FEDRAC MINUTES 04-26-2016CITY OF
Federal Way
City Council
Finance /Economic Development /Regional Affairs Committee
Tuesday, April 26, 2016
4:30 p.m.
SUMMARY MINUTES
Federal Way City Hall
Hylebos Conference Room
CALL TO ORDER: Committee Chair Duclos called the meeting to order at 4:30 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Honda. Councilmember Moore
arrived at 4:33.
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Koppang,
Councilmember Aseffa- Dawson
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Amy Jo
Pearsall; Court Administrator, Susan White; Community Services Manager, Jeff Watson;
Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the March 22, 2016 minutes as
presented; motion seconded and carried 2 -0 ( Councilmember Moore had not arrived).
APPROVAL OF AGENDA:
PUBLIC COMMENT:
Rubensteins Contract Carpet, LLC Retainage Release: Presented by Parks Director, John
Hutton.
Mr. Ariwoola summarized the agenda bill since Mr. Hutton was not present.
Motion to forward the acceptance of the Dumas Bay Center carpet installation work as
complete and forward the authorization of staff to release their $5,071.50 retainage to
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Federal Way
the May 3, 2016 City Council agenda for approval; motion seconded and carried 2 -0
(Councilmember Moore had not arrived).
Probation Alcohol Monitoring (SCRAM): Presented by Court Administrator, Susan White.
Transdermal alcohol monitoring system that defendants wear. We used to contract with
Probation who had a direct contract with AMS. Probation leased the units and put them on
the defendants. We tried to contract directly with AMS when we took over in- house. AMS
wanted us to assume liability at $1500 per unit. AMS said they will not directly lease these
units to us. AMS said we will have to go through their vendor, VigilNet for $7.10 per unit
per day. If we wanted to use another agency, it will cost the City $12.10 per day per unit.
VigilNet will cost about 40K per yr. We have 30 units leased. We charge the defendant up
to $14.00 per day for those that can afford to pay, which off sets the cost for those that
cannot pay. Approve money in the budget to contract with VigilNet to have these units in
our possession so that Probation can still hook up the monitors.
Motion to approve and forward the Probation Alcohol Monitoring (SCRAM) to the May 3,
2016 City Council agenda for approval; motion seconded and carried 3 -0.
Section 108 Loan Resolution for Full Faith & Credit Collateral: Presented by Community
Services Manager, Jeff Watson.
The Section 108 loan for the PAEC has been provisionally approved by HUD. HUD is now
asking for a resolution from the City so that we can go forward with the loan. The debt
service will be paid out of the annual grant.
Motion to adopt the resolution pledging the Full Faith and Credit of the City of Federal
Way in connection with the Section 108 loan application in the amount of $3,030, 000 for
the Performing Arts and Events Center; motion seconded and carried 2 -1 (Councilmember
Honda opposing).
Budget Calendar: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola would like suggestions for dates for a Council retreat, study sessions, capital
plan, and budget training for Council. Councilmembers would like a budget training retreat
for Council and budget sessions with the different departments. Mr. Ariwoola suggests
Council plan for two days to discuss /review the budget. As of right now, the statute says
that the budget has to be presented by the Mayor to Council by October 4, 2016. A
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Federal Way
resolution to move the budget presentation to an earlier date (September 28, 2016) is an
option. Departments are to submit budgets to finance by July 11, 2016. May 31, 2016
(possible) June 7, 2016 will be a capital budget study session. A goal planning session will
be on June 21, 2016. It was agreed that October 4, 2016 and October 18, 2016 will be study
sessions for the budget. October 19, 2016 is also a possibility if another session is needed.
"Action Item — revise budget calendar for presentation at the May 17, 2016 Council
meeting.
No further action necessary.
Capital Replacement Plan: Presented by Finance Director, Ade Ariwoola.
The projects and years indicated on the plan were suggested by staff members that have
direct involvement with the items on the plan. Committee members agree that Council
should advise the Mayor to utilize an in -house professional to do an analysis of Dumas Bay
Centre as a first step to give an estimate of costs to either restore the building or tear it
down. Mr. Ariwoola is also looking in to potential funding for these projects.
"Action Item — revise the Capital Replacement Plan once more information is available.
Motion to move to communicate to the Mayor this Committee's priority to have Dumas
Bay inspected and a priority list of repairs available by next FEDRAC meeting; motion
seconded and carried 3 -0.
PAEC Quarterly Report: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola recommended that the Committee agree to have a PAEC Project Report
quarterly not monthly. The next report would be in July. The monthly report for the PAEC is
included in the Monthly Financial Report.
No further action necessary.
SCORE Report: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola recommended that the SCORE report be presented quarterly, unless there is
a major issue. Councilmember Koppang commented that SCORE is financially sound and
does not need to be addressed monthly. All Committee members agree. Any emergencies
can be addressed at Council.
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Federal Way
No further action necessary.
Monthly Financial Report — March 2016: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for March 2016. Notable areas
include:
• General and Street Funds — Total revenue is up by about 1.1 %. Spending is
reasonable. The budget amendment will be included in April.
• FWCC -Is doing reasonably well. Total operating YTD revenue is $469K which is
above budget by 2 %.
• UTax Rebate — Is doing reasonably well.
• REET — Is higher than previous year by about $447K.
• Sales Tax- Is doing well.
• PAEC - is 23% above YTD budget
• Dumas Bay - 17% above where we were in 2015
• Property tax is a little above 2015
• Construction is up by 15 %, but we must be cautious because it is not sustainable
• Ending fund balance — we are doing reasonably well according to our policy
We have received $1M of the $2M 4 Culture Grant for the PAEC. Mr. Ariwoola will be
invoicing another $500K this month. The goal is to receive the 4 Culture money before
we get into the Inter -Fund Loan. Theresa Yvonne was able to secure a $50K grant for
kitchen cabinetry for the PAEC.
Motion to approve and forward the March 2016 Monthly Financial Report to the May 3,
2016 consent agenda for approval; motion seconded and carried 3 -0.
Vouchers — March 2016: Presented by Finance Director, Ade Ariwoola.
Councilmember Honda requested an explanation regarding deeds that were on the
vouchers. Ms. Pearsall said that they were most likely deeds relating to Phase V
acquisitions.
Motion to approve and forward the March 2016 Vouchers to the May 3, 2016 consent
agenda for approval; motion seconded and carried 3 -0.
Action Items Report: Presented by Finance Director, Ade Ariwoola.
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" Federal Warr
Utility Tax Rebate Program — signs in lobby elevator, FWCC and Walmart.
No further action taken.
New Market Tax Credit: Presented by Finance Director, Ade Ariwoola on behalf of
Economic Director, Tim Johnson.
Based on the US Treasury's Community Development comment, they have almost doubled
the amount available for New Market Tax Credit. By them increasing the allocation, we
have a good chance for some of that money to come to the Pacific Northwest. We can go
back 24 months if any of our CDEs get allocation; we are not limited on what is left to be
done. Councilmember Moore would like a more detailed update as to what exactly Mr.
Johnson has been doing with Federal Way and New Market Tax Credits.
No further action taken.
Other Items:
NEXT MEETING: Tuesday, May 24, 2016 @ 4:30 p.m.
MEETING ADJOURNED: 6:00 p.m.
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