HomeMy WebLinkAbout05. Endorse the sewer lateral insurance program being offered by Contra Costa Water DistrictPage 1 of 37
Item 5.
' CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: JANUARY4, 2018
SUBJECT: ENDORSE THE SEWER LATERAL INSURANCE PROGRAM BEING
OFFERED BY CONTRA COSTA WATER DISTRICT (CCWD) ON A PILOT
BASIS, AND ALLOW USE OF CENTRAL SAN'S NAME AND LOGO ON
MARKETING MATERIALS. ENDORSEMENT RECOMMENDED BY
ADMINISTRATION COMMITTEE.
SUBMITTED BY:
INITIATING DEPARTMENT:
ANN SASAKI, DEPUTY GENERAL MANAGER ADMINISTRATION -COMM SVCS AND
PHILIP LEIBER, DIRECTOR OF FINANCE AND INTERGOV REL
ADMINISTRATION
Roger S. Bailey Kenton L. Alm
General Manager District Counsel
ISSUE
As Central San is the sewer service provider for a portion of Contra Costa Water District's
(CCW D) service area, should Central San endorse CCW D's program to offer customers the opportunity
to have sewer lateral insurance.
BACKGROUND
CCWD has been providing water line insurance through HomeServe to their customers since 2011. 1 n
2016, CCWD approached the City of Concord to offer a similar program for Concord sewer
customers. CCWD indicated that they invested a significant amount of staff time, and took precautions to
alter the standard contract with HomeServe to maximize the benefit for the customer. The current program
offered by HomeServe to CCWD customers include the following sewer lateral insurance plan coverage
January 4, 2018 Regular Board Meeting Agenda Packet - Page 150 of 235
Page 2 of 37
areas
• Locating the blockage or collapse
• Excavation to expose pipe
• Pipe replacement or repair
• Repair or replacement of seals and joints
• Unblocking
• Fitting external valves
• Fusing
• Welding
• Pipe cutting
• Backfilling of areas disturbed by repairs
CCW D began offering sewer lateral insurance through HomeServe to their treated water
customers in February 2017, which includes the City of Concord. CCW D indicated, as part of quality
control management for the program, that they distribute all marketing pieces themselves, they do not
allow HomeServe access to their customer list, and they collect the insurance premiums on their billing
statements.
CCW D's contract with HomeServe includes the following administrative stipulations:
1. CCW D will make all contacts with customers to solicit for the program, and HomeServe will
reimburse for the cost of the marketing pieces.
2. CCWD will collect from customers the cost of the program which will be included on their bi-monthly
bills.
3. A maximum of three marketing pieces per year will be sent out, but this may be subject to change
now that CCWD and HomeServe offer two programs.
4. HomeServe has only increased their rates for insurance once since 2011. By contract, their
increases can only go up by the amount CCWD water rates have gone up during that same time
period. (i.e. HomeServe's increase was 6%, but rates could have increased by 16% because
CCW D's rates increased by 16% over that same time period.)
5. CCWD customers are currently charged $10.99 per month for sewer lateral insurance.
6. CCW D receives 10% of all the revenues collected to cover administrative costs.
Should Central San choose to participate, endorsement of CCWD's program would allow Central San's
name and logo to be used on future mailings (three per year). No other action would be required by
Central San.
ALT ERNAT IVES/CONSIDERAT IONS
There are a number of other national companies that advertise similar types of products that any customer
within Central San's service area can request. Central San could also elect to offer a similar program with
HomeServe or another provider. Offering a similar program would require administration of the program
and staff time. Central San's General Manager along with the General Managers of CCWD and East Bay
Municipal Utilities District (EB MUD) have met to discuss sewer lateral insurance programs. At this time,
EBMUD has no existing plans to initiate a sewer lateral insurance program.
The Board could elect to provide this as a pilot program to determine whether or not it is beneficial and
well received by a small sample of Central San customers. The pilot would consist of three mailings per
year to just CCWD customers who already have water line insurance, and are also Central San
customers. Envelopes and/or marketing letters would be co -branded with both agency logos, and the
letter could reference Central San as a "supporter" if Central San chose this option. Central San would
have editorial privileges, with CCWD holding final approval on all marketing pieces.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 151 of 235
Page 3 of 37
After the start-up of the pilot program, Central San could choose to extend the program more
broadly. Alternatives could include:
Option A: This option would include making the insurance program available to customers through HomeServe
on the Central San website. Central San's role would be more limited to include:
1. HomeServe would provide Central San with information on customer sign-ups in Central San service
area cities.
2. Customers would individually choose to participate.
3. A disclaimer on the website would indicate that Central San is not involved in handling individual
claims.
4. Should a customer choose to participate in the program and experience a claim issue, Central San
could elect to help the customer and HomeServe come to a resolution.
5. If there was an excess number of customer complaints, Central San could withdraw affiliation from
HomeServe and no longer promote the option through the CentralSan.org website.
Option B: This option would have Central San providing a more active role in soliciting customers to
participate in the program, including:
1. Providing Central San direct marketing mailers to customers providing program information.
2. Customers would either need to pay HomeServe directly for the program or an annual sewer lateral
insurance program cost could be added on the Sewer Service Charge on property tax bills. This would
require an opt -in for the program for each customer for an entire fiscal year period.
FINANCIAL IMPACTS
There are expected to be very limited financial impacts to Central San to endorse the program in the pilot
stage. The primary financial impacts are to CCWD and HomeServe. CCWD has staff assigned to the
administration of the program, including their call center that responds to customer inquiries.
Central San will indicate that claims are between HomeServe and their customers, but it is possible that
some staff time could be spent assisting customers if they have a claim dispute with HomeServe and staff
believe it is appropriate to intervene with HomeServe on their behalf. Or, if Central San hears repeated
cases of what appear to be legitimate claims denied by HomeServe, this could be raised by Central
San staff with HomeServe. CCWD has indicated that this has been minimal in their experience to date,
and that based on their experience with the company, HomeServe has a good track record of honoring
claims. Central San's experience with this issue during the pilot phase would be taken into account before
proceeding with any potential plans to expand the program more broadly as discussed in Option A or B
above.
Central San has also explored the issue of whether HomeServe would cover permit fees assessed by
Central San for necessary work on sewer laterals. HomeServe's policy documentation indicates they
would cover all necessary costs up to the annual coverage limit of $12,000, however no specific mention
is made of permit fees. A HomeServe customer service representative has indicated verbally that permit
fees would be covered as a necessary cost. Central San has requested a letter from HomeServe to
confirm this understanding.
COMMUNITY OUTREACH
If the Board chose to provide a pilot program for the customers served by both Central San and CCWD,
minimal concerns should come from the overall community. However, Central San could commit to
referring customers that are not included in the pilot program program sphere of influence to
January 4, 2018 Regular Board Meeting Agenda Packet - Page 152 of 235
Page 4 of 37
HomeServe.
COMMITTEE RECOMMENDATION
This matter was reviewed by the Administration Committee on September 28, 2017, and November 21,
2017. On November 21, the Committee recommended that the Board endorse the sewer lateral insurance
program being offered by CCWD on a pilot basis, allowing the use of Central San's name and logo on
marketing materials.
RECOMMENDED BOARD ACTION
Recommend that the Board endorse the sewer lateral insurance program being offered by CCWD on a
pilot basis, allowing the use of Central San's name and logo on marketing materials.
Strategic Plan Tie -In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
GOAL TWO: Strive to Meet Regulatory Requirements
Strategy 2 - Strive to Minimize the Number of Sanitary Sewer Overflows
ATTACHMENTS:
1. Example Letter of CCW D's Outreach to Customers for Sewer Lateral Insurance
2. Example of CCWD's Website for Customers regarding Sewer Lateral Insurance
3. Marketing Agreement between Contra Costa Water District and Home Service USA Corp. - Dated
April 20, 2011
4. Terms and Conditions for the CCW D and HomeServe Sewer Lateral Insurance Program
January 4, 2018 Regular Board Meeting Agenda Packet - Page 153 of 235
Page 5 of 37
A\Nk C 0 N T R A C 0 S TA Board of Drectors
NININNIONZIEW Lisa M. Borba, AICP
GOVEOMM President
'Isom
Immooffim WATER DISTRICT
am
Connstance Holdaway
Vice President
Ernesto A. Avila, P. E.
Bette Boatmun
John A. Burgh
General Manager
Jerry Brown
N 1111ill'i I 11F NO 131 ii 1111111111:1111 IN I
21111THEMOVIR lffi -11 011,
Contra Costa Water District (CCWD) is always looking for ways to enhance service to our customers. That's
why we are excited to announce that there are now two alllLonal protection programs available to you from
Home Emergency Insurance Solutions (HEIS). As of May 2017, the District has partnered with HEIS to offer
new optional protection against sewer/septic line failures to eligible homeowners. This is available in addition
to the optional protection provided by HEIS to protect your exterior water service line, the pipe that separately
delivers clean, drinking water into your home.
CCWD has partnered with HEIS, a Better Business Bureau accredited company with an A+ rating, to
offer customers with financial protection from repair costs associated with an exterior water service
and/or sewer/septic line failure.
CCWD aims to provide our customers with valuable services. Therefore, we work on our customers'
behalf with HEIS to ensure that our customers receive the promised benefits of these plans. Please take
time to read the enclosed information, including the eligibility requirements and coverage details, to
evaluate whether these plans are right for you and will meet the specific circumstances of your residence.
CCWD has approved the distribution of the attached documents with all costs covered by Home Emergency
Insurance Solutions. If you do not want to receive these offers, please contact us to be removed from any
future mailings.
For more information about Exterior Sewer/Septic Service Line Protection and how a sewer/septic service
line breakdown could affect you, please call 1-888-300-5063 or visit CCWD's website x- •m
You can also contact me directly at 925-688-8059 if you have questions or would like to be removed from the
distribution of future mailings regarding this service.
Sincerely,
Dominic DeBellis
Customer Service Supervisor
DD:dmg
Enclosure
.4
1331 Concord Avenue - Concord, CA 94520 ® (925) 688-8000 ® fax (925) 688-8122 - www. cewater. coin
January 4, 2018 Regular Board Meeting Agenda Packet - Page 154 of 235
Page 6 of 37
Response Requested Peel and affix this label.
0023
Not Covered
ATTENTION — Contra Costa Water District Customers
Dear Sample A. Sample,
This letter is to inform you that as a homeowner, you are responsible for the full cost of repairing your
sewer/septic line. We have found that your property at Sery – Addressl is not covered with Exterior
Sewer/Septic Line Coverage from Home Emergency Insurance Solutions,
The sewerlseptic line buried underground on your property could fail without warning, leaving you
responsible for the cost of repair or replacernent. Replacement of this line may be expensive --costing
you thousands of dollars in unforeseen expenses.,
This protection is available for eligible Serv–City homeowners.
$12,000 annually with multiple service calls for covered repairs
30 -day wait period with a money -back guarantee
Monthly Rate: $10.99
Property Address, Serv—Addressl
Serv—Address2
City- Serv-City * * * important * * *
Take action to help protect the buried sewer/septic line on your property. Complete and return the enclosed
form—remember to affix your address label—or call 1-888-300-5063 to accept this optionai coverage.
For fastest processing, please visit wwwg�W,c
DULaqs -orn-
_
Please respond before August 25, 2017.
Home Emergency Insurance solutions, Caltornia 7MM'T V'0A;V' 'JVIL ill �WiW1WV1Mj1Mjl
Merritt 7, 6th Floor, Norwalk, CT 06851, is an independent company separate frorn Contra Costa Water
District, and offers and administers this optional home protection plan as an authorized representative
of AMT Home Protection Company, 2200 Highway 121, Suite 100, Bedford, TX 76021, the protection
plan issuer. Your choice of whether to participate in this plan will not affect the price, availability or terms
of service from Contra Costa Water District, These materials have been paid for by Home Emergency
,�fi&%Lket - Page 155 of 235
��hmt�m | r���on��blmfor�
�o a hom�own�� you aoy oaupon�b�e for ths �zisio/
sevv-arc-epUoUn3 onyourpro�e��
Domzmnyhonmeom/ws�mmf;rovartrhiz?
