Chapter 13.28
LIEN ON REAL ESTATE FOR DELINQUENT UTILITY PAYMENTS AND ACCOUNT RESOLUTION PROCEDURES
Sections:
13.28.020 Delinquent utility account resolution process.
13.28.010 Lien rights.
A. The City of North Pole shall have a lien upon any and all real property serviced by any of the utilities referenced in this title for the payment of all charges incurred by the utility customer with the City. As according to AS 29.35.010(17), Extraterritorial jurisdiction, the City has legal authority to have a lien upon any and all real property serviced by any of the utilities to North Pole Utility customers outside of the City limits and within any water or sewer services areas authorized by the Regulatory Commission of Alaska. This lien shall be superior to any and all other liens to the maximum extent allowed under State law.
B. The Utility Billing Clerk shall maintain a list of all individuals whose utility accounts with the City become seriously delinquent (as defined in NPMC 13.28.020(C)). The list shall include the name of the individual holding the account with the North Pole Utility, the legal description of the property serviced by the North Pole Utility, and the amount delinquent. The Utility Billing Clerk shall cause a lien to be recorded for the amounts owed, including fees, costs and attorney fees, ninety days from the date of delinquency.
C. The lien created in this section may be foreclosed upon pursuant to the procedures set forth in NPMC 13.28.020.
D. The customer of the City utility shall pay all administrative fees, costs and attorney fees incurred by the City in the collection of the delinquent utility bills and said amount shall be included in the lien in favor of the City. (Ord. 19-02 § 2, 2019; Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 11-04 § 2, 2011; Ord. 99-7 § 3, 1999)
13.28.020 Delinquent utility account resolution process.
A. Past Due Accounts. When a utility account is not paid in full by the due date listed on the utility bill, the account becomes past due. When the account balance becomes past due it is assessed a late charge calculated at 0.00875 percent of the past due account balance. Failure to receive mail will not be recognized as a valid excuse for late payments. The customer whose account is past due shall receive their next regular utility bill indicating the account balance including any late and additional charges.
When a utility account for a tenant becomes past due, the landlord shall be sent a notice that their tenant’s account has become past due. The notice shall state that should the tenant not pay the next utility bill in full, the account shall be declared delinquent and the utility account shall be transferred to the landlord and the landlord shall be responsible for all past and future utility charges accrued for the account.
B. Delinquent Account. A utility account shall be declared delinquent if the balance of all charges due on the account are not paid in full by the due date for the first bill issued after the utility account became past due. If the delinquent account is for a tenant, when the account is determined to be delinquent, the North Pole Utility shall transfer the account to the property owner who will be responsible for all past and future charges assessed to the account.
1. When an account has been determined to be delinquent, the North Pole Utility will send the account holder a notice by certified mail or other mail delivery service that provides acknowledgment of delivery. The notice will provide a copy of the most recent utility bill that shows the delinquent account balance; indicates the amount of the account balance, including all additional charges; and notification that the account holder has fifteen business days from the date that the notice was mailed to pay in full the delinquent account balance or sign a legally binding confession of judgment that creates a payment plan.
a. The account balance shall include a late charge calculated at 0.00875 percent of the account balance with each successive bill that the account is past due or delinquent since the account became past due.
b. The utility account shall be assessed a liquidated damages fee of $25 (twenty-five dollars) to process and mail the delinquent notice.
C. Seriously Delinquent Account. If a utility account is not paid in full by the due date of the second utility bill after the account became past due, the account shall be declared seriously delinquent, and the City shall do the following:
1. When an account has been declared to be seriously delinquent, the North Pole Utility will send the account holder a notice by certified mail or other mail delivery service that provides acknowledgment of delivery. The notice will provide a copy of the most recent utility bill that shows the delinquent account balance; indicates the amount of the account balance, including all additional charges; and notification that the account has been declared seriously delinquent and that the account has been turned over to the City Attorney for foreclosure.
2. If the North Pole Utility has declared a utility account to be seriously delinquent, the North Pole Utility shall add a liquidated damages charge to the account balance equal to applying and removing a lien; and turn the account over to the City Attorney for foreclosure.
3. The North Pole Utility shall be entitled to terminate water service to a delinquent utility account holder. If the account holder has neither paid the delinquent utility account balance in full by the deadline specified in the notification of serious delinquency nor signed a confession of judgment, the City may initiate action to disconnect water service to the delinquent property service address. (NPMC 13.12.130(B)).
4. All legal fees and costs associated with resolving a delinquent utility account shall be borne by the property owner. The property owner shall be responsible for the delinquent account and any associated charges, costs or attorney fees.
5. All accounts not paid in full upon completion of the above process, including account holders who fail to timely satisfy the terms of a confession of judgment, shall be subject to foreclosure of the entire parcel of real estate served by the North Pole Utility by complaint filed in the District or Superior Courts of the State of Alaska, as appropriate for the amount due. Upon presenting proof of completion of the process set forth in this chapter, and after the passage of sixty days from service of the foreclosure complaint, the City shall be entitled to a judgment of foreclosure against the real estate and judgment against the property owner, unless the account has been paid in full plus costs, attorney fees and interest incurred until the account is paid in full.
6. Upon the sale of foreclosed real estate, the property owner shall be entitled to all proceeds in excess of the amount owed to the City, after payment of all costs of sale or any other costs or attorney fees incurred by the City in collecting on the account. (Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 11-04 § 2, 2011)