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: Anchor Point Fire and Emergency Service Area
DATE: June 8, 2006
SUBJECT: Resolution 2006-059: Authorizing Participation in the State’s Community Develop Block Grant Program in Cooperation with the Anchor Point Fire and Emergency Service Area
The Anchor Point Fire and Emergency Service Area (“Service Area”) has for many years identified the need for a fire station in the Nikolaevsk community. The Service Area is currently renting one stall in the Nikolaevsk water treatment plant that houses Engine 2. A new ambulance is being ordered and there is a need for a brush truck and tanker to be housed in Nikolaevsk. With no place to house the additional equipment, this poses a big problem. A fire station in Nikolaevsk has the support of the Village Council and the Village Safe Water Council.
The Alaska Department of Commerce, Community and Economic Development (“DCCED”) has notified the Borough of the availability of grant funding through its CDBG program. Eligible applicants are any municipal government entity as defined by Title 29, except the Municipality of Anchorage. Municipalities may submit a joint CDBG grant application in cooperation with a service area. The maximum grant award is $500,000 and must be for activities that benefit low and moderate income persons. Grants are awarded on a competitive basis. The Borough is an eligible applicant. The Nikolaevsk substation project meets the grand criteria as an eligible project.
The Service Area has requested that the Borough submit a grant application on its behalf, seeking $500,000 for the Nikolaevsk fire station. Adoption of the attached resolution will allow a joint application to be filed. If the Assembly provides authority to proceed with this application, it must be accompanied by a cooperative agreement between the Borough and the Service Area. The agreement must state that “the Borough has the ultimate responsibility to assume all obligations under the terms of the grant, including assuring compliance with all applicable laws and program regulations and performance of all work in accordance with the contract.” In effect, the Borough is the grant applicant and recipient and has ultimate responsibility for the grant. Borough costs, such as administration and project management by our Capital Projects Division, would be charged to the grant. It should be noted, however, that the Service Area would provide any cost share requirements. Upon completion of the project, they would also have full responsibility for operations and maintenance of the facility. This will be provided by the Anchor Point Volunteer Fire Department and Rescue, Inc. pursuant to a contract with the Borough and Service Area.
Applications are due to DCCED in Fairbanks by July 21, 2006. Grant awards will be announced in October 2006. If a grant is awarded to the Borough, an ordinance accepting and appropriating the grant funds, and the matching funds, will be submitted to the Assembly for action.
/bg