K8osr basic homeowners insurance pc�io�sa du not cover
repair or replacement due to norme| wear and hymr cithe
exterior sewe,.r/smptiuline.
Who is eligible for coverage?
An owner ofboth m residential home permanently secured
to'the ground and the land itimlocated onmay beeligible for
coverage. Recreational vehicles or homes on wheels and
properties used for commercial purposes are not eligible for
coverage. Ybur property in not eligible if you are aware of
any pre-existing conditions, defects ordeficiencies with your
exterior sewer/septic line, or have had any roots removed
from your exterior aemenboptioline prior to enrollment. If
you live in a development community with a condominium,
co-op or homeowners aaaooiadon, your exterior sewer/
septic line may not be an individual homeowner's
responsibility, so please check with your association before
accepting this coverage.
What should 8know about this coverage?
What's covered, Coverage pruvidea, up to the benefit
amount, for the covered cost torepair orreplace aleaking
or permanently blocked sewer line, for which you have
sole responsibility, that takes wastewater away from the
external vva|i of your home to your utility's responsibility
(connection to the sewer main), or septic line that takes
wastewater away from the external vva|| of your home up
0othe point ofconnection tothe septic tank onyour property,
that is damaged due tonormal wear and tear, not accident
or negligence. Repair or replacement ufnon-functioning
grinder pumps isalso included.
Not covered. Septic tanks; leaching fields; any non-
conforming drain Hna, such as basement or storm drain;
consequential or incidental damoges, including any
damages necessary to nooeVneb|y access the repair area;
correction urupgrade where no operational failure has
occurred; repairs to any shared parts of the system or
those you are not solely responsible for; accidents and
damage or negligence caused by you, others or unusual
oiroumetonoae, including natural disasters. To see full
Terms and Conditions with complete coverage and
exclusion details prior to enrolling oo<l 1-888'300-5063 or
gutovmxxmCCVV[}pfano.com.
Page 7 of 37
eka¢o U]e doyyouYfonn Is prom*aoed, and lbene
inija3D-daywaidng period beforeyou can make o
memioZ5 oaU` �,Cjiving you 11 montha Of coverage during the
fns� y8@r Upon /ifopp|iuebk*>. you will
not. bemubjecttoev/a>Ungperiod.
What iathe cancellation poUicy?
You may cancel within 30days ofyour start date for afull
refund (or less any claims paid ifcancelled atany time after
raneweKreaotivation, where applicable). Cancellations
after the first 30 days will be effective at the end of the
then -current billing month, and you will be entitled to a
pro -rata refund |eom any claims paid (where applicable).
You may also contact Home Emergency Insurance
Solutions to cancel if you find your utility or municipality
provides similar coverage to You at no charQe, and you will
receive refund less any claims paid (where applicable).
What is the term ofmmyservice agreement?
Your coverage in based on an annual contract and is billed
on a bi-monthly basis. Your service agreement will be
automatically renewed annually onthe same payment
terms you selected atthe then -current renewal price.
What quality of repair can expect?
Lomal, licensed and insured plumbers perform all covered
pepoira, which are guaranteed against defects in materials
and workmanship for one year.
Who is Horne Emergency Insurance Solutions?
Home Emergency Insurance Solutions administers
Exterior Sewer/Septic Line Coverage as an authorized
representative of AMT Home Protection Company. It is
an independent company, separate from {}CVVD, providing
emergency home repair services and protection
solutions to homeowners across the U.S. CCVVD has
entered into an agreement with Home Emergency
Insurance Solutions to offer this program as an optional
service to CCVVD customers. Your water service will not be
affected in any way if you choose not to participate in this
program. If you would prefer not to receive solicitations
from Home Emergency Insurance So|udono, p|eeua call
1-888-300-5083.
F.
xn001002333415v00/n00000041,1981,2
January 4.2018Regular Board Meeting Agenda Packet ' Page 156nf235
homeownerEXPLAINED
As a you own to
sewer/septic ii t removes
wastewater r r home. "ou
are responsible for The reoair Ci tris line that runs on
your propel"f_y to your one. ``I Nie wear and tear,
cluoing fr_-e roots or s' -gifting ground, can Cause
sewer/septic line emergencies.
If your sewer/septic line fails,
finding help can be difficult and
time i A sewer/septic line
blockage or breakage can be complicated and
expensive to fix, viten requiring specia i7ed
quiomer itto ioC to he bioCl<,age incl repair rue ..ne.
"Or-tra G'osta'V'v'ater iplstric' is not res O Slbie for
repairs. /\nd basic homeowners insurance typicail,,
doesn't cove . L pairs due to non ad wear and tear to
'the exterior sevv'er/septic; line on your, prolperty, VOW
you can get optional coverage to proteC' yourself
from LI iecovered cost to re;Jall" or replace this line.
Your coverage benefits include:
® 24 -Hour Emergency Repair Hotline
® Priority Repair Status
® One -Year Guarantee on all covered repairs
Important Coverage Information: Eligibility: An owner of both a residential
home permanently secured to the ground and the land it is located on may be eligible
for coverage. Recreational vehicles or homes on wheels and properties used for
commercial purposes are not eligible for coverage. Your property is not eligible if
you are aware of any pre-existing conditions, defects or deficiencies with your exterior
sewer/septic line, or have had any roots removed from your exterior sewer/septic line
priorto enrollment. If you live in a development community with a condominium, co-op
or homeowners association, your exterior sewer/septic line may not be an individual
homeowner's responsibility, so please check with your association before accepting
this coverage. Benefit Details: Coverage provides, up to the benefit amount, for the
covered cost to repair or replace a leaking or permanently blocked sewer line, for which
you have sole responsibility, that takes wastewater away from the external wall of your
home to your utility's responsibility (connection to the main), or septic line that takes
wastewater away from the external wall of your home up to the point of connection to
the septic tank on your property, that is damaged due to normal wear and tear, not
accident or negligence. Repair or replacement of non-functioning grinder pumps is also
included. Not covered: Septic tanks; leaching fields; any non -conforming drain line,
such as basement or storm drain; and damage from accidents, negligence or otherwise
caused by you, others or unusual circumstances. Additional exclusions apply. Making a
Service Call: Your plan starts the day your form is processed, and there is an initial 30 -
day waiting period before you can make a service call, giving you 11 months of coverage
during the first year. Upon renewal/reactivation (if applicable), you will not be subject
to a waiting period. Cancellation: You may cancel within 30 days of your start date for
a full refund (or less any claims paid if cancelled at any time after renewal/reactivation,
where applicable). Cancellations after the first 30 days will be effective at the end of the
then -current billing month, and you will be entitled to a pro -rata refund less any claims
paid (where applicable). You may also contact Home Emergency Insurance Solutions
to cancel if you find your utility or municipality provides similar coverage to you at no
charge, and you will receive a refund less any claims paid (where applicable). Renewal:
Your coverage is based on an annual contract and is billed on a bi-monthly basis
through your utility bill. Your service agreement will be automatically renewed annually
on the same payment terms you selected at the then -current renewal price.
To see full Terms and Conditions with complete coverage and exclusion details prior
to enrolling call 1-888-300-5063 or go to www.CCWDplans.com. Home Emergency
Insurance Solutions, with corporate offices located at 601 Merritt 7, 6th Floor,
Norwalk, CT 06851, administers Exterior Sewer/Septic Line Coverage as an authorized
representative of AMT Home Protection Company, 2200 Highway 121, Suite 100,
Bedford, TX 76021. It is an independent company, separate from CCWD, providing
emergency home repair services and protection solutions to homeowners across the
U.S. CCWD has entered into an agreement with Home Emergency Insurance Solutions
to offer this program as an optional service to CCWD customers. Your water service
will not be affected in any way if you choose not to participate in this program. If you
would prefer not to receive solicitations from Home Emergency Insurance Solutions, o
please call 1-888-300-5063, m
a
Ott ,�:, li,�:' O
Packet - Page 157 of 235
Tame the Worry Out of Repairs
Local, Licensed and Insured Contractors
24 -Hour Emergency Repair Hotline
The illustration shows the exterior sewer line that is your responsibility as a homeowner. Also shown are repairs
that are performed on this line and how much a licensed and insured contractor would typically charge a
homeowner for repairs. How would you cope if it happened to you?
With optional Exterior Sewer/Septic Line Coverage from Home Emergency Insurance Solutions, it's not
something you have to worry about; you'll benefit from a priority response and no bill to pay for covered
repairs, up to $12,000 per year. z
PROPERTY
BOUNDARY
I
Coverage also includes the septic line, from the external wall of
your home up to the point of connection to the septic tank on
your property. Septic tanks and leaching fields are not covered.
(National average repair costs as of January 2016. No charge
for covered repairs up to your annual benefit amount.
Replace sewer/ Replace collapsed Unblock sewer/
septic line $3,929 section of sewer/ septic line $238
Plan Members; septic line $19249 Plan Members:
NO CHARGE$ Plan Members: NO CHARGE$
NO CHARGE*
Sign us ,
Exterior Sewer/
Septic. Line
Coverage
Help protect your finances with coverage
for the service line that removes �r -asa teF atFN
from your home,
For just $10.99 per month, you can ensure that
sewer/septic line protection is just one phone
call away.
With coverage you receive:
NO ILLS TO PAY FOR COVERED EPAIR�
® Don't pay any bills for covered repairs to loc:at(..
repair and replace your service line, up to
$12,000 annually (30 -day wait period witl-i a
money -back guarantee).
• You can make multiple service calls per ye r, ul-,
to your annual benefit amount.
24-HOUR, 365 DAY® ®YEAR Erb y LIIIF.
® 24-hour Emergency Repair Hotline is avmh Flo to.
you 365 days a year:
• Priority response—an insured contractor will 1),
dispatched promptly to your home.
• Enjoy professional, reliable assistance t on i a
locally licensed and insured contractor
30—DAY EY® ACK GUARANTEE
Accept Exterior Sewer/Septic Line Coverage an_;,
if in the first 30 days you decide that this (;ovt'r tgii
is not for you, you can cancel and receive a
complete refund.
ONE-YEAR UA A °TEE
All covered repairs are guaranteed for one ft ill y(, ,r
against defects in materials and workmanship.
a
m
a
0
0
0
0
0
d
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Page 10 of 37
AC_'_.�CEPTANCE FORM
Please correct name and address informa len below, if necessary, before subrnirtimg.
By providing my mail address I requesi that my curren'' a, T,, d ;a�urc- contracts anc i any re._ied documents be dS]!,/ersd Dytrsil and edge tnst I can
access these documents. I may request a paper copy of my contract or any related documents, end electronic delivery or uc' to rry e - real s,dd ess by simply
calling 1-lome Emergency Insurance Solutions.
X11
YES, please sign me up for Exterior Sewer/Septic Line
s Coverage from Dome Emergency Insurance Solutions and
Q include the $10.99 monthly charge, plus any applicable tastes,
on my Contra Costa Water District bill. I understand that this
optional coverage is billed on a bi-monthly basis and based on
an annual contract that will be automatically renewed annually
1< at the then -current renewal price. I have the option to cancel
this contract at any time without additional cost to me by calling
° 1-888-300-5063. 1 agree Contra Costa Water District may share
o my data, including my account number, with Dome Emergency
Insurance Solutions to process enrollment and billing. I confirm
that I am the homeowner and have read the information in this
m package and meet the eligibility requirements for this coverage.
