OSS Management Plan Program Funding
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1 Thurston County Public Health and Social Services OSS Management Plan Program Funding Thurston County OSS Management Plan Advisory Committee Environmental Health Division April 3, 2014
2 OSS Plan Requirements in State Law (WAC A-0015 & RCW A) Health officers shall develop a plan that: Identifies areas where OSS pose an increased public health risk; Identify O&M requirements commensurate with public health risks; Educate homeowners regarding their responsibilities to monitor and maintain their OSS; Remind and encourage people to inspect, monitor and maintain their OSS as required by state law; and, Enforce permit application, O&M, and failure repair requirements Within MRAs Find failing systems and ensure they are repaired; and, Find unknown systems and ensure that they are inspected and functioning properly, and repaired if necessary.
3 Thurston County Programs Programs in place to comply with State Law: Operational Certificates Time of Transfer Pumper Report Marine Recovery Areas (Henderson and Nisqually) Grants
4 Program Links to State Requirements Program Pumper Report Marine Recovery Areas Grants Purpose Find failing systems and ensure they are repaired Find unknown systems Also provides data to help evaluate programs Identify OSS risk areas O&M requirements commensurate with risks Educate homeowners Remind and encourage people to inspect, etc. Enforce permit application, O&M, and failure repair requirements Find failing systems and ensure they are repaired Find unknown systems All of the above plus Evaluate areas and develop new programs Funding basic OSS education
5 Program Links to State Requirements Program Operational Certificates Time of Transfer Purpose O&M requirements commensurate with risk Educate homeowners Remind and encourage people to inspect, etc. Enforce permit application, O&M, and failure repair requirements Find failing systems and ensure they are repaired O&M requirements commensurate risks Educate homeowners Remind and encourage people to inspect, etc. Enforce permit application, O&M, and failure repair requirements Find failing systems and ensure they are repaired Find unknown systems
6 Activity Operational Certificates -Renewal Operational Certificates - MRA Operational Certificates New OPC Inspection Reports 2013 O&M Activities Number of Activities Cost Revenue 1,150 $120/$61 $ 112,562 2,555 $37 - $135/year $ 466, $155 $ 19,666 3,527 (county) 2,588 (MRA) Time of Transfer 1,497 $205 $ 303,000 Pumper Report 7,192 $15 $ 85,860 Grants $ 475,000 TOTAL $1,462,096
7 Issues Equity & Fairness Nickel and Dime OSS owners receive different services/service levels Concern of Board of Health (2010) Gaps Larger need for enhanced programs Most don t participate max of 10,000 OSS evaluated in 2013 Sustainability Staffing and Management billing, collections and record management Fee limitations
8 And how did you arrive at 10,000? OSS INSPECTIONS IN THURSTON COUNTY 2013 Estimate Pump Jobs 7192 Pumps for OPC Pumps for TOT Remaining Pump Jobs 2700 Inspections OPC Renwal 6115 TOT Remaining Pump Jobs TOTAL INSPECTIONS 10312
9 Does any county have the answer?
10 Local Septic Management Program Needs Assessment (DoH) Purpose Identify & assess funding needs of the Local Health Jurisdictions septic management programs Key questions: What does it cost to implement your current program? What would it cost to both fully implement your management plan and comply with state requirements and targets?
11 Different Approaches Clean Water Fee (Island & Skagit) Surface and Stormwater fee Shellfish district (Thurston) Annual OSS fee via p-tax (San Juan and Whatcom) Grants State Funding???
12 Different Funding Approaches Kitsap - Surface and Stormwater Management Utility Fee - Fee assessed to developed property and roads in unincorporated county rate was $73.50 per year for a single-family residence. 14% of revenue goes to the Health District. Skagit - Clean Water Program Fee: Program established in 2005 to perform essential water quality activities funded by reasonable fees and charges related to density of development and impervious surfaces. Current rate is $28.01 per parcel for a single-family residence and $34.53 for 2-4 units.
