CITY WIDE IMPLICATIONS

CITY OF HAMILTON

PUBLIC WORKS DEPARTMENT Water and Wastewater Division

Report to:

Chair and Members Public Works, Infrastructure & Environment Committee

Submitted by:

Scott Stewart, C.E.T. Acting General Manager

Date: November 5, 2004 Prepared by: Bert Posedowski

Extension 3199 Jim Harnum Extension 4483

SUBJECT: Implementation of a Sewer Lateral Management Policy

(City Wide) - (TOE02203a) Public Works, Infrastructure, and Environment Committee

Outstanding Business Item (D) RECOMMENDATION: (a) That the “Sewer Lateral Management Policy” attached hereto as Appendix A be

approved as the Corporate policy for maintaining Sewer Lateral-Public Portions located in the City of Hamilton and furthermore, that this Corporate policy come into effect on May 30, 2005.

(b) That the Acting General Manager of Public Works be authorized and directed to

implement a new Sewer Lateral Management program based on the “Sewer Lateral Management Policy” attached hereto as Appendix A and as described in TOE02203(A), including the amendment of the City’s Sewer and Drain By-law R79-172, as amended, in a form satisfactory to the City Solicitor, to implement the said “Sewer Lateral Management Policy”.

(c) That the City’s “Sewer Lateral Tree Root Policy” (as amended) be repealed as of

May 30, 2005. (d) That Item (D) “Maintenance of Yard Sewers and Private Drains” be lifted from the

Outstanding Business List of the Public Works, Infrastructure, and Environment Committee.

Original Signed By ____________________ Scott Stewart, C.E.T. Acting General Manager Public Works

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EXECUTIVE SUMMARY: Over the past few years, the City has experienced an increase in the costs associated with cleaning tree roots from sewer laterals and investigating and repairing breaks on the Sewer Lateral-Public Portion. This upward trend is expected to continue as the urban infrastructure within the City continues to age. For the purposes of this report, the term “sewer lateral” is used to describe, in combination,

1) Sewer Lateral-Private Portion which is the storm and/or sanitary sewer pipe extending from near a building foundation wall to the property line (also known as the “yard sewer”) and

2) Sewer Lateral-Public Portion which is the storm and/or sanitary sewer pipe extending from the property line to the main sewer (also known as the “private drain”).

A diagram outlining the definition of a typical sewer lateral is attached hereto and shown as an attachment to Appendix A. We conclude, from our review of the existing Sewer Lateral Repair program and Sewer Lateral Tree Root program, that both are onerous to administer and no longer provide best value to the property owner or the City. The programs are based on reimbursing property owners for costs incurred and therefore do not afford City staff the opportunity to fully assist property owners during a period of service disruption. Nor do they provide the City a means to control its costs. Many ratepayers have complained that the policies of the existing repair program are confusing and they have urged the City to consider a variety of sewer lateral management options to replace the existing programs. Through a telephone survey and literature research City staff identified a list of 14 lateral management options to replace the existing program. By applying a ranking methodology, that long list of options was reduced to a short list of four preferred options. Public opinion was solicited on the four preferred options through a series of public open houses in early 2003 when two of the options were flatly rejected. The two options that were reject were 1) a Warranty type program where property owners “opt in” and receive City provided operations and maintenance services and 2) an incentive rebate program where the City inspects and identifies lateral defects; property owners are mandated to make repairs, those that do within a timeframe receive an incentive rebate. The surviving options available for consideration are: City Management – All sewer lateral operation and maintenance (O&M) activities on both the private and public portions are completed by City forces. Joint Management – All O&M activities on the Sewer Lateral-Public Portion are completed by City forces. All O&M activities on the Sewer Lateral-Private Portion are the responsibility of the property owner. City staff consider the Joint Management option as the preferred option and are recommending the implementation of a new sewer lateral management program based on the Joint Management approach. Staff are confident that through the implementation of the Joint Management option the City can offer residents a higher

