MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

FROM: Dale Bagley, Borough Mayor

DATE: May 18, 2004

SUBJECT: Resolution 2004-050, supporting the Kodiak-Kenai fiber optic cable project linking Anchorage, Kenai, Homer, and Kodiak

This resolution supports efforts of the Kodiak-Kenai Cable Company, LLC to construct a fiber optic cable connecting Anchorage, Kenai, Homer, and Kodiak. The project is well under way with the offshore marine hydrological survey being completed last October, and additional near shore survey work is scheduled for early this summer. A letter of intent to finance the project has been secured with appropriate third-party loan guarantees.

The fiber optic cable will be classified as a carrier's carrier with the fiber optic capacity made available to all common carriers. This high-speed fiber optic connection will promote sustainable economic development and enhance access to public services such as education, telemedicine, and broadcasting throughout the region.

The letter from the Kodiak-Kenai Cable Company requesting this resolution is attached for your review.