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HomeMy WebLinkAboutRes2017-078CITY OF SEWARD, ALASKA Sponsored by: Hunt RESOLUTION 2017-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE WATER TARIFF TO PROVIDE FOR A 2.1 % RATE INCREASE, CLARIFYING METERED VERSUS NON -METERED, INCREASING BASE RATE FOR 1 1/2" - 2" METERS, CHANGING THE SEASONAL DEFINITION, AND OTHER MINOR HOUSEKEEPING ISSUES WHEREAS, the rate and fee schedule will reflect the automatic annual adjustment of the previous five years' annual rates in the Consumer Price Index (CPI) so the fund is able to achieve sustainability in covering annual operating and capital costs; and WHEREAS, the City of Seward's enterprise funds are operated in a manner similar to private business entities, in that, they establish charges intended to cover the full cost of providing services (including direct and indirect costs) for operations and maintenance, overhead, system expansion and charges for the use of capital facilities; and WHEREAS, in 2013, the City began repayment of the Third Avenue Water Line Debt at a rate of $156,844 per year; and WHEREAS, the Water Fund is not in a position to contribute to the Major Maintenance & Replacement Fund (MMRF); and WHEREAS, the 2018 Budget anticipated a deficit, leaving no funds available to contribute to the Major Repair and Replacement Fund, to cover depreciation costs or to make contributions to the Motor Pool. 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 amended as presented at this meeting as "Water Rates and Charges 2018", and is effective January 1, 2018. Section 2. This resolution shall take effect ten days following approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 271n day of November 2017. 1 CITY OF SEWARD, ALASKA RESOLUTION 2017-078 THE CITY OF SEWARD, ALASKA David Squires, Maybr AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires NOES: None ABSENT: None ABSTAIN: None Brenda J. Ballou, 4MC City Clerk (City Seal) •`�OF SEIV���'•. v •moo° --•— � i SEAL • ,��yqT � :. ,.• SAP• . ., OF A�P.••' fffffffff\\\�\ 1 Meeting Date To: Through: From: Agenda Item: Agenda Statement November 27, 2017 City Council Jim Hunt, City Manager Doug Schoessler, Public Works Director Amending the Water Rates and Charges in the 2018 Tariff BACKGROUND & JUSTIFICATION: Reaching a level of financial stability in the Water Enterprise Fund had been an ongoing challenge. In 2013, the City began repayment of the Third Avenue Water Line debt, at a rate of $156.844 per year. Due in part to this new loan payment, the Water Fund does not generate sufficient revenues to cover operations, nor to contribute funds to the Major Maintenance & Replacement Fund (MMRF). With the ongoing need to reach and maintain a positive cash position for the successful operation and maintenance of our systems, administration recommends continuing past practices of incrementally increasing tariffs in order minimize rate shock to customers, while still rebuilding the Fund to achieve long-term sustainability. The 2018 Water Tariff is slated to increase 2.1% (5 year average of the CPI rates). INTENT: The intent of this action is to incrementally improve the financial condition of the Water Enterprise Fund, while minimizing the adverse impact to ratepayers . CONSISTENCY CHECKLIST: Yes X No N/A X 1. Comprehensive Plan (document source here): 2. Strategic Plan (document source here): X 3. Other (list): FISCAL NOTE: Approved by Finance Department: At ATTORNEY REVIEW: Yes No X Not Applicable RECOMMENDATION: Water Rates and Charges - 20187 Rates for Water by Class of Service ANNUAL RATE ADJUSTMENT. The rates and fees herein provided are adjusted 2.14% beginning the first billing cycle of the 2018-7 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=1 00for all Urban Consumers, Anchorage, Alaska Area ("CPI') aspublished by the United States Department of Labor, Bureau of Labor Statistics. (For example, 2018-7 rates reflected an increase based on the average CPI for 20110-20114.) 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, whether metered or unmetered. 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. BASIS FOR MONTHLY GROUP A FEE Category/Description of Unit Charge Living unit with plumbing for laundry, or common laundry facility available on premises I ,ERU 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 water service 2 ERU City of Seward Water Tariff — Revised per 2018-7 Budget, Effective 0110112018-7 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, whether mctered or unmetered. 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. BASIS FOR MONTHLY GROUP B FEE Category/Description of Unit Charge Hotels and motels not including bars and restaurants: Basic charge per building 1.ERU PLUS each guest room 0.33 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: 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 Doctors' offices, including medical clinics, emergency first aid station, dentists' offices and similar activities: Basic charge per facility 1.0 ERU PLUS per each examination room, dental chair or similar unit 0.ERU PLUS per each office 0.33 ERU City of Seward Water Tariff — Revised per 2018-7Budget, Effective 011011201 S-7 Page 3-2 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 camperlmotorhome 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 einclude residential charges for living units within the same building. City of Seward Water Tariff — Revised per 2018-1 Budget, Effective 01101120187 Page 3-3 GROUP C - LARGE GENERAL SERVICE Group C includes commercial enterprises where water usage is greater than in Small General services and/or water 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. However, metered rates apples. to D customers. 