MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Craig Chapman, Acting Finance Director

Max Best, Planning Director

Roberta Wilfong, Spruce Bark Beetle Program Coordinator

FROM: Bonnie L. Golden, Grants Manager

DATE: August 7, 2003

SUBJECT: Ordinance No. 2003-19-11: Accepting and appropriating a grant from the United States Department of Agriculture, Forest Service, in the amount of $68,200 for forest health restoration

As part of the Borough's spruce bark beetle mitigation project, a forest health restoration program has been implemented to diminish the effects of the beetle infestation. The mitigation project involves the harvesting of spruce bark beetle killed timber on public and private property. In addition, the project involves reforesting land harvested for fuel reduction. Approximately 2000 acres of Borough-owned land are scheduled for planting during the summer of 2004. The total cost is expected to be $272,800. Borough funding for the project was provided through enactment of KPB Ordinance 2000-19-19.

The United States Department of Agriculture, Forest Service, has offered to participate in the project by providing funds to supplement the cost of reforestation. The Forest Service has $68,200 available for this project and has awarded this amount to the Borough. (See attached award notification from the Forest Service.) Its program requires matching funds on a 25/75 ratio, with the Forest Service providing 25% and the Borough providing 75%. The Borough's contribution to the project is currently available in the budget for the spruce bark beetle program. Acceptance and appropriation of the Forest Service grant will provide additional funding for the reforestation project.

The Forest Service is approaching the end of its fiscal year and would like to have the funds obligated prior to the end of September. Therefore, a shortened hearing date is requested to allow sufficient time to complete the paperwork and have the agreement in place prior to September 30th.

Attachments: Ordinance; Award Notification