Kodiak Island Borough approves $349,563 change order to ship PCB-contaminated demolition waste off island

The Kodiak Island Borough Assembly on March 13 authorized the borough manager to approve change order number 1 to contract FY2025-35, allowing the separation and off‑island shipment of PCB‑containing materials from the borough’s mental health buildings demolition and abatement project. The change order is not to exceed $349,563.12 and covers an estimated 24 containers at a per‑container price of $14,565.13; the contractor will be paid only for containers actually used.

The change order was proposed after third‑party testing and borough consultants found polychlorinated biphenyls, or PCBs, in “the majority of the materials,” borough manager Amy Williams said. Williams told the assembly that “the Kodiak Island Borough Landfill Permit does not allow for any PCB material to be disposed at the landfill,” so material must be separated and shipped off island for lawful disposal.

Project manager Cody Allen described the timeline that led to the extra cost: the project bid process and contract award did not originally require PCB testing, and the need to test was first identified at an on‑site kickoff meeting on Jan. 9. Allen said contractors provided initial sample results on Feb. 6, the borough engaged consultant EMI on Feb. 14, and EMI ran about 50 additional samples on Feb. 25; a draft report on March 7 found PCBs in nearly all waste streams except recently remodeled areas and certain construction debris.

That sequence left borough staff and the contractor facing two practical constraints: Alaska’s permitting and landfill practice is stricter than many Lower 48 jurisdictions, and only a small set of landfills will accept PCB‑containing construction and demolition debris. As Jenna (staff member) explained to the assembly, Alaska’s practical limit for accepting PCB material is effectively 1 part per million, while other states often use higher thresholds. Jenna said accepting PCBs would also require updates to the borough’s discharge permit and additional testing and treatment, and would mean placing such waste in the borough’s lined cell rather than the unlined C&D area.

Assembly members pressed staff on alternatives, costs and timing. Several members noted that the original contract, awarded Dec. 19, 2024, was for $1,310,000 and that much of the project was being paid with American Rescue Plan Act (ARPA) funds; Amy Williams said the $349,563.12 change order would push the project above available ARPA funding and the excess would come from the building and grounds budget. Cody Allen told the assembly the contractor has mobilized, containers have about a three‑week lead time, and the contractor will be paid only for containers actually used; the change order includes language requiring borough inspection to verify volumes used.

Members also discussed alternatives such as stopping work to do more testing, canceling the contract and rebidding, or negotiating a deductive change order if the assembly later decides on full demolition. Allen said stopping work could trigger contractor claims for lost time and mobilization; he also warned of a timing constraint tied to temporary vapor barrier warranties and exposure to weather if work pauses.

The assembly voted by roll call to approve the motion authorizing the borough manager to execute the change order. The vote was 5–0 in favor; no votes against and no abstentions were recorded. The motion was moved by Jared and seconded by Assembly member Smiley.

Next steps are for the borough manager to finalize the change order language, the project manager to oversee separation and inspection of PCB waste containers, and for the assembly to quickly decide whether to continue with refurbishment or pursue demolition and other longer‑term plans for the site.