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Cottage Grove council adopts CDBG resolutions, creates McKinley zone of benefit and awards waterline contract

Cottage Grove City Council · July 14, 2026
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Summary

At its July meeting the Cottage Grove City Council adopted two resolutions required to accept a $400,000 Community Development Block Grant, approved an ordinance creating the McKinley Avenue zone of benefit to reimburse a private applicant for utility extensions, and awarded a $451,408 contract for a 21st Street waterline replacement.

The Cottage Grove City Council on Tuesday adopted a pair of resolutions tied to a $400,000 Community Development Block Grant (CDBG), approved an ordinance to form the McKinley Avenue zone of benefit, and awarded a contract to replace a city water main on 21st Street.

The council accepted the grant-related measures after City Manager Sauerwein told the council the funds from Business Oregon will support a regional housing rehabilitation loan program. Council adopted resolution 2184 designating a certifying officer for site-specific environmental reviews and resolution 2185 adopting the city's fair housing program; both adoptions were described as required conditions of accepting the federal funds. Councilor Evan moved the resolutions and the motions carried on recorded roll calls.

In a separate action tied to infrastructure reimbursement, the council held a public hearing on a petition from Dan Rhodes to form a McKinley Avenue zone of benefit. Public works director Stewart said Branch Engineering verified invoices documenting $162,420.56 in construction costs for public water and sewer extensions; staff calculated a fair-share charge of $5,800.73 per dwelling unit. After hearing no public testimony, the council adopted ordinance 3209 to create the zone, which will permit reimbursement upon annexation and connection to city services.

The council also awarded the 21st Street waterline replacement contract to Pacific Excavation, the low bidder at $451,408, well below the engineer's estimate of $562,107.20. Staff recommended the award after reviewing three responsive bids; council approved a motion directing the city manager to sign contract documents. The meeting minutes note the mayor recused from that discussion and vote.

Councilors also approved a grievance procedure and designated the city manager as the nondiscrimination compliance coordinator for the housing rehab program, another condition of the CDBG award. Staff and nonprofit partners said outreach and application work is underway and that an active waiting list exists for assistance.

What comes next: the CDBG program administration tasks and environmental reviews proceed as staff and local partners finalize application materials; properties in the McKinley zone will become eligible for reimbursement only after annexation and connection to city water and sewer.