FEDRAC MINS 05-28-2013 CITY OF
.� Federal Way
City Council
FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE
[FEDRACI
Tuesday, May 28 Federal Way City Hall
5:30 p.m. 2012 Hylebos Room
Meeting Summary
(Preliminary until approved)
Submitted for approval 6/25/2013
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
Presenter Action
Topic Title/Description Time Page* or Discussion
A. APPROVAL OF MINUTES/SUMMARY:APRIL 23,2013 S.CAIN 2 Approval
05/28 Committee
B. PURCHASE OF POLICE VEHICLE LAPTOPS T.FICHTNER 14 Consent
3 MINUTES 06/04 Council
C. PURCHASE OF ROCKET VEHICLE ROUTERS T.FICHTNER 17 Consent
3 MINUTES 06/04 Council
D. AMANDA SYSTEM-UPGRADE � - -- T.FICHTNER 21 Consent
MINUTES 06/04 Council
E. SCORE UPDATE T.KRAUS 29 DISCUSSION
20 MINUTES Information only
F. CASCADIA VELOCITY QUARTERLY REPORT—Q12013 P.DOHERTY 30 DISCUSSION
10 MINUTES Information only
G. RESOLUTION TO ESTABLISHING A BALLOT PROPOSITION RRESTRICTING VOTING P.RICHARDSON 39 Council Business
ON CITIZEN INITIATIVES TO NOVEMBER ELECTIONS 5 MINUTES Resolution
_ 06/04 Council
H. RESOLUTION DIRECTING CLERK TO ADVERTISE FOR MEMBERS OF PRO OR CON P.RICHARDSON 49 Council Business
COMMITTEES FOR THE PROPOSITION RESTRICTING THE ELECTIONS FOR CITIZEN, 5 MINUTES Resolution
WITH APPOINTMENT DATE OF JULY 16,2013 06/04 Council
I. PUBLISHING DEVELOPMENT NOTICES IN THE NEWSPAPER _ P.RICHARDSON 53 Council Business
5 MINUTES 06/04 Council
J. MONTHLY FINANCIAL REPORT T.KRAUS 73 Consent
5 MINUTES 06/04 Council
K. VOUCHERS � T.KRAUS 91 Consent
5 MINUTES 06/04 Council
"Additional materials may also be distributed for review/action during the meeting
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday,JUNE 25,2013
Committee Members: City Staff:
Councilmember Dini Duclos,Chair Tho Kraus, Finance Director 253 835-2520
Councilmember Bob Celski Steve Cain, Executive Assistant 253 835-2402
Councilmember Susan Honda
CITY OF
FEDRAC May 28, 2013 ti Federal Way Page 2 of 9
1. CALL TO ORDER
By: Councilmember Duclos - Chair
Time: 5:30
Committee Members in attendance:
DIM Duclos x_ Bob Celski _x_ Susan Honda -x-
0 - excused
Other Council Members and/or elected officials in attendance:
Jeanne Burbidge, Diana Noble-Gulliford, Kelly Maloney
Staff in attendance(x):
• Tho Kraus Finance Director 253 835-2520
Penny Bartley SCORE Director
• Steve Cain Executive Assistant 253 835-2402
• Pat Richardson City Attorney 253 835-2570
• Brian Wilson Chief of Police 253 835-6711
• Thomas Fichtner IT Manager 253 835-2547
• Patrick Doherty Community&Economic Development Director 253 835-2612
Graham Evans CEO,Cascadia Velocity
• Isaac Conlen Planner Manager, Economic Development Services 253 835-2612
2. PUBLIC COMMENT
Norma Blanchard offered brief comments-
Discussion of the voting dates and proposed changes,as well as the PACC,she said that everyone should have a say.
Though there was a survey conducted by the Clerk,the number responding was small,with only 562 answering the
survey.
3. COMMITTEE BUSINESS
• First item of business is a change in the Agenda; Items E.and F. are moved to the end and Item G.will follow
Item D.
Presenter Action
Topic Title/Description Time Page* or Discussion
A. APPROVAL OF MINUTES/SUMMARY:APRIL 23,2013 S.CAIN 2 Approval
4:55 05/28 Committee
Discussion/Changes: Steve Cain Executive Assistant 253 835-2402
Councilmember Honda requested a change in the April minutes.Change the voting record on Item B.(page 4)
to indicate the she did not"Abstain" but voted "Nay." Amendment of the minutes was approved and noted.
Motion:Councilmember Celski moved to approve the FEDRAC meeting minutes for Tuesday,April 23,2013,as
amended,by changing the vote"Abstained"to"Nay" by Councilmember Honda—second and passed.
4% CITY OF
FEDRAC May 28, 2013 .• Federal Way Page 3 of 9
B. PURCHASE OF POLICE VEHICLE LAPTOPS T.FICHTNER 14 Consent
3 MINUTES 6:30 06/04 Council
Discussion/Changes: Thomas Fichtner IT Manager 253 835-2547
Thomas discusses the Agenda Bill for the purchase of police vehicle laptops.
0 Councilmember Celski asks if there is a salvage value of the old laptops, answer is basically no.
Motion: Councilmember Honda moves to forward Option 1 to the June 4,2013 Council Consent Agenda for approval
—second and passed.
C. PURCHASE OF ROCKET VEHICLE ROUTERS " T.FICHTNER 17 Consent
3 MINUTES 8:45 06/04 Council
Discussion/Changes: Thomas Fichtner IT Manager 253 835-2547
Thomas discusses the Agenda Bill for the purchase of Rocket vehicle routers.
