09/14/2010 Ordinances 9275ORDINANCE NO. 9275
An ordinance to amend Chapter 15 of the Grand Island City Code; to amend
Section 50 pertaining to the interest rate to be used in the accrual of interest on electric service
account deposits established under the commercial rate structure.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA:
SECTION 1. Section 15-50 of the Grand Island City Code is hereby amended to
read as follows:
§15-50. Deposit Requirements
(A) Except as provided below, all electric service accounts established under the commercial rate structure
shall be required to maintain a deposit in an amount to be determined by the utilities department as set forth in this
section.
(B) Deposits for accounts in existence before September 1, 1983, shall be maintained in the amount
established under the ordinances in effect at the time of the initial deposit, unless said deposit has been distributed
under the provisions of this section.
(C) Deposits for any account created on or after September 1, 1983, and deposits for all accounts for which
service has been reinstated after being disconnected for nonpayment shall be maintained in an amount of not less
than Two Hundred Dollars ($200), nor more than Two Thousand Dollars ($2,000), as determined by the utilities
department. The exact amount of the deposit required should be equal to approximately two times the estimated
billing for the highest usage month of the calendar year.
(D) From and after October 1, 2010, all deposits required herein shall accrue interest at the annually
adjusted interest rate based on the 3 month LIBOR as of October 1, or the next business day. Interest shall be
payable to the customer only at the time the deposit is refundable as provided in subsection E below.
(E) The deposit required herein shall be refunded to the customer as follows:
(1) When the electric service has been disconnected, whether at the request of the customer or for
nonpayment of the customer's electric bill, or a new account has been created for said service with a
different customer, and a final reading has been taken, any deposit on hand plus the accrued interest
thereon, and minus the amount of any unpaid billing statement and other charges, shall be refunded to
the customer; or
(2) After at least two years of continuous service to the customer, if the monthly payments for the
account have been made promptly, with no more than two delinquent payments during the twenty-four
(24) month period immediately preceding the request, the customer may request the utilities
department in writing to refund the deposit. Upon receipt of the request, and if the above conditions of
prompt payment have been met, the utilities department shall refund any deposit on hand, plus the
accrued interest to the customer. For the purposes of this subsection, a payment shall be deemed
delinquent if made more than fifteen (15) days after the date set forth on the monthly billing statement.
SECTION 2. Section 15-50 as now existing, and any ordinances or parts of
ordinances in conflict herewith are repealed.
Approved as to Form n
September 13, 2010 p ity Attorney
ORDINANCE NO. 9275 (Cont.)
SECTION 3. The validity of any section, subsection, sentence, clause, or phrase
of this ordinance shall not affect the validity or enforceability of any other section, subsection,
sentence, clause, or phrase thereof.
SECTION 4. That this ordinance shall be in force and take effect from and after
its passage and publication, within fifteen days in one issue of the Grand Island Independent as
provided by law.
Enacted: September 14, 2010.
Margaret ornady, Mayor
Attest:
RaNae Edwards, City Clerk
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