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Attachment 10 - Lateral Grant Program Memo

Pacifica City Council
June 9, 2025

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Attachment 10 - Lateral Grant Program Memo
Meeting
June 9, 2025
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Pacifica City Council
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CITY OF PACIFICA
170 Santa Maria Avenue • Pacifica, California 94044-2506 www.cityofpacifica.org
MAYOR
Sue Beckmeyer

MAYOR PRO TEM
Christine Boles

COUNCIL
Mary Bier
Mayra Espinosa
Greg Wright
Scenic Pacifica
Incorporated Nov. 22, 1957
Date: May 27, 2025
To: Kevin Woodhouse, City Manager
Through: Louis Sun, Deputy Director of Public Works – Wastewater From: Daniel Patten, Engineering Manager, Public Works – Wastewater Subject: Lateral Grants Program Update
The City’s lateral grant program provides incentives for residents to replace privately owned sewer laterals. The City budgets $200,000 per year to assist residential units meeting the criteria as shown in the attached lateral grant program application (Attachment 1). Grants are typically issued for $2,000 and are applied to the total cost of a lateral replacement. Permit and other up-front fees from the City include:

Table 1 Typical Permit Related Fees
Permit / Cost Item Fee
Typical Pavement Cut Fee $500
Encroachment Permit and Inspection
Fees $771
Tree Permit / Arborist Report
(Open-Trench Only) $2,500
Refundable Deposit $1,200
Total $4,971
The City has received one hundred and eight applicants during the 2024 / 2025 Fiscal Year. Sixty-four residents have completed their process, and the City has reimbursed $128,000 as of today’s date. An additional forty-four residents have submitted applications, where the work is in progress, or the contractor has not yet provided final billing. Thus, the City is on track to reimburse $216,000 in Lateral Grants in FY24/25.

MEMORANDUM
2 The City provided $1,000 grants per resident and had a total budget of $100,000 per year in FY 21/22 and prior fiscal years. The budget increased to $200,000 in FY 22/23 and the grant value was increased to $2,000 per resident. The City received significantly more applications in FY 24/25 than in previous years and is on track for the program to exceed its budget. Staff believe that the incentives as part of the Lower Linda Mar R&R Project have contributed to this increase.

Table 2 Lateral Grant Fund Performance
Year Budget
Lateral Grants
Reimbursed Actuals Remaining
21/22 $ 100,000 88 $88,000 $12,000
22/23 $ 200,000 63 $126,000 $74,000
23/24 $ 200,000 39 $78,000 $122,000
24/25 $ 200,000 108* $216,000* $(16,000)
25/26 $ 200,000 N/A N/A
*Anticipated
The City currently advertises the Lateral Grant Program on the City’s website. The City issues a public request for quotations each year to pre-qualify plumbing contractors to perform work as part of the Lateral Grant Program. These contractors work with the City to publicize the program through their own advertising materials.

The Lower Linda Mar Project included set bid prices for the contractor to provide lateral replacements for residents. Several fees were waived as part of the project, and the typical cost to a resident (including permit fees) was as low as $5,240 (prior to receiving a grant). Costs for a typical lateral at this time were close to $12,000 including fees. The City’s outreach included a public meeting, sending out two rounds of postcards, and providing door hangers. The contractor provided additional door hangers, and sign boards near the work area with information on the lateral grant program. Fifty-seven residents have applied for grants in the project area as of May 21, 2025.
3 Table 3 Key Figures FY24/25
Parameter Value
Lateral Grant Program Applications 108
Grants Reimbursed 64
Grants in Progress 44
Applications in the Lower Linda Mar Project Area 57
FY 24/25 Budget $200,000
Fees Reimbursed $128,000
Anticipated Total Reimbursement FY 24/25 $216,000
Anticipated Final Balance $(16,000)
The City is planning on holding public meetings to encourage residents in the Rockaway Beach and Vallemar neighborhoods to replace their laterals as part of the Vallemar and Rockaway Beach Boulevard Areas Sewer Rehabilitation and Repair Project later this year as we approach design completion and bidding. Wastewater Division staff will have literature to distribute at the 2025 Public Works Open House as well. City staff have discussed ideas to develop additional outreach materials for the City’s website and social media (e.g. the City’s Nextdoor account) however significant work has not begun.

