MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Scott Holt, Finance Director

FROM: Bonnie L. Golden, Grants Manager

DATE: October 14, 2004

SUBJECT: Ordinance No. 2004-19-24: Accepting and appropriating $745,575 from the U.S. Department of Housing and Urban Development for recreational facilities

Through various resolutions and ordinances, the Borough has supported the efforts to plan and implement the 2006 Arctic Winter Games on the Kenai Peninsula. In preparation for the games, several facilities will need to be upgraded, repaired, and/or improved. Funding is available for this purpose through a grant from the U.S. Department of Housing and Urban Development ("HUD") in the amount of $745,575. Ordinance 2003-24 authorized the exercise of economic development and land management powers to conduct the 2006 Arctic Winter Games. Resolution 2004-105 authorizes the mayor to sign cooperative agreements with the cities of Homer, Kenai, and Soldotna, all of which have recreation and economic development powers, for the cooperative administration of powers necessary to stage the games. Therefore, the Administration is requesting Assembly approval to accept and appropriate the HUD grant for upgrading, repairing, and/or improving certain recreational facilities.

If approved, and after the Borough has entered into a grant agreement with HUD, the Borough intends to contract with cities and/or nonprofit organizations to complete the necessary projects. The four projects include: (1) equipment for an ice rink in Homer, (2) improvements to the Soldotna Sports Center, (3) equipment and improvements to the Tsalteshi Trails, and (4) improvements to the ice rink in Kenai.

Hearing on shortened time is requested to expedite the funding process so that funds are available to complete the projects on a timely basis.

Enclosures: Ordinance

Award letter