City planning and public works staff told the council that the replacement of a short 6‑inch section of waterline on Fifth Street — adjacent to Sanders Estate Park and the post office — could be funded through a state appropriation and constructed as part of a park contractor’s scope.

Staff said the funding was an appropriation from the state (about $325,000) included by the legislature and routed through regional committee channels; staff said they are confirming whether the governor has signed the appropriation and the process for reimbursement. The appropriation was described as an appropriation (not a traditional competitive grant) and is reimbursable.

Public works staff said the section requiring replacement is roughly 75–100 feet and that Clackamas Parks and Recreation District (CPRD) had agreed to have its general contractor bid placement of the 6‑inch line as part of park construction. Staff said they will present an intergovernmental agreement (IGA) to reimburse CPRD for the work once those terms are finalized.

Council and staff discussed logistics: staff asked CPRD to confirm the 6‑inch replacement is included in contractor plans; the city engineer will review the final scope and costs. Staff said they would follow up with CPRD and return with an IGA for council consideration.

No formal council action was taken at the work session; staff said they will update the council when appropriation paperwork and the CPRD IGA are ready.