§ 98-56. Deposits and refunds.
(a)
Application for service. Whenever a consumer desires to establish service with the utility billing division, he shall tender to such division, at least one day prior to the time he desires his premises to be connected with the water services, the proper deposit.
(b)
Amount of deposit.
(1)
A residential consumer occupying a single-family dwelling house shall be required to place on deposit the amount of $50.00 if he is the owner of the dwelling house; however, a residential consumer occupying a single-family dwelling house shall be required to place on deposit the amount of $200.00 if he is not the owner of the dwelling house.
(2)
Commercial water deposits shall be determined by the utility billing supervisor. This deposit is to be generally comparable to two months' water service of a commercial business similar to the applicant.
(3)
Deposits for apartment houses, mobile parks or other multifamily dwelling projects shall be determined by the utility billing supervisor, but shall not be less per unit than the deposit required of single-family dwelling units.
(c)
Increase of deposits. Deposits for commercial consumers, apartment houses, mobile parks or other multifamily projects may be increased from time to time if it is determined by the utility billing supervisor that additional deposits are necessary in order to ensure payment of charges for water service. The additional deposit shall be tendered to the utility billing division within 30 days after notice of the increase in the deposit. Section 98-61 shall apply if the additional deposit is not tendered within 30 days.
(d)
Refunds. Deposits will be refunded upon termination of service, provided the consumer has fully satisfied all charges due the city.
(e)
Form of deposits.
(1)
Deposits of less than $500.00 shall be cash deposits in the form of cash, check or money order.
(2)
Deposits of $500.00 or more for commercial consumers, apartment houses, mobile home parks or other multifamily dwelling projects shall be by:
a.
Cash;
b.
Irrevocable bank letter of credit, provided that the irrevocable bank letter of credit shall be:
1.
Drawn on an FDIC-insured bank located within Harris County or Chambers County, and
2.
For a period of not less than one year; or
c.
An assignment of security, provided that any security pledged shall be:
1.
Approved by the utility billing manager, and
2.
Placed in an FDIC-insured bank located within Harris County or Chambers County; or
d.
A bond, provided that the bond shall be:
1.
Issued by a surety licensed to do business in the state,
2.
In a form approved by the city attorney, and
3.
For a term of not less than one year.
Deposits in any form allowed herein shall be maintained throughout the period during which the city provides utility service. As such, any deposit that is to expire prior to the termination of utility service shall be renewed prior to its expiration and proof of such renewal must be submitted to the city's utility billing manager. The remedies for nonpayment of utility bills specified in section 98-61 shall apply if a deposit is not renewed prior to its expiration.
(Code 1967, § 31-54; Ord. No. 943, § 1, 11-7-68; Ord. No. 1479, § 1, 9-27-73; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2738, § 1, 9-27-79; Ord. No. 3054, § 1, 1-8-81; Ord. No. 4948, § 1, 3-24-88; Ord. No. 6005, § 1, 9-26-91; Ord. No. 8141, § 1, 11-25-97; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 11,646, § 1, 5-26-11)