FEDRAC MINUTES 07-09-2018 - Special CITY'0i
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Monday,July 9, 2018 SPECIAL MEETING Federal Way City Hall
5:00 P.M. SUMMARY MINUTES Hylebos Conference Room
CALL TO ORDER: Committee Chair Duclos called the meeting to order at 5:04 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Tran, Councilmember Assefa-
Dawson
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Honda, Councilmember Johnson,
Councilmember Moore (5:30)
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Economic Development Director, Tim Johnson; Administrative Assistant, Robyn Buck
OTHERS PRESENT: Dana Hollaway, Bob Roegner, Evan Cook, Lindsay Foster
PUBLIC COMMENT: Evan Cook, representing the Multi Service Center Positive Outcomes
program, commented that they will be hosting a fashion show on August 25 at the EXT
Youth Center so youth can show case local clothing lines. Lindsay Cook introduced herself
as a representative of the Multi Service Center assisting McKinney Vento families.
REVENUE SUSTAINABILITY DISCUSSION: Presented by Finance Director, Ade Ariwoola.
Deputy Mayor provided a brief recap as to why there will be Special FEDRAC meetings for
the next four months. Each person in the room had an opportunity to engage in
conversation and make revenue suggestions. This was a brainstorming session only.
• Air B&B
• Increase sales tax rate
• Marijuana tax
• Nuisance tax on vacant buildings or vacant land, undeveloped land
• Storage facility fees - Mr. Ariwoola will be meeting with storage group next week and
will report back to the committee.
• LID Lift
• Increase in City fees — CD, PW, and PAEC to review the 2019 fees.
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Federal Way
• Increase fees for renting Chambers — We do not rent Chambers for profit. The fee is
to recoup costs associated with the rental.
• Increase business registration fees
• Mr. Call reiterated that there are things we can do to change behavior by increasing
fees, but must not discuss them in the context of making money.
• Parking garage fees
• Bringing in a lounge/bar/night life
• Taxing mortgage companies/real estate companies for vacant properties
• Charge for building inspectors to go out to rentals (mostly single family) and make
sure landlords are taking care of properties (suggestion will be going to LUTC for
review by Brian Davis). This is not necessarily a revenue generator. The cost would
cover the expense of the building inspector. Our community is built out and we are
now in re-development because of that we do not have the ability to cover costs of
deployment of re-development projects. This would require legislation. Mr. Tim
Johnson explained two types of taxing.
o Pigovian Taxes —Taxing to curb/control behavior. Sugar tax falls under this.
o Freemium Taxes — Ways in which the product or service may be restricted. Le.
Citizen's multiple requests for help with permitting. We do not charge for each
visit a person makes to the CD counter.
• Regarding the empty Sears building, bring in some sort of entertainment facility (like
Round One) —this is up to the property owners
• Deputy Mayor Honda asked why we have not increased the fees accordingly in the
past. Mr. Ariwoola replied that timing is important when raising fees.
• Regarding bringing in more retail - about 5% vacancy on retail, below 10% on office
space
• Bringing in more Med-tech industry
• Revolving rentals for small business or vendors
• Sports performance industry
• Transportation Benefit District
• Councilmember Tran suggested a comprehensive review of every fee to make sure
we are comparable with other cities.
• Jail costs (not revenue)
• Sponsorships and grant programming
• Sell advertising on City property
• B&O tax
• Fines; parking/traffic tickets, code compliance
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Federal Allay
• Councilmember Johnson inquired as to how well Dumas Bay is being marketed.
Deputy Mayor suggested more marketing toward weddings. Perhaps renting large
tents for weddings would increase the use and revenue.
• Rent Knutzen Theatre to churches
Information only.
CURRENT DEBT COMMITMENTS DISCUSSION: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola reviewed the debt commitment sheet.
Information only.
NEXT MEETING: Monday, August 13, 2018 @ 5:00 p.m.
MEETING ADJOURNED: 6:00 p.m.
Monday,July 9, 2018 Page 3