§ 55-52 — Security deposits

§ 55-52. - Security deposits.

(a) Every applicant for water, sewer, or refuse service shall be required to make a security deposit for each and every account, prior to service being initiated, to guarantee payment of all utility fees and charges. (1) the amount of such security deposit shall be established by policy of the Director based upon: a. the anticipated charges to be accrued on said account; b. the proposed and actual uses of the premises to be served; c. the payment record, credit record, and the standing of the applicant; d. the proposed type and volume of the services provided; e. the size of the meter at the premises to be served; and f. such other information as the Director may deem relevant. (2) provided, however, the Director may, in his discretion, permit applicants with established good payment records to establish service without a security deposit. (3) and, provided, the Director may, in his discretion, permit applicants with good payment records to transfer service from another address without a deposit. (4) based upon the considerations listed in Subsection (a)(1) hereof, the Director, in his discretion, may require that a deposit be maintained until the account is terminated, regardless of standing and payment record. (5) at any time during which an account is active, the Director, in his discretion, may require a new, additional, or replacement security deposit. (6) the security deposit shall be in cash or such other medium acceptable to the Director. (b) The security deposit shall be considered as a guarantee of the payment of fees and charges on the account and shall not relieve the customer of the obligation to pay all charges and fees when the same are due. The security deposit may be applied to the payment of any outstanding charges or fees on the delinquent or terminated account of the customer who made the security deposit. Where a security deposit is applied to an account for the partial or complete satisfaction of a delinquency, the Director shall require a new security deposit on said account if service is to be continued. (c) Should services be terminated, and all or a portion of the security deposit remains after the satisfaction of all charges and fees, said remaining security deposit shall be mailed to the customer of record at the billing address or such other address as provided by the policies and discretion of the Director. (d) Security deposits shall be credited to an account upon determination by the Director that the security deposit is no longer necessary in light of the considerations in Subsection (a)(1). (e) Failure of an applicant or customer to timely make a deposit shall result in the denial of service initiation or the termination of utility services, respectively. (f) The Director shall establish a policy to determine whether a security deposit is required as a condition of initiation or continuation of service and whether a security deposit may be billed to an applicant or customer, based upon the considerations listed in Subsection (a)(1). (g) Should any applicant or customer desire and request, the utilities superintendent shall discuss any consideration or determination as to the establishment, release, maintenance, or request for a deposit; and the timing under which the deposit must be paid, with the requesting applicant or customer. (h) No security deposit shall be required of the United States Government, the State, the City, or any agency or governmental subdivision thereof. (i) The applicant or customer may post a good and sufficient surety bond in lieu of cash security deposit with a surety company in good standing. The surety bond shall be in a form satisfactory to the Municipal Counselor and shall guarantee payment of all service charges and fees at all locations and on all accounts where service is requested by the customer. The amount of the bond shall be fixed by the Director, but shall not be less than the amount provided for cash security deposits. (j) The Director may require application of the security deposit to the customer's charges under circumstances where the customer's water meter has sustained damages through no fault of the City, its agents or employees. (k) The Director may require application of security deposit upon failure of the customer to make timely payment of service charges and fees on any utility account. Where the security deposit is applied pursuant to a customer's failure to make timely payments, the Director shall require a new security deposit for the continuation or reestablishment of utility services.

(Code 1970, § 35-19; Code 1980, § 55-52; Ord. No. 19080, § 1, 9-27-88)