FY2026-12 Adopting A State Legislative Capital Improvement Projects Priority List For The 2026 Legislative Session1
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VERSION 2
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2026-12
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ADOPTING A
STATE LEGISLATIVE CAPITAL IMPROVEMENT PROJECTS PRIORITY LIST FOR THE 2026
LEGISLATIVE SESSION
WHEREAS, the Kodiak Island Borough represents approximately 12,570 residents of the
Kodiak Island Archipelago living in six incorporated cities and one community governed by a tribal
council government per the Alaska Department of Labor and Work Force Development; and
WHEREAS, a Borough—wide capital improvement program is adopted annually by the Kodiak
Island Borough Assembly with recommendations from the Planning and Zoning Commission
which identifies major needs of the island community for the next five years; and
WHEREAS, the Kodiak Island Borough Assembly has reviewed the borough -wide capital
improvement program adopted by the Planning and Zoning Commission and identified major
projects to submit to the Alaska Governor, State Legislative Delegation, and Federal Legislative
Delegation for funding consideration.
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that:
Section 1: The Kodiak Island Borough's State Legislative capital improvement project
priorities (unranked) for the 2026 legislative session are as follows:
1. Kodiak Wastewater Treatment Plant Facility
Estimated Project Cost $1,900,000
Funding Acquired $100,000
Needed Funds $1,800,000
The City of Kodiak provides water and sewer services to the Kodiak Island Borough
residences and businesses that are located adjacent to City of Kodiak boundaries. The City
of Kodiak treatment plant operates under an Alaskan Department of Environmental
Conservation (ADEC) APDES permits. The first phase of a larger project to upgrade the City
of Kodiak Wastewater Treatment Plant to evaluate the facility for immediate system's needs.
The last major maintenance upgrades to the facility was in 1999. The condition and evaluation
assessment included all major components within the plant interior and exterior, the
outbuildings and three aeration basins; including all mechanical equipment needs. Alaska
Pollutant Discharge Elimination System (APDES) permitting requirements were included
during this assessment. Included in the facility rebuild assessment is the supervisory control
and data acquisition (SCADA) system to interface with the 34 sewer lift station pumps and
waste treatment at the facility. This facility, with its labyrinth of connecting sewer lines, directly
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serves 2667 City of Kodiak and Kodiak Borough households including commercial
businesses. The treatment plant also serves the U.S. Kodiak Coast Guard Base and the
Pacific Spaceport Complex indirectly with our certified laboratory testing and waste disposal;
not to mention NOAA vessels, the Alaska Marine Highway vessels and the expanding cruise
ship industry stopovers in our Kodiak Harbors.
The Kodiak Island Borough supports the City of Kodiak request for Federal funding in the
amount of $1.9M to begin design efforts leading to the construction of this critical infrastructure
Wastewater Treatment Plant project that will support the wastewater needs of the community
for the next twenty years.
2. City of Larsen Bay Reservoir Spill Way
Estimated Project Cost $1,200,000
Funding Acquired $0
Needed Funds $1,200,000
The water reservoir spill way in the community of Larsen Bay is eroding and is nearing failure.
This reservoir provides drinking water and hydroelectric power to the residents in the second-
class city on Kodiak Island's west side. The Kodiak Island Borough supports the second-class
City of Larsen Bay's request for funding assistance.
3. City of Port Lions Water Distribution System Replacement
Estimated Project Cost $8,000,000
Funding Acquired $0
Needed Funds $8,000,000
The original water and sewer distribution system for our community was built after the 1964
Good Friday earthquake and tsunami forced the displaced residents of Afognak to relocate in
what is now known as Port Lions. In 1964 a new system was installed. However, the
contractor did not complete the job correctly. Many homes were not connected to the new
system and many homes were connected incorrectly. The now connected system is
considered aged out because it is over twenty-five (25) years old. The City of Port Lions Public
Works crew constantly has a list of leaks and blockages to repair. In some places the system
is beyond repair. We are consistently over budget for our water and sewer utility due to the
unexpected expense of purchasing parts and paying our crew to repair and replace section
of the distribution system. The outdated system drastically hinders community expansion
efforts. The City of Port Lions are working closely with the Alaska Native Tribal Health
Consortium (ANTHC) for replacement project to be included in their funding pipeline as soon
as possible.
