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HomeMy WebLinkAbout02082021 City Council Work Session Packet - Water sewer Rate StudySeward City Council Work Session Packet Topic: Discuss the Water/Sewer Rate Study Virtual Meeting February 8, 2021 City Council Chambers Beginning at 5:00 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 4:00 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: 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. httDs://www.voutube.com/channel/UCWzsXcDwdvklHKGavYS UNO 3. Listen on the radio. Tune to KIBH-FM 91.7 4. Watch on television. Tune into GCI Cable Channel 9. Attending via ZOOM Enter the following information in the Zoom App or www.zoom.us Webinar ID: 968 9320 5754 Passcode: 506050 or Telephone: US: +1 408 638 0968 or 833 548 0282 (Toll Free) 0 February 8, 2021 CITY OF SEWARD, ALASKA W151 ; AND SEWER RATE STUDY DRAFT Results GovRates, Inc. _Cp Utility, Financial, Rate, and Management Consultants for Governments PUBLIC WORKS AND FINANCE DEPARTMENTS www.govrates.com (�Why We Are T City's Last Formal Water and Sewer Rate Study Was Completed in 1993, or Over 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 �- 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 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 Multi -Year Capital Improvement Program Water System Capital Needs 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% HypochlorideGenerator -SMIC Pump House 250,000 6.2% Abandon Wells at Fort Raymond 250,000 6.2% Gateway Tank Roof - 50% Funded By City 150,000 3.7% New Automatic Read Meters 150,000 3.7% Refurbish #4 Production Well 85,000 2.1% Double Wall Fuel Tanks -SMIC Water Tank 25,000 0.6% Total Water System Multi -Year Capital Program $ 4,040,000 100.0% Sewer System Capital Needs 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% Picture of Gateway Tank Roof That Needs to Be Replaced ➢ Above Amounts Are Utility's Responsibility —Additional Costs Assumed to Be Funded Through Grant Assistance � ry 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 Permanent Increases in Costs Must Ultimately Be Passed Throuuh to Customers Throuuh User Rates C oF^w Revenue Requirements Projected Through Fiscal Year 2029 Include the Following: Ongoing — Allows Assets to Meet Useful Service Lives Major — Extends Useful Service Lives of Assets �� Projected Need for Revenue Adjustments Summary of Proposed Water and Sewer User Rate Revenue Adiustments [*1 Combined - 1. - - • Adjustment 2021 January 1, 2021 10.0% 4.0% 6.9% 2022 January 1, 2022 10.0% 4.0% 7.1% 2023 January 1, 2023 10.0% 4.0% 7.2% 2024 January 1, 2024 10.0% 4.0% 7.3% 2025 January 1, 2025 10.0% 4.0% 7.4% [*] Percentages include CPI adjustments already allowed per existing rate tariffs. Rate Design Determines How to Generate Additional Revenue Needed ➢ Best Financial Management Practices: Smaller, Incremental Increases Over Time Help to Avoid Future "Rate Shock" and Higher "Catch Up" Rate Increases 8 Projected Financial Position — Water System Y $2,500 i Summarized Revenue Requirements Analysis - Water System $1,000 $500 SO 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Dq�oatatol\'rcluag Gpital-.Wdidoaal GpitalFinaivg IXhar irm4ers � CapaalFmtled from hates �\4Ik tSenire Oper,tlag Fspmses �Frj-M anm roan Frmoxa Rates _ _ _ I'rojMM Rn'mua Lvax Evs,v" g Rates A0-In Debt Service Coverage - Net Revenues Onh, 600a/o 500% 400% 300% z00% 100% 0% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 - Calculated Debt Sn k, C­ge -Target Debt Service Coverage (200%) Mioimum Debt Service Coverage (100%) Unrestricted Ending Cash Balances $2 500 a S2,000 $1,500 S1,0o0 0 e $500 CM 2019 2020 2021 2022 2021 2024 2025 2026 2027 2028 2029 4pajor Raaes aad Repheemeat Fuad Opera g,a ,1\1aiatmauce FLas(W'otEiog Capit,D �Oae YearD -s Cssh ou Dana — — srx vfoums na.s case ov xaaa Financial Targets Recognized: Unrestricted Cash: Six Months to One Year Days Cash on Hand All -In Debt Service Coverage: Minimum 200% Target (100% Required Per Existing Loan Agreements) S3,000 $2,500 9 $2,000 a v 51,500 $1,000 5 $S00 Projected Financial Position v Summarized Revenue Requirements Analysis - Sewer System i— IIR_',_lalwt_+_etlpg� 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Dgiosis to tVor gC'apital-Aadinau.I C'a Pital Fuadwg OtherrranI— Capital Funded from Rates \�I>ebt Ser,ice aaaaaaa� Operanu� �P®ses � ProieRetl Reamuerutler Prapoatl Rates — — — rroiatm Rer®ae; caarr F.using Rath All -In Debt Service Coverage - Net Revenues Only 800% - 700 % 600h/o 500% 400% 300% 200% 100% — — — — — — 0 % 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 —Calculated Debt Service Coverage —Target Debt Service Coverage (200%) — —Required Debt Service Coverage (100%) — Sewer System Unrestricted Ending Cash Balances Major Revera�l and Rephremeat FLoa � Opent Ng and \[siotenaote FLaO (\Vodclvg CapYab i Oee V ear Dars Cash ee Haed — —Sa NouM.s Dates Cash ou Haud Financial Targets Recognized: Unrestricted Cash: Six Months to One Year Days Cash on Hand r All -In Debt Service Coverage: Minimum 200% Target (100% Required Per Existing Loan 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 Unrestricted Ending Cash Balances with \o Rate Adjustments 5 '000 52.000 e SI.000 — -- —— -- — — —— -- a 2019 2020 2021 202E 20Zi 3 (St,000) < (52.000) (53,000) (54,000) J vl.lor <n..n emen o � erw'o�xmgcapa.9 ARA. Debt Seniee Coverage -Net Revenues Only - No Rate Adjustments 3 0% 250% 1,50% — — — — — — — — — — — — — .