Chehalis City Council awards raw-water engineering contract, approves indigent defense contract and utility purchases

Chehalis City Council on Feb. 9 approved a package of infrastructure and administrative measures, including a state-funded engineering contract to replace a failing raw-water transmission line and several large utility purchases.

The council awarded the raw-water engineering contract to Black & Veatch after staff said the city had been awarded a Washington State Department of Commerce grant of $1,942,000 to fund engineering and design for roughly 8,500 linear feet of new main. "The existing raw water line installed in 1961 has reached the end of its service life and is limited to capabilities of approximately 900 gallons a minute," a public-works staff presenter told the council, noting the pump station capacity is about 3,500 gallons a minute. The negotiated engineering fee is $1,898,718, leaving $42,282 of the grant as project contingency. Council approved authorizing the city manager to execute project documents.

Staff repeatedly warned that an archaeological survey is a pre-grant requirement. The presenter said the archaeological-survey and project-management costs could be "upwards of $85,905" and that significant finds could force a route change; the city would be responsible for survey costs if discoveries prevent the project from proceeding. Council members asked whether the city would simply reroute the line or have to re-do the study; staff said additional work or a new survey could be required depending on the finding.

On legal services, the council approved a new indigent-defense services contract covering Jan. 1, 2026, through Dec. 31, 2028. City staff explained the change is driven by requirements from the Administrative Office of the Courts (AOC) and described the new terms as effectively an "unfunded mandate." The city manager said defense firms agreed to phase in higher fees over several years to soften the immediate budget impact. Councilmember Bob moved to authorize the city manager to execute the contract; the motion passed.

In utilities business, staff recommended purchasing a Sulzer HST turbo compressor for the regional water-reclamation facility through Rainier Pump Systems at a price of $277,054.75 and performing installation in-house to capture installation savings estimated between $100,000 and $120,000. The presenter said the model is used widely and that similar installations have long service lives; he estimated energy savings of roughly $10,000–$15,000 a year and said local PUD rebates could range from about $50,000 to $100,000 depending on program eligibility. Council approved the purchase and authorized the city manager to sign the purchase agreement.

The council also approved a five-year farm-and-pasture lease (Feb. 1, 2026–Jan. 31, 2031) with New Welcome Valley Harvest for roughly 50 acres south of Highway 6 for land application of about 90 dry tons of Class A biosolids. Staff said the annual lease payment will be nominal—about $50 total, or roughly $1 per acre—because avoided hauling and disposal costs are expected to net about $17,000 in operational savings. Staff explained the property will be subject to soil testing, insurance and indemnification, and restrictions on chemical use; the lessee was the only responsible proposer.

On planning matters tied to a pending annexation, the council adopted Resolution 4-2026 to authorize the city manager to enter contract negotiations for an annexation census consultant. Staff said a door-to-door census within 30 days of certification is required by the Office of Financial Management for populated territory; staff estimated the annexation area contains roughly 1,500–2,500 residents and said refined numbers will be provided once consultant negotiations conclude.

The council also adopted Resolution 5-2026 to authorize negotiations for an impact-fee study related to transportation, fire and EMS, parks and schools. Staff clarified that building permits already in the pipeline before a fee ordinance would not be subject to the new fees.

The meeting concluded with routine council reports—staff noted an open house on flood-mitigation progress Feb. 25—and an announcement that the council would recess into an executive session for collective-bargaining matters under RCW 42.30.140(4)(b).

Votes at a glance

- Indigent-defense contract (01/01/2026–12/31/2028): motion to authorize city manager to execute the contract; mover: Councilmember Bob; second: Councilmember Jody; outcome: approved. - Raw water replacement engineering: award to Black & Veatch for $1,898,718; allocate $42,282 contingency; mover: Councilmember Bob; second: Councilmember Jody; outcome: approved. - Sulzer HST turbo compressor purchase: $277,054.75 through Rainier Pump Systems; mover: Councilmember Bob; second: Councilmember Jody; outcome: approved. - Agricultural lease with New Welcome Valley Harvest (02/01/2026–01/31/2031): lease payment $50/year (approx. $1/acre) with biosolids application; mover: Councilmember Bob; second: Councilmember Jody; outcome: approved. - Resolution 4-2026 (annexation census negotiations): mover: Councilmember Bob; second: Mayor Tony Ketchum; outcome: adopted. - Resolution 5-2026 (impact-fee study negotiations): mover: Councilmember Jody; second: Mayor Tony Ketchum; outcome: adopted.

What to watch next

Staff will return with final contract documents and any refined cost estimates for the raw-water project after consultant negotiations and the required archaeological survey. The annexation consultant contract and the impact-fee study contract will come back to council for final approval after negotiations are complete. The council recessed into an executive session on collective bargaining at the meeting close.