Members of the Assembly

FROM: Borough Clerk Linda Murphy

DATE: August 8, 2002

SUBJECT: Resolution 2002-105

In 1994, the Assembly entered into its current agreement with Peninsula Communications, Inc. for the radio broadcast of Assembly meetings. This agreement was modified in 1999 by providing a one time increase in the amount of 10% to the per broadcast fee paid to both the station and to the announcer hired by the station to broadcast our meetings. The preamble to this resolution (the last "Whereas" clause) stated that it was the intent of the borough to initiate an annual adjustment to the contract based on the Consumer Price Index (CPI) for Anchorage.

On July 10, 2001, the radio station began to bill us an additional 3% based on their estimate of the change in the CPI since the 1999 adjustment. We have been paying that increased amount since that time. (I became aware of this increase when the most recent request for an adjustment was made.)

In order to clarify my authority to adjust the contract annually based on the Anchorage CPI, I am requesting approval of Resolution 2002-105 which authorizes the following amendments to the original contract:

• A 5.3% adjustment to the per meeting rate paid directly to PCI (8.3% actual inflation since 1999 less the 3% increase given in 2001)
• An 8.3% adjustment to the per meeting rate paid to Merrill Sikorski for his services as announcer (Under the original agreement, PCI paid Mr. Sikorski for his services from the proceeds of the contract with the Borough. A couple of years ago, the Borough agreed to pay a portion of the agreed per meeting fee directly to Mr. Sikorski. Mr. Sikorski did not receive an increase in 1999.)
• Authorization for the Borough to automatically adjust the contract amount paid to PCI and to Mr. Sikorski in accordance with the Anchorage CPI on July 1 of each year of the contract.