Additional infrastructure needed due to city growth; user fees will not be increased.
Estacada is closing in on adding a new water reservoir and replacing its aging sewage treatment plant, both to accommodate the city’s growth.
The new reservoir, the fifth in Estacada, will add redundancy and additional water storage as the city grows, Melanie Wagner, acting city manager at the city council, said at its Monday, March 14, meeting.
The $2.5 million reservoir project will not increase water costs for Estacada consumers since it will be paid for with money generated from system development costs. These fees are paid by developers building new housing and other developments.
“We have identified a property that would be ideal for this (the reservoir). The owner agrees,” Wagner said.
The potential reservoir site is just off Southeast Lawrence Road, and the city could negotiate a lease for the use of the property.
The city is also submitting a letter to the state signaling its intention to eventually apply for a loan from Business Oregon, the state’s economic development agency, to give the city additional flexibility for construction of the new reservoir.
The loan would have an interest rate of 1.65%.
The board also ordered Wagner to submit a letter of intent to Business Oregon for a loan for the $25 million sewage treatment plant that is also planned.
This project will likely require multiple sources of funding.
The city has been discussing the replacement of the 1969 sewage treatment plant located near Timber Park for some time.
With Estacada’s growth, the wastewater treatment plant is expected to reach capacity by the end of 2025.
City consultants recommended that the new sewage treatment plant be located north of the city’s urban growth limit, beyond Folsom Road. The consultants said the plant could not be expanded at the current site.
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