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for those residents, and could prove beneficial for all if there was ever a repeat of <br />that type of situation. <br />Mr. Culver provided his initial understanding of the coverage if the city were to <br />endorse this service in Roseville, with a resident able to pay the premium and get <br />coverage within 3 working days. However, Mr. Culver admitted he saw some flaws <br />in the program related to coverage and premiums, with no minimum contract; but <br />if missing one month's premium, you no longer had coverage. Mr. Culver advised <br />that the representative stated they paid 97% of their claims, and the vast majority <br />of the 3% of claims not paid were due to those customers not being current with <br />their premiums. Mr. Culver noted there was apparently an option for annual <br />payment of premiums. However, Mr. Culver clarified for the benefit of the public <br />that the City is not currently endorsing this option, and only researching it as a <br />potentially interesting option that may be available. <br />Acting Chair Wozniak opined that he found it an interesting proposal that he had <br />not been aware of before. However, on the surface, Member Wozniak further <br />opined that it didn't seem like a good business plan for this firm, and admitted that <br />he had a number of questions to ask of the representative when they attend the <br />PWETC meeting. Member Wozniak noted that this coverage didn't apparently <br />provide for lateral problems that may affect service on an intermittent basis and <br />only paid if a failure occurred. <br />Mr. Culver noted that, apparently if you have a backup or clog consisting of roots, <br />the firm would pay for cleaning out those roots, but clarified the firm was not <br />offering coverage for preventative maintenance (e.g. lining services), which may <br />cause repeat problems in the future. While not being proactive about lining <br />services, Mr. Culver advised that the only time the firm would make a physical <br />repair was if a structural issue was found with the line. Since most residents aren't <br />aware of the condition of their service lines, Mr. Culver opined that, like any other <br />insurance program, the intent was to get as many subscribers as possible for the <br />offered coverage. <br />While recognizing that PW ETC Member Cihacek has been strongly advocating that <br />the city change its policy and require clean -outs at the property line for sanitary <br />sewer lines, from the city's perspective, Mr. Culver said that the city would most <br />likely not agree or staff recommend that this be done. Mr. Culver advised that on <br />average the typical clean-out cost is $1,000; and that staff would most likely <br />recommend and advocate that ownership be limited to service lines for sanitary <br />sewer lines, even if requiring clean outs due to long-term clean-out scenarios for <br />most properties in Roseville. <br />To clarify, Acting Chair Wozniak stated that staff wouldn't recommend that the <br />city change its current approach with the lateral owned by the property owner up to <br />the line, even if clean-out is required, just due to the time lag. <br />Page 7 of 13 <br />