Council MIN 08-11-2015 Regular 47 Federal Way CsG
2 5
cl
AN611*, 41
90-20,,,
CITY COUNCIL
REGULAR MEETING MINUTES
Council Chambers - City Hall
August 11, 2015 - 7:00 p.m.
1. CALL MEETING TO ORDER
Mayor Ferrell called the Regular Meeting to order at the hour of 7:09 pm
City officials in attendance: Mayor Jim Ferrell, Deputy Mayor Jeanne Burbidge,Councilmember Lydia
Assefa-Dawson, Councilmember Kelly Maloney,Councilmember Susan Honda,Councilmember Bob
Celski, Councilmember Martin Moore and Councilmember Dini Duclos.
City staff in attendance: Chief of Staff Brian Wilson, City Attorney Amy Jo Pearsall, and City Clerk
Stephanie Courtney.
2. PLEDGE OF ALLEGIANCE
Norma Blanchard led the flag salute
3. PRESENTATIONS
a. Ethics Board—Certificate of Re-Appointment
Deputy Mayor Burbidge stated at the July 21St meeting,the City Council re-appointed James Englund
as an alternate member to the Ethics Board. She read the Certificate of Appointment and noted Mr.
Englund was unable to attend tonight's meeting; his certificate will be mailed.
b. Mayor's Emerging Issues and Report
Mayor Ferrell introduced Finance Director Ade Ariwoola and highlighted his recent achievement of
being recognized with the "Professional Finance Officer Award"for the 19th year in a row.
Mid-Year Financial Update
Finance Director Ade Ariwoola reported to Council with a Mid-Year Financial Update. This report
contained information regarding the city's operations which are going as planned and the city is
maintaining its required fund balance. There is growth in Sales Tax, Property Tax, REET and Permit
Fees; and General Fund is also going as planned. He reported the General and Street Fund
Summary shows increased revenues of 4.3%and a decrease in expenditures of.6%.Additionally the
Property Tax YTD and Sales Tax YTD are also on the rise.
Significant projects in the city are Federal Way High School Project; Kitts Corner Apartments; and
Federal Way City Council Regular Minutes Page 1 of 7
August 11, 2015
Significant projects in the city are Federal Way High School Project; Kitts Corner Apartments; and
Crestview West Apartments. Designated Operating Fund Revenues including utility taxes are below
YTD budget by$714k or 12.5% partly due to increased summer weather and a mild winter.
Mr.Ariwoola also reported Residential and Commercial Real Estate Excise Tax(REET)is increased
in comparison to last year. Dumas Bay Centre shows increase in rental activities from returning
overnight retreat groups; and increase in goods and services for operations and rental activity. The
Federal Way Community Center also showed an increase in daily drop ins,aquatic programs,fitness
classes and rentals; as well as a slight increase in maintenance and operational costs. He spoke to
the Reserve Fund Balance Policy highlighting the policy and actual revenues.
He reported the SCORE Jail 2014 actual service charge for Federal Way was $3,852,676 and
$941,823 for Debt Service(YTD 2014 cost per day per bed$157).The 2015 budgeted service charge
for Federal Way is$4,276,614 and Debt Service to be paid for by SCORE Reserves(YTD 2015 cost
per day, per bed$112). In conclusion on his report, Mr.Ariwoola noted the city's financial operation is
performing as planned. Revenues are slightly above budget and expenditures are below budget;with
a need to replace used fund balance.
Comprehensive Annual Financial Report(CAFR) Presentation
Finance Director Ade Ariwoola reviewed the CAFR. He noted the complete CAFR can be found on
the city's webpage under the Finance Department page. He highlighted information contained in the
book including the Transmittal Letter; Auditor's Opinion; Government-wide Financial Statements;
General Fund;and Notes and Statistical Sections. He noted the City's books are audited annually. He
summarized the City performed as planned in the budget, and the Ending Fund Balance was as
planned.The city has adequate cash to run its day to day operations pending the intermittent revenue
and the city is still within its debt capacity. He noted the Washington State Auditor's Office Audit
Opinion is Unqualified.
