HomeMy WebLinkAboutStudy Session Agenda Packet 09-25-2018MARANA TOWN COUNCIL
STUDY SESSION
NOTICE AND AGENDA
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, September 25, 2018, at or after 6:00 PM
Ed Honea, Mayor
Jon Post, Vice Mayor
David Bowen, Council Member
Patti Comerford, Council Member
Herb Kai, Council Member
John Officer, Council Member
Roxanne Ziegler, Council Member
Pursuant to A.R.S. § 38-431.02, notice is hereby given to the members of the Marana
Town Council and to the general public that the Town Council will hold a meeting open
to the public on September 25, 2018, at or after 6:00 PM located in the Council
Chambers of the Marana Municipal Complex, 11555 W. Civic Center Drive, Marana,
Arizona.
ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS
AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised
agenda items appear in italics.
The Council Chambers are wheelchair and handicapped accessible. Persons with a
disability may request a reasonable accommodation, such as a sign language interpreter,
by contacting the Town Clerk at (520) 382-1999. Requests should be made as early as
possible to arrange the accommodation.
This Notice and Agenda posted no later than Monday, September 24, 2018, 6:00 PM, at
the Marana Municipal Complex, 11555 W. Civic Center Drive, the Marana Operations
Center, 5100 W. Ina Road, and at www.maranaaz.gov under Agendas and Minutes.
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE
APPROVAL OF AGENDA
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DISCUSSION/DIRECTION/POSSIBLE ACTION
D1 Relating to Administration; discussion and direction regarding partnering with
Service Line Warranties of America to implement the National League of Cities
Service Line Warranty Program for all water and sewer customers within the
Town of Marana (Jane Fairall)
D2 Presentation: Resolution No. 2018-091: Relating to Utilities; authorizing the
creation of the Picture Rocks Water Treatment Campus capital project and the
Airline/Lambert Water Treatment Campus capital project; authorizing the
transfer of up to $2,000,000 in budgeted expenditure authority from the
Wastewater Treatment Plan capital project (WR011) line item in the fiscal
year 2018-2019 budget to the newly created capital projects; and authorizing the
application for a Clean Water State Revolving Fund loan from the Water
Infrastructure Finance Authority of Arizona to fund the construction of water
treatment works to remove perfluorinated compounds from Marana Water
Department potable water (John Kmiec)
EXECUTIVE SESSIONS
Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session,
which will not be open to the public, to discuss certain matters.
E1 Executive Session pursuant to A.R.S. §38-431.03 (A)(3), Council may ask for
discussion or consultation for legal advice with the Town Attorney
concerning any matter listed on this agenda.
FUTURE AGENDA ITEMS
Notwithstanding the mayor’s discretion regarding the items to be placed on the
agenda, if three or more Council members request that an item be placed on the
agenda, it must be placed on the agenda for the second regular Town Council
meeting after the date of the request, pursuant to Marana Town Code Section
2-4-2(B).
ADJOURNMENT
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Council-Study Session D1
Meeting Date:09/25/2018
To:Mayor and Council
From:Jane Fairall, Deputy Town Attorney
Date:September 25, 2018
Strategic Plan Focus Area:
Not Applicable
Subject:Relating to Administration; discussion and direction regarding partnering with
Service Line Warranties of America to implement the National League of Cities
Service Line Warranty Program for all water and sewer customers within the
Town of Marana (Jane Fairall)
Discussion:
Town staff was recently contacted by representatives from Utility Service Partners, the
administrator of the National League of Cities Service Line Warranty Program, about
the possibility of implementing the Program for water and sewer customers located
within the Town. This would include all Tucson Water, Pima County Water
Reclamation, and Marana Water customers within the town limits. The Program is a
warranty program for homeowners that provides repair protection for leaking, clogged
or broken water and sewer lines that the homeowner, rather than the corresponding
utility, is responsible for.
If the Town chooses to participate, the Town would enter into a marketing agreement
with Utility Service Partners which will allow Utility Service Partners to use the Town's
name and logo on letterhead, bills and marketing materials to be sent to residential
property owners within the Town from time to time, and in advertising, including on
the Utility Service Partners' website. Property owners would have the option
of purchasing the warranty protection for a monthly fee and on a month-to-month basis.
In return for the use of the Town's name and logo, the company will pay the Town a
license fee of 50 cents per month for each warranty product purchased and paid for by a
water or sewer utility customer.
Attached to this item are 1) the draft marketing agreement; 2) a PowerPoint presentation
from the National League of Cities (NLC) describing the Program; and 3) a Frequently
Asked Questions (FAQ) document from the NLC.
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Town staff seeks direction from the Council regarding whether to enter into the
marketing agreement with Utility Service Partners and implement this program in the
Town.
Financial Impact:
Fiscal
Year:
2019
Budgeted
Y/N:
N
Amount:The potential revenue from this agreement depends
on the residential participation in the program. The
Town would receive $.50 per product for each month
that the product was in force. Residents have 3
product choices. An estimate of potential revenue
from this agreement is $5,000-$15,000 annually.
Staff Recommendation:
Council's pleasure.
Suggested Motion:
Council's pleasure.
Attachments
Marketing Agreement
NLC PowerPoint
NLC FAQs
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MARKETING AGREEMENT
This MARKETING AGREEMENT ("Agreement") is entered into as of [___________,
20__] ("Effective Date"), by and between the Town of Marana, Arizona ("Town"), and Utility
Service Partners Private Label, Inc. d/b/a Service Line Warranties of America (“Company”),
herein collectively referred to singularly as "Party" and collectively as the "Parties".
