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The city of Portland is moving forward with a plan to construct a state-mandated water filtration plant despite an unexpected increase in the estimated cost that left some city councilors reeling from sticker shock.

During a council work session with Portland Water Bureau officials in September, bureau director Michael Stuhr revealed that the project’s cost 鈥� originally estimated in 2017 at about $350 million to $500 million 鈥� could now potentially be more than $850 million.

The main reason, explained Stuhr, is that original estimates didn’t include construction of pipelines to service the plant. That portion was not included in early estimates because at that point the city had not decided where to locate the facility.

Mayor Ted Wheeler, taken aback by the price escalation, let his displeasure with the omission be known.

鈥淚t would have been very helpful for me to know that what we were talking about at that time was not the total project cost 鈥� that we were talking about merely one component of an overall system,鈥� Wheeler told Stuhr. 鈥淲e needed to know that we were talking about a piece of a system that could not operate, work or function in any reasonable manner in the absence of the rest of the system.

鈥淚 just want to put that on the table,鈥� he continued. 鈥淚’m disappointed in that.鈥�

The project is being undertaken to address regulatory requirements and potential impacts of natural disasters on the Bull Run watershed. After multiple tests in 2017 revealed the continued presence of the pathogen cryptosporidium in the watershed, the Oregon Health Authority revoked Portland’s variance from federal rules requiring treatment of cryptosporidium. The city then entered a compliance agreement with OHA requiring construction of a treatment facility that is operable by September 2027.

During the September work session, Stuhr and bureau officials presented city councilors with three options for the project, with cost estimates ranging from an estimated $670 million to meet minimum requirements to $850 million for a more robust version.

After Wheeler and Commissioner Jo Ann Hardesty balked at the price, Water Bureau officials solicited feedback from the Portland Utility Board and Citizens Utility Board before returning in front of City Council Nov. 13 to recommend an $820 million option.

The recommended option would include most of the features of the full implementation option 鈥� including ozone and conventional filtration, two pipelines into and out of the facility for redundancy, and clear well storage 鈥� but would have a slightly lower treatment capacity of 145 million gallons per day, resulting in a $30 million cost savings.

City councilors on Nov. 27 approved adopting the recommended option to guide design and implementation. They also voted to authorize a $51 million maximum contract with Stantec Consulting Services Inc. for design of the water treatment facility, which will be located on a 95-acre parcel in unincorporated eastern Multnomah County. Both items passed with 3-0 votes; Hardesty and Chloe Eudaly were absent.

A separate contract for design of the pipelines servicing the plant, estimated to cost $20 million more, is expected to be issued in spring 2020. Design work is set to begin next year and run through the end of 2022.

The bureau ought to have a more concrete number on the project’s cost by the middle of 2021, when the design is anticipated to be about 30 percent complete. Construction is expected to begin in 2022 and run through the end of 2026.

The filtration facility will come without the bells and whistles that have led to cost overruns on other city projects, according to Commissioner Amanda Fritz, who oversees the water bureau.

鈥淚 have directed the water bureau staff to work toward a no-frills facility,鈥� she said at last week’s council meeting. 鈥淣o interpretive center, no fancy finishes except landscaping and exterior improvements designed to fit into the surrounding area.鈥�

Wheeler, recognizing the importance of the project, called it the best long-term option for maintaining a safe drinking water supply. At the same time, he cautioned that the council had yet to solidify a cost estimate, and the current $820 million price tag is a low-confidence approximation that is likely to increase.

鈥淭he cost of construction, the cost of labor are going up, and so it is my expectation that the cost of the project will go up,鈥� he stated before voting to move forward.