FEDRAC MINUTES 05-24-2016CITY OF
Federal Way
City Council
Finance /Economic Development /Regional Affairs Committee
Tuesday, May 24, 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 4:31 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Honda and Councilmember
Moore
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Maloney
STAFF MEMBERS IN ATTENDANCE: Accounting Supervisor, Chase Donnelly; Assistant City
Attorney, Ryan Call; Community Services Manager, Jeff Watson; IT Manager, Thomas
Fichtner; Economic Development Director, Tim Johnson; Administrative Assistant, Robyn
Buck
OTHERS PRESENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the April26, 2016 minutes as
presented; motion seconded and carried 3 -0.
PUBLIC COMMENT:
2016 CDBG ANNUAL ACTION PLAN: Presented by Community Services Manager, Jeff
Watson.
Mr. Watson presented an annual spending plan PowerPoint for the use of the City's annual
CDBG grant. It serves two purposes; one for HUD to demonstrate performance and the use
of funds to Congress and to demonstrate to the community how the resources will be used
to support the needs of the community. The total amount that the City is receiving is
approximately so $674,000. This is a substantial increase from 2015; more than $50,000.
Mr. Watson presented a PowerPoint of the breakdown of the spending plan. The
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breakdown contains the following budget sections: Planning and Administrative —
approximately $135,000, Public Service — approximately $101,000, Capital — approximately
$438,000. Mr. Watson's PowerPoint showed the breakdown within each budget section.
Councilmember Moore would like the metrics of the results of services provided. Mr.
Watson said that he can provide that information based on 2015 numbers. All groups
benefiting from the money provided are required to fill out grant applications and
complete quarterly reports. The Human Services Commission makes recommendations as
to how much money agencies should receive. There is also contingency language to which
if there was more money available, there would be a pro -rata increase and if less money
available, a pro -rata decrease. Code Compliance officers cover the entire City, part of which
includes moderate /low income areas. The money is used to provide support for salaries for
Code Compliance officers as they are working in moderate /low income parts of the City.
Councilmember Maloney inquired as to whether or not some of these funds can be moved
into funds for other needs. It would depend on what the money was being used for. It must
be an eligible expense under CDBG regulations; salaries are included dependent upon what
the person was doing. There is a CDBG surplus from when the City began its entitlement in
2012. Funds are already committed for this year. The final decision is up to the City Council
and if the Council chose to direct staff to do something different, it is feasible. However,
those that are receiving these funds are planning /expecting those funds. We have of about
$600,000 total that we are working to spend from prior years. Mr. Watson will be coming
back to FEDRAC with recommendations for the expenditure of those dollars. In theory,
these funds could be used to build an Arcadia House for homeless youth as in Auburn. We
are in the midst of the Public Comment Period, which ends on May 31st. There have been
no public comments on this plan to date. There was a public hearing on Monday, May 16th
with the Human Services Commission and they recommended approval of the 2016 CDBG
Annual Action Plan, consideration by the FEDRAC, a public hearing and adoption by Council
on June 7, 2016.
Motion to forward the 2016 CDBG Annual Action Plan to the June 7, 2016 City Council
agenda for a public Hearing; motion seconded and carried 3 -0.
COMMUNITY CONNECTIVITY CONSORTIUM (0) PROJECT AGREEMENT 70: Presented by
IT Manager, Thomas Fichtner.
Mr. Fichtner presented a PowerPoint on C3.We did not join the new C3 right away because
we would have to pay dues, but we were not connected to the assets. 2015 we joined C3
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(15 -178) and are now a voting /dues paying member of the Consortium. The goal is to
connect agencies in order to improve public safety, community resiliency, enhance learning
and facilitate health care services and serve citizens with a high- capacity fiber network. This
will connect Federal Way to a world wide data base over fiber optics through the "TelCom
Hotel ", located in Seattle. University of Washington, King County, PNW GigaPOP are all
contributing most of the funds. This will not be for citizen use as it is not for profit. There
are restrictions as to what we can use this for. We have the ability to share assets with all
the others on the ring. Federal Way is making an in -kind contribution of 2 strands of fiber
acquired from a lease agreement with Zayo to finish the southern portion of the ring. We
will have a dedicated path to ValleyCom. The school district will have 144 strands between
our building and their building through this contract. Federal Way is looking to partner with
SCORE so that we can share fiber. SCORE is also looking to join C3. A lot of the cities that
are part of C3 agreement are also members of SCORE. The total budget for this network is
$384,000. C3 has contributed $130,000. This will not increase the demand on IT staff.
