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01-205Counal Filc # � \' �5 ��IGl��L Presented Hy Referred To Green SAeet r ,�O�al.y� F?ESOLUTfON OF SAINT PAUL, Mj�INESOTA a�, COC�::t.ee: Da�e I WHEREAS, the Board of Water Commissioners did approve a Lead Water Service Replacement 2 Assessment Program (the "Program"), pursuant to the authority granted the Boazd and the City of 3 Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and 4 5 WFiEREAS, the Council of the City of Saint Paul did subsequently adopt Resolution I�o. 94-1743 6 which approved and adopted the Program; and 7 8 WFIEREAS, the Board now desires to amend the Program to extend eligibility for the Program to 10 11 12 13 14 15 16 17 18 19 20 all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 years, and to revise procedural steps in order to improve the implementation of the Program; and WHEREAS, the Boazd, acting pursuant to the authority granted in Chapter 504 Laws of the State of Minnesota 1994, did approve an Amended Lead Water Service Replacement Assessment Program dated February 13, 2001, ("the Amended Program") which does accomplish said desired changes, does now request approval and adoption of the Amended Program by the Saint Paul City Council; and WHEREAS, the Council has considered the Amended Program as approved by the Board; now, therefore, be it 21 RESOLVED, that the Council of the City of Saint Paul, acting pursuant to the authority granted 22 in Chapter 504 Laws of the State of Minnesota 1994, and upon the recommendation of the Boazd 23 of Water Commissioners, does hereby approve and adopt the Amended Lead Water Service 24 Replacement Assessment Program dated February 13, 2001. Requested by Depa:�ment of: Saint Paul Re ional Water Services By. ,(iCw�ric./ � ��_'I� e�r`a1 Manager � Adoption Certified by Coun�il Seaetary Form A.ppr e by Ciry Attomc � E}' _ BY \ � � � s�...�� — . ._ . . . . ff 3, � • . .:.. .:. . ... .. . . I: ,'i, . _ /r/ � O �i%i /�// � .4dopted by Councit: Date� � ,�pp� c ✓ GREEN SHEET � ROUiVIb � TOTAL # OF SIGNATURE PAGES 1 No 1 n2? � 2�� U �...,��.«��Sr zaa-a U �.�.. _ ❑ 2 �. plVAiid11EY ❑ QIYCIiWt � NNIIO�LfERNCFtER. ❑ HUILJ/iLfFRY/KCf6 � wroRlw��sasr�xp ❑ (CLIP ALL LOCATIONS FOR SIGNATURE) Approval of Cou_�cil Resolution approving and adopting an Ameaded Lead Water Service Reglacement Assessment Progxam. Attachments: 1) Proposed Resolution and Amended Program 2) Staff Report 3) Board of Watex Commissioners Resolution No. 4759 4) 1994 Program W _ PL4NNING COMMISSION _ CIBCAMMITTEE CIVIL SERVICE COMMISSION A Board of Wate.r CnmmicsinnpTS tiasmis ae�rm cverwoiicea unaer a cormac�satnic aepsnnienn VES NO Has this pnsoNfiim ever heen a dty empbyce9 YES NO Does Mis persoMm� P� a sitlll not nolmallyP� M' �Y wr2M city emPloYee? YES NQ Is Mis pnsoMim a targetetl ventlol'1 YES NO The current Lead Water Service Replacement Assessment Program is available only to properties within street paving projects and provides an assessment period of no longer than 10 years. �VANTAGESIFAPPROVED ' All Saint Paul properties will be eligible to participate in this voluatar} financing program and the proposed assessment period of up to 20 years will make replacement of private property lead water services more affordable. None AMOUNT OF TRANSACTION SOURCE IP{FORIMT{ON(E%PWNJ _ COST/REVENUE BUD6ETm (CIRCIE ON� YES NO AC7rvIT�YN - " � V b.�' � 6� � S>a�d��`t'�� ?�S�'c�i.�Cl9 b�°��f .� FEB 16 7�i � �.. n , _ ._.�>,�>, �,.:�..<:�.w: � _ _ o � -a�os AMENDED LEAD WATER SERVICE REPLACEMENT ASSESSMENT PROGRAM February 13, 2001 I. INTRODUCTION A. The primary purpose of this Program is to provide financial assistance to Ciry of Saint Paul properiy owners for the purpose of replacing existing lead water connections on their property. B. The Boazd of Water Commissioners and the City of Saint Paul sought special legislative authority to enable the development of a program to provide financial assistance to properiy owners who replace lead water pipes on their property. The Minnesota Legislature granted that authority by the enactment of Chapter 504 Laws of Minnesota 1994. C. In the enactment of Chapter 504, the Legislature found and determined that the reduction of lead contaminants in drinking water is a public putpose, and that providing financing to property owners who replace lead water pipes on their property is a public purpose. D. In part, Chapter 504 established that the City and the Board can develop a program to provide loans to property owners for the replacement of lead water service connections. It fiirther established that repayment of such loans can be accomplished through a special assessment collected with real property taxes. II. GENERAL DESCRIPTION OF THE PROGRAM A. All properties within the corporate limits of the City of Saint Paul shall be eligible for participation. To the extent that funds are available, all owners of property having lead water service connections will be given the opportunity to participate in this program. B. The portion of a water service connection from the water main to the property line is the responsibility of Saint Paul Regional Water Services, wkdch shall be responsible for the costs associated with its replacement. C. The portion of a water service connection from the property line into the building is owned by, and is the responsability of, the property owner. Property owners will be encouraged to replace this portion of their lead water service. D. Properiy owners may elect to have the costs of replacing the private property portion of their water service connection paid by the Board of Water Commissioners. Such payment, together with interest, sha11 be repaid to the Boazd through a special assessment against the property, to be collected as part of the real estate taxes. N�\Lead replacemenfl2001 Assessytogram_0110 wpd O�-�oS AMENDED LEAD WATER SERVICE REPLACEMENT A5SESSMEI�T PROGRAM page 2 III APPLICATION A. Property owners who desire to participate in this Program shall make application to Saint Paul Regional Water Services and will be provided the necessary forms which must be returued for review and approval. IV. CONSTRUCTION OF WATER SERVICE; REIMBURSEMENT; ASSESSMENT A. Costs eligible for reimbursement through this program are those related to the installation of a new copper service from the water stop valve or property line, depending on construction requirements, up to and including the water meter setting, including the cost of any excavation restoration and Saint Paul Regional Water Services plumbing permit and turn-on fees. No other plumbing work costs shall be efigible for reimbursement. B. Following approval by Saint Paul Regional Water Services of all eligible construction costs and docuxnentation, payment will be made by Saint Paul Office of Financial Services issuing a check made payable jointly to the property owner and to the plumbing contractor. C. Saint Paul Regional Water Services will calculate the total costs, including approved construction costs plus all administration and financing costs, and shall assess these costs in accordance with the provisions of the City of Saint Paul's Charter and Minnesota Statutes Chaptex 429. D. The amount assessed shall be made payable, together with interest, over a period not to exceed 20 years. - End - N:\Lead replacement�2001 Assess�mgram_0110.wpd 2 � `-3cS STAF� REPORT Amended Lead Water Service Replacement Assessment Program, February 13, 2001 .Ianuary 25, 2001 In 1994, the State of Minnesota granted authority to the Board of Water Commissioners and the City of Saint Paul to develop a program by which private lead water connections can be replaced and the cost of replacement financed by the City or Board. A replacement assessment program was developed and approved by the Board and the City prior to commencing the Program. Since its inception, 1,156 properry owners have participated in the Progzam. At this time, staff is proposing a number of revisions to the Program which reflect changing conditions and proposed improvements, as listed below. Emphasis The original Program blended the lead service replacement assessment Program in private property with the SPRWS replacement of lead services in street right-of-way. Extending the Program eligibility to all properties in the City, as described below, made this link no longer necessary. The proposed amended Program addresses only the assessment of private properiy replacements costs, in keeping with the statements and intent of the authorizing Chapter 504 Laws of Minnesota 1994. Elislbility The original Program