TOWN OF HILLSBOROUGH Compliance with Regulatory Mandates. Private Sewer Lateral Inspection and Repair Program

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1 TOWN OF HILLSBOROUGH Compliance with Regulatory Mandates Private Sewer Lateral Inspection and Repair Program

2 SEWER SYSTEM- BACKGROUND 116 miles of gravity sanitary sewer pipelines 1 mile of force main 4 pump stations Minimum half acre lots-3,900 accounts Long laterals, sloped lots with large number of trees 65% of flow goes to San Mateo for treatment 35% of flow goes to Burlingame for treatment 2

3 SEWER SYSTEM SERVICE AREA MAP 3

4 INFILTRATION AND INFLOW 4

5 SEWER SYSTEM IMPROVEMENTS PRIOR TO 2009 Bond Financing of over $16 million in sewer system repairs and upgrades from 2002 to Requirements for testing of all laterals at point of sale. Sewer Backflow preventer installation program with a $500 incentive from Town. 5

6 SEWER SYSTEM- THE PROBLEM 89 Sanitary Sewer Overflows (SSO s) between December 2004 and January SSO s prohibited by State s General Waste Discharge Requirements(WDR s) and RWQCB s San Francisco Bay Basin Plan. WDR s and Basin Plan provide RWQCB authority to levy fines and require corrective measures. 6

7 SANITARY SEWER OVERFLOWS 7

8 RWQCB ENFORCEMENT ACTIONS Administrative Civil Liability Complaint- September 2008 Settlement Agreement- January 2009 $405K Penalty Assessed for 89 SSO s $120K to SWRCB Clean Up and Abatement Account $60K to SWRCB Waste Discharge Permit Fund $225K for Supplemental Environmental Project Private Sewer Lateral Inspection and Rehabilitation Program Eliminates further liability for past 89 SSO s Cease and Desist Order (CDO)- March

9 BAYKEEPER AGREEMENT Expands Town s maintenance requirements and commitments to Burlingame Sewershed. 5 Year Agreement Term. Requires Systematic Reductions in SSO s: Maximum 30 SSO s/yr in 2009 reduced to 5 SSO s/yr in 2014, and ultimately to zero. Requires sewer system condition assessment and cleaning/maintenance program. 9

10 SEWER PROGRAM- REGULATORY DRIVERS POST CDO Flow monitoring and hydraulic modeling of the sewer sheds. Peaking factors ranging from 3 to 53 in various basins. Completed TV inspection/condition assessment of all sewer mains utilizing NASSCO s standards for defects. Downstream capacity improvements not feasible for all sewersheds.. 10

11 Flow Peaking Factors from 3 to 53 in Sub-Basins

12 SEWER LATERAL PROGRAM- REGULATORY DRIVERS Private Sewer laterals can be a significant contributor to peak wet weather flows. Compliance can not be accomplished without repair or replacement of lateral. The upper and lower laterals are owned and maintained by property owner. 12

13 LOCATION OF LATERALS INSPECTED OR REPAIRED POINT OF SALE 13

14 TYPICAL TIMELINE FOR COMPLETE BASIN I/I REHABILITATION How can we determine actual I/I contribution from laterals in Hillsborough? 3+ years typically required to fully quantify benefits associated with complete I/I rehabilitation. First Winter: Monitoring of existing conditions First Summer: Repairs of sewer mains and lower laterals Second Winter: Monitor improved conditions Percentage of I/I removed by rehabilitation of mains only Second Summer: Repair of private sewer laterals Third Winter: Monitoring of further improvements Amount of I/I removed due to lateral rehabilitation Total amount of I/I removed 14

15 PERCENTAGE CONTRIBUTION TO I/I FROM PRIVATE SEWER LATERALS? Past studies report that 30%-80% of I/I is attributable to private sewer laterals. I/I rehabilitation programs in some jurisdictions have shown: 5%-40% I/I removal when sewer mains, manholes and lower laterals are rehabilitated 50%-70% I/I removal when sewer mains, manholes, lower and upper laterals are rehabilitated The connection of the lateral to the sewer main is a major source of infiltration- the lower laterals and the sewer main must be rehabilitated at the same time in order to achieve optimal I/I removal. Contribution from laterals in Hillsborough likely to be on the higher end of range due to large lot sizes (longer upper laterals). 15

