Council reviews proposed five-year OMI/Jacobs contract extension for wastewater plant with 8.5% first-year increase

City staff and representatives from OMI/Jacobs briefed the Walla Walla City Council at a work session on a proposed five‑year extension of the contract to operate the city’s wastewater treatment plant, with the renewal running from Jan. 1, 2025, through Dec. 31, 2029, and an 8.5% proposed increase in 2025.

The presentation, delivered by city staff and OMI/Jacobs representatives, said the relationship dates to 2000 and that the company has acted as the city’s operations partner for more than two decades. Staff described primary cost drivers for the proposed 2025 increase as higher pay to address staffing and retention issues, inflation-driven increases in chemical costs, rising electricity costs (presenters cited roughly an 11% electricity increase), greater equipment repair spending, and operational strains tied to an aging plant and construction work.

“The plant is definitely aging,” a city presenter said, adding that part of the facility dates to 1929 and that the plant is a reclamation facility that in parts of the year sends treated effluent to irrigation and in others to Mill Creek. Staff recommended a five‑year renewal and said the current negotiation reduced an initial proposed 13.5% increase to the current 8.5% through several iterations.

OMI/Jacobs representatives said they have struggled to retain certified wastewater operators — at one point operating at roughly half the staffing levels needed — and described the problem as part of a nationwide shortage of licensed operators. “We feel like we’re treated like a department of the city instead of a contractor,” said Sean Moffett, an OMI/Jacobs representative, describing the longtime partnership and noting the company’s willingness to own and address mistakes.

Council members asked about recent discharge violations and the risk of fines from the Washington State Department of Ecology. City staff and Jacobs said no fines from Ecology had been issued to date and that many recent violations involved total coliform counts tied to operations (for example, algae sloughing and missed cleaning of UV banks). Presenters said operational fixes, better supervision and stepped-up cleaning were being implemented; staff also said Jacobs has offered to include a new local limit study and an updated enforcement‑response plan as part of the proposed contract.

The contract proposal also includes rebate mechanics and incentive splits: city staff described returning 100% of unused amounts in certain budgets (for example, an unused repair budget or specific rebate accounts) to the city, while explaining that in other direct-cost categories the city would retain 85% of the difference between estimated and actual direct costs and Jacobs would retain 15%.

Council members pressed on whether the 8.5% figure applies across all five years; staff clarified that 8.5% is the year‑over‑year change from 2024 to 2025 and that subsequent annual changes will be handled in future budget reviews and amendments. Under current practice, increases below a stated threshold (3%) are handled under city manager authority; larger increases return to council for authorization, the presenter said.

No council vote was taken at the work session. Staff said council will be asked at the Wednesday meeting to authorize the renewal and that the council will receive the formal contract and staff report at that time.

What happens next: the council will receive the contract authorization item on Wednesday for a public hearing and vote. If approved, the city will proceed with the five‑year extension and the additional work items Jacobs offered (local‑limit study and enforcement‑response plan).