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 Ocala
 Code of Ordinances
 Chapter 70. UTILITIES
 Article VII. BILLING PROCEDURES

  § 70-683. Service deposit generally.  

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  • Prior to initiating utility service, the city shall, except as otherwise provided herein, require a deposit from all utility service customers. Application for service and payment of the deposit shall constitute an agreement that the deposit is advance payment for future utility service which may be applied as otherwise provided in this section. The city shall require a deposit satisfactory to secure the payment of bills as they may mature.

    (1)

    Residential. A customer deposit for all utility services at each location shall be equal to two times the average bill for the subject premises for the previous 12 months. The city may, however, take into consideration a positive report from a credit reporting agency to assign the minimum deposit required. Deposit requirements shall be evaluated based upon their payment record with the city or evidence of a satisfactory credit history from another utility. No deposit shall be required from a homeowner who provides a letter of satisfactory credit from another utility, i.e., no termination of service, not more than two returned checks, or no delinquencies within the immediately preceding 24 months. Deposit for non-owner occupied customer cannot be waived.

    (2)

    Nonresidential. A customer deposit for all utility services at each location described as nonresidential, shall be required of all users in an amount equal to two times the customer's average or estimated average monthly billing, except as otherwise provided for in this section. Deposits can be made in one of the following forms:

    a.

    Cash deposited with the city.

    b.

    A certificate of deposit in the name of the customer, along with an assignment of the face amount of the certificate of deposit, executed by the customer and the bank from which the certificate of deposit was obtained. Upon termination of service, the face amount of the certificate of deposit will be refunded to the customer, less any outstanding charges.

    c.

    A surety bond issued by a surety company authorized to do business within the state, on bond forms provided by the city. The bonding company shall provide written notice to the city 30 days prior to cancellation of a bond.

    d.

    A letter of credit issued by a bank authorized to do business within the state and located in the county, upon terms and on forms approved by the city. Any bank providing a letter of credit shall be required to provide written notice to the city 60 days prior to cancellation of a letter of credit.

    (3)

    Transfer of residential deposits. Residential deposits may be transferred from one location or address to another location or address upon termination of service at the first location or address, provided the customer has maintained a good city utility bill payment record. The remaining balance for service at the first location or address shall be transferred to the new account and shall be due and payable on the next billing cycle.

    (4)

    Name change on deposit. A deposit can only be transferred to a different customer in the event of death or when a business has purchased all assets. The legal documents must specifically state that the utility deposits are part of the assets transferred to the new owners. Legal documents must be provided to substantiate qualification for any transfers under this subsection.

    (5)

    Poor payment policy. Residential customers with a history of poor payment may be required to convert their accounts to "Pay As You Go". Poor pay is defined as customer who has had a dishonored check, late payments, missed payments, default on a special payment arrangement (SPA), current diversion, meter tampering, a disconnect for nonpayment during the last consecutive 12-month period, failure to pay for all utility services billed, or any other payment issues.

    (6)

    Short-term service. A landlord with an existing service that needs short-term service for an unoccupied rental unit will be put on a "Pay As You Go" for that unit until a new tenant begins service.

    (7)

    Exemptions.

    a.

    Government agencies. A federal, state or local government shall initially not be required to pay a deposit.

    b.

    Multiple nonresidential accounts. A customer with an existing nonresidential account may make application for deposit exemption on additional nonresidential accounts providing the following criteria are met:

    1.

    The account must be current with no late payment charges in the past 12 months.

    2.

    The name of the business must match the name on the request for waiver.

    (8)

    Exceptions. City management may approve a review and/or adjustment, as warranted, of the total deposit amount as well as extended time for full payment of deposit not to exceed 12 months.

(Code 1961, § 21-3; Code 1985, § 24-181; Ord. No. 2784, § 22, 9-16-97; Ord. No. 3082, § 2, 8-22-00; Ord. No. 5127, § 1, 1-27-03; Ord. No. 5702, § 16, 8-21-07; Ord. No. 2009-6018, § 1, 11-3-09; Ord. No. 2016-17, § 3, 1-19-16)