HomeMy WebLinkAboutOrd2017-001 Sponsored by: Hunt
Introduction: January 9, 2017
Public Hearing: January 23, 2017
Enactment: January 23, 2017
CITY OF SEWARD,ALASKA
ORDINANCE 2017-001
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AMENDING SEWARD CITY CODE 7.10.320(J)(2),RESERVED
MOORAGE,DURATION,DEATH-REMOVING"ANNUAL"FROM THE
TERM "ANNUAL MOORAGE FEE"
WHEREAS,to better conform with Internal Revenue Service(IRS)requirements,the City
Council amended the Harbor Tariff in 2014 to allow for semi-annual moorage commitments by
Resolution 2014-092; and
WHEREAS, currently the City of Seward does not collect annual fees for reserve tenant
moorage; and
WHEREAS,the City Code 7.10.320(J)(2)refers to the moorage fee as an annual moorage
fee; and
WHEREAS, as a technical change and for better clarity, staff is requesting removal of the
word"annual"from this section of the code; and
WHEREAS, upon review of the City Code, there were no other references to an annual
moorage fee found.
NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Seward City Code Section 7.10.320 (J) is amended as follows:
Strikeout-=delete Bold Italics=new
7.10.320—Reserved Moorage
J. Duration. A holder's rights to reserved moorage space, once assigned,continues
until the holder ceases having a qualifying interest in a vessel suitable for the
assigned space, until the holder's death, or until the holder's voluntarily or
involuntarily relinquishment of the space.A holder's right does not transfer with the
sale or other disposition of the vessel.
CITY OF SEWARD,ALASKA
ORDINANCE 2017-001
2. Death. In the case of the death of the holder the space may be transferred only to
the holder's family member.To be an effective transfer the family member must have
a qualifying interest in the vessel assigned to the reserved moorage space and must
make a request for transfer, in writing, to the harbormaster with appropriate
documentation no later than the date the next ammal moorage fee is due.
Section 2. This ordinance shall take effect ten days following its enactment.
ENACTED by the City Council of the City of Seward, Alaska, this 23`1 day of January,
2017.
THE CITY OF SEWARD, ALASKA
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Man Bardarson, Mayor
AYES: Keil, McClure, Squires, Altermatt, Slater, Bardarson
NOES: None
ABSENT: Casagranda
ABSTAIN: None
ATTEST:
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Jo oanna Kinney, CMC
ty Clerk
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Agenda Statement
Meeting Date: January 9, 2017
To: City Council
Through: City Manager Jim Hunt
From: Harbormaster Norm Regis
Agenda Item: Striking “Annual” from “Annual Moorage Fee” in SCC 7.10.320 (J) (2)
BACKGROUND & JUSTIFICATION:
In 2014 and by Resolution 2014-092, the Port and Harbor Tariff was amended to conform to 26 CFR
Section 1.141-3 of the private activity bond regulations of the Internal Revenue Service, which
required the city to modify its billing practices in order to preserve the tax-exempt status of the City’s
harbor revenue bonds. To remain within the Safe Harbor Limitations contained in private activity
bond regulations, contracts can extend no more than 200 days without the potential for giving rise to
a private business use. The tariff modification eliminated the annual moorage fee and replaced it with
two semi-annual moorage commitments, in order to ensure the tenant’s rights to moorage space
within the harbor does not exceed 200 days.
A technical change is being proposed to remove the word “annual” in Seward City Code 7.10.320 (J)
(2), under Reserved Moorage:
J. Duration. A holder's rights to reserved moorage space, once assigned, continues until the holder
ceases having a qualifying interest in a vessel suitable for the assigned space, until the holder's death,
or until the holder's voluntarily or involuntarily relinquishment of the space. A holder's right does not
transfer with the sale or other disposition of the vessel.
…
2. Death. In the case of the death of the holder the space may be transferred only to the holder's
family member. To be an effective transfer the family member must have a qualifying interest in the
vessel assigned to the reserved moorage space and must make a request for transfer, in writing, to the
harbormaster with appropriate documentation no later than the date the next annual moorage fee is
due.
INTENT:Modify the Harbor tariff to remain within the Safe Harbor Limitations contained in private
activity bond regulations. Strike the word “annual” in SCC 7.10.320 (J) (2), to better conform with
current moorage billing standards.
Yes No N/A
CONSISTENCY CHECKLIST:
1. Comprehensive Plan (document source here): x
2. Strategic Plan (document source here): x
Other (list): SCC 1.01.045 (b) Amendments to any of the provisions of
3. X
this code shall be made by amending such provisions by specific reference
to the section number of this code in the following language: "That section
____________ of the code of the city of Seward, Alaska, is hereby
amended to read as follows: ____________." The new provisions shall then
be set out in full as desired.
4. Other. CFR Section 1.141 -3: X
FISCAL NOTE: There is no fiscal impact associated with this technical change proposed.
Approved by Finance Department: __________________________
ATTORNEY REVIEW: Yes____x_____ No_________ Not Applicable_________
RECOMMENDATION:
Enact Ordinance 2017- , implementing a technical change of striking the word “annual” from
“annual moorage fee” in Seward City Code 7.10.320 (J) (2).