MEMORANDUM

TO: Tim Navarre, Assembly President

        Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: February 7, 2002

SUBJECT: Ordinance 2001-19-____, $300,000 Cooperative Agreement to Homer Electric (HEA)

As mentioned in the attached memo from Duane Wise, dated January 23, 2002, HEA has submitted a request for an additional $300,000 to the Spruce Bark Beetle program for right-of-way clearing in the Funny River Road area and the area north of the Kenai River.

Through January 31, 2002, interest income in excess of $550,000 has been generated from funding received from the federal government for the Spruce Bark Beetle program. These funds are available to support the Spruce Bark Beetle program.

All expenditures for this project will be charged to account number 262.21320.INBTL.43011. With only one assembly meeting scheduled for March, shortened hearing is being requested in order to not unduly delay right-of-way clearing.