ce and IT (4) California City's Private Sewer Lateral Programs (5) Letter from LB Board of Realtors Approved: cj City Manager

City of Laguna Beach AGENDA BILL No. 23 Meeting Date: 6/17/14 SUBJECT: REDUCING SEWAGE SPILLS CAUSED BY ROOTS FROM PRIVATE SEWER LATERALS I. SUMMARY OF THE MATTER: Over the past several years, there has been a reduction of sewage spills attributed to failures in City maintained infrastructure and a reduction in related beach closures. However, spills occurring on private properties have not seen a similar reduction. To the contrary, this past year has seen a significant number of mainline blockages resulting in sewer backups into private residences. Most of the sewer backups were caused by private lateral roots creating a blockage in the City sewer main. These backups can result in costly claims to the City. In September 2013, the City Council directed staff to research and conduct workshops to vet proposed modifications to the City's Private Sewer Lateral Ordinance and come back with the results. The details of workshops held with the area Plumbers, the local Realtors, and members of the public are found in Attachment 1. Along with the recent workshops, staff has summarized what other cities in California are doing to address similar problems as shown in Attachment 4. After considering this report, City Council will be asked to provide direction to staff regarding possible new programs. This will form the basis for a proposed Municipal Code amendment that will be brought back to the City Council within 180 days. The City's existing ordinance can be characterized as an "awareness" program. The private sewer lateral program is based on private property owners voluntarily completing the necessary corrective actions to ensure that they have a fully functional sewer lateral. After nearly 10 years, this approach to the private sewer lateral root problem has proven to be ineffective. Based on knowledge and information gained through the above mentioned workshops, and research, the private sewer lateral program ordinance is proposed to be modified from an "awareness" program to a "repair" program. The proposed ordinance is not anticipated to be put into effect until significant public education can be provided. Staff plans to hold several workshops to assist the residents, plumbers, and relators with understanding the changes. In turn, those workshops will be recorded and used for future reference as a (continued) RECOMMENDATIONS: See Page 8. Appropriations Requested: Submitted by: 4iffairow,/ _ David Shissler, Director of Water Quality Attachments: (1) Workshops Summary/Pros/Cons (2) Costa Mesa San. Dist. Program Coordinated with: (3) Pacific Grove Loan Program Gavin Curran, ce and IT (4) California City's Private Sewer Lateral Programs (5) Letter from LB Board of Realtors Approved: cj City Manager

Page 2 multimedia public education resource on the City's website. A new ordinance would not be in effect until mid-2015. Recommended ordinance and policy changes include; enhanced private sewer lateral video inspection and repair requirements; administrative penalties for private sewer lateral non-repair, repeat sewer spills, or failure to notify the City of cleaning events; monetary incentives for homeowners and plumber's to repair sewer laterals and report cleaning events; expanded City sewer main video inspection and response program; and an expanded public education campaign. The detailed list of recommendations is located in Section VI. below. II. PROPOSED ORDINANCE CHANGES Point-Of-Sale: Video and Repair Versus Video and Notice As shown in Attachment 4, many cities have addressed triggering private sewer lateral repairs with the point-of-sale of a property. It has met a great deal of controversy. Some realtors in Northern California have embraced the change by becoming experts in the process and learning the intricacies of sewer lateral repair much like the similar effort of roof repair or termite mitigation. However, the majority of realtors view it to be onerous and believe that it makes the point-of-sale overly complicated. The Laguna Beach Board of Realtors have prepared a letter, as provided in Attachment 5, dated April 1, 2014 addressing their concerns. The realtors propose a new section in the City of Laguna Beach Real Property Report titled, "Water Quality Conditions", providing the buyer a summary of conditions established on the property for backflow devices, water quality requirements, and the condition of private sewer laterals. As the real property report is requested early in the process of a sale, funds to address the results of an inspection can be included in the terms of the sale as a contingency. This proposed change is similar to the approach taken by the City of Belmont, California, where the compromise position is to educate the buyer about the need to maintain their new homes private sewer lateral. To that point, it may be adequate to add the new "Water Quality Conditions" section in the real property report, along with a public education campaign, that strongly emphasizes the need for the home buyer to be aware of the condition of the house lateral they are purchasing. Recommendation Require videoing of a private sewer lateral during the sales process. The City Council should then determine whether or not to require that a damaged lateral be repaired during the sales process OR notice be provided so a future buyer is aware that there is a problem that needs to be addressed. Private Sewer Lateral Inspection Program In order to reduce the likelihood of sewage spills from private sewer laterals, staff recommends moving from a voluntary program to one requiring action when deficiencies in sewer laterals are identified. The City routinely conducts video inspections of the sewer lines. Damaged lateral pipes are easily distinguished by roots growing into the City sewer and are identified by location and judged for the severity of the root intrusion. The proposed six-year participation program would require root-choked private sewer laterals to be video inspected and repaired.

