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`r fe 1880 Wain Street, Centers ilfe, %%X55038 t Sta shed -185, 651- 429 -3232 or Tax, 651- 429 -8629 May 17, 2013 Re: Mound Trail Mayor Wilharber and I met on May 16, with residents on Mound Trail. They have several concerns related to the proposal to connect them to watermain. There were some that objected to the sunset date for connection all properties to watermain, where they have working wells. They expressed some questions for Council and we agreed to bring those to the next meeting for consideration. There is some urgency, since what the Council decides could affect their decision on whether or not to connect at this time. 1. Would the City consider changing or removing the dollar limit of repairs to a well that triggers the requirement for immediate hookup? Their argument was that the present limit of $500 makes virtually any repairs a triggering event. Also, they question why the city would care if they spend more since the sunset date applies in either way. On the negative side, the lower trigger amount will encourage connection sooner. Recommendation: I suggest that the council increase the repair amount to $1500, provided that no repair or replacement of the well casing or underground piping would be permitted. That would provide greater latitude to deal with pump, motor and electrical problems that are the typical issues. 2. Would the council consider granting a longer repayment term than the fifteen years that has been suggested? These property owners have extraordinary setbacks from the street since the homes orient toward Centerville Lake. This results in total costs to connect of $15,000 or more in many cases. On the negative side, some agreements have already been signed where a fifteen year term was provided. Recommendation: I suggest that the city allow those with a special assessment for water service exceeding $12,000 to select a 15 or 25 year term, provided the interest rate for the longer option would be 5.25% rather than 4 %. There are about ten property owners in this category that have expressed an interest in connecting and none of those agreements have been returned yet. While the city does not require special assessments to be paid on sale, the banks that provide the mortgages normally require special assessments to be paid off. Homes typically turn over every six to ten years, so increasing the term is not likely to have a significant effect on when the city is finally paid. 43