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A. The authority shall approve any request within the city limits for a water tap and connection, a sewer tap on an existing line or a sewer tap on a new line and any electrical service connection. Prior to granting this approval, the customer shall have paid the deposit and connection or tap charge as applicable and set by motion or resolution. The deposit shall serve as a guarantee for the payment of charges for utility service and other amounts owed in connection with the utility service. It shall be held in trust by the authority. When a customer's utility service is disconnected, the deposit or any part of such amount deposited which remains after all such charges and amounts due the authority have been satisfied, shall be returned to the customer, or to the authority if unclaimed by the customer, after notice as required by law.
B. A fee for reconnection of utility service where the service has been turned off or a meter has been disconnected by the authority for any reason shall be set by the authority. For any reconnection of utility service the charge shall be set by the authority.
C. Any person making an application for utility service shall make a deposit with his application according to the following:
1. Deposit Defined: A deposit is a guarantee for payment of any and all bills rendered by the authority to the user of either electric, water, sewer and/or solid waste services.
2. Schedule Of Deposits: Prior to establishment of utility services, the authority may require a minimum deposit in full, in accordance with the following schedule:
Water and garbage
Electric and water
Water and garbage
Electric and water
3. Higher Deposit Amount: However, the authority reserves the right to require a higher deposit amount if the customer has received service in the past and has had service suspended for nonpayment or has a past due account balance on a closed account. Existing customer deposits will be increased if any of the following conditions occur: return of a check or draft item, service order is issued for disconnect due to nonpayment or unauthorized use of service without proper authorization from the authority.
4. Authority Discretion For Deposit Amount: The authority may require a minimum of two (2) times the amount of the most recent twelve (12) month average monthly utility bill for any and all services or a maximum of two (2) times the most recent twelve (12) month period "highest" bill for any and all services.
5. Transfer Fee: Effective January 1, 2018, a fee of twenty dollars ($20.00) per transaction shall be assessed for transferring service to a customer from one address to another address.
6. Deposit Amounts May Be Amended: The authority shall from time to time by motion or resolution set or amend the fees and charges for deposits by customers of the water, electric and garbage system. A copy of the current fees or charges shall be kept on file in the authority office.
D. The deposit shall be held by the City Clerk, and if at any time the person making the deposit should desire to discontinue the use of utility services, he shall notify the City Clerk, in writing, and shall accompany his application with all arrears, if any, and in case the application is not accompanied with the charges, then the City shall deduct from the deposit the amount of utility charges against all accounts held by the person, if any, shall be returned to the person making the application. Notwithstanding, those utility customers possessing an outstanding credit rating and who have paid all bills owed to the Duncan Public Utilities Authority, the bills being paid in a timely manner, for the twelve (12) month period preceding the enactment of this section, shall be refunded in full those amounts placed with the City as security utility deposits. Further, that all utility customers placing a security utility deposit with the City from the date of the enactment of this section shall be eligible to have the utility deposit refunded after a period of five (5) years from the time the deposit is placed with the City if all payments due and owing the utility are made in a timely manner. Payment in a timely manner is defined as payment within thirty (30) days from the billing date.
E. Those individuals who have been refunded a security deposit, but who have not made required payments twice within a twelve (12) month period shall be required to replace the security deposit with the City at its current level, or the utility service will be discontinued. (Prior Code § 18-87; amd. Ord. 1226, 6-26-1984; Ord. 1246, 8-13-1985; 2015 Code; Ord. 1771, 11-28-2017)