Madrona Connection project to strengthen water supply on growing east side of Lacey

As the City of Lacey prepares for continued growth on its east side, the Lacey City Council approved a $2.4 million contract for the Madrona Connection to the 337 project. 

The new water main will link the Madrona well field to the 337 pressure zone, increasing the amount of water available to the zone and making it easier for water to move through the system. 

Pacific Civil & Infrastructure of Tacoma secured the project after submitting the lowest of 11 bids received by the city. Council members unanimously approved the contract at a meeting on Tuesday, July 7. 

The $2,418,450.95 contract was well below an engineer’s estimate of $4,070,728.20. The city had budgeted $4.1 million for the project in 2026. 

Interim Public Works Director Vince McGowan told the council the estimate included a contingency for possible nighttime work. As it turns out, the project does not require night work, resulting in a bid below the engineer's projection. 

About 3,300 feet of new 12-inch and 16-inch water main will be installed along Spruce Street SE, 9th Way SE, Pacific Avenue SE and Milbanke Drive SE. New service lines and meters for nearby properties, tree removal, and restoration of landscaping and pavement are also part of the contract. 

McGowan said the new pipeline will support the urban growth area on the east side. 

"The main benefit is helping us meet peak demand across our major sources, so that we're not putting too much strain on different sources," McGowan said. 

Council member Maren Turner asked whether the project addressed a temporary problem or a longer term need.

McGowan said the pipeline is not a stopgap measure and represents a major investment in water service for the east side part of the city. 

Construction timeline 

Construction is scheduled to begin in August 2027. Deputy Mayor Malcolm Miller noted the lead time ran longer than the six months the city typically targets between an award and groundbreaking. 

McGowan said the project's size, its overlap with Washington State Department of Transportation (WSDOT) right-of-way and scheduling conflicts with other major water projects pushed the start date out. Those projects include the Hawks Prairie Reservoir and pH treatment installations at two city water sources. 

The route crosses WSDOT right-of-way and a City of Olympia waterline easement, requiring city staff to secure an amended utility franchise agreement and a formal easement during the design phase. 

The contract requires the contractor to pay prevailing wages and use apprentices from state-approved programs for 15 percent of labor hours, a mandate under state law for contracts exceeding $2 million.