Hospital gets slice of federal pie

MAT-SU -- One of the remaining key pieces needed before construction on the new Valley Hospital facility can begin fell into place last week, with the passage of the federal omnibus spending bill.

On the list of federal appropriations is an appropriation for just over $5 million -- one of the largest lump sums coming into the area. That money will eventually be filtered to Valley Hospital, to cover 75 percent of the cost of providing water and sewer service to its new hospital.

"It's definitely a huge piece of that infrastructure development," Valley Hospital spokeswoman Elizabeth Ripley said Wednesday. "We were very pleased that [U.S. Sen.] Lisa Murkowski and her team worked so hard on it."

Valley Hospital worked hard on obtaining the funding as well, Ripley said. In addition to staff time in discussing the matter with Murkowski's office, the hospital hired a lobbyist to help bring the funding home. It's the first time, Ripley said, they've had a year contract with a federal lobbyist -- but it paid off, she said.

"I think that was an important piece of our success," Ripley said.

The money won't be spent right away -- the Regulatory Commission of Alaska has not yet begun hearing a case that will determine whether the water and sewer service will be provided by the city of Wasilla or the city of Palmer.

A lucrative offer for either city, the federal grant would cover up to 75 percent of the cost of running water and sewer lines to either Palmer or Wasilla. The line extension from Wasilla to the new hospital site is slightly shorter, at 21,000 feet for water and 22,300 feet for sewer, than an extension from Palmer would be. That line, Palmer City Manager Tom Healy said, would run about 25,000 feet from the city's existing water main, and about 25,800 feet from its closest sewer line.

Palmer contends they have a sewer and water system that could easily withstand the additional estimated 30,000 gallons each of water used and sewage generated by Valley Hospital. The new customer, Healy said, would not be subsidized by hikes in prices for existing utility customers.

Archie Giddings, Wasilla's public works director, said Wasilla's system can easily handle the extra load. And, he said, the extension would provide an added benefit to residents outside the city.

"One of the big benefits of running the utilities is the ability to have fire hydrants and fire protection," Giddings said. Wasilla's extension, he said, would run along the Parks Highway.

Although, in the end, either Palmer or Wasilla will receive the more than $5 million grant, the successful city must also come up with the remaining 25-percent match for construction of the line. Giddings said he and Wasilla Mayor Dianne Keller just returned from Juneau on a lobbying trip, seeking funding for the match, but said the trip didn't appear successful.

"It's not likely to happen," Giddings said. And the next round of grants from the Alaska Department of Environmental Conservation won't begin until fall, which may be too late for the project. The city is looking at other ways to generate the funding, Giddings said.

Healy said Palmer has some sources of funding available, but no decisions have yet been made.

"The city has reserve funds and loan funds available," Healy said. "We have not made a determination as to how the additional funding is going to be obtained. There are options available."

The RCA hearings over which city will provide utility service are set to begin March 30 and wrap up by April 5. Ripley said Valley Hospital is hoping the commission makes a final determination by the beginning of May.

Aside from closing the deal on several parcels of land the hospital is now holding options on, Ripley said the RCA determination is the largest hurdle remaining to development. A portion of the land the new hospital will be on is now owned by the University of Alaska, Ripley said, and must go through a public process prior to its sale. The other parcels, she said, are set to close at the same time as the University land deal goes through.

"We plan for that to happen in the first part of March," Ripley said. "The sooner we can start [on utility construction] the better -- that's critical to opening a new hospital."