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Assembly approves $465,000 to install new fuel tanks at two buildings

Posted 2/18/26

After years of waiting and navigating environmental regulations, Wrangell is finally ready to replace aging, underground heating fuel tanks that have been out of commission at the high school and the …

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Assembly approves $465,000 to install new fuel tanks at two buildings

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After years of waiting and navigating environmental regulations, Wrangell is finally ready to replace aging, underground heating fuel tanks that have been out of commission at the high school and the Public Safety Building.

The borough assembly cleared the final hurdle at its Feb. 10 meeting, voting unanimously to amend the budget and green light the project. For officials, the decision marks the end of a long journey that began more than five years ago.

According to Capital Projects Director Amber Al-Haddad, the trouble started in 2020 when the Alaska Department of Environmental Conservation inspected the tanks. The state determined they no longer met modern standards and recommended they be shut down.

“It was determined that the findings showed there were too many improvements that would need to be made to the tanks to justify keeping them in operation,” Al-Haddad said in an interview the day after the assembly vote. “We were allowed to decommission them in place and not dig them up.”

Leaving the old tanks in the ground was a strategic choice rather than a shortcut.

An engineering report revealed that digging up the 10,000-gallon tank at the high school could have undermined the structural integrity of Reid Street, which runs alongside the building. Instead, both the high school tank and the 4,000-gallon tank at the Public Safety Building were emptied and cleared through a full environmental review.

Still, the borough couldn’t move until the state gave its OK.

“After that inspection, the borough had to wait approximately a year and a half to receive clearance to move forward,” Al-Haddad explained. “Two months ago, we got the go-ahead, and we started making plans.”

The new plan shifts away from underground storage. The high school will receive a new 4,000-gallon aboveground tank, a size officials believe is more than enough for emergency needs.

The building is heated by electric boilers, with oil-fired boilers as backup, explained Kevin McCallister, the school district’s facilities and maintenance director.

Meanwhile, the Public Safety Building will get a 1,200-gallon tank the borough already owns. That tank was originally used at the National Guard armory, which the borough sold in 2021 — but kept the tank.

While the armory tank has been sitting idle, Al-Haddad noted that its valves and regulators appear to be in excellent shape. A contractor will perform an integrity test to make sure it is ready for service.

Paying for the upgrades required some creative budgeting. The borough is using a mix of general fund reserves and federal funds. To cover a funding gap for the high school work, the assembly authorized a transfer of $148,000 from its reserves of federal funding for schools and roads.

With the money secured, the contract was awarded to Juneau-based Schmolck Mechanical, the lowest of three bidders, for a total project cost of $465,593.

In addition to installing the two tanks, the contract covers pumps, piping, controls, electrical systems, concrete pads, fencing and surface restoration.

For Assembly Member Bob Dalrymple, the vote was a welcome relief from a topic that has dominated the government discussions for years.

“From the time I came on to the assembly, we have been talking about these fuel tanks,” Dalrymple said during the meeting. “I’m just glad we’re going to get it taken care of and we can stop hearing about it.”