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Assembly hears introduction of ordinance to fund Central Peninsula landfill leachate improvements
Summary
Ordinance 2025-1935 was introduced to appropriate funds for leachate infrastructure improvements at the Central Peninsula Landfill after bids returned above the original budget. Staff outlined revised scope and costs, and finance staff explained the projected fund-balance impact of the requested appropriation.
The Kenai Peninsula Borough Assembly heard the introduction of Ordinance 2025-1935, appropriating funds for the Central Peninsula Landfill Leachate Infrastructure Improvements Project. Mayor Michicky presented the item and borough staff described changes after initial construction bids exceeded the project’s budget.
Public works staff explained the original early-2024 project was released for bid and returned at amounts above the budget. To respond, “we compartmentalize[d] that project and began a design effort to reduce the scope based on feedback we got from the contractors that bid the project,” said Mr. Hedges (staff). He said the team reduced scope and focused on a building automation system and other value-engineering measures. Hedges said the current contract awarded for construction stands at about $6,300,000 and that a SCADA (supervisory control and data acquisition) system was estimated at roughly $550,000 and was out to bid.
Hedges said the borough had anticipated an additional appropriation originally around $1,200,000 but had scaled that back to the amount now requested to proceed with awarding the building automation system and related expedited redesign work.
Assembly Member Cox asked whether the appropriation would materially reduce the borough’s general fund balance. Finance staff Brandy Harbaugh said the borough would remain “well within our minimum fund balance policy” and provided projected figures: without the appropriation the projected FY25 fund balance was $44,972,947; after the deduction for this project the projection would be approximately $43,000,995. The borough’s fund-balance policy maximum was described in committee as approximately $33,000,000 and staff noted the policy requires coming into compliance within three years.
Assembly members asked for a more holistic update on landfill operations, including the baler, leachate efforts, previous depot injection discussions, and the potential for methane capture. Mayor Michicky said the “injection well has not come by the wayside. It's the only solution that's viable for the future with fuel costs on leachate,” and said the evaporative approach is costly as natural gas availability declines. Hedges said borough staff remain in discussions with HEA about extracting methane from the landfill and that HEA has indicated continued interest, although grant and tax-credit programs that previously supported such projects are uncertain.
No committee vote on the appropriation ordinance was recorded during the session; the ordinance was introduced for further consideration and formal action at a future meeting. Staff said SCADA bids were scheduled to open later in the week and that further budget adjustments could follow based on bid results.
