4.5. ERMUSR 05-11-2010Phone: 7d3.44~~~020
Fax; 763.441.8099
April 30, ZO 10
To: Elk River Municipal Utilities Commission
John Dxetz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
Subject. Review and Consider Customer Deposit Policy Follow Up}
At the February 9t~ Commission meeting, Staff was directed to review the Customer Deposit
Folic and related ractices and bring back policy revision options. At the March 9~h
Y P
Commission meeting, the Commission approved a revised Customer Deposit Policy, Zn
conjunction with the revised policy, staff has been working on a commercial customer
applicationlreceipt. This proposed form will be provided at the meeting for Commission review.
SERVICE A.CREEME~T
DEPOSIT RECEIPT
Acct. #
Service Address:
Date:
Lot: flock: Addition:
Customer:
Mail to:
Phone No.:
SERVICE A~REEME~T
Elk River Municipal Utilities ~ERMIJ~ and The Customer identified above Customer}
enter into this Service Agreement ~A.~reement~ for the provision of electriclwater service
to the Service Address identified above.
In exchange for ERMU's Agreement to provide electriclwater service to the Service
Address, Customer agrees as follows:
1. Customer warrants to ERMU that Customer is the individual or business entity
which will be liable for any default by Customer under this Agreement or any
nonpayment by Customer of amounts billed by ERMU.
2. Customer agrees to comply with the Rules, Regulations and Policies o~ERMU,
and the ordinances of the City of Elk River, applicable to ERMU~'s provision of
electriclwater service to the Service Address.
3. Customer agrees to make payment of all amounts billed by ERMU for
electriclwater service provided to the Service Address, and agrees that ERMU
:may disconnect service to the Ser~rice Address if Customer has defaulted under
the terms of this Agreement or has failed to make payment of any amount billed
by ERMU within 3 o days of the date such amount was due.
4. Customer agrees that electriclwater service to the Service Address will not be
provided, and will be disconnected if currently provided, unless and until.
Customer submits a deposit ~Deposit~ in the amount set forth below.
5. Customer agrees that the purpose of the Deposit is to secure Customer's timely
payment of amounts billed by ERMU to the Service Address, and Customer
agrees that E~J may draw on the Deposit and apply the amount drawn to any
amounts awed by Customer to ER~/IU which are ~ 0 days or more past due.
Customer further agrees that return of the Deposit following the discontinuation
of electriclwater service to the Service .A.ddress shall be governed by the terms of
this Agreement and the Deposit receipt set forth below.
6. Customer agrees that the Deposit shall be in the form of a cash deposit ar an
irrevocable letter of credit. If in the form of an irrevocable letter of credit.
Customer agrees that the letter of credit will be renewed at least 3~ days prior to
its expiration and that failure to renew the letter of credit may result in the letter of
credit being drawn on and the cash recovered from the letter of credit being held
by ER,~IU as a cash deposit, If ERC~ is not able to draw on the letter of credit,
Customer agrees to submit a cash deposit prior to the e~piratian of the letter of
credit, and further agrees that failure to submit the required cash deposit shall be
cause for immediate termination of service by ERMU.
DEPOSIT RECEIPT
ERMU ac~nowled~es receipt of the Deposit in the amount of ~
EIC.U agrees to pay interest on the Deposit at the rate established by Minnesota Statutes.
EIi~IU may, at its option, pay the interest at intervals it chooses, but at least annually, by
direct payment or as a credit on Customer's account.
ERMU agrees that any portion ofthe Deposit remaining a~Cer Customer has discontinued
electriclwater service to the Service Address will be returned to customer within 45 days
of the termination of service, provided Customer has paid in full all amounts due on the
account. 1f Customer has not paid in full within 3 4 days of the termination of service, the
Deposit will be applied to any outstanding amounts owed by Customer to ERMU. ~f the
Deposit is not sufficient to cover the amount due, the Customer shall remain liable to
E]J for the balance and shall pay the balance due within 15 days of notice from
ER1~IU. EIIIU reserves the right to use reasonable legal means to collect amounts due.
Customer;
ERMU:
Ey: Ey:
Its: Its:
G~.277~1 ~8 ~1