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06-22-2021 FEDRAC PACKET FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE [FEDRAC] Notice: Pursuant to Governor Inslee’s Proclamation 20-28, all in-person meetings are prohibited until further notice. The Mayor and City Council are providing opportunities for public comment by submitting written comment or calling into the meeting to provide oral testimony. To access these options please use the following: Click Here to Watch Online Live Streaming Video of the Meeting Listen to the live meeting: (888) 788-0099 or 253-215-8782 Meeting ID: 422 053 447 Sign-Up* here to give citizen comment during the meeting (via calling-in) Click Here to submit written comments to the City Council Watch from the Zoom mobile app with meeting: 422 053 447 and password: 452084 TUESDAY – June 22, 2021 5:00 P.M. AGENDA 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMITTEE BUSINESS Topic Title/Description Page # Presenter/ Time Allotted Action or Discussion A. APPROVAL OF SUMMARY MINUTES – MAY 25, 2021 3 J. PETTIE 5 MINUTES ACTION 6/22 Committee B. FEDERAL WAY PERFORMING ARTS AND EVENT CENTER TICKETING SYSTEM RFP 7 A. GRESSETT 5 MINUTES ACTION 7/6 Council Consent C SUMMER EXPERIENCE AND ENRICHMENT FOR KIDS GRANT 17 C. GEDDES 5 MINUTES ACTION 7/6 Council Consent D. AUTHORIZATION TO ENTER INTO AN INTERLOCAL AGREEMENT WITH KING COUNTY FOR USE OF RENTON DECANT FACILITY 19 T. THURLOW 5 MINUTES ACTION 7/6 Council Consent E. AP VOUCHERS 05/16/2021 - 06/15/2021 & PAYROLL VOUCHERS 05/01/2021 – 05/31/2021 35 C. DONNELLY 5 MINUTES ACTION 7/6 Council Consent F. MONTHLY FINANCIAL REPORT – MAY 2021 81 A. ARIWOOLA 5 MINUTES ACTION 7/6 Council Consent 4. OTHER 5. FUTURE AGENDA ITEMS NEXT MEETING: July 27, 2021 @ 5:00 P.M. City Staff: Hoang Tran, Chair Adé Ariwoola, Finance Director Leandra Craft Jennifer Pettie, Accounting Specialist Linda Kochmar 253-835-2527                       This page was intentionally left blank.  Tuesday, May 25, 2021 Page 1 City Council Finance/Economic Development/Regional Affairs Committee Tuesday, May 25, 2021 5:00 p.m. SUMMARY MINUTES Meeting held remotely via Zoom CALL TO ORDER: Councilmember Kochmar chaired the meeting and called the meeting to order at 5:01 p.m. COMMITTEE MEMBERS VIA ZOOM: Councilmember Craft and Councilmember Kochmar. EXCUSED COMMITTEE MEMBERS: Councilmember Tran. COUNCILMEMBERS VIA ZOOM: Council President Honda; Councilmember Baruso and Councilmember Assefa-Dawson. STAFF MEMBERS VIA ZOOM: Finance Director, Adé Ariwoola; Deputy Finance Director, Chase Donnelly; City Attorney, Ryan Call; Parks Director, John Hutton; Public Works Director, EJ Walsh; Community Center Manager, Leif Ellsworth; Contract Administrator, Autumn Gressett; Executive Assistant to the Council, Jeri-Lynn Clark; and Accounting Specialist Jennifer Pettie. PUBLIC COMMENT: No public comment. A. Approval of Summary Minutes – April 27, 2021 Meeting Motion made by Councilmember Craft to approve the minutes from April 27, 2021; motion seconded by Councilmember Kochmar and carried 2-0. B. Federal Way Community Center Water Heater Tank Replacement Bid Acceptance: Presented by Contract Administrator, Autumn Gressett. Contract Administrator Autumn Gressett explained they received one responsive bid and it was from Northwest Thermal Hydronics in the amount of $49,545.00. Gressett went on to add they originally anticipated the cost to replace the water heaters would be about $33,000.00, but it has come back that construction and labor costs are significantly higher than they have been in the past. Finance Director Ariwoola stated for clarification the staff memo says the water heater replacement was budgeted in the General Fund, but the budget book says it will be funded by a bond which has not been sold yet. Gressett stated there is money set aside in the Community Center maintenance budget to ensure they can move forward. Parks Director Hutton added Community Center Manager Ellsworth has the money in the budget until the bonds are sold. Councilmember Craft asked since money is already set aside in the Community Center 3 Tuesday, May 25, 2021 Page 2 maintenance budget, would the bond still need to be sold? Director Hutton said it would be ideal to fund the water heater tank replacement and replace the money spent by selling the bond. Councilmember Craft suggested to forward this item to the business agenda instead of the consent agenda so it can be discussed further with all of the Councilmembers. Councilmember Kochmar agreed. Motion made by Councilmember Craft to forward the proposed bid for the Federal Way Community Center Water Heater Tank Replacement to the June 1st, 2021 