specified that only properties where the urility is replacing the street portion of the lead water service will be eligible for participation, with the concentrarion being in street conshuction projects. As awareness of potential health problems associated with lead leaching into drinking water from lead service pipes increased, property owners outside of project areas began requesfing participation in the assessment Program. Following informal approval by the Board, the eligibility was extended to all properties in the City of Saint Paul. Assessment Period The Program initially established an assessment period of 10 years because private properiy replacement costs were initially averaging about $1,200 and longer periods seemed unnecessary and undesirable for both the property owner and the Boazd. Replacements now average $1800, with many going as high as $2,500. A replacement performed in 1998 at 214 Maple Street resulted in a total cost of $16,750, due mostly to the excavation being in a steep bank and the replacement of a retaining wall as part of the restorarion. The amended Program as proposed establishes an assessment period of up to 20 years, a typical period for public improvements assessed by Saint PauPs Real Estate Division. Language The proposed amended Program contains revised language to better communicate intent and to reflect the change in name from Saint Paul Water Urility to Saint Paul Regional Water Services. Excessive Detail The original Program detailed numerous steps and requirements staff would follow to process the reimbursements which were proposed prior to inifiation of the Program. Early on in implementation it was recognized that some were not pracficable, and fisther experience revealed even more to be unnecessary. The proposed amended Program addresses process steps in mare general terms. This will allow the evolution of process steps without the necessity of further amendments to the Progam. N:\CLERICAL�BOARD�Resolutlons�MISCU.ead_assess_ammd_sfaff report 001 wpd o � -�� BOARD OF WATER COMMISSIONERS RESOLUTION — GENERAL FORM PRESEIVTEB Bv j�aselmann COMMISSIONER No 4759 pA � Februarv 13, 2001 WHEREAS, the Boazd of Water Commissioners did adopt Resolution No. 4339 which approved a Lead Water Service Replacement Assessment Program (the "Program"), pursuant to the authority granted the Board and the City of Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and WHEREAS, the Council ofthe City of Saint Paul did subsequently adopt Resolution No. 94-1743 which approved and adopted the Program; and WHEREAS, the Board now desires to amend the Program to extend eligibility for the Program to all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 yeazs, and to revise procedural steps in order to unprove the implementation of the Program; and WHEREAS, staffhas prepared an Amended Lead W ater Service Replacement Assessment Program dated Februaryl3, 2001, ("Amended Program") which does accomplish said desired changes, and the assistant city attorney has reviewed and approved the Amended Program as to form; now, therefore, be it RESOLVED, that the Board of Water Commissioners does hereby approve the Amended Lead Water Service Replacement Assessment Program dated February 13, 2001; and, be it FURTHER RESOLVED, that the Honorable Council ofthe City of Saint Paul is hereby requested to approve and adopt said Amended Program. Water Commissioners Yeas Anfang Nays Cardinal Vice President Haselmann President Reitei Adopted by the Board of Water Commissioners In favor 4_ ppposera 0 Februarv 13. �g 2001 � / / �..1 . �±1� ' • o � -a.os z. tg94 - zrt� LE�D A�TBR SER�C° R�P�C� ?`iT YROG1ZA.0 Z'�yPl'RODIICTT_62i - i .�:_ ' �� A. The Bcard o: Watsr Co�niss;aners z;�d '-�} e City of Saint ?au1 souc'r_t speci=_1 1ea:sla�ive au�ori�� to enable the deve3opmen� ai a p:cg�'� to assist residential and business nrooe*_�y ocmers ia the replacement of lead wzter se�-vica connect*_ons. Tf^�e Minnesota Legislature aran�ed tha� authority by the enaet�ent of Cha�ter Soa �,zyrs flr uinr.esoLa 1944. 3. In the enactruen� of ChdFL°S 504, �.he Legislature found and deteriained that "tha retluction or lead con�aminan�s in drinking water is a public puraose, and that providing financing to owners of r2sidences and businesses to replace lead <aater pipes located on tuheir property is a public purpose". C. Chapter 504 allows for the develop�ent of a progra� by which private lead water connections can be replaced either by the City or the property owner.and the cos� of replacasaent financed by the City/Board. Repayraent of these costs can be acconnlished either as a specia2 assessnent collected with real praoer:.y taxes or added to the regular water billings. � D. The primary purpose of che prograa is to elir�ina�e existing lezd pipe water connections, including portions of the pipe owned by tha Soard and the priva�ely owned portion. Replacenent of lead pipe service connections will eliminate a aajor source lead in drin}cing water. . a11 oi ZS. G�2IERAL DESCRIPTION OF THE PROGFt�i A. To the extent that funds are availzble oWners o£ residential and business property having lead water service connections wi11 be given the apportunity to participate in this program. B. The part.ion of a water service connec'ciun from the property line into the structure is owne� by and is the responsibi�ity oL the property ownez. The service connection from the property line to the water main is the responsibility of the Water IItility, and the IItility sha2i be responsible £or the costs associated with its replacement. � C. Only those pronerties in which the IItility is replacing the s}s'eet portion of the lead wat� service will �e �,��}OS eliqible for narticipation. The Utility is concentratinq the lead s�'vice replacement nroy2aa _n sewer construction, paving ar.d ove_rlay projects_ - Fut.L e projects, nowever� �ay e�end outsice thes2 - areas. D. :esidential and business progery ow�ars will be encouraged LQ TG �� 4C� e.Y� SI.�nQ Z��Gil S� C� C•�•nneC�+��. for health reasons, anc the n��"pose of 't.his proa�a3 !s to assist those owners who T2CtIP5 �inancial assis�ance to acco�n?ish �h?s rep?ac��en�. P.�'� zddi�ional ber:e=;= will be inpraved r�a�er press•yre. E. Repa�nent of =�nds p iOV140C �V u'12 T'(dt°-r jj�i 1 i �q pursuant to th_s progra�r, wi11 De assessac against �:e pronerty served by the wz�er service and will be collecLed ''�ocether wi�h real estzte taxes. III. 23atif ication; Apglicztion A. Property owners wi11 be noLified by the �iater IItili�y that lead servica connections will be repiaced as a part os a proposed Public Works sTSeet project. The notice will e�lain why it is necessasy to replace Ieac services and the property ow will be encouraged to replace the privately owr.ed portion oi `�.he ,Iead service as well. B. Written applica�ion must be �ade to the Water iTtili�y if the owner desires to participate in this. progra�. Application forms will be included wi�h the notification and must be ze'tuzned to the Utility wi'thin the time specified in the r.otice. C. The apnlication wi12 require that the owner agree that funds advanced by the Water Utility will be assessed ancl collected with real property taxes, and further agree to waive their rights to appeal from this assessment. D. The owner must obtain a written estimate frota a licensed plumbing contrac�oz for the total cost to replace the lead service from the property line into the house and through the second meter valve (including the valve). The contract estimate may include the cost of restoration and Water Utility i.nspaction and turn-on fees. No other plumbing work shall be included for assessment purposes. 2 rv . E. The apnlication and esti�ate will be reviewed, ar.d if D 1-aoS annroved, the work will be authorize3 for rei�hurs�ent and assessment. Coastruction of r�atar Se� rica; Re�bu�se=ent; �ssessmen� A. Follow?r.g zpnroval o_ t:�e 2AD�?CZLCIl� we ow?�er �ay T7TOC2�a �O ''cilt}?O?'122 cons`—L:ct_on Oi �}'e tvZ�°--'� SE2V1C° 1Z1' accordance W1�Il t:2 2�Ar�V2d 25��2L°. B. owner or piu�_ng cor.�ractor �us� 2DDZtj °O= bE'�"t'"1i1�'. SO� tt!2. C4215�r:1Ct10�1 'viOL3C 5� u�ZL. i.