MEMORANDUM

TO:                   Ron Long, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU:             John J. Williams, Borough Mayor

Craig Chapman, Finance Director

FROM:            Bonnie L. Golden, Grants Manager

COPY:             Bear Creek Fire Service Area

DATE:             September 28, 2006

SUBJECT:      Ordinance No. 2006-19-29: An Ordinance accepting and appropriating $75,000 from the State of Alaska for a water tanker for the Bear Creek Fire Service Area

The Bear Creek Fire Service Area (“Service Area”) has identified in their 10-year capital plan the need for improving their water supply capabilities. The Service Area would like to replace its existing 20-year-old tanker with a new vehicle or new equipment, which will enhance operator and crew safety as well as improve department operations. Bear Creek is the only department on the eastern Kenai Peninsula with tankers and currently responds to mutual aid requests with Lowell Point, City of Seward, Moose Pass, U.S. Forest Service, and the Alaska Division of Forestry. Increased water capability is important for public safety, since the Bear Creek area has no hydrants. Improved water capabilities will assist the Service Area in serving its residents with the highest level of fire protection possible.

A request for funding a water tanker was included in the Borough’s 2006 State Funding Priorities as the Service Area’s number one priority. Funding for the project was included in Senate Bill 231, the State’s capital budget, which was passed by the Legislature and signed by the Governor in July 2006. The State Department of Commerce, Community and Economic Development has notified the Borough that $75,000 is available to the Service Area for a water tanker.

The total cost of a new water tanker is estimated to be $275,000. The Service Area has submitted a grant request for federal funding under the Assistance to Firefighters Grant (“AFG”) program. If a grant is awarded under the AFG program, the Service Area intends to purchase a new tanker. If additional funding does not become available, the Service Area will consider purchasing changeable parts rather than a new vehicle. Either way, a second ordinance will be necessary to appropriate sufficient funds to purchase either a new vehicle or the changeable parts. AFG award announcements will begin in November 2006. This ordinance is presented at this time as state law requires that the grant agreement be accepted promptly.

Attachments: Ordinance, DCCED notification letter