HomeMy WebLinkAboutRes2004-106
I
I
I
Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE WATER TARIFF
WHEREAS, the most recent external comprehensive study of the City of Seward's
utility rates was conducted in 1993 by R.W. Beck, resulting in several amendments to the City's
water tariff; and
WHEREAS, since 1993 the only changes to the water tariff have been changes to the rate
charged for ship's water, and an 5% across-the-board increase in all water rates effective January
1,2004; and
WHEREAS, the consumer price index has risen more than 29% since 1993, resulting in
significant added costs of operations and maintenance for the Water Enterprise Fund; and
WHEREAS, in the past few years, the water utility has had difficulty covering the cost of
operations, and has no surplus available to fund crucial infrastructure repairs and upgrades or to
make contributions to the Major Maintenance and Replacement Fund due to its declining
financial health; and
WHEREAS, in 2005, the City of Seward will replace the Third Avenue Water Main in
conjunction with the State of Alaska Department of Transportation's upgrade of Mile 0-8 of the
Seward Highway, and the City's cost ofthe water main project is estimated at $3.5 million with
no available source of funds to pay debt service on this crucial infrastructure project; and
WHEREAS, the Seward City Council approved Resolution 2004-84 on July 26, 2004,
stating its intent to fund the $3.5 million Third Avenue Water Main project, and authorizing a
loan application with the Alaska Drinking Water Fund, and authorizing the acceptance of a loan
offer with payments subject to annual appropriation; and
WHEREAS, the estimated annual payments on a $3.5 million loan over 20 years at 2.5%
interest are $223,232, and a 35% increase in rates will generate approximately $176,000 in
additional revenue per year; and
WHEREAS, the administration desires to make an upward adjustment of 35% to all rates
in the water tariff in order to offset the debt service costs associated with the Third Avenue Water
Main Project, recognizing that this increase does not compensate the utility for increases in the
consumer price index or the failure to adjust rates incrementally over time.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-106
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. City of Seward Resolution 2003-155 is hereby repealed, and the rates and
charges attached hereto and incorporated herein by reference are hereby ADOPTED, to be
effective January 1, 2005.
Section 2. This resolution shall take effect ten days following approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
22nd day of November, 2004.
\
\
THE ,cITY OF SEWARD, ALASKA
' .
/I[ ,/ /)7
//[(L'c u / c
M9Xgar t Branson, Vice Mayor
"'---.-
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, V aldatta, Amberg, Clark, Lorenz, Branson
None
Shafer
None
ATTEST:
Je Lewis
Cit . Clerk ,'1111'",
\" "
...", -{ OF SE:/Ik""
(City Seal~~ cY"'o?PO;;:"'1~ '~
~ ..,~u . ~~" <:) ~
~ :~ -.- 0\ ~
. . . ..-
· C: SRAL : ::
: : -t~ :01.
u . 0 ".
l:. \. -.- :::
<;:~ ) '. Co'.; ,:::
~. 1.1"\ '..(/J1/", ,\"~'V,, "'" ....
.. ..', '., c: 1 ",' '.' ..
~~ ~h,"''',u:'''''' c:~.,.~
" ~ ""~' ".\.~->
"q, '...,,- r" '" 1
.'II'fZ;'~:" ',,'
Water Rates and Charges
Rates for Water by Class of Service
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 exclude hotels, motels and
similar transient accommodations. The accounts may be paid by individual occupants or owners of
multiple units. When the entire water service to a multiplex or apartment building is billed to one account,
the charge will be based on total number of living units in the building whether or not occupied. Living
units are considered to be complete with kitchens, baths and plumbing for laundry units. No adjustment is
made for the size of the unit, numbers of amenities or the size of the family occupying the unit. A 25%
reduction is permitted for units that are not plumbed for laundry units provided a common laundry unit is
not available in the building or apartment complex for apartment occupants. There will be no reduction if a
common laundry facility is available.
BASIS FOR MONTHLY FEE
Category/Description of Unit Charge
Living unit with plumbing for laundry, or common laundry facility
available on premises 1 ERU
Living unit without plumbing for laundry and no common laundry
available for use by the occupant 0.75 ERU
Rental apartment unit not occupied by owner when billed as a
multiple unit of 3 or more apartments served from a single water 0.75 ERU
service. (No credit will be given for unoccupied units.)
Duplex in one building treated as two residences served from a
single water service 2 ERU
Note: ERU = Equivalent Residential Unit (See Page 3-7)
Revised 11/22/04
City of Seward Water Tariff - Page 3-1
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. Where a building, mall or group of facilities is served from a single
service, the bill will be based on the total number of facilities to be served, and no credit will be given for
vacant facilities.