0
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PHONE:
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OR ACCEPT C VERAG 0? L1Ntr. AT
January 4, 2018 Regular Board Meeting Agenda Packet - Page 159 of 235
8f251201.7
t
at
PLEASE REPLY BY
A
REFERENCE NUMBER
January 4, 2018 Regular Board Meeting Agenda Packet - Page 159 of 235
Exterior Severer/Septic Lire Coverage for Pleasant Hill., CA
The buried sewerlseptic line on your property that carries waste away fern your Borne can age, crack or leak due to
simple wear and tear, tree roots or shifting ground. This lime can also get blocked and cause waste water to backup
into your hare_ Most basic nomeowners insurance doesn't cover repairs to this line and as a homeowner, you could
face expensive repair or replacement costs -
VV ith
osts_
With a repair plan from Horne Emergency Insurance Solutions, you can get protection from time-consuming and
expensive repa ifs. Exterior Sewer/Septic lime Coverage includes the emergency breakdown costs of repairing a
clogged sewer line, collapsed sever line section arrdlor a clogged septic line up to the annual benefit amount_
fn partnership \wAh: a"Al, CONTRA COSTA
Contra Costa Water District WATER DISTRICT
Replacement of a sewer/septic line
can cost thousands of dollars_$
9your sewer/septic lire fails, it can ca,ise:
cloggedlbacked up drains inside your home
,, sewage flooding in yourbasernent
,L.. sewage backed up in your yard
As a sewer/septic line ages, n becomes even
more likely to leak, clog or break_ Be ready for the
unexpected with a repair plan from HomeServe
USA aDd keep what's underground covered with
access to our 24/7 hotline where you can
schedule a repair#or your exterior sewer/septic
Cine.
k] Terms & Conditions
Hover to learn more
January 4, 2018 Regular Board Meeting Agenda Packet - Page 160 of 235
ONLY $10.99/month
-or- Continue Shopping >
Your plan includes:
* 512,0 DG annual benefit amount
* 30 -day wait period with a money -back guarantee
* MuRiple service calls
Aka* k'6- CONTRA COSTA
WATER DISTRICT
arr�rr.�o
1331 Concord Avenue
P.O. Box H2O
Concord, CA 94524
(925) 688-8000 FAX (925) 688-8122
www.ccwater.com
Directors
Joseph L. Campbell
President
Karl L. Wandry
Vice President
Bette Boatmun
Lisa M. Borba
John A. Burgh
Jerry Brown
Genera! Manager
April 21, 2011
Mr. Peter Buttrick
HomeServe
750 E. Main Street
Stamford, CT 06902
Page 12 of 37
Via FedEx
Subject: Marketing Agreement between Contra Costa Water District and
Home Service USA Corp. - Dated April 20, 2011
Dear Mr. Buitrick:
The above referenced agreement has been fully executed and an original is enclosed
for your files.
If you have any questions, please contact Dom DeBellis at (925) 688-8059.
Sincerely,
Donna M. Grimes
Administrative Secretary
Idmg
Enclosures
January 4, 2018 Regular Board Meeting Agenda Packet - Page 161 of 235
Page 13 of 37
HOMESERVICE USA CORP. MARKETING AGREEMENT
This Marketing Agreement, commences and is effective as of the "Effective Date" set forth on the
signature page and is between Home Service USA Corp. dba HomeServe, a Pennsylvania
corporation ("HomeServe"), and the Contra Costa Water District ("District') both with offices
located. as set forth in Part Two - Exhibit D (together "the Parties"). Terms used as defined
terms that are not defined have the meanings used in Exhibit A hereto.
HomeServe is in the business of providing residential emergency repair products and services for
domestic infrastructure and related systems for the home and property directly and through
independent contractors and has invested, and will in the future invest, significant resources in
the development of the Program. District is the provider of water services and complementary
services to approximately 50,000 residential households in the Contra Costa County, area of
California. District wishes to engage HomeServe to offer Exterior Residential Service tine
("ERSL") Product to' its Customers. In consideration of the foregoing and the mutual covenants
contained in this Agreement, The Parties agree as follows:
1. Exclusive Appointment. District grants to HomeServe the exclusive right during the Term,
to sell, administer and operate the ERSL Product to Customers in the Treated Water Service
Area. In addition, during the Term, District shall not itself or through any affiliate, and it shall not
contract with, represent or associate with any other person in the marketing, promotion or sale of
any exterior residential service line product to Customers in the Treated Water Service Area that
is the same as, comparable to, or which otherwise would compete with, the Product or the
Program. HomeServe agrees that it will not market or promote to Customers in the Treated Water
Service Area any other products using District Marks unless the Customer specifically requests it
on the application form, or without the express written consent of the District.
2. Specific Obligations of the Parties. Certain specific obligations of the Parties are set out at
Exhibit B to this Agreement.
3. Intellectual Property; Customer Data; Member Data and Customer Agreement
Ownership.
3.1 District grants to HomeServe the right to use District Marks that are identified on
Exhibit C and all other customer facing brands and Marks that District uses or adopts
from time to time, present and future ("Marks") for the operation of the Program and the
administration of the ERSL Product during the Term of this Agreement. To the extent
District performs any marketing and sale activities of the Product in the Territory as
permitted by this Agreement then HomeServe grants to District the right to use
HomeServe's Marks that are identified on Exhibit C ("HomeServe Marks") for such
purpose during the Term of this Agreement. Goodwill generated by use of the Marks
shall inure to the owner or licensor (as applicable) of such Marks. Both Parties agree
not to use the Marks in a way that brings or is likely to bring the other into disrepute, to
market other Products or services without the owner's prior written consent and
authority, and no Party shall claim any right, title or interest in the other's Marks. Marks
must be used in accordance with Exhibit C.
3.2 Notwithstanding Section 11, HomeServe shall not be required to recall or amend any
Customer Agreements or marketing material in force or circulation at the termination of
this Agreement solely to remove references therein to District or its Marks.
3.3 All documentation (and any related intellectual property) relating to the Products and
the Program as operated by HomeServe shall remain the property of HomeServe.
3.4 Except when District is assisting HomeServe with Member billing and collection, District
shall not provide Customer Data to HomeServe for use by HomeServe in furtherance of
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-2-
the advertisement, promotion and operation of the Program and the advertisement,
marketing, sale and administration of any additional Product. As between the Parties
Customer Data (to the extent it does not become Member Data) is the exclusive
property of District.
3.5 Member Data is the sole and exclusive property of HomeServe. HomeServe shall be.
under no obligation to provide Member Data to District. District has no rights in
Member Data (to the extent it is not Customer Data). Only HomeServe shall be entitled
to use the Member Data to offer a renewal on expiry of each Customer Agreement,
subject to compliance with Section 4. Customer Agreements are the sole and
exclusive property of HomeServe and District has no rights therein.
4. Compensation To District. In consideration of the District's obligations hereunder,
HomeServe shall pay a Net Commission to District. The Net Commission shall be paid as to all
periods during the Term and, if District performs billing services as provided in Section 5 then it
shall also be paid during the Run Off Period. The term "Net Commission" shall mean10% of the
payments actually received from Members ("Customer Agreement Fees) under any new or
renewing Customer Agreement, net of any discount, rebates, refunds or sales tax paid; will be
paid to District.
5. Member Billing and Payment Responsibilities
5.1 District shall bill Members for Customer Agreement fees by line -item charge on
the bi-monthly bill. District shall advise HomeServe of Members who do not make payment in a
timely fashion and HomeServe may in its sole discretion terminate the Customer Agreement for
any Member that fails to pay as HomeServe determines. On or before the 15th day of each
calendar month District shall provide a Commission Statement to HomeServe. The Commission
Statement shall be accompanied by payment to HomeServe of an amount equai to the Customer
Agreement fees collected by District, less the Net Commission due for that month. HomeServe
shall have the right, upon at least 10 days prior notice and during normal business hours, at its
cost, to audit and inspect District's records relating to billing and payment made pursuant to this
Agreement subject to any District's safety and security requirements and procedures.
5.2 If District does not provide billing services as described in Section 5.1 above,
HomeServe shall bill Members Customer Agreement Fees in accordance with HomeServe
normal practices and may, in its sole discretion and to the extent permitted by t_aw, deliver
reminder statements, employ other payment collection methods, or terminate the Services for any
Member that fails to pay as HomeServe determines. HomeServe shall submit to District each
month, by the 15�h of the month, a Commission Statement of the Net Commission due from
Members for the previous month for each month during the Term and for any period that Net
Commissions are owed hereunder. This shall be accompanied by payment of the Net
Commission. District shall have the right, upon at least 10 days prior notice and during normal
business hours, at its cost, to audit and inspect HomeServe records for the limited purpose of
confirming amounts due it under this Agreement subject to any HonieServe safety and security
requirements and procedures.
6. Confidential Information.
6.1 Each Party and its affiliates ("Recipient") shall keep secret and confidential the
Confidential Information of the other Party and its affiliates ("Discloser') that is
disclosed or obtained pursuant to this Agreement and shall protect such information
with at least the same security measures and degree of care as it would in respect of
January 4, 2018 Regular Board Meeting Agenda Packet - Page 163 of 235
Page 15 of 37
its own Confidential Information and shall use such Confidential Information only for
purposes of this Agreement. Recipient shall not disclose Discloser's Confidential
Information except to those employees, directors, officers, employees and consultants
("Representatives") who need access to such information to effectuate this Agreement
and where such disclosure is made, shall do so subject to the confidentiality obligations
herein. Recipient is responsible for the acts or omissions of its Representatives to
whom disclosure is made. If Recipient is required by any legal process to disclose
Confidential Information of Discloser, it shall give Discloser prompt notice thereof so
that Discloser may seek a protective order or other appropriate relief.
6.2 This Article 6 of the Agreement shall remain in effect with respect to any particular item
of Confidential Information until Recipient can document that it falls into one of the
exceptions stated in definition (except for trade secrets, which shall be held in
confidence for so long as they are protected under applicable law as trade secrets).
6.3 Notwithstanding the provisions of the preceding subsections 6.1 and 6.2, District is
required to comply with the California Public Records Act. In the event that District
receives a request under the California Public Records Act for any Confidential
Information received from HomeServe, District shall promptly notify HomeServe of
such request prior to release of such information so as to enable HomeServe to seek
court order protecting such information from disclosure. It is understood that District
cannot withhold information beyond the legal timeframe required for responding to a
Public Records Act request.
7. Representations and Warranties. Each Party represents and warrants to the other that (i) it
has the full power and authority to enter into and perform under this Agreement; and (ii) there are
no agreements or commitments or Law that would prevent it from carrying out its obligations.
8. Indemnification. Each Party ("Indemnitor") shall indemnify, defend and hold the other Party
and its affiliates ("Indemnitees") harmless from and against all Losses suffered by the
Indemnitees as a result of (i) any breach by Indemnitor of any of its representations, warranties or
covenants herein; (ii) any negligence, gross negligence or wrongful and intentional conduct by
Indemnitor in connection with this Agreement or (iii) any threatened or actual claim that the Marks
furnished by the Indemnitor under this Agreement infringes on any third -Party trademark, service
mark, or other intellectual property right or similar right..
S. Disclaimer; Limitation of Liability. EXCEPT AS PROVIDED HEREIN AND TO THE
FULLEST EXTENT PERMITED BY LAW, NEITHER PARTY MAKES ANY WARRANTY
REGARDING THE PRODUCTS OR THE PROGRAM, OR ITS PERFORMANCE UNDER THIS
AGREEMENT AND ANY IMPLIED WARRANTY IS EXPRESSLY DISCLAIMED. THE ONLY
WARRANTIES ARE AS SPECIFICALLY PROVIDED HEREIN. THE MAXIMUM AGGREGATE
LIABILITY OF HOMESERVE ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT
WHETHER FOR NEGLIGENCE, BREACH OF CONTRACT OR OTHERWISE SHALL BE TWO
MILLION DOLLARS. NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT,
CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR INCIDENTAL DAMAGES, INCLUDING LOST
REVENUES OR LOST PROFITS HOWSOEVER CAUSED. The preceding sentence shall not
apply to such damages as may be asserted by a third party that are covered by Section 8,
Indemnification.
