Tacoma City Business Preview - Week of February 19, 2013

Tacoma Smelter Plume Clean-Up
The main item on this week’s City Council study session agenda is an update on the Tacoma Smelter Plume Yard Sampling and Cleanup Program. Representatives from the Washington Department of Ecology will review implementation of Ecology’s Final Interim Action Plan for residential cleanup in areas affected by the Tacoma Smelter Plume.

The plan for residential cleanup takes into account some comments made on the 2011 plan, but some concerns remain about potential impacts the clean-up plan could have on residential development in the City, including concerns that the limitation to existing single-family residences could negatively impact infill development. Read more from Exit133 on concerns over plans for ASARCO smelter plume clean-up.

TBD Fee Implementation
Following this week’s study session, a special meeting of Tacoma’s
Transportation Benefit District Board (a.k.a. City Council) will be held. The Board will be briefed on the procedures for implementing the $20 car tab fee it approved at its first meeting last November. The Board will need to adopt a material change policy, issue an annual report, and develop a spending plan before the City can collect the vehicle fee, which will go to transportation needs in Tacoma.

Alcohol Impact Area
This week we’ll hear the first reading or an ordinance proposing the creation of an Alcohol Impact Area within the West End of Tacoma. Several neighborhood groups have requested an AlA be established in the area, and statistics from the Fire and Police Departments indicate that problems associated with public inebriation have been increasing in the West End of Tacoma in recent years. The establishment of an AIA would mean that a large portion of west and north Tacoma would join downtown and the Lincoln District and eastside as areas where the time and type of liquor sold are limited. Read more on the proposed AIA here.

Utilities
A pair of resolutions and three ordinances up for a first reading on this week’s agenda would amend utility policies.

The first resolution would amend the Water Rate Policy, updating the title to read “Water Rate and Financial Policy,” and amending the section directing that “Water Rates Should Be As Low As Is Responsible,” to improve transparency, facilitate responsible fund management, and increase potential revenue stability.

Sections which have been removed directed Tacoma Water to finance long-term major projects “primarily through debt,” and gave directions on how renewal and replacement capital requirements should be financed. Those sections have been replaced with policies including one Tacoma Water to “secure the least costly means of financing for capital improvement projects.” The changes are intended to provide capital financing flexibility and a more robust policy that will be favorably regarded by credit ratings agencies.

The second resolution amends the Electric Rate and Financial Policy to include a new section entitled “Rate Stabilization Fund.” The recommendation is the result of a review of industry accepted practice. It establishes that revenue is recognized in the fiscal year of withdrawal, and deducted from the fiscal year of deposit into the Fund; establishes the deposit is only made after all prior obligations, consistent with Bond Covenants, are paid, including Gross Earnings Taxes to the City; and specifies that deposits into the Fund must not cause financial ratios to go below planning minimum levels set out in the Electric Rate and Financial Policy.

The first ordinance would repurpose existing Water Assurance Funds to create one Water Capital Reserve Fund and expand the use of fund revenue to all capital projects. The requested changes are intended to provide flexibility and ensure timely acquisition, replacement, and upgrades of water system infrastructure and capital assets.

A second ordinance would amend the TMC relating to water regulations and rates to add a new section entitled “Franchise Hydrant Service Fee,” and adjust rates, charges, and fees for services provided by the Water Division, effective April 1, 2013 and January 1, 2014.

The third utility-related ordinance up for a first reading this week would amend adjust electric rates, charges, and fees for services provided by the Power Division, effective April 1, 2013 and April 1, 2014. Tacoma Power’s revenue requirements analysis indicates a revenue shortfall of approximately $38.3 million over the next two years based on April 2012 rates due in large part to reduced wholesale power revenues, regulatory mandates, and aging infrastructure renewal and replacement. The rate adjustments would address this shortfall.

Purchase Resolution
This week’s purchase resolution has two items:

1. $1,700,000 plus sales tax, budgeted from various departmental funds for cell phone airtime services, wireless data services, and related equipment purchases on an as-needed basis, from March 1, 2013 through October 31, 2016 and
2. $3,400,000 plus sales tax budgeted from various departmental funds, for cell phone airtime services, wireless data services, and related equipment purchases on an as-needed basis, from March 1, 2013 through October 31, 2016.

These contracts allow for cell phone airtime services, wireless data services, and the purchase of related equipment on an as-needed basis by multiple City departments. The Purchasing Division provides three citywide contracts for wireless services (Verizon, Sprint, and AT&T) to allow departments to select a service provider and plan that best meets their needs.

Other Items
The Mayor will proclaim March 17, 2013 as University of Puget Sound Day, in honor of the University’s 125th anniversary.

A resolution appears on the agenda that would appoint Susan Warner to serve on the Greater Tacoma Regional Convention Center Public Facilities District Board of Directors for a term through October 2016.

A resolution on this week’s agenda would authorize a $333,860 agreement with Pierce Transit to purchase One Regional Card for All (ORCA) Business Cards as part of the City’s Commute Trip Reduction Program for 2013. Since 1996, as part of the City of Tacoma’s Commute Trip Reduction Program, the City has provided bus passes/van pool subsidies for its employees. The ORCA Business Card gives employees access to Pierce, Metro, Kitsap, Everett Community, and Sound Transit Systems including Sound Transit Link Light Rail, Seattle Streetcar and the Sounder, as well as van pool and vanshare services.

A final resolution on this week’s agenda would authorize an agreement with the Tacoma-Pierce County Employment and Training Consortium, in the amount of $650,210, budgeted from the Youth Build Tacoma Fund, for implementation of the Youth Building Tacoma comprehensive job training and pre-apprenticeship program from January 1, 2013 through December 31, 2014. The project trains, places, and supports young adults ages 18 to 24 with an emphasis on participants from the Renewal Community/Community Enterprise Zone, those transitioning from welfare, women, minorities, and those with limited English-speaking abilities. The project is jointly and equally funded by General Government and Tacoma Public Utilities, with in-kind services contributed by WorkForce Central.