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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -036
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING FUNDS FOR A LEGAL JUDGMENT WITH
RBCA IN THE AMOUNT OF $92,399.13
WHEREAS, the City of Seward was named defendant in a lawsuit brought in 2008 against
the City by the Resurrection Bay Conservation Alliance, et aL; and
WHEREAS, the outcome of that lawsuit is that the City is now authorized to operate an
industrial vessel repair and maintenance facility at the upland boat storage area and to discharge
contaminated stormwater allowed by a National Pollutant Discharge Elimination System ( "NPDES ")
permit, and the court agreed with the City that the City is not operating an industrial vessel repair and
maintenance facility at the small boat harbor, and that the City is not discharging metals and other
pollutants into Resurrection Bay, and that the City is not required to remove the alleged pollutants
from the Bay that RBCA alleged to be present but admitted that there was no evidence; and
WHEREAS, the court originally held that both parties would bear their own costs and fees in
the matter; and
WHEREAS, the plaintiffs appealed the matter twice and requested costs and attorney's fees
since the outcome of the case required that the City of Seward take action (namely, to apply for a
NPDES permit), and plaintiffs alleged that they prevailed on the matter and were, therefore, entitled
to costs and fees; and
WHEREAS, the United States District Court for the District of Alaska ruled on February 24,
2012 that attorney's fees and costs were to be awarded to RBCA, et al. in the amount of $92,399.13.
or approximately 60% of the amount requested by RBCA, and the City is obliged to make such
payment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. Funding in the amount of $92,399.13 is hereby appropriated from the Harbor
Enterprise Fund Reserves Account 401- 0000 -3050 to Legal Settlement Account 401 - 4370 -5172.
Section 2. The City Manager is hereby directed to make payment in the amount of
$92,399.13 to RBCA, et al., in Case No. 3:06 -cv- 00224 -RRB, as mandated by the U.S. District
Court for the District of Alaska.
Section 3. This resolution shall take effect immediately upon its adoption.
ice.
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -036
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 29 day of
May, 2012.
THE CITY OF SEWARD, ALASKA
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Da 'd Seawar • , ayor
AYES: Valdatta, Bardarson, Keil, Casagranda, Terry, Seaward
NOES: Shafer
ABSENT: None
ABSTAIN: None
ATTEST:
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City Cle �� a SEj d.
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Council Agenda Statement
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Meeting Date: May 29, 2012
From: James Hunt, City Manager q
Agenda Item: Payment of Required Legal Settlement with RBCA et al
BACKGROUND & JUSTIFICATION:
A lawsuit was filed against the City of Seward ( "City ") in 2008 by the Resurrection Bay Conservation
Alliance, et. al ( "RBCA "), alleging contamination by the City, into Resurrection Bay. The plaintiffs did
not produce evidence of any kind, supporting the allegations of contamination. However, as a result of
that lawsuit, the court determined that the City had 90 days to apply for a NPDES permit, and that both
parties would bear their own costs and fees in the matter. (The City had previously attempted to apply
for a permit but was informed by EPA that because the City did not conduct boat repairs or otherwise
operate an industrial vessel repair and maintenance facility, a permit was not necessary.) However,
RBCA appealed the court's ruling and requested costs and attorney's fees since the outcome of the case
required that the City of Seward take action (namely, to apply for a NPDES permit). Based on that
ruling, RBCA alleged that they were the prevailing party and entitled to recovery of their costs and fees.
On February 24, 2012, after two appeals to the Ninth Circuit Court of Appeals, the United States
District Court for the District of Alaska amended the decision to require that attorney's fees and costs in
the amount of $92,399.13 were to be paid by the City to RBCA. This reflects approximately 60% of the
amount RBCA asked the court to order the City to pay. Neither party appealed. The court's ruling is
binding on the City of Seward and the City is required to remit this payment. Upon approval of the city
manager, payment in the amount of $92,399.13 has been remitted to the Trustees of Alaska as requested
by the plaintiff's attorneys, and the administration is seeking the City Council's after - the -fact approval
of an appropriation for this purpose.
INTENT:
The intent of this action is to appropriate funds to pay for a judgment mandated by the U.S. District
Court.
CONSISTENCY CHECKLIST:
Yes No N/A
1. Comprehensive Plan (document source here):
-- -- X
2. Strategic Plan (document source here):
I - -- — X
3. Other (list): See attached ruling from U.S District Court X
ATTORNEY REVIEW: X Yes No
FISCAL NOTE:
The budget does not include funding for this settlement, so the amount of $92,399.13 will come from
the Harbor Enterprise Fund Reserves. Approved by Finance Department: 3 i 4 , _ 1
RECOMMENDATION:
City Council authorize after - the -fact approval of an appropriation in the amount of $92,399.13, and
payment to Trustees of Alaska, as required by the U.S. District Court.
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