Assembly approves $600,000 supplemental for Point Higgins diesel-spill response; related emergency contracts amended
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Summary
The borough approved Ordinance 2092, appropriating an additional $600,000 for cleanup and long-term monitoring of the Aug. 15 diesel spill at Point Higgins Elementary (adopted 5-1). The assembly also approved several emergency contract amendments and a fencing contract award for the site.
The Ketchikan Gateway Borough Assembly voted to adopt Ordinance 2092, a supplemental appropriation of $600,000 from the general fund for continued response, remediation and long-term monitoring of the Aug. 15 diesel spill at Point Higgins Elementary.
Finance Director Charlene Thomas opened the public hearing by saying, "This ordinance would appropriate an additional $600,000 from the initial 2,400,000" and outlined minor invoice adjustments and a small miscellaneous expense buffer. Assembly members pressed staff on contingency and insurance recoveries; the borough attorney said the contractors insurer (Scottsdale) has tendered policy limits for review but that exclusions could reduce reimbursed amounts and in a worst case the borough's recoverable amount from that carrier could be $1,000,000.
After the public hearing closed with no public testimony, Assemblymember Pauline moved to adopt Ordinance 2092; the motion was seconded by Palmer. The roll call result was Arntzen Yes, Matson Yes, Palmer Yes, Bowling Yes, Cortez Yes, Thompson No. The ordinance passed 5-1.
Related procurement and contract actions on the consent calendar and in unfinished business addressed emergency response work at the spill site. The assembly:
- Approved amendments to emergency contracts for Burnett's Construction LLC, Nortek Inc., and Alaska Commercial Divers to cover response costs (amounts listed on the consent calendar). - Awarded a fencing contract to Security Link Inc., DBA Southeast Fence Specialists, for $62,992 to install permanent fencing at the Point Higgins spill site; the motion to award waived competitive procurement per KGBC procurement provisions and passed on the assembly floor (vote recorded as 5-1).
Staff said the appropriation covers bills received to date but cautioned there remain unknowns related to DEC sampling and potential additional remediation requirements that could require future appropriations. The borough attorney said engagement with DEC and the insurance adjuster is ongoing.
