Each applicant for service who has not had an account for service
in Santa Monica for a period of at least six consecutive billing periods,
part of which has been within the preceding twelve months, or whose
payment record at another address has been unsatisfactory in the judgment
of the Utilities Manager shall be required to place a deposit with
the City to guarantee the payment of all water service, sewer service
and refuse collection charges. However, if a customer can show proof
of prompt payment of rent or other utilities, such deposit shall not
be required. A deposit shall also be required of any customer who
allows his or her payment record to become unsatisfactory during the
period in which water service, sewer service or refuse collection
is received from the City. The amount of this deposit shall be approximately
equal to an estimated three months billing for water service, sewer
service and refuse collection charges, provided, however, that the
minimum deposit shall be set by resolution of the City Council.
Public agencies shall not be required to place deposits.
Should any required deposit exceed two hundred and fifty dollars,
a corporate surety bond in a form satisfactory to the City may be
deposited in lieu of cash.
After the deposit has been held for six consecutive billing
periods following July 1, 1986, during which time the customer's record
has been satisfactory, said deposit shall be refunded or credited
to the customer's account either upon request by the customer or when
initiated by the City. If the deposit is credited to the customer's
account, interest at a rate of one percent less than the average interest
received by the City on invested funds for the preceding year determined
quarterly shall be also credited to the customer's account. Deposits
refunded to the customer shall be without interest.
Upon the discontinuance of any service, the deposit may be applied
to any outstanding water service, sewer service or refuse collection
charges in the customer's name, and any balance of deposit then remaining
in the hands of the City shall be returned to the person by whom such
deposit was made, without interest.
(Prior code § 7210; amended
by Ord. No. 1385CCS, adopted 9/9/86; Ord. No. 1836CCS § 11,
adopted 12/12/95)