FEDRAC MINUTES 02-23-20164% CITY OF
Federal Way
City Council
Finance /Economic Development /Regional Affairs Committee
Tuesday, February 23, 2016
Federal Way City Hall
4:30 p.m. SUMMARY MINUTES Hylebos Conference Room
CALL TO ORDER: Committee Chair Duclos called the meeting to order at 4:31 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Honda and Councilmember
Moore (arrived at 4:32)
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE:
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Amy Jo
Pearsall; Assistant City Attorney, Ryan Call; Street Systems Manager, John Mulkey;
Information Technologies Manager, Thomas Fichtner; Human Resources Manager, Jean
Stanley; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT: Camilla Mamedova from John L Scott Realty
APPROVAL OF SUMMARY MINUTES: Motion to approve the January 26, 2016 minutes as
presented; motion seconded and carried 3 -0.
Public Comment: Camilla Mamedova with John L Scott introduced herself and her interest
in what goes on in Federal Way.
APPROVAL OF AGENDA AS PRESENTED: Motion to move item J to March 22, 2016 FEDRAC
meeting; motion seconded and carried 3 -0.
Ordinance: City of Tacoma Department of Public Utilities, Light Division Franchise
Extension: Presented by Street Systems Manager, John Mulkey.
The ordinance is for a franchise extension to maintain electric power within the city of
federal way ROWS. This ordinance would extend the franchise agreement for another ten
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years. The ordinance will continue with the requirements of the original franchise
agreement. If an outage occurs in an area covered by Tacoma Power, Tacoma Power has
the responsibility to restore power there. If there is a major outage, most of the utility
companies work together to restore power.
Motion to approve and forward the Ordinance: City of Tacoma Department of Public
Utilities, Light Division Franchise Extension to the March 1, 2016 City Council ordinance
agenda for the first reading; motion seconded and carried 3 -0.
Resolution to adopt the Amended ICMA Retirement Corporation 401 Government Money
Purchase Plan and Trust: Presented by Human Resources Manager, Jean Stanley.
This resolution is basically legislative and regulatory changes made to the plan that were
effective in 2007. This was done as an amendment to the plan and now they are
incorporating those amendments into the plan. IRS is asking all cities that participate to
adopt the plan.
Motion to approve and forward the Resolution to adopt the Amended ICMA Retirement
Corporation 401 Government Money Purchase Plan and Trust to the March 1, 2016
consent agenda for approval; motion seconded and carried 3 -0.
Ordinance: New Cingular Wireless Franchise: Presented by City Attorney, Amy Jo Pearsall.
Federal Way has had a franchise agreement with New Cingular Wireless for many years.
The renewal was brought to FEDRAC in September, it went through all of our processes,
but they did not accept the agreement within the allotted time frame. This means we have
to go through the process again. They have assured us that they will accept the agreement
within the allotted time frame and are aware that they will be charged the administrative
fee pursuant to the franchise agreement.
Motion to approve and forward the Ordinance: New Cingular Wireless Franchise to the
March 1, 2016 City Council ordinance agenda for the first reading; motion seconded and
carried 3 -0.
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Amanda Systems Upgrade Contract Amendment and Agreement: Presented by IT
Manager, Thomas Fichtner.
This system has not had an upgrade since 2007 and now it needs a lot of work done to it to
bring it up to current technologies, system versions and enhancements. There are
additional services added to the current Goods and Services agreement; basically how the
system interacts. When testing the system, bugs were found in the system that were not
noticed before. Based on staff availability, we cannot complete the necessary work in a
decent time line, therefore, we need to pay them extra to complete that work. The project
amount is $105,667.50. This is $667.50 over the original budgeted amount. The overage
amount will be covered by savings within the department. This item should have been
finished last year, but because of some staffing issues, it was not. The remaining balance of
the project, $48,000, will be carried forward from 2015 into 2016 to cover the costs. This
core project will be completed this year. Additional projects, IVR upgrade will take 6 -8
months and GIS upgrade will take about 6 months. These are already budgeted.
Motion to approve and forward the Amanda Systems Upgrade Contract Amendment and
Agreement to the March 1, 2016 City Council agenda for approval; motion seconded and
carried 3 -0
2016 Comcast Franchise Renewal Contract Amendment: Presented by IT Manager,
Thomas Fichtner.
