HomeMy WebLinkAboutRESOLUTION 1993-17 su~ested 5y: ~XNXS~m~v~OS
CITY ON KENAI
RESOL~ON. NO. 93 .. 17 ,
RESOLUTION'OF THB couNCIL.oN'THE CITY OF.KENAI, .ALASKA,
AUTHom.~O '.THE.~IrrI. ON.'OF TI~ FIS~ BusINN~s TAX
V~ml~AS.'the state of Alaska has. proposed a di?tribution of $1,~00,000 of a sett!e.m,on~
between the State of 'Ahska' ~and Alyeska defendants .m State of Al~ v.. Bxxon
~ (3AN-SO,68S2. Civ,) which mount vas appropriated' fordistribUtiOn to municipalities, that
suffereda loss of state fisheries bu~ness tax revenues in 1989, and
V~IBREAS, the affected municipalities that desire to participate in the distribution have
proposed, and the State has accepted, an allocation among such municipalities as set out in the
Fisheries Business Tax Allocation and Disbursement Agreement (Agreement) attached hereto,
and
WHERBAS, the Council has reviewed said Agreement and has consulted counsel regarding the
rights, obligations and liabilities of the City under the Agreement and is. aware of its implications,
and
%~IHF, HAS, thecoUnCilflnds the execution,'of said. Agreement would be in the best.interestS of'
NOw, THeOl.. B]~ IT ItI~SOL~D BY' TI~ COUNCIL OF ~ CITY OF 'K~AI.
ALASKA THAT the Agreement is approved and the City Manager is authorized and directed
to execute the A~reement on behalf of the City.
AI)~~ BY ~ COUNCIL OF THE CITY OF* I~At, ALASKA, this .~ day of
,lffi~.
·
C~rol L. Freas, City Clerk
(3/3O/93)
FISHERIES BUSINESS TAX ALLOCITION ~ DISBURSEMENT IGREEMENT
THXS AGREEMENT is entered into t.h_is day of_
,19~3 between the State'
of Alaska Department'of Law and Affected Municipal/ties pursuant to Chapter 111 SLA .
WHEREAS, fate in the evenin8 of March 23 or early in the mornin~ of March 24,
1989 the' T/V. EXXON V'ALDEZ~ owned by the Exxon Shipping Company, went aground
on Bli~lh Reef.in Prince Will_into_ Sound, Alaska and as a restdt of the grounding..
approximately I1 m!!!!on 8ailons of crude oil owned by Exxon Corporation spilled into
Prince William Sound (hereinafter the "Oil Spill"); and
WHEREAS, the Oil Spill necessitated the closure of various commercial fisheries
throughout Prince W**llfn_m Sound and the area outside the Sound impacted by the Oil Spill;
and
WHI~REAS, these closures resulted in reduced fisheries business tax revenues for the
State under AS 43.75 for 1989 and for certain municipalities which would have shared in
those lost revenues under AS 43.75.130; and
~, in August 1989, the State of Alaska filed an action in the Superior
Court for the State of Alaska, Third Judicial Disuict, identifidd as State of
_Co _moration. et hi._ Civil No. 3AN-89-6852, against, ~ ~ Alyeska Pipeli_n_e Service
Company ("Alyeska"), Amerada Hess Pipeline Corporation, ARCO Transportation Alaska,
Inc. formerly known as ARCO Pipe Line Company, BP Pipelines (Alaska), Inc. ExXon.
'Pipeline Company, Mobil Alaska Pipe!in_e Company, Phillips Alaska Pipeline Corporation,
and Unoeal Pipeline Company (collectively, except for Alyeska, referred to as the "Alyeska
Owner Companies"); and
WHEREAs, the State action was removed to the United States District Court for
. ;' ' '~the' District of Alaskain February 1~2; and
".:·: ~ :;.'.'.,-, .-" ~REAS, pursuant ~o an Agreement and Consent Decree entered November =,· .
" .' "..,...'.,' .' the U, ted States District Court for the District
"' "'clahns of' th"e "state and the United States against Alyeska and the Alyeska owner...
Companies'were settled; _-_nd" '
.... · ..... .. WI-iiERBAS, pursuaut to Paragraph 13 of the Consent Decree, Alyeska has paid the ....
Slate $1~00'000 ("Settlement Payment') for 1989 Fisheries Business Tax revenues under AS:' ·
45.?~. which ar~ to be ref~nded to local $over.ments under AS 43.75.130; and
WHEREAS, pursuant to Chapter 111, SLA 1992, the $1~q00,000 Settlement Payment
was appropriated to the Department of Law for distribution to the llp_mlcipalities that
~_,~fered' a'l°Ss 'of ~revenue under AS 4~.75.130 caused by the Oil Spill; and
:, .~ pummnt to Chapter 111, SLA 1992, the Department of Law ~p.'.not
'disttibUte these funds until there is an agreement between all potengally affected
.municipalities and the department as to the method and amount of allocation; and
WHEREAS, the City of Vaidez, a potentially affected municipality, has waived its
fight to participate in the $1~q00,000 Settlement Payment. The parties' hereto covenant and agree as follows:
1. P.6]~ti]~. For purposes of this agl~ment, the Parties are defined as· follOWS:
(a) '~Depar~_ em of Law" or "Department" means and indud~ the
Depart__ ent' of Law and the State of Alaska tn all its capacities..
including all departments, divisions, independent boards, and .agencies.
