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Home My WebLink AboutORD 2007-76 - Commercial Utility DepositGEORGETOWN,AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AMENDING ARTICLE VIIII, SECTION 13.04,230 ENTITLEX "DEPOSITS" OF THE CODE OF ORDINANCES OF THE CITY OF i. REPEALING C,ORDINANCES ANI RESOLUTIONS;i, SEVERABILITY CLAUSE;iESTABLISHING AN EFFECTIVE . DATE. WHEREAS, The City of Georgetown updated its current commercial utility deposit policies in 2003; and WHEREAS, The City Council of the City of Georgetown wishes to implement utility deposit policies that are fair and equitable, while still maintaining financial security, to guard against loss due to non-payment of utility bills; and WHEREAS, The City of Georgetown wishes to implement policies that are specific and easily understandable; and WHEREAS, The City Council of the City of Georgetown wishes to amend the current utility deposit policies, and adopt proposed policies, effective on all utility accounts on and after November 1, 2007. NOW, THEREFORE, HE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this ordinance implements Finance Policy End 4.0 of the Century Plan - Policy Plan Element, which states: "The City will conduct all municipal operations in an efficient business -like manner and sufficient financial resources for both short-term and long-term needs are provided," and further finds that the enactment of this ordinance is not inconsistent or in conflict with any other Century Plan Policies, as required by Section 2.03 of the Administrative Chapter of the Policy Plan. SECTION 2. Article VII "MISCELLANEOUS" of the Code of Ordinances of the City of Georgetown, Texas is hereby amended to read as follows: A. Residential. A $150.00 deposit is required on each dwelling unit unless otherwise specified by this section or if the customer can provide an original letter of credit from another utility company for the most recent 12 -month period preceding the connect date that has no late payments or insufficient checks. B. Nonresidential. Unless otherwise specified by this section, or by the City Council, nonresidential establishments are required to post a utility deposit equal to at least twice the average monthly bill of that establishment or a similar establishment of its kind. The minimum nonresidential deposit is $150.00. A bank letter of credit or a surety bond, for the deposit amount, and containing terms specified by the Director of Finance and Administration may be accepted in lieu of a cash deposit. The deposit may be waived with a letter of credit from another utility company for the most recent 36 -month period preceding the connect date that shows no late payments or insufficient checks. The business represented in the letter of credit must have the same owner and be of a similar size and usage as the business requesting services. C. Federal and State Political Subdivisions. Federal and State political subdivisions are not required to post a utility deposit. D. Satisfactory Payment History Deposit Refund. The required utility deposit shall be refunded to a utility customer after one year of satisfactory payment history for utility services. Satisfactory Payment History is defined as a payment history that does not include any Non -Sufficient Fund (NSF) payments or any charge of a ten percent penalty for nonpayment by the due date, as provided in Section 13.04.190(B). E. Satisfactory Payment History Deposit Waiver. 1. A utility deposit is not required from a former residential customer who previously established a satisfactory payment history with the City during the most recent one- year period during which the customer was a customer of the City. 2. A current residential customer, Who has a 12 -month Satisfactory Payment History, can apply for utility service at another residential location without posting a deposit. 3. A current non-residential customer, who has a 36 -month Satisfactory Payment History, can apply for utility service at another non-residential location without posting a deposit. 4. A deposit is not required of a current non-residential customer expanding an existing business into a contiguous space having separate meters, as long as that business has maintained a satisfactory payment history for the 12 months prior to the time of expansion; the name on the account is the same; and the account cannot stand on its own, if the original account closed. r� +r .r r r r ► r Q r♦ r y .+ r r w rrr� r. r r ♦ r' 'r r ar ra r� s r .+ w.r rar rr a •a r • IMAR K ME r O r ♦• .+ r� Am ma MAMMEMBArMAELWIMM w r • ar r ♦�• ter -a a =a MEN rr r r•. r � r r r w m A&W we r r r r r r r •^WW► s rr w. r r r r r rmaula ,.. W r• • n + r rr rr .r rr r r. r ♦ a a r r .i r w �' ♦• �. sv r�. .r• r. w r. r•r. .,. a ara • �� . r • r r r.. rs♦ rrrr a r' ♦ r� r .. "MMI, ♦ r r WA W r w. rr rr F. Deposit Required After Termination. A standard utility deposit is required of any utility customer, regardless of payment history, if utility service has been discontinued for nonpayment. Utility customers shall thereafter be entitled to a satisfactory payment history Commercial Dep Waiver 2007.doc Page 2 of 2 deposit refund upon the completion of the required one-year satisfactory payment history, as computed from the date of reconnect, in accordance with the provisions of this section. G—peser. Gni. Present customers having a lower than required currently established deposit are not required to increase their deposit amount to the i currently established amount, even when transferring the deposit to a new location. However, such customers establishing a new, additional service or having service terminated due to nonpayment are required to make the app -Pap_ ete currently required deposit. SECTION 3. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict with this Ordinance are hereby repealed, and are no longer of any force and effect. SECTION 4. If any provision of this ordinance or application thereof to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are hereby declared to be severable. SECTION 5. The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This ordinance shall become effective and be in full force on all utility accounts on and after November 1, 2007. PASSED AND APPROVED on First Reading on the 25 day of September 2007. PASSED AND APPROVED on Second Reading on the 9th day of October 2007. ATTEST: Sandra D. Lee City Secretary APPROVED AS TO FORM: r f Patricia Carls, City Attorney _11-0 Page 3 of 2 THE CITY OF GEORGE