MEMORANDUM

TO: Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Rob Robson, Capital Projects Director

Jeff Sinz, Finance Director

DATE: October 10, 2002

SUBJECT: Ordinance 2002-19-23; Appropriating $400,000 from the Hospital Plant Expansion Replacement Fund for the programmatic design of an expanded Soldotna hospital campus

CPGH, Inc. has been working on a long term plan for the Central Peninsula General Hospital for more than one and one-half years. As described in CPGH, Inc. Resolution 2002-113, CPGH, Inc. hired American Health Facilities Development, LLC in May 2001 to prepare a facility master plan for Central Peninsula General Hospital. Following completion of that plan the Capital Planning Advisory Committee and CPGH, Inc. board of directors authorized American Health Facilities Development, LLC to reevaluate portions of its proposal, identify items considered necessary as opposed to desirable, and to reexamine the total project cost. The final recommendation from America Health Facilities Development, LLC was that CPGH, Inc. focus its efforts on expanding the Soldotna hospital facility, engage an architect to proceed with schematic drawings and begin the Certificate of Need process. This was based on an analysis of the needs and current debt capacity regarding three alternative expansion scenarios. It should be noted that the CPGH, Inc. board has not reached a final decision regarding which scenario to recommend to the borough but the programmatic and schematic design phases can be started before that final decision is reached. The hospital board expects to decide which scenario to recommend by the end of October, 2002. This ordinance would appropriate the funds necessary to accomplish the programmatic design of an expanded Soldotna hospital facility for the borough and approve the issuance of a request for proposal to select a qualified architectural firm to perform the work.