5.6. ERMUSR 10-21-2014Elk River
Municipal Utilities
UTILITIES COMMISSION MEETING
TO:
FROM:
Elk River Municipal Utilities Commission
Eric Volk — Water Superintendent
John Dietz — Chair
Daryl Thompson — Vice Chair
Al Nadeau — Trustee
MEETING DATE:
AGENDA ITEM NUMBER:
October 21, 2014
5.6
SUBJECT:
National League of Cities (NLC) Service Line Warranty Program
BACKGROUND:
Elk River Municipal Utilities was contacted by the Regional Area Manager for the NLC Service
Line Warranty Program. Troy and I met with him on October 2nd to go over the coverages and
costs of the plan.
DISCUSSION:
These are the highlights of the program that we discussed during our meeting on October 2nd
• The cost to the customer is $5.75 /month for water and $7.75 /month for sewer.
• The utility would receive a share of the revenues equaling $.50 per line per month.
• They are not affiliated with the League of Minnesota Cities.
• The program is 10 years old, and they are currently working with 4 other cities in
Minnesota.
• There is no deductible.
• The program covers $4,000.00 worth of repairs in the yard and $4,500.00 worth of
repairs in the street.
• There are no limits on how many times it can be used.
• Line thawing is not covered in the program. If the line was to need repairs due to the
freezing of the line, then that would be covered.
• There will be mailings twice a year by the program administrators to educate the
homeowners on their responsibility pertaining to the maintenance and repair of water and
sewer services. The mailings would be approved by the utility before they would be sent
to our customers.
• The program utilizes local contractors who are familiar with local code and permit
requirements.
• The claims and billing process is handled 100% by the program administrators.
• Elk River Municipal Utilities would receive reports on the number of claims to include
the amount spent on the repairs.
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• According the National League of Cities (NLC) Service Line Warranty Program, 99.8%
of all claims are handled within the coverage limitations.
ACTION REQUESTED:
No action is requested.
ATTACHMENT:
• National League of Cities (NLC) Service Line Warranty Program Brochure
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NATIONAL
LEAGUE
of CITIES Q"
National League of Cities
Service Line Warranty Program
Building Peace of Mind, One Community at a Time
Educating
homeowners
about their service
line responsibilities
while providing an
affordable solution
for repairs.
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Overview
Offered at no cost to the municipality,
the National League of Cities (NLC)
Service Line Warranty Program,
administered by Utility Service Partners,
Inc. (USP), is an important tool for
educating homeowners about their
responsibility for the lateral service lines
on their property. With more than 200
municipal and utility relationships, the
NLC Service Line Warranty Program
also offers a solution, with a proven
track record of providing affordable,
dependable service line repair protection,
giving homeowners and municipal
leaders peace of mind.
Offered through USP's consumer brand,
Service Line Warranties of America,
the program offers affordable coverage
for buried, external water and sewer
lines from the utility connection point to
the home (including the portion buried
under concrete slabs). Backed by a
history of reputable service, Service Line
Warranties of America was the 2013
Winner of the Western Pennsylvania
Better Business Bureau (BBB) Torch
Award for Marketplace Ethics.
99
LL It gives me peace
of mind as an elected
official that this program
can be offered to the
citizens. It gives citizens
peace of mind because
they have a program with
local, reliable contractors
from where they can get
the service. The city has
peace of mind because
it gets our local economy
going as well as revenue
and income to help
others, ii
Felicia A. Moore,
City Council Member
Atlanta, GA
Frequently Asked Questions
■ What will the warranty program
cost the city and homeowners?
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There is absolutely no cost to the city for
this warranty program and homeowner
_4' participation is completely voluntary. For
a small monthly fee, homeowners can
protect the buried utility service lines on
their property. The NLC Service Line Warranty Program provides generous
coverage with no deductibles, service fees or annual /lifetime limits.
■ How does the program work?
The NLC Service Line Warranty Program
handles all aspects of the program including
marketing, billing, customer service, contractor
management and completion of all repairs to
local code.
■ What happens when a homeowner experiences a service line
break or leak on their property?
One call to the NLC Service Line Warranty Program's toll -free number and a
local, licensed contractor will be dispatched to quickly make repairs. There
is no paper -work to complete; just one call for claims processing — available
24/7, 365 days a year. All contractors are local to the community served,
which keeps dollars in your local economy.
■ Why is the warranty program
important?
The American Society of Civil Engineers
i labeled the nation's infrastructure a D+ in
2013 and it's no surprise! Many people
believe that water and sewer lines will last
hundreds of years without failing, but the
truth is, there are many reasons other than
life expectancy of the pipes that can contribute to infrastructure failure —
such as tree -root intrusion, rust and weather.
With the NLC Service Line Warranty Program, normal wear and tear, ground
shifting, root - intrusion, and much more are covered.
100
Quick Facts
The program is offered at no cost to municipalities and
utilities. Join us today and enjoy these program features:
■ The only utility line warranty program endorsed
by National League of Cities
■ Educates homeowners about their service line
responsibilities
• Service from licensed, local contractors keeps dollars
in the local economy
• Low claim denial rates — more than 97% of all claims
are typically approved
• Customer satisfaction rates over 95%
• Timely repairs that help conserve water and reduce
ground contamination
About
Utility Service Partners, Inc
Utility
Service
Parin rs,inc.
USP's family of companies has been
providing utility service line warranty
products since 1998. USP has an A+
Better Business Bureau Rating and
enjoys a customer satisfaction rating
of over 95 %.
USP's consumer
brand, Service
Line Warranties of
America, was the
2013 Winner of the
Western Pennsylvania
BBB Torch Award for
Marketplace Ethics.
National League of Cities
NATIONAL
LEAGUE
OfCITIES Q®
The National League of Cities is
dedicated to helping city leaders build
better communities, and serves as
a resource and advocate for 19,000
cities, towns and villages, representing
more than 218 million Americans.
Make a Difference in Your Community
To learn more about the NLC Service Line Warranty Program,
visit NLC's website at www.nlc.org or contact 1- 866 - 974 -4801.