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Council approves geothermal rate hike and awards two South 6th Street water contracts
Summary
The council authorized a geothermal rate increase to $1.10 (effective 02/16/2026) and awarded construction contracts to Bob's Excavating Inc. for a South 6th Street booster pump station ($1,966,000 plus $393,200 contingency) and an associated waterline ($1,618,735 plus $323,747 contingency).
Klamath Falls city council approved a set of utility and infrastructure actions, including a geothermal rate increase and two construction contracts to replace aging water infrastructure on South 6th Street.
Wastewater/utility staff (Jada Bachetti and Robbie West) presented the annual CPI-based geothermal rate adjustment that brings the GEO rate to $1.10, effective Feb. 16, 2026; staff said the system follows CPI adjustments like other utility funds and that the city will provide a 60-day written notice to customers. Robbie West told the council the GEO system has roughly 15–18 direct customers and serves additional downtown facilities through snow-melt accounts.
Council also authorized two construction contracts with Bob's Excavating Inc. The first, for the South 6th Street Booster Pump Station, covers site construction and related work with a contract amount not to exceed $1,966,000 plus a contingency allowance of $393,200. Staff said the existing station—built in the 1950s—has outlived its useful life; the new station will include space for additional pumps, backup power and roughly 16-inch piping and will be sited on a city-owned parcel at the old Kiwanis Park.
The second contract covers the suction and discharge waterlines that will feed the new station. The contract was authorized not to exceed $1,618,735 with a contingency allowance of $323,747. Staff described the service area as the east side of town, essentially all customers east of the fairgrounds (toward Beverly, Crater Lake Parkway and the Foothills).
The council noted a conflict of interest for Councilor Mueller White with a subcontractor on the booster station item; Mueller White stepped off the bench for that vote. All motions were moved, seconded and approved by voice vote.
Next steps: city staff will proceed with contract execution and scheduling; staff indicated additional agenda items may be needed for future GEO adjustments or follow-up work.
