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HomeMy WebLinkAboutRes2004-103 I I . Sponsored by: Dunham CITY OF SEWARD, ALASKA RESOLUTION 2004-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE MUNCIPAL ADVISORY GROUP (MAG) RESOLUTIONS 2004-02 THROUGH 2004-08 WHEREAS, the City of Seward passed Resolution 2004-64 supporting the Municipal Advisory Group Resolution 2004-01 clarifying their position in regards to the Stranded Gas Development Act (SGDA); and WHEREAS; MAG Resolution 2004-02 outlines the parameters for payment in lieu oftaxes (P1LT) to Municipalities; and WHEREAS, MAG Resolution 2004-03 advises the State of Alaska to reinforce the requirements of the Stranded Gas Development Act to make natural gas available to meet in-state demand; and WHEREAS, MAG Resolution 2004-04 outlines the parameters of a revenue PIL T acceptable to Municipalities; and WHEREAS, MAG Resolution 2004-05 outlines the parameters of a construction impacts P1LT to Municipalities; and WHEREAS, MAG Resolution 2004-06 outlines voluntary measures to ensure maximum Alaska hire for the Alaska Natural Gas Pipeline; and WHEREAS, MAG Resolution 2004-07 regarded interruption during construction of the Natural Gas Pipeline and related effects on a construction PILT; and WHEREAS, MAG Resolution 2004-08 recommends maximum effort to require provisions for expansion of a natural gas pipeline to accommodate additional exploration and production; and WHEREAS, the Municipal Advisory Group (MAG) has approved MAG Resolutions 2004- 01 through 2004-08 stating their position and have asked member communities to approve this action. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. No property tax under AS 29.45 or AS 43.56 prior to the start of construction of an Alaska Natural Gas Pipeline should receive a tax deferral/exemption under a SGDA contract. Section 2. A contract developed under the SGDA should clarify the conditions under which dual use facilities are to be taxed in order to protect municipalities' tax bases in existence prior to the start of construction. CITY OF SEWARD, ALASKA RESOLUTION 2004-103 benchmarks for achieving the training and hiring of Alaskans. Section 16. The State of Alaska should require project sponsors and gas pipeline contractors to advertise within Alaska for positions, and to use State of A1askajob service organizations to notify the Alaska public regarding jobs. Section 17. The State of Alaska should require quarterly unemployment insurance submittals by project sponsors and gas pipeline contractors to identify employees and employers involved in project construction throughout the state. Section 18. The Alaska Department of Labor and Workforce Development should create a statistical indicator of the number of Alaska resident and nonresident employers involved in project construction by comparing quarterly VI submittals against other indexes of Alaska residency, such as PFD qualifications and drivers licenses. Section 19. The State Commissioner of Labor and Workforce Development should prepare and present to the legislature an annual report, by employer, that identifies the numbers of Alaska residents working on the gas pipeline project. Section 20. The State of Alaska should negotiate Alaska hiring goals and should develop incentives to reward project sponsors that achieve those goals. Section 21. If construction ofthe natural gas pipeline halted, the flow of construction-related PIL Ts to the affected communities should continue for up to twelve months of any interruption. Section 22. The State of Alaska should include in contract negotiations under the Stranded Gas Development act and the Right of Way leasing act provisions for expansion of the natural gas pipeline to accommodate future exploration and production. Section 23. The State of Alaska should protect Alaska's interest in the upcoming FERC rule making process and should utilize its standing with FERC to encourage an order for expansion when it is determined to be in the best interest of the state. Section 24. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 1 st day of November 2004. THE CITY OF SEWARD, ALASKA 11~_ ~~~ Vanta Shafer, Mayor I I I AYES: NOES: ABSENT: ABSTAIN: ATTEST: (City Seal) Branson, Dunham, Va1datta, Amberg, Lorenz, Shafer None Clark None ~~!Ulf"", ",t' ,- r' _ I... ~'*:' ~ Or~ ~h.:.&1,::-~ ~~ .L'" .............,.... t~~"'> '., ~ Q' ,.' ~C~:... '~' ':. t7 l.~r;> ~.,~...O..;, _ . '";jilli ,\_.... \-'" :: !~ --- U\ '~? ... , 8'7\\ T ' ~ : " : {~ j. ~. ; ~ ~ :: ~ ..... ;.. ,.......,. .' ",; - . ----- .... ~ e. "p;" .. -I" v,,_ ".. """ ~ r .. I'. V1/ ~'\~.'.,..,. ~... C>>. ""~'" ../., ~ 1, "\-~~.",, ..(;..'4 _!It,. ~...." L" 0:"'1"0-", .......e.. (,....)' ':-.1,; '.' '.;: n,~ ", \Io;~ ':- Ow'" VI" ",.". ....' ""'''U'\~\ Agenda Statement Meeting Date: November 1, 2004 From: Willard Dunham and Bob Valdatta, Council Through: Phil Shealy, City Manager Agenda Item: Municipal Advisory Group Stranded Gas Development Act BACKGROUND & JUSTIFICATION: Earlier this year the City Council approved the appointment of council members Robert Valdatta and Willard Dunham to be the City’s representatives on the Stranded Gas Development Municipal Advisory Group. This act allows a project developer to negotiate special fiscal terms on a gasline project or special tax arrangements. After negotiations the governor will submit the proposal to the legislature for approval. The property tax is a big deal in the economics of a gas pipeline and the Municipal Advisory Group’s role is to ensure that the governor and legislature don’t give away the farm in their enthusiasm for construction of a pipeline. In order to clarify their concern, the Municipal Advisory Group has drafted resolutions 2000-02 through 2004-08 stating their position and have asked member communities to approve this action. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan _____ _____ 2. Strategic Plan _____ _____ 3. Other _____ _____ 4. Not applicable __X__ FISCAL NOTE: NONE ________________________________________________________________________ RECOMMENDATION: Seward City Council approves Resolution 2004-103 supporting the Municipal Advisory Group resolutions 2004-02 through 2004-08 clarifying the City of Seward’s position in regards to the Stranded Act Development Act.