“Five hundred dollars in additional coverage is a lot for just 15 cents more a month,” observed Charlie Smith, president of the Sewanee Utility District (SUD) at the May 25 meeting of the board of commissioners. The board concurred, approving SUD’s enrollment in the ServLine insurance program at a level providing customers with $1,000 of leak insurance at a cost of $1.30 per month. The board also approved a new Leak Adjustment Policy.

The lower level of coverage offered by ServLine, $500, would have cost customers $1.15 a month—15 cents less. Commissioner Art Hanson pointed out the additional fifteen cents only amounted to $18 in 10 years. “If a customer made a claim and was reimbursed once in that period, they’d be very grateful for the added coverage for such a small cost,” Hanson said.

The insurance will pay the amount of the customer’s bill, above their average bill, resulting from leaks outside or inside the home that are not “readily apparent, such as leaks that are underground, within walls or under floors” or leaks occurring “when occupants are away from the premises.”

The program goes into effect Aug. 1 with customers automatically enrolled. Customers will receive an information packet from ServLine in the coming weeks and can opt out of the program at any time. For customers who opt out, SUD will not adjust high water bills resulting from leaks. Customers will need to show proof the leak is fixed when making a claim. The insurance does not cover the cost of making repairs.

Customers will have 30 days from the disputed bill’s due date to make a claim. The customer can recover the cost of water leaked over a two-month period, but not beyond that, with a limit of one claim per year. SUD’s former adjustment policy only allowed one claim every three years. There is no lifetime limit on the number of claims a customer can make.

At the suggestion of commissioner Hanson, the board agreed to include a clause in the Leak Adjustment Policy stipulating, “no penalties for a high water bill will accrue during the period when the bill is under dispute.”

As is the case now, SUD will continue to consider qualifying customers for a no-interest payment plan if they have high water bills that do not qualify for an adjustment. The policy also provides for adjustments under exceptional circumstances such as “man-made or natural disasters.”

“High sewer bills resulting from leaked water are not covered by the insurance plan,” SUD manager Ben Beavers stressed. Beavers will draft a Sewer Adjustment Policy and present it to the board for review at the next meeting on May 23. Beavers recommended a policy similar to the present policy that stipulates if the leaked water does not enter the sewer, the customer’s bill will be adjusted in keeping with the past 12-month average.

In discussion about other policies under review, Beavers said he researched the Ethics Policy question and learned the SUD board adopted the TAUD ethics policy in 2008.

Reporting on operations, Beavers said that in spite of heavy March rainfall, 6.79 inches, SUD experienced “no sanitary system overflows,” indicating SUD’s lift station rehabilitation work has been successful. Beavers will ask the Tennessee Department of Environment and Conservation to revoke the moratorium banning SUD from taking on new customers in the Alto Road area until the sewer lift station problems were remedied.