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Oregon City outlines progress on $33.2 million WIFIA program and readies major bids
Summary
City staff and South Fork Water told the commission the WIFIA-backed program is about halfway spent and on track, with the Henrici project out to bid Aug. 4 and the work required to be substantially complete by June 30, 2028. Funding mixes include ARPA dollars, rate revenue and SDCs.
Oregon City officials on Thursday told the City Commission the Water Infrastructure Finance and Innovation Act (WIFIA) program that underpins a suite of water-system upgrades is making steady progress but still faces cost and scheduling decisions.
Patty Nelson, who leads the city's work on the WIFIA program, said the program portfolio totals roughly $33.2 million and that the city's share is about 49 percent. The loan closed in July 2023 at 3.94 percent interest. Nelson said the city has drawn about $5.5 million so far and is roughly 43 percent through planned spending.
"The master plan identified $81,000,000 worth of capital improvements," Nelson said, describing how the city prioritized projects and used federal WIFIA flexibility and a program contingency to manage rising construction costs. She added that the city used ARPA funds, water-rate revenue and system-development charges to assemble the city's match, including about $5.6 million from ARPA and roughly $2.9 million from rate funds.
Finance Director Matt Zook said the city's strategy has been to use its own cash first and delay borrowing until needed to minimize interest costs. Zook noted the program includes three linked projects: a SCADA isolation project (complete), a pipe-rehabilitation program and several transmission-main upgrades, with the largest single contract being the Henrici project.
"One of our largest projects, the $10,000,000 Henrici project, is currently out to bid," Zook said. He said bids are due Aug. 4, with construction expected this fall and work continuing into 2028, and that all WIFIA-funded work must be substantially complete by June 30, 2028.
Nelson and Zook described operational choices that give the city flexibility: reducing scope if bids run high, reallocating SDC‑eligible cost shares and prioritizing transmission projects that deliver water to 70 percent of customers. Nelson said the Mountain View pump station work required replacing a 16‑inch transmission main with a new 30‑inch line and that crews managed traffic and night work for several challenging crossings.
Commissioners thanked staff and South Fork Water for coordination and noted that, from a resident perspective, much of the project's success will look like uninterrupted service.
Next steps: staff will return with bid results and continue quarterly reporting to WIFIA. The commission heard no formal motion; the update served as direction and a progress report.
