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FEDRAC Mins 02-25-2014Finance .`A Federal Way City Council ional Affairs Committee SUMMARY 1. CALL TO ORDER Committee Chair Dini Duclos called the meeting to order at 5:31 p.m. Committee Members in Attendance: Committee Chair Dini Duclos, Committee Member Bob Celski and Committee Member Susan Honda. Elected Officials in Attendance: Councilmember Jeanne Burbidge Staff Members in Attendance: Finance Director Bob Noland, Chief of Staff Brian Wilson, City Attorney Pat Richardson, Community & Economic Development Director Patrick Doherty, IT Manager Thomas Fichtner, Community Services Manager Jay Bennett, Financial Analyst Chase Donnelly and Executive Assistant Kathy Arndt 2. PUBLIC COMMENT: None. 3. COMMITTEE BUSINESS: Council Topic Title/ Description Placement A. Approval of Minutes /Summary: November 26, 2013 N/A Committee The committee pointed out that the minutes indicate that Chair Duclos adjourned the Action Only meeting when in fact it was committee member Celski who did so. The change was noted for revision. Motion to approve with the change that Committee member Celski adjourned the meeting. Motion second and carried 3 - 0. B. Approval of Minutes /Summary: January 28, 2014 N/A Committee Motion to approve as presented. Motion second and carried 3 - 0. Action Only C. Fourth Quarter 2013 Report from Cascadia Velocity N/A Discussion Only Mr. Doherty gave a brief history of the City's relationship with Cascadia Velocity over the last two years. He introduced Mr. Graham Evans who would give the organization's final quarterly report. Mr. Evans discussed the challenges the organization has had with sustainability and shared the options the Board identified for going forward. Discussion took place regarding these options and their implications, as well as the current state of involvement of local businesses and the obstacles they face. The committee expressed interest in continuing to pursue opportunities with the incubator, beginning with a solid business plan from Cascadia Velocity. D. Renewal of the Contract with King County for Providing Institutional Network (I -Net) CONSENT Services 3/4/2014 Mr. Fichtner presented his report and explained the relationship the City has with King County to receive various connectivity and network services. The committee inquired regarding the cost and Mr. Fichtner provided additional background as to the charges and services. Motion to approve as presented and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. FEDRAC SUMMARY February 25, 2014, Page 2 of 4 E. Professional Services Agreement with the National Development Council for Technical BUSINESS Assistance Relating to the CDBG Section 108 Loan Fund 3/4/2014 Mr. Bennett presented his report and provided background and a status regarding the services agreement, indicating that he anticipates that the application will be forwarded back to the City with approval and before the City Council for review very soon. He explained the various obligations involved in the establishment of funds, the cost and estimated timeline involved. Discussion took place regarding the placement of the topic on the Council agenda. The committee determined that the item would be moved from Council consent to Council business. Motion to approve and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. F. Amend the Habitat for Humanity Memorandum of Understanding for the West Way CONSENT Project 3/4/2014 Mr. Bennett presented his report and gave background information on two agreements the City entered into with Habitat for Humanity related to the West Way project. He explained each of the proposed amendments the memorandum. Discussion took place regarding homes in the area purchased by Habitat and the organization's plans in that regard. Motion to approve amendments and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. G. Program Year 2014 CDBG Annual Action Plan BUSINESS 3/4/2014 Mr. Bennett gave background on the Annual Action Plan and the timing of the application process due to the availability of information required by the application. He pointed out various portions of the Action Plan and discussion took place regarding those details. The committee inquired regarding various funding portions, to which both Mr. Bennett and Mr. Doherty responded. Discussion took place regarding the outreach methods identified in the plan and additional ways to reach out to the community. The committee discussed where this topic should be placed on the Council agenda. The committee determined that the item would be moved from Council consent to Council business. Motion to approve as presented and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. H. Ordinance Amending the Business Registration Appeals Process ORDINANCE Ms. Richardson provided background regarding the ordinance. 3/4/2014 Motion to approve as presented and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. I. Resolution: Modifying the Vehicle and Equipment Policy to Change Asset RESOLUTION Capitalization Threshold 3/4/2014 Mr. Noland provided detail on the City's current fixed asset capitalization threshold and discussed the recommended change and the challenges it poses. Implications of the change were discussed and the committee asked several questions regarding those details, to which Mr. Noland responded. Motion to approve as presented and forward to the March 4, 2014 Council meeting FEDRAC SUMMARY February 25, 2014, Page 3 of 4 for approval. Motion seconded and carried 3 - 0. J. Score Update N/A Discussion Only Mr. Noland gave his staff report, which included statistics and financial detail for the first month of the year. He drew attention to several areas of the report, including the fact that the average daily population (ADP) continues to exceed budget estimates. The initial 2014 budget was based on an ADP of 450 was later revised to 550. The average ADP over the past several months has been 650. Eight new correctional officer positions were approved last year and twelve this year, plus three new administrative personnel. Mr. Noland also mentioned that inmate housing agreements have been executed with the Cities of Kirkland, Lynnwood and Duvall. Discussion took place regarding the details of the report and structure of SCORE and the committee asked several questions regarding those details, to which Mr. Noland and Mr. Wilson both responded. The committee expressed interest in knowing how much the City is paying to participate in SCORE and ensuring that the relationship realizes a savings for the City. Ms. Richardson and Mr. Noland both responded. The committee asked that this topic be included in the next SCORE update provided. K. December 2013 Monthly Financial Report CONSENT 3/4/2014 Mr. Noland gave his year -end staff report and highlighted key areas, indicating that the City's financial standing is positive overall. Revenues are above the annual budget by $941 K or 2.8% with all revenues on target or above annual budget except for public works permits and fees. Expenditures are under annual budget by $2.6M or 6.2% with all departments below estimates except for the jail, which exceeds annual budget estimates due to work release and alternatives to confinement programs. Sales tax exceeds annual 2012 by $812K or 7.7% and exceeds annual budget by $154K or 1.4% Red light photo /school zone cameras annual net revenue totals $2.13M and is below annual 2012 by $130K or 5.7%. The committee inquired regarding a portion of the Designated Operative Fund Summary and discussion took place regarding this area of the report. Motion to forward approval of the December 2013 Monthly Financial Report to the March 4, 2014 consent agenda for approval. Motion seconded and carried 3 - 0. L. 2014 Carry- Forward Budget Adjustment ORDINANCE Mr. Noland highlighted key areas in his year -end carry- forward budget adjustment 3/4/2014 report. The committee inquired regarding the change in fund balance and whether the City has been using those funds for operations this year, with which Mr. Noland agreed to follow up. Motion to approve as presented and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. M. Vouchers CONSENT Mr. Noland presented the vouchers for the review of the committee. 3/4/2014 The committee inquired and discussion took place regarding several areas of the FEDRAC SUMMARY February 25, 2014, Page 4 of 4 vouchers. Mr. Noland agreed to follow up with additional information regarding those questions. Discussion took place regarding the format of the vouchers packet and several desired changes. Motion to approve as presented and forward to the March 4, 2014 Council meeting for approval. Motion seconded and carried 3 - 0. 4. OTHER: None. 5. FUTURE AGENDA ITEMS 6. NEXT MEETING: Tuesday, March 25, 2014 Chair Duclos adjourned the meeting at 7:05 p.m. COMMITTEE Councilmember Dini Duclos Committee Chair Councilmember Bob Celski Committee Member Assistant to the Mayor Councilmember S� Committee Member N1Al2r114 M00 Q,E