HomeMy WebLinkAboutRes2007-097Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2007-097
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AMENDING THE PORT AND HARBOR
TARIFF BY INCREASING BY 5%, ALL MOORAGE, WHARFAGE,
BOAT LIFT, AND OTHER HARBOR RATES AND FEES
(EXCLUDING PASSENGER FEES), EFFECTIVE JANUARY 1, 2008
WHEREAS, the City desires to amend the Port and Harbor Tariff to increase rates
and fees, excluding passenger fees, by 5% to keep pace with inflationary cost increases; and
WHEREAS, the Harbor Enterprise Fund is able to pay operating costs and debt
service payments, but is not yet able to place additional funds in a depreciation reserve fund
to replace existing infrastructure for which debt payments are not currently being made; and
WHEREAS, the intent of this resolution is to incrementally increase rates to prevent
the rate shock associated with waiting for multiple years before increasing rates to adjust for
inflation; and
WHEREAS, the City of Seward desires to replace the existing floats in the older
section of the Seward Small Boat Harbor, but is unable to compete for existing State
matching funds for such renovations due to the requirement that the City have matching cash
funds on hand; and
WHEREAS, if the City is not able to adjust rates to keep pace with inflation, the
Harbor Enterprise Fund will not be able to accumulate any funds to provide grant matches, or
to address the replacement of infrastructure that has reached the end of its useful life.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The City Council of the City of Seward resolves to amend the Port and
Harbor Tariff by increasing harbor moorage, wharfage, boat lift, and all other fees by 5%,
with the exception of passenger fees, which shall remain at $3.50, and boat launch fees.
Section 2. This resolution shall take effect 10 days after adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this
13th day of November, 2007.
CITY OF SEWARD, ALASKA
RESOLUTION 2007-097
THE CITY OF SEWARD, ALASKA
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Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Amberg, Kellar, Corbridge
NOES: None
ABSENT: Smith
ABSTAIN: None
ATTEST:
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~ ohanna Dollerhi e, CMC
Acting City Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: November 13, 2007
Through: Philip Oates, City Manager ~~~~
From: Scott Ransom, Harbormaster
Agenda Item: Authorizing an increase in the port and harbor
tariff by increasing all moorage rates and other
port fees (excluding passenger fees) by 5%
effective January 1, 2008
BACKGROUND & JUSTIFICATION:
In April 2005 the City Council approved Resolution 2005-27, accepting a harbor
configuration for the Small Boat Harbor Expansion Project (the "Project"). The Project
was designed to take place phases. In May 2005 Council approved step 1, to extend E, F
and J floats (32 new concrete stalls), relocate X float (new gangway, new trestle, and fire
system) and to relocate and connect the fuel float. Step 1 was funded using revenues
from an increase in moorage rates which became effective on January 1, 2005. In Oct.
2005 139 pile (enough for all three phases) were purchased using EDA grant money.
Step 2 of the Project consisted of construction of new M, N, O, P and Q timber floats
(107 new stalls with power, water, and new sewer pump-out facility), uplands utilities, a
road, trash facility, used oil facility, and attractive new restrooms at the top of the
gangway. Step 2 was funded in part by an increase in the passenger fee from $1.50 to
$3.50 effective January 1, 2006 and in part from a 10% increase in moorage rates which
became effective January 1, 2006.
Step 3 of this project was the commercial basin Z float Project. Initial plans called for
880 ft of dock with attaching docks for commercial vessels. This project is rapidly
moving to final design .Although we will have to build this in phases, our current grant
should allow us to construct 200ft of dock, which will provide new moorage space for the
Cutter Mustang.
As local governments began to take ownership of the State harbors it quickly became
apparent that towns were not receiving enough money to replace their old floats. Seward
received $3,134,200. and took ownership of our floats in1999. This money was used to
replace some of the older floats. However, it was not enough and floats A, B, C, D, and S
are in desperate need of replacement. Harbormasters and Port Directors lobbied for grant
money from the State and this year a $SM 50/50 match was funded. The problem,
however, was that we needed to have our share of the matching funds available to be
considered. We could have submitted a very small project, but had we been successful we
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CITY OF SE~'~
RESOLUTION 2007-
e consideration. The cost of replying these floats
e bottom for futur es and a 5% rate increase will
We could do float replacements cation.
would be moved to th a matching grant apP
will be close to $BMds for futur
help us establish fun
ropos~ revenues has been factored into the 2008 Preliminary
F~eS~einP
gadget.
Approved by Finance Department
~- rt and harbor
RECOMr'¢NDF'TION: crease in the P°
authorizing an m assenger fees.
Council approves Resoluti e ~a o h~r pott fees excluding P
miffs of 5% for all m°orag
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