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level of service, deliver these services at a lower unit cost, and partially recover some costs through user fees; all while still offering property owners freedom of choice within a program that is understandable and uncomplicated. BACKGROUND: The recommendations provided in this Report have City-wide implications. Currently, the maintenance of sewer laterals is governed by the policies outlined in Sewer and Drain By-law R79-172 (as amended). The By-law requires that owners of land draining into any main sewer are responsible for the full cost and expense of maintaining, repairing, and replacing the Sewer Lateral-Private Portion and the Sewer Lateral-Public Portion including the cost of repairing damaged or disturbed roadways, sidewalks, or curbs. The existing Sewer Lateral Repair and Sewer Lateral Tree Root programs have evolved as a result of two “notwithstanding” clauses within the existing By-law. In clause 11.(2) of the By-law the City is granted the option to fund the repair of Sewer Lateral-Public Portion that are structurally damaged and meet the By-law definition of “broken”. In clause 11.(3) the City is granted the option to participate in the funding to clean or replace sewer laterals that are blocked by roots caused by City trees. Based on these two notwithstanding clauses the City administers and funds the Sewer Lateral Repair Policy and the Sewer Lateral Tree Root Policy. The delivery of each of these current policies is described briefly below: 1) Sewer Lateral Repair Policy When a property owner experiences a problem with their sewer lateral it is their responsibility to hire a plumber to clean the sewer lateral and assess the cause of the problem. If the property owner believes the problem is the result of a “break” on the Sewer Lateral-Public Portion they can apply for financial assistance but must first submit a video record of the sewer lateral condition. If the City determines that the Sewer Lateral-Public Portion meets the definition of “broken” then it will participate in the reimbursement of repair costs and up to $600 of investigative costs. If the sewer lateral is “broken” the property owner is required to obtain three repair quotations and submit these to the City for review. Based on the quotations received the City will establish the value of reimbursement available to the property owner. The property owner is required to coordinate the final sewer lateral repair with the contractor of their choice. If the Sewer Lateral-Public Portion does not meet the definition of “broken” the property owner is obliged to pay all cleaning, inspection, and repair costs. Sewer Lateral Tree Root Policy When a property owner experiences a sewer lateral problem that they believe is caused by tree roots from a City tree they are required to hire a plumber to clean the sewer lateral and assess the cause of the problem. If the plumber identifies the cause of the problem as tree root intrusion from a City tree, the property owner can submit the plumber’s invoice for the City’s review. The City will confirm whether a tree exists on public property and in the vicinity of the plugged sewer lateral. The City will also confirm that the sewer lateral was properly cleaned as prescribed in the policy. If both criteria

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are met the City will reimburse the cost of the cleaning. If one or more criteria are not met the property owner is ineligible for reimbursement. Eligible property owners can receive reimbursement for up to two sewer lateral cleanings per year. If more than two cleanings are required in a year, or at the City’s discretion, the property owner may be offered an opportunity to share in the cost of permanently repairing the sewer lateral. Both of the aforementioned policies were developed to assist property owners facing the financial hardships associated with sewer lateral maintenance and repair. Unfortunately, the issue of responsibility for the maintenance, repair, and replacement of the sewer lateral is unclear and/or unacceptable to the public and most property owners consider the City’s efforts (and these policies) as ineffective in addressing the financial and emotional burden brought on by a sewer lateral failure. Our review concludes that the existing programs are onerous to administer and no longer provide best value to the property owner or the City. The programs are based on reimbursing property owners for costs incurred and therefore do not afford City staff the opportunity to fully assist property owners during a period of service disruption nor do they offer any mechanism to control costs. The number of sewer laterals in the City stands at over 122,000. Based on a service life of 80 years per lateral, approximately 1,525 sewer laterals should be rehabilitated or replaced annually. Due to the reactive nature of the current policies, the number of annual sewer lateral repairs is not near this rate and therefore an ever-increasing risk exists for sewer lateral failures, subsequent basement flooding, and costly emergency repairs for both the property owner and the City. With the goals of simplifying the sewer lateral repair process, improving service, and reducing costs, the Water and Wastewater Division is proposing to terminate the existing policies and implement a new policy based on the City taking a proactive role in sewer lateral operation and maintenance. Key features of the new policy include the City’s delivery of 24-hour sewer lateral cleaning and investigative services and the City’s proactive role in the coordination of Sewer Lateral-Public Portion repairs.