RECITALS:
WHEREAS, sewer and water line laterals between the mainlines and the connection on
residential private property are owned by individual residential property owners residing in the
Town ("Residential Property Owner"); and
WHEREAS, Town desires to offer Residential Property Owners the opportunity, but not
the obligation, to purchase a service line warranty and other similar products set forth in Exhibit
A or as otherwise agreed in writing from time-to-time by the Parties (each, a “Product” and
collectively, the "Products"); and
WHEREAS, Company, a subsidiary of HomeServe USA Corp., is the administrator of
the National League of Cities Service Line Warranty Program and has agreed to make the
Products available to Residential Property Owners subject to the terms and conditions contained
herein; and
NOW, THEREFORE, in consideration of the foregoing recitals, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and with
the intent to be legally bound hereby, the Parties agree as follows:
1. Purpose. Town hereby grants to Company the right to offer and market the Products to
Residential Property Owners subject to the terms and conditions herein.
2. Grant of License. Town hereby grants to Company a non-exclusive license ("License") to
use Town's name and logo on letterhead, bills and marketing materials to be sent to Residential
Property Owners from time to time, and to be used in advertising (including on the Company’s
website), all at Company's sole cost and expense and subject to Town's prior review and
approval, which will not be unreasonably conditioned, delayed, or withheld. Town agrees that it
will not extend a similar license to any competitor of Company during the Term and any
Renewal Term of this Agreement.
3. Term. The term of this Agreement ("Term") shall be for three (3) years from the Effective
Date. The Agreement will automatically renew for additional one (1) year terms ("Renewal
Term") unless one of the Parties gives the other written notice at least ninety (90) days prior to
end of the Term or of a Renewal Term that the Party does not intend to renew this Agreement.
In the event that Company is in material breach of this Agreement, the Town may terminate this
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Agreement thirty (30) days after giving written notice to Company of such breach, if said breach
is not cured during said thirty (30) day period. Company will be permitted to complete any
marketing initiative initiated or planned prior to termination of this Agreement after which time,
neither Party will have any further obligations to the other and this Agreement will terminate.
4. Consideration.
A. As consideration for such license, Company will pay to Town a License Fee as set forth in
Exhibit A ("License Fee") during the term of this Agreement. The first payment shall be due by
January 30th of the year following the conclusion of first year of the Term. Succeeding License
Fee payments shall be made on an annual basis throughout the Term and any Renewal Term,
due and payable on January 30th of the succeeding year. Town will have the right, at its sole
expense, to conduct an audit, upon reasonable notice and during normal business hours, of
Company's books and records pertaining to any fees due under this Agreement while this
Agreement is in effect and for one (1) year after any termination of this Agreement.
5. Indemnification. Company hereby agrees to protect, indemnify, and hold the Town, its
elected officials, officers, employees and agents (collectively or individually, "Indemnitee")
harmless from and against any and all third party claims, damages, losses, expenses, suits,
actions, decrees, judgments, awards, reasonable attorneys' fees and court costs (individually or
collectively, "Claim"), which an Indemnitee may suffer or which may be sought against or are
recovered or obtainable from an Indemnitee, as a result of or arising out of any breach of this
Agreement by the Company, or any negligent or fraudulent act or omission of the Company or
its officers, employees, contractors, subcontractors, or agents in the performance of services
under the Products; provided that the applicable Indemnitee notifies Company of any such
Claim within a time that does not prejudice the ability of Company to defend against such
Claim. Any Indemnitee hereunder may participate in its, his, or her own defense, but will be
responsible for all costs incurred, including reasonable attorneys' fees, in connection with such
participation in such defense.
6. Notice. Any notice required to be given hereunder shall be deemed to have been given when
notice is (i) received by the Party to whom it is directed by personal service, (ii) sent by
electronic mail (provided confirmation of receipt is provided by the receiving Party), or (iii)
deposited as registered or certified mail, return receipt requested, with the United States Postal
Service, addressed as follows:
To: Town:
ATTN: John Kmiec
Town of Marana
12269 W Grier Rd
Marana, AZ 85653
Phone: (520) 382-2582
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To: Company:
ATTN: Chief Sales Officer
Utility Service Partners Private Label, Inc.
11 Grandview Circle, Suite 100
Canonsburg, PA 15317
Phone: (866) 974-4801
7. Modifications or Amendments/Entire Agreement. Any and all of the representations and
obligations of the Parties are contained herein, and no modification, waiver or amendment of
this Agreement or of any of its conditions or provisions shall be binding upon a party unless in
writing signed by that Party.
8. Assignment. This Agreement and the License granted herein may not be assigned by
Company other than to an affiliate or an acquirer of all or substantially all of its assets, without
the prior written consent of the Town, such consent not to be unreasonably withheld.
9. Counterparts/Electronic Delivery; No Third Party Beneficiary. This Agreement may be
executed in counterparts, all such counterparts will constitute the same contract and the
signature of any Party to any counterpart will be deemed a signature to, and may be appended
to, any other counterpart. Executed copies hereof may be delivered by facsimile or e-mail and
upon receipt will be deemed originals and binding upon the Parties hereto, regardless of whether
originals are delivered thereafter. Nothing expressed or implied in this Agreement is intended, or
should be construed, to confer upon or give any person or entity not a party to this agreement
any third- party beneficiary rights, interests, or remedies under or by reason of any term,
provision, condition, undertaking, warranty, representation, or agreement contained in this
Agreement.
10. Choice of Law/Attorney Fees. The governing law shall be the laws of the State of Arizona.
In the event that at any time during the Term or any Renewal Term either Party institutes any
action or proceeding against the other relating to the provisions of this Agreement or any default
hereunder, then the unsuccessful Party shall be responsible for the reasonable expenses of such
action including reasonable attorney's fees, incurred therein by the successful Party.
11. Incorporation of Recitals and Exhibits. The above Recitals and Exhibit A attached hereto
are incorporated by this reference and expressly made part of this Agreement.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day
and year first written above.