• Councilmember Honda asks why one bid is so much less, is it the same product—yes, but lower bid is a
promotional price as they are just entering the NW market.
Motion: Councilmember Celski moves to forward Option 1 to the June 4,2013 Council Consent Agenda for approval—
second and passed.
D. AMANDA SYSTEM UPGRADE T.FICHTNER 21 Consent
3 MINUTES 10:35 06/04 Council
Discussion/Changes: Thomas Fichtner IT Manager 253 835-2547
Thomas discusses the Agenda Bill for the upgrade of the Amanda System.
There are no questions or a discussion.
Motion:Councilmember Honda moves to forward Option 1 to the June 4,2013 Council Consent Agenda for approval—
second and passed.
Note:Consideration of Item G.next—Items E. and F. follow Item X
G. RESOLUTION TO ESTABLISHING A BALLOT PROPOSITION RESTRICTING VOTING P.RICHARDSON 39 Council Business
ON CITIZEN INITIATIVES TO NOVEMBER ELECTIONS 5 MINUTES 12:15 Resolution
06/04 Council
Discussion/Changes: Pat Richardson City Attorney 253 835-2570 5:29
Pat briefly discusses the Agenda Bill and the background; City Attorney was directed by Council to prepare the ballot
proposition.
Committee discussion:
0 Chair asks about November election choice; code requires voting restrictions go to a vote of the people in
general election.
CITY OF
FEDRAC �Ma Y 28 2013 k Federal 8 Way Page 4 of 9
❖ Councilmember Noble-Gulliford asks what is the next step in the process;to prepare voters pamphlet statement
to go to King County. Then a resolution to advertise and appoint"pro and con"committees. This resolution
addresses only when the vote should occur.
•3 Chair Duclos comments on the time to collect signatures, cost to the city for a special election (especially in
times of economic stress)and notes that there are more voters in November; Pat notes Page 43 for the election
timing of current law, 120 days or regular election day,for the proposition.
•8 Councilmember Maloney questions the costs; Pat explains the Council said to go with general election (less cost
and more voters).
Motion: Councilmember Celski moves to forward Option 1 [Adopt]to Council Business for the June 4,2013,City
Council meeting— [before a second,further discussion ensues]:
Councilmember Honda questions how much the Council can do to advertise-Pat will check with PDC regarding
how much can Council can do and say. If Council approves the proposition,they will certainly want to do a
GOTV.
4 Chair Duclos asks how much Council can explain about the proposition; Pat says the Council will appoint the pro
and con committees that will provide the arguments about the proposal.
4 Councilmember Celski comments that the committees and citizen involvement will raise awareness.
*r Chair Duclos says Council members can always respond to questions.
[Consideration of Councilmember Celski's motion continues]second and the motion is passed.
H. RESOLUTION DIRECTING CLERK TO ADVERTISE FOR MEMBERS OF PRO OR CON P.RICHARDSON 49 Council Business
COMMITTEES FOR THE PROPOSITION RESTRICTING THE ELECTIONS FOR CITIZEN, 5 MINUTES 21:40 Resolution
WITH APPOINTMENT DATE OF JULY 16,2013 06/04 Council
Discussion/Changes: Pat Richardson City Attorney 253 835-2570
Pat discusses the Agenda Bill and resolution.
Committee raises questions:
4, What if no pro or con input? What can council do?Can Council provide statements? Pat says no; staff can
provide info/stats and transmit to KC. Council can seek volunteers both pro and con, however,the statements
have due dates,so the process cannot take too long. Actually,statements are not even necessary. But, if want
to provide statements,the deadline is absolute.
• Pat explains:Council cannot be involved in the writing of those statements. The better process is to have
people willing to write the statements. City can, however,facilitate committees—offer meeting rooms,for
example.
Motion: Councilmember Celski moves to forward the proposed resolution to the June 4,2013 City Council meeting
under Council Business—second and passed.
CITY OF
FEDRAC May 28,2013 A: Federal Way Page 5 of 9
I. PUBLISHING DEVELOPMENT NOTICES IN THE NEWSPAPER P.RICHARDSON 53 Council Business
5 MINUTES 25:11 06/04 Council
Discussion/Changes: Pat Richardson City Attorney 253 835-2570
Pat discusses the Agenda bill and considerable backup information (Pages 54—72). This regulation would only pertain
to development.
Committee Discussion:
•:► Councilmember Noble-Gulliford,what are other options besides printed publication?-Webpage, is example of
another option.
•r Chair Duclos questions going to a paper that publishes more than once a week; Pat suggest an RFP to publish in
other paper(s).
• Patrick and Isaac speak to the frequency of the need for such notices,as required by state law.
4. Chair Duclos, Councilmembers Burbidge and Maloney,and Pat note that state law requires some
announcements in the newspaper, but not everything. Whatever, usually requires a paper of"general
circulation."
0 Councilmember Noble-Gulliford concerned that we need to notify adjacent property owners. Pat said that the
Clerk's survey showed most did not read newspaper notices but got it by word of mouth,our website,direct
mail or other means.
❖ Isaac mentioned that two notices in a weekly paper may delay a time sensitive project. Chair Duclos says that
others have raised that issue also
• Patrick comments that site signs or mail/website are more common notification means. Need to look at city
wide options.
•:► Councilmember Burbidge said this question was previously before council,with concern for timeline and daily
publication. Question is what is most useful method?
•a Councilmember Honda pointed out that the TNT does not cover FW issues so maybe we should just stick with
Mirror. Also, notes that not all have computer access and not all read English,so notification is a challenge.
