4.1206 Establishing Credit.
(1) A customer may establish satisfactory credit through one of the methods below.
(a) Has paid City of Medford utility fees within the past one year and maintained their account in good standing; or
(b) Furnishes a letter of reference from another utility; or
(c) Receives a “no credit risk” report from the ONLINE Utility Exchange; or
(d) Provides the City with a cash deposit equal to a two-month estimated billing, not to exceed $500.00.
Any outstanding bills for previous service charges at any location by the responsible party shall be paid before an application will be accepted.
(2) A deposit may be required whenever, in the opinion of the City, there is a financial risk of non-payment. The deposit is based on the average two-month bill. A deposit is not a payment on account. If at any time a bill to a customer is not paid within 15 days after presentation, the deposit may be applied on the account thereof. Financial risk may be evidenced by, but is not limited to, the following:
(a) A customer without established credit with the City.
(b) A customer who established previous service as the responsible party under a different name.
(c) A customer who poses a credit risk according to the ONLINE Utility Exchange report.
(d) A customer refusing to give information requested by the City for the purpose of clarifying the customer’s identity or credit worthiness.
(e) A customer who has a history of delinquent payments with the City.
(f) A customer who has been referred to a collection agency for failure to pay bills when due.
(3) Upon discontinuance of service, the deposit will be applied to any closing bills and any remaining balance will be refunded.
(4) The City may, after the deposit has been held for 12 consecutive months, and provided service has been continuous and all bills for such service have been paid promptly, apply the deposit to the depositor’s account.
(5) No interest shall be paid on deposits held by the City.