03-19-2019 - AGENDA ITEM 11 REQUEST FROM MAYOR LLOYD JOHNSON REQUESTING THE CITY COUNCIL'S CONSIDERATION TO CANCEL WATER SERVICE LINE COVERAGE WITH SERVICE LINE WARRANTIES OF AMEAGENDA ITEM NO. 11
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: March 19, 2019
TO: Mayor and City Council
FROM: Nikole Bresciani
Acting City Manager
SUBJECT: REQUEST FROM MAYOR LLOYD JOHNSON REQUESTING THE CITY COUNCIL'S
CONSIDERATION TO CANCEL WATER SERVICE LINE COVERAGE WITH
SERVICE LINE WARRANTIES OF AMERICA, INC.
RECOMMENDATION:
It is recommended that the City Council discuss and provide staff direction.
BACKGROUND:
The City Council approved the partnership with the National League of Cities Service Line Warranty Program
(SLWA) at the August 15, 2017 City Council Meeting (Attachment No. 1).
DISCUSSION:
Per the City Council Standing Rules, Mayor Lloyd Johnson is requesting City Council consensus to have staff
contact SLWA to discontinue the City's partnership in providing water service line warranty coverage.
The Partnership with SLWA was launched in 2017, and the initial marketing that was sent to residents had
minimal reference to the City's partnership and community members questioned the validity of the program and
many people thought it was a fraudulent program. Residents contacted the City within days for the first mailers
being received, as residents were confused and some addresses receiving material were not even located in the
City of West Covina. Subsequently, staff worked with SLWA to improve marketing, but complaints have
continued when mailings are received.
SLWA is an independent company offering service line warranty coverage to over 400 cities located in 31
states and the City receives no compensation or added benefit. The partnership was entered into to provide a
benefit to residents who own their homes and is endorsed by the National League of Cities.
Attachments
Attachment No. 1 - August 15, 2017 City Council Staff Report No. 23
NATIONALU
LEAGUE
NLCOF CITIES
Over 400 PARTNERS IN 35 STATES
jf
iaS i
te f
A
xi
i'ut
aw"
• Illinois
• Indiana
• Kansas;
• Kentucl
A%'.'ity
-
i t
M& South Carolina
South Dakota
t# s
4,1%
u Utah
rt"�jc' lipi it i n jza
4 skb Washington
Joirse0
Y
Ne't e)��o
fill
Al.
Ne'' da..."J'
INN I*
x
ME
NATIONAL
LEAGUE
NLC_OF CITIES
° City ofCulver City, C/\
° City of Cathedral City, C/\
= City of Daly Qh/ C/\
° City of Laguna Beach, CA
" City of Lemon Grove. CA
° City of San Bruno. CA
° City of San Diego, CA
° Town ofYountvi||e. CA
CNATIONAL
LEAGUE
_OPCITIES
C B9TBOMOTaOOTMCH
COMMENTS I Aµ-
"The program has already paid out over $1 million in repairs and replacements for our
homeowners'lateral service lines. My constituents are happy that we have provided
this option for city homeowners. We use the revenue associated with the program to
assist lower income homeowners with repairs to their service lines. I am sure your City
will be pleased with the NLC Service Line Program."
Felicia Moore
City Councilwoman
Atlanta, GA
"This program has been available to Clarksburg's residents for nearly
two years, and it's a real winner. Resident satisfaction is high and it's a
lot easier to tell citizens about this great service rather than explain why
they are on the hook for costly repairs."
"The Service Line Protection Program helps Phoenix residents and
the city government. Revenue from the program goes to core city
services like police, fire, parks, libraries and senior centers. The
warranties give residents an affordable option for repairs to their
sewer and water lines. "
sky
James C. Hunt
past NLC President
former Council Member
Clarksburg, WV
NLCNATIONAL
LEAGUE
OF CITIES
HO - MEOWNER TESTIMONIALS
"After my recent home fire, it was Very
comforting to contact SLW and be told
that my line Would be immediately
repaired. The fast service was truly
appreciated, and / highly recommend your
service - I have already recommended
SLW to all my family and friends.
