South Suburban District seeks $20M for wastewater upgrade amid rising costs

April 25, 2025 | Ways and Means, Joint, Committees, Legislative, Oregon


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South Suburban District seeks $20M for wastewater upgrade amid rising costs
The Joint Committee on Ways and Means of the Oregon State Legislature convened on April 25, 2025, to discuss critical funding requests for wastewater treatment facility upgrades. The meeting highlighted the urgent need for financial support to comply with new environmental regulations affecting the Lagoon wastewater treatment facility, which serves 7,200 locations and 23,000 residents.

Michael Koger, a director on the South Suburban Cemetery District Board, presented a funding request of $20 million to address the facility's compliance with National Pollutant Discharge Elimination System (NPDES) permit regulations. Koger emphasized that the community is classified as disadvantaged, with 20% of residents, approximately 4,600 seniors, living on fixed incomes. Over the past three years, the district has raised rates by 33% to manage increasing costs.

The facility's upgrade costs have escalated significantly, initially estimated at $45 million but ballooning to $97 million during the design phase. After extensive redesign efforts, including the removal of biosolid processing, the projected cost was reduced to $60 million. Koger and his colleagues expressed hope that with state support, they could bridge the funding gap and achieve compliance with the new permit requirements.

Joe Spindellini, chairman of the South Suburban Sanitary District, echoed Koger's sentiments, detailing the district's efforts to lower costs through value engineering and collaboration with engineers. He noted that the initial funding request had started at $70 million but was revised down to the current $20 million request after significant cost-cutting measures.

The discussions underscored the challenges faced by local governments in meeting environmental standards while managing financial constraints. The committee's response to the funding request will be crucial for the future of the Lagoon wastewater treatment facility and the community it serves.

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