Update:
So anyhow, on Wednesday the Health Dept had their usual meeting to discuss regular business and issues such as mine. I was not there. I did, however, go on record by sending an email expressing my concern for having the neigbor's septic meet code not only as regards set backs, but also construction. I followed up with another email yesterday asking about the outcome from the meeting. So far I haven't heard back. I will make sure to close the loop on this and let everyone know the outcome.