Hidden Century-Old Sewer Line Adds $364K to First Street Project, Delays Completion
Councilors voted unanimously on Monday, June 22, to improve 100-year-old clay water line at the intersection of Court and First street. The 27 inch diameter pipe is one of several main sewage lines that is crucial to the overall system.
The Dalles, Ore., June 25, 2026 — A hidden, century-old sewer line beneath downtown The Dalles will add more than $364,000 to the city's First Street Streetscape Project and delay completion by more than two months, after city officials approved a change order Monday night to protect critical infrastructure discovered during construction.
The City Council unanimously authorized a change order with Ajax Northwest LLC, increasing the construction contract by $364,223 and extending the completion deadline by 73 days, from May 1, 2027, to July 13, 2027.
City officials said the additional work became necessary after engineers identified an approximately 100-year-old, 27-inch clay sewer main beneath the intersection of First and Court streets — one of downtown's most complicated construction areas because of the Baldwin Saloon, underground utility vaults and the elevated sidewalk design.
Community Development Director Joshua Chandler said the heavy equipment needed to install structural micropiles for the elevated sidewalks would sit directly above the aging sewer line.
"If that line failed, it would create a catastrophic situation," Chandler said, noting that unlike a water main, a major sewer trunk cannot simply be shut off while repairs are made.
Rather than replacing the sewer main outright — an option engineers estimated could cost between $1.3 million and $1.5 million, with shoring costs alone exceeding $1 million — the city will install two new manholes and rehabilitate the existing pipe with a cured-in-place liner. The lining work is expected to cost approximately $100,000 under a separate contract that falls within the city manager's purchasing authority.
Despite the unexpected expense, Chandler said the project remains within budget. After accounting for the change order and anticipated lining work, approximately $782,000 will remain in the overall project budget.
The streetscape project includes roadway reconstruction, pedestrian improvements, utility upgrades and infrastructure replacement along First Street. Chandler acknowledged residents and downtown businesses have seen little visible progress in recent weeks because construction has been paused while engineers developed a solution.
"Everything is hinging on the installation of these micropiles," he said.
Council members questioned the condition of the aging sewer line and whether additional surprises could emerge during construction. Chandler said further inspections will occur once new access points are installed, and the city could return to council if engineers determine full replacement becomes necessary.
The council approved the change order unanimously.
Wastewater contract increases 8%
Our favorite Barber Mike Nagle captured this gem On Monday, Feb. 17, 2025 on First Street in The Dalles. City of The Dalles deals with about 2.5 million gallons of sewage per day before it goes into the Columbia River.
The council also approved an annual amendment to the city's wastewater treatment plant operations contract with Jacobs/OMI, establishing a 2026-27 operating cost of $1,618,781.
Although the city's agreement generally limits annual increases to 4%, Public Works Director Dale McCabe recommended approving an approximately 8% increase, citing rising operating costs that include fuel, laboratory testing required under a new state discharge permit, chemical costs and higher repair expenses associated with the aging treatment plant.
Wastewater Plant Manager Oscar Ferris said laboratory testing costs alone have increased 38% under new permit requirements, while diesel prices continue to drive up the cost of hauling biosolids several hours from The Dalles.
Ferris said the plant is currently fully staffed for the first time since 2023 but continues to face recruitment challenges similar to those affecting other public employers.
The contract amendment was included in the city's recently adopted 2026-27 budget and passed unanimously.
Assistant city manager pay range increased
Council members also unanimously approved adjusting the salary range for the Assistant City Manager/Human Resources Director position ahead of recruiting a replacement following Brenda Fahey's resignation to become city administrator in Madras.
City Manager Matthew Klebes said the position's responsibilities have expanded since its creation in 2025 and will now include supervision of the Finance Department. The council approved moving the position from the DH3 pay range to DH1, increasing the salary range from $116,924-$143,882 to $123,723-$152,164.
Klebes said broader recommendations for the city's non-represented wage schedule will come before the council later this summer.
Other business
The council approved dedicating approximately 240 square feet of right-of-way along Chenowith Loop Road to support frontage improvements associated with a 76-unit affordable housing development approved earlier this year.
