HomeMy WebLinkAboutRes2017-077CITY OF SEWARD, ALASKA Sponsored by: Hunt
RESOLUTION 2017-077
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE SEWER TARIFF TO PROVIDE FOR A
2.1 % RATE ADJUSTMENT BEGINNING THE FIRST BILLING CYCLE
OF THE 2018 CALENDAR YEAR, ADDING A SEASONAL TURN-
ON/TURN-OFF FEE, CLARIFYING THAT METERED RATES APPLY
ONLY TO CLASS D CUSTOMERS, AND OTHER MINOR
HOUSEKEEPING CHANGES
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 ofproviding
services (including direct and indirect costs) for operations and maintenance, overhead, system
expansion and charges for the use of capital facilities; and
WHEREAS, in 2015, the City executed loans in the amount ofnearly $1.7 Million topay for
the sludge removal and maintenance of the Lowell Point and Spring Creek wastewater treatment
facilities; and
WHEREAS, experience has demonstrated the importance ofsetting aside funds annuallyto
dredge and maintain wastewater treatment facilities and lagoons in accordance with routine
schedules; and
WHEREAS, failing to adopt incremental rate changes can lead to rate -shock associated
with infrequent large rate changes, and can lead to the utility being unable to adequately cover the
cost ofoperations, critical capital infrastructure repairs and replacement or demonstrate adequate
financial health to qualify for low interest loans; and
WHEREAS, a seasonal turn-on/turn-off fee has been added to assess all customers who
have sewer services available from the utility, to address the increasing number of vacant
housing units which by avoiding paying their fair share of utility infrastructure costs, result in
overall higher rates to year-round customers; and
WHEREAS, tariff edits were necessary to clarify that metered water rates apply only to
Class D customers, and other minor housekeeping changes such as directing users to the Water Tariff
for the definition of ERU, etc.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The Sewer Tariff for 2018 is hereby amended in the form presented at this
meeting as "Sewer Rates and Charges — 2018".
Section 2. All previous Resolutions in conflict herewith are hereby repealed effective
December 31, 2017.
Section 3. This resolution shall be effective January 1, 2018.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27cn
day of November, 2017.
THE CITY OF SEWARD, ALASKA
C,� n
David Squires, or
AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal) gejvr•,
,• o �r •y 0 •.
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SEAL g •
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1
Agenda Statement
Meeting Date: November 27, 2017
To: City Council
Through:
Jim Hunt, City Manage
From: Doug Schoessler, Public Works Director
Agenda Item: Amending the Sewer Rates and Charges in the 2018 Tariff
BACKGROUND & JUSTIFICATION:
In 2015, loans in the amount of nearly $1.2 Million were authorized for the sludge removal and
disposal project at the Lowell Point and SMIC Wastewater Treatment Facilities. The annual cost of
the loan repayment is $72,518. The next scheduled maintenance of the Sewer Lagoon is estimated
within the next 7- 10 years, and funding must be available for those major repairs.
Given recent major capital repairs and associated capital debt, current rates are not sufficient to cover
operational, debt service costs, and foreseeable critical and high -risk capital wastewater needs.
INTENT:
The intent of this action is to improve the financial condition of the Wastewater Enterprise Fund in
order to cover the costs of new debt associated with major dredging and repairs to both the Lowell
Paint and SMIC sewer lagoons, and capital needs.
CONSISTENCY CHECKLIST:
Yes
No
NIA
1.
Comprehensive Plan (document source here):
X
2.
Strategic Plan (document source here):
X
3.
Other (list):
X
FISCAL NOTE:
Most of the sewer fund's $15+ million in assets are reaching or have reached the end of their useful
lives and the sewer fund has less than $1 million in reserve due to significant, costly capital repairs.
The CPI increase will ensure the utility's reserves are not further eroded due to rising operational
costs.
Approved by Finance Department: i-&a4zu¢J44, ,,
ATTORNEY REVIEW: Yes No_X Not Applicable
RECOMMENDATION:
Council approve Resolution 2017- amending the 2018 Sewer Tariff.
Sewer Rates and Charges - 20187
Rates for Sewer by Class of Service
ANNUAL RATE ADJUSTMENT: The rates and fees herein provided are adjusted 4:42_1% beginning the first
billing cycle of the 2018-7 calendar year. The rates thereafter will be adjusted annually beginning the first billing of
each calendar year to reflect an average of the five previous published years' annual increase in the Consumer Price
Index, All Items, 1982-84=100 for all Urban Consumers, Anchorage, Alaska Area ("CPI") as published by the United
States Department of Labor, Bureau of Labor Statistics. (For example, 2018-7 rates reflect an increase based on the
average CPI for 20110-20154.)
