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Home My WebLink About12092020 City Council Work Session Packet - Water Sewer Rate Study Seward City Council Work Session Packet Topic: Review and Discuss the Water & Sewer Rate Study Results December 9, 2020 City Council Chambers Beginning at 5:30 p.m. Instructions For CITIZEN INVOLVEMENT DURING CITY COUNCIL Virtual WORK SESSIONS Due to COVID-19, alternate methods for citizen involvement during City Council work sessions have been created to allow public interaction while keeping everyone safe and healthy. Although there is no in person public attendance allowed, council wants to encourage citizen participation. If you wish to participate in a work session, please follow these simple steps: STEP 1: Sign up on the city clerk's contact list. Send an email to clerk2cityofseward.net and request to be included on the contact list AND provide your phone number. Sign up by 5:00 p.m. on the day of the work session. You'll receive a confirmation email from the city clerk that you're on the list; if you don't receive the confirmation,please call 224-4045 to confirm. STEP 2: Keep your phone handy throughout the work session. When answering your phone, please mute any background noise so you can be heard by council clearly. How it will work: During regular intervals throughout the work session, the proceedings will be halted and the city clerk will call citizens who have signed up. After all citizens have been contacted, council will continue the work session. Citizens sign up one time per work session, and will be contacted at every interval during the work session. Each time you are called, the city clerk will ask if you wish to be contacted at the next interval during that work session. How to watch or listen to a work session: 1. Watch Live Streaming on the city's YouTube page. Log onto YouTube and type "City of Seward Alaska" into the search bar or go to: 2. htlps://www.youtube.com/channel/IJCWzsXcDwdyklHKGgvYS_UNQ 3. Listen on the radio. Tune to KIBH-FM 91.7 4. Watch on television. Tune into GCI Cable Channel 9. Note: GCI has recently been experiencing technical difficulties with the sound; they are working diligently to fix the problem. December 9, 2020 CITY OF SEWARD, ALASKA W151 I AND SEWER RATE STUDY ,.a. DRAFT Preliminary Results GovRates, Inc. PUBLIC WORKS Ileum, llp'i Utility,Financial,Rate,and Management AND FINANCE Consultants for Governments DEPARTMENTS www.cFovrates.com i Why We Are Here City's Last Formal Water and Sewer Rate Study Was Completed in 1993, or 27 Years Ago Evaluated Revenue Sufficiency and Existing Rate Structures Developed a Multi-Year Plan to Fund Replacements of Aging Utility Infrastructure as Well as Other Revenue Requirements and to Modernize Water and Sewer Rate Structures Important Objective: Avoid "Rate Shock" to Various Customer Classes Achieving Rate Equity Will Be a Multi-Year Process — Not Advisable to "Fix Everything at Once" C: 's a4l "tr� i �- ba Jrr S�Yk• q`q ^v v3r ti� ""Yt i`u�ar'atl� �� N, Utility Overview City's Water and Sewer Utilities Provide Essential Service on Continuous Basis Public Health and Safety — Primary Objective Highly-Regulated (Alaska Department of Environmental Conservation / EPA) Permits Issued By Regulatory Agencies Require Satisfactory Operating Performance — Fines or Consent Orders for Non-Compliance or If Infrastructure Failures Cause Pollution Enterprise Funds: Operations Primarily Funded Through Monthly User Rates Capital-Intensive "Businesses" of City n q Major Cost Drivers Affecting Y UtilitY S stems Approximately $7.7 Million in Critical Water and Sewer Capital Needs to Be Funded By Utility Recognized Through Fiscal Year 2029 Primarily Replacements of Assets Reaching the End of Their Service Lives — Many Assets Over 30 Years Old Utility Infrastructure Often "Out of Sight, Out of Mind" Renewal and Replacement Needs Will Not Go Away, But Will Be More Expensive to Address in The Future Pictures Showing Interior of 200K Gallon Lowell Canyon Water Storage Tank That Must Be Replaced: 1 Y Multi-Year Capital Improvement Program Water System Capital Needs DescriptionEstimated Cost Percent of Distribution Piping Upgrades $ 1,200,000 29.7% Replace Lowell Canyon 200K Gallon Tank with a New400K Gallon Tank 875,000 21.7% �' Water Line Replacements 400,000 9.9% Vehicles and Equipment 370,000 9.2% ` New Production Well#8 285,000 7.1% L HypochlorideGenerator-SMIC Pump House 250,000 6.2% y'• i �� + Abandon Wells at Fort Raymond 250,000 6.2% s � Gateway Tank Roof-50%Funded By City 150,000 3.7% "y L,. New Automatic Read Meters 150,000 3.7% Refurbish#4 Production Well 85,000 2.1% { Double Wall Fuel Tanks-SMIC WaterTank 25,000 0.6% Total Water System Multi-Year Capital Program $ 4,040,000 100.0% Picture of Gateway Tank Roof Sewer System Capital Needs That Needs to Be Replaced Estimated Cost Percent of Description Through FY 2029 Total Wastewater Lagoon Sludge Removal(Every 10 Years) $ 2,000,000 54.1% Vehicles and Equipment 330,000 8.9% Collection System Infrastructure 325,000 8.8% SMIC Lower Lift Station 300,000 8.1% Manhole Refurbishment 240,000 6.5% SMIC Piping for Bypass 150,000 4.1% New Automatic Read Meters 150,000 4.1% Other Projects 203,000 5.5% Total Sewer System Multi-Year Capital Program $ 3,698,000 100.0% ➢ Above Amounts Are Utility's Responsibility—Additional Costs Assumed to Be Funded Through Grant Assistance �� now a Major Cost Drivers Affecting Utility System Cont. Operating Expenses Projected to Continue Increasing Historical Consumer Price Index Increases About 3% Per Year Due to Regulatory Environment and Commodity Cost Increases (Electricity, Chemicals, Fuel, etc.), Utility Costs Typically Increase at Higher Rate Than General Inflation Increases in Labor Costs and Benefits — Recent Pay Study Permanent Increases in Costs Must Ultimately Be Passed Throuuh to Customers Throuuh User Rates )y ,y C p t1 