FEDRAC MINUTES 06-26-2018 CITY Ot
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Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday,June 26,2018 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 4:33 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Tran, Councilmember Assefa-
Dawson via telephone
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Honda via telephone,
Councilmemeber Koppang (arrived at 5:12)
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Deputy Public Works Director, EJ Walsh; Community Development Director, Brian
Davis; Sound Transit Liaison, Tony Doucette; Administrative Assistant, Robyn Buck
OTHERS PRESENT: Dana Hollaway, Federal Way citizen; Judy James, Green Grotto and
Keystone Creations, LLC; Diana Noble-Gulliford, Federal Way citizen, Jon Suddarth,
StorQuest Self Storage; Dave Bird, StorQuest Self Storage; Jeff Oldright, Daffodil Storage;
Clifford Gehrett, Square Peak Properties, LLC; Patrick Reilly, Washington Self Storage Assn.
PUBLIC COMMENT: Ms. Hollaway provided comments regarding item C on the agenda.
Mr. Hollaway refereed to an email sent by Mr. Brian Davis regarding surplus property and
Sound Transit. She would like the City to develop a strategy to reduce the number of low
income ST3 surplus properties that will reduce the median income.
Diana Noble-Gulliford commented regarding implementation of the Growth Management
Act and the formula used to determine growth potential of the City. She feels that the
numbers are skewed and we are penalized for successfully managing our on-site waste.
APPROVAL OF SUMMARY MINUTES:
Motion to approve the minutes from May 22, 2018; motion seconded and carried 3-0.
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SOUND TRANSIT DISCUSSION: Presented by Deputy Public Works Director, EJ Walsh.
Mr. Walsh introduced Tony Doucette as the Sound Transit Liaison to the City. There are two
projects, Federal Way Link Project and the Tacoma Dome Project. Sound Transit is in the
statement of qualification phase for the Federal Way Link Project. There is no
action/communication from Sound Transit during this phase. It should be sometime in late
August when Sound Transit will initially receive the SOQs. The Tacoma Dome Project is in
the environmental due diligence phase. Committee Chair Duclos is concerned about the
loss of business in the City. WASDOT has surplus right away in the area between 1-5 and the
Costco location.
Information only.
MULTI-FAMILY ZONING RELATED TO SOUND TRANSIT ACQUISITION: Presented by
Community Development Director, Brian Davis.
Mr. Davis and other elected officials have concerns that the Sound Transit development
policies are geared toward a system and not an area. There is a statutory requirement that
surplus property gets offered up to qualified affordable housing providers and does not go
beyond that. Mr. Davis would like Sound Transit to provide a balance. He summarized
information from his report that was provided by a consortium. This is not an adopted
study, just additional data to provide context to Mr. Davis' letter to Sound Transit.
Committeemember Tran commented that this information be presented to the
Homelessness Task Force to see if that committee can offer input. The City cannot zone
specifically for affordable housing. Zoning would need to be done for all housing. This
would take significant research. Deputy Mayor is concerned with housing so close to the
transit center and the safety of citizens, specifically children. She would like to see the
housing in a different location. Committeemember Assefa-Dawson inquired as to how is
ST3 is gathering community/public engagement regarding TOD. Mr. Walsh said they have a
type of master planning and solicitation of community input.
Information only.
VOUCHERS — MAY 2018: Presented by Finance Director, Ade Ariwoola.
Committeemember Tran inquired about the following:
• Q: A refund of $2017.00
o A: Damage deposit return.
• Q: Payments to Federal Way Harmony Kings and Tacoma City Ballet
o A: Ticket sales paid back to those performers. PAEC collects revenue on the
performers' behalf.
• Q: Cell phone air time — Is this the normal amount of money spent per month?
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o A: City has employee cell phones. A large part of the cost is attributed to
Police; cell phones, MDC systems and in lieu of radios that do not have
frequency in parts of Federal Way.
• Q: Consultant contract for $184,000
o A: Public Works construction project on 356th St.
• Q: Medical services for $318,000
o A: Self-insurance claim payment
• Q: Operating rentals/leases for $95,000
o A: Mr. Ariwoola will research this and respond to Committeemember Tran.
Motion to forward the Vouchers to the July 3, 2018 consent agenda for approval; motion
seconded and carried 3-0.
MONTHLY FINANCIAL REPORT— MAY 2018: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report. Notable areas included:
• CD Permits and Fees — $7k above 2018 ytd budget, $30k above ytd 2017
• Sales Tax — 25k above budget & above 2017 ytd
• Business Registration Fee — doing alright.
• REET— $1.5m below 2017 ytd, will continue to level off and go down
• Probation Revenue — $4k below 2017 ytd actual
• Admission Tax— doing alright
• Dumas Bay — $108k above 2018 ytd budget, $13k below actual 2017
• Utility Tax — 495k above 2018 ytd, $159k below 2017 because of the weather
(electric and gas). Cell phone Utility tax has been on the decline every month for the
last 5 years.
Councilmember Koppang would like general information on the amount of sales tax paid
when the new Federal Way High School was built. This may give us a ballpark idea on
what we can expect in revenue from the construction of the new school.
Motion to forward approval of the MONTHLY FINANCIAL REPORT—MAY 2018
to the July 3, 2018 consent agenda for approval; motion seconded and carried 3-0.
MARIJUANA DISCUSSION:
Mr. Ariwoola handed out a report by entity on the distribution of marijuana sales revenue.
The revenue stream is based on the number of stores. Judy James says she holds licenses
within the City of Federal Way and that she has a City of Federal Way location in mind
where she would be ready to open. The revenue increases from 2016 to 2017, according to
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the report, are due to cities lifting their moratoriums and the State's increase in percentage
paid back to cities.
Committee Chair Duclos made a motion to bring a discussion on marijuana distribution in
the City of Federal Way so we can look at whether we want to remove the restriction on
the sale or not to the full Council; motion seconded and passed 3-0.
Councilmemeber Koppang recommends having a full presentation to explain the changes
that have happened since the law was first passed.
AGENDA BILL REVISION:
It was recommended that if there is an item on the agenda with financial impact, the
Finance Director should be able to make comment from a financial point of view. This is not
authorization, merely a comment. The comment would be conditional on the
circumstances that exist at signing. Mr. Call will create a draft, take it to the Mayor, and
then bring the document back to FEDRAC.
Storage facility owners have two major concerns; the significant increase in fees and
concern that they are being singled out. Storage facilities are not equally comparable to
offices and apartments because of the utility tax generated by the latter. Mr. Ariwoola and
a group of storage facility owners will meet to come up with ideas and additional
information to bring to the next FEDRAC meeting. Mr. Patrick Riley commented that up to
30% of tenants are small businesses. Mr. Oldright appreciates Council and Mr. Ariwoola
engaging with the facility owners. Mr. Suddarth has made two significant investments in
the City and appreciates the collaboration.
POLICE NON-BILLABLE OVERTIME:
Police non-billable overtime is slowing down in 2018, but will not differ greatly from the
last few years. It does increase from year to year due to COLA and loss of staff. The Police
budget is 54% of our total budget. To contract out the service would be more costly with
less coverage. Councilmember Koppang would like salaries included in this report to
compare regular wages vs overtime wages.
NEXT MEETING: Monday, August 28, 2018 @ 4:30 p.m.
MEETING ADJOURNED: 5:57 p.m.
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