07-11-11 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requeste July 11, 2011 Requested By: David Mick Department: Public Works Report: Resolution: Ordinance: Exhibits: Standard Interlocal Agreement with NCTC Exhibits: Standard USP Agreement without revenue) Exhibits: Standard 11SP Agreement w*th revennP to C ity) Appropriation Source of Funds: N/A Account Numbe N/A Amount Budgeted /A Amount Requeste Budgeted Item: N/A SUMMARY & RECOMMENDATION Typically a homeowner is responsible for maintaining at least a portion of their water service and sanitary sewer lines. In the City of LaPorte, the home owner is responsible for maintaining the water service line from the house side of the meter box to the residence, and the sanitary sewer lateral from the tap at the sewer main to the residence excepting any portion of the lateral that is located within the public right -of -way area. Repairs to these service lines can be expensive and often range from $500 - $3500. These repairs usually are not covered by a homeowner's insurance policy Unless the need for the repair was created by a specific insurable incident such as a natural disaster or a fire. This being the case, there are likely some residents within the city for whom a water /sanitary service warranty program would be an attractive option. In January, 2011, the North Central Texas Council of Governments ( NCTCOG) Board voted to adopt a shared services agreement with United Services Partners, Inc. (USP). The agreement provides the foundation for a structured agreement between USP and any other interested city, similar to how the City has Utilized H -GAC contracts for goods and services. Information on the program is outlined in the attached documents. Some of the highlights are as follows: • This would be an optional program for residents (only). • The contract is between the property owner and the warranty company (USP). • Monthly fees $4.50 for water, $5.50 for sanitary sewer. The contract duration may be one year or month to month as desired by the homeowner. • No deductible. $4,000 cap per incident. No cap to the number of incidents or claims. • USP Utilizes local, private contractors. • 24/7 service. • A contract with USP can be structured with or without a revenue return to the City. If selected, the revenue- sharing option would typically include a 12% return to the city. If not selected, the resident's premium is reduced by 12 %. • USP typically sees 25% - 35% participation in their warranty program when their program is introduced through the municipality.