James H., Charleston, WV
Utility
Service
NATIONAL
LEAGUE
NLCOF CITIES
•
---- — ------ - — — - - - - -- ------------- ----- -
�3(2ar E e i -',- i C,
Cri C:----ristrtaa Da-,7 M-17
p
I in,) rciv r ise cmdL rr riv t-ibl T c-ould
or a shower or
or even i-L,7 La -id,,,.
Tt .,ut to v ouc, a cl(Dcjqcd
ront yard. Thanks c
vr Ll, T redd warranty �,,ild did
iy ,)r Ln'2(,',00 Eupairl lc i�r)k
yn,il The w—Lanty compaTly had good
--jsLomenice and th,-, )r)call pl-ui',lbjiiq
mpa----iy to At t icy sir tc <9a the work,
p--larya P-d-mr,ing P7us, V,1A.S AMAZING! limy
a ,,,c)nd(--r t ij " !oh, --,rici were very
rSlDc2 (-�c--ful �f my property (aiiO Tfly anxle--v
inr)jL the Fitiir;t Ion) . Thank yoij So 7
Fe �ia Fc)- E� lw�lys looking out to
c-1 us!
Ci r -ly
tc)mco,,7ner, AL I Fitta, GA
L--- ---
NLCNATIONAL
LEAGUE
OF CITIES
_ .... . . � \� � � .
BECAUSEan d \./�^� \
unforeseen repair
M(Pense could be
:hard un a budget.
...... . . . . .
NATIONAL
LEAGUE
NON`,'
ofernes
x
DATE: August 15, 2017
AGENDA
ITEM NO. 23
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
TO: Mayor and City Council
FROM: Chris Freeland
City Manager
SUBJECT: REQUEST BY MAYOR WARSHAW FOR CITY COUNCIL TO
CONSIDER BECOMING A PARTNER WITH THE NATIONAL LEAGUE
OF CITIES SERVICE LINE WARRANTY PROGRAM
RECOMMENDATION:
It is recommended that the City Council consider this report and provide direction to staff to return
to Council with additional information about the process for becoming a partner if desired.
BACKGROUND:
Mayor Corey Warshaw requested that the City Council consider becoming a partner with the
National League of Cities Service Line Warranty Program.
DISCUSSION:
Formed in 1996, Service Line Warranties of America Inc., a subsidiary of Utility Service Partners
(USP), hie., offers an insurance policy to residential property owners that covers the cost to repair
or replace their utility service lines, primarily to single family houses and some multi -family
dwellings (the "Program"). The Program was endorsed by the National League of Cities (NLC)
in 2010 and through this partnership, the Program has been implemented in more than 400 cities
located in 31 states. The Program began serving California cities in 2012. Cities have the ability
to sign a partnership agreement with USP to offer the low cost warranty program to residents.
California cities that are current partners in the Program include:
• Cathedral City • Duarte • San Bruno
• Claremont (7/2017) • Laguna Beach • San Carlos
• Culver City • Lemon Grove • San Diego
• Daly City • Perris (7/2017) 9 Yountville
NLC Utility Service Partners Program
Page 2 of 2 — August 15, 2017
The warranties covered under the program fall under three categories: 1) Water Line Warranty, 2)
Sewer Line Warranty, and 3) In -Home Plumbing Warranty.
FISCAL IMPACT:
Will be determined upon Council direction.
Prepared by:
Laura Mimuch
Deputy City Manager
NATIONAL Service Line Warranty Program Overview
LEAGUE
15,2017
NLCOF: CITIES August' A.,
C-S STRONG T"IUM
LCNATIONAL
LLAGUE
OF CITIES
WHY CHOOSE- UTILITY
SERVICE PARTNER;E'?
