TO: Board of County Commissioners
FROM: John A. Titkanich, Jr., County Administrator
DATE: April 9, 2025
SUBJECT: Interlocal Agreement with City of Sebastian Community Redevelopment Agency concerning Sebastian CRA Septic to Sewer Project
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BACKGROUND
At our Joint City - County Meeting one of the key issues discussed was septic to sewer. Utilities Director Sean Lieseke presented on septic to sewer and the mandates included in Florida House Bill 1379 (signed into law in 2023). The legislation mandates a shift from septic systems to central sanitary sewer system (where available) or the installation of enhanced nutrient-reducing septic systems by July 1, 2030. The City expressed that in addition to planning and providing sanitary sewer services in the City, the Sebastian CRA Septic to Sewer Project, with properties generally located along or in close proximity to the Indian River Lagoon, as a high priority project.
County and City and staff has been meeting over the past 15 months discussing and planning this project. In January 2022, the City received a Septic to Sewer Conversion Evaluation Report related to the CRA redevelopment area. The report identified 188 sites within the CRA, 96 sites that are developed, not connected to sewer and utilizing septic systems, and 92 sites that are vacant where there is no connection to sewer. Indian River County Utilities staff evaluated the 2022 report and internally designed a conceptual project plan to install thirteen (13) sewer mains within the CRA, seven (7) of the sewer mains are proposed to be located within existing rights-of-way and six (6) will require easements from property owners.
Following the conceptual design of septic to sewer project, the County and the City discussed how the project could be accomplished through a partnership for the public infrastructure, specifically installing sanitary sewer mains. This project will enable both the developed (and not connected to sewer) and vacant sites, as identified in the City's Septic to Sewer Conversion Evaluation Report, to connect to the sanitary sewer system. A clear benefit is the impact to the Indian River Lagoon and the environment. The City's report estimates 10,570 lbs/year of Nitrogen pollutant loading generated by the continued use of septic system. As the report details, this is not an estimate of total Nitrogen load contributing directly to the Indian River Lagoon, but it is an estimate of the total Nitrogen load from each community which is intercepted by an adjacent surface water that is a tributary (river, creek, ditch, etc.) to the Indian River Lagoon.
The partnership is proposed between the County, the City, and the Sebastian CRA and focuses on the public infrastructure - installing sanitary sewer mains. The City will cover the costs of materials/parts (up to $100,000) and the County will manage and program the project as the work schedule allows to construct the sewer mains using existing IRCDUS staff to minimize costs. The County additionally agrees to waive any connection fees for individual homes and businesses; however, property owners will still be responsible for sewer impact fees, currently $2,624 per ERU (Equivalent Residential Unit). The agreement provides that the project will begin within 60 days of the agreement becoming effective and both parties will work in an expeditious manner to complete the project. Lastly, the ILA provides for a proportionate fair share of BMAP credits based on a final accounting of direct and indirect project expenses.
ANALYSIS
The County and City entered into an Interlocal Agreement (ILA) in 1995, prior to the County acquiring the City's utility system and the County agreed to supply water and wastewater services within the City subject to the provisions of the ILA. Pursuant to the ILA, if the City requests such service and the County has the wastewater treatment capacity available, the County will provide wastewater service provided the City and County agree on a financing plan. In addition to the Joint City - County meeting and several meetings between the staff and elected officials of both jurisdictions, the City submitted a formal request on January 27, 2025, which was largely consistent with the City and County discussions. The proposed ILA has been developed and reviewed by staff of both jurisdiction and it reflects a plan where the County and City through a partnership will undertake the Sebastian CRA Septic to Sewer project.
BUDGETARY IMPACT
Costs cannot be fully determined at this time. In lieu of hiring a contractor to undertake this project, the Utilities Department will manage and program staff for a majority of the project internally. As may be required dependent on field conditions, Utilities may be required to contract with an approved contractor for directional boring and other services unable to be performed in house.
PREVIOUS BOARD ACTIONS
The County entered into an Interlocal Agreement providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System on September 20, 1995.
There are no prior Board actions specific to the Sebastian CRA Septic to Sewer Project.
POTENTIAL FUTURE BOARD ACTIONS
The City additionally submitted a letter on January 27, 2025, concerning the County's wastewater capacity and ability to service existing areas (properties) within the City with sanitary sewer. The City acknowledges this response required more detailed information, on which the County is already working and will respond to the City.
STRATEGIC PLAN ALIGNMENT
Infrastructure, Environment, and Governance.
OTHER PLAN ALIGNMENT
The Sebastian CRA Septic to Sewer Project is an adopted project in the CRA's Community Redevelopment Plan.
STAFF RECOMMENDATION
Approve the Interlocal Agreement between the Indian River County Board of County Commissioners, the City of Sebastian, and the Sebastian Community Redevelopment Agency for the Sebastian CRA Septic to Sewer Project.
ATTACHMENTS
1. Proposed Interlocal Agreement
2. Project Map
3. Materials/parts list, by projects within existing rights-of-way
4. Materials/parts list, by projects where an easement is required
5. City of Sebastian, January 27, 2025 letter.