Discuss Septic System Repair Policy

Attached to this case is a copy of a policy adopted by the City in 1992, which relates to the repair of failed septic systems.  As is explained in the preamble to the policy its purpose is to insure public health and safety.  Over the years the policy has rarely been used to provide funding for the repair of failed septic systems.  Implementation of the policy has only been in cases where the property owner refuses to address the failure, or where funding for the repair could not be obtained elsewhere.  On August 19, 2009 the Public Works Committee discussed the septic system repair policy in conjunction with a resident request for assistance.  The recommendation of the Committee at that time was to reaffirm the policy, but they also directed staff to research other alternatives for financing such repairs.  The intent of the Committee was to leave the City policy in place, which involves special assessment of the repair, but only as a last resort.

Staff has been approached twice in the last two years regarding use of this policy to fund failing septic systems.  In late 2009 the City did exercise use of this policy to repair a failing residential septic system, at which time the policy was reaffirmed by the Council.  Last month the Council again agreed to use this policy to address another failing residential septic system, and staff continues to work through this matter with the property owner.  During this most recent request the Council thought they may want to consider some language revisions to the policy, since it may be more likely to be utilized in the current economic times.

Staff researched several alternative funding options that may be available through various assistance programs within Anoka County and the state of Minnesota.  The Anoka County Community Action Program (ACCAP) has emergency assistance monies available for housing related issues, with eligibility requirements based upon family income guidelines.  In 2010 ACCAP disbanded and forwarded all requests for financial housing assistance to the Greater Metropolitan Housing Corporation (GMHC) Housing Resource Center, which administers community block grant funds through a contract with Anoka County.  The eligibility requirements include; home value, age of the unit, residence time within the unit, and family household income.  GMHC currently has a two year waiting period for this program.

The Minnesota Housing Finance Agency is a state agency that works with local communities to distribute funds to residents that meet their eligibility requirements.  They can issue interest free loans to those that meet their criteria, and place a lien on their property for repayment.  If the resident were to remain in the home for a period of ten years the loan would be forgiven.  Unfortunately, since ACCAP was in existence at the time this entity was going out for contracts with local carriers, Anoka County was not included in the pool and therefore funding within Anoka County is not available at this time.  The program is currently working to remedy this situation, but it will take some time to resolve.  During the investigation staff also learned of a couple of other potential assistance options, which include a "Rebuilding Together Loan" with the County, and "Fix Up Fund Loan" with the state.

During the most recent City Council meeting on November 22, 2011 to discuss use of this policy, a few items were mentioned by the Council as potential revisions to further reinforce the City's septic system repair policy.  Items for consideration include:

• Should there be a minimum/maximum income requirement?  What is the appropriate supporting documentation that must be submitted to determine need (this could include the applicant's income status, and their due diligence in securing alternative funding options)?
• Should there be different application of the policy depending on the severity of the failure (degrees of failure)?
• Should there be some language included in the standard agreement/assessment waiver that requires prompt repayment of the assessment should the applicant receive alternative funding?  This could potentially require the applicant to continue seeking alternative funding even after the improvement is complete.

Staff time will be used to incorporate any requested revisions to update this policy.  Funding for implementation under this program comes from the sanitary sewer enterprise utility fund, and is paid back with a special assessment against the property.

Staff is looking for input from the City Council on whether they would like to revise the current policy.

Based upon discussion.