HomeMy WebLinkAboutRes2007-123Sponsored by: Oates
CI'T'Y OF tiF;~~`:1RD, AL:15KA
NESOLI?'I'ION 2007-123
A RESOLUTIO' i OF TIIF: CITY' COUNCIL. ON"TIIF C'I'TY OF SEW:IRI),
ALASKA, AI.1E)\UING THE SE~Y'EK TARIFF TO t'VCRF.ASE ALL,
StiWF.Ii "l':YRTFF C;tiAItGFti BY 5°1n, k;k'FECTI\'E,IAIKGAItY I, 2t1U8
N'IIEREAS, the moat r+:c:ent adyustment to sewer rates reflected a 15^/^ incccase effective
January 1.2005, with the prior adjustment reflecting a 5^/^ increase effective .ianuary I, 2004;
and
WHEREAS, prior to 2004, sewer rates had not been adjusted since 1993, when the most
recent comprehensive study of the City of Seward's utility rates +vas conducted by R.W. Beck:
and
~i`HGRF;AS, the consumer price index has risen more than 32.8°/n since 1993, with rate
increases since 14?i3 totaling 209b, resulting in the inability of the Wastewater Enterprise Fund to
keep pace wish inflation or address deferred maintenance or plant Cspansion needs; and
WHEREAS, in the past Icw years, the ~~'astc+vater F:nicrprise }~und has been unable to
utake even tninar cotttributi~na to the Mafor 144aintenance and Rcplacemcut Fund, or to repay ifs
dcbl service loan to the General Fund to cover the failure of the sewage treatment lagoon, due W
dtc declining financial health of the sewer utility; and
WHEREAS, the administration desires to make an upward adjust nl'S°;^ to all rates in the
sewer tariff iu order t~~ oll'set a portion of the increase in the consumer prier. index, until such
time as a rate study can hr. done to establish the appropriate level of sc~~er tarifS rates.
NO~~' 'I'HERF.FOKE, BF. IT RESOLVED BY TIIF. CI'R' COUNCIL OF' THF.
CITY OF 5I'YY'ARD, AT.ASl::1, that:
fiction I. City of Seward Resolution 2001-LOS is hereby repealed, mid the rates mrd
charees a,itached hereto and incorporated hciein by reference arc. hereby AI?OPTLD.
Section 2. This resulutirnt shall take cl'lerl January 1, 2003.
PAStitiD A*iI) AI'I'ROYF;D by the City Council ol'the ("ity of Seward, Alaska, this
:6th day ofNmcrnber, 2(107.
cl1'~ <~r sE~vAKn, ~~i.~sl:a,
RNaI)I.UT1ON 2007-123
THE CITY Ar SEtiV.4RD, ALASiG1
~~L~~ ~~
Clark Corbrid e, fllayor /
t;
AYL•S: Dunham, Valdatta, Bardarson, Ambcrg, Smith. Kellar, Corbrid~;c
NOES: Nonc
ABSENT: None
.AB57'ATN: None
:1T'I't:S'T
!e- a Lewis, CMC
City Clcrk ~`t~~l'~F S ~~~,
F ~ ~i
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(City Seal) ; V\'G~PP~R'ir' 900.
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Council Agenda Statement
Meeting Date: November 26, 2007
Through: Phillip Oates, Ciry Mmtager ~ '
Front: W.C. Casey, Public Works Director
Agenda Item Amending the Sewer Tariff
B:~CKGROUND & JUSTIFICATION':
hr November 2004, the Seward City Council amended the sewer tariff to reflect a IS% increase in
rates ++ith the passage of Kesolution 2004-105. This increase was necessitated by the continual
chat lengc the sewer department encountered attempting to fund operating expenses, complete major
mainteuancc artd repair projects, fiord capital projects, make loan payrncnts and keep up with the
constant inct'eascs in the CPI (inflation).
The most recent external comprehensive study oftftc Cily of Seward's utility rates was wnducted in
1493 by R.W. Beck. An intcmal study, completed iu 2UU4, indicated the need for an increase ol'the
water and sewer tariff by art amount in [he 35% range. It was recommended by staff in 2004, as a
result of the internal study, that the water tariff rates be adjusted to reflect a 35% increase surd
incrementally continue to adjust the sewcs tariff rates, startingwith a 15% increase. It was the intent
of stalTin 2UU4, to continue to adjust sewer rates in the future in a manner that would be fair to the
consumers acrd yet enable the sewer fund to get financially stable. Sudden, large incrc;ases seemed to
be a less desirable method of keeping the sewer and wafer tariff rates appropriately adjusted. Ist
addition, since the 1 J)3 rate study was conducted, the consumer price index has increased by 32.8Yr°,
while rates have been increase) only 20"/° (by 5°io eftectivc 1/1/O5, and by IS% effective 1 it i0G).