• Patrick notes that the Mirror also has daily edition on line.
fi Chair Duclos reminds Committee that the contract with Mirror not up for a year.
ti* Councilmember Burbidge, Pat and Isaac discuss that a single issue paper may push some deals, i.e. real estate,
out if more notices needed.
rr Councilmember Celski suggests tabling for more study. Councilmember Maloney questions what would be the
next action; Pat explains action would be to send proposal to planning,then to land use and transportation,
then to council.We are looking at setting priority.
* Patrick comments that, no matter the priority, it will take time.
0 Chair Duclos says we get nothing if we continue to use paper with no change. Pat suggests sending an RFP out
and then determine action based on response.
0 Councilmembers Celski asks about keeping the status quo, Councilmember Honda and Patrick suggest that if
there is a set deadline, it will be met and we then work the code around the options.
• Pat notes that city code requires publication but not state law. City code is different for various notifications.
This is a development issue.
Motion: Councilmember Honda moves to forward the issue of potential revisions to the development regulations in
the Federal Way Revised Code to the June 4,2013 City Council Meeting Council Business for discussion and action.-
Councilmember Celski seconds and then there is more discussion:
�► Council Members Celski, Honda,Chair Duclos discuss the priority and want to make a recommendation.
Councilmember Celski asks if they can amend the motion,Councilmember Honda wants it considered sooner
CITY OF
FEDRAC May 28,2013 .�- Federal Way Page 6 of 9
rather than later,Councilmember Celski, however,does not want to displace high priority items and decision is
medium priority.
Chair calls for vote on motion—motion passed.
Councilmember Honda then makes a separate motion to set priority: "I move to place the publication of development
regulations and development projects under medium of the Planning Commission's Work Plan."-second and passed.
.I. MONTHLY FINANCIAL REPORT T.KRAUS 73 Consent
5 MINUTES 54:30 06/04 Council
Discussion/Changes: Tho Kraus Finance Director 253 835-2520
Tho presents the"Highlights" in a different format this month and reviews it with the Committee.
4, Chair Duclos comments on the animal licensing.
4, Councilmember Celski is excited by developments at the FWCC—revenue up$100K over last year.
❖ Chair Duclos looks at factors allowing FWCC improvement, leeway by the Council to work with budget and the
restructuring of the bonds.
$• Councilmember Honda comments on the Utility Tax Rebate Program.
40% Councilmember Celski has questions on police overtime.Chief explains light duty and new hires put extra work
on others.
Motion: Councilmember Honda moves to forward approval of the April 2013 Monthly Financial Report to the June 4,
2013 consent agenda for approval.—second and passed.
K. VOUCHERS T.KRAus 91 Consent
5 MINUTES 1:07:20 06/04 Council
Discussion/Changes: Tho Kraus Finance Director 253 835-2520
Questions?
0 Councilmember Honda wonders about the$41K to the Puget Sound Clean Air Agency;Tho explains that it is a
state agency and we are assessed according to our population.
�o Councilmember Burbidge and Patrick discuss agency involvement in outside burning and fireplaces and other
emissions.
Motion: Councilmember Celski moves approval of the vouchers and forward to the June 4,2013 Council meeting for
approval—second and passed.
CITY OF
FEDRAC May 28, 2013 �- Federal Way Page 7 of 9
E. SCORE UPDATE T.KRAUS 29 DISCUSSION
20 MINUTES 1:09:30 Information only
Discussion/Changes: Tho Kraus Finance Director v 253 835-2520� rv��
Tho provided and discusses her handout Memo dated May 23,2013—attached.
(Penny Bartley—SCORE Director present for discussion and to answer questions)
Tho highlighted the analysis of SCORE by a consulting group to do cost analysis, look at contribution formula and
benchmarking with other,similar facilities for comparison.The remainder of the information is analysis from SCORE.
Committee questions and discussion:
❖ Questions on previous numbers;they will be examined by consultants for accuracy and analyzed.
❖ Councilmember Celski says that he looks at labor costs, Page 4, notes benefits equals about a 40%burden; Ms
Bartley answers about SCORE as the employer and the benefits. Councilmember Celski still thinks it is several
percentage points too high.
❖ Chair Duclos questions number of inmates; Ms Bartley comments that there are more inmates than budgeted
for. Chair Duclos was on Federal Way Council at the outset of SCORE and the current cost is well beyond
anticipation. Ms Bartley compares last year with this year and indicates that this year looks better.
Tho also weighs in about costs and staffing,we need to make sure that staffing is in line with other facilities;which the
consultants will research. She also discusses contract rates and number of beds filled. We need to address if SCORE
incurs additional costs because a contract agency exceeds its bed limit and requires additional labor and/or opening
additional pod(s).
•ti Councilmember Honda and Maloney question the demographics; Ms Bartley discusses the medical facilities,
research costs and other service providers and hopefully by 2014 we will have a good idea of that is out there
and we can adjust the staff and services to fit needs and budget.
❖ Councilmember Celski notes research will look at the ADP at SCORE and other jails and comparisons with 2012
through 3/31/2013.
Motion: Discussion only, no committee action.
(SCORE Memo, referenced above,follows on 23 pages.)
Item F. starts on page 32
CITY OF FEDERAL WAY
MEMORANDUM
Date: May 23,2013
To: Finance,Economic Development and Regional Affairs Committee
From: Tho Kraus,Finance Director
Via: Skip Priest,Mayor
Re: South Correctional Entity(SCORE)Update
BACKGROUND
The SCORE correctional facility was established on February 25, 2009 by an interlocal agreement between the
seven "Member Cities" of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila. Due to
Des Moines credit worthiness and the consequence of higher financing costs for SCORE, the interlocal
agreement was amended and restated on October 1, 2009 to remove Des Moines as.an obligor on the bonds and
named Des Moines as the "Host City" and the remaining Member Cities as "Owner Cities. This agreement
reallocated Des Moines 5% share of debt service to Renton (2%), Auburn (2%) and Federal Way (1%). The .
exposure to Federal Way should Des Moines fails to pay the host city fee when due is approximately $60K
annually.
