FEDRAC MINUTES 08-25-2015Federal Way
City Council
Finance /Economic Development /Regional Affairs Committee
Tuesday, August 25, 2015 Federal Way City Hall
4:30 p.m. Hylebos Conference Room
SUMMARY MINUTES
CALL TO ORDER: Committee Chair Duclos called the meeting to order at 4:30 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Duclos, Councilmember
Celski, Councilmember Moore (arrived 4:47pm)
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, and Councilmember
Honda.
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Chief of Staff, Brian
Wilson; Economic Development Director, Tim Johnson; City Attorney, Amy Jo Pearsall;
Street Systems Manager, John Mulkey; Community Development Director, Michael
Morales; Community Services Manager, Jeff Watson; CDBG Coordinator, Denise
Catalano; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck.
OTHERS PRESENT: Historical Society Chair Diana Noble - Gulliford
AGENDA APPROVAL:
No changes were made to the agenda.
APPROVAL OF SUMMARY MINUTES:
Motion to approve the July 28, 2015 minutes as presented; motion seconded and
carried 2 -0.
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New Cingular Wireless Franchise Ordinance:
Presented by Street Systems Manager, John Mulkey. Mr. Mulkey reported that Cingular
Wireless would like to place wireless transmitting facilities and related appurtenances in
the City owned or controlled rights -of -way. The term would be 10 years starting on the
effective date of this Franchise consistent with franchises the City has granted to other
utility providers. Cingular Wireless agrees to pay $1,000 to recover the actual reasonable
administrative expenses incurred by the City that are directly related to the preparing
and approving this Franchise. It will maintain insurance of $5 million for commercial
general liability and $5 million for automobile insurance. Cingular Wireless will post a
bond of $100,000. Additional bonding may be required. The Mayor recommends the
committee forwards to the September 1, 2015 Council meeting for First Reading.
Motion to approve and forward the New Cingular Wireless Franchise Ordinance to the
September 1, 2015 consent agenda for the First Reading; motion seconded and carried
2 -0.
2014 Consolidated Annual Performance and Evaluation Report:
Presented by CDBG Coordinator, Denise Catalano. Ms. Catalano reported that the 2014
Consolidated Annual Performance Evaluation Report (CAPER) is an annual report
required by HUD. The CAPER is normally due 90 days after the program year, March 1,
2015. We unexpectedly had to update our consolidated plan with King County for 2015-
2019; therefore, we applied for and granted an extension by HUD. The CAPER was
reviewed by the Human Services Commission at their August 17 meeting. Public
comment was solicited between July 24 and August 14. We received no public
comments. CAPER provides information on the resources that are available and the goals
and objectives for the program year. Goals are: decent, affordable housing, suitable
living environment, and furthering economic development. These goals were target by
projects that fell under housing, public services, and economic development. In 2014 the
City spent $410,850 in CBGB funds. Our annual entitlement was $649,054. The CAPER
also shows other funds that were leveraged by our CBGB funding for $14,575,000, which
is Federal, State and other local funds. Through programs such as housing repair,
homeless support and intervention, we were able to help over 400 persons and
households with CBGB funds in 2014. Councilmember Celski asked why we do not get
emergency shelter grants or HOPWA funds. Ms. Catalano said that King County receives
those funds which are then allocated by the County. We are not eligible to receive funds.
Councilmember Celski asked if we have a choice to reallocate these funds as we see fit.
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Ms. Catalano replied that it looks like we are short on funds because of the way we draw
down funds. The 4th quarter payment of the previous year is paid in 15t quarter of next
year. The amounts reflect what is actually drawn down during 2014. Councilmember
Celski asked if we can shift funds if there are excess funds available. Ms. Catalano replied
that we can only shift up to the 15% cap that we are allowed to spend of our entitlement
for public services contracts. Community Services Manager, Jeff Watson said there is also
a threshold depending upon how much money we would have allocated to public
services and program administration. Councilmember Celski referred to page 56, item
four, regarding the Commercial Exterior Improvement Program and asked if we received
any applications. Mr. Watson said we did not. Councilmember Celski wondered if the
applications are burdensome. It is not that the applications are not burdensome; it is
because we did not have staff to get out and market the programs. Mr. Morales said that
the other complication was that most small businesses are tenants and are not able to
make the improvements. The Landlord has to be willing to do that. The environmental
requirements from HUD can be onerous. CBGB funds go to design for the facade
improvements program. We would fund the design and the building owner would fund
the rest. Councilmember Duclos referred to page 60, item B, the most negative impact
was because of lack of funding. Is that consistent? Ms. Catalano said that this was the
case last year. Councilmember Duclos asked if we have received an increase this year.
Ms. Catalano said that we actually received a decrease. Councilmember Duclos
commented that she believes we are doing a good job with what we have.
Motion to approve and forward the 2014 Consolidated Annual Performance and
Evaluation Report to the September 1, 2015 consent agenda for approval; motion
seconded and carried 2 -0.
SCORE — July 2015:
Mr. Ariwoola reviewed the SCORE Financial Summary for July 2015. Judges Larson and
Robinson were at the August 11 meeting, as well as Chief of Staff, Brian Wilson, public
defender, prosecuting attorney, and Deputy Chief Neal. Based on some of the findings,
the majority of inmates are in SCORE for an extended period of time because they are
on their second or third warrants. Federal Way has a lower population than other
entities, but that population is staying for a longer period of time.
