AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 19-000542
MEETING DATE:	06/25/19
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Khalid Bazmi (714) 667-3213
	Amanda Carr (714) 955-0601

Subject: Approve Local Agency Management Program and Ordinance for Wastewater Treatment

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Ordinance to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: N/A

RECOMMENDED ACTION(S):

1.	Make the following CEQA Findings:
		a.	The State Water Resources Control Board, as lead agency for the Water Quality Control Policy for Siting, Design, Operation and Maintenance of Onsite Wastewater Treatment Systems, adopted the Onsite Wastewater Treatment Systems Policy and approved the final Substitute Environmental Document prepared for the Onsite Wastewater Treatment Systems Policy on June 19, 2012, pursuant to Section 15251(g) of the CEQA Guidelines as part of a regulatory program certified by the Secretary for Natural Resources. The Onsite Wastewater Treatment Systems Policy authorizes local agencies such as the County of Orange to adopt and implement a Local Agency Management Program under Tier 2 of the Policy, as approved by the Regional Water Quality Control Board.
		b.	As indicated in the attached Resolution of the State Water Resources Control Board: (1) the State Water Resources Control Board, as the certified agency, held public scoping meetings prior to release of the Substitute Environmental Document; (2) the Substitute Environmental Document identifies potentially significant environmental effects within hydrological regions that fall within the jurisdiction of the County of Orange, as well as alternatives or mitigation measures to avoid or reduce those effects; (3) the Substitute Environmental Document was circulated for public comment from September 30, 2011, to November 14, 2011; and (4) the State Water Resources Control Board, as the certified agency, exercised the powers of a lead agency by considering all the Onsite Wastewater Treatment Systems Policy’s significant environmental effects and by making findings for each significant effect.
		c.	As a responsible agency, the County of Orange is authorized, pursuant to CEQA Guidelines 15253, to rely on the Substitute Environmental Document approved by the State Water Resources Control Board for adoption and implementation of the Local Agency Management Program for unincorporated Orange County.
		d.	Adoption of the Local Agency Management Program for the unincorporated County of Orange and enactment via the proposed implementing Ordinance is categorically exempt from the provisions of CEQA pursuant to 15308 of the CEQA Guidelines.
2.		Adopt the Local Agency Management Program for Onsite Wastewater Treatment Systems in unincorporated Orange County and authorize the Director of OC Public Works or designee to submit the Local Agency Management Program to the Santa Ana Regional Water Quality Control Board for approval.
3.		Authorize the Director of OC Public Works or designee to make minor technical modifications to the Local Agency Management Program for Onsite Wastewater Treatment Systems in unincorporated Orange County, as may be requested by the Santa Ana Regional Water Quality Control Board, without further action of the Board of Supervisors.
4.		Read the title of implementing Ordinance for the Local Agency Management Program for Onsite Wastewater Treatment Systems in unincorporated Orange County.
5.		Order further reading of the implementing Ordinance be waived.
6.		Direct the implementing Ordinance be placed on the agenda for the August 13, 2019, Board of Supervisors meeting for second reading and consideration for adoption.

SUMMARY:

Adoption of the proposed Local Agency Management Program for Onsite Wastewater Treatment Systems in unincorporated Orange County and enactment of the proposed implementing Ordinance will allow the County of Orange to implement a County-specific permitting program for septic systems in unincorporated Orange County, giving more flexibility to address local conditions, compared to the default State requirements.

BACKGROUND INFORMATION:

State Onsite Wastewater Treatment Systems Policy Regulating New and Replacement Septic Systems

On June 19, 2012, the State Water Resources Control Board (SWRCB) adopted its Onsite Wastewater Treatment Systems Policy (OWTS Policy) to regulate septic systems on a statewide basis. This OWTS Policy went into effect in April 2013.

The OWTS Policy sets forth a series of stringent, one-size-fits-all siting and design requirements on minimum lot size, setback from waterways, slopes, etc., for new and replacement septic systems statewide. However, the OWTS Policy also provides an option for local agencies wishing to exercise local control of septic systems for domestic wastewater, to establish alternative standards in a Local Agency Management Program (LAMP). The OWTS Policy authorizes LAMPs to deviate from the stringent state standards, to address local conditions, provided the LAMPs are consistent with the general parameters of the OWTS Policy and the protection of human health and the environment. LAMPs are subject to approval by the Regional Water Quality Control Board (RWQCB). Once approved, and if implemented by the local agency, the standards in the LAMP would take the place of the default State of California (State) regulations applicable to new and replacement septic systems.

While most of the County of Orange (County) is connected to the sanitary sewer system, several thousand homes have septic systems, the largest concentration being in the unincorporated County canyon areas (Silverado, Modjeska and Trabuco Canyons). OC Public Works has held multiple meetings with the Inter Canyon League (ICL) and the Development Processing Review Committee and has determined that there is a strong community interest for the County to adopt a LAMP. In response, OC Public Works developed a proposed LAMP and implementing Ordinance for Board of Supervisors (Board) consideration.

