Cost of Tigard-Lake Oswego water agreement rises

By Geoff Pursinger

The Times, Dec 4, 2009

The cost of Tigard’s agreement with Lake Oswego to use Clackamas County Water in 2016 is rising, but that’s nothing to be concerned about.

Last year, the two cities approved a $135 million price tag, but that number has grown to $200 million.

That extra $50 million is simply to account for inflation, said Dennis Koellermeier, public works director for the city of Tigard.

The $135 million was based on an earlier, outdated 2006 study, Koellermeier said.

“The project goes until 2016, and as we start the refining and financing process, we are going to have to have dealt with the escalation of nine years,” he said. “The scope of the project hasn’t changed, and at this point there’s no new cost information other than we need to factor in the coming nine years.”

That extra $50 million was obtained by adding a 6 percent annual inflation to the initial $135 million price tag through 2013.

When finished, the two cities will embark on a long-term plan for drinking water for the two cities. Lake Oswego needs to improve its aging water system, and Tigard – which currently purchases its water wholesale from the city of Portland – is looking for the most cost-effective means to get water to the city.

The project is set to begin construction in 2012, and will require a larger water intake facility, larger transmission pipes and a new water reservoir.

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