MEMORANDUM

KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

To: Timothy Navarre, Assembly President

Members, Kenai Borough Assembly

Thru: Dale Bagley, Mayor

From: Jeffrey Sinz, Finance Director

Date: June 28, 2001

Subject: Bond Proposition - Office Space Expansion and Renovation

As recommended by the Space Allocation Committee, the attached ordinance would place before borough voters the question of issuing up to $5 million in general obligation bonds for the purpose of renovating the current borough administration building and designing, constructing and furnishing approximately 20,000 square feet of new office space. This amount of the bond will fund only a portion of the total project that is expected to cost approximately $7.5 million. The balance of project funding is expected to be provided out of the borough's general fund balance. A copy of the Space Allocation Committee's final report is attached for your reference.

The renovations to the current borough administration building (BAB) are intended to maintain the structural integrity of the building. The BAB was constructed nearly 30 years ago. Significant renovations to a highly used public facility of this age are to be expected.

The additional 20,000 square feet in new construction is to alleviate overcrowding and facilitate the consolidation of borough and school district administrative functions. The new construction could occur in the form of either an addition to the current BAB, or a stand-alone facility located on the same site. Alternatives examined by the committee and the rationale for this approach are contained in the attached report.