Kodiak Island Borough Assembly to vote on $4.2 million hospital chiller contracts

The Kodiak Island Borough Assembly is scheduled to vote Thursday, Oct. 15, on four contracts to replace the chiller at Providence Kodiak Island Medical Center. The borough owns the hospital building, and Providence operates it. The project budget is $4,239,116. The largest contract, $3.86 million with Davis Constructors & Engineers, would remove the old chiller and install a new one outside.

The chiller is past its useful life and too small for the hospital's cooling needs, according to an Oct. 2 summary from Providence's design and construction office.

The federal Rural Health Transformation Program would cover $3.8 million of the budget, and the borough's Renewal and Replacement fund about $438,000. Borough money would pay $207,000 of the Davis contract for demolition, which the summary lists as not allowed under the federal grant.

AMC Engineers would receive $102,005 for permits, engineering support and commissioning. Alaska Testlab would receive $37,325 for special inspections. Providence would receive $230,826 from borough funds to manage the project, 5.8 percent of its capital cost.

Providing staff would handle daily coordination, review invoices and recommend payments, while the borough would keep final authority over contracts, changes, funding and payments. A staff report from Engineering and Facilities Director Codi Allen said the approach "augments the Borough's limited project management capacity." Allen's report on Providence's contract calls the arrangement "not typical," saying the grant's requirements and a lack of staffing leave the department no other path forward.

The Assembly accepted the grant from the Alaska Department of Health on Sept. 10, when the estimated project cost was about $4 million. At the Oct. 1 meeting, Borough Manager Aimee Williams said the chiller itself has a 30-week lead time. Of the grant, she said, "that that money needs to be spent, um, completely by June 30th, 2027."

AMC's agreement says site work would begin in April 2027, and Davis estimates main construction at about five months. Providence's budget sets substantial completion for June 25, 2027, and final completion for Sept. 30, 2027. The documents do not explain how that later date fits the June 30 spending deadline.

Residents may speak during citizens' comments at the Oct. 15 meeting by calling 907-486-3231 or toll-free 855-492-9202.