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4. City of Larsen Bay: Water Distribution Lines
Estimated Project Cost $7,000,000
The City of Larsen Bay has a problem of leaks in the distribution system. They have a loss of
40,000 gallons of water every 24 hours, 7 days a week. They have fixed all the leaks they
could find. In the summer, they have a hard time keeping up with the water usage.
5. Karluk Water Storage Tank
Estimated Project Cost $1,882,087
Funding Acquired $987,094
Needed Funds $223,000
The purchase sand contracted labor for the water storage tank itself was recently quoted to
ANTHC at $223, 000. The rest of the project costs include the foundation construction, access
road to the new tank, and the 1500 ft. transmission line. ANTHC has two active projects in
Karluk to deal with their water treatment and distribution system. One project is to replace the
water treatment plant, and the second project is to replace the water storage tank and
construct and transmission line pipe from the new tank site back tot eh water plant. Both
projects are planned to be constructed together to be as efficient as possible. We are
requesting funding for the water tank as there is a funding shortfall.
The water storage tank and transmission line project has completed engineering design and
we are in construction preparation, however, the preparation has stalled because of a funding
shortage. This project was funded for $987,094, and we are seeking an additional $894,993
to complete. The original funding division for this project is $924,390 from the Indian Health
Service and $62,704 from the Denali Commission, which covers the ineligible costs that
the Indian Health Service cannot cover.
There are a couple of things that should be noted about the water tank project:
o We are not planning on using the water tank currently in Karluk as the configuration
does not meet current requirements for seismic activity in the Kodiak Region. The high
earthquake probability would potentially cause the crated tank currently in Karluk to
get damaged and collapse if the water inside moved around.
o The community has been in violation of the Surface Water Treatment Rule drinking
standards since they were updated in 2005 because of the overall configuration of the
water treatment plant and water storage tank. In 2005, a modular water treatment plant
facility was constructed by a contract with Udelhoven Oilfield System, and the final
modules are expected to be delivered to the Anchorage- based ANTHC
storage facility in August. We are projecting a 2026 construction date for both elements
of the water project, provided we can receive the required supplemental funding. I
have issued a supplemental funding requires for the water treatment plant project to
the State of Alaska Capital Improvements Program (CIP) through ADEC and am
awaiting the response.
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6. Karluk Sewer Truck
Estimated Project Cost $150,000
The tribe needs a reliable way to pump sewage. Starting at the beginning of July, we are
having to manually pump the sewer every few days due to the ongoing issues with the
generator and drawing too much power. The sewer pump cannot be on all the time
automatically until the generator issue is resolved. Cost includes freight.
7. City of Port Lions Fire Station Insulation
Estimated Project Cost $35,000
Funding Acquired $0
Needed Funds $35,000
The fire station in the second-class City of Port Lions is not insulated which necessitates that
the fire truck be left empty of water during the winter months when temperatures drop below
freezing and limits the time and ability to respond to a fire related emergency. The City of Port
Lions requests funds for purchase and installation of building insulation materials.
8. City of Larsen Bay: Upgrade City Hall
Estimated Project Cost $700,000
The City Hall building houses the Senior Center, Teen Center, Library, City Market, and City
offices. The building was originally built in 1985 and need numerous repairs. The kitchen in
the Senior Center is outdated, and cabinets are falling off. The entire building needs to be
rewired, replace light switches, outlets, flooring, windows, and doors. The roof needs repairs
and is unstable due to water damage. The inside and outside needs to be completely
repainted. The restrooms need to be updated and redesigned. All new plumbing needs to be
installed.