TOWN OF MARANA
_____________________________
Name:
Title:
UTILITY SERVICE PARTNERS PRIVATE LABEL, INC.
_____________________________
Name: Tom Rusin
Title: Chief Executive Officer
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Exhibit A
NLC Service Line Warranty Program
Town of Marana
Term Sheet
January 2, 2018
I. Initial Term. Three years
II. License Fee. $0.50 per Product for each month that a Product is in force for a Residential
Property Owner (and for which payment is received by Company), aggregated and paid
annually, for:
a. Town logo on letterhead, advertising, billing, and marketing materials
b. Signature by Town official
III. Products.
a. External water service line warranty (initially, $5.75 per month)
b. External sewer/septic line warranty (initially, $7.75 per month)
c. Interior plumbing and drainage warranty (initially, $9.99 per month)
Company may adjust the foregoing Product fees; provided, that any such adjustment shall not
exceed $.50 per month in any 12-month period, unless otherwise agreed by the Parties in
writing.
IV. Scope of Coverage.
a. External water service line warranty:
- Homeowner responsibility: From the meter and/or curb box to the external wall of
the home.
- Covers thawing of frozen external water lines.
- Covers well service lines if applicable.
b. External sewer/septic line warranty:
- Homeowner responsibility: From the exit point of the home to the main.
- Covers septic lines if applicable.
c. Interior plumbing and drainage warranty:
- Water supply pipes and drainage pipes within the interior of the home.
V. Marketing Campaigns. Company shall have the right to conduct up to three campaigns per
year, comprised of up to six mailings and such other channels as may be mutually agreed.
Initially, Company anticipates offering the Interior plumbing and drainage warranty Product via
in-bound channels only.
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NLC Service Line Warranty Program:
Benefits to Cities & Residents
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WHY CHOOSE UTILITY SERVICE PARTNERS?
EXPERIENCE REPUTATION PARTNERSHIP
This award underscores one of the primary
reasons the National League of Cities selected
USP as a partner and extended our agreement
for another five years. The organization's
exemplary record of customer service and
transparency is what has driven the success of
this partnership over the years.
—Clarence Anthony, Executive Director
National League of Cities
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AGING INFRASTRUCTURE IS PROBLEMATIC FOR CITIES & HOMEOWNERS
•In Arizona, infrastructure upgrades over the next 20 years are
estimated at $7.4 billion for drinking water, and $25 billion
for wastewater
•Lateral lines are subjected to the same elements as
public lines -ground shifting, fluctuating temperatures, tree
root penetration, corrosion and more
•Failed lines waste thousands of gallons of water and present
an environmental hazard
•Common homeowner misconceptions the municipality is
responsible for maintenance of the water and sewer lines
on their property or repairs are covered by their
homeowner’s policy
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NLC SERVICE LINE WARRANTY PROGRAM BENEFITS
•Only Service Line Program Endorsed by the National League of Cities and by
the League of Arizona Cities and Towns
•No cost for the Municipality to participate
•Ongoing Revenue Stream for the Municipality
•Educates homeowners about their lateral line responsibilities
•Free Public Awareness Campaign
•Peace of Mind -with one toll-free call a reputable plumber is dispatched
•All repairs performed to code by local licensed contractors
•Contractors undergo rigorous vetting process to ensure quality service
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NLC SERVICE LINE WARRANTY PROGRAM AND WHAT IT COVERS
WATER/WELL LINE
COVERAGE
SEWER/SEPTIC LATERAL
COVERAGE
•Educating homeowners about their service line responsibilities
•Up to $8,500 coverage per repair incident
•Includes coverage for thawing of frozen external water lines
•No annual or lifetime limits, deductibles, service fees, forms, or paperwork
•24/7/365 availability
•Repairs made only by licensed, local contractors
•Affordable rates and multiple payment methods
Homeowner repair protection for leaking, clogged or broken water and sewer
lines from the point of utility connection to the home exterior
Coverage includes:
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NLC SERVICE LINE WARRANTY PROGRAM AND WHAT IT COVERS
Homeowner repair protection for in-home
water supply lines and in-home sewer lines
and all drain lines connected to the main sewer
stack that are broken or leaking inside the
home after the point of entry
Coverage includes:
•Up to $3,000 coverage per repair incident.
•Repair of clogged toilets
•Includes coverage for broken or leaking water, sewer, or drain lines under the slab or
basement floor
•No annual or lifetime limits, deductibles, service fees, forms, or paperwork
•24/7/365 availability
•Repairs made only by licensed, local contractors
•Affordable rates and multiple payment methods
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MARKETING APPROACH
•No Public Funds are used in marketing, distribution, or administration of the program.
