Resolution 12-070 Construction Agreement Between City and Enstar Natural Gas Company for Construction of a Natural Gas Main Extension from Anchor Point through Homer to the Eastern Boundary of Kachemak City

CITY OF HOMER
HOMER, ALASKA
City Manager
RESOLUTION 12-070

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A MAIN EXTENSION CONTRIBUTION IN AID OF CONSTRUCTION AGREEMENT BETWEEN THE CITY OF HOMER AND ENSTAR NATURAL GAS COMPANY FOR CONSTRUCTION OF A NATURAL GAS MAIN EXTENSION FROM ANCHOR POINT THROUGH HOMER TO THE EASTERN BOUNDARY OF KACHEMAK CITY AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

WHEREAS, The City of Homer has received a Legislative Grant in the amount of $8,150,000 to partially pay the cost of constructing a main extension from Anchor Point, through Homer, to the eastern boundary of Kachemak City; and

WHEREAS, The total cost of the project is estimated to be $10,700,000 and construction costs exceeding the grant amount will be recovered by Enstar through the Homer Extension Surcharge contained in Section 2403 of the company’s approved tariff; and

WHEREAS, Homer is located within Enstar’s exclusive service area and therefore, a sole source construction contract is necessary and appropriate; and

WHEREAS, Enstar Natural Gas Company is a regulated utility and all of its labor costs, indirect and administrative costs, and construction standards are established and approved by the Regulatory Commission of Alaska (RCA); and

Whereas, Enstar will own, operate, maintain, and assume all liability for the improvements funded by the Legislative Grant; and

WHEREAS, Enstar agrees to comply with all of the terms and conditions contained in the Grant Agreement between the State of Alaska and the City of Homer.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves the Main Extension Contribution in Aid of Construction Agreement between the City of Homer and Enstar Natural Gas Company for construction of a main extension from Anchor Point, through Homer, to the eastern boundary of Kachemak City, a copy of which is attached and incorporated herein, and authorizes the City Manager to execute the appropriate documents.

PASSED AND ADOPTED by the Homer City Council this 23rd day of July, 2012.

CITY OF HOMER

_____________________________
JAMES C. HORNADAY, MAYOR
ATTEST:

_______________________________
JO JOHNSON, CMC, CITY CLERK

Fiscal Note: Expenditure of $8,150,000 Legislative Grant.