Council MIN 03-19-2013 RegularCITY OF
,� Federal Way
MINUTES
FEDERAL WAY CiTY COUNCIL
REGULAR MEETING
Council Chambers - City Hall
March 19, 2013
7:00 p.m.
www. cityoffederalway. com
1. CALL MEETING TO ORDER
Mayor Priest called the meeting to order at 7:00 p.m.
City officials present: Mayor Skip Priest, Deputy Mayor Jim Ferrell, Councilmember Kelly
Maloney, Councilmember Susan Honda, Councilmember Jeanne Burbidge, Councilmember
Bob Celski, Councilmember Diana Noble-Gulliford and Councilmember Dini Duclos.
City staff present: City Attorney Pat Richardson and City Clerk Carol McNeilly.
2. PLEDGE OF ALLEGIANCE
Councilmember Duclos led the Pledge of Allegiance.
Motion: Councilmember Honda moved to amend the agenda to add as Council
Business item 6.d. the Grant Application for Prosecution Coordination through Co-
Location Project. Councilmember Duclos second.
Deputy Mayor Ferrell stated he needed to recuse himself from item.
Vote:
Deputy Mayor Ferrell Recused
Councilmember Maloney Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Noble-Gulliford Yes
Councilmember Duclos Yes
Motion carried 6-0
3. PRESENTATIONS
a. Sound Transit — Liqht Rail Aliqnment and Station Location Studv
Mayor Priest reported $24M was placed into the budget for examination of this alignment.
Parks and Public Works Director Cary Roe introduced representatives from Sound Transit.
Catha� Ridge, Light Rail Development Manager, presented information on the Federal
Way Transit Extension Alternatives Analysis Process that is currently underway. He
reviewed the overall project schedule which began in 2012. The first phase of the study is
the Alternatives Analysis; second phase is the Draft Environmental Impact Statement,
City Council Minutes — March 19, 2012 Regular Meeting Page 1 of 9
then the final Environmental Impact Statement and preliminary engineering; lastly, the
Record of Decision. The goal is to get environmental approval for the project, Board
adoption and a Record of Decision from the Federal Transit Administration in 2016. They
are currently in Phase 1 of the Alternatives Analysis Process. Mr. Ridge reviewed the
transit corridor being studied. Current funding allows for extension to the Kent / Des
Moines station. However, they are proceeding with environmental work all the way to the
Federal Way station. Key measures that were considered in the analysis include: daily
ridership; travet time; traffic impacts; ROW impacts; and overall cost. Sound Transit
studied a number of different alignment possibilities for transit extension. Development
alternatives considered include elevated, at-grade median and mixed-grade options.
The Mayor and Council asked clarifying questions of Mr. Ridge regarding cost factoring
and the option of additional parking.
Chelsea Levy, Government & Community Relations Officer, stated parking demands at a
number of their facilities are an issue. At their recent retreat the Sound Transit Board
discussed their current parking policy and the option of adopting a new po�icy that focuses
on making Transit Center users parking as a priority.
b. Mavor's Emerqinq Issues
Legislative update: Last week, the House of Representative passed the metal theft
prevention bill. One key element of this bill is to provide grants to law enforcement task
forces to focus on metal theft and repeat offenders. Mayor Priest thanked the bill's co-
sponsor Representative Freeman as well as Representative Kochmar for supporting this
legislation. He also thanked Deputy Mayor Ferrell for his leadership on the Metal Theft
Advisory Group.
The House also passed HB 1253, which will preserve a vital tool allowing cites to promate
tourism through events and festivals. Federal Way currently uses some of its Lodging Tax
Revenues to support events that bring visitors to the City. An example of this type of
investment is the 2012 US Olympic Team Dive Trials which generated $1.64M in the City.
