MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Max Best, Planning Director

Paul Ostrander, Land Management Officer

DATE: June 24, 2004

SUBJECT: Ordinance 2004-26, authorizing the acquisition of lands and resources costing $15,000 or less without assembly approval

On numerous occasions over the last few years, the assembly has been asked to approve very small office space leases costing $15,000 or less per year. By analogy, the mayor is authorized to make purchases of $15,000 under the purchasing code without either assembly approval or using a formal bidding process. This ordinance would authorize the mayor to acquire interests in land or resources costing $15,000 or less per year, for a maximum of five years, without assembly approval. The mayor would still follow the purchasing code for such acquisitions and would consider recommendations of the planning commission. However, this ordinance would eliminate some of the delays that have been caused by requiring assembly approval by resolution of these acquisitions.

It should be noted that most existing leases would still require assembly approval because they cost more than $15,000. These include the lease of office space for the spruce bark beetle office, the risk management office, and the community and economic development division office. This ordinance does require that the mayor consider planning commission recommendations and that the mayor report all such acquisitions to the assembly in order for the assembly to remain fully informed.

The primary purpose of this ordinance is to alleviate some of the delays and paperwork caused by requiring all acquisitions of interests in lands and resources, no matter how small, be approved by the assembly. Your support would be appreciated.