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HomeMy WebLinkAboutRes1989-046 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 89-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LOCAL GOVERNMENT EXPENSE REIMBURSEMENT AGREEMENT WHEREAS, the oil spill from the EXXON VALDEZ on March 24, 1989, has created an acute need for emergency government services and continuing local government support for on-going mitigation and clean-up measures; and WHEREAS, the city is ill-equipped to finance the direct and indirect costs of oil spill related activities; and WHEREAS, the with respect to activities; and city is approaching its busiest time of the year city-support for tourism, fishing and other WHEREAS, placing priorities on oil spill related activities has caused and will continue to cause disruption of normal governmental services to the residents of the city of Seward; and WHEREAS, the city believes it would be in the public interest for the city of Seward to attempt to reach agreement with Exxon in an united effort with other local governments directly impacted by the oil spill; and WHEREAS, the agreement drafted provides for a uniform and systematic method for calculating and charging costs that are oil spill related to Exxon; and WHEREAS, the agreement provides for advance payments and will -ease the cash flow burdens imposed on the city by reason of the oil spill; and WHEREAS, previous payment arrangements, particularly those through the Kenai Peninsula Borough, are soon to expire; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to execute the attached Local Government Expense Reimbursement Agreement. Section 2. The City Manager and Mayor are authorized to seek approval of the form of agreement from other local governments affected and also from Exxon. . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-046 Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 15th day of May, 1989. AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA ~e~;~_~ Har . Giese er Mayor DUNHAM, GIESELER, HILTON AND NOLL NONE MEEHAN, O'BRIEN AND SIMUTIS NONE APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska (City Seal) ~J-t(lp~ Fred B. Arv~dson City Attorney SENT BY:Perkins Coie . . . 5-12-89 16:55 PERKINS COlE et al~ 907 224 3248:#11 LOCAL GOVERNMENTS-EXXON EXPENSE REIMBURSEMENT AGREEMENT THIS AGREEMENT is between Exxon Company, U.S.A. (a division of Exxon Corporation) as contractor for Exxon Shipping Company ("Exxon") and the following local governments: The City of Cordova, Alaska The City of Homer, Alaska The City of Kodiak, Alaska The City of Seldovia, Alaska The City of Seward, Alaska The City of Valdez, Alaska The City of Whittier, Alaska The Kenai Peninsula Borough The KOdiak Island Borough 1. StatemeQt of Purpose. The March 24, 1989, oil spill from the EXXON VALDEZ in Prince William Sound has created an acute need for local government services both in direct oil spill activities such as placing oil booms and indirect services such as providing public health and safety and administrative assistance and logistical support for those involved in the oil spill. The local governments are not financially capable of providing those services on a sustained basis without aSsurances that the costs of those services will be reimbursed. It is also to Exxon's advantage to develOp, in coordination with the local governments, a uniform and consistent reimbursement system. The purpose of this agreement is to provide for such a system. Local Governments/Exxon Expense Reimbursement Agreement Page 1 DRAFT--5/11/89 SENT BY:Perkins Coie 5-12-89 16:55 PERKINS COlE et al~ 907 224 3248:#12 . . . 2 . Eligible Expanses. Exxon agrees to reimburse the local governments for expenses and costs attributable to the oil spill from the EXXON VALDEZ. The general rule to be followed in determining whether a particular cost or expense is reimburseable is whether it would not have been incurred but for the oil spill. Costs and expenses eligible for reimbursement include (but are not limited to) employee or payroll costs, supplies, equipment or equipment use, travel, out of pocket costs and the costs of services provided to the local governments by third parties. 3. CalculatiQn of Costs. The local governments use a variety of accounting systems and this agreement is not intended to impose or require changes to those systems. If the local government is currently using an accounting system that provides for the charging of local government payroll, and other expenses to capital or grant projects (for example, State of Alaska capital improvement grant projects), the local government may use that system for record keeping and billing rather than the one outlined below. For those local governments who choose to do so, expenses and costs may be calculated as follows: a) Em9l~vment costs. For hourly employees an average hourly rate including any applicable fringe benefits. Time spent on oil spill related activities during normal working hours shall be charged at that regular rate. Overtime shall be charged at one and one-half times that rate. For salaried employees all Local Governments/Exxon Expense Reimbursement Agreement Page 2 DRAFT--5/11/B9 SENT BY:Perkins Coie . . . 5-12-89 16:56 PERKINS COlE et al~ 907 224 3248;#'3 time spent on oil 5pill related activities shall be charged at a calculated average hourly rate, including applicable fringes. b) Su~pljes. eauipment and servi~es purchased. All such expenses shall be charged at actual invoiced cost. c) Ealli~ment use. reQtal. etc. Rented or chartered equipment shall be charged at the actual invoiced cost. Equipment owned by the local government shall be charged at its customary race (such as any applicable rate established for use of equip- ment in conjunction with state capital improvement projects). d) Overheed. To compensate for general administrative and overhead costs, ten percent shall be added to each of the items a) through c) above. 