FEDRAC MINUTES 03-24-2020CITY OF
Federal May
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, March 24, 2020
5:00 P.M.
SUMMARY MINUTES
CALL TO ORDER: Council Chair Hoang Tran called the meeting to order at 5:05 p.m.
Federal Way City Hall
Council Chambers
COMMITTEE MEMBERS IN ATTENDANCE: Chair Tran, and via Webex: Councilmember Koppang,
Councilmember Kochmar.
COUNCILMEMBERS VIA WEBER: Council President Honda; and Councilmember Assefa - Dawson
STAFF MEMBERS IN ATTENDANCE: Finance Director, A& Ariwoola; Accounting Manager, Chase
Donnelly; City Attorney, Ryan Call; IT Manager, Thomas Fichtner; Chief of Police, Andy Hwang; Police
Commander, Kurt Schwan; and Administrative Assistant II, Dana Almberg
STAFF MEMBERS VIA WEBEX: Parks Director, John Hutton; Contract Administrator/Community
Relations Liaison, Autumn Gressett; and PAEC General Manager, Brian Hoffman
PUBLIC COMMENT: No public comment
A. APPROVAL OF SUMMARY MINUTES —February 25, 2020 MEETING
Motion made by Councilmember Koppang to approve the minutes from February 25, 2020 as
written; motion seconded by Councilmember Kochmar and carried 3-0.
B King County I -Net Agreement: Presented by IT Manager, Thomas Fichtner.
IT Manager Fichtner presented an Agreement with King County I -Net. King County I -Net is
the current provider of Internet services for the City. Currently that includes up to 200Mbps
of bandwidth for Internet access, 64 external IPv4 addresses, secure DNS services for the
City's domain names, and connectivity to the IGN (Inter -Governmental Network), which is
how Police and the Municipal Court connect to the secure resources provided by Washington
State.
The Cost for this service under the current contract is $1,087 per month. The new contract
will be $1,272 per month, which is an increase of $185 per month for the 3-year term of this
agreement starting 2/1/20 to 1/31/2023. The cause for the increase is for additional
bandwidth. (this contract will double the bandwidth from 200 Mbps to 400 Mbps.
The Increased cost is above the current allocated budget by $4,189 per year. Savings from
other line items such as office supplies and other savings will absorb the additional funding
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needed.
Motion made by Chair Tran to forward Option 1, to the April 7, 2020 consent agenda for
approval; motion seconded by Councilmember Kochmar and carried 3-0.
C. Purchase of Replacement Police Vehicle Laptops: Presented by IT Manager, Thomas Fichtner.
IT Manager Fichtner is requesting approval of our annual replacement of laptops for police
vehicles. The cost for the purchase of Nine Getac laptops is $37,194.80 and is funded by
equipment reserves. Most computer hardware and software in the City are on a five-year
replacement cycle. These laptops live an especially hard life inside a patrol vehicle and are in need
of replacement. There are Nine eligible laptops up for replacement and are included within the
2020 approved budget.
Council President Honda asked what is done with the laptops when they are replaced. IT
Manager Fichtner stated that we surplus them. We generally offer them to employee's first and
then it goes through the State for surplus.
Motion made by Chair Tran to forward Option 1, to the April 7, 2020 consent agenda for
approval; motion seconded by Councilmember Koppang and carried 3-0.
D. Purchase of New Police Vehicle Laptops: Presented by IT Manager, Thomas Fichtner.
IT Manager Fichtner stated this request is similar to last one, they are the same laptop (Getac)
and the same contract, but they are not replacement laptops rather new ones. The cost for the
seven Getac laptops was not included within the approved 2020 budget, however Police and
Finance have identified excess vehicle/equipment replacement reserves to fund this purchase
which is in the amount of $28,929.29.
Each laptop is purchased with a vehicle dock totaling $3,757.05 each. All seven laptops and
docks total $28,929.29.
Motion made by Chair Tran to forward Option 1, to the April 7, 2020 consent agenda for
approval; motion seconded by Councilmember Kochmar and carried 3-0.
E. Purchase of New Police Radios: Presented by IT Manager, Thomas Fichtner,
IT Manager Fichtner stated this request is for the purchase of seven additional Motorola 800MHz
radios for the police department. This was not included in the approved 2020 budget; however
Police and Finance have identified excess vehicle/equipment replacement reserves to fund this
purchase of $26,860.03. Each radio will add an ongoing cost of 439.00 per month ($468 per
year) for radio system access as well as a radio infrastructure reserve fee. The IT department has
$141,128 in the approved 2020 budget for this fee which will absorb the additional radios.
