MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

Scott Holt, Finance Director

FROM: Gary Davis, Road Service Director

DATE: June 24, 2004

SUBJECT: Resolution 2004- 067;

STIP Match Funding for Keystone Drive

The Kenai Peninsula Borough Road Service Area ("RSA") has passed a resolution approving the expenditure of $90,300 from the road service area's State Transportation Improvement Program (STIP) Match Program to the State STIP Program to provide local match funds required to utilize a $1 Million federal appropriation allocated to the Keystone Drive STIP "earmark" project.

This resolution asks the assembly to approve this expenditure.

The RSA action was taken after discussions with the Keystone Drive residents to assure the RSA board that all alternative efforts to generate these funds have been unsuccessful. The need to begin the environmental assessment and construction design for this project as soon as possible has also driven this decision. The federal funding awarded toward this project will be withdrawn if the project is not started soon. The project design will begin soon after approval of this local match funding.

The residents of the Keystone Drive area have lobbied the congressional delegation and have been awarded $2.5 Million federal funds to date, and they expect additional federal funding in the near future. These funds have been awarded in two different federal programs. The first award was for $1 Million and requires this local match of $90,300. These funds must be utilized first, prior to the second award of $1.5 Million, which does not require a match. The RSA feels the local match requirement is well worth the opportunity to receive and expend these federal funds. The Keystone Drive improvement project will be a great improvement to the RSA.