City Council

6. REQUEST TO INCREASE REVENUE BUDGET\nAND APPROPRIATION BASED ON THE THIRD\nAMENDMENT TO THE COOPERATIVE\nAGREEMENT WITH THE NAVY AS RELATED TO\nTHE NORTH HANGAR FIRE INCIDENT The City\nexpects to enter into a third amendment to the\nCooperative Agreement with the U.S. Department of\nthe Navy (Navy) to implement an emergency\nresponse related to the North Hangar Fire Incident.\nStaff is requesting the City Council’s approval to\nincrease revenue budget and related appropriation\nby the Navy’s reimbursement amount specified in\nthe third amendment. The City expects the third\namendment will increase the reimbursement\namount pledged by the Navy by approximately $13\nmillion – for a current not to exceed total of\napproximately $24 million. The City expects the\nbalance of costs, currently estimated at more than\n$50 million, the City is incurring on the Navy’s behalf\nto be pledged for reimbursement by the Navy in\nsubsequent amendments.\nRecommendation: It is recommended that the City\nCouncil increase revenue budget and related\nappropriation by the Navy’s reimbursement amount\noutlined in the third amendment to the Cooperative\nAgreement.