The allocation of costs to Owner Cities and Host City is as follows:
• Debt Service allocation is a fixed percentage based-on the 2007 average daily population (ADP) in all
correctional facilities totaling 343: Auburn (100 ADP, 29.00%), Burien(12 ADP, 4.00%), Des Moines
(17 ADP, 5.00%), Federal Way (60 ADP, 17.00%), Renton (117 ADP, 34.00%), SeaTac (9 ADP,
3.00%) and Tukwila(28 ADP, 8.00%). The City's total share of debt service is $14.66M with annual
debt service payments ranging from$900K-$917K per year through 2039.
• Maintenance&operation allocation is a variable percentage also based on average daily population.
o The 2012 budget m&o percentage was based on the 2007 ADP in all correctional facilities.
o The 2013 budget m&o percentage is based on the ADP in all correctional facilities for the
period April 1,2011 through March 30,2012.
o Then beginning with the 2014 budget the allocation is based on the ADP in SCORE during the
12-month period ending March of the preceding year.
M&O ALLOCATION
The following table provides historical,current and estimate future M&O percentage allocations amongst the
member cities.
M&O Allocation
For 2014 Bud et Change from 2013
�.d' f �,v,�,'�' ;ter frx///,�•�1//'..'/,J
MemberCity F 0 � I�,, ADP M&O% ADP M&O%
Auburn 100 29.15% 122 33.98% 22` 4.83% 84i 27.51% (38)' -6.47%
Burien 12 3.50% 11 3.06% (1); -0.44% M 3.17% 1 0.11%
i
Des Moines 17 ' 4.96% 7 1.95% (10)1 -3.01% 7i 2.37% 0.42%
3
Federal Way 60 17.49% 90 25.07% 30 3 7.58% 831 26.99% ( 1.92%
Renton 117 34.11% 91 ' 25.35% (26)1 -8.76% 811 26.38% 10 1.03%
SeaTac 9 2.62% . 15 4.180% 6 1.56% 191 6.17% 4 '1 1.99%
Tukwila 28 8.16% 23 6.41% (5)' -1.75% 23 7Al% 1.00'/0
Total 307 100.00% 52 O.OU%o
FINANCIAL SUMMARY
The SCORE Adopted 2012 total cost of$19.4 is comprised of two components: $15.9M for maintenance &
operations including 101 employees and estimated inmate population of 429; and$3.5M for debt service(net of
$1.9M principal reduction using project savings).
In addition to the$1.9M use of project savings towards debt service reduction,the adopted budget also assumed
another$7.2M in other cost reductions:
• $3.OM total from start-up and construction costs savings
• $3.7M from the sale of 75 contracted beds
• $500K other miscellaneous(phone,commissary,etc.).
Also, an additional $L I M was allocated proportionately to member cities for equipment and facility reserves
bringing the total member payments to $13.2M. Federal Way's share of cost was $230M ($1.78M for m&o
based on 17.49%ADP and$525K for debt service based on fixed 17.00%share of debt)
After four months of operations, SCORE/Finance Committee anticipated that the contract beds and
miscellaneous revenues would not meet estimates as projected in SCORE's adopted budget. Member Cities
agreed to not impact their 2012 budget and asked that SCORE look at potential measures to close the revenue
gap. The 2012 revenue gap of roughly $3.9M is comprised of $3.7M contract bed revenue and $200K
miscellaneous revenue with Federal Way's share of this gap at roughly$700K.
The 2012 revenue gap was closed by using a combination of SCORE year 2011 and year 2012 operating budget
and contingency savings as follows: $980K increase in fund balance due to closing out 2011; $1.OM
elimination of 2012 operating contingency; $1.06M transfer in from capital project savings; $550K expenditure
budget reductions;and$314K anticipated expenditure savings,although not adjusted.
The 2012 Adopted Budget assumed current year's revenue from contracted beds would be used to reduce
current year's cost. Following discussions with the Finance Committee in 2012, the policy was revised to use
current year contract bed revenue to offset costs in the following year(i.e. revenue earned in 2012 will be used
2
to offset 2013 costs). The revised revenue recognition policy change is consistent with conservative budgeting
practices.
At the end of 2012, the combined ending fund balance in the Operating and Debt Service Funds totaled$7.OM
and is comprised of
$818K equipment replacement reserves
$602K current year contract revenue for future year M&O offset($300K offsets 2013)
$100K earmark for outside medical services should expenditures exceed$400K in 2013
$1,441K operating contingency reserves
$3,662K prefunding of 2013 debt service
$405K unallocated
Federal Way's ADP for year 2013 M&O increased to 90 or 25.07%(for the period April 1,2011 through March
30, 2012)compared to 2007's ADP of 60 or 17.49%. As a result of increased ADP and lower contract revenue
offset, the City's share of M&O grew to $3.77M in 2013. Including debt service of roughly $917K, the City's
total SCORE cost is$43M.
The City budgeted similar amounts for 2014. However,although the City's ADP as calculated for the 2014
M&O assessment of 83 decreased from 2013's ADP of 90,the City's share of M&O increased from 25.07%to
26.99%.