GROUP A - RESIDENTIAL
Group A includes all metered and non -metered residential customers living in single family or multiple family living
units. Multiple family units include multi-plexes, apartments and townhouses, but excludes hotels, motels and similar
transient accommodations.
GROUP B — SMALL GENERAL SERVICE
Group B includes all metered and non -metered commercial enterprises where the use of water is incidental to the
commercial activity and is primarily limited to domestic and janitorial use. This class of service includes such
businesses as hotels, motels, professional office buildings, barber shops, warehouses, libraries, public offices, churches
and theaters, etc.
GROUP C - LARGE GENERAL SERVICE
Group C includes all metered and non -metered commercial enterprises where water usage is greater than in Small
General services and/or water is used for food preparation or other activities, but not for industrial processing.
GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE
Group D includes metered commercial and industrial enterprises not included in Group A, B or C, where water usage is
greater than for small businesses ana. ter is used for food t,..epar-atio , ,.thef acfvities and industrial processing -as
BASIS FOR MONTHLY FEES AND CHARGES
GROUPS A - D
I NON METERED GROUP A. B AND C SERVICES
"N n ffletere' sSewer users in Groups A, B and C, whether metered or non -metered, shall be charged at the rate of
$65.6464.N per ERU per month, in accordance with the applicable ERUs listed in the Water Tariff, not including
tax, when the water service and sewer service serve the same activities. If the activities serviced by the sewer
services are different than those served by the water service (i.e._water consumption is not discharged through the
sewers system), a the water charge shall be computed based on the activities served by the water and sewer Tthe
sewer rate shall thefrbe computed at 1.2 times the established water charge.
City of Seward Sewer Tariff -Per 201'-� Budget, Effective January 1, 2018-7. Page 4-1
METERED SERVIC GROUP D SERVICES
Group D) users shall be charged for sewer service according to the rates listed below.
-If the customer does not have a sewer meter, tThe charge shall be based upon the quantity of metered water. Users
, except that these users a sewer meter shall be charged for the quantity of sewage actually metered. The
quantity of sewage wiU may be adjusted if a significant amount of wastewater is not discharged into the city sewer
system.
Minimum Base Charge for Each Metered Service
Service Size
Minimum Monthly Charge
3/4" - 1" water service
$56.00-5485
1-1 /2" - 2" water service
$92.6690-.7-5
2-1/4" - 4" water service
$233.6222S-.8-t
Over 4" water service
$1,168.01' ,'T-TTT97
Plus Charge for Consumption
Gallons of Sewage Discharged per Month
Group D
First 10,000 Gallons
$13.2142,94
Next 40,000 Gallons
$10.5840.366
Next 50,000 Gallons
$8.811
Next 100,000 Gallons
$7.967.88
All Additional Gallons
$5.135-92-
! CROUP E---OTHER SEWER PMA—L-RATES AND FEES
Gfe ilncludes charges for other categories of service not included in Groups A through D.
City of Seward Sewer Tariff -Per 2018-7 Budget, Effective January 1, 2018-7. Page 4-2
Users generating sewage with a BOD and
SS loading in excess of mg/1 (upon a deter-
mination by the utility manager that the
concentration and characteristics of the
sewage will not cause a detrimental effect
upon the sewer system and/or treatment
plant [BOD = ABiological Oxygen
Demander and SS = ASuspended Solids]
Tank Truck Operators: Fresh sewage, or
waste from portable or chemical toilets,
provided the utility manager determines the
waste will not be detrimental to the sewer
system and/or treatment plant.
NOTE:
It is prohibited to discharge into the city°=s
sewer system, septic tank waste or any waste
containing toxic or other materials that could
cause the city='s discharge to violate the
EPA or DEC discharge permit.
Specified rate in rate tables times a factor of the
actual BOD and SS loading divided by 250, pins
the cost of testing
Per thousand gallons: $63.7162.40
3. Recreational Vehicles: Individual RV No fee
owners utilizing city -owned or approved
dump sites
Public and private campground operators $1.084-96 per day Per RV, camper or trailer pennit,
[Operators must maintain sufficient records not including tent campers.
to compute a monthly payment, and such
records shall be made available to the city
upon request.]
j 4. Ship's Sewage:
Sewer Service Connection Fee:
Not accepted
Installed at property owner='s expense. Any work
performed by the city will be charged at total cost,
including labor, overhead, administration, materials
and equipment PLUS a $153.80150.64 connection
fee.
