Tacoma City Council Meeting - July 16, 2013

CONSENT AGENDA

RESOLUTIONS

Resolution No. 38693 Setting Tuesday, July 30, 2013, at approximately 5:30 p.m. 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. [Cheri Gibbons, Associate Planner; Peter Huffman, Interim Director, Planning and Development Services]

FINAL READING OF ORDINANCES

Ordinance No. 28130 Vacating a 4,700-square-foot portion of East Q Street, lying 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. (City of Tacoma; File No. 124.1329) [Troy Stevens, Senior Real Estate Specialist; Phyllis Macleod, Hearing Examiner]

PROCLAMATIONS, RECOGNITIONS, PRESENTATIONS, AND ANNOUNCEMENTS

Deputy Mayor Campbell read a statement recognizing the Second Quarter Human Rights Champion Award recipients for their work for the advancement of human rights. Stella Haioulani was recognized for her work in AIDS and HIV prevention in marginalized and at risk populations. Mark Martinez was recognized for his advocacy for working families in a number of roles, including serving on the Tacoma Public Library Board, and work with Centro Latino.

PUBLIC COMMENT

One commenter came forward to voice opposition to the proposed agreement with Niagara Bottling. The speaker raised concerns on a number of issues relating to the deal, including the economics of the contract, the environmental impact of the deal, and availability of future water supplies for Tacoma and surrounding areas.

REGULAR AGENDA

RESOLUTIONS

Resolution No. 38694 Authorizing the execution of Amendment No. 2 to the agreement with Hyas Group, Inc., in the amount of $59,000, for a cumulative total of $311,000, budgeted from the Deferred Compensation Fund, for additional deferred compensation investment advisory services. [Bill Fosbre, Chief Deputy City Attorney; Elizabeth Pauli, Director, City Attorney’s Office]

This resolution would extend the contract with the financial consultant for Tacoma’s City employee deferred compensation plan for one year. The City currently has two plans with nearly $300 million and thousands of employees invested.

FIRST READING OF ORDINANCES

Ordinance No. 28161 Authorizing the execution of 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 commencing July 1, 2014 through June 30, 2019. [Tony Lindgren, Distribution Engineering Manager; Linda McCrea, Superintendent, Tacoma Water]

The agreement includes an agreement from Tacoma Water to give Niagara Bottling a temporary water service rate at a discount from the regular bulk user water rate. In exchange, Niagara agrees to pay for a minimum purchase quantity, whether or not they use the water. The reduced rate would be approximately 8% less than the regular rate for large-scale water users, and would only apply to the expected contract demand of 265,000 gallons per day, although Niagara estimates demands of up to 1 million gallons per day. Any amount used over that 265,000 gallons would be paid for at the usual bulk user rate. Niagara will also pay for system development associated with their capacity demands.

In answer to Council questions, Tacoma Water staff shared that Tacoma’s water supply system has a capacity up to 110 million gallons per day, with an estimated 50 year supply. The agreement with Niagara would not impact supply for Tacoma or for any of the other municipalities that rely on Tacoma Water, now or in the future. Due to water conservation and other efforts, bulk usage has actually gone down in recent years, so this contract would be a way of stabilizing that loss of commercial revenue.

Staff will get back to Council with answers to whether the bottles contain BPA; what the profit margin for Niagara would be; what would happen to the 20% to 25% of water used that Niagara anticipates won’t make it into bottles; and more details on the water supply available for humans and wildlife, including Tacoma Water’s habitat conservation plan.

Niagara anticipates a $50 million capital investment in the plant in the Frederickson area, with 36 employees. The company hopes to break ground this August and be up and running by spring 2014.

UNFINISHED BUSINESS

None.

REPORTS BY THE CITY MANAGER

Happy birthday Councilmember Woodards.

COMMENTS AND COMMITTEE REPORTS OF THE CITY COUNCIL

Government Performance and Finance Committee – Councilmember Lonergan shared the recent work of the committee.

• Received a Public Assembly Facilities quarterly update on the sales partnership between the City and the Tacoma Regional Convention & Visitor Bureau, and on Tacoma Dome 30th anniversary celebrations.
• Heard a presentation from TPU on Click! network rate increases passed at the June 11 Council meeting.
• Heard from Neighborhood and Community Services on the fee implemented for landlords from outside Tacoma for the City’s Crime Free Housing program adopted on June 11.
• Staff briefed the committee on a Memorandum of Understanding with Pierce County for Tacoma to take over taxicab licensing for the county, simplifying licensing processes for drivers who work both in the City and other parts of Pierce County. 
• Heard a report on a clean audit for Tacoma utilities in 2012.
• Heard presentations on the work plan for the City of Tacoma Fiscal Sustainability Task Force, the April monthly budget report, and an update from the State Auditor’s office on the City’s 2012 comprehensive annual financial report.

The agenda for the committee’s next meeting includes a presentation on budget actuals for the City through May and an update on the ELI telecommunications franchise agreement.

Councilmember Boe shared a couple items.

• He attended the celebration of 100 years of Tacoma Water along with Mayor Strickland and Councilmember Thoms.
• Congratulations to everyone involved with Art on the Ave this past weekend, it was a well-attended event showcasing local talent and businesses.

Mayor Strickland was absent this week.

ADJOURNMENT