Contract No. 1992-12EXXON FUNDS ADVANCE AGREEMENT
WHEREAS, both the Kodiak Island Borough (RIB) and the City of
Port Lions (Port Lions) 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, Port Lions is in need of funds in the amount of
$20,000 to pay for the costs of assessment and prosecution of its
damage claims;
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 Port Lions, for the common benefit.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. KIB will advance funds in the amount of $20,000 on behalf
of Port Lions to pay for the costs of assessment and prosecution of
damage claims in the Exxon litigation.
2. Port Lions will execute the enclosed Promissory Note to
secure repayment of the funds advanced upon demand.
3. Port Lions 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 May, 1992.
CITY OF PORT LIONS KODIAK ISLAND BOROUGH
By: �,� By:
Da C,
al=Serj nt, Mayor J rome Selby, May
ATTEST:
City o Port Lions6Clerk
6732\OPLD.001
EXXON FUNDS ADVANCE AGREEMENT - 2
ATTEST:
Kodiak Island Borough Clerk
PROMISSORY NOTE
$20,000.00
Port Lions, Alaska
May 5-- , 1992
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 Thousand Dollars
($20,000.00), with interest thereon from date at the rate of ten
and one-half percent (10.58) 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 on or before thirty (30) days from the
date of receipt of a written notice of demand for payment.
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 attorneys' fees in such suit or action.
The undersigned, whether principal surety guarantor
endorser or other party hereto,
bound; waives demand, protest
nonpayment; and expressly agrf
hereunder may be extended froi
given to the acceptance of furt
of security, all without in any
parties.
,
agrees to be jointly and severally
and notice of demand, protest and
es that this note or any payment
i time to time and consent may be
ier security, including other types
way affecting the liability of such
This Note, and the execution, delivery and performance
hereof, are governed by the laws of the State of Alaska.
CITY OF PORT LIONS
(,4fit, mayor
4732\OPLD.002
ITEM NO. /a?, D.
Kodiak Island Borough
of: 1%ri l !6, 1942 -
ITEM TITLE:
The City of Port Lions Exxon -Valdez Funds Advance
Agreement
SUMMARY STATEMENT
The City of Port Lions expended most of their available fund balances during
the oil spill time on various oil spill related projects which Exxon
subsequently refused to reimburse. As a result, they have had extremely
limited funds to assist in the preparation of documents for the continued
litigation. What is being proposed by the Agreement is to use some of the
Exxon funds which the Kodiak Island Borough has retained as an advance to the
City of Port Lions until such time as settlement or successful litigation is
completed with Exxon. At that point in time, the $20,000 would be refunded to
the Kodiak Island Borough. We are operating on the assumption that the funds
that have been retained would be included in the eventual resolution of our
differences with the Exxon Company. This agreement will allow Port Lions to
fully participate in the document collection for the litigation effort.
Administration recommends approval of this agreement as being in the best
interest of both the citizens of Port Lions and the Kodiak Island Borough.
FISCAL NOTES
[ J N/A Expenditure Account
Required No.
APPROVAL FOR AGENDA: Mayor 2'�_ �' ��
RECOMMENDED ACTION:
1
I�I,=
;I„
RE Eucn Funds Advance Agreement
Our File No. 478UPL-IA
(VIA HAND DELIVERY)
Q $ 92
ANCHORAGE OFFICE:
1200 1 STREET, SURE 704
ANCHORAGE. ALASKA 99501
TELEPHONE AND FAA
(907) 276-6100
SEATTLE OFFICE:
300 MUTUAL LIFE 9UILOING
EOS 11R81 AVENUE
SEATTLE, WASHINGTON 98104
TELEPHONE: (206) 622-163A
FACSIMILE: (2061623-7521
Duman Fields asked me to prepare the !Dan agreement Promissory Note for your
review and submission to the aaoern y. Please do not to call ifdocuments can be improved
in any way.
JHB:tah
c¢ Mr. Jack McFarland, Presiding Officer
Kodiak Island Borough Amembly
4732\Onk.001
JAMIN, EBELL, BOLGER & GENTRY
A PROFESSIONAL CORPORATION
/OEL H. BOLGER•
ATTORNEYS AT LAW
C. WALTER ESELL*
DUNCAN S. FIELDS
323 CA ROLYN STREET
DIANNA R. GENTRY
KODIAK, ALASKA 99610
MATTHEW D. JAMIN
WALTER W. MASON'
TELEPHONE: (907) 486-6024
JANE E. SAUER
ALAN L. SCHMITT
FACSIMILE: (907) 6666112
MICHAEL C. SCIACCA'
.ACMITT{9 TO ALASKA
REPLY TO KODIAK OFFICE
♦NO wAf H�NGTON MP[
L� OTN{y AOMITT[P f0
MEMORANDUM
1
I�I,=
;I„
RE Eucn Funds Advance Agreement
Our File No. 478UPL-IA
(VIA HAND DELIVERY)
Q $ 92
ANCHORAGE OFFICE:
1200 1 STREET, SURE 704
ANCHORAGE. ALASKA 99501
TELEPHONE AND FAA
(907) 276-6100
SEATTLE OFFICE:
300 MUTUAL LIFE 9UILOING
EOS 11R81 AVENUE
SEATTLE, WASHINGTON 98104
TELEPHONE: (206) 622-163A
FACSIMILE: (2061623-7521
Duman Fields asked me to prepare the !Dan agreement Promissory Note for your
review and submission to the aaoern y. Please do not to call ifdocuments can be improved
in any way.
