Accept the Bull Run Treatment Projects 2025 Annual Report
TO THE COUNCIL:
In fulfillment of the requirements of Resolution 37309 (Bull Run Watershed filtration plant to treat drinking water), the Portland Water Bureau is submitting this annual report. It highlights the current status of the Bull Run Treatment Projects for filtration and corrosion control, which are necessary to protect public health and comply with federal safe drinking water regulations.
The Bull Run Filtration Projects (Filtration) and the Improved Corrosion Control Treatment (ICCT) Project are needed to comply with the Lead and Copper Rule (LCR) and the Long Term 2 Enhanced Surface Water Treatment Rule (LT2). This report demonstrates that the Water Bureau has met all compliance milestones set by the Oregon Health Authority.
In 2022, the Water Bureau implemented ICCT to help reduce potential lead levels at customers' taps. Throughout fiscal year (FY) 2024–25, the bureau remained in full compliance with the Lead and Copper Rule and continued to see a reduction in lead levels, which resulted in reduced monitoring requirements.
In FY 2024–25, the Water Bureau began construction of the Filtration facility and pipelines after receiving land use approval and permits from Multnomah and Clackamas Counties. Construction was temporarily paused from February to June 2025 because the state Land Use Board of Appeals remanded one item back to Multnomah County. In June 2025, the County's hearings officer re-approved the project's land use permits, allowing construction to resume.
The attached report details additional progress and notable milestones for the Bull Run Treatment Projects. It includes an update on construction and information on extensive land use and outreach efforts, fiscal and cost management, schedule and risk management, and how we use project values to guide our decisions.
Recommends
Priya Dhanapal, Public Works Service Area DCA, recommends Council accepts the Bull Run Treatment Projects 2025 Annual Report.
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
The purpose of this legislation is to allow the City Council to review and accept the 2025 Bull Run Treatment Projects Annual Report, which informs them of the progress made during the 2024–25 fiscal year.
The Water Bureau is responsible for delivering the Bull Run Treatment Projects, which include the Improved Corrosion Control Treatment (ICCT) Project and the Bull Run Filtration Projects (Filtration). These projects will protect public health and bring the City of Portland into compliance with two federal drinking water regulations: the Lead and Copper Rule (LCR) and the Long Term 2 Enhanced Surface Water Treatment Rule (LT2).
The Water Bureau has two compliance agreements with the Oregon Health Authority (OHA) that set project schedules.
- In April 2022, the Water Bureau successfully met the ICCT Project's OHA compliance deadline.
- The final compliance deadline for the Filtration Projects is September 30, 2027. This includes both the planned Bull Run Filtration Facility Project (Filtration Facility) and the Bull Run Filtration Pipelines Project (Filtration Pipelines).
Together, these projects will provide multiple benefits to direct customers of the Water Bureau and to our wholesale customers throughout the region. Benefits include protecting public health, improving water quality, and enhancing the reliability of our water system.
In April 2022, the Water Bureau brought the ICCT online at our Lusted Hill Facility to further reduce potential lead levels at customers' taps. Since then, we have gradually increased the pH and alkalinity of Bull Run water to make it less corrosive to lead and other metals found in some home and building plumbing. The OHA has confirmed that our corrosion control treatment is optimized, bringing the Water Bureau into full compliance with the Environmental Protection Agency's LCR.
Once complete, Filtration will remove Cryptosporidium and enhance the Bull Run water supply's resilience to potential water quality impacts from fires, landslides, large storms, and other future risks.
The Bull Run Treatment Projects Annual Report is one key method the Water Bureau uses to share project progress with both the community and the City Council. The 2025 report is the eighth annual report to Council, with the first submitted in June 2018.
Previous Council and government actions related to the Bull Run Treatment Projects:
- May 2017: OHA approved the Water Bureau's schedule to implement ICCT.
- June 2017: City Council held a work session on the variance revocation and treatment options, including comparative costs.
- August 2017: The Water Bureau provided additional analysis to City Council, and Council approved Resolution 37309 to submit a compliance plan for design and construction of a filtration facility.
- September 2017: City Council authorized the design contract for the ICCT Project (Ordinance 188620).
- December 2017: The Water Bureau signed a bilateral compliance agreement with OHA that requires the filtration facility to be operational by September 30, 2027.
- June 2018: The Water Bureau submitted the first Bull Run Treatment Projects Annual Report to Council.
- August 2018: City Council held a work session on Filtration.
- August 2018: City Council authorized use of the alternative contracting method Construction Manager/General Contractor (CM/GC) in connection with the Filtration Facility Project (Ordinance 189146).
- August 2018: City Council authorized the program management contract for Filtration (Ordinance 189147).
- December 2018: City Council authorized Resolution 37402 choosing the location, technology, capacity, and procurement method for the filtration program.
- June 2019: The Water Bureau submitted the second annual report to Council.
- October 2019: City Council authorized the acquisition of 1.87 acres of real property (Ordinance 189749).
- November 2019: City Council approved Resolution 37460 that set priority values, expectations, and a recommended option to guide the design and implementation of Filtration.
- November 2019: City Council authorized the design contract for the Filtration Facility (Ordinance 189778).
- April 2020: City Council authorized the Water Bureau to acquire certain permanent and temporary property rights necessary for construction of ICCT through negotiation or the exercise of the City's eminent domain authority.
- April 2020: City Council authorized water revenue bonds to finance water system capital improvements and refund water revenue bonds to utilize Water Infrastructure Finance and Innovation Act (WIFIA) financing (Ordinance 189922).
- June 2020: The Water Bureau submitted the third annual report to Council.
