A RESOLUTION PLACING A PROPOSITION ON THE OCTOBER 1998 BALLOT FOR VOTER APPROVAL WITHIN THE KENAI PENINSULA BOROUGH SOUTH PENINSULA HOSPITAL SERVICE AREA FOR THE EXPANSION AND UPGRADE OF SOUTH PENINSULA HOSPITAL

WHEREAS, On December 16, 1997, the Kenai Peninsula Borough Assembly approved by Resolution 97-088 the lease of approximately 1.45 acres from the City of Homer in order that South Peninsula Hospital could expand to better accommodate its long-term care needs; and

WHEREAS, on May 19, 1998, the assembly adopted Resolution 98-039 approving the expansion and upgrade of South Peninsula Hospital to provide necessary space and equipment for long-term care facilities, emergency, diagnostic imaging departments, and surgery departments, and providing that the construction be submitted to the voters for approval prior to a commitment of funds to the project; and

WHEREAS, the service area has an expansion reserve that can be used to fund the needed construction without increasing the tax levy or incurring debt; and

WHEREAS, the $9,238,756 cost of the needed construction will require voter approval pursuant to KPB 5.04.110 before expending funds from the expansion reserve; and

WHEREAS, it is anticipated the construction will take place in two or three phases over the course of approximately three years; and

WHEREAS, on June 4, 1998, the South Kenai Peninsula Hospital Service Area Board approved Resolution 98-01 supporting placement of a ballot proposition on the October 1998 election regarding expenditure of funds for the expansion and upgrade of South Peninsula Hospital.

NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH:

SECTION 1. That a proposition in substantially the following form shall be placed on the ballot at the October 6, 1998 election:

PROPOSITION NO. _________

Shall the South Kenai Peninsula Hospital Service Area plan, design, engineer, and construct an expansion and upgrade of the South Peninsula Hospital to provide necessary space and equipment for the long-term care facility, and the emergency, x-ray, and surgery departments? The estimated $9,238,756 project would be funded from the existing tax rate and other sources available to the service area, without incurring bonded indebtedness.

YES _______ NO _______

SECTION 2. That the proposition in Section 1 must receive a majority vote of the qualified voters in the South Kenai Peninsula Hospital Service Area voting on the question to be approved, and such approval shall satisfy the voter approval required in KPB 5.04.110 for this capital improvement project.

SECTION 3. That this resolution shall be effective immediately upon its adoption.

ADOPTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 14TH DAY OF JULY, 1998.

Jack Brown, Assembly President

ATTEST:

Linda S. Murphy, Borough Clerk