04-27-2021 FEDRAC MINUTESCITY OF
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, April 27, 20215:00 p.m.
SUMMARY MINUTES
Meeting held remotely via Zoom
CALL TO ORDER: Council Chair Tran called the meeting to order at 5:00 p.m.
COMMITTEE MEMBERS VIA ZOOM: Chair Tran; Councilmember Craft and Councilmember Kochmar.
COUNCILMEMBERS VIA ZOOM: Council President Honda; Councilmember Baruso and Councilmember
Moore.
STAFF MEMBERS VIA ZOOM: Finance Director, Ade Ariwoola; Deputy Finance Director, Chase
Donnelly; City Attorney, Ryan Call; Public Works Director, EJ Walsh; Executive Assistant to the Council,
Jeri -Lynn Clark; and Administrative Assistant II, Jennifer Pettie.
PUBLIC COMMENT: No public comment.
A. Approval of Summary Minutes — March 23, 2021 Meeting
Motion made by Councilmember Kochmar to approve the minutes from March 23, 2021; motion
seconded by Councilmember Craft and carried 3-0.
B. Dump Truck Replacement: Presented by Public Works Director, EJ Walsh.
Public Works Director EJ Walsh explained replacement of two City dump trucks was included in
the approved 2021/2022 budget. Truck 253 was scheduled for replacement in 2018, it is a 5-yard
truck purchased in 2003. Truck 257 was scheduled for replacement in 2017 and is a 10-yard truck
purchased in 2008. Director Walsh added that the City has adopted a working policy at the
direction of the City Council that we will not replace equipment until it is at the end of its useful
life cycle. In the summer, the trucks are used to haul materials and equipment; in the winter, they
are classified as emergency vehicles for snow and ice operations. The current approved budget is
$496,000 to replace the two trucks and the difference in quoted price is a shortfall of
$116,257.88. The proposed shortfall funding would come from 2020 Fleet Equipment Surplus of
$51,223.96 and Reserves from disposed equipment of $65,033.92. There would be no impact to
the General fund.
Councilmember Kochmar asked why the surplus price is so low for the two vehicles and who
purchases them? Director Walsh stated the sanders are non -operational and would be scrap
value and the trucks need extensive repairs. The City has a contract with the State Department of
Enterprise Services and they surplus them for the City.
Councilmember Moore expressed concern regarding future funds when we need more
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equipment. Director Walsh said they are doing everything they can to minimize any impacts to
the General fund by working with both the truck manufacturer and the upfitter company to
reduce the size and options of the trucks to obtain the lowest cost. Finance Director Ariwoola
added we normally try to set up a replacement value over the expected useful life of a vehicle
purchase. Unfortunately, when some of the Public Works trucks were acquired years ago, we did
not accumulate the correct amount needed once it was time to replace the vehicles. Director
Walsh said Public Works has been working on trying to get Fleet "cleaned up" since 2015 and still
has several more years to go.
Motion made by Councilmember Kochmar to forward Option 1 to the May 4th, 2021 consent
agenda for approval; motion seconded by Councilmember Craft and carried 3-0.
C. AP Vouchers 03/16/2021 - 04/15/2021 & Payroll Vouchers 03/01/2021— 03/31/2021: Presented
by Finance Director, Ade Ariwoola.
Questions were sent through email earlier to the Finance Director and the questions were
answered and sent back to all Councilmembers.
Motion made by Councilmember Craft to forward the Vouchers to the May 4th, 2021 consent
agenda for approval; motion seconded by Councilmember Kochmar and carried 3-0.
D. Monthly Financial Report — March 2021: Presented by Finance Director, Ade Ariwoola.
Finance Director Ariwoola shared his screen and summarized the March 2021 Monthly Financial
Report. Notable areas include:
• Park & General Recreation Fees
Sales Tax
Utility Tax
• General & Street Fund
® Jail Fund
Federal Way Community Center
• Traffic Safety Fund
® Hotel/Motel Lodging Tax
• Dumas Bay Centre
® Real Estate Excise Tax Fund
Councilmember Kochmar suggested the Federal Way Community Center should have a
Membership Drive and reduce the prices to get more people in the door and increase revenue.
Council President Honda asked once we bring staff back and open City Hall to the public, is there
an expectation for an increase in costs and do we know what those costs will be? Director
Ariwoola stated there will be an increase in costs but doesn't know what that cost will be. Some
examples of the cost increase are electricity usage, water usage, and copiers/printers.
Council President Honda asked if we can use some of the American Recovery Act money to pay
the expenses at the Performing Arts and Event Center (PAEC)? Finance Director Ariwoola stated it
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depends on how they define revenue shortfall. City Attorney Ryan Call added there are separate
grant programs in the Recovery Act that are specifically for facilities like Dumas Bay Centre and
the PAEC.
Motion made by Councilmember Kochmar to forward the March 2021 Monthly Financial Report
to the May 4th, 2021 consent agenda for approval; motion seconded by Councilmember Craft
and carried 3-0.
NEXT MEETING: May 25, 2021
MEETING ADJOURNED: The meeting was adjourned at 6:08 p.m.
Attest: Approved by Committee:
Jennifer Pettie, Administrative Assistant II Date
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