ORD 1991-27 - Permitting Security For Water & Sewer Bills 10-15-1991ORDINANCE NO. 91-27
AN ORDINANCE AMENDING CHAPTER 17, WATER
AND SEWERS, OF THE CODE OF ORDINANCES OF
THE CITY OF HUNTSVILLE, E, TEXAS, TO PERMIT
ADDITIONAL SECURITY FOR BILLS; AND MAKING
OTHER PROVISIONS AND FINDINGS RELATED
THERETO.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, that:
SECTION 1: Chapter 17, Water and Sewers of the Code of Ordinances of the City of
Huntsville, Texas, is amended by changing Section 17 -12. Connection charges; deposits to
secure payment of utility service bills, as follows:
Sec. 17 -12. Connection charges; deposits to secure payment of utility service bills.
a. A fifteen dollar ($15.00) connection fee shall be made for any new service application
or changes in existing service applications.
b. The utility office supervisor shall require any applicant for water, sewer or sanitation
service to post a deposit to secure payment of utility service charges, as follows:
(1) Any firm, corporation or commercial account applying for water service shall
deposit with the City of Huntsville, as security for the payment of future
charges, a sum equal to two (2) times the average estimated monthly utility
service charge for the premises for which utility services are requested. Past
accounts from previous customers at the same location, or accounts of a
comparable usage factor, may be used in arriving at the estimated monthly
charge for determining the amount of deposit.
(2) Any person applying for residential water, sewer and garbage service shall
place with the City a sum of sixty dollars ($60.00) for a utility deposit;
provided, however, that persons who do not receive all three (3) services shall
be required to post only a deposit with the City in the amount of twenty
dollars ($20.00) for each service received.
Upon the sale or transfer of property, or change in customer or occupancy of
any premises served by City water service, no water, sewer or sanitation
service shall be furnished to the new owner, customer or occupant of such
premises unless and until such deposit as required by this section is paid.
(3)
Any person, firm or corporation who fails to notify the City of Huntsville of
a change in ownership, title or occupancy of premises resulting in a different
person or entity having responsibility for the payment of utility service charges,
shall be subject to immediate discontinuance of utility service, unless and until
the previous customer's account is finalized and the deposit called for herein
is made.
(4) A utility deposit shall not be required for the interim period (three (3) months
maximum) that a rental house is being prepared for occupancy, provided that
the owner has current residential service.
(5)
A blanket deposit, equal to the cumulative average monthly utility service
charge, shall be required for a residential customer with multiple accounts.
Any multiple dwelling unit with more than five (5) units shall require a
separate commercial deposit.
(6) Any customer that is put on the "cut -off' list (a residential customer that has
not paid the two (2) months prior bills and is about to receive a third month's
billing or a commercial customer that has not paid their bill by the due date)
more than twice in one year shall be required to increase their deposit to the
average amount due at "cut -off' date. A notice of the increase will be sent to
the customer which must be paid by the customer if they appear on the cut -off
list a third time. Failure to pay the increased deposit would result in
discontinuance of service.
c. No person shall attempt to avoid any payment under this chapter by changing names
on an account. The City may transfer a delinquent payment from one customer to
another account of that customer. Utility service cannot be discontinued for
delinquency in payment for utility service by a previous occupant.
d. Every applicant who previously has been a City utility customer and whose service
was discontinued for nonpayment of bills or has terminated service without paying
a bill shall be required to pay all amounts due.
e. Utility deposits will be refunded upon termination of service, provided that the
customer has fully satisfied all charges due the City. Residential customer deposits
shall be refunded at the end of three years with a good payment record. Good
payment record means that the customer has not paid a bill more than twice past the
penalty date in the last twelve (12) months.
Security for payment of utility service charges may be made by cash deposit with the
City, or by an approved certificate of deposit in the name of the City of Huntsville
at a Walker County financial institution, or by an approved letter of credit at a
Walker County financial institution.
ZZ
g.
A residential customer with a currently active account may guarantee payment on one
additional single unit residential customer. Any unpaid balances will be transferred
to the account of the guaranteeing customer. The customer guaranteeing the account
must have a twenty-four (24) month history with the City and may not have been
delinquent more than twice in any twelve (12) month period.
SECTION 3: This Ordinance shall take effect immediately upon its adoption.
APPROVED this �5 a f C9't'1991.
ATTEST:
uth DeShaw, City Secretary
APPROVED AS TO FORM:
Scott Bounds, City Attorney
THE CITY OF HUNTSVILLE
Z3
y W. H. Ho • ges. ayo