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:           July 7, 2006

SUBJECT:    Resolution 2006-066: Providing authority to participate in the Multi-Use Facilities Grant Program on behalf of Bear Creek Fire Service Area

            Multi-Use Program: The Denali Commission has a Multi-Use Facility Grant Program that is managed by the Alaska Division of Community Advocacy (DCCED). A request for proposals under the 2006 program was recently released. Four types of funding are available through the program: conceptual planning, design, construction, or renovation and repair. Communities with a population of less than 2,500 are eligible communities under the program. A municipal government is an eligible applicant. Priority funding under the program will go to uses associated with life, health, and safety. Proposals must be postmarked by July 14, 2006.

            Project – Public Safety Building: For the past few years, the Bear Creek Fire Service Area has been aware of the need to replace its existing 25-year-old fire station. Construction of a new facility has been listed as an objective in the Service Area’s budget for 2006 and 2007, as well as listed in the Borough’s legislative priorities for 2006. The current facilities no longer fulfill the needs of the Service Area. Due to tremendous changes, growth in population, and public demand for a higher level of service, the current fire station has become inadequate. It is intended that the new facility would house the fire department and offices for the Alaska State Troopers. Other potential users might be the Borough satellite office and the Seward/Bear Creek Flood Service Area office.

The project has been initiated through the award of a contract for schematic design documents. The Service Area would like to proceed to the next step in the process by having construction documents prepared, which would include a facility business plan and a plan for financing the construction phase. To help pay for this next phase, they would like to respond to the Request for Proposals recently released by DCCED. The proposal would request funding for the design phase, to include the development of construction documents, a facilities business plan, and a plan for financing the construction.

A formal request to submit a proposal will be addressed at the Service Area’s meeting on July 11, the same night that the attached resolution will go before the Assembly for consideration. Both the Assembly and the Service Area will need to approve the resolution before the administration could submit a proposal.

Under the Multi-Use Facility Program, the Bear Creek community is an eligible community, the Borough is an eligible applicant, and the construction of a public safety building is a priority project. The administration believes this proposal would be well received by the program reviewers.

            Until recently, neither the Borough nor the Service Area was aware that the RFP had been issued. Unfortunately, the time frame for submitting a proposal is very short; thus this resolution is brought to you as a lay down. The administration apologizes for bringing the resolution to you in this fashion. However, there is no guarantee another RFP for multi-use facilities will be issued, so the administration is attempting to take advantage of this funding opportunity that is currently available. Your consideration of the attached resolution is appreciated.

            As the total cost of the facility is projected to exceed $1 million, then voter approval will be sought before construction begins.

/bg

Attachment: Resolution