HomeMy WebLinkAbout6.a. Service Line Insurance Program
EXECUTIVE SUMMARY
Utility Commission Meeting: October 16, 2017
AGENDA ITEM: Service Line Insurance Program AGENDA SECTION:
New Business
PREPARED BY: Brian Erickson, P.E., Director of Public
Works/City Engineer AGENDA NO. 6.a.
ATTACHMENTS: None APPROVED BY: BE
RECOMMENDED ACTION: Discussion
BACKGROUND
On July 25, 2017, City Administrator Martin and Public Works Director Erickson met with a
representative of Utility Service Partners, Inc, Deryck Freudeman to discuss their service line warranty
program. This program provides a voluntary program for home owners to insure their water and sanitary
sewer service laterals for a fee. The property owner can cancel their enrollment at any time.
On occasion, a service lateral may experience a leak or blockage and it is not uncommon for a repair of
this nature to cost a several thousand dollars. Due to the unplanned and unexpected nature of this repair,
it can be a difficult repair for many owners to finance without a major impact to their budget. For a
monthly fee, this program provides a way for homeowners to have their services repaired in the event of
leak or blockage. Should a homeowner sign up for this program, the program administrator will
coordinate a local vendor to provide the repairs. There is a maximum amount for this coverage. Finally,
there is the potential for a rebate which depends upon the number of residents that sign up for the
coverage.
There is some city involvement as Utility Service Partners has requested to mail letters to the home owners
that are on city water to inform them of this program. These letters would reference Rosemount and have
the city logo on the letter. There are currently 13 communities in Minnesota that are using this service.
Should the Utility Commission be interested in additional information, staff can reach out to these
communities.
SUMMARY
The Utility Commission is asked to discuss and review the possibility of instituting this program. If
additional information is needed staff will research and return. Should the Commission feel this is a
program of which the Council should be informed it will be brought to a future work session.