ul 5 r. %i F^�nf fart(y17 f� hlW7JJ S L.Sm..0 GT1'a INI ' ?o�'s ar'atl� Revenue Requirements Projected Through Fiscal Year1 Include1 1 Operation and Debt Service 1 Maintenance Coverage Expenses Requirements. Annual Revenue CapitalImprovement Administrative Requirements Program Funding Transfers and Through Rates Reserve Allowances • Ongoing i i Meet Useful Service Lives Major—• of i Projected Need for Revenue Adjustments Summary of Proposed Water and Sewer User Rate Revenue Adjustments Fiscal System System Combined Rate Design Year E - - Date Adjustment Adjustment Adjustment 2021 January 1, 2021 10.0% 4.0% 6.9% Determines How 2022 January 1, 2022 10.0% 4.0% 7.1% to Generate 2023 January 1, 2023 10.0% 4.0% 7.2% Additional 2024 January 1, 2024 10.0% 4.0% 7.3% Revenue Needed 2025 January 1, 2025 10.0% 4.0% 7.4% ➢ Best Financial Management Practices: Smaller, Incremental Increases Over Time Help to Avoid Future "Rate Shock" and Higher "Catch Up" Rate Increases Projected Financial Position — Water System Y Summarized Revenue Requirements Analysis-Water System Unrestricted Ending Cash Balances $2,500 $3,000 o $2,000 _____. $2 500 $1,50o Q S2,000 S1,000 _ st,000 550o e S500 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 DW—to l4'rc g Caprtar-.Wdldoual Gpital Finaiug —hm4rvs CaprW Fmtled from hates \4Ik t Senire 4pajvr Renes,Tl avd Repheemevt Fvvd Operating Fspmses prj-M Reem r.dn'Ropvx-0Rates _Op e,a g,a ,1\[aivtmauce FLua(W—g Capk.b Oue YearD -s CssB ou Rana ---projn'rea Re.®aavmer rnsiag R„es — —srx Hpvms na.s case ov xaaa 600i All-In Debt Service Coverage-Net Revenues Onh, Financial Targets Reco2nizeda 500% 40°% Unrestricted Cash: Six Months to One 300% Year Days Cash on Hand 200% All-In Debt Service Coverage: Minimum 100% - - - - - - - - - - - 200% Target (100% Required Per Existing Loan zo19 zozo zou zCM zozs S- zozs zoz6 zoz7 zozs zoz9 6 �Calculated Debt Sn�vice Covn�age Target Debt Service Coverage(200%) Agreements) — —�•Iioimum Debt Sel•vice Covel•age(100%) L�b Projected Financial Position — Sewer System Y v Summarized Revenue Requirements Analysis-Sewer System Unrestricted Ending cash Balances $3,000 s2,s00 $2,500 S2,000 $2,000 a9 Sl,_500 S1,500 — $1,000 c 51,000 5 e $500 a S.;00 61OLWO 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 s.2019 2020 2021 2022 2023 20za 2025 2026 2027 2028 2029 DgiosistotVor gc.ptal-Addidaaal C'a Pi[al Fuadwg (Mher iran3tts nnnnn�Capital Fuode .Rates nnnnn�\�I>ebt Ser,ice Maj or Revenueland Rephremeut FLod aaaaaa�Operating Ery®ses �Proj axed Reamuernder eropoatl Rates �Openi Ng and\[sioteuaote FLaO(\Voatclvg Capftab +—Oee Veer Dars Cash ee Haed ��Projated Rea'®ue Ender Eti4inQ Rates — —Sa NonM.s Dates Cash on Hand A0-In Debt Seivice Coverage-Net Revenues Only 800% - Financial Targets Recognized: 700% 600% Unrestricted Cash: Six Months to One 4O0% Year Days Cash on Hand 300% 200% 100% - - - - - - - r All-In Debt Service Coverage: Minimum °% 200% Target 2019 2020 2021 2022 2023 202d 2025 2026 202'/ 2028 2029 6 —Calculated Debt Service Covtvage —"Target Debt Service Coverage(200%) (100% Required Per Existing Loan — —Required Debt Service Coverage(100%) Agreements) V Financial Risks of Not Adjusting Rates at This Time Inability to Fund All Revenue Requirements, Fund Capital Program, and Meet Financial Targets User Rates Will Be Even Higher in the Future ■ Capital Needs for Systems Will Not Go Away,But Will Be More Expensive to Address in the Future; Inflation and Costs of Construction Continue to Affect System Costs Water System Sewer System Unrestricted Ending Cash Balances with\o Rate Adjustments Unrestricted Ending Cash Balances with No Rate Adjustments 53,000 $2.500 52.000 52.000 eSI,000 —__ _________ 51,500 a � y 51,000 2019 2020 2021 202E 20Zi 3(S(,000) - SO < G 2 (52.000) 0 9 202 Wm21 202E M20. NU SSm) 0) J 51,000) (5453,,00000) rn amo�xmec.9a.o _ sn groom. .m o.x.oa AD-an Debt Selvire Coverage-Net Revenues Only-No Rate Adjustments At InDebt Service Coverage-Net Revenues Only-Na Rate Adjustments '200% 350% .01 J00% 1,50% M% ___________ 200% 50°/0 .50% 2019 2020 2021 202E 202J EAU 20i. 2x26 2028 2029 D� 2019 20m 202t Zm2 Z025 M2G m25 mze M2) 2018 m)9 -150% —Calc0latMDebl Service Cov m1 �iarget Debt Snsiee Coirerage(200%) —Cxlcxlatei Debt Servire.Coverage —Tar get Debt Service Coierage(200%) --Re00ir M Debt Seri ice Cm me(100%) Mfidb m Debt Senior Coverage(100%) ` User Rate Design Objectives Include: Generate Necessary Revenue to Fund Operations, Debt Service, and Capital Needs Keep Rates Affordable and Competitive Avoid "Rate Shock" to Any Customer Class Promote Equity — Each Customer Class Should Pay Its Fair Share of System Costs Modernize Rate Structures Balancing Act — Cannot Always "Fix Everything at Once" rC N, Issues with Current Rates Structures Equivalent Residential Unit (ERU) Relationships for Unmetered Nonresidential Customers Are Unrealistic ERUs Attempt to Relate a Nonresidential Customer's Usage to That of a Single-Family Residential Customer (I ERU) — Examples: Each Hotel Guest Room = 0.3 ERU, Each Barber or Beauty Shop Chair or Tub = 0.75 Commercial Customers Have Recognized Up to 50% Cost Savings in Their Monthly Water and Sewer Bills When Switching from Unmetered Service to Metered Service Recommendation: Switch All Commercial Customers to Metered Service to Promote Rate Equity i:' �s�as��h+��°i .