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<br />.00 <br /> <br />TUESDAY, MAY 28, 1985 <br /> <br />Upon motion by Councilman Oakes, seconded by Councilman Groden and <br /> <br />unanimously carried, Council adopted Ordinance No. 85-6 amending Article <br /> <br />IV of the City's Terms and Conditions of Electric and Water and Sewer <br /> <br />Services related to interest being paid on utility deposits, to be <br /> <br />effective July 1, 1985, as follows: <br /> <br />ORDINANCE NO. 85-6 <br /> <br />BE IT ORDAINED by the Council of the City of Martinsville, <br />Virginia, in regular session on May 28, 1985, that Article IV, <br />Deposits, Sections 4.1 and 4.2 to the City's Terms and Conditions <br />of Water and Sewer Service and Electric Services be amended, as <br />follows: <br /> <br />Sec. 4.1 Required <br /> <br />As security for the payment of bills, a deposit equal to the two <br />highest monthly bills within the previous twelve (12) month <br />period will be required of a customer. Such deposit is based <br />upon the experience of the previous tenant and is due at the time <br />the contract is executed. Additionally, the City reserves. the <br />right to require subsequent increases in a deposit if the custo- <br />mer's payment record and consumption experiences reflect that a <br />higher deposit is required to protect the interest of the City. <br /> <br />In lieu of a deposit, the customer may <br />dit from his previous utility services <br />has had an acceptable record of payment <br />months. <br /> <br />present a Letter of Cre- <br />provider stating that he <br />for the previous twelve <br /> <br />In lieu of a deposit, the customer may obtain a guarantor. To <br />qualify as a guarantor, an individual must be a bonafide custo- <br />mer of the City, in good standing, reside in the City and appear <br />in person to execute a "Guaranty of Payment Agreement". The <br />guarantor must understand that failure to pay any charges <br />unrecovered from the customer will result in the termination of <br />services to the guarantor. <br /> <br />Sec. 4.2 Interest <br /> <br />Deposits held for a mlnlmum of twelve (12) months will receive <br />simple interest at the rate of 5.25 percent for the total period <br />of time that the deposit is held. Deposits held less than twelve <br />(12) months will receive no interest. <br />