business agenda for discussion and approval; motion seconded by Councilmember Kochmar and carried 2-0. C. Ordinance: 2021/2022 Biennial Budget Amendment: Presented by Finance Director, Adé Ariwoola. Finance Director Ariwoola summarized the various changes to the 2021/2022 Budget. Council President Honda asked if the money the City is getting from the American Rescue Plan Act (ARPA) has to be divided equally over the four years? City Attorney Ryan Call stated there is no restriction on when the money can be spent. Councilmember Kochmar asked if all of the ARPA funds are going strictly to replacement of lost revenue? Finance Director Ariwoola stated no, there are four categories the money can go towards and the current estimated amount to go towards revenue shortfall is $13 million. Councilmember Kochmar asked what the additional ten percent is spent for from the solid waste utility tax? Public Works Director EJ Walsh stated the increase is for street overlay projects due to the trucks damaging residential roads. Motion made by Councilmember Craft to forward the proposed Budget Amendment to the June 1st, 2021 Regular Council meeting for a Public Hearing and First Reading of the proposed ordinance; motion seconded by Councilmember Kochmar and carried 2-0. D. AP Vouchers 04/16/2021 - 05/15/2021 & Payroll Vouchers 04/01/2021 – 04/30/2021: Presented by Deputy Finance Director, Chase Donnelly. Questions were sent through email earlier to the Finance Director and the questions were answered at the committee meeting. Motion made by Councilmember Craft to forward the April 2021 Vouchers to the June 1st, 2021 consent agenda for approval; motion seconded by Councilmember Kochmar and carried 2-0. E. Monthly Financial Report – April 2021: Presented by Finance Director, Adé Ariwoola. Finance Director Ariwoola summarized the April 2021 Monthly Financial Report. Notable areas include: • Park & General Recreation Fees • Sales Tax 4 Tuesday, May 25, 2021 Page 3 • Community Development Permits & Fees • Utility Tax • Business License Fees • Jail Fund • Federal Way Community Center • Real Estate Excise Tax • Traffic Safety Fund Motion made by Councilmember Craft to forward the April 2021 Monthly Financial Report to the June 1st, 2021 consent agenda for approval; motion seconded by Councilmember Kochmar and carried 2-0. F. Moody’s Investors Service: Presented by Finance Director, Adé Ariwoola. Finance Director Ariwoola explained the City has maintained for the past six years AA2 Moody rating, which is the second highest rating there is. Director Ariwoola added if the City starts spending reserve, it will affect the City’s rating. Council President Honda asked if the City borrows any money from the reserves, will it lower our rating? Finance Director Ariwoola stated only if we go below the policy guidelines will it lower the City’s credit rating. This item was for information/discussion purposes only. G. Ordinance: Utility Tax Rebate Program Amendment: Presented by Finance Director, Adé Ariwoola. Finance Director Ariwoola explained the proposed change is to extend the program period to the end of May to allow more time for getting the tax return to the City. Also, it is proposed to offer a flat amount versus actual utility tax paid on a customer’s bill. The flat amount is broken down by: gas ($20), electric ($25), water ($15), sewer ($15), garbage ($15), telephone, cell phone, and cable ($10) with a maximum not to exceed $100. Customers who qualify will have to provide one bill of each category versus having to provide all 12 months. Additionally, there is a provision in the proposed ordinance for people that pay their utility bill with their rent, they would need to provide their rental agreement that states utility tax is paid. Lastly, it is proposed to modify the ordinance to include all ages for low income residents. Motion made by Councilmember Craft to forward the proposed ordinance to First Reading on June 1st, 2021; motion seconded by Councilmember Kochmar and carried 2-0. H. Update: OpenGov Software: Presented by Finance Director, Adé Ariwoola. Finance Director Ariwoola shared his screen to show what the OpenGov software will look like. Director Ariwoola explained with this software, people are able to look at each department and their spending by month. Different funds, as well as specific vendors, will also be accessible. This item was for information/discussion purposes only. 5 Tuesday, May 25, 2021 Page 4 NEXT MEETING: June 22, 2021 MEETING ADJOURNED: The meeting was adjourned at 6:31 p.m. Attest: Approved by Committee: Jennifer Pettie, Accounting Specialist Date 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95