HomeMy WebLinkAbout12/2/2025 Item 6b, Floyd and Lehman - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: December 2, 2025
TO: Mayor and Council
FROM: Aaron Floyd, Public Works and Utilities Director
Prepared By: Chris Lehman, Deputy Director - Wastewater
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6b - GENERAL PLAN AMENDMENT FOR WASTEWATER
COLLECTION SYSTEM CAPACITY CONSTRAINED MAP AND
ADOPTION OF LATERAL REBATE PROGRAMS
Staff received a request to explain if and how the proposed Water and Wastewater
Element Amendment, recommended Private Sewer Lateral Inspection Program, and
expanded Private Sewer Lateral Replacement Rebate Program would financially impact
a resident living in a home built in the 1960s, which is served by a very long sewer lateral,
and is in a wastewater collections system constrained area.
Staff Response:
All properties in the City are subject to ownership, maintenance, repair, inspection, and
replacement requirements for private sewer laterals, as mandated by Municipal Code
Section 13.08.395.
Water and Wastewater Element Amendment – No Financial Impact. Properties located
within a wastewater collections system capacity constrained area, as approved by City
Council and incorporated into the General Plan Water and Wastewater Element, are
subject to the Wastewater Flow Offset program, currently mandated by Municipal Code
Section 13.08.396. If approved, the proposed Water and Wastewater Element
Amendment would change the boundaries of the capacity constrained areas. No changes
to the Municipal Code are currently proposed, and the Amendment alone would not
financially impact property owners, unless additional actions are required by the Municipal
Code, as summarized in the scenarios below.
New Proposed Sewer Lateral Inspection Rebate – Beneficial Financial Impact. If the
property owner of a single-family residence located within a capacity-constrained area
completes a private sewer lateral CCTV inspection, whether voluntarily or as required by
the Municipal Code, they may apply for a Sewer Lateral Inspection Rebate up to $350.
The total cost of the private sewer lateral inspection depends on site -specific factors;
however, it would likely be covered by the rebate.
Item #6b - Capacity Constrained Map Amendment and Lateral Rebate Programs Page 2
Expanded Sewer Lateral Replacement Rebate – No Change to Current Beneficial
Financial Impact. Council’s approval of the proposed expanded Sewer Lateral
Replacement Rebate would not change how the program is administered for single-family
residences. No changes to the Municipal Code regulations governing the replacement of
sewer laterals or the Wastewater Flow Offset Program are currently proposed.
The Municipal Code currently requires replacement of an existing private sewer lateral in
“poor” or “failed” condition if a property owner proposes a project that would add a
bedroom, bathroom, or kitchen, result in upsizing the existing domestic water meter or
the addition of a new domestic water meter, or subdivide s the property. The property
owner may apply for a Sewer Lateral Replacement Rebate up to $4,000. The total cost
of the lateral replacement depends on site-specific factors; however, the cost would be
offset by the rebate up to $4,000.
If the property owner’s project meets the Municipal Code definition of “intensified
development”, the project is subject to the Wastewater Flow Offset Program:
“’Intensified development’ means the development of a property, site or area
through development, redevelopment, infill or expansion or conversion of existing
buildings resulting in any of the following conditions: development results in a
higher residential density than currently exists; development results in an increase
in habitable residential or nonresidential building area of four hundred fifty square
feet or greater than currently exists (excluding garages, gazebos and sheds
without plumbing fixtures); or development would increase the plumbing fixture
count by ten percent or more.”
As noted in the Municipal Code, “sewer capacity offsets within the same parcel boundary
(on-site) may be considered as an offset credit for a residential intensification project, at
the discretion of the Utilities Director.” The property owner may apply for the Sewer
Lateral Replacement Rebate (up to $4,000) for the on-site offset (replacement of the
existing sewer lateral).
In addition, a property owner may apply for the Sewer Lateral Replacement Rebate if their
lateral is in poor or failed condition and is replaced by another party, such as a developer
of an off-site development that is subject to the requirements of the Wastewater Flow
Offset Program. The rebate must go to the property owner of the physical parcel where
the private lateral is replaced. Financial agreements between the property owner and
developer for the lateral replacement would be privately negotiated.