10. Term and Termination. This Agreement shall commence as of the Effective
Date and shall continue for a period of three (3) years from the Mailing Date ("Initial Term") with a
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-4-
mutually agreed option to renew for one additional two (2) - year term (`Renewal Term") (unless
terminated early in accordance with this Section 10). Either Party may terminate this Agreement
immediately by written notice to the other where: (a) the other commits a material breach of the
Agreement that is either incapable of remedy or, where capable of remedy, the Party so in breach
fails to remedy that breach within 45 days of being so notified of it; or (b) the other Party
experiences an Event of Insolvency. For purposes of the preceding sentence, the failure of
HomeServe and/or its subcontractors to strictly comply with the "Specific Obligations and
Agreements of the Parties" attached hereto as Exhibit B and/or "Contra Costa Water District
Terms and Conditions for Work Scope" attached hereto as Exhibit I, including without limitation
the response times and Service Standards set forth therein, shall comprise a material breach of
this Agreement. HomeServe may terminate this Agreement effective upon notice to District if the
acts or omissions of District (or its employees, agents or subcontractors) cause HomeServe to
suffer any fine or other disciplinary process from any regulatory authority or if, due to the
imposition of any rule or regulation by a regulatory authority, the continued operation of the
Program would have a material and adverse financial or business impact on HomeServe.
11. Effect of Termination. Upon termination of this Agreement (and subject to Section 3.2): (a)
each Party shall, at the other's option, return or destroy, (and provide a written declaration of such
action), all materials bearing the Marks and Confidential Information of the other Party; (b) neither
Party shall hold itself out as being associated with the other; and (c) the Parties shall continue as
to billing and payment to the extent provided on Exhibit B. Termination shall be without
prejudice to the rights and obligations of the Parties accrued prior to termination and shall not
affect the operation of any. provision of this Agreement that is intended to survive termination.
12. Insurance. Each Party shall maintain for the Term and for a period of 1 year thereafter, at its
cost and with reputable insurers, comprehensive general liability insurance and such other
insurance that is reasonable and appropriate for the nature and extent of the business carried on
to cover its risks and potential liability hereunder.
13. Miscellaneous.
13.1 The Parties shall be independent contractors and neither Party has the right to incur
any liability or obligation (express or implied) or act in the name of the other.
13.2 Neither Party shall assign the benefit, or delegate the obligations of this Agreement to
any third party without the prior written consent of the other; except that (a)
HomeServe may assign and delegate its obligations hereunder to subcontractors, so
long as HomeServe remains primarily liable under this Agreement; (b) HomeServe may
assign and delegate its rights and obligations hereunder in connection with a sale of all
or substantially all of it business to a third party that is of comparable financial stability
and capability as HomeServe as reasonably determined by District; and (c)
HomeServe may assign and delegate its rights and responsibilities hereunder to an
affiliate of HomeServe.
13.3 No failure or delay to exercise rights hereunder shall operate as a waiver and no single
or partial exercise of such rights shall preclude any other or further exercise thereof.
This Agreement (together with the contents found in all Exhibits is the entire Agreement
between the Parties and supersedes any previous agreements between the Parties
relating to the same.
13.4 if a provision of this Agreement is held by any court or competent authority to be illegal
or void (in whole or in part), then such provision shall be excluded, and the remaining
provisions shall be interpreted as if such provision were excluded.
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13.5 This Agreement, and the rights and obligations hereunder, shall be governed by and
construed in accordance with the laws of California. The Parties submit to the exclusive
jurisdiction of the Federal and state California courts to resolve all disputes under this
Agreement and consent to service of process in any manner permitted by those courts.
Notwithstanding this, prior to commencing any proceedings in any such court, the
Parties shall use their good faith efforts to resolve any dispute under this Agreement by
negotiation for a period of at least 30 days; which negotiation shall involve senior
management of each Party. Notwithstanding this, neither Party shall be precluded from
immediately applying for injunctive or other equitable relief before a court of competent
jurisdiction and nothing herein shall affect a Party's right to terminate this Agreement
13.6 Notices and communications that are to be given under this Agreement shall be in
writing and delivered to the Parties at the addresses specified at Part Two Exhibit D.
13.7 A Party shall not be held to be in breach of this Agreement by reason of Force Majeure.
The nonperforming Party shall be excused from performance while the event continues
provided that it takes all reasonable steps to resume full performance as soon as is
practicable. Force Majeure shall not entitle a Party to withhold or delay payment.
13.8 This Agreement may be varied, modified or altered only by written agreement duly
signed by both parties. This Agreement and any such written amendment may be
executed in counterparts.
13.9. After expiration or termination of this Agreement, those provisions that specifically
provide for survival beyond expiration or termination, and all provisions, if any,
regarding indemnification, warranty, limitations of liability, and confidentiality shall
survive indefinitely or until the expiration of the time period specified elsewhere in this
Agreement with respect to the provision in question.
13.10 This Agreement shall not confer any rights or remedies upon any person other than the
Parties and their respective successors and permitted assigns.
13.11 Each of the undersigned individuals represents and warrants that he or she is
expressly and duly authorized by his or her respective entity to execute this Agreement
and to legally bind such entity as set forth herein.
13.12 The Parties agree that they have participated jointly In the drafting and negotiation of
this Agreement and that the language of this Agreement shall be construed as a whole
according to its fair meaning and no presumption or burden of proof favoring or
disfavoring either Party will exist or arise by virtue of the authorship of any provision
hereof.
13.13 Neither Party may issue any press release relating to the subject matter of this
Agreement without the prior written approval of the other Party.
[remainder of page intentionally left blank - signature page to follow]
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�M
SIGNATURE PAGE TO MARKETING AGREEMENT
IN WITNESS WHEREOF, the Parties hereby enter into this Marketing Agreement as of the
Effective Date written below as a legally binding agreement.
EFFECTIVE DATE OF THE AGREEMENT: a I o nil
CONTRA COSTA WATER DISTRICT:
APPROVED .Ap TO YORM
iii—STIR-TET ET CQi Sir,
HOME SERVICE USA CORP.
By: .
Name/Title:
Date: t
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EXHIBIT A
Definitions
"Commission Statement"
means a statement produced by the Party collecting payments from Members which
includes a reasonably detailed calculation of the Net Commission payable for the
applicable month and is otherwise on such form and with such content as the Parties
agree.
"Confidential Information"
means any nonpublic information of a Party or its affiliates, Including the terms of any
agreement between the Parties, and any trade secrets, technical, business, sales and/or
marketing Information, Customer and Member and potential Customer and potential
Member lists and identities, Product and Member claims information, sales plans,
inventions, developments, know-how, methods, techniques, formulae, data, and
processes, whether or not protectable under Law, and any other information marked as
Confidential Information, which is shared between the Parties in any medium. Confidential
Information does not include information which: (i) is in the possession of the Recipient at
the time of disclosure; (ii) prior to or after the time of disclosure becomes part of the public
domain, not as a result of any inaction or action of the Recipient; (iii) Is approved for
release by the Discloser in writing; (iv) is received without restriction from a third Party that,
to the best knowledge of the Recipient, did not have an obligation of confidentiality to the
Discloser or v was independently developed by Recipient.
"Contractor"
If retained or dispatched by HomeServe, has the same meanie as "Subcontractor' below
"Customer"
means any person who is a homeowner or tenant of a residential property to which District
supplies District and/or other services.
"Customer Service"
means, without limitation, providing accurate information pertaining to the Program,
providing HomeServe's toll free number, providing assistance with completion of a
Customer Agreement application and to Customers requesting Service(s) under a
Customer Agreement.
"Customer Data"
means the name, postal address, residential telephone number, account number or unique
identification number, and, if available, email address of Customers.
"Event of Insolvency"
means circumstances in which a Party has a receiver or similar person appointed for its
property, becomes insolvent, ceases to do business, makes an assignment for the benefit
of its creditors or files a petition under (or is the subject of an involuntary petition in)
bankruptcy or undergoes a similar event).
"Exterior Residential Service
means coverage for the cost of repair and/or replacement of the Customer's water service
Line Product"
line from the meter to the house, as well as labor and materials to complete all repairs
and/or replacement.
"Force Majeure"
means, but is not limited to, an act of God, delay in transportation, fire, flood, earthquake,
storm, war, act of a public enemy, act of terrorism, civil commotion, telecommunications
failure, a change in any Law or other action by any public authority, or any other matter
reasonably beyond such Party's control and not due to the ne li ence of such Party.
"Law"
means any federal, state or local law, statute or ordinance and also any rule, regulation or
order issued by any governmental authority.
"Loss" and "Losses"
means all damages, losses, claims, demands, suits, actions, expenses, costs and
liabilities, however described or denominated but shall not include the portion of any such
loss, liability, diminution in value, cost or expense that could have been avoided through
commercially reasonable efforts to mitigate by the Party incurring the Loss.
"Mailing Date"
means the date on which the first advertising or marketing material Is mailed or published
under this Agreement.
"Marks"
means the trademarks, service marks, names and logos as set out at Part Two Exhibit C,
as amended from time to time.
"Member
means any Customer to whom a Customer Agreement is issued.
"Member Data"
means the name, address, residential phone number of a Member and all other
Information about a Member obtained by or through HomeServe under this Agreement.
"Prevailing Wages"
Prevailing wages are administered by the State of California Department of industrial
Relations and defined in Section 16100 of the Code of California Regulations, Title 8,
which is attached as Exhibit G.
"Products"
The initial Products are listed on Exhibit B.
"Program"
means the exterior residential service line services offered to Customers in the Territory.
"Services"
means the emergency repair service performed for a Member pursuant to a valid and in
force Customer Agreement.
Subcontractor
Means a plumbing contractor (and its technician employees) within HomeServe's
Subcontractor Network
"Customer Agreement"
means the agreement for a Product between HomeServe and Member, the terms of which
shall be determined py HomeServe from time to time.
"Third Party"
means any person who is a homeowner of a residential property to which District does not
supply District services in Territo
"Treated Water Service
Means the territory identified in Part One Exhibit D,
Area"
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Page 20 of 37
EXHIBIT B
Specific Obligations and Agreements of the Parties
1. bistrict Obligation . District shall facilitate the Program and the promotion, marketing
and sale of the Product to Customers within the Treated Water Service Area. District shall:
1.1.1 provide such assistance as is necessary to enable HomeServe to provide the
ERSL Product using District's name and Marks (defined below);
1.1.2 provide production and approval to the marketing, advertising and sale of the
ERSL Product and assist with training District's staff with regard to Customer
Service matters; and
1.1.3 to the extent permitted by Law, include HomeServe advertising for the marketing
and sale of the ERSL Product in mailings to Customers and provide HomeServe
with Customer Data to facilitate billing and collection; and
1.1.4 if providing billing services under Section 5 of the Agreement, use commercially
reasonable efforts to assist in the implementation of any changes to the Term
and Conditions or Customer Agreement l=ees charged to Members.
2. HomeServe Obligations. HomeServe:
2.1.1 shall monitor compliance by its contractors and employees with HomeServe's
regularly established service standards as in effect from time to time; and shall
cause such persons to perform all services to Members in a competent and
courteous manner. If any Subcontractor performs work under the Agreement for
which the general prevailing wage has been determined by the Director of the
Department of Industrial Relations, consultant or subcontractor shall pay the
prevailing wage for such work and shall comply with all applicable provisions of
the California Labor Code Section relating to public works (Section 1720 ).
