FEDRAC MINS 07-23-2013Tuesday, July 23 Federal Way City Hall
5.30 p.m. 2013 Hylebos Room
Meeting Summary
(Presented for Approval — August 27, 2013)
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
*Additional materials may also be distributed for review /action during the meeting
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, AUGUST 27, 2013
Committee Members: (Council Members) City Staff:
Dini Duclos, Chair Tho Kraus, Finance Director 253 835 -2520
Bob Celski Steve Cain, Executive Assistant 253 835 -2402
Susan Honda
Action
Topic title /Description
Presenter
Page*
or Discussion
A.
APPROVAL OF MINUTES/SUMMARY: JUNE 25, 2013
S. CAIN
2
APPROVAL
07/23 Committee
B.
AMENDMENT TO FUSION'S 2013 CDBG CERF AWARD
J. BENNETT
6
CONSENT
08/06 Council
..............
C.
CDBG MICROENTERPRISE LOAN TO UNIVERSAL CARTRIDGE USA, LLC
J. BENNETT
14
CONSENT
08/06 Council
D.
DESIGNATION OF DUMAS BAY CENTRE AS A HISTORICAL SITE
R. ETTINGER
84
DISCUSSION
Information only
E.
JANITORIAL SERVICES FOR DUMAS BAY CENTRE
R. ETTINGER
87
CONSENT
08/06 Council
F.
2ND Q REPORT— HCC SMALL BUSINESS DEVELOPMENT CENTER — RICH SHOCKLEY
P. DOHERTY
90
DISCUSSION
Information only
G.
2ND Q REPORT — CASCADIA VELOCITY - GRAHAM EVANS
P. DOHERTY
95
DISCUSSION
Information only
H.
INTERLOCAL AGREEMENT W/LAKEHAVEN UTILITY DISTRICT FOR MANAGING GRANT
M. SALLOUM
100
CONSENT
FUNDS FOR THE DISTRICT'S DOWNTOWN SEWER PROJECT
08/06 Council
1.
KC RSO COST REIMBURSEMENT AGREEMENT
B. WILSON
104
CONSENT
08/06 Council
I
SCORE UPDATE
T. KRAUS
116
DISCUSSION
Information only
K.
MONTHLY FINANCIAL REPORT FOR JUNE 2013
T. KRAus
130
.........
CONSENT
08/06 Council
L.
VOUCHERS
T. KRAUS
145
CONSENT
08/06 Council
*Additional materials may also be distributed for review /action during the meeting
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, AUGUST 27, 2013
Committee Members: (Council Members) City Staff:
Dini Duclos, Chair Tho Kraus, Finance Director 253 835 -2520
Bob Celski Steve Cain, Executive Assistant 253 835 -2402
Susan Honda
CITY OF
FEDRAC August 27, 2013 Page 2 of 7
1. CALL TO ORDER
By: Councilmember Duclos - Chair
Time: 5:30 P.M.
Committee Members in attendance:
Din! Duclos _x_ Bob Celski _x_ Susan Hondo x_
Other Council Members and /or elected officials in attendance:
• Jeanne Councilmember Burbidge
• Diana Noble - Gulliford
Staff in attendance (x):
• Tho Kraus
Finance Director
253 835 -2520
• Heather Dunnachie
Law
253 835 -2562
• Pat Richardson
City Attorney
253 835 -2570
Brian Wilson
Chief of Police
253 835 -6711
• Stephan Neal
Commander
253 835 -6717
Thomas Fichtner
IT Manager
253 835 -2547
• Jay Bennett
Community Services Manager
253 835 -2650
Skip Priest
Mayor
253 835 -2410
• Patrick Doherty
Community & Economic Development Director
253 835 -2612
• Rich Shockley
Small Business Development Center
• Graham Evans
CEO of Cascadia Velocity
Cary Roe
Director -PW, Parks, Recreation and Culture
253 835 -2710
Jean Stanley
Human Resources Manager
253 835 -2532
Rob Van Orsow
Solid Waste & Recycling Coordinator
253 835 2770
• Marwan Salloum
P.E., Deputy Public Works Director
253 835 -2720
Ken Miller
Deputy Public Works Director
253 835 -2711
• Rob Ettinger
Parks, Recreation & Cultural Services — DBC
253 835 -2002
2. PUBLIC COMMENT
There were no public comments.
