TAXPAYERS RESEARCH COUNCIL Y OUR T AX A DVOCATE S INCE 1937

N EWS AND N OTES

March 23, 2012

T HE W RONG C HANGE ?
Last week, the city of Sioux City announced a reshuffling of staff in the Public Works Department. This adjustment shows that the old adage of The more things change, the more they stay the same, can still be applied in todays world. An argument can be made this adjustment in staff was not the right direction needed in city hall. About a year and half ago, the city council approved removing the privatization of the operating of the waste water treatment plant. This created a new Utilities Department which oversaw the operations of water, sewer and storm water which removed these responsibilities from the Public Works Department. As a result to the announced reshuffling in staff, the city engineer is now senior civil engineer. The citys Public Work Director is now the city engineer. The department head of the Utilities Department was combined with the public works position. The separation of duties between the Public Works Department and the utilities department which took place a year and half ago has now ended. This brings the internal structure of city hall full circle. This change will not solve an underlying issue of a needed change in the culture of city hall. In July of 2010, the Department of Natural Resources (DNR) began an investigation into several state law violations in Sioux City. On February 13, 2012, the Sioux City, City Council approved three administrative orders with the Iowa DNR and paid a total of $30,000 for administrative penalties. The first administrative order is Sioux Citys failure to have the proper state permits for water supply construction. Since 2007, the city failed to apply for 46 water supply construction permits. A permit requires quarterly reports on a water supply construction project and a checklist of tasks to ensure proper construction of the citys water supply. This administrative order also states on August 31, 2011 the Iowa DNR sent a notice of violation to Sioux City, for failing to have approved permits for two water supply construction projects and was told to stop current construction on the Pierce Street and Fairmont Street projects. The Iowa DNR did not approve the permits, because the city failed to apply for the permits. The city did not stop construction of the Pierce Street and Fairmont Street projects and they did not apply for the permits after the notice of violation from Iowa DNR. The Sioux City, City Council agreed the city had failed to follow state law on this issue and paid the administrative fine at the state law maximum of $10,000. The second administrative order is Sioux Citys failure to have the proper state permits for waste water construction. Since 2007, the city failed to apply for 40 waste water construction permits. A permit requires quarterly reports on a waste water construction project and a checklist of tasks to ensure proper construction of the citys waste water. The second administrative order also states on August 31, 2011 the Iowa DNR sent a notice of violation to Sioux City, for failing to have approved permits for several waste water projects and was told to stop construction on the Wesley Way, Pierce Street, Fairmont Street and Nebraska Street projects. The Iowa DNR did not approve the permits, because the city failed to apply for the permits. The city did not stop construction of the Wesley Way, Pierce Street, Fairmont Street and Nebraska Street projects and they did not apply for the permits after the notice of violation from the Iowa DNR. The Sioux City, City Council agreed the city had failed to follow state law on this issue and paid the administrative fine at the state law maximum of $10,000. The third administrative order states Sioux City was approved to have a National Pollutant Discharge Elimination System (NPDES) permit in 2004. The NPDES permit is required by the Federal Clean Water Act to protect water quality and storm water management. In 2006, 2008 and 2010, the Iowa DNR gave notice to Sioux City for failing to perform three duties the permit requires. The city did not conduct quarterly inspections of construction sites which disturb one acre or more of ground. The city did not implement a program which detects illicit discharges into the storm sewer. The city did not review their storm water pollution prevention plans. The Iowa DNR states the citys failure to follow these permit requirements would have likely prevented three developers within the Sioux City from creating documented environmental harm of unpermitted discharge of water leading to problems of erosion and sediment control.

The NPDES permit also requires a yearly report to be submitted by September 30th. The Iowa DNR states Sioux City submitted this report late in 2006, 2008, 2009, 2010 and 2011. The Sioux City, City Council agreed the city had failed to follow the law as stated in the third administrative order and paid the administrative fine at the state law maximum of $10,000. The TRC researched these issues and contacted the Iowa DNR to fully understand the context and gravity of these violations. Environmental Specialist Julie Sievers with the Iowa DNR, has over 14 years of experience, stated that Sioux City appears to be the only known city in Iowa which has failed to have the proper permits for water supply and waste water supply construction during her career. This demonstrates the requirements of having the proper Iowa DNR permits are known throughout cities in Iowa. The TRC also contacted Bill Ehm who heads the Environmental Protection Division within the Iowa DNR. Mr. Ehm stated that Sioux Citys initial response to the administrative orders were as if they were not serious and important items. Mr. Ehm and several members of his staff went to Sioux City to visit with the Sioux City, City Council and informed the council that if they did not accept the administrative orders and fines the State Attorney General was willing to take the city to court and implement fines totaling $300,000. The fact that the State Attorney General was willing to take the case was the turning point in city hall. Mr. Ehm also talked about the culture in Sioux Citys City Hall and how they seemed to believe the rules and regulations other cities in Iowa follow, did not necessarily apply to them. This culture within Sioux Citys City Hall must change. After a discussion with city officials, they recognize a cultural change must take place. The Taxpayers Research Council will continue to monitor and review the situation.