Page 3 Video inspection would be required when plans for significant private property improvements are submitted for permitting. The existing ordinance requires a private property to have the lateral video inspected by a qualified plumber for construction including additions and alterations, repairs that require a building permit, and that either involve a bathroom, kitchen, or laundry facility, or constitute a valuation of 40% or greater (valuation means the estimated cost to replace a building or structure in kind based on the current replacement cost established by City resolution for computing of building permit fees pursuant to Title 14 of the Municipal Code). The existing ordinance [ 17.50.040 (b)] requires that private property owner shall complete necessary corrective measures to ensure that the private sewer lateral is fully functional. It allows for scheduled cleaning to be a corrective measure in lieu of repairs or replacements. The long-term concern with a "cleaning schedule" approach is that there is no end to the roots continually, and progressively, damaging the pipe to a point of disintegration; the scenario results in a much larger and more expensive problem to be handled in the future. Modifications to the existing ordinance should include revisions to the definition of "Corrective Measures". Presently, the ordinance allows scheduled cleanings when a problem is detected. It is proposed to allow "a program of scheduled cleaning" [ 17.50.020(e)] only as an option for residents meeting certain criteria for financial hardship. Homeowners Costs/Participation Program The proposed changes to the Private Sewer Lateral Program include financial incentives to owner-occupied properties offered for the first six-years of the program. This model has been used in many cities in California and is viewed to be cost effective relative to costs incurred to remediate sewer backup incidents. As shown in Attachment 2, agencies such as the Costa Mesa Sanitation District have recorded significant success in an assistance program with its constituents. Their program includes participating with owner-occupied properties that can present a plan for permanent repairs. The sanitation district will participate in 50% of the costs of the repairs up to a total amount of $1,600. The program is offered on a first-come first-serve basis until the program budget is exhausted for the year. Additionally, staff is proposing that an amount not to exceed $1,600 be made available for "Top Hat repairs" where it is determined that the connection can be fully repaired. This provides a dual benefit as the City eliminates both root intrusion and infiltration from groundwater into the main and the homeowner gains new life on their lateral connection. Staff has determined that contractors are willing to provide Top Hat repairs at a cost of $1,600 per lateral if they can be coordinated in groups of five repairs or more (one full day of work for a repair crew). Annual Program Costs The incentive to encourage the repair of private laterals is proposed to be limited to the first six years at $104,000 per year. The incentive to assist with repairs at the connection to the sewer main line will be capped at $56,000 per year [as shown in Table 1]. Cost participation after year six will be re-evaluated and recommendations made to the City Council according to the lessons learned and successes achieved. Recommendation 1. Require a modification to the existing ordinance where "a program of scheduled cleaning" will only be an option, in lieu of repairs, for residents meeting certain criteria for financial hardship and, 2. Prepare a budget including $104,000 per year for sewer line connection repairs where, a. It is determined that the connection can be fully repaired, or

Page 4 b. Reimburse 50% of the costs of permanent repairs up to a total amount of $1,600 where the work is determined to be durable/permanent. Administrative Penalties for Lateral Owners Staff recommends implementing a progressive enforcement program to correct sewer ordinance violations. A progressive enforcement program steps through verbal communication, written warnings, and after repeated attempts to correct the violations, fines would be imposed beginning at $100 and climbing to $500 before progressing to misdemeanor violations. This approach is consistent with Code Enforcement policies in the City's Administrative Ordinances. Recommendation Direct staff to incorporate administrative penalties into a proposed ordinance for property owners with repeat private sewer lateral spills, and for property owners who fail to make mandated repairs after repeated attempts to not ib/ them to do so. Plumber Requirements and "Root Bounty" Program Staff learned during the Plumber's Workshop that area plumbers are amenable to making changes to their operations that will assist the City in preventing sewer spills. They understand the seriousness of spills caused by roots being pushed into the City's collection system. There was general consensus that several cities in the area have already taken steps to require better coordination with plumbers. In order to facilitate better communication, staff has created a special hotline, exclusive for plumbers, to directly notify Water Quality staff that roots are being pushed into the City's sewer mains (The Water Quality Department's Hotline for the public remains the same (949) 497-0378). It is also recommended that the City provide a $50 "Root Bounty" to plumbers for notifying the Wastewater Division crews when it is likely that root cuttings are being pushed into City sewer mains and after a full bucket of roots are successfully recovered (at least a full bucket of roots that are typically enough to block an 8-inch sewer line). This program will be experimental and, if it is not effective, it can be stopped or modified. It is recommended that the ordinance be modified to require notification by plumbers when private sewer lateral maintenance activities are likely pushing root cuttings into City sewer mains. Annual Program Costs The estimated cost for this Root Bounty Program will be capped at 60 calls being received by plumbers and qualifying for a Root Bounty or $3000 per year. Recommendation - To encourage plumbers to not the City when roots are likely discharged into City sewer mains, direct the City Manager to develop a trial program to offer a "Root Bounty" of $50 to plumbers reporting roots being pushed into City sewer mains as a result of cutting and cleaning operations to private sewer laterals. The bounty will be available to plumbers who have called the Wastewater Division Staff on the Plumber 's Hotline to coordinate discharging roots into the City 's sewer main. The responding crew must remove a minimum of a full bucket of roots in order for the plumber to be rewarded the bounty.