Without legislative action, this tool will expire in June and reduce the City's ability to
support future events at the King County Aquatic Center or smaller athletic events and
festivals: Mayor Priest thanked both Representatives Freeman and Kochmar for their
support on this issue. He also thanked Councilmembers Burbidge and Duclos, as well as
Ryan Miller for their work on this issue and noted Councilmember Burbidge will be
testifying on this issue in Olympia this coming Thursday.
4. CITIZEN COMMENT
Terri Turner with the Multi-Service Center Food and Clothing Bank spoke in appreciation for
the Community Enhancement Grant funding recommendation. They hope to provide meals to
children during the summer with the grant.
Ben Pittman Board Member with Park Pals would like French Lake Dog Park to receive
support from the City Council.
Joann Uaill President of Park Pals stated French Lake Dog Park could use the City's help with
maintenance of the park.
Lori DeVore spoke in support of developing a Performing Arts and Conference Center in the
City. A project of this nature would spur economic growth and keep revenues within the
community.
City Council Minutes — March 19, 2012 Regular Meeting Page 2 of 9
Ron Walker provided the Council with a proposal for the City Gate Project which would help
the City create a feeling of community.
Erika Skeen and Deanna Nuqent with Relay for Life encouraged the Council to fund the Relay
for Life Community Enhancement Grant application. Ms. Nugent provided information on the
Relay for Life event. Ms. Skeen shared her experience with the event and stated thirty three
teams have already signed up to participate in the event.
Anne Heinz-Rvan Secretary of Park Pals asked the City to match funding for some projects
that are necessary at the French Lake Dog Park.
John T"Jack" Butcher spoke in support of the City developing a Performing Arts and
Conference Center.
Norma Blanchard spoke in opposition of the City developing a Performing Arts and
Conference Center. She does not feel the City can afford it at this time and does not want to
see citizen's property taxes increase.
Phil Wamba clarified comments previously provided to Council. He is in support of a
Performing Arts and Civic Center.
Michael Jankowski General Manager of the Federal Way Petco, stated the French Lake Dog
Park needs a lot of work. He encouraged the City to work with Park Pals on development of
the park.
Bob Dariqan stated 59 years ago the Federal Way Lions Club began their service to thi�
community. He asked the City to waive the fee for use of the park so they can conduct their
Easter Egg Hunt.
Jim Chaffel asked the Council to reduce the fee for the use of Steel Lake Park for the Kiwanis
Salmon Bake.
Donna Beraer Federal Way Symphony Board Member, encouraged the Council to move
forward with the development of a Performing Arts and Conference Center.
Bradv Nelson submitted written comments for the City Glerk to read into the record. Mr.
Nelson's comments spoke in support of the Council moving forward with the development of a
Performing Arts and Conference Center. �
:loann Piquette submitted written comments for the Clerk to read into the record. Ms.
Piquette's comments spoke in support of the Council moving forward with a schematic design
for a Performing Arts and Conference Center — item 6.c. on tonight's agenda.
Bob McKenzie submitted written comments for the City Clerk to read into the record. Mr.
McKenzie's comments were in support of devetoping a Cultural Center in Federal Way.
Keith Livinqston submitted written comments for the City Clerk to read into the record. His
comments were in support of the Council moving forward with the development o# a
Performing Arts and Conference Center.
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 for approval. All items are enacted by one motion. Individual items may be
removed by a Councilmember for separate discussion and subsequent motion.
City Council Minutes — March 19, 2012 Regular Meeting Page 3 of 9
a. Minutes: March 5, 2013 Special and Regular Meetings
b. 2013 Asphalt Overlay Program — Bid Award
c. 21 S` Ave. SW at SW 336th Street Intersection Improvements — Design/Construction
Interlocal Agreement with Lakehaven Utility District
d. 21St Ave. SW at SW 336th Street Intersection Improvements — Utility Relocation
Agreement with Puget Sound Energy
e. 21 St Ave. SW at SW 336th Street Intersection Improvements — Joint Construction
Agreement with Century Link
f. 21 St Ave. SW at SW 336th Street Intersection Improvements — Reimbursement Letter of
Understanding with Comcast
g. Resolution: Acceptance of WSDOT Quick Response Safety Grants Resolution 13-635
h. NPDES Annual Report and Updated SWMP
i.
j. Program Year 2012 CDBG Consolidated Annual rPerformance Evaluation Report
Motion: Deputy Mayor Ferrell moved approval of Consent Agenda items 5.a.
through 5.h. and item 5.j. Councilmember Duclos second.