•Only market by direct mail, no telemarketing
•Would never mail without your review and approval of marketing material before each
and every campaign
•Limited mailing campaigns per year
•Consumer friendly marketing
•Always voluntary for the homeowner
•Consumers can enroll one of three ways:
•Calling into our toll free number that is provided on the mailing;
•Returning the bottom of the letter to us in the self addressed stamped envelope
provided
•Visiting our consumer website www.slwofa.com at any time
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SOLUTIONS FOR MUNICIPALITIES AND THEIR HOMEOWNERS
•More than 500 municipal and utility
partnerships
•Currently serving over 3.4 million
customers
•Saved customers over $394 million in
repair costs over the past 3 years
•Consistent customer satisfaction
rating of 98%
•9 of every 10 customers surveyed have
recommended the program to friends,
family and neighbors
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CURRENT ARIZONA PARTNERS
Green Valley Council
Town of Jerome
City of Mesa
City of Tucson
City of Phoenix
City of Avondale
Town of Taylor
Town of Superior
Town of Kearny
Town of Cave Creek
City of Benson
Town of Thatcher
City of Litchfield Park
City of Winslow
City of Globe
Town of Florence
City of Coolidge
City of Show Low
City of Kingman
City of Safford
County of Pinal
Town of Duncan
Town of Mammoth
Town of Fredonia
City of Maricopa
City of Nogales
Town of Miami
•Over 11,000 water, sewer and IPD repair jobs over
the last three years, saving Arizona homeowners
over $4.9 million
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For more information contact…
Ashley Shiwarski
Inside Sales Manager
724-749-1097
Ashiwarski@UtilitySP.net
Marana Study Session Council Meeting 09/25/2018 Page 19 of 33
City Stakeholder
Frequently Asked Questions
NLC SERVICE LINE
WARRANTY PROGRAM
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Service Line Warranty Program
Frequently Asked Questions
Table of Contents
SLWA & NLC Background ......................................................3
City Participation ..................................................................3
Marketing Letters .................................................................4
Warranty Products ................................................................5
Utility Line Responsibility ...................................................................5
Coverage .......................................................................................5
Eligible Dwelling Types ....................................................................7
Repairs ..........................................................................................7
Contractors ....................................................................................7
Billing ...................................................................................8
Additional Questions? ...........................................................8
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Service Line Warranties of America (“SLWA”) & National League of Cities
(“NLC”) Background
Who is Service Line Warranties of America?
SLWA is a private company that provides optional water and/or sewer service line warranties to homeowners. SLWA is proud
to be endorsed by the NLC as the administrator of the NLC Service Line Warranty Program. The NLC, representing over 218
million Americans, is the nation’s oldest and largest organization devoted to strengthening and promoting cities as centers of
opportunity, leadership and governance. SLWA is a BBB Accredited Business with an A+ rating.
The program is offered at no cost to the City and no public funds are used to promote or operate the program. Importantly,
SLWA is solely responsible for the administration and service of the warranty programs.
Who is the NLC?
The NLC is an organization dedicated to helping city leaders build better communities. Working in partnership with the 49
state municipal leagues, the NLC serves as a resource to and an advocate for the more than 19,000 cities, villages and towns
it represents.
Why did the NLC select a single company to introduce these warranties?
The NLC recognized the need for these warranties and realized that there were economies of scale that could be achieved
through the aggregation of potential homeowners that would result in a lower cost to the homeowner. They also realized that
warranties are only as good as the company offering them and after a careful review of providers, it was determined that
SLWA had the history and proven track record of providing the superior customer service required for this program.
Is SLWA a member of the Better Business Bureau?
Yes. SLWA has been a member of the Better Business Bureau since 2003 and they are very proud of their exemplary record.
SLWA is also approved by the appropriate state regulatory body to operate in the states where it provides coverage.
What happens if Service Line Warranties of America goes out of business? What happens to money
paid in premiums?
All of SLWA’s contracts are month to month and SLWA must legally maintain adequate reserves to satisfy all claims filed.
Furthermore, SLWA has filed an application and received state approval in all states in which it operates. Each state has
different requirements to ensure consumer protection and SLWA is compliant in maintaining the legally required financial
reserves in the form of bonds, funded cash reserves or other financial security depending on the jurisdiction’s requirements.
Should some unforeseeable event cause undue financial hardship on the company, the rules established by the various state
agencies ensures that SLWA’s customers are provided with adequate protection that their claims would be paid.
Where can I go to find out more about this program?
Please visit SLWA’s website at www.SLWofA.com or call them directly at 1-866-922-9006.
City Participation
Is this really a letter from the City?
Yes, the City worked with Service Line Warranties of America to make you aware of a program that could potentially save you
a lot of money.
Why is my City sending this letter to me?
The National League of Cities recognized homeowner water/sewer line warranty services as something many homeowners
have expressed an interest. It came to their attention that several state leagues had already endorsed and were already
working with SLWA. For this reason, they carefully reviewed SLWA and determined Service Line Warranties of America to be
the best option of those companies providing these types of warranties.
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Your City Council simply wanted to share the results of the NLC research with its homeowners. So, letters were mailed out
by SLWA for the sole purpose of providing program information. Homeowners who wish to learn more about this program
or want to enroll are encouraged to contact SLWA directly at the number provided in your letter. Homeowners who are not
interested in these services may disregard the letter entirely.
If you choose to enroll in this program, please do so with the understanding that your City in no way warrants or is liable for
the work or performance of Service Line Warranties of America. We are only making you aware of the availability of this
product since water and sewer line repairs can be very expensive.
Why is the City endorsing this program?
In these difficult economic times, the City felt it was important to educate residents that they are responsible for the service
lines on their property and to also inform you that there was a program offered through a reputable company that could
potentially save you a lot of money.
Why is the City working with Service Line Warranties of America for this program?
This program was brought to the City through an Enterprise Program of the National League of Cities administered by Service
Line Warranties of America. SLWA was selected by the NLC because of their high customer service and quality ratings. SLWA
has been in business for nearly 10 years and has an A+ rating from the Better Business Bureau. In addition, SLWA was also
unanimously selected by the North Central Texas Council of Governments as a shared service provider after a careful review
and full vetting by a panel of member cities.
Did the City pay for this mailing?
No. SLWA pays for all aspects of the program including marketing, customer service and repairs.
Does anyone in my City have an ownership position in SLWA or benefit personally from this
program?
No. SLWA is independently owned and operated and no City official, employee or relative receives any personal
compensation whatsoever. In other words, no one in your City is participating for personal gain.
What is in this Program for the City?
This program provides several benefits for the City. First, it educates residents of their service line responsibility. Secondly,
SLWA only uses qualified local contractors so repair dollars stay within the community, which helps us all. Lastly, the City can
be assured that all repairs are performed to code and that all appropriate permitting is pulled. This saves the City money
because it encourages residents to report water and sewer leaks in a timely manner. Timely water line repairs conserve water
and reduce water loss for the City. Timely sewer line repairs minimize wastewater pollution.