6. Sewer Service Inspection Fee: This fee
shall be charged for services installed by
anyone other than the city. $123.041 20.51
i 7. Unauthorized Connection or Discharge
into the City Sewer System:
City of Seward Sewer Tariff -Per 201 v Budget, Effective January 1, 2418-7. Page 4-3
PLUS State and/or federal penalties & charges
levied against the city or individual&.
Restoration of Sewer Service and
Repair of Damage by Owner or Contrac-
tor to City Facilities:
9. Locate Sewer Main:
10. Security Deposit: If a water security deposit
was paid, no additional deposit will be
required. If no water deposit was paid, the
following deposits will be charged.
11. Contractor Work: Any contractor tapping
into a city sewer train, or otherwise working
on a city sewer main, must be properly
licensed to perform the work and must
provide:
12. Seasonal Turn -On and Seasonal Turn -Off
(includes new account name or same
aaccount name, waived if < 2 months
between turn-off and turn -on; Seasonal can
apply to either summer or winter) This rate
applies at the same time water service is
disconnected.
Per Occurrence $965.31945.46
PLUS Cost of repair, restoration or cleanup by city
Actual cost, including city overhead, adminis-
tration, labor, materials and equipment
First Locate: No Charge
Each Additional Locate: $96.5294.53
Large projects requiring several locates will be
under a special contract and may require a fee.
Domestic: $48.2647.27
(Single family & duplex)
Commercial: $144.7914!.81
Multi -Family: $144.7914-1-8
$5000.00 Bond or equivalent cash guarantee
payable to the city
Seasonal Turn -On: $262.56
Seasonal Turn _Off: $262.56
City of Seward Sewer Tariff -Per 2018-7 Budget, Effective January 1, 201 S = . Page 4-4
1 132, Sewage Meter:
j 143. Delinquent Account Charges:
Computed from the quantity of metered water
delivered to the same activity unless a sewage meter
has been installed. Sewage meters approved by the
city may be installed at the user;=s expense.
Interest rate: 10.5% per annum
Monthly late fee: $5.75
City of Seward Sewer Tariff -Per 2018� ' Budget, Effective January 1, 2018-. Page 4-5
Sewer Rates and Charges - 2018
Rates for Sewer by Class of Service
ANNUAL RATE ADJUSTMENT: The rates and fees herein provided are adjusted 2.1 % beginning the first billing
cycle of the 2018 calendar year. The rates thereafter will be adjusted annually beginning the first billing of each
calendar year to reflect an average of the five previous published years' annual increase in the Consumer Price Index,
All Items, 1982-84=100 for all Urban Consumers, Anchorage, Alaska Area ("CPI") as published by the United States
Department of Labor, Bureau of Labor Statistics. (For example, 2018 rates reflect an increase based on the average CFI
for 2011-2015.)
GROUP A - RESIDENTIAL
Group A includes all metered and non -metered residential customers living in single family or multiple family living
units. Multiple family units include multiplexes, apartments and townhouses, but excludes hotels, motels and similar
transient accommodations.
GROUP B -- SMALL GENERAL SERVICE
Group B includes all metered and non -metered commercial enterprises where the use of water is incidental to the
commercial activity and is primarily limited to domestic and janitorial use. This class of service includes such
businesses as hotels, motels, professional office buildings, barber shops, warehouses, libraries, public offices, churches
and theaters, etc.
GROUP C - LARGE GENERAL SERVICE
Group C includes all metered and non -teetered commercial enterprises where water usage is greater than in Small
General services and/or water is used for food preparation or other activities, but not for industrial processing.
GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE
Group D includes metered commercial and industrial enterprises not included in Group A, B or C, where water usage is
greater than for small businesses and is used for industrial processing.
BASIS FOR MONTHLY FEES AND CHARGES
GROUPS A - D
GROUP A, B AND C SERVICES
Sewer users in Groups A, B and C, whether metered or non -metered, shall be charged at the rate of $65.64 per
ERU per month, in accordance with the applicable ERUs listed in the Water Tariff, not including tax, when the
water service and sewer service serve the same activities. If the activities serviced by the sewer services are
different than those served by the water service (i.e. water consumption is not discharged through the sewer
system), the water charge shall be computed based on the activities served by the water and the sewer rate shall be
computed at 1.2 times the established water charge.
