Century-Old Sewer Line Discovery Adds Nearly $500K to First Street Streetscape Project in TD
File photo - Ajax Northwest crews carried on their work along the sidewalk next to the Baldwin Saloon last March. A clay sewage pipe found during excavation near the Baldwin needs to be replaced jumping the overall cost of the project by a half million dollars.
The Dalles, Ore., June 20, 2026 — The Dalles City Council will consider adding nearly half a million dollars to the First Street Streetscape Project on Monday after crews discovered a century-old sewer line beneath one of the most complicated sections of the downtown reconstruction effort.
City staff are recommending approval of a $364,223 change order with Ajax Northwest LLC and preparing an additional sewer rehabilitation project estimated at about $100,000, bringing the total expected increase to approximately $464,000. The unexpected work stems from the discovery of a roughly 100-year-old clay sanitary sewer main near the intersection of First and Court streets adjacent to the historic Baldwin Saloon.
The council will meet at 5:30 p.m. Monday, June 22, in City Hall Council Chambers, 313 Court St. The meeting is open to the public and will be streamed live at https://www.thedalles.org/Live_Streaming.
According to city staff, the sewer line was discovered during planning for installation of a micropile foundation system needed to support reconstruction of the elevated sidewalk near the Baldwin Saloon. Engineers determined the aging sewer line was vulnerable to damage from excavation, grading and heavy equipment operating above it.
The sewer main is one of two primary lines serving downtown and carries wastewater beneath the railroad corridor to the city's wastewater treatment plant. Staff warned that damage to the pipe could result in service disruptions, emergency repairs, significant project delays, additional public expense and potential environmental impacts from untreated wastewater releases.
City officials evaluated multiple alternatives beginning in March, including options that would have required extensive replacement work and engineered shoring systems costing more than $1 million for shoring alone. Instead, staff are recommending installation of two new 72-inch manholes, temporary bypass pumping, protective steel plating and related improvements designed to protect the sewer line while allowing streetscape construction to continue.
The proposed change order would also extend the project's completion date by 73 days, moving the deadline from May 1, 2027, to July 13, 2027.
Looking east on First Street where it intersection with Union Street - Ajax Northwest has a long way to go to bring the the streetscape vision into reality.
The First Street Streetscape Project was originally awarded to Ajax Northwest in December 2025 for $4.07 million. After a previous change order, the contract grew to $4.21 million. Approval of the latest change order would increase the construction contract to approximately $4.57 million.
Despite the additional costs, staff report sufficient funding remains available within the project's overall budget, which includes urban renewal funding and remaining bond proceeds. Following the proposed change order and anticipated sewer rehabilitation work, city officials estimate about $782,000 would remain available within the project's budget.
Councilors are also expected to consider nearly $920,000 in contracts with Jacobs Engineering Group to modernize supervisory control and data acquisition, or SCADA, systems used to operate the city's water and wastewater infrastructure. The upgrades are intended to replace aging equipment, improve reliability and strengthen cybersecurity protections for critical utility systems.
Another late addition to the agenda involves a proposed salary adjustment for the Assistant City Manager/Human Resources position. City Manager Matthew Klebes is recommending an increase in the position's salary range ahead of recruiting a replacement following the current employee's resignation.
Staff propose moving the position from the DH3 pay grade to DH1, increasing the salary range to $123,723 to $152,165. City officials say the adjustment reflects the position's expanded responsibilities, including anticipated supervision of the Finance Director and oversight of key internal services.
The council will also hold a public hearing on annexation of property at 2430 E. 18th St., consider accepting right-of-way along Chenowith Loop Road for public street purposes, review an amendment to the city's wastewater treatment plant operations agreement, and make appointments to the Museum Commission and Library Board.
A presentation of the city's fiscal year 2024-25 audit, originally scheduled for Monday's meeting, has been removed from the agenda and is expected to be presented at a later date.
