Title
(CONTINUED FROM AUG. 30, SEPT. 6 AND 20, 2017) - Marketing Partnership Program - Service Line Protection Program (Ordinance S-43868)
Description
This report requests authorization for the City Manager, or his designee, to enter into an agreement that extends revenue generating Contract 133068 with Service Line Warranties of America (SLWA) through Dec. 31, 2017. The new agreement, which will include the same terms and conditions as Contract 133068, will 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 original contract, including extension options, expired Aug. 1, 2017. Because these services provide revenue to the City and an optional and beneficial resource to Phoenix residents, staff recommends extending these services through Dec. 31, 2017, to allow staff time to evaluate the program and procure a new contract while avoiding a lapse in services.
Contract Term
If approved, the agreement term runs from August 1, 2017, through 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.