CITY OF HOMER

HOMER, ALASKA

Novak

RESOLUTION 08-21(A)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA AMENDING THE CITY OF HOMER 2008 FEE SCHEDULE FOR COMMERCIAL WATER AND SEWER RATES.

WHEREAS, The 2008 fee schedule passed by the Homer City Council on December 17, 2007 placed too much emphasis on the monthly customer charge, which resulted in an unfair burden on low volume water users; and

WHEREAS, It is recognized that a greater emphasis should be placed on the customer usage charge.

WHEREAS, It is recognized that high volume users place greater demands on the system and therefore should be charged a higher usage rate; and

WHEREAS, It is also recognized that high volume users may require the ability to obtain large volumes of water over a short period of time; and

WHEREAS, Using a progressively higher cost for higher volume users encourages conservation, and skews the burden of payment to the higher volume users.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Homer, Alaska hereby amends the Homer 2008 Fee Schedule for Commercial Water and Sewer rates by adopting 2008 Variable Rate Model #3 as attached (Attachment #1).

BE IT FURTHER RESOLVED that the Council will give small business owners a credit equal to the difference in customer charges between the 2008 adopted Variable Rate Model and the 2008 Variable Rate Model #3 as attached (Attachment #1; the credit is computed as follows:

Commercial Users </= 2,000 gallons: $205 - $72 = $133 x 92 = $12,236

Commercial Users </= 5,000 gallons: $205 - $145 = $60 x 88 = $5,280

PASSED AND ADOPTED by the Homer City Council this 11th day of February, 2008.

CITY OF HOMER

______________________________________

DENNIS NOVAK, MAYOR PRO TEMPORE

ATTEST:

______________________________

JO JOHSNON, CMC, CITY CLERK

Fiscal Note: Defined in resolution.