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City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday,June 25, 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 Tran; Councilmember Assefa-
Dawson via conference call.
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Susan Honda via conference call.
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Accounting Manager, Chase
Donnelly; City Attorney, Ryan Call; Contract Administrator, Autumn Gressett; Administrative Assistant,
Dana Almberg.
PUBLIC COMMENT: None
A. APPROVAL OF SUMMARY MINUTES— May 28, 2019 MEETING
Motion made by Councilmember Tran to approve the minutes from May 28, 2019 as written;
motion seconded by Chair Duclos and carried 3-0.
B. Release Retainage— PAEC Exterior Signage:— Presented by Contract Administrator Autumn
Gressett.
Contract Administrator Gressett gave a brief overview stating that the City worked with Graphic
House, Inc. on the design, construction and installation of the PAEC Exterior Signage and now that
the contract has come to a close, should we release the retainage in the amount of$5,195.24.
Motion made by Chair Duclos to forward the acceptance of the Graphic House, Inc. work on the
PAEC Exterior Signage as complete and forward the authorization for staff to release retainage in
the amount of$5,195.24 to the July 2, 2019 consent agenda for approval;motion seconded by
Councilmember Assefa-Dawson and carried 3-0.
C. AGREEMENT—BUSINESS LICENSING SERVICES: Presented by Finance Director Ade Ariwoola.
Director Ariwoola gave an overview of the Business Licensing Services Agreement with the State of
Washington Department of Revenue. By doing this it will allow businesses to logon to the State
and get their license in one place.
Motion made by Councilmember Tran to forward the Business Licensing Services Agreement to
the July 2, 2019 consent agenda for approval;motion seconded by Chair Duclos and carried 3-0.
D. Update—City's Obligations: Presented by Finance Director Ade Ariwoola.
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Director Ariwoola shared an overview that should give the Council an understanding of the City's
debt. Some of the highlights were:
• Score Bond —This bond will be refunded before the end of 2019.
• Target 2017 General Obligation Bond — If the property is not sold and paid off we may need
to re-bond in 2022.
• Section 108 Bond —This is paid for by the CDBG Grant funds, however, if we are not able to
show employment figures, we may lose the ability to use CDBG funds to service the debt
and will have to use General Fund to pay the debt.
• PAEC Construction Interfund Loan —Will have to be bonded, or paid off by April 2020
• PAEC Operations Interfund Loan — If Spectra cannot pay back loan, will have to be paid with
General Fund
• LED Street Light Interfund Loan —Will be paid back with savings on electricity bills.
• CDBG Operations Interfund Loan —We give the non-profit the money then bill them, it's
basically a cash flow management to run the CDBG program and there is no risk related to
this.
This item was for information/discussion purposes only. Motion made by Councilmember Tran to
forward the Update to the July 2, 2019 City Council;motion seconded by Chair Duclos and carried
3-0.
E. VOUCHERS 5/16/2019 - 6/15/2019: Presented by Finance Director Ade Ariwoola.
Director Ariwoola summarized the May 16, 2019—June 15, 2019 Vouchers and there were no
questions from the Committee.
Motion made by Councilmember Tran to forward the Vouchers to the July 2, 2019 consent
agenda for approval;motion seconded by Councilmember Assefa-Dawson and carried 3-0.
F. MONTHLY FINANCIAL REPORT— May 2019: Presented by Finance Director Ade Ariwoola.
Director Ariwoola summarized the May 2019 Monthly Financial Report. Notable areas include:
• CD Permits & Fees— 101.7% above 2019 year-to-date budget.
• Business License Fees—7.0% below 2019 year-to-date budget, mostly due to the economy.
• Property Tax—2.1% above 2019 year-to-date budget.
• Sales Tax—0.7% below year-to-date budget.
• Probation Revenue—As of the end of May, probation revenue is 58K less than
expenditures. New state law prevents the City from aggressive collection of both court and
probation fees from indigent individuals; most individuals in our courts are identifies as
indigents.
• Admissions Tax—This is a new source of revenue. It is being paid monthly and as of the end
of May, the City has collected $133K, which is below year-to-date actuals last year.
• Business License Fees—7.0% below 2019 year-to-date budget. We plan to go on the State
system this year. The State will charge fees for using the system in addition to the City's fee
for their administration.
• Park & General Recreation Funds— Below 2019 year-to-date budget by 0.1%.
• Utility Tax— 2.4% below year-to-date budget, this is greatly impacted by weather.
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• Real Estate Excise Tax— 24.7% above year-to-date budget. There were 141 taxable
residential sales and 3 commercial sales.
0 Lakehaven Utility District—The franchise fees received thru May amount to $300K; billings
for fire hydrants and streetlights are $322K. The billings for fire hydrants are quarterly, and
streetlights are monthly. Revenue from the franchise agreement is received monthly.
The Committee had asked for a report on the Lakehaven litigation. The City is currently in litigation
with Lakehaven and other water and sewer providers in Federal Way regarding the 7.75% excise
tax ordinance extended to business activities of public and private water and sewer utilities. The
City has spent $46K year-to-date in legal costs and $252K life-to-date related to this litigation.
Motion made by Councilmember Tran to forward the May 2019 Monthly Financial Report to the
July 2, 2019 consent agenda for approval; motion seconded by Chair Duclos and carried 3-0.
G. Election Cost: Presented by Finance Director Ade Ariwoola.
Director Ariwoola gave overview on past costs when the City had an item on the ballot:
• 2014 Actual - $292,798
• 2015 Actual - $149,479
• 2016 Actual —$200,777
0 2017 Actual —$285,402
0 2018 Actual —$202,865
0 2019 Budget- $200.000
The amount is dependent on if it is a General Election and the number of items on the ballot. If the
city puts an advisory item on the ballot, the cost is anywhere between $5-20K just for the advisory
vote. We won't know the total amount until after the vote. If other entities in King County have
items on the ballot, we will share the cost.
This item was for information/discussion purposes only. No action was taken.
H. SCORE Update: Presented by Finance Director Ade Ariwoola.
Director Ariwoola gave an overview of the SCORE ADP (Average Daily Population). Our contract is
for 60 beds and we have stayed consistent with that number. For the past year we have done
extremely well by staying within that amount.
This item was for information/discussion purposes only. No action was taken.
OTHER
NEXT MEETING: Tuesday,July 23, 2019 @ 4:30 p.m.
MEETING ADJOURNED: The meeting was adjourned at 5:20 p.m.
Attest: }� Approved by Committee:
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Dana Almberg, Administrative Assistant II Date
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