City of Fairfax, Virginia City Council Work Session
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1 City of Fairfax, Virginia City Council Work Session Agenda Item # City Council Meeting 5d 10/29/2015 TO: FROM: SUBJECT: ISSUE(S): SUMMARY: Honorable Mayor and Members of City Council Robert Sisson, City Manager Establishment of Wastewater Lateral Repair and Replacement Program Whether to establish a fee-based Phase 1 Program to assist in the repair and replacement of failed wastewater laterals and to encourage preventive replacements of aged pipe. Aging infrastructure continues to be a major challenge across America and one of the final frontiers for wastewater services is the repair and replacement of wastewater laterals that serve individual homes and businesses. Individual replacement of broken and collapsed laterals within the right-of-way can be a very costly event for homeowners and businesses alike; some costs for residential replacement reaching as high as $30,000. This can be a major financial impact for families and businesses especially since repair and replacement must be immediate. One area where the City can provide excellent value for the wastewater customer is to provide repair and replacement assistance within the right-of-way and to initiate a Lateral Repair and Replacement Program geared to encourage customers to invest in modern construction technologies to rehabilitate lateral failures. Such proactivity can result in substantial savings for the individual customer as well as move away from the need for costly traditional repairs. A City sponsored Lateral Repair and Replacement Program will be creative and result in higher service and lower risk for the customer as well as have less inflow to the treatment plant. FISCAL IMPACT: RECOMMENDATION: ALTERNATIVE COURSE OF ACTION: The Program is planned to be self-sustaining and will not increase the wastewater rates for collection and treatment. However the Program will be fee-based with the cost per Residential and Commercial account of $18.00 and $36.00 per year respectively. Authorize advertisement and a Public Hearing and desired outreach to ascertain community desire and acceptability for a proactive repair and replacement program for laterals. Approve if customers deem the program feasible. Do not consider such a program at this time
2 RESPONSIBLE STAFF/ POC: COORDINATION: ATTACHMENTS: David Summers, P.E., Director of Public Works Christina Alexander, Richard Thoesen, P.E. Department of Finance PowerPoint Presentation Sample Motion
3 SAMPLE MOTION I move that the City Council authorize community outreach and a Public Hearing to ascertain the feasibility of adopting a Wastewater Lateral Repair and Replacement Program for all wastewater customers served by the City.
4 Consideration of Wastewater Lateral Repair and Replacement Program City Council Work Session October 29, 2015 City of Fairfax Department of Public Works
5 City Council Legislative Goal Build strong, safe, and secure neighborhoods, and improve residential quality of life through active community participation, improved connectivity through enhanced and inclusive communication, provide a safety net for those in need, well funded renovation programs, a culture of shared accountability, and robust city services. adopted by the City Council on July 22,
6 AGENDA A. Purpose of Work Session Item B. Summary Review of Previous Work Session Presentations and Findings C. Lateral Repair Program Phases D. Developing the Business Case for Phase 1 3
7 A. Purpose of Work Session Item 1. Decide whether or not to consider Phase 1 of a Wastewater Lateral Repair and Replacement Program and move to a community outreach and Public Hearing effort 4
8 B. Summary Review of Previous Work Sessions 1. Laterals - the Final Frontier for Wastewater Infrastructure. 2. Modern trenchless technologies suitable for wastewater lateral repair and replacement a proactive opportunity. 5
9 B.1. The Final Frontier 1. Over 76 million wastewater laterals in U.S.A. (Census Bureau) 2. Laterals given least attention of Wastewater System 3. Lateral failures result in expensive solutions for customers 4. Lateral conditions can result in excessive inflow and infiltration of rainwater; hence higher treatment volume and cost 5. Much greater attention given today by many Utilities 6
