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4e SLAP Comparison-Las Gallinas Valley Sanitary District Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum T o: Board of Directors Via: Scott Carroll, General Manager From: Elizabeth Pham, Management Assistant Date: January 14 , 201 4 Subject: Sewer Lateral Assistance Program (SLAP) Comparison Summary The Costa Mesa Sanitary District (CMSD) Board adopted its Sewer Lateral Assistance Program (SLAP) as a financial incentive program to encourage residents to maintain their lateral sewer lines. W it hout regular maintenance sewer lines can become blocked and cause material to back up into the house and the environment. The District reimburses 50% of the resident’s cost up to a maximum of $1,600 per residential parce l for services that may include tele vising the lateral interior, cleaning the pipe, installing a clean out attachment, and reconstruction costs. Staff is providing the Board of Directors with a comparison of the Sewer Lateral Assistance Program from the City of Huntington Beach and Las Galli nas Valley Sanitary District (LGVSD). Staff Recommendation Staff recommends t hat the Board of Directors receive and file this report. Analysis In 2008, the City of Huntington Beach implemented a new policy regarding the repair and maintenance of sewer lateral lines . The City is responsible for the portion of all sewer laterals from the City -owned sewer main through the public right -of -way to the private property line. The property owner remains responsible for all costs of repair and maintena nce of th at portion of the sewer lateral on private property. The City employs internal staff to perform clean out services . According to the City’s work order system, they have had 1,900 call outs for laterals and issued 540 reimbursements. At implementat ion, the City spent $2.2 million. However, participation in the program has steadily decreased and the City has spent approximately $600,000 with in the last Board of Directors Study Session January 14 , 201 4 Page 2 of 3 three years. The City reimburses up to $500 for the repayment of the CCTV video inspection DVD. The resident is responsible for procuring the video footage to provide proof that their sewer lateral is being compromised due to root intrusion as a result of a City tree planted in the area. The City then proceeds to schedule for tree removal and the subseq uent lateral repair work. Despite the decrease in participation , the City plans on continuing the sewer lateral assistance program. The Las Gallinas Valley Sanitary District (LGVSD) developed the Private Sewer Lateral Rehabilitation Assistance Program aft er AB 741 (Huffman) was passed into law on July 26, 2011. This legislation allowed wastewater agencies and willing property owners options for financing sewer improvements. The program was implemented in March of 2012 and has provided residents with fund in g at a low interest rate to pay for sewer lateral repairs. LGVSD residents can apply to borrow up to $10,000 from the fund to finance lateral replacement with 10 years to pay back the money at a 2 percent interest rate. Assistance is available to commercia l and residential proper ty owners within the District. In order to qualify, t he property should not be encumbered with delinquent property taxes, special assessme nts or other assessment loans. A contractual assessment agreement will be executed to secure r epayment and a lien will be filed. It is the responsibility of the property owner to obtain three quotes from contractors who are bonded and licensed by the California’s Contractors State Licensing Board to perform the work. The property owner is also resp onsible for managing the work, including the activities of the contractor, permitting and inspection, restoration work, repairs and claims for damages incurred. The property owner must retain all receipts, permits, inspection reports, and other documents. LGVSD will authorize payment once the property owner has presented all necessary documentation and pay the contractor directly for the work performed. Repayment is collected over 10 years with an annual interest rate of 2 percent . Payments are collected th rough semi -annual property tax bills as a special assessment. Since implementation, LGVSD has provided funding of $144,230 for 23 property owners. Strategic Plan Element & Goal This item adheres to Strategic Element 1.0, Sewer Infrastructure, and Strateg ic Goal No. 1.9, Sewer Lateral Assistance Program. Legal Review Not applicable at this time. Environmental Review The reimbursement to residents for sewer lateral repairs is not a disturbance of the environment similar to a new project that includes grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review For the current Fiscal Year, staff has allocated $200,000 as the program budget. Staff will continue to monitor this program and inform the Board i f additional funds are Board of Directors Study Session January 14 , 201 4 Page 3 of 3 needed. If the Board proposes adopting a loan program, the District will need to develop a method for placing charges for repayment through property taxes. Public Notice Process Copies of this report are on file and will be includ ed with the complete agenda packet for the January 14 , 2013 Board of Directors Study Session meeting at District Headquarters and posted on the District’s website . Reviewed by: Javier Ochiqui Management Analyst Attachment 1: City of Huntington Beach S ewer Lateral Assistance Program Attachment 2: Las Gallinas Valley Sanitary District Private Sewer Lateral Rehabilitation Assistance Program Las Gallinas Valley Sanitary District Private Sewer Lateral Rehabilitation Assistance Program Approved by the Board of Directors on March 22, 2012 D ISTRICT B OARD Megan Clark Rabi Elias Russ Greenfield Craig K. Murray Judy Schriebman D ISTRICT A DMINISTRATION Mark R. Williams, General Manager Michael Cortez, District Engineer Janice Mandler, Collection System/Safety Manager Susan McGuire, Administrative Services Manager Rev. 0213 Page 2 of 6 Dear Customers, Broken sewer laterals can cause pollution wh ich harms the environment and impact public health. The Board of Directors and the staff of the Las Gallinas Valley Sanitary District (LGVSD) wanted to establish a program where property owners wit hin its boundaries have an economical way to repair and replace their laterals. LGVSD supported legislation that was passed in 2011, California Assembly Bill 741, which allows agencies such as ours to adva nce funds to property owners for the repairs and receive repayment through special assessmen ts collected on the property tax bills. The basic guidelines of the Private Sewer Later al Rehabilitation Assistance Program are as follows:  Assistance is available to residential and co mmercial property owners within the District  The maximum amount of the assistance will be $10,000  Repayment will be over 10 years with an annua l interest rate of 2%. Payments will be collected through semi-annual property tax bills as a special assessment  The property owner must obtain a vide o inspection of the lateral performed by a plumber that shows at least one NASSCO Pipeline Assessment Certification Program (PACP) defect. This video needs to clearly show the property owner’s street address at the curb or front of the building. The repair work must be performed by a pr operly licensed co ntractor. See the District’s website for a list of licens ed contractors and plumbers who have performed work in the District in the past.  The property owner must obtain three quotes from contractors to perform the work who are bonded and licensed by the California’s Contractors State Licensing Board. The property owner is not required to select th e licensed contractor wh o provided the lowest qualified bid used to determine the limit of the assistance. However, the District will only provide funds for the amount of the lowest qualified bid.  Once the property owner has obtained a video inspection of the lateral, obtained three quotes, and completed an application they should submit them to the District.  Applications will be taken on a first-come, firs t-serve basis. It is strongly recommended that the assistance application be completed and approved prior to the work being performed. However, a property owner may a pply for a loan within 90 days of completing D ISTRICT B OARD Megan Clark Rabi Elias Russ Greenfield Craig K. Murray Judy Schriebman D ISTRICT A DMINISTRATION Mark R. Williams, General Manager Michael Cortez, District Engineer Janice Mandler, Collection System/Safety Manager Susan McGuire, Administrative Services Manager Rev. 0213 Page 3 of 6 the work. Post work applications are not guaranteed to be approved and the work is performed at the owner’s risk and cost.  LGVSD staff will review the application packag e and notify the prop erty owner about the status of the assistance request.  If the application is approved and prior to paying the contractor, the property owner will be required to sign a Contractual Assessm ent Agreement which will be recorded against the property. Attached is a chart of these steps with addition al guidelines for the pr ogram and an application form. In addition, the property owner may review the applicable District Ordinance in Title 2, Chapter 8 of the Ordinance Code and the Contractual Assessment Agreement form at our website: www.lgvsd.org. Please contact us with your questions. Sincerely, Mark R. Williams x:\lateral assistance program\final documents\lateral assistan ce program application property owner only rev 02 15 2013.docx Private Sewer Lateral Rehabilitation Assistance Program Rev. 0213 Page 4 of 6 Before Any Work Begins Inspection Obtain Quotes Application Staff Review Approval Letter Property owner obtains a video inspection.. The lateral line must have at least one Pipelin e Assessment Certification Program (PACP) rated defect. The video inspection must clearly identify the location of the property and the lateral by recording the address at the curb or on the property. Videos without this identification will be rejected. The video inspection may be observed by LGVSD personnel. Property owner is required to obtain three quotes from contractors who are bonded and licensed by the California Contractor State Licensing Board to perform the work, or If the property owner is a licensed plumber or cont ractor, they may submit the estimated cost of