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Home My WebLink AboutRes2018-032 CITY OF SEWARD,ALASKA Sponsored by: Hunt RESOLUTION 2018-032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE WATER TARIFF TO PROVIDE FOR A 2.1% RATE INCREASE BEGINNING JANUARY 15, 2018, CLARIFYING THAT METERED RATES APPLY TO ALL CUSTOMERS OTHER THAN NON-COMMERCIAL RESIDENTIAL, CHANGING THE SEASONAL DEFINITION,AND OTHER MINOR HOUSEKEEPING CHANGES WHEREAS, the Seward City Council passed Resolution 2017-078 on November 27, 2017, for the purpose of amending the Water Tariff, and subsequently rescinded that resolution on March 20, 2018 via Resolution 2018-023; and WHEREAS, as a result of implementing the expected 2.1% rate increase, concerns were raised about the unintended elimination of the words "un-metered" or "non-metered" from the Group C Large General Service classification definition, and these words were unintentionally removed from the Group C defmition and are recommended to be restored; and WHEREAS, the 2018 Water Tariff is proposed to be amended to clarify that metered rates apply to all customers other than non-commercial residential customers, with a further caution that before requesting to convert to metered rates, customers consider that based on a future rate study,the comparative financial advantage of metered versus ERU rates may change. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Water Tariff for 2018 is hereby approved in substantial form as attached hereto. Section 2. All previous Resolutions in conflict herewith are hereby repealed effective January 1, 2018. Section 3. This resolution is retroactive to January 15, 2018. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th day of April, 2018. CITY OF SEWARD,ALASKA RESOLUTION 2018-032 THE CITY OF SEWARD,ALASKA aA-e 'er--/--- M rianna Keil,Vice ayor AYES: Casagranda, McClure, Slater, Horn, Towsley, Keil NOES: None ABSENT: Squires ABSTAIN: None ATTEST: 4ip , / ,/ 4,,, , Brenda J. Ballou, MC City Clerk (City Seal) o...•###..,,� . OF SElR �{�,q� , . G T .• s • s = SEAL • ° __ -�- v 1. ti.. t ti., F O F AQP.: Water Rates and Charges - 2018 Rates for Water 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 increases 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 reflected an increase based on the average CPI for 2011-2015.) Note: * ERU=Equivalent Residential Unit($47.64) GROUP A-RESIDENTIAL Group A includes all residential customers living in single family or multiple family living units. Multiple family units include multi-plexes, apartments and townhouses, but exclude hotels, motels and similar transient accommodations. The accounts may be paid by individual occupants or owners of multiple units. When the entire water service to a multiplex or apartment building is billed to one account, the charge will be based on total number of living units in the building whether or not occupied. Living units are considered to be complete with kitchens, baths and plumbing for laundry units. No adjustment is made for the size of the unit, numbers of amenities or the size of the family occupying the unit. A 25% reduction is permitted for units that are not plumbed for laundry units provided a common laundry unit is not available in the building or apartment complex for apartment occupants. There will be no reduction if a common laundry facility is available. All Icommercial residential customers may elect to install, at their own expense, water meters, to be charged Group D metered commercial water and sewer rates. Customers electing to convert to metered rates are encouraged to consider that a pending Water and Sewer Rate Study may impact either or both ERU rates and metered rates, when deciding whether to invest in the costs of installing a water meter. BASIS FOR MONTHLY FEE Category/Description of Unit Charge * Living unit with plumbing for laundry, or common laundry facilityI ERU available on premises Living unit without plumbing for laundry and no common laundry available for use by the occupant 0.75 ERU Rental apartment unit not occupied by owner when billed as a multiple unit of 3 or more apartments served from a single water 0.75 ERU service. (No credit will be given for unoccupied units.) Duplex in one building treated as two residences served from a single 2 ERU water service City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-1 GROUP B- SMALL GENERAL SERVICE Group B includes 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. Where a building, mall or group of facilities is served from a single service, the bill will be based on the total number of facilities to be served, and no credit will be given for vacant facilities. Group B customers may elect to install, at their own expense, water meters, to be eligible for Group D metered commercial water and sewer rates. Customers electing to convert are encouraged to consider that a pending Water and Sewer Rate Study may impact either or both ERU rates and metered rates, when deciding whether to invest in the costs of installing a water meter. BASIS FOR MONTHLY FEE Category/Description of Unit Charge Hotels and motels not including bars and restaurants: 1.0 ERU Basic charge per building PLUS each guest room 0.3 ERU PLUS each pair of public restrooms in excess of one pair 0.3 ERU Office Building/Mall with offices and retail stores and businesses not including restaurants, bars, food markets: Basic charge per building 1.0 ERU PLUS each office/activity 0.3 ERU PLUS each pair of public restrooms in excess of one pair 0.3 ERU Single Office/retail