Council approves penalty‑offset project after wastewater permit exceedances

The City Council approved staff’s recommendation to direct a portion of State Water Resources Control Board penalties toward a collection-system rehabilitation project after the city’s wastewater treatment plant recorded multiple permit exceedances. Public Works staff explained that the plant’s dry‑weather average flow is roughly 500,000 gallons per day but that infiltration and storm-related inflow can spike peak flows to approximately 5,000,000 gallons per day, overwhelming treatment capacity and triggering permit violations.

Staff reported the plant exceeded allowable constituent levels on many sampling events; 126 incidents were eligible for the board’s minimum penalty of $3,000 each, producing a theoretical total of about $378,000. Under settlement negotiations, the board allowed some penalty funds to be applied to a project with direct environmental benefit: rehabilitation of roughly 600 feet of collection main adjacent to Sulphur Creek (Crane Avenue/Spring Street area) to reduce inflow and infiltration. The remainder of the penalty would be paid to the Water Board.

Council asked about technical causes (high groundwater, defective pipes), schedule and funding sources. Staff said the work will be funded through a combination of the settlement arrangement and the wastewater rate increase / bond financing already in the capital plan, and that the project timeline aligns with the Water Board settlement deadlines (staff estimated completion by 2027). Council approved the staff resolution by roll call.

Next steps: staff will begin project scoping and procurement to rehabilitate the targeted mains and report progress to the council.