MEMORANDUM

TO: Gary Superman, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

Chris Mokracek, CES Fire Chief

Scott Holt, Finance Director

Max Best, Planning Director

Paul C. Ostrander, Land Management Officer

FROM: Marcus A. Mueller, Land Management Agent

DATE: July 21, 2005

SUBJECT: Resolution 2005-076 Authorizing an Amendment to a Rental Agreement with Funny River Emergency Services to Expand the Property Leased by KPB to Include All of Lot 5 Salmon Bend Subdivision, FRVFD Addition, KNRD 2002-24, Including the Funny River Fire Department and Disaster Relief Building From Funny River Emergency Services and an Option to Purchase the Same to Support the Expansion of the Central Emergency Service Area

On October 5, 2004, voters approved Ordinance 2004-22 to expand the Central Emergency Service Area (CES) to include the Funny River area.

The attached resolution would authorize the Borough to execute a lease amendment to expand its existing space lease from Funny River Emergency Services (FRES) to include the entire premises, being all the real property in the subject lot. The lease amendment would also delete provisions for renewing the lease, and instead include an option to purchase the property from FRES for $1.00. Ownership in the Funny River Fire Station will vest in FRES until they have had the opportunity to expend existing grant monies.

The resolution specifies that expenditures for the lease and acquisition will be charged to the CES Operating Fund, Acct No. 211.00000.00000.27910.