FEDRAC MINUTES 11-26-2019ACITY OF
h Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, November 26, 2019 Federal Way City Hall
4:30 p.m. SUMMARY MINUTES Hylebos Room
CALL TO ORDER: Committee Chair Dini Duclos called the meeting to order at 4:32 p.m.
COMMITTEE MEMBERS IN ATTENDANCE: Chair Duclos, Councilmember Assefa-Dawson.
COUNCILMEMBERS ABSENT: Councilmember Tran
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Accounting Manager, Chase
Donnelly; City Attorney, Ryan Call; Economic Development Director, Tim Johnson; Code Compliance
Officer, Valirie Johnson; Aquatics Coordinator, Stephanie Segovia; Community Development Director,
Brian Davis; Parks Director, John Hutton; Administrative Assistant II, Dana Almberg.
OTHERS PRESENT: Bob Kellogg, Federal Way resident.
PUBLIC COMMENT: Bob Kellogg, Federal Way resident spoke in favor of Agenda Item A, Agreement
for demolition of fire damaged structure. He feels this residence is a safety issue and continual
problems with fires and squatters.
A. APPROVAL OF SUMMARY MINUTES —October 22, 2019 MEETING
Motion made by Councilmember Assefa-Dawson to approve the minutes from October 22, 2019
as written; motion seconded by Chair Duclos and carried 2-0.
B AGREEMENT FOR DEMOLITION OF FIRE DAMAGED STRUCTURE: Presented by Code
Compliance Officer, Valirie Johnson.
Ms. Johnson gave an overview of the fire damaged structure at 33214 33rd Avenue SW,
Federal Way that is in need of demolition. The request is being made to approve a contract to
Woodland Industries General Contracting for the demolition of the mentioned property.
Upon completion of the Goods and Services Agreement for Demolition of the Fire Damaged
Structure, there will be no future costs.
Background Information:
• The City will secure a lien against the property to recover the cost of abatement.
• Property owner allegedly abandoned the property in 2017. At this time the house had
been empty for at least four years.
® Code Compliance has received on -going complaints regarding the property being a
Public Nuisance and being occupied by squatters.
Violation letters have been mailed to property location, and current mailing address of
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the property owner with no response. Correspondences are returned to sender,
unable to forward.
October 10,2018 South King Fire & Rescue (SKFR) responded to a house fire at said
location. The house was unoccupied, but appeared to have been occupied by illegal
squatters. Per SKFR, candles were the possible source of the ignition.
May 23, 2019 SKFR responded to a house fire at said location. The house was
unoccupied. The fire was later determined to be Arson.
Given no response from listed owner, staff obtained three bids for demolition, the
lowest of which is $33,467.51.
Finance Director Ariwoola asked if there is a budget for this and Mr. Davis stated there is
money allocated in his budget for this. There is no additional funding needed. Mr. Davis
stated he can pay for this within the current budget. However, in the information memo from
Code Compliance Officer Valirie Johnson, the financial impact states that the cost of
Demolition Fire Structure at 33214 33rd Ave SW "was not included within the approved
budget".
Motion made by Councilmember Assefa-Dawson to forward Option 1, to the December 3, 2019 consent
agenda for approval; motion seconded by Chair Duclos and carried 2-0.
C. TOURISM ENHANCEMENT GRANT RECOMMENDATION FOR JANUARY—DUNE 2020: Presented by
Economic Development Director, Tim Johnson.
Economic Director Johnson stated that two rounds of the Tourism Enhancement Grants are
included in the Lodging Tax Advisory Committee work program and budget for 2020. The first
round is for events and programs that take place from January through June 2020. The second
round is for events and program that take place from July to December 2020.
The request being made is to approve the Tourism Enhancement Grant for the first round to the
Federal Way Harmony Kings in the amount of One Thousand and Five Hundred and 00/100,
$1,500.00.
Motion made by Councilmember Assefo-Dawson to forward Option 1, to the December 3, 2019
consent agenda for approval; motion seconded by Chair Duclos and carried 2-0.
D. CONTRACT AMENDMENT WITH ORCA PACIFIC: Presented by Aquatics Coordinator, Stephanie
Segovia.
Aquatics Coordinator Segovia gave an overview requesting the amendment for Good and
Services of the Community Center Pool Chemicals. The cost for pool chemicals was included
within the approved budget under the Parks Department. In accordance with the approved
budget, this item is funded at $52,000 b the General Fund. The requested funding level of
$99,000 each year for two years allows for variable cost estimates based on facility use and
unanticipated repair costs. This is an ongoing cost associated with operations and maintenance.
Motion made by Chair Duclos to forward Option 1, to the December 3, 2019 consent agenda for
approval; motion seconded by Councilmember Assefa-Dawson and carried 2-0.
