Sanitary Sewer Connection PolicMEMORANDUM
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
December 13, 2001
SUBJECT: Revision to Policy Establishing Limits on Sanitary Sewer Connection
Costs
In December of 1994, the City Council directed staff to enforce connection to sanitary
sewers for properties that are currently within 200 feet of a public sanitary sewer main.
The City Council adopted several ordinances relating to the abandonment of septic tank
systems. Since December of 1995, 104 properties within 200 feet of the City's existing
sanitary sewer system have connected to the public system. Approximately 70
additional properties will be given notice to connect over the next four to five years.
On September 16, 1996; the City Council approved the current policy, which
established a cap of 15% of the assessed valuation for a property owner's financial
participation for connection to the City sewer main. If the property owner's cost to
connect exceeds the 15% limit, the City will waive the excess connection charge. Due
to the problems that have developed since the adoption of the program in 1996,
Assistant City Engineer Gus Psihoyos is recommending the following changes:
Because of inconsistencies with private bids due to exclusions and additions, it is
often difficult for the Engineering Division to determine the Iow bid provided by
private contractors. Therefore, it is recommended that the City administer the
bidding process for property owners. It is also recommended that property
owners be required to meet with the Engineering Division within 46 days after
receipt of the notice from the Health Services Department to connect to the
public sewer.
It is recommended that the policy be revised to limit the City's exposure to non-
sewer costs, such as retaining walls, driveways, landscaping, etc., that need to
be replaced or repaired as a result of the construction.
Some properties are under-assessed and thus, for purposes of the 15% limit, it is
recommended that the policy be revised to allow the Engineering Division to hire
an appraiser to determine the value of the property.
I concur with the recommendations and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, Assistant City Engineer
CITY OF DUBUQUE, IOWA
MEMORANDUM
December 11, 2001
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Gus Psihoyos, Assistant City Engineer
Revision to Policy Establishing Limits on Sanitary Sewer Connection
Costs
INTRODUCTION
Attached is the revised City policy for maximum limits on the financial obligation of
a property owner who is required to connect to the City's sanitary sewer system
when the property is within 200 feet of an existing sewer.
BACKGROUND
In December of 1994, the City Council directed staff to enforce connection to
sanitary sewers for properties that are currently within 200 feet of a public sanitary
sewer main. The City Council adopted several ordinances relating to the
abandonment of septic tank systems. Since December of 1995, 104 properties
within 200 feet of the City's existing sanitary sewer system have connected to the
public system. Approximately 70 additional properties will be given notice to
connect over the next four to five years.
The City, in most cases, charges a connection fee to connect to the City sewer
system if the property has not previously been assessed or the property owner has
not previously paid for the sewer. This connection fee allows the City to recoup
the past expense of constructing the sewer line in the street. The cost of the
sewer lateral to the property owner's house is also an additional expense to the
property owner.
DISCUSSION
On September 16, 1996, the City Council approved the current policy, which
established a cap of 15% of the assessed valuation for a property owner's financial
participation for connection to the City sewer main. If the property owner's cost to
connect exceeds the 15% limit, the City will waive the excess connection charge,
if any. In any case where the costs exceed 25% of the assessed value of the
property, the City Manager may determine whether to require the property owner
to replace the septic system in lieu of connecting to the City sanitary sewer.
The Fiscal Year 2001 expenditure was $47,210 for such connections. In addition
to the 15% policy, Iow- to moderate-income homeowners are eligible under a City
Housing Program for a forgivable $4,500 loan.
Due to the problems that have developed since the adoption of the program in
1996, the following changes are recommended:
Because of inconsistencies with private bids due to exclusions and additions,
it is often difficult for the Engineering Division to determine the Iow bid
provided by private contractors. Therefore, it is recommended that the City
administer the bidding process for property owners. It is also recommended
that property owners be required to meet with the Engineering Division
within 45 days after receipt of the notice from the Health Services
Department to connect to the public sewer.
It is recommended that the policy be revised to limit the City's exposure to
non-sewer costs such as retaining walls, driveways, landscaping, etc. that
need to be replaced or repaired as a result of the construction.
Some properties are under-assessed and thus for purposes of the 15% limit,
it is recommended that the policy be revised to allow the Engineering
Division to hire an appraiser to determine the value of the property.
RECOMMENDATION
The City Council is requested to concur in the recommended changes. Section 44-
14 of the Code of Ordinances of the City of Dubuque authorizes the City Manager
to adopt such sewer connection standards.
ACTION TO BE TAKEN
The City Council is requested to concur in the recommended changes.
G P/vjd
cc: Michael A. Koch, Public Works Director
David Harris, Housing & Community Development
Mary Rose Corrigan, Public Health
property, the City Manager may determine whether to require the property owner
to replace the septic system in lieu of connecting to the City sanitary sewer.
The Fiscal Year 2001 expenditure was $47,210 for such connections. In addition
to the 15% policy, low- to moderate-income homeowners are eligible under a City
Housing Program for a forgivable $4,500 loan.
Due to the problems that have developed since the adoption of the program in
1996, the following changes are recommended:
Because of inconsistencies with private bids due to exclusions and additions,
it is often difficult for the Engineering Division to determine the Iow bid
provided by private contractors. Therefore, it is recommended that the City
administer the bidding process for property owners. It is also recommended
that property owners be required to meet with the Engineering Division
within 45 days after receipt of the notice from the Health Services
Department to connect to the public sewer.
