Resolution 15-073 Contract Award to Northern Economics for Graduated Moorage Rate Structure

CITY OF HOMER

HOMER, ALASKA

Lewis/

Port and Harbor Director

RESOLUTION 15-073

A RESOLUTION OF THE HOMER CITY COUNCIL AWARDING A CONTRACT IN AN AMOUNT NOT TO EXCEED $20,000 TO NORTHERN ECONOMICS TO PREPARE A GRADUATED RATE STRUCTURE, AND ALSO LINEAR RATE STRUCTURE FOR COMPARISON, AMENDING THE PORT OF HOMER TERMINAL TARIFF MOORAGE RATES TO INCORPORATE A 32% RATE INCREASE OVER TEN YEARS TO FUND THE PORT AND HARBOR RESERVES AS RECOMMENDED IN THE NORTHERN ECONOMICS NOVEMBER 2013 RATE STUDY; AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

WHEREAS, The Port and Harbor Advisory Commission held a worksession on April 8, 2014 to review and discuss the Port and Harbor Rate Study prepared by Northern Economics; and

WHEREAS, The Commission has addressed the Port and Harbor Rate Study at each of their regular meetings since then, considering a square foot methodology of assessing rates and also a straight linear method; and

WHEREAS, The Commission received input from large vessel owners that the square foot methodology put an unfair burden on their class of vessel; and

WHEREAS, The Commission brought forward a linear rate increase and received input from small vessel owners that supported considering a graduated methodology that would spread the cost more fairly among vessel classes; and

WHEREAS,  Harbor staff suggested and the Commission agreed they have done as much as they can developing a rate structure that is perceived as fair and equitable and that Northern Economics has the experience to develop a graduated rate structure for the Commission to consider.              

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby awards a contract in an amount not to exceed $20,000 to Northern Economics to prepare a graduated rate structure, and also linear rate structure for comparison, amending the Port of Homer Terminal Tariff Moorage Rates to incorporate a 32% rate increase over ten years to fund the Port and Harbor Reserves as recommended in the Northern Economics November 2013 Rate Study and authorizing the City Manager to execute the appropriate documents.

               PASSED AND ADOPTED by the Homer City Council on this 10th day of August, 2015.

                                                                                                         CITY OF HOMER

                                                                                                         _______________________                                                                                                                                          MARY E. WYTHE, MAYOR

ATTEST:

___________________________

JO JOHNSON, MMC, CITY CLERK

Fiscal Note:  $20,000 funded under account 400.600