Sewer Problems?
Attention: Pacifica Residents
City of Pacifica Sewer Lateral Replacement Program:

Notice of Availability of Free Inspections and
Grant Funding for Sewer Lateral Replacement
Beginning July 1, 2024 the City of Pacifica will inspect qualifying residents’ sewer laterals for defects, leaks and failures, and provide reimbursement grants for the replacement of qualifying laterals that are leaking due to root infiltration, breaks, cracks, failed pipe, “Orangeburg” pipe, and alignment problems at $2,000. The program will expire on June 30, 2025 or when 100 laterals are replaced, whichever comes first.

These inspections will be done on a first come first serve basis and are limited to the first 100 applicants.

For further information on the City’s Sewer Lateral Replacement Program, please call Doug Trade at 650-738-7472 or visit the Waste Water Treatment Department at the Calera Creek Water Recycling Plant, 700 Coast Highway in Pacifica.

Please note that information provided by private contractors is not official information and may not accurately reflect City policies and regulations. Only personnel of the City’s Waste Water Treatment Department should be consulted for information on this Program.

Eligible properties are one’s that are not in need of a Lateral Compliance Certificate for a real estate transaction or major remodel within the next 2 years.

If any property that receives a grant is transferred, has a major remodel ($50,000 or more) or adds any new plumbing fixtures or drains or any other action that would trigger the need for a Lateral Compliance Certificate within 2 years of grant award, the property owner will be obligated to return the $2000 grant in full within 30 days of such action. 2024-25
City of Pacifica Sewer Lateral Replacement Program:

Program Guidelines
Background
The City of Pacifica municipal code requires that property owners or persons in possession of property properly maintain side, or lateral, sewer lines connecting privately-owned buildings to the City’s main sewer lines at the owners’ own costs.

On July 1, 2024, City of Pacifica will begin their Sewer Lateral Replacement Program (“Program”) to enable the City to (a) inspect potentially defective, leaking and/or failed laterals connecting private residences to the City’s main sewer line, and (b) offer grants to reimburse property owners a portion of the cost of replacing qualifying defective, leaking and/or failed laterals.

Eligibility
To be eligible for a lateral inspection under this Program:

1. the property must be a private, single-family primary residence or the property must be owned and operated by a nonprofit organization, on a not-for-profit basis, as temporary or transitional housing or related services for homeless persons;

2. the property must not have already received benefits through this Program;

3. the lateral must be at least ten years old or there must be a reasonable basis to believe that the lateral is defective, leaking and/or failed, as determined by City staff.

4. The property is not in need of a Lateral Compliance Certificate for a real estate transaction or major remodel within the next 2 years.

To be eligible for a grant for lateral replacement reimbursement under this Program:

1. the above criteria for lateral inspection must be met;

2. the lateral must have been inspected through this Program;

3. the lateral must have been found by City staff to be leaking due to root infiltration, breaks, cracks, failed pipe, “Orangeburg” pipe, or alignment problems;

4. the property owner must submit evidence that the lateral has been replaced in conformance with current City codes and specifications, including receipt of required permits, by a contractor licensed to perform such replacement;

5. the property owner must submit evidence of full payment to the contractor.

Award Limits
For each grant given under this Program, reimbursements are limited to $2,000 per property.

When the City has reached the maximum budget for the Program in any fiscal year, the Program may be suspended until further funds are available. When the City has reached the maximum aggregate budget for the Program, the Program may be terminated. 2024-25
City of Pacifica Sewer Lateral Replacement Program:

Application for Free Sewer Lateral Inspection
and Right of Entry for Inspection of Lateral
Property Address:

Name of Applicant:

This property is:
___ a private, single-family primary residence
___ owned and operated by a nonprofit organization, on a not-for-profit basis, as temporary or transitional housing or related services for homeless persons I am the legal owner of the property located at the above address. [_____] (initial here) or I am a legal representative of the nonprofit organization that owns the property located at the above address. [_____] (initial here)
The lateral on this property is at least 10 years old. [_____] (initial here) or I have the following reasons to believe that the lateral located at the above-identified property is defective, leaking and/or failed: [_____] (initial here)