}'E ?RdY inspect ti12 wOT'SC being D2r=0�=.ed. a �}u,-y�ir�g U�i1i `f C. ?i �0551�71° L�1� contracto 5210L�Q COCLCI_^.d�n realzcamen� OL �Ile OWi1Er�5 521"V1C° W1�!1 �fF2 S:.T�°� WO_:C being per=or�ed by the Depart:;.en� ci Public Works. D. Upon co�pietion of tne =e�lace�ent o� �he lead water service the owner sha1l present to the utility Iien waivers from the plutabing con�.ractor, a final state�ent of charges and the owner's acceptanCe o° the work performed. E. Payment shall be made by ' made payable jointly �o tne contractor. Ut?lity issuing a check owner and to the pluzabing F. The titility shall calculate all the cos�s incurred in the replacer�en� of tne lead service, including the costs of ad�-ninistration and financing, and sha1l assess - these total costs in accordance wi`�.n the provisions of the City's Charter or Minnesota Statutes Chapter 429. G. H. The amount assessed shall be made payable, toget'r.er with interest, over a period noL io exceed 10 years. Senior citizen deferred assess;aen"ts shaZ2 be ma3e available to those persons who request it. m ' 3 COWCl FiiC ,4` 0 i -ao 5 Greea Sheet r FiESOLUTION CfTY OF SAINT PAUL, MINNESOTA P:esented ny Re:er:e� To Coe�t.ee: Bate WHEREAS, the Boazd of Water Commissioners did approve a Lead Water Service Replacement Assessment Program (the "Program"), pursuant to the authoriry granted the Board and the City of Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and 0 WHEREAS, the Council of the City of Saint Paul did subsequently adopt Resolution No. 94-1743 which approved and adopted the Program; and 8 WHEREAS, the Boazd now desires to amend the Program to extend eligibility for the Program to 9 all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 10 years, and to revise procedural steps in order to improve the implementation of the Program; and 11 12 13 14 15 16 17 18 19 20 WHEREAS, the Boazd, acting pursuant to the authoriry granted in Chapter 504 Laws of the State of Minnesota 1994, did approve an Amended Lead Water Service Replacement Assessment Program dated February 13, 2001, ("the Amended Program") which does accomplish said desired changes, does now request approval and adoption of the Amended Program by the Saint Paul City Council; and WHEREAS, the Council has considered the Amended Program as approved by the Boazd; now, therefore, be it 21 RESOLVED, that the Council of the City of Saint Paul, acting pursuant to the authority granted 22 in Chapter 504 Laws of the State of Minnesota 1994, and upon the recommendation of the Boazd 23 of Water Commissioners, does hereby approve and adopt the Amended Lead Water Service 24 Replacement Assessment Program dated February 13, 2001. Reqvut�3 by Depa�tment of: ydoption Ccrtified by Council Seaetary pY Approved by Mayor: Aate By. Saint Paul Re ional Wat Services BY eneral�r� '� ' For� Approved by Ciry Attomcy � Approve3 by Ma}ror ior Subaission to Council � =.dopted by Council: Date p1-a�S STAFF REPORT Amended Lead Water Service Replacement Assessment Program, Pebruary 13, 2001 Tanuary 25, 2001 In 1994, the State of Minnesota granted authority to the Board of Water Commissioners and the City of Saint Paul to develop a program by which private lead water connections can be replaced and the cost of replacement financed by the City or Board. A replacement assessment program was developed and approved by the Boazd and the City prior to commencing the Program. Since its inception, 1,156 property owners have participated in the Program. At this rime, staff is proposing a number of revisions to the Program which reflect changing conditions and proposed improvements, as listed below. Emphasis The original Program blended the lead service replacement assessment Program in private property with the SPRWS replacement of lead services in street right-of-way. Extending the Program eligibility to all properties in the City, as described below, made this link no longer necessary. The proposed amended Program addresses only the assessment of private properry replacements costs, in keeping with the statements and intent of the authorizing Chapter 504 Laws of Minnesota 1994. Eligibility The original Progrun specified that only properties where the utility is replacing the street portion of the lead water service will be eligible for participarion, with the concentration being in street construction projects. As awareness of potential health problems associated with lead leaching into drinking water from lead service pipes increased, property owners outside of project azeas began requesting participation in the asessment Program. Following informal approval by the Boazd, the eligibility was extended to all properties in the City of Saint Paul. Assessment Period The Program initially established an assessment period of 10 years because private properry replacement costs were inifially averaging about $1,200 and longer periods seemed unnecessary and undesarable for both the property owner and the Board. Replacements now average $1800, with many going as high as $2,500. A replacement performed in 1998 at 214 Maple Street resulted in a total cost of $16,750, due mostly to the excavation being in a steep bank and the replacement of a retaining wall as part of the restoration. The amended Program as proposed establishes an assessment period of up to 20 years, a typical period for public improvements assessed by Saint Pau]'s Real Estate Division. Language The proposed amended Program contains revised language to better communicate intent and to reflect the change in name from Saint Paul Water Urility to Saint Paul Regional Water Services. Excessive Detail The original Program detailed numerous steps and requirements staff would follow to process the reimbursements which were proposed prior to initiation of the Program. Early on in implementarion it was recognized that some were not practicable, and fiirflier experience revealed even more to be unnecessary. The proposed amended Program addresses process steps in more general terms. This will allow the evolurion of process steps without the necessity of further amendments to the Program. N:\CLERICAL�BOARDU2esolutlonsVvllSC�Lead_assess amend_staff_report_OOl.wpd Counal Filc # � \' �5 ��IGl��L Presented Hy Referred To Green SAeet r ,�O�al.y� F?ESOLUTfON OF SAINT PAUL, Mj�INESOTA a�, COC�::t.ee: Da�e I WHEREAS, the Board of Water Commissioners did approve a Lead Water Service Replacement 2 Assessment Program (the "Program"), pursuant to the authority granted the Boazd and the City of 3 Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and 4 5 WFiEREAS, the Council of the City of Saint Paul did subsequently adopt Resolution I�o. 94-1743 6 which approved and adopted the Program; and 7 8 WFIEREAS, the Board now desires to amend the Program to extend eligibility for the Program to 10 11 12 13 14 15 16 17 18 19 20 all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 years, and to revise procedural steps in order to improve the implementation of the Program; and WHEREAS, the Boazd, acting pursuant to the authority granted in Chapter 504 Laws of the State of Minnesota 1994, did approve an Amended Lead Water Service Replacement Assessment Program dated February 13, 2001, ("the Amended Program") which does accomplish said desired changes, does now request approval and adoption of the Amended Program by the Saint Paul City Council; and WHEREAS, the Council has considered the Amended Program as approved by the Board; now, therefore, be it 21 RESOLVED, that the Council of the City of Saint Paul, acting pursuant to the authority granted 22 in Chapter 504 Laws of the State of Minnesota 1994, and upon the recommendation of the Boazd 23 of Water Commissioners, does hereby approve and adopt the Amended Lead Water Service 24 Replacement Assessment Program dated February 13, 2001. Requested by Depa:�ment of: Saint Paul Re ional Water Services By. ,(iCw�ric./ � ��_'I� e�r`a1 Manager � Adoption Certified by Coun�il Seaetary Form A.ppr e by Ciry Attomc � E}' _ BY \ � � � s�...�� — . ._ . . . . ff 3, � • . .:.. .:. . ... .. . . I: ,'i, . _ /r/ � O �i%i /�// � .4dopted by Councit: Date� � ,�pp� c ✓ GREEN SHEET � ROUiVIb � TOTAL # OF SIGNATURE PAGES 1 No 1 n2? � 2�� U �...,��.«��Sr zaa-a U �.�.. _ ❑ 2 �. plVAiid11EY ❑ QIYCIiWt � NNIIO�LfERNCFtER. ❑ HUILJ/iLfFRY/KCf6 � wroRlw��sasr�xp ❑ (CLIP ALL LOCATIONS FOR SIGNATURE) Approval of Cou_�cil Resolution approving and adopting an Ameaded Lead Water Service Reglacement Assessment Progxam. Attachments: 1) Proposed Resolution and Amended Program 2) Staff Report 3) Board of Watex Commissioners Resolution No. 4759 4) 1994 Program W _ PL4NNING COMMISSION _ CIBCAMMITTEE CIVIL SERVICE COMMISSION A Board of Wate.r CnmmicsinnpTS tiasmis ae�rm cverwoiicea unaer a cormac�satnic aepsnnienn VES NO Has this pnsoNfiim ever heen a dty empbyce9 YES NO Does Mis persoMm� P� a sitlll not nolmallyP� M' �Y wr2M city emPloYee? YES NQ Is Mis pnsoMim a targetetl ventlol'1 YES NO The current Lead Water Service Replacement Assessment Program is available only to properties within street paving projects and provides an assessment period of no longer than 10 years. �VANTAGESIFAPPROVED ' All Saint Paul properties will be eligible to participate in this voluatar} financing program and the proposed assessment period of up to 20 years will make replacement of private property lead water services more affordable. None AMOUNT OF TRANSACTION SOURCE IP{FORIMT{ON(E%PWNJ _ COST/REVENUE BUD6ETm (CIRCIE ON� YES NO AC7rvIT�YN - " � V b.