Title
(CONTINUED FROM AUG. 30, AND SEPT. 6, 2017) - Marketing Partnership Program - Service Line Protection Program (Ordinance S-43868)
Description
This report requests authorization for the City Manager, or his designee, to extend revenue generating Contract 133068 with Service Line Warranties of America (SLWA) through Dec. 31, 2017, to allow sufficient time for the City to evaluate the program and procure a new contract. This report further requests authorization for the City Treasurer to accept and the City Controller to disburse funds generated through the program. There is no cost to the City; this is a revenue contract.
Report
Summary
On Aug. 1, 2012, the City entered into a two-year marketing agreement with SLWA with three one-year options. SLWA is an optional warranty program for residential sewer and/or water lines, with participating residents billed directly by the company. The program is completely outsourced and generates General Fund revenue for City programs and services, with no cost to the City.
The City currently receives 12 percent of revenue from warranty subscriptions. Since its inception, the program has produced a savings of more than $2 million for Phoenix residents who have filed claims. Additionally, the program has generated approximately $1.4 million in revenue for the City through royalties and other one-time payments.
The current contract, including extension options, expired Aug. 1, 2017. As this contract provides revenue to the City and an optional and beneficial resource to Phoenix residents, staff recommends extending the contract through Dec. 31, 2017, to allow staff time to evaluate the program and procure a new contract while avoiding a lapse in service.
Contract Term
If awarded, the term would commence immediately and expire on Dec. 31, 2017.
Financial Impact
There is no cost to the City; this is a revenue contract.
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone.