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93-08 Exxon Funds Advance AgreementEXXON FUNDS ADVANCE AGREEMENT WHEREAS, both the Kodiak Island Borough (RIB) and the City of Ouzinkie (Ouzinkie) have asserted claims against Exxon Corporation and Alyeska Pipeline Company in connection with the oil spill from the M/V Exxon Valdez (the Exxon litigation); WHEREAS, Ouzinkie is in need of funds in the amount of $25,000 to pay for the costs of replacement of equipment damaged or deteriorated as a result of the spill response; WHEREAS, a united and coordinated assessment of damages for all local municipalities will promote recovery on KIB's damage claims; and WHEREAS, RIB desires to support claims asserted by local municipalities, including Ouzinkie, for the common benefit. NOW THEREFORE, the parties agree as follows: 1. RIB will advance funds in the amount of $25,000 on behalf of Ouzinkie in order to provide local matching funds for the replacement of heavy equipment upon the award to Ouzinkie of an RDA Grant in the amount of approximately $80,000 for purchase of the equipment. 2. Ouzinkie will execute the enclosed Promissory Note to secure repayment of the funds advanced ur--a demand. 3. Ouzinkie agrees to repay all funds advanced upon receipt of any funds from any judgment, settlement or other recovery in the Exxon litigation. J DATED this fh /S day of April, 1993. CITY OF OUZINKIE By: ask Chichenoff, Mayor IF ATTEST: "a✓ J. A av�'X City of Ouzinkie Clerk KODIAK ISLAND BOROUGH By: Je me Selby, Mayor �Ir ATTEST: 6114'a e Donna Smith, Borough Clerk 4702\353D.001 PROMISSORY NOTE $25,000.00 Ouzinkie, Alaska April 1_, 1993 FOR VALUE RECEIVED, the undersigned promises to pay to the order of the KODIAK ISLAND BOROUGH, 710 Upper Mill Bay Road, Kodiak, Alaska 99615 the principal sum of Twenty Five Thousand Dollars ($25,000.00), with interest thereon from date at the rate of ten and one half percent (10.5%) per annum on the balance remaining from time to time unpaid. This Note, or any portion of the amount due hereunder, shall be payable at the usual place of business of the payee above named, or at such other place as the holder hereof may in writing designate, in Kodiak, Alaska in monthly installments of $2,500.00, including interest, beginning September 11 1993 and the first of each month thereafter until the balance of principal and interest have been paid in full. If any suit or action is instituted to collect this note, or any part hereof, the undersigned promises and agrees to pay, in addition to the costs and disbursements provided by statute, a reasonable sum as attorney's fees in such suit or action. The undersigned, whether principal, surety, guarantor, endorser or other party hereto, agrees to be jointly and severally bound, waives demand, protest and notice of demand, protest and nonpayment; and expressly agrees that this note or any payment hereunder may be extended from time to time and consent may be given to the acceptance of further security, including other types of security, all without in any way affecting the liability of such parties. This Note, and the execution, delivery and performance hereof, are governed by the laws of the State of Alaska. CITY OF OUSINKIS Bye acc Chicheno , Mayor 4702\333n.003 13:01 ALYES<A PIPELINE P. 22 CITY OF OUZINKIE P. O. BOX 109 ei1MK1E OUZINKIE, ALASKA 99644 (*Or) 680-2204 OCZ00 may 6, 1993 Mayor Jerome Seibr Kodiak Island Borouqh 710 Mill Bar Road Kodiak, Alaska 99615 Dear Jerome. We are in the process of having our new excavator shipped to Ou2inkis by Tope Equipment Company of Anchorage. They are requesting payment of the $25,000.00 in which the KIB has agreed to loan the City of Outinkie. To speed the process we would like for the borough to transfer the $25,000.00 into our account at the National Bank of Alaska, Kodiak Branch. Our account number is 10517200. Also could you pleas# notify us when the transaction has been completed. We greatly appreciate the assistance of you and the borough assembly. f/ 3iwncerelr, I tack Chichenoff Mayor of Ou2lnkie Kodiak Island Borough AGENDA STATEMENT Meeting of: April 1, 1993 ITEM NO. 12.D.4 Contract No. 93-08 Approval of Funding Advance Agreement and Promisory Note for the City of Ouzinkie. The City of Ouzinkie overfilled their landfill during the Exxon Valdez Oil Spill and need to renovate the landfill. They have obtained an $80,000 grant from the State of Alaska for the purchase of a new excavator for this purpose, but a low bid of $105,000 was received by the City. They are requesting a fund advance of $25,000 from the Exxon funds the Borough still has on hand to complete this purchase. They will repay the advance with City funds and/or Exxon Valdez settlement funds. FISCAL NOTES Budget Line Item 274-280-430-140 [X] N/A Expenditure Amount Required $25.000 Budgeted 41.000 APPROVAL FOR AGENDA: RECOMMENDED ACTION: Move to approve the Funding Advance Agreement and Promisory Note for the City of Ouzinkie in an amount not to exceed $25,000. City of Ouzinkie P.O. Box 109 Ouzinkie, Alaska 99644 (907) 680-2209 March 22, 1993 Honorable Mayor Jerome Selby Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Dear Jerome, As previously mentioned to you the City of Ouzinkie has needed a larger excavator especially to renovate the Sanitary landfill. The city was awarded a grant from the Rural Development Assistance Program to purchase a piece of equipment for this purpose. We have requested proposals from eight different companies which responded according to our conditions. The city council at a special meeting held on March 22, 1993 