§ 26-20. Procedure for bankrupt customers.

(a)

Upon receipt by the city of notice of the filing of a petition in bankruptcy by any water and/or sewer customer, the city shall suspend the old account and place in those city records related to the suspended account a notice that no attempt be made to collect on the account any charges for water, sewer or garbage service unpaid as of the date of the bankruptcy filing.

(b)

The city shall secure an actual water meter reading within ten (10) working days after receipt of the notice of bankruptcy to be used as a cut-off of the suspended account and for the initial reading of the new account. If the city is unable to secure access to the premises for an actual reading, the city may estimate the initial reading on the new account from consumption information contained in the last bill sent prior to bankruptcy filing.

(c)

In addition, the city shall, upon receipt of notice of the filing of the petition in bankruptcy by a water and/or sewer customer, send a written notice to the debtor, or the attorney for the debtor, that the debtor is required to make a deposit with the water and sewer department as security for continued service. Such deposit shall be made within twenty (20) days after notification to the debtor or the debtor's attorney, and shall be the greater of seventy dollars ($70.00) for each residential dwelling unit, or eighty dollars ($80.00) for each commercial occupancy, or two (2) months' average monthly bills calculated from the previous one (1) year of service to such premises.

(d)

Any debtor who does not make the required deposit within the twenty (20) days shall be subject to discontinuation of service.

(e)

In no event shall any person seeking relief from the bankruptcy court have service discontinued with respect to bills outstanding prior to filing of bankruptcy.

(f)

Any debtor who makes a timely deposit but who does not thereafter make timely payments shall be subject to receiving turn-off notices and may have service discontinued as any other customer. The deposit required in subsection (c) shall be used toward payment of any billed amounts accrued after the date of the bankruptcy. Such deposit may be made only by cash certified checks and money orders.

(Code 1965, § 26-21(f); Ord. No. 1227, § 2, 4-12-88)