Number
231183
Version
SUBSTITUTE 1
Reference
101142, 130307, 221970
Sponsor
ALD. STAMPER AND CHAMBERS
Title
Substitute resolution authorizing the Department of Public Works to negotiate an agreement for the City’s participation in the National League of Cities’ Service Line Warranty Program administered and managed by HomeServe, Inc.
Analysis
This resolution authorizes the Department of Public Works to negotiate an agreement with HomeServe, a division of Utility Service Partners, Inc., for the City to participate in the National League of Cities’ Service Line Warranty Program. This program is designed to provide residents of the city with the opportunity to obtain a warranty that will cover repairs to their water and sewer service lines for a monthly fee, with no deductibles or service fees. The program may also provide water loss insurance for the Milwaukee Water Works.
Body
Whereas, Most homeowner insurance policies will pay to repair the damage created by failed utility lines but they generally do not pay to repair the actual broken pipes or lines; and
Whereas, The National League of Cities launched a Service Line Warranty Program in November, 2010, created, administered and managed by Utility Service Partners, Inc. to benefit residents of participating cities by covering repairs to water and sewer service lines for a monthly fee with no deductibles or service fees; and
Whereas, The Service Line Warranty Program is now administered by HomeServe, a division of Utility Service Partners, Inc.; and
Whereas, The national program, modeled after existing programs in Oklahoma and West Virginia, retains local, professional plumbers to perform all service line repair work; and
Whereas, HomeServe administers the program and is responsible for all aspects of the program, including marketing, billing, customer service, and performing all repairs in accordance with local codes; and
Whereas, HomeServe pays for all marketing materials and program administration; and
Whereas, HomeServe has stated an intention to contribute $0.50 for every policy issued in Milwaukee to a Low-Income Assistance Fund to help offset the cost of participating in the program for qualified individuals; and
Whereas, The Low-Income Assistance fund will be retained and administered by HomeServe; and
Whereas, The external service line warranty covers the underground service line from the point of connection to the city main line to the point of entry to the home, with the monthly cost and total coverage to be determined through negotiation with HomeServe; and
Whereas, The Service Line Warranty Program may also provide lost water insurance to protect city residents from excess water bills caused by service leaks and to protect the Milwaukee Water Works from lost revenue; and
Whereas, The lost water insurance is funded by a charge on the each property owner’s quarterly municipal services bill; and
Whereas, Property owners may opt out of lost water insurance coverage; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Public Works is authorized to negotiate an agreement with HomeServe, Inc. for the purpose of establishing participation in the National League of Cities’ Service Line Warranty Program; and, be it
Further Resolved, That the Department of Public Works shall report the proposed terms of the Service Line Warranty Program to the Common Council within 60 days of the adoption of this resolution.
Requestor
Drafter
Kathleen Brengosz
11/27/2023
LRB 179572-2