EXPO I ENICE
REzF,",,J"',4'\T10N
A� U
PARTNERSHIP
BBB To Award for 'This award underscores one of the primary reasons the
Marketplace Ethics National League of Cities selected USP as a partner. The
organization's exemplary record of customer service and
BBB transparency is what has driven the success of this
partnership over the years."
Clarence Anthony
Executive Director
National League of Cities
I II I I I I I I I I I 111 �� 1 i II I I I I+III IIIII I I° d d' +9a �I l£ y {rd4ir V '� {
£ I Illllldl�a,jdull� 11�£! I IIIIIIIIgIIIIIIq�; NJalyvu r�� a "+ �!S �' �+ la{h� � us
qj
l It r 11 lu III II.y. y a uh lu+� Ir >ir �,�
Ivi III II 1111I II �I RE'vILL S
I I {11rll 111{ily lull 1, iltli {I�t � Il I Ir I� �4 r a t>5
IIII IIIIII ial p ill 11 r r I GtV t of pt Ifp} �n s st f
{llllll 11iI I � uI I I 1 IIII=I u'w£�aaa�d �r !ra{ { iasdYrsa rr ,Jl
1{11I Im III{{i WaterC collectionay
°nq� y,na s+qf
IIIIiI r '7 sl{,41„ l III VI y nay�tdli sY yll 'y �1�> is I "I
I{ I II Illd�' 'IIII Ills IIII Ili - Illld�isl+ y �{liI dialjll{*�It1i{
II [ IIII ewer' ons,Lr�y�i ldt�F II y.TeC ad!" �8�1 �>�IlY ai a{r{{{Y;'ql Jillld ly� {
tII #II III IIIII i'yr t }�E y+idz.'{1, dt 'n{arsh'l yal is y
III1 1 IIIIIIIIIIIIII11,
+'��I�'�r��tC
IIItIII ,.{}:s{ 7 CT ,�.�s ���%t,'y+.l�ii 134! 11 c9!1£dsi�'alplat lzd4 {II d}i uda1l 1r�
s41p�Y�y1t
7F 1 I ly IIIII I �erl'J" a �+, la 1i1 it Ylh ty. u� a 3{
III {il 1 I y� II - s i 1!''vi,�h^i1z
{ta Ir I'I'III�III �li���It� �°Ii�rlcip�l T1'4��r�"i31�� +,�1a1�
1 I I I �I �I 3i s9
II I y11$1}"'�sil4'si] ter i{9aq{�� h £
'.1 s Itll,lll III,, , ,,, � � I I, I a I I',al IIII I i h Ilh IIII II Illlil I II;M'rlu,l s�'r,i;';<s.{�it?i+,la { �alrct,],r,lwl.,9j;+h iv a+l, raas;,
NATIONAL
LEAGUE
N OF CITIES
-..... 1-...
CHALLENGES FOR HOMEOWNERS
LATERAL LINES ARE SUBJECTED TO THE SAME
ELEMENTS AS PUBLIC LINES
• ground shifting, fluctuating temperatures, tree root penetration,
corrosion and more
OUT OF SIGHT, OUT OF MIND
• water and sewer lines located outside, usually underground
FAILED LINES WASTE THOUSANDS OF GALLONS OF
WATER
• and present an environmental hazard
COMMON HOMEOWNER MISCONCEPTIONS
• the City is responsible for maintenance of the water and sewer
lines on their property
• repairs are covered by their homeowner's policy
Utility
Serwce
SG. Parmers,me
LCNATIONAL
LEAGUE
OF CITIES
1 in 5 howeholds
are putting off repaIrs
because they don't have the money
1psos Public Mairs
M
Agei—lri;�
LCNATIONAL
LEAGUE
OF CITIES
SOLUTION FOR MUNICIPALITIES AND THE
HOMEOWNERS THEY SERVE
PROGRAM H11GHU('31:�--iT6
Over 400 cities participating
Saved more than 140,000 homi
over $90 million in service line r
Customer satisfaction rating ha:
for more than 10 years
9 of every 10 customers survey
recommended the NLC Serv:lce
Program to friends, family and r
'16Utility
-