Is the City receiving any compensation from SLWA?
SLWA does offer the City itself compensation for allowing the use of the City seal on the letter. Why? The support of the City
alerts residents of the legitimacy of the program resulting in more enrollments, which in turn allows SLWA to offer a lower price
to the City’s residents because of the increased participation.
Is there a minimum participation necessary for a City to stay in the program?
No, there is no minimum participation required.
Marketing Letters
A resident is upset that the letter arrived in the name of their deceased spouse. Why did this
happen?
SLWA purchases a list of city homeowners based on the city boundary map from an independent list vendor, Infogroup.
Chances are that the source files used by this vendor have not been updated yet to reflect this change. If the resident elects to
enroll, all future correspondence from SLWA to the resident will be corrected. SLWA cannot legally submit the requested name
change to the DMA, which is a national, nonprofit organization, due to privacy laws.
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A resident does not want to receive any solicitations. How can this be accomplished?
Contacting SLWA at 1-866-922-9006 will ensure that SLWA will not contact this resident again (keep in mind however that
if the request comes in before the 2nd letter is sent, the customer will in fact receive the second letter because there is not an
opportunity to pull it from the post office). The Direct Marketing Association’s (DMA) Mail Preference Service (MPS) lets you
opt out of receiving unsolicited commercial mail from many national companies for five years. When you register with this
service, your name will be put on a “delete” file and made available to direct-mail marketers and organizations. This will
reduce most of your unsolicited mail. However, your registration will not stop mailings from organizations that do not use the
DMA’s Mail Preference Service. To register with DMA’s Mail Preference Service, go to www.dmachoice.org.
What should a resident do if they want more information and did not get the letter?
The resident can call SLWA directly at 1-866-922-9006 to request information or get a copy of the letter sent to them. They
can also visit SLWA’s website at www.SLWofA.com to view the details and enroll.
Warranty Products
Utility Line Responsibility
Isn’t my City or utility company responsible for my lines? If not, doesn’t my Homeowner’s
Insurance cover this type of Repair?
Typically no. Most homeowners are surprised to learn that they are responsible for the repair and replacement of their broken
or leaking utility lines, and most homeowners policies will pay to repair the damage created by failed utility lines but not
for the repair itself. We encourage you to call your insurance company to determine your actual coverage. If you live in a
condominium or duplex dwelling, we encourage you to contact your homeowners association to determine if you need this
coverage prior to enrollment.
What part of my water or sewer line am I responsible for maintaining?
Homeowner responsibility varies greatly across the U.S. In some areas, the utility is responsible for the sewer lateral that
runs from the main line to the right-of-way, property line or sewer clean-out near the curb. In other areas, the utility is not
responsible for any portion of the lateral line that runs beyond the main line. For water service lines, the utility generally only
covers the portion of the line from the main to the curb stop valve or water meter at the edge of the property. Regardless of
these local differences, SLWA will provide coverage for the portion of the service line for which you are responsible.
Coverage
What causes cracks, holes or leaks in utility lines?
Time: Wear and tear over time. It can be that simple. Over time, fittings can fail, pipes can corrode and your house can shift
and settle. A small crack or pinhole develops and leads to a leak. Next thing you know, your utility line has failed.
Weather: Freezing, thawing; rain, snow; each change of seasons brings with it a different challenge to your utility lines, and
the potential for cracks and leaks.
Landscaping: We all admire the beauty of a landscape graced with trees and shrubbery, but tree roots are not friends of
your utility lines. Wrapping themselves around your lines, they will eventually cause cracks, leaks and clogs.
What items are included as part of the warranty?
The external water and/or sewer line warranty covers the underground service line from the foundation of your home to the
point where the line becomes the utility’s responsibility. If any part of the line is broken and/or leaking, SLWA will repair
or replace the line in order to restore the service (including clearing tree roots from the water or sewer line). The in-home
plumbing repair warranty covers in-home water supply lines and in-home sewer lines and all drain lines connected to the
main sewer stack that are broken or leaking inside the home after the point of entry.
What items are excluded as part of the warranty?
The water line warranty does not cover the costs of repairs to the meter or meter vault nor does it cover branch lines to
sprinklers, pools, hot tubs, etc. The sewer line warranty does not cover septic systems. The warranties are designed to ensure
Marana Study Session Council Meeting 09/25/2018 Page 24 of 33
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that the homeowner has utility service to the primary residence for purposes of drinking, cooking and cleaning. Repairs for
damages caused by the homeowner, a third party, natural disaster, act of God or by other insurable causes are also not
covered. Complete Terms and Conditions for your residence can be viewed by visiting www.SLWofA.com. You will be asked
to enter your zip code to ensure the correct version is displayed.
Does the warranty include the inside of the house?
No. The external water and sewer line warranties do not provide coverage for inside the house.
Who replaces landscaping if damaged?
SLWA will provide basic restoration to the site. This includes filling in the holes, mounding the trench (to allow for settling)
and raking and seeding the affected area. Restoration does not include replacing trees or shrubs or repairing private paved/
concrete surfaces.
Is soil movement due to ground shifting covered?
Yes, ground shifting is one of the major causes for water and sewer line breaks. If the line is broken and leaking, the repair is
covered under the warranty.
Is tree root damage covered?
Yes, invasive tree roots are another major cause for water and sewer line failures. If the line is broken, leaking or clogged, the
repair is covered under the warranty.
Will the company inspect the lines for residents?
While SLWA reserves the right to inspect lines for pre-existing conditions, they generally do not inspect lines for residents to
look for leaks or other problems. SLWA responds to customers who report a claim for a line leak, clog or other failure from
normal wear and tear.
