HomeMy WebLinkAboutRESOLUTION 1979-133~ .. •---- -~ - -- -.~ --~~
CITY OF KENAI
RESOLUTION NO. 79-133
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASRA
CONSENTING TO THE PARTIAL ASSIGNMENT OF FRANCHISE OF KENAI
UTILITY SERVICE CORPORATION TO ALASKA GAS & SERVICE COMPANY.
WHEREAS, Kenai Utility Service Corporation (hereinaf;er
"KUSCO") has a franchise with the City of Kenai for supply
of natural gas to the City of Kenai which franchise is set
forth in Ordinance 115 of the City of Kenai, and
WHEREAS, the City Council was approached at the last regular
City Council meeting by representatives of KUSCO and Alaska
Gas & Service Company (hereinafter "Alaska Gas") with a
proposal to allow Alaska Gas to service with qas the residents
within the City of Kenai on the south side of the Kenai
River for the reason that Alaska Gas was in the position to
i.mmediately supply qas to said residents because of existing
pipe lines in the area owned by Alaska Gas, and
WHEREAS, it would not be ecunon:ically feasible at this time
for RUSCO to extend a line to this area, and
WHEREAS, KUSCO is agreeable to partially assigning its °~~
franchise right to service the City of Kenai to Alaska Gas,
solely to the extent of allowing Alaska Gas to serve that
area within the City on the south side of the Kenai River,
and
WHEREAS, Section 8-3 of the Charter of the City of Renai
permits the sale or assignment of a franchise with the
consent of the Counsel provided that the purchaser or
assignee shall be subject to the terms of the franchise, the
provisions of the Charter and ordinances of the City of
Renai.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA as follows:
Sectfon 1. Pursuant to 8-3 of the Kenai City Charter,
the City'- Council hereby consents to the partial assiqnment
of franchise rights from KUSCO to Alaska Gas of only that
area within the City of Renai on the south side of the Kenai
River provided that the partial assignee, Alaska Gas, shall
be subject to the terms of the franchise (Ordinance 115),
the provisions of the City Chartex, and the ordinances of
the City.
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Resolution No. 79-133, Page 2
Section 2. This resolution shall have no force or
effect unless and until the authorized officer of each
service company mentioned above shall have signed this
resolution in the appropriate place indicating their consent
to the transfer and aqreement to abide by the terms of the
franchise, charter and ordinances, and further this resolution
shall have no force or effect ranless and until the Alaska
Public Utilities Commission has issued the amendment to the
service area certificates under the conditions as set forth
in Section 3 below.
Section 3. The City Manager is authorized and directed
to advise the Alaska Public Utilities Co~nission that the
City of Renai has no objection to the issuance of an amend-
ment to the service area certificates to Alaska Gas & Service
Company, Division of Alaska Interstate Company, which would
add the area lying "south" of the Kenai River and within the
corporate li.mits of the City of Kenai, it being agreed that
a fee of two percent (2$) of the gross revenues so realized
will be payab~.e to the City of Kenai on or before March 15
of each year as consideration for right of way.within said
City of Kenai property, and it being further agreed that gas
utility service be made available not later than October 1,
1980.
Section 4. This resolution shall be of no force and
effect until Union-Marathon Oil agrees in writing that this
partial assiqnment and the consequent introduction of qas
into the City limits of Kenai by Alaska Gas will not constitute
an extraneous purchase of qas by the City within the meaning
of the City's agreement with Union-Marathon Oil dated May
17, 1966 (called the "Gas contract") and an extension there-
of so as to in any way limit the volume of gas which the
City is entitled to pursuant to the contract.
PASSED BY THE COUNCIL OF THE CITY KENAI, ALASKA this 19th
day of September, 1979. f
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VINCENT O'REILLY MAY
ATTES :
ue C. Peter, City Clerk
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Resolution No. 79-133, Page 3
Alaska Gas & Service Company hereby agrees to all the
terms and conditions set forth in the above resolution and
as a condition to receiving City Council consent to the
partial transfer above described agrees to be firmly bound
thereby including the aqreement to abide by all of the terms
of the franchise (Ordinance 115) in the sam~ way as Renai
ptility Service Corporation must abide thereby and agrees to
abide by the City Charter and city ordinances.
DATED:
By :
Title
(indicate corporate authority
to sign this agreement)
, Kenai Utility Service Corporation hereby agrees with
the partial assignraent as above described and agrees to its
obligations pursuant to its franchise (Ordinance 115) and
duty to abide by the City Charter and City ordinances remains
intact as it relates to that part of the franchise not
partially assigned.
DATED:
By:
T tle
(indicate corporate authority
to sign this agreement)
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