Cary of Seward Sewer Tariff -Per 2018 Budget, Effective January 1, 2018. Page 4-1
GROUP D SERVICES
Group D users shall be charged for sewer service according to the rates listed below. If the customer does not have
a sewer meter, the charge shall be based upon the quantity of metered water. Users having a sewer meter shall be
charged for the quantity of sewage actually metered. The quantity of sewage may be adjusted if a significant
amount of wastewater is not discharged into the city sewer system.
Minimum Base Charize for Each Metered Service
Service Size
Minimum Monthly Charge
3/4" - V water service
$56.00
1-1/2" - 2" water service
$92.66
2-1/4" - 4" water service
$233.62
Over 4" water service
$1,168.01
Plus Charge for Consumption
LGallons of Sewage Discharged per Month
Group D
First 10,000 Gallons
$13.21
Next 40,000 Gallons
$10.58
Next 50,000 Gallons
$8.81
Next 100,000 Gallons
$7.96
All Additional Gallons
$5.13
OTHER SEWER RATES AND FEES
Includes charges for other categories of service not included in Groups A through D.
City of Seward Sewer Tariff -Per 2018 Budget, Effective ,January 1, 2018. Page 4-2
Users generating sewage with a BOD and
SS loading in excess of mg/1 (upon a deter-
mination by the utility manager that the
concentration and characteristics of the
sewage will not cause a detrimental effect
upon the sewer system and/or treatment
plant [BOD = Biological Oxygen Demand
and SS = Suspended Solids]
2. Tank Truck. Operators: Fresh sewage, or
waste from portable or chemical toilets,
provided the utility manager determines the
waste will not be detrimental to the sewer
system and/or treatment plant.
NOTE:
It is prohibited to discharge into the city's
sewer system, septic tank waste or any waste
containing toxic or other materials that could
cause the city's discharge to violate the EPA
or DEC discharge permit.
3. Recreational Vehicles: Individual RV
owners utilizing city -owned or approved
dump sites
Specified rate in rate tables times a factor of the
actual BOD and SS loading divided by 250, plus
the cost of testing
Per thousand gallons:
No fee
$63.71
Public and private campground operators $1.08 per day Per RV, camper or trailer permit, not
[Operators must maintain sufficient records including tent campers.
to compute a monthly payment, and such
records shall be made available to the city
upon request.]
4. Ship's Sewage:
5. Sewer Service Connection Fee:
6. Sewer Service Inspection Fee: This fee
shall be charged for services installed by
anyone other than the city.
7. Unauthorized Connection or Discharge
Not accepted
Installed at property owner's expense. Any work
performed by the city will be charged at total cost,
including labor, overhead, administration, materials
and equipment PLUS a $153.80 connection fee.
$123.04
Per Occurrence $965.31
into the City Sewer System: PLUS Cost of repair, restoration or cleanup by city
City of Seward Sewer Tariff -Per 2018 Budget, Effective January 1, 2018. Page 4-3
PLUS State and/or federal penalties & charges
levied against the city or individual.
Restoration of Sewer Service and Repair
of Damage by Owner or Contractor to
City Facilities:
9. Locate Sewer Main:
10. Security Deposit: If a water security deposit
was paid, no additional deposit will be
required. If no water deposit was paid, the
following deposits will be charged.
Actual cost, including city overhead, adminis-
tration, labor, materials and equipment
First Locate: No Charge
Each Additional Locate: $96.52
Large projects requiring several locates will be
under a special contract and may require a fee.
Domestic: $48.26
(Single family & duplex)
Commercial: $144.79
Multi -Family: $144.79
11. Contractor Work: Any contractor tapping $5000.00 Bond or equivalent cash guarantee
into a city sewer main, or otherwise working payable to the city
on a city sewer main, must be properly
licensed to perform the work and must
provide:
12. Seasonal Turn -On and Seasonal Turn -Off
(includes new account name or same
account name; waived if < 2 months
between turn-off and turn -on; Seasonal can
apply to either summer or winter.) This rate
applies at the same time water service is
disconnected.
13. Sewage Meter:
14. Delinquent Account Charges:
Seasonal Turn -On: $262.56
Seasonal Turn -Off: $262.56
Computed from the quantity of metered water
delivered to the same activity unless a sewage meter
has been installed. Sewage meters approved by the
city may be installed at the user's expense.
Interest rate: 10.5% per annum
Monthly late fee: $5.75
City of Seward Sewer Tariff -Per 2018 Budget, Effective January 1, 2018. Page 4-4