La Grande council approves residential service-line warranty agreement amid logo and oversight concerns

La Grande — The city council voted to authorize an agreement with Service Line Warranties of America to allow that company to offer optional residential service-line protection to La Grande utility customers.

City Manager John O'Brien summarized negotiations and the contract changes made with legal counsel to ensure the company’s materials clearly state it is independent from the city. O'Brien told council the company’s own projection estimated roughly $830,000 in annual gross sales at scale; staff said the city’s expected share would be a small percentage (staff referenced a 5% share, with an opt-in 10% revenue-share option noted in contract exhibits).

Councilors expressed several concerns before voting: the potential for customer confusion if the company uses the city logo in marketing; the limits of the city’s ability to audit company sales (staff described a largely self‑reporting system); how much administrative work would be required of staff; and whether residents should be specifically advised to check their existing insurance coverage. One councilor said they would vote no; the motion passed on a majority vote.

The motion authorized the city manager to execute the agreement as presented (or with agreed edits) and directed staff to ensure the marketing language emphasizes the company is independent and that customers should check policies with their insurers.

What’s next: Staff will finalize language (including prominent disclaimers about independence from the city), coordinate legal review and begin the company’s outreach under the terms of the agreement. The city will receive annual remittance reports from the company as provided under the contract.