MEMORANDUM

TO: William Popp, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Borough Mayor

FROM: Bonnie L. Golden, Grants Manager

DATE: September 13, 2000

SUBJECT: Resolution approving capital projects for funding under the State's fiscal year 2001-2002 municipal capital matching grant program.

In 1993 the Legislature established the Capital Project Matching Grant Programs, governed by the provisions of Alaska Statute 37.06. In accordance with AS 37.06.010(d), applications for grants under this program must be submitted no later than October 1 of each year. The Borough has participated in this program for the past eight years. Generally, previous grant requests have been for our road improvement program.

The attached resolution approves the list of capital projects to be submitted to the state for funding under the FY 2002 matching grant program. As in the past, the only project on the list is our road improvement program. The list of specific road projects (Form B of the grant application) will be approved by the Road Service Area Board at their meeting on September 19, 2000, and provided to the Assembly during its meeting on September 26. Upon Assembly approval, the application will be submitted to the Department of Community and Economic Development for further review and inclusion in the Governor's proposed capital budget for fiscal year 2002.

The level of funding for the Capital Project Matching Grant Program is determined during the legislative session. The required matching portion will be provided from Road Service Area funds. State funding for the FY 2002 program is expected to remain at the same level as the past three years - approximately $494,000. The application will request funding above this level. Requesting more than the anticipated amount provides the Road Service Area flexibility in completing the projects. If for some reason a project cannot be initiated or completed as originally anticipated, road crews can immediately proceed to the next project on the list. Projects will be completed in priority order until grant funds are depleted. Remaining projects will be kept on the Road Service Area's list of projects and completed as time and funding are made available.

/bg

Attachments (Resolution, Grant Application Forms A and B)