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Sponsored by: Oates <br /> '— CITY OF SEWARD, ALASKA <br /> RESOLUTION 2009 -116 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br /> SEWARD, ALASKA, AMENDING THE PORT AND HARBOR <br /> TARIFF AND PROVIDING FOR AUTOMATIC ANNUAL <br /> ADJUSTMENTS TO MOORAGE AND DOCKAGE RATES BY AN <br /> AMOUNT EQUAL TO THE FIVE PREVIOUS FULL YEARS' <br /> AVERAGE INCREASE IN THE ANCHORAGE CONSUMER <br /> PRICE INDEX FOR ALL URBAN CONSUMERS <br /> WHEREAS, the most recent Rate Analysis of the City of Seward's Harbor <br /> Enterprise Fund was completed eight years ago (in 2001) by J.B. Beckham resulting in an <br /> amendment to the Port & Harbor Tariff reflecting the application of the Anchorage <br /> Consumer Price Index; and <br /> WHEREAS, the Seward Harbor has significantly expanded since 2001, resulting <br /> in the need for an updated Rate Analysis which was conducted in preparation for the <br /> biennial 2010/2011 budget process; and <br /> WHEREAS, between 2003 and 2007 the Anchorage Consumer Price Index (CPI) <br /> rose 13.784 %, producing a five -year average CPI of 2.8% which is the amount by which <br /> moorage and dockage rates will be increased for 2010, and between 2004 and 2008, the <br /> CPI rose 15.624% producing the average CPI of 3.1% which will be the amount by <br /> which moorage and dockage rates will be increased for 2011; and <br /> WHEREAS, the Harbor Enterprise Fund has not made contributions to its Major <br /> Repair and Replacement Fund in a number of years, other than contributions from the <br /> Cruise Ship Head tax, and the City Council desires to establish a funding source to <br /> replace aging harbor infrastructure, resulting in the implementation of a new capital <br /> repair and replacement fee; and <br /> WHEREAS, the harbor operates the vessel storage and maintenance yard at <br /> Seward Marine Industrial Center ( "SMIC "), and the SMIC development plan adopted by <br /> Resolution 2008 -33 intends that SMIC should "seek a rate of return from the use of <br /> public facilities, and assets and equipment that will adequately cover deferred <br /> maintenance and replacement costs "; and <br /> WHEREAS, the 2009 SMIC Operations Analysis recommended a fee structure <br /> which would place the burden of vessel abandonment on the vessel owner, resulting in a <br /> recommended increase in the lay time charge for vessels stored at SMIC; and <br /> WHEREAS, the City of Seward's enterprise funds are operated in a manner <br /> similar to private business entities, in that they establish charges intended to cover the full <br />