07-25-11 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: .Tuly 25, 2011 Requested By: David Mick Department: Public Works ort: Resolution: XX Ordinance: Exhibits: July 11, 2011 Staff Report Exhibits: Interlocal A�reement with NCTCOG Appropriation Source of Funds: N/A Account Numbe N/A Amount Budgetecl Amount Requeste�: Budgeted item: N/A EXI11b1tS: TTCP�AarP__Pmentc l �.1 lwith/withnnt rPVPnnP t0 Clty� SUMMARY & RECOMMENDATION At the July 11, 2011 City Council meeting, United Services Partners, Inc. presented Council with the details of a warranty program that is designed to insure residential property owners against the cost of sewer and water service line repairs from the publicly-maintained portion of the line to the residence. Some of the program highlights follow: • This would be an o tp ional 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. • The agreement between the City and USP would allow USP to use the city logo with their introductory letters to the residents. Council directed staff to follow up with information regarding the use of the City logo by other entities and payment schedules for the plumbing contractors used by USP. The City Attorney will describe any legal considerations associated with the use of the city logo by a private entity at this meeting. Staff also contacted a couple of contractors who have done wark for the warranty company. The feedback from them was positive as was the feedback from the cities staff contacted. USP states that plumbing contractors are paid within 30 days. Should Council desire to move forward, staff has attached the agreement that did not include the City revenue component, which will result in a 12% decrease in premiums to the participating residents.