Budget Year 2013 , Year2014
Ongoing Source $ 2,234,000 $ 2,349,000
One-Time Source 1,537,896 1,400,000
CarryForward - 436,000
Total M&O 3,771,896 4,185,000
Debt Service 916,858 916,654
Total M&O and Debt $ 4,688,754 $ 5,101,654
SCORE is currently developing the 2014 budget and member cities are expected to receive preliminary figures
in July/August. Based on my rough calculation of the 2014 M&O assessment,the City's current budget should
be close with the carry forward of jail reserves Council approved during the 2013 Carry Forward budget
adjustment.
The following table provides a summary of the 2012 and 2013 financial summary of the Operating and Debt
Service Funds:
3
2013 YID 2013 vs YID 2012
Financial Summary- 141„ Fmoible/(i�fajll>fe) Actual ' Adjusted Actual Fawrable/ fawraHe
OPERATIONS&DEBT Acttud ChLif ` °f• 3fi11"A Bu et YID April $C % Ch
Beginning Fund Balance $9,012,407 $9,012,407 - 0.0% $9,012,407 $6,141,874 $7,028,234 (1,984,173) -22.0%
Revenues
Member Svc Payments 13,178,625 13,167,901 (10,724) -0.1% 5,132,818 20,443,811 6,736,971 1,604,153 31.3%
Contract Agency Payments 300,000 601,820 301,820 100.6% 87,985 690,000 377,599 289,614 329.2%
Inte ovemmental - 22,800 22,800 n/a - - 4,400 4,400 n/a
Charges for Services 150,000 170,757 20,757 13.8% 23,725 150,000 43,468 19,743 83.2%
Miscellaneous 6,000 6,672 672 11.2% 2,019 - 484 1,535 -76.00/.
Interest Earnings - 2,200 2,200 n/a - - 848 848 n/a
Total Revenues 13,634,625 13,972,150 337,525 2.5% 5,246,547 21,283,811 7,163,770 1,917,223 36.5%
Expenditures
Salaries&Wages 6,566,015 6,493,022 72,993 1.1% 2,028,402 6,794,094 2,141,794 (113,392) -5.3%
Personnel Benefits 2,537,440 2,413,042 124,398 5.2% 772,524 2,864,528 817,551 (45,027) -5.5%
Overtime 400,000 356,913 43,087 12.1% 176,211 406,000 74,274 101,937 137.2%
Operating Supplies 177,000 174,182 2,818 1.6% 57,903 178,620 42,243 15,660 37.1%
Consumables 1,000,000 889,626 110,374 12.4% 301,827 1,081,871 262,252 39,575 15.1%
Professional Services 256,000 181,662 74,338 40.9% 61,425 161,059 45,924 15,501 33.8%
Medical Services 1,500,000 1,418,308 81,692 5.8% 565,721 1,575,000 621,903 (56,182) -9.00/.
Outside Medical Svcs 400,000 238,368 161,632 67.81/o 10,549 400,000 20,840 (10,291) 49.4%
Other Svcs&Charges 300,000 307,796 (7,796) -2.5% 67,096 398,682 158,205 (91,109) -57.6%
Insurance 150,000 127,868 22,132 17.3% 127,868 145,000 118,819 9,049 7.6%
Utilities 700,000 676,810 23,190 3.4% 184,209 661,633 201,383 (17,174) -8.5%
Programs 10,000 - 10,000 n/a - - - n/a
Maintenance 250,000 235,991 14,009 5.91/0 67,857 136,130 44,441 23,416 52.7%
Debt Service 3,480,643 3,481,598 (955) 0.0% 2,577,866 5,382,966 3,659,821 (1,081,955) -29.6%
Intergovernmental 16,000 5,500 10,500 190.9% 500 18,000 500 n/a
Capital Outlays 150,000 11,445 138,555 1210.6% 92,256 - 3,284 88,972 2709.3%
Total Expenditures 17,893,098 17,012,131 880,967 5.2% 7,092,214 20,203,583 8,212,734 (1,120,520) -13.6%
RevOwr/(Under)Ecp NINE= ju= 1,080,228 (19048,964) 3,037,743` 197.1%
Transfers In/Out
Transfers In from Ca ital 1,055,808 1,055,808 0.01/0 - n/a
Transfers Out - - n/a n/a
Net Transfers In/Out 1,055,808 1,055,808 - 0.0% - n/a
Endigg end Balance $7,22 %
Equipment Reserves
Current Yr Contract Rev
,�r %r .5'T,-wx
Outside Medical Services tjf � � � a 9 t
NOM r ,rr �.,1'.. !f
Contingency Reserve � o"
lf1l�`I
Debt Service Prefunding 2,/
Available/(Unavadable)Bal 405h53t1 (143 j ',
4
Categories and Variance Explanation:
• Member Service Payments—accounts for M&O assessments and debt service payments received from
member cities. Member cities pay 1/12`h of the annual assessment monthly and debt service semi-
annually.
• Contract Agency Payments—accounts for contract bed revenues received from non-member cities.2012
total contract bed revenue of$602K exceeded the annual estimate by $302K or 101%. Year-to-date
revenue from contract agencies totals $378K or 55% of the annual estimate and exceeds year-to-date
2012 total of $88K by $290K or 329%. The increase is due to City of Fife and Department of
Corrections contracts.
• Intergovernmental—accounts for social security incentives for SCORE's reporting of inmates to Social
Security Administration. The incentive to SCORE is based the number of recipients that are suspended
as a result of information provided by SCORE and timing of reporting.
• Charges for Services —accounts for revenues from phones, commissary, private stays, work release.
medical bills for inmates going through treatment paid by cities, notary services, and inmate parking.
