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Council authorizes staff to partner with HomeServe on voluntary service-line protection program
Summary
Le Mars authorized staff to finalize an agreement with HomeServe for a voluntary property-owner service-line protection program covering exterior water, exterior sewer and in-home plumbing; the city would market the program and receive a commission (described as 10%).
City staff presented responses to an RFP for a property-owner service-line protection program and recommended partnering with HomeServe. The program would be voluntary; property owners would pay a monthly fee to enroll, and claims would generally be subject to a 30-day waiting period.
Staff told council that HomeServe offers multiple coverage options (exterior water, exterior sewer and in-home plumbing) and that partnering would allow the city to market the program while HomeServe handles billing and service. Staff described discounts and coverage increases compared with online purchases: for water lines the city partnership was described as offering a roughly 12% discount and additional coverage value, sewer about 4% savings with higher coverage, and in-home plumbing savings of about 32% compared with online purchase. Staff also said HomeServe already had tens of thousands of policies in Iowa and community partners in nearby towns.
Council discussed safeguards including ensuring city staff do not speak for the vendor, considering segregating any commission revenue into a designated account for low-income assistance, and requiring staff review of materials that carry the city’s name. After discussion the council moved, seconded and authorized staff to execute an agreement with HomeServe; the motion carried.
