Resolution 16-014 Petro 49 Lease on Coal Point Fuel Float and Terminal Tank Farm

CITY OF HOMER

HOMER, ALASKA

                                                                                                                               City Manager

RESOLUTION 16-014

A RESOLUTION OF THE HOMER CITY COUNCIL AMENDING THE HARBOR ENTERPRISES, DBA PETRO 49, (FORMERLY PETRO MARINE SERVICES) LEASE ON THE COAL POINT FUEL FLOAT  AND THE TERMINAL TANK FARM ON THE COAL POINT LOT (SEC 1 T7S, R13W, S.M.) AND TO ENTER INTO A NEW 20-YEAR TERM LEASE WITH THE CITY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, Harbor Enterprises dba Petro 49 (formerly Petro Marine Services) is currently in a long-term lease with the City for the Coal Point Lot and adjoining fuel float; and

WHEREAS, The current lease for Coal Point Lot expires November 30, 2018; and

WHEREAS, Harbor Enterprises, dba Petro 49, desires to enter into a new long-term lease for this property; and

               WHEREAS, Both the Lease Committee and the Port and Harbor Advisory Commission reviewed this proposal and endorses issuing a new, 20 year-term lease with two 5-year options to renew, for the Coal Point lot (SEC 1 T7S, R13W, S.M.) for the expressed purpose of continuing to provide fuel float services to the Homer Small Boat Harbor.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves that the City of Homer enter into a new, 20 year-term lease with two 5-year options to renew, with Harbor Enterprises dba Petro 49 (formerly Petro Marine Services) lease for the Coal Point lot (SEC 1 T7S, R13W, S.M.) and authorizes the City Manager to execute the appropriate documents.

               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 $4,975.00 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.