HomeMy WebLinkAboutReso 92-405 - Adopting a late fee & deposit policy on Utility Accounts RESOLUTION NO. — d-y
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
ADOPTING A LATE FEE AND DEPOSIT POLICY ON UTILITY
ACCOUNTS.
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!� WHEREAS, the City Council of the City of Redding is charged
with the responsibility of establishing municipal policies to
guide the various functions of the City and, where necessary, to
establish procedures by which functions are performed; and
WHEREAS, regulatory policies established by the City Council
are usually adopted by Ordinance and included in the Municipal
Code. However, other policies are also established, which by
their nature do not require adoption by Ordinance; these policy
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statements, adopted by Resolution of the City Council, need to be
consolidated in a reference document for easy access; and
WHEREAS, on August 4, 1987, by Resolution No. 87-261, City
Council adopted a Council Policy Manual to achieve said
objectives; and
i WHEREAS, City Council wishes to adopt a late fee and deposit
policy on utility accounts;
a NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
q the City of Redding as follows: o
1 . That all of the above recitals are true and correct.
2. That the Policy attached hereto be and hereby is
adopted as the Council Policy regarding late fees and deposits on
utility accounts.
3 . That said Policy be incorporated in the Council Policy
Manual.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
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the City of Redding on the 15th day of September , 1992, and was
duly adopted at said meeting by the following vote:
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,I AYES: COUNCIL MEMBERS: Anderson, Dahl, Kehoe and Moss
` NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Arness
ABSTAIN: COUNCIL MEMBERS: None
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CHARLIE MOSS, Mayor
City of Redding
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A T:
71,
CONNIE STROHMAYER, CiV C erk
`! FO APPROVED:
aRANDALL A. HAY , City Attorney
Amended 04/06/93 by Resolution No. 93-114
Amended 09/07/97 by Resolution No. 97-153 2
Amended 08/03/99 by Resolution No. 99-108
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
LATE FEES AND UTILITY DEPOSITS 92-405 1404 09/15/92 1
BACKGROUND
Due to a dramatic 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
I 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 :
A. All new commercial accounts will be required to pay a
deposit. This deposit will be two (2 ) times the highest
bill within the last twelve ( 12 ) months, or an estimated
amount if a twelve-month history of utility billings has
not been established.
B. Based on a customer' s credit history, new residential
accounts may be required to pay a deposit of two (2 )
times the highest aggregate utility bill within the last
twelve ( 12) months, or an estimated amount if a twelve-
month history of utility billings has not been
established. If a customer presents a valid letter of
credit from another utility, 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.
E. Accounts delinquent three ( 3) or more times in the last
twelve months and no deposit is currently held by the
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• CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
LATE FEES AND UTILITY DEPOSITS 92-405 1404 09/15/92 2
City. (For this purpose, a customer will be considered
delinquent when a 48-hour disconnection notice has been
delivered. )
F. A deposit will be required if an account' s established
credit rating has declined.
III . Interest may be earned on the deposit amount required by the
City in the following manner:
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.
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C. After maintaining a good credit rating for twelve
consecutive months, utility deposits will be applied to
the customer' s utility account and certificates of
deposit or passbooks will be returned to the customer.
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