HomeMy WebLinkAboutRe: request/delay/sewer connect ' � 2 " +
MEMORANDUM
To: Jessica Loftus, City Administrator
From: Mike Gaffron, Asst. City Administrator
Date: August 15, 2011
Subject: 3025 Sixth Ave.N. - Request from Property Owner to Delay Sewer Connection
� The City is in receipt of a letter from Brent and Angela McKee, the property owners at 3025
Sixth Avenue North, requesting that they be allowed to construct a detached garage and paver
driveway prior to replacement of their non-compliant septic system via connection to the
available municipal sewer.
Background
The property owners have a non-compliant septic system and were issued orders as early as 1998
to repair or replace the system with a 2005 deadline. They didn't do so, but as a result of septic
system issues throughout their neighborhood, the City extended municipal sewer to this area of
Orono in 2006, and their deadline (now for connection to sewer rather than septic replacement)
was extended to the end of 2007. The property is still not connected to sewer as of today.
Each property served with sewer, including the McKee's, was assessed approximately $10,000
(payable over 15 years) which brought the sewer to the property boundary. The system is a
pressurized sewer which requires that each home have an individual grinder station to connect to
the system. The grinder station is an additional out-of-pocket expense of around $7,500 incurred
by the property owner at the time of connection. Add to this the $2,230 MCES SAC charge and
a$50 permit, and the resulting out-of-pocket connection cost is near$10,000.
During the spring of 2011 the City has been following up on an exterior storage violation at the
McKee property (as noted in the August 8 letter from the McKees). The McKee's have
proposed to construct a detached garage, using some of the stored materials to build the garage,
then using the garage to store the remainder of the materials that are in violation.
The difficulty in City acceptance of the proposed solution is that Municipal Code Section 58-
47(b) (see code section attached) requires that the septic system must be upgraded or replaced at
any time a building permit is required for any improvements on the property. The deadlines for
upgrade/replacement established in 54-47(b) have passed. Because the proposed construction is
not maintenance or upkeep of an existing building, it triggers the requirement for system upgrade
replacement at this time.
The property owners have indicated in various communications with City staff that they do not
have the financial ability at this time to connect to the sewer concurrently with resolving the
storage issue. They have verbally requested that the City consider specially assessing their costs
to connect to the sewer.
Special Assessment of Sewer Connection Costs
In a majority of past similar sewer projects, the City has not been involved in financing the
individual connection costs. In only two past projects has the City been involved in assisting in
the cost of the individual grinder stations: 1) The North Long Lake and Long Lake Country Club
project (1997), in which 10 of 60-plus homes were too low to be served economically by gravity
sewer laterals. The City purchased 10 grinder stations and included those costs in the overall
project cost, which was divided up equally between all 60-plus properties. 2) The Webber Hills
project(2000), in which the City assessed the cost of the project plus an extra$5,000 per lot over
15 years, and then wrote $5,000 checks back to each assessed property owner, which they would
use to pay a portion of their individual connection costs.
There is no precedent staff is aware of in which the City has specially assessed the costs of an
individual sewer connection except as part of the initial special assessment of a neighborhood
sewer project. In many respects, to do so would be akin to acting as a bank and providing a
home improvement loan to a property owner. The City is not a bank, and does not have a City-
operated loan program.
Other Funding Sources
There may be some other sources of funding that the property owners might explore. The
Community Development Block Grant (CDBG) program operated through Hennepin County
comes to mind, which is intended to provide grants or deferred loans to eligible individuals or
households for activities such as single-family home rehabilitation. Basic information about the
CDBG program is attached.
Is Waiving 54-47(b) an Option?
The intent of this code section is to have property owners deploying their financial resources first
toward required property improvements before using them for more discretionary improvements.
The City Council could conceivably waive this requirement if it concluded that the proposed
detached garage and paver driveway are required, non-discretionary improvements or deemed to
be maintenance of an existing building. I think it would be a stretch to reach such a conclusion,
given the facts and circumstances.
Municode Page 1 of 1
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Sec. 58-47. - Building permit applications.
�a� New residence. No building permit shall be issued for any new building that will be connected to an ISTS until
a site evaluation and design is approved by the on-site systems manager.The site evaluation must include the
identification of both primary and alternate drainfield sites suitable for a minimum of a five-bedroom residence.
If the building will be connected to an existing system, a site evaluation and design must be approved by the
city, including the existing system specifications and a future site meeting the provisions of this article.A new
residence must be conneeted to an ISTS meeting the definition of a code system.
(b) Required upgrade orreplacement A sewage treatment system not meeting the requirements of Minnesota
Rules Chapter 7080, as amended,or the requirements of this article,whichever is more restrictive,must be
upgraded,at a minimum,at any time a building permit is required for any improvements on,or use of,the
property, subject to the following:
(1) Any such system for which the city has previously issued orders requiring upgrade or replacement of
the system by December 31,2007,shall not be subject to this requirement until January 1,2008.
(2) Any such system for which the city has previously issued orders requiring upgrade or replacement of
the system by December 31,2010,shall not be subject to this requirement until January 1,2011.
(3) Regardless whether previous upgrade or replacement orders have been issued,this upgrade or
replacement requirement shall not apply when said building permit is for regular maintenance or upkeep
including but not limited to replacement of inechanical equipment such as air conditioning,furnaces,
water heaters,or water softeners, or for re-roofing, re-siding or window replacement.
