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03-12-18-R
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03-12-18-R
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Page 1 of 2 <br />CONSENT ITEM – 5D <br /> <br />MEMORANDUM <br /> <br />DATE: March 12, 2018 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> Dave 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 /> Council Should Consider <br /> <br />Authorizing the Mayor to execute the Marketing Agreement (Attachment A) with Utility <br />Service Partners Private Label, Inc. to allow the company to offer and market their utility <br />service line warranty products to residential property owners in the City of Arden Hills. <br /> <br />Background/Discussion <br /> <br />At the February 20th Work Session, a representative from Utility Services was present to <br />discuss the National League of Cities Service Line Warranty program. The warranty program <br />is a voluntary program for homeowners which provides repair protection for leaking, clogged <br />or broken water and sewer lines from the point of utility connection to the home exterior. <br />Coverage includes education, $8,500 coverage per incident, no deductibles, 24/7/365 <br />availability, and repairs made by a licensed local contractor. <br /> <br />In order for the City to partner with Utility Services for this program, a marketing agreement <br />would be required (Attachment A). The City has the option to collect royalties from the <br />program (50 cents per plan) or waive the royalty option for which the charge to the resident <br />would be lowered by 50 cents per plan. The attached agreement does not include any royalties <br />to the City. The City Attorney has reviewed the agreement. <br /> <br />A summary of costs is as follows: <br /> <br />Coverage Cost to Resident <br />Water $5.25/mo <br />Sewer $7.25/mo <br />In Home Plumbing $9.49/mo
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