UPDATE: Questions linger over O’Fallon, Mo.’s sewer lateral repair program
After much debate, O’Fallon city officials have clarified an ordinance estabishing a new public insurance program that covers repairs to homeowners’ sewer lateral lines.
The city cannot, by law, reimburse residents for repairs done before Aug. 27 (the day the bill was passed), but will cover repairs since that date.
Councilmen Jeff Schwentker, John Haman Jr., Dan Haney and Rick Lucas thought the city should only be responsible for repairs made starting Jan. 1, 2010. The other four councilmen, Mark Perkins, Bill Gardner, Pierce Conley and Bob Howell voted in favor of “forward funding” the program to pay for repairs that qualify under the new program starting Aug. 27.
The 4-4 tie was broken by Mayor Bill Hennessy, who voted in favor of reimbursing residents effective last month instead of waiting until Jan. 1.
It’s still not clear whether the city will use money from its 2009 or 2010 budget.
BLOGPOST FROM AUG. 30:
O’Fallon officials Thursday passed an ordinance establishing a new public insurance program to cover repairs to homeowners’ sewer lateral lines.
But many logistical questions remain in an ongoing debate over coverage for homeowners who have encountered line damage since the proposal was approved in the April 7 election.
In that election, voters gave the city the OK to impose an annual fee to protect homeowners from having to pay big bills for repairing lateral lines between homes and sewer mains.
On top of an annual $20 fee, the program requires homeowners who file damage claims to pay a $300 “application fee” which would be reimbursed if the repairs qualify for coverage. For repairs that don’t qualify, application fees would be refunded minus the cost of scoping and videotaping lateral lines.
Since the April election, the city already has received 11 claims, but those homeowners may be out of luck because the city won’t have the cash to fund the program until it collects 2009 property taxes and fees in December.
Now city officials are wrangling over whether to “forward fund” the program by borrowing money from other revenue sources or wait until after this year’s taxes are collected. City Attorney Kevin O’Keefe said it’s questionable whether the city can legally pay claims made before the program officially takes effect.
The city also hasn’t decided whether homeowners will be allowed to have their own repair estimates done or if they’ll be required to use a company under contract with the city. The council will address some of these questions at an upcoming meeting.
Do you think the city’s insurance program will be effective? Too much red tape? Should the city pay for those 11 or so homeowners who thought they were covered? Should the city “forward fund” the program or wait until the money is available?
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What is it? An insurance program or a repair program? It was called insurance on the ballot but called a repair program in the headline. If it is a repair program I want a re-vote. Thats just a bailout plan. I voted for insurance not a bailout. If it insurance then it needs to be insurance like every other insurance in the world.
What is it Joel? Does not matter. It will be whatever Perkins wants. Jeff you saw what he did to you Thursday.
GitNBy - It’s a program that pays for repair of a broken water/sewer lateral. So it’s insurance to repair the line. As for the open questions; after watching the last meeting it seems the only open question is if it will be forward funded starting from the last meeting. Haney ran circles around O’Keefe and got him to admit that paying for repairs done before the program was inacted by ordinace would be illegal.
I.T.I - You can say it’s what ever Perkins wants but on this one Haney has pulled the council kicking and screaming. Remember, he got the ceiling reduced from $50 to $30. Then back in April it seemed that most all of the Coucnil wanted to forward fund the program and he has been able to at least cut that in half (from 8 months to 4, at most). He also got the refundable application fee. So Perkins may bully staff and get his way but Haney’s one issue away from a clean sweep on this one.
Man, I don’t know how these guys can stand fighting over something like this for hours, as they have done on like 6 seperate occasions now (I think 2 before the election and 4 after). I’m bored of it after spending a few minutes writing about it.
Here in Ballwin we have the same program and I personally have had to use it. It was a God sent to not have to spend money other than the video service. (to prove it was a covered problem) It was “forward funded” or the contractor was well off enough to wait until the fiscal year provided the funds…either way it is a winner for home owners.
This program has been highly successful in most other communities. It makes one wonder why O’Fallon’s elected goofballs didn’t study other programs enough to know not to start it before it was funded?
OK Answers. Those who have called and said they have broken lines can not be serviced immediately if it insurance. It is either pre-existing or they have to wait a period of time before making a claim. I agree this is a great idea and well worth the cost. But if you have people lined up before the program starts then thats another form of welfare.
GitnBy - Per the last meeting the 11 poeple that were already “lined up” will not get their money back. The only remaining question is whether people that have cases between 8/28 and 12/31 will be covered.
Jom - I asked around about that and the cities were split pretty evenly between those that forward funded it and those that did not. Of course this is hear say so maybe Joel can do a more formal survey and update the article.
Haney may be the one pushing for completion of this. But it will not be in any form other than what Perkins or Debi Hennessey want it to be. That’s just the way things are done in the Tower now.
Does not matter what day they make it, the history of O’Fallon government starting new business is not good. The stadium, the rec center, the trash company, main street project, annexations, the water and sewer company….not a list of success. Mayor Hennessey and Councilman Perkins were all part of these O’Fallon government business projects. Now they both are in charge. If we fail to learn from the mistakes of history we are bound to repeat them.
I say it is a mandatory repair program. An insurance program sends the idea that is is an optional program, where this most certainly is not.