It is recommended that the policy be revised to limit the City's exposure to
non-sewer costs such as retaining walls, driveways, landscaping, etc. that
need to be replaced or repaired as a result of the construction.
Some properties are under-assessed and thus for purposes of the 15% limit,
it is recommended that the policy be revised to allow the Engineering
Division to hire an appraisal to determine the value of the property.
RECOMMENDATION
The City Council is requested to concur in the recommended changes. Section 44-
14 of the Code of Ordinances of the City of Dubuque authorizes the City Manager
to adopt such sewer connection standards.
ACTION TO BE TAKEN
The City Council is requested to concur in the recommended changes.
GP/vjd
cc: Michael A. Koch, Public Works Director
David Harris, Housing & Community Development
Mary Rose Corrigan, Public Health
Adopted: September 16, 1996
Revised: December 17, 2001
I. GENERAL
II.
CITY OF DUBUQUE
POLICY ESTABLISHING LIMIT ON
SANITARY SEWER CONNECTION COSTS
Section 44-14 of the Code of Ordinances of the City of Dubuque, Iowa,
requires the owner of any house, building or property used for human
occupancy, employment, recreational, or other purposes, situated within the
City and abutting on any street, alley, right-of-way or easement in which
there is now located, or may in the future be located, within 200 feet of the
property line thereof, a public sanitary sewer of the City, to connect such
facilities directly to the public sanitary sewer.
The City Council, as part of its sanitary sewer connection program, requires
that all such properties connect to the public sewer.
The purpose of this policy is to limit the cost to the property owner for such
connections where the cost may be excessive due to the presence of rock,
hilly terrain or other obstacles, and to limit the City's exposure for certain
non-sewer costs related to the connection to the public sewer.
DEFINITIONS
As used in this policy, the following terms, phrases, and words have the
following meanings:
Connection Charge is a fee required by the City for connection of a building
sewer to a public sewer for property which has not previously been assessed
for sanitary sewer or which the property owner has not paid through
development fees or otherwise.
Cost. The cost shall include the total cost to install a sewer lateral, such as
building permits, engineering, construction costs, plumbing costs, pavement
restoration, seeding and grading, that are required for the complete
installation of the lateral to the City of Dubuque public sewer.
Lateral means the private sewer lateral from the public main to the building's
internal plumbing system.
Property Owner includes a contract purchaser, if there is one of record,
otherwise the record holder of legal title, as shown by the records of the
Dubuque County Auditor's office.
III. POLICY
This policy applies only to connections to public sanitary sewers constructed
before October 1, 1996.
A property owner who receives a notice from the Health Services
Department to connect to the public sanitary sewer within 365 days must
meet with City Engineering Division within 45 days after receipt of the notice
to be eligible for the benefits of this policy.
The City will secure bids for the complete installation of the lateral. The
property owner's cost for the lateral connection will be limited to 15% of the
assessed value of the property as shown by the records of the City
Assessor. The Engineering Division has the option of obtaining an appraisal
of the property if, in the judgment of the Engineering Division, the property is
under assessed.
In determining the amount of the costs subject to the 15% limit, the cost for
restoration of landscape items, such as seeding, plants, shrubs, etc., cannot
exceed 5% of the total project cost. It is also the responsibility of the
property owner to maintain any landscape items that are restored or replaced
by the contractor.
Also, in determining the amount of the costs subject to the 15% limit, no
amount may be included for internal plumbing or wiring necessary for
connection of the private system.
The City has the option of selecting the lateral alignment that is in the best
interest of the City. Any major restoration items, such as driveways and
retaining walls, will be repaired, not replaced. The intent of this policy is to
limit the City's financial exposure for extraordinarily high and inflated sewer
lateral installation costs.
If the property owner's cost to connect exceeds the 15% limit, the City will
waive the excess connection charge, if any. In any case where the costs
exceed 25% of the assessed value of the property, the City Manager may
determine whether to require the property owner to replace the septic
system in lieu of connecting to the City sanitary sewer.
IV. EXAMPLE
The following table is used as an example for a property with an assessed
value of $50,000.00. The property owner would be expected to pay up to
$7,500.00 (15% of the assessed value). For every dollar in cost over
$7,500.00 to the property owner, the City connection charge would be
reduced by 91.00. If the total costs exceed $12,500.00, an alternative to
connection to the City sewer would be considered.
$50,000 ASSESSED VALUE HOME
TOTAL COSTS II TOTAL AVAILABLE FUNDING I
Amount of
City Property City
Construction Connection Owner Connection City Recommendation
Cost Charge Contribution Charge Contribution (Sewer/Septic)
Waived
91,600 II 94,500 ~6,100~0 II 90 I Sewer
92,500 II ~4,500 II 97,000 II 90 II 90 I Sewer
95,000 II ~,~,500 II 97,500 92,000 II 90 I Sewer
97,500 II 9,~,500 ~7,500~4-,500 II ~0 I~ Sewer
~10,000 a ~4,500 ~7,500 a ~,500 II ~ 2,500 II S~wer
~2,500 I[ ~,500 a ~7,500 I[ ~4,500 ~ 5,000 II S~we~
~17,500 II ~,500 I[ ~7,500 II ~4,500 ~10,000 II S~w~