Consider Use of the City's Septic System Repair Policy to Replace a Failing On-Site Septic System at 14760 Bowers Drive NW

Attached to this case is a copy of the City's septic system repair policy, which was adopted by the City in 1992 and relates to the repair of failed septic systems.  Revisions to this policy were discussed earlier this evening under a separate case as a result of previous City Council direction.  Use of this policy has rarely been used since inception, with all requests coming in the last 3 years.  On August 19, 2009 the Public Works Committee discussed the septic system repair policy in conjunction with a resident request for assistance, and the recommendation at that time was to reaffirm the policy.  The intent of the Committee was to leave the policy in place, which involves special assessment of the repair, but only as a last resort.

Staff has now been approached by the property owner at 14760 Bowers Drive NW requesting assistance to repair their failed septic system.  The City inspected the property on November 17, 2011, and found several code violations (see attached letter).  The property has more items needing correction than just the failed septic system, but without improvements to the septic system internal plumbing repairs cannot be made.  The property owner has stated that a portion of the plumbing, including the kitchen sink and clothes and dish washer, have been disconnected and either drain into a bucket or are hooked into a pipe system that has in the past discharged externally to a cement trough that leads to the Mississippi River.  Two separate inspections revealed that the trough system has been removed, but remain in a condition that could easily be re-installed.

Staff met with the property owner to discuss timing for the needed repairs, and they inquired about the City's septic system repair policy for funding assistance.  They were given contact information for alternative funding options that may be available to them through various state and county agencies, and were instructed to investigate whether they would qualify for such programs.  They were also instructed to contact their mortgage provider and/or banking institution to see if they could secure a home equity loan to complete the required improvements.

The property owners contacted staff at the end of December stating they were unsuccessful in securing alternative funding, and requested use of the City's septic system replacement policy.  When asked about the option of the home equity loan, they stated that they currently didn't have a mortgage on the property and wouldn't be able to afford a monthly payment anyway.  They wanted to use the policy so the costs could be added to their taxes, which would be resolved if/when they are able to sell the property.  They have stated that they have tried to market the property in the past, with no success, and they would be listing it again in the spring.

Due to the nature of the various improvements needed on the property to bring it into compliance, use of the septic system repair policy is a difficult decision.  Without first correcting the failed septic system, internal plumbing repairs cannot be made.  Even if the septic system is repaired how can we insure that the other deficiencies are corrected to come into compliance.  Staff recently attempted to gain access to the home to perform follow-up inspections in an effort to determine the extent of needed repairs, but was unsuccessful in reaching the property owner.  We will continue our efforts to contact them prior to the January 10th Council meeting, with the hope of gathering additional information for Council consideration.

Staff has researched Anoka County property records and discovered that all back taxes were recently paid, amounting to approximately $9,500 over the past 3 months.  There are, however, outstanding charges due to the City in the amount of approximately $1,500 for abatement services, delinquent utility billing, and previous assessments for street maintenance.

If directed by Council to proceed under this policy, staff would need to prepare a design for the septic system and solicit quotes from septic system installers while the property owner works with the City Attorney on executing the required paperwork.

If all other financing options have been exhausted by the property owner, and the City Council is comfortable with the property owner claim of financial hardship regarding the use of a conventional loan, staff recommends use of the septic system repair policy to correct the imminent health threat and repair the failing septic system at 14760 Bowers Drive NW.  There should, however, be some assurances put in place for the timing and completion of all other required improvements to bring the property into City code compliance.

Funding for this program would come from the sanitary sewer utility fund, and paid back with a special assessment against the property.

Motion to approve the use of the septic system repair policy to repair the failing septic system at 14760 Bowers Drive NW.

-or-

Motion to deny the use of the septic system repair policy to repair the failing septic system at 14760 Bowers Drive NW.