Councilmember Honda pulled item 5.i. Landscape Bid Awards.
Vote on items 5.a. through 5.h and 5.j.:
Deputy Mayor Ferrell Yes
Councilmember Maloney Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Noble-Gulliford Yes
Councilmember Duclos Yes
Motion carried 7-0
5.i. Landscape Bid Awards
Motion: Councilmember Honda moved to refer this item to the April 9�' Parks,
Recreation, Human Services and Public Safety Council Committee because the
agenda bill does not reflect the correct amount for a two-year contrac� Deputy
Mayor Ferrell second.
Deputy Mayor Ferrell Yes
Councilmember Maloney Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Noble-Gulliford Yes
Councilmember Duclos Yes
Motion carried 7-0
6. COUNCIL BUSINESS
a. 2013 Communitv Enhancement Grant Allocations
Mayor Priest stated this item was before the Parks, Recreation, Human Services and
Public Safety Council Committee on March 12, 2013 and forwarded to the full Council for
City Council Minutes — March 19, 2012 Regular Meeting Page 4 of 9
�
action without a recommendation.
Community Services Manager Jay Bennett stated this program offers grants from $500 to
$1,500 to non-profit agencies, community groups or school-based organizations to assist
with small projects that benefit residents. $20,000 was budgeted for the 2013 Community
Enhancement Grants. The City received thirty-five applications which were reviewed by
the Human Services Commission. The Commission developed funding recommendations
which were forwarded to the Parks, Recreation, Human Services and Public Safety
Council Committee.
Councilmembers Honda and Noble-Gulliford stated they needed to recuse themselves
from voting on this item.
Motion: Councilmember Maloney moved approval of the Human Services
Commission's funding recommendations for the 2013 Community Enhancement
Grants. Councilmember Duclos second.
Vote:
Deputy Mayor Ferrell
Councilmember Maloney
Councilmember Honda
Councilmember Burbidge
Councilmember Celski
Councilmember Noble-Gulliford
Councilmember Duclos
Motion carried 5-0
Yes
Yes
Recused
Yes
Yes
Recused
Yes
Motion: Councilmember Duclos moved for a Coun�
intent of the Community Enhancement Grants and
assist the Human Services Commission in their
Councilmember Burbidge second.
Vote:
Deputy Mayor Ferrell Yes
Councilmember Maloney Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Noble-Gulliford Yes
Councilmember Duclos Yes
Motion carried 7-0
2013 Council Retreat Summarv
;il Committee to discuss the
review funding guidelines to
funding recommendations.
Deputy Mayor Ferrell reported the City Council held theirAnnual Retreat on March 9, 2013
at the Courtyard Marriott Hotel. Jim Reid, from the Falconer Group facilitated the retreat.
The Council discussed the Performing Arts and Conference Center (PACC), the former
AMC Theatre site, and ways to expand economic development.
Motion: Deputy Mayor Ferrell moved to approve the summary of the Council's
Strategic Planning Retreat as presented. Councilmember Maloney second.
Vote:
Deputy Mayor Ferrell Yes
Councilmember Maloney Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
City Council Minutes — March 19, 2012 Regular Meeting Page S of 9
Councilmember Celski Yes
Councilmember Noble-Gulliford Yes
Councilmember Duclos Yes
Motion carried 7-0
c. Authorization to Proceed with the Schematic Desiqn for a Performinq Arts and
Conference Center
Community and Economic Development Director Patrick Doherty reviewed the
development costs associated with a Performing Arts and Conference Center. The
preliminary cost estimate is $31,750,000. The infrastructure related portion is $5,000,000
and sufficient funds are available for this portion. The non-infrastructure balance is
$26,750,000, available funding forthis portion is $11,385,000. 7he balanceto befunded
is $15,635,000. Potential funding areas include naming rights, grants, state capital
funding and capital campaign funding.
