Resolution 16-031(S) Lease for Lot 8-E-1 Homer Spit #6 to Petro 49 for 20-Year Term

CITY OF HOMER

HOMER, ALASKA

                                                                                                                               City Council

RESOLUTION 16-031(S)

A RESOLUTION OF THE HOMER CITY COUNCIL APPROVING HARBOR ENTERPRISES, DBA PETRO 49 (FORMERLY PETRO MARINE SERVICES), WITH A NEW 20-YEAR TERM LEASE OF LOT 8-E-1 HOMER SPIT #6, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, Harbor Enterprises, dba Petro 49 (formerly Petro Marine Services), currently holds a long-term lease from the City for a Fuel Float and tank farm on Lot 8-E-1 Homer Spit #6 on the Homer Spit that expires December 1, 2018; and  

WHEREAS, Harbor Enterprises, dba Petro 49, desires to enter into a new 20-year 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 recommended that this property be advertised in a RFP at the end of the term of the lease for the purposes of providing fuel service to the Homer harbor fleet; and

WHEREAS, The Homer City Council reviewed the recommendations of the Lease Committee and the Port and Harbor Advisory Commission at its regular meeting on February 22, 2016 and concluded that it was in the City’s best interest to not advertise the property in the RFP process; and

WHEREAS, The City Council approves issuing a new, 20 year-term lease with two 5-year options to renew to Harbor Enterprises dba Petro 49 for the Fuel Float and tank farm on Lot 8-E-1 Homer Spit #6, for the express 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 a new, 20 year-term lease with two 5-year options to renew with Harbor Enterprises dba Petro 49 (formerly Petro Marine Services) for the Fuel Float and tank farm on Lot 8-E-1 Homer Spit #6, and authorizes the City Manager to execute the appropriate documents.

               PASSED AND ADOPTED by the Homer City Council this 29th day of March, 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.