HomeMy WebLinkAbout1397 12-14-1999ORDINANCE NO. 1397
AN ORDINANCE AMENDING SECTION 86-48 "DEPOSITS" OF
ARTICLE I OF CHAPTER 86 "UTILITIES" OF THE CODE OF
ORDINANCES OF THE CITY OF EULESS, TEXAS, TO
PROVIDE FOR SURETY BONDS IN LIEU OF CASH DEPOSITS;
PROVIDING A SEVERABILITY CLAUSE, PROVIDING A
SAVING CLAUSE, AND AN EFFECTIVE DATE.
WHEREAS, the Euless Code of Ordinances requires a cash deposit for water service
for each water service connection; and
WHEREAS, such deposits for certain uses, such as multiple family apartment units,
may be substantial in amount; and, and
WHEREAS, surety bonds issued by credit worthy insurance companies in appropriate
form would provide similar protection for the City to secure timely and appropriate payment of
the utility services;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
EULESS,TEXAS:
SECTION 1
THAT SECTION 86.48. "DEPOSITS" OF Article I of Chapter 86 of the Euless Code of
Ordinances is herewith amended by the addition of a new Subsection (c) and by the
amendment of the existing subsection (c) to hereafter be subsection (d) which new and
amended subsections are to hereafter be and read as follows;
"(c) In lieu of a cash deposit an applicant may provide a surety bond in favor
of the City of Euless in the amount of such required deposit and in form
acceptable to the City of Euless from a surety company that:
1) is authorized and admitted to write surety bonds in the state of Texas,
2) holds a certificate of authority from the United States secretary of the
treasury to qualify as a surety on obligations permitted or required
under federal law. and
3) has an A.M. Best & Company rating of A -6 or higher.
(d) Deposits shall be refunded or the surety bond returned or, if a balance is
due, applied against the final bill for services required upon termination
of the contract. The City will not pay interest on deposit funds."
SECTION 2
SEVERABILITY CLAUSE. That it is hereby declared to be the intention of the City
Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are
severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall
be declared invalid or unconstitutional by the valid judgement or decree of any court of
competent jurisdiction, such invalidity or unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the
same would have been enacted by the City Council without the incorporation in this
ordinance of any such invalid or unconstitutional phrase, clause, sentence, paragraph or
section.
SECTION 3
8& 6—
SAVING CLAUSE. That Chapter 7'8 of the Code of Ordinances, City of Euless,
Texas, as amended shall remain in full force and effect, save and except as amended by this
ordinance.
SECTION 4
EFFECTIVE DATE. This ordinance shall be in full force and effect from and after its
passage as provided by the Euless City Charter and the laws of the State of Texas.
PRESENTED AND GIVEN FIRST READING and approved at a regular meeting of the
Euless City Council on the 14th day of December, 1999, by a vote of 7 ayes, 0
nays, and 0 abstentions.
APPROVED:
Mary Lib S eh, Mayor
ATTEST:
San Crim, M , City Secretary
ORDINANCE NO. 1397