^+�n .i;4'. i`9.dk��a�'t'u�"��4�k1�",�' ��p'`� ��•'�WPr�iG��i i F Issues with Current Rate Structures Cont. Declining Price Blocks for Metered Service Are Not Typical in Water and Sewer Utility Industry at This Time Current Rate Structure: "The More You Use, The Cheaper the Water and Sewer" Current Volumetric Charges for Current Volumetric Metered Water Consumption Charges for Sewer Service f*1 Rate Per Rate Per 000 Gallons 1,000 Gallons 0 to 50,000 gallons $6.17 0 to 10,000 gallons $8.46 50,001 to 550,000 gallons 4.92 10,001 to 50,000 gallons 6.77 550,001 to 1,550,000 gallons 3.76 50,001 to 100,000 gallons 5.61 1,550,001 to 3,550,000 gallons 3.08 100,001 to 200,000 gallons 5.06 Above 3,550,000 gallons 1.57 Above 200,000 gallons 2.50 [*] Based on metered water use. ➢ In Alaska, Single Volumetric Charge for All Metered Usage Is Now the Norm I�� i F Issues with Current Rate Structures Cont. ➢ Substantial Difference in Effective Cost Per 1,000 Gallons Paid By Different Customer Classes Effective Cost Is Sum of Base Charge and Volumetric Charges Divided By Number of Gallons of Usage Effective Cost Per 1.000 Gallons Under Existing Rates Residential User of 6,000 Gallons [11 $8.16 $11.24 Metered Commercial Customers 7.47 9.65 Industrial 2.76 N/A Metered SMIC Customers [21 5.21 4.56 Ship Water 9.66 N/A [11 Seward residential customers are unmetered; based on Alaska statewide per capita water usage of 90 gallons per day applied to 2.1 persons per household in Seward. [21 SMIC = Seward Marine Industrial Center An i F Issues with Current Rate Structures Cont. City Has Separately Allocated Costs for Seward Marine Industrial Center (SMIC) for a Long Time, and Revenue Collections from SMIC Customers Are Much Lower Than Allocated Costs Other Customer Classes Have Been Subsidizing SMIC Customers for Decades — Subsidization Acknowledged in 1993 Rate Study Report SMIC Operating Deficiencies - Budgeted Fiscal Year 2020 [*] Budgeted SMIC Revenue $54,000 $28,000 Budgeted SMIC Operating Expenses 94,675 140,288 Difference-Amount ($40,675) ($112,288) Difference- Percent -75% -401% [*] Does not include SMIC capital needs. ` d. W • y 10 r r" � '� i F Issues with Current Rate Structures Cont. SMIC Revenue Deficiencies (coat.) ■ Not Feasible to Charge Full Cost of Service to SMIC at This Time — State Has Occasionally Discussed Closing Spring Creek Correctional Center During Budget Discussions — If Customers Lost, Many of Allocated Costs Would Then Need to Be Paid By Remaining City Utility Customers ■ However, There Is Potential for Additional Growth in Area — More Customers Over Which to Spread Cost Recovery Recommendation: Continue Charging SMIC the Same Rates as Other Classes; If Development Materializes, Consider Separate Rates for SMIC Customers (i.e., Treat as Separate Service Area) A Proposed Monthly Water User Rates Residential Customers: Monthly Charge Per Month Per Living Unit ■ 1 ERU per Living Unit Is Common in Alaska and the Utility Industry More Than 3 Residential Living Units Requires Metered Service ➢ Commercial Customers: Base Charge Based on Meter Size and Constant Volumetric Charge Per 1,000 Gallons for All Usage All Commercial Customers Must Have Metered Service Large Customers Using More Than 5 Million Gallons Per Year: Treated Same as Commercial Customers, But More Gradual Increases. Large Commercial Customers Are Affected the Most By Proposed Water Rate Structure Changes Ship Water: Rates Raised Uniformly /Across-the-Board Currently Paying Highest Effective Cost Per 1,000 Gallons A Proposed Monthly Water User Rates cont. Proposed Schedule of Monthly Water User Rates - Base Infrastructure Charges Fiscal Year Ending December 3 1, Existing Proposed Proposed Proposed Proposed Proposed Effective Effective Effective Effective Effe ctive Effective January 1, As Soon January 1, January 1, January 1, January 1, IDescitiption 2020 As Practical 2022i i2025 UNMETERED SERVICE: [*] Monthly Charge Per Living Unit $48.96 $48.96 $53.86 $59.25 $65.17 $71.69 Difference 0.00 4.90 5.39 5.92 6.52 METERED SERVICE: Base Infrastructure Charge: Up to 1"Water Service $24.36 $24.48 $26.93 $29.63 $32.59 $35.85 Greater Than 1"Up to 2"Water Service 48.18 48.96 53.86 59.25 65.17 71.69 Greater Than 2"Up to 4"Water Service 242.93 244.80 269.30 296.25 325.85 358.45 Greater Than 4"Up to 6"Water Service 1,228.54 489.60 538.60 592.50 651.70 716.90 Greater Than 6"Up to 8"Water Service 1,228.54 783.36 861.76 948.00 1,042.72 1,147.04 Greater Than 8"Up to 10"Water Service 1,228.54 1,126.08 1,238.78 1,362.75 1,498.91 1,648.87 Greater Than 10"Up to 12"Water Service 1,228.54 2,105.28 2,315.98 2,547.75 2,802.31 3,082.67 Ship Water: During Regular Business Hours $101.54 $111.69 $122.86 $135.15 $148.66 $163.53 Outside Regular Business Hours 203.07 223.38 254.73 270.29 297.31 327.05 [*]Unmetered nonresidential customers are proposed to be charged the following rates per ERU until switched over to metered service: Unmetered Nonresidential per ERU $53.86 $59.24 $65.17 $71.68 $78.85 A , e � Proposed Monthly Water User Rates cont. Proposed Schedule of Monthly Water User Rates - Volumetric Charges r Fiscal Year Ending December 31, 7w Existing Proposed Proposed Proposed Proposed Proposed Effective Effective Effective Effective Effe ctive Effective January 1, As Soon January 1, January 1, January 1, January 1, Description 2020 i22 2023 2024i METERED SERVICE: Charge for Consumption Per 1,000 Gallons-Usage Less Than or Equal to 5 Million Gallons Per Calendar Year 0 to 50,000 gallons $6.17 $6.29 $7.27 $7.50 $7.76 $8.54 50,001 to 550,000 gallons 4.92 6.29 7.27 7.50 7.76 8.54 550,001 to 1,550,000 gallons 3.76 6.29 7.27 7.50 7.76 8.54 1,550,001 to 3,550,000 gallons 3.08 6.29 7.27 7.50 7.76 8.54 Above 3,550,000 gallons 1.57 6.29 7.27 7.50 7.76 8.54 Large User Charge for Consumption Per 1,000 Gallons(Large User=Greater Than 5 Million Gallons Per Calendar Year) All Usage Per 1,000 Gallons $3.77 $4.36 $5.25 $6.21 $6.83 Ship Water Ship Water Per 1,000 Gallons $9.45 $10.40 $11.43 $12.58 $13.84 $15.22 A L�' 90 M Effective Cost Per 1,000 Gallons Under � Proposed Water Rates Projected Effective Cost Per 1,000 Gallons Under Proposed Monthly Water User Rates Description Existing 2021 2022i i2025 Residential User of 6,000 Gallons $8.16 $8.16 $8.98 $9.88 $10.86 $11.95 Metered Commercial Customers (<=5 M Gallons Per Year) 7.47 8.08 9.24 9.67 10.14 11.16 Metered Commercial Customers (>5 M Gallons Per Year) 2.76 3.86 4.45 5.35 6.32 6.95 Metered