materials and equipment to perform the work themselves. Applications will be taken on a first-come, first serve basis. It is strongly recommended that the assistance app lication be completed and approved prior to the work being performed. However, the property owne r may apply for assistance within 90 days of completing the work. Post work applications are not guaranteed approval and the work is performed at the owner’s risk and cost. The District reserves the right to reject all incomplete applications. Application and lateral video will be reviewed by LGVSD and dete rmination of eligibility will be made by the General Manager or designee whose decision shall be final. LGVSD will verify the ownership of the property with the applicant. The property shall not be encumbered with delinqu ent property taxes, special assessments or other assessment loans. If delinquencies exist, the prope rty owner must provide documents of special payment arrangements to eliminate the delinquencies. The assistance limit will be established, including any fees related to processing the application. Letter of approval must be issued by LGVSD to Property Owner. Private Sewer Lateral Rehabilitation Assistance Program Rev. 0213 Page 5 of 6 Work Performed Obtain Permits Property owner/contractor is required to obtain a permit from LGVSD which is available at no cost. Property owner/contractor is responsible for obtaining all permits required by the City of San Rafael and/or the County of Marin for street excava tion work or any other applicable permits. Perform Wor k Property owner schedules the work. Property owner is responsible for ensuring that th e work is performed in accordance with LGVSD’s specifications. Property owner is responsible for managing the wo rk, including the activities of the contractor, permitting and inspection, restoration work, re pairs, and claims for damages incurred. Property owner to obtain approval from LGVSD for any additional work due to unforeseen circumstances which would be reimburse d with Contractual Assessment Funds. Property owner is required to perform the work, including inspections, within 90 days of Approval Letter date and prior to the end of the fiscal year (June 30 th ), whichever is earlier. Obtain Ins p ections A post rehabilitation inspection by LGVSD must be obt ained prior to burial of the lateral which is available at no cost. Schedule the LGVSD inspection at least 24 hours in advance of the desired inspection time. Schedule any inspection required by the City of Sa n Rafael and/or the County of Marin for street excavation work or any othe r applicable inspections. Pa y ment Property owners submits to LGVSD invoices and documentation including all necessary permits and inspections, an itemized statement of costs and a signed release accepting the improvements and authorizing payment. LGVSD will authorize payment for the lesser of th e amount in Approval Letter plus any previously authorized additional work or the actual cost of the work performed. LGVSD will execute a Contractual Assessment Ag reement with the property owner which will be recorded by LGVSD to secure repayment. LGVSD will p a y the contractor directl y .After the Project is Completed Property owner shall retain all receipts, pe rmits, inspection reports and other documents. LGVSD will provide the property owner with a certificate showing that the lateral was repaired/replaced and the date thereof. Property owner will pay the Contractual Assessment as part of their semi-annual property tax bill. Private Sewer Lateral Rehabilitation Assistance Program Rev. 0213 Page 6 of 6 Application I certify by signing this application that I am (we are) the lega l owner of the property described herein. I am (we are) aware that the submission of this document does not constitute that Contractual Assessment Funds have been approved by LGVSD. I have read the requirements for the Private Sewer Lateral Reha bilitation Assistance Program and am aware that a letter will be issued advising if Contractual Asse ssment Funds have been approved. Any work performed prior to receiving a letter of obligation from LGVSD is performed at my own risk and cost. I understand that not all applications will be granted. I understand all applications are su bject to a Pipeline Assessment Certification Program (PACP) rating which will be reviewed by LGVS D in determining the eligibility for assistance. Signature: ______________________________________ Date:_________________ Signature: ______________________________________ Date:_________________ Property Owner(s) Name(s): Property Address: T ax Assessor’s Parcel No: Mailin g Address (if different): City: State: Zip Code: Home Phone: Mobile: Email:Amount you are requestin g : Estimated date work will be g in: Is this a Late Application filed within 90 days of completing the work? YesNo Date work Completed: (Late Application only) Checklist for submission: Quotes for Work to be Performed: Three Quotes for the Work to be performed Yes  No  If No Why? Emergency  Doing Work Myself  Work Already Completed:  Video Inspection: Executed licensed contractor or plumber which clearly identifies the property address? Yes  No Your application will be rejected