TO: Ron Long, Assembly President
Members, Kenai Peninsula Borough Assembly
THRU: John J. Williams, Kenai Peninsula Borough Mayor
Tim Navarre, Chief of Staff
FROM: Colette Thompson, Borough Attorney
Craig Chapman, Finance Director
DATE: September 28, 2006
SUBJECT: Resolution 2006-086 authorizing the administration to amend the lease and operating agreement for Central Peninsula General Hospital to change the date notice of termination shall be given
The existing lease and operating agreement with Central Peninsula General Hospital, Inc. (“CPGH, Inc.”) requires that the borough give notice of termination by December 31, 2006, or the contract will be automatically renewed for five years. This resolution would allow an additional three months for the borough to negotiate a new agreement with CPGH, Inc. before it must give the notice of termination. Members of the borough administration and the CPGH, Inc. administration met in mid-September to begin discussions regarding possible amendments to the lease and operating agreement. At this time, the two administrations are working together to develop a revised agreement for consideration by the Central Kenai Peninsula Hospital Service Area board (“SAB”) and the CPGH, Inc. board for their comments and approval. Upon receiving their recommendations, the administration intends to present the revised agreement to the borough assembly for approval by ordinance. To accomplish this in a timely manner under the current deadlines, the ordinance would have to be introduced for presentation to the assembly on November 21, 2006, at the latest, with a hearing held on shortened time at the December 5, 2006, meeting. The administration does not believe this is reasonably doable. After discussing this matter with the CPGH, Inc. administration, it is believed that a new agreement would be ready to present to the assembly on or before the second meeting in February 2007 for final hearing during the second meeting in March 2007. For this reason, the administration requests approval by the assembly to amend the agreement accordingly.