Finance Director Ariwoola stated that when we do budget amendment later this year, this item
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. Federal Way
will be brought forward for a budget amendment. We want IT to have the opportunity to move
forward and not have delays.
Motion made by Chair Tran to forward Option 1, to the April 7, 2020 consent agenda for
approval; motion seconded by Councilmember Koppang and carried 3-0.
F. MONTHLY FINANCIAL REPORT — February 2020: Presented by Accounting Manager, Chase
Donnelly.
Accounting Manager Donnelly summarized the February 2020 Monthly Financial Report. Notable
areas included:
• Sales Tax
• CD Permits and Fees
• Admission Tax
• Utility Tax
There is a new table included in the report that identifies the jail cost for new jail services. Year-
to-date spent is $181,665. Also included is prior year data from when we were with SCORE.
Councilmember Kochmar asked due to COVID-19, do we have any idea how much of an impact
this will have? Accounting Manager Donnelly stated that we are on a two month lag, so we
won't know any real impacts for a few months. We are coding anything related to COVID-19 to
a specific code. Council would like to have a spreadsheet showing a list of the spending done
towards this. Director Ariwoola stated that we can come up with a list a week or so after month
end.
Council President Honda asked if there is a plan when the community center reopens as far as
giving extensions or discounts to get people coming back to the center. Accounting Manager
Donnelly would defer that question to Parks Director John Hutton.
Motion made by Chair Tran to forward the February 2020 Monthly Financial Report to the
April 7, 2020 consent agenda for approval; motion seconded by Councilmember Koppang and
carried 3-0.
G. PAEC FINANCIAL REPORT: Presented by Contract Administrator/Community Relations Liaison,
Autumn Gressett.
Contract Administrator/Community Relations Liaison, Autumn Gressett gave an overview of the
memo that is in the packet. The cost to the City for 2019 operation for the Performing Arts and
Event Center (PAEC) was $878,855 and was included within the approved budget. In
accordance with the approved budget, this item is funded by the General Fund. In addition to
the funding from the General Fund, PAEC had to utilize $55,178 of revenue from the 2020
budget to cover the remainder of year end expenses for 2019.
The PAEC is currently under contract with Spectra Venue Management, who acts as our
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managing agent for the facility, and the City retains ownership of the facility and ultimate
responsibility for profit or loss.
In 2019 the PAEC held 88 events, totaling 29,521 patrons through the building. These events
brought in a total Gross Event Revenue of $907,678 which consisted of ticketing, event space
rent, concessions, catering and other ancillary income. Total Event Expenses associated with
Gross Event Revenue were $688,152, which brings the Net Event Operating Income to
$219,526. Additionally, the PAEC had total indirect expenses of $1,153,559. This included
salaries/wages, utilities, and other non-event expenses. After reduction of Net Event Operating
Income and Advertising/Scholarships, the PAEC Net Operating Income (Loss) was ($934,033.)
Councilmember Koppang thanked Contract Administrator Gressett for the overview. He
wanted to let her know if there is anything the Council can do to help the PAEC be more
successful to please reach out.
Council President Honda wanted to know if the indirect expenses included the payment to HUD.
Finance Director Ariwoola stated this does not include the payment to HUD or the Bond.
Council President Honda stated that for transparency reasons she would like to see it. Director
Ariwoola stated we can add a separate line for this on the Monthly Financial Report.
This item was for information/discussion purposes only. No action was taken.
H. VOUCHERS 02/16/2020 — 03/15/2020 AND PAYROLL VOUCHERS 02/01/2020 — 02/29/2020:
Presented by Accounting Manager, Chase Donnelly.
There were no questions or comments on the Vouchers.
Motion made by Chair Tran to forward the February Vouchers to the April 7, 2020 consent
agenda for approval; motion seconded by Councilmember Koppang and carried 3-0.
OTHER:
NEXT MEETING: April 28, 2020
MEETING ADJOURNED: The meeting was adjourned at 5:57 p.m.
Attest: Approved by Committee:
(Y-)vae r7n 2-0 ZU
Dana Almberg, Administrative-As�istant II Date
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