Kodiak council to vote on raising sewer lift station loan limit to $17.4 million

The Kodiak City Council votes Thursday, Nov. 12, on a resolution that would raise the city's Alaska Clean Water Fund loan limit for Lift Station 5 to $17.4 million, up from $7.4 million.

The increase would cover the gap left by the only construction bid the city received. Brechan Construction bid $16,319,570 on June 30, more than double DOWL's engineer's estimate of $7,207,692. City staff put the projected shortfall at about $10.47 million, according to the council agenda packet.

Lift Station 5 is the city's largest sewer lift station. "80% of our sewage goes through Lift Station 5 before it goes to the wastewater treatment plant," Chris Lynch, the city's project manager, said at the Sept. 10 council meeting.

About 20 years ago, a break in its force main sent sewage directly into Mission Lake. A similar failure in May 2019 cost the city more than $250,000. Staff said the Alaska Department of Environmental Conservation would likely levy heavy fines if another failure occurred.

The city is under a state compliance order to finish the replacement by Dec. 31, 2027. Interim City Manager Tim Putney wrote in a memo to the council that "we have no other choice but to complete this project."

The council first authorized borrowing up to $5.4 million in December 2021 and raised the limit to $7.4 million in July 2025. The first construction bid, in March 2023, came in at $17.7 million against a $7.14 million estimate, and the city rejected it. Since then the city has built a temporary bypass to protect Mission Lake and bought and cleared a lot to move the station about 100 feet farther from the lake.

A work session report said the latest estimate may not have fully reflected the piling needed to hold back soil more than 35 feet deep beside the lake.

Staff estimates the total project cost at $18.3 million. The city has about $4.6 million on hand and a pending $3.25 million EPA grant. Under the resolution, sewer utility revenue would repay the loan. The city's taxing power would not be pledged.

Adopting the resolution lets the city apply to the state for more money. The final loan agreement would still need council approval by ordinance. The meeting starts at 6:30 pm, and residents may comment in person or by phone.