National Night Out Report
Mayor Ferrell reported on the National Night Out event held on August 4th throughout the community.
He noted there were 26 participating neighborhoods and invited Ms. Betty Taylor to join him along
with Police Chief Andy Hwang for the neighborhood events. Ms. Taylor gave a brief report on her
experience and noted it was an honor and a privilege to attend with the Mayor and Chief.
Sound Transit Board Preferred Alignment Vote
Mayor Ferrell reported Sound Transit Executive Board voted on July 23rd regarding the preferred route
alignment.The Board favors building the light rail mostly along 1-5 from SeaTac to Federal Way,but is
looking at options to reach Highline College. Multiple regional representatives testified,including both
King and Pierce Counties.With a preferred alignment of 1-5 they will be studying TOD(transit oriented
development)and the commitment that Highline College is well served.The final vote will be taken in
the fall of 2016.
Performing Arts and Events Center(PAEC) Fundraising Efforts Report
Performing Arts and Events Center Director Theresa Yvonne gave a fundraising report regarding the
project. She noted the center will be a 41,000 square foot dynamic, multi-faceted arts and events
center which includes a 716 seat theater and 8,000 square feet of meeting room space complete with
a full culinary kitchen.
Ms. Yvonne introduced Bob Edwards to speak on behalf of the Federal Way Coalition of the
Performing Arts.The city entered into a memorandum of understanding in 2013 for the purpose of the
coalition raising private monies for the PAEC. He reported to date the Coalition has transferred to the
city$676,146.00.
Federal Way City Council Regular Minutes Page 2 of 7
August 11, 2015
Former Mayor Mike Park reported on the recent fundraising event held at KOAM Television Station.
He thanked the Station and Shelly Ooko for hosting the event which raised$25,000 in donations from
the Korean Community Groups and Individuals.
Theresa Yvonne reviewed the total fundraising information to date. She reported the current amount
including the most recent fundraiser is$751,146 with another$72,000 in pledges. Other fundraising
opportunities are available via naming rights; FWCPA will continue on those efforts.She was pleased
to note FWCPA is on track to raise one million dollars by ground breaking and an additional million by
the grand opening of the Performing Arts & Events Center. With the additional larger naming
opportunities and the overall naming right of the center the grand total projected fundraising is over
$6M.
Councilmembers thanked Ms.Yvonne for her report and the hard working volunteers who have gone
above and beyond to get out in the community and raise funds for this wonderful project.
Performing Arts and Events Center(PAEC) Finance Update
Chief of Staff Brian Wilson gave an update with New Markets Tax Credits. Mr. Wilson gave a brief
history on the city's interest in New Markets Tax Credits which dates back to 2009 under then City
Manager Neal Beets. In 2014 under Mayor Ferrell's leadership the city began to aggressively pursue
these credits for the Performing Arts and Events Center. He presented the following timeline:
• August 2014 Formulated pipeline application and submissions — 9 banks and Community
Development Entities (CDE's).
• January 2015 The Mayor, Chief of Staff and Economic Development Director attended the
New Market Tax Credit Winter Conference and marketed the PAEC project and the
revitalization, educational outreach and positive economic outlooks the project brings to the
area.
• February — June 2015 Continued Advocacy of the project including site visits from
Clearinghouse CDFI, US Bank and Chase.
• June 2015 Attendance at the NMTC Spring Conference
• June 2015 Announcement of NMTC Awards($3.5 billion)—No entity domiciled in Washington
received an award. Additionally, none of the non-bank CDFI's/CDE's the city applied with
received an award. (Heavy focus on underserved states such as New Hampshire, Florida,
Arkansas, Texas, Tennessee, Nevada, South Dakota and North Dakota.)
• June-July 2015: Review and examinatio n of awards (21 awardee contracts,
continue to
market project)
• August- September 2015 Continue to pursuit of NMTCs second tier/iteration consideration
(fall outs based on qualifications, lack of leverage loan, or not"shovel ready")
• September 2015 Assessment of opportunities to reapply for 2015 NMTC pipeline application
Mayor Ferrell recognized Councilmember Duclos for her leadership on moving the Council towards
these tax credits. Councilmembers asked various clarifying questions of Mr.Wilson including the cost
to the city for attempting these tax credits and if the process would be similar if we attempt this
process next year.