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. BASIS FOR MONTHLY GROUP C 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 City of Seward Water Tariff — Revised pee 2018-7 Budget, Effective 0110112018-7 Page 3-4 Public schools, if non metered, excluding swimming pools or food service: Basic charge Elementary School Jr. High School High School 7.0 ERU PLUS swimming pool 7.0 ERU PLUS charge for food service based on rate for restaurants 8.0 ERU _15.0 ERU (Pg. 3-4) Hospital & Nursing Homes, if • n mete red -,-ex clu ding 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), Basic charge 2.0 ERU PLUS per each laundry unit of 12 pounds or less capacity 1.0 ERU PLUS per each laundry unit larger than 12 pounds capacity 2.0 ERU GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE Group D includes only metered commercial and industrial enterprises where water usage is greater than for small businesses and -a erwhere water is used for food „repay- do , other- a fivities and industrial processing not otherwise included in Groups A, B or C. as well as general new 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 in most locations. - 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 utilitv'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 replacc their own equipment. In all cases, the City will specify and/or approve the type of meter and its installation. City of Seward Water Tariff — Revised per 2018-7Budget, Effective O110112018-7 Page 3-5 A customer may request to be converted to meter rates if they meet the definition of a Class D customer. 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 2018-7 Budget, Effective 0110112018- Page 3-6 BASIS FOR MONTHLY GROUP D FEE Minimum Base Charge for Each Metered Service Service Size Minimum Monthly Charge 3/4" - 1" Service $47.641 1-1/2" - 2" Service $95.737.5346: 2-1/4" - 4" Service $239.10234.45 Over 4" Service $1,195.324, 78.73 Plus Charge for Consumption Consumption per Month per Meter Charge per 1,000 Gallons First 50,000 Gallons $6.005-.SB Next 500,000 Gallons $4.784-." Next 1,000,000 Gallons $3.663-.58 Next 2,000,000 Gallons $2.992 93 All Additional Gallons $1.531-.54 Only Group D customers are eligible for metered service rates. Group D customers will be charmed the Minimum Base Charge for each teetered service, plus the additional charge for consumption for each metered service, 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 no less than 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. City of Seward Water Tariff — Revised per 201817 Budget, Effective 0110112018-7 Page 3-7 GROUP E ©THEN WATER RATES AND FEES "Otheri rates" ilnclude_s-charges for other- categories of service not included in Groups A through D. 21. Fire Hydrant Use Permit: From May 1 to Tapping Fee August 31 a Fire Hydrant Permit may be PLUS daily fee: issued. Fire Hydrants will be turned on and PLUS weekly fee: 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: 22. Water Service Connection Fee (done by ON from water main to key box): Water Service Connection Fee (Ddone by Contractor from water main to key box): 3. Contractor Work: .43. Water Service Inspection Fee (for service installed by others): $98.8096.77 $49.404-938 $296.37290.27 Up to1 " serviee not longer than-60 feet, one ti charge of . in excess of 60 feet aActual cost, but not less than $2,766.05','� ". PLUS cost of paving and curb replacement. $166.27162.85 connection fee PLUS cost of paving and curb replacement. Anv 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 orequivalent cash guarantee payable to the city. $98.8096.77 City of Seward Water Tariff — Revised per 2018-7 Budget, Effective 0110112018-7 Page 3-8 5.54-. Water Turn -On or Turn -Off (per visit, excluding new service and new account name): No charge for the first turn -on for new service or new account. Seasonal turn-on/turn-off is 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; Seasonal can apply to summer or winter) 6.45: Unauthorized Use of City Equipment (including fire hydrants, key boxes, turn -on and/or turn -oft): 7.7-0, Restoration of Water Service (including repair of damage by owner or contractor to city facilities) 8.8 , Locate Service: 9.Wi Thaw Wire: First turn -on and/or turn-off: No Charge All other turn-ons or turn-offs: During business hours: $49.4048.38 During non -business hours: $148.17145.12 Seasonal turn-ons and turn- $190.56162.95 Seasonal turn-off: $190.56 $987.908 Actual cost, including city overhead, labor, materials and equipment. Locate between May 1 and Oct. 31 - no charge Locate between Nov. 1 and April 30 - $148.17' 45.12 Large projects requiring several locates will be under a special agreement with the water utility and may include an additional fee. Locate between May 1 and Oct. 31 - no charge Locate between Nov. 1 and April 30 - $148.17145.12 I City of Seward Water Tariff — Revised per 2018-7 Budget, Effective 0l/0112018-7 Page 3-9 44A.10. Security Deposit: Domestic (Single FamL11: & Duplex): $49.4048:38 Commercial & $148.17445.12 Fire Hydrant usage: $296.37290.27 Multiple Dwellings: City of Seward Water Tariff— Revised per 2018-7Budget, Effective 0110112018-7 Page 3-10 44411. ;---Ship Water (Water furnished to temporarily - moored_ -vessels): Any tapping into eentraetor- a eity main, or 00 bond also provide a 7 ' or- equivalent guarantee payable to the eity. e Less than 1,000 gallons from Seward Sninil Boat Harbor facilities not requiring city assistance or the use of fire hydrants: No Charge All service not included above: Basic Charge (during regular business hours): $98.8096.77 Basic Charge (outside regular business hours) $197.58193.52 PLUS $9.199-.00 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 2018-7 Budget, Effective 01/01/2018-7 Page 3-11 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 f rst 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 ofLabor 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, whether metered or unmetered. Multiple family units include multiplexes, 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. BASIS FOR MONTHLY GROUP A FEE Category/Description of Unit Charge* Living unit with plumbing for laundry, or common laundry facility available on premises 1 ERU 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 water service 2 ERU City of Seward Water Tariff — Revised per 2018 Budget, Effective 0110112018 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, whether metered or unmetered. 