A utility security deposit is established in order to secure payment of city utility services rendered, including electric, water, sewer, CATV, broadband, and any other utility the city may offer.
(A) Amount of deposit. The city shall set the amount of a utility security deposit by resolution. In the event that the total monthly bill for an account exceeds this deposit amount for a period of three months within a six-month period, or if the balance due is over this deposit amount more than three times in a six-month period and the customer has demonstrated any type of delinquency with regards to the payment of this account, the Administrator may require an additional amount be paid so that a larger utility security deposit is being held for that account. If the customer fails to pay the additional deposit amounts as required, this shall result in disconnection of services to the account.
(B) Payment of deposit. The city requires the payment of the utility security deposit in full prior to connection of any services to a new account. The City Administrator or designated representative may make payment arrangements for the deposit using guidelines approved by Council. The city shall not accept or use security deposits to pay amounts due on active accounts. If a customer fails to pay a due bill and it is necessary to turn off services, the city shall not restore such services to said customer until she or he has paid in full all outstanding bills due on all utility services and all re-connect fees.
(C) Requirement for deposit. The city requires a utility security deposit on each account, regardless of the number or type of utility services it provides to that account.
(D) Variations to requirement for deposit.
(1) Commercial customers. A commercial customer who has a security deposit with the city for an account at a commercial location, shall not be required to pay a deposit on additional commercial location accounts. Security deposits on residential accounts of persons who also hold accounts that qualify as commercial do not qualify to be used for a commercial account deposit. Residences where home-based businesses are operated shall not be considered commercial locations, unless the area of the residence being used for the commercial operation has electric and water meters that are separate from the electric and water meters that service the residential portion of the location.
(2) Builders and developers. A builder or developer who has a security deposit with the city for an account at one temporary construction location or permanent development site, shall not be required to pay a deposit on up to four additional temporary location accounts or permanent development site accounts. Each additional deposit may also cover a maximum of five accounts. Security deposits on residential accounts of persons who also hold accounts that qualify as builder or developer do not qualify to be used for additional commercial or builder or developer accounts.
(3) Landlords. A landlord shall not be required to pay a deposit on rental location accounts.
(4) Residential Customers-A. A residential customer who has a security deposit with the city for their residential account and is building a new home in the city that they shall move into when it is completed shall be required to pay an additional deposit on the account for the new home. When the customer moves into the new residence and closes the old account, the city shall apply the security deposit to the final billing. If the amount of the refund exceeds the final bill, the city shall return the remainder of the refund to the customer after the next regularly scheduled check run. Non-payment of the closed account shall result in disconnection of services at the new account location.
(5) Residential Customers-B. A residential customer who has a security deposit with the city for their residential account and is moving to another location is required to pay an additional deposit on the account at the new location. When the customer closes the old account, the city shall apply the security deposit to the final billing. If the amount of the refund exceeds the final bill, the city shall return the remainder of the refund to the customer after the next regularly scheduled check run. Non-payment of the closed account may result in disconnection of services at the new account location.
(E) Grandfathered transition customers.
(1) Current utility account customers who have a $150 deposit with the city paid before November 2004, with the understanding that they would receive a refund of said deposit after 12 months of a good payment record, shall receive said refund as per their original agreement with the city.
(2) Current utility account customers who do not have a security deposit with the city or shall have that deposit refunded due to the deposit refund policy that was repealed in November 2004, shall also be required to provide a security deposit to the city, prior to resumption of service, under this policy when one of the following events occurs:
(a) The city disconnects an account on two occasions for non-payment of balances due (a dishonored check qualifies as non-payment) that was used to make payment on that utility account.
(b) The customer closes the account and opens a new account at another service location within the city's service area.
(F) Utility security deposit refund. When an account is closed out, the city shall apply the security deposit to the final billing. If the amount of the refund exceeds the final bill, the city shall return the remainder of the refund to the customer after the next regularly scheduled check run.
(Ord. 440, passed 10-26-2015)