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Possible Ownership Options: <br />The chart below summarizes the surveyed data for the typical ownership options for water <br />service lines. The advantages and disadvantages of each option are listed after the table. <br />1) Status Quo: The property owner owns the entire service line (24 cities/50 surveyed) <br />2) Modified Status Quo: No change to ownership, but ERMU implements a service line <br />protection program to cover repair costs (3/24). <br />3) ERMU owns from the main through the Curb Stop for all properties (26/50) <br />4) ERMU owns from the main through the Curb Stop for residential properties only (3/50) <br />Option <br />Overall <br />Metro <br />MMPA <br />MMUA <br />Size <br />Regional <br />Main Only (ERMU)* <br />24/50 <br />9/28 <br />3/5 <br />9/16 <br />18/33 <br />6/12 <br />Protection Program <br />3/24 <br />0/9 <br />0/3 <br />3/9 <br />3/18 <br />1/6 <br />Through Curb Stop <br />26/50 <br />19/28 <br />2/5 <br />7/16 <br />15/33 <br />6/12 <br />Residential Only* <br />3/50 <br />1/28 <br />0/5 <br />2/16 <br />2/33 <br />1/12 <br />*Includes those cities offering a protection program. <br />Option 1, Status Quo. The property owner owns the entire service line (ERMU's current policy, <br />24/50 surveyed cities use this policy). <br />Advantages: The simplest approach to managing service lines. Customers would have the <br />option to distribute their repair/replacement costs over 10 years by having their repair costs <br />assessed to their property. <br />Disadvantages: Can place a financial burden on customers that need to repair/replace their <br />water service line. Despite numerous "Who Owns What" communications, most customers <br />don't realize they are responsible for service line costs. <br />Option 2: Modified Status Quo. No change to ownership, but ERMU implements a service line <br />protection program to cover repair costs (3/24 cities). <br />Advantages: No change to City Ordinance/ERMU Water Rules. The implementation of a <br />protection program provides a funding source for water service line repairs without impacting <br />rates. Additionally, it can be crafted to control ERMU's liability while still easing the financial <br />burden on customers. The fee would be implemented similar to the City's current franchise fee. <br />It can also include an opt -out option if desired. <br />Disadvantage: Since it's a separate fee (not included in the water rates) some customers may <br />see it as a lack of transparency. <br />Option 3: ERMU owns from main through Curb Stop for all properties (26/50 cities). <br />Advantages: Simple and consistent implementation that mirrors majority of the 50 cities <br />surveyed. Offers protection to all customers, regardless of type, size, or location. The added risk <br />associated with covering all properties could be further controlled by using a tiered structure <br />based on service line size. <br />Page 2 of 3 <br />199 <br />