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. BASIS FOR MONTHLY GROUP B FEE Category/Description of Unit Charge Hotels and motels not including bars and restaurants: Basic charge per building 1.ERU PLUS each guest room 0.33 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.ERU PLUS each office/activity 0.33 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 LO 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: Basic charge per building 1.ERU PLUS each office/activity 0.33 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: Basic charge per facility 1.0 ERU PLUS per each examination room, dental chair or similar unit 0.ERU PLUS per each office 0.33 ERU City of Seward Water Tariff —Revised per 2018 Budget, Effective 0110112018 Page 3-2 Warehouses: Basic charge per building .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 include residential charges for living units within the same building. City of Seward Water Tariff— Revised per 2018 Budget, Effective 0110112018 Page 3-3 GROUP C - LARGE GENERAL SERVICE Group C includes commercial enterprises where water usage is greater than in Small General services and/or water 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. However, metered rates apply only to Group D customers. 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. BASIS FOR MONTHLY GROUP C 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 City of Seward Water Tariff— Revised per 2018 Budget, Effective 0110112018 Page 3-4 Public schools, excluding swimming pools or food service: Basic charge Elementary School 7.0 ERU Jr. High School 7.0 ERU High School 8.0 ERU PLUS swimming pool 15.0 ERU PLUS charge for food service based on rate for restaurants (Pg. 3-4) Hospital & Nursing Homes, excluding food service: 6.0 ERU Basic charge PLUS charge for food service based on rate for restaurants {Pg. 3-4) Laundry (self-service or commercial units): 2.0 ERU Basic charge PLUS per each laundry unit of 12 pounds or less capacity 1.0 ERU PLUS per each laundry unit larger than 12 pounds capacity 2.0 ERU GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE Group D includes only metered commercial and industrial enterprises where water usage is greater than for small businesses and where water is used for industrial processing not otherwise included in Groups A, B or C. All new 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 in most locations. 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. City of Seward Water Tariff— Revised per 2018 Budger, Effective 01/0112018 Page 3-5 A customer may request to be converted to meter rates if they meet the definition of a Class D customer. 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. BASIS FOR MONTHLY GROUP D FEE Minimum Base Charge for Each Metered Service Service Size Minimum Monthly Charge 3/4" -1" Service $47.64 1-1/2" - 2" Service $95.73 2-1/4" - 4" Service $239.10 Over 4" Service S1,195.32 Plus Char$e 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 All Additional Gallons $1.53 Only Group D customers are eligible for metered service rates. Group D customers will be charged the Minimum Base Charge for each metered service, plus the additional charge for consumption for each metered service. 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 no less than 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. City of Seward Water Tariff — Revised per 2018 Budget, Effective 0110112018 Page 3-6 OTHER WATER RATES AND FEES "Other rates" include charges for categories of service not included in Groups A through D. 1. Fire Hydrant Use Permit: From May 1 to August 31 a Fire Hydrant Permit may be issued. Fire Hydrants will be turned on 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: 2. Water Service Connection Fee (done by City from water main to key box): Water Service Connection Fee (done by Contractor from water main to key box): 3. Contractor Work: 4. Water Service Inspection Fee (for service installed by others): Tapping Fee $98.80 PLUS daily fee: $49.40 PLUS weekly fee: $296.37 Actual cost, but not less than $2,766.05. PLUS cost of paving and curb replacement. $166.27 connection fee PLUS cost of paving and curb replacement. 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. $98.80 City of Seward Water Tariff — Revised per 2018 Budget, Effective 0110112018 Page 3-7 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; Seasonal can Seasonal turn -on: $190.56 apply to summer or winter) Seasonal turn-off: $190.56 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 to labor, materials and equipment. 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 0110112018 Page 3-8 10. Security Deposit: 11. Ship Water (Water furnished to temporarily moored vessels): Domestic (Single Family & Duplex): $49.40 Commercial & Multiple Dwellings: $148.17 Fire Hydrant usage: $296.37 Less than 1,000 gallons from Seward Boat Harbor facilities not requiring city assistance or 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 hours): $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. City of Seward Water Tariff— Revised per 2018 Budget, Effective 0110112018 Page 3-9