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A. Deposits.

1. Customer. Applications for water, sewer or stormwater/drainage service by a customer who is the owner or owner’s agent of the serviced property and who has previously been delinquent in paying for such service shall be accompanied by a deposit equal to twice the largest bill at the service address applied for the prior two years. Payments must be made by owner or owner’s agent.

2. As authorized by 11 U.S.C. Section 366, unless otherwise directed by the director of the affected department, the minimum deposit for adequate assurance of payment in the event of bankruptcy shall be:

a. Two months estimated utility charges for Chapter 7 and Chapter 11 filings; and

b. One month estimated utility charges for Chapter 13 filings.

3. Rental Tenants. Applications for service made by the tenant of a rented or leased residential or commercial premises who has previously been delinquent in paying for such service shall be accompanied by a deposit equal to twice the amount of the largest bill at the service address applied for or at the tenant’s previous service address for the prior two years.

4. Processing of Deposits. Deposits shall not bear interest. Upon termination of service to the customer/owner or rental tenant, the amount of the deposit shall be applied against any water, sewer, stormwater/drainage or other utility charges then due or to become due from the customer/owner or rental tenant, including any late fees, interest, penalties, reconnection/disconnect fees, or other charges or fees, and shall be remitted to the appropriate fund. If the amount of the deposit is not sufficient to pay the total unpaid charges, remittance shall be made to the appropriate fund or funds pursuant to rules prescribed pursuant to VMC 14.04.020. If there is a balance remaining on the deposit after payment of all charges, such balance shall be refunded, less a city processing fee of $5.00.

5. Application of Deposit Prior to Termination of Service. In the event that the director determines, based on rules and criteria prescribed pursuant to VMC 14.04.020, that a deposit is no longer needed to ensure payment prior to termination of services to the customer, the deposit may, with customer consent, be applied to current utility charges.

6. Nothing in this title shall prevent the city from requiring new or additional deposits should the conditions so warrant.

B. Late Fee. There shall be added to any delinquent water, sewer, or stormwater bill a one-time late fee equal to 10 percent of the delinquent bill.

C. Missed Appointments. There shall be a $25.00 fee for customers who miss an appointment for which a city employee is dispatched to the service address unless the service call is cancelled by the customer 24 hours prior to the appointment.

D. Incorrect Bank Numbers. For those customers who choose to utilize an electronic bill paying system, and who provide the city an incorrect routing transit number of the bank or incorrect bank account number, there shall be a $15.00 fee assessed for each time the city utilizes such bank number until the customer provides the correct number.

E. Requested Reads. Customers who request for meter reads not resulting from the sale or transfer of property will be charged $20.00 for the first meter read, and $25.00 for each additional meter read.

F. Dishonored Checks. Utility customers whose checks to the city are dishonored shall be subject to the fees established under VMC 3.08.060. The city reserves the right to require payment by cash or certified funds from any customer who has previously tendered a dishonored check.

G. Application of Payments. Payments, when received, shall be applied by date in the following sequence:

1. Deposits;

2. Service charges;

3. Stormwater penalties;

4. Sewer penalties;

5. Water penalties;

6. Stormwater;

7. Sewer; and then

8. Water.

H. Budget Payment Plan. The director is hereby authorized to create and implement a budget payment plan in accordance with state law. Such plan shall permit the authorized customer to make payments of utility charges on an annual averaged basis rather than on a per billing cycle basis, with at least one annual adjustment to ensure that the amount paid by the customer on an annual basis reflects the actual charges incurred. (Ord. M-4391 § 3, 2022; Ord. M-4359 § 1, 2021; Ord. M-4022 § 21, 2012; Ord. M-3755 § 17, 2006)