HomeMy WebLinkAboutRes2021-032 PULLED PULLED FROM AGENDA Sponsored by: Regis
Public Hearing: March 22, 2021
CITY OF SEWARD, ALASKA
RESOLUTION 2021-032
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE WATER AND WASTEWATER TARIFFS TO
INCREASE RATES AND TO TRANSITION TO NEW METER
CLASSIFICATIONS, IN KEEPING WITH THE RATE STUDY
RECOMMENDATIONS PROVIDED BY GOV-RATES, INC., EFFECTIVE
APRIL 15, 2021
WHEREAS,the City of Seward conducted a water and wastewater rate and classification
study in 2020; the last one was done in 1993; and
WHEREAS, the City has experienced significant and steady growth, and changing
consumption patterns, since 1993; and
WHEREAS, a Request for Proposals for a water and wastewater rate and classification
study, including metered and nonmetered customer classes, was issued in May, 2019 and
completed in 2020; and
WHEREAS, Gov-Rates, Inc. was awarded the contract for Professional Services and
conducted the study; and
WHEREAS, the purpose of the water and wastewater classification and rate study is to
determine the operating and maintenance costs associated with critical infrastructure,and to ensure
that the City's rates and classifications reflect and maintain appropriate levels for the overall
stability of the utilities; and
WHEREAS, Gov-Rates, Inc. worked with the Finance and Public Works Departments to
review current and past information on infrastructure and maintenance costs, customer billing
classifications, meter usage, recent tariffs, and included council input; and
WHEREAS, after conducting multiple work sessions with council and the public, Gov-
Rates,along with the Finance and Public Works Departments,completed the rate and classification
study; and
WHEREAS,the Water and Sewer Rate and Classification Study shows the need for some
necessary increases on the tariff rates, as well as classifications changes, including metered
services, for most businesses; and
I E WHEREAS,this resolution recommends updating the water and sewer tariffs,and starting
the new meter transition for business accounts currently billed as ERU, effective April 15, 2021.
CITY OF SEWARD, ALASKA
RESOLUTION 2021-032
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NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The Water and Wastewater Tariffs, including rate changes and meter
classifications, are hereby approved in the substantial form as attached hereto.
Section 2.The tariffs shall be effective on April 15, 2021.
Section 3. All previous resolutions in conflict herewith are hereby repealed.
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22°d
day of March, 2021.
THE CITY OF SEWARD, ALASKA
PULLED FROM AGENDA
Christy Terry, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
Agenda Statement
Meeting Date: March 22, 2021
To: City Council
Through: Norm Regis, Acting City Manager
From: Doug Schoessler, Public Works Director
Agenda Item: Adopting new water and wastewater tariff and classifications
BACKGROUND & ,JUSTIFICATION:
For many years,the City of Seward has needed a new Water and Wastewater rate and classification
study.The Seward City Council directed City Administration to conduct a water and wastewater rate
and classification study and to prepare appropriate tariffs. We have worked diligently over the last
year with Gov-Rates,Inc. to simplify rates and reclassify customers to achieve the fairest,simplest
tariffs possible.
Staff believes we have achieved those objectives and we are confident the changes to meters for
most businesses will also lead to water conservation through user-pay rates.
Gov-Rates, Inc. and the Public Works Department have completed multiple work sessions with
City Council and the public. The Water and Sewer Rate Study shows necessary adjustments on
the tariff rates in order to maintain the overall stability of the utilities. The new tariffs and rate
study packet are attached with this resolution for approval for future rates.
INTENT: The intent of this resolution is to authorize the Acting City Manager to approve water and
wastewater tariffs and update classification reflecting Gov Rates, Inc. water and sewer rate study.
CONSISTENCY CHECKLIST: Yes No N/A
l Comprehensive Plan 3.7.1.3: Continue to conduct rate studies on X
utilities.
2 Strategic Plan Page 10. Create a financial plan for new services and X
infrastructure.
3. Other: 2009 Bird Ent. Study 3b, Shortfall in fund for capital. X
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FISCAL NOTE:
Per Bryan Mantz, the GovRates, Inc. consultant retained for the rate and tariff study,the following
are the estimated revenue increases for the next five years:
Water 2021 (10% rate adjustments) _$76,300 Total Estimated Revenue =$1,221,051
Water 2022 (10%rate adjustments) _$134,700 Total Estimated Revenue= $1,481,995
Water 2023 (10% rate adjustments) _ $148,200 Total Estimated Revenue = $1,630,195
Water 2024 (10% rate adjustments) _ $163,000 Total Estimated Revenue =$1,763,195
Water 2025 (10%rate adjustments) _ $179,300 Total Estimated Revenue= $1,972,495
Sewer 2021 (4% rate adjustments) _ $35,600 Total Estimated Revenue =$1,200,713
Sewer 2022 (4% rate adjustments) _$49,300 Total Estimated Revenue = $1,281,813
Sewer 2023 (4% rate adjustments)_$51,300 Total Estimated Revenue = $1,333,113
Sewer 2024 (4% rate adjustments)_ $53,300 Total Estimated Revenue = $1,386,413
Sewer 2025 (4% rate adjustments) _$55,500 Total Estimated Revenue= $1,441,913
Approved by Finance Department: X
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ATTORNEY REVIEW: Yes. No Not Applicable
RECOMMENDATION:
Approve Resolution 2021-032, adopting new Water and Wastewater Tariff and Classifications
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