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

FROM: Roberta Wilfong, Spruce Bark Beetle Program Coordinator

DATE: August 26, 2004

SUBJECT: Ordinance No. 2004-19-10: Accepting and appropriating a grant from the United States Department of Agriculture, Forest Service, in the amount of $70,000 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 1,200 acres of land were planted during 2004, an additional 1,400 acres are scheduled for planting during the summer of 2005. The total cost is expected to be $280,140. 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. In 2003, the Forest Service provided $68,200 for this project. This year, they have an additional $70,000 to contribute. (See attached award notification from the Forest Service.) Their program requires matching funds on a 25/75 ratio, with the Forest Service providing 25 percent and the Borough providing 75 percent. The borough's contribution to the project will be provided from the approved budget for the spruce bark beetle program. Acceptance and appropriation of the Forest Service grant will provide additional funding for the borough's forest health restoration program.

The funds from the Forest Service must be obligated prior to their fiscal year end, which is September 30. In order to meet this deadline, a shortened hearing date of September 21, 2004, is requested.

Attachments: Ordinance; Award Notification