9. Kodiak Island Borough Fire and Rescue: Phase 1 Design and Engineering Re: Fire
Station Renovation and Expansion FY26
Estimated Project Cost $312,000
The Fire Protection Area 1 has the following campus upgrade, expansion, & renovation plan
for consideration under the CIP Plan by the Planning and Zoning Commission. The plan
encompasses priority components of the Fire Department's Long-range Strategic plans. The
primary focus is to ensure the continued robust response model of professionally trained
emergency personnel, who are predominately paid on call stipend employees. The
expansion and renovation encompass 2 main phases which may or may not occur
concurrently. First is the addition of a 600 square foot structure on the western side of the
existing apparatus bay to house the fitness center. Also in Phase 1 is the construction of
a 3 -story combination training and hose drying tower behind the fitness center addition. Phase
1 is completed by a renovation of the second -floor area now housing a combination lounge
1 bunk room and fitness center. This will allow for a kitchen, lounge, dorm style bunk
rooms and a lavatory with locker and shower facilities. Phase Two will comprise renovation
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of the existing classroom area and existing kitchen and Chiefs Quarters. The request is for
funding to facilitate the planning, permitting, and design phase of the
renovation/construction project. The funding request has not changed from FY25 CIP
application.
10. St. Herman Harbor Infrastructure Replacement (Phase 1)
Needed Funds $10,000,000
St. Herman Harbor (SHH) was built by the State of Alaska in 1982 and has been a vital facility
for Kodiak's large and diverse commercial fishing, logistics, and subsistence fleet for over 40
years. The State of Alaska turned over all state owned facilities in St. Herman Harbor to the
City of Kodiak in 1999. The facility provides safe moorage for more than 400 vessels from
local, other Alaskan communities and the West Coast. With the exception of a few minor
upgrades over the years, and annual maintenance the original float system is beyond its useful
life and is in need of replacement.
The proposed project would result in the reconstruction of St. Herman Harbor with the
replacement of most of its float system in two phases. Currently, the harbor has been losing
use of multiple floats per year due to aging and the saltwater elements, and increased storm
activity, both in frequency and severity. Any float loss results in 2 vessel berths along with the
revenue generated for the harbor. This rate of failure has increased exponentially in recent
years as the existing docks further deteriorate. The latest inspection report shows many
portions of the facility are in very poor condition. The forty -year-old float systems suffer from
failing pilings, broken concrete decking, rotting walers and bullrails, and an outdated electrical
system. These floats contain non-compliant electrical pedestals, failed fire suppression lines,
no blackwater services and inconsistent potable water availability.
In 2022, the City contracted with PND Engineers, Inc. (PND) to prepare a St. Herman Harbor
Planning and Scoping Report that includes concept harbor layouts, cost estimates and
construction phasing recommendations. The harbor replacement is scheduled in two phases,
with local, state, and federal funding to begin the project. Total estimated cost is at $73-99
million.
In the fall of 2024, the City was awarded a $11,250,000 grant from MARAD's Port
Infrastructure Development Program to be used for phase one of the project with a $2,812,500
(25%) project match coming from existing project funds and sales tax allocations from the City
of Kodiak. Phase one will see construction of a new "0 "float with critically needed large vessel
(100 -foot plus) berthing, and a drive down dock capability. Initially, this float will be used to
provide necessary berthing to facilitate the rebuild. Phase one is estimated at between $23-
33 million. In 2023, Turnagain Marine Construction was awarded a competitive contract to
complete preliminary design and environmental permitting for the harbor reconstruction and
that is expected to be complete in early 2026, which positions the City to initiate a final design
and engineering contract in 2nd quarter of 2026. Modernizing and expanding this critical
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marine infrastructure is essential to maintaining Kodiak's competitiveness as one of the
nation's leading commercial fishing ports. These improvements directly align with the goals of
the Executive Order on Promoting American Seafood Competitiveness and Economic Growth
(Executive Order 13921), which directs federal agencies to streamline permitting, strengthen
domestic seafood production, and support the economic vitality of U.S. fishing communities.
With no alternative harbors in Alaska capable of accommodating vessels of this size,
continued investment in St. Herman Harbor is vital to sustaining commercial, industrial,
transportation, and maritime needs throughout the State of Alaska.
