MEMORANDUM

TO: Gary Superman, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

Max Best, Planning Director

FROM: Marcus A. Mueller, Land Management Agent

DATE: January 6, 2005

SUBJECT: Resolution 2005-010 Authorizing CPGH, Inc. to Enter into a Three-Year Lease with SOL-KEN Enterprises in an Amount Not to Exceed $108,648

Central Peninsula General Hospital, Inc. is required by the Lease and Operating Agreement with the borough to obtain authorization from the Assembly for capital leases that obligate the Borough, or Central Kenai Peninsula Hospital Service Area, for more than a one-year period and in excess of $100,000. The borough, or service area, shall ultimately be obligated to pay debt service due on any debt issued to the extent such debt is authorized by the borough assembly. Such leases are considered debt obligation requiring assembly approval.

The attached resolution authorizes CPGH, Inc. to enter into a three-year lease of space with SOL-KEN Enterprises. The total debt obligation is $108,648 over the three-year period.