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Umatilla staff outline phased plan to transition from groundwater to Columbia River surface water by 2037; engineering and loan options discussed
Summary
Public works staff reviewed water system projects tied to a regional point-of-diversion and treatment facility that would allow the city to transition from groundwater to surface water by 2037; staff discussed design loans, reservoir work and timing of grants and reimbursements from large industrial partners.
Public works and finance staff briefed the budget committee on planned water system investments needed for a city transition from groundwater to treated Columbia River surface water by 2037, and proposed a staged financing approach to design and property steps.
Staff said the initial industrial-phase infrastructure (point of diversion and industrial treatment) is being advanced primarily by industry partners, while the city must plan and fund complementary potable‑water facilities, reservoirs and system upgrades. Staff described a planning loan option through Business Oregon to fund design and property acquisition in advance of construction; the planning loan would be roughly $830,000 and would not require principal or interest repayments until design is complete, staff said.
The presentation noted the point-of-diversion work will be phased to supply industrial customers first and then potable demands; city staff said the initial diversion and industrial treatment work—where Amazon and other data centers are investing tens of millions of dollars—will materially reduce groundwater demand when brought online. Staff also discussed reservoir rehabilitation, water-main upsizing projects and Safe Routes To School grant prospects for construction work tied to corridor improvements.
Council members asked about water quality oversight and testing; staff said all source water will meet state and federal drinking-water standards before entering the potable distribution system and that surface-water intake, treatment and testing will comply with DEQ and Oregon Health Authority requirements. Staff framed the planning‑loan approach and a one‑year deferral option for the master-plan amendment if budget pressure requires it. No final funding decision was made at the meeting; staff recommended the committee consider deferring the facilities-plan amendment by one year if necessary.