�' � 6� � S>a�d��`t'�� ?�S�'c�i.�Cl9 b�°��f .� FEB 16 7�i � �.. n , _ ._.�>,�>, �,.:�..<:�.w: � _ _ o � -a�os AMENDED LEAD WATER SERVICE REPLACEMENT ASSESSMENT PROGRAM February 13, 2001 I. INTRODUCTION A. The primary purpose of this Program is to provide financial assistance to Ciry of Saint Paul properiy owners for the purpose of replacing existing lead water connections on their property. B. The Boazd of Water Commissioners and the City of Saint Paul sought special legislative authority to enable the development of a program to provide financial assistance to properiy owners who replace lead water pipes on their property. The Minnesota Legislature granted that authority by the enactment of Chapter 504 Laws of Minnesota 1994. C. In the enactment of Chapter 504, the Legislature found and determined that the reduction of lead contaminants in drinking water is a public putpose, and that providing financing to property owners who replace lead water pipes on their property is a public purpose. D. In part, Chapter 504 established that the City and the Board can develop a program to provide loans to property owners for the replacement of lead water service connections. It fiirther established that repayment of such loans can be accomplished through a special assessment collected with real property taxes. II. GENERAL DESCRIPTION OF THE PROGRAM A. All properties within the corporate limits of the City of Saint Paul shall be eligible for participation. To the extent that funds are available, all owners of property having lead water service connections will be given the opportunity to participate in this program. B. The portion of a water service connection from the water main to the property line is the responsibility of Saint Paul Regional Water Services, wkdch shall be responsible for the costs associated with its replacement. C. The portion of a water service connection from the property line into the building is owned by, and is the responsability of, the property owner. Property owners will be encouraged to replace this portion of their lead water service. D. Properiy owners may elect to have the costs of replacing the private property portion of their water service connection paid by the Board of Water Commissioners. Such payment, together with interest, sha11 be repaid to the Boazd through a special assessment against the property, to be collected as part of the real estate taxes. N�\Lead replacemenfl2001 Assessytogram_0110 wpd O�-�oS AMENDED LEAD WATER SERVICE REPLACEMENT A5SESSMEI�T PROGRAM page 2 III APPLICATION A. Property owners who desire to participate in this Program shall make application to Saint Paul Regional Water Services and will be provided the necessary forms which must be returued for review and approval. IV. CONSTRUCTION OF WATER SERVICE; REIMBURSEMENT; ASSESSMENT A. Costs eligible for reimbursement through this program are those related to the installation of a new copper service from the water stop valve or property line, depending on construction requirements, up to and including the water meter setting, including the cost of any excavation restoration and Saint Paul Regional Water Services plumbing permit and turn-on fees. No other plumbing work costs shall be efigible for reimbursement. B. Following approval by Saint Paul Regional Water Services of all eligible construction costs and docuxnentation, payment will be made by Saint Paul Office of Financial Services issuing a check made payable jointly to the property owner and to the plumbing contractor. C. Saint Paul Regional Water Services will calculate the total costs, including approved construction costs plus all administration and financing costs, and shall assess these costs in accordance with the provisions of the City of Saint Paul's Charter and Minnesota Statutes Chaptex 429. D. The amount assessed shall be made payable, together with interest, over a period not to exceed 20 years. - End - N:\Lead replacement�2001 Assess�mgram_0110.wpd 2 � `-3cS STAF� REPORT Amended Lead Water Service Replacement Assessment Program, February 13, 2001 .Ianuary 25, 2001 In 1994, the State of Minnesota granted authority to the Board of Water Commissioners and the City of Saint Paul to develop a program by which private lead water connections can be replaced and the cost of replacement financed by the City or Board. A replacement assessment program was developed and approved by the Board and the City prior to commencing the Program. Since its inception, 1,156 properry owners have participated in the Progzam. At this time, staff is proposing a number of revisions to the Program which reflect changing conditions and proposed improvements, as listed below. Emphasis The original Program blended the lead service replacement assessment Program in private property with the SPRWS replacement of lead services in street right-of-way. Extending the Program eligibility to all properties in the City, as described below, made this link no longer necessary. The proposed amended Program addresses only the assessment of private properiy replacements costs, in keeping with the statements and intent of the authorizing Chapter 504 Laws of Minnesota 1994. Elislbility The original Program specified that only properties where the urility is replacing the street portion of the lead water service will be eligible for participation, with the concentrarion being in street conshuction projects. As awareness of potential health problems associated with lead leaching into drinking water from lead service pipes increased, property owners outside of project areas began requesfing participation in the assessment Program. Following informal approval by the Board, the eligibility was extended to all properties in the City of Saint Paul. Assessment Period The Program initially established an assessment period of 10 years because private properiy replacement costs were initially averaging about $1,200 and longer periods seemed unnecessary and undesirable for both the property owner and the Boazd. Replacements now average $1800, with many going as high as $2,500. A replacement performed in 1998 at 214 Maple Street resulted in a total cost of $16,750, due mostly to the excavation being in a steep bank and the replacement of a retaining wall as part of the restorarion. The amended Program as proposed establishes an assessment period of up to 20 years, a typical period for public improvements assessed by Saint PauPs Real Estate Division. Language The proposed amended Program contains revised language to better communicate intent and to reflect the change in name from Saint Paul Water Urility to Saint Paul Regional Water Services. Excessive Detail The original Program detailed numerous steps and requirements staff would follow to process the reimbursements which were proposed prior to inifiation of the Program. Early on in implementation it was recognized that some were not pracficable, and fisther experience revealed even more to be unnecessary. The proposed amended Program addresses process steps in mare general terms. This will allow the evolution of process steps without the necessity of further amendments to the Progam. N:\CLERICAL�BOARD�Resolutlons�MISCU.ead_assess_ammd_sfaff report 001 wpd o � -�� BOARD OF WATER COMMISSIONERS RESOLUTION — GENERAL FORM PRESEIVTEB Bv j�aselmann COMMISSIONER No 4759 pA � Februarv 13, 2001 WHEREAS, the Boazd of Water Commissioners did adopt Resolution No. 4339 which approved a Lead Water Service Replacement Assessment Program (the "Program"), pursuant to the authority granted the Board and the City of Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and WHEREAS, the Council ofthe City of Saint Paul did subsequently adopt Resolution No. 94-1743 which approved and adopted the Program; and WHEREAS, the Board now desires to amend the Program to extend eligibility for the Program to all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 yeazs, and to revise procedural steps in order to unprove the implementation of the Program; and WHEREAS, staffhas prepared an Amended Lead W ater Service Replacement Assessment Program dated Februaryl3, 2001, ("Amended Program") which does accomplish said desired changes, and the assistant city attorney has reviewed and approved the Amended Program as to form; now, therefore, be it RESOLVED, that the Board of Water Commissioners does hereby approve the Amended Lead Water Service Replacement Assessment Program dated February 13, 2001; and, be it FURTHER RESOLVED, that the Honorable Council ofthe City of Saint Paul is hereby requested to approve and adopt said Amended Program. Water Commissioners Yeas Anfang Nays Cardinal Vice President Haselmann President Reitei Adopted by the Board of Water Commissioners In favor 4_ ppposera 0 Februarv 13. �g 2001 � / / �..1 . �±1� ' • o � -a.os z. tg94 - zrt� LE�D A�TBR SER�C° R�P�C� ?