Council hears proposal to add optional water-leak insurance to customer bills

Water and sewer director Will Hinchey presented a vendor proposal to the Clinton City Council to offer customers optional leak-insurance added as a small line item on water and sewer bills.

Hinchey described residential price tiers the vendor quoted and said customers could opt out. "For instance, if we wanted the customer to be able to get paid up to $500...it'd be a dollar thirty a month," he said, and described a higher $2 a month option that raises the claim limit. Hinchey said the company would pay the customer's excess usage above typical billing after the customer shows proof of repair. He explained a two-claim-per-year option and said commercial rates would be higher and probably not attractive for local businesses.

Council members asked whether offering the charge on bills would require rate-change procedures or public hearings; Hinchey said he had not yet spoken with bond counsel and would do so. He asked council to consider the idea and suggested bringing the item back on the next meeting agenda rather than voting tonight.

Hinchey emphasized that the vendor's package is voluntary and that customers who opt out within the first 12 months (and who have not filed a claim) would be reimbursed for the charges paid to date. He also noted the program would not cover the cost of a plumber but that the vendor offers a separate service for service-line repair that would be handled directly with the customer.

Council took no formal action; staff will gather additional information and follow up with counsel before any ordinance or billing change is proposed.