FEDRAC MINUTES 01-10-2018 CITY'0i
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Wednesday,January 10, 2018 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: Deputy Mayor Honda, Councilmember Moore
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE:
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Theresa Yvonne, PAEC Executive Director; Court Administrator, Susan White; Financial
Analyst, Tom Brown; Financial Analyst, Myung-Hee Mueller; Accounting Supervisor, Chase
Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT:
PUBLIC COMMENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the November 28, 2017 minutes;
motion seconded and carried 3-0.
PROBATION ALCOHOL MONITORING CONTRACT (SCRAM): Presented by Court
Administrator, Susan White.
This is a request for a five year contract extension with Vigilnet. The rate was negotiated
from $7.10 to $6.50 per unit per day. Committee members asked various questions about
how the monitor works.
Motion to forward the proposed agreement to the January 16, 2018 consent agenda for
approval; motion seconded and carried 3-0.
PAEC OPERATIONS REPORT: Presented by PAEC Executive Director, Theresa Yvonne.
Ms. Yvonne commented that including the revenue in the report is problematic because
there are several revenue classifications for the facility. Including this information in this
report will not match the MFR. The intent of the report was to provide information on the
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operations of the facility. Committee Chair Duclos suggests the information be presented in
a narrative rather than a spread sheet. The narrative could include the average ticket price,
average expenditures for example. Deputy Mayor suggests tracking customers by zip code.
The PAEC uses zip codes to determine where the patrons reside. In general, 29% are from
Tacoma, 15% from Federal Way and the balance is other. Committee Member Moore
voiced concerned about the cost of renting the space. There were several studies
completed to determine facility rental prices. The rental fees for the PAEC are less
expensive than some comparable facilities. Deputy Mayor Honda suggests an electronic
sign to advertise at the facility. Currently, that would not be supported by City Code Zoning,
according to Mr. Call.
No further action.
Motion to move Item D to after the Moody's Annual Credit Report; motion seconded and
carried 3-0.
MONTHLY FINANCIAL REPORT— NOVEMBER 2017: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for November 2017. Notable areas
included:
• Dumas Bay — $310k above 2017 year to date budget, above 2016
• REET— $3.9m below 2016 year to date budget, above 2017 year to date budget by
$1m
• Sales Tax — 2% above 2017 year to date budget, but below 2016
• Utility Tax — 10% above 2017, doing better than 2016
• CD Permit Fees — $5.2k below year to date budget, 15% above 2016
• PAEC—There will be some changes when they close their books for the end of the
year
• General/Street Fund- Revenue is above year to date budget by $641k
• Fund Activity Summary— Fund balances are relatively alright
Motion to forward approval of the November 2017 Monthly Financial Report to the
January 16, 2018 consent agenda for approval; motion seconded and carried 3-0.
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Federal Way
VOUCHERS— NOVEMBER 2017: Presented by Finance Director, Ade Ariwoola.
$465k is the debt payment for the Community Center. Deputy Mayor inquired about a
payment for accommodations for a performing arts group. This is negotiated on a case by
case basis and reflected in the contract. Some performers ask for this in lieu of
compensation.
At 5:08 Committee Member Moore left the meeting.
Motion to forward the Vouchers to the January 16, 2018 consent agenda for approval;
motion seconded and carried 2-0.
At 5:11 Committee Member Moore returned to the meeting.
MOODY'S ANNUAL CREDIT OVERVIEW: Presented by Finance Director, Ade Ariwoola.
The credit rating for the City is very good. It is not unusual to down-grade. The Median
Family Income in Federal Way has gone down. The Fund Balance has also gone down. The
Net Cash Balance has weakened because we are spending down the Fund Balance. The
direct debt to operating revenue is good. We are in a good position to borrow money if
necessary. Committee Member Moore inquired as to how we compare with surrounding
cities. Our rating is better.
Motion to forward the attached Moody's Annual Credit Overview to an upcoming Council
agenda for presentation;motion seconded and carried 3-0.
RESOLUTION: AMENDING THE FUND BALANCE: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the proposed changes to the Fund Balance that include the
Traffic Safety Fund, Dumas Bay Centre, and Parks Equipment. The policy is that if we spend
down, we must replenish within three years.
Motion to forward the proposed Resolution the January 16, 2018 consent agenda for
approval; motion seconded and carried 3-0.
PAEC MONTHLY REPORT - NOVEMBER: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola anticipates that the completion of the construction project will be accepted
March. Even though we are over on contract to date amount, but we are still under the
total project budget and the contingency is still there. If you combine them, we are still
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below the total budget. An Interfund Loan cannot be used for operating costs as it is
intended for construction. If City Code is changed and a sign can be located on the PAEC
building, the construction of the sign can be paid for by using the Interfund Loan from the
project total budget.
Motion to forward the attached PAEC Construction Report to an upcoming Council
agenda for presentation; motion seconded and carried 3-0.
OTHER:
NEXT MEETING: Tuesday, January 28, 2018 @ 4:30 p.m.
MEETING ADJOURNED: 5:34 p.m.
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