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ADP is calculated by the number of days stayed multiplied by the number of inmates. We
will be exploring other options in regards to alternative sentencing. We are paying more
than we used to pay because our number of inmates is higher than what it used to be,
not because the unit cost is higher. The cost is still cheaper than going somewhere else.
Councilmember Duclos asked if there is a reason why Federal Way is consistently higher
than others. Councilmember Burbidge asked why we have more people on their second
or third warrant than other cities. Mr. Ariwoola responded that it is due to our
population demographic compared to other cities. Mr. Morales commented it is not that
our population is less likely to pay, rather less able to afford to pay fines on first offense
warrants, which snowballs. Councilmember Burbidge was curious as to the number of
warrants for these people and the level of offenses. City Attorney Pearsall responded
that they are there because of more serious offenses such as domestic violence, and DUI
with past incidents. Councilmember Duclos wanted to know what other cities are doing
differently. Mr. Ariwoola said that one entity closed one of their two courts, which
created a backlog for that entity. Chief Wilson said in our interdisciplinary group, there is
a consensus that we do not want to jail people that are unable to pay to become the
primary reason someone is in jail for an extended period of time. SCORE is now
stabilizing and looking for alternatives to that. What has happened over time is that our
debt service is less than Auburn and Renton because they have to transport, so they do
not book as many people. This has an impact on the ratio for cost. We are looking at the
value or difference between 10 days in custody or 20 days in custody. From a budget
stand point, this is 50% of cost. Councilmember Celski asked what is going to be the
impact for the ADP for the next budget year. The ADP impact will be an increase of about
one million dollars. Mr. Ariwoola said one of the advantages for 2016 is that instead of
paying for debt service that money will go toward the operation. They are using the
savings they are getting from the contracted cities to pay for the debt service in 2016.
Councilmember Celski referred to page 100 and asked about unbillable bookings and the
cost to SCORE. Mr. Ariwoola said that, for example, if a SCORE felon has to go to King
County; King County charges for processing fee. Members do not pay a processing fee to
SCORE.
No further action necessary.
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MONTHLY FINANCIAL REPORT - July 2015:
Mr. Ariwoola summarized the Monthly Financial Report for July 2015. Notable areas
include: based on plan and forecast, the City financial operation is doing well. We
exceeded 2014 revenue, but we increased spending. There are departments that will
have to amend their budgets. The City does not have excess money. Councilmember
Celski referred to page 120, Sales Tax Comparison by Area and commented that it looks
like the Gateway Center is doing poorly. He wanted to know what exactly
telecommunication in regard to this report is. Mr. Ariwoola cannot identify individual
businesses; suffice to say the cell use business is down. Utility tax is down too, which is
tied to that. Taxes are paid according to the phone number. For example, a person
residing in Federal Way has a phone number from New York; those taxes go to New York.
Tax follows sale of origin, it does not follow billing address. Councilmember Moore
commented that the issue is an issue that state law makers are also discussing.
Motion to approve and forward the July 2015 Monthly Financial Report to the
September 1, 2015 consent agenda for approval; motion seconded and carried 3 -0.
VOUCHERS -July 2015:
Mr. Ariwoola commented that in response to one of the vouchers questioned by
Councilmember Celski the City is paying red light ticket on the city's vehicle because as
the registered owner the city is responsible but the city is in the process of identifying
the employee that was driving the car to seek reimbursement from him.. We do target
the employee for repayment so that the burden is not on the taxpayer, it is on the
employee. Councilmember Honda asked if employees are assigned to a particular vehicle
each time. Mr. Ariwoola said that some are, but not always. If it is a "pool vehicle" on a
job site, it is more difficult to identify the employee who was driving the vehicle.
Motion to approve and forward the Vouchers to the September 1, 2015 consent agenda
for approval; motion seconded and carried 3 -0.
OTHER: LTAC budget for the Historical Society:
Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola reported that the Council
approved the original $10,000, and asked that he look for the additional $10,000. We do
not have the ability to fund an additional $10,000. Chief Wilson commented that the
Mayor received an anonymous donation of $10,000 for the Historical Society in lieu of
the additional $10,000 that the City was hoping to provide. The intent of the donor was
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to place that donation in the name of Doug and Faye Clerget. That money will come
through the City and then a recommendation will be made that we, as a City, allocate the
money to the Historical Society to be used in a consistent manner as we would require
otherwise. Historical Society Chair, Diana Noble - Gulliford asked the City to keep the
Historical Society appraised as to what the Clergets would like the money to be used for.
Mr. Ariwoola said the City will probably put together a contract agreement.
Councilmember Duclos asked if there are any restrictions. Chief Wilson said there are no
restrictions. Ms. Pearsall said that this information will be added to the current MOU.
Mr. Morales is in the process of determining if there is an interest in putting together a
committee to formalize the City's historical preservation efforts and seek certifiable
government funding sources that can range from $10 to $30,000 which would be
granted to local governments to bring in consultants to help city establish a formal
historic preservation commission in addition to an advisory roll a separate Society may
play. The grant monies may be used for landmark preservation opportunities and
assignment of historical districts. The process takes about a year. Mr. Morales will be
looking in to that in the upcoming weeks. Historical Society Chair, Diana Noble - Gulliford
commented that Kent adopted their Historic Preservation Ordinance a few years ago.
This has increased the marketability and value to its communities.
NEXT MEETING: Tuesday, September 22, 2015 @ 4:30 pm
MEETING ADJOURNED: 5:21p.m.
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