Sparta will move forward with an optional water leak insurance program.
Council members Thursday approved authorizing Mayor Jeff Young to enter an agreement for the program. The service agreement is with the company Water Leak Relief out of Crossville. City Administrator Brad Hennessee said residents will get two insurance claims worth $1,500 for an added $2.03 on their bill.
“We anticipate a 30 to 60 day opt-out period after you get your notification,” Hennessee said. “And then during the initial month of implementation, if you decide you don’t want it, any fees paid at that time will be fully refunded.”
Hennessee said that residents will receive notification in their bill about the program and how it will work. He said the plan is to have the program begin on June 1.
“All water customers will receive information with their bill, both about the program and how if they choose to what we call opt-out of the program, how to do that,” Hennessee said. “All that will be is contacting the Sparta Utility Office and they will be able to direct you on how to opt-out.”
Two Water Leak Relief representatives were in attendance to answer questions about the program. Owner William Ridley said they have a 97 percent retention rate for customers in the program.
Hennessee said Water Leak Relief’s track record led to this agreement.
“Communities and utilities around us offer it to their customers and everybody seems to be happy with it,” Hennessee said. “The reasonable rates for a reasonable level of protection. It doesn’t happen to everybody but you’re glad you have it when it does.”
The total cost breaks down to a $1.53 premium, with a 50 cent city administrative fee. A single occupancy commercial property would be charged $3.96 on their water bill. A multiple occupancy commercial property would be charged $7.33.
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