FEDRAC Mins 08-26-2014Finance /Economic
CITY Df
Federal Way
City Council
SUMMARY
Committee
1. CALL TO ORDER Committee Chair Dini Duclos called the meeting to order at 4:30 p.m.
Committee Members in Attendance: Chair Dini Duclos, Councilmembers Bob Celski and Martin
Moore.
Elected Officials in Attendance: Deputy Mayor Jeanne Burbidge and Councilmember Lydia Assefa-
Dawson.
Staff Members in Attendance: Finance Director Ade Ariwoola; Interim City Attorney Amy Jo Pearsall;
Human Services Technician Denise Catalano; and Finance Support Trudy Crozier.
2. PUBLIC COMMENT: Diana Noble - Gulliford, a member of the Planning Commission, expressed
concern and offered suggestions regarding the Weyerhaeuser campus. Chair Duclos, asked Mr.
Ariwoola to find out what it might cost the city to do an economic development study.
Chair Duclos, introduced Laura Moser, from Waste Management.
3. COMMITTEE BUSINESS:
Topic Title/ Description
A. Approval of Minutes /Summary:
Councilmember Celski motioned to amend the minutes from July 22, 2014 to reflect
Councilmember Martin Moore excused from the FEDRAC meeting held on that date,
and approve amended July 22, 2014 minutes. Motion seconded and carried 3 - 0.
B. HUD Section 108 Loan Guarantee Program Funding Agreement
Ms. Catalano presented a brief history and overview of the above agreement. She
explained that this loan agreement authorizes the City to have the loan fund
agreement, and a loan closing due date of September 15, 2015.
Councilmembers inquired on the verbiage on page 7 regarding additional security,
and the expiration date, to which Mr. Ariwoola and Ms. Catalano responded.
Motion to approve as presented. Motion seconded and carried 3 - 0.
C. Creation of Federal Way Economic Redevelopment Zone Resolution
Mr. Ariwoola discussed and explained the need for this Resolution. He further explained
how the Resolution will enhance the application process and assist in obtaining future
funding. He also discussed the map provided.
Councilmembers discussed and requested that this item be changed from the
Consent Agenda to the Business Agenda, with a brief presentation, by Mr. Ariwoola, to
the Council.
Ms. Noble - Gulliford inquired what the impact this Resolution will have on current
property owners and potential buyers
Council
Placement
N/A
Committee
Action Only
CONSENT
9/2/2014
BUSINESS
9/2/2014
FEDRAC SUMMARY
August 26, 2014, Page 2 of 3
Discussion ensued among Councilmembers about Weyerhaeuser leaving and the
impact it could have on the City of Federal Way. Mr. Ariwoola stated that there will be
many new opportunities available to the City with the departure of Weyerhaeuser.
Motion to approve moving this agenda item from consent to the full Council Business
Agenda on September 2, 2014 for approval. Motion seconded and carried 3 - 0.
D. Budget Process Update
N/A
Mr. Ariwoola shared a brief overview of the budget process: revenue projection,
Discussion Only
balanced budget, and identifying the true spending and the true revenue.
Councilmembers inquired, and discussed the budget process. Councilmembers
responded favorably to Mr. Ariwoola's budget breakdown, simplification, and more
direct approach to the financial report.
E. Score Report
N/A
Mr. Ariwoola reported on and discussed the July SCORE report. He stated that SCORE
Discussion Only
is doing very well.
Councilmembers inquired about SCORE's 2015 funding. Discussion ensued regarding
the City's payment to SCORE and the City's ADP. Councilmembers expressed their
delight at the success of SCORE and how it is fulfilling its design.
Councilmember Celski inquired about the summary of positions, on page 34, to which
Ms. Pearsall responded that she would follow up with the Chief of Staff.
F. July 2014 Monthly Financial Report
CONSENT
Mr. Ariwoola presented, discussed, and highlighted the following areas:
9/2/2014
• Page 104, the Property Tax, and Sales Tax are doing reasonably good.
• Page 109, Utility Tax, doing reasonably well.
• Page 1 10, Federal Way Community Center, doing better than
expected performance, doing reasonably well.
• Page 110, Traffic Safety Red Light Photo Enforcement revenues are
down.
• Page 121, Self- Insurance Fund, separating funds, doing well.
• Page 122, PACC 9.5 mil in fund as of the end of July.
• Page 122, Downtown Square Park funds were included in this report.
Councilmembers inquired about the Self- Insurance fund and possible reasons why that
fund is doing so well, to which Mr. Ariwoola responded to the building up of the fund as
recommended.
Councilmembers directed their attention to the Fund Activity Summary, pg. 123, and
recommended to add a column to include `fund minimum', to which Mr. Ariwoola
agreed to add.
Motion to approve as presented and forward to the September 2, 2014 Council
Meeting for approval. Motion seconded and carried 3 - 0.
G. Vouchers 58:09- 1:10:00
CONSENT
Councilmembers inquired and discussed: energy efficiency improvements made to
9/2/2014
the FWCC; sales tax revenue from on -line office supplies ordered, and new vehicle
purchases: fuel, and cost per gallon; and police overtime; to which Mr. Ariwoola
responded.
FEDRAC SUMMARY
August 26, 2014, Page 3 of 3
Councilmembers discussed and recommended receiving the Voucher report in a
more identifiable format, such as, adding a code or page number, to which Mr.
Ariwoola agreed to include.
Councilmember Celski requested that Chief Andy Hwang update the presentation
`Who's Where in the Pipeline and Process' and present it to the Committee
Duclos' inquired as to the GFOA dues, to which Mr. Ariwoola responded.
Motion to approve the July 2014 Financial Report as presented and forward to the
September 2, 2014 Council Meeting for approval. Motion seconded and carried 3 - 0.
4. OTHER: Mr. Ariwoola stated that an additional report will be forthcoming from the State Auditor's
Office. He discussed the current language used in the report, and clarified what incident the report
referred to. The report will be released soon, and Councilmembers will receive a copy.
5. FUTURE AGENDA ITEMS
6. NEXT MEETING: Tuesday, October 28, 2014 at 4:30 PM.
Chair Duclos adjourned the meeting at 5:41 p.m. , �_- 7f)
Attest:
Trudy Crozier
Finance Support
COM YEA'I ROY AL: I �
Councilmember Dini Duclos Councilmember Bob Celski Councilmember Martin Moore
Committee Chair Committee Member Committee Member