Description: This item involves (i) a brief staff presentation regarding participation in the National League of Cities (NLC) Service Line Program, which is administered by Utility Service Partners (USP), Inc. d/b/a Service Line Warranties of America (SLWA) and (ii) Council consideration of a resolution making certain findings and authorizing certain matters necessary to participate in the National League of Cities (NLC) Service Line Program.

Background: Utility Service Partners (USP), Inc. d/b/a Service Line Warranties of America (SLWA) is a privately held company which administers the National League of Cities (NLC) Service Line Program which is offered nationally on a voluntary basis to help cities assist their residents by providing an affordable solution for sewer and water line repair or replacement as well as an educational aspect to homeowners to notify them of their responsibility for the aforementioned utility lines on the property of the homeowners. Nationally, there are over 270 municipalities that have partnered with SLWA.

The NLC Service Line Program provided by USP d/b/a SLWA is being instituted by the City to allow owners of property in the Savannah to enroll in a home warranty in connection with the City’s partnership with the program. If a property owner chooses to participate, the repairs and replacements of these utility lines are funded solely by USP d/b/a SLWA. The City has selected the NLC Service Line program Administered by USP d/b/a SLWA to provide administration for the program.

The benefits to the property owner include:

• Only property owners who choose to participate in the program will pay anything and they will only pay those monthly or annual amounts defined by the program and localized so that all eligible homeowners pay the same price.
• In today’s economic environment, many homeowners only have a few hundred dollars available in savings. This program offers up to $8,500 worth of coverage on the lateral line itself, per occurrence, at a reasonable rate.
• Claims service is available 24/7/365. Homeowners may make as many calls as needed to file claims with no limits on occurrences.
• The property owner can choose to pay monthly or annually. They may also elect to have recurring automatic payments processed.
• Homeowners can gain additional information and access to their account at any time through SLWA’s website.

The benefits to the City include:

• The City may initiate this program at any time and at no expense to the City. All financial matters surrounding this program, including marketing and servicing of claims, are paid by USP d/b/a SLWA.
• The City may elect to receive a royalty per warranty per month enrolled – thereby receiving funds to assist with local infrastructure efforts – while committing virtually no staff time to administer the program.
• While offered as an NLC Enterprise program, NLC membership is not required to initiate or continue the Service Line Program. The program uses local contractors in order to ensure that local code is met in cases of repair and in order to keep those funds spent on repairs within the community.

The proposed resolution authorizes the City to adopt and initiate the NLC Service Line Program to provide homeowners with an affordable warranty solution as offered by USP d/b/a SLWA. It also authorizes miscellaneous related actions and makes certain findings and determinations required by law.

The City can withdraw from the program at any time by passing a resolution rescinding the authorization as defined in the Marketing License Agreement.

Attached to the resolution as Exhibit A is a Marketing License Agreement. This is for informational purposes and does not require action by this Mayor and Aldermen of the City of Savannah at this time.

Recommended Action: After discussion and questions by the Mayor and Aldermen of the City of Savannah, if the Mayor and Aldermen of the City of Savannah wishes to become a participating member in this program, it should adopt the proposed resolution. The resolution requires only a simple majority vote. If the resolution is approved, the Clerk should have the Mayor sign two copies of the Marketing License Agreement and these will then be forwarded to USP d/b/a SLWA for execution, along with a copy of the proof of publication of the notice of public hearing. Following execution, one signed copy will be returned to the City.

Approval