unanimously voted to except the proposal of one of the companies that meet all our standards including extra benefits on the warranty compared to the others. The problem is that none of the equipment including freight and other essential options that would meet our standards are in the cost range of the grant that was awarded to us. Therefore the city council at our meeting of March 22, 1993 authorized me to request additional financing from the Kodiak Island Borough. After considering the price of the Equipment, freight and the hydraulic thumb, we will need an additional $25,000.000 and this is the sum we are requesting. I understand your next assembly meeting is on April 1, 1993. We'd appreciate it if you could notify us of the assemblies decision as soon as possible. Sincerelyt. City of ouo"i e Zack Chichonoff Mayor JAMIN, EBELL, BOLGER & GENTRY The Honorable Jerome Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Ouzinkie Backhoe Funding Our File No. 4702-353 Dear Jerome: ANCHORAGE OFFICE: 1200 1 STREET, SUITE 904 ANCHORAGE, ALASKA 99501 TELEPHONE AND FAX (907) 278 6100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 605 FIRST AVENUE SEATTLE, WASHINGTON ..OR TELEPHONE: (206) 111 7634 FACSIMILE: (206) 623'T521 Enclosed is the advance agreement and promissory note revised as you requested. Feel free to call if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY el H. Bolger JHB:js Enclosures cc: Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\353L-002 A PROFESSIONAL CORPORATION JOEL H. BOLGER' ATTORNEYS AT LAW C. WALTER EBELL' 323 CAROLYN STREET DUNCAN S. FIELDS DIANNA R. GENTRY KODIAK, ALASKA 99615 MATTHEW D. JAMIN WALTER W. MASON' TELEPHONE: (907) 4866024 ALAN L. SCHM17T FACSIMILE: (907) 486-6112 IADMITTED ALASKA AND OWASHINGTON BARS T D� ALL OTIERE ALASAA BAR REPLY TO KODIAK OFFICE March 24, 1993 The Honorable Jerome Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Ouzinkie Backhoe Funding Our File No. 4702-353 Dear Jerome: ANCHORAGE OFFICE: 1200 1 STREET, SUITE 904 ANCHORAGE, ALASKA 99501 TELEPHONE AND FAX (907) 278 6100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 605 FIRST AVENUE SEATTLE, WASHINGTON ..OR TELEPHONE: (206) 111 7634 FACSIMILE: (206) 623'T521 Enclosed is the advance agreement and promissory note revised as you requested. Feel free to call if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY el H. Bolger JHB:js Enclosures cc: Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\353L-002 EXON FUNDS ADVANCE AGREEMENT WHEREAS, both the Kodiak Island Borough (RIB) and the City of Ouzinkie (Ouzinkie) have asserted claims against Exxon Corporation and Alyeska Pipeline Company in connection with the oil spill from the M/V Exxon Valdez (the Exxon litigation); WHEREAS, Ouzinkie is in need of funds in the amount of $20,000 to pay for the costs of replacement of equipment damaged or deteriorated as a result of the spill response; WHEREAS, a united and coordinated assessment of damages for all local municipalities will promote recovery on KIB's doge claims; and local WHEREAS, RIB desires to support claims asserted by municipalities, including Ouzinkie, for the common benefit. NOW THEREFORE, the parties agree as follows= 1. KIB will advance funds in the amount of $25,000 on behalf of puzinkie in order to provide local matching funds for the replacement of heavy equipment upon the award to ouzinkie of an RDA Grant in the amount of approximately $80,000 for purchase of the equipment. 2. Ouzinkie will execute the enclosed Promissory Note to secure repayment of the funds advanced upon demand. 3. Ouzinkie agrees to repay all funds advanced upon receipt of any funds from any judgment, settlement or other recovery in the Exxon litigation. DATED this day of April, 1993. CITY OF OUZINRIE By: Thomas Quick, Mayor ATTEST: City of Ouzinkie Clerk KODIAK ISLAND BOROUGH By: Jerome Selby, Mayor ATTEST: Donna Smith, Borough Clerk 4702\353D.001 M=x FUNDS ADVANCE AOAS@DINT - 2 PROMISSORY NOTE $25,000.00 Ouzinkie, Alaska April , 1993 FOR VALUE RECEIVED, the undersigned promises to Pay to Mill Bay Road, the order of the KODIAK ISLAND BOROUGH, 710 Upper Kodiak, Alaska 99615 the principal sum of Twenty Five Thousand Dollars ($25,000.00), with interest thereon from date at the rate of ten and one half percent (10.5%) per annum on the balance remaining from time to time unpaid. This Note, or any portion of the amount due hereunder, shall be payable at the usual place of business of the payee above named, or at such other place as the holder hereof may in writing designate, in Kodiak, Alli in Septehly mber 1 t al1993ents of and he2first0Of including interest, beginning ember each month thereafter until the balance of principal and interest have been paid in full. If any suit or action is instituted to collect this note, or any part hereof, the undersigned promises and agrees to sta ut,,in addition to the costs and disbursements provided by reasonable sum as attorney's fees in such suit or action. The undersigned, whether principal, surety, guarantor, endorser or other party hereto, agrees to be jointly and severally bound, waives demand, protest and notice of demand, protest and nonpayment; and expressly agrees that this note or any payment hereunder may be extended from time to time and consent may be given to the acceptance of further security, including other types of security, all without in any way affecting the liability of such parties. This Note, and the execution, delivery and performance hereof, are governed by the laws of the State of Alaska. CITY OF OUZINKIE By: Thomas Quick, Mayor 4702\353D.002