�% 2019 m20 2021 m22 20M WN 20i. 2A26 20. 2029 Sewer System Unrestricted Ending Cash Balances with No Rate Adjustments $2,500 52,000 � S1,500 a 51,000 e SO G 20 9 2020 m21 W22 202 2024 20 . 9 (95m) (51,000) At In Debt Service Coverage- Net Revenues Only - No Rate Adjustments NO % '200% .0% 500% J00% Mo % 200% 100% — — — — — — — — 0% — -150h �Calcolated Debt Serviee Covn'age �iarget Debt Snsiee Coirerage (200%) —01calatei Debt Service.Coverage —Tar get Debt Service Cmerage(200%) -- Reauir M Debt Sersire C—me(100%) -- Mink a Debt Sndee Coverage(100%) ` 6 '*�� Proposed Monthly User Rates Eligible to Be Unmetered: ■ Single Family Residential Customers ■ Duplexes, Apartments, Bed and Breakfasts, and Townhouses with No More Than Two (2) Living Units All Customers Not in the Above Classifications Must Be Metered Unmetered Customers: Monthly Charge Per Month Per Living Unit Metered Customers: Base Charge Based on Meter Size and Constant Volumetric Charge Per 1,000 Gallons for All Usage ➢ Lower Volumetric Rate for Customers (Except Ship Water) That Use More Than 1 Million Gallons in a Given Month Ship Water: Rates Raised Uniformly / Across -the -Board 12 Proposed Implementation Plan Make Rate Structure Changes in 2021, Then Across -the -Board Increases in 2022 to 2025 Recommend Monitoring Revenue Collections and Performing Another Rate Review Once City Has One Year or More of Data Under Updated Rates — Would Determine If Further Adjustments to Rate Structures Make Sense Recommend Implementation of Cost Savings Program to Encourage Unmetered Customers Required to Be Metered to Quickly Switch Over to Metered Service City Would Provide Meters and Meter Readers, and Customers Would Be Reimbursed for Installation Costs The Longer Customers Wait, the Lower the Reimbursement for Meter Installation Costs C: pw }.;�"N'��s{ih+2 13 oF^w Proposed Monthl Water User Rates Proposed Schedule of Monthly Water User Rates - Base Infrastructure Charges Fiscal Year Ending December Proposed Effective Proposed Effective Proposed Effective Proposed Effective Proposed Effective As Soon January 15, January 15, January 15, January 15, UNMETERED SERVICE: [*] Monthly Charge Per Living Unit $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: 1" WaterMeteror Smaller $40.80 $44.88 $49.38 $54.31 $59.74 Greater Than 1" Up to 1.5" Water Meter 81.60 89.77 98.75 108.62 119.48 Greater Than 1.5" Up to 2" Water Meter 130.56 143.63 158.00 173.79 191.17 Greater Than 2" Up to 3" Water Meter 244.80 269.30 296.25 325.85 358.45 Greater Than 3" Up to 4" Water Meter 408.00 448.83 493.75 543.08 597.42 Greater Than 4" Up to 6" Water Meter 816.00 897.67 987.50 1,086.17 19194.83 Greater Than 6" Up to 8" Water Meter 19305.60 19436.27 19580.00 19737.87 19911.73 Greater Than8" Up to 10" Water Meter 19876.80 29064.63 29271.25 2,498.18 29748.12 Greater Than 10" Up to 12" Water Meter 39508.80 39859.97 49246.25 49670.52 59137.78 Ship Water: During Regular Business Hours $111.69 $122.86 $135.15 $148.66 $163.53 Outside Re gular Bus ine s s Hours 223.38 254.73 270.29 297.31 327.05 [*] Unmetered customers required to he metered are proposed to be charged the following rates per ERU until switched over to metered service: Unmetered per ERU $53.86 $59.24 $65.17 $71.68 $78.85 -CR 14 Proposed Monthly Water User Rates (cont.) Proposed Schedule of Monthly Water User Rates — Volumetric Charges Fiscal Year Ending December Proposed Proposed Proposed Proposed Proposed -Irw Effective Effective Effective Effective Effective As Soon January 15, January 15, January 15, January 15, Description I22 2023 2024I METERED SERVICE: Charge for Consumption Per 1,000 Gallons - Usage Less Than 1 Million Gallons Per Month All Usage Per 1,000 Gallons S5.85 S6.43 S7.08 S7.79 S8.56 Charge for Consumption Per 1,000 Gallons - Usage of 1 Million Gallons Per Month or Higher All Usage Per 1,000 Gallons S4.91 S5.39 S5.94 S6.53 S7.18 Ship Water Ship Water Per 1,000 Gallons S10.40 S11.43 S12.58 S13.84 S15.22 15 Proposed Monthly Sewer Rates p Y Proposed Schedule of Monthly Sewer Rates Fis cal Ye ar Ending D. ce nihe proposed Effective As Soon proposed Effective January 15, proposed Effective January 15, proposed Effective January 15, proposed Effective January 15, D. UNMETERED SERVICE: [*] Monthly Charge Per Living Unit $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: 1" Water Meter or Smaller $56.22 $58.47 $60.81 $63.24 $65.77 Greater Than 1" Up to 1.5" WaterMeter 112.43 116.93 121.62 126.48 131.53 Greater Than 1.5" Up to 2" WaterMeter 179.89 187.09 194.59 202.37 210.45 Greate r Than 2" Up to 3" WaterMeter 337.30 350.80 364.85 379.45 394.60 Greater Than3" Up to 4" WaterMeter 562.17 584.67 608.08 632.42 657.67 Greate r Than 4" Up to 6" WaterMeter 1,124.33 19169.33 19216.17 19264.83 19315.33 Greate r Than 6" Up to 8" WaterMeter 19798.93 19870.93 19945.87 29023.73 29104.53 Greater Than 8" Up to 10" Water Meter 29585.97 29689.47 29797.18 2,909.12 39025.27 Greater Than 10" Up to 12" WaterMeter 49834.63 59028.13 59229.52 59438.78 59655.93 Charge for Consumption Per 1,000 Gallons All Gallons $6.77 $7.04 $7.32 $7.61 $7.92 [*] Unmetered customers required to be metered are proposed to be charged the following rates per ERU until switched over to