FEDRAC MINUTES 3-28-2017 CITY'0i
Federal Allay
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, March 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, Councilmember Moore
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Assefa-
Dawson.
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Public Works Director, Marwan Salloum; Community Development Director, Brian
Davis; City Traffic Engineer, Rick Perez; Recreation Manager, Doug Nelson; Community
Center Supervisor, Kimberly Shelton; IT Manager, Thomas Fichtner; Parks Director, John
Hutton; Parks Deputy Director, Steve Ikerd; PAEC Executive Director, Theresa Yvonne; PAEC
Operations Manager, Marlette Buchannon; Accounting Supervisor, Chase Donnelly;
Administrative Assistant, Robyn Buck.
OTHERS PRESENT: Dianna Noble-Gulliford, Federal Way Historical Society; Dave Berger,
Parks Commission
PUBLIC COMMENT: Ms. Noble-Gulliford spoke regarding Impact Fees for parks and open
spaces. She would like Council to consider collecting Park Impact Fees for the City of
Federal Way. Ms. Noble-Gulliford distributed the City of Bothell's Parks and Transportation
Fee Schedules.
Motion to amend the agenda to add item 1, Savor Food and Beverage Providers, and item
K, Impact of the State Proposed Budget on the City of Federal Way; motion seconded and
carried 3-0.
APPROVAL OF SUMMARY MINUTES: Motion to approve the February 28, 2017 minutes as
presented; motion seconded and carried 3-0.
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DEVELOPMENT IMPACT FEES REPORT: Presented by Public Works Director, Marwan
Salloum and Community Development Director, Brian Davis.
Mr. Salloum commented that the only fee collected is the Traffic Impact Fee, which pays
for future development. There is a Capital Improvement Plan for transportation that
identifies our projects. The Traffic Impact Fee was established by Council in October 2009
and took effect on July 1, 2010. The travel demand estimated need in 2009 was established
at $9,800 per trip, but it was negotiated to $2,729 per trip so as not to increase the burden
on development. Per Code this can be adjusted annually based on WSDOT's Construction
Cost Index plus a 3% administrative fee. A Traffic Impact Fee comparison of surrounding
cities was distributed. We are right about the average state-wide, a little less than the
average county-wide. A "trip" is any motor vehicle entering or leaving a development site
during the evening peak hours, typically between four and six pm; this is applied to
commercial, not residential. Residential has a set fee per dwelling of $3,575. This is a one-
time fee at the time of permitting. Another fee can be charged only if there is a change of
use. An analysis can be done to change the rates. An analysis will cost approximately $70K
and takes six to nine months. Sound Transit is exempt from paying Impact Fees. A proposal
will need to go to Council for authorization for the study and funding.
Motion for Committee to direct the Finance Director to work with both Public Works and
Community Development to find an avenue to fund a rate study; motion seconded and
carried 3-0.
TURF CONDITION AND RENOVATION PLAN: Presented by Parks Director, John Hutton and
Deputy Parks Director, Steve Ikerd.
Mr. Hutton spoke regarding the ongoing failure of the natural grass turfs in Federal Way. All
of the grass fields are failing. This is a serious problem because the loss of the Department's
revenue and the economic development dollars that come in with the large events will be
detrimental. Mr. Hutton reviewed the four available options. The best option is to invest in
specialized equipment. The fields at Celebration Park, Steel Lake, Saghalie, Lakota, and
Sacajawea all need to be replaced. Mr. Ikerd presented a power point showing the
different machinery. Some of the $750K in reserve can be used to purchase the equipment.
The cost for all the necessary equipment is $115k. Sand for the eight fields at Celebration
Park will cost $70k and become part of the operations budget next year. Funding can come
from the Parks Reserve Fund. It will take six to eight weeks to get the equipment.
Motion to take a detailed proposal to purchase the necessary equipment and sand for
turf renovation to the April 4, 2017 Council business agenda; motion seconded and
carried 3-0.
