Presented to the Drinking Water Board
January 12, 2021

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DRINKING WATER BOARD PACKET

Approval of the Sandy City Stipulated Consent Order

BACKGROUND

In February 2019 an excessive amount of hydrofluorosilicic acid (HFSA) was released into Sandy City’s distribution system from the Paradise Valley Well fluoride facility. On February 7, 2019, Sandy City discovered the HFSA release after receiving complaints of bad taste and illness reports from water users. The primary maximum contaminant level (MCL) in drinking water is 4 mg/L for fluoride (R309-200-5(9)). Fluoride also has a secondary MCL at 2 mg/L (R309-200-6),which is associated  with a public notice requirement (R309-220(5)). A water sample collected in Sandy City’s distribution   system showed a fluoride level of 151.5 mg/L, exceeding the primary MCL of 4 mg/L.

Initially, the Division of Drinking Water (Division) issued an Administrative Order (AO) to
Sandy City on March 4, 2019, for the fluoride overfeed incident. The Division issued an
amended AO on February 11, 2020. In December 2020, the Division and Sandy City began discussion to find an enforcement solution to avoid further time and money expenditures related to the legal adjudication of the amended AO. The proposed solution is to enter into a stipulated consent order, which will replace the existing amended AO. This proposed stipulated consent order requires review and approval by the Drinking Water Board per state statute 19-4- 104(1)(c)(vii) because the total agreed amount is greater than $25,000.

Enclosed with the board packet are the following documents:

1. The Stipulation and Consent Order signed by Sandy City;
2. The Division’s Statement of Basis explaining background information and rationales; and
3. Penalty and cost calculation tables showing two amounts to be paid by Sandy City: (1) a penalty of $20,000 associated with violations and (2) an administrative cost recovery of $17,200.

Division Interim Director, Ying-Ying Macauley, and Utah Assistant Attorney General, Bret
Randall, will present the Stipulation and Consent Order for the Board’s approval. Sandy City staff will  be present at the meeting to answer questions or provide clarifying feedback as needed.

DIVISION STAFF/DIRECTOR RECOMMENDATION

The Division recommends that the Board approves the proposed Sandy City Stipulation and Consent  Order, which will replace the existing Amended Administrative Order.

In the Matter of: Sandy City Water System

STIPULATION AND CONSENT ORDER Docket No. UTQH18028-2019-01-NOVO

I. JURISDICTION AND PARTIES

I. This Stipulation and Consent Order (‘·SCO’.) is made and entered into pursuant to the
authority vested in the Director of the Division of Drinking Water under the Safe
Drinking Water Act (the .. Act'”), Utah Code§ 19-4-10 I, et seq. More specifically, the
Director has jurisdiction to compromise and settle claims for administrative penalties
pursuant to Utah Code§ 19-4-109(3) and to issue administrative orders pursuant to
Utah Code§ 19-4-106(2)(d)(iii).

2. This SCO is made and entered into by the Director and Sandy City, a municipality
and political subdivision of the State of Utah.

3. Because this SCO will result in a total payment in excess of $25,000, the parties have
determined that it would be appropriate to present this SCO to the Drinking Water
Board for approval or disapproval, pursuant to Utah Code § 19-4-104( I )(c)(vii).

II. FINDINGS AND CONCLUSIONS

4. Sandy City is a ·’person” as defined in Utah Code § 19-1-103( 4). Sandy City operates
a –public water system·· (the ··System··) within the meaning of Utah Code§ 19-4-
102(8) and is a –supplier” within the meaning of Utah Code § 19-4-102( I 0). Sandy
City is subject to all applicable provisions of the Act and the Utah Public Drinking
Water Rules promulgated by the Board pursuant to the Act.

5. The System is a community type water system serving approximately I 00,000
persons. On February 5, 2019. a chemical overfeed event occurred that resulted in the
accidental release of hydrotluorosilicic acid into a portion of the System (the “Incident”).

6. On March 4, 2019, the Director signed an Issuance of Violations and Administrative
Order (“‘NOY I AO”) in the above-referenced matter relating to the Incident. On May
29, 2019, Sandy City ft led a timely Request for Agency Action (‘”RF AA'”) to initiate
an adjudication of the NOV/ AO pursuant to Utah Code § 19-1-30 I and Utah Adm in.
Code R305- 7 (the .. Adjudication .. ). On August 14, 2019, Sandy City filed an
Amended Request for Agency Action. Pursuant to order of the Administrative Law
Judge in the Adjudication, on February 11, 2020, the Director issued an Amended
Notice of Violation and Administrative Order (“ANOY/AO’.). Pursuant to Rule 15
of the Utah Rules of Civil Procedure, the ANOY/AO relates back to March 4, 2019.
However, the ANOY/AO did not alter the Order elements of the NOY/AO. On
February 24, 2020, Sandy City filed a Second Amended Request for Agency Action.