Finance Director Ade Ariwoola reported on the May 8,2014 the city issued a press release regarding
the construction financing. The interfund loan was approved in July of 2014 with Council Resolution
#14-667 in the amount up to $13 million for a period not to exceed 3 years with an interest rate of
1.0%. He reviewed total sources for the Performing Arts and Events Center, including the Project
Revenues and Expenditures with the 2014 Budget; Current Proposed Budget; and Actual to Date.
Federal Way City Council Regular Minutes Page 3 of 7
August 11, 2015
Committed Project Funding is $12 million; and State Capital Funding Grant is $4 million- based on
legislative efforts. Additional pending project funding includes the CDBG Section 108 at$3 million;
Sale of Hotel Pad at$1.5 million; Naming Rights at$3.5 million; and 4-Culture Grant at$2 Million.
Mr. Ariwoola also reviewed the total project cost expenditures to date $3,794,867 (excluding land
costs). He concluded his report with stating with cash on hand, State approved budget and Interfund
loan, we will be able to complete the construction of the PAEC.
Mayor Ferrell noted the project received$2 million in this budget cycle; and $2 million in the previous
session by Senator Tracey Eide; Representative Roger Freeman; and Representative Linda
Kochmar. Award of the bid is scheduled in October.
4. CITIZEN COMMENT
Michael Neira, thanked Mayor Ferrell and Councilmembers for their time prior to the meeting. He
noted his family bought a house three years ago and love the area and community; however,there is
a drug house across the street and has been there for many years. He would like to see the Police
focus efforts on these types of houses and understands there is a process; he is thankful for efforts
thus far and looks forward to working with the city on a solution.
Alan Bryce spoke briefly about the new Centerstage agreement up for approval on tonight's agenda.
He feels, both parties went back and made a thoughtful review which resulted in including really
positive changes in the agreement. He thanked staff members Brian Wilson,Amy Jo Pearsall,John
Hutton and Rob Ettinger for their input.
Councilmember Celski left the meeting at 8:47pm.
5. CONSENT AGENDA
Items listed below have been previously reviewed in their entirety by a Council Committee of three members and
brought before full Council for approval;all items are enacted by one motion. Individual items may be removed b
9 Y Y by
a Councilmember for separate discussion and subsequent motion.
a. Minutes: July 21, 2015 Regular and Special Meetings
b. Monthly Financial Report—June 2015
c. Vouchers—June 2015
. • - _ -_ _: _-- •_ _ -'_ _ •-- -_ . = pulled and approved separately
e. Community Center Leisure Pool Liner Replacement
f. Amanda Permit System— Enhanced Inspections Module
g. 2015 Regional Aerial Mapping Interlocal Agreement
h. 21st Avenue S Sidewalks Improvement Project(S 320th Street to S 316th Street)—85%
Design Status Report
S 304th Street and 28th Avenue S Intersection Improvements— Bid Award
j. 21St Avenue SW at SW 336th Street Intersection Improvements Project— Project
Acceptance
k. 20th Avenue S and S 316th Street Sidewalk Replacement Project—30% Design Status
Report
Federal Way City Council Regular Minutes Page 4 of 7
August 11, 2015
I. S 352nd Street Extension —PSE Relocation Agreement
Councilmember Honda pulled item d - LTAC Budget Allocation for Historical Society.
DEPUTY MAYOR BURBIDGE MOVED APPROVAL OF ITEMS A-C; and E-L ON THE CONSENT
AGENDA AS PRESENTED; COUNCILMEMBER MOORE SECOND. The motion passed 6-0 as
follows:
Deputy Mayor Burbidge yes Councilmember Celski excused
Councilmember Assefa-Dawson yes Councilmember Moore yes
Councilmember Maloney yes Councilmember Duclos yes
Councilmember Honda yes
Consent Agenda Item 5d- LTAC Budget Allocation for Historical Society:
Councilmember Honda thanked Federal Way Historical Society President Diana Noble-Gulliford for all
her dedication and preserving our past. Councilmember Honda noted the original request to the
Lodging Tax Advisory Committee was $20,000 and currently the amount allocated is $10,000. She
would like to see the full $20,000 funded.
