Laserfiche WebLink
To: City Council Facilities and Transportation Committee <br /> From: City Attorney <br /> Re: Legal Questions Related to Discussion Regarding Private Sewer Lateral Replacement Policy <br /> Date: April 12, 2011 <br /> Page: 5 <br /> In the course of the public discussion on this issue, the CityCouncil requested guidance as <br /> to whether the City may legally pay the costs of connecting property owners' private sewer <br /> laterals to new City owned and maintained main sewer lines. <br /> Map. 218 analysis for Qty f narazrg of Privirp Lateral Sauer L ina <br /> First, the Municipal Code does not allow for City financing of private lateral sewer lines. To <br /> allow it, the City Council must adopt an ordinance amending section 3 -14 -640. <br /> Assuming this occurred, it is our understanding that the Gty's Sewer Utility Enterprise <br /> Fund does not have enough money to reimburse City sewer utility user's costs to re- connect <br /> their private sewer laterals should it become necessary for them to re- connect to a new City <br /> main sewer line. A rate increase would be necessary to create a separate fund within the <br /> Sewer Utility Enterprise Fund that would be dedicated exclusively for reimbursing sewer <br /> utility users for the costs to re- connect their private sewer laterals to new City main sewer <br /> lines. It is our opinion, that should a study related to such a rate increase be adequately <br /> • <br /> created, and properly vetted through presentation to City sewer utility users in accordance <br /> with the Prop_ 218 majority protest hearing princess without garnering a majority protest, <br /> than that rate increase and use of funds would be appropriate and would have a strong basis <br /> to withstand a Prop. 218 challenge. <br /> Prop. 218's substantive requirements provide that a "property - related fee" must not: <br /> a Generate revenues in excess of the cost of service for which the fee is charged. (Id, § <br /> 6, subd. (b)(1).) It is our opinion that a fund set -aside exclusively to reimburse <br /> property owners to pay for the costs of re- connecting their private sewer laterals to <br /> the City's system would by definition not generate revenues that would exceed the <br /> costs to maintain sewer service to property because it would be a reimbursement <br /> program with strict documentation and reporting requirements to monitor the costs <br /> associated with the revenues generated. If revenues did exceed costs, than <br /> mechanisms would be put in place to either refund the excess, set -aside an <br /> emergency /disaster fund, or carry-over the excess for coverage during especially busy <br /> years. <br /> b. Be used for a purpose other than the service for which the fee is charged. (Id, § 6, <br /> subd. (b)(2).) We believe that this requirement would be satisfied if a separate fund <br /> was created exclusively to reimburse any property owner, regardless of reason, the <br /> costs needed to re- connect their private sewer lateral to the City's main sewerage <br /> system. <br /> A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGRES SACRAMENTO SAN FRANCISCO SANTA ROSA FRESNO <br />