MEMORANDUM

TO:                    Ron Long, Assembly President

                           Kenai Peninsula Borough Assembly Members

THRU:              John J. Williams, Mayor

DATE:               September 27, 2006

SUBJECT:         Ordinance 2006-19-19, accepting and appropriating two grants from the State of Alaska totaling $405,000 for school equipment, supplies, and projects

Ordinance 2006-19-19 is scheduled for public hearing on October 10, 2006. The administration requests that the Borough’s administrative fees be waived on the two grants that are scheduled for appropriation in this ordinance.

The administrative fee was established to compensate the Borough’s General Fund for costs it incurs in processing grants. In this particular instance, with the exception of filing the grant report, the school district is paying all required expenditures and taking all administrative action. The administration believes that in this case, waiving the administrative fee would be appropriate. Please amend Section 2 as follows:

SECTION 2.      That grant funds are appropriated to the following accounts:

[$291,149] $300,000 to account 271.94910.07313.49999 – contingency

[$ 8,851 to account 271.94910.07313.61990 – administrative fees]

[$101,902] $105,000 to account 271.94910.07311.49999 – contingency

[$ 3,098 to account 271.94910.07311.61990 – administrative fees]