HomeMy WebLinkAbout1966-11-30 Council Minutes - Special MeetingSPECIAL COUNCIL MEETING - HOSPITAL - KENAI JR. III SCHOOL 30 NOVEMBER, 196b
The meeting was called to order at j:0U p.m.; roll call showed members presents
Bob Bielefeld, Chester Cone, Bud Lofstedt, Gene Morin,, Chrl Seaman and Mayor James
G. Dye; Members absent - Roger Meeks.
City Manager James W. Harrison was also present.
Mayor Dye explained the reason for the meeting was to determine whether or not the
people wanted a temporary hospital until such time as the Central Peninsula Hospital
can be finished; since the answer to this depended on the progress of the C.P.H. he
asked if a report could be given.
He declared the meeting open to public hearing and Per Osmer, representing
the Central Peninsula Hospital Board,addressed the Council and audiences
The C.P.H. to being built with an SBA loan of $35U,000 which has been approved
and the first payment already disbursed. Application for the second payment went in
about 3 weeks ago. Subsequent to that time, they had raised $509000 from citizens
In the Peninsular area within the last two weeks; most of this money came from
people in Soldotna and Kenai and from the oil companies.
They are building the full-size building, but will have only enough money to
put in 28 beds; �e•60 2 occupancy e�h is enough to meet the requirements
of the SBA loan, and will allow them to meet the payments on the loan; catering ser-
vices will furnish food as they can says $50,000 by not building the kitchen at this
time; laundry facilities will also be done outside; steam tables 8 warming facili-
ties will be provided; by paring dowa; they have managed to complete this much of
the building for $40000009 and he has the word of the contractor that this much can
be completed by March of 19671 they have in storage about $1,000 in equipment and
have pledges for another $8,000 for equipment; Civil Defense is going to assi4t in
obtaining surplus equipment in Anchorage; they are also contacting other Hospitals -
for instance,Providence Hospital has beds they hope to get for about 10c on the dollar,
The question was raised as to whether or not the State Health Dept. Accredit-
ing Board would allow catering service. Osmer says this is being done all over the
U.S., but he will check for sure and let the Council know; he says this is the modern
way of running small hospitals because kitchens are too expensive; they already have
some of the equipment for steam tables and warming equipment.
The painting job alone was Fping to cost $18,000; they have men in town who
are painters and not working, so this will be done by them4
They will probably continue with the Fund Drive to finish the $584,000 Hospi-
tal, as this is what the total package will cost. They hope to have enough money by
March 167 to complete the entire facility; but they are planning to begin using the
1 28 bed portion in March of 167. It would cost about $100,000 to furnish new equip-
ment; thus the search for surplus will result in a large saving.
Councilman Cone said he and other members of the Council had heard rumors that Dr.
Struthers in Kenai might leave unless hospital facilities are provided; hence Council
was trying to get something done; The City does not want to do anything that would
interfer with the Hospital facility that is being built by the Central Hospital Assoc.
Consequently, a group of businessmen, Luke Caro, Bob Oehler, Carl Seaman and
Dr. Struthers had formed a committee to see about a temporary hospital until the
CPtieoul3 be finishedm was done by the private group as the City has many urgent
projscut i.e. streets,#, sport expansion, water and sewer expansion; gas
distribu-tion; power expansion --all of which cannot be handled by the individual, but must be
done by Government. Council thought if the Hospital could be accomplished privately,
the Government then would be free to do these other things.
Councilman Seaman reported this private committee had found the second story of the
Professional Building could be made into a temporary hospital for $80,000. Permis-
sion for a temporary facility was granted by the State of Alaska, Fire Marshall, etc.
Plans were drawn which would allow this second floor to be used as a clinic or doctor's
offices once the patients were moved to the CPH; This $80,000 would provide It beds
nurses quarters, small kitchen, but no equipment.
Special Council Meeting Minutes - Hospital 30 Nov 61 page two,
The owner of the building, Bob Oehler, estimated it would cost $50,000 to
get the second story ready to lease to anyone; it was decided he try to get a
loan for this amount, and the remaining $30,000 be under -written by the City; the
plans are ready, and this facility can be ready within 60 days.
Council thought the public should be made aware of all this before taking
any kind of stop to try to fund such an undertaking. To date, Oehler has not re-
ceived approval on his application for the $50,000 loan.