Finance Director Tho Kraus presented information on New Markets Tax Credits (NMTC)
which was established by Congress in 2000 to spur private investment in low-income
communities. It provides investors with tax credit against their investment in community
development entities. It is a non-permanent program that requires renewal by Congress.
Two components of the program are the Community Development Financial Institutions
Fund (CDFI) — a division of the US Department of Treasury that administers the program
and the Community Development Entity (CDE) — an organization certified by the CDFI as
a CDE eligible for the New Market Tax Credits. There is an annual application through a
competitive process to receive an award allocation. Once awarded the CDE seeks
projects to invest in and attracts private investment in exchange for the tax credit. The
CDE becomes the project lender, distributing funds, conducting loan servicing and
compliance monitoring throughout the seven-year compliance period. The
City would pay an asset fee to the CDE. Investors provide up-front equity to projects in
exchange for tax credits worth 39% of their investment over a seven year period. The
project cannot be owned directly by a government entity. The City could master lease the
facility from a private entity or create a Special Purpose Entity to own and operate the
facility. After the seven year period the facility would become the City's property.
Ms. Kraus reviewed the factors the CDE uses to determine where to invest.
Councilmembers asked clarifying questions of Mr. Doherty and Ms. Kraus regarding the
asset management fee, fundraising under the NMTC program, the start time of the seven
year period.
Mr. Doherty noted that in 2011 Council appropriated $750,000 for the design, planning
and development costs for the PACC. The remaining balance is $ 475,000. He noted a
schematic design would provide a detailed, scale drawing of the building, site and
landscaping. The timeframe for the schematic design is six months.
Councifinember Celski spoke in support of moving forward with the schematic design.
Councilmember Honda expressed her concerns with the development cost associated
with a PACC. She wants to know what the citizens and business owners would like to see
in the downtown.
Councilmember Maloney stated she has concerns with this development, however, she
sees the value in it as well. She stated she does not support raising citizens' taxes to fund
any part of this project.
City Council Minutes — March 19, 2012 Regular Meeting Page 6 of 9
Councilmember Burbidge stated she does not support raising taxes to fund a PACC. She
noted it is necessary to invest in the downtown and now is the time.
Councilmember Noble-Gulliford spoke to the importance of community involvement on this
project moving forward.
Motion: Deputy Mayor moved to suspend the Council Rules of Procedure to
continue the meeting past 10:00 p.m. Councilmember Burbidge second.
Vote:
Deputy Mayor Ferrell
Councilmember Maloney
Councilmember Honda
Councilmember Burbidge
Councilmember Celski
Councilmember Noble-Gulliford
Councilmember Duclos
Motion carried 7-0
Yes
Y�s
Yes
Yes
Yes
Yes
Yes
Motion: Councilmember Burbidge moved to appropriate $355,000 Real Estate
Excise Tax first quarter percent and authorize the Mayor to execute the necessary
documents for the Performing Arts and Conference Center schematic design, which
will include statements regarding cost savings and City Council involvement.
Councilmember Duclos second.
Deputy Mayor Ferrell expressed his concerns with the maintenance and operation costs
associated with a PACC. He is not convinced this is the economic driver needed for the
City.
Councilmember Duclos reported she has spoken with local business owners who have
stated they support this project in the downtown.
Vote:
Deputy Mayor Ferrell
Councilmember Maloney
Councilmember Honda
Councilmember Burbidge
Councilmember Celski
Councilmember Noble-Gulliford
Councilmember Duclos
Motion carried 6-1
No
Yes
Yes
Yes
Yes
Yes
Yes
d. Grant Application for Prosecution Coordination throuah Co-Location Proiect
City Attorney Pat Richardson stated the City has participated in this project since 2008.
