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HomeMy WebLinkAboutResolution No. 2018-66CITY OF KENAI RESOLUTION NO. 2018-66 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING THE KENAI CITY MANAGER'S OR DESIGNEE'S APPOINTMENT TO THE MUNICIPAL ADVISORY GAS PROJECT REVIEW BOARD, AS SUPPORTED BY THE CITIES OF SEWARD, HOMER, SOLDOTNA, AND SELDOVIA, AS THE MEMBER REPRESENTING THE INTEREST OF THE CITIES OF THE KENAI PENINSULA BOROUGH. WHEREAS, the Municipal Advisory Gas Project Review Board (MAG) was created on March 25, 2014 by the Governor's Administrative Order No. 269 to evaluate the effects and issues that will arise in the future concerning development of the State's abundant North Slope natural gas resources and the newly created infrastructure to make those resources available to customers throughout the state and markets worldwide; and, WHEREAS, the MAG Board consists of twelve members who are appointed by the Governor and serve at the pleasure of the Governor for a term of one year and may be reappointed to the Board; and, WHEREAS, Article 8, sections 1 and 2 of the Alaska State Constitution declare that it is the policy of the State to encourage the development of its resources by making them available for maximum use consistent with the public interest and for the maximum benefit of its people; and, WHEREAS, in 2009, declining Cook Inlet gas supplies and a reduction in capacity and rising interior energy costs caused concern in communities throughout Alaska; and, WHEREAS, the Alaska Gasline Development Corporation (AGDC) was created by the Alaska Legislature in 2010 and was established as an independent, public corporation of the State in 2013. WHEREAS, in 2014, the Legislature expanded the AGDC's authority to include responsibility for developing an Alaska liquefied Natural Gas (LNG) project; and, WHEREAS, Alaska LNG is an Alaska effort that requires several federal authorizations and a National Environmental Policy Act (NEPA) review. WHEREAS, the Federal Energy Regulatory Commission (FERC) is the lead federal agency responsible for conducting the environmental review of the project; and WHEREAS, AGDC submitted a formal application to construct and operate the Alaska LNG project, and the FERC identified Nikiski, Alaska, as the preferred location for the LNG plant and marine terminal; and, WHEREAS, the City of Kenai is the closest incorporated City to the proposed site and will be the most directly impacted by the proposed LNG Project; and, Resolution No. 2018-66 Page 2 of 2 WHEREAS, City Managers from all cities within the Kenai Peninsula Borough met to discuss the LNG Project and support the City of Kenai representing the multiple and unique interests of municipalities on the MAG Board with recognition that this representation would not overlap with representation by the Kenai Peninsula Borough; and, WHEREAS, the City Councils for the cities of Seward, Homer, Soldotna, and Seldovia all unanimously passed resolutions in support of the Kenai City Manager or designee representing the interests of the Cities of the Kenai Peninsula Borough on the Municipal Advisory Gas Project Review Board. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council supports the appointment of the City of Kenai City Manager or designee to the Municipal Advisory Gas Project Review Board. Section 2. That the Kenai City Manager or designee will represent the best interest of Seward, Homer, Soldotna, and Seward on the Municipal Advisory Gas Project Review Board. Section 3. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of December, 2018. VA I 4011 I S u MEMORANDUM 1111ape W/a a Past Citi ama a Rine „ 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 1 Fax: (907) 283-3014 www.kenai.city TO: Mayor Brian Gabriel and Kenai City Council FROM: Paul Ostrander, City Manager DATE: December 11, 2018 SUBJECT: Resolution No. 2018-66 — Supporting the Kenai City Manager's or Designee's Appointment to the Municipal Advisory Gas Project Review Board On October 24, 2018, the City Managers of Soldotna, Homer, and Seldovia met and discussed the idea of supporting the creation and appointment of a seat on the Municipal Advisory Gas Project Review Board that could represent the multiple and unique interests of cities within the Kenai Peninsula Borough. At that meeting, all of the Cities agreed that the City of Kenai could effectively represent those interests. The City of Seward was not represented at the meeting due to ongoing flooding in their community but subsequently expressed their support of the idea. Since that date, all of the City Councils of the respective cities have unanimously passed resolutions in support of the appointment of the Kenai City Manager or designee to the Municipal Advisory Gas Project Review Board. Resolution 2018-66 recognizes the support from other Kenai Peninsula Borough Cities, and further, expresses the support of the Kenai City Council for the appointment. Your consideration is appreciated. Introduced By: Mayor