MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Dale Bagley, Mayor

Milli Martin, Assembly Member

DATE: June 26, 2003

SUBJECT: Resolution 2003-080, Kachemak Emergency Service Area agreement

This resolution authorizes the mayor, on behalf of the Kachemak Emergency Service Area, to enter into a one-year agreement with the City of Homer for Provision of Fire and Emergency Medical Services. Since the inception of this service area, the City of Homer and the borough on behalf of KESA have entered four six-month interim agreements. Representatives from the Kachemak Emergency Service Area board have met regularly with representatives from the City of Homer since February 2003 to negotiate a new agreement and successfully agreed to new terms on June 26, 2003. The service area board met on June 26, 2003 and recommended approval of the resolution authorizing the agreement.

The primary changes from earlier agreements include the one year term with an automatic one-year renewal, the payment is based on an amount equal to .925 mils of the assessed value of taxable property in the area, and the city of Homer agreed to maintain and test, at its own expense, KESA's equipment. This agreement will result in a reduced payment to the city of Homer of approximately $23,700 from that paid during the last fiscal year. The Homer City Council is next scheduled to meet July 14, 2003, and this is expected to be presented for approval at that meeting.