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FEDRAC MINUTES 1-31-2017 (2) CITY'0i Federal Allay City Council Finance/Economic Development/Regional Affairs Committee Tuesday,January 31, 2017 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 4:30 p.m. COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Moore, Councilmember Honda COMMITTEE MEMBER EXCUSED: COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Assefa- Dawson, Councilmember Koppang, Councilmember Celski. STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Acting City Attorney, Ryan Call; Dumas Bay Manager, Rob Ettinger; Public Works Director, Marwan Salloum; Deputy Public Works Director, EJ Walsh; IT Manager, Thomas Fichtner; Performing Arts and Event Center Executive Director, Theresa Yvonne; Parks Director, John Hutton; Economic Development Director, Tim Johnson; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck. OTHERS PRESENT: Bob Roegner, Diana Noble-Guliford, Gerald Knutzen, Becca Martin PUBLIC COMMENT: APPROVAL OF SUMMARY MINUTES: Motion to approve the November 22, 2016 minutes as presented; motion seconded and carried 3-0. RETAINAGE RELEASE: Presented by Dumas Bay Manager, Rob Ettinger. Mr. Ettinger requests release of retainage for Knutzen Family Theatre HVAC installation. Motion to forward the acceptance of the Knutzen Family Theatre HVAC installation work as complete and forward the authorization of staff to release their retainage to the February 7, 2017 City Council consent agenda for approval; motion seconded and carried 3-0. Tuesday,January 31, 2017 Page 1 CITY OF Federal Way MICROSOFT ENTERPRISE AGREEMENT RENEWAL: Presented by IT Manager, Thomas Fichtner. Mr. Fichtner handed out a draft of Microsoft Enterprise three year agreement for all of the software licensing. The state negotiated agreement runs out this year. Mr. Fichtner added 5% to the contract amount because we do not know who will win the bid with the state. The contract is for the current MS licenses and for the additional twelve for the PAEC. Agreement is for $104,185 and includes 10% tax for Sound Transit. This software assurance offers $20 new software fee for staff for home use license. Motion to forward the proposed agreement to the February 07, 2017 business agenda for approval; motion seconded and carried 3-0. AWARD OF THE PERFORMING ARTS AND EVENT CENTER ORCHESTRA SHELL: Presented by Deputy Public Works Director, EJ Walsh. Mr. Walsh 3 bids, 2 were responsive. Available funding comes from the $1,780,370 construction contingency. The contingency in the FEDRAC packet includes piano erroneously. To date, 17% has been spent on construction. Wenger was the lowest responsive bidder at $403,459.00. The project is on time and on budget. Our consultant recommended a 5% contingency ($1.78m). It is lower than other contingencies because it is a specified project, not standard/typical. Motion to forward option 1 to the February 07, 2017 consent agenda for approval; motion seconded and carried 3-0. PAEC QUARTERLY REPORT: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola presented the PAEC quarterly report as through the end of 12/31/16. Based on where we were at the end of December, this cash balance will sustain us until the end of February or March. The monthly payment is $1.3-$1.5m. Through the end of today, we have out of the $2.8m; we have paid another $1.5m. 92% of the one million in private donations has already been raised and in the bank. CDBG can only be used for specific, qualifying expenses. The plan is to make another draw in March and that will most likely be the last one. We will net the entire 3m for the CDBG. The NMTC formula is set up so that we would receive about .87 to the dollar. No further action. Tuesday,January 31, 2017 Page 2 CITY'0i Federal Way FEDRAC SPECIAL MEETING FOR SUSTAINABLE REVENUE A & B: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola is asking the committee to review what type of revenue will be needed to keep City's operation in place. This would be a formal commitment at 2:30pm on FEDRAC meeting days. The purpose is to have an open conversation with the public to discuss funding options/ideas on how to fund the 2019-2020. Ms. Martin from the Chamber of Commerce suggests putting together a series of focus groups, rather than one on one. The direction is that the Committee can recommend something to the general Council. The FEDRAC committee authorizes Mr. Ariwoola to reach out to Chambers, Lakehaven, King Co fire, the City, and school district (pivotal partners) to create one focus group. No further action. HISTORICAL SOCIETY MOU: Presented by Finance Director, Ade Ariwoola. The MOU is collaboration between the Historical Society and the City. Mr. Ariwoola suggested changes in the MOU presented at FEDRAC. The changes are: (#1k) add "starting with year-end 2016" and add "m": The Historical Society will make their books and records available to the City for review. Motion to forward the MOU agreement, as amended, between the City of Federal Way and the Historical Society to the February 07, 2017 consent agenda for approval; motion seconded and carried 3-0. TAX RECOVERY SERVICES CONTRACT: Presented by Finance Director, Ade Ariwoola. We have been in contract with TRS, a utility tax auditing company, since 2010. Other companies are looking for 25-30%. TRS is charging us 23% and does not receive payment unless they collect the tax. Motion to forward the proposed agreement to the February 07, 2017 consent agenda for approval; motion seconded and carried 3-0. RESOLUTION: 2017 AMENDED FEE SCHEDULE: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola reviewed the changes between the 2017 adopted Fee Schedule and the presented amended Fee Schedule. There were no rate changes. The changes were due to columns that were missing. If Council would like, Dumas Bay fees can be included in the 2018 Fee Schedule. Tuesday,January 31, 2017 Page 3 CITY'0i Federal Warr Motion to forward the 2017AMENDED FEE SCHEDULE RESOLUTION to the February 21, 2017 consent agenda for approval; motion seconded and carried 3-0. MONTHLY FINANCIAL REPORT - NOVEMBER 2016: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola summarized the Monthly Financial Report for November 2016. Notable areas include: • General and street funds —The required fund balance is 9.5m. There is currently 10.2m in the fund. Some of that money is used to balance the budget in 2017. • Dumas Bay — Doing well. The November 2016 revenue is greater than the November 2015 by about 23%. Chair Duclos commend the staff at Dumas Bay for doing a very good job. • Self-insurance —There were high claims this year, but we do have a stop loss. • SCORE — Our ADP is going down as are others' cities' ADP. Motion to forward approval of the NOVEMBER 2016 MONTHLY FINANCIAL REPORT to the February 07, 2017 consent agenda for approval; motion seconded and carried 3-0. VOUCHERS— NOVEMBER 2016: Presented by Finance Director, Ade Ariwoola. There were several questions: • What is the "PAEC Pgm Ticket Advertising" —Advertisement on the back of the Federal Way Symphony program. • What is the business recruitment —Airfare for multiple NMTC trips. • What are the two F1 Tax Obligation Refunding vouchers — One is principle and one is interest on our bond. We pay interest twice a year and & principal once a year. • What are the replacement laptops — Mr. Ariwoola will provide an answer to the Committee via email. Motion to forward the vouchers to the February 07, 2017 consent agenda for approval; motion seconded and carried 3-0. OTHER: • Update on the Novogradac Conference — Mr. Johnson gave an update on the NMTC by summarizing his handout. • Transportation Benefit District (TBD) —There will be a presentation at the retreat. NEXT MEETING: Tuesday, February 28, 2017 @ 4:30 p.m. MEETING ADJOURNED: 6:33 p.m. Tuesday,January 31, 2017 Page 4