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HomeMy WebLinkAboutResolution No. 2011-36the Cory Of KENAI. SKA Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2011 -36 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE GENERAL FUND, NON - DEPARTMENTAL AND LAND ADMINISTRATION DEPARTMENTS FOR EXTERNAL LEGAL SERVICES TO REVIEW A PROPOSED LAND, SUB - SURFACE RIGHTS AGREEMENT BETWEEN THE CITY AND COOK INLET NATURAL GAS STORAGE ALASKA (CINGSA). WHEREAS, the City's FY11 insurance expenditures are budgeted; and, 21,500 less than previously WHEREAS, the savings from insurance is available for redirection to other needs; and, WHEREAS, the Administration has received a sub - surface mineral rights agreement from CINGSA and seeks review by Council with expertise in this subject; and, WHEREAS, the cost for this review is estimated at $7,500.00. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the following budget transfers be made: From: General Fund - Non - Departmental Insurance To: General Fund - Lands Administration Professional services 7,500 7,500 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of May, 2011. ATTEST: Carol L. Freas, City Clerk Approved by Finance: PAT PORTER, MAYOR Tillage with a Past, C with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 LIVE Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 IR MEMO: TO: City Council FROM: Rick Koch DATE: April 28, 2011 SUBJECT: Resolution 2011 -36 The purpose of this correspondence is to recommend Council approval of Resolution No. 2011- 36 authorizing a budget transfer within the General Fund, in the amount of $7,500, to provide funding for external specialty legal services for the review of sub - surface rights agreements between the City and Cook Inlet Natural Gas Storage Alaska (CINGSA). In order that appropriate due diligence is exercised to protect the rights and future potential value of City sub - surface estates the Administration requires the legal services of a firm /individual specializing in this field. CINGSA has agreed to reimburse the City for these attorney's fees to a maximum of $7,500, the amount estimated to accomplish the work. 1992 Thank you for your attention in this matter, if you have any questions please contact me at your convenience.