Intergovernmental agreement reached with Lusted Water District to share use of pump station

The Gresham City Council unanimously voted to authorize a new line of credit through Washington Federal to help finance future city projects during its meeting Tuesday, May 1. The four-year term will be for up to a maximum of $30 million.

The money is expected to support street reconstruction, intersection improvements, development of groundwater wells, pipe replacements, reservoir seismic improvements, wastewater and stormwater projects, city facility projects and purchasing of equipment. It will not be used to pay for staff or consumable goods and services.

Gresham has used a line of credit since 2004. This decision was made as the current line expires in July. At each past renewal, the amount has been sized to best meet the financial needs of the city based on anticipated project plans.

The city expects $5.7 to $10 million of the money to go toward a rollover balance, $13 million to be used on transportation, $5.9 million on water projects and about $1 million on other projects.

Washington Federal was selected from four offers. After review, the city Finance Committee unanimously supported the proposal.

Before the vote, Gresham City Councilor Janine Gladfelter stepped aside because of her connection to US Bank, which also offered a line of credit.

Lusted pump station

During the meeting, council also voted to approve an Intergovernmental Agreement with the Lusted Water District to allow shared use of the city's Lusted pump station and reservoir site.

The spot, south of the Gresham boundary along Southeast Powell Valley Road and east of 282nd Avenue, has a 30-year-old old reservoir and pump that are no longer in service. Originally the city planned to demolish the structures and use the site for water supply storage — but now city staff have found a better way forward.

"This wasn't on the council work plan, but some really good ideas can come out of left field like this," said Steve Fancher, Gresham's environmental services director.

The Lusted Water District will pay the city to use the facilities, which will provide fire flows to the new Barlow High School, reducing the Gresham-Barlow School District's capital costs by about $100,000.

Lusted Water District would like to purchase the site from the city to install a drinking water well to replace its purchase of Bull Run water from the Portland Water Bureau. Gresham would benefit by using the funds to purchase another site to meet storage needs.

"If we can save another district some money that is a no brainer," said Gresham Mayor Shane Bemis.

In other business

-- Gresham City Council unanimously approved a consent agenda. Some of the items included reappointing Jef Kaiser to the Planning Commission and Martin Stone to the Historical Resources Committee.

-- Before the meeting, council read two proclamations recognizing May as Building Safety Month, and the week of May 1 to be Police Week in honor of officers who protect the community.

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