3. COMMITTEE BUSINESS
Action
Topic Title /Description Presenter Page* or Discussion
A. APPROVAL OF MINUTES /SUMMARY: JUNE 25, 2013 S. CAIN 2 APPROVAL
:11 07/23 Committee
Discussion /Changes: Steve Cain, Executive Assistant
253 835 -2402
Motion: Councilmember Celski moves to accept the minutes for the June 25, 2013 FEDRAC meeting — second and
passed.
Councilmember Honda was not present at last month's meeting and abstained from voting.
AAL CITY OF
FEDRAC August 27, 2013 Way Page 3 of 7
B. AMENDMENT To FUSION'S 2013 CDBG CERF AWARD J. BENNETT 6 CONSENT
:52 08/06 Council
Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650
Jay Bennett discusses the Agenda Bill with Committee comments and questions during the discussion.
❖ Councilmember Celski questions the increase in the amount that was originally awarded. Jay Bennett confirmed
that it was about 33%. He also questioned if the original amount was not enough to purchase a 3 bed 2 bath
home for $175,000 that did not need substantial improvement. Jay Bennett noted the market was moving
quickly and more funds were needed to respond quickly without FUSION investing their own money into
improvements as the City money is specifically for acquisition only. Councilmember Celski questioned whether
FUSION was hoping for full funding or if it was expected. Mr. Bennett opined that $200,000 would be sufficient
and that full funding was expected. Councilmember Celski also questioned whether the City has donated to the
upcoming FUSION fundraiser. Mr. Bennett answered that he does not believe the City has donated.
❖ Councilmember Honda questioned what would happen should other groups ask for more money. Mr. Bennett
stated that he must look at the intent of the original ask and whether more funding would be for additional
services or to deliver the same services as originally asked for. Councilmember Honda questioned whether Mr.
Bennett would think its ok if they were to come back for more funding if they find $200,000 to be insufficient.
Mr. Bennett explained he would have to evaluate what houses they had looked at.
❖ Councilmember Burbidge questioned the environmental work and whether the cost of that would come out of
this funding. Mr. Bennett confirmed that it would and discussed the environmental review.
❖ Councilmember Celski asked about the amount in CDBG funds that was uncommitted. Jay estimates $257,000
carry forward for next year which includes the allocation of this $25,000. Councilmember Celski expressed
concern about other, better uses for the money with the economy now picking up.
❖ Chair Duclos asked if other-agencies have had the city cover the total cost of real property purchases. Mr.
Bennett says that within the last year that he has been employed with the city, no other agencies have. Chair
Duclos questioned why this came to this Committee. Mr. Bennett explained that the original request came to
FEDRAC as well.
❖ Councilmember Celski expressed his concern that the funds may be needed for other projects during the rest of
the year.
Motion: Councilmember Honda moves to forward to the August 6th Consent Agenda for approval the Human Services
Commission's recommendation to amend the PY 2013 CDBG CERF award to FUSION by awarding an additional
$25,000, for a total amount not to exceed $200,000 for the acquisition of a single- family house in Federal Way, while
retaining the Conditions of Funding — second and passed.
C. CDBG MICROENTERPRISE LOAN TO UNIVERSAL CARTRIDGE USA, LLC J. BENNETT 14 CONSENT
11:36 08/06 Council
Discussion /Changes: Jay Bennett Community Services Manager 253 835 -2650
Jay Bennett discussed the agenda bill with additional information from the Loan Review Advisory Committee's
recommendation and addressed issues of confidential information.
❖ Chair Duclos asked if the credit score item should be pulled from Consent Agenda. Pat Richardson
recommended it be put on Council Business.
❖ Councilmember Honda asked about the applicants' understanding of what is and is not public information. Mr.
Bennett explained business records, social security numbers, and credit scores cannot be disclosed.
❖ Councilmember Celski questioned the letter of recommendation and issues in item 2. Mr. Bennett explained
that it had been updated in the revised agenda bill and talked about the process of approval of the application
and that the applicant gave reasoning for collection issues.
CITY OF
FEDRAC August 27, 2013 Federal a Page 4 of 7
❖ Councilmember Celski asked about the applicant's own investment into the business. Mr. Bennett confirmed
that the applicant has committed his own investments as well.
❖ Councilmember Celski addressed the applicant regarding the business plan and sales to businesses in Africa.
Applicant says 100% of business will be in U.S. Starting in King County and focusing on minority businesses. He
will potentially explore business outside of the U.S in the future.
❖ Councilmember Honda asked if this item was going to council business. Chair Duclos and Councilmember Celski
clarify that it was going on the consent agenda.