The increase of$20K or 83%compared to year-to-date is due to both increase in services and additional
programs implemented.
• Miscellaneous Revenue —accounts for purchasing card rebates, cashiers fees from inmate commissary
cards,and federal fuel tax rebates.
• Salaries & Wages, Benefits —personnel costs for 101 FTES (4 captains, 10 sergeants, 68 correctional
officers and 19 administrative staff). The increased cost in 2013 is due to hiring employees throughout
the year resulting in lower cost in 2012 as well as medical cost increases, pension increases, step
increases.'
• Overtime — The year-to-date increase of$102K is due to providing coverage for unfilled positions in
2012.
• Operating Supplies — includes officer uniforms, general office supplies, and non-inmate related
janitorial supplies. The$16K or 37%decrease compared to year-to-date 2012 is due to start-up costs in
2012. There will still be purchases made in 2013 but not at the same quantities as in 2012. In an effort
to reduce costs, SCORE has required all employees to enroll in payroll direct deposit and implemented
self-service for accessing W-2's therefore reducing the cost of forms.
• Consumables — includes expenses related to inmates such as household supplies, meals, uniforms,
hygiene product,and fuel for vehicles.The$40K or 15%decrease compared to year-to-date 2012 is also
due to start-up costs in 2012. For the most part, cost of consumables will decrease with lower inmate
population, except for meals due to economies of scale. The inmate per meal cost in 2012 averaged
$1.35 compared to the average $1.60 cost per meal during the January and February 2013 due to lower
inmate population. In an effort to reduce costs, SCORE negotiated lower prices for gloves saving
roughly $20K per year in costs (anticipated annual cost of$55K after cost reduction). SCORE is also
purchasing higher quality uniforms and other items to save on replacement costs.
• Professional services—includes attorneys for negotiations,employee background checks,and employee
psychological exams. The $15K or 34% decrease compared to year-to-date 2012 is due to decrease in
number of background checks as part of the hiring process which mostly occurred in 2011 and 2012.
5
• Medical Services — includes contracted medical and dental staff housed at SCORE facility, and
pharmaceuticals. The$56K or 9% increase in medical services compared to year-to-date 2012 is due to
an increase in inmate population requiring prescriptions, a 5% medical services contract increase, an
increase in emergency medical technicians (EMT) and psychiatric nurse hours to provide medical
screening as a result of the increase in the number of bookings.
• Outside Medical Services— accounts for medical services provided outside of SCORE. The $10K or
49% increase in compared to year-to-date 2012 is due to an increase in inmates and/or medical issues
requiring outside medical services. The $400K annual budget is allocated to member cities and is
drawn down with usage. The City's allocation for 2013 is $102K and $4K has been drawn down to
tY
date.
• Other Services and Charges—includes IT maintenance contracts,advertisements,operating rentals(e.g.
postage machine). The $92K or $58% increase compared to year-to-date 2012 is due to annual
maintenance service agreements that were included in the initial purchase and now require annual
payments for maintenance service and a change in categorization of $36K in communications from
utilities to other services and charges in 2013.
• Insurance — accounts for general liability and property insurance provided by Washington Cities
Insurance Authority(WCIA). The $9K or 8% compared to year-to-date 2012 is due to a rate reduction
of 12.5%in general liability premium.
• Utilities—includes water, sewer, gas, electricity,refuse,recycling, and storm drainage utility fees. The
$17K or 9% increase is due to increases in gas, electricity and water due to higher inmate population
offset by a decrease in communications expenses due to a change in categorization of $36K from
utilities to other services and charges in 2013.
• Programs—includes inmate programs(e.g. bible study, alcoholics anonymous). This category has been
combined with the operating supplies.
• Maintenance — includes costs associated with maintaining the.facility, including plumbing, janitorial
and landscape services. The $23K or 53% decrease compared to year-to-date 2012 is due to reducing
frequency of janitorial and landscaping services in an effort to reduce costs.
• Debt Service—Principal and interest payments on bonds issued. The $LIM or 30% increase in debt
service payments is due to the making the first principal payment totaling$1.9M in 2013.
• Intergovernmental— Includes payments to the City of Des Moines for court services and South King
Fire and Rescue for fire services.
• Capital—includes miscellaneous software that was not part of the capital budget. The $90K or 2709%
increase is due to miscellaneous software purchases made in 2012 that were not included in the capital
budget.
MARKETING/CONTRACT BEDS
Beginning in December 2011 the Finance Committee began developing a financial model that became the basis
for the following contract rate structure that the Admin Board approved in March 2012. The contract rate
structure analysis essentially modified the guaranteed bed rate of$125 to a fee structure that varies at different
6
bed commitment numbers and contract duration levels, surcharge for medical inmates and direct cost for major
medical. The non-guaranteed rates remained the same at$135.
Rate Contract Type
$80.00 100 beds or more,multi-year,with rantee
$85.00 50 bed minimum,multi ear,with guarantee
$90.00 Retail,multi-year with guarantee
$135.00 Walk-in,on space,availability basis
.......................... .. .. ............................................................................._......................................................_................