Page 5 III. OTHER POLICY AND OPERATIONS CONSIDERATIONS South Laguna/South Coast Water District Coordination The South Coast Water District performs repairs to the private lateral connection to the main sewer line. Where possible, the District uses a technology known as a Top Hat (the product resembles the shape of a stove pipe hat) which is capable of repairing joint separations between the private lateral and the City's sewer wye (a special Y-shaped pipe connection). The program being recommended by City staff results in the same repair except it is approached as a Private/Public Partnership program where the City is informing the resident of the problem and responding to a request by the owner for assistance rather than taking sole responsibility of repairing a private lateral connection. City staff will be coordinating with the South Coast Water District staff and inform them of the direction that the City Council sets. They have been very cooperative and understanding of the need to enforce City ordinances in the South Laguna Beach service area. Subsequent to staff receiving the City Council's direction, staff will meet with the South Coast Water District staff and give them advanced notice of the proposed changes by the City. Recommendation - Direct staff to coordinate with South Coast Water District to plan consistent policy development addressing sewer main connection repairs throughout the City. Video Inspection Program for Root Prone Areas The City has installed a liner in sewer mains in all of the areas that had previously been compromised by tree roots. Of the 95 miles of sewer mains maintained within the City's sanitary sewer service area, about 20 miles are challenged by tree roots that infiltrate private sewer laterals and pose an imminent threat to the City's sewer mains. Complementing the new changes to the ordinance, a program to video inspect approximately 1/5 of the root prone areas, or about 4 miles per year, is recommended. Implementing the inspections in measured amounts assures control over the number of pipelines being cleaned, repaired, or replaced at any one time. Additionally, as the results of the inspections become available, noticing can also be released in measured numbers and by area in order to control the workload added to the field crews that will respond to the plumber's hotline and associated field coordination. This inspection work would be performed in addition to follow-up inspections after sewer spills and problems identified during routine cleaning operations. Annual Program Costs The video inspection program would be limited to 4 miles or $40,000 a year. Additionally, transferring the results of the inspection into database driven work orders and GIS mapped information that can be used to geographically track results, initiate follow-up through the computerized maintenance management system, maintain up-to-date status with the City's real property file, and develop summary information for the annual NPDES report. This work will be performed by outside consulting services with expertise and GIS and database exchange capabilities for cost not to exceed $10,000 per year.

Page 6 Recommendation - Direct the City Manager to include a budget to support a 5-year video inspection program to video approximately 4 miles of the sewer system for an annual cost not exceed $40,000 and integrate the reporting into the City's GIS and computerized maintenance management system for repair notices and response tracking for a cost not to exceed $10,000 annually. IV. PUBLIC EDUCATION PROGRAM Private Sewer Lateral Education The three workshops helped to gauge the level of understanding of what a private sewer lateral is and who has the responsibility for their maintenance. Much of the dialogue involved educating the public about the common problems that develop in old sewer laterals, where a lateral is in relation to their property, how it is connected to the City's collection system, and how it is accessed and maintained on private property. To address these common questions, staff is recommending that workshops be held for the public offering training from professional contractors, plumbers, and staff. These workshops will be videotaped and made available as an ongoing public education resource on the Water Quality Department's website. Consumer Education The single most important element of the new program is educating the public about private sewer lateral repairs, construction methods, expected costs, and how to find an experienced/reputable contractor. Residents having no experience dealing with their sewer lateral will be provided tools to understand the problem, and what they should expect from a contractor to repair the problem. Actions like engaging a video inspection to identify the problem and obtaining three detailed quotes for the work will be strongly emphasized. Annual Program Costs The first year of implementation is expected to require a significant level of effort to provide public education workshops and materials necessary to assist the public in understanding of what a private sewer lateral is as well as the options for repair. It is recommended that this information be perpetuated and made available as ongoing content on the City's website. The first year cost would be budgeted at $16,000. Targeted mailers would be distributed at a cost of $3,500 per year to support ongoing public education for the remaining five years of the participation program. Recommendation - Direct the City Manager to budget for an expanded public education campaign; the first year at $16,000 and $3,500 for the following five years of the program.

