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FEDRAC MINUTES 5-23-2017 CITY'0i Federal Allay City Council Finance/Economic Development/Regional Affairs Committee Tuesday, May 23, 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 STAFF MEMBERS IN ATTENDANCE: City Attorney, Ryan Call; Deputy Public Works Director/PAEC Project Director, EJ Walsh; PAEC Executive Director, Theresa Yvonne; IT Manager, Thomas Fichtner; Economic Development Director, Tim Johnson; Deputy Police Chief, Stephen Neal; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck. OTHERS PRESENT: PUBLIC COMMENT: Motion to amend the agenda and move items G-K to the beginning of the agenda; motion seconded and carried 3-0. APPROVAL OF SUMMARY MINUTES: Motion to approve the April 25, 2017 minutes; motion withdrawn. Deputy Mayor Burbidge requested that there be clarification on a sentence in the Sustainable Revenue Meeting with Chambers section and brought back to the June FEDRAC meeting for approval. AUTHORIZE PURCHASE OF STAGE DRAPERIES FOR THE PERFORMING ARTS & EVENT CENTER: Presented by PAEC Executive Director, Theresa Yvonne. Ms. Yvonne is not asking for alternate bids at this time. At this time, there is money available in the contingency/FFE for the draperies only. As the contingency money becomes available, probably in June, Ms. Yvonne will move forward with purchasing the items with other two bid award recipients (AV equipment and lighting). Tuesday, May 23, 2017 Page 1 CITY'0i Federal Way Motion to forward Option 1 (award contract to Rose Brand) to the lune 6, 2017 business agenda for approval; motion seconded and carried 3-0. AUTHORIZE PURCHASE OF AUDIO VIDEO AND COMMUNICATIONS EQUIPMENT FOR THE PERFORMING ARTS & EVENT CENTER: Presented by PAEC Executive Director, Theresa Yvonne. Morgan Sound was the lowest responsible bidder. We have done considerable business with Morgan Sound. The company is a family owned small business from Lynnwood. This will not be moved upon until after the money from the contingency/FFE becomes available. Motion to forward Option 1 (award contract to Morgan Sound) to the lune 6, 2017 business agenda for approval; motion seconded and carried 3-0. AUTHORIZE PURCHASE OF PRODUCTION LIGHTING EQUIPMENT FOR THE PERFORMING ARTS & EVENT CENTER: Presented by PAEC Executive Director, Theresa Yvonne. Pacific Northwest Theatre Associates, Inc. (PLATA) was the lowest responsible bidder. Motion to forward Option 1 (award contract to PLATA) to the lune 6, 2017 business agenda for approval;motion seconded and carried 3-0. UPDATE ON PAEC FFE: Presented by PAEC Executive Director, Theresa Yvonne. Some of the items will wait until after construction costs are tallied. No further action. UPDATE ON PAEC NAMING RIGHTS: Presented by PAEC Executive Director, Theresa Yvonne. There is nothing further to report. Ms. Yvonne will be going back to one of the companies that was not interested in naming the building, but may be interested in naming the theater. It was suggested by Chair Duclos to look at nonprofit organizations for naming rights. No further action. Tuesday, May 23, 2017 Page 2 CITY'0i Federal Way ORDINANCE: ZAYO FRANCHISE ORDINANCE AMENDMENT: Presented by IT Manager, Thomas Fichtner. There is language added under section five as to the location which includes "accept and approve per the Variance Procedures" as established in section eleven of the Federal Way Revised City Code. This is linking the requested variance with the ordinance to go aerial. This will not allow them to install new aerial infrastructure, but they can add to the old poles, if needed. Using existing poles is cost saving and causes less disturbance in the right of way. Motion to forward the proposed Ordinance to the lune 6, 2017 Council agenda for the first reading; motion seconded and carried 3-0. ZAYO CONDUIT SPACE LEASE AGREEMENT AMENDMENT: Presented by IT Manager, Thomas Fichtner. Mr. Fichtner distributed a draft of the amendment to the previous agreement. What we are leasing to them and what they are going to do for us will remain the same. In exchange for using out conduit, they have built a lot of infrastructure for us. By accepting this amendment, we will receive faster internet service, direct connection to Valley Com, connectivity to City of Auburn, connectivity to Federal Way Center Building, Cogent Data Center, and a substantial amount of fiber build out. To build our own fiber, it could be one million dollars. This agreement is extremely beneficial to economic development in the City, faster internet service for employees and impact Safe City by helping traffic timing. Zayo is a commercial provider which is beneficial for businesses in Federal Way. Motion to forward the proposed agreement to the lune 6, 2017 consent agenda for approval; motion seconded and carried 3-0. PAEC MONTHLY REPORT: Presented by Accounting Supervisor, Chase Donnelly. The City accessed the Inter Fund Loan in April in the amount of $3.24 million. Mr. Donnelly reported that we have spent about 76% of the total construction budget. The loan can be paid back at any time without penalty. No further action. MONTHLY FINANCIAL REPORT - APRIL 2017: Presented by Accounting Supervisor, Chase Donnelly. Mr. Donnelly summarized the Monthly Financial Report for April 2017. Notable areas include: Tuesday, May 23, 2017 Page 3 CITY'0i Federal Allay • Dumas Bay — Doing well • Sales Tax — Doing well, .4% above 2017 year to date budget • REET— Doing well, sale of Pavilion Apartments ($461K received), sale of Commons ($227K received) • Utility Tax — Doing reasonably well, 9.9% above 2016 year to date actual • Fund Balance — Doing well • CD Permits and Fees — Doing well, 3% above 2017 year to date budget The Dumas Bay assessment showed that we are doing all the immediate things we can to save money. It was requested that Mr. Ariwoola re-send his email regarding ST3 and revenue. Chair Duclos has requested a study session prior to an upcoming Council meeting to explore/re- examine all options on generating revenue. Motion to forward approval of the April 2017 Monthly Financial Report to the lune 6, 2017 consent agenda for approval; motion seconded and carried 3-0. VOUCHERS—APRIL 2017: Presented by Accounting Supervisor, Chase Donnelly. Mr. Donnelly was asked about payment made to MSC Crab Feed for $180. Mr. Donnelly will research and provide the answer tomorrow. Occasionally, businesses over pay for their business registration and request a refund for the overpayment. Motion to forward the Vouchers to the lune 6, 2017 consent agenda for approval; motion seconded and carried 3-0. TOURISM ENHANCEMENT GRANT- CYCLE 2 2017: Presented by Economic Development Director, Tim Johnson. It is proposed that the DESNA Cup, Federal Way Little League, and Powellswood Story Telling (the fourth recipient was not mentioned) receive grant money. Federal Way Knights was the only application rejected because they make almost $70k per year. Motion to forward the summer/winter 2017 TEG awards recommended by the LTAC to the lune 6, 2017 consent agenda for approval; motion seconded and carried 3-0. NEXT MEETING: Tuesday, June 27, 2017 @ 4:30 p.m. MEETING ADJOURNED: 5:43 p.m. Tuesday, May 23, 2017 Page 4