Ordinance 13-09 Project Budget for Administration and Direct Services in Support of Natural Gas Distribution System Special Assessment District

CITY OF HOMER
HOMER, ALASKA
                                                                                                                          City Manager
ORDINANCE 13-09

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, APPROPRIATING FUNDS AND ESTABLISHING A PROJECT BUDGET FOR ADMINISTRATION AND DIRECT SERVICES PROVIDED IN SUPPORT OF THE HOMER NATURAL GAS DISTRIBUTION SYSTEM SPECIAL ASSESSMENT DISTRICT.

WHEREAS, The Homer City Council adopted Ordinance 13-02 which created the Homer Natural Gas Distribution System Special Assessment District; and

WHEREAS, Ordinance 13-03(S)(2) authorized the City to issue Natural Gas Distribution System Special Assessment District Bonds in an amount not to exceed $12,700,000; and

WHEREAS, Resolution 13-017(S) authorized and approved a construction contract between the City and Enstar Natural Gas Company in an amount not to exceed $12,160,632; and

WHEREAS, The difference between the bond amount and the not to exceed construction contract ($539,368) represents the total amount assessed to property owners for administration fees and direct costs associated with administering the special assessment district and providing permitting, utility locates, and inspection services; and

WHEREAS, The first drawdown of the loan funds from the Kenai Peninsula Borough will include $539,368 to provide the money needed to administer and facilitate the Special Assessment District for a two year period; and

WHEREAS, It is necessary and beneficial to appropriate funds and establish a project budget for this purpose.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

Section 1.  The Homer City Council hereby appropriates $539,368 from bond proceeds, to be recovered through assessment payments over ten years, to provide administrative and direct services in support of the Homer Natural Gas Distribution System Special Assessment District as follows:

Revenue:
Account No.                                        Description                                       Amount
175-375                                               Bond Proceeds / HSAD                   $539,368

Expenditure:
Account No.                                        Description                                   Amount
175-375                                              Admin / Direct Services /HSAD     $539,368

Section 2. The Council hereby established the following project budget for administration and direct services in support of the Special Assessment District:

Personnel / Labor                               $416,000
Equipment                                              21,350
Vehicles Expenses                                 16,500
Mailing                                                  10,000
Copying                                                   2,500
Advertising                                              2,500
Recording Fees                                        2,500
Contingency                                           68,018
TOTAL                                  $539,368 
      
Section 3. This ordinance is a budget amendment only, is not of a permanent nature, and shall not be codified.

  ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this _______ day of _________, 2013.

        CITY OF HOMER

        ________________________
        MARY E. WYTHE, MAYOR

ATTEST:

______________________________
JO JOHNSON, CMC, CITY CLERK

YES:
NO:
ABSTAIN:
ABSENT:

First Reading:
Public Hearing:
Second Reading:
Effective Date:

Reviewed and approved as to form:

__________________________    ____________________________
Walt E. Wrede, City Manager     Thomas F. Klinkner, City Attorney

Date: _____________________     Date: _______________________