Committee endorses city‑backed private sewer‑lateral insurance program; no city funds proposed

Ross Jonak, manager in the Surface Water and Sewers division, presented a proposed city endorsement of a private sewer‑lateral insurance program with OnCourse Home Solutions and the committee authorized staff to enter a noncost contract/endorsement.

Jonak explained homeowners own sewer laterals from the house to the main and that average repair costs entering city programs run about $13,000 (with a wide range). He said the city’s grant program received 350 applications this year but could only fund 36 grants. The endorsed program would be optional, use no city funds, and offer an initial rate of $5.49 per month for the first year and $9.99 per month thereafter. Jonak said OnCourse is offering unlimited coverage for lateral repair/replacement and additional benefits: up to $1,000 per occurrence for out‑of‑pocket restoration costs, $1,500 for temporary housing, $500 pet boarding, a one‑time $100,000 community partnership contribution and an annual $50,000 hardship fund for referrals.

Council Members expressed broad support and asked for clarifications: whether preexisting conditions (e.g., root intrusions) would be excluded, how the hardship fund would be deployed, and whether the contract would return to council for formal approval. Jonak said OnCourse has indicated it will not exclude common preexisting lateral problems (staff will require that in the contract) and the city attorney confirmed the nonstandard contract form will return to council for approval after initial authorization. The committee voted to authorize negotiation and endorsement, and staff will return with final contract language for council approval.