SMIC Customers 5.21 6.82 7.85 8.14 8.46 9.31 Ship Water 9.66 10.64 11.70 12.86 14.15 15.56 ➢ Multi-Year Plan to Make Rates More Equitable ➢ Over Time, City Should Monitor Customer Responses to Implementation of Proposed Monthly User Rates and Determine If Adjustments to the Rate Structure Are Appropriate Recommend Reviewing Rate Structure Again After Full Year of Customer Billing Statistics Under New Rates Is Available May Observe Some Water Conservation i F Proposed Monthly Sewer Rates Residential Customers: Monthly Charge Per Month Per Living Unit 1 ERU per Living Unit Is Common in Alaska and the Utility Industry More Than 3 Residential Living Units Requires Metered Service Commercial Customers: Base Charge Based on Meter Size and Constant Volumetric Charge Per 1,000 Gallons for All Usage All Commercial Customers Must Have Metered Service u, x0. R� ,1 4^ �t. �► ' '1l.,yti 1 � Proposed Monthly Sewer Rates (cont.)p Y Proposed Schedule of Monthly Sewer Rates Fiscal Year Ending December 31, Existing Proposed Proposed Proposed Proposed Proposed Effective Effective Effective Effective Effective Effective January 1, As Soon January 1, January 1, January 1, January 1, Fesc-iPtion 2i i & As Practical 2022i i2025 UNMETERED SERVICE:[*] Monthly Charge Per living Unit $67.46 $67.46 $70.16 $72.97 $75.89 $78.92 Difference 0.00 2.70 2.81 2.92 3.03 METERED SERVICE: Base Infrastructure Charge: Up to 1"Water Service $57.56 $57.34 $59.64 $62.02 $64.51 $67.08 Greater Than 1"Up to 2"Water Service 95.23 107.94 112.26 116.75 121.42 126.27 Greater Than 2"Up to 4"Water Service 240.11 337.30 350.80 364.85 379.45 394.60 Greater Than 4"Up to 6"Water Service 1,200.47 674.60 701.60 729.70 758.90 789.20 Greater Than 6"Up to 8"Water Service 1,200.47 1,079.36 1,122.56 1,167.52 1,214.24 1,262.72 Greater Than 8"Up to 10"Water Service 1,200.47 1,551.58 1,613.68 1,678.31 1,745.47 1,815.16 Greater Than 10"Up to 12"Water Service 1,200.47 2,900.78 3,016.88 3,137.71 3,263.27 3,393.56 Charge for Consumption Per 1,000 Gallons 0 to 10,000 gallons $8.46 $6.77 $7.33 $7.62 $7.93 $8.24 10,001 to 50,000 gallons 6.77 6.77 7.33 7.62 7.93 8.24 50,001 to 100,000 gallons 5.61 6.77 7.33 7.62 7.93 8.24 100,001 to 200,000 gallons 5.06 6.77 7.33 7.62 7.93 8.24 Above 200,000 gallons 2.50 6.77 7.33 7.62 7.93 8.24 [*]Any unmetered nonresidential customers are proposed to be charged the following rates per ERU until switched overto metered service: Unmetered Nonresidential per ERU $70.16 $72.97 $75.89 $78.93 $82.09 L�' 90 M Effective Cost Per 1,000 Gallons Under Proposed Sewer Rates Projected Effective Cost Per 1,000 Gallons Under Proposed Monthly Sewer Rates . . Residential User of 6,000 Gallons $11.24 $11.24 $11.69 $12.16 $12.65 $13.15 Metered Commercial Customers 9.65 10.41 11.12 11.56 12.02 12.50 Metered SMIC Customers 4.56 7.52 8.11 8.43 8.77 9.12 ➢ Multi-Year Plan to Make Rates More Equitable Over Time, City Should Monitor Customer Responses to Implementation of Proposed User Rates and Determine If Adjustments to the Rate Structure Are Appropriate Recommend Reviewing Rate Structure Again After Full Year of Customer Billing Statistics Under New Rates Is Available t 777, r, Comparison of Monthly Charges For Combined Water and Sewer Service - Monthly Usage of 6,000 Gallons $1so.00 Other Utilities Water Seward Water Other Utilities Wastewater Seward Wastewater S160.00 Rates effective October 2020 S140.00 $116.42 S116A2 S120.00 S100.00 S80.00 S60.00 S40.00 - $20.00 SO.00 o 01 `a. ,`moo o`149 G-ie1 �5'D a�tie` �O Quo o`�g t��aca o �2°a l o Gqc� —GPX `� DRAFT City of Seward, Alaska Tariff for Water Rates, Charges, and Fees 2021 to 2025 ERU = Equivalent Residential Unit 1. GROUP A—UNMETERED CUSTOMERS Group A includes all unmetered single-family residential customers and multifamily residential customers with three(3)or fewer living units. Multifamily units include multiplexes, apartments, and townhouses, but exclude hotels, motels, bed and breakfasts, 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 if they have — or have plumbing for— a kitchen sink, toilet, bathing unit(e.g., bathtub or shower), and either laundry units or access to common laundry units in the building. All living units shall be considered one (1)ERU. The multi-year schedule of rates for Group A is in Exhibit 1. All unmetered customers may elect to install water meters at their own expense, after which the customers will be charged Group B rates. When considering whether to incur the costs of a installing a water meter, customers are encouraged to consider that a future water and sewer rate study may impact either or both unmetered and metered rates. 2. GROUP B—METERED CUSTOMERS Group B includes all customers not in Group A. All Group B customers must be metered. Existing facilities will be converted to meter-based billing. Meters must include readouts at a location acceptable to the City to allow for accurate meter readings. Remote readers are required. 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. 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 Rate Tariff Pagel of 8 DRAFT Any unmetered customers that should be in Group B based on the customer classifications shall be charged monthly rates per ERU in accordance with Exhibit 1 until switched over to metered service. The number of ERU's for such customers shall be determined by the ERU determination methodology in effect prior to January 1, 2021. The multi-year schedule of rates for Group B is in Exhibit 1. 3. SPECIAL RATES. CHARGES.AND FEES Special rates, charges, and fees include charges for service not included in Groups A and B. The special rates, charges, and fees are in Exhibit 2. 