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93-14 Advance Agreement And Promissory Note For The City Of Akhiok Generator Replacement Purchase$10,000.00 ,/7- 43-/5" Akhiok, Alaska April I',' , 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 Ten Thousand Dollars ($10,000.00), with interest thereon from num odate abal the rarema ning often and one half percent (10.5%) per from time to time unpaid. This Note, including principal and interest, 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 on or before August 31, 1993. If any suit or action is instituted to collect this note, or any part hereof, the undersigned promises and agrees to pay, in addition sements reasonable tothe costs and fees in provided in such suitorstatute, a 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 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 AKHIOK By: i�uv �in1 Marvin Agn Mayor 1702\389D.002 EXXON FUNDS ADVANCE AGREEMENT WHEREAS, both the Kodiak Island Borough (KIB) and the City of Akhiok (Akhiok) 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, Akhiok is in need of funds in the amount of $10,000 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 Akhiok, for the common benefit. NOW THEREFORE, the parties agree as follows: 1. RIB will advance funds in the amount of $10,000 on behalf of Akhiok to match local funds for the purchase of a Perkins generator. 2. Akhiok will execute the enclosed Promissory Note to secure repayment of the funds advanced upon demand. 3. Akhiok 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 AKHIOK By: Marvin Agn , Mayor ATTEST: i42 1 >.ty df Akhiok Clerk KODIAK ISLAND BOROUGH By: ti��>�, �. Je ome Selby, May_ ATTEST: �07 2��rr T Donna Smith, Borough Clerk 1702\3890.001 EXXON FUNDS ADVANCE AGREEMENT - 2 ITEM NO. 12.D.4 Kodiak Island Borough AGENDA STATEMENT Meeting of: May 6, 1993 ITEM TITLE: Contract No. 93-14 APPROVAL OF ADVANCE AGREEMENT AND PROMISSORY NOTE FOR THE CITY OF AKHIOK TO PURCHASE A REPLACEMENT GENERATOR. SUMMARY STATEMENT The City of Akhiok's main generator recently self-destructed even though being maintained at the time by Alaska Power Systems, Inc. The generator was an older model and the city claims it had excessive wear during 1989 due to oil spill activities. The new generator will cost $20,000 and the city has $10,.000 available but needs help for a short time period. The new generator uses considerably less fuel per hour and the savings will allow a rapid pay back to the Borough of the loaned Exxon funds. This is the same agreement we have used with Port Lions and Ouzinkie using Exxon funds. FISCAL NOTES (XI N/A Acct # 274-280-430-140 Expenditure Amount Required $10,000 Budgeted $41,000 APPROVAL FOR AGENDA: Mayo RECOMMENDED ACTION: Move to .approve the Advance Agreement and Promissory Note for the City of Akhiok to purchase a replacement generator. JAMIN, EBELL, BOLGER & GENTRY April 20, 1993 The Honorable Jerome Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Akhiok Generator Funding Our File No. 4702-389 Dear Jerome: ANCHORAGE OFFICE: 1200 1 STREET, SUITE 10. ANCHORAGE, ALASKA 99501 TELEPHONE AND FAX (A)CO 276-8100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 805 FIRST AVENUE SEATTLE, WASHINGTON 98109 TELEPHONE: (206) 622-7634 FACSIMILE: (206) 623-7521 MR 2193 Enclosed is an Advance Agreement and Promissory Note with respect to the request for a funds advance to the City of Akhiok for purchase of a generator for replacement of equipment damaged during the Exxon Valdez spill response. Please let me know if these documents require any modification. Feel free to call if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY Alan L. Schmitt ALS: lab Enclosures cc: Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\389L.001 A PROFESSIONAL CORPORATION JOEL F. BOLGER' ATTORNEYS AT LAW C. WALTER EBELL' 323 CAROLYN STREET DUNCAN S. FIELDS DIANNA R. GENTRY KODIAK, ALASKA 99615 MATTHEW D. JAMIN WALTER W. MASON' TELEPHONE: (907) 486'6024 ALAN L. SCHMITT FACSIMILE: (907) 466-6112 IAOMITTEOTOALASAA AND WAS WASHINGTON AR$ OTHERS REPLY TO KODIAK OFFICE ADMITTED TO ALASIA BAR April 20, 1993 The Honorable Jerome Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: Akhiok Generator Funding Our File No. 4702-389 Dear Jerome: ANCHORAGE OFFICE: 1200 1 STREET, SUITE 10. ANCHORAGE, ALASKA 99501 TELEPHONE AND FAX (A)CO 276-8100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 805 FIRST AVENUE SEATTLE, WASHINGTON 98109 TELEPHONE: (206) 622-7634 FACSIMILE: (206) 623-7521 MR 2193 Enclosed is an Advance Agreement and Promissory Note with respect to the request for a funds advance to the City of Akhiok for purchase of a generator for replacement of equipment damaged during the Exxon Valdez spill response. Please let me know if these documents require any modification. Feel free to call if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY Alan L. Schmitt ALS: lab Enclosures cc: Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\389L.001