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City Council Regular Meeting Minutes June 10, 2003 Page 4 Councilmember Thuesen asked if homes sold in the past two years would be subjected to another inspection. He agreed that incorporating an ongoing education component for the 3 Residents would be a good plan. He stated that he is in favor of the two-rate system adding that 4 it would not be fair to penalize residents who are in compliance. He stated that he is also in 5 agreement that a grant process of some kind should also be incorporated with the two-rate 6 system. He expressed his agreement with Councilmember Faust that the City should be sensitive 7 to residents who might not be able to afford a lump sum payment adding that they should offer 8 an option that would assist the homeowners with the costs. Mr. Hubmer clarified that 9 homeowners would not be subjected to a second inspection if they are on record as already 10 completing one. 11 12 Mayor Hodson stated that it is his understanding that approximately 75% of the residents are not 13 in compliance. He reviewed the process and concerns noting that the penalty would continue to 14 accrue until resolved. 15 16 Councilmember Sparks asked for clarification of the costs. Mr. Hubmer stated that last year the 17 City paid between $50-$70,000.00 for waste water treatment. He explained that they also have 18 several residents who experience sewage backup that causes damage on a yearly basis. He stated 19 that this is another major component that should be considered. 20 21 Councilmember Sparks stated that she prefers the lump sum payment adding that she is in 22 agreement that the City should establish a grant process to assist residents who cannot afford a dolump sum payment. 25 Mr. Hubmer explained that the Metropolitan Council receives 60-70% of what is paid for waste 26 treatment. Mayor Hodson stated that a two-rate structure would allow the City to reward 27 residents who are in compliance adding that if the City could reduce the 70% down to 40%that 28 it would be very beneficial to the City. 29 30 Councilmember Thuesen asked if there would be any incentives offered to those residents, who 31 on their own, fixed the problem in the past or paid for it out of their own pocket, because they 32 felt it was the right thing to do. 33 34 Councilmember Faust agreed that the City should implement a continued education process 35 utilizing the City Newsletter and cable TV. He suggested informing the residents that as of July 36 1, 2004 that there would a penalty for homeowners who have not had their homes inspected and 37 are not in compliance. He reviewed his understanding of the two-rate system stating that he has 38 an issue if some of the residents have already paid out of pocket. He stated that the assessment 39 would be a way to address that issue and provide some benefit back to the homeowner. He 40 stated that the assessment could be included in the bond rating in order to lower the interest 41 rates. 42 43 Mayor Hodson stated that he is in support of a continued education program and the two-rate 44 system. He clarified that the Council is not prepared at this time, without further discussion, to determine the assessment and penalty process. He agreed that implementing a grant process 16 could assist in subsidizing a portion of the repair for homeowners. 47