SUBJECT:
Title
Request Approval of Attached Policy 24-01 Establishing Credit Associated with Limited Liability Company (LLC) Utility Account(s) (Budget Impact - None)
Body
INITIATOR:
DEPARTMENT:
Jody Kirkman, P.E., Utilities Director
Utilities
DESCRIPTION/BACKGROUND:
When establishing a utilities service accounts, the County requires an applicant for utilities service to satisfactorily establish credit but such establishment of credit shall not relieve the customer from complying with the County’s rules for prompt payment. Without proper establishment of credit for Limited Liability Companies (LLCs), the utilities account could potentially become an uncollectable liability for the County should a balance for services provided remain unpaid on the utility account. The Utilities Department will incorporate a request for a letter of personal guarantee in addition to the payment of a security deposit, which will satisfy the credit requirements as they apply to small business LLCs where there is a single owner. Larger LLCs with multiple LLCs embedded within a single LLC, will be required to meet one of the five (5) options within the policy before providing water or sewer service to the LLC. The policy allows Marion County Utilities (MCU) the opportunity to provide five (5) method options to satisfy creditworthiness requirement.
BUDGET/IMPACT:
None
RECOMMENDED ACTION:
Recommended action
Motion to approve and authorize the Chairman to execute the Policy for Establishing Credit associated with Limited Liability Company (LLC) Utility Account(s).
end