Councilmembers discussed options for the additional$10,000 and suggested sending this item back
to Finance, Economic Development Committee for further review. Economic Development Director
Tim Johnson spoke to the process of the allocations and his understanding. He will work with the
Finance Director to find an additional$10,000. Councilmembers concurred to move forward with the
current allocations and address the additional funds at the next FEDRAC meeting.
COUNCILMEMBER HONDA MOVED APPROVAL OF CONSENT AGENDA D - LTAC BUDGET
ALLOCATION FOR THE HISTORICAL SOCIETY; COUNCILMEMBER MOORE SECOND. The
motion passed 6-0 as follows:
Deputy Mayor Burbidge yes Councilmember Celski excused
Councilmember Assefa-Dawson yes Councilmember Moore yes
Councilmember Maloney yes Councilmember Duclos yes
Councilmember Honda yes
6. COUNCIL BUSINESS
a. Centerstage Theatre Management and Operations Agreement
Parks Director John Hutton gave a brief presentation he noted staff is thrilled with this agreement.
This new agreement helps Centerstage do what they do is best, and allows the city to raise revenue
and remain viable for years to come. Mr. Hutton thanked all the members of the theatre team and staff
members who worked together to accomplish this goal. He is pleased with this great partnership and
new opportunities with the recreation program and community center.
Mayor Ferrell and Councilmembers thanked everyone involved with these negotiations and
positive outcome for the city and residents.
COUNCILMEMBER HONDA MOVED APPROVAL OF THE THEATRE AND OPERATIONS
AGREEMENT WITH CENTERSTAGE THEATRE ARTS CONSERVATORY EFFECITVE OCTOBER
1, 2015 THROUGH JUNE 30, 2018 AND AUTHORIZE THE MAYOR TO EXECUTE SAID
AGREEMENT; COUNCILMEMBER DUCLOS SECOND. The motion passed 6-0 as follows:
Deputy Mayor Burbidge yes Councilmember Celski excused
Councilmember Assefa-Dawson yes Councilmember Moore yes
Y Y
Federal Way City Council Regular Minutes Page 5 of 7
August 11, 2015
Councilmember Maloney yes Councilmember Duclos yes
Councilmember Honda yes
b. Resolution: Lake Haven Estates Final Plat
Senior Planner Jim Harris gave a presentation to Council regarding Lake Haven Estates Final Plat.
back as 2007. He also displayed a r k ictures
He gave background including the history of the plat as far pictures
the area, noting the applicant has fulfilled all the conditions of preliminary plat approval.
COUNCILMEMBER MALONEY MOVED APPROVAL OF THE LAKE HAVEN ESTATES FINAL
PLAT; COUNCILMEMBER ASSEFA-DAWSON SECOND. The motion passed 6-0 as follows:
Deputy Mayor Burbidge yes Councilmember Celski excused
Councilmember Assefa-Dawson yes Councilmember Moore yes
Councilmember Maloney yes Councilmember Duclos yes
Councilmember Honda yes
c. Community Connectivity Consortium Joining Agreement
Information Technology Manager Thomas Fichtner gave a presentation on the Community
Connectivity Consortium Joining Agreement. He noted the initial Interlocal Agreement formed in 2003
and was commonly referred to as the"Fiber Consortium"; Federal Way joined this agreement in 2010.
Mr. Fichtner stated the purpose of the Consortium is to"Improve Public Safety,Community resiliency,
Enhance Learning, Facilitate Health Care Services, and Serve Citizens with a high-capacity fiber
network". Benefits to Federal Way include shared fiber assets; Backup/Disaster Recovery; Valley
Communications; SCORE Jail fiber and to partner with other government agencies such as Federal
Way Public Schools.
