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6.4 Airport Rediation Consulting Services Reimbursement CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/21/2012 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: 6 NO: BY: FINANCE FINAL APPROVAL: ITEM NO:4 BY: Rod Franz BY: Page 1 ITEM: Authorize reimbursement of environmental remediation consulting fees to the Salina Airport Authority. BACKGROUND: Beginning in 2007, the City of Salina, USD 305, K-St ate Salina, and the Salin a Airport Authority retained Dragun Corporation to represent the combined parties in settlement negotiations with the US Army Corps of Engineers in the former Schilling Air Force Base environmental remediation matter. At the time that was initiated (September 2007), it was agreed that all Dragun fees would be billed through the Airport Authority in order to facilitate the process and to move forward towards the goal of a negotiated settlement. Carrying that amount has become a strain on the Airport Authority finances, and they have requested that we now reimburse them for the one-quarter share due from the City of Salina. Like requests have been made of the other public entities involved in resolving this issue. The City share of the amount due is $411,949. FISCAL NOTE: The Water and Wastewater Utility has an establis hed reserve fund that c an be used for these purposes. The current balance in the fund is $1,385,444, with a like am ount scheduled to be transferred into the reserve fund in 2012. CONFORMANCE WITH THE STRATEGIC PLAN: GOAL: THE CITY WILL RECOGNIZE THE IMPORTANCE OF A HEALTHY COMMUNITY AND ITS NATURAL RESOURCES, AND WILL MAKE PRACTICAL EFFORTS TO PRESERVE THEM Action Item: Finalize efforts with the U.S. Army Corps of Engineers and related federal agencies to ensure full and accountable groundwater remediation associated with the former Schilling Air Force Base COMMISSION ACTION OR RECOMMENDED ACTION: Authorize the reimbursement to the Salina Airport Authority for environmental remediation consulting fees in the amount of $411,949.