HomeMy WebLinkAboutRevised MinutesITEMS REMOVED FROM THE CONSENT CALENDAR
E. Oil Revenue Recovery Professional Services Agreement - That the City Council
approve Resolution 6827 authorizing the City Manager to execute the
professional services agreement with Greg Kirste dba Municipal Petroleum
Analysts for potential oil and gas revenue recovery services and reject all other
proposals.
Council Member Moore recused himself due to a financial conflict of interest and left
the Council Chambers.
Finance Directodrreasurer Vikki Beatley summarized information provided in the staff
report.
At the inquiry of Council Members, Greg Kirste provided clarification regarding his
credentials, objectives and price structure of the proposed agreement.
Mayor Pro Tem Deaton and Council Member Massa-Lavitt spoke in favor of the
agreement noting the favorable prospective of additional revenue for the City.
Council Member Sustarsic stated her concerns regarding language in the contract,
Mr. Kirste's qualifications and the lack of transparency in bringing this item forward.
The City Attorney provided clarification that the statute of limitation in seeking past oil
revenues is four years.
Mayor Varipapa stated a variety of concerns with this item including the terms of the
agreement, 15% fee to be paid to Mr. Kirste on potential oil revenue, and lack of
qualifications. He stated that he would prefer to pay Clark and Green their flat fee of
$45,000 to seek oil revenue rather than the potentially much higher amount proposed
by Mr. Kriste.
Deaton moved, second by Massa-Lavitt, to approve Resolution 6827 authorizing the
City Manager to execute the professional services agreement with Greg Kirste dba
Municipal Petroleum Analysts for potential oil and gas revenue recovery services and
reject all other proposals.
Substitute motion by Varipapa, second by Sustarsic, directing staff to present an
agreement with Clark and Green for Oil Revenue Recovery in the amount of $45,000
for a period of 6 to 12 months; and if Clark and Green does not succeed in said oil
revenue finding, bring back for consideration an agreement with Greg Kirste dba
Municipal Petroleum Analysts for a one year term.
AYES: Sustarsic, Varipapa
NOES: Deaton, Massa-Lavitt
ABSENT: None
ABSTAIN: Thomas Moore
Motion Failed
Substitute motion by Deaton, second by Massa-Lavitt, to direct staff to negotiate a non-
exclusive professional services agreement with Greg Kirste dba Municipal Petroleum
Analysts for potential oil and gas revenue recovery services for a one year term.
AYES: Deaton, Massa-Lavitt
NOES: Sustarsic, Varipapa
ABSENT: None
ABSTAIN: Thomas Moore
Motion Failed
Council Member Moore returned to Council Chambers.