It is the desire of staff to adjust the sewer tariff rate upward by 5% begitutinf; January 1, 2008. This
adjustment would be consistent with the elTorts started in 2004, to slowly make adjustments iA the
water and sewer tariff rates, to keep these fwtds operating in a healthy mamter. 5uflicicnt funds to
operate the wastewater system, maintain & repair current utfrastructure and finance capital projects,
without adversely impacting our customers is out desire.
CONSI9TF:NCY Cli<ECF:LIST: Where applicable, this resolution/ordinance is consistent with
the Seward City Code, Charter, Comprehensive Plants, Land Usc Plans, Strategic Plan and City
Council Rules of Procedures.
Other:
FISCAL NOTE:
The 5°rn increase ut sewer tariff rates has been factored into the 2008 Operating Budget
Approved by Finance Departntcnt; v Z(n_ s~'~11~r1--,~~
~.
F1ECU~1A9k~NDATION
Gouncii approves Resolution ZUU7-/.~, authorizing an increase of 5°/n in the scwa tarilTrates
Sewer Rates and Charges
Rates for ~ewcr b}' Class al' Serti'icc
GROUP A - RF.SIDF.IVTIAL
r Gmup A includes all residential Custonturs living in single lamily or multiple family living units. Multiple
(amity units includes multi-plexes, apartments and townlrousCS, but excludes hotels, motels and similar transient
ACCOnliI1lXtat40R5.
GROI!P 13 - S>\IALL GF.NER.A1. SF:RVICF
Group l3 insludcs commercial enterprises where the use olllater is incidental to the conuncrcial activity and i5
primarily limited to dumesiic and janitorial use. This class of service includes such businesses as hotels, mt~tels,
professional office huiltlings, hatber shops, u~arehouscs, libraries, public offices. churches anti theaters, etc.
GROUP C - LARC:1: CENIERAL SERVICE
Group C includes commercial cnterrrziscs tvfieu w ater usage is greater than in Sttta44 Genera4 services
attd or water is used for food preparation or other activities, but not for industrial processing.
CROUP D - D7I:TERIrD COAiItiERCG1L S [:yDUSTRIAL SERVICE
Group D includes comntcrcial and industrial enterprises where water usage is greater than for smell
wsintsses and/or water is used Cur food l!rcparation, other activities and industrial processing as well as
~cneial domestic users.
.._=
BASIti FOI21•IO,\'THL1' FEES AND C'HARCES
GROUPS A - D
*rUti-11E1'1/RED Sic:RVjCk:S
Nun-ntetcred sewer users in Groups .-~, B and C' shall be e;harged at the rate of 54.11 per ERli per
month, not including tax, whon the water sort ice and sewer service serve the same activities. If the
activities seniced by tfie sewer sesl'ices arr different than those ses~-cd by water, a water c4targe. sk1a44 be
computed based on the activitcs staved b}' the sewer, and the solver rate shall be L2 times the contputrd
water charge
A1F."fERED SEK~'1CES
C;scrs with metered see ice (Croup lll shall be charged l'or sewer service. according lu the rates
listed heloly. The charge sha11 l+~ based upon the quantity of metered water, except that those users having
a sewer teeter sital4 be chargc~t tilt the. <yu:uuity nCsewafc actualh~ ntetcred, l Ito quantity of•sewage will
he adjusted if a significant amount of waste water is not dic;dtarged into the city sewer system
City of Seward Sc+,: r 1 aritT- Rvrrs.~i i i i i; i1 ' Page 4- I
niinimuni Charge fur t:aeh 1\lelercd Service
Service Sic ~'tinimum Monthl Char e
314" - I" water ervice $36.77
1-l %'~" - 2" water scn•icc $GO.R6
2-U4" - 4" water service 5153.42
c.hrr -1" ~catcr service
~- -~~ $767.07
Charge for Consumption
Gallons of Sewa c Dischar cd er ~lunth Char c er 1,000 Gallons
Grou s r~, B Rc C Grou ll
First 10,000 Gallons $5.39 $ii.G7
Next 40,000 C;allons $4.32 $G.94
Next 50,000 Gallons $3.59 $5.79
Next 100 000 Gallons $3.23 $5.22
Next SUU,000 Gallons S1.59 $3.3G
A'cxt .400,(H)U Gallons S 1.S9 S3.36
All Additional Gallons $1.59 $3.3G
rRUUI' F. - S['L;CIAL, R.4"LI;S AND FFFS
Group L includes charges for other categories oP service not included in Groups A through D.