4. Records. Each local government shall make best efforts to provide Exxon monthly summaries of ezpenses for which reimbursement is sought. In addition, payroll summary sheets (backed up by available time records if requested) and invoices for services and supplies shall be made available for reasonable inspection. The local governments shall provide, upon request by Exxon, copies Of any annual or other audits performed. 5. Advan~Qf Funds and PA~. Exxon agrees to advance funds to the local governments on a monthly basis in anticipation Of local government expenses eligible for reimbursement under this agreement. The local government and Exxon will sigo a receipt for those funds that says" (name of local aovernment) hereby acknowledges receipt of $ from Exxon pursuant to the local government-Exxon Expense Reimbursement Agreement." Local Governments/Exxon Expanse Reimbursement Agreement Page 3 DRAFT--5/l1/89 SENT BY:PerKins Coie 5-12-89 16:56 PERKINS COlE et al~ 907 224 3248:#14 . . . The amount of the advance fundings shall be based on each local government's estimate of eligible expenses for the month, taking into consideration the amount of reimburseable expenses for the month and for prior months and the oil spill related activities anticipated in the upcoming month. Each local government shall account for all expenditures of the advance funding, providing documentation in the same manner as requests for reimbursement. Any advance funds not used for eligible expenses shall be credited to the following month's advance funding, or, to the extent such surplus funding exceeds the amount necessary for the following month's advance funding, repaid to Exxon. Any equipment or supplies specially purchased by a local government and reimbursed shall be returned upon request by Exxon. All expenses over and above the advance funding shall be paid within three working days of receipt by Exxon. The local governments agree to cooperate with Exxon in mutually developing the accounting information reasonably required under this agreement and it is the intent of the parties to encourage early recognition and resolution of any disputes. 6. No Waivers. By entering into this agreement, the local governments do not waive, release or acknowledge satisfaction of any claim or cause of action they may have against Exxon, or any other party for penalties, assessments, damages or costs attribu- table to the oil spill. The local governments specifically reserve the right to bring any actions they may have against Exxon or any other party. The local governments agree that they Local Governments/Exxon Expense Reimbursement Agreement Page 4 DRAFT--5/l1/89 SENT BY:Perkins Coie 5-12-89 16:57 PERKINS corE at al~ 907 224 3248:#15 . . . will not include any expense paid or reimbursed under this agreement as part of ~ny future claim or demand on Exxon. By entering into this agreement, Exxon does not admit any violation of law nor does it admit liability for any damages or costs attributable to the oil spill; however, Exxon is obligating itself to pay costs and expenses in accordance with this agreement. 7. ~. This agreement shall cover costs and expenses incurred from March 24/ 1989, to December 311 1990, and not otherwise reimbursed. 8. Miscellaneous. This agreement replaces prior agreements between the parties with respect to submittal and payment of requests for reimbursement that are the subject of this agreement. This agreement may be executed in counterparts each of which shall be an original. The agreement sh~ll be effective between the signatories even if all the listed local governments do not ultimately approve it. The parties do not object to additional local governments becoming parties to this agreement. Exxon Company U.S.A. ( A Division of Exxon Corporation) as a Contractor for EXXOn Shipping Company By: Date Otto Harrison Local Governments/Exxon Expense Reimbursement Agreement Page 5 DRAFT--S/ll/89 SENT BY:Perkins Coie 5-12-89 16:57 PERKINS COlE et al~ 907 224 3248:#16 . City of Cordova By: William L. Weinstein Interim City Manager Date ATTEST: Approved as to form: Lynda Plant, city Clerk Scott Ster ling, Jensen, Harris & Roth City of Homer By: Phil Shealy, City Manager Date . ATTEST: Approved as to form: Patti J. Whalen, City Clerk Lee Sharp Preston, Thorgrimson, Ellis & Holman City of Kodiak By: Date ATTEST: Approved as to form: Marcella Dalke, City Clerk . Local Governments/Exxon Expense Reimbursement Agreement Page 6 DRAFT--5/1l/89 SENT BY:Perkins Coie . . . 5-12-89 16:58 PERKINS COlE et al~ 907 224 3246:#17 City of Seldovia By: Kris Lethin, City Manager Date ATTEST: Approved as to form: Roberta Hiatt, City Clerk City of Seward By: Darryl Schaefermeyer Deputy City Manager Date ATTEST: Approved as to form: Linda Murphy, City Clerk Fred Arvidson Perkins Coie City of Valdez By: John Devens, Mayor Date ATTEST: Approved as to form: Jeanne Donald, City Clerk Gordon Tans Perkins Coie Local Governments/Exxon Expense Reimbursement Agreement Page 7 DRAFT--5/1l/89 SENT BY:Perkins Coie 5-12-89 16:58 PERKINS COlE et ai~ 907 224 3248:#18 . City of Whittier By: Georgia Buck, Mayor Date ATTEST: Approved as to form: Rhonda Gaul, City Clerk Bradley E. Meyen Woh1forth, Argetsinger, Johnson & Brecht Kenai Peninsula Borough By: Date . ATTEST: Approved as to form: Joanne Brindley, Borough Clerk Thomas Boedeker Kodiak Island Borough By: Jerome Selby, Mayor Date ATTEST: Approved as to form: GayeJ. Vaughan, Borough Clerk Mathew D. J8min Jarnin, Ebell, Bolger & Gentry . 635/ajw Local Governments/Exxon Expense Reimbursement Agreement Page B DRAFT--5/l1/89