This is a five year agreement with an option to renew for an additional five 5 years. It is
scheduled to expire in May 2016. Comcast has followed FCC law and notified us that they
intend to renew. The Cable Act regulates and provides two options for us; both an informal
and a formal process. The goal for everybody is to use the informal process. If there is a
negotiations breakdown, we would transfer to a formal process. Nancy Werner replaced
Pam Berry as the City's Outside Legal Counsel. The key items are: a Community Needs
Assessment; technical audit involving: Public Education and Government Channel (PEG) and
Institutional Network (I -Net), ROW; and financial audit. The law firm hired a consultant to
perform the Community Needs Assessment. The needs assessment will be sent to 4,000
random residents this week. The law firm hired a statistician to determine the amount of
people needed to mail the needs assessment to and get the necessary sample amount for a
reliable result. The necessary sample size for a valid survey result according to our
population is 700 -800 responses. The items that will have the most impact on our
negotiations per our outside counsel are the Needs Assessment and financial audit. The
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technical audit cost will not make a difference in our negotiations with Comcast. In order to
incur a cost increase for the project, we had to eliminate an item. Outside counsel
recommended we remove the technical audit from the bargaining table. We either create
our own or lease theirs. The PEG channel is valuable because it helps us reach our citizens.
The I -Net connects all our facilities together, including the traffic cameras. PEG and I -Net
are non -money making items. Comcast wants to uses the I -Net as a bargaining chip for
them because it is valuable to us. It is how we operate. If we do not get this through the
agreement, we would have to build a fiber network ourselves or lease it back from them.
There would be an extensive cost for that. The negotiations process will most likely be
extended to the end of the year because of the complexity.
No further action taken.
Monthly Financial Report — December 2015: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for December 2015 and Year End
2015. Notable areas include:
• Page 178 General and Street Fund show how we did in 2015 compared to 2014, we
are almost 3% above the revenue projection. Expenses in General Fund, we did not
spend the entire appropriation (less than 1 %). Transfers are transferred -in to support
the General Fund. As of the end of 2015 we ended above our fund balance
requirement; just over $12m. The minimum amount set by Council policy is $9m. We
are planning to transfer about $2m to the Street Fund for street work in 2016.
• UTax revised down in December and compares well to the new revised number
• Comparing REET between 2015 and 2014, we are up
• FWCC shy of budget but above what we did in 2014
• Dumas Bay is above budget. Under the "other uses ", we transferred $483k into
Dumas Bay to try to increase the Fund balance.
• Dumas Bay Centre Fund comparison: At the end of 2014 the fund balance was $181k.
We transferred in funds to bring the total to $398k as of the end 2015. By 2016 we
should have $500k by the end of the third year.
• In the Carry Over Budget Amendment, which will be presented at the next FEDRAC
next month, we are planning to transfer in additional fund to bring the fund balance
to required $500k.
• Weyerhaeuser sale will be about $72m. If it is $72m, we will receive .5% of the sale
or a bit over $300k. King County takes 10% out of that .5% for a processing fee.
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• REET can only be spent on infrastructure and capital projects.
• Page 190 shows that as of the end of 2015 our Fund Balance is doing well.
Councilmember Honda requests a Council Fund Detail Report at the next FEDRAC meeting.
Motion to approve and forward the December 2015 Monthly Financial Report to the
March 1, 2016 consent agenda for approval; motion seconded and carried 3 -0.
Score Report: Presented by Finance Director, Ade Ariwoola.
ADP is improving, but we will not see a major change in cost until next year.
Councilmember Duclos asked what unbillable bookings are. When we get prisoners that do
not belong to any participating city, the cost gets spread across the participating cities.
Referencing page 287, we are going thru a cycle. January is lower because people are
coming back from vacation. Councilmember Honda asked if we are getting any new
contracts. Score is aggressively recruiting new cities. New contracts will leave fewer beds
for the Department of Corrections (DOC). The DOC pays the least.
No further action taken.
VOUCHERS — December 2015: Presented by Finance Director, Ade Ariwoola.
No questions on vouchers.
Motion to approve and forward the December 2015 Vouchers to the March 1, 2016
consent agenda for approval; motion seconded and carried 3 -0.
Fourth Quarter and Year -End Report 2015, Small Business Development Center:
Removed from this agenda.
No further action taken.
Other items: Councilmember Duclos has asked to have regular updates from PAEC on
upcoming FEDRAC agendas.
NEXT MEETING: Tuesday, March 22, 2016 @ 4:30 pm
MEETING ADJOURNED: 5:19 p.m.
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