Staff initially provided the GGSD Board with the information regarding private sewer lateral ownership, codes and regulations, industry standards, and a loan program available during the GGSD Board meeting in April 2018. After the presentation and discussion, the GGSD Board directed staff to follow up with more details on the current sewer lateral loan program and vicinity jurisdictions policies and practices regarding private sewer laterals as well as availability of a private insurance program.

Since 2006, GGSD has made a sewer lateral loan program available for residents as a part of the Orange County Coastkeeper settlement agreement. A total of $45,000 annually is available at the City’s current portfolio interest rate for a 15 year loan term. To date, no resident has taken advantage of this program, however one resident did start the process. The guidelines and requirements of this program are attached (see Attachment No. 1).

Summary of the available private sewer lateral program for vicinity jurisdictions with similar demographics is as follows:

• City of Santa Ana: property owners are responsible for maintenance, operation, cleaning, repair, and reconstruction of the entire length of the private sewer lateral from their house to the city’s public sewer main. However, the city has a program to help property owners with repair and replacement of the lateral within the public right-of-way. This program is funded with separate sewer lateral fees paid by the residents.
• City of Fullerton: property owners are responsible for maintenance, operation, cleaning, repair, and reconstruction of the entire length of the private sewer lateral from their house to the city’s public sewer main. The city has a routine sewer lateral cleaning program for the locations where the city determined that the issues are caused by the city trees.
• City of Costa Mesa: property owners are responsible for maintenance, operation, cleaning, repair, and reconstruction of the entire length of the private sewer lateral from their house to the city’s public sewer main. The city will pay for repair and replacement of sewer lateral if damage was caused by the city trees.
• City of Anaheim: there is no published information about private sewer laterals. Staff confirmed with Anaheim’s sanitation staff that their policies regarding private sewer laterals are similar to the City of Costa Mesa.
• City of Huntington Beach: the city assumes the responsibility of a portion of all sewer laterals from the city-owned sewer main through the public right-of-way to the private property line. This program is funded with separate sewer lateral fees paid by the residents.

Program details and published information for the above cities and other jurisdictions are attached (see Attachment No. 2). Many private sewer lateral insurance programs are available. The monthly premium is $10 a month or higher depending on the coverage limits. This amount covers up to $8,000 in repair costs, which is sufficient to cover most repairs. A few of the cities in California have formed a partnership with an insurance company in an effort to make homeowners aware of their ownership and responsibility regarding sewer laterals as well as the available insurance program. Some sample information is attached (see Attachment No. 3). In addition, staff has utilized the on-call services of AKM Consultant to provide the estimated financial impact if GGSD were to assume the responsibility of repair and/or replacement of sewer laterals within the public right-of-way. The letter from AKM is provided (see Attachment No. 4).

There is no impact on the General Fund. However, there could be a significant impact to the Sewer Fund depending on the GGSD Board direction regarding private sewer laterals.

It is recommended that the Garden Grove Sanitary District Board:

• Approve to continue with the current sewer lateral policies and loan program. 

By:  Samuel Kim

       Water Services Manager