metered service: Unmete red per ERU $70.16 $72.97 $75.89 $78.93 $82.09 -GR 16 Comparison of Monthly Charges For Combined Water and Sewer Service - Monthly Usage of 6,000 Gallons S180.00 Other Utilities Water Seward Water Other Utilities Wastewater Seward Wastewater S160.00 Rates effective October 2020 S140.00 S116.42 S116.42 S120.00 S100.00 S80.00 S60.00 S40.00 S20.00 S0.00 r�oca Q sec ro �p�Q S�ay`\a a�¢o a¢y 1 °a�aV �� " ` leg a ec °\a �� vacs G of Rate Comparison Not a "Report Card" on How Well Utility Is Performing Some Reasons Why User Rates Differ Among Utilities ■ Size of Existing Customer Base / Available System Growth ■ Demographics (e.g., Customers Spread Out vs. Close Together, Types of Customers Served) ■ Level of Capital Improvements to Meet Service Area Growth ■ Amount of Needed Renewals and Replacements / Remaining Service Life of Assets Differences in Bond Covenants Source of Water Supply and Treatment Process Costs Plant Capacity Utilization and Assistance in Funding of Such Capacity (e.g., Grants, System Development Fees) Time of Last Rate Review Amount of General Fund and Administrative Fee Transfers Proposed Residential Monthly User Rates Considered Affordable B Utility Industry Standards Y Y Y Environmental Protection Agency: Monthly Water and Wastewater Bill Less Than 4.5% of Median Household Income Considered Affordable Monthly Water and Sewer Bill for Single Family Residential Customer $116.42 Median Monthly Household Income Per U.S. Census Bureau [*] 6,134 Percent of Total 1.90% [*] $73,611 annual median household income for Seward / 12 months. ➢ Rates Projected to Remain Affordable Throughout Forecast Period ➢ $116.42 / 6,000 gallons = 1.9¢ per Gallon for Water and Sewer Service 19 �_ � Other Charges Considerations for Determining Proposed Other Charges: Current Utility Costs to Provide Service Comparison with Similar Charges of Other Alaska Utilities City Policies To the Extent Charges Do Not Recover Cost of Providing Services, Cost Difference Must Be Paid Through Monthly User Rates 20 Infrastructure Charges Proposed to Be Separate from Turn -On and Turn -Off Fees ➢ Charged Monthly to Inactive Accounts City Has Built Utility Infrastructure to Provide Service and Utility Continues to Incur Fixed Costs to Maintain "Ready - to -Serve" Condition Billing Inactive or "Vacant" Accounts Reduces Overall Costs to Year -Round Customers and Helps Keep User Rates Lower Cr 21 Infrastructure Charges(cont.)g WE ➢ Proposed Schedule of Monthly Infrastructure Charges ,.. ,. Water Infrastructure Charge Unmetered Residental Per Living Unit $40.80 $44.88 $49.38 $54.31 $59.74 Unmetered Nonresidential PerERU 40.80 44.88 49.38 54.31 59.74 1" Water Meter or Smaller 40.80 44.88 49.38 54.31 59.74 Greater Thant" Up to 1.5" Water Meter 81.60 89.77 98.75 108.62 119.48 Greater Than 1.5" Up to 2" Water Meter 130.56 143.63 158.00 173.79 191.17 Greater Than 2" Up to3" Water Meter 244.80 269.30 296.25 325.85 358.45 Greater Than3" Up to 4" Water Meter 408.00 448.83 493.75 543.08 597.42 Greater Than 4" Up to 6" Water Meter 816.00 897.67 987.50 1,086.17 1,194.83 Greater Than 6" Up to 8" Water Meter 1,305.60 1,436.27 1,580.00 1,737.87 1,911.73 Greater Than 8" Up to 10" Water Meter 1,876.80 2,064.63 2,271.25 2,498.18 2,748.12 Greater Than 10" Up to 12" Water Meter 3,508.80 3,859.97 4,246.25 4,670.52 5,137.78 Sewer Infrastructure Charge Unmetered Residental Per Living Unit $56.22 $58.47 $60.81 $63.24 $65.77 Unmetered Nonresidential PerERU 56.22 58.47 60.81 63.24 65.77 1" Water Meter or Smaller 56.22 58.47 60.81 63.24 65.77 Greater Than 1" Up to 1.5" Water Meter 112.43 116.93 121.62 126.48 131.53 Greater Than 1.5" Up to 2" Water Meter 179.89 187.09 194.59 202.37 210.45 Greater Than 2" Up to3" Water Meter 337.30 350.80 364.85 379.45 394.60 Greater Than 3" Up to 4" Water Meter 562.17 584.67 608.08 632.42 657.67 Greater Than 4" Up to 6" Water Meter 1,124.33 1,169.33 1,216.17 1,264.83 1,315.33 Greater Than 6" Up to 8" Water Meter 1,798.93 1,870.93 1,945.87 2,023.73 2,104.53 Greater Than 8" Up to 10" Water Meter 2,585.97 2,689.47 2,797.18 2,909.12 3025.27 Greater Than 10" Up to 12" Water Meter 4,834.63 5,028.13 5,229.52 5,438.78 5:655.93 Additional Proposed Changes to Other Charges Elimination of Cents on Fees Due to Historical Rounding Removal of Fees Not Currently Charged or Services Not Provided "Right -Sizing" of Fees Based on Current Cost Estimates Seasonal Locate Service Fees Adjusted to "Call 811" (Call Before You Dig) Policy of No Charge for First Locate Regardless of Season Charge for Additional Locate on Same Property 23 Requested Council Action Recommendation to Adopt Proposed User Rates for Fiscal Years 2021 Through 2025 Help Ensure Full Cost Recovery and Address Capital Needs Rates Affordable and Competitive ➢ Recommendation to Adopt Proposed Special / Other / Miscellaneous Charges ➢ Recommendation for Continued Automatic Rate Indexing in Absence of Rate Study Recommendation 24 fi i .a d Requested Council Action (cont.) Monitor Actual Vs. Projected Financial Results Changes in Economic Conditions, Customer Usage Trends, Regulatory Environment, Customer Responses to Rate Adjustments, Etc. Update Financial and Rate Plan as Needed, Possibly After One Year Under Revised Rate Structure 25 City of Seward, Alaska Tariff for Water Rates, Charges, and Fees 2021 to 2025 1. DEFINITIONS Equivalent Residential Unit (ERU): A unit of measure used to express the amount of water consumed by a typical full-time single family residence. All unmetered water customers shall be assigned a minimum of one (1) ERU. Living Unit: A unit that has — or has 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. 