MEMORANDUM

TO: William Popp, President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

THRU: Robert L. Bright, Planning Director

FROM: Max Best, Borough Surveyor

DATE: June 30, 2000

SUBJECT: Resolution Authorizing a Contract with East Road Services for Management of the Eagle Lake Gravel Site near Homer

The Kenai Peninsula Borough (KPB) has developed a gravel source located approximately three (3) miles north of Mile 19, East End Road, Homer that is referred to as the Eagle Lake Gravel Site. A site manager has managed the Eagle Lake Gravel Site since 1996. The site serves the general public, governmental agencies, and KPB Road Maintenance.

In-place materials as well as value-added materials, as produced by the site manager, are sold on a cubic yard basis. The site manager also does site restoration, access road maintenance, and site planning for future needs. All costs including KPB royalty, insurance, equipment, labor, maintenance, as well as quantity determination and record keeping are the responsibility of the site manager. All revenues derived from the Eagle Lake Gravel Site go to the Land Trust Fund. Expenditures for site management will be charged to the Land Trust Fund.

A request for proposals for site management was advertised in the three local papers on May 18, May 25 and June 1, 2000. East Road Services submitted the only proposal. The East Road Services proposal was reviewed by three KPB representatives and found to meet the proposal specifications. It is recommended that the KPB enter into a contract with East Road Services for site management of the Eagle Lake Gravel Site. The contract will be for a three (3) year term, with a possibility of two (2) one (1) year renewals.