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Assembly committee flags multi‑million dollar hospital equipment needs, urges phased approach

July 04, 2025 | Kodiak Island Borough, Alaska


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Assembly committee flags multi‑million dollar hospital equipment needs, urges phased approach
Assembly Member Jared reported during committee reports that the borough’s health facilities advisory board reviewed several time‑sensitive infrastructure and equipment projects at the local hospital and recommended breaking large items into phases to reduce short‑term budget pressure.

“...the chiller, of course. That one is going to be the, the the rough estimate there is about 3 and a half million. The reverse osmosis, water and steam generator systems, will be about a, 1,500,000, and the steam generator actually went down earlier this week. It's a good thing we have a backup, but that's not a permanent solution,” Jared said during his report.

Jared also said the sterile processing (SPD) equipment alone was estimated at about $4.5 million and stressed that many of the items have long lead times and face annual price increases of roughly 3–7 percent. The committee asked hospital staff to phase larger projects so they fit within current funds while the borough proceeds toward forthcoming lease negotiations.

Why it matters: the listed equipment — chiller, reverse‑osmosis water systems, steam generator and SPD machinery — are central to hospital operations. Failures or extended downtime can affect sterilization, HVAC and clinical services. The committee noted the steam generator had failed earlier in the week and that a temporary backup was in use.

Supporting details and next steps

- Cost estimates cited by the committee: chiller roughly $3.5 million; reverse‑osmosis/water and steam systems about $1.5 million; sterile‑processing equipment about $4.5 million.

- The advisory board recommended breaking large projects into phases to match available funds and to account for long lead times; lease negotiations with the hospital will continue.

- Interim Engineering & Facilities Director Cody Allen was present and available to answer questions, according to the staff report.

Assembly and staff context

Jared emphasized the time sensitivity and rising costs for replacement equipment. The assembly will continue hospital discussions during upcoming lease negotiations and budget planning, and staff signaled that project phasing would be requested of hospital leadership to make large capital needs more manageable across fiscal periods.

Ending: The committee’s report places hospital infrastructure among near‑term priorities for the borough; assembly members signaled continued review and follow‑up during work sessions and lease talks.

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Scribe from Workplace AI
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