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FEDRAC Mins 06-24-2014 Ci•OK Federal Way City Council Finance /Economic Develo • ment /Re • ional Affairs Committee Tuesday, June 24, 2014 Federal Way City Hall 5:30 p.m. Hylebos Conference Room SUMMARY 1. Call to Order: Committee Chair Dini Duclos called the meeting to order at 5:30 p.m. Committee in Attendance: Committee Chair Dini Duclos, Committee Member Bob Celski and Committee Member Martin Moore Elected Officials in Attendance: Deputy Mayor Jeanne Burbidge, Councilmember Susan Honda, Councilmember Kelly Maloney Staff Members in Attendance: Finance Director, Ade' Ariwoola; Chief of Staff, Brian Wilson; Assistant City Attorney, Peter Beckwith; PACC Project Director, Ken Miller; Community Services Manager, Jeff Watson; Executive Assistant to the Mayor, Kathy Arndt; and Executive Assistant to the Finance Director, Trudy Crozier 2. Public Comment: None 3. COMMITTEE BUSINESS: Council Topic Title /Description Placement A. Approval of Minutes /Summary: June 24, 2014 N/A Committee Motion to approve as presented. Motion second and carried 3 - 0. Action Only B. Home Investment Partnerships Program Inter -Local Agreement ACTION Mr. Watson presented his item; giving background to the Home Investment Partnerships 7/1 Council Program Inter -Local Agreement. He stated the reason for bringing this item before the Consent council was to renew or not renew the 2015 through 2017 Home Investment Partnerships Program Inter -Local Agreement. Discussion took place and the committee inquired as to who attends the JRC meetings, what cities are part of the Consortium of King County, costs and risks, and the possibility of a local Consortium, to which Mr. Watson responded. Motion to approve and forward to the July 1, 2014 Council meeting. Motion seconded and carried 3 -0. C. Toys R Us Demolition Project, Change Order #1, Demolish the Building Concrete Slab and Haul ACTION Away 7/1 Council Mr. Miller presented his findings and provided background as to the decision to propose Consent ChanOe Order #1. Discussion took place regarding the cost of the entire project and the projected savings it would provide. Questions were asked by the committee, to which Mr. Miller responded. Motion to approve and forward to the July 1, 2014 Council Meeting. Motion seconded and carried 3 - 0. D. Ordinance: Amending FWRC 12.45 Taxicabs ACTION 7/1 Council Mr. Beckwith presented the proposed ordinance that would allow the City of Federal (First Reading) Way tb go back to the 1991 'Adopt by Reference' King County code that regulates Taxis'. Motion to approve as presented and forward to the July 1, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. FEDRAC SUMMARY June 24, 2014, Page 2 of 3 E. Resolution: Inter -Fund Loan for Performing Arts and Conference Center ACTION Mr. Ariwoola presented his report, and explained that the purpose of this resolution is a 7/1 Council self- funded, three year, temporary loan to get a project started, and provided Business background to the Inter -Fund Loan. He discussed the financial advantages this Inter - Fund Loan would have for the city. Questions were asked by the committee, to which Mr. Ariwoola responded. Discussion ensued surrounding the repayment schedule of this Inter -Fund Loan. Mr. Ariwoola explains the City's current repayment schedule of bonds. Committee requests that this topic be placed on Council Business instead of Consent. Motion to approve as presented and forward to the July 1, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. F. Ordinance: 2014 Budget Adjustment ACTION Mr. Ariwoola presented the proposed ordinance that would allow for having separate 7/1 Council accounts instead of all the money in a General Fund. He continued to explain the (First Reading) benefits of segregating accounts. Adopting this ordinance would address the following questions: How much have we put into this fund? How much have we paid out? How much is left? Motion to approve as presented and forward to the July 1, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. G. Washington State Auditor's Office (SAO) Entrance Conference N/A Mr. Ariwoola briefed the counsel regarding the State Auditor's Office (SAO) Entrance Discussion Conference. The (SAO) Entrance Conference is a way of telling us the (SAO) is here. Mr. Ariwoola explained the following audits: Accountability Audit, Financial Statement Audit, and the Single Audit. He stated that these audits will be finished before the end of July 2014. Councilmembers inquired about how the audit is going, conclusions and recommendations, to which Mr. Ariwoola responded favorably. Discussion ensued surrounding a Performance Audit. The committee asked that a five minute presentation /discussion of a Performance Audit be placed on next month's agenda. H. How to Inform the Citizens on the City's Current Tax Structure N/A Mr. Ariwoola distributed the memo 'Evaluating City's Taxes' which summarizes the city's Discussion current tax structure. The committee commends Mr. Ariwoola for the memorandum he wrote 'Evaluating City's ifaxes'. Committee members respond favorably to the memorandum and state that the memorandum is easy to read, understand, and very useful. They are enthusiastic about using and sharing this data in a variety of ways and forums. Mr. Ariwoola lead a discussion on the memorandum 'Evaluating City's Taxes' and the purpose for bringing it before the committee. The committee asks that a power point be created to be used at a full council meeting, referred to during the budget process, and uploaded to the web page. The committee inquired as to when the budget process will begin. Mr. Ariwoola responded, once the budget ordinance is approved then a report will be generated breaking out the funds, and presented at a meeting in July or August 2014. The committee asks that this discussion be placed on Council's Agenda Setting meeting. FEDRAC SUMMARY June 24, 2014, Page 3 of 3 I. Score Update N/A Mr. Ariwoola presented his report and stated that SCORE is in the process of setting the Discussion rate for the non - members for 2015. Only What the City Of Federal Way pays is based on the number of beds consumed in the previous year. Discussion ensued surrounding how SCORE sets their rate and whether the cost is competitive. Mr. Ariwoola explained how the rate is set in a comparable market and what it is costing them in labor costs. Mr. Wilson provided background regarding the fluctuation of the SCORE population. J. Monthly Financial Report for May 2014 CONSENT Mr. Ariwoola presented and focused on the new additions to this report located on 7/1/2014 page 129; such as, the Debt for City Of Federal Way. This section identifies how much we really owe; who we owe; and what is our capacity. Mr. Ariwoola explained the meaning and requirements of councilmanic and how it applies to the payment of debts. Committee members inquired about debts owed and the schedule of payments, to which:, Mr. Ariwoola responds. Mr. Ariwoola stated that the Community Center is doing very well. Their revenue is ahead of the budget, and their spending is below the budget. Disculsion took place regarding PACC's funding. The committee inquired how the Financial Report will identify the sources of funding for PACC, to which Mr. Ariwoola responded. Motion to forward approval of the May 2014 Monthly Financial Report to the July 1, 2014 consent agenda for approval. Motion seconded and carried 3 - 0. K. Vouchers CONSENT Mr. Ariwoola presented the vouchers for the review of the committee. 7/1/2014 The Committee inquired about the Refund for Unused COPS Grant, pg149, to which Mr. Ariwoola responds, we were not able to spend the money before the Grant expired. Discussion took place regarding Verizon Wireless, pg 136, to which Mr. Ariwoola responded. Motioh to approve as presented and forward to the July 1, 2014 Council Meeting for approval. Motion seconded and carried 3 - 0. 4. Other: None. 5. Future Agenda Items: Committee Chair Duclos asks that a 5 minute presentation regarding a Performande Audit be placed on next month's Agenda. She would like the discussion to include what it is, and who is responsible for it. 6. Next Meeting: Tuesday, July 22, 2014 @ 4:30 pm. Chair Duclos adjourned the meeting at 6:35 p.m. - Attest: Trudy Crozier Executive Assistant to the Finance Director CO E APPRO L: ■ cop Councilmeimber Dini Duclos Councilmember Bob Celski Councilmember Martin Moore Committee Chair Committee Member Committee Member