93-43 The Execution Of The Fisheries Business Tax Allocation And Disbursement AgreementKodiak Island Borough
AGENDA STATEMENT
Meeting of: April 15, 1993
ITEM NO. 12.6.2.
RESOLUTION NO. 93-14 Authorizing the Execution of the
Fisheries Business Tax Allocation and Disbursement Agreement
The state attorney general's office has determined that they need
a resolution in addition to the agreement, which was previously
approved by the assembly. The attached resolution meets this need.
The previously approved agreement is also attached.
FISCAL NOTES
[X] N/A Expenditure Amount
Required Budgeted
APPROVAL FOR AGENDA:
RECOMMENDED ACTION:
Move to adopt Resolution No. 93-14.
Introduced by:
Requested by:
Drafted by:
Introduced:
Adopted:
KODIAK ISLAND BOROUGH
RESOLUTION NO. 93-14
Mayor Selby
State of
Alaska
Mayor Selby
04/15/93
A RESOLUTION AUTHORIZING THE EXECUTION OF THE FISHERIES BUSINESS
TAX ALLOCATION AND DISBURSEMENT AGREEMENT
WHEREAS, the State of Alaska has proposed a distribution of $1,500,000 of a
settlement between the State of Alaska and Alyeska, defendants in
State of Alaska v Exxon Corooration, et al. (3AN-89-6852, Civ.), which
amount was appropriated for distribution to municipalities that suffered
a loss of state fisheries business tax revenues in 1989; and
WHEREAS, 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
WHEREAS, the Kodiak Island Borough Assembly has reviewed said Agreement and
has consulted counsel regarding the rights, obligations and liabilities of
the Borough under the Agreement and is aware of its implications; and
WHEREAS, the Assembly finds the execution of said Agreement would be in the
best interests of the Borough;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: The Agreement is approved and the mayor is authorized and directed to
execute the Agreement on behalf of the Borough.
Resolution No. 93-14
Kodiak Island Borough, Alaska Page 1 of 2
ADOPTED BY THE KODIAK ISLAND BOROUGH ASSEMBLY
THIS DAY OF 1993
KODIAK ISLAND BOROUGH
Jerome M. Selby, Borough Mayor
Jack L. McFarland, Presiding Officer
ATTEST:
Donna F. Smith, Borough Clerk
Kodiak Island Borough. Alaska Resolution No. 93-14
Page 2 of 2
FISHERIES BUSINESS TAX ALLOCATION AND DISBURSEMENT AGREEMENT
THIS AGREEMENT is entered into this day of . 1993 between the State
of Alaska Department of Law and Affected Municipalities pursuant to Chapter 111 SLA
..-
WHEREAS, late in the evening of March 23 or early in the morning of March 24,
1989 the T/V EXXON VALDE4 owned by the Exxon Shipping Company, went aground
on Bligh Reef in Prince William Sound, Alaska and as a result of the grounding,
approximately 11 million gallons 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 William Sound and the area outside the Sound impacted by the Oil Spill;
and
WHEREAS, these closures resulted in reduced fisheries business tax revenues for the
State tinder AS 43.75 for 1989 and for certain municipalities which would have shared in
those lost revenues under AS 43.75.130; and
WHEREAS, in August 1989, the State of Alaska filed an action in the Superior
Court for the State of Alaska, Third Judicial District, identified as State of Alaska v. Exxon
Corporation, et al.. Civil No. 3AN-89-6852, against, inter , Alyeska Pipeline 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 Pipeline Company, Phillips Alaska Pipeline Corporation,
and Unocal 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 Alaska in February 1992; and
WHEREAS, pursuant to an Agreement and Consent Decree entered November 25,
1992 by the United States District Court for the District of Alaska ("Consent Decree"), the
claims of the State and the United States against Alyeska and the Alyeska Owner
Companies were settled; and
WHEREAS, pursuant to Paragraph 13 of the Consent Decree, Alyeska has paid the
State $1,500,000 ("Settlement Payment") for 1989 Fisheries Business Tax revenues under AS
43.75, which are to be refunded to local governments under AS 43.75.130; and
WHEREAS, pursuant to Chapter 111, SLA 1992, the $1,500,000 Settlement Payment
was appropriated to the Department of Law for distribution to the municipalities that
suffered a loss of revenue under AS 43.75.130 caused by the Oil Spill; and
WHEREAS, pursuant to Chapter 111, SLA 1992, the Department of Law can not
distribute these funds until there is an agreement between all potentially affected
municipalities and the department as to the method and amount of allocation; and
WHEREAS, the City of Valdez, a potentially affected municipality, has waived its
right to participate in the $1,500,000 Settlement Payment.
