TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Discussion and Possible Action Regarding Utility Service Partners Private Label, Inc. d/b/a Service Line Warranties of America Marketing Agreement
Recommended Action
Discussion and Possible Action Regarding Marketing Agreement with Utility Service Partners Private Label, Inc. d/b/a Service Line Warranties of America.
Background Information
At their June 25, 2019, North Port City Commission heard a presentation from Mr. Lee Zell with Utility Service Partners Private Label, Inc. d/b/a Service Line Warranties of America regarding their Water and Sewer Service Line Warranty Program endorsed by the National League of Cities.
Per Commission Direction, staff from Utilities, Finance, and Neighborhood Development Services researched the program and evaluated pros and cons of City participation. Essentially, the City would be entering into an exclusive marketing agreement allowing the company to market their water and sewer line insurance as endorsed by the City, using the City's seal, logo, and signature on marketing materials. For this exclusive use, the City receives $.50 from each monthly warranty payment made to the company from each property owner. The services marketed are for the repair of privately owned exterior water and sewer service lines and interior plumbing for private residences.
A Request for Legal Services was submitted to outside counsel on the matter to determine if City could legally authorize a private company to use City logos, seal and signature for exclusive marketing of their product. In its response, Counsel addressed a few concerns.
First, whether or not the licensing of the City's logo is permitted under Article VII, Section 10 of the Florida Constitution which prohibits the use of public funds for private purposes. Courts have held that this provision acts to protect public funds and resources from being exploited ...
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