TITLE
The Mayor and City Council shall discuss and take action on terminating the Marketing Agreement with Utility Services Partners Private Label, Inc. d/b/a Service Line Warranties of America (SWLA) related to the right to offer and market service line warranties and other similar products. Discussion and Action.
AGENDA ITEM DESCRIPTION
On September 5, 2017, the City entered into a Marketing agreement with SWLA related to the right to offer and market service line warranties and other similar products. Pursuant to the Agreement, either party can provide written notice of its intent not to renew the Agreement at least ninety (90) days prior to the end of the Renewal Term.
The Marketing Agreement with SWLA states, “City hereby grants to Company a non-exclusive license (“License”) to use City’s name and logo on letterhead, bills, and marketing materials to be sent to Residential Property Owners from time to time, and to be used in advertising (including on the Company’s website)…” This Agreement gives the city’s endorsement to SWLA putting the city in a position of endorsing one company over another without any control on how that company does business. Since this type of endorsement is not normally done by the city, it is confusing for residents. Each time a mailing from SWLA is sent out to residents with the city’s endorsement, city staff receive multiple calls from residents concerned that the mailing is some sort of a hoax.
STAFF RECOMMENDATION
Staff recommends that the Mayor and City Council approve the termination of the Marketing Agreement.