The Co-Location works to coordinate domestic violence prosecution and help the
prosecutors when there is a domestic violence suspect in multiple jurisdictions. The grant
application deadline is March 22, 2013.
Deputy Mayor Ferrell stated he needed to recuse himself from voting on this item.
Motion: Councilmember Honda moved to authorize the City Attorney to execute
a Memorandum of Understanding for Prosecution coordination through Co-
Location Project. Councilmember Burbidge second.
Vote:
City Council Minutes — March 19, 2012 Regular Meeting Page 7 of 9
r�
8.
Deputy Mayor Ferrell
Councilmember Maloney
Councilmember Honda
Councilmember Burbidge
Councilmember Celski
Councilmember Noble-Gulliford
Councilmember Duclos
Motion carried 6-0
ORDINANCES
Recused
Yes
Yes
Yes
Yes
Yes
Yes
Second Reading:
a. CB# 621: 2013 Carrv Forward Budqet Adiustment
An ordinance of the City of Federal Way, Washington relating to Budgets and
Finance to Carry Forward Funds Revising the 2013-14 Biennial Budget.
At their March 5, 2013 meeting, Council received a presentation on the 2013
Carry Forward Budget Adjustment. They forwarded the ordinance to this meeting
for second reading and enactment.
City Clerk McNeilly read the ordinance title into the record.
Motion: Councilmember Duclos moved approval of the ordinance.
Councilmember Celski second.
Vote:
Deputy Mayor Ferrell Yes
Councilmember Maloney Yes
Councilmember Honda Yes
Councilmember Burbidge Yes
Councilmember Celski Yes
Councilmember Noble-Gulliford Yes
Councilmember Duclos Yes
Motion carried 7-0. Ordinance 13-739
COUNCIL REPORTS
Deputy Mayor Ferrell reported King County Executive Dow Constantine will be at tomorrow's
SCA dinner. The Washington State Attorney General will be in attendance at the upcoming
Good Eggs Breakfast at the Twin Lakes Golf and Country Club.
Councilmember Honda reported the Arts Commission and the Municipal Court are sponsoring
an art contest entitled "Liberty and Justice for All." Entries must be received by April 19th. She
recently attended a local short course on economic development and local planning. She
thanked the Human Services Commission for their work on the Community Enhancement
Grant recommendations.
Councilmember Maloney stated she appreciated Deputy Mayor Ferrell's forthright comments
this evening.
Councilmember Burbidge reported she attended an SCA Public Issues Committee meeting
and shared the City's concerns regarding the Lodging Tax Legislation. This morning she
attended a SCATBD Meeting they received a presentation on railroad services and freight
mobility implications. Tomorrow she will attend a King County Regional Transit Committee
Ciry Council Minutes — March 19, 2012 Regular Meeting Page 8 of 9
meeting.
Councilmember Celski reported the Reach-Out Roller Mania fundraiser will be on March 25cn
at 6:00 p.m. at Pattison WesYs Skating Rink. He attended both Representative Kochmar and
Freeman's Town Hall meetings last weekend.
Councitmember Noble-Gulliford reported she attended an economic development workshop in
Fife. The Historical Society has begun researching and interviewing for an oral history on
iogging in Federal Way.
Councilmember Duclos reported this year's Council Retreat was probably the most productive
she has attended during her time on the Council. The next FEDRAC meeting is March 26tn
9. MAYOR'S REPORT
Mayor Priest had no report.
10. ADJOURNMENT
Mayor Priest adjourned the meeting at 10:30 p.m.
Attest:
Carol McNeilly, CMC, ity Clerk
Approved by Council: April 2, 2013
City Council Minutes — March 19, 2012 Regular Meeting Page 9 of 9