`iT YROG1ZA.0 Z'�yPl'RODIICTT_62i - i .�:_ ' �� A. The Bcard o: Watsr Co�niss;aners z;�d '-�} e City of Saint ?au1 souc'r_t speci=_1 1ea:sla�ive au�ori�� to enable the deve3opmen� ai a p:cg�'� to assist residential and business nrooe*_�y ocmers ia the replacement of lead wzter se�-vica connect*_ons. Tf^�e Minnesota Legislature aran�ed tha� authority by the enaet�ent of Cha�ter Soa �,zyrs flr uinr.esoLa 1944. 3. In the enactruen� of ChdFL°S 504, �.he Legislature found and deteriained that "tha retluction or lead con�aminan�s in drinking water is a public puraose, and that providing financing to owners of r2sidences and businesses to replace lead <aater pipes located on tuheir property is a public purpose". C. Chapter 504 allows for the develop�ent of a progra� by which private lead water connections can be replaced either by the City or the property owner.and the cos� of replacasaent financed by the City/Board. Repayraent of these costs can be acconnlished either as a specia2 assessnent collected with real praoer:.y taxes or added to the regular water billings. � D. The primary purpose of che prograa is to elir�ina�e existing lezd pipe water connections, including portions of the pipe owned by tha Soard and the priva�ely owned portion. Replacenent of lead pipe service connections will eliminate a aajor source lead in drin}cing water. . a11 oi ZS. G�2IERAL DESCRIPTION OF THE PROGFt�i A. To the extent that funds are availzble oWners o£ residential and business property having lead water service connections wi11 be given the apportunity to participate in this program. B. The part.ion of a water service connec'ciun from the property line into the structure is owne� by and is the responsibi�ity oL the property ownez. The service connection from the property line to the water main is the responsibility of the Water IItility, and the IItility sha2i be responsible £or the costs associated with its replacement. � C. Only those pronerties in which the IItility is replacing the s}s'eet portion of the lead wat� service will �e �,��}OS eliqible for narticipation. The Utility is concentratinq the lead s�'vice replacement nroy2aa _n sewer construction, paving ar.d ove_rlay projects_ - Fut.L e projects, nowever� �ay e�end outsice thes2 - areas. D. :esidential and business progery ow�ars will be encouraged LQ TG �� 4C� e.Y� SI.�nQ Z��Gil S� C� C•�•nneC�+��. for health reasons, anc the n��"pose of 't.his proa�a3 !s to assist those owners who T2CtIP5 �inancial assis�ance to acco�n?ish �h?s rep?ac��en�. P.�'� zddi�ional ber:e=;= will be inpraved r�a�er press•yre. E. Repa�nent of =�nds p iOV140C �V u'12 T'(dt°-r jj�i 1 i �q pursuant to th_s progra�r, wi11 De assessac against �:e pronerty served by the wz�er service and will be collecLed ''�ocether wi�h real estzte taxes. III. 23atif ication; Apglicztion A. Property owners wi11 be noLified by the �iater IItili�y that lead servica connections will be repiaced as a part os a proposed Public Works sTSeet project. The notice will e�lain why it is necessasy to replace Ieac services and the property ow will be encouraged to replace the privately owr.ed portion oi `�.he ,Iead service as well. B. Written applica�ion must be �ade to the Water iTtili�y if the owner desires to participate in this. progra�. Application forms will be included wi�h the notification and must be ze'tuzned to the Utility wi'thin the time specified in the r.otice. C. The apnlication wi12 require that the owner agree that funds advanced by the Water Utility will be assessed ancl collected with real property taxes, and further agree to waive their rights to appeal from this assessment. D. The owner must obtain a written estimate frota a licensed plumbing contrac�oz for the total cost to replace the lead service from the property line into the house and through the second meter valve (including the valve). The contract estimate may include the cost of restoration and Water Utility i.nspaction and turn-on fees. No other plumbing work shall be included for assessment purposes. 2 rv . E. The apnlication and esti�ate will be reviewed, ar.d if D 1-aoS annroved, the work will be authorize3 for rei�hurs�ent and assessment. Coastruction of r�atar Se� rica; Re�bu�se=ent; �ssessmen� A. Follow?r.g zpnroval o_ t:�e 2AD�?CZLCIl� we ow?�er �ay T7TOC2�a �O ''cilt}?O?'122 cons`—L:ct_on Oi �}'e tvZ�°--'� SE2V1C° 1Z1' accordance W1�Il t:2 2�Ar�V2d 25��2L°. B. owner or piu�_ng cor.�ractor �us� 2DDZtj °O= bE'�"t'"1i1�'. SO� tt!2. C4215�r:1Ct10�1 'viOL3C 5� u�ZL. i.}'E ?RdY inspect ti12 wOT'SC being D2r=0�=.ed. a �}u,-y�ir�g U�i1i `f C. ?i �0551�71° L�1� contracto 5210L�Q COCLCI_^.d�n realzcamen� OL �Ile OWi1Er�5 521"V1C° W1�!1 �fF2 S:.T�°� WO_:C being per=or�ed by the Depart:;.en� ci Public Works. D. Upon co�pietion of tne =e�lace�ent o� �he lead water service the owner sha1l present to the utility Iien waivers from the plutabing con�.ractor, a final state�ent of charges and the owner's acceptanCe o° the work performed. E. Payment shall be made by ' made payable jointly �o tne contractor. Ut?lity issuing a check owner and to the pluzabing F. The titility shall calculate all the cos�s incurred in the replacer�en� of tne lead service, including the costs of ad�-ninistration and financing, and sha1l assess - these total costs in accordance wi`�.n the provisions of the City's Charter or Minnesota Statutes Chapter 429. G. H. The amount assessed shall be made payable, toget'r.er with interest, over a period noL io exceed 10 years. Senior citizen deferred assess;aen"ts shaZ2 be ma3e available to those persons who request it. m ' 3 COWCl FiiC ,4` 0 i -ao 5 Greea Sheet r FiESOLUTION CfTY OF SAINT PAUL, MINNESOTA P:esented ny Re:er:e� To Coe�t.ee: Bate WHEREAS, the Boazd of Water Commissioners did approve a Lead Water Service Replacement Assessment Program (the "Program"), pursuant to the authoriry granted the Board and the City of Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and 0 WHEREAS, the Council of the City of Saint Paul did subsequently adopt Resolution No. 94-1743 which approved and adopted the Program; and 8 WHEREAS, the Boazd now desires to amend the Program to extend eligibility for the Program to 9 all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 10 years, and to revise procedural steps in order to improve the implementation of the Program; and 11 12 13 14 15 16 17 18 19 20 WHEREAS, the Boazd, acting pursuant to the authoriry granted in Chapter 504 Laws of the State of Minnesota 1994, did approve an Amended Lead Water Service Replacement Assessment Program dated February 13, 2001, ("the Amended Program") which does accomplish said desired changes, does now request approval and adoption of the Amended Program by the Saint Paul City Council; and WHEREAS, the Council has considered the Amended Program as approved by the Boazd; now, therefore, be it 21 RESOLVED, that the Council of the City of Saint Paul, acting pursuant to the authority granted 22 in Chapter 504 Laws of the State of Minnesota 1994, and upon the recommendation of the Boazd 23 of Water Commissioners, does hereby approve and adopt the Amended Lead Water Service 24 Replacement Assessment Program dated February 13, 2001. Reqvut�3 by Depa�tment of: ydoption Ccrtified by Council Seaetary pY Approved by Mayor: Aate By. Saint Paul Re ional Wat Services BY eneral�r� '� ' For� Approved by Ciry Attomcy � Approve3 by Ma}ror ior Subaission to Council � =.dopted by Council: Date p1-a�S STAFF REPORT Amended Lead Water Service Replacement Assessment Program, Pebruary 13, 2001 Tanuary 25, 2001 In 1994, the State of Minnesota granted authority to the Board of Water Commissioners and the City of Saint Paul to develop a program by which private lead water connections can be replaced and the cost of replacement financed by the City or Board. A replacement assessment program was developed