AUTHORIZATIONS, WAIVERS, ACKNOWLEDGMENTS AND AGREEMENTS I hereby authorize and grant employees or agents of the City of Pacifica the right to enter the above-identified property for purposes of inspecting the lateral connecting building(s) located on the above-identified property to the City’s main sewer line at any time during regular business hours, upon reasonable notice. [_____] (initial here)
I hereby acknowledge that lateral inspection may require the removal of plants and landscaping, and authorize City employees or agents to remove plants and landscaping as necessary to conduct the inspection. I understand that City employees or agents will return the plants and landscaping to as close to their prior condition as practicable. [_____] (initial here) I hereby acknowledge that lateral inspections may be performed by the use of closed-circuit video cameras. If City employees or agents create a video recording of the inspection of any lateral located on my property, such recording(s), as well as copies of any written reports on the inspection, will be provided to me after City review and will belong to me. However, I will grant the City reasonable access to such videos upon request. [_____] (initial here) I hereby waive and agree not to assert any claim, demand or cause of action against the City, its officers, employees, councilmembers, volunteers and agents arising from exercise of this Right of Entry and/or performance of any lateral inspection on my property by City employees or agents. [_____] (initial here)
I hereby acknowledge and agree that the entry of, and inspection by, any City employees or agents does not relieve me of my legal responsibility for the maintenance, nor ownership, of the inspected lateral. [_____] (initial here)
I hereby acknowledge and agree that completion of a lateral inspection by City employees or agents does not qualify me or my property for any further City-provided benefits, including the grant of funds for repair or replacement of the inspected lateral. [_____] (initial here) I hereby acknowledge and agree that for the next 2 years if my property is transferred, has a major remodel ($50,000 or more) or adds any new plumbing fixtures or drains or any other action that would trigger the need for a Lateral Compliance Certificate, I will be obligated to return my $2000 grant in full within 30 days of such action. [_____] (initial here) _____________________________ _________________________ Print name here Mailing Address
_____________________________ _________________________ Signature Telephone Number(s)
_____________________________
Date
Applications may be submitted by mail or in person to: City of Pacifica Waste Water Treatment Department, 700 Coast Highway, Pacifica, CA 94044, Attn: Sewer Lateral Replacement Program
Note: To the extent possible, an employee or agent of the City of Pacifica will contact each applicant within ten (10) days of receipt of this application to inform the applicant of the status of their application.
____________________________________________________________________________ For City staff use only:

Application received on (date): _________________
Application reviewed by: _________________
Application decision made on (date): _________________
Application decision: ____ Application for inspection accepted ____ Application for inspection denied
Reason(s) for denial, if appropriate:
* * *
If application for inspection granted
Inspection performed by: _________________
Inspection performed on (date): _________________
Copy of video made: ____ Yes
____ No
Report completed on (date): _________________
2024-25
City of Pacifica Sewer Lateral Replacement Program:

Application for Grant to Reimburse for Costs of Lateral Replacement Property Address:

Name of Applicant:

This property is:
___ a private, single-family primary residence
___ owned and operated by a nonprofit organization, on a not-for-profit basis, as temporary or transitional housing or related services for homeless persons I am the legal owner of the property located at the above address. [_____] (initial here) or I am a legal representative of the nonprofit organization that owns the property located at the above address. [_____] (initial here)
Date of lateral inspection through City of Pacifica Sewer Lateral Replacement Program (attach written Property Evaluation Response report):

Date(s) of lateral replacement (attach invoice and any other available evidence that the lateral has been replaced in conformance with current City codes and specifications.

WAIVERS, ACKNOWLEDGMENTS AND AGREEMENTS
I hereby acknowledge and agree that for the next 2 years if my property is transferred, has a major remodel ($50,000 or more) or adds any new plumbing fixtures or drains or any other action that would trigger the need for a Lateral Compliance Certificate, I will be obligated to return my $2000 grant in full within 30 days of such action. [_____] (initial here) I hereby waive and agree not to assert any claim, demand or cause of action against the City, its officers, employees, councilmembers, volunteers and agents arising from the lateral replacement at the above-identified property. [_____] (initial here) I hereby acknowledge and agree that a grant from the City does not relieve me of my legal responsibility for the maintenance, nor ownership, of the replaced lateral(s). [_____] (initial here)
I hereby acknowledge and agree that I undertook the lateral replacement at my own risk and that the City does not warrant work performed the contractor who performed the lateral replacement. [_____] (initial here)
_____________________________ _________________________ Print name here Mailing Address
_____________________________ _________________________ Signature Telephone Number(s)
_____________________________
Date
Applications may be submitted by mail or in person to: City of Pacifica Waste Water Treatment Department, 700 Coast Highway, Pacifica, CA 94044, Attn: Sewer Lateral Replacement Program
Note: To the extent possible, an employee or agent of the City of Pacifica will contact each applicant within ten (10) days of receipt of this application to inform the applicant of the status of their application.
____________________________________________________________________________ For City staff use only:

Application received on (date): _________________
Application reviewed by: _________________
Application decision made on (date): _________________
Application decision: ____ Grant awarded in the amount of $______ ____ Grant application denied
Reason(s) for denial, if appropriate:
* * *
If grant awarded
Reimbursement issued by: _________________
Reimbursement issued on (date): _________________
Notes:

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