By NICOLE GRULKE
News Staff Writer
ALPENA - Alpena Regional Medical Center Finance and Cost Containment Committee approved to recommend to the board the emergency room renovation project costs for $6,609,590. The 2,000 square foot internal expansion of the existing emergency department would convert 14 existing curtained treatment bays into private rooms, add seven additional private treatment rooms, a centralized team center, and the opportunity for bedside registration.
"This project has been reviewed by the building and grounds committee extensively," Chair James Arbuckle said.
Board attorney Jim Florip said the emergency room project consisted of two items.
"First we look at approval for the final budget for the emergency room," Florip said. "Second is recommending approval of letting the contract for construction to DeVere Construction."
The project is a five phase project completing around June 2016.
The second project approved by the committee to go to the board of trustees is the fire alarm replacement project. This would be a complete replacement of an antiquated system with a modern, supervised, addressable system to meet the requirements of the National Fire Alarm Code adopted by the State of Michigan.
"What we discussed was a total project cost of $578,200, which should be a recommendation to the board to approve that," Florip said. "Secondly to recommend to the board that a low bidder be approved for the construction of the project and that would be DeVereConstruction for $518,000."
The current system is from the 1980s and has some obsolete equipment.
"These are two major projects and that's encouraging that we can go forward with those and advance the services this hospital," Arbuckle said.
Vice President of Finance and Information Systems George Smart, updated the committee on the bond bids that came in.
Smart said ARMC ended up going with Hutchinson, Shockey, Erley & Co. at a discount of $135,000. The true interest rate was 4.428198 percent. The range of the coupons over the course of 20 years was 3 up to 5.25 percent.
"Overall Hutchinson had the better cost," Smart said. "It will close on (Nov. 26), so the funds will be in our account as of then. Net proceeds are going to be just over $13 million."
Nicole Grulke can be reached via email at email@example.com or by phone at 358-5687. Follow Nicole on Twitter @ng_alpenanews.