MEMORANDUM

TO: Gary Superman, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Scott Holt, Finance Director

FROM: Bonnie L. Golden, Grants Manager

Gary Davis, Roads Director

DATE: November 24, 2004

SUBJECT: Ordinance No. 2004-19-28: Accepting and appropriating a state grant for construction of road access to the Cooper Landing senior housing site

The Cooper Landing Senior Citizen Corporation, Inc., intends to build a senior housing facility in the Cooper Landing community. The proposed construction site for the senior housing does not currently have road access. A request was made to Borough legislators for financial assistance for road construction.

Funding for the project was included in Senate Bill 283, which was passed by the Legislature and signed by the Governor in July 2004. The State Department of Commerce, Community and Economic Development has notified the Borough of the availability of $75,000 for this project.

The State appropriated the grant to the Borough, rather than directly to the Senior Citizens Corporation. Upon approval by the Road Service Area Board, the grant can be accepted by the Borough on behalf of the senior citizens. If acceptance of the grant is not approved by the Road Board and the Assembly, it will need to be re-appropriated by the Legislature to the Corporation. This would not occur until next legislative session. If the funds are re-appropriated, they would not be available until next fall, delaying the construction project by a year.

In accordance with KPB 16.41.190, the project must be approved by the assembly through adoption of a resolution, upon recommendation of the Road Board. The Road Service Area ("RSA") Board is scheduled to meet on December 14, 2004. Acceptance of the grant and approval of the project will be on their meeting agenda. The results of the board meeting action will be provided to the Assembly on or before January 4, 2005. A resolution approving the road construction will be presented to the assembly after RSA board action.

Attachments (ordinance; notification letter from DCED)