MEMORANDUM

TO:                Ron Long, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU:           John J. Williams, Borough Mayor

FROM:          Craig Chapman, Finance Director

Mark Fowler, Purchasing/Contracting Officer

CC:                Mark Beals, Bear Creek Fire Chief

DATE:           August 23, 2006

SUBJECT:    Resolution 2006-081, authorizing the Bear Creek Fire Service Area to purchase $30,000 of hose with funds to be provided by canceling a prior appropriation

The assembly authorized the purchase of a new fire apparatus for the Bear Creek Fire Service Area through Resolution 2006-069. Additive alternate 1, which was not awarded due to a lack of funding, was for the purchase of a pumping system, fire hose, and other related items. The service area is in need of fire hose for the new apparatus. The successful bidder on the apparatus, W.S. Darley and Company, has agreed to separate the cost of the fire hose from the other items included in additive alternate 1 and allow the service area to purchase the fire hose at the price included in the original bid, $1,040 per section. This is a savings of approximately $700 per section off the list price.

The Bear Creek Fire Service Area Capital Project Fund has allocated capital funds in account 442.51210.07421.49999 in the amount of $150,000 for a water supply tanker as part of its capital equipment replacement plan. This appropriation was to be the match needed if the service area received a grant for a new tanker. No grant was received. The service area requested that $30,000 from this project be redirected to project 442.51210.07422.48514 for purchase of fire hose for the new tanker, and that the remaining balance ($120,000) on project 07421 be closed to its capital project fund balance. These funds would be available to support future appropriations.