16 PRIVATE SEWER LATERAL REPAIR AND REPLACEMENT PROGRAM Establish priority basins where downstream capacity improvements are not cost effective. Repair and replace all public mains in a twenty to thirty year cycle depending on availability of funds. Provide incentives to property owners to replace their laterals at the same time as Town is retrofitting public sewers. These incentives will be offered at time each basin is being rehabilitated by Town. Continue inspection and repair of laterals at point of sale and major improvements to property. 16

17 PRIVATE SEWER LATERAL INSPECTION AND REPAIR PROGRAM 17

18 LATERAL REPLACEMENT COSTS Current Town Permit fees: Street Encroachment Permit - $609 Easement Encroachment Permit - $511 On-site Plumbing Permit - $212 Lateral Replacement costs: Upper and Lower Lateral including fees - $6,000 to $8,000 (includes Permit fees and $2,000 for contractor mobilization) Upper Lateral only - $3,000 to $5,000 If Contractor is already mobilized for Town sewer main repair/replacement and Permit fees are waived, cost for Upper Lateral replacement can be reduced by 25%-50% 18

19 PRIVATE SEWER LATERAL REPAIR INCENTIVES Town will offer free video inspection of private sewer laterals for priority basins. Town will replace the lower lateral to ensure a water tight connection to public sewer main and install a two way clean out within the right of way. Town will waive all permit fees if the home owner elects to repair/replace lateral at the same time Town is performing it s upgrade. Town will provide a bid from the Town s contractor to repair upper lateral at the homeowner s expense. Town offers a two year revolving loan for the repair of upper laterals. 19

20 PRIVATE SEWER LATERAL INSPECTION AND REPAIR ORDINANCE KEY PROVISIONS Compliance Certification New or entirely replaced laterals: 20 year certification Laterals passing pressure test and video inspection but not repaired: 10 year certification Laterals that are repaired: 10 year certification Laterals fully replaced or newly installed within last 5 years : 20 year from date of installation Homeowner remains responsible for maintenance of lower and upper lateral. 20

21 PRIVATE SEWER LATERAL ORDINANCE This Ordinance can be downloaded at the Town of Hillsborough web site: blobdload.asp?blobid=4640 Public Outreach A focused public outreach program was conducted with many community and City Council meetings prior to adoption of this ordinance. 21

22 FINANCING OF SEWER IMPROVEMENTS Sewer fund revenues from service charges is typically the only source of revenue to fund operations (collection system, treatment) and Capital Improvements Program (CIP). Sewer service charges are to be set according to Proposition 218 requirements. The sewer service charge rate setting should include Debt service coverage, reserve policies, operating costs and CIP for the next 3 years. 22

23 CAPITAL IMPROVEMENT FUNDING OPTIONS Bond Financing: Requires credit rating of the agency to establish adequacy of service charges to pay for the CIP (Prop 218) and past financial performance of the agency. State Revolving Funds Loan: Requires review of the agency credit relating to sewer service charges (prop 218) and CEQA-Plus. Pay as you go: It will limit the delivery of projects according to revenues set by Prop 218 process. 23

24 PROP 218 PROCESS RECOMMENDATIONS Updated CIP and Master Plan with up to date project costs to include all soft costs. Public outreach strategy to community, agency board and other stakeholders. Avoid large sewer rate increase and have at least 3 years of rate increase in the 218 process. Get to know your Finance Director well. 24

25 CONCLUSION Incentives to property owners such as waiving permit fees and offering free video inspections is an effective tool in upgrading private laterals. With an aging sewer collection system and SSO s, many communities similar to Hillsborough will have to spend tens of millions of dollars in upgrading their sewer system to a reliable and sustainable condition in order to minimize SSO s in the future. Cost effective I&I reduction will require public and private coordination with a focused outreach program to motivate private property owners to test, repair and/or replace their laterals. 25

26 Thank You QUESTION & ANSWERS Contact me at :

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