MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Craig Chapman, Acting Finance Director

FROM: Bonnie L. Golden, Grants Manager

COPY: Chief Dan Gregory, Nikiski Fire Service Area

DATE: September 4, 2003

SUBJECT: Ordinance No. 2003-19-18: Accepting and appropriating a State legislative grant in the amount of $120,000 for the purchase of an ambulance for the Nikiski Fire Service Area

The Nikiski Fire Service Area Board has identified the purchase of an ambulance as one of its highest priorities. Their current ambulance needs to be replaced due to age and high mileage. This project was listed in the Borough's 2003 Legislative Priorities, with a request for $150,000 in State assistance.

The purchase of an ambulance is a lengthy process since most of these vehicles must be special ordered. The Service Area had funds available in its FY03 capital projects account to purchase an ambulance. Not knowing whether or not a State grant would be awarded, the Service Area Board decided to place an order for a Type 1 certified ambulance, using funds in its FY03 capital projects account. During its meeting of April 9, 2003, the Service Area Board recommended the award of a contract to United Fire Service, Inc. for the purchase of the ambulance in the amount of $143,286. Through adoption of KPB Resolution 2003-059 on May 20, 2003, the Borough Assembly authorized the award of the contract. Actual delivery of the ambulance is not expected until late 2003 or early 2004.

Subsequent to the award of the contract for the ambulance purchase, the Borough was notified of an award of a legislative grant in the amount of $120,000 for an ambulance for the Nikiski Fire Service Area. (See attached letter dated July 11, 2003, from the Alaska Department of Community and Economic Development.)

The Service Area Board will meet on September 10, 2003. Acceptance of the legislative grant is scheduled to be on the agenda for that meeting. The results of the Board's action will be provided to the Assembly on or before the requested public hearing date of October 14, 2003. If both the Service Area Board and the Borough Assembly accept the grant, and the Assembly appropriates the funds, the grant funds will be used to replace $120,000 of the $143,286 Service Area funds currently encumbered for the purchase of the ambulance.

Attachments: Ordinance, DCED Notification letter