FEDRAC MINUTES 2-28-2017 CITY'0i
Federal Allay
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, February 28, 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 4:33 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Honda
COMMITTEE MEMBER EXCUSED: Councilmember Moore
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; Performing Arts and Event Center Executive Director, Theresa Yvonne; Economic
Development Director, Tim Johnson; Recreation Manager, Doug Nelson; IT Manager,
Thomas Fichtner; Parks Director, John Hutton; Accounting Supervisor, Chase Donnelly;
Administrative Assistant, Robyn Buck.
OTHERS PRESENT: Director of SBDC, Rich Shockley.
PUBLIC COMMENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the January 31, 2017 minutes as
presented; motion seconded and carried 2-0.
PERFORMING ARTS & EVENT CENTER —AUTHORIZE PURCHASE OF AUDIENCEVIEW
TICKETING AND EVENT MANAGEMENT SOFTWARE: Presented by Performing Arts and
Event Center Executive Director, Theresa Yvonne.
Ms. Yvonne reviewed the memo that was attached pointing out that the software will
interface with Eden. The website is not maintained by the City of Federal Way and will be
separate from the City of Federal Way website. The software will be paid for out of the
PAEC operations budget. The request is for a Y year contract. It will become $36,000
annually and will be part of the PAEC budget next year.
Motion to forward Option 1 to the March 7, 2017 Council Business agenda for approval;
motion seconded and carried 2-0.
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TOURISM GRANT APPROVALS: Presented by Economic Development Director, Tim
Johnson.
There was over $22,000 requested for this round of TEG Awards. In addition to the Pacific
Bonsai Museum, Federal Way Harmony Kings, Rhododendron Species Botanical Garden,
the US Olympic Committee has asked us to help promote the Taekwondo State
Championships in March. Most grant requests come in July-September. 2018 looks like it
will be a big year for grant requests.
Motion to forward approval of the Spring 2017 TEG awards as recommended by the LTAC
to the March 7, 2017 City Council consent agenda; motion seconded and carried 2-0.
SMALL BUSINESS DEVELOPMENT: Presented by Economic Development Director, Tim
Johnson and Director of SBDC, Rich Shockley.
Mr. Shockley and Mr. Johnson have been working on a credit program for small businesses.
The results of the two year survey are outlined in the packet. 20% of the businesses
surveyed are using credit cards to fund their business. Online funding is an option, but can
be tricky to navigate. The goal is to get the right type of funding for the need of the
business. Federal Way contributes about 23% of the funding, High Line, Sound Side Alliance
Group (Des Moines, Seatac, Burien, and Normandy Park) make up the other funding
source.
No further action.
MONTHLY FINANCIAL REPORT - NOVEMBER 2016: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for December 2016. Revenue is
increasing but the expenses are increasing faster. Notable areas include:
• Dumas Bay— Doing really well.
• Sales Tax — 7% higher than 2015.
• Parks and General Recreation - Up 11% from the 2016 budget.
• REET— 2016 was one of the best years for the City.
• Utility Tax — Weather, use, price and volume of consumption and construction all
effect Utility Tax. Electric went up by 6.2, gas went down by 6.6, cable went up by
3.8, and cell phones decreased.
• FWCC— Doug Nelson, Recreation Manager, commented that things are stabilized and
the facility is doing well. They are looking at ways to improve revenue — up grade
software to increase online sales. In 2015 with the fee adjustment, the increase in
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membership was not as much as anticipated. Committee Chair Duclos would like
more analysis on the membership pass fee schedule and bring it to the next FEDRAC.
All employees got bumped up to $11 per hour, which increased the budget by more
than $50,000. FWCC retention rate is higher than most of the rest of the industry.
Motion to forward approval of the December 2016 Monthly Financial Report to the
March 7, 2017 consent agenda for approval; motion seconded and carried 2-0.
VOUCHERS— NOVEMBER 2016: Presented by Finance Director, Ade Ariwoola.
Page 122 — The $180,000 is for a ROW.
Motion to forward the Vouchers to the March 7, 2017 consent agenda for approval;
motion seconded and carried 2-0.
OTHER:
• Transparency Subcommittee — Councilmember Moore was excused from this meeting
and therefore, this topic was not presented.
• Sustainable Revenue Subcommittee — Councilmember Duclos reported that the
Federal Way Chamber would like to chair the subcommittee, but we would still control
the process.
• Sustainable Revenue Sources — Mr. Johnson distributed a handout with revenue
stream ideas. Councilmember Duclos asked Mr. Johnson to take a
motion/authorization to Council to get approval to establish a Tourism Promotion Area
(TPA). Committee members requested a comparable chart of surrounding cities in
regards to development impact fees presented at the next FEDRAC meeting on March
28, 2017. The Public Works and Community Development Directors would be
responsible for compiling the information.
• SafeKeeping— Mr. Ariwoola reviewed the Safekeeping Agreement with Key Bank. If we
buy an investment, like a CD, it will be kept at Key Bank.
• Moody's Credit Rating — Mr. Ariwoola reported that our rating was upgraded from AA3
to AA2. Deputy Mayor Burbidge would like a press release and a report that compares
other cities' credit ratings to be presented at the March 21, 2017 Council meeting.
NEXT MEETING: Tuesday, March 28, 2017 @ 4:30 p.m.
MEETING ADJOURNED: 6:30 p.m.
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