http://www.lodinews.com/articles/2010/01/05/news/3_wastewater_100105.txt

By Maggie Creamer

Lodi News-Sentinel Staff Writer

Wednesday, January 6, 2010 4:55 PM PST

Since 2005, Galt ratepayers have been paying an additional fee on their wastewater bills to pay for state-mandated upgrades. With the arrival of construction trailers at the plant Monday, contractors are ready to finish construction on the $23 million in upgrades.

The state-mandated improvements will add another level to the treatment process by running the water through cloth filters and using ultraviolet lights to reduce the number of bacteria in the water.

The California State Water Resources Control Board is requiring the upgrades at wastewater plants throughout the state when it issues new permits. The city of Lodi has already had to make the upgrades, which cost $40 million.

For small cities like Lodi and Galt, Galt Public Works Director Gregg Halladay said the cost has to be passed down to the ratepayers.

"It's crippling for small communities to have to deal with the regulations," he said. "It's not that the regulations aren't good, but there is little concern about cost for the community or ratepayers."

Galt planned for the upgrades by collecting an additional $10 fee from its residents staring in 2005, and then raising that amount to $25 in 2007.

Halladay said the city was waiting to start construction until it had a concrete understanding of state requirements and secured a State Revolving Fund loan. The city will borrow $16.5 million from the state program, which has an interest rate of 2.5 percent, Halladay said.

The rest of the $23 million will be paid for with about $6 million already collected from Galt residents and $750,000 in federal funds the city received through Rep. Dan Lungren, R-Gold River, Halladay said.

The city's permit requires the upgrades be completed by May 2010, or it will begin to face fines.

The upgrades are related to the wastewater discharged to Laguna Creek. During the summer, the city stores the water instead of releasing it to the creek. Because it does not release the water after May, Halladay said the city will have until November to finish the construction before facing fines.

He expects construction to be complete in late November or early December, and said the city will work with the Central Valley Regional Water Quality Control Board to ensure the city does not release water that could result in fines, he said.

Some of the upgrades on the plant have already been completed. Since 2000, the city received $408,000 in fines, mainly because the treated wastewater passed through a reservoir and picked up contamination there, Halladay said. When it entered Laguna Creek, the water then reached unacceptable levels. The city constructed a bypass to carry the water straight from the plant to the creek, so the city will not receive as many fines, he said.

"I'm not going to say it will be perfect going forward because it's not an exact process," he said.

At tonight's meeting, the Galt City Council will decide on awarding a $1.22 million contract to Psomas Engineering, so it can manage the construction of the plant.

The council will also consider a $950,160 contract for West Yost Associates to make sure the construction matches the blueprints that West Yost already designed. The company will design and install the controls to operate the plant.

Galt is also working with the Regional Water Quality Control Board on the second stage of improvements that will cost about $20 million. Halladay said the state will most likely give the city a date when these improvements need to be complete.

Because the improvements could result in the plant expanding, Halladay said it would be preferable to wait until Galt's population increased, so new development could share some of the burden for expenses.

Contact reporter Maggie Creamer at maggiec@lodinews.com or read her blog at www.lodinews.com/blogs/citybuzz.