Kodiak borough seeks $10 million to replace aging hospital boilers and sterilizers

The Kodiak Island Borough is asking the state for $10 million to replace aging boilers, sterilizers and related equipment at its borough-owned hospital. The borough warns that the failure of any single component could suspend services there.

The project is on the state capital priority list the Assembly adopted Jan. 22. No money has been secured. The Assembly discusses its state and federal priority lists at a work session at 6:30 pm Thursday, Nov. 12.

The hospital's oil-fired boilers make heat and hot water for the building. They also supply hot water that a steam generator turns into steam for the sterilizers that clean hospital equipment.

Frequent steam generator and sterilizer failures have at times limited operating room availability, according to the 2026 work-session record. The work also covers a chiller and reverse osmosis water equipment. The Assembly approved $4.2 million in contracts in October to replace the hospital's failing chiller. In July, design of a new reverse osmosis and steam generator system was put on hold over concerns it might not work with the hospital's existing sterilizers.

A 2023 borough record estimated the project at $1 million. A 2024 borough record put it at $10 million. An April 2025 projects report described the boilers as more than 50 years old.

The list also seeks $1.2 million to design an expansion of the Kodiak Community Health Center, which is housed in the hospital building. The center has $8.3 million toward the $25.85 million project, but that money cannot pay for design work.