and approved by the Boazd and the City prior to commencing the Program. Since its inception, 1,156 property owners have participated in the Program. At this rime, staff is proposing a number of revisions to the Program which reflect changing conditions and proposed improvements, as listed below. Emphasis The original Program blended the lead service replacement assessment Program in private property with the SPRWS replacement of lead services in street right-of-way. Extending the Program eligibility to all properties in the City, as described below, made this link no longer necessary. The proposed amended Program addresses only the assessment of private properry replacements costs, in keeping with the statements and intent of the authorizing Chapter 504 Laws of Minnesota 1994. Eligibility The original Progrun specified that only properties where the utility is replacing the street portion of the lead water service will be eligible for participarion, with the concentration being in street construction projects. As awareness of potential health problems associated with lead leaching into drinking water from lead service pipes increased, property owners outside of project azeas began requesting participation in the asessment Program. Following informal approval by the Boazd, the eligibility was extended to all properties in the City of Saint Paul. Assessment Period The Program initially established an assessment period of 10 years because private properry replacement costs were inifially averaging about $1,200 and longer periods seemed unnecessary and undesarable for both the property owner and the Board. Replacements now average $1800, with many going as high as $2,500. A replacement performed in 1998 at 214 Maple Street resulted in a total cost of $16,750, due mostly to the excavation being in a steep bank and the replacement of a retaining wall as part of the restoration. The amended Program as proposed establishes an assessment period of up to 20 years, a typical period for public improvements assessed by Saint Pau]'s Real Estate Division. Language The proposed amended Program contains revised language to better communicate intent and to reflect the change in name from Saint Paul Water Urility to Saint Paul Regional Water Services. Excessive Detail The original Program detailed numerous steps and requirements staff would follow to process the reimbursements which were proposed prior to initiation of the Program. Early on in implementarion it was recognized that some were not practicable, and fiirflier experience revealed even more to be unnecessary. The proposed amended Program addresses process steps in more general terms. This will allow the evolurion of process steps without the necessity of further amendments to the Program. N:\CLERICAL�BOARDU2esolutlonsVvllSC�Lead_assess amend_staff_report_OOl.wpd Counal Filc # � \' �5 ��IGl��L Presented Hy Referred To Green SAeet r ,�O�al.y� F?ESOLUTfON OF SAINT PAUL, Mj�INESOTA a�, COC�::t.ee: Da�e I WHEREAS, the Board of Water Commissioners did approve a Lead Water Service Replacement 2 Assessment Program (the "Program"), pursuant to the authority granted the Boazd and the City of 3 Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and 4 5 WFiEREAS, the Council of the City of Saint Paul did subsequently adopt Resolution I�o. 94-1743 6 which approved and adopted the Program; and 7 8 WFIEREAS, the Board now desires to amend the Program to extend eligibility for the Program to 10 11 12 13 14 15 16 17 18 19 20 all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 years, and to revise procedural steps in order to improve the implementation of the Program; and WHEREAS, the Boazd, acting pursuant to the authority granted in Chapter 504 Laws of the State of Minnesota 1994, did approve an Amended Lead Water Service Replacement Assessment Program dated February 13, 2001, ("the Amended Program") which does accomplish said desired changes, does now request approval and adoption of the Amended Program by the Saint Paul City Council; and WHEREAS, the Council has considered the Amended Program as approved by the Board; now, therefore, be it 21 RESOLVED, that the Council of the City of Saint Paul, acting pursuant to the authority granted 22 in Chapter 504 Laws of the State of Minnesota 1994, and upon the recommendation of the Boazd 23 of Water Commissioners, does hereby approve and adopt the Amended Lead Water Service 24 Replacement Assessment Program dated February 13, 2001. Requested by Depa:�ment of: Saint Paul Re ional Water Services By. ,(iCw�ric./ � ��_'I� e�r`a1 Manager � Adoption Certified by Coun�il Seaetary Form A.ppr e by Ciry Attomc � E}' _ BY \ � � � s�...�� — . ._ . . . . ff 3, � • . .:.. .:. . ... .. . . I: ,'i, . _ /r/ � O �i%i /�// � .4dopted by Councit: Date� � ,�pp� c ✓ GREEN SHEET � ROUiVIb � TOTAL # OF SIGNATURE PAGES 1 No 1 n2? � 2�� U �...,��.«��Sr zaa-a U �.�.. _ ❑ 2 �. plVAiid11EY ❑ QIYCIiWt � NNIIO�LfERNCFtER. ❑ HUILJ/iLfFRY/KCf6 � wroRlw��sasr�xp ❑ (CLIP ALL LOCATIONS FOR SIGNATURE) Approval of Cou_�cil Resolution approving and adopting an Ameaded Lead Water Service Reglacement Assessment Progxam. Attachments: 1) Proposed Resolution and Amended Program 2) Staff Report 3) Board of Watex Commissioners Resolution No. 4759 4) 1994 Program W _ PL4NNING COMMISSION _ CIBCAMMITTEE CIVIL SERVICE COMMISSION A Board of Wate.r CnmmicsinnpTS tiasmis ae�rm cverwoiicea unaer a cormac�satnic aepsnnienn VES NO Has this pnsoNfiim ever heen a dty empbyce9 YES NO Does Mis persoMm� P� a sitlll not nolmallyP� M' �Y wr2M city emPloYee? YES NQ Is Mis pnsoMim a targetetl ventlol'1 YES NO The current Lead Water Service Replacement Assessment Program is available only to properties within street paving projects and provides an assessment period of no longer than 10 years. �VANTAGESIFAPPROVED ' All Saint Paul properties will be eligible to participate in this voluatar} financing program and the proposed assessment period of up to 20 years will make replacement of private property lead water services more affordable. None AMOUNT OF TRANSACTION SOURCE IP{FORIMT{ON(E%PWNJ _ COST/REVENUE BUD6ETm (CIRCIE ON� YES NO AC7rvIT�YN - " � V b.�' � 6� � S>a�d��`t'�� ?�S�'c�i.�Cl9 b�°��f .� FEB 16 7�i � �.. n , _ ._.�>,�>, �,.:�..<:�.w: � _ _ o � -a�os AMENDED LEAD WATER SERVICE REPLACEMENT ASSESSMENT PROGRAM February 13, 2001 I. INTRODUCTION A. The primary purpose of this Program is to provide financial assistance to Ciry of Saint Paul properiy owners for the purpose of replacing existing lead water connections on their property. B. The Boazd of Water Commissioners and the City of Saint Paul sought special legislative authority to enable the development of a program to provide financial assistance to properiy owners who replace lead water pipes on their property. The Minnesota Legislature granted that authority by the enactment of Chapter 504 Laws of Minnesota 1994. C. In the enactment of Chapter 504, the Legislature found and determined that the reduction of lead contaminants in drinking water is a public putpose, and that providing financing to property owners who replace lead water pipes on their property is a public purpose. D. In part, Chapter 504 established that the City and the Board can develop a program to provide loans to property owners for the replacement of lead water service connections. It fiirther established that repayment of such loans can be accomplished through a special assessment collected with real property taxes. II. GENERAL DESCRIPTION OF THE PROGRAM A. All properties within the corporate limits of the City of Saint Paul shall be eligible for participation. To the extent that funds are available, all owners of property having lead water service connections will be given the opportunity to participate in this program. B. The portion of a water service connection from the water main to the property line is the responsibility of Saint Paul Regional Water Services, wkdch shall be responsible for the costs associated with its replacement. C. The portion of a water service connection from the property line into the building is owned by, and is the responsability of, the property owner. Property owners will be encouraged to replace this portion of their lead water service. D. Properiy owners may elect to have the costs of replacing the private property portion of their water service connection paid by the Board of Water Commissioners. Such payment, together with interest, sha11 be repaid to the Boazd through a special assessment against the property, to be collected as part of the real estate taxes. N�\Lead