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2026-03-24 Regular MeetingKODIAK ISLAND BOROUGH Health Facilities Advisory Board March 24, 2026, at 1:30pm Held in the Kodiak Island Borough Conference Room. ROLL CALL Meeting was called to order at 1:32pm. Members present were Scott Smiley, Dave Johnson, Caroline Roberts, Codi Allen, and Aimee Williams. Others present were Providence Kodiak Island Medical Center Representatives Tyler Steele and Malory Nephew, and Kodiak Community Health Center Olivera Wilson. APPROVAL OF MINUTES JOHNSON MOVED to approve the minutes of February 24, 2026, as presented. ROBERTS seconded. VOICE VOTE PASSED UNANIMOUSLY CITIZENS COMMENTS (Limited To Three Minutes Per Speaker) None. AGENDA ITEMS a. Kodiak Community Health Clinic Aimee Williams and the Borad discussed concerns with the KCHC expansion proposition including lease and ownership issues, understanding of what a Notice of Federal Interest (NFI) is, funding sources and cost estimate concerns, timeline issues, KIB Code consideration for project processes, and seismic impacts. Lease and ownership issues: the expansion would require updates to three agreements; KCHC lease with the Borough, PKIMC-Borough lease, and the facilities services agreement between KCHC and PKIMC. There are also concerns regarding rent costs; currently it is set at $120/year through 2033. Notice of Federal Interest (NFI) issues: the NFI must be filed before construction begins. NFI places federal interest on the title, which limits the future sale/use of the building. The Borough has never had NFI restrictions on any other federally funded buildings, and the Assembly would need to be involved with the decision to accept the risks/restrictions that are associated with accepting an NFI. Funding sources and cost estimate concerns: the current architectural estimate is approximately $9.8 Millon but excludes many items such as geotechnical work, surveys, environmental reviews, construction management, furnishings, known site complications. The KCHC team is estimated to be higher at $11 Million. KCHC has explored other funding options, however there are conditions with them as well (requirement for concept drawings/designs). KCHC has explored opening a line of credit with Northrim Bank to be able to move forward. The Borough is concerned about the project beginning without full funding, risk of unfinished structure, and the risk that KCHC may have to repay the federal funds if the project fails. Kodiak Island Borough Health Facilities Advisory Board Minutes March 24, 2026 Page 1 of 3 Previous Asbestos testing indicated that this area has ACM -positive materials in it. NWFF performed a point count to determine abatement extent (if it is over 1% abatement will have to occur). There are efforts underway to avoid major demolition that would trigger seismic upgrades. KIB recently has some staff undergo some glove -bag training for asbestos removal they will partner with PKIMC as they can to help reduce impact. BOARD MEMBERS COMMENTS Caroline Roberts — Thank you all for the flexibility — I'm happy I am able to come today. SET NEXT MEETING DATE AND TIME April 21, 2026, at 1:30pm in the KIB CR 121 ADJOURNMENT SMILEY moved to adjourn at 2:27 pm. INFORMATION MATERIALS SU ITTED BY: ftw) q �! Pat 'cia Valerio, EF Dept ate i Scott Smiley, HFAB Chai Date Kodiak Island Borough Health Facilities Advisory Board Minutes March 24, 2026 Page 3 of 3