FEDRAC MINUTES 05-28-2019 ACITY OF
S, Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, May 28, 2019 Federal Way City Hall
4:30 p.m. SUMMARY MINUTES Hylebos Conference Room
CALL TO ORDER: Committee Chair Dini Duclos called the meeting to order at 4:30 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Chair Duclos, Councilmember Lydia Assefa-Dawson;
Councilmember Hoang via telephonically
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Susan Honda and Councilmember Koppang.
Councilmember Martin Moore arrived at 4:56 p.m.
STAFF MEMBERS IN ATTENDANCE: Accounting Manager, Chase Donnelly; City Attorney, Ryan Call;
Assistant City Attorney, Eric Rhoades; Economic Development Director, Tim Johnson; Parks Director,
John Hutton; Dumas Bay Manager, Rob Ettinger; Contract Administrator, Autumn Gressett;
Administrative Assistant, Dana Almberg
OTHERS PRESENT: Karen Brugato
PUBLIC COMMENT:
Karen Brugato, City of Federal Way Arts Commission,the arts commission read in your minutes
the proposed language for changing the admission tax, it's perfect and they couldn't change it
better. It's wonderful to see the City values its non-profits. Thank you for seeing the need was
there and for making the changes.
A. APPROVAL OF SUMMARY MINUTES—APRIL 23, 2019 MEETING
Motion made by Councilmember Assefa-Dawson to approve the minutes from April 23,2019 as
written;motion seconded by Chair Duclos and carried 3-0.
B. ORDINANCE: ADMISSION TAX EXEMPTION FOR NON-PROFIT ORGANIZATION:—Presented by
Assistant City Attorney Eric Rhoades.
Assistant City Attorney Rhoades gave an overview that according to the ordinance passed in 2017,
the City imposed an admission tax of 5% and is paid by ticket buyers and collected by ticket sellers
and remitted to the City. The 2017 ordinance included exemptions;the proposal that is being
presented would expand those exemptions by adding an exemption for all activities of non-profit
organizations that would have estimated financial impact of approximately$10,000 of lost revenue
to the City.
Motion made by Councilmember Assefa-Dawson to forward the proposed ordinance to First
Reading to the lune 4, 2019 Council meeting;motion seconded by Chair Duclos and carried 3-0.
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C. TOURISM ENHANCEMENT GRANT RECOMMENDATION FOR JULY—DECEMBER 2019: Presented by
Economic Development Director Tim Johnson
This is the Second phase of our annual grant programs. There were four applications received, an
overview is outlined below. The approval for these awards was in accordance with the LTAC
approved budget for 2019/2020 and within state direction for use of such funds.
• Speedo Jr. National Swimming Championships ($10,000.00) Handout provided showing
overview of event.
• Northern Body Building Championships ($2,500.00)
• Federal Way Knights Tournament XV ($2,500.00)
• DESNA Cup 2019 ($2,150.00)
Deputy Mayor Honda asked if we had anticipated more applicants to come through, and what we
did to reach out. Economic Development Director Johnson stated that the future really looks
bright as there are a few upcoming events such as the Men and Women's NCAA Championship
coming in 2021 that will bring in well over 10,000 hotel rooms, which will not only enhance Federal
Way but other neighboring Cities. Additionally, the International Underwater Robotics
Competition was hosted here last year, and the organization thought we did such a great job that
they are asking us to bid on it every other year, so we will be working on that.
Motion made by Councilmember Assefa-Dawson to forward the Tourism Enhancement Grants as
recommended by the Lodging Tax Advisory Committee to the June 4,2019 consent agenda for
approval;motion seconded by Chair Duclos and carried 3-0.
D. REPORT ON KNUTZEN FAMILY THEATRE: Presented by Dumas Bay Manager Rob Ettinger
Current revenue change from management with Center Stage Theatre managing to the City.
Center Stage was awarded the Resident Theatre Arts Group as of September. Below is a report of
2018— May, 2019:
2018 facility rental:
• January 1—December 31, 2018- Rental fee revenue generated was $27,315.00; Food revenue
generated was $15,304.00 for total revenue generated of$42,619.00.
• Rehearsal Hall Rentals were 16, Theatre Rentals were 9.
2019 facility rental:
• 2019 (January 1—May 1, 2019) Rental fee generated was $5,740.00; Food revenue generated
was 2,215.00 for a total revenue generated of$7,955.
• May 1—December 31, 2019 (projected)—Rental fee generated is$16,698.00, Food revenue
generated is $3,670.00 for a total of$20,368.00 (estimated)
• January 1—December 31, 209 (projected) Rental fee revenue currently secured is $22,438.00;
Food revenue currently secured is $5,185.00 for a total of$27,623.00 currently secured.
• Rehearsal Hall rentals currently booked are 9, and Theatre Rentals currently booked are 10.
These do not include Center Stage Theatre dates—we are working on a contract amendment
with them currently,so numbers most likely will go up for 2019.
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Deputy Mayor Honda asked what kinds of groups are renting the theatre. Dumas Bay Manager
Ettinger answered that it is a lot of Non Profits, Leadership training classes, Performance groups,
and the City does events there as well.
Deputy Mayor Honda asked how we advertise. Dumas Bay Manager Ettinger answered that we
have an advertising budget of$6,000 annually,the marketing campaign we do is Google AdWords,
which is up to a nickel a click, which is the max we will pay. It has been very successful.