2.1.2 shall provide District with a quarterly performance summary (Exhibit J);
2.1.3 shall use commercially reasonable efforts to ensure that adequate financial and
human resources are available for the operation of the Program;
2.1.4 shall. conduct the Program, administer the Customer Agreements and sell the
ERSL Product in accordance with Law;
2.1.5 may engage subcontractors, outside vendors, insurers and consultants to
perform any of HomeServe's obligations hereunder, including, but not limited to,
any claims handling responsibilities. HomeServe shall be permitted at its sole
discretion to change the obligor for insurance purposes on the Customer
Agreements, but must ensure that any subcontractor, outside vendor, insurer and
consultant performing any services on behalf of HomeServe must demonstrate
and provide the same level of insurance coverage noted in Section 12 of the
Marketing Agreement; and
2.1.6 may, subject to the approval -of the District, adjust the rates charged to Members
for"coverage under the. Program (in accordance with Customer Agreement terms
and conditions) by an amount;not to exceed 3.5% per year, or if not increased on
a per year'basis, the rates may be increased on a cumulative basis not to exceed
10% at the end' of:the:Term; rop vided that:HbmeServe's;rate increases shall not
coincide with the District's rate increases for treated water delivery within: its
service area nor may HomeS.erve give customers notification of a.: rate increase
during the 60 days prior to or following the effective date of District's rate
increases for treated water delivery within its service area; and HomeServe shall
January 4, 2018 Regular Board Meeting Agenda Packet - Page 169 of 235
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M
establish and may, subject to mutual consent by District, change the terms and
conditions of the Customer Agreements.
2.1.7 Compliance with Laws and Regulations. In the performance of the Agreement,
HomeServe will require that all contractors that it dispatches to perform
residential service line repairs under this Agreement comply with all applicable
laws, statutes, ordinances, rules and regulations whether Federal, State or local,
and it shall ensure that all contractors pay prevailing wages for the area in which
the work is performed, and comply with the CCWD Contractors Safe Practices
Handbook at all times when present on CCWD customer property or at the site(s)
of public works being installed, altered, repaired or removed. HomeServe shall
review its contractors' compliance with this prevailing wage requirement on an
annual basis, and shall provide documentation supporting the payment prevailing
wages by its contractors in response to the District's requests. In the event that it
is determined that a contractor is not paying prevailing wages or otherwise is not
operating in accordance with its contract with Home Serve, HomeServe shall
cease to dispatch that contractor, and shall forthwith remove that contractor from
the pool from which contractors are drawn, to perform residential service line
repairs under this Agreement. Without limitation upon any other provisions of
this Agreement, HomeServe's failure, in accordance with the preceding
sentence, to timely remove a contractor from the pool from which contractors are
drawn to perform residential service line repairs under this Agreement shall
comprise a material breach of this Agreement.
3. Additional Responsibilities of the Parties.
3.1 The Parties shall attend such meetings as are agreed between the Parties from time to
time and shall each designate a management employee to serve as the contact person
with the other Party for all activities under this Agreement.
3.2 The Parties shall market the ERSL Product in accordance with a marketing plan to be
prepared by HomeServe and agreed to by District ("the Marketing Plan") and the
provisions of Part One Exhibit C.
4. The Product offered under this Agreement are as follows:
Exterior Residential Service Line
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- i0 -
Exhibit C
Marketing/Marks
Part One: Marketing
HomeServe will be permitted (at its discretion) to dispatch to Customers through the
District at least four (4) direct mailings in year one and three (3) direct mailings per year
in years two and three and during each year of the Renewal Term, if applicable,.
HomeServe will work with District staff to provide pre -packed marketing materials for
direct mail to Customers pre -approved by the District, such reference to be in the form at
Exhibit E attached hereto (or such other form as may be proposed by HomeServe and as
acceptable to the District); once said marketing materials are agreed by both Parties,
District will provide HomeServe with an estimated production cost. The District shall
attach address labels, which it shall provide, and will be responsible to mail all such
materials within seven (7) days of the approved date, with HomeServe reimbursing the
District for all production and postage costs incurred in said mailing and production costs,
should District produce said marketing materials. After production is complete,
HomeServe shall have the right of final approval before materials are dispatched to
Customers.
2. Marketing materials to be delivered by District to Customers are subject to approval by
HomeServe, provided that in all cases approval shall be deemed given unless
HomeServe objects (in reasonable detail) to any proposed marketing materials within 10
days of receiving the proposed marketing materials.
3. HomeServe agrees to reimburse District for the actual costs it incurs in providing
assistance pursuant to paragraph 1.
4. District will provide HomeServe with a link from District's web site to HomeServe web site
as a convenience to Customers.
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-11-
Part Two: Marks
District Marks:
HomeServe Marks:
HomeServe
HomeServe USA
Home Service
Horne Service USA
HomeServe USA
Specific Requirements on Use of District Marks:
Specific Requirements on use of HomeServe Marks:
Red
PMS 186U, PMS 186C
C = 0, M = 100, Y = 81, K = 4
R=100, G=O, B=53
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Exhibit D
Part One: Territory
Any single-family residential Customer in the District's Treated Water Service Area.
Part Two: Notices
HorneServe
District
HomeServe USA Corp.
750 East Main Street, Suite 850
[insert details]
Stamford., CT 06902
Contra Costa Water District
Attention: Chief Executive Officer
Fax: (203) 363-0727
1331 Concord Ave.
Email: jonathan.king@homeserveusa.com
Concord CA 94520
Attn: Dominic DeBellis
Office: 925-688-8059
Fax 925-688-8122
January 4, 2018 Regular Board Meeting Agenda Packet - Page 173 of 235
Page 25 of 37
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Exhibit E
Samples of marketing materials
CONTRA COSTA
WATER DISTRICT
----------------------------------------
---------------------------------------
January 4, 2018 Regular Board Meeting Agenda Packet - Page 174 of 235
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CONTRA COSTA
WATER DISTRICT
From the desk of'.
Jerry Brown
General Manager
Contfa Costa Water District
An important message for Contra Costa Water District customers.
At Contra Costa Water District, we value our customers, which is why we are
passing along the enclosed information about how to protect yourself from repair
costs associated with an exterior water service line failure. Repairs to this line are
your financial responsibility as the homeowner. However, as a Contra Costa Water
District customer, you are eligible to enroll in Exterior Residential Water Service
Line Insurance offered by Home Emergency Insurance Solutions.
Please take some time to read the enclosed information, and if you have any
questions about this protection, please coil toll-free 1 -XXX XXX XXXX.
Jerry Brown
General Manager
Contra Costa Water District
g$pp017 �ItraC ta�RkiN 1
January 4, 2018 Regular Board Meeting Agenda Packet - Page 175 of 235
99'11 915AJA
Page 26 of 37
Page 27 of 37
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Important Information for Water Customers
h, & C.OPIr`t'a CW[A icla�et� �?isf�ric
Respond by: Month XX, 2011
Re: Exterior Residential Water Service Line Insurance Available to Residential Customers
Dear Customer.
This letter contains important information about your responsibilities as a homeowner in the event of an
emergency with your exterior water service line.
The exterior water service line that runs under your property from the Contra Costa Water District fCCWDi
service connection to your home is your responsibility as the homeowner. If you were unfortunate enough
to suffer a break or burst in this line, it would be up to you to find a plumber and to get the teak repaired.
Because CCWD wants its customers to have the best possible service in the case of a water service line
emergency, they are working with Home Emergency Insurance Solutions to offer customers a new
service —Exterior Residential Water Service Line Insurance. For less than $5 a month, this service will
provide you with 2417, 365 -day -a -year emergency repair service for your exterior water service line.
With coverage, a qualified plumber will be dispatched to your home and we will pay the bill directly.
YOUlt receive up to $3,000 of coverage per service call up to a total of four service calls per year. There
are no deductible or bills to pay for covered repairs.
If you would like to sign up for this program, simply complete the attached form below or call toll-free
1 -XXX XXX XXXX. Your satisfaction is importentto us, which is why you'll receive a 30 day risk free
review period during which you can cancel at any time.
I certainly slope that your never have an exterior Water service line emergency, but if you should ever have
a problem, you'll be glad youPre covered with Exterior Residential Water Service Line Insurance.
Sincerely,
/N�
Nell Grant
Vice President
Rome Emergency Insurance Solutions
CA Lir. #i1F78117
Home Emergency Insurance Solutions, an Independent company separate from Contra Costa Water District, is
offe€ing this optional insurance. This insurance policy is underwritten by Wesco Insurance Company. All services
are performed by a licensed and insured independent contractor.
Rome Emergency Insurance Solations California Insurance License #:0F78326
See reverse for plan details.
YES, I went to purchase Exterior Residential Water Service Line Insurance.
I auAt �nw the 57.95 —111y hwoe to be induded in try C,",. Coda Waer Ci9ria blit, l undastrr 13hSYVesw InwsaF7 Cvnperry wal aenew-"`10' y
K the end d its term unless a nolle! a ncnranews is Smt to rrle as required by gliiun€a IaN, and i will m8;e bismnhlly psym nlsvla ny —lar bAl Imtil I
cartel my o7ver ae by ord3ing the to!Rrea nwmber in try membership mi>-r€9s, cr nW average Is other yvisa tercninaed i u iemtwrd Iha his mvera3e I5
opftnr g andl hsve read the eligibility QiteriehttY&A sed#ul under rylwis e€igiblato -W' and l agree that) andmyp'Openy r*,11 the c6tetia SpetSfloa'ly,
I do ncc live in a nxbile t+onse u s multi{amdy drretling seal as a aaadrminiur>,, and the sl:e d � �xdorwaler serrix tine is rw ta+ge than 2lnUses In
diameter �d no Imrgai than Zel lett In length The €nsurano_ polioq Is undenvrstten by Wesoolnwranoe iso- pa+r/.:tun*= Emergency Inn ranee SaLw-s,
Caifomialnwranaa Licnv. W9F78338.
S, aturalraquhetp Fho Number E+ne6Address
❑ Check here if you want to mcelve inAolmation about ether sary oee oirered by Homs Emergency Insuranea Solutions
----------------------------------------------------------------_------
;<6hr. Sample A. Semple�s
«Address Lina i fma€11ngl7I
«Addiess Line 2 imailingl> a
` .<CityST32346-1234bnaifingl»
laflhfllFulf=��rtt[14flhftglfllllltf1611[tllPlttlpt,ittt
< IMAILCODE> >
Customer aefersace #: c c 723466789e> � I
95W1iCtnYa4arI�Y.9l,-Ogen lme Peet I'm 1 SIM 9116 AM —
January 4, 2018 Regular Board Meeting Agenda Packet - Page 176 of 235
Page 28 of 37
The illustration at the right shows
where things can go wrong with your
exterior water service line. The section
of pipeline in red is the homeowner's
responsibility,
Locate, excavate
and repair leak
$940
Plan Membere-
NO CHARGEE'
lily N owner's
i[aspnnsibility
i
'.ar rweredseosrs uo nu volk ennuN 5eneat
�
6tlenorl�slr�srtiiajWater,',
Take.j?LL1.aatcAflgihatYou4�RacaEve
=, $�tutcaL'Irss lhsurance ;
1. Up to $12,000 or Coverage Annually — No bills to pay for covered repairs. All costs are covered tar
faceting and repairing or replacing the exterior water service fine emergency at your horn e, up to $3,006
per service Cali and up to tour service calls per year.
2, Rapid Response -- It your home is vompletely wilhoul water, a plumber will be on-site within 3
hours° to diagnose slid begin emergency repairs. Oilier repairswill typically begin within 24 hours of
1�
notification, unless you agree to another mutually suitable tim e.
