Chapter 13.28
LIEN ON REAL ESTATE FOR DELINQUENT UTILITY PAYMENTS
AND ACCOUNT RESOLUTION PROCEDURES

Sections:

13.28.010    Lien rights.

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. 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 are more than ninety days delinquent. The list shall include the name of the individual holding the account with the City utility, the legal description of the property serviced by the 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 Section 13.28.020 of this code.

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. 11-04 §2(part), 2011: Ord. 99-07 §3(part), 1999)

13.28.020 Delinquent utility account resolution process.

A.    Thirty Days Past Due Accounts. When a utility account becomes thirty days past due, the customer shall receive their regular utility bill indicating the account balance including any additional charges. In addition to sending the account holder their utility bill, the City shall do the following:

1.    The account balance shall include a late charge calculated at 0.00875 percent of the delinquent account balance.

2.    The account holder shall be sent by regular U.S. mail a separate notification that the account is delinquent.

B.    Sixty Days Past Due Accounts. When an account becomes sixty days past due, the customer shall receive their regular utility bill indicating the account balance including any additional charges. In addition to sending the account holder their utility bill, the City shall do the following:

1.    The account balance shall include a late charge calculated at 0.00875 percent of the delinquent account balance.

2.    A lien shall be filed against the property owner responsible for the account. If the utility account holder is a tenant, the lien shall be filed against the property owner.

3.    The utility account shall be assessed a liquidated damages fee equivalent to the charges to file and remove a lien plus a $25 (twenty-five dollar) filing fee.

4.    The account holder shall be sent a notice of account delinquency via certified mail indicating the amount of the account balance, including all additional charges, and notification that a lien has been filed against the property.

5.    The City will attempt to contact, by certified mail, the property owner if the delinquent account is for a tenant. It is the responsibility of property owners to notify the City of tenant-owner relationships and to provide the City with current contact information.

C.    Ninety Days Past Due. When an account becomes ninety days past due, the account holder shall receive their regular utility bill indicating account balance including any additional charges. In addition to sending the account holder their utility bill, the City shall do the following:

1.    The account balance shall include a late charge calculated at 0.00875 percent of the delinquent account balance.

2.    A liquidated damages charge of $50 (fifty dollars) shall be added to the account balance after determination of the late charge.

3.    The account holder shall be sent a notice of account delinquency via certified mail indicating the amount of the account balance, including all charges. The notification shall indicate the deadline that the account holder must pay the delinquent account balance or by which they must sign a legally binding confession of judgment specifying a repayment plan to prevent a shutoff of water service.

4.    A door hanger shall be placed at the residence of the delinquent account holder indicating the amount of the account balance, including all charges. The door hanger shall indicate the deadline that the account holder must pay the delinquent account balance or by which they must sign a legally binding Confession of Judgment specifying a repayment plan to prevent a shutoff of water service.

5.    If the account holder has neither paid the delinquent utility account balance in full by the deadline specified in the certified mail notification and in the door hanger notice nor signed a confession of judgment, the City shall, unless the account holder consents to the City entering the premises to shut off the water, initiate legal action to shut off water service to the property. Upon proof of compliance with this chapter, the City shall be entitled to a writ of assistance and an order allowing it to enter the premises served by the Utility for the purpose of shutting off the water service and to verify, at reasonable intervals based on the circumstances, that the water shutoff device has not been bypassed or tampered with.

6.    All legal fees and costs associated with resolving a delinquent utility account shall be borne by the account holder. In the case where the account is held by a tenant who fails to resolve the delinquent account, the landlord and tenant shall be jointly responsible for the delinquent account and any associated charges, costs or attorney fees.

7.    The City will attempt to contact by certified mail the property owner if the delinquent account is for a tenant. It is the responsibility of property owners to notify the City of tenant-owner relationships and to provide the City with current contact information.

8.    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 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 account holder, unless the account has been paid in full plus costs, attorney fees and interest incurred until the account is paid in full.

9.    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. 11-04 §2(part), 2011)