14 - A - Sewer Lateral Assistance Program (SLAP) - Analysis 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: Operations Committee Via : Scott Carroll , General Manager From: Javier Ochiqui, Management Analyst Date: April 16 , 2013 Subject: S ewer L ateral 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 participa nts 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 a s well as fees waived. Since FY 07/08, CMSD has waived $640,238 in fees. Staff Recommendation That the Operations Committee recommend to the Board of Directors one of the following : 1. Start collecting the at least 50% of the Permit Fee from SLAP partici pants 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 . Analysi s 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 .
O perations Committee April 16 , 201 3 Page 2 of 4 Below is a chart that illustrat es the total number of SLAP partici 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, since FY 07 -08, CMSD has also waived approximately $640,2 3 8 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 to 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 lateral but we have been waiving their tie -in fee s via th e 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
O perations Committee April 16 , 201 3 Page 3 of 4 SLAP and has made the following clarifications. If the Committee disagrees with the decisions below, please advise staff. 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 cannot 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 reimbursed. However, before the six month deadline, reside nts 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 resident will not be reimbursed. 3. If a plumber is caught perf orming 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 to participate in the District’s SLAP seminar. 4. Can a r esident 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 installing a cleanout) and after staff confronts the ap plicants 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 Assistance Program SLAP ,” or by call ing (949) 645 -8400 e xt. 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.
O perations Committee April 16 , 201 3 Page 4 of 4 Legal Review Not applicable at this time . Financial Review Attachment B is a co st 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 p tion 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. Public Notice Process Copies 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 Directors to adopt the proposed charges. Attachment A. MAP B. SLAP Cost Analysis