City of Seward Sewer Tariff- Re~hsed 11/13/07 Page 4-2
[iscrs generatist~ sew'a~e with a IiOD and
SS IoadinX in escrss of nr~/} (upon a deter-
mination by the utility manaycr that the
eot~centsatiun ar~d chasacterictus of the
sewage will not cause a detrimental effect
upon the server system andr'or treatment
plan( [13nj) - IJ3ioM,~~irul O:ct~en
Denraudtl~ rnu1.S.S - AJuspended b'oli~fc•~l
Tank'Cruck Oprralors: Fresh sewage, ur
waste front pottaTilc or chemical toilets,
provided the utility manager determines the
waste will not be detrimental to the sewer
ay5tem ami or tieattttcnt plans.
1\OTE:
ft is prvhiUitrd tv dischazge into the city-s
sewer system, septic lank waste ur any wade
containing t~~.eic or othci materials that could
cause the cite-s discharge to violate the
tPA or T)Fl_ discharge permit.
Specifted rate ist rate tables times a (actor of the
actual D(ST) arrd SS loading divided by 250, plus
the cuss of testing
}'er thousand ~alivns: S~ii.84
t'itvoSScWa'atd5ev~~er'Tanff-Raw,.wd t}113,t17 Pagc4•i
3, Recreational Vehicles: Individual KV
owners utilizine city-owned or approved
dump sites
PuUlic and private cantpgruund operators
~ Uperators mast mabttuin su~cient records
to crnnpute a mnnthlt• payment, and srrcG
recro•ds shall he made uvailahle to the city
rrpnrr reyuest.J
4, Ship-s Sewage:
1. Se»•er Service Lbnnectlon Fee:
6. Sewer Srrvicc Inspection Fee: This fee
shaft he charged for services instalicd tty
anyone odter than the city.
7. Unauthorized Connection or Discharge
into the City Sewer System:
YLliS State and.tor tedcral penalties & charges
levied against Ylte city or individualh.
Restoration of Sewer Service
and Repair of llamage by Owner or
Contractor to Cifv f•'acitities:
9. Locate Service:
lU. Security Deposit: if a water security
deposit was paid, no additional deposit
will he required. If no ~~'ater deposit was
paid, the follotvinK deposits will be
charged.
No fee
$0.70 per day Per RV, camper or trailer permit,
not including tent campers.
lot accepted
Installed at property ownc;r=s expense. Any
work performed by the city will he charged at
total cost, including labor, overhead, administra
tioa, materials attd equiptttcni.
$190.1c)
I'er Occurrence 5633.94
PL['S Cust of repair, restoration or cleanup by
city
:actual cost, including city overhead, adminis-
tration, labor, materials and equipment
First Locatc:No Charge
Each Additional Locate: 563.40
Large projects requiring several locates will he
under a special contract and may require a tee.
bomestic: $31.70
(.Single family & duplex)
Commercial: $95.09
1llulti-N'amily: 595.09
_
City ot'Seward Sewer'1'ariff _ Re•rised t !/13/07 Page 4-A
11. Contractor Work: Any contractor tap-
ping into a city sewer main, or otherwise
working on a city sewer main, must be
Ir,. properly licensed to perform the work
and must provide:
l2. Sewage M1leter:
13. Delinquent Account Charges:
...~
,~..
SSOOO.OU Bo--d or equivalent cash guarantee
payable. to [hc city
Computed frurn the quantity of metered water
delivered to the same activity unless a sewage
Hater has been installed. Sewage meters ap-
provcd by the city may be installed at the user=s
expense.
Interest rate: 10.5°/~ per awtum
Munthh• late fee: $>.00
City ul Scwanl Scwcr Tariff - R~•ised 1!/l 3/(l7 Page 4-~