10 Why Wastewater Laterals are given less attention BY THE HOMEOWNER: Out of sight out of mind Expensive to Inspect Easy to procrastinate BY THE UTILITY: Expensive to inspect Too many to manage Complex issue of Responsible Management Entity 7
11 Laterals - the issue of the Responsible Management Entity 8
12 Utility Responsibility from the Property Line to the Main = 43% in USA* *Ref: WERF Study Regionally, the following take responsibility within the ROW 1. Town of Herndon 2. DC Water 3. WSSC (Montgomery and Prince George s Co) 4. Prince William Service Authority 5. Hamptons Roads 6. Virginia Beach Very Few preventive programs regionally 9
13 Emergency Repairs are Expensive There are Alternatives to Conventional Repairs 10
14 B.2. Current trenchless technologies for wastewater Pipe Bursting: laterals. Can be Expensive 11
15 Cured-in-Place Pipe: Can be accomplished from the main of building 12
16 Private Responsibility to the Main: Many Utilities are Enforcement Oriented Point of Sale Inspection Notices of Violation Surcharges/Higher Commodity Charges Civil Penalties Property Liens 13
17 In last 5 Years 183 Lateral Repair and Replacements in the City At Least 19 were in the ROW Year # Permits Contractors My Plumber Hicks Plumbing Services Emerald Plumbing Co Roto Rooter Carlos Lopez Kerry Vornadore Sean Huynh & Tam T Duong Observation: Almost all used conventional technology 14
18 And more must be coming Prepared by Kelly O Brien Maurice Rioux 15
19 C. Lateral Repair Program Phases 1. Corrective Phase 2. Preventive Phase 16
20 Phase 1 -Corrective Program 1. Property Owner pays for all repairs and replacement Landscaping, root infestation and grease blockage not eligible Failure due to Property Owner abuse of lateral not eligible 2. Utility provides a reimbursement portion subject to Program Requirements 3. City is not the responsible party, the Property Owner is 4. City provides Program Description to contractors and applicants 5. GIS information collected by City at a later date 17
21 Phase 1 -Corrective Program Program Requirements 1.Property Owner must show condition & need 2.Two or more Proposals submitted 3.City Permits 4.Contractor agreement with Private Owner must include warranty 5. Work must be verified 18
22 Phase 1 -Corrective Program Reimbursement Allowances Location of Failure R&R %City/%Owner Maximum Reimbursement In the ROW Entire Length 75%/25% Full Length $5,000 In the ROW ROW Only 25%/75% ROW Only $2,500 On Private Property Entire Length 25%/75% Full Length $5,000 19
23 Lateral R&R Program Corrective Program Preventive Program Encourage Replacement of the Entire Length of Lateral Cured-in-Place From the Main Reimbursement subject to Program Requirements Invite Customer Participation with Utility Contribution 20
24 D. Developing the Business Case Repair Laterals within ROW Not an Easy Business Case 8,000 laterals 50 year cycle 160 per year average Dominion Power Insurance A Start but not the solution Restricted Repairs 21
25 Developing the Business Case Lateral R&R Program Fee: Reduces some Financial Risk for Customer Reduces Infiltration and related treatment cost at Noman Cole Customer Action Possible Starting with older systems i.e., Orangeburg Pipe 22
26 Developing the Business Case Authorize Lateral R&R Program Fee - With Opt Outs (if repair in last 5 years) Encourage Dominion Power Insurance Additional Human Resources for Program Phase 2 23
27 Estimated Annual Income Category No. Customers Fee per Year Annual Income Residential 7,100 $ 18 $ 127,800 Commercial 900 $ 36 $ 32,400 TOTAL 8,000 $ 160,000 NOTE: Commercial customers have 6-inch laterals or larger 8-inch laterals would be $50 per year 24
28 Estimated Financial Performance Year ROW Only ($2,500) Full Length ($5,000) Reimbursement Total Undesignated $ 22,500 $ 137, $ 42,500 $ 117, $ 62,500 $ 97, $ 82,500 $ 77, $102,500 $ 57,500 $ 487,500 25
29 Estimated Financial Performance (doubled) Year ROW Only ($2,500) Full Length ($5,000) Reimbursement Total Undesignated $ 45,000 $ 115, $ 85,000 $ 75, $ 125,000 $ 35, $ 165,000 $ (5,000) $ 205,000 $ (45,000) Note: Depending upon level of activity, The Wastewater Utility will need an additional human resource (less than an FTE) $ 175,000 26
30 Program Progression Lateral Repair Program Fee Corrective Escrow Min= 2xPrior Cost Preventive Program 27
31 Questions? Course of Action? 28
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