shop/professional activity not in office building, per each office or activity 1.0 ERU Barber, beauty, animal grooming shop: Basic charge 1.0 ERU PLUS charge per chair/tub 0.75 ERU Libraries, public offices, professional offices, and similar activities: 1.0 ERU Basic charge per building PLUS each office/activity 0.3 ERU PLUS each pair of public restrooms in excess of one pair 0.3 ERU Doctors' offices, including medical clinics, emergency first aid station, dentists' offices and similar activities: 1.0 ERU Basic charge per facility PLUS per each examination room, dental chair or similar unit 0.5 ERU PLUS per each office 0.3 ERU City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-2 City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-3 Warehouses: Basic charge per building 1.0 ERU PLUS each pair of restrooms or showers exceeding one pair 0.3 ERU Churches, theaters, assembly halls, clubs, fraternal clubs: Basic charge per building 1.0 ERU PLUS each pair of restrooms exceeding one pair 0.3 ERU PLUS, for food/bar service, add charge for restaurant or bar Public restrooms in parks and similar activities, per each pair of restrooms 1.0 ERU Boardwalk shops with sewage, per shop 0.5 ERU Camping & RV Parks: Per spigot 0.5 ERU Per camper/motorhome hookup 0.2 ERU Private schools, day care centers Basic charge 2.0 ERU PLUS per each 15 students or for children in excess of 25 0.5 ERU Public baths and showers: Basic charge 2.0 ERU PLUS per each bath or shower in excess of two 0.5 ERU NOTE: Only one basic charge will be assessed per building where different activities occupy the same building. This does not exclude residential charges for living units within the same building. City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-4 GROUP C - LARGE GENERAL SERVICE Group C includes commercial enterprises where water usage is greater than in Small General services and/or Iwater is used for food preparation or other activities, but not for industrial processing. These activities will be metered when newly constructed or when remodeling and/or repairs makes installation of meters feasible. When a building, mall or group of facilities is served from a single service, the bill will be based on the total number of facilities served, and no credit will be given for vacant facilities. Group C customers with meters will be charged Group D metered commercial water and sewer rates. Customers wishing to convert to metered rates are encouraged to consider that a pending Water and Sewer Rate Study may impact either or both ERU rates and metered rates, when deciding whether to invest in the costs of installing a water meter. BASIS FOR MONTHLY FEE Category/Description of Unit Charge Food/grocery markets: Basic charge 3.0 ERU PLUS per water-cooled refrigeration unit 3.0 ERU PLUS per butcher/meat packing unit 1.0 ERU PLUS per bakery 1.0 ERU PLUS per snack bar/Deli 0.5 ERU Restaurants and/or bars (A unit may be defined as a combination restaurant/bar if operated together or separate units if restaurant and bar are operated separately.) This category includes all drink and food service activities, including full service restaurants, hospital kitchens, dormitories, dining halls, school cafeterias, etc.: Basic charge per unit 2.0 ERU PLUS per every 8 seats in excess of 8 seats 0.5 ERU Snack Bar- no seating 0.5 ERU Garage/gas stations and retail, manufacturing and repair shops not using water for processing: Basic charge 2.0 ERU PLUS per pair of restrooms exceeding one pair 0.3 ERU PLUS per each shower 0.3 ERU PLUS per each wash bay 1.0 ERU 1 I City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-5 Public schools,if non-metered,excluding swimming pools or food service: Basic charge Elementary School Jr. High School 7.0 ERU High School 7.0 ERU PLUS swimming pool 8.0 ERU PLUS charge for food service based on rate for restaurants 15.0 ERU (Pg. 3-4) Hospital&Nursing Homes,if un-metered,excluding food service: Basic charge 6.0 ERU PLUS charge for food service based on rate for restaurants (Pg.3-4) Laundry(self service or commercial units),un-metered mnew laundries will be metered]: Basic charge PLUS per each laundry unit of 12 pounds or less capacity 2.0 ERU PLUS per each laundry unit larger than 12 pounds capacity 1.0 ERU 2.0 ERU GROUP D-METERED COMMERCIAL & INDUSTRIAL SERVICE Group D includes metered commercial and industrial enterprises (non-commercial residential Group A customers are not currently eligible for metered rates). All new commercial activities shall be metered, and existing facilities will be converted to meters when remodeling and repairs make installation of a meter feasible. Meters must include readouts at a location acceptable to the City, to allow for accurate meter readings. Remote readers are required. The cost of initial installation of a meter in a new facility will be paid by the customer. The cost of maintenance, repair and replacement of all meters will be at customer expense. The customer will provide a meter, and the user will pay the cost of installation, where an existing service is converted to meter and the commercial use/activities of the user have not changed. If the meter is required due to changed usage, the customer will pay all costs, including the cost of the meter. Failure to repair or replace a faulty meter will result in the billing department estimating the meter reading or returning the customer to non-metered billing at the utility's discretion, until such time as the meter is replaced. If the customer fails to replace a faulty meter within 90 days of