MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Finance Director

Craig Chapman, Borough Controller

Rob Robson, Public Works Director

DATE: November 5, 2003

SUBJECT: Ordinance 2003-19-28, Appropriating $1,500,000 for preliminary design of the Central Peninsula General Hospital (CPGH) expansion project

Bond proceeds for the CPGH expansion project are expected to be appropriated in January 2004. In order for construction to start in the summer of 2004, it is necessary to award a contract for preliminary design in December 2003, which is prior to the bond proceeds being appropriated. The estimated cost of the preliminary design contract is estimated to be $1,500,000.

The attached ordinance would authorize the appropriation of one million five hundred thousand dollars ($1,500,000.00) to fund the first part of Professional Design Services for the Central Peninsula General Hospital expansion project. The CPGH board has authorized the use of $1,000,000 from its plant, replacement and expansion fund and the Central Kenai Peninsula Hospital Service Area Board will consider approving the use of $500,000 from its fund balance to finance this contract at its meeting of November 10, 2003. Action by the service area board will be reported to the assembly following that meeting.

When the bond funds are appropriated, the hospital plant, replacement and expansion fund and the service area will be reimbursed for this funding.