MEMORANDUM
TO: Pete Sprague, Assembly President
Members of the Kenai Peninsula Borough Assembly
THRU: Dale Bagley, Borough Mayor
Milli Martin, Assembly Member
Jeff Sinz, Finance Director
FROM: Bonnie L. Golden, Grants Manager
COPY: Mary Griswold, Kachemak Emergency Services
DATE: June 5, 2003
SUBJECT: Ordinance 2003-19-02: Accepting and Appropriating $993,000 from the Denali Commission for a fire station for Kachemak Emergency Service Area
The Kachemak Emergency Service Area (KESA) is responsible for fire suppression and emergency medical response to residents within a 200 square mile area surrounding the City of Homer and Kachemak City. They currently have one ambulance, a new Class A fire engine, and a fast attack engine. Space is being rented to house these emergency vehicles. KESA has established as one of its highest priorities the construction of a fire station where they can store and maintain their equipment and coordinate operations for the eastern portion of the service area. Their long-term plans included the addition of a community hall. A building site adjacent to McNeil Canyon School has been secured. Architectural schematic design plans for a fire station that can accommodate a training center/community hall have been completed.
The Denali Commission has funding available for multi-use facilities. Priority for funding under this program will go to uses associated with life, health and safety. Maximum funding is $1 Million, with a required match of 25% for non-distressed communities.
At its meeting on March 27, 2003, the KESA board of directors approved proceeding with a Denali Commission grant proposal. The Borough supported this proposal through the adoption of KPB Resolution 2003-040. A grant application was submitted in April 2003 requesting $993,661 from the Denali Commission. The total project cost is estimated at $1,352,610, based upon estimates provided by the architectural firm of Bezek Durst Seiser and by the Borough Capital Projects Division. In its application, KESA indicated a local match of $358,949. The proposed match includes the $300,000 provided to KESA from the Borough's lump sum award from the U.S. Forest Service; $39,949 spent for the schematic designs; and the assessed value of the property of $19,000. The $358,949 is more than sufficient to meet the 25% match requirement.
On June 3, 2003, the Borough and KESA received notification from the Denali Commission that they were recommending the project for funding, based upon two contingencies. The review panel interpreted the costs for project management by the Borough's Capital Projects Division to be in-kind services. Based on that assumption, they were recommending a reduction in the amount of the grant to $948,251. Secondly, they requested a copy of a comprehensive community plan that identified the fire station as a community need. The Borough and KESA are currently working with the Denali Commission to address these two contingencies in a manner that hopefully will result in funding approval for the project. A copy of the Denali Commission letter is attached.
Another requirement by the Denali Commission is that funds must be committed by August 1, 2003. The Commission has informed the Borough that having a grant agreement in place by August 1 is sufficient to meet this requirement. In order to meet this condition, an ordinance accepting the grant and authorizing the mayor to enter into an agreement must be enacted by the July 8, 2003, assembly meeting. For this reason, the attached ordinance is being submitted to the assembly based upon the assumptions that the two contingencies will be resolved prior to July 8th and the grant will be awarded for the full amount requested. If these assumptions do not hold true, appropriate action will be taken with regard to the ordinance, i.e., amendments made or complete withdrawal. Because of the August 1, 2003, deadline a shortened hearing date has been requested.
Attachment
Ordinance
Notification from Denali Commission dated 6-6-03.