R2005-50 AUTHORIZING AGREEMENT - Laserfiche WebLink

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• • ATTACHMENT "A" Report on the Cost of an In-house Sewer Televising Inspection Program basis. This work should be factored into a unit price per foot to obtain a better comparison to the estimated City cost. When emergency inspections are factored into the private company's work the average unit price per foot over the last two years is $1.34. The cost difference between ' contracted versus in-house services is primarily attributed to the private company's operations and the availability of backup resources to offset lost time from equipment and vehicle downtime � m r work in a ear's time. that enables them do o e y In addition to the straightforward determination of estimating the City's cost to perform this work, consideration must be given to the long term impacts associated with adding 3 full-time employees and the costs to own, house and maintain the equipment and vehicles. The funding for this program would be proposed to come from the Sewer Fund as it is now for the contracted services. Currently the fund revenues are sufficient to provide for the budget allocation made for the inspection program. Circumstances do exist that could result in a major loss of revenue from sewer user fees. This would greatly impact City sewer maintenance programs. If this occurs,the City would be faced with a situation of having to make major cut backs in its sewer maintenance programs, increase other revenue sources to compensate for this loss or possibly having to lay off 3 employees. In summary, City staff is recommending that the City not pursue the implementation of an in- house sewer inspection program at this time. The basic reason for this recommendation is that it is not cost effective. It is expected that this matter should be periodically evaluated to determine if, at some time in the future, it becomes cost effective for the City to undertake this program in- house. 3 of 3