To: Timothy Navarre, Assembly President

Kenai Peninsula Borough Assembly Members

Thru: Dale Bagley, Borough Mayor

Thru: Shane Horan, Director of Assessing

From: Clyde Johnson, Special Assessment Coordinator

Subject: Tote Road - Echo Lake Road USAD - Resolution to Proceed

Date: June 27, 2002

The purpose of the Resolution to Proceed is to authorize the Borough to take the necessary steps to authorize ENSTAR Natural Gas Company to construct the natural gas main line. The Resolution to Proceed establishes the parcels to be included in the project, along with each parcel's estimated assessment.

The Resolution of Necessity was adopted on June 4, 2002 and the 30-day objection period will end on July 4, 2002. KPB 5.35.120 states that if objections have not been received from owners of lots or parcels bearing one-half or more of the estimated costs of improvement, the assembly shall, within thirty days, consider a resolution determining to proceed with the proposed special assessment project. As of the date of this memo three (3) written objections have been received from parcel owners within the proposed project. This situation will be monitored and any letters of objection received between the date of this memo and the expiration date of July 4, 2002 the will be provided to the assembly for consideration.

The individual assessment for each parcel in the USAD is estimated at $2,130.91 as set forth in the estimated assessment roll attached to the Resolution of Necessity. The total project cost is $628,618.45.

Approval of the Resolution to Proceed authorizes the Mayor to enter into an agreement to proceed with the construction of the project and to record liens on the benefited parcels detailed on the estimated assessment roll. As previously indicated in the Resolution of Necessity the intended means of financing this project is by an inter-fund loan from the Borough general fund.

Please feel free to contact me if you have any questions.