The city and JEA have a $300 million problem to solve.
And it’s not the pension this time. It’s septic tanks and sanitary sewers.
There are about 85,000 septic tanks in Duval County, according to the city. More than 20,000 of them are located in “septic tank failure areas” based on age and condition of the tanks.
The city is working with JEA to reduce the number of septic tanks and connect users to the sanitary sewer system, which is installed and maintained by the utility.
The goal of the Septic Tank Phase Out Program is to reduce pollutants that are discharged to the St. Johns River from poorly functioning septic tanks. Reducing pollutants entering the river is mandated by the Florida Department of Environmental Protection.
The subject came up Wednesday before the City Council Special Committee on the JEA Interlocal Agreement. The committee was formed to evaluate and recommend changes in how JEA provides its services and its annual contribution to the city budget.
The question was prompted initially by the $2.7 billion unfunded liability in the Police and Fire Pension Fund and a proposal from the city for a one-time, $120 million additional contribution from JEA to help pay down the unfunded liability.
While a smaller cost to cover, the estimated $300 million it will take to phase out septic tanks must be considered when evaluating JEA’s fiscal relationship with to the city, said council member Lori Boyer.
“It has to be part and parcel with the contribution discussion,” she said.
Committee Chair Bill Gulliford said despite having a program in place to connect properties to the sewer system, about 40 percent of the affected properties decline to connect, based on the initial connection cost followed by a monthly bill from JEA for sewer service.
The program includes a 10-year installment payment plan for the connection fee, which averages about $8,000.
He said state law requires connection to a sewer line within a year after it is installed, but the state allows local governments to defer the requirement time, which is the current city policy.
Gulliford said possible options could be to allow JEA to charge septic tank owners a monthly fee to help finance installation of sewer lines throughout the county or possibly raise the water and sewer charges for existing customers to defray part of the cost.
Teresa Eichner, a management and budget analyst with the city, said developers also could help defray the cost of installing sewer service.
She compared a possible sewer fee to the mobility fee, which helps defray the cost of transportation infrastructure associated with new construction, and the tree mitigation fund, which funds planting of trees to replace those destroyed by development.
Paul McElroy, JEA CEO, said the $300 million septic tank issue is likely to come up in December when the utility’s board travels to New York City to meet with bond agencies to determine the utility’s credit rating.
Boyer said there is not enough time to pass legislation to develop a plan to solve the septic tank issue before those meetings. But there is enough time to provide a “conceptual framework” of an agreement for the city and JEA to reduce the number of septic tanks.
“The city and JEA must work together to solve this issue,” Gulliford said. “It’s not getting any better and it’s not going away.”
The committee is scheduled to continue the discussion at 10:30 a.m. Tuesday in the Lynwood Roberts Room at City Hall.
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