ANALYSIS OF ALTERNATIVES: Through a telephone survey and literature research City staff identified a list of 14 lateral management options to replace the existing program. By applying a ranking methodology this long list of options was reduced to a short list of four preferred options as defined below: Option 1: City Management - the City would be responsible for the operation and

maintenance of the entire sewer lateral (both the Public and Private Portions).

Option 2: Joint Management - the City would be responsible for the operation and maintenance of the Sewer Lateral-Public Portion and the property owner for the operation and maintenance of the Sewer Lateral-Private Portion.

Option 3: Warranty – the responsibility for maintenance of the sewer lateral remains with the property owner, but operation and maintenance activities would

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be provided by the City based on a yearly fee (similar to a warranty service fee).

Option 4: Incentive Rebate – the responsibility for maintenance of the sewer lateral would remain with the property owner, but the City would regularly inspect sewer laterals as part of its ongoing road reconstruction and sewer main line replacement programs. Property owners would be advised of defects and fined if repairs were not completed on Sewer Lateral-Public Portions within a specified period (such as 90 days). Property owners that enact repairs within specified time periods would qualify for incentive rebates.

Public opinion on the four preferred options was solicited through a series of public open houses in early 2003. Thirty-eight written responses were received from the open houses and the majority of respondents were familiar with and/or had participated in the City’s existing repair programs. The number of responses was insufficient to be of statistical significance. Furthermore, the responses may be skewed given the respondents’ familiarity with the existing lateral repair programs. For these reasons, the results may not represent the views of the larger population. The results of the open houses can however be used as a reference in moving forward with the selection of a preferred sewer lateral management option. The primary outcome from the open houses was the clear rejection of Options 3 and 4 and support for Options 1 and 2. Feedback received in favour of Options 1 and 2 included comments with regard to the simplicity of these options, the simplicity associated with a (fixed) flat fee, and the fact that the management and control of the programs would be centralized. “Option 1” is the least complicated but does raise two operational concerns namely, it places the City responsible for work on private property, and the public may perceive this as a complete transfer of responsibility to the City which may lead to the public’s abuse of the sewer system. This option also raises liability concerns for the City as set out in the “Legal Implications” section of this Report. Staff consider “Option 3” as onerous to administer since accurate records would be required to ensure annual warranty invoices were being directed to the correct property owners and that only warranty property owners were receiving the City’s services. There are also difficulties anticipated with property owners enlisting in the warranty program immediately prior to a sewer lateral repair and then opting out of the program immediately thereafter. The clear advantage to “Option 3” is that the cost of the program is not supported by the general population but rather by only those that opt into the program. Staff also consider “Option 4” difficult to administer since a large component of the program is based on the City’s identification of problems, the City’s notification to property owners, and the City’s policing of property owner compliance. Option 4 provides a well-defined process for the early identification of lateral problems but does not provide a clear mechanism for ensuring the defects are repaired. For these reasons, City staff consider “Option 2” (Joint Management) as the most appropriate and have developed a sewer lateral management policy based on the joint management approach.

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Option 2: Joint Management The proposed Joint Management program will be based on the simple criterion that maintenance, repair, and replacement of the Sewer Lateral-Public Portion will be the responsibility of the City, provided defects are not the result of property owner neglect. Defects on the Sewer Lateral-Private Portion are the responsibility of the property owner. City staff believe that the use of this simple criterion alone will save costs in administration by reducing the time and effort invested in explaining and defending the program. For example, under the current programs staff are continuously challenged, by the public, to justify the definition of “break” under the Sewer Lateral Repair Policy and further must invest time processing three contractor quotations for each qualifying repair. Within the Sewer Lateral Tree Root Policy staff are investing effort in locating trees on public property, spending time justifying why only two cleanings are allowed per year and explaining why a property owner must share in costs for lateral repairs where damage has been identified as the result of roots from a City tree. Under the proposed Joint Management program, the City will be the first point of contact for any property owner who is experiencing a sewer lateral-related problem. In general, a typical property owner complaint would be resolved as follows: 1) The City will provide a 24-hour, seven days per week, sewer lateral cleaning and

inspection service. A property owner with a sewer lateral problem will call 546-CITY and advise the City of the problem. The City will instruct the property owner of any precautions that can be exercised during the disruption of service and will advise the property owner that the property owner is responsible for the cleanup of any damage inside the building allegedly resulting from the sewer lateral problem. The City will describe its flat fee cleaning and investigation service which will be based on 100% full cost recovery. The property owner will have the option to either use this service or to contract with a private plumber/contractor.

