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Council hears staff plan for wastewater upgrades, septic replacements and permits for wetlands discharge
Summary
Staff outlined a multi-year wastewater plan at the FY2026 budget committee-of-the-whole: restart a clarifier to pretreat lagoon sludge, replace failing septic systems, and pursue permits and infrastructure necessary for wetlands discharge.
City staff used the committee-of-the-whole budget review to present a multi-year plan for wastewater system upgrades, septic replacements and the permitting work needed to return treated effluent to wetlands.
Staff described the clarifier as a previously used piece of treatment infrastructure that is currently mothballed. Restarting the clarifier would allow the city to pretreat lagoon sludge prior to further processing and reduce the moisture content of solids, which staff said improves downstream management. Staff said restarting the clarifier would be a seasonal operation focused on summer sludge-removal work.
On septic replacements, staff said two replacements have been completed recently: one costing more than $30,000 and another nearly $50,000, for about $80,000 total to date. Staff reported that residential septic replacements typically average roughly $40,000 each in the city’s experience and that commercial or community tanks can cost substantially more (hundreds of thousands) when replacement requires tearing up parking lots or larger excavation. Council members asked whether the FY2026 request could be reduced; staff replied they are pursuing Department of Environmental Conservation (DEC) funding and a DEC pilot/loan-forgiveness program for legacy septic projects.
Staff also discussed Glenwood rail crossing work: railroad crossings have recurring maintenance and replacement needs and the Alaska Railroad sends invoices for inspections and repairs; the city reported a recent charge of about $8,000 for inspections and repairs of four crossings. Glenwood Crossing work offers a chance to complete a separated pedestrian pathway that currently breaks at the crossing, and staff said the railroad has been supportive of safer crossing treatments.
On wetlands and discharge permitting, staff said the Army Corps of Engineers is likely to grant the wetlands permit but that DEC currently lacks a clearly applicable permit path for this “natural treatment” approach. Staff described a technical disagreement with DEC around fecal coliform attribution in the discharge test results and said the city is seeking a path forward so DEC can permit wetlands-based discharge. Staff indicated the permitting conversation with DEC has been slow and that design and pumping enhancements (vaults, pumps, and likely UV disinfection) may be required depending on permit conditions.
Staff said the city is pursuing multiple funding sources, including state and federal grants, and noted that DEC has been evaluating pilot projects elsewhere and may offer loan forgiveness; staff said the city would continue to apply for DEC and EPA funding as permit clarity evolves.
Council did not approve budget appropriation changes in the meeting; staff said they would return with further design details, permit updates, and funding options for council consideration.
