§ 27-3. Customer deposits.
(a)
Deposit required. A deposit as specified in subsection (k) of this section or an acceptable alternative is required of all new customers of the City water, sewer, sanitation and reclaimed water systems.
(1)
Deposits shall be paid by cash, check, money order, or credit card.
(2)
Single-family residential customers may provide a credit reference letter from another water utility service provider documenting a satisfactory payment history for the previous 12-month period, instead of making a cash deposit.
(3)
Multifamily residential and commercial accounts may provide an acceptable irrevocable bank letter of credit or a surety bond as an alternative to making a cash deposit.
(b)
Customers with previous account history. A customer who had a previous account with the City and is applying for a new service must satisfy any outstanding balance owed the City on the previous account prior to receiving service at a new address. A customer who had a previous account may be exempted from paying a deposit, providing:
(1)
The previous account existed a minimum of 24 months immediately preceding application for the new account.
(2)
The customer has not, during the preceding 12 months:
a.
Made more than two payments received after the due date;
b.
Paid with a check refused by the bank;
c.
Been discontinued for nonpayment;
d.
Tampered with the meter;
e.
Used service in a fraudulent or unauthorized manner.
(3)
The new account will be in the same name as the previous account and will be the same type (single-family residential, multifamily residential or commercial).
(c)
Existing accounts subject to deposits. The City reserves the right to require a deposit on accounts that have exhibited any one of the characteristics enumerated in subsection (b)(2) of this section.
(d)
Additional deposits. The City reserves the right to require a larger deposit than listed in subsection (k) of this section, sufficient to recover all revenues on accounts when:
(1)
A customer is unable to furnish positive identification including a social security number or federal employer identification number when applying for utility services or re-establishing services after discontinuance; or
(2)
An account exhibits any one of the characteristics enumerated in subsection (b)(2) of this section.
The larger deposit may equal up to three times the deposit amounts listed in this chapter or three times the highest monthly bill for the immediately preceding 12 months, whichever is greater.
(e)
Receipt for deposit. The City shall provide a nontransferable receipt to the party paying the deposit. The deposit may be applied against any outstanding utility bill on a property for which the deposit is specified. A refund of a deposit will be made only to the person originally making the deposit, except as provided as follows:
(1)
Divorce. Customer deposit name may be changed from spouse to spouse without the consent of the customer whose name is currently listed in the account with a written, dated, and signed request from the spouse desiring the name change, and a copy of the settlement agreement or other legally binding document, designating him or her as the legal occupant of the residence.
(2)
Death. Customer deposit name may be changed to legal beneficiary with receipt of a copy of the death certificate and proof of beneficiary.
(f)
Record of deposit. The City shall keep records showing:
(1)
The name, address and date of birth of each customer making a deposit;
(2)
The service address for which the deposit was made;
(3)
The amount and date of the deposit; and
(4)
A record of each transaction concerning such deposit.
(g)
Deposit classifications. Deposits shall be held according to account classifications and required deposit amounts as follows:
(1)
For all single-family residential and those multifamily residential and commercial accounts requiring a deposit of less than $750.00, after a customer has had continuous active or standby service for a period of 24 months, the City shall credit the deposit and any accrued interest to the customer's account, provided the customer has not, in the preceding 12 months:
a.
Made more than two payments that were received after the due date;
b.
Paid with a check refused by a bank;
c.
Been turned off for nonpayment;
d.
Tampered with the meter; or
e.
Used service in a fraudulent or unauthorized manner.
(2)
For all multifamily residential and commercial accounts requiring a deposit of $750.00 or more, deposits shall be held for the life of the account.
(h)
Deposit interest. All deposits will be held in escrow. Interest on deposits will be credited annually to the utility account on which the deposit is being held. The rate of interest shall be set at the beginning of each fiscal year by the POD at a rate that the City reasonably could be expected to earn throughout the year. In the event actual interest rates earned by the City during any one quarter during the year change by more than 25 percent of the rate established by the POD, the POD shall either increase or decrease the interest rate as necessary.
(i)
Application of deposit when service is discontinued. Upon termination of service, the deposit and any accrued interest may be credited against the final bill and the balance, if any, returned to the customer.
(j)
Satisfaction of deposit required before service provided. For all new accounts, the deposit shall be charged to the customer's utility account and billed on the first billing statement. If the deposit is not paid in full by the due date of that bill, the account is subject to turn off.
(k)
Deposit amounts.
(1)
Water.
Meter Size (inches) Single-Family
Residential
Multifamily
Residential
and
Commercial
(per account)
5/8 or ¾ 50.00 $50.00
per unit
1 140.00 140.00 1½ 380.00 380.00 2 640.00 640.00 3 N/A
1,000.00 4 N/A
1,710.00 6 N/A
3,720.00 8 N/A
6,430.00 10 N/A
9,850.00 12 N/A
15,220.00 (2)
Wastewater.
Meter Size (inches) Single-Family
Residential
Multifamily
Residential
and
Commercial
(per account)
5/8 or ¾ $60.00 $60.00
per unit
1 150.00 150.00 1 ½ 320.00 320.00 2 540.00 540.00 3 N/A
1,180.00 4 N/A
2,010.00 6 N/A
4,380.00 8 N/A
7,590.00 10 N/A
11,620.00 12 N/A
17,870.00 (3)
Multifamily and commercial customers. Water and sewer deposits for multifamily and commercial customers may be calculated based on two times the monthly average water and sewer use, provided the following conditions apply:
a.
New customers.
1.
At least 24 months worth of water and sewer use history is available at the site of the new utility account; and
2.
The new customer provides documentation demonstrating that the site for the utility account will continue to be utilized in a manner comparable with the previous customer that established the 24 months worth of water and sewer use history.
b.
Existing customers.
1.
Existing customer has 24 months worth of established water and sewer use history at the service location which can be used to calculate an average monthly use; and
2.
The existing customer provides documentation demonstrating that the use of the site for the account will remain substantially the same and average water and sewer use will remain unchanged.
(4)
Reclaimed water. Two times the flat monthly charge based on the amount of acreage served.
(5)
Stormwater management utility. Two times the flat monthly charge based on the property being served.
(6)
Outside City surcharge. Deposits in subsections (k)(1), (2), (3) and (4) of this section for service outside the limits of the City are subject to a 25 percent increase to cover higher charges due to outside City surcharge.
(Code 1973, § 28-48; Code 1992, § 27-3; Ord. No. 1146-F, §§ 13—15, 11-30-1989; Ord. No. 2084-F, § 5, 9-5-1991; Ord. No. 123-G, §§ 1—3, 2-3-1994; Ord. No. 176-G, §§ 1—3, 9-22-1994; Ord. No. 220-G, § 1, 1-11-1996; Ord. No. 247-G, § 1, 10-3-1996; Ord. No. 407-G, § 1, 10-21-1999; Ord. No. 424-G, § 1, 6-1-2000; Ord. No. 527-G, §§ 1—4, 3-21-2002; Ord. No. 651-G, §§ 1, 2, 3-18-2004; Ord. No. 770-G, § 1, 3-16-2006; Ord. No. 994-G, §§ 1—3, 9-16-2010; Ord. No. 84-H, § 1, 9-19-2013)