MEMORANDUM

TO: Members, Kenai Peninsula Borough Assembly

FROM: Timothy Navarre, Assembly President

DATE: May 24, 2001

SUBJECT: Ordinance 2001-13, Navarre Substitute, waiving penalty and interest on taxes accrued on parcel 06012016

The primary change between my substitute ordinance and the original ordinance is that the accompanying agreement eliminates any requirement that Q-1 Corporation defend and indemnify the borough against any action challenging the waiver of penalty and interest or the transfer of this property. In my view, the private party acquiring the property should not be required to defend and indemnify the borough for its decision to waive penalty and interest and to transfer the property for the taxes owed.

My substitute also updates the dollar amounts owed in the fourth Whereas, extends the repurchase date in the seventh Whereas from July 1, 2001, to September 1, 2001, deletes references to the City of Soldotna's representations in the Whereas clauses, and requires that Denali use its best efforts to "promote" rather than to "secure" the expedited cleanup contamination on the parcel. Denali is not the party responsible for the contamination.