Date: December 12, 2016 Action: Adopted Vote: 5 Yes, 0 No, 1 Absent CITY OF SOLDOTNA RESOLUTION 2018-048 A RESOLUTION REQUESTING AN ADDITIONAL SEAT ON THE MUNICIPAL ADVISORY GAS PROJECT REVIEW BOARD (MAGP) TO REPRESENT THE INTERESTS OF CITIES IN THE KENAI PENINSULA BOROUGH, AND RECOMMENDING THAT THE KENAI CITY MANAGER OR THEIR DESIGNEE BE NAMED TO THAT SEAT WHEREAS, the Municipal Advisory Gas Project Review Board (MAGP) was created on March 25, 2014 by the Governor's Administrative Order No. 269 to evaluate the effects and issues that will arise in the future concerning development of the State's abundant North Slope natural gas resources and the newly created infrastructure to make those resources available to customers throughout the state and markets worldwide; and WHEREAS, duties of the MAGP Board include reviewing information and providing reports to the Governor on the impact and benefits of new infrastructure for North Slope natural gas development, including consideration of tax structure and other payments Including Payment in Lieu of Taxes (PILT); and WHEREAS, the MAGP Board consists of twelve members, appointed by the Governor to serve at the pleasure of the Governor. Each member of the Board serves a term of one year and can be reappointed to the Board; and WHEREAS, Article 8, sections 1 and 2 of the Alaska State Constitution declares that it is the policy of the State to encourage the development of its resources by making them available for maximum use consistent with the public interest and for the maximum benefit of its people; and WHEREAS, the Alaska Gasline Development Corporation (AGDC) was created by the Alaska Legislature in 2010 and was established as an independent, public corporation of the State in 2013. In 2014, the Legislature expanded the AGDC's authority to include responsibility for developing an Alaska Liquefied Natural Gas (LNG) project; and WHEREAS, AGDC has submitted a formal application to construct and operate the Alaska LNG project, and Identified Nikiski, Alaska, as the preferred location for the LNG plant and marine terminal; and WHEREAS, the impacts and benefits of the Alaska LNG project will be felt throughout the state, but particularly in communities in the Kenai Peninsula Borough which will see significant development and employment increases during construction, and for the life of the project's operations; and WHEREAS, the City of Kenai is the closest incorporated City to the proposed liquefaction facility, and will be directly impacted by the LNG Project; and WHEREAS, City Managers from all cities within the Kenai Peninsula Borough met to discuss the LNG Project, and support the City of Kenai representing the multiple and unique interests of municipalities on the MAGP Board, with recognition that this representation is in addition and complementary to current representation on the board by the Kenai Peninsula Borough Mayor or their designee; 16RE5045 Page 1 of 2 NOW, THEREFORE, BE ITRESOLVED BYTHE CITY COUNCIL OF THE CITY OF SOLDOTNA, ALASKA: I + Section 1. That the City of Soldotna supports the appointment of the Kenai City Manager or their designee, to the Municipal Advisory Gas Project Review Board. Section 2. That the City of Kenai representative will promote the interests of all Kenai Peninsula Borough municipalities in serving on the board. Section 3. This resolution shall become effective immediately upon its adoption. ADOPTED BY THE CITY COUNCIL THIS 12TH DAY OF DECEMBER, 201 . Nels Anderson, yor S er, City Clerk Yes: RAIdge, Cox, Cashman, Chilson, Whitney No: None Absent: Parker IBRES046 Page 2 of 2 CITY OF SELDOVIA RESOLUTION 19-10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SELDOVIA SUPPORTING THE CITY MANAGER OF THE CITY OF KENAI, OR THEIR DESIGNEE, BE APPOINTED TO THE MUNICIPAL ADVISORY GAS PROJECT REVIEW BOARD AS THE MEMBER OF AN ORGANIZATION REPRESENTING THE INTEREST OF KENAI PENINSULA BOROUGH MUNICIPALITIES WHEREAS, the Municipal Advisory Gas Project Review Board (MAG) was created on March 25, 2014 by the Governor's Administrative Order No. 269 to evaluate the effects and issues that will arise in the future concerning development of the State's abundant North Slope natural gas resources and the newly created infrastructure to make those resources available to customers throughout the state and markets worldwide; and WHEREAS, the MAG Board consists of twelve members who are appointed by the Governor and serve at the pleasure of the Governor. Each member of the Board serves a term of one year and may be reappointed to the Board; and WHEREAS, Article 8, sections 1 and 2 of the Alaska State Constitution declare that it is the policy of the State to encourage the development of its resources by making them available for maximum use consistent with the public interest and for the maximum benefit of its people; and WHEREAS, in 2009, declining Cook Inlet gas supplies were facing a reduction in capacity and rising interior energy costs caused concern in communities