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Home My WebLink About05.d. Review proposed pilot Septic-to-Sewer Financing Program and discuss modifying the policy on private sewer laterals Page 1 of 6 Item 5.d. CENTRAL SAN October 12, 2020 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW PROPOSED PILOT SEPTIC-TO-SEWER FINANCING PROGRAM AND DISCUSS MODIFYING THE POLICYON PRIVATE SEWER LATERALS Staff will review the following presentation which includes: (1)A summary of the proposed Septic-to-Sewer (S2S) Financing Program which was presented to the Board on April 16, 2020 and chosen to be deferred; and (2) Options for a private sewer lateral policy which were presented to the Board on October 20, 2016. This presentation will propose options to facilitate a Board discussion on developing a pilot program for financing the S2S and/or the replacement of private sewer laterals, as requested at the September 18, 2020 Board meeting. Strategic Plan Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service GOAL THREE: Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management GOAL FIVE:Infrastructure Reliability Strategy 3—Protect personnel and assets from threats and emergencies ATTACHMENTS: 1. Presentation October 12, 2020 REEP Committee Meeting Agenda Packet- Page 93 of 100 Page 2 of 6 w� LATERAL POLICY DISCUSSION Danea Gemmell Planning & Development Services Division Manager October 12, 2020 Real Estate, Environmental & Planning Committee 1 TYPICAL SEWER LATERAL plumbing TYPICAL drains Into sewer lateral SEWER CONNECTION ce anout cleanout sidewalk / street upper la t lower lateral WLsaap (PSL y public sawrar main Image from East Bay Regional Private Sewer Lateral Program website CFNTPAISAN October 12, 2020 REEP Committee Meeting Agenda Packet- Page 94 of 100 1 Page 3 of 6 SEPTIC-TO-SEWER (S2S) CONVERSION FINANCING PROGRAM • April 16, 2020 Board meeting for consideration and deferred until a future date due to Covid-19 Quarantine. • Discussion included whether consideration of a lateral financing program should be included. • September 1, 2020 Engineering & Operations Committee requested S2S to come back to the Board as a future item. • September 18, 2020 Board meeting request for future agenda items to bring a lateral financing program similar to S2S financing program. CENTPAL SAN 13 S2S FINANCING PROGRAM DETAILS • Approximately 200 Single Family Residences on septic with existing sewer main in close proximity • Total project costs estimated at $6.9 million • Average year of home construction: 1959 • Average project cost: $39,124 • Maximum project cost estimated: $87,132 • Propose $0.5 million in Fiscal Year (FY) 2020-21 in Capital Improvement Budget (CIB) on first come, first served basis with option for additional funds in FY 2021-22 l4 CFNTPAI SAN October 12, 2020 REEP Committee Meeting Agenda Packet- Page 95 of 100 2 Page 4 of 6 PROPOSED S2S FINANCING PROGRAM • Approve a new Capital Project Program for FY 2020-21 to help finance S2S program • $500,000 per year funding for first two years of pilot program • Financing terms: • Financing cap of$50,000 per customer; • 15 years with due on sale clause; • Annual rate adjustment for Local Agency Investment Fund (LAIF) + 1% to encourage participation; and • Maximum rate of 6%. • Customer provides three contractor proposals and signs a promissory note which will be secured by the parcel I5 HISTORICAL PERMIT COUNTER ACTIVITY Septic Conversion Lateral Replacement Permits Pipe-bursting Permits 33 505 27 396 38 386 28 403 61 506 17 284 *Partial Year:January through September CFNTPAISAN 16 October 12, 2020 REEP Committee Meeting Agenda Packet- Page 96 of 100 3 Page 5 of 6 CURRENT DISTRICT CODE • 9.10.040 - Ownership, maintenance and connection of side sewers. • Aside sewer is a private facility.The property owner shall be responsible for constructing repairing and maintaining the entire side sewer between the building and the public sewer(including both the lateral and building sewers,and the tap,saddle or wye connection fitting at the public main sewer).The District shall not be financially responsible for any side sewer construction, operation, maintenance, repair,abandonment or other costs whatsoever,except where the District itself or its contractor reconstructs or realigns the public sewer,thereby necessitating the reconnection of private side sewers to the public sewer. • (Ord.253§1(Exh.A(part)),2008) • 9.10.050 - Standards for construction and testing of side sewers. • Side sewers shall be constructed and maintained in conformance with applicable standards and regulations set forth in standard specifications,this code and such other statutes and regulations as may apply at the time of construction or repair.The property owner shall obtain a District permit for such side sewer construction or repair,and the side sewer shall be subject to inspection and testing to ensure that proper materials and methods were used for the construction or repair and that the resulting side sewer is leak-free.Side sewers that fail the leakage test shall be repaired or replaced at property owner's expense so as to pass the leakage test. • (Ord.253§1(Exh.A(part)),2008) CENTRAL SAN CONSIDERED CHANGING POLICY ON PRIVATE SEWER LATERALS IN OCTOBER 2016 CENTRAL SAN'S CURRENT APPROACH TO PRIVATE SEWER LATERALS • Property owner responsible for upper and lower lateral • On a project-by-project basis, Central San offers property owners the opportunity to work with a Central San contractor to replace the lateral — paid for by the property owner directly to the contractor *CFNTPAI SAN$ October 12, 2020 REEP Committee Meeting Agenda Packet- Page 97 of 100 4 Page 6 of 6 OPTIONS FOR CONSIDERATION PRIVATE LATERAL PROGRAM POLICY • Option A: Maintain current code(private sewer lateral at property owner's responsibility) • Option B: Implement ordinance requiring lateral inspection, repair, and replacement upon: ■ sale of property,and/or ■ major renovation,and/or ■ change in water meter size • Option C: Provide lateral rebate program • Option D:Take ownership or maintain lower lateral Not Recommended • Option E:Take ownership or maintain upper and lower lateral Not Recommended • Option F:Offer lateral insurance program via third party Contra Costa Water District offers to its customers • Option G:Offer lateral financing program • Option H:Conduct a pilot replacement program in higher inflow and infiltration area • Option I: Maintain existing code but consider including lateral replacement unit bid price in renovation projects for optional customer participation CFNTPAt SAN QUESTIONS CFNTPAt SAN October 12, 2020 REEP Committee Meeting Agenda Packet- Page 98 of 100 5