WATER DEMAND COMMITTEE
ITEM:		ACTION ITEM
3.	CONSIDER SUPPORT FOR WATER LINE INSURANCE PROGRAM BY UTILITY SERVICE PARTNERS
Meeting Date:			July 23, 2015	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: The National League of Cities (NLC) Service Line Warranty Program, administered by Utility Service Partners, Inc. (USP), is an affordable home protection solution that helps homeowners save thousands of dollars on the high cost of repairing broken or leaking water or sewer lines. USP offers a service line warranty program that has been embraced by more than 225 cities across the nation – including the City of San Diego, Las Vegas, Phoenix, Tucson and Mesa. This program is offered at no cost to the District and is endorsed by the National League of Cities. The Service Line Warranty Program has an A+ rating by the Better Business Bureau. Additional information can be found on the USP website at http://www.utilitysp.net/index.html.

The NLC Service Line Warranty Program covers the consumer-owned portion of the primary water or sewer service line from the foundation of the home (including portions of the line which may be buried or embedded in a concrete slab beneath the home) to the public utility connection. It provides coverage for repair to the clogged, broken or leaking water and sewer lines serving the residential home when the flow of the line is interrupted due to normal wear and tear. Additional coverage allowances are provided if public street or sidewalk cutting is required in order to make the repair. All permits and line locations, if needed, are obtained by the plumbing professional at no cost to the homeowner prior to making the repair. All repairs conform to the city’s plumbing and excavating codes.

Earlier this year, staff met with USP representatives to review the program. The low cost warranty covers repairs for a low monthly fee, with no deductibles or service fees. The work is performed by licensed, local plumbers who will call the customer within one hour of filing a claim. The repair is performed professionally and quickly, typically within 24 hours. USP provides a personally staffed 24/7 repair hotline for residents, 365 days a year.

Program highlights include:

· No cost for the Monterey Peninsula Water Management District to participate

· No liability to the Monterey Peninsula Water Management District

· Promotes awareness of homeowner lateral line responsibilities

· Affordable, convenient, and effective solution for homeowners

· No annual/lifetime limits on the number of repairs

· No hidden service fees or deductibles

· No long term contracts (month to month)

· 24/7/365 customer service

· Service from trusted, local contractors

· All repairs performed to local code and permit fees collected

· Revenue shared with the Monterey Peninsula Water Management District.

RECOMMENDATION: The Committee should discuss the USP program and how it might benefit the District and provide direction to staff.

EXHIBITS

3-A Example Co-Branded Marketing Letter, FAQs, and Case Study

3-B Overview Presentation

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