2) If the property owner selects the City service, a crew will be immediately dispatched to the property. The property owner will be required to sign a “service contract” that states that any defect that is located on the Sewer Lateral-Private Portion or any defect that is a result of property owner neglect (such as grease or other inappropriate materials found in the lateral) will result in the property owner being issued with an invoice for the services rendered. The “service contract” will also give permission to the City to enter onto the private property to inspect and clean the entire sewer lateral. Once the service contract has been signed the service crew will clean the sewer lateral, will conduct a video inspection of the sewer lateral, and will locate (typically a spray paint marking) on the private property and/or public property the location of any structural defects.

3) If the blockage or defect is determined to be the responsibility of the property owner, the property owner will be advised of the defects found and will be provided with a copy of the video. The property owner will also be invoiced for the inspection and cleaning services provided.

4) If a defect is determined to be on the Sewer Lateral-Public Portion the City will advise the property owner that a permanent solution will be completed or that the City will schedule ongoing maintenance on the Sewer Lateral-Public Portion to ensure uninterrupted service to that portion of the sewer lateral. If, in addition to the

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above, defects are recorded on the Sewer Lateral-Private Portion the property owner will be advised of the defects and will be provided with a copy of the video.

The key features and benefits of the proposed Joint Management program include: 1) High Level of Customer Service – The City will provide the first point of contact for

the delivery of sewer lateral cleaning and inspection services. If the cause of the problem is isolated to the Sewer Lateral-Public Portion the property owner receives turn-key cleaning, investigative, and repair services.

2) Partial Cost Recovery – The sewer lateral cleaning and inspection service will be based on a flat fee and will reflect the City’s full costs. Where a defect is determined to be the property owner’s responsibility, the City incurs no costs.

3) Customer Choice – Participation in the program is not mandatory and property owners can elect to work directly with a contractor. Property owners that work outside the program may not be eligible for any reimbursement of cost regardless of the source of sewer lateral defect. The City could reimburse property owners, but only if the third party contractors provide the same deliverables as the City’s contractor does.

4) Lower Costs – The City will provide cleaning and inspection services, chemical treatment services, and pipe replacement services through tendered contracts. The use of tendered contracts is anticipated to lower costs and improve quality.

5) Clearly Understandable Limits of Responsibility – A program based on the location of a sewer lateral defect relative to the property line is a simple one to understand and results in claims that are more easily defended.

6) Expanded Scope – To be a sustainable program the City must inspect and/or repair approximately 1,525 sewer lateral-private portions per year. With the proposed changes to the Sewer and Drain Bylaw R79-172 (as amended), the City is able to proactively seek out, identify, and repair defective Sewer Lateral-Public Portions. For instance, under the proposed new By-law approximately 380 Sewer Lateral– Private Portion will be repaired or replaced under the City’s annual road reconstruction and sewer mainline replacement programs.

A conflict associated with the proposed program exists with regard to property owners on the Sewer Lateral Tree Root program. Under the existing program the City reimburses for tree roots located on either the Sewer Lateral-Public Portion or the Sewer Lateral-Private Portion. Under the proposed program, property owners with roots in the Sewer Lateral-Private Portion will not be eligible for reimbursement. Moreover, a small number of existing property owners will become ineligible for financial assistance through the program change. In practical terms, it is anticipated that the numbers of property owners that will be negatively impacted by the program change will be small since roots entering a Sewer Lateral-Private Portion typically extends to the adjacent Sewer Lateral-Public Portion. To protect existing property owners stranded by the change, a grandfather clause is recommended that grants the City the right to extend services to these property owners through a two-year transition period. The proposed program is targeted to come into effect on May 30, 2005; the grandfather clause would therefore extend to May 30, 2007.

