Fund Balance • End of year Budget $OK / YTD Actual $139K • Roof repair, pump station and other capital maintenance not all spent, any balances will roll over to 2013 Fund Activity Summary — Page 169 Revised page 169 distributed to replace packet prior to forwarding to 3/5 Council for approval. Change in revenue and ending fund balance due to SWM division submittal of grant reimbursement after year -end close and production/submittal of the monthly financial report to FEDRAC. Changes to 2013/2014 Budget Ordinance as a result of this change will occur during the Mid - Biennium adjustment. ►,i Fund # /Fund Name j Beginning Fund Balance on 1/1/2012 Annual Revenue Annual Expenditure Annual Net Income/(loss) Ending Fund Balance on 1 213112 01 2 001 101 GeneraYStreet Fund: 12,743,853 44,994,825 42,703,879 2,290,946 15,034,800 201 Debt Service Fund: 3,866,183 2,424,494, 2,1.08,332 316,162 4,182,345 Special Revenue Funds: 102 Arterial Street 469,704 1,546,968 1,937,144 (390,175) 79,529 103 Utility Tax (-) 4,170,863 13,086,582 12,603,760 482,822 4,653,685 106 Solid Waste & Recycling 153,980 427,064 409,042 18,022 172,002 107 Special Contracts/Studies Fund 556,753 480 54,859 (54,379) 502,374 109 Hotel/Motel Lodging Tax 213,483 193,422 304,489 (111,067) 102,416 110 2% for the Arts 293 - 293 111 Federal Way Community Center 967,945 2,444,039 2,214,485 229,554 1,197,494 112 Traffic Safety Fund 557,077 2,258,176 839,386 1,418,790 1,975,867 119 CDBG 48,711 861,290 869,287 (7,997) 40,714 120 Path & Trails 151,807 169,861 155,000 14,861 166,668 Subtotal Special Revenue Funds: 7,290,616 20,987,683 19,387,452 1,600,431 8,891,047 Capital Project Funds: 301 Downtown Redevelopment 2,207,052 10,068 52,539 (42,471) 2,164,582 302 Municipal Facilities 1,285,611 1,645 149,401 (147,755) 1,137,856 303 Parks 2,408,883 550,468 699,092 (148,623) 2,260,260 304 Surface Water Management 2,938,982 709,377 1,091,261 (381,884) 2,557,098 306 Transportation 13,809,682 4,676,928 3,330,133 1,346,794 15,156,476 Subtotal Capital Project Funds: 22,650,210 5,948,486 5,322,425 626,061 23,276,271 Enterprise Funds: 401 Surface Water Management 2,312,896 3,921,797 2,994,655 927,142 3,240,038 402 Dumas Bay Centre Fund 101,331 728,006 690,639 37,366 138,697 Subtotal Enterprise Funds: 2,414,228 4,649,803 3,685,294 964,508 _ 3,378,737 Internal Service Funds 501 Risk Management 5,431,782 1,236,078 1,109,986 126,092 5,557,874 502 Information Systems 3,417,861 1,760,268 1,560,869 199,399 3,617,260 503 Mail & Duplication 279,073 142,305 135,516 6,790 285,863 504 Fleet & Equipment 5,267,807 2,281,870 1,802,845 479,024 5,746,831 505 Buildings & Furnishings 1,462,490 549,513 434,871 114,642 1,577,132 Subtotal Internal Service Funds: 15,859,013'' 5,970,034 5,044,087 925,947 16,784,960 Totat All Funds: 64;824,104 84,975,525 78,251,470 1 6,724,055 71,548,160 Utility Tax ending fund balance of $4,653,685 includes $1,080,948 reserved for Prop 1. CITY OF FEDRAC February 26, 2013 .�- Federal Way Page 9 of 10 #*i Councilmember Noble - Gulliford weighs in on the Red Light Photo fund Tho explains that the fund balances are allocated to specific purposes, some for capital reserves, projects and operating. Motion: Councilmember Celski moved to forward approval of the December 2012 Monthly Financial Report to the March 5, 2013 consent agenda for approval - second and passed. R. 12013 CARRY FORWARD BUDGET ADJUSTMENT T. KRAUS 170 Ordinance 1:21:55 First Reading 03/05 Council Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho discusses the carry forward, mostly projects that are not completed. Her Memorandum (Pages 171 -178) enumerates the funds that amount to a total of $19M. Committee: 0 Chair, Councilmembers Honda and Noble - Gulliford discuss camera cost, quality and effects. Motion: Councilmember Celski moved to forward the proposed ordinance to First Reading on March 5, 2013 - second and passed. S. 1 VOUCHERS T. KRAUS 185 Action 1:28:15 03/05 Council Consent Discussion /Changes: Tho Kraus Finance Director 253 835 -2520 Tho presents the vouchers for Committee consideration and approval. 0 Councilmember Honda comments on insurance and coverage, public works and incidents. Motion: Councilmember Celski moved approval of the vouchers and forward to the March 5, 2013 Council Meeting for approval - second and passed. CITY OF FEDRAC February 26, 2013 •�- Federal Way Page 10 of 10 4. OTHER: Tho says that she will provide Committee with regular updates on SCORE and include them in the packet. 5. FUTURE AGENDA ITEMS: 6. NEXT MEETING: Tuesday, March 26, 2013 Meeting adjourned 7:03 p.m. Attest: ' Steve Cain, Executive Assistant COMMITTEE APPROVAL: DIM Duclos Susan Honda Bob Celski Committee Chair Committee Member Committee Member