MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

Jeffrey Sinz, Finance Director

FROM: Walter Robson, PW/MPD Director

DATE: May 24, 2001

SUBJECT: Ordinance 2001-19-31, Supplemental Funding for the Kenai Health Building

In finalizing the contractor's construction contract for the Kenai Health Building, it was determined that additional cost would be incurred to complete the changes necessary for installation of the Siemens x-ray equipment. The additional cost of $32,000 will come from the CPGH Plant Expansion and Replacement Fund. The Service Area Board is expected to authorize the increase of the additional cost at their June 18th meeting.

Additionally, minor changes including an electronic door and workstation modifications were desired and agreed to by both the State of Alaska Department of Health and Social Services ("DHSS") and CPGH. These costs total $10,055 and will be paid for by the State of Alaska.

All expenditures for this project will be charged to account number 600.81111.99PHC. The project is nearing conclusion and will necessitate that the request be made for shortened hearing in order to allow timely interface with the project's construction contract.