HomeMy WebLinkAboutRes2013-078 Sponsored by: Hunt
L CITY OF SEWARD, ALASKA
RESOLUTION 2013-078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING AND CORRECTING THE 2013 OPERATING
BUDGET FOR THE SMALL BOAT HARBOR TO ACCOUNT FOR
INCREASED ELECTRICAL COSTS DUE TO HARBOR EXPANSION
WHEREAS,during the past seven years the Seward Small Boat Harbor has expanded to the
south and to the east; and
WHEREAS,the addition of new moorage slips has also significantly increased the harbor's
electrical power purchases; and
WHEREAS,the harbor's power purchases are reimbursed by customer electrical purchases;
and
WHEREAS,the 2013 budget requires an adjustment in order to fully account for projected
power purchases by the Small Boat Harbor.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. An additional amount of$106,000 from Harbor Reserves account no. 401-000-
3050 be transferred to the Harbor Electrical Power for Resale Account no. 401-4200-5320, to
account for the cumulative effect of two years:additional 2012($26,000)and 2013 ($80,000)power
costs.
Section 2. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of
October 2013.
CITY OF SEWARD, ALASKA
RESOLUTION 2013-078
THE CITY OF SEWARD, ALASKA
Dav eawar , yor
AYES: Valdatta, Bardarson, Keil, Casagranda, Terry
NOES: None
ABSENT: Shafer
ABSTAIN: Seaward
ATTEST:
Johanna Kinney, CMC
i ity Clerk
(City Seal)
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• I SEAL
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Agenda Statement
A 431* II.
Meeting Date: October 14, 2013
To: City Council
414-1(s0"
Through: City Manager Jim Hunt
From: Harbormaster Mack Funk
Agenda Item: Harbor Budget Adjustment for Electrical
BACKGROUND & JUSTIFICATION:
In August 2013,the Finance Department discovered the fact that the electrical usage at Z Float had
been estimated for the past two years(see attachment). Apparently,the electric meter was locked up
inside a cabinet and the meter reader estimated the usage. The result was a bill on August 17 in the
amount of$51,543.67. The mistake was factored in to the 2014-2015 Harbor budget proposal,but it
will also be necessary to adjust the 2013 budget appropriations.
The Harbor Electrical budget appears to have been significantly underfunded:
Power for Resale Expense Account no. 401-4200-5320
Year Budget Actual
2011 $176,400 $192,946
2012 $190,000 $243,731
2013 $196,000 $276,000 est.
The harbor has significantly expanded the number of slips over the past few years, with the south
harbor expansion and the addition of Z float. In fact, Z float was completed just at the time of the
last City biennial budget for 2012-2013. For that reason, it was difficult to project the amount of
usage and particularly how much electricity would be consumed. Z float is used by tugs and work
boats that consume large amounts of electricity.
It is requested that an additional amount of$106,000 from Harbor Reserves account no. 401-000-
3050 be transferred to the Harbor Electrical Power for Resale Account no. 401-4200-5320, to
account for the cumulative effect of two years: additional 2012($26,000)and 2013 ($80,000)power
costs.
INTENT:
The intent is to correct the Harbor electrical budget appropriation for 2013 to account for both 2012
and 2013.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here): X
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE:
With the discovery of the billing error on Z float a budget adjustment is required. The proposed
2014 and 2015 budgets include the expected costs, but the 2013 budget needs to be adjusted to
account for cost overruns for both 2012 and 2013.
Approved by Finance Department: /ak(0
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
0‘1t3
Council approve Resolution 2013- correcting the 2013 Harbor budget.