MEMORANDUM

TO: Gary Superman, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

Wayne Aderhold, Project Manager

FROM: Gary Davis, Roads Director

DATE: March 24, 2005

SUBJECT: Resolution 2005-029

Kenai Spur Extension Project

After several years of reviewing the requirements and guidelines relating to a $6,000,000 congressional appropriation to extend the Kenai Spur Highway, the Kenai Peninsula Borough has completed the first phase of this project, the NEPA scoping phase, which has provided several questions that must be answered. Primarily, "Where do we go from here?" The outcome of the scoping phase indicates we will need to perform an environmental impact statement (EIS) anticipated to cost over $2.5 million.

This resolution supports continuing with the next phase of this project, the EIS. An important aspect of this resolution is the need to provide the borough's local 20 percent match for this phase, which must be cash. The in-kind opportunity, supplying gravel and providing the right-of-way, relates only to the construction phase.

The memorandum written and included in the March 15, 2005 Assembly packet under the Mayor's report (attached) includes several details of what has been accomplished to date and anticipated costs of continuing the project.