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HomeMy WebLinkAboutRes2015-028 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING THE PORT AND HARBOR TARIFF REGULATIONS TO INCREASE THE CHARGE FOR DISHONORED CHECKS, TO REVISE THE CHARGES FOR RE-BLOCKING VESSELS AND FOR BOAT LIFT WORK THAT EXTENDS BEYOND ONE HOUR, AND TO REVISE THE WHARFAGE RATES FOR BOAT FUEL TO CONFORM TO THE CHARGES IN THE ANNUAL CONTRACT WITH THE FUEL DOCK OPERATOR WHEREAS,the charge for dishonored checks has been increased to $36.75; and WHEREAS, the charges for re-blocking vessels and for boat lift work that extends beyond one hour should better reflect the cost of the work; and WHEREAS,the wharfage rates in the Tariff should conform to the fuel dock contract. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. Sections 225, 265, and 290 of the Port & Harbor Tariff Regulations entitled respectively Labor & Service Charges, 330-Ton Travelift Fees, and Wharfage Rates are amended as follows: Strikeout=delete Bold Italics=new 225 LABOR AND SERVICE CHARGES A labor and service charge is assessed, in addition to any other charges set forth in this tariff, for all labor performed by City personnel and for specific services provided by the City of Seward or its agents. Service charges do not include charges for dockage, wharfage, wharf demurrage or handling. (e) Miscellaneous Charges (4) Dishonored check fee $3-5,00 36.75 265 330-TON TRAVELIFT FEES (a) Description of Charge. The lift fee is the charge for lifting a vessel from the water or the land utilizing the City's 330-ton Travelift. A separate lift fee is generated whenever a vessel is lifted, even if it is only lifted and relocated on land. Lift fees do not include overtime labor charges for operation of the Travelift system as described in Subsection 225 of this tariff. CITY OF SEWARD,ALASKA .RESOLUTION 2015-028 (b) Lift Fee (1) Minimum Fee. The minimum fee for a lift on the 330-ton Travelift shall be FOUR HUNDRED TWENTY-FIVE DOLLARS ($425.00) for the first hour of use or any portion of time less than one (1) hour. For use of a lift in excess of one (1) hour, additional time shall be charged in fifteen (15) minute increments. The overall length of the vessel will determine the lift fee. A full lift fee is charged once a lift has commenced, even if that lift is subsequently interrupted, suspended or canceled for any reason. The risk of loss because of a suspended or canceled lift by reason of mechanical failure or difficulty with the Travelift system is the responsibility of the vessel owner/operator. Once a lift is scheduled and the boat owner fails to show or cancel the lift at least one hour prior to the scheduled lift time,the minimum lift fee will be charged. (2) Additional Lift Fee Rates for Large Vessels. For all vessels over FIFTY-FIVE (55) feet in length, an additional TWENTY-ONE DOLLARS ($21.00) shall be charged for each foot of vessel length over fifty five (55) feet during the first hour of use or any portion of time less than one (1)hour. hour, a fee of THREE HUNDRED FORTY SIX DOLLARS AND FIFTY CENTS ($ 316.50) per hour shall be charged. This charge shall be assessed in not less than fifteen (15) minute increments of EIGHTY SIX DOLLARS AND SIXTY THREE CENTS ($86.63) and shall be generated per one quarter(1/1)hour or any portion of time less than one quarter(1/1)hour. (3) Relocation and Reblocking Fees. Relocation Reblocking of all vessels on the uplands shall be charged at a rate of THREE HUNDRED FORTY SIX DOLLARS AND FIFTY CENTS ($316.50) per hour FOUR HUNDRED TWENTY-FIVE DOLLARS($425.00)for the first hour of use or any portion of time less than one (1) hour. Reblocking consists of lifting the boat, adjusting/replacing the blocking materials and setting the boat down in the same space. If a boat is to be relocated to another space or yard, lift fees apply as listed in sections (1) and(2) above. 290 WHARFAGE RATES (a) Schedule of Standard Rates. Except as otherwise specifically provided, rates are in dollars per ton of 2,000 pounds or per 40 cubic feet. Comm odity Wharfage Rate Petroleum products (gasoline)per gallon $0.0172 $.0147 CITY OF SEWARD,ALASKA RESOLUTION 2015-028 Petroleum products (diesel)per gallon $0.0083 $.0075 Section 2. This resolution shall take effect ten(10) days after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27`x' day of April, 2015. THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Terry, Butts, Keil, Darling, Bardarson NOES: Casagranda, Squires ABSENT: None ABSTAIN: None ATTEST: Johanna Kip! ; , CMC 'ty Clerk (Citx,,Jr'C`i tjf?os 0RW��' ®{Ap m0® ebeeea! �.,u'..te •�e"pO 4�6i °O O O vip° O � e0e ply, s PJ r3 0 Li _G' ;16 .tea Agenda Statement Meeting Date: April 13, 2015 To: City Council * �AS1� Through: City Manager Jim Hunt From: Harbormaster Mack Funk Agenda Item: Revising the 2015 Port and Harbor Tariff Regulations to 1) increase the charge for dishonored checks, 2) revise the charges for re-blocking vessels and for boat lift work that extends beyond one hour, and 3) revise the Tariff wharfage rates for boat fuel to conform to the charges in the annual contract with the fuel dock owner/operator. BACKGROUND &JUSTIFICATION: Section 225. The Harbor Tariff specifies a charge for dishonored checks. The City has recently raised its charge from $35 to $36.75. Section 225 (e) (4) of the Harbor Tariff should be revised to bring the Harbor into conformance with City-wide policy. Section 265. When the purchase of the new boat lift equipment was approved in the summer of 2014 it was the Administration's intent to increase not only the basic fee, but also the extra, charge for vessels longer than 55 feet. However, only the basic fee increase was approved at that time. This current proposed change will extend the previously adopted "base" rate ($425 per hour) to reblocking and to lifts that extend beyond one hour. There is no change proposed for the rate charged to boats longer than 55 feet. In addition to hauling out and launching boats, the Harbor staff also relocates boats and reblocks boats. In the City's boatyard at SMIC the Harbor seeks to clarify the rates for these two services and for lift work that lasts longer than one hour. There is no need to revise the Tariff with regard to services performed with the 50-ton boat lift. Section 265 (b) of the Harbor Tariff should be revised to: 1) add reblocking, 2) to establish separate rates for reblocking and relocating vessels, and 3) to apply the same basic rate for lift work that extends beyond one hour. Reblocking is specifically described in the Tariff language. No charge will be added for boats longer than 55 feet. The Administration believes that these changes will increase revenues needed to repay the general fund for the cost of the new equipment. It will also better reflect the cost of the work expended. Finally the changes should be simpler to administer. Section 290. Harbor moorage rates are adjusted annually based on the Consumer Price Index- CPI. In order to make this administratively possible there is a delay so, for example, the 2015 rates are based on the change in the CPI during the years 2008-2012. The fuel dock contract was amended in January 2013 to specify that the October Annual Energy Category CPI report will be used to calculate the contract rental rates for the fuel docks. That report is not published until November 20, by which time the Tariff for the subsequent year has generally been finalized, but the City and the vendor must still finalize the contract for the subsequent year. Therefore in 2015, the rental rate remains the same as 2014. In future years the parties would use the index for the prior year. Thus, in 2016 the rental rate would be based on the change in the Annual Energy Category of the Consumer Price Index Report issued November 20, 2014. This will allow time for the parties to enter into an agreement and incorporate the rental price into the 2016 Harbor Tariff. The Tariff wharfage rate must also be brought into conformance with the annual fuel dock terminal contract that was approved by the City Manager on February 13, 2015. The suggested language below does that. INTENT: This resolution will update the Port and Harbor Tariff and bring the rates up to date. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): Create a thriving port of X Seward through Harbor improvements. Page 23 2 Strategic Plan(document source here): Improve and expand maritime X facilities. Page 7 3. Other(list): FISCAL NOTE: The charge for dishonored checks will bring the harbor charges into conformance with other City departments. The new boat lift charges are expected to result in approximately$2000 per year in additional revenue. The revised wharfage rates for fuel will be tied to the changes in fuel costs and the Tariff will now conform to the already approved contract with the fuel provider. Approved by Finance Department: f ATTORNEY REVIEW: Yes No X RECOMMENDATION: oZ& To approve Resolution 2015- Revising the 2015 Port and Harbor Tariff Regulations to 1) increase the charge for dishonored checks, 2) revise the charges for re-blocking vessels and for boat lift work that extends beyond one hour, and 3) revise the Tariff wharfage rates for boat fuel to conform to the charges in the annual contract with the fuel dock owner/operator.