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Clallam County approves low-interest loan, $10 million package for Clallam Bay sewer pipe replacement

Clallam County Board of Commissioners · February 24, 2026
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Summary

The Board of Commissioners approved an agreement with the Washington Department of Ecology to fund replacement of aging sewer collection pipe in Clallam Bay, authorizing a ~20-year loan at about 1.2% and a broader $10,030,000 package that includes forgivable principal.

Clallam County commissioners on Feb. 24 approved an agreement with the Washington Department of Ecology to fund a sewer-collection-pipe replacement project in Clallam Bay, signing off on a loan component of roughly $3.8 million at an interest rate of about 1.2% and a longer funding package that totals $10,030,000.

The board moved to authorize the Department of Ecology agreement after staff said the work will replace existing in-place concrete pipe with modern watertight PVC to stop groundwater intrusion and reduce flows into the treatment system. Department of Ecology staff member Ron told the commissioners the project is limited to collection-system replacement and does not construct a new treatment plant.

Project details described to the board included replacement of approximately 10,704 linear feet of sewer main, installation of 33 manholes and about 1,720 feet of side sewer connectors. County staff said about $4 million of the total package is forgivable principal, a grant portion is roughly $2.1 million, and the loan portion is the approximately $3.8 million priced at 1.2% over 20 years.

Chair moved the resolution to approve the agreement and the motion carried by voice vote. Commissioners and public speakers had raised earlier questions about sea-level-rise risk and siting for any future treatment-plant work; Ecology staff and county project leads emphasized the current scope is pipe replacement in the existing footprint and said locations for any future treatment-plant improvements would undergo separate review.

County officials said loan repayments will be covered from the county Opportunity Fund and other existing revenue sources. The board's approval allows contract execution and moves the project into implementation planning and procurement.

What’s next: staff will finalize the Ecology agreement and proceed with design and procurement steps for the collection-system work; any future, separate decisions about treatment-plant siting or construction would return to the board for further public review.