THE CITY OF CENTRAL CITY (CITY) OWNS AND OPERATES A WASTE- WATER TREATMENT FACILITY (PLANT) SERVING 1490 HOUSEHOLDS AND A POPULATION OF APPROXIMATELY 3000. SINCE 1977, THE CITY HAS BEEN UNABLE TO MEET THE EFFLUENT LIMITATIONS ON ITS DISCHARGE OF POLLUTANTS TO SURFACE WATERS CONTAINED IN TWO NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMITS ISSUED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA). AS A RESULT, ON AUGUST 8, 1985, EPA ISSUED AN ADMINISTRA- TIVE ORDER TO THE CITY, PLACING IT ON A SCHEDULE TO ACHIEVE PERMIT COMPLIANCE. THE CITY FAILED TO ACHIEVE COMPLIANCE IN ACCORDANCE WITH THIS ORDER. ON FEBRUARY 11, 1988, A SHOW CAUSE MEETING WAS SCHEDULED TO BE HELD WITH THE CITY TO DISCUSS ITS NONCOMPLIANCE AND POSSIBLE EPA ENFORCEMENT ACTIONS. PRIOR TO THE SCHEDULED SHOW CAUSE MEETING, EPA HELD A TELEPHONE CONFERENCE THAT RESULTED IN THE POSTPONE- MENT OF THE SHOW CAUSE MEETING AND THE SUBMITTAL OF RELEVANT INFORMATION BY THE CITY. IT WAS THE CITY'S CONTENTION THAT DELAYS IN THE CONSTRUCTION GRANT PROCESS AND IN THE FARMER'S HOME ADMINISTRATION GRANT PROCESS CAUSED THE CITY TO MISS THE COMPLIANCE DEADLINE. THE CITY HAS HAD AN EPA CONSTRUC- TION GRANT SINCE 1984.