HomeMy WebLinkAbout9.a. NLC Service Line Warranty
EXECUTIVE SUMMARY
City Council Regular Meeting: February 5, 2019
AGENDA ITEM: NLC Service Line Warranty Program AGENDA SECTION:
New Business
PREPARED BY: Logan Martin, City Administrator
Brian Erickson, PW Director / City
Engineer
AGENDA NO. 9.a.
ATTACHMENTS: NLC Program Highlights APPROVED BY: LJM
RECOMMENDED ACTION: Receive presentation from NLC Service Line Warranty staff
and consider next steps regarding the opportunity.
BACKGROUND
The National League of Cities (NLC) has endorsed a utility line warranty program administered by Utility
Service Partners Inc. City staff have received information and background on this opportunity and
concluded that it would be valuable for the City Council to learn more about the program and to consider
the opportunity.
As you are aware, homeowners are responsible for maintenance and repairs on utility service lines (water
and sewer) from the main line to the home. Occasionally repairs are required on these service lines due to
tree root intrusion, debris clogging, etc., and this warranty program would essentially act as insurance to
the homeowner to defray repair costs. There is no cost to the City for this program, and Utility Service
Partners is responsible for all marketing and implementation of the program. There is an opportunity for
the City to receive a small stipend from each policy sold, and staff would recommend that the City forgo
that opportunity and instead allow residents to pay a reduced rate for the insurance policy.
A staff representative of the program will be on hand to provide a detailed presentation of the program,
and some brief highlights of the program are covered on the attached document. The Utility Commission
has discussed this program and concluded that it would be a valuable opportunity to explore further.
RECOMMENDATION
Staff recommends that the City Council receive the presentation regarding the NLC Service Line Warranty
program and provide direction on next steps regarding the opportunity.
n The only utility line warranty program endorsed by the National League of Cities (NLC)
n Endorsed by multiple state leagues
n Over 500 municipalities and utilities participating nationwide
n No cost to or liability for the city to participate
n Ongoing revenue stream for city
n Educates homeowners about their lateral line responsibilities
n Utility Service Partners (USP) handles all marketing and management of the program
n 24/7/365 bilingual customer service
n All repairs performed to city code by local, licensed contractors
n Reduces calls from residents to City Hall for lateral water and sewer line issues
n Homeowner billed by NLC Service Line Warranty Program
n Provides residents an affordable solution that covers cost of repairs to water and
sewer lines for which the homeowner is responsible
n No public funds are used in the marketing, distribution or administration of the
NLC Service Line Warranty Program
n The NLC Service Line Warranty Program must be supported by the city into which
it is being introduced before any warranty offer letters are mailed to homeowners
in the community
NLC Service Line Warranty Program Highlights
PARTICIPATING CITIES (SAMPLE OF OVER 500)
Ottawa, KS
Elsmere, KY
Baltimore, MD
Beverly Hills, MI
Phoenix, AZ
Tucson, AZ
San Diego, CA
Ft. Lauderdale, FL
Independence, MO
Las Vegas, NV
Dayton, OH
Tulsa, OK NLC Service Line Warranty Program
NLC SERVICE LINE WARRANTY PROGRAM BENEFITS
n Accredited Better Business Bureau member
with A+ rating for nearly a decade
n 2013 Western Pennsylvania Better
Business Bureau Torch Award winner for
Marketplace Ethics
CITY
Provides non-tax revenue stream without
any investment
Reduces calls to City/Public Works when a
homeowner’s line fails
Contractors undergo rigorous vetting
process to ensure quality service
Reduces costs associated with sending
Public Works to residents’ homes to assess
lateral line issues
Keeps money in the local economy by using
contractors in the metro area
Contractors must be current with insurance
and required licenses
RESIDENTS
Affordable utility line repair solution for
families on a budget
Educates homeowners about their service
line responsibilities
Prevents aggravation of having to find a
reliable, reputable plumber
Peace of mind – with one toll-free call a
reputable plumber is dispatched
Keeps money in the homeowner’s pocket;
without warranty, repairs cost from
hundreds to thousands of dollars
No service fees or deductibles and no
paperwork or forms to complete
ACCOLADES & ACCOMPLISHMENTS
NLC Service Line Warranty ProgramLearn more about the program at www.utilitysp.net or call 1-866-974-4801.
n The only utility line warranty program endorsed by the National League of Cities
n More than 97% of all submitted claims are approved
n A customer satisfaction rating of 98%
n 9 of 10 customers surveyed have recommended the program to friends, family
and neighbors
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