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AGENDA ITEM – 1A <br /> <br />MEMORANDUM <br /> <br />DATE: February 20, 2018 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> David Perrault, City Administrator <br /> <br />FROM : Sue Polka, Public Works Director/ City Engineer <br /> <br />SUBJECT: National League of Cities Service Line Warranty Program <br /> <br />Budgeted Amount: Actual Amount: Funding Source: <br /> $ $ $ <br /> Background/Discussion <br /> <br />Deryck Freudeman from Utility Service Partners, Inc. will be in attendance to provide <br />information on the NLC Service Line Warranty Program (Attachment A). <br /> <br />The warranty program is a voluntary program for homeowners which provides repair protection <br />for leaking, clogged or broken water and sewer lines from the point of utility connection to the <br />home exterior. Coverage includes education, $8,500 coverage per incident, no deductibles, <br />24/7/365 availability, and repairs made by a licensed local contractor. <br /> <br />If the City were to partner with Utility Services for this program, a marketing agreement would <br />be required (Attachment B). The City has the option to collect royalties from the program (50 <br />cents per plan) or waive the royalty option for which the charge to the resident would be lowered <br />by 50 cents per plan. The City Attorney has reviewed the agreement and some language would <br />need to be added prior to execution. <br /> <br />A summary of costs is as follows: <br /> <br />Coverage Cost without royalty Cost with royalty <br />Water $5.25/mo $5.75/mo <br />Sewer $7.25/mo $7.75/mo <br />In Home Plumbing $9.49/mo $9.99/mo <br /> <br />Local cities that also offer this program include Columbia Heights, Edina, Falcon Heights, <br />Richfield, St. Louis Park, Mounds View, and New Brighton. <br /> <br />Page 1 of 1