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:
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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.