MEMORANDUM



TO:                Ron Long, Assembly President

                        Members, Kenai Peninsula Borough Assembly


FROM:          John J. Williams, Kenai Peninsula Borough Mayor


DATE:           June 27, 2006


SUBJECT:    Ordinance 2006-31, eliminating the automatic expiration date for the exercise of transportation powers



            Alaska Statute 29.35.210 authorizes the borough to exercise transportation powers on both an areawide and non-areawide basis. The assembly enacted Ordinance 2000-19-06 to exercise transportation powers, which was originally scheduled to expire on September 12, 2001. In Ordinance 2001-27, the assembly continued the exercise of that power for an additional five years, until September 30, 2006. The borough has exercised transportation powers by partially funding the Central Area Rural Transit System, Inc., a nonprofit corporation, which is developing and implementing a public transportation system in the Kenai Peninsula Borough.


This ordinance would eliminate the automatic expiration date and instead recognize that the continued exercise of transportation powers is subject to the appropriation of funds by the assembly. This would eliminate the administrative requirement to approach the assembly periodically to determine whether the assembly wishes to continue funding transportation, when the assembly already addresses that issue during the budgetary process. It also recognizes that the assembly may repeal its authority to exercise transportation powers by ordinance at any time.