Loading...
HomeMy WebLinkAbout8/19/2025 Item 8a, Floyd and Lehman - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: August 19, 2025 TO: Mayor and Council FROM: Aaron Floyd, Utilities Director Prepared By: Chris Lehman, Deputy Director - Wastewater VIA: Whitney McDonald, City Manager SUBJECT: Item 8a. – Sewer Infrastructure Renewal Strategy and Private Sewer Lateral Program Updates Staff received the following questions regarding updates to the City’s Private Sewer Lateral Programs. The questions are below with staff’s response shown in italics: 1) On page 220 of the packet, the staff report describes that in 2019, when the sewer lateral inspection and offset programs were created, there was no requirement put in place to replace or repair laterals upon sale after a damaged lateral was located…the only requirement was the inspection. Instead, the impression is that the rebate program was put in place to incentivize replacement of damaged laterals. Is there any kind of fine or citation if there is a Sanitary Sewer Overflow (SSO) as a result of someone’s damaged lateral? Yes. Notice of Violations (NOVs) and Administrative Citations are issued to a property owner following a Sanitary Sewer Overflow (SSO) caused by an issue with a private sewer lateral. The initial requirement of the NOV is that the private sewer lateral be inspected and that the resulting video inspection be sent to staff to review. After staff evaluate and assign a condition rating to the private sewer lateral, for the majority of enforcement cases related to SSOs, the property owner is required to replace the sewer lateral, which is communicated through an Administrative Citation. City Administrative Citations include a $100 fine (for the first offense). 2) About how many sewer lateral rebates have we been providing each year, and how much money has been spent? Please see Table 1 on the following page. Staff note that all metrics are displayed utilizing the calendar (vs. fiscal) year, and that the total amount dispersed for 2025 includes $20,000 of retroactive rebate payments made following Council adoption of Resolution No. 11517. Also of note, in the fall of 2024, rebates were increased from $2,000 (outside of capacity-constrained areas) and $3,000 (inside capacity- constrained areas) to $4,000 for all single-family property private sewer lateral replacements. Sewer Infrastructure Renewal Strategy and Private Sewer Lateral Program Updates Page 2 Table 1: Private Sewer Lateral Replacement Rebates Year No. of Applicants Amount Dispersed 2019 76 $ 122,000.00 2020 97 $ 229,875.00 2021 71 $ 190,900.00 2022 76 $ 190,000.00 2023 39 $ 99,000.00 2024 29 $ 85,000.00 2025 38 $ 172,000.00 3) Is it more expensive to replace a private sewer lateral for a multi-family housing development than for a single-family residence? Is there any reason we might need to consider a different rebate amount for that type of building? There is a wide range of potential project costs for the replacement of a private sewer lateral. Generally, but not always, replacing the private sewer laterals of a multi-unit dwelling would be more expensive than replacing those tied to a single- family home. There are some exceptions where a single -family residence replacement would cost more than a multi-family replacement. While staff believes that expansion of the existing rebate eligibility criteria to include all property types in capacity-constrained areas (as discussed in the Staff Report, Study Session Discussion Item #4) can be reasonably accommodated with existing funding, one risk of this could be deferred rebate awards if funding is depleted due to this new activity. Increased rebate amounts fo r multi-unit dwellings would have the same potential impact. As the program is demand-driven, it is difficult for staff to forecast the number of future rebate applications, but rebate applications have trended lower since the program’s inception. Staff plan for increased outreach in the coming twelve months, particularly in the capacity-constrained areas of the system. If directed by Council, staff could further evaluate establishing a new rebate amount for multi-unit dwellings. Determining an appropriate amount that would cover all scenarios would be difficult due to the wide variety of property configurations. Any expansion of rebate eligibility or increased rebate amounts will require legal analysis by the City Attorney’s Office. Sewer Infrastructure Renewal Strategy and Private Sewer Lateral Program Updates Page 3 4) One of the Study Session Questions that staff have asked council to consider is whether or not Council would like to do a general plan amendment to change the maps of constrained areas to take into account updates in data over the last several years. Is it necessary to do a general plan amendment to change these areas, or can it be done by ordinance or resolution? The City Council incorporated the wastewater collection system capacity- constrained area map into the Water and Wastewater Element (WWE) in May 2018 (WWE, Figure 3). The General Plan Amendment is identified to update this map based on the data and analysis presented in the 2025 Wastewater Collection System Infrastructure Renewal Strategy (WWCIRS). Additional minor text updates will also be proposed to update the Wastewater Service section of the WWE to reflect the recent analysis and report. Therefore, modification of the capacity - constrained area map will require a General Plan Amendment. As stated in the introduction to the WWE: “The City decided to adopt an element addressing water resources and wastewater services because of the vital role of these resources and the far-reaching impacts of water policies on community growth and character. This element translates the Land Use Element's capacity for development into potential demand for water supply and wastewater services. This element outlines how the City plans to provide adequate water and wastewater