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A PENDING CALIFORNIA STATE REGULATION TO TIGHTEN THE CHROMIUM 6, OR HEXAVALENT CHROMIUM, DRINKING WATER STANDARDS HAS THE CITY OF WATSONVILLE CONCERNED.     IF THE CALIFORNIA DEPARTMENT OF PUBLIC HEALTH REGULATION IS ADOPTED IN THE SPRING,  OFFICIALS SAY IT WOULD COST THE CITY MORE THAN 26 MILLION DOLLARS TO INSTALL A TREATMENT SYSTEM AND 1 POINT 7 MILLION DOLLARS EACH YEAR IN OPERATING COSTS.    THE CITY COUNCIL IS EXPECTED TO CONSIDER A RESOLUTION TODAY (TUES) ASKING THE STATE TO RE-EVALUATE AND OR DELAY IMPLEMENTATION TO GIVE CITIES TIME TO FIND ADDITIONAL FUNDING.   WHILE ALL WELLS USED BY WATSONVILLE MEET THE CURRENT STANDARDS OF 50 PARTS PER BILLION, THE NEW REGULATION SEEKS TO REDUCE CHROMIUM 6  TO 10 PARTS PER BILLION.  THIS WOULD PUT 8 WELLS OUT OF COMPLIANCE.