MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Finance Director

Craig Chapman, Controller

Colette Thompson, Borough Attorney

DATE: October 12, 2004

SUBJECT: Ordinance 2004-19-14, appropriating supplemental funding to cover septic system repairs and workers compensation insurance costs for the Nikiski Senior Service Area facility

This memo is to advise you that the above-referenced ordinance will require amendments at the scheduled hearing date of November 16, 2004. The ordinance was mistakenly written to appropriate enough funds to cover 100 percent of the workers compensation cost instead of just the increase of $8,118. Additionally, since the ordinance was submitted, the Nikiski Senior Citizens, Inc. requested that the dollar amount to repair the septic system be increased by $1,700 to include the cost of purchasing an additional septic tank due to a broken baffle in the original tank. Accordingly, the following amendments to the ordinance will be requested.

Change the title to change the dollar amount from $17,824 to $13,618.

Amend the second and third whereas clauses as follows:

WHEREAS, NSC has incurred unexpected expenses of $5,500 related to the repair of the septic system located as the Nikiski Senior Center; and

WHEREAS, NSC's workers' compensation insurance premium recently increased from $5,906 to $14,024, a 263% 137% increase; and

Amend Section 1 as follows:

SECTION 1. That the sum of $17,824 $13,618 be appropriated from the Nikiski Senior Service Area fund balance to account 280.63190.00000.43011, to be used for the repair of the of the septic system and to fund the shortfall in workers' compensation insurance premiums of the Nikiski Senior Citizens, Inc.

Your consideration of these amendments on November 16 will be appreciated.