Page 7 V. FINANCIAL IMPACTS City Financial Considerations/Rate Impacts - Once the City Council provides direction, a more detailed analysis of the costs expected for the new programs can be prepared by staff In the meantime, staff is initially recommending to budget $176,500 for the first year and $160,500 for the following five years. In order to implement this program, a sewer rate increase of 3% will be necessary. TABLE 1 Six Year Private Sewer Lateral Repair Participation Program Preliminary Budget Yearly Program Costs Approx. Unit Cost Units (Homes, Days, LS) Ongoing Totals Lateral Connection (Top Hats) Program @ $1,600 $ 1,600 35 $ 56,000 Lateral Repair Assistance Program Max Contribution/Lateral (Replace/Repair) $ 1,600 30 $ 48,000 Video Inspection of Worst Areas 5 miles/yr. ($/No. of Days of Inspections) $ 1,800 22 $ 40,000 Plumbers Root Bounty Program (Calls from Plumbers) $ 50 60 $ 3,000 Program Mapping and Analysis in GIS/CMMS (Est $/ Home Repair for Tracking and Analysis) $ 10,000 LS $ 10,000 Public Education - Program Media Web Interactive/Targeted Mailers $ 3,500 LS $ 3,500 Ongoing Budget = $ 160,500 Public Education - Program Media Web Interactive (1st Year Only) $ 16,000 One Time Costs $ 16,000 First Year Budget = (Less Ongoing Public Education Costs) $ 176,500 Many conversations have been held with agencies in California. A cautionary note mentioned by most is that financial assistance programs can become overwhelming to staff workload. Specific examples occurred in the City of San Mateo and the City of Santa Barbara where both were driven to simplify their programs as their resources were far exceeded by the program costs. It is anticipated that the program will scale downwards as sewer lateral problems are eliminated. After about four years, the City of Santa Barbara eliminated their sewer lateral repair incentive program. As listed above, the $160,500 program includes incentives to correct the connection to private sewer laterals at the main, a lateral repair assistance program for repairs more substantial in nature, and an added operational program to expand video inspection covering the root prone areas within the City, a Plumber's

Page 8 Root Bounty Program that rewards plumbers, for reporting roots before being pushed into the main, and the administrative effort to track, map, and analyze the program as a part of NPDES permit compliance reporting. Lastly, public education will become a critical element for program success. It was a highlighted point of discussion during the workshops as it is a largely misunderstood maintenance responsibility of home ownership. Not all of the programs can be initiated at once. The Lateral Repair Assistance Program for low income/loan programs will likely be implemented in the second year of the new program as it will require more time and planning in its development. Sewer Rate Increases For every 1% increase in sewer rates, the City collects approximately $67,000. This summer, staff will present a modified financial program for the Sewer Fund that includes recommended increases in sewer rates associated with essential capital improvement projects and new programs being considered. The new program will have to be supported by increases in sewer user charges. Recommendation - Direct the City Manager to develop recommendations for sewer rate increases that support the new programs. VI. RECOMMENDATIONS: It is recommended that the City Council direct the City Manager to prepare ordinances and a financial plan to do the following: 1) Require videoing of a private sewer lateral during the sales process. The City Council should then determine whether or not to: A) require that a damaged lateral be repaired during the sales process OR, B) notice be provided so a future buyer is aware that there is a problem that needs to be addressed. 2) Require that a property owner video their private sewer lateral and make appropriate repairs if damaged pipes or root intrusion is identified during City videoing operations. 3) Require videos of private sewer laterals during significant property improvements. 4) Direct staff to incorporate administrative penalties into a proposed ordinance for plumber's failure to notify the City when roots are likely deposited into City sewer mains, for property owners with repeat private sewer lateral spills, and when property owners fail to make mandated repairs after repeated attempts notifying them to do so. 5) Direct staff to develop and budget a financial incentive program to encourage the permanent repair of private sewer laterals. Financial incentive capped at $1600 per lateral. 6) Direct staff to develop a trial program to offer a "Root Bounty" of $50 to plumbers reporting roots being pushed into City sewer mains as a result of cutting and cleaning operations to private sewer laterals (bounty to be awarded upon successful removal of, a minimum, fullbucket of roots by City crews). 7) Direct staff to budget for a 5-year video inspection program to video approximately 4 miles a year of the sewer system most at-risk for root problems and integrate the reporting into the City's GIS and computer maintenance management system for repair notices and response tracking. 8) Direct staff to budget for an expanded public education campaign, and 9) Direct staff to prepare a multi-year budget and financial plan to fund these recommendations which will likely require a three percent rate increase on top of other scheduled increases.

Page 9 Attachment 1 Public Workshop Summaries/ Pro and Cons Public Workshops Several public workshops were held to develop a basis for the recommended Municipal Code amendments to be considered by the City Council. The workshops were conducted with focus groups to address specific parts of the ordinance, gaining plumbing industry input, better coordination between the real estate community, plumbing community, Laguna Beach residents, and the City, and an overall consensus of the modifications being considered. The first goal of the new changes is to increase the opportunities to initiate an inspection and identify repairs necessary to eliminate root incursion creating an imminent threat to blocking the City's sewer main with roots as well as alerting the private resident of roots that pose a threat to suffering significant property damage from a sewer backup into their home. Plumbers Workshop Staff invited over 90 plumbing companies who maintain business licenses with the City; 15 companies were represented. The meeting was very productive. Many of the plumbers have already been working with cities with more stringent requirements than Laguna Beach. Staff was informed of the plumber's experiences with the Los Angeles County Sanitation District, City of Burbank, the City of Huntington Beach, and with the Costa Mesa Sanitation District. Those agencies have initiated programs to provide financial incentives for private lateral repairs. As an example, the Costa Mesa Sanitation District provides a 50% match up to an amount of $1600 for qualifying repairs to private laterals (See Attachment 1). Additionally, the plumbers were very receptive for improving coordination in instances when snaking roots (using a cutting tool) from a private lateral and pushing them into the City's main. They were very receptive to a so-called "Root Bounty Program" where both the homeowner and the plumber may be eligible for financial incentives if roots can be captured immediately from the downstream manhole. Realtor's Workshop/Follow-Up Meeting Approximately 16 realtors were present when staff held the realtors workshop. The majority of the modified program elements presented were well received and supported by the realtors. However, the realtors express their opposition to considering a point-of-sale component in the new program. Following the workshop, staff was invited to the weekly realtors meeting at the Woman's Club, where about 100 realtors attended the meeting. The presentation was given and inquiries were made regarding the price of a spot repair using recently developed technology, the possibility of financial incentive program, and the timing of the proposed changes. Consideration to Point-Of-Sale Component Adding a point-of-sale component in a private sewer lateral program has been implemented by many agencies in California. The Federal EPA has, as a part of the negotiated compliance measure, required multiple sanitation districts in

