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)