The Kenai Peninsula Borough Assembly adopted a resolution approving an increase to the limitation on the total cumulative annual cost of real property leases in which CPGH, Inc. is the sole lessee.
Borough Mayor Charlie Pierce said that the CPGH Inc. administration recommended an increase of $250,000:
“In the agreement with the hospital, section 16 describes some limitations in the cumulative annual cost of real property that is leased and the current value of that amount, the current amount is $400,000. What this resolution is doing is raising that amount to $650,000. It’s doing that in conjunction with the purchase of the surgery center. As a result of the purchase of the surgery center, the amount needs to be raised and the proposal is to raise it to $650,000.”
The Borough entered into an operating agreement with Central Peninsula General Hospital, Inc. for CPH’s operation, and to provide other healthcare programs and services, on a nonprofit basis in order to ensure the continued availability to the service area residents. Under section 16 of borough code, CPGH Inc. may enter into leases in which it is named the lessee without complying with a previous paragraph so long as “no obligation whatsoever is imposed on the borough. Total and annual cost of such leases shall not exceed $400,000. Increases to the cumulative annual limitation must be approved by the Borough Assembly by resolution.”
The CPGH Inc. board, at its June 30, 2022 meeting, approved the recommendation and requested that the Borough Assembly approve by resolution an increase of the total cumulative annual cost.
The resolution stated that CPGH, Inc. is the sole lessee under seven current real property leases.
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