4. ANNUAL RATE ADJUSTMENTS In the absence of a formal study recommendation or action by the city council, the water rates, charges, and fees in Exhibits 1 and 2 shall be automatically adjusted—without a public hearing —in accordance with the annual increase provisions contained in the exhibits. These automatic increases for inflationary effects on the costs of operations shall be effective for all bills rendered on or after January 1st of each year. The first increases under these provisions shall become effective on January 1, 2026 unless an earlier effective date is specified in Exhibits 1 and 2. 5. CONTRACTUAL RATES The City may negotiate or renegotiate a special service contract with a customer if there are unique conditions or circumstances of providing service to the customer that warrant special considerations. Such contracts will set or amend a rate which will ensure that the customer pays 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 a resolution of the City Council. EXHIBITS Exhibit 1: Schedule of Monthly Water User Rates (Page 3 of 8) Exhibit 2: Water System Special Rates, Charges, and Fees (Starts on Page 4 of 8) City of Seward Water Rate Tariff Page 2 of 8 DRAFT Exhibit 1 City of Seward,Alaska Schedule of Monthly Water User Rates Effective Effective Effective Effective Effective Annual Increase Line As Soon January 1, January 1, January 1, January 1, Reference No. Description As Practical 2022 2023 2024 2025 After 2025 GROUP A-UNMETERED CUSTOMERS N 1 Monthly Charge Per Living Unit $ 48.96 $ 53.86 $ 59.25 $ 65.17 $ 71.69 [A] GROUP B-METERED CUSTOMERS Base Infrastructure Charge: 2 Up to 1"Water Service $ 24.48 $ 26.93 $ 29.63 $ 32.59 $ 35.85 [A] 3 Greater Than 1"Up to 2"Water Service 48.96 53.86 59.25 65.17 71.69 [A] 4 Greater Than 2"Up to 4"Water Service 244.80 269.30 296.25 325.85 358.45 [A] 5 Greater Than 4"Up to 6"Water Service 489.60 538.60 592.50 651.70 716.90 [A] 6 Greater Than 6"Up to 8"Water Service 783.36 861.76 948.00 1,042.72 1,147.04 [A] 7 Greater Than 8"Up to 10"Water Service 1,126.08 1,238.78 1,362.75 1,498.91 1,648.87 [A] 8 Greater Than 10"Up to 12"Water Service 2,105.28 2,315.98 2,547.75 2,802.31 3,082.67 [A] Charge for Consumption Per 1,000 Gallons-Usage Less Than or Equal to 5 Million Gallons Per Calendar Year 9 All Gallons $ 6.29 $ 7.27 $ 7.50 $ 7.76 $ 8.54 [A] Large User Charge for Consumption Per 1,000 Gallons(Large User-Greater Than 5 Million Gallons Per Calendar Year) 10 All Gallons $ 3.77 $ 4.36 $ 5.25 $ 6.21 $ 6.83 [A] [*] Any unmetered customers that should be in Group B based on the customer classifications shall be charged the following monthly rates per ERU until switched over to metered service.The number of ERU's for such customers shall be determined by the ERU determination methodology in effect prior to January 1,2021. Effective Effective Effective Effective Effective January 1, January 1, January 1, January 1, January 1, 2021 2022 2023 2024 2025 Unmetered Group B Customer Rate Per ERU $ 53.86 $ 59.24 $ 65.17 $ 71.68 $ 78.85 ANNUAL INCREASE REFERENCES: [A] In the absence of a formal study recommendation or action by the city council,the rates and fees herein provided shall be automatically increased for inflationary effects on the costs of operations-without a public hearing-effective for all bills rendered on or after January 1st of each year.The percentage increase,if any,shall be the average of the five(5)previous published years'annual increases in the Urban Alaska Consumer Price Index, all urban consumers,not seasonally adjusted(the"CPI")(Series ID:CUURS49GSAO accessed via https:Hdata.bls.gov/cgi-bin/srgate)as published by the United States Department of Labor,Bureau of Labor Statistics.For example,if the previous five years'annual increases in the CPI were 1.4%,3.0%,0.5%,0.4%,and 0.5%,the average increase of 1.2%would be applied to the rates. City of Seward Water Rate Tariff Page 3 of 8 DRAFT Exhibit 2 City of Seward,Alaska Water System Special Rates,Charges,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 1. Fire Hydrant Use Permit:From May 1 to August 31 a Fire Hydrant Tapping Fee: $100 N/A Permit may be issued.Fire Hydrants will be turned on and off by PLUS daily fee: $50 plus metered usage N/A Water Department Personnel.If the City determines that a meter and PLUS weekly fee: $300 plus metered usage N/A 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 set herein: 2. Water Service Inspection Fee(Performed by City): $150 N/A 3. Water Turn-On or Turn Off(per visit excluding new service and new First Turn-On and/or Turn-Off: No Charge account name):No charge for the first turn-on for new service or new All Other Turn-Ons or Turn-Offs: account. During Business Hours: $50 N/A During Non-Business Hours: $150 N/A 4. Seasonal Turn-On/Turn-Off:can apply to summer or winter;only Seasonal Turn-On: $50 for turn-on plus must performed during regular business hours.If during non-business pay applicable infrastructure hours,charge is$150 instead of$50. charges for number of months in which account is inactive Seasonal Turn-Off: $50 for turn-off plus must pay applicable infrastructure charges for number of months in which account is inactive City of Seward Water Rate Tariff Page 4 of 8 DRAFT Exhibit 2 City of Seward,Alaska Water System Special Rates,Charges,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 5. Infrastructure Charges for Inactive Accounts:help to recover the City's fixed costs of providing service while customer's service is inactive upon a seasonal turn-off;charged monthly: 2021 Monthly Rates Group A Per Living Unit $24.48 N/A Umnetered Group B Per ERU 24.48 N/A Group B Up to 1"Water Service 24.48 N/A Group B Greater Than 1"Up to 2"Water Service 48.96 N/A Group B Greater Than 2"Up to 4"Water Service 244.80 N/A Group B Greater Than 4"Up to 6"Water Service 489.60 N/A Group B Greater Than 6"Up to 8"Water Service 783.36 N/A Group B Greater Than 8"Up to 10"Water Service 1,126.08 N/A Group B Greater Than 10"Up to 12"Water Service 2,105.28 N/A Infrastructure Charges for Inactive Accounts:(cont.) 2022 Monthly Rates Group A Per Living Unit $26.93 N/A Umnetered Group B Per ERU 26.93 N/A Group B