HomeMy WebLinkAboutResolution No. 2026-68IC
KENAI
CITY OF KENAI
RESOLUTION NO. 2026-68
Sponsored by: City Attorney
A RESOLUTION AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT FOR LEGAL
SERVICES WITH PIONEER LAW LLC FOR LEGAL ASSISTANCE WITH PORE SPACE GAS
STORAGE TRANSACTIONS.
WHEREAS, the City is in the process of negotiating with the State of Alaska Department of Natural
Resources, Enstar and Hilcorp regarding various subsurface and surface estate property transactions
and ownership rights related to underground gas storage; and,
WHEREAS, pursuant to KMC 7.15.060(f) the City Attorney previously retained Pioneer Law LLC for
assistance in these transaction for a sum less than $15,000; and,
WHEREAS, the City Attorney recommends continuing utilization of legal services from Pioneer Law LLC
for a current amount not to exceed an additional $15,000 which is available in Legal Department and City
Manager's budgets; and,
WHEREAS, Kenai Municipal Code 7.15060(f) provides that legal services may be procured by direct
negotiation with Council approval in amounts in greater than $15,000; and,
WHEREAS, Pioneer Law LLC has experience and expertise in the legal services required by the City;
and,
WHEREAS, retaining legal services from Pioneer Law LLC for assistance in negotiating property
transactions related to underground gas storage is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Attorney is authorized to retain Pioneer Law LLC for an amount not exceed
$30,000. If additional services beyond $30,000 are required, further Council Authorization is required.
Section 2. That this Resolution takes effect immediately upon passage.
OF KENAI, ALASKA, THI 1 '" DAY OF SE 'E BER
PASSED BY THE COUNCIL OF THE CITY �
2026.
ATTEST:
MichelleSan@r,,,�MMC, City Clerk
Finance
Heriryj,H. Kna
New Text Underlined; [DELETED TEXT BRACKETED]
IC KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 9O7.283.7535 1 www.kenai.city
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Scott Bloom, City Attorney
DATE: September 14, 2026
SUBJECT: Resolution No. 2026-68 - Authorizing A Professional Services Agreement
for Legal Services with Pioneer Law LLC for Legal Assistance with Pore
Space Gas Storage.
This Resolution authorizes the procurement of additional legal services from Pioneer Law LLC
related to underground gas storage. I previously retained Pioneer Law LLC to provide legal
assistance for an amount less than $15,000 pursuant to KMC 7.15.060(f). As this project has
progressed, it is my recommendation that continuing to use Pioneer Law LLC to assist the City in
negotiations related to competing gas storage leases sought by Hilcorp and Enstar is in the best
interest of the City. The law firm has specific experience in oil and gas transactions as well as tax
law. Many other firms in the state are unavailable to the City because of prior or existing
relationships with the other relevant parties.
The Resolution requests Council approve a total sum for the retention not to exceed $30,000,
which the City Manager and Legal Department have budgetarily available. If further legal services
are needed, beyond the $30,000, which is difficult to anticipate at this point, an ordinance
appropriating additional funds will need to be brought to Council.
Thank you for your consideration.