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The proposed program will not address the repair or costs associated with consequential damages resulting from problems with sewer laterals. Property owners seeking compensation for consequential damages allegedly resulting from problems with sewer laterals will continue to be processed thorough the City’s Risk Management Services. FINANCIAL/STAFFING/LEGAL IMPLICATIONS: Financial Implications Excluding staff costs, the 2003 Sewer Lateral Repair program and the Sewer Lateral Tree Root program cost the City $1.34 million. Of the approximately 990 sewer laterals that were addressed through these programs, 178 or under 20% received a permanent repair such as a pipe spot repair, pipe replacement, or pipe lining. The majority of the 990 sewer laterals are simply cleaned; a reoccurring operation and maintenance expense. Under the proposed new program the total cost of delivery (excluding staff costs) will be $2.30 million and approximately 1,180 sewer laterals will be treated each calendar year. Of those, it is estimated that 428 or 36% will receive a permanent repair. Therefore, under the proposed new program the City will be progressively reducing its ongoing sewer lateral operation and maintenance costs (cleaning costs) and will be completing more permanent pipe repairs at a lower unit cost per repair.

Staffing Implications Under the current sewer lateral programs, repair work is completed by independent contractors hired by property owners. City staff provide field inspection and administrative services and issue reimbursements upon the completion of the work. Under the proposed new program, the sewer lateral operation and maintenance and repair work will be completed by contractors under contract with the City. City staff will continue to provide field inspection and administrative services. No additions or reductions in staff will be required to administer the new program. With the simplicity offered by the new program, a portion of the time now spent administering and defending the current program will be re-directed towards the administration of the sewer lateral cleaning/CCTV service contract. It is this contract that will allow the City to become the one point of contact for our property owners and allow staff to respond more proactively to sewer lateral problems. Legal Implications Currently, under the Sewer and Drain By-law, the property owner is responsible for maintaining, repairing, and replacing the entire sewer lateral. In this regard, all options presented in this Report have legal implications since they are all based on the City assuming maintenance, repair, and replacement responsibility for assets that the City has not previously assumed responsibility for (i.e. the Sewer Lateral-Public Portion). As previously noted in this Report, the Joint Management option recommended in this Report will require the amendment of the City’s Sewer and Drain By-law and the preparation of a “service contract” to be signed prior to the City performing any sewer lateral inspection and cleaning services.

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In addition, any amendments to the Sewer and Drain By-law will need to clearly state that the City’s assumption of maintenance, repair, and replacement responsibility does not extend to sewer laterals that are part of a special sewer service agreement (i.e. where a property owner does not have a municipal sewer adjacent to its property and has been permitted by the City to connect to the nearest municipal sewer). Currently, property owners with such special sewer service agreements are responsible for the maintenance, repair, and replacement of the entire length of the sewer lateral constructed and connected to the nearest municipal sewer. The introduction of the “Sewer Lateral Management Policy” will not change this responsibility.

POLICIES AFFECTING PROPOSAL: As a result of the recommendations contained in this Report, the Sewer and Drain By-law R79-172, as amended, will need to be further amended to implement the new “Sewer Lateral Management Policy.” In addition, the City’s current “Sewer Lateral Tree Root Policy” will need to be repealed.

CONSULTATION WITH RELEVANT DEPARTMENTS/AGENCIES: Input was received from the following Departments: Corporate Services (Finance, Risk Management, and Legal Services) and Corporate Communications.

CITY STRATEGIC COMMITMENT: Fiscal Accountability: The existing program is without a well-defined mandate and is difficult to manage. A new program, that is simple to understand and communicate to property owners, will allow the existing complement of City staff to expand the breadth of services currently being provided. By implementing the proposed new program the City will utilize contracted field services which typically results in lower unit costs and greater value for the dollar. Innovation: Information received from the public through daily operations, a recent telephone survey and open houses clearly identified a desire to alter the current method of service delivery. The proposed change moves the City towards providing the level of service being sought by the public. From comments received, the two preferred options (Options 1 and 2) were selected primarily because they shift the responsibility for maintenance and repair to the City (who has an expertise in this area). Opportunities also arise to use innovative technologies, such as lateral relining from the sewer main, that are not available (in practical terms) to individual property owners. Sustainability: Based on the expected cost efficiencies of the new program, the City can affect 1,525 laterals annually. Based on this number, the City will have the capacity to service every lateral in the City on an 80-year life cycle to perpetuity. This expansion of service is expected to immediately reduce the City’s ongoing sewer lateral operation and