Motion: Councilmember Celski moves to forward the Universal Cartridge USA, LLC's CDBG Microenterprise Loan
application in the amount of $18,500 with the funding terms and conditions recommended by the CDBG Loan Review
Committee to the August 6, 2013 Consent Agenda for approval - second and passed.
D. DESIGNATION OF DumAs BAY CENTRE AS A HISTORICAL SITE R. ETTINGER 84 DISCUSSION
23:17 Information only
Discussion /Changes: Rob Ettinger Parks, Recreation & Cultural Services — DBC 253 835 -2002
Rob Ettinger discusses the agenda bill and Patrick Doherty adds additional information.
Comments /Discussions:
❖ Patrick Doherty added information regarding an ordinance for designation of a historical site. The ordinance
could include designation and controls.
❖ Chair Duclos asks about the next step — Patrick says the city would have to create the ordinance and complete
the public process.
❖ Councilmember Burbidge says she would like more information including amount of staff time and potential
limitation before moving forward. She asked how much the city could control with regard to changes to the
building. Patrick explained the public process for the ordinance and benefits to city.
❖ Councilmember Honda asked if changes created to the building might prevent it from being qualified as
historical. Patrick says that that could be the case.
❖ Councilmember Burbidge asks about awareness of cost for services from King County Landmarks Commission.
Patrick says that would be an issue but cost had not been addressed at this time.
❖ Councilmember Honda says she believes it's important to have this and would like to see this ordinance and
take the next step. Chair Duclos asks if we need to make this a higher priority. Patrick says issue is with Planning
Staff time and not Planning Commission.
❖ Councilmember Noble- Gulliford discussed the other historical sites in Federal Way and possible grant
opportunities.
❖ Chair Duclos asked if we could do something in FEDRAC about the ordinance. City Attorney Richardson stated it
will flow from planning commission and that process would take it to the Land Use and Transportation
Committee (LUTC). The Issue should be brought to LUTC and then go to full council to modify work program to
allow for higher priority.
❖ Chair Duclos asked who would develop the ordinance. City Attorney Richardson stated that staff would develop
the ordinance and then it would go through the public process starting with the planning commission. Patrick
adds discussion about the process and background work.
❖ Chair Duclos asked for an estimate of how much time this would take to process with low priority.
❖ Councilmember Celski expressed that other things should be prioritized higher than the historical preservation.
❖ Patrick stated additional staff may be necessary to address the issue of more permits. Councilmember Honda
asked about last Novembers talks about additional staff being added. Patrick explained that was specifically
about temporary hire and they would bring back the issue of more staff if it was needed.
Motion: Discussion, information only, no committee action.
CITY OF
FEDRAC August 2 7 2013 Fe 0-11 era I Way
Page 5 of 7
E. JANITORIAL SERVICES FOR DUMAS BAY CENTRE R. ETTINGER 87 CONSENT
43:37 08/06 Council
Discussion /Changes: Rob Ettinger Parks, Recreation & Cultural Services— DBC 253 835 -2002
Rob Ettinger discusses the agenda bill.
Motion: Councilmember Celski moves to forward the authorization of a 3 year contract for janitorial services in the
amount of $183,600.00 to Cedar Building Service, Inc. and authorize the Mayor to execute said agreement to the full
Council August 6, 2013 consent agenda for approval — second and passed.
F. 2 "° Q REPORT— HCC SMALL BUSINESS DEVELOPMENT CENTER — RICH SHOCKLEY P. DOHERTY 90 DISCUSSION
45:50 Information only
Discussion /Changes: Patrick Doherty Community & Economic Development Director 253 835 -2612
Rich Shockley presented on the agenda bill and gave a handout regarding funding.
❖ Chair Duclos asked what "new jobs" means. Mr. Shockley says either new business creating employees or
established businesses adding new employees.
❖ Citizen Jamie Davis, owner of CEIBA Acupuncture in Federal Way addressed the committee regarding her
experience with SBDC.
Motion:Discussion, information only, no committee action.
G. 2ND Q REPORT— CASCADIA VELOCITY - GRAHAM EVANS
P. DOHERTY 95
57:40
DISCUSSION
Information only
Discussion /Changes: Patrick Doherty Community & Economic Development Director 253 835 -2612
Graham Evans presented on the agenda bill and provided 4 year projections.
❖ Mr. Evans mentioned three breaking news items.
• Cascadia Velocity has been asked to participate in planning and running the annual South Sound Startup
Weekend.
• Cascadia Velocity has been asked to manage the process of supporting innovations of employees of King
County as part of a drive for innovation within the County.
