FEDRAC MINUTES 01-26-2016CITY OF
L Federal Way
City Council
Finance /Economic Development /Regional Affairs Committee
Tuesday, January 26, 2016 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 4:31 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Newly appointed committee member,
Councilmember Honda and Councilmember Moore (via telephone)
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Koppang
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Chief of Staff, Brian
Wilson; Assistant City Attorney, Ryan Call; Economic Development Director, Tim Johnson;
Street Systems Manager, John Mulkey; Community Development Director, Michael
Morales; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT: Laura Moser representing Waste Management
APPROVAL OF SUMMARY MINUTES: Motion to approve the November 24, 2015 minutes
as presented; motion seconded and carried 2 -0 (Councilmember Honda abstained).
Public Comment: No public comment.
Ordinance: Mayer Sewer Franchise: Presented by Street Systems Manager, John Mulkey.
The ordinance is for the Mayer family to maintain and operate a private sewer line in a
City owned right of way for ten years. The Mayer family will pay $1,000 to the City to
cover City maintenance for the right of way. They will be bonded and insured.
Councilmember Honda wanted to know what would happen if the ordinance is not
approved. The City would have to help the Mayer family with an easement or the Mayer's
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would have to relocate the sewer line. An easement condition does not fit this situation
because this is a right of way. Franchising will keep the rights with the City. Mr. Call said
there are many franchises in the city and this is not unusual. Ten years is a standard term
for a franchise.
Motion to approve and forward the Ordinance: Mayer Sewer Franchise to the February
21P 2016 City Council ordinance agenda for the first reading; motion seconded and carried
3 -0.
Economic Development Report: Presented by Economic Director Tim Johnson.
Mr. Johnson referred to the staff report for retail activities within the City of Federal Way.
Macy's will be closing, Walmart, and JC Penny are closing some of their stores not in
Federal Way. Federal Way has a five percent vacancy rate for retail space and a twenty
three percent vacancy rate for office space. The Commons is out of escrow and the
process will start again. Hagan's in Federal Way will be part of a multi store auction on
February 5th, 2016. Hong Kong Market located on 356th and 21St will open this Saturday,
January 30, 2016. Chief of Staff Wilson said the Weyerhaeuser sale has been narrowed to
four or five different companies. He anticipates a notice fairly soon. Mr. Ariwoola
reminded the Committee that the REET revenue from Weyerhaeuser and The Commons
can only be spent on capital related projects. Councilmember Honda wanted to know
how long can we keep the REET funds before spending. Mr. Ariwoola said there is no time
limit. Top Foods people have stopped working on construction, but Mr. Johnson is not
sure why. The Walmart store located on 312th is a management training facility that
impacts us positively. The managers in training stay at the Clarion for six weeks, which
benefits LTAC. It seems like that store has no interest in leaving. It is anticipated that in
the spring there will be a lot more applications for construction permits for
redevelopment. Councilmember Moore inquired as to who the potential buyers for the
Weyerhaeuser property are and what are the options /ideas for the REET? Chief of Staff
Wilson is not at liberty to say publically.
No further action taken.
Score Report: Presented by Finance Director, Ade Ariwoola.
The City's ADP (page 123) had the highest number in April 2015, which was 112. As of
December 2015, the City's ADP was 72. This improvement will not be reflected in our
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spending for another year. On page 135, in terms of arrests in December and how Federal
Way compares to the other member cities, the city is performing very well. Page 143
shows the make -up of inmates for all participating members. Forty five percent of our
inmates are from Federal Way, sixteen percent are from SCORE member cities, and thirty
nine percent are from other non - member cities. Councilmember Honda inquired about
who pays to take inmate to hospital and are they guarded. Mr. Ariwoola said that SCORE
pays the hospital bill and then we are charged for that. Inmates are secured when in the
hospital.
No further action taken.
Monthly Financial Report — November 2015: Presented by Finance Director Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for November 2015. Notable
areas include:
• Public Works permits and fees are above YTD 2015 budget by forty eight percent
due to inspection hours charged against the deposit made by the developer. We
report it in unearned revenue because we have not provided a service. As we
provide the service, we bring it out of the unearned revenue or liability account and
recognize it as earned revenue.
• General Fund revenue is above the YTD budget by 5.6 percent. All revenue is on
target except property tax, court revenue and interest earnings.
• Total General and Street Fund expenditures are above YTD budget by $92,000.
• Budget adjustment in December, some of these will be corrected /adjusted in the
December report.
• Sales Tax went up by eleven percent.
• REET is doing well because of real estate market.
• Utility Tax revenue is still low because of weather (8.6 percent).
• As of the end of November, our projected Fund Balance is still holding well with our
budget.
• Dumas Bay Centre is doing reasonably well. Staff reengineered marketing of the
rooms /space. It will need major repairs. Based on Fund Balance Policy, we plan to
have a $500,000 fund balance. Councilmember Honda would like a plan as to how
we will remodel Dumas Bay Centre. Mr. Morales commented that there are
significant limitations for the building in regards to improvement /remodeling. Chief
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Wilson said that there has been some investment into the Centre; carpeting, air
conditioning. Mr. Ariwoola suggested the Council and the Mayor may want to
explore discussion on the long range plan for the facility at the Council retreat
although we have a lot of projects in the work now.
Motion to approve and forward the November 2015 Monthly Financial Report to the
February 2, 2016 consent agenda for approval; motion seconded and carried 3 -0.
VOUCHERS — November and December 2015: Presented by Finance Director, Ade
Ariwoola.
In regards to refunds for classes: towards the end of the year, we refund what is not ours;
basically house cleaning for the programs. For example, people make reservations for
classes and not able to attend for various reasons. Those people ask to have those funds
applied to the next class they take, so we hold on to that money. At the end of the year,
we refund the money that was not used by the participants. The refund totals are very
reasonable considering the amount of volume. Councilmember Duclos inquired about the
Pacific Plants Wholesale Nursery voucher. Mr. Ariwoola said the plants were for TC -3.
Motion to approve and forward the November and December Vouchers to the February
2, 2016 consent agenda for approval; motion seconded and carried 3 -0.
NEXT MEETING: Tuesday, February 23, 2016 @ 4:30 pm
MEETING ADJOURNED: 5:16 p.m.
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