Up to 1"Water Service 26.93 N/A Group B Greater Than 1"Up to 2"Water Service 53.86 N/A Group B Greater Than 2"Up to 4"Water Service 269.30 N/A Group B Greater Than 4"Up to 6"Water Service 538.60 N/A Group B Greater Than 6"Up to 8"Water Service 861.76 N/A Group B Greater Than 8"Up to 10"Water Service 1,238.78 N/A Group B Greater Than 10"Up to 12"Water Service 2,315.98 N/A City of Seward Water Rate Tariff Page 5 of 8 DRAFT Exhibit 2 City of Seward,Alaska Water Svstem Special Rates,Charges,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference Infrastructure Charges for Inactive Accounts:(cont.) 2023 Monthly Rates Group A Per Living Unit $29.63 N/A Umnetered Group B Per ERU 29.63 N/A Group B Up to 1"Water Service 29.63 N/A Group B Greater Than 1"Up to 2"Water Service 59.25 N/A Group B Greater Than 2"Up to 4"Water Service 296.25 N/A Group B Greater Than 4"Up to 6"Water Service 592.50 N/A Group B Greater Than 6"Up to 8"Water Service 948.00 N/A Group B Greater Than 8"Up to 10"Water Service 1,362.75 N/A Group B Greater Than 10"Up to 12"Water Service 2,547.75 N/A Infrastructure Charges for Inactive Accounts:(cont.) 2024 Monthly Rates Group A Per Living Unit $32.59 N/A Umnetered Group B Per ERU 32.59 N/A Group B Up to 1"Water Service 32.59 N/A Group B Greater Than 1"Up to 2"Water Service 65.17 N/A Group B Greater Than 2"Up to 4"Water Service 325.85 N/A Group B Greater Than 4"Up to 6"Water Service 651.70 N/A Group B Greater Than 6"Up to 8"Water Service 1,042.72 N/A Group B Greater Than 8"Up to 10"Water Service 1,498.91 N/A Group B Greater Than 10"Up to 12"Water Service 2,802.31 N/A Infrastructure Charges for Inactive Accounts:(cont.) 2025 Monthly Rates Group A Per Living Unit $35.85 [A] Umnetered Group B Per ERU 35.85 [A] Group B Up to 1"Water Service 35.85 [A] Group B Greater Than 1"Up to 2"Water Service 71.69 [A] Group B Greater Than 2"Up to 4"Water Service 358.45 [A] Group B Greater Than 4"Up to 6"Water Service 716.90 [A] Group B Greater Than 6"Up to 8"Water Service 1,147.04 [A] Group B Greater Than 8"Up to 10"Water Service 1,648.87 [A] Group B Greater Than 10"Up to 12"Water Service 3,082.67 [A] City of Seward Water Rate Tariff Page 6 of 8 DRAFT Exhibit 2 City of Seward,Alaska Water System Special Rates,Charges,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 6. Unauthorized Use of City Equipment(including fire hydrants,key $1,000 plus cost of repair of N/A boxes,turn-on and/or turn-off): damage 7. Restoration of Water Service(including repair of damage by owner Actual cost,including City or contractor to City facilities): overhead,labor,materials, and equipment 8. Locate Service: First Locate: No Charge Each Additional Locate on Property: $170 N/A Large projects requiring several locates will be under a special contract and may require an additional fee. 9. Thaw Wire: Locate between May 1 and October 31: No Charge Locate between November 1 and April 30: $170 N/A 10. Security Deposit: Group A-Unmetered Customers Per Section 14.01.030 of City Code of Ordinances.Based on two(2) months fixed charges or such other amount as may be established by resolution. Group B-Metered Customers Two(2)months fixed charges for Group A-Unmetered Customers multiplied by a factor of three(3) Weekly Fire Hydrant Usage Deposit: $300;customer is N/A responsible for repairs to damage 11. Contractor Work: Any contractor tapping into a city main, or otherwise working on a N/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. City of Seward Water Rate Tariff Page 7 of 8 DRAFT Exhibit 2 City of Seward,Alaska Water System Special Rates,Charges,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 12. Ship Water(Water furnished to temporarily moored vessels): 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: 2021 Rates Base Charge(during regular business hours): $111.69 [B] Base Charge(outside regular business hours): 223.38 [B] PLUS charge per 1,000 gallons for all water used: 10.40 [B] 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. 13. Delinquent Account Charges Interest rate: 10%per annum N/A Monthly late fee: $5 N/A For customers receiving more than one service(e.g.,electric,water,and sewer service),the delinquent account charges apply to the combined bill and not to each service. ANNUAL INCREASE REFERENCES: N/A No annual increases. [A] After 2025,infrastructure charges for inactive accounts shall be automatically adjusted on an annual basis by the same percentage increases,if any,as the City's monthly water base infrastructure charges. [B] After 2021,ship water base and usage charges shall be automatically adjusted on an annual basis by 10%for 2022 to 2025.After 2025,the ship water base and usage charges shall be automatically adjusted by the same percentage increases as the City's commercial water base infrastructure charges. City of Seward Water Rate Tariff Page 8 of 8 DRAFT City of Seward, Alaska Tariff for Sewer Rates, Charges, and Fees 2021 to 2025 ERU = Equivalent Residential Unit 1. GROUP A—UNMETERED CUSTOMERS Group A includes all unmetered single-family residential customers and multifamily residential customers with three(3)or fewer living units. Multifamily 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 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 if they have separate plumbing for a kitchen sink, toilet, bathing unit (e.g., bathtub or shower), and either laundry units or access to common laundry units in the building. All living units shall be considered one (1)ERU. The multi-year schedule of rates for Group A is in Exhibit 1. All unmetered customers may elect to install water meters at their own expense, after which the customers will be charged Group B rates. When considering whether to incur the costs of a installing a water meter, customers are encouraged to consider that a future water and sewer rate study may impact either or both unmetered and metered rates. 