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• Based on information received from the City's Finance Director, if the City <br /> implemented an extension of ownership by the City of laterals, the existing <br /> base rates would need to increase by $17.20 per month for water, $11.80 per <br /> month for sewer, or a total of 29.00 per month added to the existing base rate <br /> for all utility payers. By the City needing to absorb that new lateral liability, <br /> the total base rate for a customer would be $36.12 per month for water, $20.06 <br /> per month or sewer; for a total of$56.18 per month total, nearly double the <br /> current rate to absorb that additional risk. <br /> At the request of Member Seigler, Mr. Schwartz advised that the City's liability in <br /> taking over laterals from the property line to the main would be very significant, <br /> with the overall estimated liability over $72 million over the next fifty years, <br /> whether borne by the City or by individual property owners as part of that overall <br /> amount. <br /> Mr. Schwartz further reported that findings were that each property owner was <br /> spending from $4,000 to $10,000 to repair individual laterals as indicated from <br /> those 45 properties identified in 2014. Mr. Schwartz noted that those repairs were <br /> variable due to the time of year (e.g. winter) when repairs were needed, pavement <br /> restoration types and costs. Mr. Schwartz advised that part of the $72 million <br /> could be addressed for both water and sewer projects if and when economies of <br /> scale were available for multiple projects or timing of lateral repairs as part of <br /> larger projects. In additional to other liability issues for the City, Mr. Schwartz <br /> advised that there were other unforeseen property damages that could be <br /> encountered, further adding to those liabilities, making it more difficult to clearly <br /> identify the actual costs. <br /> Discussion included how to calculate annual assumptions if the City took over <br /> lateral liability; building of the water sewer funds to incorporated any added <br /> liability if the City assumed liability; city versus private property ownership costs <br /> of lateral line replacements/repairs; new construction versus repairs/replacement <br /> of older existing systems; and variables for costs in private yards from the <br /> property to the home depending on landscaping (e.g. retaining walls, vegetation, <br /> etc.). <br /> Member Cihacek suggested an annual utility fee to build the funds over time, <br /> eventually revising the City's current policy to take over the lateral lines once <br /> funds were allotted. <br /> Chair Stenlund stated his issue was in being responsible for the laterals up to the <br /> property line, when he was not the owner of the line up to the main when located <br /> in the City's right-of-way, yet still having to pay for any problems, whether due to <br /> age, poor connections/construction, or compaction of soils. Chair Stenlund noted <br /> the difficulty in a private property owner being able to control or address that <br /> maintenance until a system failure, since he was not the property owner of a <br /> segment of the line from the property line to the main, in addition to the variables <br /> Page 11 of 17 <br />