Dr. Struthers stated he would.furaidh the equipment for this temporary hospi-
tal.
on
There was discussion/potential population growth - it is estimated there would be
about 159000 people in this area by 1970; 32 beds would take care of a population
of 25 to 30 thousand. The CPH is designed to be expanded to a 75 bed hospital, so
should be sufficient for many years to come.
There was also discussion on the financial structure of the CPH; this will be owned
by the stockholders who will vote on a Board of Directors who will run the facility.
(;fast stress was put on the fact that the Kenai facility would be only a temporary
device to be used until the Central Peninsula Hospital is ready for occupancy; it
was also brought out that Dr. Struthers would be able to use the CPH as would any
other Dro on the Peninsula.
Fire rating standards were discussed and it was brought out a 1 hro fire rating is
necessary for a hospital; in answer to a question it was revealed there is already
a building in Kenai which meats fire -rating requirementst The un-completed McComas
Bdlg., could be fixed up for a Hospital for about $400000; McComas stated he would
fix it if the City would agree to a 6 yr. lease agreement with option to buy; the
lease cost would be 500 a sq. ft.; there are 9400 sq* fto in the bldg.; it is a one
hour fire -rated bids., and has a sprinkler system; this would provide about 20 beds
and four bassinets; also kitchen, etc.; the bldg* is appraised at $274000 right now;
it would take 60 to 90 days to get this ready for occupancy; the 040,000 would not
Include the equipment --that would be extra.
not
Councilman Bielefeld stated he could/ass saddling the tax -payers with a hospital
facility when there will be one within ten miles of here in the next few months.
This was in response to questions from the floor as to why not have two hospitale--
_� one in Kenai, and the other Central Peninsula Hospital.
It was stated this temporary facility would never have come up if it had been
known the permanent facility would postively be finished by March of 167.
Speakers from the floor were: Dr. Bailey, Dr. Struthers, Mr. 6 Mrs. Carl Roberts,
Mrs. Barron Butler, Mrs. Snyder, Norma Nelson, Jerry Harding, Mrs. McBride, John
Nielson, Mr. McComas, Mrs. Hornaday, Marie Williams, Mr. Hamilton, Ruby Coyle, Doris
Swires, Phyllis Morin, Mr. Snyder, Betty Warren, D. D. Drowley, Bill Merritt, Jerry
Thompeon, Mrs. Bailey, Keith Dickson .and Jim Bookey.
Mayor Dye asked all qualified voter in Kenai to stand; 52 people arose; he then
- asked those not in favor of the temporary hospital to be seated; 50 people remained
standing.
Jerry Harding then said he thot we owed it to the people of the area to
stand by them and support the Central Peninsula Hospital; that it would take about
120 days to get this bl4ge ready as against a possible 60 days to get the temporary
facility ready; if Dr. Struthers can't make a living now, it might be better to
subsidize the Dr. for a few months to get him to stay in Kenai; but the best things
is to have the people of Kenai and Soldotna work together to get the CPH completed.
Mrs. McBride wanted to know if the time period was up for the committment
the citizen's Committee had made to Dr. Struthers to come up with facilities. Coup.•
cil said this period was not up yet. She is opposed to a raise in taxes to finance
this temporary facility.
Special Council Meeting - Hospital 30 Nov 66 page three
In view of the public opinion, Seaman thought the City should start work tomorrow
on temporary facilities for a hospital.
CVty Manager Harrison, speaking as Budget officer, said he does not know of anyway
the City can get now money into the coffers that is not already budgeted; at last
budget time Council had done away with the personal property tax, but had decided to
hold expenditures to a minimum and try to stay within the budgeted income in order
not to raise property taxes on real property= this would be a tight squeeze owing
to the loss in revenue from personal property taxes; Council had determined not
to undertake any new projects, but hold it to normal operations; under the law,
If the City is to take on this new financial responsibility he must have time to
allocate monies for this purposes; whether or not the money is spear, it must
be allocated, and this will mean omitting smathLalt already planned; this will
take some time to study the budget and see what can be done; he asks for at least
a week to study thine
The public hearing was declared closed and most of the audience departed.
Council decided to most as a Committee of the whole next Wednesday at 7i00 p.m*
to further study this situation. Gene Morin will act as Chairman.
Meeting adjourned MOO p.m.
Respectfully submmiii-�,ttedd,
Prances Torkilsen
CVty Clerk
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