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Regular City Council Meeting Monday,April 7,2014 Page 23 Further discussion ensued regarding lining in sewer lines versus water lines; how this played out in the future for typical freeze-ups and extreme winter freeze-ups and how to alert residents before then on how to avoid issues; and current tracking done by staff to notify property owners determined to be at risk to start running water. Mr. Schwartz addressed future mitigation efforts as projects worked through the Pavement Management Plan (PMP) to insulate lines as part of construction pro- jects and other options to alleviate these areas. At the request of Councilmember Willmus, Mr. Schwartz estimated a cost of ap- proximately $65,000 to $70,000 to provide $500 per affected household freeze-up and a quarterly credit as proposed by Councilmember Etten; proposing it be fund- ed this year out of reserves for the most part, with future rates calculated and ad- justed annually to address this as it impacted the CIP. Mayor Roe clarified that this was an extreme weather situation, and typically an- nual budgets were not based on worst case scenarios. Discussion ensued, at the prompting of Councilmember McGehee, regarding a potential voluntary insurance program for assessing homes for an annual fee (e.g., $25 per year) to generate funds to maintain a reserve to address future problems, and make repairs to these laterals, to ensure quality water service to residents. Councilmember Willmus opined that he could not personally agree to requiring an additional $25 fee, when efforts could be made when lines are installed that would avoid such issues; and questioned how equity would be addressed for those making the efforts versus those choosing to not make those efforts. Further discussion ensued regarding location of freeze-ups in public rights-of-way and those not within that right-of-way depending on the contractor and actual de- velopment and its timing. Mayor Roe opined that he would find it difficult to implement another $25 annual fee, representing a 15% increase over the base water rate, after residents had ex- perienced a 60% increase over the last few years. Mayor Roe advised that he could not support such a mandate to address 1.5% of the city's properties. Councilmember Etten concurred with Mayor Roe's comments. Etten moved, Willmus seconded, credit up to $500 for homes with frozen water lines and associated costs for those properties hiring a private vendor and work not performed by City staff; and applying a credit of one quarter base rate for those affected homes.