The Knoxville City Council held its regular meeting on Monday night to discuss the first reading of an ordinance regarding a Sanitary User Charge System.
According to the proposed ordinance, which is similar to changes recently adopted by the Water Board for Knoxville Water Works, new residential customers would be required to pay a deposit of $100. Commercial customers would also be required to also pay a deposit, which would be determined as follows:
-New Customers At Existing Accounts: The deposit shall be the same as the account’s highest bill for any billing period within the last two (2) years. No deposit shall be less than $100.
-New Commercial Accounts: The deposit shall be an amount determined by the public works director based on bills of existing similar type businesses.
-Commercial Deposits: Commercial deposits of two hundred dollars ($200.00) or less shall be paid in cash.
-Payment of Deposits: Commercial deposits or more than two hundred dollars ($200.00) may be paid by either cash or by posting a utility payment bond approved by the City for the amount of the deposit, or by a letter of credit from the consumer’s financial institution. Such letter of credit must be provided in a form dictated by the City.
-Deposits By Bond: Deposits paid by securing a utility payment bond must be renewed annually and the amount for which the bond must be held will be reviewed and adjusted every two (2) years.
-Also, any customer who has an excellent pay history (no more than one (1) late payment and no disconnects) for their initial one (1) year on service, shall have their deposit refunded.
-If a customer does not meet the criteria listed above to have their deposit refunded, the deposit shall stay on file indefinitely to guarantee payment toward a final bill. Any customer who has a deposit on file at the time of approval hereof, and meets the requirements, shall have their deposit(s) refunded as expeditiously as possible.