Council to Set Higher Utility Rates

Tuesday, May 28 2013

Council will vote on a final plan for paying off big upgrades to the city’s utilities at tonight's meeting.

The city's consultant, Mike Hubbard, has put together a plan that would raise water rates by 7 percent, wastewater rates by 14 percent, and solid waste fees by 11 percent. Those increases would start on July 1. But the rates would increase again next July, and again the year after that, by the same percentages.

By July 2015, the average consumer's monthly bill will have gone up 18 percent compared to what they pay now. The city's industrial users will have seen a 29 percent rise in their monthly bills since 2013. The rates are designed to generate a slim profit for the utilities, but they won't be enough to pay off debt service on state loans.

Also on the agenda for tonight is a public hearing on the operating and capital budget for fiscal year 2014, and a proposal to cap reimbursement rates for residential and commercial users when they extend utility lines to their properties. Under the proposed limit, the city would reimburse up to 75% of the total cost of the extension.

$12 million in contracts are also up for consideration tonight. Council will vote on a wide-ranging paving contract with Knik Construction. Knik bid $8 million to pave Ballyhoo Road, the Unalaska Marine Center backreach, Henry Swanson Drive, and the airport long-term parking lot. Granite Construction also bid on those projects. Additionally, council will consider a $1.6 million contract with Regan Engineering to inspect the wastewater and water treatment plant construction.

And finally, council will vote on whether to buy a fourth generator for the powerhouse, after months of discussion. The $2.5 million contract they’ll consider tonight is with NC Power Systems. That money would be a down payment on the generator.

Council will also vote on new labor contracts with city employees in Local 302, of the International Union of Operating Engineers.

The meeting starts at 7 p.m. in City Hall.



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