MEMORANDUM 05-79

TO: Mayor Hornaday, Homer City Council

FROM: Walt Wrede

DATE: April 22, 2005

SUBJECT: Ordinance 05-24: Local Match

Ordinance 05-24 is on the Agenda for public hearing and second reading. This ordinance accepts and appropriates $400,000 in Federal Highway Funds that are earmarked for Arctic Winter Games transportation improvements. There is a 9.03% local match required in order to access the money. This amounts to $36,120. At the last meeting, I told the Council that I would be speaking with the Homer Hockey Association and the English Bay Corporation about possible participation. I also said I would speak with DOT/PF about the extent to which in-kind services could be included.

It appears that in-kind services can be counted as the required local contribution but there are some restrictions on that and we will not know how much we can count until the MOU is signed and we know what role the City will play in the actual management of this project. It does not appear that Homer Hockey Association will be able to help. The English Bay Corporation is very willing to help and it agreed to split the cost with the City 50-50. So in other words, we will see how much of the match we can count as in-kind services and then the Corporation and the City would split the rest. Under this scenario, the most the City’s match will be is $18,060.

RECOMMENDATION: Approve Ordinance 05-24. Authorize the Manager to execute the necessary documents, use as much in-kind services as possible as a match, and split the remaining cash match with the English Bay Corporation.