Page 10 Northern California to include a point-of-sale component. The Water Quality staff has contacted many of these agencies to determine the pros and cons of such a program. In general it is fair to state that most agencies received opposition from the change and, over time, compliance has been reluctantly accepted as the way of doing business. Some realtors have embraced the change by becoming experts in the process and learning the intricacies of sewer lateral repair and the associated costs. Others have proceeded to comply with the point-of-sale component less quietly. Subsequent, a follow-up meeting was requested to discuss shifting the focus from point-of-sale to a required element of disclosure prior to the point-of-sale. The realtors have prepared a letter, as provided in ATTACHMENT 4, dated April 1, 2014 addressing their concerns. Similar to the city of Belmont, California, the compromise position is to educate the buyer about the need to maintain their new homes private sewer lateral. To that point, the realtors propose a new section in the City of Laguna Beach Real Property Report titled "Water Quality Conditions" providing the buyer a summary of conditions established on the property for backflow devices, water quality requirements, and the condition of private sewer laterals. As the real property report is requested early in the process of a sale, the results of an inspection can be included in the terms of the sale as a contingency. Public Workshop Six members of the public were present at this workshop. Of those attending, two couples from two different families were represented. Both families had experienced a sewer backup. The primary concern expressed was the requirement of a backflow device subsequent to a sewer backup. Workshop Conclusions The single most significant take away from the workshops is that public education on the subject is in dire need. The public can make better decisions with a clear understanding of the following: 1. What a private lateral is and where it begins and ends, 2. Why private laterals develop problems and where they are most likely to be found, 3. What are the options for seeking repairs and what range of costs are associated with those repairs, 4. What to ask for when seeking a contractor ALWAYS GET THREE PROPOSALS or more as the process of securing a proposal should provide a level of education to the homeowner, 5. What to expect when a contractor is performing the work, 6. What kind of assistance is available from the City, 7. What should a property owner be left with when a contractor has completed the work, and how should you follow up with the City. In general, members of the community who have heard the presentation are supportive of protecting the City's coastal environment and striving to prevent sewer spills. Time and expense are the most sensitive concerns. For the public, the expense of repairing a private lateral is of paramount concern. For the real estate community, the point-of-sale component is untenable as there is a large uncertainty as to the impact on timing for closing escrow and therefore concern for falling out of escrow and losing the sale.

Page 11 Analysis of Proposed Changes The conclusions and input and staff research conducted to determine what other municipalities have done. In general, the following notes the pros and cons of changes being considered: CONS of the Proposed Modified Ordinance 1. Repairing a private sewer lateral can be expensive. General estimates are between $1,600 and upwards of $15,000. 2. Installing a backflow prevention device in an existing home can be challenging due to space constraints and when it's difficult to determine the location of the private sewer lateral coming from the home. 3. The majority of people have no knowledge or background to prepare them for addressing repairs of a private sewer lateral or for installing a backflow prevention device. Furthermore, dealing with contractors also requires experience to know that getting multiple quotes is as important as knowing exactly what and how the contractor should be conducting themselves to affect repairs. 4. The realtors in Laguna Beach believe that a point-of-sale requirement placed on repairs to a private sewer lateral would put an undue burden and risk to closing escrow on home purchases. PROS of the Proposed Modified Ordinance 1. Most people living in the city of Laguna Beach are supportive of doing their share to promote clean ocean water and good environmental health of the coastline. 2. Repairing a private sewer lateral primarily serves to protect the resident from experiencing a backup into their home. Additionally, repairs to private sewer laterals where observed roots are an eminent threat to the public's wastewater collection system benefits the resident and the public. 3. Correcting a connection failure at the sewer wye can be done relatively inexpensively. A newly developed technology has been developed to correct the frequently observed failure of the underlying pipe bedding supporting the private lateral connecting to the City's main. It is possible that the City could develop a program where repairs can be completed for about $1600 with a Top Hat repair procedure. 4. Installing a backflow prevention device serves to protect the resident from experiencing a backup into their home. The cost of installing one varies from home to home. The device itself cost less than $50 and the installation varies. The homeowner should get multiple quotes for such work. Generally, the installation should cost less than $2000. 5. Installing backflow prevention devices does not preclude plumbers from cleaning laterals as they can be easily disengaged during cleaning and are easy to repair if the one-way valve is damaged. 6. Conducting public workshops will greatly assist to educate the real estate community as well as the public about private lateral repairs and bring awareness to the options of correcting problems in private sewer laterals. 7. The City is proposing a cost sharing incentive for private sewer lateral repairs/replacements that would partially reduce the cost of repairs to qualifying owner-occupied residence.