2. GROUP B—METERED CUSTOMERS Group B includes all customers not in Group A. All Group B customers must be metered. Existing facilities will be converted to meter-based billing. Meters must include readouts at a location acceptable to the City to allow for accurate meter readings. Remote readers are required. 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. 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 Sewer Rate Tariff Pagel of 8 DRAFT Any unmetered customers that should be in Group B based on the customer classifications shall be charged monthly rates per ERU in accordance with Exhibit 1 until switched over to metered service. The number of ERU's for such customers shall be determined by the ERU determination methodology in effect prior to January 1, 2021. The multi-year schedule of rates for Group B is in Exhibit 1. The volumetric charge shall be based upon the quantity of metered water, except that those users having a sewer meter shall be charged for the quantity of sewage actually metered. 3. SPECIAL RATES. CHARGES.AND FEES Special rates, charges, and fees include charges for service not included in Groups A and B. The special rates, charges, and fees are in Exhibit 2. 4. ANNUAL RATE ADJUSTMENTS In the absence of a formal study recommendation or action by the city council,the sewer rates, charges, and fees in Exhibits 1 and 2 shall be automatically adjusted—without a public hearing —in accordance with the annual increase provisions contained in the exhibits. These automatic increases for inflationary effects on the costs of operations shall be effective for all bills rendered on or after January 1st of each year. The first increases under these provisions shall become effective on January 1, 2026 unless an earlier effective date is specified in Exhibits 1 and 2. 5. CONTRACTUAL RATES The City may negotiate or renegotiate a special service contract with a customer if there are unique conditions or circumstances of providing service to the customer that warrant special considerations. Such contracts will set or amend a rate which will ensure that the customer pays 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 a resolution of the City Council. EXHIBITS Exhibit 1: Schedule of Monthly Sewer Rates (Page 3 of 8) Exhibit 2: Sewer System Special Rates, Charges, and Fees (Starts on Page 4 of 8) City of Seward Sewer Rate Tariff Page 2 of 8 DRAFT Exhibit 1 City of Seward,Alaska Schedule of Monthly Sewer Rates Effective Effective Effective Effective Effective Annual Increase Line As Soon January 1, January 1, January 1, January 1, Reference No. Description As Practical 2022 2023 2024 2025 After 2025 GROUP A-UNMETERED CUSTOMERS f*1 1 Monthly Charge Per Living Unit $ 67.46 $ 70.16 $ 72.97 $ 75.89 $ 78.92 [A] GROUP B-METERED CUSTOMERS Base Infrastructure Charge: 2 Up to 1"Water Service $ 57.34 $ 59.64 $ 62.02 $ 64.51 $ 67.08 [A] 3 Greater Than 1"Up to 2"Water Service 107.94 112.26 116.75 121.42 126.27 [A] 4 Greater Than 2"Up to 4"Water Service 337.30 350.80 364.85 379.45 394.60 [A] 5 Greater Than 4"Up to 6"Water Service 674.60 701.60 729.70 758.90 789.20 [A] 6 Greater Than 6"Up to 8"Water Service 1,079.36 1,122.56 1,167.52 1,214.24 1,262.72 [A] 7 Greater Than 8"Up to 10"Water Service 1,551.58 1,613.68 1,678.31 1,745.47 1,815.16 [A] 8 Greater Than 10"Up to 12"Water Service 2,900.78 3,016.88 3,137.71 3,263.27 3,393.56 [A] Charge for Consumption Per 1,000 Gallons 9 All Gallons $ 6.77 $ 7.33 $ 7.62 $ 7.93 $ 8.24 [A] [*] Any unmetered customers that should be in Group B based on the customer classifications shall be charged the following monthly rates per ERU until switched over to metered service.The number of ERU's for such customers shall be determined by the ERU determination methodology in effect prior to Effective Effective Effective Effective Effective January 1, January 1, January 1, January 1, January 1, 2021 2022 2023 2024 2025 Unmetered Group B Customer Rate Per ERU $ 70.16 $ 72.97 $ 75.89 $ 78.93 $ 82.09 ANNUAL INCREASE REFERENCES: [A] In the absence of a formal study recommendation or action by the city council,the rates and fees herein provided shall be automatically increased for inflationary effects on the costs of operations-without a public hearing-effective for all bills rendered on or after January 1st of each year.The percentage increase,if any,shall be the average of the five(5)previous published years'annual increases in the Urban Alaska Consumer Price Index, all urban consumers,not seasonally adjusted(the"CPI")(Series ID:CUURS49GSAO accessed via https:Hdata.bls.gov/cgi-bin/srgate)as published by the United States Department of Labor,Bureau of Labor Statistics.For example,if the previous five years'annual increases in the CPI were 1.4%,3.0%,0.5%,0.4%,and 0.5%,the average increase of 1.2%would be applied to the rates. City of Seward Sewer Rate Tariff Page 3 of 8 DRAFT Exhibit 2 City of Seward,Alaska Sewer System Special Rates,Charees,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 1. Users generating sewage with a BOD and SS loading in excess of Specified rate in rate tables times a factor of the actual BOD and SS mg/1(upon a determination by the utility manager that the loading divided by 250,plus the cost of testing concentration and characteristics of the sewage will not cause a detrimental effect upon the sewer system and/or treatment plant [BOD="Biological Oxygen Demand"and SS="Suspended Solids'J 2. Tank Truck Operators:Fresh sewage from portable or chemical Per thousand gallons: $65.48 N/A toilets,provided the utility manager determines the waste will not be detrimental to the sewer system and/or treatment plant.Tank trunk operators must have a contract with the City prior to discharging waste into the City's sewer system and must keep an accurate log of all discharges. NOTE: Per Section 14.20.060 of the City Code of Ordinances,it is unlawful to discharge into the City's sewer system,septic tank waste or any waste containing toxic or other materials that could cause the City's discharge to violate the EPA or DEC discharge permit. 