TD Pipeline Replacement contract comes in at $3.5 million under estimate
The Dog River Pipeline is part of the system that delivers water to The Dalles Water Treatment Plant on Mill Creek Road in The Dalles. City Councilors forged ahead on a major pipeline upgrade to stop huge water losses during spring runoff.
By Tom Peterson
The Dalles City Council authorized New City Manager Matthew Klebes to enter into a contract with K&E Excavating for the Dog River pipeline replacement at a cost of $5,890,550 at its regular meeting on Monday, May 23.
The current wooden pipe is 100 years old and is leaking up to a million gallons per day during peak runoff times.
The project has major implications for residents needing a steady water source as well as industry that relies on water to generate products and services while contributing to local economy through payroll.
The pipeline is the main feed for The Dalles Water Treatment plant, known as Wick’s, on Mill Creek Road, which supplies more than 50 percent of the potable water to residents and businesses in The Dalles.
The total estimated cost of replacing the line is $13 million.
Public Works Director Dave Anderson said the replacement bid came in at $3.5 million below the estimated cost by Jacobs Engineering. This will allow the City to lower its debt burden as it has access to $7.5 million in low-interest loans - 1 percent annual interest- to complete the project from the federal government. The City also was given $1.53 million in federal and state money for the project.
The pipeline project has been on the books for years as the century-old wooden line has been leaking like a sieve.
Location of project.
The section of the pipeline is approximately 3.5 miles long and has a 20-inch diameter.
Anderson said the new line will allow for greater operational flexibility as the city utilizes both surface and well water in supplying the city and commercial industry.
The pipeline will also augment the city’s ability to supply millions of gallons of water daily to future Google data plants if built. Current plans call for storing surface water in The Dalles Groundwater Reservoir via wells on Google property in the Port of The Dalles.
K&E Excavating is headquartered in Salem.
“This bid is great news,” said Councilor Dan Richardson. “It seems like a great deal… are we missing anything.”
Anderson said K&E was required to visit the site, attend pre-bid meetings, and had to have a history of similar projects and understand and demonstrate their knowledge in butt welding high density polyetheylene pipe - the pipe being used in the project.
In addition, Jacobs Engineering has a good working relationship with K&E having worked on project together in the past, Anderson said.
Work is expected to start this summer on the project.
Jacobs Engineering did the original design work for the Dog River replacement project.
“They feel good about the project,” Anderson said of K&E.
Other bids received for the replacement were:
Granite Construction $18,595,450
Michels Pipeline $ 8,733,482
& Crestline Construction $ 7,054,500
Insurance Renewal
Councilors approved the renewal of city Insurance with CityCounty Insurance Services through Agent Mike Luebke at Oregon Trail Insurance in The Dalles at a cost of $492,205.
“During the fiscal year, there have been 48 new reported claims. This is a unusually high
amount of claims reported(see claims graph for prior years) and due mostly to one
occurrence. I do not anticipate claim volume being elevated for this new period,” Luebke wrote in a letter to City.
“Over the past few years, local government general liability and property insurance premiums have increased significantly. The enclosed insurance renewal shows this trend is continuing. Every effort was made to provide City Council the information as quickly as possible so the costs could be included in the budget discussion,” explained Human Resources Director Daniel Hunter in the staff report.
“In addition to the premium increases, CIS has changed how their Cyber coverage is managed. We looked at going to Tier II for Cyber coverage. However, we do not have the required systems in place to do so. IT is currently looking at the cost to implement the requirements.”
Click to enlarge. This graph shows the high number of insurance claims - 48 - in 2021-22.
In-House Attorney
Current contract attorney for the City of The Dalles, Jonathan Kara with Campbell Philips PC.
Council voted unanimouosly to hire and put an attorney on City staff instead of contracting for services.
During the past two years, the City has spent $441,513 on outside counsel contract through Campbell Philips PC, according to the staff report.
“We believe Campbell Phillips, PC has done an excellent job representing the City’s interest and providing sound legal advice,” according to the Staff report. “However, they are a local firm that is very popular. This means the City’s Attorney has encountered potential conflicts of interest requiring the City to seek outside Counsel. Those issues were the SIP agreement with Wasco County, Ixtapa right-of-way agreement, Court prosecutorial agreement with Wasco County, and the LUBA appeal for Legacy. The conflict on the Ixtapa issue was able to be waived. The other conflicts added legal costs to the City of $28,876.20 over two years.
Hunter told Council it would be an additional cost of $25,000 annually to have an attorney on staff who is readily accessible to the City Manager and staff.
Purple Heart City
Mayor Mays proclaimed The Dalles a Purple Heart City for Veterans who paid the high price of freedom, leaving their families and communities and placing themselves in harm’s way for the good of all.
Citizens of our Country have received the Purple Heart Medal as a result of being wounded while engaged in combat with an enemy force. Cpmstried as a singularity meritorious act of essential service.
City Councilor Rod Runyon gave high praise for the proclamation and said he appreciated the work that went into it. He said he was currently on a trip with 300 veterans and noted he is hearing stories of POW and MIAs and that brothers, sisters and fathers who were lost had never returned and were still being looked for. He said “82,000 Americans are unaccounted for around the world from all the conlflicts the United States has been involved in over many, many years. So this one singular recognition… is especially warming to my heart.”