being informed of the need to replace the meter, the City may, at its expense, replace the meter and charge the customer as a work order, at double the costs incurred to replace the faulty meter, to encourage customers to repair and replace their own equipment. In all cases, the City will specify and/or approve the type of meter and its installation. A commercial customer in any Group may request to be converted to meter rates. If the customer request is approved to convert to meter rates, the customer will install a meter at the customer's expense, and thereafter charges will be based on metered usage. A customer cannot convert from metered to fixed rate billing. City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-6 BASIS FOR MONTHLY FEE Minimum Charge for Each Metered Service Service Size Minimum Monthly Charge 3/4" - 1" Service $23.70 1-1/2" - 2" Service $47.42 2-1/4" - 4" Service $239.10 Over 4" Service $1,195.32 Note: The minimum charge per metered service does not include fire sprinkler service. Charge for Consumption Consumption per Month per Meter Charge per 1,000 Gallons First 50,000 Gallons $6.00 Next 500,000 Gallons $4.78 Next 1,000,000 Gallons $3.66 Next 2,000,000 Gallons $2.99 111 All Additional Gallons $1.53 The consumption metered on several metered services serving the same owner will not be combined to calculate the monthly bill. Each will be computed as a separate bill. The City may negotiate or renegotiate special contracts with a user that consumes in excess of 20 million gallons of water per calendar year. Such contracts will set or amend a rate which will assure that the user pays its full share of the utility's fixed and variable operating and maintenance costs. All special contracts and renegotiations of existing special contracts shall be approved by resolution of the City Council. I City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-7 GROUP E-SPECIAL RATES AND FEES Group E includes charges for other categories of service not included in Groups A through D. 1. Equivalent Residential Unit(ERU) $47.64 2. Fire Hydrant Use Permit: From May 1 to Tapping Fee $98.80 August 31 a Fire Hydrant Permit may be PLUS daily fee: $49.40 issued. Fire Hydrants will be turned on PLUS weekly fee: $296.37 and off by Water or Fire Department Personnel. If the City determines that a meter and a backflow preventer are required, these will also be installed by Water Department personnel. This rate is set for contractors or other temporary water users, but not for bulk water service to ships or tanker trucks serving ships or industries, as follows: 3. Water Service Connection Fee (done by Up to 1" service not longer than 60 feet, one-ti City): charge of$2,766.05. In excess of 60 feet- actual cost, but not less than $2,766.05. PLUS cost of paving and curb replacement. Water Service Connection Fee (done by $166.27 connection fee PLUS cost of paving and Contractor): curb replacement. 4. Water Service Inspection Fee (for service $98.80 installed by others): City of Seward Water Tariff—Revised per 2018 Budget, Effective 01/15/2018 Page 3-8 5. Water Turn-On or Turn-Off (per visit, First turn-on and/or turn-off: No Charge excluding new service and new account name): No charge for the first turn-on for All other turn-ons or turn-offs: new service or new account. During business hours: $49.40 During non-business hours: $148.17 Seasonal turn-on/turn-off will be charged as "Seasonal turn-ons or turn-offs" (including new account name or same account name; waived if <2 months between turn-off and turn-on; only one Seasonal turn-on: $166.27 waived charge per account per 12 month Seasonal turn-off: $166.27 period; Seasonal can apply to summer or winter) 6. Unauthorized Use of City Equipment $987.90 (including fire hydrants, key boxes, turn- on and/or turn-off): 7. Restoration of Water Service (including Actual cost, including city overhead, repair of damage by owner or contractor labor, materials and equipment. to city facilities) 8. Locate Service: Locate between May 1 and Oct. 31 - no charge Locate between Nov. 1 and April 30 - $148.17 Large projects requiring several locates will be under a special agreement with the water utility and may include an additional fee. 9. Thaw Wire: Locate between May 1 and Oct. 31 - no charge Locate between Nov. 1 and April 30 - $148.17 City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-9 10. Security Deposit: Domestic (Single Fam. & Duplex) $49.40 Commercial & Multiple Dwellings: $148.17 Fire Hydrant usage: $296.37 11. Contractor Work: Any contractor tapping into a city main, or otherwise working on a city water line, must be properly licensed to perform the work and must also provide a $5,000.00 bond or equivalent cash guarantee payable to the city. 12. Ship Water Less than 1,000 gallons from Seward Boat (Water furnished to temporarily moored Harbor facilities not requiring city assistance or vessels): the use of fire hydrants: No Charge All service not included above: Basic Charge (during regular business hours): $98.80 Basic Charge (outside regular business hou $197.58 PLUS $9.19 per 1000 gallons for all water used. Note: Customer will be responsible for actual charges related to all work and materials required to provide water to vessel. The Point of delivery for potable water supplied by the City shall be at the customer side of the meter/backflow preventer, and the customer is responsible for water quality from the delivery point to the vessel. I City of Seward Water Tariff—Revised per 2018 Budget,Effective 01/15/2018 Page 3-10