HomeMy WebLinkAboutRes2010-010 Sponsored by: Mayor Dunham
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING THE ALASKA RAILROAD CORPORATION AND
AURORA ENERGY SERVICES, LLC IN THEIR ONGOING EFFORTS TO
CONDUCT BUSINESS IN SEWARD AND PROTECT THE ENVIRONMENT
WHILE ABIDING BY STATE AND FEDERAL ENVIRONMENTAL LAWS
AND REGULATIONS
WHEREAS, the Seward Coal Loading Facility was originally built in 1984 as an economic
development project of the State of Alaska with the support of Usibelli Coal Mine and the City of
Seward, by a loan from the Alaska Industrial Development and Export Authority(AIDEA); and
WHEREAS, this facility allows Alaskan coal to be exported by ship to international
markets; and
WHEREAS, at the urging from the Seward community and Senator Ted Stevens, the Alaska
Railroad received a federal grant to purchase the Seward coal loading facility from then- owners
Hyundai Merchant Marine and AIDEA in 2003, thus preserving the export coal business in Alaska;
and
WHEREAS, the City recognizes the vital importance of the coal loading facility and the
Alaska Railroad for the viability and existence of Seward, and to the entire state of Alaska; and
WHEREAS, the Alaska Railroad Corporation and Aurora Energy Services, LLC were
recently sued by the Trustees for Alaska on behalf of the Alaska Community Action on Toxics and
Alaska Chapter of the Sierra Club under the Federal Water Pollution Control Act on December 28,
2009; and
WHEREAS, last year was a record year and saw the second greatest shipment of coal from
Seward in the history of the facility; and
WHEREAS, Alaska' s low sulfur coal is in increasing demand throughout the international
market, in large part because Alaska' s coal can be mixed with other coal to reduce the environmental
impacts; and
WHEREAS, the Seward City Council and the community take public health concerns
seriously and support all mitigation efforts in environmental stewardship; and
WHEREAS, the City is not aware of any facts to support allegations of medical harm caused
by the activities at the Seward coal- loading facility; and
WHEREAS, the Alaska Railroad Corporation and Aurora Energy Services, LLC have spent
approximately $1 million dollars on safety, operational and environmental improvements which are
significant environmental upgrades, and have been proactive and conscientious in meeting EPA and
ADEC regulations and permit requirements; and
WHEREAS, we are advised that in the short time since Aurora Energy Services, LLC has
taken over operation of the facility, it has implemented a Standard Operating Procedure for Dust
Control, a Storm Water Pollution Prevention Plan, updated the Spill Prevention Containment and
Countermeasures Plan, and is in compliance with the new Multisector General Permit; and
WHEREAS, since taking over the Seward coal loading facility in February 2007, the Alaska
Railroad Corporation and Aurora Energy Services, LLC have demonstrated a heightened
commitment to environmental stewardship, have made extensive capital and operational
improvements, improved environmental safeguards and have shown a conscientious willingness for
public outreach, and
WHEREAS, Alaska Railroad Corporation and Aurora Energy Services, LLC are also in the
process of resolving two past notices of violations regarding air quality ; and
WHEREAS, as representatives of the citizens of Seward, the City wishes to show its support
to the Alaska Railroad Corporation and Aurora Energy Services, LLC in the defense of this lawsuit
and the ongoing efforts toward safety and environmental stewardship.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The above recitals are incorporated herein by references as findings of the City.
Section 2. The Seward City Council is encouraged by the efforts made by the Alaska
Railroad Corporation and Aurora Energy LLC in their ongoing efforts to protect the environment and
meet the requirements of state and federal environmental laws and regulations related to the Seward
Coal Loading Facility.
Section 3. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 25 day of
January, 2010 .
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -010
THE CITY OF SEWARD, ALASKA
2 AO
i
it and E. Dunham, Mayor
AYES: Valdatta, Bardarson, Smith, Keil, Shafer, Amberg, Dunham
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Ji: Lewis C C
ty Clerk
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(City Seal) .•` -� S E „ ° p o ly e,
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Agenda Statement
Meeting Date: January 25, 2010
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To: Mayor Dunham, City Council Members
From: Jean Lewis, City Clerk 1 sr.P
Agenda Item: Supporting the Alaska Railroad Corporation and Aurora
Energy LLC
BACKGROUND & JUSTIFICATION:
A lawsuit has been filed against the Alaska Railroad Corporation and Aurora Energy LLC by the
Trustees for Alaska on behalf of the Alaska Community Action on Toxics and the Alaska Chapter of
the Sierra Club, for alleged violations of the Clean Water Act. The Alaska Railroad Corporation and
Aurora Energy LLC own and operate the Seward Coal Loading Facility, which is of vital economic
importance to the City of Seward and the State of Alaska.
The City of Seward wants to make it known that statements made by a few individuals in the media,
to the effect that "coal dust has been blanketing the town for years and putting the citizens of Seward
at medical risk" were absolutely false and that these individuals did not speak for all residents of
Seward.
The City Council wishes to support the Alaska Railroad Corporation and Aurora Energy LLC in
defense of this lawsuit and publicly support their ongoing efforts toward safety and environmental
stewardship, and authorize the City Manager and City Attorney to provide administrative and legal
support where needed. The City Council also is satisfied with these company' s efforts in protecting
the environment and meeting requirements of state and federal environmental laws and regulations
related to the Seward Coal Loading Facility.
INTENT:
To support the Alaska Railroad Corporation and Aurora Energy LLC against this lawsuit and dispel
false reporting.
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures or Other Plans or Policies: Not applicable
FISCAL NOTE:
Without knowing the level of support to be provided, the magnitude of this financially to the City is
unknown. The resolution as written does indicate "administrative and legal support." Keep in mind
any legal support provided will cost the city money and could possibly be substantial depending on
the level of support.
Approved by Finance Department: JA,gt
ATTORNEY REVIEW: Yes
RECOMMENDATION: Approve Resolution 2010 -010, supporting the Alaska Railroad
Corporation and Aurora Energy LLC in their ongoing efforts to conduct business in Seward and
protect the environment while abiding by state and federal environmental laws and regulations.