(a) Form of security. Unless exempted under Subsection (f), when a customer applies for service, he must also submit a security deposit in one of the following forms:
(1) cash;
(2) guaranty bond;
(3) letter of credit drawn on a state or federally chartered lending institution;
(4) guarantee letter from another person who has an account with the department for service and has a satisfactory credit history with the department; or
(5) other equivalent security approved by the director.
(b) Amount. The director shall establish the amount of a security deposit in accordance with Section 49-18.8.
(c) Failure to provide security. The director may refuse or discontinue service if a person fails to:
(1) make a required security deposit with his application; or
(2) increase the amount of his security deposit after being notified that an increase is required.
(d) Form of noncash security. A customer must submit a noncash security deposit on a form provided by the director or on a form approved by the director and the city attorney.
(e) Hardship cases. In cases of hardship the director may allow residential service customers to make cash deposits in installments.
(f) Exemptions from security deposit requirement. Any of the following persons is not required to post a security deposit, provided he has a satisfactory credit history with the department:
(1) A person seeking residential service who presents proof that he is 65 years of age or older.
(2) A person seeking residential service who presents proof that he owns or is presently buying the residence to be served.
(3) A person seeking service who provides a current report from a consumer credit reporting agency indicating a good credit standing.
(4) A person who has had at least 12 months continuous service within the last 24 months and left no unpaid balance.
(5) A person who can provide proof that his account with another utility is not delinquent and that timely payments have been made to that utility for a minimum of 12 consecutive months within the past 24 months. A letter from the utility indicating that the requirements of this exception have been met, or monthly bills from the utility stamped paid (including a current or final bill), constitutes acceptable proof that the requirements of this exception have been met.
(g) Withdrawal of exemption. If a customer establishes an account without a security deposit, but subsequently loses his satisfactory credit history with the department, a security deposit may be required as a condition for continued service.
(h) Exceptions to section. This section does not apply to:
(1) governmental entities;
(2) wholesale service contracts; or
(3) applications for permits required under this chapter. (Ord. 19201)