FEDRAC MINUTES 02-27-2018 - AMENDED CITY'0i
AMENDED } Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, February 27, 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; Chief of Police, Andy Hwang; Senior Policy Advisor, Yarden Weidenfeld; Economic
Development Director, Tim Johnson; PAEC Executive Director, Theresa Yvonne; Accounting
Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT: Dana Hollaway, Sue Petersen, Sheila Brush, Debi Wagner, John Resing
PUBLIC COMMENT:
Ms. Dana Hollaway spoke regarding emails she sent to the Council and Mayor asking them
to pass a resolution similar to the City of Des Moines addressing the long term capacity of
SeaTac and to commit to allocate $150k matching funds to the proviso.
Ms. Sue Petersen let Committee Members know that a petition for the proviso now has
800 signatures.
Motion to amend the agenda and move Airport Noise to a and Jail Costs to C; motion
seconded and carried 3-0.
APPROVAL OF SUMMARY MINUTES: Motion to approve minutes from January 23, 2018 as
written; motion seconded and carried 3-0.
AIRPORT NOISE: Presented by Senior Policy Advisor, Yarden Weidenfeld.
The legislature was considering a budget proviso that would fund a study through the
Department of Commerce on the impact of airport noise in certain communities. The State
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would fund up to $500k with the balance matched by surrounding cities. Des Moines is
committing $250k and is looking for other cities to commit matching funds. The proviso
passed the House at $400k and the Senate at $300k, therefore neither funded for the full
$500k. Mr. Weidenfeld distributed email communications regarding the proviso. The
amount of funds for each city is still undetermined and depends on what the legislature
passes ($300 or $400k). It could be that they are potentially asking cities to contribute
based on population. Federal Way has not been formally approached. Mr. Ariwoola
commented on the financial condition of the City so as to remind the Committee that we
will need to increase revenue for 2018, 2019, and 2020. If we commit funds, it will be a
contract and the money will have to come from the General Fund. Council will need to
consider options to cover this and all the other items that will need to be funded in 2019.
At this point in time, all that is being asked is for an endorsement of the proviso. However,
if the Council were to endorse the proviso, it would be difficult to turn around and decide
not to fund it in 2019. On a separate issue, other cities are looking to hire a consultant to
represent their interests in court in regards to the Port of Seattle and the airport master
plan. Ms. Sheila Brush, representing Quiet Skies Puget Sound Des Moines, commented that
there is already an inter local agreement between some of the cities to pledge $1.50 per
citizen. Mr. John Resing commented that Des Moines pledged support, but reserved the
right to pledge any money. A robust discussion ensued regarding the proviso, the Port of
Seattle, and the interlocal agreement. All Committee Members agreed that a resolution
pledging support, not funds, for the proviso should be drafted.
Motion to present a Resolution to Council on the business agenda in support of the
pending State Proviso, similar to the City of Des Moines for approval; motion seconded
and carried 3-0.
Mr. John Resing passed out an interlocal agreement between several cities regarding a
sustainable airport master plan as well as a draft resolution for the proviso. Mr. Resing then
proceeded to discuss both documents. Committee and Councilmembers discussed if this
should be moved to a different place on the upcoming Council agenda.
JAIL COSTS—ADP AT SCORE: Presented by Chief of Police, Andy Hwang.
Chief Hwang gave background on our involvement in SCORE. The costs have steadily
increased every year. The ADP is calculated from April 1 to March 31. The prior year ADP
determines the City's cost for the following year. Chief Hwang believes that in 2019, the
cost will be flat or slightly less because the City is using jail alternatives, such as electronic
monitoring, etc. Keeping the ADP between 60-70 will help us maintain budget. The cost of
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maintenance and operations is what fluctuates. Committee Chair Duclos has requested that
the monthly SCORE report presentations at FEDRAC begin again.
No further action.
OPPORTUNITY ZONES CENSUS TRACT RECOMMENDATION: Presented by Economic
Development Director, Tim Johnson.
Mr. Johnson gave an update to a previous FEDRAC Committee report on Opportunity
Zones. The Governor's office has released a report regarding the selection of census tracts.
Each county will get three census tracts. Currently, Federal Way has five census tracts. Mr.
Johnson distributed a map designating the current census tracts in Federal Way. Census
tract 300.06 is the area that is extremely highly distressed as stated in the most recent
American Communities Survey. Mr. Johnson passed out a map specifically for 300.06 as an
opportunity zone. This is for private investors to invest in FW. Mr. Johnson recommends
300.06 as the census tract for Federal Way. Each census tract has the same number of
citizens. This tract has the highest opportunity area.
Motion to forward the submission of an OPPORTUNITY ZONE for the City of Federal Way
to the March 6, 2018 consent agenda for approval; motion seconded and carried 3-0.
MONTHLY FINANCIAL REPORT - FINAL DECEMBER 2017: Presented by Finance Director,
Ade Ariwoola.
Mr. Ariwoola summarized the Final Monthly Financial Report for December 2017. Notable
areas included:
• Sales Tax— 1% above 2017 budget but below 2016. Construction was driving sales
tax. We will get sales tax from the new schools.
• Admission Tax— Doing well.
• Business Registration Fee — Big jump in 2017 because of the new rates.
• Property Tax — Increased by 1.4% over 2016.
• Utility Tax — 2016 9.2m actual, 2017 9.6m, a 4% increase.
• Police Overtime — Compare 2016 and 2017, the dollar amount has gone up because
of an increase in hourly rate.
• PAEC— Shows the breakdown of revenue. Any other information can be included as
Council desires.
• REET— Dropped 20%.
Motion to forward approval of the MONTHLY FINANCIAL REPORT- FINAL DECEMBER
2017 to the March 6, 2018 consent agenda for approval; motion seconded and carried 3-
0.
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VOUCHERS—JANUARY 2018: Presented by Finance Director, Ade Ariwoola.
There were no questions/comments on the vouchers.
Motion to forward the Vouchers to the March 6, 2018 consent agenda for approval;
motion seconded and carried 3-0.
PAEC OPERATIONS REPORT: Presented by PAEC Executive Director, Theresa Yvonne.
Ms. Yvonne requested to present at FEDRAC a report on the PAEC quarterly. The
Committee agreed that it was reasonable to do so. Ms. Yvonne highlighted December.
There were 5,012 patrons in one month. In four months there were over 11,000 patrons.
No further action.
PAEC CONSTRUCTION REPORT—JANUARY 2018: Presented by Finance Director, Ade
Ariwoola.
The PAEC Construction Report will be finalized either at the end of March or beginning of
April. There is still $694k left in the contingency and the final Garco invoice should just
about match that. A 2% for the Arts invoice for $400k has been received. Some of the new
funding from the State should be received shortly to purchase equipment for the kitchen.
We will use some of that money to recoup some of the current spending we have made,
which will reduce our interfund loan.
No further action.
NEXT MEETING: Tuesday, March 27, 2018 @ 4:30 p.m.
MEETING ADJOURNED: 6:26 p.m.
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