MEMORANDUM

TO: Gary Superman, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale L. Bagley, Mayor

THRU: Max Best, Planning Director

FROM: Paul Ostrander, Land Management Officer

DATE: April 21, 2005

SUBJECT: Resolution 2005-040 Concessionaire's Agreement for Eagle Lake Material Site

KPB has operated the Eagle Lake Gravel Site located at the end of East End Road in the Homer area since 1994. Since 1995 KPB has contracted with East Road Services, Inc. to manage and operate the Eagle Lake Gravel Site. The contract to manage this site has been bid competitively three times with East Road Services, Inc. submitting the only bid for the current contract in 2000. The current management contract expired October 15, 2004. The administration recommends renewing the contract with East Road Services, Inc. an additional year under the same terms and conditions as the original Agreement based on the following:

� The Eagle Lake Gravel Site is in a remote location that limits the plausible number of participants in a competitive bidding process.

� East Road Services, Inc. has been the successful bidder since 1995, and was the only bidder in 2000 for the last contract renewal.

� Managing the Eagle Lake Gravel Site is complex and the KPB continues to be satisfied with the services provided by East Road Services, Inc.

� East Road Services, Inc. is willing to enter a one-year contract at the same rate schedule as the prior contract.

� Renewing the contract with East Road Services, Inc. an additional year is deemed the most effective means to continue with a concessionaire to operate the Eagle Lake Gravel Site.

Attachments

� Resolution 2000-59

� Concessionaires Agreement

� Aerial Photo