Resolution 16-013 Petro 49 Lease for Lot 8-E-1 Homer Spit #6

CITY OF HOMER

HOMER, ALASKA

                                                                                                                               City Manager

RESOLUTION 16-013

A RESOLUTION OF THE HOMER CITY COUNCIL CONCERNING THE HARBOR ENTERPRISES, DBA PETRO 49, (FORMERLY PETRO MARINE SERVICES) LEASE FOR LOT 8-E-1 HOMER SPIT #6 AND DIRECTING THAT IT BE CANCELED AT THE TERM OF THE LEASE DECEMBER 1, 2018 AND THAT THE PROPERTY BE ADVERTISED FOR LEASE IN A REQUEST FOR PROPOSALS.

               WHEREAS, Harbor Enterprises dba Petro 49 (formerly Petro Marine Services) is currently in a long-term lease with the City for a Fuel Float and tank farm on Lot 8-E-1 Homer Spit #6 on the Homer Spit; and  

WHEREAS, The current lease for Lot 8-E-1 Homer Spit #6 expires December 1, 2018; and

WHEREAS, Harbor Enterprises, dba Petro 49, desires to enter into a new full term lease for this property with the City for the purpose of continuing to provide fuel float services to the Homer fleet; and

               WHEREAS, Both the Lease Committee and the Port and Harbor Advisory Commission reviewed this proposal and recommend that this property be advertised in a RFP at the term of the lease for the purposes of providing fuel service to the Homer harbor fleet; and

WHEREAS, Both the Lease Committee and the Port and Harbor Advisory Commission cited that it was in the community’s best interest to seek competitive proposals from companies seeking to provide vessel fueling services to both the vessels in the harbor and also to bring this capability out to our Deep Water Dock facility. The Commission and Committee also reasoned that if the City moves ahead with extending a new standard lease for the Coal Point fuel float to Harbor Leasing that it would be in the community’s best interest to seek a competitive fuel source for Lot 8-E-1.

NOW, THEREFORE, BE IT RESOLVED by the Homer City Council  that at the termination of the lease for Lot 8-E-1 Homer Spit #6 on December 1, 2018 with Harbor Enterprises, dba Petro 49, (formerly Petro Marine Service), the property will be advertised for lease in a RFP.

               PASSED AND ADOPTED by the Homer City Council this 25th day of January, 2016.

CITY OF HOMER

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note:  Current leases are $11,475.00 annually, plus wharfage on petroleum products. Amount is based on the appraised value of land and adjusted annually to keep pace with the Consumer Price Index.