Tacoma City Business Preview - Week of July 16, 2013

Study Session

At Tuesday’s Study Session, Government Relations Officer Randy Lewis will provide the Council with a debriefing of the State Legislative Session.

Open Space

A resolution on this week’s consent agenda sets Tuesday, July 30 as the date for a public hearing by the City Council regarding the Norma J. Sands and Lennea C. Sands open space current use assessment application for property located at 615 South 82nd Street to be classified as open space for use and property tax purposes, as recommended by the Planning Commission. 

The owner of multiple parcels at that location has requested that the property be renewed into the state wide Open Space Current Use Assessment program, in which the owner will receive a reduction on their property taxes in-lieu of providing open space that is a benefit to the community. The application is considered a renewal due to a change in ownership, but has previously received the OSCUA designation. If approved, this would be a multi-year reduction in property taxes assessed to the property, contingent upon its continued use as publicly beneficial open space. 

The CUA is a tax incentive program enacted to encourage the conservation of open space, and agricultural and timber lands. The program allows qualified property owners to have their land assessed based on its current use (such as open space) rather than on its highest and best use (such as developed with houses). Current Use Assessments do not constitute a permanent land use restriction on development, but rather provide an incentive to leave valuable open space properties undeveloped.

The property in question is adjacent to Ryan’s Park, but is currently used as private recreational property containing a wetlands space and mature trees. Two of the parcels are developed with structures, which staff is recommending be removed from the CUA application.

Flood Wall

Also on the consent agenda this week is a final reading of an ordinance that would vacate a 4,700-square-foot portion of East Q Street, northwest of the Burlington Northern Rail right-of-way, to construct a section of the floodwall proposed under the Central Treatment Plant Flood Protection Project. The project involves constructing a flood control wall designed to protect the City’s treatment plant from being inundated by flood waters of the nearby Puyallup River. 

Bottled Water

On the regular agenda this week is the first reading of an ordinance authorizing a water supply agreement between Niagara Bottling, LLC, and Tacoma Water, which includes a temporary contract water service rate in return for minimum purchase quantities, for a five-year period from July 1, 2014 through June 30, 2019. Niagara would like to build a bottling plant in Fredrickson, where it would use large quantities of water from Tacoma Water’s supply. Niagara has been looking at a number of alternative sites, so Tacoma Water is requesting a reduced rate to provide an incentive for the company to choose to locate in Tacoma’s service territory. Niagara Bottling has estimated demands up to one million gallons per day, which would translate into over $800,000 per year of additional water sales revenue. Supporting documents for the request say that Tacoma Water’s significant water supply surplus means that new water demands like those of Niagara Bottling, LLC would provide significant additional revenue at very little additional supply risk. 

Other Items

A resolution on the regular agenda this week would authorize an amendment to the agreement with Hyas Group, Inc., in the amount of $59,000 budgeted from the Deferred Compensation Fund for additional deferred compensation investment advisory services. The Hyas Group has provided financial advising and consulting services to the City’s Deferred Compensation Administrative Committee since 2009. The amendment would allow the contract to be extended for one additional year, which will allow time to conduct an RFP for future services. The funds used to pay for the contract are from revenues generated from the deferred compensation plan itself, so there is no fiscal impact to the City.