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Item 8AM E M O R A N D U M (November 17, 2009) To:Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Subject: Resolution No. 08-050A, Adopt a revised policy which establishes an economic incentive program encouraging connection in a timely manner to the city's waste water system that has been constructed via the neighborhood sewer program and/or a developer constructed project and providing for an effective date Action Requested: Resolution No. 08-050A, Adopt a revised policy which establishes an economic incentive program encouraging connection in a timely manner to the city's waste water system that has been constructed via the neighborhood sewer program and/or a developer constructed project and providing for an effective date. Background Information: The Town of Southlake was incorporated on September 22, 1956 through a special election. At that time, Southlake was a rural area and no nearby regional wastewater treatment facilities were in existence. In December of 1965, the name was changed to the City of Southlake. In July of 1988, the City Council adopted Ordinance No. 440 which required the installation of sewerage collection systems. Up until the beginning of the 1990’s, most of Southlake was served through the use of septic systems contained within each property. In the early 1990’s, a developer extended the sanitary sewer collection system to build the Southridge Lakes Addition. This action spurred additional residential development south of the present day SH 114. Today, the City’s wastewater treatment needs are met by the Trinity River Authority. The area of the city, generally located north of SH 114, sewers to the TRA Denton Creek Wastewater Treatment Plant located in Roanoke, Texas. The area, located generally south of SH 114, sewers to the TRA Central Wastewater Treatment Plant located in Dallas, Texas. The City of Southlake has developed a program referred to as the Neighborhood Sewer Program to bring sanitary sewer collection facilities to the early developed properties that did not have sanitary sewer available at the time of development. The city constructs these improvements primarily through use of funds generated from utility services revenue. While the city makes a significant investment in the construction of these aforementioned facilities, the overall goal of the program is not complete until individual residences and properties connect to the city’s waste water collection system. Therefore, the City Council chose to implement a connection incentive program to encourage residents to make a timely investment in connecting to the newly constructed wastewater collection system in their vicinity through the adoption of Resolution 08-050 on January 6, 2009. A Neighborhood Sewer Program (NSP) connection incentive for all future projects will be offered in the form of the waiver of the current sanitary sewer tap fee at the time of the program offering. As you may recall, Resolution 08-050 called for an amendment to the Neighborhood Sewer Program (NSP) connection incentive program in several ways: The authority to implement this program will be delegated to Public Works staff; The $1300 Neighborhood Sewer Program (NSP) program participation fee established under Resolution 95-28, adopted on July 18, 1995 is repealed as part of this resolution; A wastewater impact fee (current fee, may change in the future) of $1,141.80 will be charged as part of each connection to the city’s sewer system; and, The incentive program will be a one-time offering to residents once the sanitary sewer mains are fully constructed and accepted that serve their property and will be available for a period of 180 days. The affected residents will be notified in writing as to the conditions, provisions and term of the incentive program offering. During this 180-day period, the NSP program application must be made, plumbing permit application made and construction completed; A hardship opportunity for the Neighborhood Sewer Program (NSP) connection incentive program for elderly and disabled persons is made available at any time as part of the Resolution. There are no changes proposed in the amendment of Resolution 08- 050 other than the duration of the connection incentive period. In the e original Resolution No. 08-050, the duration of the connection incentive period is 180 days from the date of acceptance of the sanitary sewer improvements by the city. Some of the residents of the Woodland Heights Addition are requesting the City Council consider an extension of the 180 day connection incentive period. Financial Considerations: The cost of installing the neighborhood sewer represents a significant investment of public dollars. These improvements are funded through the city’s Capital Improvement Program (CIP). An extension of the connection incentive program should have no fiscal impact of the program. Strategic Link: The Neighborhood Sewer Program (NSP) connection incentive program links to the city’s strategy map relative to the focus areas of Infrastructure and Performance Management and Service Delivery. The specific corporate objectives that are met by the Neighborhood Sewer Program (NSP) include: Collaborating with select partners to implement service solutions, Providing High Quality Customer Service and Investing to provide and maintain high quality public assets. Citizen Input/ Board Review: None Legal Review: None Alternatives: The City Council may approve an amendment to Resolution 08-050 establishing a revised Neighborhood Sewer Program (NSP) connection incentive period or deny it. Supporting Documents: Resolution 08-050A Neighborhood Sewer Program (NSP) Connection Incentive Policy Project Schedule: The Neighborhood Sewer Program (NSP) connection incentive program period for the Woodland Heights Addition began on May 20, 2009 and was originally scheduled to end on November 16, 2009. At the November 3, 2009 City Council Meeting, City Council instructed staff to stay the scheduled end of the connection incentive program until the Council could further discuss this item on the November 17, 2009 agenda. The connection incentive period will be extended in accordance with the time provision City Council directs in the amendment of resolution 08-050A.This same time period will be used for all future Neighborhood Sewer Program (NSP) connection incentive programs. Staff Recommendation: Staff recommends consideration of Resolution 08-050A and the associated Neighborhood Sewer Program (NSP) Connection Incentive Program policy. Staff Contact: Robert H. Price, P.E., Director of Public Works Gordon J. Mayer, Jr., P.E., Deputy Director RESOLUTION NO. 08-050A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS ADOPTING A POLICY WHICH ESTABLISHES AN ECONOMIC INCENTIVE PROGRAM ENCOURAGING CONNECTION IN A TIMELY MANNER TO THE CITY’S WASTE WATER SYSTEM THAT HAS BEEN CONSTRUCTED VIA THE NEIGHBORHOOD SEWER PROGRAM AND/OR DEVELOPER CONSTRUCTED PROJECT AND PROVIDING AN EFECTIVE DATE. WHEREAS , a Home Rule Charter of the City of Southlake was approved by the voters in a duly called Charter Election on April 4, 1987 pursuant to Article IX, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and, WHEREAS , the City Council recognized the importance of requiring the installation of sewerage collection systems and requiring connection to the City’s sewer system within 90 days upon the availability of service by approving Ordinance No. 440 on July 5, 1988 and subsequently revising it by approving Ordinance No. 514 on August 21, 1990; and, WHEREAS, the City Council recognizes the importance of constructing additions to the sanitary sewer infrastructure system by dedicating significant funding toward the construction of said sanitary sewer infrastructure improvements within neighborhoods which do not have access to the city’s sanitary sewer system; and, WHEREAS, the CityCouncil recognizes that in order to provide for the general welfare, health and safety of the citizens of Southlake, it is essential for properties which are served by other waste disposal methods, more specifically, by underground septic systems be connected to the city’s sanitary sewer system as soon as it has been made available; and, WHEREAS , the City Council recognizes that it is within their powers authorized by Ordinance 440 and 514 to mandate connection to the city’s sanitary sewer system; and WHEREAS , the City Council recognizes that a financial burden is placed on property owners at the time of connection to the sanitary sewer system; and, WHEREAS , the City Council desires to encourage property owners to connect in a timely manner to any newly constructed sanitary sewer system improvements made available within 100 feet of their property; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. All of the findings in the preamble are found to be true and correct and the City Council hereby incorporates said findings into the body of this resolution as if copied in its entirety. SECTION 2. TheCouncil hereby directs staff to implement a policy establishing an incentive program encouraging property owners to connect to sanitary sewer improvements within 180 days of the sewer being made available for connection. The date that sewer is made available is hereby established as the date of acceptance of the infrastructure improvements by the Public Works Department. SECTION 3. City staff is hereby authorized by the City Council to establish, in accordance with the terms of said policy, a connection incentive program for future Neighborhood Sewer Programs (NSP) and/or Developer constructed projects in order to encourage timely connection to the city’s sanitary sewer system. SECTION 4. The Neighborhood Sewer Program Participation Fee of $1300 established in Resolution 95-28, adopted on July 18, 1995 is hereby repealed. However, before a service connection can be made to the city’s sanitary sewer system, a Neighborhood Sewer Program (NSP) Application Fee shall be paid at the time of application. In addition, any applicable wastewater impact fee must also be paid. If Neighborhood Sewer Program (NSP) application is made and found to meet all conditions as outlined, an incentive is exercised by means of this aforementioned policy, the sanitary sewer tap fee will be waived as the incentive for a timely connection. Application and connection must occur within 180 days of accepting the sanitary sewer improvements which serve the subject property. SECTION 5. Furthermore, Council authorizes the Director of Public Works to offer the Neighborhood Sewer Program (NSP) connection incentive at any time to any elderly and disabled individuals residing in the city, provided such residents have a household income which is less than two hundred percent (200%) of the Federal Poverty Level. SECTION 6. The policy, attached hereto, as adopted by City Council shall be kept on file in the office of the City Secretary of the City of Southlake, along with a copy of the resolution of the Council so adopting or approving the same. SECTION 7. This resolution shall become effective on the date of approval by the City Council. rd PASSED AND APPROVED THIS 3 DAY OF November, 2009. CITY OF SOUTHLAKE By: John Terrell, Mayor ATTEST: Lori Payne, TRMC City Secretary City of Southlake Policies and Procedures Policy: Sanitary Sewer Connection Incentive Program Approved By: City Council Category: Administrative Effective Date: January 6, 2009 (Resolution 08-050) Revised Date: -- I. Statement of Purpose The Town of Southlake was incorporated on September 22, 1956 through a special election. At that time, Southlake was a rural area and no nearby regional wastewater treatment facilities were in existence.In December of 1965, the name was changed to the City of Southlake. In July of 1988, the City Council adopted Ordinance No. 440 which required the installation of sewerage collection systems. Up until the beginning of the 1990’s, most of Southlake was served through the use of septic systems contained within each property. In the early 1990’s, a developer extended the sanitary sewer collection system to build the Southridge Lakes Addition. This action spurred additional residential development south of the present day SH 114. Today, the City’s wastewater treatment needs are met by the Trinity River Authority. The area of the city, generally located north of SH 114, sewers to the TRA Denton Creek Wastewater Treatment Plant located in Roanoke, Texas. The area, located generally south of SH 114, sewers to the TRA Central Wastewater Treatment Plant located in Dallas, Texas. The City of Southlake has developed a program referred to as the Neighborhood Sewer Program to bring sanitary sewer collection