FEDRAC MINUTES 01-23-2018 CITY'0i
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday,January 23,2018 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: Councilmember Assefa-Dawson, Councilmember
Tra n
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Honda, Councilmember Koppang,
Councilmember Moore
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; IT Manager, Thomas Fichtner; Economic Development Director, Tim Johnson; City
Clerk, Stephanie Courtney; Accounting Supervisor, Chase Donnelly; Administrative
Assistant, Robyn Buck
OTHERS PRESENT:
PUBLIC COMMENT:
Motion to amend the agenda to add item A2; motion seconded and carried 3-0.
APPROVAL OF SUMMARY MINUTES: Motion to approve minutes from January 10, 2018 as
written; motion seconded and carried 3-0.
WASHINGTON STATE ARCHIVES PUBLIC RECORDS GRANT APPLICATION: Presented by IT
Manager, Thomas Fichtner.
Staff is seeking approval to apply for a grant for a software system by Gov QA. The software
will provide consistency and help facilitate management and responses for public records
requests. This is a one-time grant and we will be responsible for future funding. Mr.
Fichtner will submit the application with a request of two years of grant funding. The first
year would be for $16,550 and year two and beyond would be $13,200. The software
provides access to a web portal (Cloud based) that is interactive to the public and can cut
down on duplicate requests. This will also reduce the number of man-hours dedicated to
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public records requests in the Police, Law and City Clerks Departments. This software will
automatically track requests for law suits. This software would eliminate the use of the ftp
site to store public records requests.
Motion to forward Option 1 for approval on the February 6, 2018 consent agenda for
approval; motion seconded and carried 3-0.
MONTHLY FINANCIAL REPORT - PRELIMINARY DECEMBER 2017: Presented by Finance
Director, Ade Ariwoola.
Mr. Ariwoola summarized the preliminary Monthly Financial Report for December 2017.
Notable areas included:
• Sales Tax—The annual budget is $14.05m. Currently we have collected $13.01m.
Typically, more than 15% of our revenue comes in November/December.
• Utility Tax —The total annual budget is $12.2m. We have collected $11.18m thus far,
but December is typically a strong month.
• General Fund- The annual budget was changed based on the amended budget. We
have accrued $39.5 out of $41m budgeted thus far. Additional revenue will be
coming in for the 13th month, the final December report. Expenses were modified for
the General Fund last month. We have spent $44.4m out of $45.23m. The expenses
will increase because the salary payment made on January 5, 2018 is actually for
December. It will be included on the next report.
• Fund Balance — $11.334m annual budget is to be used in 2018.
• Designated Operating Funds- The budget is $29.7m. We have collected $27.86m thus
far.
• Traffic Safety/Red Light — Doing reasonably well.
• Jail Services — Police over time for December is reasonable compared to other
months. Committee Chair Duclos would like a SCORE report at the next FEDRAC.
Motion to forward approval of the MONTHLY FINANCIAL REPORT- PRELIMINARY
DECEMBER 2017 to the February 6, 2018 consent agenda for approval; motion seconded
and carried 3-0.
VOUCHERS— DECEMBER 2017: Presented by Finance Director, Ade Ariwoola.
Deputy Mayor inquired about a cancelation at the PAEC. It is most likely an inconsistency in
how refunds are coded.
Motion to forward the Vouchers to the February 6, 2018 consent agenda for approval;
motion seconded and carried 3-0.
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PAEC CONSTRUCTION MONTHLY REPORT— DECEMBER 2017: Presented by Finance
Director, Ade Ariwoola.
We will continue to report to FEDRAC on PAEC construction until Council officially accepts
the project. Once Council accepts the project and the State certifies that there are no
claims against the contractor, the retainage will be released. 2% for the Arts final bill has
not been charged yet.
No further action.
BUDGET CALENDAR: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola suggested that Committee/Council get started on budget calendar planning.
Goal setting could be part of the retreat. PAEC will need to be added to one of the dates.
Mr. Ariwoola presented the previous budget calendar so Committee Members to get an
idea as to how many dates they think they will need. Discussion at next FEDRAC.
No further action.
CAFR AWARD: Presented by Finance Director, Ade Ariwoola.
This is the 27th year in a row that the City of Federal Way has received the award.
No further action.
PAEC OPERATIONS REPORT: PAEC Executive Director, Theresa Yvonne was not available for
presentation.
TEG REQUESTS JANUARY-JUNE 2018: Presented by Economic Development Director, Tim
Johnson.
There will not be a Taekwondo State Championship this year. The Pacific Bonsai Museum
and Federal Way Harmony Kings submitted applications. The museum could not identify
that they were filling hotel rooms. The Harmony Kings asked for $2,000 and submitted two
applications. One application was to use the PAEC without a heavy subsidy by the Lodging
Tax Grant program. Mr. Johnson will recommend a grant to help educate non-profit
organizations to learn how to work their budgets to use our facility. Harmony Kings need to
grow the event. The recommendation is to award $2,000 to the Harmony Kings.
Motion to forward the TEG REQUESTS JANUARY-JUNE 2018 to the February 6, 2018
consent agenda for approval; motion seconded and carried 3-0.
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OTHER:
Economic Development —A major program by the Federal Government to help increase
financing in communities called Opportunity Zones. The program required states to pass
legislation for deployment of debt funding loans. This is a tax credit program to try to
deploy money in the private sector and identify areas of need. The program works similarly
to New Market Tax Credits. The FEDRAC committee agreed that one or two extra FEDRAC
meetings a year should be to specifically discuss economic development. Committee
members agreed that this topic should be discussed at the next Council meeting.
Motion to forward the Economic Development Opportunity Zone Federal Program on the
February 6, 2018 Council business agenda, seconded, passed 3-0.
Future Agenda Item: Economic Development
NEXT MEETING: Tuesday, February 27, 2018 @ 4:30 p.m.
MEETING ADJOURNED: 5:45 p.m.
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