3. A professional Jab —Includes all e%cdvallnn, hadrfiil and removal of soil In the area of the reps€r or
replacament 6dsting landscaping and shrubbery will be placed bade In its O iginal pasilioa in a neat and
professional manner.
4. No Deductibles or ServicelTHp Charges.
7f
S. 24 -Hour Emergency Sere€ce Hotline --Open 24 hours a day, 385 days a year.
Y
6. Quality Walk—All Nome Emergency Insurance Solutions contractors are fully licensed and insured
_
and repairs are gumanteed against faulty material and workmanship far one year.
Y
am;ent anion.
Q. What am 1 responsible for?
A. Homeowners are responsible tar their exterior water
service line to tire point where it connects with the
Contra Costa Water District meter or bac-How device.
Q. What Is lociuded in this insurance coverage?
A. You will be covered for up to $3,01)0 per incident for the
cost of repairing or replacing broken orleaking exterior
water service lines, subject to the terms and conditions
ofthe policy. This €ndudesrepairs to damage caused by
frozen pipes, expan&e soils, reinstallation of existing
landscaping, service call cberges, labor, materials, permits
and tax for the covered repairs.
Q. How many incidents per year are covered?
A. Sour Incidents peryear, The coverage for end) incident Is
$3,000, giving you a total of $12,000 annually.
Q. Who Is eligible to enroll?
A. Any qualifying residentlei homeowner who is a
treaded -water customer of CCWP. Mobile horses,
commercial properties and multiunit dwellings,
Including condominiums, are not eligible. Homes
with exterior water service €Ines larger than 2 inches in
diameter and longer than 200 feet in length are not eligible.
Q. When can I make a claim?
A. After the initial 3') day waiting period.
0. Does my homeowners insurance cover my exterior water
service line?
A. Most basic homeowners €asorance policies do not cover repair
or replacement of the exterior water service line.11your find
you have slmier coverage, your service agreement feewill
be refunded In full.
CLAM I required to sign up for (i)is coverage?
A. No. This insurance is optional. Yourwater service will not
be affected in anyway it you choose not to padicipale In
this program.
Q. How can I get mate information?
A. Cal Horne Emergenq Insurance So]ulionsut t•XKXjCbCXX%X
or go to CCWD's website: www.ccwatercom.
Q. Who is Home Emergency insurance Solutions?
A. An Independent company separate from CCW D. Home
Emergency Insurance Solutions is licensed by the California
Department of Insurance lricenseh'0FJ9326]. It provides this
service under a delegated authority trom Wesco Insurance
Company, which is the contract issuer. "D has entered
into an agreement Wilt Homo Service USA Corp. to offer this
program as a service to CCWA customers.
Q. If I sign up for the program, what happens next?
A. After your aetival€on form is processed, you will receive your
full policy documents. If you decide you no ]anger want the
service, you will have 30 days from the date of enrollment to
cancel and receive a full refund.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 177 of 235
-17-
Exhibit F
WESCO INSURANCE COMPANY
WATER LINE PROTECTION INSURANCE
TERMS AND CONDITIONS
We resarve the right to a second opinion by licensed ropahar of Ourchoosing on any repair or replacementdiagaoais.
6Usreprssorlation or any aeanpt tadefreud Us, including colustunbetween You and The plumber or servica provider, shah
resultSncanullalion a€ coverage and We shall took minbursemant and may pursua rn+nedes under the lays.
POLICY:15. PRIVACY
Personal infoana6on about You maybe colloctedfrom persons olherthanYou. The categories of information that wa may
collect include information aboutYourpaperty. Suchinfori ation as wall as otheredaunalion collected by Us or by Our
rcum
agents may, intestate dstanees be disclosed parties. The third paThe Informationwfl be d4ciased orilyas permitted
under applitablefam You havethe *Ito review Your person a[Womeaton in Our Res and can request coueotionof
any inaccuraties. Amore detailed desafition of Your rigMs and Cen prackas is available upon request by caring us at
1-877-444248€. Customer hdormation collected during the purchase and administration of this Poky is not disclosed to
aline companies for the purposes ofmarkaliag other products and serykes. Such irdounation maybe disclosed to other
cramparies in ordersaprovide servica under this Policy. Should you have any question about our pc icy please contact us
on 1.877-444-2481. Telephone ca0s may be recordedland ormardtored.
CA,-rS-r091.soyJy2
Page 29 of 37
WESCO INSURANCE COMPANY
WATER LINE PROTECTION INSURANCE
TERMS AND CONDITIONS
The hdninistratormeaas Home Emergency Insurance Solations, 530181ua Lagoon shrive #400, Miami, Florida 33128,
vddchadminlstersthis hosurance progran am OurbehaY. You may cordact the Adninistrator at the foregoing address arby
ceding toll -see at 1-8774442461.
Prwnlummeanotho amount You aro requhedto par' €orchis agreement
Properly means tha Property listed on the Declaration Paga.
Service call(s) means repair or replacement or unblocking work performed by a licensed plumber or licensed conAce
provider to diagnose and eliminate a covered EmergeneyHreakdowm
We, Us, and One means Wesco Insurance Comparyt 59idaidan Lime, 6th Floor, NewYosk, NY 10038.Youmay contact
Us at the foregoing address or by calling Us 1aMins at 1.86&5054046.
You and Yourmeans the Namedlasured Orlod on the0eclaralon Page.
11. RESPONSMILITY FOROWED TO YOU:
We are responsible for tha performance of corddacluai abfgabons under this Poricy, inelading service performanea and
payment of the cost of anybenafes payable to you under this Policy. The Administrator a Wriisters the delivery of benoFb
owed to Yau under this Poky. TheAdminisbstor wif handle on Our behalf any chin You may hada for barorh under €his
Party. The AdminlstrahxWill serve as Yaur ordnarypolM-of-mmact for any qua stims or concerns You may have wilt
tospatt to Your Poky; You may also can tut its with any fuflkar inqu€des, We have grim the Administrator au€haeity to act
on Our behalf in processing dams under this Policy and in assisting You in processing paymerds and other bansa�ons
under this Policy, and theAfinin[stratorvd act art behall'of Us in providing these services to You.
You are eligible for bandits undarthis Poky antyl{j You own or have written suftr¢ation to provide mauddrisnse for the
cudomer-owned watartemRce fine and related fades between the Cardomia Water Service Company walermoter, or the
connection toYewservica One and the residerdal401ing oervedbyCatfamia Water Service Company, On the Oita of Your
water largarthin 2 inches indhimaterrincl no longer than 200 fietin length; and is Your watersemdce
Antis in good candmonantho Csstdaythat this Policy becomes elfscttve.
This Policy coven only the waterseryce Ones tdanUOedin the Dadaral€on Nags for the residence located on the Peaperlyy,
We reserve the fightto darty banalis ►you feel to wnplywith the tams and cadidans of this ayeemarut relevant mise,
regulations, laws, local codes or standards, or ifYo rwater service bre is otherwise nonconforming. A separate poky is
required for each water service rase at a residmce. Coverage under this Policy is not transferable.
RESPONSE
Wesvl respordtorequeslsfar sanies 24 hasapadWj days perweek A reprasanlaOve of a licensed and insured pkmber vnl
cal You wnlhkn 1 hour of hohV contacted by Home 9nergenty Insurance Solutions. If Your home Is canpletelywillml
water, a plumberwill be within 4hours to diagnose and begin emagancy repairs. O6rer repalre wi0 typicallybegfn
within 24 hours of nohTration, unless You agree to andhermubraiy suitable time. We will not be responsible foo response
tine delays heyand Our reasonablecordrol mcluting, but notrrriled to, Acts oFGod, cadainweather conditions, unsafe
driving eondfions or g"avemnent action In the case of an unsafe oondtinn, wlich an ba deteanned sdsy by Us, Wa wi4 not he
January 4, 2018 Regular Board Meeting Agenda Packet - Page 178 of 235
_ 18
required loprovide service under this Parry forYerwalerservice fi audi0m mnsele conddionis corrected
COVERAGE:4.
Subject to the (mils of tiabilly eel forth below; M shall prnuida a8 parts, materials, and Tabor to repair or teplace a isaking or
brokeewanter service Ire between CaBorda Water Sanke Cooparry's mator, a connection to Yourwaterservieo Fns, and Your res-
Ideri ial dxefng located on the Property. Vk wil daleanine whalhe to rapa€r or replace anycovered parts. We reserva The dgbt to
select the materials amllor pads to be used in the repair or replacement; however, al such materials andror parts wil wmpywlh
allreleva t and applicable laws, regulations, codes, and standards. Wowill perform alwodc related to the repair orreplace-
meml of the water service lint. Repair or replacement underthis Paley includes all excavation, baekfil, end removal of spoils
in the areaorlhe repair of replacement and isinstalabon of endsing soft landscaping and shnrbbery in a neat, professional
mannor hyrhe cordradorrepairing the covered Emergency Breakdown In accordance with the standard of cam of aplenber
who regularly perform; maiderdiai waterlim repairs. Nltile 1 is Ovririetirn n restore Cie area to as dose Was possiNa to No
olgnd condtinnalovingfa(ie repot, itis recegiaedlbm[Wecannot guarantee Tye sun" of arlywh9matei alsd'nh;bedas a
result ofthe repair. Beenplea of tis include, but are notfmted to, No removal or twilling drrehre boas and wan esabished shwa
berg Thfs Paley alae awns damage Is, the waler service Ina caused by freszfng and root damage.
EXCLUSIONS:
This Polity does not cover any equipment or facifhtiasthat are not specifically identified as covered including the following
a) facilities, equipmarn, and appudanances, such as pressure-redu in9vaMns, house valves, backflow devices, water
softeners, boosterpsnmgas, arigation and separate Fria sprinkler systems, hose bibs, and outer smlarhams•,
b) Costafrastarafon o repaeolbard landscapng, whichindudes bulisnollinu?tudto d(ivrways,wakways. decks, pairs,
relating wage and drudares;
c) Removal of sbuchnres, such as decks, patios, and retainingwah, necessary to access thewater fine;
d) Pre-oodsting damage, relocation of avatar service lines or related equiipmsnt, ormauthorized ailerationserwork on
the wAr service 6ne;
e) Repaisorieplacemerdduetodamagediractiyorkldrectlyasaresultoryouo€anyotherpartywokingor
esearating on Your property a m the vicinity of Yourwalar service line or inside plumbing or related facilier,
t) Damage caused by earthquakes, flooding, voice* eruption, sinkholes, landsldus, dwl disobadiiance, riots, war,
terror€an, or natural disaster otter than freezing;
g) Water sarvica Tunas that are connected to multiple dwellings;
h) Was impropsry€nstalled by others (but does cover world done by Us);
9 Damage caused by lir resulting from ineaeLvapnin, pets, misuse, abuse, negligence, vandallem, theft, war, riot,
mlitaryunrest, nuclear acciderd, floating, water fluctuations, Fre, hal, Wnd. Ighfi€ng, earth movemtnt tIXCEPT
FOR EXPANSIVE SOILCONDITI0NS), landslide, sand, chemicals.
6. LIWTSOF LIABILITY:
We will over a madmen of $3,000 par ouunance and We wig cover up to 4 (four) occurrences in each year oFmembership.
We will not be ratio for any endderdal orcoresquti tial damage, Including damage caused byleako orbywatersorvks
fntemrptan Wa win nat be tinbfa for any damage to Your property or any other property unless such damage is the Brod
result of Our negligence whit providing services. AN work In relation to covered services must be perfomed by Us or with Our
authorization. We will rut pay for any unavtlwrized repair or replacement da covered iti rn, including labor andfomaterials.
