This project is currently in construction.

Project 20-03 replaces approximately 1,640 feet of antiquated water and sewer main, adds 2 new manholes, and includes a grind and asphalt inlay of the roadway. This project is identified in the City's Water Master Plan, Wastewater Master Plan, FY22-23 Capital Improvement Plan, and the Wastewater Consent Decree. The estimated cost for this project is $1,702,000.

This project was completed in July of 2022.

Project 21-06 was identified during a systemwide leak survey performed in 2021 when the failing line was identified and estimated to account for approximately 6% of the City's total water loss.

The project was initially budgeted at $245,000, but was delivered by City Staff for $215,000, a 12% cost savings. This project was entirely funded by grant proceeds from the American Rescue Plan Act (ARPA).

This project was completed in May of 2022.

Project 20-04 is listed in the Molalla Water System Master Plan and the FY22-23 Capital Improvement Plan. The project replaced 1,100 feet of antiquated water main with a new 8-inch main to address the reliability of the water distribution system and to improve fire flows to the Elementary School, Wastewater Treatment Plant, and City Shops.

The initial cost estimate was $620,000, but City Staff was able to deliver the project under budget at $544,000, a 12% cost savings.

In December of 2021 the City Council adopted a new water rate schedule and structure with Resolution 2021-26, it takes effect on July 1, 2022. You may view the rate structure by clicking the hyperlink, or on the Molalla Current Page under "Important Documents."

The new rate structure is intended to incentivize water conservation through a three tiered billing system that provides one rate for the first 500 units of water used, a slightly higher rate for the second 500 units of water used, and a slightly higher rate for all use above the second tier.

*Note: A unit is 100 Cubic Feet of water. The tiered system does not change the rate for all usage in a month, it only applies to the water used within that tier (e.g. Customer A uses 700 units of water in a month, they are charged the lowest rate for units 0-500, and the slightly higher rate for units 501-700.

Resolution 2021-26 established an annual inflationary adjustment based on the Consumer Price Index for the Molalla Area and Molalla Population. Each year that rates are not adjusted for inflation equates to a loss in operating revenues that results in deferred maintenance and degradation of the system. The inflationary adjustment is required to retain the value of operating revenues and avoid a situation where so much maintenance must be deferred that a massive infusion of revenue is required all at once to keep the water flowing and safe.

Additionally, Resolution 2021-26 established a water rate schedule increase divided up over a 5-year planning period. This adjustment is required to meet the Capital demands of the water system brought about by deferred maintenance and increased regulation.

*Note: System Development Charges are paid by new development and account for increased capacity needed for the new development and repayment for use of existing capacity. Additionally, new development is required to provide the system enhancements that directly serve the development. This either provides new infrastructure, or replaces existing infrastructure that was in need of repair/replacement.

That is why new development is advantageous to the water system, not detrimental.

The Level 1 Curtailment in the Summer of 2021 was brought on by drought which led to low flows in the Molalla River, the City's sole water source...

The issue in the Summer of 2021 was that the source water in the Molalla River was getting dangerously close to falling below the intakes, but never did. If water falls below the intakes, there is no ability to take in water to process, so regardless of population, there would be no water available to treat. So, the city was being extremely cautious to ensure no water shortage would ensue by keeping the tanks full and asking customers to limit use.

The City has the Capacity to make substantially more water than needed, about 4 million gallons per day with average use of around 1 million gallons per day in the high use months.

The City currently has the ability to store about 2 million gallons of treated water, or about 2 days supply in high use months (more with some minor curtailment measures).

The City is currently working on several projects to create resiliency in every area of the water system. These projects will ensure the supply of water to your tap is sustainable for many years to come. The Molalla Current team will provide bi-weekly updates to this page that outlines the efforts being made. Make sure you check in to the Current to see what's going on!