Pending in FY 2026 appropriations is $5 million in Congressionally Directed Spending in the
Senate Transportation -Housing Urban Development Appropriations Bill for the St. Herman
Harbor project. The funds would be used to fund additional design and construction costs for
Phase 1. We would like to thank Senator Murkowski and Representative Begich for requesting
the funds and the Alaska Congressional Delegation for its support for this project with the
Dept. of Transportation and MARAD.
The City of Kodiak is requesting that the $10 million in Congressionally Directed Spending be
retained in the final FY 2026 appropriations bill, or if not rolled over into FY 2027.
11. City of Old Harbor Septic Tank Replacement
Estimated Project Cost $100,000
Funding Acquired $0
Needed Funds $100,000
The Kodiak Island Borough supports the City of Old Harbor's request for funding to Install a
sewer septic tank in downtown Old Harbor which is a second-class city within the Kodiak
Island Borough.
12. Kodiak Community Health Center Expansion
Estimated Total Project Cost $25,850,000
Funding acquired $8,317,901
Estimated Design Cost $1,200,000
Needed Funds $1,200,000
The Kodiak Community Health Center (KCHC) is currently housed within the Kodiak Island
Borough owned hospital facility and co -located with Providence Kodiak Island Medical Center.
KCHC is in need of increasing the clinic space and is planning an expansion project. Due to
various changes in the community in the past five years, patient and provider counts have
increased and pushed this organization to the maximum of their space limitations.
Additionally, an increase in patient population is expected to coincide with a local US Coast
Guard base increase in employees and their families in the next few years.
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With appropriate funding KCHC proposes to expand and improve the clinic space and
continue to provide needed services in the Kodiak community. KCHC has acquired funding in
the amount of $8.3 million toward this project, however design activities are not eligible within
this funding. KCHC is seeking design funds in order to move forward with the project and will
continue fund raising efforts for the balance needed.
13. Hospital Facility Sterilizer and Boiler Replacement
Estimated Project Cost $10,000,000
Funding Acquired $0
Needed Funds $10,000,000
The Kodiak Island Borough owned hospital facility boilers and associated system
components are aging along with the facility. The system components that been identified
for major repair or replacement include the oil -fired boilers, chiller unit, reverse osmosis
water system, steam generation equipment and sterilization equipment are in consideration.
The oil -fired boilers provide the major hydronic heating component for several associated
systems at the hospital facility. They include the production of facility heat, hot water and
the hot water component for conversion to steam via a steam generator that is distributed to
the sterilizers required for the hospital operations. The sterilizer equipment has been
maintained at an operational level. Due to the age of the existing equipment, increased
frequent failures associated with the steam generator and sterilization equipment has affected
the operational capacity of the hospital to the point where operating room availability is
managed at times with the functional capacity of the facility to ensure property sterilized
equipment. All of the system components need to be evaluated for replacement timeframes
as and of the individual component failures may lead to services being suspended at the
hospital facility.
14. City of Larsen Bay Equipment Repairs and Maintenance
Estimated Project Cost $157,000
The City of Larsen Bay's existing equipment are all needing major parts and pieces maintained
and/or replaced. The City currently has a 1996 Caterpillar 12G Grader, a 2001 Caterpillar416
backhoe-Ioader4WD, and a 2001 Caterpillar D-4 Dozer. These pieces of equipment are vital
to the Community for water lines, power lines, road repairs, and maintenance, and is needed
to keep our city going.
15. Native Village of Karluk: Karluk Community Food Security Project
Estimated Project Cost $139,444
The community of Karluk is requesting to construct two community greenhouses on land
owned by the tribe. The project is clear and significant priority for Karluk as food is limited.
Global warming is changing the ocean environment and impacting subsistence. Food is flown
to the community by small plane that are often delayed by weather and the cost is prohibitively
high and the food is mostly shelf stable, meaning highly processed and not the appropriate
food for the tribe. Karluk does not have gasoline for sale so the cost of subsistence has
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become prohibitively high and harvesting subsistence fish and game by ATV or boat is nearly
impossible.
