Chapter 3.26
UTILITY DEPOSIT SYSTEM

Sections:

3.26.010    Deposit for utility service.

3.26.020    Exemption from deposit – Qualifications.

3.26.010 Deposit for utility service.

Applications for electrical, water, or other utility service, made by the tenant of leased or rented residential premises, shall be accompanied by a utility services deposit; provided, however, that the deposit will not be required for electrical services for those set forth in RMC 14.12.010. The deposit amount shall equal twice the monthly average bill of the previous 12 months for that occupied location without regard to prior discounted rates. If the premises has not been occupied continuously for the last 12 months, then the deposit will be as provided in the city’s posted fee schedule.

Upon termination of service to the tenant, the amount of the deposit may be applied against any electrical, water or other utility charges then due or to become due from the tenant, including any connection or reconnection charges, and shall be remitted to the appropriate fund or funds. If the amount of the deposit is not sufficient to pay the total of the unpaid charges, remittance shall be made to the appropriate fund or funds on a pro rata basis. If there is a balance remaining after payment of all utility charges then due or to become due from the tenant, such balance shall be refunded. [Ord. 27-81; Ord. 34-83; Ord. 42-01; Ord. 63-19 § 1].

3.26.020 Exemption from deposit – Qualifications.

A. If a new customer presents a letter of credit reference that is for the immediate prior 12 months of continuous service from a comparable utility company and meets the definition of good credit history, then there is an exemption from the requirement to make a deposit for utility services. Good credit history is defined as follows:

1. One or fewer delinquent notices within the previous 12 months; and

2. No disconnects for nonpayment of a bill or deposit within the previous 12 months; and

3. One or fewer checks returned to the city or prior utility for insufficient funds from his/her bank within the previous 12 months; and

4. No outstanding balances for utilities with the city within the last five years.

Existing utility customers who meet the qualifications for good credit, but who applied for services prior to the passage of the amendatory ordinance codified in this section, will automatically have their deposit applied back to their account after the end of the month in which they are determined to qualify for the exemption. Upon completion of a 12-month service period, all customers covered by the deposit will undergo an automatic review. If the above qualifications are met, the deposit shall be applied to the customer’s account after the last day of the month in which they qualify.

B. Deposit Reinstated. The deposit requirement will be reinstated when:

1. After receiving two delinquent notices since the start of the account, another delinquent notice is mailed within 12 months of the last delinquent notice; or

2. A customer is on the list for disconnects on the day disconnects are started; or

3. Two payments are returned to the city for nonsufficient funds; or

4. A customer has an outstanding balance for utilities with the city created within the last five years; or

5. A customer has a pattern of delinquent notices and one payment is returned to the city for nonsufficient funds.

The deposit will be retained until the customer reestablishes a good credit history for a period of 12 months from the time the reestablished deposit is fully paid. [Ord. 17-87; Ord. 16-89; Ord. 48-94; Ord. 34-96; Ord. 20-01; Ord. 42-01; Ord. 12-07].