3. Recreational Vehicles:Individual RV owners utilizing City-owned or Per dump: $10 N/A approved dump sites 4. Ship's Sewage: Cruise ship sewage is not accepted by the City.Sewage from other vessels is not accepted without special permission from the utility manager.Any accepted sewage shall be billed at the effective metered customer rates or other applicable rates as determined by the utility manager. City of Seward Sewer Rate Tariff Page 4 of 8 DRAFT Exhibit 2 City of Seward,Alaska Sewer System Special Rates,Charees,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 5. Sewer Service Inspection Fee(Performed by City): $150 N/A 6. Infrastructure Charges for Inactive Accounts:help to recover the City's fixed costs of providing service while customer's service is inactive upon a seasonal turn-off;charged monthly: 2021 Monthly Rates Group A Per Living Unit $33.73 N/A Unmetered Group B Per ERU 33.73 N/A Group B Up to 1"Water Service 33.73 N/A Group B Greater Than 1"Up to 2"Water Service 63.49 N/A Group B Greater Than 2"Up to 4"Water Service 198.41 N/A Group B Greater Than 4"Up to 6"Water Service 396.82 N/A Group B Greater Than 6"Up to 8"Water Service 634.92 N/A Group B Greater Than 8"Up to 10"Water Service 912.69 N/A Group B Greater Than 10"Up to 12"Water Service 1,706.34 N/A Infrastructure Charges for Inactive Accounts:(cont.) 2022 Monthly Rates Group A Per Living Unit $35.08 N/A Unmetered Group B Per ERU 35.08 N/A Group B Up to 1"Water Service 35.08 N/A Group B Greater Than 1"Up to 2"Water Service 66.03 N/A Group B Greater Than 2"Up to 4"Water Service 206.35 N/A Group B Greater Than 4"Up to 6"Water Service 412.71 N/A Group B Greater Than 6"Up to 8"Water Service 660.33 N/A Group B Greater Than 8"Up to 10"Water Service 949.22 N/A Group B Greater Than 10"Up to 12"Water Service 1,774.64 N/A City of Seward Sewer Rate Tariff Page 5 of 8 DRAFT Exhibit 2 City of Seward,Alaska Sewer System Special Rates,Charees,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference Infrastructure Charges for Inactive Accounts:(cont.) 2023 Monthly Rates Group A Per Living Unit $36.49 N/A Unmetered Group B Per ERU 36.49 N/A Group B Up to 1"Water Service 36.49 N/A Group B Greater Than 1"Up to 2"Water Service 68.69 N/A Group B Greater Than 2"Up to 4"Water Service 214.65 N/A Group B Greater Than 4"Up to 6"Water Service 429.29 N/A Group B Greater Than 6"Up to 8"Water Service 686.87 N/A Group B Greater Than 8"Up to 10"Water Service 987.38 N/A Group B Greater Than 10"Up to 12"Water Service 1,845.96 N/A Infrastructure Charges for Inactive Accounts:(cont.) 2024 Monthly Rates Group A Per Living Unit $37.95 N/A Unmetered Group B Per ERU 37.95 N/A Group B Up to 1"Water Service 37.95 N/A Group B Greater Than 1"Up to 2"Water Service 71.44 N/A Group B Greater Than 2"Up to 4"Water Service 223.24 N/A Group B Greater Than 4"Up to 6"Water Service 446.47 N/A Group B Greater Than 6"Up to 8"Water Service 714.35 N/A Group B Greater Than 8"Up to 10"Water Service 1,026.88 N/A Group B Greater Than 10"Up to 12"Water Service 1,919.82 N/A City of Seward Sewer Rate Tariff Page 6 of 8 DRAFT Exhibit 2 City of Seward,Alaska Sewer System Special Rates,Charees,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference Infrastructure Charges for Inactive Accounts:(cont.) 2025 Monthly Rates Group A Per Living Unit $39.46 [A] Unmetered Group B Per ERU 39.46 [A] Group B Up to 1"Water Service 39.46 [A] Group B Greater Than 1"Up to 2"Water Service 74.28 [A] Group B Greater Than 2"Up to 4"Water Service 232.12 [A] Group B Greater Than 4"Up to 6"Water Service 464.24 [A] Group B Greater Than 6"Up to 8"Water Service 742.78 [A] Group B Greater Than 8"Up to 10"Water Service 1,067.74 [A] Group B Greater Than 10"Up to 12"Water Service 1,996.21 [A] 7. Unauthorized Connection or Discharge into the City Sewer System: Per Occurrence: $1,000 N/A PLUS Cost of repair,restoration or cleanup by the City PLUS State and/or Federal penalties and charges levied against the City or individuals 8. Restoration of Sewer Service and Repair of Damage by Owner or Actual cost,including city overhead,administration,labor,materials Contractor to City Facilities: and equipment 9. Locate Sewer Main: First Locate: No Charge Each Additional Locate on Property: $170 N/A Large projects requiring several locates will be under a special contract and may require an additional fee. City of Seward Sewer Rate Tariff Page 7 of 8 DRAFT Exhibit 2 City of Seward,Alaska Sewer System Special Rates,Charees,and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 10. Security Deposit: Group A-Unmetered Customers Per Section 14.01.030 of City Code of Ordinances.Based on two(2) months fixed charges or such other amount as may be established by resolution. Group B-Metered Customers Two(2)months fixed charges for Group A-Unmetered Customers multiplied by a factor of three(3) 11. Contractor Work: Any contractor tapping into a city sewer main,or otherwise working on N/A a City sewer main,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. 12. Sewage Meter: Computed from the quantity of metered water delivered to the same activity unless a sewage meter has been installed. Sewage meters approved by the City may be installed at the user's expense. 13. Delinquent Account Charges Interest rate: 10%per annum N/A Monthly late fee: $5 N/A For customers receiving more than one service(e.g.,electric,water,and sewer service),the delinquent account charges apply to the combined bill and not to each service. ANNUAL INCREASE REFERENCES: N/A No annual increases. [A] After 2025,infrastructure charges for inactive accounts shall be automatically adjusted on an annual basis by the same percentage increases,if any,as the City's monthly sewer base infrastructure charges. City of Seward Sewer Rate Tariff Page 8 of 8