MEMORANDUM

To: William Popp, Assembly President

Kenai Peninsula Borough Assembly Members

Through: Dale Bagley, Mayor

Through: Jeff Sinz, Finance Director

Through: W. L. Robson, P.E., PW/Major Projects Div.

From: Richard A. Riggs, P.E. Major Capital Projects Administrator

Date: February 2, 2000

Subject: Ordinance 2000-06

The State Department of Administration awarded municipal grant number 8/98-007 to the Kenai Peninsula Borough for design and construction of a Kenai River Visitors Center in Soldotna (a.k.a. Kenai River Center). The Mayor was authorized to accept this grant, totaling $1,750,000, with the enactment of KPB Ordinance 97-57. The effective date of this grant was October 17, 1997.

Twenty percent of the grant ($350,000) was paid to the Kenai Peninsula Borough, as an advance, 10 days after the effective date. Since that time, interest has accrued on the advance and as of December 31, 1999, interest income totaled $31,402.64.

During the winter and spring of 1999 the design of the facility was performed and the construction contract was executed on August 23, 1999. However, due to budgetary constraints, several construction elements were eliminated from the awarded contract.

The attached KPB Ordinance transfers and appropriates the interest income earned to date to the account for the Kenai River Center Project. These additional monies will be utilized to perform some of the construction elements that were eliminated from the original construction contract. A shortened hearing has been requested to accommodate lead times and scheduling associated with the construction activities.

Attachments: KPB Ordinance 2000-06