HomeMy WebLinkAboutRESOLUTION 1989-63Suggested by.' Administration
City of Kenai
I%~OL~T~ON NO. 89-63
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AUTHORIZING
PARTICIPATION IN THE OIL SPILL COMMUNITY ASSISTANCE GRANT PROGRAM.
WHEREAS, the City of Kenai wishes to provide maintenance and operation of the
Kenai Municipal Dock Facility for use in the communtty~ and
WHEREAS, this municipality is an applicant for a grant in the amount of $41,760
under the Oil Spill Community Assistance authorized by State law.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that
the City Manager is authorized to negotiate and execute any and all documents
required for granting and managing Otl Spill Community Assistance grant funds
on behalf of this municipality.
BE IT FURTHER RESOLVED that the City ~anager is also authorized to execute any
subsequent amendments to the grant agreement to provide for changes to the
project within the scope of services or tasks, based upon the needs of the
project.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of September,
1989.
ATTEST:
Approved by Finance:
(8/31/89)
1
1781.IBBI
~0 IqDALeO. KENAI, AtAStCA
FAX g07.21L~-~14-
August 3.l, 1989
Exxon Claims Office
3201 "C" Street, Sut~e 310
Anchorage, Alaska 99503
Attn: Doug Branham
The City of Kenai is submitting this letter as a claim for rehubursement for
lost revenues to the Kenat Muntci~al Dock. The cla/m is for the months of July
and August, 19S9, and is for $41,760.
Attachment "A" consolidates the financial information, showing lost net revenue
for wharfage and petroleum sales. Details of transactions for each of these
accounts are also shown on the attached "Inquir~" printouts.
The Exxon Valdez oil spill resulted in closure of the Upper Cook Inlet drift
fishery. As a result, virtually the entire Kenai drift fleet sat idle and the
usual services provided by the Municipal Dock were not ut/l/zed. This resulted
in lost wharfage of $29,035 and lost net revenue on petroleum sales (based upon
our margin of markup) of $12,725, compared with corresponding months in 1988.
The ~untcipal Dock was built for and is primarily used-for unloading fish for
~he drift fleet and for fueling of the fleet. The lost revenue has negatively
impacted the dock operation and its ability to finance maintenance and
operation.
The-City-of Kenai also believes that its Etsh tax revenue-has-been-significantly
reduced as a result of the oil spill and subsequent fimhtngclosure. Data on
fish tax is collected by the State of Alaska on a calendar year basiS'andthe
amount of the cla/m cannot be determined until some t/me in 1990. We will be
submitting such a claim at a later date. The City is evaluating the /n~act of
~the oil spill on various non-profit agencies performing community services
within the city, and may also include those costs as a claim at a later date.
.'.Please process this claim as soon as possible. I wtll be waiting for your
response as I must file with theState.of Alaska's Oil Spill Assistance Grant
program by' September 15, 1989, if E~xon does not reimburse these losseS. Write
me at the above address or call (907) 283-7538 if you have questions.
Sincerely,
Charles A. Brown
Finance Director