throughout Alaska; and WHEREAS, the Alaska Gasline Development Corporation (AGDC) was created by the Alaska Legislature in 2010 and was established as an independent, public corporation of the State in 2013. In 2014, the Legislature expanded the AGDC's authority to include responsibility for developing an Alaska liquefied Natural Gas (LNG) project; and WHEREAS, Alaska LNG is an Alaska effort that requires several federal authorizations and a National Environmental Policy Act (NEPA) review. The Federal Energy Regulatory Commission (FERC) is the lead federal agency responsible for conducting the environmental review of the project; and WHEREAS, AGDC submitted a formal application to construct and operate the Alaska LNG project, and the FERC identified Nikiski, Alaska, as the preferred location for the LNG plant and marine terminal; and WHEREAS, the City of Kenai is the closest incorporated City and will be the most directly impacted by the proposed LNG Project; and WHEREAS, City Managers from all cities within the Kenai Peninsula Borough met to discuss the LNG Project and support the City of Kenai representing the multiple and unique interests of municipalities on the MAG Board with recognition that this representation would not overlap with representation by the Kenai Peninsula Borough. NOW, THEREFORE, BE IT RESOLVED THAT: that the City Council of the City of Seldovia supports the City of Kenai's request for appointment to the Municipal Advisory Gas Project Review Board. BE IT FURTHER RESOLVED THAT: the City of Kenai will represent the City of Seldovia's best interest on the Municipal Advisory Gas Project Review Board. PASSED and APPROVED by a duty constituted quorum of the of the City Council of the City of Seldovia, Alaska, on this 10th day of December, 2018 ATTEST: Heidi Geagel, ly Clerk APPROVED: Dean Lent, Mayor 1 CITY OF HOMER 2 HOMER,ALASKA 3 4 RESOLUTION 18-092 Stroozas 5 6 A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, 7 SUPPORTING THE CITY MANAGER OF THE CITY OF KENAI, OR 8 THEIR DESIGNEE, BE APPOINTED TO THE MUNICIPAL ADVISORY 9 GAS PROJECT REVIEW BOARD, AS THE MEMBER OF AN 10 ORGAN17ATION REPRESENTING THE INTEREST OF KENAI 11 PENINSULA BOROUGH MUNICIPALITIES. 12 13 WHEREAS, the Municipal Advisory Gas Project Review Board (MAG) was created on 14 March 25, 2014 by the Governor's Administrative Order No. 269 to evaluate the effects and 15 issuesthatwill arise in the future concerning development of the State's abundant North Slope 16 natural gas resources and the newly created infrastructure to make those resources available 17 to customers throughout the state and markets worldwide; and 18 19 WHEREAS, the MAG Board consists of twelve members who are appointed by the 20 Governor and serve at"the pleasure of the Governor. Each memberof the Board serves a term 21 of one year and may be reappointed to the Board; and 22 23 WHEREAS, Article 8, sections 1 and 2 of the Alaska State Constitution declare that it is 24 the policy of the Stateto encourage the deve(opmentof its resources byrnakingthern available 25 for maximum use consistent with the pub tic interest and for the maximum benefit of its people; 26 and 27 28 WHEREAS, in 2009, declining Cook Inlet gas supplies were facing reduction incapacity 29 " and rising interior energy costs caused concern in communities throughout Alaska; and 30 31 WHEREAS, the Alaska Gasline Development Corporation (AGDC) was created by the 32 Alaska Legislature in 2010 and was established as an independent, public corporation of the 33 State in 2013. In 2014, the Legislature expanded the AGDC's authority to include responsibility 34 for developing an Alaska liquefied Natural Gas (LNG) project; and 35 36 WHEREAS, Alaska LNG is an Alaska effort that requires several federal authorizations 37 and a National Environmental Policy Act (NEPA) review. The Federal Energy Regulatory 38 Commission (FERC) is the lead federal agency responsible for conducting the environmental 39 review of the project; and 40 Page 2 02 RESOLUTION 18.092 CITY OF HOMER 41 WHEREAS, AGDC submitted a formal application to construct and operate the Alaska 42 LNG project, and the FERC identified Nikiski,Alaska, as the preferred location forthe LNG plant 43 and marineterminal;and 44 45 WHEREAS, the City of Kenai is the closest incorporated Cityand will bethe mostdirectly 46 impacted by the proposed LNG Project; and 47 48 WHEREAS, City Managers from all cities within the Kenai Peninsula Borough met to 49 discuss the LNG Project and support the City of Kenai representing the multiple and unique 50 interests of municipalities on the MAG Board with recognition that this representation would 51 not overlap with representation bythe Kenai Peninsula Borough. 52 53 NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska, supports 54 the City of Kenai's request for appointment to the Municipal Advisory Gas Project Review ss Board. 56 57 BE 1T FURTHER RESOLVED that the City of Kenai will represent the City of Homer's best 58 interest on the Municipal Advisory Gas Project Review Board. 