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HomeMy WebLinkAboutResolution - 2367 STATE OF CALIFORNIA ) RESOLUTION NO. 2367 COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO,CALIFORNIA, REQUIRING CASH SECURITY DEPOSITS FOR WATER AND SEWER SERVICE BASED ON CREDITWORTHINESS WHEREAS, Public Utility Code Section 10009.6 requires that the decision of the City of San Jacinto (the "City") to require a new utility applicant to deposit a sum of money with the public utility prior to establishing an account and furnishing service shall be based solely upon the creditworthiness of the applicant as determined by the City; and WHEREAS, Public Utility Code Section 10009.6 authorizes the City to require a security deposit in an amount up to three times the estimated average monthly bill; and WHEREAS, Sections 13,08.050 and 8.24.050 of the San Jacinto Municipal Code, authorize the City Council of the City of San Jacinto (the "City Council") to set the amount of security deposits required for water and sewer services; and WHEREAS, the City proposes to require applicants for water and sewer y services, who are renting or leasing property within the City's water and/or sewer service area, to pay a security deposit based on an applicant's creditworthiness before obtaining service; and WHEREAS, the City has determined that the City can best determine the creditworthiness of water and/or sewer customers based on commercially available credit ratings established by companies that specialize in the determination of creditworthiness; and WHEREAS,the City has determined that it is in the best interests of the City and its residents to recoup the costs incurred by the City in determining the creditworthiness of water and/or sewer applicants by charging such water andlor sewer applicants the actual cost of obtaining such commercially available credit ratings; NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto, County of Riverside, State of California, as follows: Page I ol'2 SECTION 1: In order to initiate water or sewer service, or both, from the City of San Jacinto, any applicant who is or will be renting or leasing the property to which such service is sought to be provided shall pay a non-refundable cash security deposit to the City of San Jacinto. The amount of such security deposit shall be based solely on the creditworthiness of the applicant as determined by Equifax, Experian, or TransUnion, or by such other commercially available credit rating company. The ratings set forth in Exhibit "A" attached hereto and incorporated by reference herein shall determine the amount of the security deposit required to be paid by each applicant. A separate security deposit shall be required for water and sewer service applied for. SECTION 2: In addition to the security deposit required by Section 1 of this Resolution, the applicant for water or sewer service, or both, shall be required to pay to the City of San Jacinto, prior to such service being commenced, the actual cost to the City of obtaining the credit score as required by Section 1. An applicant seeking both water and sewer service from the City shall be responsible for only one such credit rating application provided that such applicant seeks such water and sewer service with one application. SECTION 3: if any provision or clause of this Resolution is held invalid, such invalidity shall not affect other provisions of this Resolution that can be given effect without the invalid provision or application, and to this end, the provisions of this Resolution are declared to be severable. SECTION 4: This Resolution shall take effect immediately upon its adoption. SECTIONS: The City Council hereby finds and determines that, in accordance with the California Environmental Quality Act ("CEQA") and the CEQA Guidelines, this Resolution is exempt from CEQA pursuant to Section 15378 and Section 15273 of the CEQA Guidelines because the adopted charges are for the purpose of meeting operational and maintenance expenses of the aforementioned City's water and sewer systems and facilities. City staff is hereby directed to file with the County Clerk a notice of exemption within three (3) working days of the adoption of this Resolution. APPROVED AND ADOPTED this 1st day of August, 2002 by the following vote: Ayes: Ayres, Carlson-$uydos, Conner Nays: Good Absent: None Abstain: None City of San Jacinto ames M. Conner, Mayor ATTEST: arothy L. houinard, City Clerk EXHIBIT "A" �ftw TO RESOLUTION NO. 2367 CREDIT REPORT REQUIRED SECURITY DEPOSIT 1. Score. 700+ 1. No security deposit required. 2. Score: 600-699 2. One month estimated average monthly bill' required. 3. Score: 500-599 3. Two months estimated average monthly bill required. 4. Score: less than 500 4. Three months estimated average monthly bill required. The estimated average monthly bill shall be determined by citywide service area average for such type of service, unless the Finance Director determines based on extenuating circumstances that such circumstances require another method of calculation.