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A. Deferred Payment Agreement:
1. A customer who is having difficulty paying for his utility service or who has been disconnected for nonpayment shall be eligible to execute a deferred payment agreement with the City for the payment of the delinquent utility account. A deferred payment agreement shall be executed provided that at the time of the execution of the agreement the following standards are satisfied:
a. All sums between two hundred dollars ($200.00) and four hundred ninety nine dollars ($499.00) shall be repaid within a six (6) month period of time from the date of execution of the deferred payment agreement,
b. All sums of five hundred dollars ($500.00) or more shall be paid within a twelve (12) month period of time from date of execution of the deferred payment agreement,
c. Accounts owing less than two hundred dollars ($200.00) shall not be eligible to enter a deferred payment agreement,
d. At the time of the execution of the deferred payment agreement:
(1) One-sixth (1/6) of the delinquent balance shall be paid for a six (6) month payment agreement; or
(2) One-twelfth (1/12) of the delinquent balance shall be paid for a twelve (12) month payment agreement,
e. A deferred payment agreement shall contain language to the effect that the customer must keep the current balance paid when due,
f. Customer shall not be entitled to execute more than one deferred payment agreement within any eighteen (18) consecutive months' period of time,
g. The account holder shall have the right to prepay the outstanding balance due under a deferred payment agreement at any time during the term of the agreement,
h. Accounts will not qualify for deferred payment agreements unless they have a minimum two (2) year good payment history with the city, which is defined as having no more than two (2) late payments within a twelve (12) month period.
2. The city shall have personnel available between eight o'clock (8:00) A.M. and eight o'clock (8:00) P.M. each day to reconnect utility service. The water department shall have personnel available so that service can be restored before six o'clock (6:00) P.M. on the next generally recognized business day.
3. The terms of the deferred payment agreement shall be set forth in a written agreement, a copy of which shall be provided to the customer.
4. A deferred payment agreement may include a finance charge of up to 1.5 percent per month. If such finance charge is assessed, the deferred payment agreement shall contain notice of such charge.
B. Breach: If an applicant or account holder breaches any condition or term of a deferred payment agreement, city may treat that breach as a delinquent account and shall have the right to terminate service pursuant to these procedures and the account holder shall not have the right to a renewal of the deferred payment agreement. Renewal of deferred payment agreements after a breach shall be at the sole option of the city. (Ord. 11-42: Ord. 11-13)