MEMORANDUM

KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

TO: Tim Navarre, Assembly President Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: April 4, 2002

SUBJECT: Ordinance 2001-19-38. Appropriating Supplemental Capital Funding and Authorizing the Purchase of Class A Fire Pumper by the Kachemak Emergency Service Area

On January 21,2002 the Borough Finance Department solicited bids for on new Class A Fire Pumper for the Kachemak Emergency Service Area. The low responsive bid was for $233,690. Through additional negotiations, the bid was reduced to $219,550. Funding for this purchase in the amount of $177,285 was provided through enactment of Ordinance 2001-19-14 which appropriated $159,556 in FEMA grant funds and $17,729 in local matching monies. Additional funding of $42,265 is needed to support the purchase. The Service Area has identified the necessary additional funds within their approved operating and capital budgets and has requested the assembly appropriate the needed funds and approve the purchase.

The KESA contacted FEMA regarding the availability of supplemental grant funding and was informed that no such funding can be provided. The additional funding of $42,265 must therefore be provided from local sources. If additional funding is not provided, the grant funds must be returned.

Hearing on a shortened basis is requested in order to provide the manufacturer sufficient lead time to deliver the vehicle prior to expiration of the grant.