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Exh 4C~~s 4C May 8, 2000 STAFF REPORT CITY OF ATLANTIC BEACH CITY STAFF REPORT AGENDA ITEM: Septic Conversion Assistance Policy DATE: May 3, 2000 SUBMITTED BY: Jim Hanson, City Manager BACi~GROUND: The City Commission has directed Staff to provide an ordinance regulating the mandatory conversion from private septic tank systems to the City's public sewer system. This proposed Ordinance, No. 80-00-61 is on the agenda for introduction and first reading. It will require many property owners to seek contracting work with plumbers as well as financial assistance to pay for the conversion. Staff has developed a set of policies, copy attached, for the City to use as a guideline for assisting property owners who must comply with the provisions of the ordinance. These policies aze provided for your review and consideration. Upon acceptance of these policies, the City will reintroduce the policies in the form of a resolution to be adopted in concurrence with the final reading of Ordinance No. 80-00-61. BUDGET: The budget impact is not known at this time; however, the City will be paying for the costs of the conversions for those that receive finance assistance. These costs will be paid from existing Reserve Balances of the Sewer Utility Fund. RECONIl~IENDATION: No action requested at 5/8/00 meeting. This item will be considered for adoption at 5/22/00 meeting. ATTACHMENTS: Septic Tank Conversion Assistance Policy 4C May 8, 2000 City of Atlantic Beach, Florida Septic Tank Conversion Assistance Policy Mandatory Conversion from Private Septic Systems to the Public Sewer System The following information is provided as an outline of the City's policies to accommodate those property owners that are required to convert from a private septic system to the City's public sewer system. These policies may be amended or modified by the City Manager as needed. Property Owners affected will be informed by certified letter, from the City Manager, of the requirement to connect to the public sewer system. Tf assistance is requested, Property Owners will be advised to contact the Public Works Department, during regular working hours (7:30am to 4:30pm, Monday thru Friday). This conversion can be accomplished with varying degrees of City provided assistance. The City offers the following assistance to those Property Owners affected by the requirements to connect to the City's public system. No Assistance: For those Property Owners wishing to make the conversion, but do not desire the City's assistance with either the contracting of the work or financing, they may follow the normal process of contracting a plumber and securing the appropriate permits themselves. Contracting Assistance: For those Property Owners who for any reason would like the City to assist with the contracting of plumbers and permit process for them, the City will offer this assistance from its Public Works Department. (SEE CONTRACTING ) Financing Assistance: For those Property Owners who for any reason would like financial assistance with the conversion, the City is prepazed to enter into voluntary assessment agreements to finance the cost of the conversion. {SEE FINANCING) Both: For those Property Owners who for any reason would like assistance with both the contracting and financing of the conversion, the City offers a complete turnkey package to accomplish both. _1 ~C ~y g, Zooo .. ~, a. Conversion from Private Septic System to Public Sewer System Contracting Assistance Policy The following policies will be adopted in conjunction with the City Commission's adoption of Ordinance 80-00-61. All Property Owners required to convert from a private septic system to the City's public sewer system will be notified by certified letter of the program and of its availability upon the passage of the authorizing ordinance. 2. The City will provide assistance in the selection of qualified contractors to work with the City Public Works Department in expediting the conversion process. The contractors will be hired by the Property Owner, not the City. The City will assist in resolving any disputes that may arise due to the City's involvement in the process. 3. Qualified Property Owners must submit an application to receive contracting assistance. The process is intended to assure that Property Owners are fully educated on the process and agree to the terms and conditions. The City will also provide a rough estimate of the total cost of the conversion to the Property Owner to assure an understanding of the magnitude of the commitment. '~4. Approved applications will be batched in economically feasible groups and bundled as Official City of Atlantic Beach Bid Specifications, after which the City will then proceed to advertise and collect bids from certified plumbers. All bids will include permit fees as well as an additional 5% administration fee which will be passed on to the Property Owner. 5. The Property Owner will be given notice of the bid price obtained for abandoning their septic system and to connect to the public sewer system. At this time the Properly Owner will have the option to proceed or to withdraw their application. 6. No contracting work may proceed without approved permits and no work is to be performed without the payment of all fees. 7. The City will offer financing. (SEE FINANCING POLICY ) 8. The Public Works Inspector will answer any questions for homeowners during construction, provide key inspections, and arrange inspection by the Building Department. 9. The Building Department will be responsible for the final inspection. 10. For Property Owners who are not on City water, a City water meter is to be installed on _s ~V May 8, 2000 the private well and the Property Owner mus£ agree to grant access for reading this meter- as abasis for billing sewer services. , 11. The Property Owner will pay $85 for the water meter installation. The meter will remain City property. 12. The Building Department will be responsible for retaining all documents related to the conversion in the permanent building files as a matter of public record. 13. The final inspection report wiIl be copied to the Finance Department for entry into the Utility Billing system. 14. The Property Owner or Tenant will be charged for sewer service beginxung in the following month. i '', Conversion from Private Septic System to Public Sewer System Financing Policy r^, 4C May 8, 2000 The following policies will be adopted in conjunction with the City Commission's adoption of Ordinance 80-00-61. 1. All Property Owner's required to convert from a private septic system to the City's public sewer system will be notified by certified letter of the program and of its availability upon the passage of the authorizing ordinance. 2. Qualified Property Owner will possess the following qualifications: A. The Property Owner must currently be on a private septic system with public sewer available. B. The Property Owner must either: 1) be an existing City water customer, ar, 2) allow a City meter to be installed on the Property Owner's private . well as a basis for billing sewer volume. C. The applicant must be the Property Owner. D. The Property Owner and the tenant must be current on all outstanding amounts owed the City. 3. The financial assistance offered by the City will be in the form of a Voluntary Assessment. 4. The City will enter into a Voluntary Assessment Agreement with the Property Owner on the basis of an application process. This process is intended to assure that the Property Owner is fully educated on the process and that they agree to the terms and conditions of the assessment. 5. All expenses related to the canversion from a private septic tank to the public sewer system are eligible to be included in the assessment for one year. 6. The Voluntary Assessment offer will be reduced to a maxirnum_limit of $3,000 after one year and expire after five years from the passage of the authorizing ordinance. Thereafter, there will be no financing assistance. 7. The City will agree to the Voluntary Assessments with the following terms and conditions:. A. The Property Owner has the option of choosing any length term in 6 4C May 8, 2000 { month increments up to 10 years. B. Payments will be due with the property location City's water and sewer bill, whether or not the Property Owner is the. occupant. The water and sewer bill will reflect the monthly installment amount as a current charge due. C. The terms and conditions for payment are the same as the City's water and sewer bill. D. Utility Services maybe terminated for non-payment. E. The City will place a lien on the property for the duration of the outstanding balance. F. The total Voluntary Assessment will include 7% simple interest. G. There will be no penalty for early payments. Unscheduled payments will be accepted, however adjustments to the agreement will need to be executed. H. The Property Owner will be required to pay 5% of the total balance as a down payment. I. The City Manager, or his designee will be authorized to - sign the agreements up to $10,000. Agreements above $10,000 will require City Commission approval.