Borough committee introduces ordinance to accept HRSA congressional funds for South Peninsula Hospital power plant replacement

The Kenai Peninsula Borough Finance Committee considered ordinance 2024-19-34, which would accept and appropriate congressionally directed spending from the U.S. Department of Health and Human Services, Health Resources and Services Administration (HRSA) to upgrade the mechanical and power plant at South Peninsula Hospital. The ordinance was introduced with a public hearing scheduled for April 15, 2025.

Mister Hedges told the committee the funds have been in process for some time and HRSA recently confirmed availability. “The purpose of these funds is gonna be for the replacement of the power plant, at South Peninsula Hospital and their emergency backup power system, which is in very desperate need of replacement,” he said. He said the emergency backup system is a first priority and that residual funds would target other mechanical systems.

Committee members asked about project timing and risks. Miss Eklund asked why the matter was brought forward as a laydown rather than waiting until the April 15 meeting; Hedges said the hospital experienced a blackout this year due to generator failure and the borough wants to move quickly to replace the system and to reduce the risk of the funds being withdrawn. When asked if the existing generator would be relocated, Hedges said the intent is to relocate equipment outside the building and remove the current power plant inside the building.

The ordinance was introduced for hearing on April 15, 2025. The transcript excerpt records committee discussion and staff responses but does not record a committee vote or final appropriation.