THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, July 2, 1995 TAG: 9506300226
SECTION: SUFFOLK SUN PAGE: 14 EDITION: FINAL
LENGTH: Short : 50 lines
The City of Franklin's utility deposit policy adopted by Council in December will be enforced effective July 1, 1995.
The policy states that the city may require the applicant or customer to post a deposit initially and, from time to time, an amount judged by the city to secure it from loss. The minimum deposit is the customer's estimated liability for two month's usage.
One-half of the deposit must accompany the application for service. The remaining one-half may be paid in two consecutive equal monthly installments. The city is not bound to supply utility services until these conditions are fulfilled and may discontinue services if the deposit is not paid when required.
The city requires a deposit to be posted indefinitely by a customer with poor credit or who has filed bankruptcy in the past 10 years.
The city reserves the right to return any deposit to any customer after satisfactory credit is established or after one year if no damage has occurred to city equipment on the customer's premises. The deposit will be held if a customer fails to make utility bill payments within 10 days of the due date three or more consecutive months.
Simple interest is paid on deposits at an annual rate determined by the city, provided that such deposit remains with the city for a period longer than 90 days. The accrued interest is credited to the customer's account.
The city may discontinue service to a customer, after 10 days notice by mail, for nonpayment of a past due bill, regardless of any amount of deposit and failure to comply with any of the city's terms and conditions or obligations for the purchase of a utility service.
If a utility service is discontinued for nonpayment of either a past due bill or past due deposit, the entire amount owed must be paid before service is restored. A security deposit is required before service is restored if a customer was disconnected for nonpayment during the previous 12 months, a customer had a check returned for insufficient funds during the previous 12 months, or a customer has failed during the previous 12 months to make payment within 10 days of the due date three or more consecutive months.
Service reconnection carries a service charge based on when reconnection is requested. If reconnection is requested between 8 a.m. and 5 p.m., Monday through Friday, the charge is $20. If it is requested after 5 p.m. until 8 a.m. the following day, Monday through Thursday, the charge is $50. If it is requested after 5 p.m. Friday until 8 a.m. Monday and during all city holidays, the charge is $75. by CNB