GALT, CA (MPG) - Galt City Council agreed on Sept. 3 to a $1.5 million contract for initial engineering and exploratory work on deepening a city well, a decision that was delayed after an objection from a regional groundwater regulator.

The contract with consulting firm Wood Rodgers includes about $500,000 for engineering work and nearly $980,000 for the drilling of a test well. There is additionally a $150,000 contingency available for unforeseen costs.

The goal is to deepen a well off of Carillion Boulevard. The well broke down several months ago and city staff have said drilling deeper would grant access to cleaner water that requires less treatment as well as giving the city flexibility in water sources.

“This project is integral to provide for redundancy in the city’s water system. There is no redundancy should one of our four wells fail,” Public Works Director John Griffin said.

All active wells contribute to the citywide water supply.

The item first came to City Council in June but the Cosumnes Groundwater Authority chair criticized the lack of warning for her organization. The groundwater authority is charged with ensuring sustainable groundwater usage by the city of Galt and surrounding irrigation districts.

As a result, City Council delayed its decision and city staff presented the project to the groundwater authority board in August. Several members of the body expressed strong skepticism about the potential to deepen the well without worsening the region’s water situation. The groundwater authority asked for regular updates on the project. Griffin committed to providing those updates.

The groundwater authority did not comment on the item at the Sept. 3 City Council meeting.

If the test well verifies the higher water quality, Griffin said, final design work could start. Work on deepening the well would begin around September next year, with completion in two years.

Councilmember Shawn Farmer commented on the “irony” of growing pressure to reduce water usage while the city is attempting to build more houses but added that new developments do not make the city’s water rates go up.

Griffin later told Farmer that the Carillion well is one of the city’s oldest, having been built in the late 1980s to early ’90s. The city’s active wells are 10 to 15 years old. Griffin said he “would really hope” that no other well breaks down in the near future.

Vice-Mayor Rich Lozano voiced appreciation for staff’s presentation to the groundwater authority.

Answering a question from Mayor Paul Sandhu, Griffin said the city chose Wood Rodgers for the project after reviewing responses to a request for proposals.

“We deemed that Wood Rodgers was the most qualified. … We select who we believe is the team that is best qualified to give us a product that will help us get to the finish line and is the most qualified to perform that work,” Griffin said.

City Council authorized the contract by a 5-0 vote.

During the 2023-34 fiscal year, the city’s investments earned a total of nearly $4 million in interest, city Treasurer Sean Farrell reported, far surpassing any previous year. The earnings are a result of high interest rates set by the Federal Reserve.

Farrell predicted that the city wouldn’t see such a total at the end of the current fiscal year in June 2025, with an interest rate reduction expected in February. He said banks are already pricing in the reduction by lowering the interest they offer on some investment instruments.

While high interest rates benefit the city of Galt, Farrell noted that a reduction will make borrowing cheaper for consumers, such as Galt residents seeking a mortgage.

Farrell described Galt’s housing market as “tight.” In July, 31 houses sold in Galt at a median price of $572,000, Farrell said, and in August, 29 houses sold at a median of $580,000. In both months, the median sale price was above the median asking price.

In other business, City Council approved the appointment of Gabriel Gutierrez to the Measure R Independent Citizens’ Oversight Committee. The committee reviews how Galt Police Department spends revenue from the Measure R sales tax. In his application, Gutierrez said his experience as a civil engineer in public works will help him understand the department’s decisions.