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maintenance costs and, with the expanded number of permanent Sewer Lateral-Public Portion repairs, eventually reduce the frequency of sewer lateral problems. Service Delivery: The existing sewer lateral programs isolate staff from the process of identifying drain problems and formulating cost-effective solutions. This lack of input was identified as a program deficiency during a recent telephone survey. Through that survey, it was revealed that the public find the City staff administering the program helpful and knowledgeable but found the process onerous, unfair, and one that did not provide the “one point of contact” they expect when a City service is disrupted. The proposed new sewer lateral program directly addresses these criticisms by allowing the City to become the first point of contact and to take a lead role in selecting the most appropriate technologies to restore services.

APPENDIX A - TOE02203a

THE CITY OF HAMILTON PUBLIC WORKS DEPARTMENT

WATER AND WASTEWATER DIVISION WATER DISTRIBUTION AND WASTEWATER COLLECTION SECTION

POLICIES AND PROCEDURES

POLICY NO: SUBJECT: SEWER LATERAL MANAGEMENT POLICY ELIGIBILITY:

PROCEDURE:

SEWER LATERAL-PUBLIC PORTION DEFINITION

A Sewer Lateral-Public Portion refers to the drain pipe extending from a property line to the main sewer, typically located below the municipal road allowance. The Sewer Lateral-Public Portion may be used to convey either storm water, sanitary sewage, or a combination of the two. Figure 1 outlining the location of the Sewer Lateral-Public Portion is attached to this policy for reference.

SEWER LATERAL-PRIVATE PORTION DEFINITION

A Sewer Lateral-Private Portion refers to the drain pipe extending from a building on private property to the Sewer Lateral-Public Portion. The Sewer Lateral-Private Portion may be used to convey either storm water, sanitary sewage, or a combination of the two. Figure 1 outlining the location of the Sewer Lateral-Private Portion is attached to this policy for reference.

SEWER LATERAL MAINTENANCE RESPONSIBILITY ASSUMED BY THE CITY

The City will assume the maintenance responsibility for the storm and sanitary or the combined Sewer Lateral-Public Portion. The City will coordinate all activities and will assume all costs associated with the following activities:

• the removal of tree roots from the Sewer Lateral-Public Portion. • the application of City approved chemical treatments to prevent

tree root infiltration. • the repair, rehabilitation, or replacement of the Sewer Lateral-

Public Portion that is determined, to the satisfaction of the General Manager, Public Works (or designate), to be structurally defective or operationally substandard.

• the replacement of the Sewer Lateral-Public Portion as part of any City Road Reconstruction and/or Sewer Main Line Replacement Program if, to the satisfaction of the General Manager, Public Works (or designate), such replacement is technically practical and fiscally responsible.

MAINTENANCE RESPONSIBILITIES NOT ASSUMED BY THE CITY

The City assumes no responsibility for any defects located within the Sewer Lateral-Public Portion that are deemed by the General Manager, Public Works (or designate) to be a result of negligence by the adjacent property owner. Defects not covered under the maintenance program include, but are not limited to, pipe blockage or damage resulting from the discharge of materials not intended for sewer disposal and pipe blockage or damage resulting from nearby construction. The City assumes no responsibility for any maintenance, repair, or replacement of the Sewer Lateral-Private Portion regardless of the cause of blockage or failure.

In cases where a defect on the Sewer Lateral-Public Portion extends onto the Sewer Lateral-Private Portion the City may coordinate a repair with the property owner with the costs for such repairs being shared between the City and the property owner. The apportioning of costs will be based on the linear extent of damage on the public and private portions of the sewer lateral. Soft and hard surfaces located on public property (such as driveways, lawns, and walkways) damaged during repair will be restored to original condition using equal or equivalent materials. Property owners that incur direct costs (equipment rental costs and/or contractor costs, for example) to clean, investigate, or repair the sewer lateral are not eligible for reimbursement under this program. The City assumes no responsibility for any portion of a sewer lateral which has been connected to a City sewer under a Special Service Agreement established between a property owner and the City. In these cases, the property owner of the property which receives the benefit from such sewer lateral shall remain fully responsible for the entire sewer lateral until such time as the sewer lateral is connected to the City sewer abutting the property.