Motion to approve and forward the proposed Community Connectivity Consortium
Project Agreement to the June 7, 2016 City Council business agenda; motion seconded
and carried 3 -0.
RENT SUBSIDY: Presented by Assistant City Attorney, Ryan Call.
Mr. Call was asked to research the City's authority to control rent. The state has "pre-
empted the filed ". Mr. Call handed out the Attorney General's opinion from 1993 in which
the entire statute is printed. This means Congress has passed a statute that removes all
authority on the subject matter from counties and cities. To change this, it would be
necessary to change state law. As is, no other city in the state has the authority to control
rent.
No further action necessary.
POLICE DEPARTMENT BUDGET REPORT: Presented by Accounting Supervisor, Chase
Donnelly on behalf of Finance Director, Ade Ariwoola.
Mr. Donnelly summarized the memo. Councilmember Moore would like to see what police
officers are getting paid and what they have historically been paid, signing bonuses, etc. He
would like that addressed at the Council Budget meeting. Councilmembers had questions
as to how much it would cost to provide the requested over time, do we have the funds to
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do that and where would the funds come from, is Chief Hwang requesting this. If we
wanted to hire trained, police personnel from other entities while we are working on filling
our current openings, it would need to be negotiated with the Union. We are currently in
negotiations with the Guild. Councilmember Maloney would like to know if money for
overtime can come from salaries allotted for positions that are waiting to be filled rather
than from a fund balance. Mr. Donnelly will speak with Mr. Ariwoola and let
Councilmember Maloney know if that is possible.
No further action necessary.
MONTHLY FINANCIAL REPORT - APRIL 2016: Presented by Accounting Supervisor, Chase
Donnelly on behalf of Finance Director, Ade Ariwoola.
Mr. Donnelly said we are doing reasonably well and asked for questions. There were no
questions.
Motion to approve and forward the April 2016 Monthly Financial Report to the June 7,
2016 consent agenda for approval; motion seconded and carried 3 -0.
VOUCHERS — APRIL 2016: Presented by Accounting Supervisor, Chase Donnelly on behalf of
Finance Director, Ade Ariwoola.
Councilmember Moore inquired about a payment to Planned Parenthood. We made a
payment to them for their rental deposit and their overpayment.
Motion to approve and forward the April 2016 Vouchers to the June 7, 2016 consent
agenda for approval; motion seconded and carried 3 -0.
JULY —DEC TOURISM ENHANCEMENT GRANT AWARDS: Presented by Economic Director,
Tim Johnson.
Five out of the eight applications were approved, mainly due to the 50 mi radius. The
recommendations are: NW Women's golf open $3,000; USSSA of Washington, PNW
Championship $4,000; Federal Way Knights baseball club $5,000; Powells Wood Garden
Foundation $3,500; Desna Soccer Cup $5,000 (used for shuttle busses from the park n ride
located on 21st and from Mike Dunwiddie's parking lots.) If they were to park cars at the
park n ride they may need an agreement from WADoT.
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Motion to approve and forward the JULY —DEC Tourism Enhancement Grant Awards to
the June 7, 2016 consent agenda for approval; motion seconded and carried 3 -0.
New Market Tax Credits: Presented by Economic Director, Tim Johnson.
Congress is trying to get the money (seven billion dollars) awarded and deployed within the
same calendar year. Congress has also increased the CDEs to 125. The awards for 2016 will
not occur until December. The application due date for 2017 is in September 2016. There is
no cost for us to apply. Congress is considering re- working the time line to make it work
better for applicants. We are totally prepared and ready for underwriting. We have applied
with several CDEs. We have 2 years to request NMTC. If we are not awarded NMTC, we will
have to look at how to pay for the PAEC. Councilmember Maloney thinks we need to find
multiple ways to fund the project at the same time we are applying /waiting for NMTC. She
reiterated that she suggested a public /private partnership. Councilmember Honda wants to
know if the Councilmanic Bond has to be spent before we can get the NMTC. We do not
have to access the Councilmanic bond before we receive NMTCs. If we do not get NMTC,
that is when we would have to look at alternative funding options. Mr. Johnson said
Legendary Donuts is continuing to build. Marc McDonald's MOD Pizza was concerned about
the site and the businesses around it. He has submitted plans and should be finished with
that process in about 2 -3 weeks. He expects all to be finished by the summer.
No further action taken.
Other Items:
NEXT MEETING: Tuesday, June 28, 2016 @ 4:30 p.m.
MEETING ADJOURNED: 6:24 p.m.
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