BASIS FOR MONTHLY FEE
Category/Description of Unit Charge
Hotels and motels not including bars and restaurants:
Basic charge per building 1.0 ERU
PLUS each guest room 0.3 ERU
PLUS each pair of public restrooms in excess of one pair 0.3 ERU
Office Building/Mall with offices and retail stores and businesses
not including restaurants, bars, food markets:
Basic charge per building 1.0 ERU
PLUS each office/activity 0.3 ERU
PLUS each pair of public restrooms in excess of one pair 0.3 ERU
Single Office/retail shop/professional activity not in office build-
ing, per each office or activity 1.0 ERU
Barber, beauty, animal grooming shop:
Basic charge 1.0 ERU
PLUS charge per chair/tub 0.75 ERU
Libraries, public offices, professional offices, and similar activities:
Basic charge per building 1.0 ERU
PLUS each office/activity 0.3 ERU
Revised 11/22/04
City of Seward Water Tariff - Page 3-2
PLUS each pair of public restrooms in excess of one pair 0.3 ERU
Doctors' offices, including medical clinics, emergency first aid
station, dentists' offices and similar activities:
Basic charge per facility 1.0 ERU
PLUS per each examination room, dental chair or similar unit 0.5 ERU
PLUS per each office 0.3 ERU
Warehouses:
Basic charge per building 1.0 ERU
PLUS each pair of restrooms or showers exceeding one pair 0.3 ERU
Churches, theaters, assembly halls, clubs, fraternal clubs:
Basic charge per building 1.0 ERU
PLUS each pair of restrooms exceeding one pair 0.3 ERU
PLUS, for food/bar service, add charge for restaurant or bar
Public restrooms in parks and similar activities, per each pair of
restrooms 1.0 ERU
Boardwalk shops with sewage, per shop 0.5 ERU
Camping & RV Parks:
Per spigot 0.5 ERU
Per camper/motorhome hookup 0.2 ERU
Private schools, day care centers
Basic charge 2.0 ERU
PLUS per each 15 students or for children in excess of 25 0.5 ERU
Revised 11/22/04
City of Seward Water Tariff - Page 3-3
Public baths and showers:
Basic charge 2.0 ERU
PLUS per each bath or shower in excess of two 0.5 ERU
NOTE: Only one basic charge will be assessed per building where different activities
occupy the same building. This does not exclude residential charges for living
units within the same building.
Revised 11/22/04
City of Seward Water Tariff - Page 3-4
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.
These activities will be metered when newly constructed or when remodeling and/or repairs makes
installation of meters feasible. When a building, mall or group of facilities is served from a single service,
the bill will be based on the total number of facilities served, and no credit will be given for vacant
facilities.
BASIS FOR MONTHLY FEE
Category/Description of Unit Charge
Food/grocery markets:
Basic charge 3.0 ERU
PLUS per water-cooled refrigeration unit 3.0 ERU
PLUS per butcher/meat packing unit 1.0 ERU
PLUS per bakery 1.0 ERU
PLUS per snack bar/Deli 0.5 ERU
Restaurants and/or bars (A unit may be defined as a combination
restaurant/bar if operated together or separate units if restaurant
and bar are operated separately.) This category includes all drink
and food service activities, including full service restaurants,
hospital kitchens, dormitories, dining halls, school cafeterias, etc.:
Basic charge per unit
PLUS per every 8 seats in excess of 8 seats 2.0 ERU
0.5 ERU
Snack Bar - no seating 0.5 ERU
Garage/gas stations and retail, manufacturing and repair shops not
using water for processing:
Basic charge 2.0 ERU
PLUS per pair of restrooms exceeding one pair 0.3 ERU
PLUS per each shower 0.3 ERU
PLUS per each wash bay 1.0 ERU
Revised 11/22/04
City of Seward Water Tariff - Page 3-5
Public schools, if non-metered, excluding swimming pools or food
service:
Basic charge
Elementary School 7.0 ERU
Jr. High School 7.0 ERU
High School 8.0 ERU
PLUS swimming pool 15.0 ERU
PLUS charge for food service based on rate for restaurants (Pg. 3-4)
Hospital & Nursing Homes, if unmetered, excluding food service:
Basic charge
PLUS charge for food service based on rate for restaurants 6.0 ERU
(Pg. 3-4)
Laundry (self service or commercial units), unmetered [New
laundries will be metered]:
Basic charge 2.0 ERU
PLUS per each laundry unit of 12 pounds or less capacity 1.0 ERU
PLUS per each laundry unit larger than 12 pounds capacity 2.0 ERU
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. All new activities shall be metered, and existing facilities will be converted to
meters when remodeling and repairs make installation of a meter feasible.
The cost of initial installation of a meter in a new facility will be paid by the customer. The cost of
maintenance, repair and replacement of the meter will be at customer expense. The customer will provide a
meter, and the user will pay the cost of installation, where an existing service is converted to meter and the
commercial use/activities of the user have not changed. If the meter is required due to changed usage, the
customer will pay all costs, including the cost of the meter. In all cases, the city will specify or approve the
type of meter and its installation.
A customer may request to be converted to meter rates. If a customer requests to convert to meter
rates, the city will install a meter at the customer's expense, and thereafter charges will be based on metered
usage. A customer cannot convert from metered to fixed rate billing.