:7. WARRANTY:
We wird repair or replace Your water service fine so that itvdA be sulable for residential water service. Al repairs o
replaoements will have a warrardy of one year. During the wamranly period, (the repair or replacement does not codosa to
tluts warraty, We will make the necessary correction. An corrected repairs will be sin larly warranted.
8. •PERIOD:
Coverage bagns oniyahar Our acceptance of ilia application and receipt ofpsymentofthe Premien. You have linty (30)
days from the effective date of this Prkcy as shorn ca the Oedaudon page before You can make a Service call. During
that period if You deckle You do riotwantdie policy You can notify Us and We will provido a Full refund of Prenkm paid
To fulfil Our obligations uoderthle Poky, You shag grant Us access to the covared water service fire end related fabYdes and
equipment
If You Fuld You have other tweraga that provides similar benefits, You can notify Us irmediatey. We will refund Your
Pram€en as long as no $taco call has bean prodded You may be required to provide a copyoftha canbaWponcy showing
ienlarcoverage.
Page 30 of 37
Yaue Pi amain will be bVed as a non-reguiatad charge on Yow California Water Service Company Mil. You Wil be bt&ed In
advance at a monthly rate.
IFYour Premium caeret be billed on Your Caidomia Water Service Company bill, We wil arrange payment of Your Premium
directly With You and You wig he billed in advance at a frequancy selected by You from the range of payment options made
available by UL
s
This Policy will be autanelcal y renewed in accordance wide the frequency on the Declaration Page Wowing the and of the
first year unless you elect to terminate ar Wa *a you nobs• of non -renewal. We reserve the fight to adjust the condition& of
coverage and price upon renewal.
•
After the Frstyear, Youmay caned lis Policy starrylmobymalirg arequest Forcancelationtostome Emergancylnawance
Solutions, 5301 Blue Lagoon Drive, Suite 400, Miami, Florida 33120, We atso reservs Nue right to discontinue this Policy at
renewal at Our discretion
This Policy shall be non -cancelable during any Poky Per od (as stated on the Decoration Page) by Us, extept for
(a) NonpaymantofPcemiumwhendue,
(b) Fraud ormisrepresardationoffoolsbyYoumaterialtotheIssuanceofldsPokyor€nconnectionwifeaclain
under this Policy.
IFWe cancel, We will provide you iMwritten notice of cancellation as required by Taw. You wit be ontided to a pro-sa€a refund
of Premien paid provided no Service call has been made.
12. TERNIINATIONi
hkbnpaynnetotde paymetoFPnerrimvi NOT resdn tamonce or termination of tardfed water service.Non-payment
or late paymantof Proinien wd resul n a lapse orleennation of toverags underthis agreement Prompt payment will ensure
continuation of coverage.
13. DISPUTE RESOLUTIONS:
AB disputes shall be subrMed in writing and addressed to the AdW nisbator. TheAdm ishator sha8, wikhin foudeea (14)
days of receipt, respond to Yow disputa. If theAdmkhislraMr's recommendation is list se1denlory to resolve Your dispute,
N parties agree to have the disputa heard by an ndapendentmadialrr before Initiating formal legal actioru. The losing pady,
as delon inad by the mediator, shal be responsible for or cost ofmadatioA Including but not Fnhylad to the prevailing party's
cost and is own cast ofmadimbon.In determining the losing patty, the mediator shag considerwhethar theAdrinlsbators
recomnendalionswere reasonable and adequate to resolve the dispute. The madiators recommendations shall not be
legatyblading on Tee parties.
We stake to provide You with the highest standards of service. If You feel that Our service has notmet Your
mgmatatiens or You have a question or concom, please contact Us at
5301 Blue Lagoon Drive, Anila 400, fdiaml, Aork€a 33126, or by cd0rg 1.877-114-2161.
You can also contact tha California Departmentof Insurance. However, the CaliEamla Dapartmertt of insuranco
should be contacted only after discussions with theiusurance comparry orb agent or iepeeaentative or both have
failed to produce satisfactory resolulon to tine problern.
The California Department of Insurance can be contacted at:
Caf€fomia Department of Insurance
Consumer Communications Bureau
300 Southipring 6huat, South Tower
Los Angelis, California 90017
Toll free number- (800) 927.4357
total telephone number. (213)-897-8921
Fax number -- (213) 897.5961
14. RIGHTS OF •
If We pmwide covered selvicas, We may require You to assign Us Your rights of recovaly against others. We wig not pay for
covered services ff You inpairthats rights to recover. Your dgirt tr recover may not ba waved.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 179 of 235
Page 31 of 37
-19-
Exhibit G
Code of California Regulations
Title 8. Industrial Relations
Division 1. Department of Industrial Relations
Chapter 8. Office of the Director
Subchapter 3. Payment of Prevailing Wages upon Public Works
Article 3. Duties, Responsibilities, and Rights of Parties
§16100. Duties, Responsibilities and Rights.
The Partes listed in this section must comply with the provisions of the Labor Code applicable to
the payment of prevailing wages on public works contracts.
(a) Department and Division Authority in Prevailing Wage Issues. The Director shall establish and
coordinate the administration of the State's prevailing wage law, including the determination of
coverage issues. The lead agency for the determination of prevailing wage rates shall be the
Division of Labor Statistics and Research. The lead agency for the enforcement of the payment of
prevailing wages is the Division of Labor Standards Enforcement. The lead agency for the
coordination on apprenticeship is the Division of Apprenticeship Standards. This section shall not
be construed to preclude any.filing requirements with DLSR of appropriate agreements or
petitions regarding determinations or any other documents, papers, books, etc, otherwise
required by the law or these regulations.
(b) The Awarding Body shall:
(1) Obtain the prevailing wage rate from the Director in accordance with Labor Code Sections
1771 and 1773.
(2) Specify the appropriate prevailing wage rates, in accordance with Labor Code Sections
1773.2 and 1777.5.
(A) The posting requirement is applicable for each job site.
EXCEPTION: If more than one worksite exists on any project, then the applicable rates may be
posted at a single location which is readily available to all workers.
(B) If a wage rate for a craft, classification or type of worker is not published in the Director's
general prevailing wage determinations, a request for a special determination should be made by
the awarding body to Chief, Division of Labor Statistics and Research, P.O. Box 420603, San
Francisco, CA 94142, at least 45 days prior to the project bid advertisement date.
(3) Notify DAS. See Labor Code Section 1773.3.
(4) Inform prime contractors, to the extent feasible, of relevant public work requirements:
NOTE: Requirement information may be disseminated at a pre acceptance of bid conference or
in a call for bids or at an award of bid conference.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 180 of 235
Page 32 of 37
-20-
The public works requirements are:
(A) the appropriate number of apprentices are on the job site, as set forth in Labor Code Section
1777.5.
(B) worker's compensation coverage, as set forth in Labor Code Sections 1860 and 1861.
(C) keep accurate records of the work performed on the public works project, as set forth in Labor
Code Section 1812.
(D) inspection of payroll records pursuant to Labor Code Section 1776, and as set forth in Section
16400 (e) of these regulations.
(E) and other requirements imposed by law.
(5) Withhold monies. See Labor Code Section 1727.
(6) Ensure that public works projects are not split or separated into smaller work orders or
projects for the purpose of evading the applicable provisions of Labor Code Section 1771.
(7) Deny the right to bid on public work contracts to contractors or subcontractors who have
violated public work laws, as set forth in Labor Code Section 1777.7.
(8) Not permit workers on public works to work more than eight hours a day or 40 hours in any
one calendar week, unless compensated at not less than time and a half as set forth in Labor
Code Section 1815.
EXCEPTION: If the prevailing wage determination requires a nigher rate of pay for overtime work
than is required under Labor Code Section 1815, then that higher overtime rate must be paid, as
specified in subsection 16200(a)(3)(F) of these regulations.
(9) Not take or receive any portion of the workers' wages or accept a fee in connection with a
public works project, as set forth in Labor Code Sections 1778 and 1779.
(10) Comply with those requirements as specified in Labor Code Sections 1776(g), 1777.5, 1810,
1813, and 1860.
(c) Contractor -subcontractor.
The contractor and subcontractor shall:
(1) Pay not less than the prevailing wage to all workers, as defined in Section 16000 of these
regulations, and as set forth in Labor Code Sections 1771 and 1774;
(2) Comply with the provisions of Labor Code Sections 1773.5, 1775, and 1777.5 regarding public
works jobsites;
(3) Provide workers' compensation coverage as set forth in Labor Code Section 1861;
(4) Comply with Labor Code Sections 1778 and 1779 regarding receiving a portion of wages or
acceptance of a fee;
January 4, 2018 Regular Board Meeting Agenda Packet - Page 181 of 235
Page 33 of 37
-21-
(5) Maintain and make available for inspection payroll records, as set forth in Labor Code Section
1776;
(6) Pay workers overtime pay, as set forth in Labor Code Section 1815 or as provided in the
collective bargaining agreement adopted by the Director as set forth in Section 16200 (a) (3) of
these regulations; and
(7) Comply with Section 16101 of these regulations regarding discrimination.
(8) Be subject to provisions of Labor Code Section 1777.7 which specifies the penalties imposed
on a contractor who willfully fails to comply with provisions of Section 1777.5.
(9) Comply with those requirements as specified in Labor Code Sections 1810 and 1813.
(10) Comply with other requirements imposed by law.
NOTE: Authority cited: Section 1773.5, Labor Code. Reference: Sections 1720, 1720.2, 1720.3,
1726, 1727, 1728, 1729, 1770, 1771, 1773, 1773.2, 1773.3, 1773.4, 1773.5, 1774, 1775, 1776,
1777.5, 1777.7, 1778, 1779, 1810, 1811, 1812, 1813, 1815, 1860 and
January 4, 2018 Regular Board Meeting Agenda Packet - Page 182 of 235
Page 34 of 37
HomeServe°
Exterior Sewer/Septic Line Terms and Conditions
YOUR ENCLOSED DECLARATION PAGE IS AN INTEGRAL PART OF YOUR SERVICE AGREEMENT
AND ALONG WITH THESE TERMS AND CONDITIONS CONSTITUTE YOUR ENTIRE AGREEMENT
HomeServe USA Repair Management Corp. ("HomeServe") is the entity that will administer the service under this Service
Agreement. You may contact HomeServe by mail at 1232 Premier Drive, Chattanooga, TN 37421 or by calling toll-free 1-
877-444-7750. AMT Warranty Corp. ("AMT", "Provider", "We", "Us" or "Our") is the entity obligated to provide service
under this Service Agreement. You may contact AMT by mail at 59 Maiden Lane, 43rd Floor, New York, NY 10038 or by
calling toll-free 1-866-327-5818.
What's Covered: We will arrange and pay for the repair or replacement due to normal wear and tear of a leaking or
permanently blocked Exterior Sewer Line or Exterior Septic Line for which You have sole responsibility, that supports Your
Residence. You must call HomeServe to arrange for service in order for repairs to be covered. See "How to Call for
Repairs" below. An Exterior Sewer Line is the line that takes waste water from the external wall of Your Residence to Your
utility's responsibility. An Exterior Septic Line is the line that takes waste water from the external wall of Your Residence to
the point of connection to Your septic tank on Your Property. Any part of Your Exterior Sewer/Septic Line beyond these
linear limits will not be covered. In addition, We will arrange and pay for the repair or replacement of non-functioning
grinder pumps.
Restoration: Restoration to any area disturbed by the repair that is on Your Property and outside Your Residence is
limited to: filling, raking and reseeding of grass, reinstallation of existing soft landscaping and shrubbery and patching of
paved surfaces. We cannot guarantee the survival of any living materials disturbed by the repair and will not be
responsible for the replacement of any decorative paving, pathways or landscaping features.
Benefit Limit: The maximum benefit limit is $12,000 per Term.
