Installation of a generator and turbine at the end of the Albany-Santiam Canal in Albany, now 90 percent complete, is proving to cost more than planned.

The generator and turbine are expected to be ready for operation in October.

Diane Taniguchi-Dennis, Albany's public works director, told the city council Wednesday more money is needed to cover a number of costs incurred building the new power plant that were not anticipated in the original $1.6 million project.

She said $296,600 in extra funding was needed, and the council voted unanimously to approve the release of the funds.

Pacific Power, which will buy power generated by the plant, must be paid for its purchase of transformer enclosures and electrical switches necessary to deliver power safely to the power grid.

The company also will be reimbursed for its engineering design and construction costs.

Because the Calapooia River at the canal's end is eroding behind where the turbine will be located, concrete work is required to shore up and protect the area.

During the work, crews found minor and major leaks from the penstock pipe on the in-take structure upstream, which also must be repaired.

Engineers said funds were needed to create a floating trash barrier to prevent leaves, sticks and other material from entering the intake and damaging equipment.

In other business, the city council on Wednesday:

* Voted 4-1 to reject a re quest by property owners to ask voters to annex and rezone 28.2 acres south of Knox Butte Road and west of Scravel Hill Road. Councilor Bessie Johnson was in favor of putting the request on the ballot.

* Unanimously voted to allow Crabtree Automotive to move its business to 1020 and 1110 Hill St. S.E. The council acted on an apepal of a planning commission decision.

* Voted unanimously to vacate a portion of Linn Avenue N.E. to become part of of Eades Park.

* Appointed Kim Whitley to the Human Relations Commission to replace Anna Anderson, who resigned.