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Resolution 12-043 Capital Improvements in the Harbor and Funding by Grants, a Revenue Bond Sale, and Fee Adjustments

Resolution Summary

A Resolution of the City Council of Homer, Alaska, Accepting and Approving Recommendations Submitted by the Port and Harbor Improvement Committee Regarding Capital Improvements in the Harbor and the Funding Thereof and Authorizing the City Manager to Prepare the Documents Necessary for Grant Funding, a Revenue Bond Sale, and the Fee Adjustments Necessary to Service the Bonds. Howard, Lewis, Wythe.

Resolution Details

CITY OF HOMER
HOMER, ALASKA

Howard, Lewis, Wythe

RESOLUTION 12-043

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, ACCEPTING AND APPROVING RECOMMENDATIONS SUBMITTED BY THE PORT AND HARBOR IMPROVEMENT COMMITTEE REGARDING CAPITAL IMPROVEMENTS IN THE HARBOR AND THE FUNDING THEREOF AND AUTHORIZING THE CITY MANAGER TO PREPARE THE DOCUMENTS NECESSARY FOR GRANT FUNDING, A REVENUE BOND SALE, AND THE FEE ADJUSTMENTS NECESSARY TO SERVICE THE BONDS.

WHEREAS, The Homer City Council created the Port and Harbor Improvement Committee through adoption of Resolution 11-60; and

WHEREAS, The Committee scope of work included identifying priority port and harbor capital projects that could be financed through the sale of revenue bonds and to prepare a “revenue bonding plan”; and

WHEREAS, The Committee has held meetings on a regular basis since August of 2011, reviewed and analyzed relevant information and facts, prepared a proposal as a basis for public discussion, conducted public outreach activities, and prepared a final recommendation to the Council; and

WHEREAS, The Committee recommends that the City prepare grant applications and sell bonds for the following projects at a total cost of $9,094,000 (includes Denali Grant contribution of $330,000); the City would fund one half of the amount ($4,547,000 plus $110,000 (City’s 25% match requirement of the Denali Grant of $440,000) for a total of $4,657,000 through the sale of revenue bonds:
• Ramp 3 Gangway and Approach
• Harbor Float Replacement
• System 5 Upgrades
• Load and Launch Ramp; and”



WHEREAS, The Committee recommends that the Council bond for a full $5 Million so that unforeseen contingencies and increases in the costs of construction and materials can be addressed; and

WHEREAS, The Committee recommends that the following fees be increased in order to generate the revenue needed to service the bonds and increase contributions to the depreciation reserves:
• Fuel Wharfage
• Moorage
• Ice
• Dockage

WHEREAS, Detailed information on the proposed projects, fee increases, and bond payments is included in the attached Memorandum 12-076 from the Committee.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby accepts and approves the recommendation provided by the Port and Harbor Improvement Committee as described in Memorandum 12-076, a copy of which is attached and incorporated herein; and

BE IT FURTHER RESOLVED that the Council authorizes the City Manager to begin implementing these recommendations by preparing the documents necessary for a grant application, bond sale application, and the necessary resolutions to adjust the fee schedule and Port and Harbor Tariff.

PASSED AND ADOPTED by the Homer City Council this 14th day of May, 2012.

CITY OF HOMER


_____________________________
JAMES C. HORNADAY, MAYOR

ATTEST:


_______________________________
JO JOHNSON, CMC, CITY CLERK

Fiscal Note: Bond debt: $4,274,500.00.