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money on these sewer projects. Mr. Olcott concurred with Mr. Askari that all 48 those who benefitted should pay and that all costs incurred (including interest, attorney fees, land acquisition, etc.) should be included in the. reimbursement agreement. Ramesh Padmanabhan, Los Altos, commented that he owned a lot on Elena and wondered when the reimbursement agreement became effective. Staff responded that the situation on Elena was different in that the Town was putting in this sewer line. Allan Epstein, 23828 Ravensbury, believed that construction costs should include all fees and that there should be a clear understanding of the policy before anyone started on such a sewer project. He also believed there should be some incentive given to encourage people to hook up to sewer. Mr. Epstein commented that he hoped the homes in the County on Ravensbury would be able to hook up to the Town's sewer if they were annexed to the Town. The City Attorney referred to the section which stated that reimbursement agreements would be submitted only after the final costs of construction had been determined. She noted that letters of intent could be filed but they would not be enforceable as they were unable to. bind a future Council to such a document. The City Attorney also commented on the 'costs to be included in the reimbursement agreements. She stated that there was no way for the Town to control land acquisition and attorney costs involved in such projects and she did not agree with including them in the agreements. Regarding land acquisitions she noted that one option would be for the Town to have the appraisals done. The City Attorney further noted that the cost of construction index could be included which would be fairer than interest. Council discussed the draft policy before them and the comments made. Casey, Cheng and Fenwick agreed with including attorney fees in the reimburseable costs. O'Malley did not support this. Fenwick and O'Malley did not believe upstream properties should be included but Cheng did not agree stating that this did not encourage residents to hook on to sewer. The majority of those present did agree that the reimburseable costs should include appraisal costs (as done by the Town), cost of construction index and attorney costs not to exceed 5% of the proj ect. PASSED BY CONSENSUS: To direct staff to bring back a revised policy statement including the comments made at this meeting to a future Council meeting for final approval. 6. NEW BUSINESS 7. REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND COUNCILMEMBERS ON OUTSIDE AGENCIES April 19, 2001 Regular City Council Meeting 6