MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Jeff Sinz, Finance Director

FROM: Bonnie L. Golden, Grants Manager

COPY: Kachemak Emergency Service Area Board

DATE: April 3, 2002

SUBJECT: Resolution 2003-040: Authorizing Participation in the Denali Commission Multi-Use Facilities Request for Proposals

The Kachemak Emergency Service Area (KESA) was formed in October 2000 and is responsible for fire suppression and emergency medical response to residents within a 200 square mile area surrounding the City of Homer and Kachemak City. They currently have one ambulance, a new Class A fire engine, and a fast attack engine. Space is being rented to house these emergency vehicles. Additional equipment is being acquired, but there is not adequate appropriate space to house them. KESA wishes to construct a fire station where they can store and maintain their equipment and coordinate operations for the eastern portion of the service area. A building site has been secured and architectural schematic design plans developed.

The Denali Commission is offering funding on a one-time basis for multi-use facilities. Priority for funding under this program will go to uses associated with life, health and safety. Projects that are construction ready will receive higher priority for funding. Maximum funding is $1 Million, with a required match of 25% for non-distressed communities. A "community" includes any community that is represented by a federally recognized tribal government, municipal government, or that receives State Revenue Sharing.

At its meeting on March 27, 2003, the KESA board of directors approved proceeding with a Denali Commission grant proposal and has asked the Borough to respond on their behalf. They are requesting funding for the proposed McNeil Canyon Fire Station, which has been identified in the Borough's priorities lists since 2001. KESA's long-term plan for this fire station includes space for a community hall. The schematic design for the fire station is complete. If funding is available, construction could begin by fall 2003. KESA has determined that $900,000 is needed in grant funding for the project. $300,000 was provided to KESA by the Borough as part of its lump sum award through the U.S. Forest Service. The Denali Commission has stated that this $300,000 is an allowable match under their program. With the $300,000 set aside in KESA's budget for a fire station, and the value of the land, KESA has more than sufficient funding to meet the match requirement. Under these circumstances, a very strong proposal could be submitted to the Denali Commission.

If KESA were the recipient of a grant from the Denali Commission, they would receive project management support from the Borough. As with most grants, the Borough would provide administrative services through its grant manager and Finance Department. In addition, the Capital Projects Division would be available to provide construction management. Once the building is completed, KESA would be responsible for operations and maintenance of the facility.

As with all Borough facilities, the fire station/community hall would be available to the public. Services provided by KESA would be available to all residents within the service area.

/bg

Attachment - Resolution