2. UNMETERED CUSTOMERS Customers eligible to be unmetered include: • Single-family residential customers; and • Duplexes, apartments, bed and breakfasts, and townhouses with no more than two (2) living units. All customers not in the above classifications must be metered. Hotels, motels, and similar transient accommodations are considered commercial establishments and must be metered. Residential and commercial customers that have a heat pump system using City water must be metered. All new construction must be metered at the customer's cost. All new meter installations must be inspected, approved, and documented by the City water department. Customers required to be metered but are currently unmetered can take advantage of a cost savings program offered by the City. When such customers contact the City finance department to initiate the transition to metered service, the City will provide the meter and meter reader. If these customers install the meters and meter readers provided by the City, pass City inspection, and produce a valid receipt to the City finance department, they will be reimbursed by the City as follows: • Meter installations initiated through December 31, 2021: Up to $300 of the meter installation costs within reasonable limits established by the Public Works Director or his/her designee. Meter installations initiated from January 1, 2022 to December 31, 2022: Up to $200 of the meter installation costs within reasonable limits established by the Public Works Director or his/her designee. Meter installations initiated from January 1, 2023 to December 31, 2023: Up to $150 of the meter installation costs within reasonable limits established by the Public Works Director or his/her designee. City of Seward Water Rate Tariff Page 1 of 10 26 • Meter installations initiated from January 1, 2024 to December 31, 2024: Up to $100 of the meter installation costs within reasonable limits established by the Public Works Director or his/her designee. The Public Works Director or his/her designee has the authority to determine the applicable reimbursement given the terms and conditions of the cost savings program as well as a customer's specific circumstances. Prior to switching to metered service, unmetered customers required to be metered will be charged per ERU in accordance with the ERU determination methodology in effect prior to the adoption of this tariff and the rates per ERU in Exhibit 1. Customers required to be metered that have not switched to metered service by December 31, 2024 shall be fined $500 per ERU per year unless the utility manager determines that certain circumstances exist that necessitate an extension. The accounts may be paid by individual occupants or owners of multiple units. When the entire water service to a multiplex or apartment building with two (2) living units is billed to one account, the charge will be based on total number of living units in the building whether or not occupied. The multi -year schedule of rates for unmetered customers is in Exhibit 1. All unmetered customers not required to be metered by the City may elect to install water meters at their own expense, after which the customers will be charged metered 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. 3. METERED CUSTOMERS Meters must include readouts at a location acceptable to the City to allow for accurate meter readings. Remote readers are required. If a customer has multiple metered services, each metered service will be computed as a separate bill. 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. Customers are responsible for changing any batteries required for the meter and meter reader to work properly. Failure to repair or replace a faulty meter or to address a meter operating deficiency will result in the billing department estimating the meter reading. If the customer fails to replace a faulty meter or address a meter operating deficiency within 90 days of being informed of the need to address the issue, the City may, at its expense, replace the meter or address the operating deficiency and charge the customer as a work order, at double the costs incurred by the City, to encourage customers to repair, replace, and maintain City of Seward Water Rate Tariff Page 2 of 10 27 their own equipment. In all cases, the City will specify and/or approve the type of meter and its installation. If a customer is required by the City to switch from unmetered to metered service, the customer may be eligible to receive a reimbursement from the City for the meter and installation costs. The amount of the reimbursement is in accordance with the parameters established in the "Unmetered Customers" section of this rate tariff. The multi -year schedule of rates for metered customers is in Exhibit 1. 4. SPECIAL RATES. CHARGES. AND FEES Special rates, charges, and fees include charges for service not included in the rates for unmetered and metered customers covered in previous sections of this tariff and in Exhibit 1. The special rates, charges, and fees are in Exhibit 2. 