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Mounds View City Council November 27, 2000 Regular Meeting Page 6 services in the area that may be traced back to the time the houses were built and services installed. Public Works Direct Ullrich indicated it was Staff’s recommendation that the public hearing be continued to December 11, 2000 to allow for more resident input and Staff research into the proposed ordinance change. David Jahnke of 8428 Eastwood Road expressed his concern with allowing residents to opt out of the program. He indicated he believed it would be a nightmare to administrate and keep track of. Mr. Jahnke indicated to him it seemed like purchasing an insurance policy. He then inquired as to how Staff had arrived at the $4.00 per quarter fee per resident. Public Works Director Ullrich indicated there was an actuarial type formula used to determine approximate amounts needed to support the program. The average number of repairs per year, the cost of those repairs and the total number of services in the City were used in determining the fee. Mr. Jahnke expressed concern for having the funds used for other purposes if there were excess funds in the program not used for service repairs. He indicated this has happened to other funds within the City. Steve Begge of 8261 Sunnyside Road indicated he had not had to endure water service problems as others have but said the program seemed to make sense and have a cost benefit to residents. He expressed an interest in having some sort of accommodation made for those that had already made costly repairs. He inquired as to the affect of having some households opt out of the program. Would that make costs go up for those involved in the program? He also asked what would happen if the City determined at some point down the road that the program was too costly to maintain. Public Works Director Ullrich indicted that it is possible that the quarterly fee could be raised in the future if service costs rise. He then indicated the City is trying to do something to relieve the burden on residents for problems with water services. There is nothing a resident can do to maintain the service pipes. They are at the mercy of the soil in the area. There is an area of the City where piping and a valve were newly installed. The soil in the area ate the bolts within 7 years and the valve began to leak. When placing things in the ground there is an unknown. You are not quite sure when it will fail but statistics show it will definitely fail. The City feels it should do something to lessen the burden when services do fail. It may also shorten the duration of the leaks making the repairs less costly and less dangerous to repair personnel if the City controls the repair procedure. Linda Hemenway of 5211 Sunnyside Road told the Council she left work early to attend this meeting as she feels very strongly the City owes something to the residents who have already had to repair their water services. Ms. Hemenway explained she had her service repaired and two weeks later had to have the service inside her house repaired. It is her opinion that her repair was so extensive that she should not need another repair for as long as she lives in the house. She