5.1. ERMUSR 08-09-20115.1
Elk River~~
Municipal Utilities
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission David Berg -Water Superintendent
John Dietz, Chair
Daryl Thompson, Vice Chair
AI Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Au ust 9th, 2011 5.1
SUBJECT:
Homeowner Water Service Insurance Pro ram
The issue of water service damage has been a constant concern for both the utility
and homeowners. The average cost of repair for a single family homeowner's service
ranges anywhere from $900 to $4,000. This can be a hard sum of money to pay for out
of pocket. There have been occasions where customers have said that they did not have
the money to fix the water leak at the time of detection and instead let the leak go for
over two years. The hesitation in repair puts the water system, the customer, and their
neighbors in danger of cross contamination, structural damage, waterline bacteria and
sediment intrusion.
We propose that the commission consider the implementation of a Homeowner
Water Service Coverage Program. Several other water suppliers currently hold a
program for their customers, in the hope of protecting themselves and their customers
from major water issues. ERMU comes across approximately one to two dozen water
service issues each yeaz. By charging the customers who opt for coverage about $1.00
per month, we could help keep costs down and protect our water. The charge would be
per water service. An extra $1.00 per unit for townhomes or shazed commercial
properties with a single house meter would be issued (example: one building with eight
condo units that has one house meter would be issued an $8.00 insurance fee). This
larger fee would help fund the lazger water line, which would parallel with the higher cost
if repair would ever be required for the multi-unit dwelling.
Attached for reference: Rochester Public Utilities Water Service Insurance Policy
{ Service AssuredSM
~~ / WATER SERVICE REPAIR COVERAGE
~a~"°n- Terms & Conditions Agreement
rra plck9r, rMe dets~tr
Rochester Public Utilities (RPU) will provide Service AssuredsM WATER SERVICE REPAIR COVERAGE (Coverage)
to the customer (you) under the following terms:
Availability. Coverage is available to ItPU residential water customers living in single-family homes and single-
owner duplexes. [Excludes individual townhomes, twinhomes, aparhnents, mobile homes, and condominiums.
Coverage may not be applicable to all single-family homes and single-owner duplexes. In raze instances of atypical
service configurations, Coverage is not available. Pre-existing conditions (e.g. leaks, improper installation, etc.)
render you ineligible for Coverage. You may repair the condition, at your cost, and then become eligible.]
Coverage. CALL RPU FOR ANY CLAIMS/REPAIRS...RPU WII.L CALL A CONTRACTOR IF NEEDED! A
diagram of the typical residential water service is shown on the reverse side. In the absence of Coverage, you are
responsible for all service line repairs from the (1)corporation stop to the (4)angle stop. RPU owns the (5)meter and
the (6hneter tails, so they aze and will continue to be repaired by RPU at no cost to you. You own the ('nfull flow
gate valve and aze responsible for repair costs to it. With Coverage, RPU will make all repairs from the
(1)corporation stop to the (meter tails, and will perform landscaping restoration work up to your property line
(this includes the street, public sidewalk, curb, boulevazd, and the driveway approach). You aze responsible for the
landscaping restoration work from your property line to your home. RPU's landscaping restoration work on your
property is limited to backfilling the trench.l2PU is not responsible for incidental or consequential damage resulting
from a service line break. Check with your homeowner's insurance for this type of coverage.
Monthly Fee. A monthly fee of $1.99 plus sales tax is included on your bill and collected with your other utility
chazges, due and payable upon presentation. Failure to pay by the due date may be cause for RPU to drop you from
*he program.ltPU reserves the right to modify this price and any such modification will be indicated on your utility
11.
Terms. This Agreement is effective on the date it is received by RPUanil covers all repair costs offailures and/or
freeze-ups of your service line after this date. This Agreement is subject to the terms contained herein and will
continue month-to-month until either you or RPU cancels this Agreement by notifying the other pazty in writing.
There is no cancellation chazge. Cancellation of this Agreement shall be without prejudice to the rights or remedies
of either you or RPU under this Agreement.
RPU's Rigbt of Inspection. RPU reserves the right to inspect your water service should you inform 1tPU that a
problem or damage has occurred. Your preauses shall be made available to RPU for such an inspection.
Customer's Responsibilities. You shall cooperate with RPU and provide ItPU with all information requested.
Default. RPU may cancel this Agreement immediately if you violate any provision of this Agreement. RPU is
entitled to recover its costs and expenses, including reasonable attorney's fees, if legal action is necessazy.ltPU
reserves the right to refuse Coverage to any customer for any non-discriminatory reason.
Miscellaneous. The laws of the State of Minnesota shall govern this Agreement. This Agreement is the final
expression and a complete and exclusive statement of the temps of the Agreement, superseding all prior Agreements
and understandings, whether written or oral. No dglay or omission by either party in exercising anyright under this
Agreement shall operate as a waiver of that or any other right. If any provision of this Agreement is invalid, such
provision shall be omitted, but the remaining provisions of this Agreement shall be given full force and effect.
Disclaimers. This program does NOT cover service replacements within the street right-of-way done in
con~nctiq~with street repair/replacement projects. -
Service AssuredsM
WATER SERVICE REPAIR COVERAGE
Terms & Conditions Agreement
TYPICAL RESIDENTIAL
WATER. SERVICE
RMKTSAWA F3202P6