Richard Resnick doesn't think that the pipe warranty the Pittsburgh Water and Sewer Authority gave him could ever help him. He has canceled the $5-a-month coverage, saying it should never have been tacked on his bill in the first place.

He is joined by apartment owners who have seen the $5 addition to their bill but believe they couldn't collect on a claim. On Wednesday, a Herr's Island woman launched what will likely become a class-action lawsuit, calling the charge an unfair trade practice. And Thursday, Pittsburgh City Council voted to schedule a special meeting on the controversial warranty the authority assigned to nearly all city residents, unless they opt out.

A resident of a five-unit condominium in Lawrenceville, Mr. Resnick believes the pipes that serve him would be excluded from coverage, because they are bigger than the warranty's size limits. The warranty excludes any water pipe that's 2 inches or more wide, and any sewer pipe that's 8 inches or more in diameter.

Nonetheless, he and the other residents got the $5 charge.

The authority long had offered ratepayers the option of buying private warranties for the water and sewer lines that run from under-the-street mains to meters. Those pipes are the property owner's responsibility, and when they fail, bills can reach five-figures.

In July, the authority contracted with warranty provider Utility Line Security, or ULS, a freshly minted, Wilkinsburg-based business that shares most of its officers with Resource Development and Management. RDM is a politically connected firm that worked closely with water authority Executive Director Michael Kenney when he was a manager at the Municipal Authority of Westmoreland County, before March 2008.

Authority officials have said opt-in warranties didn't get many takers, and they were able to get a lower price and more coverage from ULS by shifting to an opt-out system.

"Charging customers in their bills without requiring them to opt in, rather than opt out, is deceptive," said Stacey M. Noble, an attorney with Meyer, Unkovic & Scott who is representing townhouse owner Nancy W. Farber in the lawsuit filed in Common Pleas Court. She will ask the court to certify the suit as a class action.

"The opt-out ... for the line protection is not an unfair trade practice," countered water authority solicitor Mark F. Nowak, in an e-mail response to questions.

Apartment building owners this week said their buildings have pipes that are too large to qualify for the warranty, but they have nonetheless seen the $5 charge on their bills.

Mr. Kenney said that owners of buildings with pipes excluded from coverage should never have gotten the charge. Ratepayers with questions can call the authority at 412-255-8800.

"We wouldn't have this problem if it was an opt-in instead of an opt-out," said James Eichenlaub, acting executive director of the Apartment Association of Metropolitan Pittsburgh.

"I think there's serious issues associated with it," said Councilman Doug Shields, who called for the special council meeting.

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