MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

Scott Holt, Finance Director

Max Best, Planning Director

From: Paul C. Ostrander, Land Management Officer

Date: September 3, 2004

Subject: Resolution 2004-092; Authorizing the Rental of Heated Storage and Yard Space for Nikiski Fire Department Apparatus

The Kenai Peninsula Borough has, in the past, leased space from Artic Arches for storage of Nikiski Fire Department apparatus. The Nikiski Fire Department has identified property on Island Lake Road owned by G. White and Sons Company which is available for rent and presents a more suitable location for the storage and maintenance of Fire Department apparatus. In addition to the exclusive use of heated space, under a lease the fire department would enjoy the use of welders and an overhead crane as amenities of the property.

This resolution, as drafted, authorizes entering into a 3-year lease agreement with renewal by mutual consent for two additional one-year terms. The proposed rental is 774.77 per month, or $9297.24 per year. Electric utilities are expected to cost $1,245.65 per year and natural gas is expected to cost $1525.77 per year. Total expenses for this rental would be approximately $12,068.66 per year. Sufficient funds have been budgeted by the Nikiski Fire Department for the first year of the agreement in account 206.51110.43810.