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Home My WebLink About10/07/1997, 4 - WAIVER OF FEES FOR VOLUNTARY LATERAL REHABILITATION PROGRAM jcouncil October 7, 1997 ac,Enaa nEpont RmN..bw CITY O F SAN LUIS O B I S P 0 FROM: John Moss, Utilities Director Prepared By: David Iiia Wastewater Division Manger SUBJECT: Waiver of Fees for Voluntary Lateral Rehabilitation Program CAO RECOMMENDATIONS Adopt a Resolution Waiving the Plumbing Inspection Fee,Lateral Installation Fee and the Encroachment Permit Fee for the Voluntary Lateral Rehabilitation Program. DISCUSSION The City's wastewater collection system and Water Reclamation Facility(WRF)have long been significantly impacted by excessive wet weather Infiltration and Inflow(M). UI interferes with the WRF's treatment ability by hydraulically overwhelming its processes causing effluent violations and release of partially treated wastewater,and the collection system experiences surcharging which causes customer service interruptions and periodic overflows. Investigations into the sources of UI showed that privately owned service laterals were a significant source of M. On May 21, 1996,the City Council was presented with the Voluntary Lateral Rehabilitation Program(Lateral Program)and approved consideration for the program in the City's 1997-99 financial plan. Council approved funding for the program in the 1997-99 financial plan on July 1, 1997. The program.addresses M from private sewer laterals by encouraging homeowners to repair or replace their lateral with a City reimbursement for 50%of the cost up to $1,000.00. The program combines the wastewater collection section's expertise in video inspection with private contractors making the needed repairs or replacement. During development of the procedures and forms for the implementation of the lateral program, staff discovered that inspection fees from the Community Development, Public Works and Utilities Departments were not addressed in the May 21, 1996 Council Agenda Report or the capital improvement plan for the 1997-99 financial plan. The plumbing permit fee from Community Development's building and safety division for repair or replacement of a private sewer lateral is $35.00,the encroachment permit from Public Work's engineering division is $370.00 + $0.90/lin.ft. for excavation into the street and the lateral installation fee from the Utilities Department for connection to the mainline is $175.00. Because the lateral program will reimburse City customers with funds from the Sewer Fund, staff feels that reimbursing another City fund would be contradictory to the basis of the lateral program and significantly reduce the amount of funds available to repair or replace defective laterals. A total lateral replacement, from the residence to the City mainline 25 feet into the street,may cost in excess of$3000.00, with permit costs of over$590.00. This amount is more than half the amount that the program would reimburse a homeowner for replacement costs and would potentially reduce the funding available for the actual lateral replacement through this program by more than half. 44--1 City Council Agenda Report-Waiver of Fees for Voluntary Lateral Rehabilitation Program Page 2 The Community Development Department has agreed to recommend waiver of the plumbing inspection fee and provide inspection services for the program. The Public Works Department has agreed to recommend waiver of the$370.00+$0.90/lin.ft. encroachment permit fee and allow utilities staff to perform the necessary inspections. The plumbing inspection fee represents the cost of trench and pipe installation inspection on private property,and the encroachment permit cost represents trench,pipe installation, compaction and paving inspection. The Utilities department recommends waiver of the$175.00 lateral installation fee for installing a new Wye connection to the City mainline. To offset the cost and increased workload for the Public Works Department,resulting from this program,the Utilities Department will assume the inspection duties for the encroachment permit. Utilities staff has extensive experience in underground construction including pipe installation, compaction and paving and also comprehensive knowledge of the City's adopted engineering standards and specifications for pipe installation, compaction and street repairs. Utilities staff will cross train with the Public's Works engineering division's inspection staff to ensure conformance with City specifications and standards and Public Work's policies and procedures. Utilities will staff this program with two members of the wastewater collection section that were approved by Council in the 1989-91 financial plan for investigation and evaluation of I/1, including privately owned sewer laterals. These staff members will be shifting some of their investigative work towards actual reduction of the City's I/I problem. Waiver of the fees will allow more funding to go directly to the program to replace and repair laterals that are in poor condition. Program participants will still be required to apply for all necessary permits. During public meetings concerning the lateral program several customers who had recently replaced laterals commented on the cost of City permits and how it significantly contributed to the cost of the repair or replacement of their lateral. Customers at the community meetings felt that waiver of the fees was a positive and equitable