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CITY OF SEWARD, ALASKA
RESOLUTION 2013-098
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE WASTEWATER TARIFF BY UPWARD
ADJUSTING ALL RATES AND FEES BY AN ADDITIONAL 5.2%
EFFECTIVE THE FIRST BILLING CYCLE IN JANUARY 2015
WHEREAS, the most recent external comprehensive study of the City of Seward's
utility rates was conducted sixteen years ago (in 1993) by R.W. Beck, resulting in several
amendments to the city's wastewater tariff; and
WHEREAS, the Wastewater Tariff generally provides for automatic rate and fee
increases effective the first billing cycle of each calendar year, equal to an average of the five
previous published years' consumer price index, all items, 1982-84=100 for all Urban
Consumers, Anchorage, Alaska Area (CPI); and
WHEREAS, because the Wastewater Fund does not generate sufficient revenues to
cover its costs of operations and debt service, and to enable the Fund to address upcoming capital
improvement project needs related to the city's two sewage lagoons, the city will increase rates
by 5.2% in 2015 rather than by the five-year average CPI rate of 2.6%, which increase is in
addition to the rate increase of 5.2% effective in 2014; and
WHEREAS, the City of Seward's enterprise funds are operated in a manner similar to
private business entities, in that they establish charges intended to cover the full cost of providing
services (including direct and indirect costs) including operations and maintenance, overhead,
system expansion, and charges for the use of capital facilities; and
WHEREAS, in order to qualify for low-interest loans and bond financing for capital
infrastructure, the city must be able to demonstrate the adequacy of utility rates as well as the
financial capacity for debt repayment; and
WHEREAS, annual rate adjustments will assist in demonstrating the city's commitment
to maintaining a financially sound utility, and will serve to mitigate potential `rate shock'
associated with infrequent rate hikes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The rates, fees, and charges incorporated herein by reference and attached
hereto as '`Sewer Rates and Charges — 2015" are effective January 1, 2015, and are hereby
ADOPTED.
CITY OF SEWARD, ALASKA
RESOLUTION 2013-098
Section 2. All previous Resolutions in conflict herewith are hereby repealed effective
December 31, 2013.
Section 3. This resolution shall take effect ten days following approval.
PASSED AND APPROVED by the City Council of the City of Seward. Alaska, this
12 ' day of November, 2013.
THE CITY OF SEWARD, ALASKA
Pean-1,a4A) JaikAidflAjj- 41/
Bardarson, Mayor
AYES: Keil, Shafer, Terry, Bardarson
NOES: Casagranda, Squires
ABSENT: None
ABSTAIN: None
VACANT: One
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ATTEST:
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.1 hanna hanna Kinrrery. CMC
ity Clerk
(City Seal)
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Sewer Rates and Charges - 20154
Rates for Sewer by Class of Service
ANNUAL RATE ADJUSTMENT: The rates and fees herein provided are adjusted 5.2%beginning the first billing
cycle of the 20154 calendar year. The rates thereafter will be adjusted annually beginning the first billing of each
calendar year to reflect an average of the five previous published years' annual increase in the Consumer Price Index,
All Items, 1982-84=100 for all Urban Consumers,Anchorage,Alaska Area("CPI")as published by the United States
Department of Labor, Bureau of Labor Statistics. (For example, 20143 rates reflect an increase based on the average
CPI for 20076-20110.)
GROUP A-RESIDENTIAL
Group A includes all residential customers living in single family or multiple family living units. Multiple
family units include multi-plexes, apartments and townhouses, but excludes hotels, motels and similar transient
accommodations.
GROUP B - SMALL GENERAL SERVICE
Group B includes commercial enterprises where the use of water is incidental to the commercial activity and is
primarily limited to domestic and janitorial use. This class of service includes such businesses as hotels, motels,
professional office buildings, barber shops, warehouses, libraries,public offices, churches and theaters, etc.
GROUP C - LARGE GENERAL SERVICE
Group C includes commercial enterprises where water usage is greater than in Small General services and/or
water is used for food preparation or other activities, but not for industrial processing.
GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE
Group D includes commercial and industrial enterprises where water usage is greater than for small businesses
and/or water is used for food preparation, other activities and industrial processing as well as general domestic users.
