FEDRAC MINUTES 11-28-2017 CITY 4F
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, November 28, 2017 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 Honda, Councilmember Moore
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge, Councilmember Koppang
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Public Works Director, Marwan Salloum; Deputy Public Works Director/PAEC Project
Director, EJ Walsh; Community Development Director, Brian Davis; Parks Director, John
Hutton; Recreation Coordinator II/Aquatics, Craig Feldman; Performing Arts and Event
Center Executive Director, Theresa Yvonne; PAEC Operations Manager, Angie Kamel;
Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT: Dr. Tammy Campbell, Superintendent of Federal Way Public Schools;
Sally McLean, CF00 of Federal Way Public Schools
PUBLIC COMMENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the October 24, 2017 minutes;
motion seconded and carried 3-0.
COMMUNITY CENTER POOL CHEMICAL VENDOR CONTRACT: Presented by Recreation
Coordinator II/Aquatics, Craig Feldman.
This is an on-going contract for pool chemicals. This is the first amendment for this
contract.
Motion to forward the proposed Amendment Number 1 to the Goods and Services
Agreement with Orca Pacific Inc to the December 5, 2017 consent agenda for approval;
motion seconded and carried 3-0.
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SCHOOL IMPACT FEE PRESENTATION: Presented by Federal Way Public Schools
Superintendent Dr. Campbell and Sally McLean, CF00.
Dr. Campbell gave background information on why school impact fees are necessary. Ms.
McLean showed a Power Point presentation that outlined the algorithms used to calculate
the fees. The fees are used to off-set capacity, are a one-time fee, and calculated annually
based on the previous five years. Committee members questioned the use of past
information to predict future rates, specifically multi-family school impact fees. Federal
Way had an unusual boom in apartment complex construction. Some of those complexes
are five bedroom units. Those complexes are directly compared to units that have one or
two bedrooms. Federal Way had the highest numbers. Committee and Councilmembers
agree that an increase is necessary, but are very concerned about the rate.
No further action.
APPROVAL OF THE LTAC (TEG) RECOMMENDATIONS FOR JANUARY THROUGH JUNE 2018:
Presented by Economic Development Director, Tim Johnson.
Mr. Johnson requested that this item be pulled from the agenda and included in the
January FEDRAC agenda.
No further action.
PAEC ORCHESTRA SHELL— PROJECT ACCEPTANCE: Presented by Deputy Public Works
Director/PAEC Project Director, EJ Walsh.
Mr. Walsh gave background regarding this project including that this qualifies as a Public
Works project and therefore Council must accept the project as completed. Paperwork is
then submitted to Labor and Industry, after which the retainage is released. The $20,000
contingency has already been committed by Council direction to other items which include,
stage draperies, audio visual equipment.
Motion to forward the Option 1 to the December 5, 2017 City Council consent agenda for
approval; motion seconded and carried 3-0.
2018 FLEET MAINTENANCE — CONTRACT AWARD: Presented by Public Works Director,
Marwan Salloum.
Eagle Tire and Automotive scored the highest for both the police and non-police vehicles.
Mr. Ariwoola requested clarification on item five of the proposal. The amount in question is
a mark-up on top of the cost of the part.
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Motion to forward the Option 1 to the December 5, 2017 City Council consent agenda for
approval; motion seconded and carried 3-0.
TAX RECOVERY SERVICES CONTRACT: Presented by Finance Director, Ade Ariwoola.
TRS is still working on gathering information on utility tax owed by TracPhone. TRS does not
get paid until the taxes owed are collected by the City. The contract is a two year contract
with an amount of 23% of the collections received by the City of Federal Way.
Motion to forward the proposed agreement to the December 5, 2017 consent agenda for
approval; motion seconded and carried 3-0.
RESOLUTION: 2018 FEE SCHEDULE: Presented by Finance Director, Ade Ariwoola.
Committee and Council members expressed concern with the School Impact Fees and how
those fees may cause developers to look elsewhere. Councilmember Moore suggested that
the School Impact Fees be removed from the proposed 2018 Fee Schedule and moved to
Council business. Some of the fee changes included, rounding up dollar amounts, removal
of PAEC fees from the Fee Schedule, and recalculation of labor costs.
Motion to add the School Impact Fee as a business item for Council discussion on the
December 5 Council meeting for approval; motion seconded and carried 3-0.
Motion to forward the balance of the proposed 2018 Fee Schedule Resolution to the
December 5, 2017 consent agenda for approval; motion seconded and carried 3-0.
MONTHLY FINANCIAL REPORT— OCTOBER 2017: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report for October 2017. Notable areas
included:
• Dumas Bay — Doing really well. Recovered more than 110% of their costs.
• REET— 2017 ytd revenue is below 2016 ytd actual, but above the2017 ytd budget.
• Retail Sales Tax— Increased by almost 1%.
• Utility Tax — Cell phone tax has been decreasing.
• Business Registration Fees - Are currently below budgeted amount.
• Self-insurance — Doing reasonably well.
• PAEC — Doing reasonably well.
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Motion to forward approval of the October 2017 Monthly Financial Report to the
December 5, 2017 consent agenda for approval; motion seconded and carried 3-0.
VOUCHERS— OCTOBER 2017: Presented by Finance Director, Ade Ariwoola.
Councilmember Honda requested clarification on a PAEC printing charge for the Season
Passport. The contract was approved at a previous FEDRAC meeting. The voucher report
shows the payment.
Motion to forward the Vouchers to the December 5, 2017 consent agenda for approval;
motion seconded and carried 3-0.
PAEC MONTHLY REPORT - OCTOBER: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola, Mr. Walsh and Ms. Yvonne will discuss the PAEC FF&E and reconcile the
amount remaining. Construction payments for the facility will be finished in the first
quarter of next year. There is no current information on the brand of the hotel that will be
built next to the PAEC.
No further action.
OTHER:
• PAEC Operations Report —The facility is booked now through 12/23/17. The Nut
Cracker performance on 12/23/17 is almost sold out.
• Employee Salary Study Discussion —The last study was in 2007 and partially
implemented in 2008. Non-represented employee salaries are currently lagging
behind compared to other cities. Committee Chair Duclos requests that this subject
be included in the Council retreat.
• Mr. Johnson added that the US National Swim Team will come here in March to
practice before the championships in china.
NEXT MEETING: Tuesday, January 23, 2018 @ 4:30 p.m.
MEETING ADJOURNED: 6:41 p.m.
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