facilities to the early developed properties that did not have sanitary sewer available at the time of development. The city constructs these improvements primarily through use of funds generated from utility services revenue. While the city makes a significant investment in the construction of these aforementioned facilities, the overall goal of the program is not complete until individual residences and properties connect to the city’s waste water collection system. Therefore, the City Council has chosen to implement a connection incentive program to encourage residents to make a timely investment in connecting to the newly constructed wastewater collection system in their vicinity. The incentive program shall be administered by the staff under the terms established in this policy. II. Definitions A. Neighborhood Sewer Program – A specific type of Capital Improvement Program which provides for the construction of sanitary sewer collection facilities and appurtenances in order to provide a specified area of the city with the ability to collect sanitary sewerage from specific properties and convey the sewerage to a treatment facility. B. Capital Improvement Program -A plan, adopted by the City Council, on an annual basis which establishes a five (5) year funding schedule for the purchase, construction or replacement of physical assets of the City. C. Developer Constructed Project – For purposes of this policy, a project constructed and funded, in part or in entirety, by a developer in which on-site and/or off-site public sanitary sewer improvements are made available for connection by property owners located outside of the perimeter of the subject addition. D. Disabled Person – means any person who suffers from a disability as defined by the Americans with Disability Act of 1990, 42 U.S.C. Sections 12101, et seq., as amended. E. Elderly Person – means any person who is sixty-five (65) years of age or older. F. Fee Schedule – For purposes of this policy, the most recent document, adopted and amended, by the City Council which establishes various fees charged to users of city services. G. Tap Inspection Fee - a fee established for City of Southlake staff to inspect a connection by a licensed Plumber to the City’s sanitary sewer collection system for the purpose of insuring appropriate connection methods to prevent escape of sanitary sewer flow from the collection system. The fee is adopted annually as part of the fee schedule. Generally speaking, city staff does not construct sanitary sewer taps. H. Sanitary Sewer Tap Fee – a fee which represents the cost of constructing the actual sanitary sewer tap and service line extension to the property line. This fee is established by the annual city fee schedule. I. Participation Fee - This is the amount that has been determined that is required for connection to the city’s waste water collection system that has been installed via the Neighborhood Sewer Program. The current participation fee is indicated on the city’s fee schedule adopted by the City Council. This participation fee was adopted by the City Council on July 18, 1995 by Resolution No. 95-28. This fee is repealed by Resolution 08-050. J. Sanitary Sewer Impact Fee – a fee established by the City Council, authorized under Chapter 395 of the Texas Local Government Code, as amended (“Chapter 395”) and by the Southlake City Charter which is imposed to finance public facilities, the demand for which is generated in a designated service area. K. Septic to Sewer – The process of transferring a property’s waste disposal system from a septic system to connecting to the city’s waste water collection system. III. Authorization of Staff Administration of Program The staff is authorized by this policy to administer the Sanitary Sewer Connection Incentive Program thus establishing the term of the incentive program associated with specific Neighborhood Sewer program projects. IV. Applicability of Fees An individual connection requires the payment of fees applicable to the conditions of the connection. Not all fees defined in this policy will be charged for each connection. The fees required may also be based on the manner of construction and conditions surrounding the financing method (i.e., developer vs. CIP), of constructing the sanitary sewer main. A wastewater impact fee is to be paid at all times. V. Incentive The incentive offered will be in the form of a waiver of the current wastewater tap fee at the time of connection as established in the city’s fee schedule. The amount of the Tap fee is defined by the latest version of the annual Fee Schedule adopted by the City Council. This incentive offered is for a specific project and is offered for a limited time defined in Section VI of the policy. Connection to other previously constructed sanitary sewer facilities are not available for the incentive offer unless authorized specifically by the City Council under other circumstances outlined by action other than this policy. VI. Duration of Incentive Offer The duration of the above mentioned sanitary sewer connection incentive offer is limited to 180 days from the date of acceptance of the public improvements for an individual project. A Plumbing Permit application must be completed by a Licensed Plumber with the Building Inspection Department prior to the expiration of the 180 days. The actual connection work must also be completed within the 180 days in order to receive the incentive offer. Notification of the Neighborhood Sewer Program (NSP) connection incentive program to the affected property owners will be via certified mail. VI. Director of Public Works Authorized to Extend Incentive The Director of Public Works is authorized under this policy to extend the Neighborhood Sewer Program (NSP) connection incentive to any elderly and disabled individuals residing in the city at any time, provided such residents have a household income which is less than two hundred percent (200%) of the Federal Poverty Level. Application for the Neighborhood Sewer Program (NSP) connection incentive program hardship extension shall be made to the Public Works Department. The applicant will need to demonstrate the ability to meet the aforementioned conditions by submitting documentation (i.e., drivers license or other ID, last year’s federal tax return) which meets the conditions outlined for this provision.