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• Some communities choose to use vacuum excavating <br /> Mr. Pasko noted that again, these choices are based on individual community ordinances <br /> and their specific issues. <br /> How Much Do the Tools Cost to Use? <br /> Mr. Pasko again provided a matrix comparing the cost for various options, and limits of <br /> the lateral rehabilitation, including: <br /> • Up to the wye: estimated at $2,000; <br /> • Up to the edge of the road: estimated at $3,000 to 7,000; <br /> • Up to the rights-of-way (same as above) <br /> • With the upper lateral, Mr. Pasko opined that most of the cost was the <br /> contractor's mobilization to get to the site; with the actual length of the lining <br /> not that problematic beyond the cost of the base project itself, estimating it at <br /> $1,000 to $2,000 based on his very schematic level opinion of construction <br /> costs. <br /> As an example, in the City of Edina, with most of their single-family homes built pre- or <br /> post-World War II, they may experience 60% to 70% of those homeowners using private <br /> contractors. <br /> If the City had cast iron laterals, Mr. Pasko suggested the city not bother and just leave <br /> them along. However, if the majority of the city's pipes were clay or orange bird piping, <br /> Mr. Pasko suggested that the city seriously consider a lateral lining initiative. <br /> Based on his experience, Mr. Pasko briefly addressed lateral insurance or warranty <br /> programs, and reported on various communities throughout the country. <br /> Mr. Pasko provided one example of the city forces undertaking that private lateral work <br /> themselves rather than hiring an outside contractor, essentially using city labor and <br /> equipment. Mr. Pasko advised that part of their rationale was that it provided them <br /> another opportunity to interact with customers in a positive way, and whether or not the <br /> lateral rehabilitation program is also subsidized or not, they claim they've been <br /> successful in their endeavors. <br /> Mr. Pasko provided other examples, such as in the Philadelphia area where the <br /> municipality chose a for-profit warranty program at reasonable rates. However, Mr. <br /> Pasko noted that this created some significant increases in utility rates of up to a $1 <br /> increase in one year; and some communities were limited in the number of contractors <br /> serving in this capacity. Mr. Pasko noted that most of the warranty program agreements <br /> allow the municipality to build in a clause for choosing contractors or only quotes from <br /> local contractors. Mr. Pasko cautioned that there were pros and cons with this type of <br /> warranty program, one of which was whether or not the municipality may be endorsing <br /> certain plumbers above others. Mr. Pasko noted that he had found with municipalities <br /> partnering with these warranty programs, their residents had been engulfed with mass <br /> mailings from the plumbing industry. <br /> Page 5 of 20 <br />