14 - Sewer Lateral Assistance Program (SLAP) - AnalysisProtecting 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: Javier Ochiqui, Management Analyst
Date: April 18, 2013
Subject: Sewer Lateral Assistance Program Analysis
Summary
On March 19, 2013, staff gave the Operations Committee a quarterly report regarding
the status of this program. During the report, Chairman Scheafer asked staff to
separate the total number of SLAP participants into the following 5 categories:
Eastside, Mesa Verde, Westside, Mesa North, and College Park. Staff is providing the
Operations Committee with the findings , and with a full cost analysis of the program
which will highlight direct , and indirect cost s as well as fees waived. Since FY 07/08,
CMSD has waived $640,238 in fees.
Staff Recommendation
That the Board of Directors approves two of the following recommendations:
1. Start collecting the at least 50% of the Permit Fee from SLAP participants
in order to cover our indirect costs, and no longer allow CMSD staff to
waive the plan check and tie-in fees; or
2. Continue to waive the Permit Fee from SLAP participants, and no longer
allow CMSD staff to waive the plan check and tie-in fees.
3. Allocate $25,000 from the Liquid Waste Fund Balance to the SLAP
Budget
Analysis
Since Fiscal Year 200 7-08 , a total of 945 CMSD residents have participated in the
program and CMSD has paid $971,039 in assistance.
ITEM NO. 14
Board of Directors
April 18 , 201 3
Page 2 of 4
Below is a chart that illustrat es the total number of SLAP par tici pants by the following
categories, Eastside, Mesa Verde, Westside, Mesa North, and College Park:
Eastside Mesa Verde Westside Mesa North College
Park
%34.71%22.33%21.38%14.71%6.88%
Total 328 211 202 139 65
328
211 202
139
65
0
50
100
150
200
250
300
350
SLAP Participants By Category
As the chart illustrates, most of the SLAP participants (34.71%) live on the Eastside
(Attachment A ).
In addition, sinc e FY 07 -08, CMSD has also waived approximately $640,2 38 in fees .
Below are the fees that have been waived via the SLAP program:
Fees Fee Amounts Totals
Permit Fee $120.00 $113,400
Plan Check & Review Fee $545.00*1 $257,513
Tie -in t o Existing Lateral Fee $570.00*2 $269,325
$640,238
*1 Approximately 50% of SLAP participants needed a plan check & review. However, we have
been waiving their fees via the SLAP program . *2 Approximately 50% of SLAP participants tied
into an existing lat eral but we have been waiving their tie -in fee s via the SLAP program .
Staff recommends that we no longer allow CMSD staff to waive the plan check and tie -
in fees via the SLAP program. By doing this, CMSD will gain in revenue at least
$42,918, and $44,887 per year respectively .
Since program implementation, staff has come across some issues that needed
further clarification. The General Manager has discretion over all decisions regarding
SLAP and has made the following clarifications. If the Committee di sagrees with the
decisions below, please advise staff.
Board of Directors
April 18 , 201 3
Page 3 of 4
1. When residents are reimbursed and don’t meet the maximum $1,800, can they
reapply within five years to receive the remainder of funds?
A. Yes. After a resident is reimbursed the maximum amount , he/she c annot
reapply to the program for five years.
2. How does staff proceed when an application is submitted and approved, but the
work is not completed?
A. If work is not completed within six months, the application will be closed
and the resident will not be reimb ursed. However, before the six month
deadline, residents can request an extension for up to an additional six
months. If the extension has been approved and the work is still not
completed after a year, than the application will be closed and the residen t
will not be reimbursed.
3. If a plumber is caught performing improvements without a permit, does staff
penalize the resident and not allow him/her to participate in SLAP?
A. No. However, the plumber will be charged the District’s permit fee and be
required t o participate in the District’s SLAP seminar.
4. Can a resident still participate in the SLAP program after the improvements
have been completed?
A. Yes, if the work was performed within six months and the resident can
demonstrate why the work was needed and an “after” video was
submitted.
In addition, staff is in the process of revising the application form to ensure applicants
read and understand the program guidelines. Sometimes applicants will not follow the
guidelines (e.g. obtaining a before video or i nstalling a cleanout) and after staff
confronts the applicants often they argue that staff did not inform them of said
guidelines. The revised application will require applicants to initial every page after
they read the instructions and guidelines.
CMSD continues to encourage residents to properly maintain their sewer laterals.
Residents can obtain an application , and get more information by vis iting
www.cmsdca.gov , c licking on “Sewer System ,” then “Sewer Lateral As sistance
Program SLAP ,” or by call ing (949) 645 -8400 ext. 233.