Revised 11/22/04
City of Seward Water Tariff - Page 3-6
BASIS FOR MONTHLY FEE
Minimum Charge for Each Metered Service
Service Size Minimum Monthly Charge
3/4" - 1" Service $17.01
$12.60
1-1/2" - 2" Service $34.02
$25.20
2-1/4" - 4" Service $171.52
$127.05
Over 4" Service $857.59
$635.25
Note: The minimum charge per metered service does not include fire sprinkler service.
Charge for Consumption
Consumption per Month per Meter Charge per 1,000 Gallons
First 50,000 Gallons $4.29
$3.18
Next 500,000 Gallons $3.43
$2.54
Next 1,000,000 Gallons $2.58
$1.91
Next 2,000,000 Gallons $2.15
$1.59
Next 2,000,000 Gallons $0.57
$0.42
Next 5,000,000 Gallons $0.57
$0.42
All Additional Gallons $0.57
$0.42
The consumption metered on several metered services serving the same owner will not be combined
to calculate the monthly bill. Each will be computed as a separate bill. Except, where an existing activity
is served by several metered services and historically the services have been combined to compute the
monthly bill, the metered consumption for that activity will be totalled prior to computing the monthly bill.
This exception is not applicable to new services initiated after July 1, 1990.
The city may negotiate a special contract with a user that consumes in excess of 3.0 million gallons
of water per month for at least six months during a twelve month period. Such contracts will set a rate
which will assure that the user pays its full share of the utility's fixed and variable operating and
maintenance costs. All special contracts shall be approved by resolution of the City Council.
Revised 11/22/04
City of Seward Water Tariff - Page 3-7
GROUP E - SPECIAL RATES AND FEES
Group E includes charges for other categories of service not included in Groups A through D.
1. Equivalent Residential Unit (ERU) $34.17
$25.31
2. Fire Hydrant Use Permit: From May 1 to $70.88
Tapping Fee $52.50
August 31 a Fire Hydrant Permit may be
$35.44
PLUS daily fee: $26.25
issued. Fire Hydrants will be turned on
$212.63
PLUS weekly fee: $157.50
and off by Water or Fire Department
Personnel. If the City determines that a
meter and a backflow preventer are
required, these will also be installed by
Water Department personnel. This rate is
set for contractors or other temporary
water users, but not for bulk water service
to ships or tanker trucks serving ships or
industries, as follows:
3. Water Service Connection Fee: Up to 1" service not longer than 60 feet, one time
$1,984.50.
charge of $1,470.00.
In excess of 60 feet - actual cost, but not less than
$1,984.50
$1,470.00. .
PLUS cost of paving and curb replacement.
4. Water Service Inspection Fee (for service $70.88
$52.50
installed by others):
Revised 11/22/04
City of Seward Water Tariff - Page 3-8
5. Water Turn-On or Turn-Off (per visit, First turn-on and/or turn-off: -0-
excluding new service and new account
name): No charge for the first turn-on for All other turn-ons or turn-offs:
new service or new account. Seasonal $35.44
During business hours: $26.25
turn-on/turn-off is not classified as a new
$106.31
During non-business hours: $78.75
account and will be charged as "all other
turn-ons or turn-offs."
6. Unauthorized Use of City Equipment $708.75
$525.00
(including fire hydrants, key boxes, turn-
on and/or turn-off:
7. Restoration of Water Service (including Actual cost, including city overhead,
repair of damage by owner or contractor to labor, materials and equipment.
city facilities)
8. Locate Service:
Locate between May 1 and Oct. 31 - no
charge
Locate between Nov. 1 and April 30 -
$106.31
$78.75
Large projects requiring several locates
will be under a special agreement with the
water utility and may include a fee.
9. Thaw Wire: Locate between May 1 and Oct. 31 - no
charge
Locate between Nov. 1 and April 30 -
Revised 11/22/04
City of Seward Water Tariff - Page 3-9
Actual cost, including overhead.10. Security Domestic (Single Fam. & Duplex) $26.25
Deposit: $35.44
Commercial & Multiple Dwellings: $78.75
$106.31
Fire Hydrant usage: $157.50
$212.63
11. Contractor Work: Any contractor tapping into a city main, or
otherwise working on a city water line, must be
properly licensed to perform the work and must
also provide a $5,000.00 bond or equivalent cash
guarantee payable to the city.
Revised 11/22/04
City of Seward Water Tariff - Page 3-10
12. Ship Water (Water furnished to tempo- Less than 1,000 gallons from Seward Small Boat
rarily moored vessels): Harbor facilities not requiring city assistance or
the use of fire hydrants: No Charge
All service not included above:
Basic Charge (during regular business hours):
$70.88
$52.50
Basic Charge (outside regular business hours)”
$141.75
$105.00
$6.02
PLUS $4.46 per 1000 gallons for
all water used.
Note: Customer will be responsible for actual charges
related to all work and materials required to provide
water to vessel.The Point of delivery for potable
water supplied by the City shall be at the customer side
of the meter/backflow preventer, and the customer is
responsible for water quality from the delivery point
to his vessel.
Revised 11/22/04
City of Seward Water Tariff - Page 3-11