Tacoma City Business Preview - Week of March 3, 2015

Billboards

The billboards debate is back with the final report from the Billboard Community Working Group assembled by the City of Tacoma last year. After half a year and a dozen meetings, the group made up of community stakeholders and representatives from the billboard company and advertisers has come to agreement on a few things - but not on everything.

Most of Clear Channel's billboard faces are out of compliance with Tacoma's code, but the company has resisted taking them down. Legal procedings between the City and Clear Channel have been in a holding pattern under a "Standstill Agreement" that said neither would pursue further actions while the working group made attempted to hammer out a compromise. The hope was that the group could come up with at least a couple potential paths to bring Clear Channel into compliance - either through removal of boards, or adjustments to Tacoma's code.

Although the work group was not able to reach complete agreement on terms to satisfy the City and residents, as well as Clear Channel, a little progress was made, including agreements to remove a handful of boards, and to change zoning to allow billboards in some parts of Tacoma where they are currently not allowed.

At this week's study session the city council will hear from the work group's co-chairs and independent facilitator on their final report. You can read the full final report on the City's Billboard Community Working Group page.

Utility Rate Increases

A pair of ordinances appearing on this week's agenda for their first readings would allow for rate increases for Tacoma utilities.

The first would allow for a one-time increase to Tacoma Power rates effective April 1. An analysis of Tacoma Power revenue indicates that the utility expects a $15.8 million revenue shortfall at current rates. The shortfall comes largely as a result of increased expenses related to Bonneville Power Authority rates for purchased power, regulatory mandates including hydro project license compliance and assessments, and aging infrastructure renewal and replacement. 

The suggested increase would total 3% system-wide, with contract industrial rates increasing by 1.7% on the low end, and street lighting and traffic signal rates going up by 3.7% on the high end. Residential rates would increase by 2.7%. This rate adjustment was included in the 2015-2016 budget for Tacoma Power. 

The second ordinance would allow for two rate adjustments over the biennium to Tacoma Water rates. Tacoma Water also expects a revenue shortfall of approximately $7.5 million at current rates. Expense increases driving this shortfall are related to the operating and maintenance of the newly completed Green River Filtration Facility as well as hiring skilled labor to manage the filtration plant and improve data driven decision-making analytics. The increase was included in the 2015-2016 budget for Tacoma Water.

The suggested increases average 4% per year system-wide over the next two years. On the low end, wholesale and private fire protection rates would not increase, while public fire protection rates in Tacoma would go up by 1.1% in 2015 and 1.3% in 2016. On the high end, RockTenn (the new operator of the old Simpson plant) will see an 8.3% increase in 2015 and 4% in 2016. In between, residential customers will see a 4.1% increase in 2015 and 4.5% in 2016.

Purchase Resolutions

Two purchase resolutions on this week's agenda:

1. $294,492 budgeted from the Wastewater Fund to provide necessary ventilation improvements at the North End Treatment Plant.
2. $327,500 budgeted from the Asphalt Plant Fund for the purchase of Bulk Asphalt Oils, for an initial contract period of March 1, 2015 through February 28, 2016, with the option to extend for four additional one-year periods, for a projected contracted total of $1,637,500.

Other Items

A resolution on this week's council meeting consent agenda would set Thursday, April 9, 2015, at 9:00 a.m., as the date for a hearing by the Hearing Examiner on the request to vacate the east 35 feet of East L Street between East 52nd and East 54th Streets to facilitate the construction of 37 new single-family homes in a new residential development called Heritage Gardens. 

March 2015 will be proclaimed as Women’s History Month in the City of Tacoma.

Tacoma Public Utilities’ Conservation Incentives will be presented.

This week the council is scheduled to take its final vote on an ordinance amending the code relating to property tax exemptions for multi-family housing development to align with state law, and to clarify requirements on vacancy and displacement issues for occupied structures that are to be rehabilitated or redeveloped.