Strategic Plan Element & Goal
This item adheres to Strategic Element 1 .0, Sewer Infrastructure , and Strategic Goal
No. 1.9, Sewer Lateral Assistance Program.
Legal Review
Not applicable at this time .
Board of Directors
April 18 , 201 3
Page 4 of 4
Financial Review
Attachment B is a cost analysis of the SLAP Program. As you can see in the analysis,
the cost for this program is double the reimbursement amount. Staff believ es that if
this continues, the program will be unsustainable.
Option 1 - If the Operations Committee recommends o ption 1 , CMSD will begin
collecting 50% of the Permit Fee , which will save $56 ,7 00 and will collect an extra
$526,838 in plan check and tie -in fees in the next six years. A total saving s of
$583,538.
Option 2 - If the Operations Committee recommends o ption 2, CMSD will continue to
waive the Permit Fee , but still collect $526,838 in plan check and tie -in fees in the next
six years.
Currently, this program has a balance of $1,190.74 . To date, the Dis trict has
reimbursed $198,809.26 . Staff believes an additional $25,000 will enable this program
to continue for the remainder of the fiscal year. If the additional funding is not
approved, staff will not process applications until July 1, 2013.
Committe e Recommendation
On April 16, 2013 the Operations Committee discussed this item; however, this report
was prepared before the meeting occurred. Staff will share with the Board the
Committee’s recommendation at tonight’s meeting.
Public Notice Process
Cop ies of this report are on file and will be included with the complete agenda packet
for the April 16 , 2013 Operations Committee meeting at District Headquarters and
posted on the District’s website .
Alternative Actions
1. Do not recommend the Board of Direc tors to adopt the proposed charges.
2. Do not approve allocating $25,000 to the SLAP program.
Attachment A. MAP
B. SLAP Cost Analysis
Attachment A
Attachment B
Line FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13
Categorical
Totals Notes
1 Total Participants 945
2
3 Direct Costs Per Hour
Ave.
Time/hr.
4 No. of Participants 121 162 154 156 199 153 945
5 Inspector Fee 64.50 $ 1.00 7,805 $ 10,449 $ 9,933 $ 10,062 $ 12,836 $ 9,869 $ 60,953 $
6 District Engineer 96.00 $ 1.00 24,800 $ 24,800 $ 24,800 $ 30,400 $ 19,200 $ 24,800 $ 148,800 $ 1
7 SLAP Payout 128,274 $ 168,101 $ 172,060 $ 169,959 $ 170,645 $ 162,000 $ $971,039
8 Total Direct Costs Per Year 160,879 $ 203,350 $ 206,793 $ 210,421 $ 202,681 $ 196,669 $ $1,180,792
9
10 Indirect Costs
11 Admin Assistant 27.50 $ 0.50 1,664 $ 2,228 $ 2,118 $ 2,145 $ 2,736 $ 2,104 $ 12,994 $
12 Maintenance Supervisor 49.18 $ 0.75 4,462 $ 5,975 $ 5,680 $ 5,753 $ 7,339 $ 5,643 $ 34,852 $
13 Accounting Specialist 44.83 $ 0.50 2,712 $ 3,631 $ 3,452 $ 3,497 $ 4,461 $ 3,429 $ 21,182 $
14 Total Indirect Costs Per Year 8,838 $ 11,833 $ 11,249 $ 11,395 $ 14,536 $ 11,176 $ 69,028 $
15
16 Fee Waived
17 Permit Fee 120.00 $ 14,520 $ 19,440 $ 18,480 $ 18,720 $ 23,880 $ 18,360 $ 113,400 $
18 Plan Check & Review Fee (50%)545.00 $ 32,973 $ 44,145 $ 41,965 $ 42,510 $ 54,228 $ 41,693 $ 257,513 $ 2
19 Tie-in to Existing Lateral (50%)570.00 $ 34,485 $ 46,170 $ 43,890 $ 44,460 $ 56,715 $ 43,605 $ 269,325 $ 3
20 81,978 $ 109,755 $ 104,335 $ 105,690 $ 134,823 $ 103,658 $ 640,238 $
21
22 Total SLAP Costs 251,695 $ 324,938 $ 322,377 $ 327,506 $ 352,039 $ 311,502 $ $1,890,057
1 District Engineer costs for FY 10/11 and 11/12 are actuals. FY 07/08,08/09, 09/10, and 12/13 are averages.
2 Approximately 50% of SLAP participants needed a plan check & review, but we have been waiving their fees.
3 Approximately 50% of SLAP participants tied into an existing lateral, but we have been waiving their tie-in fees.
Costa Mesa Sanitary District Liquid Waste Fund
SLAP Cost Analysis