$30.00 Plus surchar a for 3M(mentah medical,mans ement
Plus direct cost for major medical
Guaranteed=pay regardless of use or not
The table below provides a list of contracts for 2012 and year-to-date April 2013, including the billable ADP
and contract revenue:
y
Current Billable`-2012 Annual 'Billable-1TD March 2013 2013 u,, -
Daily Fffecthe Contract Contract
Agency Bed Rate Date Expires Type ADP Reienue 'ADP Resenue ADP ReNenue
City of Algona $ 135.00 1/1/12 12/31/14 Walk-In 1.12 $ 55,485 0.76 $ 9,180 0.79 $ 12,825
Cit y of Bellevue $ 135.00 6/27/12 6/30/15 Walk-In 0.25 1$ 12,150 0.23 $ 2,835 1 0.33 $ 5,265
City of Black Diamond $ 135.00 4/27/11 12131/16 Walk-In 0.01 $ 270 - $ - - $ -
City of Buckley $ 80.00 3/27/13 2/28/14 Walk-In - $ $ $
City of gyde Hill $ 135.00 11/1/11 10/31/16 Walk-In - $ $ $
City ofCovington $ 90.00 4/1/12 12/31/21 4Guaranteed 4.79 $ 171,720 3.57 $ 28,890 4.26 $ 45,990
City of Fife $ 73.00 2/27/13 12/31/21 Walk-In $ 5.26 $ 63,855 22.00 $ 192,720
Town of Hunts Point $ 135.00 10/1/12 12/31/15 Walk-In $ $ m - $
City ofIssaquah $ 135.00 1/1/12 12/31/16 Walk-In $ 0.01 $ 135 0.01 $ 135
City of Kirkland $ 135.00 6129/11 12/31/21 Walk-In $ 135 $ $
City of Mercer Island $ 135.00 5/25/11 12/31/22 Walk-In 0.08 $ 4,050 0.16 $ 1,890 0.14 $ 5
City ofNomrand Park $ 135.00 9/28/11 9/28/21 Walk-In 0.37 $ 18090 0.38 $ 4,590 0.83 $ 13,500
City of Pacific $ 90.00 10/1/12 12/31/21 2 Guaranteed 1.96 $ 78,885 5.00 $ 40,500 4.58 $ 49,500
Port of Seattle $ 90.00 9/1/12 8/14/15 I Guaranteed 0.01 1$ 180 $ - - $ -
Private Parties $ 135.00 Walk-In 0.061$ 2,835 0.50 $ 6,075 0.60 $ 9,720
City ofSno uahnie $ 135.00 2/22112 12J31/17 Walk-In 0.01 1$ 540 0.07 $ 810 0.08 $ U15
US Marshals $ 80.00 Walk-In 0.01 $ 405 - $ 135 0.03 $ 540
USMilita $ 135.00 Walk-In 0.03 $ 1,350 $ 0.03 $ 540
Valley Narcotics Enforcement Team $ 135.00 6127/12 12/31115 Walk-In 0.01 $ 405 0.36 $ 4,320 027 $ 4,320
WA Dept of Corre tions $ 82.40 6/1/13 5/31/15 1 Walk-In 8.93 $ 261,360 33.58 $ 241,760 37.21 $ 357,200
Total 17.62 $607.960 49.86 $ 404,975 71.14 $695,7L5
Exceptions to established contracts rates:
• Department of Corrections(DOC)and US Marshals rates are set by them.There is no flexibility
for SCORE to set or change rates.
• City of Fife provides their own transportation services and does not need video court or other
administrative processing for its inmates. The contracts allows SCORE to periodically evaluate
the rate may, from time to time, and increase the rate for services by providing written notice to
Fife at least 90 days before the effective date of a proposed increase.
• City of Buckley is a short-term contract and they do not expect to send inmates to SCORE.
SCORE has also implemented the work release and day reporting pilot programs with very few if any currently
participating.
Year-to-date April billable contract revenues total $696K which exceeds the annual 2013 revenue estimate of
$690K and also exceeds the 2012 annual total of$302K by$394K or 131%. The increase is due to Department
of Corrections and City f Fife contract beds which account for 79%of the ear-to-date revenue or roughly 51%
ty Y
and 28%,respectively. The number of Fife contract beds increased substantially with April's revenue of$129K
accounting for 67%of the total year-to-date revenues of$193K.
FSC GROUP—CONSULTANT STUDY
In April 2012 the Admin Board approved the contract with FSC Group, Inc. for the purpose of analyzing
SCORE's cost of services, its incremental costs, and contribution formula, to assess SCORE's performance
based on benchmark comparisons with similar facilities, and to research and analyze selected issues, if
necessary.Total cost of the study is not to exceed$34,865.
The following tasks were identified for the study:
Task 1 -Kick Off-Off Meeting and Background Review
Task 2-Interview Key Stakeholders
Task 3 -Develop Cost of Scope and Incremental Cost Framework
Task 4-Identify and Analyze the Current and Incremental Cost of Services
Task 5-Analyze the Current Contribution formula and Develop Potential Alternatives
Task 6-Conduct a Benchmarking Analysis
Task 7-Research and Analyze Selected Issues
Task 8 -Prepare Report and Make Presentations
The study is expected to be completed by July 15, 2013. The results of the study will be considered for 2014
budget,and may also have an impact on the contract rates and operations.
OTHER INFORMATION
SCORE is one of two agencies in the state that was awarded the Prison Rape Elimination Act(PREA) grant, in
cooperation with the US Department of Justice, to support work to establish a zero-tolerance culture for sexual
abuse of SCORE. The grant will be used to bridge the cost difference of converting a budgeted corrections
officer position to a grant captain for a one-year period to assist SCORE in becoming compliant with federally-
adopted standards that will go into effect in August.
SCORE cities have submitted application the State Criminal Alien Assistance Program (SCRAP) to receive
federal payments for incurring correctional officer salary costs for incarcerating undocumented criminal aliens
who have had at least one felony or two misdemeanor convictions,for violations of state or local law, and who
are incarcerated for at least 4 consecutive days during the reporting period July 1,2011 through June 30,2012.