5. 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. 6. 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. F,YHTRITC Exhibit 1: Schedule of Monthly Water User Rates (Page 4 of 10) Exhibit 2: Water System Special Rates, Charges, and Fees (Starts on Page 5 of 10) City of Seward Water Rate Tariff Page 3 of 10 28 Exhibit 1 City of Seward, Alaska Schedule of Monthly Water User Rates Effective Effective Effective Effective Effective Annual Increase Line As Soon January 15, January 15, January 15, January 15, Reference No. Description As Practical 2022 2023 2024 2025 After 2025 UNMETERED CUSTOMERS N 1 Monthly Charge Per Living Unit $ 48.96 $ 53.86 $ 59.25 $ 65.17 $ 71.69 [A] METERED CUSTOMERS Base Infrastructure Charge: 2 1" Water Meter or Smaller $ 40.80 $ 44.88 $ 49.38 $ 54.31 $ 59.74 [A] 3 Greater Than 1" Up to 1.5"Water Meter 81.60 89.77 98.75 108.62 119.48 [A] 4 Greater Than 1.5" Up to 2" Water Meter 130.56 143.63 158.00 173.79 191.17 [A] 5 Greater Than 2" Up to 3" Water Meter 244.80 269.30 296.25 325.85 358.45 [A] 6 Greater Than 3" Up to 4" Water Meter 408.00 448.83 493.75 543.08 597.42 [A] 7 Greater Than 4" Up to 6" Water Meter 816.00 897.67 987.50 1,086.17 1,194.83 [A] 8 Greater Than 6" Up to 8" Water Meter 1,305.60 1,436.27 1,580.00 1,737.87 1,911.73 [A] 9 Greater Than 8" Up to 10" Water Meter 1,876.80 2,064.63 2,271.25 2,498.18 2,748.12 [A] 10 Greater Than 10" Up to 12" Water Meter 3,508.80 3,859.97 4,246.25 4,670.52 5,137.78 [A] Charge for Consumption Per 1,000 Gallons - Usage Less Than 1 Million Gallons Per Month 11 All Gallons $ 5.85 $ 6.43 $ 7.08 $ 7.79 $ 8.56 [A] Charge for Consumption Per 1,000 Gallons - Usage of 1 Million Gallons Per Month or Higher 12 All Gallons $ 4.91 $ 5.39 $ 5.94 $ 6.53 $ 7.18 [A] [*] Any unmetered customers that are required by the City to be metered 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 the adoption of this tariff. Effective Effective Effective Effective Effective As Soon January 15, January 15, January 15, January 15, As Practical 2022 2023 2024 2025 Rate Per ERU for Unmetered Customers Required to Be Metered By the City But Not Yet Switched Over to Metered Service $ 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 15th 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://data.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 0.59/o, the average increase of 1.2% would be applied to the rates. 29 City of Seward Water Rate Tariff Page 4 of 10 Exhibit 2 City of Seward, Alaska Water Svstem Special Rates, Charges, and Fees Line No. Description 1. Fire Hydrant Use Permit: From May 1 to August 31 a Fire Hydrant Tapping Fee: Permit may be issued. Fire Hydrants will be turned on and off by PLUS daily fee: Water Department Personnel. If the City determines that a meter and PLUS weekly fee: 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): 3. 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. 4. Seasonal Turn -On / Turn -Off: can apply to summer or winter; only performed during regular business hours. If during non -business hours, charge is $150 instead of $50. First Turn -On and/or Turn -Off: All Other Turn-Ons or Turn -Offs: During Business Hours: During Non -Business Hours: Seasonal Turn -On: Seasonal Turn -Off: Annual Effective Increase As Soon As Practical Reference $100 N/A $50 plus metered usage N/A $300 plus metered usage N/A $150 N/A No Charge $50 $150 $50 for turn -on plus must pay applicable infrastructure charges for number of months in which account is inactive $50 for turn-off plus must pay applicable infrastructure charges for number of months in which account is inactive N/A N/A City of Seward Water Rate Tariff 30 Page 5 of 10 Exhibit 2 City of Seward, Alaska Water Svstem Special Rates, Charges, and Fees Line No. Description 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: Infrastructure Charges for Inactive Accounts: (cont.) Unmetered Residental Per Living Unit Unmetered Nonresidential Per ERU 1" Water Meter or Smaller Greater Than 1" Up to 1.5" Water Meter Greater Than 1.5" Up to 2" Water Meter Greater Than 2" Up to 3" Water Meter Greater Than 3" Up to 4" Water Meter Greater Than 4" Up to 6" Water Meter Greater Than 6" Up to 8" Water Meter Greater Than 8" Up to 10" Water Meter Greater Than 10" Up to 12" Water Meter Unmetered Residental Per Living Unit Unmetered Nonresidential Per ERU 1" Water Meter or Smaller Greater Than 1" Up to 1.5" Water Meter Greater Than 1.5" Up to 2" Water Meter Greater Than 2" Up to 3" Water Meter Greater Than 3" Up to 4" Water Meter Greater Than 4" Up to 6" Water Meter Greater Than 6" Up to 8" Water Meter Greater Than 8" Up to 10" Water Meter Greater Than 10" Up to 12" Water Meter Annual Effective Increase As Soon As Practical Reference 2021 Monthly Rates $40.80 N/A 40.80 N/A 40.80 N/A 81.60 N/A 130.56 N/A 244.80 N/A 408.00 N/A 816.00 N/A 1,305.60 N/A 1,876.80 N/A 3,508.80 N/A 2022 Monthly Rates $44.88 N/A 44.88 N/A 44.88 N/A 89.77 N/A 143.63 N/A 269.30 N/A 448.83 N/A 897.67 N/A 1,436.27 N/A 2,064.63 N/A 3,859.97 N/A City of Seward Water Rate Tariff 31 Page 6 of 10 Exhibit 2 City of Seward, Alaska Water Svstem Special Rates, Charges, and Fees Line No. Description Infrastructure Charges for Inactive Accounts: (cont.) Infrastructure Charges for Inactive Accounts: (cont.) Unmetered Residental Per Living Unit Unmetered Nonresidential