Lake Oswego City Council approves $372 million sewer plant contract, adding $25 to $30 to monthly bills in 2027

Lake Oswego residents will pay about $25 to $30 more per month on their sewer bills starting July 1, 2027.

The Lake Oswego City Council on Tuesday, Oct. 13, approved a $372 million contract with Jacobs to design, build, operate and maintain a new wastewater treatment plant in the Foothills District, the Lake Oswego Review reported. The council also approved a 28% sewer rate increase to help fund the project.

The new plant will replace the Tryon Creek Wastewater Treatment Plant, which was built in 1964 and is owned by the city of Portland. The city said the replacement will be more environmentally sustainable, seismically resilient and less odorous than the current facility.

It will cost $6.5 million per year to operate and maintain. Portland is paying 30% of the costs.

"While the cost is substantial, continuing to rely on aging infrastructure carries operational risks of its own," Mayor Joe Buck said in a press release, according to the Review.

The city chose the one-time 28% increase over a more gradual approach. City staff and consultants determined the immediate hike would cost ratepayers less by 2033 than smaller annual increases, the Review reported in a September article. After the initial jump, rates will rise at the city's regular 3.9% annual rate.

The project is among the largest capital investments in the city's history, KOIN reported. Funding comes from sewer utility revenue, a federal Water Infrastructure Finance and Innovation Act (WIFIA) loan, Portland's contributions, bonds and System Development Charges.

Jacobs is a water operations firm that started in Corvallis and has worked in the Pacific Northwest for more than 70 years. It was the only company to express interest when the city conducted market outreach in 2024. A previous agreement with EPCOR fell through after the two sides could not reach a contract agreement, the Review reported.

Demolition of existing buildings at the Foothills site is expected in early 2027. Construction will take about five years.

The city has used eminent domain to acquire property for the project, and court records show that process is not fully resolved, according to the Review. The city is also eyeing redevelopment opportunities in the Foothills area.

Residents can contact Stefan Broadus, the city's director of special projects, at 503-635-0267 or [email protected] for more information about the project.