59 60 PASSED AND ADOPTED by the Homer City Council on this 26t'day of November, 2018. 61 62 CITYOF HOMER 63 64 65 66 67 KEN CASTNER, MAYOR 68 ATTEST: 69 70 71 _ 72 A46LISSA JACO N, MMC, CITY CLERK 73 74 Fiscal Note: N/A Sponsored by: Bridges CITY OF SEWARD, ALASKA RESOLUTION 2018-092 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE CITY MANAGER OF THE CITY OF KENAI, OR THEIR DESIGNEE, FOR APPOINTMENT TO THE MUNICIPAL ADVISORY GAS (MAG) PROJECT REVIEW BOARD, AS THE MEMBER OF AN ORGANIZATION REPRESENTING THE INTEREST OF MUNICIPALITIES IN THE STATE WHEREAS, the Municipal Advisory Gas (MAG) Project Review Board was created on March 25, 2014 by the Governor's Administrative Order No. 269 to evaluate the effects and issues that will arise in the future concerning development ofthe State's abundant North Slope natural gas resources and the newly created infrastructure to make those resources available to customers throughout the state and markets worldwide; and WHEREAS, the MAG Board consists of twelve members who are appointed by the Governor and serve at the pleasure of the Governor. Each member of the Board serves a term of one year and may be reappointed to the Board; and WHEREAS, Article 8, Sections 1 and 2 of the Alaska State Constitution declare that it is the policy of the State to encourage the development of its resources by making them available for maximum use consistent with the public interest and for the maximum benefit of its people; and WHEREAS, in 2009, declining Cook Inlet gas supplies were facing a reduction in capacity and rising interior energy costs caused concern in communities throughout Alaska; and WHEREAS, the Alaska Gasline Development Corporation (AGDC) was created by the Alaska Legislature in 2010 and was established as an independent, public corporation of the State in 2013. In 2014, the Legislature expanded the AGDC's authority to include responsibility for developing an Alaska liquefied Natural Gas (LNG) project; and WHEREAS, Alaska LNG is an Alaska effort that requires several federal authorizations and a National Environmental Policy Act (NEPA) review. The Federal Energy Regulatory Commission (FERC) is the lead federal agency responsible for conducting the environmental review of the project; and WHEREAS, AGDC submitted a formal application to construct and operate the Alaska LNG project, and the FERC identified Nikiski, Alaska, as the preferred location for the LNG plant and marine terminal; and WHEREAS, the City of Kenai is the closest incorporated City and will be the most directly impacted by the proposed LNG Project; and CITY OF SEWARD, ALASKA RESOLUTION 2018-092 WHEREAS, City Managers from all cities within the Kenai Peninsula Borough met to discuss the LNG Project and support the City ofKenai representing the multiple and unique in of municipalities on the MAG Board with recognition that this representation would not overlap with representation by the Kenai Peninsula Borough. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council supports the City ofKenai's request for appointment to the Municipal Advisory Gas Project Review Board. Section 2. That the City of Kenai will represent the City of Seward's best interests on the Municipal Advisory Gas Project Review Board. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10'" day of December, 2018. THE CITY OF SEWARD, ALASKA Sue McClure, Vice Mayor AYES: Lane, Hom, Towsley, Osenga, McClure NOES: None ABSENT: Seese, Squires ABSTAIN: None ATTEST: "B�al!,. City Clerkbr. w : , iy Sy ^.ri, F tea �..,'^•�. 12/4/2018 Office of the Governor, Administrative Orders 064WiJxisfradl`ue aV FROM THE OFFICE OF THE Sean ParnellSTATE OF ALASKA GOVERNOR OFFICE OF THE GOVERNOR JUNEAU GOVE N,OJ?_ OF ALA yt�j{(a 1 ADMINISTRATIVE ORDER NO. 269 March 25, 2014 1, Sean Parnell, Governor of the State of Alaska, under the authority of Article III, Section 1 and 24 of the Alaska Constitution, and in accordance with AS 44.19.145(c), establish the Municipal Advisory Gas Project Review Board, PURPOSE The State has enjoyed many economic benefits due to the commercialization of North Slope oil, including employment in the oil and gas industry, production, income and property taxes and royalties, and development Of infrastructure. The continuing bright future of oil and gas development in the state is of vital public interest, especially the development and commercialization of North Slope natural gas. In order to support success in the commercialization of North Slope natural gas, there is a need to understand the Potential impact and benefits of a major natural gas project on communities throughout the state. The purpose of the Municipal Advisory Gas Project Review Board is to develop a framework to evaluate the effects and issues that will arise in the future concerning development of the State's abundant North Slope natural gas resources and the newly created infrastructure to make those resources available to customers