Assembly approves Jacobs contract, raises landfill fees as borough warns of rising costs

The Kodiak Island Borough Assembly authorized awarding a contract to Jacobs Engineering for a regional solid waste management plan update funded in part by a Denali Commission grant, and adopted a set of fee increases for landfill disposal and collection to help cover mounting operational and debt costs.

Procurement and plan: The assembly authorized the borough manager to award contract FY2025-57 to Jacobs Engineering for the regional solid waste management plan update. Staff said five proposals were received and two firms were shortlisted; Jacobs was the committee's recommendation following interviews and reference checks. The motion passed by roll call, 5-0.

Fee changes and rationale: The assembly then considered updates to the borough's fee schedule including an increase in the landfill per-ton rate and higher residential and commercial collection charges. Engineering and landfill staff told the assembly the landfill has not raised rates since before the COVID period and that recent investments and regulatory compliance have increased costs. Staff highlighted two drivers: the new leachate treatment plant (which staff described bluntly as "it eats money") and about $1 million in debt service tied to landfill infrastructure. The borough also noted high informal "reuse" and debris at community drop sites that increased labor and handling costs.

Adopted fee examples: Staff presented proposed increases that would raise the landfill disposal rate from about $365 per ton to $400 per ton; the manager said the residential collection charge would increase to approximately $51.26 and a 2-yard commercial dumpster rate would rise to roughly $353.39. Staff also stressed that operating costs shown in budget materials ranged from approximately $2.5 million to $4.5 million, to which debt service of about $1 million must be added.

Assembly discussion and outcome: Assembly members asked for clarity on how rate changes affect residential and service-area budgets and were told the ordinance would be updated with certified roll numbers and that service-area budgets are prepared on prior-year figures until certification. The landfill fee increases and the accompanying fee-schedule resolution passed by roll call vote 5-0.

Why it matters: The fee increases and the regional planning contract are intended to stabilize landfill operations, cover debt-service obligations and inform longer-term decisions about recycling, reuse, and the future of landfilling on the island. Staff urged assembly members to visit busy drop sites to see daily operational impacts; one facilities/engineering speaker asked members to inspect the Dark Lake dumpster area and described the labor burden caused by informal disposal.

Ending: With both the plan contract and fee schedule adopted, staff will proceed with plan implementation steps and apply the new fees as scheduled; the borough said it will continue outreach to clarify how service-area levies are reconciled after the certified tax roll is finalized.