1. 1 By: Dan Scherer, Assistant Superintendent of Water & Sewer

2. Missouri Revised Statutes Chapter 249 / Section 249.422 Fee imposed to repair lateral sewer service lines for certain residential property and in certain counties--condominiums responsible for proportionate share--ballot form--special account established for fees collected. 249.422. 1. If approved by a majority of the voters voting on the proposal, any city, town, village or county on behalf of the unincorporated area, located either within the boundaries of a sewer district established pursuant to article VI, section 30(a) of the Missouri Constitution or within any county of the first classification having a charter form of government with a population of more than two hundred ten thousand inhabitants but less than three hundred thousand inhabitants, may by city, town, village or county ordinance levy and impose annually for the repair of lateral sewer service lines on or connecting residential property having six or less dwelling units a fee not to exceed fifty dollars per year. 2

3. O’Fallon Municipal Code Section 700.175 A. A. There is hereby levied and assessed against all residential property having six (6) or less dwelling units an annual fee of five dollars ($5.00) for the repair of lateral sewer service lines on or connecting such property with the public sewer system line. B. B. The fee imposed hereby shall be imposed upon condominiums that have six (6) or less condominium units per building and each condominium unit shall be responsible for its proportionate share of any fee charged pursuant to this Chapter, and in addition, any condominium unit shall, if determined to be responsible for and served by its own individual lateral sewer line, be treated as an individual residence regardless of the number of units in the development. C. C. The fund collected pursuant to this Section shall be deposited in a special account to be used solely for the purpose of paying for all or a portion of the costs reasonably associated with and necessary to administer and carry out the defective sewer lateral service line repairs. D. D. The fee levied hereby shall be added to the general tax levy bills of property owners within the City and may be charged a fee in the same manner and to the same extent as provided for the collection of delinquent real estate taxes and tax bills. 3

4. Implementation and Fees  August 27, 2009  Initial Annual Assessment  $20 per household  Paid with annual Real Estate Taxes  2015 Assessment  $5.00 per household  Fund Distribution  First come, first serve…  Program maximum $7,500 annually/household  Average Number and Cost  Average number of repairs per year 31  Average repair cost-$2,915 4

5. Historical Program Numbers YearRepairsAverage Cost per Repair 200911$3272 201031$2818 201126$3076 201221$2866 201336$2556 201442$2722 2015 (YTD) 9$3096 5

6. Fund Performance Over Past 3 Years 6 YearEnding Fund Balance 2012$420,901.00 2013$401,643.00 2014$386,071.00 2015 (projected)$372,852.00

7. Program Coverage  Who is covered?  Residents within City limits  What is covered?  Private sewer lateral  Eligible repairs  What is not covered?  Commercial sewer lateral  Septic system repairs  Non-eligible repairs 7

8. Types of Repairs  Examples of eligible repairs  Belly  Collapse  Break  Separation  Examples of non-eligible repairs  Root intrusion  Re-location  Septic system  Video/Repairs prior to program inception or prior to applying for the program. 8 Root Intrusion Broken Line

9. Repair Process 1. Resident submission of $300 application fee and form, hold harmless and repair policy 2. Video Inspection by City Contractor  Reimbursement if ineligible 3. Video Review  City staff reviews the video and makes a determination if repair is eligible or not  If eligible, City Staff notifies the contractor that the repair is approved.  Contractor schedules a time with the resident to make the repair.  City Staff inspects the repair when completed  City Staff makes payment to the contactor. 9

10. Comparison of 2015 Annual Program Fees  O’Fallon, Mo. - $5.00  St. Peters, Mo. - $28.00  St. Charles, Mo. - $20.00  Wentzville, Mo. – No Program  Duckett Creek – Plan Under Development 10