When does my warranty start?
Coverage begins 30 days after enrollment unless otherwise noted through a promotional letter.
The Coverage Cap looks adequate but does SLWA have an annual or lifetime restriction on how
much they will pay to repair?
No. Unlike some other warranties available, SLWA provides you with the full coverage per incident. They will pay up to your
coverage amount each and every time you need them. SLWA does not deduct prior repair expenses from your coverage cap
or limit the amount they will pay annually.
What are the event caps for the warranty? What are the annual caps per household?
Coverage caps listed in the Terms & Conditions are per occurrence as follows:
Water — $4,000 plus an additional $500 for public sidewalk cutting, if necessary
Sewer — $4,000 plus an additional $4,000 for public street cutting, if necessary
In-Home Plumbing — $3,000
There are no annual or lifetime caps for coverage. Coverage is provided on a per incident basis and all work is warranted for
one year. It has been SLWA’s experience that these coverage caps will more than adequately provide coverage 99.9% of the
time. In the rare instance that the repair is greater than the coverage provided, SLWA will work closely with the contractor to
provide the homeowner the additional work at SLWA’s discounted cost.
If more than $4,000 is required for repairs or public street cutting, does the resident cover the cost?
In the rare case that the repair exceeds $4,000 the resident will be responsible for the difference. SLWA works very closely
with its local contractors to avoid this situation and in the unlikely event this should occur, the customer enjoys pricing that
would not otherwise be available from the contractor.
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7
I cannot find my Terms and Conditions. How can I get another copy?
You may either call SLWA at 1-866-922-9006 to request another copy or visit www.SLWofA.com and follow the navigation
prompts under “Manage Account” to log in. Once logged-in, select “View Terms & Conditions” from the home screen. The
warranty product(s) that are active on your account will be displayed. Once you make your selection, your Terms & Conditions
will display as a .pdf. You can print or save them at this time in addition to viewing them online.
Eligible Dwelling Types
Is the program just for residents, or can businesses participate?
This program is only available for residential dwellings.
I live in a condominium. Am I responsible for my water or sewer line?
Please contact your homeowners association to determine if you are personally responsible for your water or sewer service
line. If you are responsible and you have a single service line serving your dwelling, you are eligible to enroll. If you are
served by a shared line, please contact SLWA at 1-866-922-9006 to determine eligibility.
Can my condominium association enroll in this program?
Yes. Because coverage issues can vary widely between associations, please call 1-866-922-9006 to speak with an employee
who specializes in this custom coverage program.
Repairs
What do I do if I need a repair?
Residents can call SLWA’s 24-hour hotline number at 1-866-922-9006 to speak with one of their claim representatives. There
are no forms or paperwork for you to complete. Once you report a claim, their contractor must call you within an hour to
schedule an onsite visit and will be on-site within 24 hours.
The vast majority of repairs are completed within 1–2 days of receiving the claim. Claims taking longer than a day are those
which usually require utility line marking to prevent accidental damage to other lines on the property. At the completion of
your repair, you will be sent a satisfaction survey. Results of these surveys are used to continually improve SLWA service levels
and processes. SLWA has consistently enjoyed a 96% customer satisfaction rating (excellent and good categories).
What codes will SLWA adhere to? The current code? The original code at the time of installation?
If the line is broken and leaking, SLWA will repair or replace the leaking portion of the line according to the current code.
Who will do the repair work?
SLWA only employs qualified contractors from the local area who have the desire and ability to meet the high standards
established by SLWA.
Contractors
How selective is SLWA when choosing contractors to conduct repairs?
SLWA is very particular when it comes to selecting contractors into their network. SLWA’s objective is to provide the highest
levels of customer service, and all SLWA contractors understand the importance of their role. SLWA works with local
contractors that have both the desire and ability to meet their high customer service standards. Service Line Warranties of
America (SLWA) is committed to working in accordance with the city’s guidelines for utilizing small, minority, veteran and
women-owed businesses when recruiting contractors.
How many plumbers is SLWA going to work with in my City?
The number of plumbers depends on the number of households in the City. Generally, SLWA starts with a minimum of two
contractors for the smallest cities, and adds one additional contractor for each 10,000 households of population.
Marana Study Session Council Meeting 09/25/2018 Page 26 of 33
What if the plumber does poor work?
SLWA screens local contractors to ensure that they have the desire and ability to meet the high standards established. All
work is guaranteed for one year. Any work that fails to meet the warranty or quality standards will be re-performed by the
contractor or another contractor at no cost to the homeowner.
Billing
How will I be billed?
The choice is yours. SLWA can invoice you monthly, charge your card or deduct the monthly amount automatically from your
checking account. You can make payments monthly or annually.
Is this a long-term commitment?
No. The contract is monthly and you may cancel your warranty at any time. If you have prepaid your contract and decide to
cancel before the end of the term, you will be refunded the unused portion of your premium.
Am I able to pay my bill online?
Yes. Simply login to SLWA’s website at www.SLWofA.com and follow the navigation prompts under “Manage Account” to
log in. Once logged-in, if you have already received an invoice, you can go online to pay your bill. Select “Make a Payment”
from the home screen. You can choose to pay by credit card or bank draft, and you can choose to make a onetime payment
or set your account up for recurring charges or drafts. You will receive an electronic receipt in your email after your transaction
is complete. If you have not yet received your first invoice but would like to prepay on your warranty service, please call
Customer Service at 1-866-922-9006 to assist you.
Can I set up recurring payments online?
Yes. Please visit www.SLWofA.com and follow the navigation prompts under “Manage Account” to log in. Once logged-
in, select “Update Payment Method” from the home screen. You will select the warranty products that you want to set up on
a recurring payment method on the next screen. Follow the prompts to choose your new payment method (you can choose
between Recurring Credit Card, Recurring Bank Account Withdrawal, and if you are already set up on a recurring payment
method, you can also switch back to Invoice) and to provide the details on that payment method. You will receive an electronic
receipt in your email after your transaction is complete.
