Exh 3B3B
Z-Z8-o0
OPTIONS TO CONSIDER FOR CONVERSION OF SEPTIC TANK SYSTEMS
TO PUBLIC SEWERS IN ATLANTIC BEACH
February, 2000
All septic tanks will eventually fail as their drain fields fill up or for other reasons. When
they fail in Atlantic Beach, owners will be required to connect to the public sewer system
if if is available on their street. The cost to convert to the public sewer system varies
widely but is estimated to average in the range of $2,500 to $3,000 for on-site plumbing
and $1,250 for the City's impact fee. A $4,000 expense will be a major financial setback
to most families. Most people would prudently choose to delay this expense as long as
possible.
Most people would also agree that disposing of household sewerage through a public
sewer system is a far better environmental alternative than utilizing on-site septic tanks.
This is even more important in an urban environment with small lots and shallow wells
for irrigation. The desire for people to postpone large expenditures is at odds with the
concern for protecting the environment. This is essentially the issue that is facing the
City Commission, although questions of enforcement of state and local laws and liability
also enter the picture.
While these two concerns often appear to be at different ends of the spectrum, a
considerable number of options exist to encourage homeowners to convert to the public
sewer system now rather than waiting for their septic tanks to fail.
Let owners wait < OPTIONS
until systems fail
> Convert all
septic tanks now
The options that available to the City Commission fall into three basic categories that
include funding, enforcement, and public education.
FUNDING OPTIONS
1. Loan from Citv; Most families do not have $4,000 available for discretionary
spending. However, because the septic tanks will fail eventually, each family will have
to pay that amount sooner or later. The City could offer to loan some or all of the cost of
the conversion to the homeowner at a rate that would be less than they could get the
funds from private lending institutions. Presently, the City allows owners to pay the
impact fee over a two year period. However, without additional assistance, the
homeowner must still pay the plumbing costs to connect to the City's line. It is possible
for the City to lend the homeowners the amount needed to pay the entire cost of the
conversion or a portion of those costs up to a cap amount.
Term and rate; the city could choose a term for the loans extending anywhere from two
to ten years. Assuming an interest rate of seven percent (which would equal the City's
forgone interest on invested funds plus administrative costs) the payments for
homeowners fora $4,000 loan would vary from as little as $46.45/month over 10 years to
$179.10/month over two years.
Less 2 years < Term > 10 years More
encouragement Impact fee < Amount > All Costs encouragement
to connect only to connect
2. Sunset provision for new loans; the Commission may want to consider placing a
sunset provision on the use of these loans. If owners could count on getting a loan from
the City for the indefuute future, there would be little incentive for the owners to convert
now rather than later. They could simply wait until their septic tanks failed and then get
the loan. A suggestion would be to limit the availability of these loans to the next one or
two years.
3. CDBG Funds; the City receives Community Development Block Grant (CDBG)
Funds yearly of which at least $50,000 could be made available to owners meeting the
income criteria. Block Grant Funds could be used to pay all or a portion of the
conversion costs. One way to "stretch" available funding would be to authorize "grants"
to low income homeowners to a certain cap with the remaining homeowners' costs being
financed by the City as described above.
4. City provides "turn key" conversion; for some homeowners, the administrative task of
getting plumbing estimates and monitoring construction work would be an additional
-- impediment to septic tank conversion. Another option available to the Commission
would be for the City (if requested) to contract directly with plumbers for the work and
manage the entire operation on the person's property. This would only be logical if the
Commission chose to allow the financing of the entire cost of conversion. A downside
with this option is the administrative time required by the City to oversee these projects
which could require the temporary addition of employees if substantial numbers of people
chose this alternative.
ENFORCEMENT OPTIONS
Much Like the range of options under the funding category, the City Commission also has
a range of options concerning the delay of enforcement of State and Local laws.
Presently, City regulations require conversion within 90 days although the State law
requires connection within one year of notification. The range of enforcement times can
begin with "as soon as possible" (90 days to one year) on one end of the spectrum to 10
years on the other end. At some point, a delay of enforcement essentially becomes a
decision not to enforce the regulations at all.
Less No < 10 DELAY IN ENFORCEMEIV'I'--->1 year More
encouragement Enforcement Years encouragement
to connect to connect
Delayuntil prope ,sells; one related option that could be added to this enforcement
delay would be to allow property owners to sign an agreement allowing for the
continuation of the septic tank use (providing it does not fail) until the property is sold or
transferred. Then, the cost of the septic tank conversion can more easily be rolled in with
the sale price of the house. The agreement would need to stipulate that a lien would be
placed on the property requiring the septic tank conversion within 90 days of the sale.
