City manager updates council on litigation, FEMA timelines and denied SCADA grant

The City Manager briefed council on litigation and several major infrastructure and grant developments that shape Wheeler's project pipeline.

Litigation: staff reported Botts Marsh LLC v. City of Wheeler remains in mediation with the schedule extended to July 5, 2024; brownfield testing is underway at the site and staff expect a conditional-use application for part of the property. A separate case, Richard Buchanan v. City of Wheeler, remains in discovery through June 10 after a recent 22-category request for production on May 6; staff are assembling responsive records.

Water management plan: the Oregon Water Resources Department informed the city that the jointly filed draft water management and conservation plan (submitted with Manzanita in 2006) cannot be administratively held; OWRD advised the city to either update the plan within 90 days or withdraw and refile within six months. Staff recommended withdrawing and preparing a new plan to meet OAR requirements.

FEMA and Jermaine Creek: FEMA has placed the Jermaine Creek project into EHP review; Janine Mayer (Oregon OEM contact) advised EHP review may take 1–2 years and suggested the project be phased to allow earlier work on design and permitting. Staff said a hazard-mitigation grant application could cover roughly 75% of project costs and that the city would be responsible for roughly $346,750 of matching expenses if awarded; staff would seek state assistance for the remainder.

SCADA grant denied: staff said the Bureau of Reclamation denied a WaterSMART small-scale efficiency grant on the basis that replacing malfunctioning components with like-for-like components is an ineligible use. Staff will research whether switching to a materially different approach (for example, replacing a radio SCADA with a cellular system) would make the project eligible for future rounds or alternative grants.

Next steps: staff will continue work on litigation scheduling, proceed with water-plan resubmission planning as advised, coordinate with Civil West and FEMA on phasing the Jermaine Creek project, and investigate alternative funding for SCADA system upgrades.