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Council authorizes five‑year extension with Jacobs to manage wastewater plant, with negotiated 8.5% price increase

Walla Walla City Council · December 4, 2024
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Summary

Council approved resolution 2024‑105 renewing the OMI/Jacobs contract to operate the city's wastewater treatment plant for Jan. 1, 2025–Dec. 31, 2029. Staff said negotiations reduced an initial proposed increase to 8.5% and the contract contains rebate and incentive provisions.

The council voted unanimously to authorize renewal and extension of the contract with OMI Jacobs for management of the city's wastewater treatment plant under resolution 2024‑105.

Public Works staff said the extension runs Jan. 1, 2025 through Dec. 31, 2029, and that negotiations reduced the contractor's requested increase down to 8.5% from an initial 13.5%. The contract includes rebate provisions for unused budgets (100% rebates for unused PCB source tracking and repair budgets and a Columbia REA rebate) and an incentive split in which the city retains 85% and Jacobs retains 15% of certain savings or adjusted estimates.

Staff characterized the operator partnership as long‑standing, noted challenges associated with operating and upgrading an older facility while in service, and recommended continuance of the contract to stabilize operations.