Additional Questions?
This document contains answers to the most commonly asked questions you may encounter regarding the National League of
Cities Service Line Warranty Program introduction. However, rest assured that Utility Service Partners is available to assist you
at any time. For assistance, simply call toll-free at 1-866-922-9007 or email us at Partnerships@utilitysp.net and we will be
happy to help. Residents can call 1-866-922-9006.
CITYFAQGN-BR-1016Marana Study Session Council Meeting 09/25/2018 Page 27 of 33
Council-Study Session D2
Meeting Date:09/25/2018
To:Mayor and Council
From:Erik Montague, Deputy Town Manager
Date:September 25, 2018
Strategic Plan Focus Area:
Community
Strategic Plan Focus Area Additional Info:
Marana is focused on ensuring that the community has adequate water, sewer,
transportation and public safety infrastructure to meet the demands of a growing
community.
Subject:Presentation: Resolution No. 2018-091: Relating to Utilities; authorizing the
creation of the Picture Rocks Water Treatment Campus capital project and the
Airline/Lambert Water Treatment Campus capital project; authorizing the
transfer of up to $2,000,000 in budgeted expenditure authority from the
Wastewater Treatment Plan capital project (WR011) line item in the fiscal
year 2018-2019 budget to the newly created capital projects; and authorizing the
application for a Clean Water State Revolving Fund loan from the Water
Infrastructure Finance Authority of Arizona to fund the construction of water
treatment works to remove perfluorinated compounds from Marana Water
Department potable water (John Kmiec)
Discussion:
On August 14, 2018, John Kmiec, Utilities Director, presented to the Town Council an
in-depth update on the discovery of unregulated compounds 1,4-Dioxane and
Perfluorinated Compounds (PFOA/PFOS) within two Marana Water systems
(Airline/Lambert and Picture Rocks). That presentation included a local history of
unregulated compounds, a timeline of discovery in Marana Water systems, explanation
of Environmental Protection Agency (EPA) health advisories, and potential treatment
remedies.
Council directed staff to bring back final recommended treatment options and to provide
an overall project delivery timeline and financing options. The financing options section
of tonight's presentation will cover recommended sources for initial project funding and
Marana Study Session Council Meeting 09/25/2018 Page 28 of 33
potential revenue sources to pay for future debt payments, if any. Staff will also present
future outreach and communication efforts to continue existing efforts to inform the
public about this issue.
Initial Project Funding for Capital Improvements
A significant, early infusion of project funds (cash) will be required to deliver the project
based upon the anticipated schedule. In the absence of access to adequate unrestricted
cash balances in other funds to borrow from (internal loans between unrestricted funds,
reallocation of savings from other major capital projects, etc.), we will likely be required
to use a formal structured borrowing mechanism, such as Utility Revenue Obligations,
Excise Tax Revenue Obligations, or Water Infrastructure Financing Authority (WIFA)
loans.
Source of Debt Repayment for Capital Improvements
A reasonably secure, ongoing revenue stream will be required to pay for future debt
payments. Depending on the amount financed, the duration and the interest rate, staff
reasonably expects that the annual debt service payment will range between
approximately $750,000 and $985,000 for $12,000,000 and $15,000,000 in bonds/loans
issued, respectively. Staff considered a number of potential revenue sources including,
but not limited to, some portion of reserve savings, redistribution of existing tax rates,
and an increase to the existing tax rate. Staff will cover a number of these within the
presentation.
Considerations Relating to Operating Costs and Possible Future Capital Improvements
As the Town looks to continue to maintain compliance with regulated compounds in the
Safe Drinking Water Act and, additionally, to address unregulated compounds as they
are discovered to be above any listed health advisory, it is important to note that such an
approach may require future treatment capital investments through some combination
of future wells testing above the then-current Health Advisories and/or reduction
(lowering) of Health Advisory levels. Additionally, to preserve the long-term viability
of the water enterprise system, future operating costs of delivering treated water to a
standard above the Safe Drinking Water Act will need to be factored into future rate
models. When discussing rate models, it is important to note that staff is suggesting
consideration of the additional operating costs and not the initial capital outlay for the
initial treatment improvements.
Immediately following the presentation, Council will be asked to consider the approval
of a resolution which would:
Establish the Picture Rocks Water Treatment campus and the Airline/ Lambert
Water Treatment campus capital projects
Authorize the transfer of appropriations for the projects, if necessary
Authorize the application for Water Infrastructure Financing Authority (WIFA)
funding
Authorize any procurement activities necessary for the projects
A copy of the presentation will be distributed just prior to the Council Study Session.
Financial Impact:
Marana Study Session Council Meeting 09/25/2018 Page 29 of 33
Fiscal Year:2019 and 2020
Budgeted Y/N:N
Amount:$12-15M estimated
In accordance with Town Code Section 3-4-7(B)(2), separate Council authorization is
required for purchases which exceed $50,000 and are not included in the budget as
adopted. Staff anticipated that approximately $2M in expenditure authorization will be
required in fiscal year 2019 with the remaining project balance being budgeted in 2020.
Staff Recommendation:
Staff recommends approval of Resolution No. 2018-091.
Suggested Motion:
I move to adopt Resolution No. 2018-091, authorizing the creation of the Picture Rocks
Water Treatment Campus capital project and the Airline/Lambert Water Treatment
Campus capital project; authorizing the transfer of up to $2,000,000 in budgeted
expenditure authority from the Wastewater Treatment Plan capital project (WR011) line
item in the fiscal year 2018-2019 budget to the newly created capital projects; and
authorizing the application for a Clean Water State Revolving Fund loan from the Water
Infrastructure Finance Authority of Arizona to fund the construction of water treatment
works to remove perfluorinated compounds from Marana Water Department potable
water.
