TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
George Gabriel, Senior Management Analyst
SUBJECT:Title
Consider Endorsing the National League of Cities Service Line Warranty Program and Marketing Agreement to Offer Emergency Repair/Replacement Plans to Address Private Sewer and Water Infrastructure (City Manager Moe).
a) DISCUSS AND PROVIDE DIRECTION
b) ADOPT RESOLUTION NO. 19-0098
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: a) receive a presentation on the National League of Cities (NLC) Service Line Warranty Program that offers emergency repair/replacement plans for private sewer and water infrastructure; and b) discuss and provide direction on endorsing the NLC Service Line Warranty Program. Should the City Council direct staff to endorse the program, the City Council may adopt Resolution No. 19-0098 authorizing the City Manager to enter into an initial three-year marketing agreement with Utility Service Partners, Inc. with additional one-year renewal options.
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FISCAL IMPLICATIONS:
There are no fiscal implications associated with endorsing the NLC Service Line Warranty Program. However, should the City Council opt to enter into a royalty agreement, staff estimates it may generate $10,000 - $20,000 in revenue over a three-year period.
BACKGROUND:
At the February 5, 2019, City Council meeting, Mayor Pro Tem Montgomery, supported by Mayor Hersman, requested that a service line warranty program be agendized for discussion at a future City Council meeting for residents who wish to purchase water, sewer and plumbing insurance. It should be noted that this request was submitted prior to the City's new three-step agenda process requiring a majority of Council to approve future agenda items.
Formed in 2003, Service Line Warranties of America Inc., a subsidiary of Utility Service Partners (USP), Inc., offers an ins...
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