County Proposed LAMP

The proposed LAMP sets forth siting, design and operation standards applicable to new and replacement septic systems within the unincorporated County. New systems are those permitted for installation after adoption and implementation of the proposed LAMP. The term “replacement system” refer to an existing system whose treatment capacity is proposed to be expanded (most commonly as a result of expanded treatment requirements from room additions) or whose existing dispersal system is proposed to be replaced in its entirety. OC Public Works has shared drafts of the LAMP with the Santa Ana RWQCB and the ICL and made changes in response to comments received.

Under the LAMP:

• Properly functioning, existing septic systems can continue to operate without change.

• Specific requirements pertaining to the siting, design and operation of new and replacement systems are provided for, including the requirement for an installation permit and annual operating permit, as well as homeowner obligation to have annual third-party inspections conducted to ensure proper operation.

• A [State OWTS Policy-allowed] procedure for granting variances from strict compliance with LAMP requirements is provided to address those situations where, due to specific geographic or other conditions, an applicant seeking to install a new or replacement system is unable to strictly comply with all LAMP requirements.

• Provisions to address failing septic systems are provided to protect public health and safety.

The following chart illustrates some key difference between the OWTS Policy requirements and those in the proposed LAMP:

Type of Regulation

Minimum Lot Size

Maximum Slope

Minimum Setbacks

Variance Available

Annual Maintenance

& Inspection

New/replacement under OWTS Policy (Tier 1)

2.5 acres

25%

Multiple setbacks specified

Yes

New/replacement under LAMP (Tier 2)

1.0 acres

30%

Multiple setbacks specified but adaptable based on special circumstances

Yes

Implementing Ordinance

To implement the technical, performance and inspection requirements of the proposed LAMP, an Implementing Ordinance (Ordinance) for Onsite Water Treatment in the unincorporated County is also proposed for enactment. The Ordinance incorporates the standards in the LAMP and establishes related permitting requirements. Persons seeking to install new or replacement systems would be required to obtain an initial installation permit. The Ordinance specifies that the fee for an installation permit is the County’s existing fee for private sewage disposal systems, as set forth in the OC Development Services Fee Schedule (Fee Schedule) established by separate Resolution of the Board. Once installed, new and replacement systems would be subject to an annual operating permit requirement. The annual operating permit fee is proposed as a time- and materials-based fee, with a minimum deposit of $150 to cover permit processing costs. The deposit amount reflects the anticipated time that would be required for reviewing operating permit applications and issuing permits (no on-site inspection will be conducted by County staff). OC Public Works will monitor the costs associated with the LAMP and recommend adjustments in future revisions to the Fee Schedule, if necessary.

The Ordinance also contains provisions to require corrective action for failing systems (e.g., inadequately treated wastewater or wastewater leaking to ground surface or groundwater), which would apply to all septic systems treating domestic wastewater in the unincorporated County. The Ordinance provides that it is unlawful to operate a failed septic system. OC Public Works does not have specific data on the numbers of failed septic systems. Studies conducted by RBF Consulting (now Michael Baker International) for the County in 2003 estimated a failure rate of 1.25 percent. In many cases, the cause of failure is inadequate maintenance. OC Public Works has developed educational materials that can be distributed to homeowners to promote actions that reduce failures. Failing systems are expected in most cases to be repairable and will not therefore be subject to the requirements for new and replacement systems.

Based on recent history, the number of new and replacement systems that would be permitted under the LAMP is expected to be small, likely under 10 per year.

The LAMP requires approval of the Santa Ana RWQCB prior to the County-specific standards being able to take effect in place of the default State standards. The recommended actions request that the Board adopt the LAMP for the unincorporated County and authorize the Director of OC Public Works (Director) or designee to submit the LAMP to the Santa Ana RWQCB for consideration at its August 2019 meeting. Additionally, authorization is requested for the Director or designee to make minor technical changes requested by the RWQCB. This item further requests that the Board conduct a first reading of the Ordinance and set the matter for a second reading and consideration at a board meeting subsequent to RWQCB approval of the LAMP.

Compliance with CEQA: The SWRCB, as lead agency for the OWTS Policy, adopted the OWTS Policy and approved the final Substitute Environmental Document (SED) prepared for the OWTS Policy on June 19, 2012, as part of a regulatory program certified by the Secretary for Natural Resources pursuant to Section 15251(g) of the CEQA Guidelines. The OWTS Policy authorizes local agencies such as the County to adopt and implement a LAMP under Tier 2 of the OWTS Policy, as approved by the applicable RWQCB. The County, as a responsible agency under CEQA Guidelines Section 15253, is authorized, under CEQA Guidelines 15253, to rely on the SED for adoption and implementation of the LAMP for Onsite Wastewater Treatment Systems in the unincorporated County.

Adoption and implementation of the LAMP in the unincorporated County is categorically exempt from the provisions of CEQA pursuant to CEQA guidelines Section 15308, as an action taken by a regulatory agency, as authorized by the state, to assure the maintenance, restoration, enhancement or protection of the environment, where the regulatory process involves procedures for protection of the environment.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Onsite Wastewater Treatment System Policy
Attachment B - OWTS Policy SWRCB
Attachment C - OWTS Policy Final SED
Attachment D - OWTS Ordinance
Attachment E - LAMP Program
Attachment F - LAMP Appendices