services for its citizens, consistent with the goals and policies of other General Plan elements.” The WWE is the appropriate location for the capacity-constrained areas map because the General Plan provides the framework and long -range plan for the City based on the capacity of urban services, including wastewater collection. Therefore, identification of the City’s capacity to serve existing and build-out development, including capacity in the City’s sewer system, is important to include in the General Plan. General Plan Elements, including the WWE, also establish the policies and programs that are needed to facilitate the LUE’s identified capacity for development in the City, and the Municipal Code provides the regulations and enforcement authority for implementation of the General Plan. Sewer Infrastructure Renewal Strategy and Private Sewer Lateral Program Updates Page 4 5) If the City removes some of the previously constrained areas from the map, do we run the risk of having those areas become more constrained again? Is there any reason to leave the previous areas as eligible for the rebates, while adding the additional new areas? Staff’s recommendation to update the capacity -constrained areas map has been determined and informed through the 2025 Wastewater Collection System Infrastructure Renewal Strategy (WWCIRS). The 2025 WWCIRS builds upon the 2015 WWCRIS and is the most current and complete forecast of the city’s ability to accommodate housing growth and the conditions identified in the 2025 General Plan. While there are still ongoing issues in the previously i dentified capacity- constrained areas, staff believe that enough improvements and risk management systems have been implemented to accommodate the 2035 General Plan’s forecasted growth in these previously identified areas while controlling sewer spills. Study Session Discussion Item #4 proposes consideration of expanding reb ate eligibility in the newly identified capacity-constrained areas, while retaining existing eligibility for all single-family residences City-wide. 6) Are there any other points in time that could be considered to trigger a requirement for replacing a poor/failing sewer lateral other than sale of a property or failure of the lateral resulting in an SSO? Yes. Municipal Code Section 13.08.395.(C) defines when the inspection of existing private sewer laterals is required. Triggers include following a Sanitary Sewer Overflow (SSO), upon submittal of a building permit that includes a bedroom/bathroom/kitchen/plumbing fixture addition or increase in t he water meter size, and change in ownership of real property (inspection upon sale). After the inspection video has been reviewed, Municipal Code section 13.08.395.(G) provides the circumstances when private sewer laterals must be replaced, which include SSOs, findings of Inflow and Infiltration (I&I), or a pipe (lateral) that has defects that do not meet the required pipe material requirements. This section of the Municipal Code does not explicitly state that the Inspection Upon Sale process or change in ownership of review property can trigger a lateral replacement. Should Council give direction to staff to further evaluate this option, the Municipal Code could be modified to explicitly state this trigger. 7) Do we have data showing how many laterals are replaced each year as a result of the inspection program or the offset program? Approximately 350 laterals have been replaced through the Wastewater Flow (Private Sewer Lateral) Offset Program. Staff are currently analyzing records to determine the exact number, which is likely higher. While the Inspection Upon Sale program does not currently require replacement, approximately 426 private sewer lateral rebates have been issued since the current program was adopted in September 2019 (see Question 2). Sewer Infrastructure Renewal Strategy and Private Sewer Lateral Program Updates Page 5 8) Could a retrofit-upon-sale requirement be required only for laterals meeting the "poor" definition? Yes. Of the 1,016 private sewer lateral inspections completed through the Inspection Upon Sale Program, 316 met the definition of “Poor” (severe defects, missing portions, large breaks in the pipe, root intrusion). Three met the definition of being “Failed” (the camera cou ld not get through the pipe/complete collapse). Different from the Study Session Discussion in 2017, where staff and Council evaluated requiring replacement of these laterals before closing of escrow, staff are currently recommending that these laterals be replaced within 180 days, which is consistent with replacement requirements for all other triggers and currently incorporated into the existing Municipal Code (for those other triggers – see correspondence question number 6). Some minor revisions to the Municipal Code would be required to explicitly state that the results of the Inspection Upon Sale program may trigger a replacement requirement of certain laterals (as defined in Municipal Code Section 13.08.395(G). The 180-day timeline may be extended through the Director's discretion, given that good faith efforts have been made. 9) How does the presence of accessory dwelling units (ADUs) in various neighborhoods impact the sewer lateral analysis? The modeling effort included water usage data from actual water meter reads during the flow monitoring periods, which included all properties with a water meter. The build-out projections were based on assumptions of potential development including ADUs based on underlying zoning and past and potential future trends of development for the life of the 2035 General Plan. For example, a factor of five percent was applied to single-family residential (R-1) zoned parcels, which results in an assumed estimate of approximately 400 ADUs in this zone alone. One of the many benefits of the City’s updated sewer model is that it will be easier to adjust the model based on actual development over time.