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CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-069
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SEWARD, ALASKA,
APPROVING A PAYMENT AGREEMENT WITH CHUGACH FOREST
PRODUCTS, INC., IN ACCORDANCE WITH SUBSECTION 205(E) (2)
OF THE CITY OF SEWARD GENERAL TERMINAL TARIFF NO.1
WHEREAS, the City of Seward adopted the General Terminal
Tariff No. 1 providing the rules, charges and regulations for the
City of Seward's city docks and terminal facilities: and
WHEREAS, that tariff has been filed with the Federal Maritime
Commission effective February 1, 1990: and
WHEREAS, City of Seward, by Resolution 90-031, has amended the
General Terminal Tariff No.1: and
WHEREAS, at the request of Chugach Forest Products, Inc., and
for the reasons set forth in Resolution 91-068, the City Council of
the ci ty of Seward has found that a payment agreement between
Chugach Forest Products, Inc., and the City of Seward providing a
discounted tariff rate is in the public interest: and
WHEREAS, it is in the public interest to amend the General
Terminal Tariff No. 1 in order to authorize the payment agreement:
and
WHEREAS, in accordance with Section 2 of Resolution 91-068,
the payment agreement is not effective until such time as General
Terminal Tariff No. 1 has been amended in order to permit the terms
of the agreement and, further, only upon after filing with the
Federal Maritime Commission;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager of the ci ty of Seward is
authorized to execute the payment agreement attached to this
resolution as Exhibit A.
Section 2. The payment agreement shall take effect only
after filing with the Federal Maritime Commission of necessary
amendments to the Seward General Terminal Tariff No.1, reflecting
the terms of the payment agreement. Until that time, the existing
provisions of the General Terminal Tariff No. 1 shall continue to
govern the payment rates and payment provisions for operations at
the Seward Marine Industrial Center.
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-069
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PASSED AND APPROVED by the city council of the city of Seward,
Alaska, this 10th day of June, 1991.
THE CITY OF SEWARD, ALASKA
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David L. Hilton, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Burgess, Hilton, Krasnansky, Meehan, Sieminski & Simutis
None
Dunham
None
ATTEST:
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the
city of Seward, Alaska
. c:~< M rphy,
city erk
(City Seal)
7~M~
Fred B. Arvidson
city Attorney
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PAYMENT AGREEMENT
This Agreement is made and entered into this Id~day of
June, 1991, by and between the City of Seward, Alaska, a
municipal corporation located in the Kenai Peninsula Borough,
State of Alaska ("City"), and Chugach Forest Products, Inc., a
corporation organized and existing under the laws of the State of
Alaska and 43 U.S.C. S 1601 et seq. ("Chugach").
R E C I TAL S
A. Chugach and City entered into a Prepayment Agreement on
January 26, 1990, for the calendar year 1990, That agreement has
expired,
B, Chugach has filed under Chapter XI of the Bankruptcy
Act for reorganization and intends to continue forest product
manufacturing in Seward. City has determined that it is in the
public interest to provide financial incentives to encourage and
assist in the successful reorganization of Chugach for the
reasons set forth in Resolution 91- b~C, ,
C. Subsection 205(e)(2) of the City of Seward General
Terminal Tariff No.1, as amended, includes provision for City to
offer discount wharfage rates to users who enter into an
agreement with City.
AGREEMENT
IT IS THEREFORE AGREED AS FOLLOWS:
A. Payment: Use Rate. City agrees to charge Chugach the
discount wharfage rate of ONE DOLLAR SEVENTY FIVE CENTS ($1,75)
per ton as invoiced by City for all timber and timber products,
loaded, unloaded or transported by Chugach to or from vessels
using the North Dock. Payment shall be made within thirty days
of invoice date.
B. Default in payments. If Chugach fails to make any
required payment to City within 30 days of the invoice date, or
if Chugach fails to make any payment to the City on the due date
for taxes or utility payments, or if Chugach fails to pay any
amounts due under the Terminal Use Permit for the North Dock or
to comply with any other provisions of the tariff, then after
notice Chugach shall no longer be entitled to the benefit of the
discount rate provided herein, and shall pay all wharfage at the
standard rate as set forth in the tariff.
C. Term of Agreement. The original term of this Agreement
shall expire August 31, 1991; provided, however, that it shall
automatically be renewed for additional successive periods of
three months unless either party gives written notice of
PAYMENT AGREEMENT 6/91 Page 1
termination at least ten (10) days prior to the end of the
original term or any subsequent renewal,
D, Other Fees and Tariff Prov~n~. Other fees due City
under the tariff and other terms of the tariff are not affected
by this agreement,
E. Arbitration. The arbitration provisions of Article 19
of Lease Agreement No. 3 between Chugach Alaska Corporation,
Inc., and the City of Seward, Alaska, dated April 1989, are
incorporated herein by reference. Arbitration shall be the
. exclusive means of resolving any dispute under this payment
agreement,
F. SllP~l~mentation, Modification or Amendment, This
Agreement may not be supplemented, modified or amended in any
manner except by an instrument in writing signed by City and
Chugach,
G, S~ccess~rs in ILLt~~e~~, This Agreement shall inure to
the benefit of and shall be binding upon the successors and
assigns of City and Chugach..
IN WITNESS WHEREOF, City and Chugach have executed this
Agreement effective as of the date first written above.
CHUGACH
CHUGACH FOREST PRODUCTS, INC.
Date: Oto-fo-Ci/
CITY
CITY OF SEWARD
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It c:::. ,4>_
Date: aC:, --(0- '1/
ATTEST:
APPROVED AS TO FORM:
PERKINS COlE, Attorneys
for the City of Seward, Alaska
7~N~
Fred B. Arvidson
City Attorney
PAYMENT AGREEMENT 6/91 Page 2