Need new water line - what should it cost?

The water line connecting our house to the city supply has to be replaced - it's galvanized and we have a leak 12' down - somewhere under the garage.
In Detroit, the plumbing company says the new line (100 feet) is to be installed more than 48" deep - new copper. Crack through the basement floor (which is less than 48" below ground level) - add a new water meter (the city installed a new one only 6 months ago). They will abandon the old line - what will that mean in this case? cap it off at the city end? other? Will they likely hot tap into the city line for the new connection - should be some feet away from the old tap? We need a city permit - can I anticipate the inspection will protect our interests as well, or will it just be an inspection of the tap?
I'm in California, my brother's at the property in Detroit. I'll have a chance to talk with the plumbing company this morning, so they'll answer some of these. I'd appreciate any feedback you can offer. They are quoting about $4000. I'm also wondering how they are going to dig through the 4+ feet of frozen ground at this time?
I'll be at work today and Brian is anxious to have the job done - wants to go get permit and new meter from the city later today. I can't access the newsgroup from work, but I can get to my mailbox at Yahoo. So if you have feedback, I wonder if you could post both to the group and me at snipped-for-privacy@yahoo.com - reply to all could accomplish that.
Thanks very much, Gail
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Typical installation

Best if capped at both ends, but not a big deal as it will propably get plugged with dirt in a short time. Distance does not matter.

The city is protecting it's own interests. The want to be sure the meter is in place so they can bill you for water and to be sure the tap is done properly.

Dig with a backhoe in most cases. It is done all the time. It may be easier (tus cheaper) in the spring but most people can't go months with no water.
If the plumber is reputable, you have no worries as this is a common job.
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With a back hoe at the far end, so they can tap the main. For the house end probably just an electric breaker (bosch brute) to open up a hole in the foundation.
Most people use direct boring these days, instead of digging trench all the way, much easier (and cheaper). They are able to get right to the small hole just punched out.
It was like $4800 in my case, when they did that 5 or 6 years ago.
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