§ 78-20. Bill payment guarantees.

(a)

Required amount. The director of the water services department is authorized and directed to require each accountholder, before taking water under the general meter rate, the suburban water rate (except as provided for in water purchase contracts) and the fire protection rate, to make a cash deposit against which the water services department may charge any unpaid bills for the following: water service; meter, hydrant or valve resealing; termination of service; meter repair; sanitary and stormwater sewer service; or other authorized charges. For customers estimated to use less than 1,000 cubic feet per month, the deposit shall be $110.00. For customers estimated to use more than 1,000 cubic feet per month, the deposit shall be not less than the estimated cost of water and sewer service for two billing periods. Either interest shall be paid on cash deposits as required by state statute or deposits held by the director of the water services department shall be refunded after two years.

(b)

Additional deposit. An additional deposit above the amount required by subsection (a) of this section, not to exceed the estimated cost of four months' water, sanitary and stormwater sewer service, may be required by the director of the water services department for any accountholder whose account reflects a history of repeated delinquencies. Failure to provide the additional deposit authorized in this subsection shall constitute grounds for discontinuance of water service.

(c)

Refund; waiver of deposit. All bill payment guarantees taken, including a bond in lieu of cash deposit, shall be held for at least two years or until the account is terminated. The director of the water services department may waive deposits on additional accounts for an existing accountholder with known good credit. In cases where an accountholder has multiple properties or is between tenants, the deposit may be waived when the accountholder credit rating is good.

(d)

Transfer of service. When an accountholder transfers service from one location to another, the director of the water services department may waive any additional deposit.

(e)

Termination of service. When a contract for water service is terminated, the director of the water services department shall apply the deposit against any unpaid bills associated with the contract, and if the amount is $10.00 or more, shall refund the remainder of the deposit to the depositor. Refunds in an amount under $10.00 will be made only upon written request of the accountholder.

(f)

Bond in lieu of cash deposit. In lieu of a cash deposit, the director of water services department may accept, as a bill payment guarantee, a corporate surety bond by a surety company authorized to do business in the state, in the amount of the deposit required but not less than $1,000.00. Such surety bond shall be subject to the approvals of the city attorney as to form; of the director of the water services department as to the amount, terms and conditions of the bond; and of the director of finance as to the qualifications of the surety. The surety bond shall be filed with and kept by the director of the water services department until refunded.

(g)

Commercial accounts. In addition to any bill payment guarantee, all commercial accounts shall enter into and execute a contract for service, on a form provided by the water services department, specifying the parties responsible for payment. These parties shall remain responsible for all water used until notification is received in writing of the date service is to be terminated.

(Ord. No. 120551, § 1, 6-28-12; Ord. No. 140174 , § 1, 3-27-14; Ord. No. 150145 , § 1, 3-26-15; Ord. No. 160166 , § 1, 4-7-16; Ord. No. 180138 , § 1, 3-22-18)

Cross reference

Refund of water deposits by division of consumer services, § 2-495.