CITY COUNCIL AGENDA ITEM
Memo Date: July 23, 2024
Agenda Date: July 23, 2024
Prepared By: Stockton Whitten, City Manager
Through: Stockton Whitten, City Manager
Requested Action:
title
Council Approval of Grant Application for Fiscal Year 2024-2025 Water Quality Improvements Grant and Indian River Lagoon Water Quality Improvements Grant Programs for the Indian River Drive Septic to Sewer Conversion.
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BACKGROUND:
Councilwoman Koss is requesting the Council consider this matter as a walk-on item. The grant application period for the Water Quality Improvements and Indian River Lagoon Water Quality Improvements Grant Programs ends on July 31, 2024. These grant programs allow applicants the “opportunity to submit proposals that will bolster existing efforts to protect and restore Florida’s water resources.” Because of this imminent deadline Councilwoman Koss would like the Council to approve City staff applying to both programs to potentially preserved the additional allocation of funding from the Brevard County SOIRL program that was approved on October 25, 2022 by the Board of County Commissioners. An additional $545,373 was approved for the J&K Septic to Sewer Project with a provison that it be committed to the project as match funding by October 25, 2024.
As the Council is aware the appropriations request submitted by Representative Altman was not approved in the July 1, 2024 State Budget and therefore the J&K Septic to Sewer Project is not fully funded per the previous Engineer’s estimates provided to the Council. The Engineer of Record costs vary based on the method of construction used by a contractor to install the sewer mains. The cost estimates placed the costs of construction of a new gravity system at $6.6 to $8.2M. This estimate does not inlcude homeowner on site costs. SOIRL currently has approved an allocation of approximately $6.1M for 88 lots toward the design, construction of a new gravity sewer system to eliminate existing septic systems assuming 100% participation.
The cost for the project using SOIRL funding along with potential grants could potentially cover all costs based on current budgets assuming 100% participation of the 88 lot owners. However, cost over runs could range from $691K to $4.9M depending on the actual connections achieved. Note as the level of participation decreases, the costs to the city or citizens increase. For example, at 70% participation using the worst-case estimate, the city or citizens could be responsible for repaying an estimated $2.3M of reimbursable costs back to Brevard County.
The Council should be reminded of the following issues, facts, and/or matters regarding this potential project.
• Currently, the Code of Ordinances does not require existing homeowners who have functioning septic systems to connect to city sewer system.
• The Council has not addressed or provided direction on the requirements to connect or not connect and to address shortfall in funding that is not covered by either the SOIRL funding for infrastructure or a future grant from FDEP for homeowner costs. The following options were previously provided to the Council:
o Option 1: Withdraw the sewer infrastructure project and let the homeowners submit and qualify for advanced septic treatment funding from SOIRL.
o Option 2: Mandatory Participation. Require all homeowners to connect to the sewer system once completed. Council must determine how cost overruns are funded If cost overruns (if they occur) for public infrastructure are greater than SOIRL funding and any applicable grants, the cost above the available funding will be paid for by: A) Utilities/Utility Rate Payers or B) Homeowners
• A survey was conducted in conjunction with a community meeting held in November 2020. Of the 40 respondents, 22 homeowners or 55% were not supportive of the project if the homeowner was responsible for costs associated with connecting to the sewer system.
STRATEGIC PLAN CONNECTION:
Investment in Public Infrastructure
BUDGETARY IMPACT:
Estimated Cost and potential shortfalls presented in the body of the agenda.
PREVIOUS ACTION:
The Council has discussed the J&K Project on numerous occasions with direction to pursue various funding opportunities but with no direction on various policy matters or as to whether to pursue the advance septic or sewer conversion options.
RECOMMENDED MOTION:
Recommendation
Provide Direction to as to whether to submit FDEP grant applications by July 31, 2024, for the Indian River Drive Septic to Sewer Conversion.