MEMORANDUM

To:                  Ron Long, Assembly President

                        Members, Kenai Peninsula Borough Assembly

Thru:              John J. Williams, Mayor

From:              Craig Chapman, Finance Director

                              Mark Fowler, Purchasing & Contracting Officer

Date:              July 20, 2006

Subject:         Ordinance 2006-19-07, appropriating funds for Central Peninsula General Hospital equipment

The attached ordinance appropriates $707,000 from the Central Peninsula General Hospital Plant Replacement and Expansion Fund for the replacement of patient monitoring and telemetry equipment at Central Peninsula General Hospital (CPGH). The current patient monitoring equipment is at the end of its life cycle, lacks current standard medical diagnostic technologies, is insufficient in quantity for the additional Intensive Care Unit rooms in the new facility, and would require significant relocation costs if it were to be used in the new building.

An evaluation committee consisting of physicians and staff at the hospital evaluated four proposals on basis of price, ease of use, technical capability, integration with Meditech, flexibility, equipment synergies, and customer satisfaction. Based upon this evaluation, Spacelab Medical was selected as the preferred vendor.

At its June 29, 2006 board meeting, CPGH, Inc. approved a resolution requesting use of Plant Replacement and Expansion Funds for this purchase. The Central Kenai Peninsula Hospital Service Area board approved the request by motion at its July 10, 2006 board meeting.

Shortened hearing has been requested on this ordinance. This equipment is needed in place prior to the completion of Phase II of the expansion project. It is necessary to order the equipment in August in order to meet this deadline.