Sitka Assembly authorizes application for SRF loan to design wastewater disinfection upgrades

Mark Seabee, the Public Works Director, told the Assembly the new National Pollutant Discharge Elimination System permit requires additional effluent disinfection and pretreatment work, and that the city has begun a 35% design contract. He said the estimated cost to reach final design is about $1.16 million and that the total project could cost approximately $14 million, with a tentative $10 million congressional allocation and roughly $3 million from ratepayers.

Seabee described options evaluated for disinfection and explained the municipality will rely on sodium hypochlorite generation systems rather than UV or bulk chlorine because of chemical handling constraints in a remote community. He also described requirements for a pretreatment program to identify industrial users and profile their discharges. On financing, Seabee said the state is offering low‑interest SRF loans (historically near 1%) and a loan‑forgiveness program tied to unfunded mandates; staff will seek forgiveness where available and budget for the loan if forgiveness does not materialize.

After staff presentation the Assembly voted to authorize the administrator to apply for the SRF loan. The motion passed by roll call, 7‑0.

Why it matters: the work responds to a regulatory permit that requires upgraded effluent disinfection by 2030; design and construction budgets and potential loan forgiveness will affect ratepayer costs and the municipality’s capital planning.

Next steps: staff will pursue the SRF application, continue design to 35% and report back on loan terms and final funding packages.