HomeMy WebLinkAboutResolution - 3398 STATE OF CALIFORNIA) RESOLUTION NO. 3398
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA, REQUIRING SECURITY DEPOSITS FOR
WATER, SEWER AND SOLID WASTE SERVICE BASED ON
CREDIT WORTHINESS
WHEREAS, Public Utility Code Section 10009.6 requires that the decision of the
City of San Jacinto ("City") to require a utility service applicant to deposit a sum of
money with the City 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, Section 13.08.050 of the San Jacinto Municipal Code authorizes the
City Council of the City of San Jacinto ("City Council") to set the amount of security
deposit required for water, sewer and solid waste services; and
WHEREAS, the City Council approved Resolution No. 2367 in August 2002, that
requires all applicants for water and sewer services to pay a non-refundable cash
security deposit based on the applicant's creditworthiness, as determined by
companies specializing in ascertaining creditworthiness, before obtaining service;
and
WHEREAS, the City determined in Resolution No. 2367 that it is in the best interests
of the City and its residents to recoup costs incurred by the City in determining the
creditworthiness of water, sewer and solid waste service applicants by charging
such applicants the actual cost of obtaining such commercially available credit
ratings; and
WHEREAS, it is determined by this Resolution that the security deposit is to be
retained in an appropriate non-interest bearing deposit account in the Water
Enterprise fund until such time that the customer's utility accounts are fully closed
and reconciled; and
WHEREAS, at the closure of the related service account, the security deposit shall
be applied to any outstanding balance due the City for water, sewer and solid waste
services; and
WHEREAS, any credit balance remaining in the deposit or service account shall be
refunded to the account holder within 60 (sixty) days following account
reconcilement and closure.
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City
Council of the City of San Jacinto:
SECTION 1. To initiate or reinitiate water, sewer, solid waste (or any
combination thereof) service from the City of San Jacinto, all applicants shall
pay a cash security deposit to the City, based solely upon the
creditworthiness of the applicant as determined by a 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. ("Reinitiate" includes, but is not limited to, any transfers of
an account to another property as well as initiation of an account of an
account following shut-off.) A security deposit shall be required for each utility
account at each service location.
SECTION 2. The security deposit is to be retained in an appropriate non-
interest bearing deposit account in the Water Enterprise fund until such time
that the customer's utility service accounts are fully closed and reconciled.
At the closure of the related service account, the security deposit shall be
applied to any outstanding balance due the City for utility services. Any credit
balance remaining in the deposit or service account shall be refunded to the
account holder within 60 (sixty) days following account reconcilement and
closure.
SECTION 3. All applicants, in addition to the security deposit and prior to
obtaining service, shall pay the City of San Jacinto the actual cost of obtaining
such commercially available credit ratings used in determining the applicant's
creditworthiness.
SECTION 4. If any provision or clause of this Resolution be 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 5. This Resolution shall take effect immediately upon its adoption.
SECTION 6. The City Council hereby finds and determines that, in
accordance with the California Environmental Quality Act ("CEQA") and
CEQA Guidelines, that 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 County Clerk a Notice of
Exemption within three (3) working days of the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 161h day of August, 2011, by the
following vote:
Ayes: Bartel, Di Memmo, Kotyuk, Ledezma, Miller
Nays: None
Absent: None
Abstain: None
City of San Jacinto
Scott Miller, Mayor
ATTEST:
Richard Miller, City Clerk
APPROVED AS TO FORM:
BEST BEST & KRIEGER, I.LP
Jeffrey S. Ballinger, ity Attorney
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RESOLUTION NO. 3398
EXHIBIT "A"
CREDIT SCORE REQUIRED SECURITY DEPOSIT
Score: 700+ No security deposit required
Score: 600 - 699 One (1) times estimated average applicable
monthly utility bill'`
Score: 500 - 599 Two (2) times estimated average applicable
monthly utility bill
Score: less than 500 Three (3) times estimated average applicable
monthly utility bill
The estimated average monthly bill shall be determined by citywide service area average for such type
of service, unless extenuating circumstances, as determined by the Finance Director of the City of San
Jacinto, require a different method of calculation.
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