Per ERU 1" Water Meter or Smaller Greater Than 1" Up to 1.5" Water Meter Greater Than 1.5" Up to 2" Water Meter Greater Than 2" Up to 3" Water Meter Greater Than 3" Up to 4" Water Meter Greater Than 4" Up to 6" Water Meter Greater Than 6" Up to 8" Water Meter Greater Than 8" Up to 10" Water Meter Greater Than 10" Up to 12" Water Meter Unmetered Residental Per Living Unit Unmetered Nonresidential Per ERU 1" Water Meter or Smaller Greater Than 1" Up to 1.5" Water Meter Greater Than 1.5" Up to 2" Water Meter Greater Than 2" Up to 3" Water Meter Greater Than 3" Up to 4" Water Meter Greater Than 4" Up to 6" Water Meter Greater Than 6" Up to 8" Water Meter Greater Than 8" Up to 10" Water Meter Greater Than 10" Up to 12" Water Meter Annual Effective Increase As Soon As Practical Reference 2023 Monthly Rates $49.38 N/A 49.38 N/A 49.38 N/A 98.75 N/A 158.00 N/A 296.25 N/A 493.75 N/A 987.50 N/A 1,580.00 N/A 2,271.25 N/A 4,246.25 N/A 2024 Monthly Rates $54.31 N/A 54.31 N/A 54.31 N/A 108.62 N/A 173.79 N/A 325.85 N/A 543.08 N/A 1,086.17 N/A 1,737.87 N/A 2,498.18 N/A 4,670.52 N/A City of Seward Water Rate Tariff 32 Page 7 of 10 Exhibit 2 City of Seward, Alaska Water Svstem Special Rates, Charges, and Fees Line Effective No. Description As Soon As Practical Infrastructure Charges for Inactive Accounts: (cont.) 2025 Monthly Rates 6. Unauthorized Use of City Equipment (including fire hydrants, key boxes, turn -on and/or turn-off): 7. Restoration of Water Service (including repair of damage by owner or contractor to City facilities): 8. Locate Service: 9. Thaw Wire: Unmetered Residental Per Living Unit $59.74 Unmetered Nonresidential Per ERU 59.74 1" Water Meter or Smaller 59.74 Greater Than 1" Up to 1.5" Water Meter 119.48 Greater Than 1.5" Up to 2" Water Meter 191.17 Greater Than 2" Up to 3" Water Meter 358.45 Greater Than 3" Up to 4" Water Meter 597.42 Greater Than 4" Up to 6" Water Meter 1,194.83 Greater Than 6" Up to 8" Water Meter 1,911.73 Greater Than 8" Up to 10" Water Meter 2,748.12 Greater Than 10" Up to 12" Water Meter 5,137.78 First Locate: Each Additional Locate on Property: $1,000 plus cost of repair of damage Actual cost, including City overhead, labor, materials, and equipment No Charge $170 Large projects requiring several locates will be under a special contract and may require an additional fee. Locate between May 1 and October 31: No Charge Locate between November 1 and April 30: $170 Annual Increase Reference [A] [A] [A] [A] [A] [A] [A] [A] [A] [A] [A] N/A N/A N/A City of Seward Water Rate Tariff 33 Page 8 of 10 Exhibit 2 City of Seward, Alaska Water Svstem Special Rates, Charges, and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 10. Security Deposit: 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. Metered Customers Two (2) months fixed charges for Unmetered Customers multiplied by afactor ofthree (3) Weekly Fire Hydrant Usage Deposit: $300; customer is N/A responsible for repairs to damage 11. Contractor Work: 12. Ship Water (Water furnished to temporarily moored vessels): 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. 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. City of Seward Water Rate Tariff 34 Page 9 of 10 Exhibit 2 City of Seward, Alaska Water Svstem Special Rates, Charges, and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 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 35 Page 10 of 10 City of Seward, Alaska Tariff for Sewer Rates, Charges, and Fees 2021 to 2025 1. DEFINITIONS Equivalent Residential Unit (ERU): A unit of measure used to express the amount of sewer flow by a typical full-time single family residence. All unmetered sewer customers shall be assigned a minimum of one (1) ERU. Living Unit: A unit that has — or has 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. 2. UNMETERED CUSTOMERS Customers eligible to be unmetered include: • Single-family residential customers; and • Duplexes, apartments, bed and breakfasts, and townhouses with no more than two (2) living units. All customers not in the above classifications must be metered. Hotels, motels, and similar transient accommodations are considered commercial establishments and must be metered. Residential and commercial customers that have a heat pump system using City water must be metered. All new construction must be metered at the customer's cost. All new meter installations must be inspected, approved, and documented by the City water department. Customers required to be metered but are currently unmetered can take advantage of a cost savings program offered by the City. Reference the City's "Tariff for Water Rates, Charges, and Fees 2021 to 2025" for the terms and conditions of this program. Prior to switching to metered service, unmetered customers required to be metered will be charged per ERU in accordance with the ERU determination methodology in effect prior to the adoption of this tariff and the rates per ERU in Exhibit 1. The accounts may be paid by individual occupants or owners of multiple units. When the entire sewer service to a multiplex or apartment building with two (2) living units is billed to one account, the charge will be based on total number of living units in the building whether or not occupied. The multi -year schedule of rates for unmetered customers is in Exhibit 1. All unmetered customers not required to be metered by the City may elect to install water meters at their own expense, after which the customers will be charged metered rates. When City of Seward Sewer Rate Tariff Page 1 of 10 36 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. 