During their regular meeting Tuesday, Sept. 3, 2019, the Cordell City Council rejected a contract proposed by Utility Service Partners Private Label, Inc. which would have allowed the company to use the city’s logo and the signature of a city official on marketing materials being sent to Cordell residents and property owners.
The company, which also does business as Service Line Warranties of America, proposed using the city’s brand identity to market their warranty and service products to Cordell’s residents and homeowners. In exchange, the city would be paid a “license fee” of $0.50 per product per month for each month of service paid for by a customer within the city.
“City hereby grants the 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), all at Company’s sole cost and expense and subject to the City’s prior review and approval, which will not be unreasonably conditioned, delayed, or withheld,” the proposed contract read. “City agrees that it will not extend a similar license to any competitor of Company during the Term and any Renewal Term of this Agreement.”
Council member Earlene Smith raised objections to the proposal during the meeting. She displayed a stack of papers, printouts of complaints made about the company and their business practices she’d discovered on websites of organizations like the Better Business Bureau, Angie’s List, and Consumer Reports. The complaints ranged from marketing and billing concerns to issues with delivering on the warranties and services promised when problems developed.
Smith’s second objection was in regard to the company’s desire to use the city’s logo and the signature of a city official on their marketing materials, advertisements, and bills. She expressed concern that the use of city branding could create confusion for city residents, who may mistake such materials as communications from the city about their municipal utility services.
“If they’re a reputable company, why wouldn’t they use their own logo? Stuff like this is confusing and targets senior citizens,” she said. “Folks see it and think it’s from the city or it scares them into thinking their water pipes are going to freeze and they’re not going to be able to dig them up.”
After Smith’s remarks, no one on the council made a motion to accept the contract, so the issue died.
Smith said she saw the proposal on the agenda and decided to investigate the company before the meeting in order to make an informed decision.
“I look into everything,” she said. “I like to know what I’m voting on.”