Solvang gives timeline and cost estimate for wastewater plant upgrade; regulatory hurdles remain
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Summary
City utility staff presented a wastewater treatment plant update, estimating a roughly $15.9 million project with a target to complete design in 2025, advertise construction in early 2026 and finish construction by 2028.
City utility staff delivered a progress report on the wastewater treatment plant project at the Jan. 13 Solvang City Council meeting, identifying funding, design and regulatory steps ahead and noting an estimated total project cost of roughly $15.9 million.
Utility Director Jose Acosta told the council staff has reengaged design consultant Corolla Engineers to complete 30/70/90/100 percent design milestones and expects to have 100 percent plans and specifications by the end of 2025. If the schedule holds, staff anticipates releasing a construction RFP in Q1 2026, awarding a contract in mid‑2026, and reaching project completion and council acceptance in mid‑2028. Acosta said the construction schedule assumes parallel operation of the existing plant during construction and includes decommissioning elements of the old facility.
On funding, staff said they are pursuing a mix of financing and possible grants. The U.S. Department of Agriculture (USDA) has been engaged on PER/NEPA/CEQA resubmittal work; USDA previously indicated potential funding but staff said formal approval and any financial commitment remain pending. Council and staff discussed continued grant pursuit, congressional earmark outreach and options for loans or bonds if grants are not secured.
Acosta flagged regulatory uncertainty as a major program risk. The Regional Water Quality Control Board has imposed stringent limits for sodium, chloride and total dissolved solids (TDS) across the Central Coast. Options under discussion include wellhead treatment for source water, reverse‑osmosis (RO) at the wastewater plant (which raises brine disposal and cost issues), intake‑credit arguments, or a basin plan amendment. Staff said continuing data collection (including upstream well sampling) and discussion with regional board staff will inform permit negotiations and potential relaxation or re‑interpretation of limits via administrative pathways.
Councilors asked about timing and cost implications; staff said the PER approval by USDA would be necessary to advance firm financing and that grant possibilities will be pursued in parallel. The council requested regular updates and a detailed fiscal review of water and wastewater funds as the project advances.
If the plan proceeds under the current schedule, residents can expect construction activity in 2026–2028 and incremental rate or debt-service impacts as financing is finalized. Staff emphasized outreach and regulatory coordination will continue over the coming year.