BASIS FOR MONTHLY FEES AND CHARGES
GROUPS A - D
NON-METERED SERVICES
Non-metered sewer users in Groups A,B and C shall be charged at the rate of$59.0456.12_per ERU per
month, not including tax, when the water service and sewer service serve the same activities. If the activities
serviced by the sewer services are different than those served by the water service, a water charge shall be
computed based on the activities served by the sewer. The sewer rate shall then be computed at 1.2 times the
established water charge.
City of Seward Sewer Tariff-Revised 11/12/2013, Effective January 1, 2015-1 Page 4-1
METERED SERVICES
Users with metered service (Group D) shall be charged for sewer service according to the rates listed below.
The charge shall be based upon the quantity of metered water, except that those users having a sewer meter shall
be charged for the quantity of sewage actually metered. The quantity of sewage will be adjusted if a significant
amount of wastewater is not discharged into the city sewer system.
Minimum Charge for Each Metered Service
Service Size Minimum Monthly Charge
3/4" - 1" water service $50.3747-.
1-1/2" - 2" water service $83.3579.23
2-1/4" - 4" water service $210.13199.71
Over 4" water service $1.050.60998.67
Charge for Consumption
Gallons of Sewage Discharged per Month Charge per 1,000 Gallons
Groups A, B & C Group D
First 10,000 Gallons $7.41:7704 $11.8811.29
Next 40,000 Gallons $5.925.63 $9.519.01
Next 50,000 Gallons $4,911.67 $7.937.51
Next 100,000 Gallons $4.434:24_ $7.16€,84
Next 500,000 Gallons $2.1_92:0,8 $4.611.38
Next 500,000 Gallons $2.1910,8 $4.6143-8
All Additional Gallons $2.192.0+ $4.614:3.8
GROUP E - SPECIAL RATES AND FEES
Group E includes charges for other categories of service not included in Groups A through D.
I City of Seward Sewer Tariff-Revised 11/12/2013, Effective January 1, 20154 Page 4-2
1. Users generating sewage with a BOD and Specified rate in rate tables times a factor of the
SS loading in excess of mg/1 (upon a deter- actual BOD and SS loading divided by 250, plus
mination by the utility manager that the the cost of testing
concentration and characteristics of the
sewage will not cause a detrimental effect
upon the sewer system and/or treatment
plant[BOD = ABiological Oxygen
Demand@ and SS = ASuspended Solids @]
12. Tank Truck Operators: Fresh sewage, or Per thousand gallons: $57.315,1.,18
waste from portable or chemical toilets,
provided the utility manager determines the
waste will not be detrimental to the sewer
system and/or treatment plant.
NOTE:
It is prohibited 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 Vehicles: Individual RV No fee
owners utilizing city-owned or approved
dump sites
$0.9892 per day Per RV, camper or trailer permit,
Public and private campground operators not including tent campers.
[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: Not accepted
5. Sewer Service Connection Fee: Installed at property owner=s expense. Any work
performed by the city will be charged at total cost,
including labor, overhead, administration, materials
and equipment PLUS a$138.3413-1 connection
fee.
6. Sewer Service Inspection Fee: This fee
shall be charged for services installed by $110.67105.20
anyone other than the city.
7. Unauthorized Connection or Discharge
into the City Sewer System: Per Occurrence $868.27825.35
PLUS Cost of repair, restoration or cleanup by city
I City of Seward Sewer Tariff-Revised 11/12/2013, Effective January 1, 201,514 Page 4-3
PLUS State and/or federal penalties & charges Actual cost, including city overhead, adminis-
levied against the city or individual8. tration, labor, materials and equipment
Restoration of Sewer Service and
Repair of Damage by Owner or Contrac-
tor to City Facilities:
9. Locate Sewer Main: First Locate: No Charge
Each Additional Locate: $86.8282.53
Large projects requiring several locates will be
under a special contract and may require a fee.
110. Security Deposit: If a water security deposit Domestic: $43.4 1 11.26
was paid, no additional deposit will be (Single family& duplex)
required. If no water deposit was paid, the Commercial: $130.23 X3.79
following deposits will be charged. Multi-Family: $130.23123.79
11. Contractor Work: Any contractor tapping $5000.00 Bond or equivalent cash guarantee
into a city sewer main, or otherwise working payable to the city
on a city sewer main, must be properly
licensed to perform the work and must
provide:
12. Sewage Meter: 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.
13. Delinquent Account Charges: Interest rate: 10.5% per annum
Monthly late fee: $6.476x.1-5
City of Seward Sewer Tariff-Revised 11/12/2013, Effective January 1, 20154 Page 4-4