TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
title
Amendment to Cooperative Improvement (Utility) Agreement with the Oregon Department of Transportation for water and fiber optic utility construction on the Salem Center Street Bridge Seismic Retrofit Project.
Ward(s): 1
Councilor(s): Tigan
Neighborhood(s): West Salem Neighborhood Association, Central Area Neighborhood Development Organization (CANDO)
Result Area(s): Safe, Reliable and Efficient Infrastructure
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SUMMARY:
summary
In July 2025, after City Council authorization in June, the attached Cooperative Improvement Agreement (CIA) (Attachment 1) was executed with the Oregon Department of Transportation (ODOT) to fund construction of City water and fiber optic utilities with ODOT’s Salem Center Street Bridge Seismic Retrofit Project. The CIA requires the City to deposit a total of $7,000,000 for the estimated design and construction costs. The City and ODOT have negotiated the attached Amendment to the CIA (Attachment 2) revising the payment schedule for deposits to allow ODOT to proceed with pre-procurement of waterline materials prior to the construction contract to avoid construction delays due to anticipated materials lead times.
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ISSUE:
Authorize the City Manager to execute an amendment to the Cooperative Improvement (Utility) Agreement for replacement of City water and fiber optic utilities in association with the ODOT’s Salem Center Street Bridge Seismic Retrofit Project?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute an amendment to the Cooperative Improvement (Utility) Agreement for replacement of City water and fiber optic utilities in association with the ODOT’s Salem Center Street Bridge Seismic Retrofit Project.
body
FACTS AND FINDINGS:
The CIA is for the design and construction to replace City waterlines and fiber optic utilities on or near the Center Street bridge over the Willamette River. The work will replace the existing waterline on the bridge and relocate facilities in ODOT right-of-way on both sides of the bridge that conflict with the bridge construction. Design work is in progress and construction is scheduled to begin in Spring 2026.
The City will deposit the total estimated costs of $7,000,000 in a Local Government Investment Pool account and actual costs will be reconciled upon completion of the project. The terms of the CIA required $524,800 for design costs to be deposited upon execution of the agreement with the remaining $6,475,200 due prior to award of the construction contract. Since execution of the CIA, ODOT has identified a need to pre-procure waterline materials prior to the construction contract due to anticipated materials lead times. The City has agreed to an advance deposit of $1,300,000 upon execution of the Amendment to the CIA to allow ODOT to proceed with the pre-procurement of waterline materials. The remaining $5,175,200 deposit will be due prior to award of the construction contract. This amendment does not revise the total amount of required deposits of $7,000,000.
These improvements are fully funded with Utility Rate funds programmed in the current City budget.
BACKGROUND:
ODOT’s project to retrofit the Center Street bridge over the Willamette River to ensure it remains serviceable following a major seismic event will be completed in two phases. Phase 1 includes retrofitting the sections of the bridge over the Willamette River and east of the river. ODOT is scheduled to begin construction of Phase 1 in 2026. The estimated project cost for Phase 1 is between $130 million and $200 million. Phase 2 will include retrofitting or replacing the section of the bridge west of the Willamette River and is currently unfunded.
Allen Dannen, PE,
City Engineer
Attachments:
1. Cooperative Improvement (Utility) Agreement: OR22: Center Street Bridge Waterline Replacement - Bridge No. 00123K; Key Number: 21705
2. Amendment to Cooperative Improvement (Utility) Agreement: OR22: Center Street Bridge Waterline Replacement - Bridge No. 00123K; Key Number: 21705