MEMORANDUM

To: Ron Long, Assembly President

Kenai Peninsula Borough Assembly Members

Thru: John J. Williams

Kenai Peninsula Borough Mayor

From: Chris Mokracek, CES Fire Chief

Craig Chapman, Finance Director

Date: March 22, 2006

Subject: Appropriating $1,000,000 from the Borough's General Fund to reimburse the Central Emergency Services ("CES") Capital Project Fund for its contribution for construction of an emergency response center. O2005-19-47

At its meeting of November 18, 2004, the CES Board of Directors approved the expenditure of up to $1 million for CES's contribution for construction of an emergency response center. The board took this action based upon its assumption it would be moving CES's administrative offices and training center to this facility.

At its meeting of January 19, 2006, the CES Board of Directors took action to opt out of this facility. The Board of Directors believes that the taxpayers of the service area would be better served by having the administrative offices and training center remain at its current location, station number 1. The CES administration believes that administrative and operational continuity would be compromised should the administrative offices be relocated. Station number 1 is currently scheduled for remodeling in FY2008, and the board felt that the administrative offices and training space could be included as part of the remodel.

The CES Board of Directors is requesting that the Borough Assembly cancel its participation in the emergency response center and reimburse the CES capital project fund for the previous contribution of $1,000,000.