3. METERED CUSTOMERS Sewer customers with metered service shall be charged based upon the quantity of metered water, except that those customers having a sewer meter shall be charged for the quantity of sewage actually metered. Meters must include readouts at a location acceptable to the City to allow for accurate meter readings. Remote readers are required. If a customer has multiple metered services, each metered service will be computed as a separate bill. 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. Customers are responsible for changing any batteries required for the meter and meter reader to work properly. Failure to repair or replace a faulty meter or to address a meter operating deficiency will result in the billing department estimating the meter reading. If the customer fails to replace a faulty meter or address a meter operating deficiency within 90 days of being informed of the need to address the issue, the City may, at its expense, replace the meter or address the operating deficiency and charge the customer as a work order, at double the costs incurred by the City, to encourage customers to repair, replace, and maintain their own equipment. In all cases, the City will specify and/or approve the type of meter and its installation. If a customer is required by the City to switch from unmetered to metered service, the customer may be eligible to receive a reimbursement from the City for the meter and installation costs. The amount of the reimbursement is in accordance with the parameters established in the "Unmetered Customers" section of this rate tariff. The multi -year schedule of rates for metered customers is in Exhibit 1. Special rates, charges, and fees include charges for service not included in the rates for unmetered and metered customers covered in previous sections of this tariff and in Exhibit 1. The special rates, charges, and fees are in Exhibit 2. 5. 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 City of Seward Sewer Rate Tariff Page 2 of 10 37 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. 6. 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 4 of 10) Exhibit 2: Sewer System Special Rates, Charges, and Fees (Starts on Page 5 of 10) City of Seward Sewer Rate Tariff Page 3 of 10 38 Exhibit 1 City of Seward, Alaska Schedule of Monthly Sewer Rates Effective Effective Effective Effective Effective Annual Increase Line As Soon January 15, January 15, January 15, January 15, Reference No. Description As Practical 2022 2023 2024 2025 After 2025 UNMETERED CUSTOMERS [*1 1 Monthly Charge Per Living Unit $ 67.46 $ 70.16 $ 72.97 $ 75.89 $ 78.92 [A] Base Infrastructure Charge: 2 1" Water Meter or Smaller 3 Greater Than 1" Up to 1.5" Water Meter 4 Greater Than 1. 5" Up to 2" Water Meter 5 Greater Than 2" Up to 3" Water Meter 6 Greater Than 3" Up to 4" Water Meter 7 Greater Than 4" Up to 6" Water Meter 8 Greater Than 6" Up to 8" Water Meter 9 Greater Than 8" Up to 10" Water Meter 10 Greater Than 10" Up to 12" Water Meter Charge for Consumption Per 1,000 Gallons $ 56.22 $ 58.47 $ 60.81 $ 63.24 $ 65.77 [A] 112.43 116.93 121.62 126.48 131.53 [A] 179.89 187.09 194.59 202.37 210.45 [A] 337.30 350.80 364.85 379.45 394.60 [A] 562.17 584.67 608.08 632.42 657.67 [A] 1,124.33 1,169.33 1,216.17 1,264.83 1,315.33 [A] 1,798.93 1,870.93 1,945.87 2,023.73 2,104.53 [A] 2,585.97 2,689.47 2,797.18 2,909.12 3,025.27 [A] 4,834.63 5,028.13 5,229.52 5,438.78 5,655.93 [A] 11 All Gallons $ 6.77 $ 7.04 $ 7.32 $ 7.61 $ 7.92 [A] [*] Any unmetered customers that are required by the City to be metered 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 the adoption of this tariff. Effective Effective Effective Effective Effective As Soon January 15, January 15, January 15, January 15, As Practical 2022 2023 2024 2025 Rate Per ERU for Unmetered Customers Required to Be Metered By the City But Not Yet Switched Over to Metered Service $ 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 15th 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. 39 City of Seward Sewer Rate Tariff Page 4 of 10 Exhibit 2 City of Seward, Alaska Sewer System Special Rates, Charees, and Fees Line No. Annual Effective Increase As Soon As Practical Reference 1. Users generating sewage with a BOD and SS loading in excess of 250 Specified rate in rate tables times a factor of the actual BOD and SS mg/liter upon a determination by the Public Works Director or his/her loading (in mg/liter) divided by 250 mg/liter, plus the cost of testing designee that the 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"] 2. Tank Truck Operators: Fresh sewage from portable or chemical toilets (provided the Public Works Director or his/her designee 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 sheet of all discharges and submit the log sheet with payment monthly. 