MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Scott Holt, Finance Director

Max Best, Planning Director

Bonnie L. Golden, Grants Manager

Mark Fowler, Purchasing Manager

FROM: Dan Bevington, Coastal Management Coordinator

DATE: August 26, 2004

SUBJECT: Ordinance No. 2004-19-09: Accepting and appropriating a state grant and transferring funds to update the Borough's coastal management program, and awarding a sole-source contract

In 2003, the Alaska State Legislature passed House Bill 191 in an effort to reform and streamline the Alaska Coastal Management Program ("ACMP"). The intent of the bill is to create a new coastal management program that will retain the benefits of the federal act but eliminate the duplication and complexity contained in the present ACMP. In addition, it was noted that the local coastal management plans under the ACMP need to be updated to conform to the new State plan. HB 191 also provides for planning assistance for development and maintenance of local coastal management plans, including funding.

In January 2004, the Borough Assembly adopted Resolution 2004-010, recognizing the significance of coastal planning and supporting the Borough's involvement with the Alaska Coastal District Association. The supporting memorandum by the assembly sponsors recognized "there will be considerable time required for rewriting the polices for coastal consistency determinations, with a shortened timeline to accommodate this."

The Borough's current coastal management plan is dated June 1990. Many changes in regulations and procedures have taken place since that time. The Planning Department recently conducted an evaluation of the Borough's plan and found several areas that need to be amended or deleted in order to comply with state and federal requirements. Therefore, the Planning Department applied for $73,600 under the State's program to update the Borough's plan. An award of $50,000 was granted by the State. In order to have a useable plan that will guide the Borough over the next ten years, an additional $10,000 is needed. The Planning Department is requesting that $10,000 be transferred from the general fund fund balance to provide sufficient funding to complete the update of the Coastal Management Plan.

The Coastal Program Evaluation Council was created pursuant to regulations adopted to implement HB 191. The Council is required to submit a report to the Governor by July 1, 2005. In order for the Council to complete its work by July, it has required program participants to file their initial revised plans by March 2005. The Borough would like to involve the public in the review and amendment process as much as possible by conducting local community meetings. In order to complete this task before the deadline, work on the project must begin immediately. Therefore, a shortened hearing date, as well as award of a sole-source contract, is requested.

The request for a sole source contract award to LaRoche and Associates is based on the fact that this project is time sensitive and the continuation of the coastal management program is at stake. Twenty-six coastal districts are competing for limited qualified services, and all are constrained by a demanding timeline. If the timeline is not met, then districts will lose their state program funding. LaRoche and Associates has the unique technical qualifications that will result in timely, successful completion of the tasks required by state regulations. This firm was instrumental in developing the State's coastal management requirements. Further, LaRoche and Associates have proven their ability with the earlier successful contract assisting the Borough's coastal district coordinator with an initial plan evaluation, which resulted in the grant award under consideration here. Therefore, it is in the Borough's best interest to conduct this project in a timely manner, using input from the public, and amending the Borough's coastal management plan to comply with state and federal regulations.

Attached is the ordinance to provide the funding and assistance needed for completion of this project. The Assembly's consideration of this request is appreciated.

Attachments: Ordinance; award notice