• Discussed building Entrepreneur fund with Jay Bennett.
Motion: Discussion, information only, no committee action.
H. INTERLOCAL AGREEMENT W /LAKEHAVEN UTILITY DISTRICT FOR MANAGING GRANT M. 100 CONSENT
FUNDS FOR THE DISTRICTS DOWNTOWN SEWER PROJECT SALLOUM 1:05:03 08/06 Council
Discussion /Changes: Marwan Salloum P.E Deputy Public Works Director 253 835 -2720
Marwan Salloum presented on the agenda bill.
Committee questions /discussions:
❖ Councilmember Celski asks about the project on 201h and 3201h and if any of that will have to be undone.
Marwan says this project will not interfere with that.
Ak CITY OF
FEDRAC August 27, 2013 dera I Way
Page 6 of 7
❖ Councilmember Noble - Gulliford asks what would happen if they don't get the right of way they are asking for —
Marwan says they have the authority to condemn. Councilmember Noble - Gulliford also asks about the
easement through Belmore Park. Marwan says that they do have and easement today but will not use the same
easement.
Motion: Councilmember Honda moves to forward Option 1 to the August 6, 2013 consent agenda for approval —
second and passed.
1. KC RSO COST REIMBURSEMENT AGREEMENT B. WILSON 104 CONSENT
1:16:05 08/06 Council
......
Discussion /Changes: Brian Wilson Chief of Police 253 835 -6711
Commander S. Neal presented on the agenda bill.
Committee questions /discussions:
❖ Councilmember Noble - Gulliford asked about conditions on some of the sex offenders and if that was a part of
the assessment and what happens if they violate those conditions. Commander Neal stated that it's a technical
violation and they would submit paperwork to King County to rectify the situation.
Motion: Councilmember Celski moved approval of the King County Registered Sex Offender Reimbursement
Agreement to the August 6, 2013 Consent Agenda — second and approved.
I SCORE UPDATE
Discussion /Changes: Tho Kraus
Tho Kraus presented on the agenda bill.
Finance Director 253 835 -2520
T. KRAUS 116 DIScussION
1:20:53 Information only
Committee questions /discussions:
❖ Councilmember Celski asked about coloring on the bar graph and which city it represents. Tho confirmed it was
Fife.
❖ Councilmember Burbidge questions whether taking over more space will create need for more staff. Tho
confirmed and states composition of the population also plays a role.
Motion: Discussion, information only, no committee action. °
K. MONTHLY FINANCIAL REPORT FOR JUNE 2013 T. KRAUS 130 CONSENT
1:26:09 08/06 Council
Discussion /Changes: Tho Kraus Finance Director 253 835 -2520
Tho Kraus discuss the agenda bill
❖ Councilmember Celski asked about State Shared revenue and if it should go in another area on the financial
statement as well. Tho explains it is part of our allocation and direct revenues and is looking just at transfers in
and out.
❖ Councilmember Celski asked about decrease in red light photo tickets and that most of the decrease was in the
past two months. Tho explains that education may play a role in that and timing of payment.
CITY OF
FEDRAC August 27, 2013 Federal Way
Page 7 of 7
❖ Councilmember Celski questions the bad debt expense last year for the community center and that this year
nothing was budgeted or actual. Tho explained the city cleaned up and reconciled a lot of old accounts from the
start of the Community Center.
❖ Councilmember Celski commented on graph for the FWCC Financial Performance and advised staff to make a
presentation at a council meeting with this graph as the foundation.
❖ Councilmember Celski asked about the Fund Activity Summary and CDBG fund being negative $36,000. Tho
explained this was due to timing of reimbursements.
Motion: Councilmember Celski moves to forward approval of the June 2013 Monthly Financial Report to the August 6,
2013 consent agenda for approval — second and pass.
L VOUCHERS
Discussion /Changes: Tho Kraus
Finance Director 253 835 -2520
❖ Chair calls for questions, there are none.
T. KRAUS 145 CONSENT
1:37:07 08/06 Council
Motion: Councilmember Celski moves approval of the vouchers and forward to the August 6, 2013 Council Meeting
for approval —second and passed.
4. OTHER: None
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, August 27, 2013
Meeting adjourned 7:08 p.m.
COMMITTEE APPROVAL:
r
Councilmember Din! Duclos
Committee Chair
Attest:
Heather Dunnachle Law
►cilmember Susan Honda ! Councilmember Bob Celski
Committee Member Committee Member