Laserfiche WebLink
Council Agenda Statement <br /> e s alt. <br /> Meeting Date: May 29, 2012 <br /> From: James Hunt, City Manager q <br /> Agenda Item: Payment of Required Legal Settlement with RBCA et al <br /> BACKGROUND & JUSTIFICATION: <br /> A lawsuit was filed against the City of Seward ( "City ") in 2008 by the Resurrection Bay Conservation <br /> Alliance, et. al ( "RBCA "), alleging contamination by the City, into Resurrection Bay. The plaintiffs did <br /> not produce evidence of any kind, supporting the allegations of contamination. However, as a result of <br /> that lawsuit, the court determined that the City had 90 days to apply for a NPDES permit, and that both <br /> parties would bear their own costs and fees in the matter. (The City had previously attempted to apply <br /> for a permit but was informed by EPA that because the City did not conduct boat repairs or otherwise <br /> operate an industrial vessel repair and maintenance facility, a permit was not necessary.) However, <br /> RBCA appealed the court's ruling and requested costs and attorney's fees since the outcome of the case <br /> required that the City of Seward take action (namely, to apply for a NPDES permit). Based on that <br /> ruling, RBCA alleged that they were the prevailing party and entitled to recovery of their costs and fees. <br /> On February 24, 2012, after two appeals to the Ninth Circuit Court of Appeals, the United States <br /> District Court for the District of Alaska amended the decision to require that attorney's fees and costs in <br /> the amount of $92,399.13 were to be paid by the City to RBCA. This reflects approximately 60% of the <br /> amount RBCA asked the court to order the City to pay. Neither party appealed. The court's ruling is <br /> binding on the City of Seward and the City is required to remit this payment. Upon approval of the city <br /> manager, payment in the amount of $92,399.13 has been remitted to the Trustees of Alaska as requested <br /> by the plaintiff's attorneys, and the administration is seeking the City Council's after - the -fact approval <br /> of an appropriation for this purpose. <br /> INTENT: <br /> The intent of this action is to appropriate funds to pay for a judgment mandated by the U.S. District <br /> Court. <br /> CONSISTENCY CHECKLIST: <br /> Yes No N/A <br /> 1. Comprehensive Plan (document source here): <br /> -- -- X <br /> 2. Strategic Plan (document source here): <br /> I - -- — X <br /> 3. Other (list): See attached ruling from U.S District Court X <br /> ATTORNEY REVIEW: X Yes No <br /> FISCAL NOTE: <br /> The budget does not include funding for this settlement, so the amount of $92,399.13 will come from <br /> the Harbor Enterprise Fund Reserves. Approved by Finance Department: 3 i 4 , _ 1 <br /> RECOMMENDATION: <br /> City Council authorize after - the -fact approval of an appropriation in the amount of $92,399.13, and <br /> payment to Trustees of Alaska, as required by the U.S. District Court. <br /> n <br />