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 Vehicle - Wastewater Dump Site Use Per thousand gallons: $65.48 N/A Included in daily RV, N/A camper, or trailer permit fee City of Seward Sewer Rate Tariff 40 Page 5 of 10 Exhibit 2 City of Seward, Alaska Sewer System Special Rates, Charees, and Fees Line Effective No. Description As Soon As Practical Public and Private Campground Operators - Charges to Collect and Per day per RV, camper, or trailer Submit to City for Sewer Service: permit, not including tent campers $1.50 [Operators must maintain sufficient records to compute a monthly payment, and such records shall be made available to the City upon request.] 4. Ship's Sewage: 5. Sewer Service Inspection Fee (Performed by City): 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: Cruise ship sewage is not accepted by the City. Sewage from other vessels is not accepted without special permission from the Public Works Director or his/her designee. Any accepted sewage shall be billed at the effective metered customer rates or other applicable rates as determined by the Public Works Director or his/her designee. $150 2021 Monthly Rates Unmetered Residental Per Living Unit $56.22 Unmetered Nonresidential Per ERU 56.22 1" Water Meter or Smaller 56.22 Greater Than 1" Up to 1.5" Water Meter 112.43 Greater Than 1.5" Up to 2" Water Meter 179.89 Greater Than 2" Up to 3" Water Meter 337.30 Greater Than 3" Up to 4" Water Meter 562.17 Greater Than 4" Up to 6" Water Meter 1,124.33 Greater Than 6" Up to 8" Water Meter 1,798.93 Greater Than 8" Up to 10" Water Meter 2,585.97 Greater Than 10" Up to 12" Water Meter 4,834.63 Annual Increase Reference N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A City of Seward Sewer Rate Tariff 41 Page 6 of 10 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.) 2022 Monthly Rates Unmetered Residental Per Living Unit $58.47 N/A Unmetered Nonresidential Per ERU 58.47 N/A 1" Water Meter or Smaller 58.47 N/A Greater Than 1" Up to 1.5" Water Meter 116.93 N/A Greater Than 1.5" Up to 2" Water Meter 187.09 N/A Greater Than 2" Up to 3" Water Meter 350.80 N/A Greater Than 3" Up to 4" Water Meter 584.67 N/A Greater Than 4" Up to 6" Water Meter 1,169.33 N/A Greater Than 6" Up to 8" Water Meter 1,870.93 N/A Greater Than 8" Up to 10" Water Meter 2,689.47 N/A Greater Than 10" Up to 12" Water Meter 5,028.13 N/A Infrastructure Charges for Inactive Accounts: (cont.) 2023 Monthly Rates Unmetered Residental Per Living Unit $60.81 N/A Unmetered Nonresidential Per ERU 60.81 N/A 1" Water Meter or Smaller 60.81 N/A Greater Than 1" Up to 1.5" Water Meter 121.62 N/A Greater Than 1.5" Up to 2" Water Meter 194.59 N/A Greater Than 2" Up to 3" Water Meter 364.85 N/A Greater Than 3" Up to 4" Water Meter 608.08 N/A Greater Than 4" Up to 6" Water Meter 1,216.17 N/A Greater Than 6" Up to 8" Water Meter 1,945.87 N/A Greater Than 8" Up to 10" Water Meter 2,797.18 N/A Greater Than 10" Up to 12" Water Meter 5,229.52 N/A City of Seward Sewer Rate Tariff 42 Page 7 of 10 Line No. 7 Exhibit 2 City of Seward, Alaska Sewer System Special Rates, Charees, and Fees Infrastructure Charges for Inactive Accounts: (cont.) Infrastructure Charges for Inactive Accounts: (cont.) Unauthorized Connection or Discharge into the City Sewer System: Annual Effective Increase As Soon As Practical Reference 2024 Monthly Rates Unmetered Residental Per Living Unit $63.24 N/A Unmetered Nonresidential Per ERU 63.24 N/A 1" Water Meter or Smaller 63.24 N/A Greater Than 1" Up to 1.5" Water Meter 126.48 N/A Greater Than 1.5" Up to 2" Water Meter 202.37 N/A Greater Than 2" Up to 3" Water Meter 379.45 N/A Greater Than 3" Up to 4" Water Meter 632.42 N/A Greater Than 4" Up to 6" Water Meter 1,264.83 N/A Greater Than 6" Up to 8" Water Meter 2,023.73 N/A Greater Than 8" Up to 10" Water Meter 2,909.12 N/A Greater Than 10" Up to 12" Water Meter 5,438.78 N/A 2025 Monthly Rates Unmetered Residental Per Living Unit $65.77 [A] Unmetered Nonresidential Per ERU 65.77 [A] 1" Water Meter or Smaller 65.77 [A] Greater Than 1" Up to 1.5" Water Meter 131.53 [A] Greater Than 1.5" Up to 2" Water Meter 210.45 [A] Greater Than 2" Up to 3" Water Meter 394.60 [A] Greater Than 3" Up to 4" Water Meter 657.67 [A] Greater Than 4" Up to 6" Water Meter 1,315.33 [A] Greater Than 6" Up to 8" Water Meter 2,104.53 [A] Greater Than 8" Up to 10" Water Meter 3,025.27 [A] Greater Than 10" Up to 12" Water Meter 5,655.93 [A] 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 City of Seward Sewer Rate Tariff 43 Page 8 of 10 Exhibit 2 City of Seward, Alaska Sewer System Special Rates, Charees, and Fees Line No. 8. Restoration of Sewer Service and Repair of Damage by Owner or Contractor to City Facilities: 9. Locate Sewer Main: 10. Security Deposit: Unmetered Customers Metered Customers 11. Contractor Work: 12. Sewage Meter: Annual Effective Increase As Soon As Practical Reference Actual cost, including city overhead, administration, labor, materials and equipment 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. 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. Two (2) months fixed charges for Unmetered Customers multiplied by a factor of three (3) Any contractor tapping into a city sewer main, or otherwise working N/A on 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. 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. City of Seward Sewer Rate Tariff 44 Page 9 of 10 Exhibit 2 City of Seward, Alaska Sewer System Special Rates, Charees, and Fees Annual Line Effective Increase No. Description As Soon As Practical Reference 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 45 Page 10 of 10