DOT says Ott Malloy rebuild faces $2.4M shortfall; borough urged to consider Mallard alternate or add local funding

State transportation staff told the Kodiak Island Borough Assembly on March 27 that the long‑planned Ott Malloy corridor reconstruction is facing a funding shortfall and that design changes or additional local funding would be needed to deliver sidewalks and the full project scope.

Kirk Miller, a project manager with the Alaska Department of Transportation (South Coast Region), outlined the project history, the current budget and proposed scope changes intended to reduce cost. He said original state legislative funding in 2005 and a 2021 memorandum of agreement with the borough increased the project budget over time, but rising construction estimates have left the project about $2.4 million over the currently available construction funding.

“We're about $2,400,000 over the current budget,” Miller said. He described an approximate construction estimate of $11,000,000 (including a 20% estimating contingency) versus roughly $8.5 million currently programmed for construction.

DOT proposed redesigning the corridor to reduce the pedestrian path width from a separated 10‑foot multiuse path to a 5‑foot sidewalk in most sections and using paved shoulders rather than rolled concrete curb and gutter on lower‑use segments. Miller said those changes reduce right‑of‑way and drainage costs and could bring most cross‑section cost estimates closer to the existing budget, but the Mallard Way segment — the portion leading to the closed North Star School — remains costly.

Miller asked the borough to treat Mallard Way as an additive alternate for bidding (build it if bids and funding allow) or to consider allocating roughly $1 million of additional local funds to keep Mallard in the base scope. He also said the department will continue to pursue federal funds and to economize design as it proceeds toward advertisement in late 2026 or early 2027.

Assembly members pressed for pedestrian continuity and school‑area safety. Scott Arndt, the borough’s mayor, said the borough supports DOT seeking additional funding and that the assembly expects sidewalks where schoolchildren will use the route. “We agree with you going to Ketchikan for the increased money,” Arndt said. Assembly member David Johnson said he “will not vote in favor of anything that eliminates sidewalks,” citing past pedestrian crashes near the North Star area and the likelihood that students will use bus stops along Ott Malloy.

Several assembly members and attendees said the road has been in planning for many years; Miller acknowledged the project dates to a 2005 legislative appropriation and was later federalized and re‑budgeted in 2021. He and project staff said the project team has hired Kinney Engineering for design and that more detailed cost refinement is under way. Miller requested that the borough consider whether it would add local funds for Mallard Way or accept Mallard as an additive alternate at bid time.

What’s next: DOT said it will continue design, refine cost estimates and advertise the project in late 2026 or early 2027 if funding can be aligned. The borough said it will review the presentation, the staff‑provided memo from Kinney Engineering and the PowerPoint slides before discussing a possible local contribution or other next steps in future meetings.

No formal vote or commitment of local funding was recorded in the work session transcript; Miller’s presentation was a request for consideration and further coordination.