Council approves $1.5 million in bond premium to fix Civic Center electrical grounding

The Salem City Council voted unanimously May 11 to use $1,500,000 in bond premium funds to pay for an electrical overhaul discovered during the Civic Center seismic retrofit.

Assistant city engineer Aaron Kimsey told the council the buildings electrical grounding was not to current code and that "the current electrical system is harmful to life and property" without a complete overhaul of panels, breakers and grounding. Kimsey said the project team found an uneven mix of panels that are properly grounded and others that lack a safe fault path, and he described the condition as creating a risk of electrocution or fire.

The civic retrofit is part of the voter‑approved Salem safety and livability bond. Kimsey said the bond premium and interest balance available to projects is roughly $16.6 million and that the project has spent about $800,000 of its contingency. He and finance staff proposed releasing an unused $250,000 tariff allowance and applying it toward the electrical work, reducing the requested premium ask to $1.5 million from $1.7 million.

Mayor Julie Hoy and councilors pressed staff on why the deficiency had not been identified earlier. Kimsey and project staff said older buildings are often revealed to have undocumented conditions only after the structure is opened for seismic work and that a building electrical inspector concluded the existing grounding was not compliant once the interior was exposed. Kimsey said the contractor had procured long‑lead items and that, "if we get approval tonight, they're ready to go tomorrow," and staff maintained the project remains on track for completion with staff moving in late January or early February 2027.

Councilor Teigen noted the projects scale and compared it with larger municipal restorations elsewhere, thanking staff for keeping the effort on budget. Councilor Varney and others thanked finance and bond committee members for tracking funds; several councilors emphasized that the request is bond premium, not general fund money.

The motion to authorize the use of $1,500,000 passed by roll call with all members present voting aye and one member absent. Kimsey said work could begin immediately upon approval and that the funding would address immediate life‑safety and code compliance needs.

The council recorded no amendments to the motion. Staff said they will return with procurement and scheduling details tied to the approved work.

Whats next: contractors will proceed with ordering and installing the required electrical equipment and grounding work consistent with the retrofit schedule; staff expect occupancy in early 2027 if no additional unknowns emerge.