Terry - here are my thoughts on this:

Whether we mandate in-basement or meter box tie ins or leave it as an option, we need to inform the home owner that they are responsible for any service line leak from the curb stop shutoff valve to their home.  We may want to consider a street to home distance (if >40 feet then meter pit is mandatory).
If the owner has an in basement meter, and the WPCA determines a leak, then the following is required:
The owner is officially informed in writing that a leak has been detected in their service line and that they have 60 days to repair their service line of the leak
The owner will communicate to the WPCA that the repair is scheduled and before any back fill is placed after the repair is made that the repair is inspected and approved by the WPCA contractor (GU in this case).
 If 60 days have passed and no repair has been scheduled or performed, then the WPCA at the owners expense will install a meter pit at the curb stop and the owner will now be responsible for all meter water use - including the leak.


I guess this is as reasonble as we can make it!