HomeMy WebLinkAboutReso 93-115 - Amending policy No 1404 on late fees and utility deposits 7
1
RESOLUTION NO. g3- lr5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AMENDING ITS POLICY NO. 1404 ON LATE FEES AND UTILITY
DEPOSITS.
,I
WHEREAS, on September 15, 1992, by Resolution No. 92-405, the City
Council of the City of Redding adopted a Policy [numbered 1404] on late fees
and utility deposits; and
WHEREAS, City Council wishes to amend said Policy No. 1404 to make minor
changes to Section II, Deposits, as outlined in the attached Report to City
Council dated March 31, 1993; and
WHEREAS, a copy of the proposed amended Council Policy is attached
hereto and incorporated herein by reference;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Redding that the City's Policy No. 1404 on late fees and utility deposits be
amended as set forth in Council Policy No. 1404 attached hereto.
I HEREBY CERTIFY that the foregoing Resolution was introduced and read
at a regular meeting of the City Council of the City of Redding on the 6th day
Of April , 1993, and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Arness, Kehoe and Moss
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
cox
CHARLIE MOSS, Mayor
City of Redding
MST:. FO APPR ;
CONNIE STROHMA City Clerk RANDAL A. HAYS, City Attorney i 41
1 '
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
LATE FEES AND UTILITY DEPOSITS 04/06/93 1
i
i
BACKGROUND
?I Due to a consistent increase in bankruptcies and the number of
delinquent accounts in recent years, it is fiscally responsible and
appropriate that the City Council adopt a policy governing utility
deposits and late fees .
PURPOSE
The purpose of this policy is to provide uniform and consistent
guidelines for assessing late fees on delinquent utility accounts
and the payment of utility deposits .
POLICY
I . Late Fees . All utility accounts will be assessed a late fee
of 1 .5% to be applied to the delinquent unpaid balance each
month.
II . Deposits . A utility deposit will be required as follows :
i� A. New commercial accounts may be required to pay a deposit
of twice the estimated average aggregate bill . The
deposit will be waived for a commercial account operating
a like business who presents a valid letter of credit
'I from another utility, or one which has maintained a good
credit history with the City of Redding for a like
business .
ii B. New residential accounts may be required to pay a deposit
of twice the estimated average aggregate utility bill .
If a customer presents a valid letter of credit from
f another utility, or has maintained a good credit history
'i with the City of Redding, the deposit requirement will be
waived.
C. Utility accounts turned off for non-payment of account
will be required to pay a deposit, all fees and penalties
assessed, and the entire delinquent balance.
D. Utility accounts with three ( 3) or more returned checks
in a twelve-month period and no deposit is currently held
by the City.
OR 0049
I .
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE ,
LATE FEES AND UTILITY DEPOSITS 04/06/93 2
I
i
E. Accounts delinquent three (3) or more times in the last
twelve months and no deposit is currently held by the
City. (For this purpose, a customer will be considered
I
delinquent when a 48-hour disconnection notice has been
received. )
F. A deposit will be required if a customer' s utility credit
II rating has declined.
i
III . Interest may be earned on the deposit amount required by the
City in the following manner:
i
A. A customer may provide the City with a certificate of
deposit in the amount of the required utility deposit.
B. A customer may present the City with a savings passbook
in the amount of the required utility deposit.
'I IV. After maintaining a good credit rating for twelve months,
utility deposits will be applied to the customer' s utility
account and certificates of deposit or passbooks will be
i,
returned to the customer.
V. A customer may request a hearing with a customer service
supervisor to review the customer' s payment history or the
estimated deposit amount. The review shall include
'i consideration of whether the customer shall be permitted to
amortize the payment of the deposit over a reasonable period
of time. The determination by the customer service supervisor
ii may be appealed to the Director of Customer Service.
!
I
'.i
'II
!I
I
I
�I
CR 0049
�I