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COMMUNITY CENTER MEMBERSHIP PASSES AND REVENUE FOLLOW-UP REPORT:
Presented by Recreation Manager, Doug Nelson and Community Center Supervisor,
Kimberly Shelton.
Ms. Shelton distributed a handout detailing the Community Center's actual and projected
revenues from 2007 to present. She explained the reason for the difference in actual and
projected since 2015. The cost recovery for the Community Center is 90-95% compared to
other fitness facilities at 30%. The Community Center still anticipates continued support
from the City.
No further action.
EXTENSION OF CONTRACT WITH KING COUNTY INSTITUTIONAL NETWORK (I-NET)
SERVICES: Presented by IT Manager, Thomas Fichtner.
King County I-Net is our internet service provider. Mr. Fichtner proposes to increase
payment to $1,087 per month which will double our band width. I-Net is used for our Police
Department to connect to the State Intergovernmental Network. King County also manages
all Federal Way domain names. Mr. Fichtner proposes to extend the contract for another
three years at 200meg.
Motion to forward approval of the proposed Agreement to the April 4, 2017 consent
agenda for approval; motion seconded and carried 3-0.
SPILLMAN SERVER MIGRATION: Presented by IT Manager, Thomas Fichtner.
Spillman is a software server product that Police uses to keep all their records. It has always
been on a separate physical server. This migration will convert from a physical server to a
virtual server.
Motion to forward the proposed Spillman Server Migration Agreement to the April 4,
2017 consent agenda for approval; motion seconded and carried 3-0.
MONTHLY FINANCIAL REPORT - FEBRUARY 2017: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for February 2017. Notable areas
include:
• Dumas Bay — Doing well
• Sales Tax — Looking good
• CD Development and Fees - $66K above 2017 ytd budget
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• Parks Reserve Fund — Must be replenished within three years
• REET— Below 2016
• Utility Tax — $245K above 2017 ytd budget
• FWCC— Need to keep an eye on the revenue
• Property Tax — Will probably jump in May after people pay taxes
• Should start seeing revenue from the Admissions Tax
Motion to forward approval of the February 2017 Monthly Financial Report to the April 4,
2017 consent agenda for approval; motion seconded and carried 3-0.
VOUCHERS—JANUARY 2017: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola will let the Committee Members know if the $720 for MAAS360 is per month
or per year.
Motion to forward the Vouchers to the April 4, 2017 consent agenda for approval; motion
seconded and carried 3-0.
VOUCHERS— FEBRUARY 2017: Presented by Finance Director, Ade Ariwoola.
There were no questions regarding February Vouchers.
Motion to forward the Vouchers to the April 4, 2017 consent agenda for approval; motion
seconded and carried 3-0.
FOOD AND BEVERAGE SERVICE FOR THE PAEC: Presented by Marlette Buchannon.
Savor Food and Beverage Providers was selected as the provider of those services to the
PAEC. The proposed revenue to the City, based on rentals, food and beverage service, is
estimated to be $80k for the first year. The original revenue estimate only included
revenue for the rooms, not food and beverages.
IMPACT OF STATE PROPOSED BUDGET ON THE CITY OF FEDERAL WAY: Presented by Ade
Ariwoola, Finance Director.
Mr. Ariwoola presented a power point presentation summarizing current and proposed
pension plan. The State is proposing to remove their 20% contribution to LEOFF 2, leaving
the burden on the cities to make up the difference. Mr. Ariwoola, in conjunction with the
AWC, will be traveling to Olympia on April 3, 2017 to speak with legislators about the
financial impact this will have on Federal Way and other AWC cities. Councilmember Duclos
and the other Committee Members would like a presentation to the Council on April 4,
2017.
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OTHER:
• Sustainable Revenue — Councilmember Duclos is working on it.
• Utility Tax— Mr. Ariwoola. Continuing to follow up with Lakehaven.
NEXT MEETING: Tuesday, April 25, 2017 @ 4:30 p.m.
MEETING ADJOURNED: 6:54 p.m.
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