Deputy Mayor Honda commented that the Federal Way High School has a new beautiful theatre
that seats 400 people and has new up to date equipment. She is concerned that it could
potentially be our competition once they start doing rentals. Dumas Bay Manager Ettinger
answered that although he hasn't seen their facility, our theatres have been upgraded, and based
on feedback from renters we haven't ever had to go rent or buy anything to accommodate
requests and that we have received positive feedback on our facilities.
This item was for information/discussion purposes only. No action was taken.
E. QUARTERLY REPORT ON PAEC OPERATIONS: Presented by Contract Administrator Autumn
Gressett
Contract Administrator Gressett gave a brief update of the first quarter of 2019:
• Facility utilized 50 out of 90
• Total Theater attendance was 5,354 which is a growth from the first quarter of 2018 of 52%
• The total event space attendance was 1,288 which is a growth from the first quarter of 2018 of
35%
• Gross Ticket Revenue which is inclusive of taxes,ticketing fees and client revenue is
$114,068.15 which is a growth from the first quarter of 2018 by 43.5%
• Gross Event Space/Theater Rental Revenue is 83,679.75 which is a growth from the first quarter
of 2018 of 185
• Admission Tax Revenue from Non Profit Organizations (January 2018—March 2019 is
$11,776.52
There was discussion on other events that fill up the time that isn't currently secured. We have
several performances secured for dates, and there are tentative events still in the works.
Councilmember Koppang asked if there is a "sweet spot" for us doing multi-day events. Dumas Bay
Manager Ettinger answered 75-100 depending on the agenda or the program. Meeting rooms can
accommodate 110 people.
This item was for information/discussion purposes only. No action was taken.
F. VOUCHERS 4/16/2019-5/15/2019: Presented by Accounting Manager Chase Donnelly
Accounting Manager Donnelly summarized the 4/16/19—5/15/19 vouchers in the amount of
$3,370,776.92.
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Deputy Mayor Honda had a question on page 91 regarding SWM-SeaTac Mall Area Drainage for
$96,119.69 and inquired what is it for? . Accounting Manger Donnelly stated it is for annual
Surface Water Management debt payment and that this is either the last or second to the last
payment for this particular loan.
Motion made by Councilmember Assefa-Dawson to forward the Vouchers to the June 4,2019
consent agenda for approval;motion seconded by Chair Duclos and carried 3-0.
G. MONTHLY FINANCIAL REPORT—APRIL 2019: Presented by Accounting Manager Chase Donnelly
Mr. Donnelly summarized the Monthly Financial Report.
Notable areas included:
® Community Development Permits & Fees are above the 2018 year-to-date actual by$578
thousand or 79.6% and above 2019 year to date budget by$507 thousand or 63.6%. Major
permits and review fees this year include Traditions at Federal way senior housing, Davita
healthcare office park, TILT 348 office, and Federal Way premier storage.
® Business License Fees are trending a little above 2018 year-to-date by 15 thousand but slightly
below 2019 year-to-date by 15 thousand, so it looks to be pretty good. We plan to go on the
State system next year;the State will charge fees for using the system in addition to the City's
fee for their administration.
® The total General & Street Fund expenditures are below the year-to-date budget by $671,000.
Police is under the year-to-date budget by$365,000 primarily due to timing of expenditures
and hiring of officers.
® Sales Tax is trending slightly lower than the prior year, partly due to construction sales have
decreased slightly than the previous year.
Q Real Estate Excise Tax has done reasonably well, the 2019 year-to-date revenues of
$1,321,851.00 is above 2018 year-to-date actual by$159,000 and above the 2019 year-to-date
budget by 280,000. There were 127 taxable residential sales and no commercial sales this
month.
The Fund Activity Summary our General/Street Fund is our main operating fund. The end
balance as of April 30, 2019 is $9,606.493.00. Council Required Fund Balance per resolution is
$9,500.000 so we are doing reasonably well.
Councilmember Moore asked clarifying questions about Dumas Bay Center fund balance.
Motion made by Councilmember Assefa-Dawson to forward approval of the Monthly Financial
Report—June 4,2019 consent agenda for approval;motion seconded by Chair Duclos and carried
3-0.
H. SUSTAINABILITY REVENUE: Presented by Chair Dini Duclos
Chair Duclos presented a handout titled October 8, 2018 Revenue Generating Ideas per the Ad Hoc
Committee. This has been previously reviewed. The purpose this evening is to discuss how we
should proceed. After some discussion,the three areas of focus have been suggested as
Marijuana tax,Transportation Benefit District and LID Lift.
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Marijuana tax is on the June 4, 2019 Council meeting for discussion regarding Advisory Vote on
Marijuana Stores in Federal Way. Deputy Mayor Honda will check with Mayor Ferrell regarding
who is identified as staff to lead the discussion.
Councilmember Moore suggested we look at Business Registration fees and possibly change the
formula based on square footage instead of headcount. Accounting Manager Donnelly said this is
something we would have to research.
This item was for information/discussion purposes only. No action was taken.
OTHER
Handouts presented at the May 28, 2019 Meeting:
• Tim Johnson, King County Aquatic Center December 10-14 2019 Speedo Winter Junior
Nationals—West and USA Swimming Olympic Trials Qualifying Event overview.
• Chair Duclos, Ad Hoc Committee's October 8, 2018 Revenue Generating Ideas.
NEXT MEETING: Tuesday,June 25, 2019 @ 4:30 p.m.
MEETING ADJOURNED: The meeting was adjourned at 5:34 p.m.
Attest: Approved by Committee:
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Dana AImberg, Administrative flAsistant II Date
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