PROCEDURE FOR SEWER SERVICES – PROPERTY OWNER INITIATED

During or following the occurrence of a loss of sewer service the property owner shall call (905) 546-CITY and schedule a sewer cleaning and inspection. Prior to any work commencing at the property the property owner will be required to sign a service contract with the City (issued by the service crew prior to commencement of any work). By signing the contract the property owner agrees to permit the City to enter onto the private property, if necessary, and for the property owner to incur the costs associated with the cleaning and inspection if the defect is located on the Sewer Lateral-Private Portion or if the defect is deemed to be the result of negligence. The contract will define the flat fee for the sewer cleaning and inspection services. The contract will further define the limits of liability of the service crew entering onto private property to perform this work. Following the conclusion of the sewer lateral cleaning and inspection the City will advise the property owner of the cause of the defect and its location along the sewer lateral. If the defect is located on the Sewer Lateral-Public Portion the City will assume all costs for the cleaning and inspection services and will coordinate and pay for all subsequent maintenance and repair work on the Sewer Lateral-Public Portion. If following the conclusion of the sewer lateral cleaning and inspection the City determines that the defect was either on the Sewer Lateral-Private Portion or if the defect was the result of negligence by the property owner, the City will advise the property owner accordingly and will provide a copy of the sewer lateral inspection record. The property owner will be issued an invoice for the services rendered based on the costs defined in the service contract. If following the conclusion of the sewer lateral cleaning and inspection the service crew determines that defects exist along the entire sewer lateral, the service provider will advise the property owner accordingly

and will provide a copy of the sewer lateral inspection record. The property owner will be issued an invoice for a portion of the service cost calculated based on the proportionate extent of damage on the Sewer Lateral-Private Portion and Sewer Lateral-Public Portion. For example, if damage to the Private Portion extends for 10 meters and damage to the Public Portion extended for 15 meters, the cost to the homeowner will be 10/25 or 40% of the cost defined in the service contract. The City will coordinate and pay for all subsequent maintenance and repair work on the Sewer Lateral-Public Portion. The property owner will coordinate and pay for all subsequent maintenance and repair work required on the Sewer Lateral-Private Portion.

PROCEDURE FOR SEWER SERVICES – CITY INITIATED

The City may initiate a sewer lateral cleaning and/or inspection of the Sewer Lateral-Public Portion as part of an ongoing sewer lateral maintenance program. Where such investigation leads to the initiation of a sewer lateral repair, rehabilitation, or replacement the City will contact the affected property owner and will provide details on the work being performed, what impact the work will have on the property owner, and when the work is scheduled to take place. When the City initiates a sewer lateral cleaning or inspection and the work requires entry onto the property owner’s property, the City will contact the property owner to advise him/her of the purpose of the work and will schedule an appointment. Property owners will be required to sign a service contract following the aforementioned “PROCEDURE FOR SEWER SERVICES – PROPERTY OWNER INITIATED” to authorize the work and to document acceptance of the terms of the service crew’s limits of liability.

PROPERTY DAMAGE The sewer lateral management policy does not address basement flooding or other damage resulting from a damaged or blocked Sewer Lateral-Public Portion or a Sewer Lateral-Private Portion. All persons wishing to submit claims for property damage allegedly resulting from a sewer service interruption must be directed to submit such claims to the City’s Risk Management Services for consideration.

POLICY IN EFFECT This policy is in effect as of 12:00 a.m., Monday, May 30, 2005. This policy supersedes the City’s Sewer Lateral Repair and the Sewer Lateral Tree Root programs. All property owners being on record as a participant in the City’s Sewer Lateral Tree Root program as of May 27 2005 will be allowed to continue under the terms of that program for two years ending May 29, 2007.

DIRECTOR APPROVAL: ________________________________________________________ APPROVED DATE: ____________________________________________________________ REVISED DATE: _______________________________________________________________