City Council approved a change order for $83,664 to address a problem in the original plan of the Willow-Yucca Local Improvement District (LID) during its April 22 meeting.
In 2019, area residents petitioned the city for the formation of a LID to receive water service and improvements of street infrastructure. The LID was approved in June 2021. In August 2023, the City Council authorized a loan in the amount of $2,059,815 ($2,359,815 total project cost) at 3.68% over 19 years from the Special Public Works Fund through the Oregon Infrastructure Finance Authority for the project.
Ogden reported that staff last year identified “a critical conflict” that is going to increase the final cost. The existing storm drain line on 18th Avenue interferes with an existing sanitary sewer system. Connecting additional residences to the system would risk overwhelming the system and causing overflows, which would also negatively impact the adjacent South Santiam River.
As such, an additional $83,664 and change would be required to redesign a new outlet. Overall project costs will also increase to complete the project, but those costs are yet undetermined. In a report on the matter, staff said the city may request a higher loan amount at the same interest rate, but those costs are mandated to be passed on to the residents of the LID.
“I know there’s some concerns about cost to residents, so I did a little bit of research here. We understand those concerns and here’s what we know at this point,” Ogden said. “The engineering change order itself does not directly increase residents’ costs. However, it would signal changes to the construction scope that might lead to overall higher project costs. By law, the terms of the loan require costs to be passed onto the residents, so we’ve explored some ways to offset those costs using SDCs (system development charges) and also readjusting the loan amount for the same interest rate. Staff’s goal is to minimize any financial impact for the residents wherever possible. Whatever the re-engineered difference is, we anticipate being able to use SDCs to offset the cost so there’s not a higher rate to the residents.”
The delay has also added an additional six months to the project timeline.
Councilor Angelita Sanchez expressed her concern about the unknown costs, believing it will be much higher than anticipated.
“I just don’t know how we can mandate a repayment by the residents – because some can and some cannot – and then expect us to approve an unknown amount,” she said.
Councilor Dylan Richards said he approves the motion because he believes infrastructure should be the city’s number one issue.
The motion passed 6-1; Sanchez opposed.
In other business:
- Mayor Susan Coleman awarded Taliesin Miller and Jacob Wheeler for their entries in the If I Were Mayor contest.
- The council adopted the 2025-2026 City Council Goals, which includes improving electronic communication to residents, support redevelopment of the Santiam Feed Store property, evaluate potential uses of the former City Hall building, begin Phase I of the wastewater treatment plant construction project, begin the Mountain View multiuse path sidewalks, prepare a street repair strategy, complete technology upgrades at the library, preserve Weddle Bridge, and continue efforts to reduce downtown commercial building vacancies.
- Approved ordinances that adopt camping regulations, the 2025 Transportation System Plan and the 2025 North Sweet Home Area Plan.