FEDRAC MINS 10-22-2013Finance
Federal Way
City Council
SUMMARY
ional Affairs Committee
1. CALL TO ORDER Chair 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, Councilmember Diana Noble -
Gulliford.
Staff Members in Attendance: Interim Finance Director Bob Noland, City Attorney Pat Richardson, Public
Works Director Cary Roe, Police Chief Brian Wilson, Human 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: September 24, 2013
N/A
Committee
Motion to approve as presented. Motion seconded and carried 3 - 0.
Action Only
B. Fall 2013 Tourism Enhancement Grant (TEG) Applications
CONSENT
11/5/" -'013
Mr. Bennett explained that the Lodging Tax Advisory committee has screened and
identified applicants who it recommends receive a total of $18,500 of Tourism
Enhancement Grant funds. He introduced Jenny Vasquez of the Lodging Tax
Advisory Committee who gave an overview of the application and awarding
process, as well as the rational used by the committee to determine which
applicants they recommend be awarded.
Discussion ensued regarding the various applicants, the funding rational and funds
available and allocated.
The committee commented on the possibility of some of the events discussed
moving to the proposed Performing Arts and Conference Center, should that project
come to fruition.
A motion was made to forward approval of the Fall 2013 TEG awards, as
recommended by LTAC, to the November 5, 2013, City Council consent agenda.
Motion seconded and carried 3 - 0.
C. Community Center Splash Cafe Operations
CONSENT
1 1 15 /"2'013
Mr. Nelson gave a brief history of the cafe operations and the center's proposal to
operate the cafe internally instead of contracting with a vendor, as has been done
in the past.
Discussion took place regarding the potential of the cafe, its previous financial
performance and various best practices for success.
The committee voiced support for the idea of managing the operations internally
and commented on the City's positive history with similar scenarios such as the
Dumas Bay Center.
A motion was made to forward the approval to authorize the Community Center
staff to operate the Splash Cafe internally with proposed business plan and forward
to the full Council November 5, 2013 consent agenda for approval. Motion
seconded and carried 3 - 0.
FEDRAC SUMMARY
October 22, 2013, Page 2 of 3
D.
31d Quarter Activity Report From Cascadia Velocity
N/A
Discussion Only
Mr. Bennett introduced Mr. Graham Evans with Cascadia Velocity who gave a report
on Cascadia Velocity, including some background information and the various
challenges it has faced.
The committee asked about the status of Cascadia Med Tech. Mr. Evans explained
that Cascadia Med Tech and Cascadia Velocity are now two separate entities.
The committee expressed concern regarding the performance of Cascadia Velocity
and the financial investment the City has made.
Discussion took place regarding the difficulties Cascadia Velocity is experiencing
and the future of the organization. Jack Dovey with Cascadia Med Tech offered
some additional perspective on the history, challenges and outlook discussed.
E.
3rd Quarter Activity Report from the Highline Community College Small Business
N/A
Development Center
Discussion Only
Mr. Bennett gave his staff report, indicating that the SBDC continues to work with
Federal Way residents and businesses to pursue entrepreneurial opportunities.
Since Rick Shockley of the SBDC was unable to attend the meeting, Mr. Bennett
agreed to request a brief report from him that he would share with the committee.
F.
Amend the NSP3 Grant for Acquisition and Repair of Greater West Way Homes
ACTION
Mr. Bennett gave his staff report. He explained the rationale behind amending the
11 /5 Council Consent
grant agreement and how it would allow the City to be financially responsible while
meeting the grant requirements.
The committee expressed support for the City's development partner Habitat for
Humanity of Seattle /So. King Co. and interest in funding additional projects in the
future.
A motion was made to forward Amendment A to the NSP3 Grant Agreement with
the Washington State Department of Commerce to the November 5, 2013 Consent
Agenda for approval. Motion seconded and carried 3 - 0.
G.
SCORE Update
N/A
Discussion Only
Mr. Noland presented his staff report to the committee and indicated that the City is
maintaining roughly the same average daily population (ADP). He suggested that
the total ADP has reached a level that raises the question of potentially opening a
new pod.
Discussion took place regarding the number of pods currently open and
considerations of planning and opening a new pod.
Mr. Noland reported on the information he received at a SCORE meeting the week
prior, including key points addressed in the cost of service study recently conducted
and the final long -range plan, which he agreed to forward to the committee.
The committee requested that a representative of SCORE make a presentation at
the next FEDRAC meeting.
Additional discussion took place regarding the financial structure of SCORE, specific
challenges and needs.
H.
Monthly Financial Report - September 2013
CONSENT
Mr. Noland presented and highlighted key figures in his report. He stated that
11/5/21,13
General and Street Fund revenues are above the year -to -date (YTD) budget by 8.7%
and that expenditures are below YTD budget by 6.8 %. Designated Operating Fund
revenues are above the YTD budget by 7.7% and expenditures are below YTD
budget by 15.6 %.
The Utility Tax revenue is 4% below YTD 2012, due in part to changes in phone use
patterns. Discussion regarding this topic briefly ensued.
FEDRAC SUMMARY
October 22, 2013, Page 3 of 3
Real Estate Excise Tax revenues exceed YTD 2012 by 51% and YTD budget by 26 %.
Discussion briefly ensued regarding the Real Estate Excise Tax, Gabling Tax and
General Street Fund. The committee inquired for further detail regarding various
expenditure and revenue areas, which Mr. Noland provided or agreed to follow up
on.
Motion to forward approval of the September 2013 Monthly Financial Report to the
November 5, 2013 consent agenda for approval. Motion seconded and carried
3 -0.
I. Vouchers
CONSENT
The committee inquired regarding the bulk
q g g purchasing of paper products and
sizois
supplies for City events. Discussion ensued regarding this topic.
The committee inquired regarding the efforts of the City's lobbyists. Ms. Richardson
indicated that staff are meeting with them to go over potential issues that should be
brought to Council for the legislative agenda.
The committee also requested that information be shared 4 -6 months from now
regarding the fuel cost savings experienced by purchasing fuel from the school
district.
Discussion took place regarding the format and content of the budget reports. Chair
Duclos requested that ideas or suggestions be sent to her for compilation.
Motion to approve the vouchers as presented and forward to the November 5, 2013
Council meeting for approval. Motion seconded and carried 3 - 0.
J. December FEDRAC Meeting
N/A
Brief discussion took place regarding the cancellation of the December FEDRAC
Committee Action Only
meeting.
Motion to approve as presented. Motion seconded and carried 3 - 0.
4. OTHER: None.
5. FUTURE AGENDA ITEMS
6. NEXT MEETING: Tuesday, November 26, 2013
Chair Duclos adjourned the meeting at 7:08 p.m.
CQ- KMITTEE AP OVAL:
r n
Councilmember Din! Duclos
Committee Chair
Attest:
achy
Councilmember Bob Celski
Committee Member
Executive Assistant to the Mayor
T, 1/0�-, 4�
I Councilmember Susan Honda
Committee Member