7. At all times since the date of issuance of the NOV/AO, Sandy City has been in full or
substantial compliance with the NOV/AO and the ANOV/AO. As of the Effective
Date, Sandy City has fulfilled all order requirements of the NOV/AO and
ANOV I AO, except that the following requirements (the “Continuing AO
Requirements'”) are ongoing, until notified by the Director:
a. Item #5: Sandy City must continue to perform monitoring for lead and copper at
an increased frequency (quarterly), until a reasonable date mutually agreed to by
the parties.
b. Item #8: Sandy City must complete its corrosion control study (currently in
progress and on schedule).

8. As to ANOV /AO Item# 18, if Sandy City desires to utilize the Paradise Valley Well
fluoridation facility in the future, it is required to obtain a new operating permit from
the Director. As a result, this item fa! Is outside the scope of this SCO.

9. ANOV/AO Items #19 and #20 relate to hypothetical, future administrative orders
that the Director may issue. Any such future administrative orders fall outside the
scope of this SCO and would be addressed through independent procedures.

III. STIPULATION AND CONSENT ORDER

10. The parties now wish to fully resolve the NOV/AO and the ANOV/AO, except for the
Continuing AO Requirements, without further administrative or judicial proceedings.

11. In full settlement of the violations alleged and the AO requirements asse1ted in the
NOV/AO and the A NOV/AO, except for the Continuing AO Requirements, Sandy City
shall pay (i) an administrative penalty in the amount of $20,000; and (ii) administrative
cost reimbursement in the amount of $17,200.

12. Within 30 days of the Effective Date (as defined below), Sandy City agrees as follows:
a. Sandy City shall pay a penalty in the sum of $20,000, by check made payable to the
Division of Drinking Water. delivered or mailed to Director, Division of Drinking
Water, Depa11ment of Environmental Quality. P.O. Box 144880. Salt Lake City, Utah
841 l 4-4880; and
b. Sandy City shall pay the sum of $17,200 for administrative costs by check made
payable to the Division of Drinking Water, delivered or mailed to Director, Division
of Drinking Water. Department of Environmental Quality, P.O. Box 144880. Salt
Lake City. Utah 84114-4880.

IV. EFFECT OF CONSENT ORDER; EFFECTIVE DATE

13. The Director and Sandy City recognize that this SCO has been negotiated in good
faith and that by entering into this SCO, Sandy City does not admit, and retains the
right to controvert in any subsequent proceedings other than proceedings to
implement or enforce this SCO, the validity of the matters addressed in this SCO.
Sandy City agrees to comply with and be bound by the terms of this SCO and further
agrees that it will not contest the basis or validity of this SCO or its terms.

14. Except as specifically provided in this SCO. this SCO resolves and supersedes the
NOY/AO and the ANOY/AO and releases Sandy City from any liability and claims
under the authority of the Act for administrative or civil penalties that may be sought by
the Director. or past administrative or other response costs that may have been incurred
by the Director, arising from the matters addressed in this SCO. Nothing in this SCO
shall limit the authority of the Director to take. direct, or order all actions deemed
necessary. in connection with any future violations of the Act, or the applicable Rules, to
protect public health and welfare. Further. nothing in this SCO shall prevent the Director
from seeking legal or equitable relief to enforce the terms of this SCO. including
enforcement of the Continuing AO Requirements, or from taking other legal or equitable
action as deemed appropriate and necessary in connection with any future violations of
the Act. Further, nothing in this SSA shall prevent or limit Sandy City from pursuing any
indemnification or other claims it may have against other entities or persons arising from
or related to the Incident. the NOY/AO or the ANOV/AO. and Sandy City reserves all
such rights.

15. As of the Effective Date, this SCO shall be a final administrative order subject to the civil enforcement provisions of Utah Code § 63G-4-50 I and other applicable law, including Utah Code§ 19-4-113.

16. The Effective Date shall be 30 days from the date that this SCO is executed by the Director.

17. The parties agree to tile a Joint Stipulated Motion to Dismiss in the Adjudication within ten (10) days of the Effective Date based on the matters addressed in the Adjudication having been settled pursuant to this SCO. Each party agrees to bear their own attorney’s fees and costs.

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*See the full 98 page Drinking Water Packet here in pdf