2013-03-25 Regular Meeting of La Porte City Council minutes

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Councilmember Zemanek moved to accept the bid proposal for Wave Pool Mechanical Building Renovation and open the Wave Pool as scheduled. Councilmember Clausen seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Zemanek, Kaminski, Engelken, Mosteit, Clausen, Leonard and Moser Nays: None Absent: Councilmember Martin Mayor Rigby left the table at 6:50 p.m. and returned at 6:51 p.m. 7. DISCUSSION OR OTHER ACTION (a) Discussion or other action regarding Utility Infrastructure Report — D. Mick Public Works Director Dave Mick Public Works presented a report regarding Utility Infrastructure and recommended $2 million a year for capital improvements. He stated one way to fund this is a $1.50 fee per 1000 gallons. Councilmember Zemanek commented a citizen owning a $150,000.00 home would see a 12.7 percent increase, which amounts to a tax that is not deductible. Councilmember Engelken questioned the current capacity to issue debt. City Manager Corby Alexander responded around $7 million. Councilmember Engelken commented debt has not been issued in a while; so, there is capacity, and a $9.00 a month fee is not the way to go. Councilmember Moser questioned if the increase in fund balance was $4,600,000. City Manager Corby Alexander responded yes. Councilmember Mosteit questioned Public Works Director Dave Mick when staff rehabilitates the lift stations on L Street, will they consider the potential for Harris County to expand L Street in the future. Mr. Mick responded yes. Council directed staff to look at other options to maintain the system without adding a fee to fund it. (b) Discussion or other action regarding Street Report — D. Mick Public Works Director Dave Mick and provided a report regarding the condition of streets in the City of La Porte. HDR Project Manager, John Peterson, was present. Mr. Mick presented Council with the following four options for funding street repairs. Councilmember Mosteit left the table at 7:30 p.m. and returned at 7:33 p.m. Option 1: Maintain current funding levels equal to the street tax revenue of approximately $870,000.00 per year. Option 2: Consider funding for replacing concrete 1/60 of the city streets assuming a 60-year life cycle. This requires an increase in street maintenance funding of approximately $1,870,000 per year over existing levels. With nearly two-thirds of the existing concrete streets maintained by the City now over 40 years old, the City will not keep up with all streets reaching the projected 60-year service life over the next 20 years. Option 3: Consider funding for replacing concrete streets at an average age of concrete pavement equal to 55 years old and re-evaluate after a follow-up comprehensive inspection in 4 years. This requires an increase in street maintenance funding of approximately $3,400,000 per year over existing levels. This option assumes 100 percent removal and replacement of concrete streets and 100 percent City funded over the next 20 years. Staff is not recommending this option. Option 4: Consider funding an amount midway between Option 2 and Option 3. This requires an increase in street maintenance funding of approximately $2,635,000 per year over existing levels. Page 4 of 6 March 25, 2013, City Council Meeting Minutes