- July 2020: Report to Council recommending award of a CM/GC contract and guaranteed maximum price (GMP) for construction of the ICCT Project.
- December 2020: City Council authorized the design contract for the Filtration Pipelines (Ordinance 190242).
- December 2020: City Council authorized use of the alternative contracting method CM/GC in connection with the Filtration Pipelines Project (Ordinance 1900245).
- February 2021: The Water Bureau signed a WIFIA agreement with the Environmental Protection Agency.
- March 2021: City Council authorized purchase of two acres of real property (Ordinance 190322).
- June 2021: The Water Bureau submitted the fourth annual report to Council.
- July 2022: The Water Bureau submitted the fifth annual report to Council.
- December 2022: City Council authorized the Water Bureau to acquire certain permanent and temporary property rights necessary for construction of the Bull Run Filtration Projects through negotiation or the exercise of the City's eminent domain authority (Ordinance 191094).
- June 2023: The Water Bureau submitted the sixth annual report to Council.
- June 2023: Report to Council recommending extension of contract with Brown and Caldwell, Inc., for program management and support.
- June 2023: Report to Council recommending award of a CM/GC contract and GMP1 for construction of the Filtration Facility.
- June 2023: Report to Council recommending award of a CM/GC contract and GMP1 for construction of the Filtration Pipelines.
- July 2023: City Council authorized the Water Bureau to construct the Filtration Facility in two phases with two GMPs (Ordinance 191368).
- July 2023: City Council authorized the Water Bureau to construct the Filtration Pipelines in two phases with two GMPs (Ordinance 191369).
- March 2024: City Council authorized an emergency contract for arborist services (Ordinance 191665).
- April 2024: City Council authorized the Water Bureau to amend Ordinance 191094 to acquire certain permanent and temporary property rights necessary for construction of the Bull Run Filtration Projects through negotiation or the exercise of the City's eminent domain authority (Ordinance 191674).
- April 2024: The Water Bureau submitted the seventh annual report to Council.
- April 2024: Report to Council recommending amendment of CM/GC total contract amount and acceptance of GMP2 for construction of the Filtration Facility.
- April 2024: Report to Council recommending amendment of CM/GC total contract amount and acceptance of GMP2 for construction of the Filtration Pipelines.
- October 2024: Report to Council recommending extension of contract with Stantec Consulting Services, Inc., for design and construction support services for the Bull Run Filtration Projects.
Financial and Budgetary Impacts
The attached Bull Run Treatment Projects 2025 Annual Report to City Council does not create, eliminate, or re-classify any positions now or in the future.
Current program funding for these three projects (ICCT, Filtration Facility, and Filtration Pipelines) is $2,134,000,000. The program funding includes:
- Final costs for the ICCT Project
- Capital costs for the Filtration Facility and Filtration Pipelines
- Other WIFIA-eligible costs, such as indirect and financing costs
- Contingency and allowances for land use conditions of approval and other known and unknown project risk
The GMPs with the CM/GCs for the Filtration Facility and Filtration Pipelines incorporated value engineering and cost-saving proposals. These measures were implemented without sacrificing water quality or resilience goals.
Securing a very low-interest WIFIA loan is another key step the Water Bureau has taken to manage costs while we make these essential long-term investments in the future of the Bull Run water system. Details about this funding have been previously shared on the project website, in fact sheets, through briefings to interested parties, and in response to media requests.
Current program funding is included in the 10-Year Capital Improvement Plan, the FY 2025–26 Budget, and the current rate forecast. Funding for the filtration projects comes from a combination of net proceeds from revenue bond sales, the low-interest EPA WIFIA loan, water sales revenue, and other construction fund revenues, such as system development charges.
Economic and Real Estate Development Impacts
- Planning, design, and construction of the Bull Run Treatment Projects will support 4,700 to 7,500 jobs in Multnomah, Clackamas, and Washington Counties.
- These jobs will support total labor income of $969.9 million, consisting of both employee wages and proprietor income, over the 10-year period.
- Considering direct and secondary impacts, the total economic contribution to the tri-county study area is more than $1.59 billion in output over the 10-year period.
- The pipelines project includes a local distribution main that will serve current Water Bureau customers in the area and four water districts.
- Filtration will improve our ability to consistently deliver high-quality water which our industries and local businesses depend on.
Community Impacts and Community Involvement
There are no new impacts to the community. Since 2017, the Portland Water Bureau has kept the community informed and engaged using various communication tools, including:
- Weekly construction and monthly update e-newsletters
- Utility bill inserts
- The annual water quality report
- Tabling events
- Project presentations
- Project videos
- Social media
In the 2024–25 fiscal year, the project team hosted several in-person and virtual neighbor meetings to provide construction updates and address concerns. Community issues were also addressed through the extensive land use approval process. This annual report includes updates on the mitigation strategies and commitments aimed at reducing the impact of construction on the surrounding community.
100% Renewable Goal
Accepting the annual report does not increase or decrease the City's total energy use, nor does it increase or decrease the City's renewable energy use.
Although the new water filtration facility and pipelines are anticipated to increase the City's total energy usage, the project team is working within several sustainability-oriented frameworks, including the Green Building Policy, LEED, and Envision, to reduce energy needs and use greener energy alternatives where possible.
Both holistic sustainability opportunities and specific design and operational opportunities have been identified to support the City's energy-efficiency goals, when possible, such as designing the Filtration Facility and Filtration Pipelines to continue gravity operations.
Facility process basins and structures are being constructed using low-carbon concrete to help reduce supply-chain greenhouse gas emissions.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.
Document History
Document number: 2025-383
President's referral: Transportation and Infrastructure Committee