replacemenfl2001 Assessytogram_0110 wpd O�-�oS AMENDED LEAD WATER SERVICE REPLACEMENT A5SESSMEI�T PROGRAM page 2 III APPLICATION A. Property owners who desire to participate in this Program shall make application to Saint Paul Regional Water Services and will be provided the necessary forms which must be returued for review and approval. IV. CONSTRUCTION OF WATER SERVICE; REIMBURSEMENT; ASSESSMENT A. Costs eligible for reimbursement through this program are those related to the installation of a new copper service from the water stop valve or property line, depending on construction requirements, up to and including the water meter setting, including the cost of any excavation restoration and Saint Paul Regional Water Services plumbing permit and turn-on fees. No other plumbing work costs shall be efigible for reimbursement. B. Following approval by Saint Paul Regional Water Services of all eligible construction costs and docuxnentation, payment will be made by Saint Paul Office of Financial Services issuing a check made payable jointly to the property owner and to the plumbing contractor. C. Saint Paul Regional Water Services will calculate the total costs, including approved construction costs plus all administration and financing costs, and shall assess these costs in accordance with the provisions of the City of Saint Paul's Charter and Minnesota Statutes Chaptex 429. D. The amount assessed shall be made payable, together with interest, over a period not to exceed 20 years. - End - N:\Lead replacement�2001 Assess�mgram_0110.wpd 2 � `-3cS STAF� REPORT Amended Lead Water Service Replacement Assessment Program, February 13, 2001 .Ianuary 25, 2001 In 1994, the State of Minnesota granted authority to the Board of Water Commissioners and the City of Saint Paul to develop a program by which private lead water connections can be replaced and the cost of replacement financed by the City or Board. A replacement assessment program was developed and approved by the Board and the City prior to commencing the Program. Since its inception, 1,156 properry owners have participated in the Progzam. At this time, staff is proposing a number of revisions to the Program which reflect changing conditions and proposed improvements, as listed below. Emphasis The original Program blended the lead service replacement assessment Program in private property with the SPRWS replacement of lead services in street right-of-way. Extending the Program eligibility to all properties in the City, as described below, made this link no longer necessary. The proposed amended Program addresses only the assessment of private properiy replacements costs, in keeping with the statements and intent of the authorizing Chapter 504 Laws of Minnesota 1994. Elislbility The original Program specified that only properties where the urility is replacing the street portion of the lead water service will be eligible for participation, with the concentrarion being in street conshuction projects. As awareness of potential health problems associated with lead leaching into drinking water from lead service pipes increased, property owners outside of project areas began requesfing participation in the assessment Program. Following informal approval by the Board, the eligibility was extended to all properties in the City of Saint Paul. Assessment Period The Program initially established an assessment period of 10 years because private properiy replacement costs were initially averaging about $1,200 and longer periods seemed unnecessary and undesirable for both the property owner and the Boazd. Replacements now average $1800, with many going as high as $2,500. A replacement performed in 1998 at 214 Maple Street resulted in a total cost of $16,750, due mostly to the excavation being in a steep bank and the replacement of a retaining wall as part of the restorarion. The amended Program as proposed establishes an assessment period of up to 20 years, a typical period for public improvements assessed by Saint PauPs Real Estate Division. Language The proposed amended Program contains revised language to better communicate intent and to reflect the change in name from Saint Paul Water Urility to Saint Paul Regional Water Services. Excessive Detail The original Program detailed numerous steps and requirements staff would follow to process the reimbursements which were proposed prior to inifiation of the Program. Early on in implementation it was recognized that some were not pracficable, and fisther experience revealed even more to be unnecessary. The proposed amended Program addresses process steps in mare general terms. This will allow the evolution of process steps without the necessity of further amendments to the Progam. N:\CLERICAL�BOARD�Resolutlons�MISCU.ead_assess_ammd_sfaff report 001 wpd o � -�� BOARD OF WATER COMMISSIONERS RESOLUTION — GENERAL FORM PRESEIVTEB Bv j�aselmann COMMISSIONER No 4759 pA � Februarv 13, 2001 WHEREAS, the Boazd of Water Commissioners did adopt Resolution No. 4339 which approved a Lead Water Service Replacement Assessment Program (the "Program"), pursuant to the authority granted the Board and the City of Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and WHEREAS, the Council ofthe City of Saint Paul did subsequently adopt Resolution No. 94-1743 which approved and adopted the Program; and WHEREAS, the Board now desires to amend the Program to extend eligibility for the Program to all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 yeazs, and to revise procedural steps in order to unprove the implementation of the Program; and WHEREAS, staffhas prepared an Amended Lead W ater Service Replacement Assessment Program dated Februaryl3, 2001, ("Amended Program") which does accomplish said desired changes, and the assistant city attorney has reviewed and approved the Amended Program as to form; now, therefore, be it RESOLVED, that the Board of Water Commissioners does hereby approve the Amended Lead Water Service Replacement Assessment Program dated February 13, 2001; and, be it FURTHER RESOLVED, that the Honorable Council ofthe City of Saint Paul is hereby requested to approve and adopt said Amended Program. Water Commissioners Yeas Anfang Nays Cardinal Vice President Haselmann President Reitei Adopted by the Board of Water Commissioners In favor 4_ ppposera 0 Februarv 13. �g 2001 � / / �..1 . �±1� ' • o � -a.os z. tg94 - zrt� LE�D A�TBR SER�C° R�P�C� ?`iT YROG1ZA.0 Z'�yPl'RODIICTT_62i - i .�:_ ' �� A. The Bcard o: Watsr Co�niss;aners z;�d '-�} e City of Saint ?au1 souc'r_t speci=_1 1ea:sla�ive au�ori�� to enable the deve3opmen� ai a p:cg�'� to assist residential and business nrooe*_�y ocmers ia the replacement of lead wzter se�-vica connect*_ons. Tf^�e Minnesota Legislature aran�ed tha� authority by the enaet�ent of Cha�ter Soa �,zyrs flr uinr.esoLa 1944. 3. In the enactruen� of ChdFL°S 504, �.he Legislature found and deteriained that "tha retluction or lead con�aminan�s in drinking water is a public puraose, and that providing financing to owners of r2sidences and businesses to replace lead <aater pipes located on tuheir property is a public purpose". C. Chapter 504 allows for the develop�ent of a progra� by which private lead water connections can be replaced either by the City or the property owner.and the cos� of replacasaent financed by the City/Board. Repayraent of these costs can be acconnlished either as a specia2 assessnent collected with real praoer:.y taxes or added to the regular water billings. � D. The primary purpose of che prograa is to elir�ina�e existing lezd pipe water connections, including portions of the pipe owned by tha Soard and the priva�ely owned portion. Replacenent of lead pipe service connections will eliminate a aajor source lead in drin}cing water. . a11 oi ZS. G�2IERAL DESCRIPTION OF THE PROGFt�i A. To the extent that funds are availzble oWners o£ residential and business property having lead water service connections wi11 be given the apportunity to participate in this program. B. The part.ion of a water service connec'ciun from the property line into the structure is owne� by and is the responsibi�ity oL the property ownez. The service connection from the property line to the water main is the responsibility of the Water IItility, and the IItility sha2i be responsible £or the costs associated with its replacement. � C. Only those pronerties in which the IItility is replacing the s}s'eet portion of the lead wat� service will �e �,��}OS eliqible for narticipation. The Utility is concentratinq the lead s�'vice replacement nroy2aa _n sewer construction, paving ar.d ove_rlay projects_ - Fut.L e projects, nowever� �ay e�end outsice thes2 - areas. D. :esidential and business progery ow�ars will be encouraged LQ TG �� 4C� e.Y� SI.