City Council and TPU Board Joint Study Session - February 11, 2025
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City Council and TPU Board Joint Study Session - February 11, 2025
The Tacoma City Council and the Tacoma Public Utility Board held a joint study session on February 11, 2025, to discuss post-issuance bond compliance training, the 2025 federal legislative agenda, a proposed wholesale water supply agreement with the Cascade Water Alliance, and the One Tacoma Comprehensive Plan update. The meeting also included announcements of upcoming resolutions on immigration protections and LGBTQ+ reaffirmation, as well as an executive session.
Discussion Items
- Post Issuance Compliance Training: Michael San Soucie (City Treasurer) and Deanna Gregory (Pacifica Law Group) presented on federal tax law and securities law requirements for tax-exempt bonds. Topics included restrictions on private business use, arbitrage rules, anti-fraud provisions under SEC rules, and the importance of ongoing disclosure via the EMMA system. Staff training is scheduled for June 4, 2025.
- 2025 Legislative Agenda: The council and board reviewed proposed federal legislative priorities for both general government and Tacoma Public Utilities (TPU). Presenters highlighted the current federal landscape, including executive orders on funding pauses, immigration enforcement, and potential tax reform threatening tax-exempt financing. General government priorities include infrastructure projects (Fishing Wars Memorial Bridge, Portland Avenue Freight Mobility), affordable housing funding, community safety grants, and a broad human rights and dignity statement. TPU priorities focus on preserving tax-exempt bonds and Build America Bonds, supporting LIHEAP/LIWAP low-income programs, addressing supply chain challenges, and specific power, water, and rail initiatives. The agenda is scheduled for approval at the March 4, 2025 council meeting.
- Cascade Water Alliance: Sean Senescall and Marc Powell (Tacoma Water) presented a proposed wholesale water supply agreement involving two contracts: a permanent agreement for 12 million gallons per day (MGD) average and 15 MGD peak, and a temporary agreement for 12 MGD average and 17.5 MGD peak (2041–2062). Total estimated revenue over 50 years is ~$1.5 billion, with ~$120 million in gross earnings tax. The agreement would offset the departure of the WestRock paper mill (which used up to 16 MGD) and enhance regional resiliency. Council members asked about impacts on capacity, PFOS liability, and groundwater use. The proposal is expected to go to the Public Utility Board on February 26 and City Council for approval by March 25, 2025.
- One Tacoma Comprehensive Plan Update: Stephen Atkinson, Maryam Moeinian, and Carrie Wilhelme presented the draft plan released February 5, 2025. The plan includes growth targets of 60,000 new dwellings and 94,000 new jobs by 2050, with a new vision centered on a 15-minute city. The transportation element (Transportation and Mobility Plan) incorporates new curb management and public realm sections. Public workshops are scheduled for February 20 – March 1, with a planning commission public hearing on March 5. The plan is to be adopted by the council by the end of June 2025.
Key Outcomes
- Legislative Agenda: The 2025 federal legislative priorities will be formally considered for adoption at the March 4, 2025 council meeting.
- Cascade Water Alliance: The proposed agreements are set for board and council approval through a series of meetings culminating by March 25, 2025.
- Comprehensive Plan: The planning commission will hold a public hearing on March 5, and the council is expected to adopt the plan by June 2025.
- Upcoming Resolutions: Councilmember Sidalgay announced a resolution to align city practices with state immigration protections, and Councilmember Diaz announced a resolution reaffirming support for LGBTQ+ residents; both will be presented on February 25, 2025.
- Executive Session: The council convened a 10-minute executive session to discuss pending litigation.
Meeting Transcript
I would like to call to order the joint city council public utility board study session of February 11th, 2025. To order, clerk, will you please call the roll? Board member Clos McGann. Present. Board Member Gallagher. Here. Board Member Watson. Absent. Vice Chair Bridges, absent, Chair O'Lachlin. Present. Councilmember Bushnell. Present. Deputy Mayor Daniels. Here. Councilmember Diaz. Here. Councilmember Hines. Absent. Councilmember Remba. Councilmember Sidalgay. Councilmember Scott. Absent Councilmember Walker. Mayor Woodards. Here. The study session material is sent to you at 10 59. All right. Thank you. Today, as you can tell, it is our joint meeting with Toma Public Utility Board. And at this time, I'd like to call on a public utility board chair, John O'Lachlin to provide opening remarks. Thank you, Mayor. Johnny Oh. Yes. First of all, I just like to say that board member Bridges and Board Member Watson send their can uh regrets they couldn't make it. Um and uh additionally on board member Watson. You might be aware he recently submitted a temporary resignation. He's undergoing some uh um health issues, and he uh recognizes the challenges with the five member board uh that quorums and whatnot. So he is courageously decided to temporarily step down, and we look forward to getting his voice back on the board when he is healthy and up to it. So that'll be something that's coming to the GPFC soon. And um, I'll let my colleagues introduce themselves, but um I do want to say one thing about the proposed Cascade Water Alliance, not to steal any thunder, but this is a once in a generation opportunity. I mean, these sorts of things in the very long-lived infrastructure world of providing water services um don't come around very often. And they're significant, and um a lot of thought has gone into this, but I'll leave it to the uh presenters to describe the rest of it. But I'm really excited about that. Great. And and John, thank you so much um for those opening remarks and also um updating the full council on on uh on uh on board member Watson. I want to I keep wanting to call him by his first name. Yes, yes, yes. Um, and I did have an opportunity to talk with him, and so we will be moving through a process. Um, the process will be the appointment. I since the appointment belongs to the mayor and it's a temporary appointment, um, and because we need to do it quickly. I'm just gonna make an appointment and then and then um should we have to do something different in the future, then it will go through GPFC.
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