Kodiak Island Borough assembly reviews ARPA spending options, bids for mental‑health building, firefighter gear and other capital requests

The Kodiak Island Borough Assembly met Dec. 17 in a work session to review a slate of contracts, procurement requests and code amendments and to discuss how to obligate the borough's remaining federal American Rescue Plan Act (ARPA) funds before the end of the month.

The meeting opened with a citizen comment noting environmental and emergency‑response risks posed by damaged lithium‑ion batteries in electric vehicles. "If it were to get fire or get damaged or get recalled it is going to cause a huge environmental problem and a huge expense," said Patrick Ducelot, a resident who asked the assembly to consider underwriting or otherwise preparing for possible hazardous‑materials response costs.

Assembly discussion then turned to the borough's uncommitted ARPA balance. Staff reported a remaining obligated grant balance of $1,712,770.97 and reminded the assembly that funds must be obligated — defined as having a fully executed contract — by Dec. 31. Borough staff urged the assembly to consider obligating more than the exact remaining balance as a contingency buffer in case contracts fall through before year end.

"If you have obligated $1.9 million to that $1.7 [million] and one of the other contracts in part or in whole falls through, then we have other areas to backfill that amount," a staff member said. The assembly discussed a list of candidate projects and previously allocated items, including roof and skylight work and sewer lift station improvements, and asked staff to prepare ordinance language that would reallocate amounts as the assembly directs.

Bids and contracts: mental‑health building abatement

Staff presented the results of a recent competitive solicitation for phase‑one demolition and abatement of two vacant mental‑health buildings that were vacated in June 2022 and later damaged by a frozen domestic heat pipe. The borough received five bids. Far North Services LLC was identified by staff as the lowest responsible bidder after a bid modification was filed by email prior to opening. Staff said the emailed modification increased that bidder's price by about $230,000 but was submitted before the opening and met procurement code requirements.

Staff noted award and signing of the contract will be contingent on the close of the statutory protest period. One assembly member raised concern about an alternate line item on the low bidder's tabulation — "alternate 1" for removal of an on‑site fuel tank — priced at $80,000, far higher than other bidders' alternates for the same work. The assembly discussed the option of awarding the base bid and rejecting that alternate and asked staff to ensure the bid tabulation in the packet is updated for Thursday's meeting.

Contracts, purchases and facilities

The assembly reviewed several smaller but high‑priority procurements. Staff recommended awarding a design and construction‑administration contract to Water Treatment, Inc. for pool repairs and water‑treatment work at a cost of $88,900; the contract covers final design, inspection and bid assistance only, and would be followed by a separate construction solicitation. Several members requested that the design explicitly look for widespread rebar corrosion and other hidden defects that could prompt future tile and concrete failures.

Fire service leaders asked the assembly to fund replacement turnout gear that is PFAS‑free. The request, for municipal equipment supply vendor pricing, was listed at $171,340. Chiefs who spoke argued PFAS‑containing gear off‑gasses so‑called "forever chemicals" and cited faster turnaround times and improved safety for the PFAS‑free manufacturer being recommended. Chief Scott told the assembly the gear has shorter delivery lead times than many other suppliers and that adopting PFAS‑free turnouts would reduce long‑term occupational exposure for volunteers.

"We're asking the people here, most of whom are very minimally or not compensated at all, to do these things. So having this gear ... shortens the exposure to our firefighters," Chief Scott said.

The assembly also reviewed a request to purchase an electronic time and attendance solution to replace an Excel‑based timekeeping process; staff said the borough's payroll clerk and other personnel supported the move and that City of Kodiak uses the same product, easing integration. Members expressed support for streamlining timekeeping while emphasizing flexibility for remote and non‑desk employees.

Separately, engineering staff presented a NASPO‑procured quote for a new Bobcat skid‑steer loader, including attachments, at $61,708.82 plus freight and incidental costs; staff said funds are available in this fiscal year but the purchase could be delayed to next year if the assembly prefers.

Other contracts and code matters

Staff asked the assembly to rescind the June 27, 2024 award of contract FY2024‑38 to Otis Elevator Company for elevator maintenance because of subsequent bid‑cancellation and negotiation confusion; staff said they have rewritten the solicitation and plan to re‑advertise. No final action was taken at the work session; staff asked the assembly to consider formal rescission at the regular meeting.

The assembly also reviewed a proposed amendment to a 2010 lease and materials agreement with Brecken Construction LLC for the Grama Flats gravel pits. Staff said the amendment would exercise the second five‑year extension allowed under the original lease, and noted a duplicate "whereas" clause will be removed before the Thursday agenda. Staff added the amendment requires signature from a Seldovia Native Association representative because of a change in company membership records.

Zoning and housing code proposals

Two zoning‑related ordinances were introduced for future public hearing. Ordinance FY2025‑9 would amend Kodiak Island Borough Code Title 17 to require all rezoning requests be transmitted to and reviewed by the assembly; the Planning and Zoning Commission recommended approval. The assembly moved the ordinance to a public hearing slot in January.

The assembly also introduced Ordinance FY2025‑11, an accessory dwelling unit (ADU) amendment that would define ADUs and set development standards, including a proposed change to increase the maximum ADU size to 800 square feet and to remove a current owner‑occupancy requirement. The ADU proposal prompted extended comment from several assembly members who said ADUs and short‑term rentals are linked and expressed concern about removing owner‑occupancy requirements and eliminating conditional‑use permits for qualifying ADUs.

"I strongly feel that addressing ADUs before short‑term rentals is putting the cart before the horse," one assembly member said, urging caution and more public input. Other members said they want the item to proceed to public hearing to gather broader community comment.

Licenses, appointments and other business

Staff provided a timeline for an abbreviated informal hearing on continued operation of two restaurant licenses and reviewed a slate of mayoral and assembly appointments to boards, committees and commissions that the assembly will consider at its next regular meeting.

What happens next

Several items discussed at the work session are scheduled for formal action at the assembly's regular meeting later in the week. Staff will update bid tabulations and draft ordinance language to reflect assembly direction. The assembly emphasized the Dec. 31 federal deadline for obligating ARPA funds and asked staff to provision ordinances that will allow the assembly to reallocate funding choices on Thursday if needed.

For now, the work session produced guidance, not final votes, on many of the high‑cost items reviewed; staff repeatedly advised that contracts must be fully executed by Dec. 31 to meet ARPA obligations and recommended building in contingency obligations where possible.