13 Different Funding Approaches Island - Clean Water Utility Fee: Fees from property owners fund specific surface water and ground water programs. 13% of the amount collected funds OSS. Thurston Henderson Watershed Protection Area: Started in Annual fees for 2014 are: Low-risk Systems - $36 per year; High-risk Systems - $100 per year. Thurston Nisqually Reach: Started in 2013, modeled after Henderson. Base rate - $60, $10 for every additional septic system. High risk systems - $135.
14 Different Funding Approaches Annual OSS Fees (charged via Property Tax Statement) San Juan $10 per parcel beginning in 2014, to administer and operate the OSS program management plan for the coming year. Their Board desired a program that reasonably charges all OSS owners to implement the OSS management plan. Board found previous method of collection was inequitable and placed a burden on those that comply. Whatcom Charge $19 per household to provide a more stable funding source and evenly distribute the cost of the program to all OSS owners. In addition, this method of fee collection will be more efficient, by eliminating staff time for receipting of individual reports and billing licensed pumpers.
15 Variations in funding sources Preliminary Data Local Septic Management Program Needs Assessment
16 How Counties Currently Fund O&M Programs Preliminary Data Local Septic Management Program Needs Assessment
17 Percent (%) of annual need being met Preliminary Data Local Septic Management Program Needs Assessment
18 Additional Funding Needs Preliminary Data Local Septic Management Program Needs Assessment
19 County Total Annual Need by County Current Annual Expenditures Additional Annual Need Total Annual Need (Current Exp. and Add. Need) Total Septic Systems Total Annual Need/Total Septic Systems Clallam $144,000 $576,000 $720,000 20,007 $35.99 Island $431,336 $862,671 $1,294,007 34,117 $37.93 Jefferson $249,377 $174,565 $423,942 13,500 $31.40 King $438,485 $1,542,700 $1,981, ,500 $12.58 Kitsap $369,190 $632,500 $1,001,690 54,000 $18.55 Mason $257,025 $146,930 $403,955 25,735 $15.70 Pierce $1,940,709 $374,435 $2,315, ,028 $21.04 San Juan $203,375 $134,500 $337,875 8,600 $39.29 Skagit $420,800 $428,300 $849,100 13,500 $62.90 Snohomish $276,200 $1,402,000 $1,678,200 78,000 $21.52 Thurston $1,256,435 $1,479,524 $2,735,958 70,000 $39.09 Whatcom $443,250 $0 $443,250 27,564 $16.08 average/oss/county: $29.34 TOTAL $6,544,185 46% of total $7,754,124 54% of total $14,184,305 total need 612,551 total OSS average/oss/region: $23.16 Preliminary Data - Local Septic Management Program Needs Assessment
20 Thurston Cost Assumptions (for DoH study) Implement MRAs in watersheds as needed Henderson, Nisqually, Eld and Totten and one other area (Budd or Summit) Efficient county wide inspection reminder system for all OSS Increased educational offerings (across county) Improve on-line reporting
21 Conclusion: Funding Issues are Not Unique to Thurston Puget Sound counties mix and match funding to support programs Little consistency between programs in terms of program design funding level and funding strategy 11 of 12 do not have the resources to fully implement their OSS management plan
22 What should we do? Is there a better way? Is current program fair? Application Fee? Annual Charge via property tax? Both? What should the County fund?