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CITY UP
Federal Way
2020 FEE SCHEDULE: Presented by Accounting Manager, Chase Donnelly.
Accounting Manager Donnelly gave an overview of the 2020 proposed Fee Schedule. The City sets
fees for various items within its jurisdiction. The fees are reviewed every year by each department
and adjusted annually. The fee increases are based on inflation or recovery costs associated with
various licenses, permit processes and other business activities provided by the City. Other
adjustments have been made to remain consistent with surrounding jurisdictions.
Gradual increases have been included in land use, mechanical, plumbing, electrical, sign, and
building permit fees based on using the mid -year, Consumer Price Index for All Clerical Workers
(CPI-W) for Seattle -Tacoma -Bremerton area. Transportation impact fees increase based on a
three-year moving average of the WA State Department of Transportation Construction Cost
Index. These calculations have been the basis for prior adjustments to the fee schedule.
In section Thirteen of the proposed fee schedule, the City added the Surface Water
System Development Charge based on the proposed ordinance presented at the November 19th,
2019 City Council meeting. In addition, in section Thirteen, the City has included what Federal
Way Public Schools (FWPS) has proposed for the 2020 School Impact Fees. Currently, the City and
FWPS are in discussions regarding alternative fee calculation methods, and an amendment is
anticipated to be brought before City Council in the spring of 2020.
Motion made by Councilmember Assefa-Dawson to forward Option 1, to the December 3, 2019
City Council business agenda for approval; motion seconded by Chair Duclos and carried 2-0.
F. VOUCHERS 10/16/2019—11/15/2019 AND PAYROLL VOUCHERS 10/1/2019—10/31/2019:
Presented by Accounting Manager Donnelly.
Accounting Manager Donnelly summarized vouchers for October 2019. Deputy Mayor Honda
had emailed a few questions and Finance Director Ariwoola responded to those emails.
Motion made by Councilmember Assefa-Dawson to forward the October Vouchers to the
December 3, 2019 consent agenda for approval; motion seconded by Chair Duclos and carried 2-
0.
G. MONTHLY FINANCIAL REPORT— OCTOBER 2019:
Accounting Manager Donnelly summarized the October 2019 Monthly Financial Report. Notable
areas include:
• Community Development permits and fees: $1.5M above 2019 year-to-date budget and $1.6M
above 2018 year-to-date collections. Some of the major permits and review fees include
Traditions; Federal Way Senior Housing, DaVita Healthcare and some of the Storage projects.
• Sales tax is above 2018 year-to-date actual by $815K, and above 2019 year-to-date budget by
$392K.
• Business License Fees: $18K above 2019 year-to-date budget, and $57K above 2018 year-to-date
collections. (On October 31 we went live with the State for Business Licensing)
• Total General & Street Fund expenditures are below the year-to-date budget by $580K. Police is
under the year-to-date budget by $293K primarily due to timing of expenditures and filling of
vacant positions.
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Utility tax revenues received year-to-date as reported on the monthly financial report totals
$8.3M and is $565K below 2018 year-to-date actual and $834K below 2019 year-to-date budget.
This is primarily due to Gas and Electricity decreasing. This has a lot to do with weather patterns.
Real estate excise tax 2019 year-to-date revenues of $3.98M is above 2018 year-to-date actual by
$835K and above the 2019 year-to-date budget by $1.1M. One commercial sale this month was
of CVS Pharmacy (total sales $8.8M) and that accounts for a portion of the $90K tax received.
Dumas Bay Centre Fund year-to-date revenue of $810K is $126K above 2019 year-to-date budget
of $684K and $19K above year-to-date 2018 actual.
Motion made by Councilmember Assefa-Dawson to forward the October 2019 Monthly
Financial Report to the December 3, 2019 consent agenda for approval; motion seconded by
Chair Duclos and carried 2-0.
H. DECEMBER 2019 FEDRAC MEETING:
Chair Duclos has proposed to cancel the December 2019 FEDRAC meeting since it is the week of
Christmas. The next meeting will take place in January 2020.
Director Ariwoola thanked Chair Duclos for all of her years of service and that it has been a pleasure
working with her and what she has brought to the table.
Chair Duclos thanked Director Ariwoola and stated it has been a pleasure working with him and that
she has learned a lot working with him, and the whole committee. She feels very honored to work
with such a great group of people.
Councilmember Assefa-Dawson thanked Chair Duclos for her leadership.
This item was for information/discussion purposes only.
OTHER:
NEXT MEETING: January 28, 2020
MEETING ADJOURNED: The meeting was adjourned at 5:23 p.m.
Attest:
r
Dana Almberg, Administrativ. stant II
Approved by Committee:
Date
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