Workshop Item Jon Haukaas, Director of Public Works
Title
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Review of Marking Agreement With Utility Service Partners, Inc. - Service Line Warranty Program
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Background
Staff had been approached by Utility Service Partners, Inc. to request endorsement by the City of Blaine to market their Service Line Warranty program to our residents. This item was discussed at the May 20 and June 10, 2019 City Council Workshops. The City Council did approve the agreement at its July 8, 2019 meeting.
The Service Line Warranty program is a third party insurance program which provides homeowners with repair protection for leaking, clogged, or broken private water and sewer lines between the city main to the home. The company provides 24/7/365 bilingual customer support and all repairs meet city code requirements and are completed by local, licensed contractors. The program also educates homeowners about their service line responsibilities as homeowners are often unaware that these lines are the responsibility of the property owners and can be expensive to repair. Additional program options are available for wells, septic systems, and in home plumbing.
The Marketing Agreement allows Utility Service Partners to use the City’s name and logo on marketing materials that are sent to residential property owners in the city. The agreement limits the number of mail campaigns to twice per year - one introductory mailing and one reminder mailing for each, for a total of four mailings per year.
A total of 1571 policies have been initiated for Blaine residents: 703 water service line, 705 sewer service line, and 163 interior plumbing and drainage line policies. The Marketing agreement states that the City would receive a royalty from each policy sold. From July 2019 through April of 2021 the City has received $16,047.56 in royalty payments. These funds are tracked separately and have not been spent on anything so far. General workshop discussion was for the payment to be used toward the initial ‘non-destructive’ cleaning of a sewer backup regardless of cause.
Staff Recommendation
This item is being brought forward for informational purposes as this is approximately the two year mark of this program. Staff is looking for general direction on whether to continue the program and Marketing Agreement.