Federal Way committee debates rewrite to clarify city's 2% public-art rule after auditor flags ambiguity

The Federal Way Finance, Economic Development and Regional Affairs Committee on April 28 debated a proposed rewrite of Ordinance 94-217 that would clarify when the city must set aside 2% of qualifying capital costs for public art.

The proposal, drafted by city legal staff and presented by Ryan, would narrow the ordinance's scope to publicly accessible new construction or projects above a $350,000 threshold, exclude routine maintenance and calculate the art contribution at time of contract award. Ryan said the rewrite responds to an ambiguity in the existing code and to a state auditor's interpretation that the city's past practice may not align with the ordinance text.

"There's some discrepancy here that this fund should have been funded at some point and it wasn't," Ryan told the committee, urging clarity so staff and council know how to apply the rule going forward. He said the $350,000 figure was chosen because it matches the city's small-works roster threshold and marks a level of project management appropriate for installing public art.

Public commenters and arts commissioners pressed the committee to preserve robust funding for the arts. "I think that it's a vital importance that this ordinance is kept that 2% continues to be used for those purposes," said Alex Milsa, a Federal Way resident. Katie Ashron, an arts commissioner, told the committee the commission's budget has been stagnant since 2017 and said the ordinance change affects the commission's ability to deliver murals, traffic graphics and diversion programs for youth.

Arts Commissioner Ken Bado cited a letter he said came from the Washington State Auditor's office, asserting the city did not properly set aside funds for the Federal Way Community Center project and recommending stronger internal controls. "The state auditor has pointed out an apparent discrepancy between our written policy and actual practice," he said.

Supporters of maintaining the 2% standard—including several councilmembers—said Federal Way has historically adopted a higher-than-average approach to public art and that any adjustment should be transparent and deliberate. Council Member Jack Walsh told staff he favored keeping the 2% multiplier but supported clarifying where it applies; Council Member Martin Moore and Council Member Melissa Hamilton also urged careful consideration of the threshold and administrative impacts.

Staff described administrative concerns about applying the requirement to small, often-unplanned maintenance projects, and suggested options to pool small contributions for later use or set a minimum annual general-fund contribution if capital spending is low in a given year.

Ryan said the draft is a starting point for council discussion and that he expects changes based on committee feedback. The committee did not vote on the ordinance itself; staff said the draft is slated for first reading at the full council meeting as part of the normal ordinance process and members asked staff to solicit additional written input before that hearing.

Next steps: staff will solicit follow-up input from committee members, refine the draft language and return to the council so the ordinance can receive its scheduled first reading.