JOHN COFFELTEditor

The Manchester Water and Sewer Commission listened to a presentation from HomeServe about insurance to cover the expenses water customers would face in the event of a water leak.

Each month the department adjusts about 30 customers’ water bills due to unusually high costs from water leaks. This insurance, according to a presentation by the Chattanooga company, if the city chooses to participates, could cost each customer about $1.80 per month.

The program would reimburse the cost of an abnormally high water bill, The last 12 months of bills, excluding the one in questioned, are averaged and that amount is subtracted from the claim bill. That amount is sent to Manchester Water Department and credited to the customer’s account.

Customers would be able to file claims twice in a 12-month period.

HomeServe Director of Business Development Jenna Hazelet spoke to the commission on speakerphone at the Nov. 9 meeting.

“Because the water is customer’s responsibility once it goes through that meter, they are the ones that pay for the program,” Hazlet said. “It creates a win-win scenario for the city and the customer.”

The cost is usually added as a separate line item on the customer’s bill. The customer would be auto enrolled into the program with the option to opt out at any time.

A second option for the city, would be if the city adopted the program at its expense and then build that expense into the water rates.

Vice Mayor Mark Messick questioned the merit of the automatic enrolment for customers, but Hazelet said that in the company’s experience, it’s more favorable for customers to opt out rather than enroll.

“We have tried to do the opt-in in the past and we have found that it does not work for multiple reasons. A lot of people do not pay attention and notice the informational material in their bill.”

Then when a leak occurs and some customers find out that they have missed registration, some will claim the utility had lost their registration.

The opting in would result in fewer participants and higher premiums. With the opt out setup, about 4% of utilities’ customers chose to opt out.

Messick suggested the possibility of the city absorbing the costs of the if the total annual amount the departments adjusts water bills is over the yearly premium of the program. He estimated that 100% customer participation would lower the cost per customer below the ballpark $1.80 per month for each customer.

Leak adjustments are frequent for the city. The total amount for 2023 was not available at the time of the meeting. October’s adjustments were given as a loss of $17,500 in revenue. That amount would fluctuate month to month.

Current water department policy offers two adjustments to customers’ bills and that only covers a portion of the leak. The adjustments for sewer fees are more substantial.

“We do half of a half,” said Candy Hilmoe, former water billing manager. “The water (adjustment)is very minimal.”

The Water and Sewer Committee suggested that that policy could be changed if the insurance plan is accepted.

Hazelet said that if the city enrolls in the program the company would send out educational material informing customers 60 or 90 days in advance to notify them the start date and costs.

Water and Sewer Director Phillip Miller said that he doesn’t want to increase rates anymore, but noted that the program was a really good deal for the customers and the city.

The water commission will address the meeting at future meetings.

John has been with the Manchester Times since May 2011. John has won Tennessee Press Association awards for Best News Photo and placed in numerous other categories. John is a 1994 graduate of Tullahoma High School, a graduate of Motlow State Community College and earned a Bachelor of Arts in English from Middle Tennessee State University. He lives in Tullahoma, enjoys painting, dancing and exploring the outdoors.