ADDITIONAL INFORMATION
Attached are jail statistics reports provided by SCORE.
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CITY OF
FEDRAC May 28, 2013 .AA�L Federal Way Page 8 of 9
F. CASCADIA VELOCITY QUARTERLY REPORT—Q12013 P.DOHERTY 30 DISCUSSION
10 MINUTES 1:34:20 Information only
Discussion/Changes. Patrick Doherty Community& Economic Development Director 253 835-2612
2012 summary did not make it into packet, Patrick provided a handout(included here)
Discussion of the Summary by CEO—Graham Evans
As requested,Cascadia Velocity is providing the committee with quarterly reports.
Current focus is to raise capital, bring in money from other communities and technology.
Gives example of some current businesses, i.e., industrial cleaner company.
Face challenges,of course,and need to get the word out about Cascadia.
Committee questions/discussion:
0 Chair Duclos raises questions about potential. Did not make numbers is 2012 and it does not look like you will
make numbers for 2013. Chair would like numbers you really can make, numbers in which the Chair would have
confidence; Chair realizes that people like to stretch a little but she would like realistic numbers because when
you make the numbers, people will feel good rather than discouraged.
❖ Councilmember Maloney curious about the name change? Research? According to what she is hearing,she's
not sure Cascadia has enough traction. Discussion with Chair Duclos,Councilmember Maloney,Graham and
Patrick about the name ensues.
40• Councilmember Celski says he understands the challenges of building a business. Wants to know who is the
local competition for clients? Graham not sure who all competing for clients. Starts a conversation about
attracting clients.Graham says he needs to attract clients and to do that he needs exposure. Councilmember
asks if Mirror is willing to give that exposure. Graham indicates that they are.
ti• Councilmember Honda questions projections for 2013?Are you projecting any companies contacting Velocity in
2013? Discussed companies and clients projected and actual for last year and expectations for this year.
❖ Chair Duclos —Patrick next report should be end of July.
Motion: Discussion only, no committee action.
CeMMU Velodty Assodedon
2012 Suerrrharyt
2012 2762 6wt—)
companies brtKrehriewed 30 15
(limeC NIVNIaties 10 3
New jabs Created iS 4
Classroom referrals("Wwm) 20 6
Insane
Cinht bhoorrhe aim 1.310
City of Federal way 30.000 14000
Gram O
Canferenoe bhoome O
Total Nhcorne 38000 »
Eapenwes
Rem 3000 O
salary/CEO 25AM 14,11211
MarkeliM Outreach 2SOD 1550
bhwranoe 700 660
On oe Stwoes 2SO O
(brftrernoe
Professiorhaf Fees[CPA,Bs 500 1948
Taut EgMases 32950 22976
CITY OF
FEDRAC Ma Y 28 2013 & g
Federal Way Page 8 of 9
C ADIA VELOCITY QUARTERLY REPORT 12013 P.DOHERTY 30 DISCUSSION
F. Asc o
4 Q
10 MINUTES 1:34:20 Information only
Discussion/Changes: Patrick Doherty Community& Economic Development Director
253 835-2612
2012 summary did not make it into packet, Patrick provided a handout(included here)
Discussion of the Summary by CEO—Graham Evans
As requested,Cascadia Velocity is providing the committee with quarterly reports.
Current focus is to raise capital, bring in money from other communities and technology.
Gives example of some current businesses, i.e., industrial cleaner company.
Face challenges,of course,and need to get the word out about Cascadia.
Committee questions/discussion:
Chair Duclos raises questions about potential. Did not make numbers is 2012 and it does not look like you will
make numbers for 2013. Chair would like numbers you really can make, numbers in which the Chair would have
confidence; Chair realizes that people like to stretch a little but she would like realistic numbers because when
you make the numbers, people will feel good rather than discouraged.
❖ Councilmember Maloney curious about the name change? Research? According to what she is hearing, she's
not sure Cascadia has enough traction. Discussion with Chair Duclos,Councilmember Maloney,Graham and
Patrick about the name ensues.
ti• Councilmember Celski says he understands the challenges of building a business. Wants to know who is the
local competition for clients? Graham not sure who all competing for clients. Starts a conversation about
attracting clients.Graham says he needs to attract clients and to do that he needs exposure. Councilmember
asks if Mirror is willing to give that exposure. Graham indicates that they are.
Councilmember Honda questions projections for 2013?Are you projecting any companies contacting Velocity in
2013? Discussed companies and clients projected and actual for last year and expectations for this year.
❖ Chair Duclos —Patrick next report should be end of July.
Motion: Discussion only, no committee action.
Caste VeW ty Assoclodon
2012 2612(part-~
Companieson ereviewea 30 is
CRem co n wom 10 3
New Jobs Creaned 1S 4
Ckmsroam referrals(iighoine) 20 6
Irrcame
CNent income 8,,000 1.=
City of Federal War 30,000 7400D
Grwft O
Conference krconre O
Total bwarrre 311.000 196M
Rent 3000 O
Salary/CEO 25.000 14.628
bfarlretire Ounadr 2500 3560
insurance 700 660
Office supplies 250 O
Corrterenrae
Professional Fees(CPA.810W"W s00 1948
Total Eapencrs 31950 ism
CITY OF
FEDRAC May 28, 2013 Federal Way Page 9 of 9
4. OTHER: None
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, .tune 25,2013
Meeting adjourned 7:26 p.m. &4�4
Attest: `�C.�C�
Steve Cain, Executive Assistant
COMMITTEE APPROVAL:
Din[Duclos Bob Celski Susan Honda
Committee Chair Committee Member Committee Member