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HomeMy WebLinkAbout4/21/2026 Item 7b, Floyd and Lehman - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: April 21, 2026 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 7b - ORDINANCE AMENDING TITLE 13 OF THE MUNICIPAL CODE REGARDING PRIVATE SEWER LATERAL INSPECTIONS, REPLACEMENTS, AND DISSOLUTION OF THE MANDATORY WASTEWATER FLOW OFFSET PROGRAM Staff received the following questions regarding the proposed changes to the Sewer Lateral Inspection, Repair, and Replacement Program. The questions are below with staff’s response shown in italics: 1) There are concerns that only a limited number of companies perform sewer lateral replacements in the City. How will laterals be replaced in a timely manner? From records obtained through sewer lateral rebate applications and outreach to local plumbing companies, the City is aware of nine local companies, and at least one from the Central Valley, that are able to complete sewer lateral replacements in the City of SLO. The City is unaware of any instance where a lateral could not be replaced within six months due to unavailable contractor labor. For property owners who may experience delays in replacement but have demonstrated good faith efforts towards this requirement, the Public Works & Utilities Director currently has the authority to authorize extensions. 2) Have staff considered only requiring replacement in capacity-constrained areas upon sale? If not, why not (if this is where most of the problems are)? Staff’s recommendation to require citywide repair or replacement of private sewer laterals determined to be in poor/failed condition through the Inspection Upon Sale program is consistent with all other events defined in SLO Municipal Code Section 13.08.395 (C), which does not differentiate between locations in the City. These existing events are: a. Whenever the city has issued a notice of violation following a sanitary sewer overflow event from a property’s private sewer lateral. Item 7b - Ordinance amending Title 13 of the Municipal Code Page 2 b. Upon submittal of a building permit for the addition of a bedroom, bathroom, or kitchen in a residential structure or the addition of nonresidential space or an additional plumbing fixture unit in nonresidential structures. c. A change of the use of the structure from: (i) residential to nonresidential use; (ii) to a nonresidential use that will result in a higher flow than the previous nonresidential use; or (iii) to a nonresidential use where the structure served has been vacant or unoccupied for more than three years. d. Increase in size of the domestic water meter serving the property or adding a new domestic water meter. e. Whenever property located in the city and containing one or more structures which are served by a private sewer lateral or laterals is subdivided. The inspection shall occur prior to recordation of the final map. f. Within thirty days of notification by the city that “smoke testing” or closed- circuit television (CCTV) sewer main inspection indicates the presence of inflow or infiltration from private property that impacts the operation of the public wastewater collection system. Staff’s recommendation, as defined in the draft ordinance, is to include “Upon any change in ownership of real property within the city” (Inspection Upon Sale) as an event that could trigger repair or replacement of the sewer lateral (citywide). These poor/failed condition laterals result in high risk to property owners, the community, and the environment. The current Private Sewer Lateral Inspection, Repair, and Replacement Program applies Citywide because: poor/failed condition laterals have the potential to result in sewage spills and associated public health and safety in both capacity- constrained and non-capacity constrained areas, and as evident in the 2025 Wastewater Flow Infrastructure Renewal Strategy, capacity-constrained areas have the potential to change over time as older private sewer laterals throughout the City continue to fail and contribute inflow and infiltration flows to the municipal sewer system. In addition, staff is cognizant of housing needs located throughout the city, not just in the capacity-constrained areas. Implementation of the program as proposed (citywide) supports the goal of building and ensuring capacity in the wastewater collections system for future housing developments citywide. This approach is consistent with General Plan policies related to expansion of wastewater system capacity in support of projected flows and Major City Goals for Housing. In the event the Council moves to limit the replacement requirement specific to the Inspection Upon Sale program to capacity-constrained areas only, staff proposes the following draft revised ordinance language for consideration and discussion: Item 7b - Ordinance amending Title 13 of the Municipal Code Page 3 a. For events identified in subsections (C)(1)(a) through (C)(1)(g) of this section, repair or replacement shall be made pursuant to subsection G of this section. b. For events identified in subsection (C)(1)(g), repair or replacement requirements pursuant to subsection G of this section shall not be effective until January 1, 2027 and shall be only applicable to wastewater collections system capacity-constrained areas as shown in the General Plan Water and Wastewater Element. 3) Why are common interest developments not proposed to be subject to this new requirement? Staff’s recommended ordinance changes do not include modified requirements for properties that are currently exempt from inspection, such as common interest developments. The reason for this existing exemption involves the complexities of determining fiscal proportionality that may occur when multiple owners share a single asset in common. 4) What are the costs associated with required private sewer lateral inspections and replacements? Staff’s research indicates that private sewer lateral inspections range from $250- $400, and private sewer lateral replacements can range from $8,000 to $30,000 or more, depending on the complexity of the location (e.g., length, depth, utility conflicts, etc.). Data from the private sewer lateral replacement rebate program indicates that, on average, replacing a private sewer lateral costs around $12,000.