Additional Benefits: In addition, We will provide up to $1,250 reimbursement for reasonable hotel accommodation
(room only) if We are unable to carry out a covered repair within 24 hours of notification and You will be left completely
without use of Your Exterior Sewer/Septic Line until such repair can be made. We will also provide up to $500
reimbursement for the temporary housing of pets in such circumstances. You will only be reimbursed for hotel and pet
expenses that We have approved in advance.
What's Not Covered: We will not be responsible for any of the following:
1. Damages, losses and expenses, whether from negligence or otherwise, caused by: (a) You or any person or
entity other than Us or HomeServe or (b) unusual circumstances, including a natural disaster, or an act of God;
2. Consequential, incidental, or punitive damages arising from conducting repair work or as a result of the
covered repair, for example damages necessary to reasonably access the repair area. Your rights and remedies
may vary depending on the state where Your Property is located;
3. Any correction or upgrade of Your existing Exterior Sewer/Septic Line, not directly related to the necessary
covered repair, in order to meet any code, law, regulation or ordinance;
4. Repairs to any section of Your Exterior Sewer/Septic Line that You share with any third party or is covered by a
homeowners', condominium or like association;
S. Repairing or replacing septic tanks; leaching fields; or any non -conforming drain line, such as a basement or
storm drain, connected to Your Exterior Sewer/Septic Line.
Eligible property types: A single structure owned by You, used and zoned for residential occupancy ("Residence") that is
permanently secured to the ground, and the land it is located on is also owned by You ("Property"). Any recreational
vehicle or other type of home on wheels that is intended to be moved and/or property used for commercial purposes is
not eligible. If You are aware of any pre-existing conditions, defects or deficiencies with Your Exterior Sewer/Septic Line, or
have had any roots removed from Your Exterior Sewer/Septic Line prior to the Start Date of Your first Term, then Your
Property is not eligible for this coverage.
Length of Service Agreement: Your Service Agreement begins on the Start Date listed on Your Declaration Page and will
continue for twelve (12) months ("Term") provided neither You nor We cancel. See "Cancellation/Refund" below.
There is an initial waiting period of thirty (30) days, within which You will not be able to request a Service Call, giving
You eleven (11) months of coverage during the first year. Upon renewal (if applicable), You will not be subject to a
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waiting period.
How to call for repairs: You must call HomeServe and a service representative will assist in the diagnosis of Your repair
and the scheduling of a visit from one of HomeServe's approved local technicians. You will not be reimbursed for work
done by technicians who are not authorized by HomeServe. Technicians must have safe and clear access to, and safe
working conditions at and around the work area. There is no Service Call fee.
Covered repairs: Covered repairs are guaranteed against defects in materials and workmanship for one year. Under the
guarantee we will arrange at Our expense and discretion for repair or replacement. We disclaim any and all statutory or
common law warranties (whether express or implied) other than Our covered repair guarantee and any implied warranties
that cannot be excluded under applicable law.
Receiving Documents Electronically: You can receive Your Service Agreement and all related documents electronically. If
You consented to electronic delivery, these documents will be sent to the email address listed on Your Declaration Page
("Email Address"). Documents sent to the Email Address will be deemed to have been received by You. You may stop
receiving documents electronically by calling HomeServe or by updating Your preferences in Your profile on HomeServe's
website. You may also call HomeServe to update Your Email Address or to receive a paper copy of Your Service
Agreement.
Renewal: If You pay through Your utility bill, by credit/debit card or by direct debit this Service Agreement will
automatically renew for a further term of 12 months. If You paid by check, or if You pay by credit/debit card and
requested that We not automatically renew this Service Agreement, You must renew this Service Agreement prior to the
end of the Term to ensure continuous coverage. We reserve the right to not offer this Service Agreement upon renewal.
Cancellation/Refund: You may cancel this Service Agreement at any time by calling HomeServe. If You cancel within
thirty (30) days of the Start Date, You will receive a full refund less any claims paid by Us. If You cancel more than thirty
(30) days after the Start Date, Your cancellation will be effective at the end of the then current billing month. If
applicable, You will be entitled to a pro -rata refund less any claims paid by Us.
If Your local utility company or municipality provides similar coverage to You at no charge, You can contact HomeServe to
cancel and You will receive a refund of the payments You have made less any claims paid by Us. You may be required to
provide evidence of the similar coverage. If We find that You have such coverage or are otherwise ineligible for the
coverage provided by this Service Agreement, We may cancel on no less than fifteen 15 days' written notice to You and
will refund the payments You have made less any claims paid by Us.
We may cancel for any reason on sixty (60) days' written notice to You. We can also cancel, on no less than fifteen (15)
days' written notice to You for: (a) non-payment of the Price; or (b) Your fraud or misrepresentation of facts that are
material to this Service Agreement or benefits provided under it. If We cancel under (b) above, You will be entitled to a
pro -rata refund less any claims paid by Us.
Written notices from Us under this section will tell You exactly when Your Service Agreement will be cancelled and why it
has been cancelled. The notice periods referred to in this section begin when We send the notice to You.
Key Terms:
"Declaration Page" - The enclosed document that forms a part of this Service Agreement, listing important
information regarding You, Your Property and other vital information.
"Price" — The amount You agree to pay for this Service Agreement, as listed on Your Declaration Page.
"Service Agreement" - The documents that constitute all of Your rights and responsibilities as a Service Agreement
holder; which consist of these terms and conditions and Your Declaration Page.
"Service Call" — A visit to Your Property by one of HomeServe's approved local technicians, where work is performed
to diagnose and complete a single covered repair, or where it is determined the repair is not covered.
"You" or "Your" - The purchaser of this Service Agreement who is the Service Agreement holder listed on the
Declaration Page.
Privacy Policy: Any information You provide HomeServe will be accessed, collected, used, transmitted, disclosed, stored,
maintained and otherwise handled to administer Your Service Agreement by HomeServe or its group of companies,
including, but not limited to, disclosing Your address, telephone number, and other contact information to third parties
who conduct services on HomeServe's behalf. HomeServe or its group of companies and their selected partners may also
use Your data to keep You informed by mail, telephone or email of any products or services which they consider may be
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of interest to You. For further details on how HomeServe uses Your information, please see their Privacy Policy at
www.homeserveusa.com/Customer-Data -
Data_ Privacy_Policy.html. Should You have any questions or concerns about
HomeServe's Privacy Policy or how they are using Your information or to update Your privacy preferences, please contact
HomeServe.
Assignment/Amendment: We reserve the right to change this Service Agreement (including the price or to charge an
additional fee) and to delegate any of Our obligations at Our sole discretion provided We give You thirty (30) days' prior
written notice of the changes. The changes will become effective thirty (30) days after We send You the notice. If You do
not like the changes, You may cancel this Service Agreement. You may not change this Service Agreement or delegate any
of Your obligations. Should certain terms or conditions in this Service Agreement be held to be invalid or unenforceable,
the remainder of the terms and conditions in this Service Agreement shall remain valid.
Transfer: This Service Agreement is not transferable by You.
Responsibility for benefits owed to You: This is not an insurance policy; it is a Service Agreement. HomeServe will serve
as Your point -of -contact for all questions or concerns. Our obligations under this Service Agreement are insured under a
service contract reimbursement insurance policy. If We fail to pay or to deliver service on a claim within sixty (60) days
after proof of loss has been filed, or in the event You cancel this Service Agreement and We fail to issue any applicable
refund within sixty (60) days after cancellation, You are entitled to make a claim against the insurer, Wesco Insurance
Company at 59 Maiden Lane, 43rd Floor, New York, NY 10038, 1-866-505-4048.
Our Liability: To the extent permitted by applicable law, (1) You agree that We and HomeServe, and both of our
parents, successors, affiliates, approved technicians and our and their officers, directors, employees, affiliates,
agents and contractors shall not be liable to You or anyone else for: (a) any actual losses or direct damages that
exceed the lowest applicable per covered repair benefit limit set out above; or (b) any amount of any form of
indirect, special, punitive, incidental or consequential losses or damages, including those caused by any fault,
failure, delay or defect in providing services under this Service Agreement, and (2) these limitations and waivers
shall apply to all claims and all liabilities and shall survive the cancellation or expiration of this Service
Agreement. You may have other rights that vary from state to state.
Arbitration: YOU, AMT AND HOMESERVE ALL AGREE TO RESOLVE DISPUTES ONLY BY FINAL AND BINDING
ARBITRATION OR IN SMALL CLAIMS COURT as follows:
A. EXCEPT FOR SMALL CLAIMS COURT CASES THAT QUALIFY, ANY DISPUTE THAT IN ANY WAY RELATES TO OR
ARISES OUT OF THIS SERVICE AGREEMENT OR FROM ANY OTHER AGREEMENT BETWEEN US, OR SERVICES
OR BENEFITS YOU RECEIVE OR CLAIM TO BE OWED FROM AMT OR HOMESERVE, WILL BE RESOLVED BY FINAL
AND BINDING ARBITRATION BY ONE OR MORE ARBITRATORS BEFORE THE AMERICAN ARBITRATION
ASSOCIATION ("AAA"), OR ANOTHER ARBITRATION ADMINISTRATOR THAT WE MUTUALLY AGREE UPON.
Arbitration will apply not only to claims against AMT or HomeServe, but also claims against the officers, directors,
managers, employees, agents, affiliates, insurers, technicians, successors or assigns of AMT or HomeServe. Arbitration
and this paragraph shall apply to claims that arose at any time, including claims arising before this paragraph
became binding on the parties. The federal arbitration act (9 U.S.C. §§ 1 et seq.) and not any state law applies to this
agreement.
B. For claims of $10,000 or less, the party bringing the claim can choose to proceed by way of binding arbitration
pursuant to the AAA's rules or, alternatively, can bring an individual action in small claims court.
C. YOU GIVE UP YOUR RIGHT TO PARTICIPATE IN A CLASS ACTION. This means that You may not be a
representative or member of any class of claimants or act as a private attorney general in court or in arbitration with
respect to any claim. Notwithstanding any other provision of this Service Agreement, the arbitrator shall not have the
power to determine that class arbitration is permissible. The arbitrator also shall not have the power to preside over
class or collective arbitration, or to award any form of class -wide or collective remedy. Instead, the arbitrator shall
have power to award money or injunctive relief only in favor of the individual party seeking relief and only to the
extent necessary to provide relief warranted by that party's individual claim. No class or representative or private
attorney general theories of liability or prayers for relief may be maintained in any arbitration held under this Service
Agreement.
D. HomeServe will pay any filing fee, administration, service or case management fee, and arbitrator fee that the AAA
charges You for arbitration of the dispute, up to a maximum of $1,500; provided, however, that the arbitrator may
award costs and expenses to any party, if allowed by law. If You provide us with signed written notice that You
cannot pay the filing fee, HomeServe will pay the fee directly to the AAA.
E. If for some reason the prohibition on class arbitrations set forth in Subsection C cannot be enforced, then the
agreement to arbitrate will not apply.
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IF FOR ANY REASON A CLAIM PROCEEDS IN COURT RATHER THAN THROUGH ARBITRATION, YOU, AMT AND
HOMESERVE AGREE THAT THERE WILL NOT BE A JURY TRIAL. You, AMT and HomeServe unconditionally waive
any right to trial by jury in any action, proceeding or counterclaim arising out of or relating in any way to this Service
Agreement or from any other agreement between us, or the services or benefits You receive or claim to be owed
from AMT or HomeServe, including as to claims asserted against any of the officers, directors, managers, employees,
agents, affiliates, insurers, technicians, approved technicians, successors or assigns of AMT or HomeServe.
State variations: The following shall apply if inconsistent with any other terms and conditions of this Service
Agreement:
[Please click here to see if any state specific variations apply to You.]
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