According to Mr. Luckow, the deposit that the City asked for and that he paid on December 4, 2009 was $410.00. In his letter to the city, (below) Mr. Luckow seems to suggest that his former tenants kept the heat in the house much higher than when he and his wife occupied the home, leading to the much higher cost of heating, and thus the higher deposit price as he again took responsibility for paying the utilities.
City Administrator Adam Ledford presented the members of the Sac City Council with documentation indicating that Sac City's deposit policy is to charge a deposit equal to the highest month's bill in the previous 12 months. He then produced documentation indicating that this policy is consistent with the policy of other member municipalities from Black Hills Alliance. He also checked with Mid-America and the League of Cities and confirmed that those organizations too either recommend or follow the same policy. In a follow up conversation with Mr. Ledford, he indicated that to go against that policy can lead to a situation that leaves the city legally vulnerable due to the inconsistency between what the working policy is and what is in writing at the state. Because the State allows the city to have a gas utility, they have to have a written policy that matches the City's working policy. This may be enforceable by a fine.
According to Mr. Ledford, In order to qualify for a rebate, the customer has to pay their bills on time for 12 months and show during those twelve months that the highest bill was lower than the deposit. The customer can then submit a letter of request for a rebate.
Councilman Jim Johnston indicated that the City has received several requests asking for forgiveness of the utility deposit. Said Mr. Johnston, "I understand, and I feel for you, but if we start forgiving these, we're going to open up a can of worms..." He went on to say, "...I just don’t think we can bend on it."
Councilman Gary Hansen said, "This will be the first time we've ever done it, if we do."
Councilman Jim Frederick said, "I just wish we could’ve went back to the $250, [that was the highest average for the previous three years,] but if we can't, we can't I guess."
Mayor Barb Bloes pointed out that the wording of the policy indicates that the council could charge less than the full amount, but was answered by Mr. Ledford saying that it was the policy to charge the highest amount from the previous 12 months and that if the City Council wants to charge less, then they will have to change the governing policy that is filed with the state that states explicitly what rules they will follow when charging a deposit.
After the policy discussion, Mr. Luckow took a last stab at getting the deposit forgiven by pointing out that if someone were considering buying his home, they might not do so based on how high the utility deposit is, but to no avail.
The Sac City Council decided to leave the policy in place and charge Mr. Luckow and his wife, the full $410.00.
Copyright (c)2007-2009 Curtis Bloes
All Rights Reserved
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