The city was charged with a felony count of illegally discharging radiological chemicals, according to court documents. The city was ordered to pay a $50,000 fine and given five years' probation, both of which have been satisfied. The city also paid a $30,000 Missouri DNR fine which was satisfied in full. In September 2012, the city was released early from probation by the United States District Court for the Western District of Missouri.

The city of Lake Ozark is nearing completion of an upgrade to its wastewater sewer system to satisfy a court-ordered consent judgment issued after a sewer spill into the lake a decade ago.
The board of aldermen recently authorized removal of the balance of the sewer improvement project from the State Revolving Fund, a federally capitalized loan program for water and waste water infrastructure projects. City officials several years ago embarked on an agreement through the SRF to secure funds to make the mandated sewer system upgrades after the 2007 sewer spill. Phase 1 of the sewer upgrade was funded by a grant and loan from the SRF and is complete, and the city is nearing completion of Phase 2 — without the help of state or federal funds.
"Why borrow money and incur long-term debt when we can pay cash for it?" City Administrator Dave Van Dee told the board recently. "I'm suggesting that we notify the DNR that we're withdrawing from the SRF project and pay for this out of the capitol improvement fund which has in excess of $1.8 million."
The sewage spill was reported in September 2007 after a lift station failed and allowed between 10,000 and 15,000 gallons of untreated waste to flow into Lake of the Ozarks. The spill was investigated by the Missouri Department of Natural Resources and the U.S. Environmental Protection Agency. DNR notified the city of the bypass and subsequent bypasses. The city responded and stopped the flow, but conducted no cleanup and provided no written notification of the bypass.
The city was charged with a felony count of illegally discharging radiological chemicals, according to court documents. The city was ordered to pay a $50,000 fine and given five years' probation, both of which have been satisfied. The city also paid a $30,000 Missouri DNR fine which was satisfied in full. In September 2012, the city was released early from probation by the United States District Court for the Western District of Missouri.
Also as part of the consent judgment, the city was ordered to make certain improvements to its sewer system.
"We had an opportunity that presented itself to do the gravity sewer lining for a very good price by a reputable firm and we took advantage of it," he explained. "It was a matter of timing and opportunity and an ability to do it using cash, and that has helped us financially stabilize our utility fund."
McClure Engineering was originally contracted to conduct a mandated sanitary sewer evaluation study (SSES), and to design and complete the improvements. As the city's finances improved in recent years, city officials were able to speed up the project at a savings to the city and without having to borrow SRF funds for Phase 2
The city upgraded three of its lift stations with its own personnel at a cost savings, but does not have the means to take on the fourth lift station.
"Once the Twin Oaks Lift Station is done, which is the last of the four, we will have met all of the obligations under the consent judgment, and we'll approach the DNR and AG's (Attorney General) office to secure a release from the consent judgment," the city administrator explained. "We didn't think we could accomplish this quite this fast."
Estimated cost of the mandated improvements was $2.4 million, but Van Dee says the final cost will be far less. The city's sewer rate was increased and voters approved a one-quarter cent hike in sales tax a few years ago to help pay for the upgrades.