JHB:tah
c¢ Mr. Jack McFarland, Presiding Officer
Kodiak Island Borough Amembly
4732\Onk.001
EXXON FUNDS ADVANCE AGREEMENT
WHEREAS, both the Kodiak Island Borough (RIB) and the City of
Port Lions (Port Lions) 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, Port Lions is in need of funds in the amount of
$20,000 to pay for the costs of assessment and prosecution of its
damage claims;
WHEREAS, a united and coordinated assessment of damages for
all local municipalities will promote recovery on KIB's damage
claims; and
WHEREAS, KIB desires to support claims asserted by local
municipalities, including Port Lions, for the common benefit.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS9
1. RIB will advance funds in the amount of $20,000 on behalf
of Port Lions to pay for the costs of assessment and prosecution of
damage claims in the Exxon litigation.
2. Port Lions will execute the enclosed Promissory Note to
secure repayment of the funds advanced upon demand.
3. Port Lions 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, 1992.
CITY OF PORT LIONS KODIAK ISLAND BOROUGH
By: By:
Daryl Serjeant, Mayor Jerome Selby, Mayor
4732\QPW.001
PROMISSORY NOTE
$20,000.00
Port Lions, Alaska
April , 1992
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 Thousand Dollars
and one-half with interest percent (10 5%)t per annumreon monate theat the a
te of ten
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 on or before thirty (30) days from the
date of receipt of a written notice of demand for payment.
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 attorneys' 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 PORT LIONS
By:
Daryl Serjeant, Mayor
4732\OPW.002
TO Jerome Selby, Mayor
Kodiak Island Bo
FROM Joel H. Bo
Jamin Ebw4B r entry
DATE : April 8, 1992
RE Exxon Funds Advance Agreement
Our File No. 4732-OPL-IA
(VIA HAND DELIVERY)
APA p 8 92
ANCHORAGE OFFICE:
1200 I STREET, SUITE 704
ANCHORAGE, ALASKA 99501
TELEPHONE AND FAX
(907) 278-6100
SEATTLE OFFICE:
300 MUTUAL LIFE BUILDING
605 FIRST AVENUE
SEATTLE, WASHINGTON 98104
TELEPHONE: (206) 622 7634
FACSIMILE: (206) 623-7521
Duncan Fields asked me to prepare the enclosed loan agreement and Promissory Note for your
review and submission to the assembly. Please do not hesitate to call if these documents can be improved
in any way.
JHB:tah
cc: Mr. Jack McFarland, Presiding Officer
Kodiak Island Borough Assembly
4732\OPLM.001
._IAMIN, EBELL, BOLGER & GENTRY
A PROFESSIONAL CORPORATION
JOEL H. BOLGER•
ATTORNEYS AT LAW
O. WALTER ESELV
DUNCAN S. FIELDS
323 CAROLYN STREET
DIANNA R. GENTRY
KODIAK, ALASKA 99615
MATTHEW D. JAMIN
WALTER W. MASON'
TELEPHONE: (907) 486-6024
JANE E. SAUER
ALAN L. SCHMITT
FACSIMILE: (907) 486-6112
MICHAEL 0. SCIACCA•
*ADMITTED TO ALASKA
REPLY TO KODIAK OFFICE
AND WASIPINGTON R$
ALL DTHEAS TED TO
ALA.ABAR
MEMORANDUM
TO Jerome Selby, Mayor
Kodiak Island Bo
FROM Joel H. Bo
Jamin Ebw4B r entry
DATE : April 8, 1992
RE Exxon Funds Advance Agreement
Our File No. 4732-OPL-IA
(VIA HAND DELIVERY)
APA p 8 92
ANCHORAGE OFFICE:
1200 I STREET, SUITE 704
ANCHORAGE, ALASKA 99501
TELEPHONE AND FAX
(907) 278-6100
SEATTLE OFFICE:
300 MUTUAL LIFE BUILDING
605 FIRST AVENUE
SEATTLE, WASHINGTON 98104
TELEPHONE: (206) 622 7634
FACSIMILE: (206) 623-7521
Duncan Fields asked me to prepare the enclosed loan agreement and Promissory Note for your
review and submission to the assembly. Please do not hesitate to call if these documents can be improved
in any way.
JHB:tah
cc: Mr. Jack McFarland, Presiding Officer
Kodiak Island Borough Assembly
4732\OPLM.001