The parties hereto covenant and agree as follows:
1. PARTIES. For purposes of this agreement, the Parties are defined as follows:
(a) "Department of Law" or "Department" means and includes the
Department of Law and the State of Alaska in all its capacities
including all departments, divisions, independent boards, and agencies
2
of state government.
(b) "Affected Municipalities" means all cities, unified municipalities and
boroughs whose FY90 proceeds under AS 43.75.130 were reduced as
a result of the Oil Spill. and who have not waived their right to
participate in the distribution of the Settlement Payment. These
affected municipalities are:
(1)
Kodiak
(2)
Old Harbor
(3)
Larsen Bay
(4)
Ouzinlde
(5)
Port Lions
(6)
Kodiak Island Borough
(7)
Chignik
(8)
Lake & Peninsula Borough
(9)
Kenai Peninsula Borough
(10)
Kenai
(11)
Homer
(12)
Seldovia
(13)
Cordova
(14)
Whittier
(15)
Seward
2. MET[JOD AND [,LOCATION QUAYMEn. The Settlement Payment
shall be distributed by the Department of Law to the Affected Municipalities in the amounts
shown below. The payments shall be made by check placed in the United States mail,
postage prepaid to the business address of the municipality, unless otherwise directed by the
municipality in writing, within seven days of the effective date of this agreement.
Affected M,nt icinalities
(1) Kodiak
AID=
$179,884.50
(2) Old Harbor
3,939.00
(3) Larsen Bay
26,260.50
(4) Ouzinlde
3,939.00
3
(5)
Port lions
7,878.00
(6)
Kodiak Island Borough
303,307.50
(7)
Chignik
92,778.00
(8)
Lake & Peninsula Borough
10,308.00
(9)
Kenai Peninsula Borough
414,638.62
(10)
Kenai
147,379.12
(11)
Homer
64,628.63
(12)
Seldovia
6,970.13
(13)
Cordova
157,567.50
(14)
Whittier
5,047.50
(15)
Seward
37,737.00
• I 1111 11
AFFECTED M1JhUCIPALMES The Affected Municipalities represent that they are the
only entities entitled to share in the Settlement Payment and that the method of allocation
fairly distributes the Settlement Payment amongst themselves in a manner consistent with
AS 43.75.130. The Affected Municipalities release the Department of Law from any and
all claims for any portion of the Settlement Payment or for any amount directly or indirectly
related to it. The Affected Municipalities shall jointly and severally hold the Department
of Law harmless and shall fully indemnify the Department from any and all costs, fees, or
awards (including, without limitation, all litigation costs) that may arise from any and all
claims relating to the execution of this agreement or the distribution or allocation of the
Settlement Payment, including, without limitation, claims for adjustments to allocations set
forth under this Agreement, claims by persons or entities not identified in paragraph 1(b)
asserting a right to participate in the allocation, and claims for interest.
acknowledge 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 Trans Alaska Pipeline
4
Liability Fund (TAPL Fund). Nothing in this Agreement is intended to limit or affect the
Affected Municipalities' claims against Exxon Corporation, Exxon Shipping, Alyeska, the
TAPL Fund or any other private defendant in the Oil Spill litigation for recoveries based
on reductions in Fisheries Business Tax revenues for 1989 or subsequent years.
5. AI T MORTTY TO EXECUTE. Each person executing this agreement
represents and warrants that he or she is fully authorized to execute this agreement on
behalf of the party represented and 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 this agreement. Signatures of parties hereto
may be entered on separate copies of the agreement.
6. EFFECTIVE DATE. This Agreement shall be effective on the date all of the
Affected Municipalities and the Department of Law have executed this Agreement and
provided the Department copies of duly enacted resolutions required by Paragraph 5. If all
of the Affected Municipalities have not executed this Agreement on or before June 30, 1993,
the Settlement Payment will lapse into the general fund pursuant to Section 4, Chapter 111
SLA 1992.
FOR THE DEPARTMENT OF LAW
Date
Charles E. Cole
Attorney General
Date
FOR THE AFFECTED MUNICIPALITIES
For the City of Kodiak
M
Date
Date
Date
Date
Date
Date
Date
Date
For the City of Old Harbor
For the City of Larsen Bay
For the City of Ouzinkie
For the City of Port Lions
For Kodiak Island Borough
For the City of Chiguik
For Lake & Peninsula Borough
For Kenai Peninsula Borough
Date
Date
Date
Date
Date
Date
For the City of Kenai
For the City of Homer
For the City of Seldovia
For the City of Cordova
For the City of Whittier
For the City of Seward
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