way to keep the cost of replacing or repairing a lateral down CONCURRENCES This program has been reviewed by the Community Development and Public Works Department and they concur with the recommendations herein. FISCAL EWFACT Approval of this recommendation is projected to result in a loss of potential revenue as follows: General un eneral Fund Sewer fund Engineering Building Wye Installation/ Encroachment Plumbing Permit Collection Number of Permit ($35) ($175) TOTAL Participants ($370+$.90/lin ft) earSee note below-. , 100 earsee note ba ow. i,uuu ota , , Note: A service fee is adopted to ensure revenue is collected to pay for the cost of services provided. In the case of the encroachment permit(which.is to pay for engineering inspection of work done by licensed contractors in the City right-of-Way),the Utilities Department is recommending that the workload be shifted from engineering (General Fund)to the wastewater City Council Agenda Report- Waiver of Fees for Voluntary Lateral Rehabilitation Program Page 3 collection staff(Sewer Fund). The collection crew will be trained by the engineering inspection staff. The loss of potential revenue to the General Fund is not believed to be significant, therefore, because the workload has been shifted to the Sewer Fund. Two staff persons in the collection crew are assigned to UI activities,and,therefore, it is appropriate for them to include these inspections as part of the regular duties. The table shows the projected loss of potential revenue to the General and Sewer Funds related to the lateral program over the next two years, assuming a scenario based upon 80 laterals being completely replaced in 1997-98 and 100 in 1998-99. The Community Development Department will experience a loss of$2,800.00 for 1997-98 and $3,500.00 for 1998-99. Utilities will see a loss of$14,000.00 for 1997-98 and$17,500.00 for 1998-99. Some laterals may need only the upper portion repair or replacement which will not require the encroachment permit or lateral installation fee. Some repairs or replacements may cost less than the $1,000 reimbursement so there may be more than the 80 plumbing permits for 1997-98 and 100 for 1998-99. In almost every case a plumbing permit from the building division will be needed. ALTERNATIVES 1. Do not waive fees, require customer to pay all or a portion of the fees. This alternative is not recommended. As mentioned above this would result in significant costs to the customer and may limit participation. 2. Waive all fees, and require the sewer fund to reimburse the general fund. This alternative is not recommended. As stated above this may result in reducing the total funds available for program implementation or additional costs to the sewer fund for full program implementation of up to approximately $50,000. ATTACHMENTS Attachment 1 Resolution Waiving Fees Exhibit Council Agenda Report,May 21, 1996-Voluntary Service Lateral Investigation and Rehabilitation Program. (Council Reading File) h:AWfeeway.cw �-3 RESOLUTIONNO. (1997 Series) A RESOLUTION OF THE CITY COUNCIL OF THE OF THE CITY OF SAN LUIS OBISPO APPROVING WAIVER OF CITY FEES RELATED TO PARTICIPATION IN THE VOLUNTARY SEWER LATERAL REHABILITATIONPROGRAM WHEREAS,the City Council has approved the implementation of a voluntary sewer lateral rehabilitationprogram to reduce infiltration and inflow into the municipal collection system;and WHEREAS, the rehabilitation of privately-owned sewer laterals may typically require inspection and other services from the Building Division,the Engineering Division and the Sewer Collection program which is the basis for collecting plumbing inspection fees, lateral installation fees,and encroachmentpermit fees;and WHEREAS,the intent of the voluntary sewer lateral rehabilitationprogram is to encourage property-owners to rehabilitate privately-owned sewer laterals contributing to the City's infiltration and inflow problem;and WHEREAS,the City Council has previously approved reimbursement to.property owners of up to$1,000 per property to encourage said rehabilitation;and WHEREAS, the combination of plumbing inspection fees, lateral installation fees and encroachment permit fees may cost as much as $600 per property,and could result in the rebate being used to reimburse fees and limited rehabitation work;and WHEREAS,the repair of privately-owned laterals contributing to the City's infiltration and inflow problem results in a community-wide benefit to the sewer system BE IT RESOLVED,that the City Council of the City of San Luis Obispo hereby approves a one-time waiver of the plumbing inspection fee,lateral installation fee and encroachmentpermit fee in those instances when a privately-owned sewer lateral is being rehabilitated as part of the City's voluntary sewer lateral rehabilitationprogram. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of .1997. Resolution Waiving Fees for Participants in Voluntary Sewer Lateral Rehabilitation Program ATTEST: City Clerk Mayor Allen Settle APPROVED AS TO FORM: anp-dc t (3• R4nn City Attdmey RESOLUTMEM 171- 41IX E � owa o w `� o V OFA F z � Wod � O c U w Gol� w H � w a � O aw A o � W O � P61 ~ a WU` w pro Q � w x H a o A z � o � W A � z W H � w Con w z � 0Q O O Z O � o 0 tz � p W O ,E y ►N w H Q a a w a 0 � • • • N w W 2z' O w w a w Z � a w ,•� � O PLO w W O z a Z aaU 00 O W A O a 00 00 W 00 O 00 H O ff� Sgen b6 wU ao$0kn knW A 04 Awa � � � en Q 0000tr) M NA a pool el en *Z � � a ic COO w a ;moo waw 00