Also, this alternative only makes sense if the delay and enforcement overall is in the one
to two year range. If the City delayed the enforcement much further, homeowners would
logically wait longer to sign the agreements. Another related option concerning this
would be to allow the delayed conversion only in the case of financial hardship. While
most people can afford the monthly payments for septic tank conversion, some are on
fixed income or have other legitimate hardships that may prevent them from even paying
an additional $50.00/month.
PUBLIC EDUCATION
Most people really want to do the right thing to protect the environment. Preparation of a
flyer explaining the environmental benefits of septic tank conversion may go a long way
to help convince owners to take on this financial burden now rather than later. Other
__ avenues for apprizing homeowners of environmental information may include articles in
the City's Tide Views Newsletter and encouragement of newspaper articles on several
related subjects.
OTHER CONSIDERATIONS
These options are not exclusive. A combination of funding, enforcement, and public
education alternatives maybe the best mix to benefit both the public and the
environment.
The City's ordinances concerning these issues should be amended concurrent with the
Commission's decisions. There is one provision in the City Code that separates septic
tank owners into two groups; those that began paying assessments on sewer lines prior to
February, 1995 and others. About one-half of the septic tank owners that have City
sewer availability are not covered under the 1995 exemption. The Commission may
want to consider treating all septic tank owners with sewer availability the same. Second,
the 90 day hookup requirement and provision for the City to begin billing within 90 days
of sewer line availability should be amended to coincide with the Commission's
decisions.
There are several streets in Atlantic Beach where sewer service is not presently available
and homeowners in these areas have not been given any notice by the City. These
include Begonia, Tulip, and Carnation Streets along with portions of West Plaza, West
14~`, Memorial Drive, Kestner Road, and several sections of Church Road. Several of the
people who said that they did not receive any notice from the City about the septic tank
conversion may be living on these streets. Eventually the City Commission will need to
consider extending City sewer into these remaining areas.
CONCLUSION
The City Commission essentially has three options on the septic tank issue;
1. Wait for septic tanks to fail; Even if the City indefuutely delays any
enforcement action and chooses not to provide any incentives, the problem of septic tanks
will disappear over time. Most people will wait until their tank fails and then convert to
the City's sewer system.
2. Enforce the existinglocal and state laws; Some policy decisions and an
ordinance amendment from the Mayor and Commission would be required in this case.
About half of the current septic tank owners that have sewer availability are not covered
under the 1995 exemption. Various code enforcement options could be utilized to force
septic tank owners on to the City's sewer system after one year.
3. A balanced combination of incentives and delayed enforcement; The best
option of the three would be for the City Commission to adopt a balanced approach
~- which would provide a mix of financial incentives encouraging conversion of septic tanks
sooner rather than later and a substantial delay in enforcement to allow homeowners a
reasonable amount of time to plan for the conversion, save funds, and/or make other
arrangements. A specific recommended approach is as follows;
• Loan; Offer loans within the next year to septic tank owners in Atlantic
Beach for the full amount of the conversion cost (impact fee plus
plumbing cost) at a seven percent rate and a 10 year period to pay back
the City: Payments could be made on utility bills to encourage
homeowners to hook up sooner, the loan amount available should be
100 percent of the conversion cost for the first year, but place a cap of
no more than $3,000 in total loan after the end of the first year. That
is to say, if someone did not take out a loan and begin the work within
the first year, loans would still be available but only for an amount not
to exceed $3,000. One important provision to add would be the
requirement to pay back the loan in full if the home is sold..
Refinancings should be allowable without the required payback.
City administration available; For those who request it, the City could
contract directly with plumbers to get the piping done on behalf of the
homeowners. If this option is approved by the Commission, it is
recommended that a small percentage be added to the construction cost
to cover the City's cost for administration and offset and possible
complaints of subsidies fram other City water and sewer customers.
Delay enforcement; A five year delay in enforcement is recommended.
There are many in Atlantic Beach who may need as long as five yeass
to make their financial arrangements and get the work done. Trying to
convert all of the City's 300 septic tanks at one time may drive up
plumbing costs. Any extension of enforcement beyond five years may
not provide the amount of encouragement needed for homeowners to
begin making serious plans for septic tank conversions.
No one wants to spend more than they have to or sooner than they need to. Opposition to
a mandatory hook up policy is understandable. At the same time, owners will bear the
costs sooner or later, and there is an environmental benefit in doing it sooner. The Mayor
and Commission of Atlantic Beach have many options at hand to help its citizens to
m~nim~e the financial impacts of conversion. The task now is to choose the option{s}
that provide the best outcome for the community as a whole.
Jim arson
C' Manager