The URL can be used to link to this page

Home My WebLink AboutRES2026-004 Utility Accounting and Rate Specialists LLC - Electric Rate StudySponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH UTILITY ACCOUNTING AND RATE SPECIALISTS, LLC FOR AN ELECTRIC RATE STUDY AND ACCOUNTING SUPPORT SERVICES RELATED TO THE IMPLEMENTATION OF PROFESSIONAL COMPUTER SYSTEMS SOFTWARE FOR THE SEWARD ELECTRIC UTILITY, IN THE AMOUNT OF $64,032 AND APPROPRIATING FUNDS WHEREAS, the City of Seward Electric Utility is committed to providing reliable, affordable, and equitable electric service to its customers while maintaining long-term financial stability; and WHEREAS, periodic electric rate studies are an industry's best practice and are necessary to ensure rates are fair, equitable, cost -based, and properly aligned among customer classes based on cost -of -service principles; and WHEREAS, Utility Accounting and Rate Specialists, LLC (UARS) has submitted a proposal to perform a comprehensive electric rate study evaluating revenue requirements, cost -of -service allocations, and rate design alternatives, including analysis of a proposed electric heat pump rate and other emerging tariff considerations, for a total cost of $20,600; and WHEREAS, the City of Seward Electric Utility is concurrently transitioning its financial and operational systems from AccuFund to the Professional Computer Systems (PCS) enterprise software platform to streamline accounting processes, improve financial reporting, and align with the RUS Uniform System of Accounts; and WHEREAS, UARS has also proposed to provide specialized accounting and implementation support services during the PCS transition, including project initiation and planning, chart of accounts design and mapping, general ledger and financial reporting setup, accounts payable, purchasing and inventory configuration, work order and construction accounting, fixed assets and depreciation setup, payroll and labor integration, and parallel testing between AccuFund and PCS, for a total cost of $37,520; and WHEREAS, these two projects are interrelated and complementary, as accurate financial accounting, cost allocation, and work order tracking are foundational to developing fair, defensible, and transparent electric rates; and WHEREAS, the combined services will support improved financial controls, increased operational efficiency, enhanced transparency, and long-term rate stability, with the stated goal of CITY OF SEWARD, ALASKA RESOLUTION 2026-004 Page 2 of 2 reducing costs and minimizing future rate impacts to customers through improved efficiency and data accuracy; and WHEREAS, staff recommend including a 10% contingency to address any additional services or unforeseen needs that may arise during the rate study or PCS implementation process. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to enter into a professional services agreement with Utility Accounting and Rate Specialists, LLC, to perform an electric rate study in the amount of $20,600, and accounting and implementation support services for the PCS software transition in the amount of $37,520. Section 2. The City Council further authorizes a 10% contingency for these services, for a total authorized expenditure not to exceed $64,032. Section 3. Funding in the amount of $64,032 is hereby appropriated in the Electric Enterprise Fund Reserve Account 15000-0000-3400 to the 15000-3001-7009 Contracted Services Expense Account. Section 4. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 12TH DAY OF JANUARY 2026. AYES: NOES: ABSENT: ABSTAIN: ATTEST: 42t14-Alinl Qy rt- Sue McClure, Mayor Crites, Draper, Calhoon, Barnwell, Warner, Osenga, McClure None None None G2� Kris Peck City Clerk City Council Agenda Statement Meeting Date: January 12, 2026 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Operations Supervisor Subject: Resolution 2025-004: Authorizing the City Manager to Enter into a Professional Services Agreement with Utility Accounting and Rate Specialists, LLC for an Electric Rate Study and Accounting Support Services Related to the Implementation of Professional Computer Systems Software for the Seward Electric Utility, in the Amount of $64,032 and Appropriating Funds Background and justification: The Seward Electric Utility is undertaking two coordinated initiatives to strengthen its financial foundation and ensure long-term affordability for customers. The first is a comprehensive electric rate study to evaluate revenue requirements, cost -of -service allocations, and rate design to ensure rates are fair and equitable among customer classes. This study will also analyze the potential impacts of introducing a dedicated electric heat pump rate to support beneficial electrification without shifting costs unfairly to other customers. The second initiative is the transition to the Professional Computer Systems (PCS) enterprise software platform. This transition modernizes the Utility's accounting, work order, fixed asset, and reporting systems and aligns them with the RUS Uniform System of Accounts. Specialized accounting support from Utility Accounting and Rate Specialists will ensure accurate system configuration, data migration, testing, and internal controls, reduce long-term administrative burden and improving financial transparency. Together, these efforts will streamline operations, improve cost tracking, enhance rate accuracy, and support the City's goal of reducing costs and stabilizing or lowering electric rates over time. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: $ 64,032.00 This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: $ 64,032.00 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15000 3001 7009 0000 00000 x x Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Yes x Electric Water Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Review Administration Recommendation Adopt Resolution Other: