HomeMy WebLinkAboutRes2021-055 CITY OF SEWARD,ALASKA
RESOLUTION 2021-055 Sponsored by: Regis
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE PORT & HARBOR TARIFF
REGULATIONS TO INCREASE VESSEL STORAGE RATES IN
THE SEWARD MARINE INDUSTRIAL CENTER(SMIC)YARD AS
OF JANUARY 1, 2022.
WHEREAS,The Port&Commerce Advisory Board held a regular board meeting on April
7,2021 and approved Resolution 2021-002 to increase SMIC storage rates; and
WHEREAS,the current SMIC storage rates have not been increased since 2013; and
WHEREAS, the current SMIC storage rates, if increased for inflation alone, would be
$0.17 per foot per day for the first year; and
WHEREAS, the SMIC storage rates currently fall at the lower end of rates for other
comparable Alaska harbors; and
WHEREAS,the SMIC yard has continued to grow and improve since the 2013 rates were
established. It now provides more amenities and attracts new services as well as new customers;
and
WHEREAS, the 330-Ton Travelift has been modified to accommodate wider vessels,
allowing more vessels access to the SMIC yard and services; and
WHEREAS,the cost to maintain and continue improved infrastructure are rising; and
WHEREAS, the recommended rate schedule will deter long-term storage of vessels and
allow space for working vessels for short-term storage and repairs.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is hereby authorized to amend the port & harbor tariff
regulations to increase vessel storage rates in the Seward Marine Industrial Center Yard, as of
January 1, 2022.
Section 2. Rates for vessel storage in the SMIC yard will have the following changes:
• Increase from $0.10 per foot per day to $0.20 per foot per day for the first year (up to 12
months).
CITY OF SEWARD, ALASKA
RESOLUTION 2021-055
• Increase from $0.20 per foot per day to $0.30 per foot per day for the second continuous
year(up to 24 months).
• Increase to $0.40 per foot per day for the third continuous year(up to 36 months).
• Increase to $0.50 per foot per day for the fourth continuous year(up to 48 months).
• Increase and cap at $0.60 per foot per day for anything over 48 continuous months of
storage.
Section 3. This resolution shall take effect on January 1, 2022.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th
day of April, 2021.
T - E O ' ,. •
Christy Terry, M: or
AYES: Osenga, Seese, Baclaan, Casagranda, DeMoss, McClure, Terry
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballou, MMC 9 c ,- i y
City Clerk
(City Seal)
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Agenda Statement
Meeting Date: April 26, 2021 '
To: Norm Regis, Acting City Manager r,
Agenda Item: Amending Seward Marine Industrial Center
vessel storage rates
BACKGROUND & JUSTIFICATION:
The current vessel storage rates in the Seward Marine Industrial Center were established in 2013. In
the years since the last rate adjustment, there have been many improvements in the yard with the
infrastructure and services available.
A recent survey of storage yards in the region showed that SMIC rates are at the very low end of the
price spectrum compared to other facilities. Additionally,it now offers more amenities and services
than many other storage yards in the region.
As SMIC has drawn many new customers and vendors,the demand for space is increasing.Costs for
maintaining the yard and continuing to improve the infrastructure are also increasing.
Increasing SMIC rates was approved by PACAB in Resolution 2021-002 at their April 7, 2021
regular meeting.
INTENT:
To increase vessel storage rates in the SMIC yard to reflect inflation,services available,and storage
rates of similar yards, as well as to discourage long-term storage of vessels.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: 3.5.1.2 Plan for adequate port infrastructure
1. that ivill serve the needs of users in the main industrial/Alaska Railroad area X
and at the Seward Marine Industrial Center(SMIC).
......._.._-._.............. . .............................................................................................................................................................................................................................................................................................. _- ------------------------
2 Strategic Plan:page 7 Expand Development in the Seivard Marine f X 1
f Industrial Center
3. Other:
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FISCAL NOTE:
Based on current storage usage, the SMIC Enterprise Fund can expect to see an estimated increase in
annual storage revenue of$150,000 recorded in Storage Fees account no. 12000-2504-5104. This
rate increase will be factored into the 2022-2023 budget.
Approved by Finance Department: '
ATTORNEY REVIEW: Yes No Not Applicable N/A
RECOMMENDATION: Council approve Resolution 2021-055, adopting the revision to the
2022 Port and Harbor Tariff Regulations.