Page 12 8. The City is proposing an incentive program for the plumbers/residents to report when they are cutting roots and pushing them into the City's main. 9. The City will create a plumber's only hotline to assist in immediate response to plumbers cutting roots.

ATTACHMENT 2 RESIDENTIAL SEWER LATERAL AND CLEAN OUT FINANCIAL ASSISTANCE PROGRAM Purpose: To assist and encourage homeowners to regularly clean and maintain their sewer lateral line. Homeowners are responsible for the entire sewer lateral from the building to the point of connection (including the connection) with Costa Mesa Sanitary District's (CMSD) main line. Why: To prevent sewer backups and spills. Sewer spills cause very expensive damage to the interior of a house and the environment, particularly the beaches. What causes sewer spills: Laterals that are not regularly maintained become inoperable because tree roots enter the line and block the flow or misalign the pipe joints. Without regular maintenance, the damage becomes severe and excavation of the lateral is necessary. Regular maintenance will also remove other blockages including debris, rocks and grease. Contribution by the CMSD: CMSD will reimburse 50% of the homeowner or Homeowners Association costs up to a maximum of $1,600 total per residential parcel as follows: Up to 50% of televising the lateral interior Up to 50% of cleaning the lateral Up to 50% of the cost of installing a clean out Up to 50% of lateral reconstruction costs Effective Date of Program: How do 1 apply: CMSD homeowners performing work after July 15, 2007 are eligible for the program. The program is only available for residential property, not for commercial or industrial property. Submit application to: Costa Mesa Sanitary District, 628 W. I 9th Street, Costa Mesa, 92627 FAX: (949) 650-2253 Email: info@cmsdca.gov Application and more program details available at www.cmsdca.gov Departments/ Sewer Lateral Assistance Program Program Limitations: Homeowners may only apply for participation in the program once every five years. CMSD's General Manager has discretion over all decisions. Residents must cooperate by adhering to the Program Requirements. Page I of 4 Revised 10/4/2013

PROGRAM REQUIREMENTS ATTACHMENT 2 BEFORE BEGINNING WORK I. Property owner calls a plumber for closed circuit television (CCTV) Must have date and footage counter shown on the video screen. 0 Narration (of address, date, contractor) is required. Must include the entire lateral line (house to CMSD main line in the middle of the street). Camera must be moved through the line at a uniform speed less than 30 feet per minute to enable independent review and evaluation. Camera should be stopped for a minimum of 5 seconds at broken sections, root intrusion, misaligned joints or other defects. CMSD reserves right to request re-video of any video not sufficiently clear enough to view. THERE ARE NO EMERGENCY REPAIRS - Snake a hole for drainage & CCTV for review. Ef 0 2. Property owner submits application & CCTV (VHSIDVD) Submit a completed application and a "before" video of sewer lateral to CMSD. Videos older than three months are not acceptable. Work must be completed within six months from application date. 1 3. Costa Mesa Sanitary District Staff reviews video District Staff reviews videos within 5 business days of receipt and contacts property owner/manager to discuss. If it is determined from CCTV review that homeowner's lateral line is defective, it is recommended the owner solicit bids from at least three licensed plumbing contractors to ensure a fair competitive bid. 4. Contractor obtains permit from CMSD before beginning repairs Permits are free under the Sewer Lateral Assistance Program. Penalty fees will be assessed for work performed without a permit. BEFORE COMPLETING WORK S. Contractor calls CMSD for inspection Call Joe Limon, CMSD inspector, (714) 290-6831 at least 2 hours in advance to schedule inspection Work must be completed within six months. AFTER WORK IS COMPLETED 6. Property owner submits an after video & paid receipts to the District Property owner obtains an "after" video from contractor and submits to CMSD. Property owner submits copy of paid-in-full invoices for work performed. CMSD reimburses 50% of cost, up to $1600 to property owner/manager or Homeowners Association(H0A). 7. Property owner picks up "before" & "after" video from CMSD. Videos not claimed after 15 days of reimbursement will be destroyed. Page 2 of 4 Revised 10/4/2013

ATTACHMENT 2 PROPERTY ADDRESS: APPLICATION SEWER LATERAL ASSISTANCE PROGRAM CITY: OWNER'S NAME: ZIP CODE: PHONE NUMBER: OWNER'S ADDRESS IF DIFFERENT FROM PROPERTY ADDRESS: (Check mailed to this address) Is property part of a Homeowners Association (HOA)? (For properties subject to an HOA, either the HOA applies, or the HOA must grant the property owner written permission for the property owner to apply). YES NO PLUMBING CONTRACTOR'S NAME: PHONE NUMBER: DESCRIPTION OF SEWER LATERAL PROBLEM: Receiving financial assistance REQUIRES PRIOR APPROVAL OF THE WORK by CMSD. A "before" video of the sewer lateral interior must be submitted PRIOR to CMSD granting approval of the work and an "after" video is required prior to reimbursement. ALL REPAIR work requires a PERMIT (NO COST if resident is eligible for the Sewer Lateral Assistance Program). A penalty fee will be assessed for work done without a permit. Page 3 of 4 Revised 10/4/2013

