MEMORANDUM

TO: Timothy Navarre, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Jeffrey Sinz, Finance Director

Mark Powell, President of Cook Inlet Salmon Brand, Inc.

FROM: Bonnie L. Golden, Grants Manager

DATE: November 7, 2002

SUBJECT: Ordinance Accepting and Appropriating State Funds from the Alaska Department of Community and Economic Development in the Amount of $73,550 for the Cook Inlet Salmon Branding Program

In March 2002, the Borough Assembly enacted Ordinance 2001-19-32 which appropriated $305,550 from the general fund balance to the Cook Inlet Sockeye Branding Project. That ordinance states that any grant funds received for this project would be used to offset Borough funds.

Since March, the Borough has received two grants for the salmon branding project. The first grant was from the Alaska Department of Community and Economic Development ("DCED") in the amount of $120,000 for regional salmon marketing. The second grant was received from Alaska Manufacturers' Association in the amount of $112,000. Both grants have been appropriated to the project, leaving a balance of $73,550 in general fund monies.

Cook Inlet Salmon Brand, Inc. ("CISB"), the non-profit corporation that is implementing the salmon branding project has received an additional grant in the amount of $93,000. This grant is an appropriation to CISB from the State legislature and is administered by DCED. CISB wishes to fulfill its obligation to the Borough by replacing the entire $305,550 originally appropriated. This can be accomplished by transferring to the Borough a portion of the $93,000 legislative grant. A transfer of $73,550 would offset the remaining balance of the original appropriation. Enactment of the attached ordinance would allow this transfer to take place. Shortened hearing has been requested in order to expedite the transfer process.

Attachments - Ordinance; DCED grant agreement; proposed transfer agreement