MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

Rob Robson, Director of Capital Projects Division

FROM: Mark Fowler, Purchasing and Contracting Officer

DATE: September 30, 2004

SUBJECT: Resolution 2004-097; Authorizing Central Peninsula General Hospital, Inc. to Enter Into a Sole Source Contract for Modifications to the Current MRI Building to Accommodate the New MRI.

The attached resolution authorizes CPGH, Inc. to proceed with a sole source contract with Siemens Co. for building modifications to accommodate the new MRI for the Imaging Department, in an amount not to exceed $299,800.

Central Kenai Peninsula Hospital Service Area has budgeted $200,000 for the MRI Building Remodel and Shielding project in their FY 2005 Capital Improvement Programs. However, after further review, it has been determined that some shielding issues exist which has increased the quote to perform all the required building modifications to $299, 800, which is $99,800 over the budgeted amount. Of particular importance is the fact that the modular building was originally designed for a particular level of RF shielding rated for the former machine. This expenditure and subsequent modification would allow for a more appropriate resistance rated for the new MRI. Additionally, the chiller portion of the controller would be modified in size as well as receive an insulating housing in coordination with the installation. CPGH Inc. will provide the additional funding required to complete the project.

This project has been approved by the Central Peninsula General Hospital Inc.'s Board of Directors as well as the Central Kenai Peninsula Hospital Service Area Board.

Service Area funds of $200,000 are available in CPGH Capital Projects Account Number 490.81111.05CH2.49125.