2
.. of state 8ovemment.
1. (b),, . "Affected Municipalities" means all cities, unified mtmictPalities 'and
a result'of the Oil Spill, and who have..n0t :.' .
participate in the distribution of the
affected municipalities are:
(~)
(2)
(~)
(4)
(6)
(?)
(8)
(9)
(10)
(n)
(1~)
(1~)
(14)
(is)
Kodiak
Old Harbor
Larsen Bay
Pon Lions
Kodiak Island Borough '.
[ake& Penimuh Borough
Homer
Cordova
Whittier
Seward
· 2. "' MA'"I~OD AND AllOCATION OFPA~. The. Settlement PaYment
shallbe' dism'bU~ by the Department of Law to the AEected Municipa!ities. in.~e
shown below.. The payments shall be made by check placed in the Uaited States. :mail,
postage Prep'.atd to the business address of the mtmkipaliiy, units otherwisedite~ bY the'
muniCiPalitYin writing, Within seven days of the effective date of thi~agt.eemellt. '
A~eeted Municioalities
(I).. KOdiak
(2) 0~.~~
(3) .Lars~n Bay
(4) Ouziakie
$179,88450
3,939.00
26~050
3,939.00
(~) Pon Lions
(6) Kodiak Island Borough
(7) Chis~
(8) Lake & Penins~a Borou~
(9) Kenai Peninsula Borou/h
(~) ~
(! !) Homer
(12) .Seldovia
(13) Cordova
(14) Whiui~r
· (15) Seward
7,878.00
30~,~07.~0
92,778.0O
10,~08.00
414,638.62
147,379.12
64,628.63
6,970.13
157,~67,.~0
5,047.~0
37,737.00
TOTAL $1~00,000.00
RRPRESENTATIONS. RI:.II:.ASI~. AND INDEMNIFICATION BY _THE
AFI~~D ~cn,~Lrrr~s. The Affected Municipalities represem that they ate the
onl~ entities entitled to share in the Settlement Paymen~ and that the method of allocation.
fairly distributes the Settlement Payment amongst themselves in a manner consistem with
AS 43.75.130. The Affected M-nlcipalities release the Department of Law from any l~r ''
all clntm-~ for any portion of the Seelement Payment or for any mount directty or indirectly '"
related to iL The Affected Mtmic/palittes shall jointly and severally hold the Department
of Law harmless and shall f~lly indemni~y the Deparunent from any and all costs, fees' or
awards (indudin& without limitation, all litigation costs) that may arise fror~ any and all
claims relating to the execution of this agreement or the distribution or allocation of the
Settlement Payment, indudi~ without Ifmltafion, claims for adjustments to allocations: set
forth under this Agreement, claims by persons or entities ncr identified in paragraph l(b)
assertin~ a righ! to participate in the allocation, and claims for interest.
m
RI~IATIONS[4TP TO OTI4~.R POTENTIAL RGCOV~RII~S, The Parties
acknowledse that the amounts paid pursuant to this Agreement are in addition to any
amount which has been or will be allowed to any party by the Tram .~aska Pipeline
Liability Fund (TAPL Fund). Nothing in this Agreement is intended to Hm!t or affectthe:..
Affected Municipalities' claims against Exxon Corporation, Exxon Shipping, Alyeska, the..·
,TAPL Fund or any other private defendant in the Oil Spill lifisation for recoveries
.. on reductions in Fisheries Business Tax revenues for 1989 or subsequent years. ',.'j
.... .. 5. AU'ITIOR1TY TO .EXI~CUTI~, Each person executing thls agreement'.
represents and warrants that he or she is fully authorized to execute tttts agreement 'Om.
behatf of the'party represented ~d to bind said party to the terms and conditions hereOf.
Each representative of an Affected Municipality must attach a resolution from its legislative
body authorizing said municipality to enter into _tht~ agreement. Signatures of parties hereto
may be entered .on separate copies of the agreement.
EFFE~ DATE, This Agreement shall be effective on the date all of the
Affected Munidpalities and the Department of Law have executed this Agreement and
provided the Department copies of duly enacted resolutions required by Paragraph $....If all..
of the Affected Municipalities have not executed this A~reement on or before June 30,1993,
the Settlement Payment will lapse into the general fund pursuant to Section 4, Chapter 111
FOR THE DEPAR~ OF-LAW
Date
Charles E. Cole
Attorney General
FOR THE AFFECTED MUNICW~
For the City of Kodiak
5
Date
Date ....
Date
For the City of Old Harbor
For the City of Ouzinkie'
Date
For the City of Pon I/oas
For Kodiak Island Boro~sh
For the City of ~
Date
Date ,
For lake & Peniumla Borough
For Kenai Peninsula Boroush
Date
Date
Daie ,,,,
Date
For the City of ~ldovia ' ,. ....' -
For the City of Cordova
Dat~
For the City of Whittier.
For the City of ~'
Date