(c) Construction of additional bedrooms or construction including water-using appliances that will increase the
sewage flow into an ISTS.A building permit shall not be issued until the city confirms that the existing ISTS is
compliant and of adequate size to treat the sewage flow from the building and that a future drainfield site is
designed and preserved. If the existing ISTS must be repaired or replaced,an ISTS design for both the
existing ISTS and a future drainfield site must be approved before issuing a building permit. If expansion or
replacement of the ISTS is required,the ISTS must be installed and inspected before a certificate of
occupancy shall be issued for the construction. Failure to identify satisfactory drainfield sites for the proposed
sewage flow for use now as well as a future site shall result in the denial of the building permit application.
(d) Expansion of an existing building, including decks and patios;construction of an accessory building, driveway
orland alteration.A future drainfield site must be designed and preserved prior to the issuance of a building
permit for any expansion of an existing building, construction to an accessory building or driveway or land
alteration on a property using an ISTS.A building permit will not be issued when the proposed work would
preclude the use of the only future drainfield site approved by the city.
(Code 1984, § 12.30(4)(F);Ord. No. 100 2nd series, §4, 2-10-1992;Ord. No. 147 2nd series, §8. 5-13-1996; Ord. No. 199 2nd
series, § 1(12.30(4)(F)), 5-8-2000;Ord. No. 38 3rd series, § 1, 9-24-2007)
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Community Development Block Grant(CDBG) Program—Hennepin County, Minnesota Page 1 of 2
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Community Development Block p SNRRE QC�,, COnYHCt
Grant (CDBG) Program Community Works
and Transit
The Community Development Block Grant Program (CDBG) is the federal HCWT
government's primary program for promoting community revitalization Email
Phone: 612-348-9260
throughout the county,which has received CDGB funds since 1974. Funds are FAX: 612-348-9710
provided to the county through the U.S. Department of Housing and Urban
Development(HUD)on a formula basis. County funding can only be used in Location:
suburban areas. Bloomington, Eden Prairie, Minnetonka and Plymouth receive 417 N 5th St
CDBG funds directly from HUD, whiie the remaining municipalities participate in Ste 320
the county's program. Minneapolis, MN
55401-3208
Mau It!
CDBG funds can be used for a wide range of community development activities
directed toward affordable housing, neighborhood revitalization,and improved
community facilities and public services. However,the funds can only be used for
eligible activities that address at least one of three national objectives: principally
benefit low and/or moderate income persons, eliminate slums or blight,or meet
an urgent community need.
About the program
Every five years the county prepares a Consolidated Plan that identifies housing
and community development needs,establishes priorities for use of the HUD
resources,and expected outcomes. Annually,cities apply to the county for CDBG
funding. After reviewing proposals for eligibility and relation to priorities,the
county prepares an Action Pian that includes a detailed description for each
activity to receive CDBG funds.
Throughout the year, lower-income households can request assistance from
CDBG-funded programs for needs such as purchasing their first home,
rehabilitating their current home, mortgage foreclosure prevention and a range of
other human services.
Who is eligible
Only cities that enter into a)oint Cooperation Agreement with the county are
eligible to receive CDBG funds directly from the county. Other entities such as a
municipal Housing or Economic Development Authority, nonprofit service provider
or a nonprofit,or for-profit developer can receive CDBG funds by applying
through the city in which the activity wili take place. Individuals can only receive
CDBG funds through a specific CDBG-funded activity, such as single family
rehabilitation,or receive benefits from a CDBG-funded activity such as
transportation or senior center programs.
Program eligibility criteria applicable to individuais and households are different
for each program supported with CDBG funds.Generally,CDBG assisted
programs can only serve households with annual income below 80 percent of area
media income. Direct financiai assistance to an individuai or household is
generally in the form of grants or deferred loans.
An agency,organization or business interested in applying for CDBG funding will
need to contact the City Hall of the city their project or program is located in.
Only cities can apply to the county for funding, but input from residents is always
welcome.Annuatly, participating cities solicit funding proposals and hold a public
hearing prior to submitting their funding requests to the county.
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Community Development Block Grant (CDBG)Program—Hennepin County, Minnesota Page 2 of 2
. - ., �
Individuals interested in applying for assistance through a CDBG-funded program
should contact the city in which they live.The City can inform you of program and
appiication requirements. Public services assisted with CDBG funding typically
exist in the community already. Pub�ic access to the services is generally through
the service provider.
Previous Projects
CDBG funds have been used in the following areas:
• Housing rehabilitation -financial assistance to maintain decent, safe and
sanitary housing conditions for low-income homeowners.
• Affordable homeownership assistance-financial assistance to help low-
income househoids acquire a home. Assistance is usually in the form of
down payment assistance or other write-down of the cost of the home.
Homebuyers are provided with a deferred loan, i.e. repayme�t is required
unless you live in the home for more than a certain number of years.
• Family, senior and youth services-funding for housing counseling,child
care, emergency services, domestic abuse shelter and counseling,senior
centers, senior chore services,youth diversion and youth activities.
http://www.hennepin.us/portal/site/HennepinUS/menuitem.b 1 ab75471750e40fa01 dfb47cc... 8/17/2011