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HomeMy WebLinkAboutRes2018-008Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE SEWARD PUBLIC UTILITIES TO ALLOW A DELAY OF UP TO SIX MONTHS IN THE EFFECTIVE DATE OF THE WATER AND SEWER TARIFFS TO CORRECT THE CLASSIFICATION FOR SOME CUSTOMERS INCORRECTLY BILLED METERED WATER AND SEWER RATES RATHER THAN STANDARD MONTHLY RATES WHEREAS, the Seward City Council passed Resolution 2017-078 on November 27, 2017, clarifying that only Class D customers were eligible for metered water/sewer rates through Seward Public Utilities, since rate Classes A, B and C have been and continue to be ineligible for metered rates; and WHEREAS, some water and sewer customers were previously erroneously classified to receive metered water rates, but should instead have been charged standard residential or small or large general service rates; and WHEREAS, the utility billing department requests more time to notify customers who were previously improperly classified, of the correction in their classification which will result in higher water and sewer costs, to allow those customers sufficient time to notify tenants and to pass along the standard monthly costs to those tenants. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Authorize the Seward Public Utilities to delay up to six months, implementing a correction to the classification of certain water and sewer customers who have been improperly billed for metered water/sewer rates, and who should instead be charged standard residential, small or large general service rates. Section 2. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22°d day of January, 2018. 1 CITY OF SEWARD, ALASKA RESOLUTION 2018-008 THE CITY OF SEWARD, ALASKA Dav quires, M or AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires NOES: None ABSENT: None ABSTAIN: None ATTEST: mam-.uA zi I P M: :. 9 (City Seal) -o Of SEy�`••• Sol SEAL ,• • . ......... %• OF NA0;00 1 1 1 94 Agenda Statement Meeting Date: January 22, 2018 To: City Council Through: Jim Hunt, City Ma ager From: Kristin Erchinger, Finance Director Agenda Item: Authorize a delay in the water/sewer metered rate classification BACKGROUND & JUSTIFICATION: On November 27, 2017, the Seward City Council passed Resolution 2017-078, amending the water and sewer tariff effective January 2018. In the process of preparing for the rate change, staff has identified a number of customers who have been previously charged for metered water and sewer charges, but whose rate classes were not eligible for metered rates. The change from metered rates to standard monthly rates will have an adverse impact on customers who have multiple units which are rented out to tenants. Staff is requesting a delay of up to six months in the correction of the classification for those customers, to allow them sufficient time to notify their tenants of the pending changes, in order for landlords to pass along the rate increase to their tenants. We request that staff be given the authorization to delay by up to six months, the implementation of the change in billing classification for these customers. INTENT! The intent of this action is to delay the change in classification for certain water and sewer customers who were previously incorrectly charged subsidized water and sewer metered rates, to allow landlords sufficient time to notify their tenants and, if appropriate, to pass along the standard monthly water and sewer charges to their tenants. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): 2. Strategic Plan (document source here): 3. Other (list): Resolution 2017-078 FISCAL NOTE: The delay in reclassifying customer accounts will cause a loss in water/sewer revenues, but the amount of the loss is considered immaterial to the overall budget. Once the customer classifications are corrected, the end result w' 11 be increasedi - revenues to the water and sewer Funds. Approved by Finance Department: ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council approves Resolution 2018-008 providing discretion to Seward Public Utilities to allow a delay of up to six months in the effective date to correct the classification for some customers previously incorrectly billed metered water and sewer rates rather than standard monthly rates. 94