Attachments
Resolution No. 2018-091
Marana Study Session Council Meeting 09/25/2018 Page 30 of 33
00059665.DOCX /3
Marana Resolution No. 2018-091 - 1 - 9/20/2018 3:12 PM
MARANA RESOLUTION NO. 201 8-091
RELATING TO UTILITIES; AUTHORIZING THE CREATION OF THE PICTURE
ROCKS WATER TREATMENT CAMPUS CAPITAL PROJECT AND THE
AIRLINE/LAMBERT WATER TREATMENT CAMPUS CAPITAL PROJECT ;
AUTHORIZING THE TRANSFER OF UP T O $2,000,000 IN BUDGETED
EXPENDITURE AUTHORIT Y FROM THE WASTEWATER TREATMENT PLANT
CAPITAL PROJECT (WR0 11) LINE ITEM IN THE FISCAL YEAR 2018-2019 BUDGET
TO THE NEWLY CREATED CAPITAL PROJECTS; AND AUTHORIZING THE
APPLICATION FOR A CLEAN WATER STATE REVO LVING FUND LOAN FROM
THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA TO FUND
THE CONSTRUCTION OF WATER TREATMENT WORK S TO REMOVE
PERFLUORINATED COMPO UNDS FROM MARANA WATER DEPARTMENT
POTABLE WATER
WHEREAS Perfluorooctanoic Acid (“PFOA”) and Perfluorooctane Sulf onate
(“PFOS”) are perfluorinated compounds (“PFCs”) with lifetime drinking water health
advisories adopted by the Environmental Protection Agency (the “EPA”); and
WHEREAS the Town of Marana owns drinking water systems that include wells
with PFCs exceeding the lifetime drinking water health advisories adopted by the EPA ;
and
WHEREAS Town staff and the Town’s consultants, Carollo Engineers, have
worked together to design water treatment works to remove PFCs from two of the
Town’s water systems (the “Water P urification Works”); and
WHEREAS Town staff requests authorization to create two new capital projects
associated with the Water Purification Works and to transfer up to $2,000,000 from the
wastewater treatment plant capital project (WR011) line item in the fiscal year 2018-2019
budget to the newly created capital projects; and
WHEREAS Town staff requests authorization to seek a loan from the Water
Infrastructure Financing Authority of Arizona (WIFA) to help fund the final design and
constru ction of the Water Purification Works; and
WHEREAS pursuant to Arizona Revised Statues section (A.R.S. §) 9-571, the
Town may obligate the revenues generated by its Water Department and other
Marana Study Session Council Meeting 09/25/2018 Page 31 of 33
00059665.DOCX /3
Marana Resolution No. 2018-091 - 2 - 9/20/2018 3:12 PM
revenues, including excise taxes, otherwise authorized by law to be used to repay long -
term obligations to repay a loan from WIFA; and
WHEREAS the Town of Marana, located in Pima and Pinal Counties, certifies
that the population of the community is under 50,000 in population as of the most
recent U.S. Census data; and
WHEREAS according to the most recently available population statistics from
the State of Arizona Office of Economic Opportunity , the Town of Marana’s population
at the time of this request for WIFA financial assistance is approximately 45,378, which
meets the requirement under A.R.S. § 9 -571; and
WHEREAS the Mayor and Council of the Town of Marana find that it is in the
Town’s best interest to create two new capital projects associated with the Water
Purification Works, to transfer up to $2,000,000 from the wastewater treatment plant
capital project (WR011) line item in the fiscal year 2018 -2019 budget to the newly
created capital projects, and to pursue and apply for financial assistance from WIFA in
an amount not to exceed $15,000,000 to help fund the final design and construction of
the Water Purification Works .
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF MARANA, as follows:
SECTION 1. The creation of the Picture Rocks Water Treatment Campus capital
project and the Airline/Lambert Water Treatment Campus capital project are hereby
approved and Town staff is authorized to transfer up to $2,000,000 in budgeted
expenditure authority from the wastewater treatment plant capital project (WR011)
budgeted line item in the fiscal year 2018-2019 budget to the newly created capital
projects to fund Town costs to complete the final design and construction of the Water
Purification Works.
SECTION 2. The Town Manager is hereby authorized to sign for and on behalf
of the Town of Marana all ap plications, agreements, and other documentation necessary
or beneficial for Clean Water State Revolving Fund financial assistance from WIFA in
an amount not to exceed $15,000,000, payable from revenues of the Marana Water
Department and other revenues, including excise taxes, otherwise authorized by law to
be used to repay long -term obligations, to cover Town costs to complete the final design
and construction of the Water Purification Works .
SECTION 2. All actions of the officers and agents of the Town of Marana which
conform to the purposes and intent of this resolution and which further the completion
of the actions as contemplated by this resolution, whether heretofore or hereafter taken,
are hereby ratified, confirmed and approved. The proper officers a nd agents of the
Town are hereby authorized and directed to do all such acts and things and to execute
Marana Study Session Council Meeting 09/25/2018 Page 32 of 33
00059665.DOCX /3
Marana Resolution No. 2018-091 - 3 - 9/20/2018 3:12 PM
and deliver all such WIFA application documents on behalf of the Town and to conduct
such procurement activities as may be necessary to carry out the terms and intent of this
resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana,
Arizona, this 25th day of September, 2018.
Mayor Ed Honea
ATTEST:
Hilary H. Hiser, Interim Town Clerk
APPROVED AS TO FORM:
Frank Cassidy, Town Attorney
Marana Study Session Council Meeting 09/25/2018 Page 33 of 33