City staff outline $10 million bond option to accelerate water and sewer projects; wastewater plant budgeted at ~$99.8M
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Summary
Utilities staff reviewed ongoing water-loss work, meter replacements and major capital projects; they proposed bonding to accelerate pipe replacement (example figure $10M) funded by water-loss savings and grants, and provided status on ARPA-funded sewer-lining work and the wastewater resource recovery facility project (~$99.78M).
Public utilities staff gave a multi-part update on water and sewer infrastructure and proposed financing options to accelerate replacement work.
Staff said the city has committed roughly $1,000,000 per year to utility-line replacement and recently created a water-loss team that has produced conservative annual savings estimates (staff cited $500,000–$600,000 conservatively, and up to $750,000–$800,000 in some notes) from meter replacements and administrative fixes. Based on those savings, staff proposed bonding to accelerate pipe replacement, suggesting that $10,000,000 of bonded proceeds, serviced by water-loss savings and other revenues, could be applied to speed projects that otherwise would take many years.
The commission heard project-by-project updates: a sewer-lining program (started March 2025) that will place roughly 11,000 linear feet of pipe at a cost just under $2.3 million (ARPA funds), a Roberts Drive pump-station project funded with ARPA (~$2.9 million), and the larger wastewater resource recovery facility (WRRF) project with a construction budget cited as $99,782,000 and multiple funding sources (CSO surcharge, KIA, ARPA, potential bond proceeds and grants). Staff said the WRRF contractor is on-site and that site preparation and early work are underway with an anticipated completion in 2029.
On compliance matters, utilities staff described a federally prompted "dead-service identification" project required by EPA; staff said a 100% forgivable loan is available for part of that work and that an initial phase of identification is underway with door‑knocking and contractor assistance. Staff also said they continue to pursue federal appropriations and grants (including a grant application to address Oak View/29th Street) that could offset borrowing.
What’s next: Staff asked the commission to consider bonding to accelerate projects and said they will continue to pursue grants and document savings; staff emphasized that increasing crew capacity or hiring temporary crews could also speed work if funding is provided.