throughout the state and markets worldwide. COMPOSITION AND CHAIR OF BOARD Fhe Municipal Advisory Gas Project Review Board consists of 12 members who are appointed by the Governor and serve at the pleasure of the Governor. Each member of the 3oard shall serve a term of one year and may be reappointed to the Board. rhe members of the Municipal Advisory Gas Project Review Board shall include: 1. The Commissioner of the Department of Revenue or the Commissioner's designee; 2. The Commissioner of the Department of Natural Resources designee; or the Commissioner's 3. The Commissioner of the Department of Commerce, Community, and Economic Development or the Commissioner's designee; 4. Six public members consisting of the mayor, or the mayor's designee, one from each of the following areas: the North Slope Borough, the Fairbanks North Star Borough, the Denali Borough, the Matanuska-Susitna Borough, the Municipality of https://gov.alaska.gov/admin-orders/269.htli 113 12/4/2018 Office of the Governor: Administrative Orders IAnchorage, and the Kenai Peninsula Borough; 5. One member of an organization representing the interest of municipalities in the state, regardless of where that person resides in the state; and 6. Two members of the public in the state who do not reside in the North Slope Borough, the Fairbanks North Star Borough, the Denali Borough, the Matanuska- Susitna Borough, the Municipality of Anchorage, or the Kenai Peninsula Borough. The Commissioner of the Department of Revenue or the Commissioner's designee serves as the chair of the Municipal Advisory Gas Project Review Board. DUTIES AND RESPONSIBILITES The Municipal Advisory Gas Project Review Board shall review available information, hold public meetings and, provide annual reports by December 15 of each year to the Governor that include: 1. The potential impact and benefits of new infrastructure for North Slope natural gas development, whether designed to provide natural gas for in-state sale or for export, or both, on communities in the state, including consideration of tax structure under AS 29.45 and AS 43.56, and consideration of other payments before construction of new infrastructure associated with North Slope natural gas development; 2. Recommendations for changes to the oil and gas exploration, production, and pipeline transportation property taxes under AS 43.56 related to infrastructure for commercialization of natural gas that would facilitate development of a major natural gas project and mitigate financial impacts to communities affected by development of a North Slope natural gas project; 3. Recommendations for changes to AS 29.45.080 related to the commercialization of natural gas that would facilitate development of a North Slope natural gas project and mitigate financial impacts to communities affected by a North Slope natural gas project; 4. Recommendations for legislative or other options to minimize the financial impact to communities in proximity to North Slope natural gas project infrastructure during construction of a natural gas pipeline and associated infrastructure; and 5. Recommendations on the impact and benefits to communities not in proximity to a North Slope natural gas project. ADMINISTRATIVE SUPPORT Consistent with law and available appropriations, the Department of Revenue shall provide administrative support for the Municipal Advisory Gas Project Review Board using existing personnel and monetary resources. The Department of Revenue and other State agencies are not required to create new information in response to a request of the Municipal Advisory Gas Project Review Board. GENERAL PROVISIONS h1tpsJ/gov. alaska.gov/admin-orders/269. him] I 2/3 12/4/2018 Office of the Governor: Administrative Order's Members of the Municipal Advisory Gas Project Review Board receive no compensation for service on the Board, but are entitled to per diem and travel expenses in the same manner permitted for members of State boards and commissions. The Board may use teleconferencing or other electronic means, to the extent practicable, in order to gain the widest public participation at minimum cost. The Municipal Advisory Gas Project Review Board has access to public records under AS 40.25.110 - 40.25,220. The exceptions of AS 40.25.120 apply to the request. The meetings of the Municipal Advisory Gas Project Review Board shall be conducted in accordance with AS 44.62.310 - 44.62.319 (Open Meetings Act). The Board shall meet at the date and time set by the Commissioner of the Department of Revenue or the Commissioner's designee, but at least once in a calendar year. A majority of members constitutes a quorum for conducting business. Records of the Municipal Advisory Gas Project Review Board are subject to inspection and ,opying as public records under AS 40.25.110 - 40.25.220. Phis Order takes effect immediately, )ated at Juneau, Alaska, this 25th day of March, 2014 WWW oov.srare,AK.us httPS://gov.alaska.gev/admin-orders/269,htmi /s/Sean Parnell Governor 3/3