ATTACHMENT 2 APPLICATION (CONTINUED) Have you applied for SLAP before? If so, please provide date and amount of reimbursement I have thoroughly read pages I 4 of this application and understand the guidelines for the Sewer Lateral Assistance Program and agree to abide by these guidelines. Applicants who do not follow the guidelines of this program will not be eligible for reimbursement. INITIAL: As the owner of the property listed on this application, I agree to indemnify, defend and hold the Costa Mesa Sanitary District and its officers, employees and agents harmless from any and all claims or liability arising out of the work performed and actions taken in connection with the Sewer Lateral Assistance Program. PROPERTY OWNER SIGNATURE: DATE: VHS/DVD PICK UP SIGNATURE: DATE: To be signed when videos/dvd's are picked up Page 4 of 4 Revised 10/4/2013

ATTACHMENT 3 CITY OF PACIFIC GROVE PRIVATE LATERAL SEWER REPLACEMENT PROGRAM SEWER LATERAL LOAN PROGRAM GUIDELINES Thank you for your interest in the Sewer Lateral Loan Program. Loan funding is limited and is available on a first come first serve basis to qualified applicants. Loans are NOT available to those required to replace sewer laterals as a result of mandatory inspections pursuant to the City's municipal code, Chapter 9.20. Chapter 9.20 of the Pacific Grove Municipal Code is available for review at City Hall, the Pacific Grove Library, and on the internet at: www.ci.po.ca.us A. APPLICATION BY PROPERTY OWNER 1. Fill out the Sewer Lateral Repair/Replacement Loan Program application. 2. Return completed application along with required documentation to the Pacific Grove Community Development Department at City Hall, 300 Forest Avenue, Pacific Grove, California 93950. (Business hours are Monday through Thursday from 8:00 am to noon and 1:00 pm to 5:00 pm, Friday by appointment.) B. CITY REVIEW PROCEDURE The following procedure is to be followed when the City receives your application: 1. City will verify ownership of property. 2. City will determine eligibility for the Private Lateral Sewer Replacement Loan Program (PLSRLP) and notify the applicant of their eligibility status. 3. The City no longer requires a video of your sewer lateral to be submitted. However, you must provide a letter to the City signed by a California licensed plumbing contractor indicating the existing sewer lateral and connection to the City sewer system are not in a maintenance-free condition. The letter shall include if there is an existing 2-way cleanout, Sewer Relief Vent, and if a Backwater Valve is required as per City Code. If lateral is to be replaced a factory wye is required for connection. Permits are required and shall be obtained by the Contractor from the Building Department for all repairs and replacements. So be sure permit fees are included in your written estimates. 4. The applicant will then obtain at least two written estimates from California licensed plumbing contractors and submit them to the City for review. City cannot recommend any particular contractor. Bids for work shall be fixed bids, without allowance for extra costs. C. LOAN PROCEDURE 1. The City shall determine the loan amount and terms based on consideration of: The selected bid contractual amount Availability of funding from City Prioritization of projects based on financial need and condition of lateral Other factors deemed appropriate by City staff to fully carry out the intent and purpose of the PSLRP. 2. The City shall provide the property owner with loan disclosure information.

ATTACHMENT 3 3. Once the property owner has approved the disclosure, the City shall process the loan and prepare loan documents. 4. The property owner will sign the following: Loan Program Agreement Promissory Note Deed of Trust Disclosure Statement Rescission Notice 5. If after the 3-day rescission period the property owner does not rescind the loan, the Deed of Trust shall be recorded at the Monterey County Recorder's Office. The act of recording provides constructive notice that the property has been encumbered. When the debt is fully paid the City will promptly reconvey the loan, thus releasing the security for the debt. 6. The property owner will be given notice to have their contractor proceed with the work. All necessary City permits must be obtained prior to commencement of the work. The work shall not be backfilled until inspected and approved by the City Building Department 7. Once the work is completed and the contractor has received final inspections by the Building Department, the contractor will be paid directly by the City. If there are any funds remaining a loan reduction will be processed. D. LOAN TERMS 1. The maximum loan amount is $10,000. 2. This loan program provides a deferred payment loan at 3% simple interest. 3. The loan including any interest is due and payable upon voluntary or involuntary transfer of title, contract to sell or transfer, or sale of the secured property, subordination of the City's loan, whichever is earlier. 4. There are no pre-payment penalties if you want to pay this loan off. No partial payments of monthly payments will be accepted. 5. Actual loan terms may vary from borrower to borrower depending on special circumstances. Questions and applications to the loan program should be made to: Housing Division staff at City Hall 300 Forest Avenue, Pacific Grove, CA 93950 Phone: (831) 648-3199 Fax: (831) 648-3184 Email: Housinqci.pq.ca.us Revised 8/30/12

