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HomeMy WebLinkAboutRes2013-078 Sponsored by: Hunt L CITY OF SEWARD, ALASKA RESOLUTION 2013-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING AND CORRECTING THE 2013 OPERATING BUDGET FOR THE SMALL BOAT HARBOR TO ACCOUNT FOR INCREASED ELECTRICAL COSTS DUE TO HARBOR EXPANSION WHEREAS,during the past seven years the Seward Small Boat Harbor has expanded to the south and to the east; and WHEREAS,the addition of new moorage slips has also significantly increased the harbor's electrical power purchases; and WHEREAS,the harbor's power purchases are reimbursed by customer electrical purchases; and WHEREAS,the 2013 budget requires an adjustment in order to fully account for projected power purchases by the Small Boat Harbor. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. An additional amount of$106,000 from Harbor Reserves account no. 401-000- 3050 be transferred to the Harbor Electrical Power for Resale Account no. 401-4200-5320, to account for the cumulative effect of two years:additional 2012($26,000)and 2013 ($80,000)power costs. Section 2. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of October 2013. CITY OF SEWARD, ALASKA RESOLUTION 2013-078 THE CITY OF SEWARD, ALASKA Dav eawar , yor AYES: Valdatta, Bardarson, Keil, Casagranda, Terry NOES: None ABSENT: Shafer ABSTAIN: Seaward ATTEST: Johanna Kinney, CMC i ity Clerk (City Seal) • 4 e RPoF •• +�•. • I SEAL ••. �. i•{°�° owl Agenda Statement A 431* II. Meeting Date: October 14, 2013 To: City Council 414-1(s0" Through: City Manager Jim Hunt From: Harbormaster Mack Funk Agenda Item: Harbor Budget Adjustment for Electrical BACKGROUND & JUSTIFICATION: In August 2013,the Finance Department discovered the fact that the electrical usage at Z Float had been estimated for the past two years(see attachment). Apparently,the electric meter was locked up inside a cabinet and the meter reader estimated the usage. The result was a bill on August 17 in the amount of$51,543.67. The mistake was factored in to the 2014-2015 Harbor budget proposal,but it will also be necessary to adjust the 2013 budget appropriations. The Harbor Electrical budget appears to have been significantly underfunded: Power for Resale Expense Account no. 401-4200-5320 Year Budget Actual 2011 $176,400 $192,946 2012 $190,000 $243,731 2013 $196,000 $276,000 est. The harbor has significantly expanded the number of slips over the past few years, with the south harbor expansion and the addition of Z float. In fact, Z float was completed just at the time of the last City biennial budget for 2012-2013. For that reason, it was difficult to project the amount of usage and particularly how much electricity would be consumed. Z float is used by tugs and work boats that consume large amounts of electricity. It is requested that an additional amount of$106,000 from Harbor Reserves account no. 401-000- 3050 be transferred to the Harbor Electrical Power for Resale Account no. 401-4200-5320, to account for the cumulative effect of two years: additional 2012($26,000)and 2013 ($80,000)power costs. INTENT: The intent is to correct the Harbor electrical budget appropriation for 2013 to account for both 2012 and 2013. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: With the discovery of the billing error on Z float a budget adjustment is required. The proposed 2014 and 2015 budgets include the expected costs, but the 2013 budget needs to be adjusted to account for cost overruns for both 2012 and 2013. Approved by Finance Department: /ak(0 ATTORNEY REVIEW: Yes No X RECOMMENDATION: 0‘1t3 Council approve Resolution 2013- correcting the 2013 Harbor budget.