COUNCILMEMBER DUCLOS MOVED APPROVAL OF THE INTERLOCAL AGREEMENT
ESTABLISHING THE COMMUNITY CONNECTIVITY CONSORTIUM AND AS WELL AS THE
AGENCY JOINGING AGREEMENT, AND AUTHROIZE THE MAYOR TO EXECUTE SAID
AGREEMENTS; COUNCILMEMBER MOORE SECOND. The motion passed 6-0 as follows:
Deputy Mayor Burbidge yes Councilmember Celski excused
Councilmember Assefa-Dawson yes Councilmember Moore yes
Councilmember Maloney yes Councilmember Duclos yes
Councilmember Honda yes
7. COUNCIL REPORTS
Councilmember Duclos attended the National Night Out event at the Target Property and felt it was a
great event. Target management is excited to expand this event next year and get the word out
earlier.
Councilmember Moore also attended the National Night Out where he visited two neighborhoods -
Westway and Twin Lakes Neighborhood. He shared a story about a single mom and her struggle with
rental housing costs in South King County. He reported on his new job and congratulated fellow
Councilmember Kelly Maloney on her new position.
Councilmember Honda reported on the RoseBud Children's Theatre Conservatory run by Holly Rose
and the last two weekends they have run Mary Poppins. All of their plays are wonderful and
encouraged citizens to attend these shows. She also attended the Storyteller Festival at Powellswood
Federal Way City Council Regular Minutes Page 6 of 7
August 11, 2015
Garden and noted it was a wonderful event that many look forward to attending and participating from
around the region. She also attended along with Deputy Mayor the Federal Way Chamber of
Commerce meeting where King County Metro presented along with staff member Sarady Long. She
encouraged citizens to attend the 8th Annual Dessna Cup,which hosts sports, musical,and family fun
activities at Saghalie Park. This festival has grown from a small festival to last year over 4,000
attendees. This year they will have a car show, event runs Friday through Sunday.
Councilmember Maloney also promoted the Dessna Cup as a wonderful festival to attend. She was
unexpectedly out of town, however she attended the National Night Out Events and it is refreshing to
see adults and children come together and neighbors come out and socialize. She thanked
Councilmember Moore for the congratulations on her new position. She is very excited to be the new
Executive Director of Aerospace Futures Alliance, representing over 1400 aerospace companies in
Washington.
Councilmember Assefa-Dawson congratulated both her colleagues Martin and Kelly on their new
positions. She attended multiple events recently including the Salmon Bake and Fusion Event which
were wonderful. She attended the Federal Way School District update where they invited the
community to come and discuss challenges and addressing their budget plan in the future.She spoke
at the Pacific NW Key Club-Seattle Rally, and the Advancing Leadership Youth Orientation. She is
really encouraged with the talent of young people in our community.She attended a town hall meeting
where the"School to Prison"pipeline was discussed,as minority or students of color are ending up in
prison instead of higher education. She encourages people to look and learn about this issue. Both
Deputy Mayor and she went to the Suburban Cities Breakfast where Senator Patty Murray spoke.
Deputy Mayor Burbidge thanked all of the people involved and hosted events for the National Night
Out;and those that hosted the events-people she spoke with had good suggestions for the city.She
attended along with Councilmember Honda the FW Chamber Roundtable meeting with King County
Metro Transit Planning. They are looking for folks to participate in a survey and would like feedback
for the future. She noted the survey can be found on the King County Metro website. She noted the
Lodging Tax Advisory Committee will not meet in August; the next meeting will be in September.
8. EXECUTIVE SESSION
• Proporty Acquisition Pursuant to RCW 12.30.110(1)(b)
9. ADJOURNMENT
There being nothing further on the agenda; Mayor Ferrell adjourned the Regular Meeting at 9:40 pm
Attest:
- :nie D. Courtney C
• Clerk
Approved by Council: Oq-V/-/S
Federal Way City Council Regular Minutes Page 7 of 7
August 11,2015