HomeMy WebLinkAboutOrdinance No. 2630-2012the ei y of
HEI A ALASKA
Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2630 -2012
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND FOR
PROFESSIONAL SERVICES OBSERVING AND MONITORING THREE DIMENSIONAL
SEISMIC SURVEYING BEING CONDUCTED ON CITY PROPERTY AND IN CITY RIGHT -
OF -WAYS.
WHEREAS, Buccaneer Alaska LLC has conducted three dimensional seismic surveying
within the City for the purpose of mapping existing natural gas deposits as well as
identifying new deposits for exploration and development; and,
WHEREAS, the Oil &, Gas industry has a been critical in the success and development
of the City; and,
WHEREAS, the City issued an excavation permit allowing Buccaneer Alaska, LLC and
its contractors access to City property and right -of -ways for the purpose of three
dimensional seismic surveying; and,
WHEREAS, in order to insure the safety of the public and the City's infrastructure, the
excavation permit required Buccaneer Alaska LLC to reimburse the City for the cost of
an independent third party to observe seismic surveying activity when in close
proximity to public structures or City infrastructure; and,
WHEREAS, future oil and gas exploration and development will be critical to the City
in maintaining quality, high paying jobs for the citizens of Kenai and requiring a
independent observer will help insure protection of public and private property during
seismic surveying activity.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Miscellaneous Income
16,005
Increase Appropriations:
Manager - Professional Services $16,005
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Ordinance No. 2630 -2012
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF ALASKA, t s 6th day of May,
2012.
ATTEST: /!
Corene Hall, CMC, Depu
Approved by Finance:
RYAN
, VIC "-`1' YOR
Introduced: May 2nd, 2012
Adopted: May 16th, 2012
Effective: May 16th, 2012
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KENAI, A KA
N✓
'Village with a Past, Ci y with a Future"
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 ext 221 / FAX: 907 -283 -3014
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: April 24, 2012
Re: Ordinance 2630 -2012
The purpose of this memo is to provide additional information in support of Ordinance 2630-
2012 which will appropriate funds billed and to be received from Buccaneer Alaska LLC (BA
LLC).
BA LLC has conducted three dimensional seismic surveying of the Kenai area in an effort to
map existing and identify new deposits of natural gas for exploration and development. BA LLC
requested and was granted an excavation pennit for access to City owned lands and right -of-
ways in performance of the seismic surveying. As a condition of that permit, and in an effort to
protect public and private property, BA LLC was required to reimburse the City for an
independent observer who was present during seismic mapping when in proximity to public
structures or City infrastructure.
The City contracted with the engineering firm of Hattenburg Dilley and Linnell for these
observation services at a total cost of $16,005. This ordinance will appropriate the funds billed
to BA LLC for the payment of these services.