FEDRAC MINUTES 4-25-2017 CITY'0i
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday,April 25, 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 Honda, Councilmember Moore
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Koppang.
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Deputy Public Works Director/PAEC Project Director, EJ Walsh; PAEC Executive
Director, Theresa Yvonne; Accounting Supervisor, Chase Donnelly; Administrative Assistant,
Robyn Buck.
OTHERS PRESENT:
PUBLIC COMMENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the March 28, 2017 minutes as
presented; motion seconded and carried 3-0.
SUSTAINABLE REVENUE MEETING WITH CHAMBERS: Presented by Committee Chair,
Duclos.
Mr. Ariwoola and Committee Chair Duclos attended the sustainable revenue meeting with
Chambers and it went well. Lakehaven had two Commissioners present at the meeting.
They were adamant about not wanting a Utility Tax. There were ideas about working with
the community on a LID LIFT. There were also some comments about the Admissions Tax
being capped. The next meeting is on Thursday, April 26. Mr. Ariwoola has been asked to
present our PAFR to show how we compare with other cities. In comparison with
individual utility bills, we currently have one of the lowest water and sewer rates. A Levy
LID LIFT would not be available for several years. Committee Chair Duclos would like to
have a recommendation to take to a Council study session in the fall. Committee Chair
Duclos would like to have a lengthier discussion about the possibilities at the next FEDRAC
meeting. City Attorney Call will provide information from MRSC regarding lid lifts.
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No further action.
AUTHORIZE FOOD AND BEVERAGE MANAGEMENT AGREEMENT WITH SMG FOOD AND
BEVERAGE: Presented by PAEC Executive Director, Theresa Yvonne.
The PAEC food and beverage agreement includes a management fee percentage of gross
revenues or $50k, whichever is greater. Capital contribution is part of the agreement for
kitchen and banquet services and is amortized over 5 years.
Motion to forward the bid award for the food and beverage contact to SAVOR to the May
2, 2017 consent agenda for approval; motion seconded and carried 3-0.
PAEC AUTHORIZATION TO BID: STAGE DRAPERIES (D): Presented by PAEC Executive
Director, Theresa Yvonne.
Ms. Yvonne provided a memo that outlined/summarized each of the Authorization to Bid
Requests.
PAEC AUTHORIZATION TO BID: AUDIO VIDEO AND COMMUNICATIONS EQUIPMENT (E)
PAEC AUTHORIZATION TO BID: PRODUCTION LIGHTING EQUIPMENT (F)
PAEC AUTHORIZATION TO BID: FACILITY SIGNAGE PACKAGE (G)
PAEC AUTHORIZATION TO BID: ORCHESTRA CHAIRS, MUSIC STANDS, AND EQUIPMENT (H)
PAEC AUTHORIZATION TO BID: PLATFORMS AND RISER EQUIPMENT (1)
PAEC AUTHORIZATION TO BID: FURNITURE (J)
PAEC AUTHORIZATION TO BID: SMALL TOOLS AND EQUIPMENT (K)
Motion to forward Option 1 for items D-K to the May 2, 2017 consent agenda for
approval; motion seconded and carried 3-0.
PAEC QUARTERLY REPORT: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola will provide a monthly report from this point forward. The cash accumulated
as of the end of March is $21.82m against the $33.18m. The three items that we need to
wrap up are the hotel site, naming rights, Inter-fund New Market bonding. The total of
these is $11.28m. The Inter-fund loan was approved for $13m. By the time construction is
finished, it is possible to have $6-7m left over from the Inter-fund loan. By Friday we will
have borrowed $3.13m from the Inter-fund loan. We will start reporting employment for
the section 108 loan as soon as the entire down town construction is complete.
No further action.
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SCORE QUARTERLY REPORT: Presented by Finance Director, Ade Ariwoola.
The March 2017 total population is 281. 91 are counted towards the City of Federal Way.
We are still doing well in comparison to 2016 despite the fact that the entire system is
going up.
No further action.
MONTHLY FINANCIAL REPORT - MARCH 2017: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for March 2017. Notable areas
include:
• Dumas Bay — Doing reasonably well and are above 2016
• Sales Tax — Holding steady
• REET— We will receive $227k from the sale of The Commons. We received $461k
from the sale of the Pavilion Apartments.
• Utility Tax — 14% above ytd budget
• Fund Balance - reasonably well in all areas
The Deputy Mayor would like to know the number of rooms and the frequency of use for
Dumas Bay.
Motion to forward approval of the March 2017 Monthly Financial Report to the May 2,
2017 consent agenda for approval; motion seconded and carried 3-0.
VOUCHERS— MARCH 2017: Presented by Finance Director, Ade Ariwoola.
PAEC items are not included in this month, but will be next month.
Motion to forward the Vouchers to the May 2, 2017 consent agenda for approval; motion
seconded and carried 3-0.
OTHER:
• Tim Johnson — did not attend, but I distributed the report
NEXT MEETING: Tuesday, May 23, 2017 @ 4:30 p.m.
MEETING ADJOURNED: 5:45 p.m.
Tuesday,April 25, 2017 Page 3