Warranty mailers with City of Ashland logo draw confusion

By: Tara Blue
Residents of Ashland may have received a letter in the mail recently seemingly sent by the City of Ashland, as the city’s logo appears in the sender’s place, regarding warranty protection on exterior water and sewer/septic lines.

The letter was sent by Service Line Warranties of America (SLWA) and received authorization to use the city’s logo from the board of aldermen on May 21st, 2024. However, in the January newsletter, the City of Ashland stated “this is not a City service and has no bearing on your utility bill with the City. This is an independent service offering that the City would like the public to be aware of.”

At the May 7th, 2024 Board of Aldermen meeting, Treasurer Shelley Martin recommended the royalty marketing agreement to the board for an initial term of three years. S. Martin stated that “in light of the recent sewer backups stemming from customer sewer lateral being damaged or clogged, staff believes it would be beneficial to help educate homeowners with regards to responsibilities while also providing an optional insurance program that some homeowners may not have access to via their homeowner policies.”

S. Martin added that there would be no cost to the utility, and the city will receive 10% royalty based on plan fees received from customers who enroll. The agreement authorizes the company to use the city’s logo and contact residents by mail only.

The board discussed the resolution, tabled it until they could gather more information about existing agreements between other municipalities, and ultimately approved it on May 21st, 2024.

In the Feb. 11th Planning & Zoning (P&Z) meeting, Community Development Director Darin Ratermann reiterated that the city is not affiliated with SLWA, yet the letter states that the SLWA has “partnered” with the city on the offer. The mailer also includes a disclaimer that SLWA is an independent company separate from city utilities, but came to an agreement with city utilities to introduce the offer to residents, all of which has caused confusion for some residents.

During the meeting, P&Z Chairman Cory Bergthold stated concerns that while the offer may be legitimate, he would advise against future authorized use of the city’s logo so as not to confuse recipients.

The letter informs homeowners that repairs to the exterior water and sewer/septic lines buried underground may become necessary due to changing soil conditions/ground shifting/corrosion, are the financial responsibility of the homeowner, and offers a warranty in case of an event. The SLWA holds an A+ rating on the Better Business Bureau website and has been in business for 27 years.

If residents are not interested in the offer, no further action is necessary.