Needles Municipal Code § 4.9 Stop Loss/ Maximum Delinquency/Collection Policy"

A "stop-loss" maximum amount equal to one (1) month's billing period is

hereby established. Once a customer account reaches the stop-loss maximum amount, the NPUA or the City shall provide the customer with a warning as set forth in the "Terms and Conditions" for the various utilities established by the City and as may be amended from time to time. The warning notice shall provide the customer with ten ( 10) days to pay the past due amount. If payment of the delinquent amount cannot be made in full within the ten (10) day period, the customer shall sign an amortization agreement ("Payment Agreement"), agreeing and acknowledging that the customer's account must be kept current and that the past due amount must be paid in equal monthly installments over a period of six (6) months – twelve (12) months dependent on the customer’s ability to pay. If payment installments are not paid as set forth in the Payment Agreement, the customer's utilities will be disconnected. A Payment Agreement shall only be offered to a customer if the customer has not defaulted on a prior Payment Agreement within the previous twelve (12) month period.

Before the utilities may be restored, the customer shall be required to pay

one-half (1/2) of the amount in arrears; however, in the event the account is in the "final status" (the final bill has been prepared and the customer's deposit(s) have been applied to the outstanding balance), the customer shall be required to pay a new deposit in an amount as set forth in the Terms and Conditions. The customer shall also execute a separate Payment Agreement agreeing and acknowledging that the customer's account must be kept current and that the balance (the remaining one-half (1/2) of the amount in arrears) shall be paid in equal monthly installments over a period set in section 4.8.1 The customer shall further acknowledge and agree that service may be discontinued immediately, without further notice, if payment installments are not paid as set forth in the Payment Agreement and/or the current bill is not paid timely.

If services have been disconnected as a result of non­payment, and (1) the customer

does not reactivate said services, and (2) the bill is in the final status, the final bill will be sent to a collections agency.

A deposit or a letter of credit is required when a customer is initiating service with

the NPUA as set forth in the Terms and Conditions except for "Large Users", defined below. In the event the customer receives two (2) late notices within a twelve (12) month period, a deposit will be required for continuation of service. The NPUA will provide the customer with written notice that a deposit, in the amount equal to two (2) times customer's highest monthly bill during the previous twelve (12) month period, is due. The amount of the deposit due will be added to customer's next utility bill. NPUA will refund the deposit to the customer after it has received twelve (12) months of timely payments from the customer. A Large User is defined as a customer whose monthly utility bills exceed, or are expected to exceed, $20,000 on average. A cash deposit shall be required of Large Users.

In the event that, after the deposit has been refunded to the customer, the

customer receives two (2) late notices within a twelve (12) month period, a subsequent/new deposit will be required for continuation of service. The NPUA will provide the customer with written notice that a new deposit, in the amount equal to two (2) times customer's highest monthly bill during the previous twelve (12) month period, is due. The amount of the new deposit due will be added to customer's next utility bill. NPUA will refund the deposit to the customer after the NPUA has received twelve (12) months of timely payments from the customer.

5. Service responsibilities of city and customer.