CITY COUNCIL AGENDA ITEM
Memo Date: September 20, 2021
Agenda Date: September 28, 2021
Prepared By: John "Jack" Walsh, P.E., Utilities Director
Through: Stockton Whitten, City Manager
Requested Action:
title
Informational only - Indian River Drive Septic to Sewer
End
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BACKGROUND:
Two areas known as areas J and K within the city limits of Cocoa were identified as areas for septic to sewer conversion and eligible for funding through the Save Our Indian River Lagoon (SOIRL) sales tax levied by Brevard County. Both areas are located on Indian River Drive and contain a total of 130 homes.
Appropriations are based on the estimated pounds of nitrogen and phosphorous removed by removing or improving septic systems. The original appropriation for Cocoa was $4,338,360 for both areas J and K for 100% participation.
Cocoa engaged a consultant to prepare a preliminary feasibility study to identify more specifically how many homes could be served, if a gravity or pressure force main system would be required and to understand the geology, and the challenges of construction in this area. Upon completion of a preliminary layout for the sewer, a community meeting was scheduled for citizens to ask questions and see the proposed scope of work.
The final design is underway and final plans will be complete in December 2021. An opinion of probable costs was prepared by the Engineer of Record and the costs vary based on the method of construction used by a contractor to install the sewer mains. Typical open cut techniques may be used in some areas and special subsurface directional drilling will be required in other areas and therefore the costs will vary greatly. In addition, of the 130 properties eligible for funding, it is only possible to serve 97 lots based on the engineering constraints.
SOIRL has recently increased the pro rata share funding available per lot. Currently, the 97 lots would be eligible for a total of $5,446,938 in SOIRL funding for 100% participation. Based on the Engineer’s Opinion of Probable Costs developed with 60% plans completed, in addition to the SOIRL funding, the cost to the city could range from $1.55M to $3.15M to fully construct the gravity sewer mains. This assumes 100% participation of the 97 lot owners and the costs increase as the participation rate decreases. At 40% participation, the city could be responsible to pay $4.82M to $6.42M of reimbursable costs back to Brevard County.
At the community meeting hosted by Staff and our consultant, the project was presented as a potential no cost to the homeowners based on information known at the time. Per our current discussion with Brevard County, the costs for the design and construction of the sewer system are reimbursable and the onsite costs homeowner’s costs are not reimbursable. A survey was conducted in conjunction with the community meeting and 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. Staff is aware of an FDEP 319 grant that can be used to offset costs, but the funding will only cover 60% of the homeowner costs. Note, if the average on site cost per lot is $15K and the impact fee is $1,250, the net cost to the homeowner is estimated to be approximately $6,500 per lot.
Currently, Staff is having its consultant complete the final engineering design. However, due to the significant financial impacts to the city and to homeowners, Staff will continue to look for opportunities to close the funding gap for the infrastructure and the costs to the homeowners.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
Budgeted N/A
If not budgeted, is amendment/transfer attached? N/A
PREVIOUS ACTION:
N/A
RECOMMENDED MOTION:
Recommendation
Informational only.