�nQ Z��Gil S� C� C•�•nneC�+��. for health reasons, anc the n��"pose of 't.his proa�a3 !s to assist those owners who T2CtIP5 �inancial assis�ance to acco�n?ish �h?s rep?ac��en�. P.�'� zddi�ional ber:e=;= will be inpraved r�a�er press•yre. E. Repa�nent of =�nds p iOV140C �V u'12 T'(dt°-r jj�i 1 i �q pursuant to th_s progra�r, wi11 De assessac against �:e pronerty served by the wz�er service and will be collecLed ''�ocether wi�h real estzte taxes. III. 23atif ication; Apglicztion A. Property owners wi11 be noLified by the �iater IItili�y that lead servica connections will be repiaced as a part os a proposed Public Works sTSeet project. The notice will e�lain why it is necessasy to replace Ieac services and the property ow will be encouraged to replace the privately owr.ed portion oi `�.he ,Iead service as well. B. Written applica�ion must be �ade to the Water iTtili�y if the owner desires to participate in this. progra�. Application forms will be included wi�h the notification and must be ze'tuzned to the Utility wi'thin the time specified in the r.otice. C. The apnlication wi12 require that the owner agree that funds advanced by the Water Utility will be assessed ancl collected with real property taxes, and further agree to waive their rights to appeal from this assessment. D. The owner must obtain a written estimate frota a licensed plumbing contrac�oz for the total cost to replace the lead service from the property line into the house and through the second meter valve (including the valve). The contract estimate may include the cost of restoration and Water Utility i.nspaction and turn-on fees. No other plumbing work shall be included for assessment purposes. 2 rv . E. The apnlication and esti�ate will be reviewed, ar.d if D 1-aoS annroved, the work will be authorize3 for rei�hurs�ent and assessment. Coastruction of r�atar Se� rica; Re�bu�se=ent; �ssessmen� A. Follow?r.g zpnroval o_ t:�e 2AD�?CZLCIl� we ow?�er �ay T7TOC2�a �O ''cilt}?O?'122 cons`—L:ct_on Oi �}'e tvZ�°--'� SE2V1C° 1Z1' accordance W1�Il t:2 2�Ar�V2d 25��2L°. B. owner or piu�_ng cor.�ractor �us� 2DDZtj °O= bE'�"t'"1i1�'. SO� tt!2. C4215�r:1Ct10�1 'viOL3C 5� u�ZL. i.}'E ?RdY inspect ti12 wOT'SC being D2r=0�=.ed. a �}u,-y�ir�g U�i1i `f C. ?i �0551�71° L�1� contracto 5210L�Q COCLCI_^.d�n realzcamen� OL �Ile OWi1Er�5 521"V1C° W1�!1 �fF2 S:.T�°� WO_:C being per=or�ed by the Depart:;.en� ci Public Works. D. Upon co�pietion of tne =e�lace�ent o� �he lead water service the owner sha1l present to the utility Iien waivers from the plutabing con�.ractor, a final state�ent of charges and the owner's acceptanCe o° the work performed. E. Payment shall be made by ' made payable jointly �o tne contractor. Ut?lity issuing a check owner and to the pluzabing F. The titility shall calculate all the cos�s incurred in the replacer�en� of tne lead service, including the costs of ad�-ninistration and financing, and sha1l assess - these total costs in accordance wi`�.n the provisions of the City's Charter or Minnesota Statutes Chapter 429. G. H. The amount assessed shall be made payable, toget'r.er with interest, over a period noL io exceed 10 years. Senior citizen deferred assess;aen"ts shaZ2 be ma3e available to those persons who request it. m ' 3 COWCl FiiC ,4` 0 i -ao 5 Greea Sheet r FiESOLUTION CfTY OF SAINT PAUL, MINNESOTA P:esented ny Re:er:e� To Coe�t.ee: Bate WHEREAS, the Boazd of Water Commissioners did approve a Lead Water Service Replacement Assessment Program (the "Program"), pursuant to the authoriry granted the Board and the City of Saint Paul by Chapter 504 Laws of the State of Minnesota 1994; and 0 WHEREAS, the Council of the City of Saint Paul did subsequently adopt Resolution No. 94-1743 which approved and adopted the Program; and 8 WHEREAS, the Boazd now desires to amend the Program to extend eligibility for the Program to 9 all properties located within the City of Saint Paul, to allow for an assessment period of up to 20 10 years, and to revise procedural steps in order to improve the implementation of the Program; and 11 12 13 14 15 16 17 18 19 20 WHEREAS, the Boazd, acting pursuant to the authoriry granted in Chapter 504 Laws of the State of Minnesota 1994, did approve an Amended Lead Water Service Replacement Assessment Program dated February 13, 2001, ("the Amended Program") which does accomplish said desired changes, does now request approval and adoption of the Amended Program by the Saint Paul City Council; and WHEREAS, the Council has considered the Amended Program as approved by the Boazd; now, therefore, be it 21 RESOLVED, that the Council of the City of Saint Paul, acting pursuant to the authority granted 22 in Chapter 504 Laws of the State of Minnesota 1994, and upon the recommendation of the Boazd 23 of Water Commissioners, does hereby approve and adopt the Amended Lead Water Service 24 Replacement Assessment Program dated February 13, 2001. Reqvut�3 by Depa�tment of: ydoption Ccrtified by Council Seaetary pY Approved by Mayor: Aate By. Saint Paul Re ional Wat Services BY eneral�r� '� ' For� Approved by Ciry Attomcy � Approve3 by Ma}ror ior Subaission to Council � =.dopted by Council: Date p1-a�S STAFF REPORT Amended Lead Water Service Replacement Assessment Program, Pebruary 13, 2001 Tanuary 25, 2001 In 1994, the State of Minnesota granted authority to the Board of Water Commissioners and the City of Saint Paul to develop a program by which private lead water connections can be replaced and the cost of replacement financed by the City or Board. A replacement assessment program was developed and approved by the Boazd and the City prior to commencing the Program. Since its inception, 1,156 property owners have participated in the Program. At this rime, staff is proposing a number of revisions to the Program which reflect changing conditions and proposed improvements, as listed below. Emphasis The original Program blended the lead service replacement assessment Program in private property with the SPRWS replacement of lead services in street right-of-way. Extending the Program eligibility to all properties in the City, as described below, made this link no longer necessary. The proposed amended Program addresses only the assessment of private properry replacements costs, in keeping with the statements and intent of the authorizing Chapter 504 Laws of Minnesota 1994. Eligibility The original Progrun specified that only properties where the utility is replacing the street portion of the lead water service will be eligible for participarion, with the concentration being in street construction projects. As awareness of potential health problems associated with lead leaching into drinking water from lead service pipes increased, property owners outside of project azeas began requesting participation in the asessment Program. Following informal approval by the Boazd, the eligibility was extended to all properties in the City of Saint Paul. Assessment Period The Program initially established an assessment period of 10 years because private properry replacement costs were inifially averaging about $1,200 and longer periods seemed unnecessary and undesarable for both the property owner and the Board. Replacements now average $1800, with many going as high as $2,500. A replacement performed in 1998 at 214 Maple Street resulted in a total cost of $16,750, due mostly to the excavation being in a steep bank and the replacement of a retaining wall as part of the restoration. The amended Program as proposed establishes an assessment period of up to 20 years, a typical period for public improvements assessed by Saint Pau]'s Real Estate Division. Language The proposed amended Program contains revised language to better communicate intent and to reflect the change in name from Saint Paul Water Urility to Saint Paul Regional Water Services. Excessive Detail The original Program detailed numerous steps and requirements staff would follow to process the reimbursements which were proposed prior to initiation of the Program. Early on in implementarion it was recognized that some were not practicable, and fiirflier experience revealed even more to be unnecessary. The proposed amended Program addresses process steps in more general terms. This will allow the evolurion of process steps without the necessity of further amendments to the Program. N:\CLERICAL�BOARDU2esolutlonsVvllSC�Lead_assess amend_staff_report_OOl.wpd