For City Council Meeting and Rialto Utility Authority [April 24, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Robb R. Steel, Interim City Administrator
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority Board to Approve an Agreement with Utility Service Partners, Inc. for the National League of Cities Service Line Warranty Programs for the Royalty Programs.
(ACTION)POWERPOINT
Body
BACKGROUND:
On March 27, 2012, the City Council and Rialto Utility Authority (RUA) took several actions related to approval of a Concession Agreement (CA) with Rialto Water Services, LP (RWS), assigning operation and maintenance of the City's water and sewer utilities to RWS. Section 3.8 of the CA requires RWS to offer utility customers the opportunity to purchase one or more water and sewer line protection programs. The original provider selected was American Water Resources, Inc. d/b/a American Water Resources Insurance Services.
Although the parties to the CA agreed to replace the original Contractor, American Water Operations & Maintenance, Inc., with Veolia Water West Operating Services, Inc. (Veolia), Veolia does not provide a service line insurance program as required by the CA. As such, the City, Authority and Concessionaire implemented a Contract Administration Memorandum (CAM) that allowed the City and Authority to enter into an agreement for the provision of a service line insurance program.
The original agreement with AWR granted the company a license to use the City/Authority's name, logos, trademarks, etc. necessary to market the programs to the City's utility customers. The agreement also provided for a repair program to help less fortunate homeowners with in-home plumbing, water or sewer line repairs. AWR paid an annual administrative fee of $15,000 as compensation to the City. The monthly service charge for the different warranty products are: external sewer line is $9.99 with a coverage up t...
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