23 Assumptions Grants are diminishing EPA NEP grants fund source likely ends in 2 years DoH grants ($45K) are subject to approval by legislature DoH financing project uncertain Likely take another year to complete Funding requires legislative approval and budget authority, which will be challenging
24 Assumptions County or General Government Funding Very Unlikely OSS plan and programs need to pay for themselves
25 Alternate Program Expand program to serve all OSS Owners Pay for baseline programs via charge on property tax statement that covers Time of Transfer Operational Certificates Pumper Reports Education and Outreach Compliance
26 County Total Annual Need by County Current Annual Expenditures Additional Annual Need Total Annual Need (Current Exp. and Add. Need) Total Septic Systems Total Annual Need/Total Septic Systems Clallam $144,000 $576,000 $720,000 20,007 $35.99 Island $431,336 $862,671 $1,294,007 34,117 $37.93 Jefferson $249,377 $174,565 $423,942 13,500 $31.40 King $438,485 $1,542,700 $1,981, ,500 $12.58 Kitsap $369,190 $632,500 $1,001,690 54,000 $18.55 Mason $257,025 $146,930 $403,955 25,735 $15.70 Pierce $1,940,709 $374,435 $2,315, ,028 $21.04 San Juan $203,375 $134,500 $337,875 8,600 $39.29 Skagit $420,800 $428,300 $849,100 13,500 $62.90 Snohomish $276,200 $1,402,000 $1,678,200 78,000 $21.52 Thurston $1,256,435 $1,479,524 $2,735,958 70,000 $39.09 Whatcom $443,250 $0 $443,250 27,564 $16.08 average/oss/county: $29.34 TOTAL $6,544,185 46% of total $7,754,124 54% of total $14,184,305 total need 612,551 total OSS average/oss/region: $23.16 Preliminary Data - Local Septic Management Program Needs Assessment
27 Options Using current methods about 5% of OSS are high risk systems that require dye tracing Do we charge everyone the same amount? Should high risk pay more? In Henderson and Nisqually High risk systems pay considerably more
28 Flat Rate or Two Tier Two Alternatives Flat rate Charge of $40/year per OSS Two Tier Most systems pay $36/year High risk systems (5% of total) charged $100/year Additional cost funds dye tracing every 6 years High risk systems are shoreline systems that require periodic dye tracing Examples compare costs for 10 years of OSS ownership Both examples return Total Annual Need in DoH study ($2,736,000/year) UPDATED
29 CORRECTED Comparisons Flat Rate Home in Nisqually MRA Low Risk Activity Cost Number Total Annual OPC $60 10 $600 Current Pump Report $15 2 $30 Time of Transfer $205 1 $205 Grand Total $835 -vs- Alternative Annual Charge $40 10 $400 Grand Total $400
30 CORRECTED Comparisons Two Tier Home in Nisqually MRA Low Risk Activity Cost Number Total Annual OPC $60 10 $600 Current Pump Report $15 2 $30 Time of Transfer $205 1 $205 Grand Total $835 -vs- Alternative Annual Charge $36 10 $360 Grand Total $360
31 CORRECTED Comparisons Flat Rate Home in Nisqually MRA High Risk Activity Cost Number Total Current Annual OPC $ $1350 Pump Report $15 2 $30 Grand Total $1380 -vs- Alternative Annual Charge $40 10 $400 Grand Total $400
32 CORRECTED Comparisons Two Tier Home in Nisqually MRA High Risk Activity Cost Number Total Current Annual OPC $ $1350 Pump Report $15 2 $30 Grand Total $1380 -vs- Alternative Annual Charge $ $1000 Grand Total $1000
33 CORRECTED Comparisons Flat Rate SF Home with Operational Certificate Activity Cost Number Total Current Annual OPC $120 3 $360 Pump Report $15 2 $30 Time of Transfer $205 $205 Grand Total $595 Alternative -vs- Annual Charge $40 10 $400 Grand Total $400
34 CORRECTED Comparisons Two Tier SF Home with Operational Certificate Activity Cost Number Total Current Annual OPC $120 3 $360 Pump Report $15 2 $30 Time of Transfer $205 $205 Grand Total $595 Alternative -vs- Annual Charge $36 10 $360 Grand Total $360
35 CORRECTED SF Home Comparisons Flat Rate Activity Cost Number Total Current Pump Report $15 3 $45 Time of Transfer $205 $205 Grand Total $250 -vs- Alternative Annual Charge $40 10 $400 Grand Total $400
36 CORRECTED SF Home Comparisons Two Tier Activity Cost Number Total Current Pump Report $15 3 $45 Time of Transfer $205 $205 Grand Total $295 -vs- Alternative Annual Charge $36 10 $360 Grand Total $360
37 Pros and Cons Pros Equitable and Fair One charge pays for most services More services to OSS owners Fills Gaps All areas with increased risk addressed over time More services and assistance to all OSS owners = greater participation Sustainable More efficient Reduces staff time and resources needed for billing and collections It s legal!
38 Pros and Cons Cons Looks like a tax Public perception Will services be commensurate with charges? Cost creep Accountability It s still looks like a tax
39 Questions and Suggestions?
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