Why Is City of Dixon Spending More Than $28 Million on Sewer Upgrades?

From the City of Dixon: FAQ Regarding the City of Dixon’s Planned Sewer Upgrades.

Why is the City of Dixon spending more than $28 million on sewer upgrades? 

The City is upgrading its sewer treatment facility in order to comply with a Cease and Desist Order by the Regional Water Quality Control Board (“Regional Board”). 

What is a “Cease and Desist Order”? 

Cease and Desist Orders provide the means through which the Regional Board enforces water quality standards at the local level related to wastewater. Failure of the City to comply with the Cease and Desist Order will lead the City and ratepayers to being fined by the Regional Board and potentially having City facilities taken over and rates imposed by the State. 

What water quality issues are the State requiring the City of Dixon to fix? 

Infiltration of salt into the City’s groundwater system is the primary issue of concern, due to the fact that groundwater provides the sole source of the City’s domestic water supply. The presence of boron is also increasing, which requires more advanced treatment methods. 

Are there other, less expensive options for complying with the Cease and Desist Order? 

The Cease and Desist Order required the City to evaluate a range of options for reducing salt buildup. For example, the City adopted a buyback program for residential water softeners that use sodium chloride, to reduce salt concentrations in the City’s wastewater. Reductions in salt concentrations were deemed insufficient to bring the City into compliance with the Cease and Desist Order. As a result, the City was required to prepare a Facilities Plan, in which the City evaluated a range of options to upgrade the City’s treatment capacity. After reviewing the alternatives in detail, the Facilities Plan determined that the current project, to implement activated sludge treatment, provides the most cost-effective, best value option. As required under State law, the Regional Board concurred in finding that activated sludge treatment provided the most cost-effective treatment option. 

What is activated sludge treatment? 

Activated sludge treatment is a commonly used process in which bacteria are used to process wastewater in tanks and lined settling ponds. Activated sludge treatment will prevent salt buildup that occurs from evaporation in the City’s current settling ponds. Activated sludge treatment is also more effective at removing salt, boron, nitrates and other pollutants. 

What will happen if the City’s recently adopted sewer rates are reduced or repealed? 

First, it is not clear that it would be lawful to repeal or rescind the adopted sewer rates. If the City’s sewer rates are repealed or rescinded, the City will still be required to address the Cease and Desist Order and find a new funding source for the improvements. This would delay the City’s compliance with the Cease and Desist Order, potentially subject the City and ratepayers to fines, and ultimately cost the City more money over time. Further, the City could lose control of the project and have the final wastewater solution and rate structure imposed by the State. 

How long has this rate increase been considered? 

The City initiated the rate increase in 2012, after alternative methods for complying with the Cease and Desist Order were deemed insufficient. The purpose of the rate increase is to finance upgrades to the City’s sewer treatment facility in compliance with the Cease and Desist Order. 

Were public meetings held on the rate increase?

Yes. Numerous public meetings have been held to discuss the rate increase. In November of 2013, the City Council conditionally adopted the sewer rate increase, subject to validation proceedings required by Proposition 218. The City Council further discussed the sewer rates at public meetings between February and April of 2014. The rates were officially adopted by the City Council at its regular public meeting on April 22, 2014. 

Did the rate increase go through the Proposition 218 process?

Yes. The City initiated Proposition 218 proceedings by mailing notices to City residents in December of 2013. The City held validation proceedings in February of 2014, where each City resident had the opportunity to protest the proposed sewer rates. A majority of City residents did not file protest to the new rates with the City and the revised sewer rates were adopted by resolution in April 2014 by the City Council.

Why was the referendum not put on the ballot and are City residents being denied the right to vote? 

City residents are not being denied the right to vote. The City Clerk found fatal flaws in the referendum petition challenging the City’s sewer rates. In addition, the referendum power does not apply to the City’s adoption of sewer rates, as the rates were adopted in response to regulatory requirements imposed by the Regional Board. The referendum power also does not apply to administrative acts of the City Council, such as the pledge of sewer enterprise funds to repay the SRF loan. Taxpayers are not being denied the right to vote where even the City Council does not have authority to repeal rates or take other actions that would cause the violation of the Cease and Desist Order. 

Can the rate increase be repealed by initiative? 

The initiative power does not apply where the City adopted sewer rates to satisfy the regulatory requirements of the Regional Board or where the City Council is performing administrative acts in furtherance of the City’s business. Further, the initiative power cannot be used to reduce rates such that the City would be operating the sewer enterprise fund at a deficit. 

I’m not happy, who can I contact to voice my displeasure? 

Comments regarding the Cease and Desist Order may be directed to the Central Valley Regional Water Quality Control Board, by submitting written comments to their Sacramento office located at: 11020 Sun Center Drive, Suite 200, Rancho Cordova, CA 95670-6114. 

For more info, go to the city's web site here.