The Ketchikan City Council on Thursday night approved a utility rate review contract with an independent management consulting company.
Council member Jack Finnegan says the city’s current utility rate analyzing software isn’t adequate. He says it cannot assess how to implement an 8% per-year electric and solid waste utility rate increase the city needs to make.
“There’s no question we’re raising rates,” Finnegan said. “This, I think, gives us the clearest view on how to best make that rate increase possible.”
The approval comes after Councilmember Judy Zenge asked the council to reconsider a vote on two items that failed Sep. 4. The first approves an $81,740 contract with Raftelis, Inc. for a rate review of the city’s electric utilities. The second authorizes a $42,710 rate review of the city’s solid waste utilities.
Representatives of Raftelis told council members Thursday that a contract with the company would help the city set more equitable rates that take into account a utility customer’s needs.
But not all council members were on board with contracting Raftelis.
Councilmember Jai Mahtani says the city is in the process of hiring a manager who might want to bring on a different rate-setting consulting company. He also says the city is in debt and shouldn’t hire a company that doesn’t fully understand Ketchikan’s financial situation.
Councilmember Riley Gass agrees, and says the city should save the money allocated to contract Raftelis.
“It’s our job to decide, do we want to raise everyone 8%, or businesses 15% and residents 5%? That’s our job, and I don’t understand why we’re going to be paying some firm,” Gass said.
The city council approved the Raftelis electric and solid waste utility reviews in separate 4-3 votes. The company will begin these rate reviews this fall.
The city council also approved Thursday a collective bargaining agreement between the City of Ketchikan and the International Association of Firefighters. That agreement is valid through the end of 2027 and will impose a 0.5% seasonal sales tax increase to fund its personnel expenditures.
Hunter Morrison is a Report for America corps member for KRBD. Your donation to match our RFA grant helps keep him writing stories like this one. Please consider making a tax-deductible contribution.
