SUBJECT: Implementation Plan to Restore Sewer Lateral Service and Budget Modification No. 38
REPORT IN BRIEF
At the April 20, 2004 Utility Rate Hearing, Council requested that staff return with an implementation plan and budget modification to accelerate the restoration of the service to maintain, repair, and replace private sewer laterals, and install clean outs on private sewer laterals to the current fiscal year.
Staff has prepared an implementation plan detailed in the discussion section of this report to bring the service back up to full capabilities almost immediately. This will require the addition of $63,694 to the FY 2003/2004 budget for the Wastewater Management Program. Staff is recommending adoption of Budget Modification No. 38 to appropriate funds to restore the Sewer Lateral Service in the current fiscal year.
BACKGROUND
For the FY 2003/2004 Utility Rate setting process, staff identified reductions to the Wastewater Management Program. One of these reductions was the service to maintain, repair, and replace private sewer laterals, and install clean-outs on private sewer laterals that had been damaged by the intrusion of roots from City street trees. Per Council direction from the March 10, 2004 special meeting, staff included the restoration of the sewer lateral service as a budget supplement for consideration with the FY 2004/2005 proposed utility rates.
At the FY 2004/2005 utility rate public hearing, Council asked staff if the restoration of the service could be done sooner than the beginning of FY 2004/2005. Staff responded that they felt it could be done in the current fiscal year to at least some degree. Council directed staff to return with an implementation plan and budget modification to restore the sewer lateral service as soon as possible.
EXISTING POLICY
Wastewater Management Sub-element Goal 3.3D.6: Continue to make landowners responsible for maintenance of sewer laterals, with the exception that the City will make repairs to laterals between the property line and sewer mains caused by broken pipes and street tree roots.
DISCUSSION
Restoration of the service to maintain, repair, and replace private sewer laterals, and install clean outs on private sewer laterals to the level last provided in FY 2002/2003 will require a deliberate but expedient approach.
Staffing, Expenses, and Equipment
The first challenge to restoration of the service is the staffing of the service, the appropriation of money to fund expenses related to the service, and the provision of the equipment needed to provide the service. The original cut included the removal of the equivalent of three full time utility worker positions, expenses for goods and services, and the internal rental costs of city equipment.
The Field Services Division of Public Works proposes to restore, through budget modification, a portion of the yearly budget for employee costs (salary and benefits), purchased goods and services, and equipment for this service. The equipment has not yet been sent to surplus so is available to be brought back on line immediately.
Staff projects that a total of 1,041 hours will be needed to implement this service for the remainder of the fiscal year. This will likely be accomplished through the hire of temporary or contract workers until the recruitment (or transfer from other divisions) of full time employees can be completed.
Summary of Implementation Plan
The Field Services Division will respond to calls as necessary, to meet the previous goals of assisting property owners in reopening blocked sewer laterals, in public right-of-way and on private property, where the reason for the blockage appears to involve, or be impacted by, the presence of a City street tree.
To complete this work the Division will use the resources described above to perform the work or contract out to private plumbing firms as necessary. The Division has an open purchase order with at least one plumbing firm that has provided some of these services in the past, so this is easily implemented.
The Division will also install clean outs where needed, at no cost to the property owner, either at the property line or nearer to the house, depending upon what is needed to complete each job to the satisfaction of the property owner.
In general, staff will work to schedule non-emergency work that is needed to complete the repair or maintenance of the sewer lateral in the situations mentioned above. If emergency situations are discovered, staff will bring to bear the resources needed to immediately assist and complete the work as necessary to provide our customers with a satisfactorily operating sewer lateral.
Finally, Public Works will continue to monitor the instances and locations of sewer lateral repair work to be able to report the effectiveness of sewer lateral repair activities. This will allow staff to better project, through historical trends, the specific number and type of lateral repairs being performed. Staff is also projecting that as the city ages, this service will grow in size. Closely monitoring trends will help staff manage lateral repairs as efficiently as possible.
FISCAL IMPACT
Staff recommends Council approve Budget Modification No. 38 to appropriate $63,694 from the Wastewater Management Fund Rate Stabilization Reserve into the Wastewater Management Program.
Costs include $46,189 in salary and benefit costs, $4,500 in Construction Services (for contract plumbers and related services), $6,425 in fleet rental costs, and $6,580 in miscellaneous Purchased Goods and Services.
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BUDGET MODIFICATION No. 38
FY 2003/2004
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Current |
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Increase/
(Decrease) |
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Revised |
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Wastewater Management
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$3,794,215 |
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($63,694) |
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$3,730,521 |
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Expenditures: |
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Program 342 Wastewater Management |
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$10,974,120 |
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$63,694 |
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$11,037,814 |
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.
ALTERNATIVES
1. Adopt Budget Modification No. 38, appropriating $63,694 from the Rate Stabilization Reserve of the Wastewater Management Fund to the Wastewater Management Operating program to fund the restoration of the service to maintain, repair, and replace private sewer laterals, and install clean outs on private sewer laterals.
2. Do not adopt Budget Modification No. 38 and delay restoration of the service to maintain, repair, and replace private sewer laterals, and install clean outs on private sewer laterals until the beginning of FY 2004/2005.
RECOMMENDATION
Staff recommends Alternative 1.
Prepared by:
James G. Craig
Field Services Superintendent
Reviewed by:
Marvin A. Rose
Director of Public Works
Reviewed by:
Mary J. Bradley
Director of Finance
Approved by:
Amy Chan
City Manager