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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 $4,500.00 worth of repairs in the street. • There are no limits on how many times it can be used. • Line thawing is not covered in the program. If the line was to need repairs due to the freezing of the line, then that would be covered. • There will be mailings twice a year by the program administrators to educate the homeowners on their responsibility pertaining to the maintenance and repair of water and sewer services. The mailings would be approved by the utility before they would be sent to our customers. • The program utilizes local contractors who are familiar with local code and permit requirements. • The claims and billing process is handled 100% by the program administrators. • Elk River Municipal Utilities would receive reports on the number of claims to include the amount spent on the repairs. ■M M ■ fir$ Page 1 of 2 Reliable Public Power Provider M P0WEAE0 8Y NATURE P O W E R E D T o S E R V E • 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 M PONER10 1V W14. Page 2 of 2 Irm� -VR Power Provider P O W E R E D T O S E R V E M 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. >i �f• AAA. �n��� Ya= 0 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? L" 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.