MEMORANDUM

TO: William Popp, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

Jeffrey Sinz, Finance Director

FROM: Walter Robson, PW/MPD Director

DATE: October 10, 2000

SUBJECT: Ordinance 2000-19-16, Supplemental Funding for the Kenai Health Building

Award of construction for the Kenai Health Building was per Resolution 2000-058. Due to the magnitude of the acceptable bid versus available funds, negotiations were necessary to allow key components to be installed. This request is for the appropriation of $100,000 additional funds, to allow the Direct Digital Control System ("DDCS") component to be added to the project. Action in support of this request is per a proposal to be enacted by the CPGH, Inc. Board of Directors at their next meeting and similarly that of the CPGH Service Area Board, at their next meeting on Oct. 18, 2000.

One item excluded in the original project was a DDCS that would monitor the operations of the HVACV systems, automatically onsite and remotely when needed. CPGH has standardized the Siemens' system in the hospital facility proper, and is requesting that this additional work be considered to assure common systems throughout. Installation of this like system would allow familiarity of maintenance and stocking of routine components between the two facilities. CPGH medical facility trained staff will be maintaining this building.

Additionally, minor changes to the floor plan and particular finished wall sections, were desired by both the State of Alaska Department of Health and Social Services ("DHSS") and CPGH. These costs will be shared equally between each party and are estimated to total $24,700 ($12,350 each).

If approved, the borough's share of the floor plan change funding ($12,350) and 100 percent of the DDCS funding ($100,000) will be provided from the CPGH Plant Expansion and Replacement Fund. The DHSS will reimburse the borough for one half of the cost of the DDCS through provisions of the facility Maintenance and Operating Agreement currently in place. All expenditures for this project will be charged to account number 600.81111.99PHC.