I' INIIIAIHDVIIN cro City of Laguna Beach I City of Alameda City of Albany City of Belmont City of Berkeley [ City of Burlingame I City of El Cajon I City of El Cerrito City of Emeryville City of Hercules I City of Kensington I City of Lakeport I City of Oakland City of Pacific Grove City of Pacifica City of Petaluma I City of Pinole City of San Mateo City of Santa Barbara City of Sausalito City of Ukiah XXX X XXXXXXXXXXXXX Private Sewer Lateral Ordinance Enforcement of Ordinance Violations X X X XX XXX X XX Sewer Inspection/Certification at Point of Sale X X X XXX X X X Sewer Inspection/Certification Remodel Projects X X XXXXXXXXXXXX Sewer Inspection/Certification - Commercial/Industrial every 10 X X years Sewer Inspection/Certification - Post Sewer Lateral Spill X X X X Prequalified Plumbing/ Video Inspector Database X X X X X X X City incentives for participation (loans, rebates, fee reductions) X X X X X

ATTACHMENT 5 939 Glenneyre Street I Laguna Beach, CA 92651 Office: (949) 497-2474 Fax: (949) 376-9744 www.i3gunaboardofrealtors.com info(albrealtors.com RecErma April 1,2014 APR 0 4 2014 Cf ry matvitotws opfice To: John Pietig, City of Laguna Beach City Manager From: The Board of Directors of the Laguna Board of REALTORS Re: Proposed Revisions to City of Laguna Beach, Private Sewer Lateral Ordinance On behalf of the Board of Directors of the Laguna Board of REALTORS, I am communicating our position on proposed updates to the City of Laguna Beach Sewer Lateral Ordinance. The Board of Directors appreciates the invitations to our members in the last few months to attend public hearings and forums both in the City Council Chambers and at our LBOR meeting. Our position is that the Laguna Board of REALTORS does not support mandatory inspections and homeowner improvements at the point of property sale. We request that you consider our proposed process outlined in the attached document. If you have comments or questions on the Board of Directors position on this matter, please contact me, Suzanne Taylor, stavlorgibh1--3ca own. If you have any questions on the details of this suggested ordinance revision, please contact Laguna Board of REALTORS broker member: Wayne Baglin, cam, (949) 497-5111. Mr. Baglin will communicate your staff's changes and suggestions to the Board of Directors for approval. Thank you for your consideration. Sincerely, finnetaylor President Laguna Board of REALTORS

ATTACHMENT 5 Update CLB Sewer Lateral Ordinance Private property sewer laterals shall be video inspected to identify needed repair or replacement: a. At least once every five years, however, a new or replaced lateral is exempt from this requirement for ten years after the installation of the new or replaced lateral. b. When a CLB inspection of its main sewer lines identifies a problem in a private sewer lateral. c. When there is a sewer spill related to a property's private sewer lateral When a property's remodeling project expands the size of the living area by more than 50% and or when the remodel involves an addition of, or expansion of, a bathroom, kitchen or laundry facility. e. When a new home, condominium, multi-unit property or commercial structure is built on a property with an existing sewer lateral. 2. The property owner is responsible for providing the CLB proof that the video inspection has been made as required above. The City shall provide a form for plumbers to complete that the lateral has been video inspected and report on the condition of the lateral, including the need for repairs and or repairs completed. Copies of the form shall be maintained in the CLB property file and by the Water Quality Department. 3. The CLB will notify property owners in writing of the need for them to install and maintain in good working order backflow devices on their private sewer laterals. Copies of these notices shall be maintained in the CLB property file and by the Water Quality Department. 4. CLB forms related to new construction and remodeling requirements shall include sewer lateral video inspection requirements. S. The cui Private Property Sewer Lateral Reference Guide shall be revised to incorporate the new provisions in a modified ordinance. 6. A new section will be added to the CL8 Real Property Report titled "Water Quality Conditions". It shall include statements such as: "1) All private property laterals are required to be video inspected once every five years and cleaned and or repaired as needed. The most recent video inspection of this property's private sewer lateral was (date to be inserted). 2) A backflow device on this property's private sewer lateral is required to be installed and maintained yes or no. 3) CLB notices exist in this property's file regarding its private sewer lateral yes or no. 4) The CLB file for this property contains stipulated water quality requirements specific to this property yes or no. 7. The CLB website shall include the above water quality requirements in appropriate sections, i.e. the "HOW do l" page, and provide a copy of the private sewer lateral video inspection form that can be downloaded/printed for property owner/plumber use. 8.. The CLB will incorporate in its Water Quality ordinance a time period in which private sewer lateral repairs/replacements shall be completed. Past that deadline, code enforcement action shall be taken against the noncompliant private property owner. 9. The CLB will explore opportunities for financial assistance for low income, single family residence, owner occupied, property owners to offset private sewer lateral repair/replacement expenses in excess of $1,000. Submitted by the Laguna Board of REALTORSb April 1,2014