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Home My WebLink AboutRes2016-031 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2016-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE WHARFAGE RATE IN THE PORT & HARBOR TARIFF AND PROVIDING FOR AUTOMATIC BIENNIAL ADJUSTMENTS TO WHARFAGE RATES BY AN AMOUNT EQUAL TO THE FIVE PREVIOUS FULL YEARS' AVERAGE INCREASE IN THE ANCHORAGE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS WHEREAS, the Port and Harbor Tariff was approved by the Seward City Council in Resolution 2015-109 and took effect January 1, 2016; and WHEREAS, the Port and Harbor Tariff has been amended adjusting various fees and definitions from time to time,with the last amendment raising wharfage rates approved in Resolution 2007-097 on November 13, 2007; and WHEREAS, PACAB and Administration have reviewed and recommend an increase in wharfage rates and to combine four(4) products with the NOS rate (not otherwise specified); and WHEREAS, the City of Seward's enterprise funds are operated in a manner similar to private business entities, in that they establish charges intended to cover the full cost of providing services including operations and maintenance,overhead,system expansion,utilities,and charges for the use of capital facilities; and WHEREAS, the need to regularly review and update wharfage charges to account for the impact of inflation and other cost increases,and to avoid rate-shock associated with infrequent rate changes, makes it prudent to update these rates regularly; and WHEREAS, PACAB, via Resolution 2016-01, recommends that the wharfage rates be automatically increased biennially starting in 2018 by an amount equal to the five previous full year's average increase in the Anchorage Consumer Price Index for all urban consumers. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY -7' OF SEWARD,ALASKA that: Section 1. The recommended wharfage rate increase in fees,and charges is hereby approved as incorporated herein by reference and attached hereto as"2016 Port and Harbor Tariff'for council adoption to become effective 10 days after its approval. Section 2. The recommended increase in biennial wharfage rates is hereby approved starting in 2018 by an amount equal to the five previous full year's average increase in the Anchorage Consumer Price Index for all urban consumers. CITY OF SEWARD,ALASKA RESOLUTION 2016-031 I • PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25th day of April, 2016. THE CITY OF SEWARD,ALASKA ,V4e 4, // I i can Bardarson, Mayor AYES: Casagranda, Keil, Butts, Squires, McClure,Altermatt, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: J•hanna 4i1 , MC ity Clerk (City Seal) o 6,4000 0°vte 1.� i o N pD ° D ® 0.J - Qat ', • ® • O 's�.3'— Y •! w ' 0 p OlToy 01- B�ae9az0®o 8® Agenda Statement _ pc se-12, Meeting Date: March 29, 2016 � *74 To: City Council .4,/v qt P � /frt• f Through: Jim Hunt, City Manager I / From: Norm Regis, Harbormaster MA— Agenda —Agenda Item: Recommending automatic biennial adjustments to wharfage rates equal to the five previous full years' average increase in CPI BACKGROUND & JUSTIFICATION: In November 2007 the City Council approved Resolution 2007-097 authorizing a 5% increase excluding passenger fees to the Harbor Tariff to help pay for future infrastructure, and this was the last time wharfage rates were raised. With the declining State budget,funds are now getting harder to acquire for future harbor infrastructure improvements.The current wharfage.rate has remained the same since 2007. The City of Seward's Harbor wharfage rate is well below most harbors within the State. On March 2,2016 PACAB approved resolution 2016-01 recommending that wharfage rates be increased biennially by an amount equal to the previous five years' average increase in the Anchorage CPI for all urban consumers. This incremental increase in rates is designed to avoid the rate-shock associated with large rate increases. PACAB also recommended combining some of the items in the wharfage rate column to Not Otherwise Specified (N.O.S.) Following is a list of proposed changes in Section 290 Wharfage Rates: • Change the Freight N.O.S. from$3.15 to $5.00 • Combine Scrap (iron, steel)to N.O.S. • Raw Fish, unprocessed from$3.15 to $5.00 • Combine Poles, logs, cants or cut finished lumber to N.O.S. • Petroleum products (gasoline)per gallon from$0.015 to $0.02 • Petroleum products (diesel)per gallon from$0.008 to $0.02 • Combine Plastic materials to N.O.S. • Vans and Containers (net contents weight) from$2.10 to $3.10 • Vehicles (gross vehicle rate) from $5.25 to $10.00 • Bulk Gravel from$0.26 to $1.00 • Combine salt to N.O.S. INTENT: To raise wharfage rates to stay consistent with other harbors' wharfage rates throughout the State,and to maintain that rate by automatically raising rates biennially by a 5 year average of the CPI to avoid future large wharfage rate increases. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (Port and Harbor Development 3.5.1): Encourage 1. a thriving port of Seward through harbor improvements, infrastructure X expansion, and implementation of management plans. (page 23) 2 Strategic Plan (Goals and Objectives): Adjust local development X regulations where appropriate,to encourage development that is to consistent with our economic vision. (Page 5) 3. Other (list): FISCAL NOTE: The Harbor Enterprise Fund currently generates approximately$48,000 per year in wharfage fees. For comparative purposes only,consider that the five previous years' average CPI in 2016 was 2.3% and in 2017 was 2.4%. Using these CPI averages as a proxy for future rate increases results in an estimated biennial increase in revenues of approximately$1,128.. Approved by Finance Department: �g RECOMMENDATION: 031 City Council approve Resolution 2016-_approving Wharfage rate changes to the 2016 Port and Harbor Tariff.