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HomeMy WebLinkAbout32 GRT WEST REC DEP 06-06-94ENDA___ ~ATE: JUNE 6, 1994 NO. 32 6-6-94 Inter-Com TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGiNEERiNG DIVISION SUBJECT: INFORN~TION REG~RDING GRF~T WESTERN REC~TION DEPOSITS SECURITY ~ECOMMENDATION Pleasure of the City Council. ~ISCAL IMPACT There is no fiscal impact on the City. BACKGROUND AND DISCUSSION This information has been agendized at the request of Councilmember Mik~ Doyle. Tustin City Code Section 4333 authorizes the~city Council to enter into a contract for the collection and disposal of solid waste material in - the City of Tustin. Pursuant to this section, the City Council has an axclusive franchise agreement with Great Western Reclamation for all trash hauling in Tustin, including residential, multi-family, commercial and industrial. Great Western collects a security deposit equal to two months normal service charge for all new commercial accounts. This deposit is 100% refundable after one year of service, at the regugst of the customer. Industrial accounts are required to pay a one month security deposit which is refundable after one year of good credit history, also at the request of the customer. Section 4353(c) allows the collection of a deposit from accounts with poor payment history in an amount equal to one quarter's normal service charge plus twelve percent (12%). This deposit is refunded after termination of service. It is not unusual for a utility to require a deposit for new accounts. Southern California Edison.(SCE) may require a deposit based upon credit information provided at the time the customer is applying for service. If a deposit is required, the amount ~s twice the average bill for the service address (based on past usage) The deposit is refunded~through a credit after two years of good payment history. Southern California Gas Company has the same policy as SCE, but refunds the deposit after one year. The Tustin Water Department requires a forty dollar ($40.00) deposit for all new residential accounts. New commercial accounts are required to pay a minimum deposit of forty dollars ($40.00), but the ~required deposit may be.higher for a large user (i.e., an apartment )mplex). These deposits are credited to the account after two years of ~ood Payment history. The City is presently revising its deposit requirements to ensure it is in line with other utilities. Lastly, the Irvine Ranch Water District requires'a one hundred dollar ($100.00) refundable deposit on all new commercial accounts. Robert Leden~ecker / Director of Public Works/Cit~ Engineer RL: KP: ccg: gwb&d Katie Pitcher ~ Administrative Assistant II