The Covid-19 pandemic emphasized the importance of food sovereignty for this remote
community. During the pandemic, supply chains were interrupted and the price for many
goods increased greatly. As remote as they are with high costs already, interruptions to supply
chains and increased prices were nearly impossible for the village to handle. Because of this,
they have renewed their efforts to grow fresh vegetables and fruits as they work to provide
consistent and traditional food for the village.
The proposed project is to purchase and construct two community greenhouses on land
owned by the tribe. The proposed site is Karluk Subdivision Tract C, Plat Number 78-16. The
tribe will be responsible for the upkeep and maintenance of the greenhouses. The
greenhouses will be constructed with guidance from the Alaska Energy Authority Biomass -
Heated Greenhouses: A Handbook for Alaskan Schools and Community Organizations and
the University of Alaska Fairbanks Master Gardener program; a Master Gardener assisted
Karluk with the development of this proposal. The two greenhouses will be 25'x 48'x 12.5',
made with heavy-duty galvanized steel frame and 10 mm double-wall polycarbonate panels,
2 doors and 2double-door gates (one on each end), and an arched design allows wind, snow
and hail to slide off. The greenhouse will support a snow load of 480 kg/m (98 pso and is
wind -resistant up to 24m/s for high stability. The greenhouse is an expandable design. The
greenhouses will use a biomass boiler to heat the interior of the greenhouse each spring when
they begin planting.
This project will also include the purchase of shelving and supplies including soil, fertilizer,
water equipment, pots and stakes. The cost of freight to Karluk from Wasilla and the cost to
assemble the greenhouse is also included in the cost estimate. Greenhouses are priced
$29,500 each and the boilers are priced at $8432 each. Shelving and supplies is estimated at
$3,000. The total cost of materials is $78,864. Freight is estimated at 50% ($39,432) and a
contingency is included of 15% to offset any increase in cost ($11,830). Total material cost is
estimated at $130,126. The cost of assembling the greenhouse is estimated at 80 hours for
three laborers at $35 per hour ($8,400) plus fringe at 10.93% ($918). The total project cost is
$139,444. The greenhouse will provide access to fresh healthy food which is at this time either
unavailable or prohibitively expensive and will improve the quality of life for all the residents
of Karluk.
16. Service Area Roads Improvements and Paving
Estimated Project Cost $6,000,000
Local Funds $1,200,000
Needed Funds $4,800,000
This project addresses the on-going need to improve portions of the roads in the Kodiak Island
Borough's Road service areas: Service Area No. 1, Womens Bay Service Area, Bay View
Road Service Area, and Monashka Bay Road Service Area. These roads connect residential
neighborhoods with the greater Kodiak community.
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Paving projects will address main thoroughfares or busy neighborhood roads. Improvements
to major drainage courses, installation of guard rails, and other identified road improvement
needs may also be addressed with this funding.
Priorities for expenditure of these funds are determined by the road service area boards. Local
contributions to road improvements may be funded through local improvement districts where
those in the district are taxed a proportion of the project cost.
17. Women's Bay Service District: South Russian Creek Road Repaving
Estimated Project Cost $1,842,301.30
The roadway was originally paved circa 1985 using mostly federal financing under the
Intermodal Service Transportation Efficiency Act. Since that time the roadway has been
maintained by the Womens Bay Service District with taxes collected from the residents for
that purpose. The Service District mill rate is currently 2.5 mils which is the highest of all
service districts. The current budget has barely been sufficient to keep roads cleared of snow
and ice and also maintain the 12 miles of road in the district. Over the years the maintenance
for the South Russian Creek Road paved area has increased as the asphalt has deteriorated
and at this time maintenance attempts are becoming futile and exponentially more expensive.
The estimate from Brechan Construction, LLC to repave the roadway is $1,842,301.30. If the
road is repaved, it would reduce the overall maintenance costs and allow the service district
to re -allocate money to other needed projects.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTY SECOND DAY OF JANUARY, 2026
KODIAK ISLAND BOROUGH
ed Griffin, iAyku
VOTES:
I-0
-&z& m , I - �-
Nova M. Javier, MMC, Bor gh Clerk
Ayes: Whiteside, Woods, Ames, Gardner, Johnson, Roberts, and Smiley
Absent: None
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