MEMORANDUM

TO: Gary Superman, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Gary Superman, Assembly President

DATE: February 3, 2005

SUBJECT: Resolution 2005-016, authorizing the North Peninsula Recreation Service Area to occupy portions of the Nikiski Elementary School

As you may recall, the borough accepted management of the Nikiski Elementary School on January 20, 2004, in Resolution 2004-005. In Section 3 of that resolution, management authority of the site was to be transferred to the North Peninsula Recreation Service Area ("NPRSA") on September 1, 2004, subject to NPRSA board and assembly approval of facility design and appropriation of certain necessary funds for required renovations. It was then determined that the necessary renovations would cost in excess of $1 million primarily to install a sprinkler system and bring the building into compliance with the Americans with Disabilities Act. Accordingly, the plan to occupy and assume control of that facility was stalled.

The NPRSA board encouraged the director to investigate the possibility of occupying portions of the facility for recreational purposes at a lower cost. These portions would include the gym, which is already occupied by the service area through an agreement with the borough, the former kindergarten room and bathroom facilities across the hall, and the former library room. The former kindergarten room would be used for arts and crafts and summer camp purposes, and the former library is intended to be used primarily for a teen center. It is anticipated that the former library could also be made available for occasional community meetings when it is not being used as a teen center.

Transferring these portions of the facility for use by the NPRSA would not invoke the fire marshal's requirement to install a sprinkler system throughout the entire facility, and accordingly could be accomplished at a greatly reduced cost. It should be noted that the portions intended for occupancy already meet the state fire code requirements for sprinklers. At this time the estimated cost is less than $77,000. This would be to install fire doors, two exit doors, a concrete pad, and some associated minor construction.

If adopted, this resolution would authorize the administration to negotiate an occupancy and use agreement with NPRSA in which NPRSA would help pay the costs associated with this building. It is intended that NPRSA would pay for its share of the borough's insurance costs based upon the square footage that it occupies, that it would provide routine maintenance of the portions occupied, and that it would pay the increase in utility costs associated with its usage of these areas in the facility. Your approval of this resolution would provide additional recreational opportunities to the Nikiski residents at a much reduced cost than previously contemplated and help offset general borough costs for this building. Your consideration would be appreciated.