Chapter 13.24
UTILITY RATES

Sections:

13.24.020    Metered water and sewer utility rates.

13.24.030    Senior determination.

13.24.040    Utility customer emergency payment fund.

13.24.050    Water meters required.

13.24.080    Significant industrial user (SIU) charges.

13.24.090    Repealed.

13.24.100    Negotiated rates.

13.24.110    Flat rates.

13.24.120    Account deposits.

13.24.130    Repealed.

13.24.020 Metered water and sewer utility rates.

Monthly water and sewer utility rates beginning January 1, 2020, shall be the following:

Customer class

Per gallon water

Monthly base water charge

Monthly electronic meter charge1

Per gallon sewer charge2

Monthly base sewer charge

FRR3,4 – Water per gallon charge

FRR3 – Sewer per gallon charge

FRR3 – Significant industrial discharger, sewer

Single-family residential

$0.02080

$5

$0.95

$0.02080

$5

$0.0025

$0.0025

NA

Senior single-family residential

$0.01040

$5

$0.95

$0.01040

$5

$0.0025

$0.0025

NA

Multifamily residential

$0.02080

$25

$0.95

$0.02080

$25

$0.0025

$0.0025

NA

Commercial

$0.02080

$25

$0.95

$0.02080

$25

$0.0025

$0.0025

NA

Commercial/significant industrial discharger

$0.02080

$25

$0.95

$0.02080

$25

NA

NA

$0.003911

Bulk water charge

$0.03

NA

NA

NA

NA

NA

NA

NA

Fire hydrant meter flushing

$0.035

$500 deposit5

NA

NA

NA

NA

NA

NA

1.    Monthly charge assessed to customers with electronic ultrasonic meters to offset cellular support charge assessed to the utility.

2.    The monthly sewer charge for the months of May, June, July and August will be capped at an amount not to exceed the average of the water usage during the months September through April for single-family and senior single-family residential customers only.

3.    Facility repair and replacement: funds generated to repair and replace utility capital infrastructure.

4.    According to the February 2017 legal settlement between the State of Alaska, Flint Hills Resources and City, the water FRR is to be waived for eligible customers in the water system expansion area through December 31, 2022.

5.    Fire hydrant meter deposit: The deposit is returned if the equipment is returned in good working order with no damages. Any damages to the equipment are deducted from the deposit. Any damages in excess of the deposit are added to the customer’s bulk water charges invoice.

(Ord. 23-07 § 2, 2023; Ord. 23-03 § 2, 2023; Ord. 22-26 § 2, 2022; Ord. 19-21 § 2, 2019; Ord. 18-30 § 2, 2018; Ord. 17-27 § 2, 2017; Ord. 16-28 § 2, 2016; Ord. 16-16 § 2, 2016; Ord. 15-22 § 2, 2015; Ord. 13-16 § 2, 2013; Ord. 12-24 § 2, 2013; Ord. 12-04 § 2, 2012; Ord. 11-11 § 2, 2011; Ord. 11-01 (Substitute A) § 2, 2011; Ord. 11-01 § 2, 2011; Ord. 08-25 § 2, 2008)

13.24.030 Senior determination.

A.    Senior Single-Family Residential. Senior citizens sixty-five years or older need only submit a utility discount rate request form once to receive the discounted rate for the duration of their utility account with the City. (Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 12-04 § 2, 2012)

13.24.040 Utility customer emergency payment fund.

A.    Purpose of the Utility Customer Emergency Payment Fund. The City of North Pole recognizes that residential utility customers can encounter emergency situations that make paying their monthly utility bills a hardship. To help prevent residential utility customers’ utility accounts becoming delinquent, the City has created the utility customer emergency payment fund. A residential utility customer facing an emergency that is causing them a financial hardship may apply for temporary assistance to pay all or a portion of their North Pole Utility bill.

B.    Funding of Utility Customer Emergency Payment Fund.

1.    Round-Up Utility Rate.

a.    Automatic Enrollment. All utility customers will automatically be enrolled in the round-up utility rate. The round-up utility rate shall be calculated by rounding up the total monthly utility charge on a utility bill to the nearest whole dollar amount; for example, a utility bill calculated at 47.23 would be rounded up to 48.00.

b.    Opt-Out Participation. Utility customers not wishing to participate in the round-up rate must opt out of the rate by providing a written request to be removed from the rate. A utility customer who opts out of the round-up rate will not be eligible for the benefits of the utility customer emergency payment fund commencing from the date they withdraw. Utility account holders who previously opted out of the round-up rate may request to re-enroll in the rate. A utility customer who withdrew from the rate will not be eligible for the benefits of the rate for a period of sixty days from the time they re-enrolled. In addition, an individual re-enrolling in the round-up rate shall not be eligible for any benefits of the rate for an event that occurred from the time they withdrew from the round-up rate through the end of the sixty-day waiting period after they re-enrolled in the round-up rate.

2.    The revenue generated by the round-up rate shall be used to support the utility customer emergency payment fund.

3.    Funds generated by the round-up rate shall be deposited in a dedicated fund.

4.    North Pole Utility customers may contribute to the utility customer emergency payment fund. When terminating their utility accounts, customers will be provided the option to transfer all or part of their deposits to the fund. Contributions to the utility customer emergency payment fund are not tax deductible.

C.    Management of Utility Customer Emergency Payment Fund. All funds contributed to the fund shall be deposited in a dedicated fund separate from the operating funds of the City. Funds of the utility customer emergency payment fund can only be used to offset North Pole water and sewer utility bills of residential utility customers requesting assistance. Funds of the utility customer emergency payment fund cannot be used to pay utility assessments; liquidated damages payments; commercial or multifamily utility bills; utility tie-in fees; legal fees associated with a delinquent utility account or accounts delinquent for nonemergency reasons. The purpose of the emergency fund is to provide temporary assistance to utility customers facing short-term hardships and not to provide ongoing utility bill subsidies for residential utility customers.

D.    Awarding Utility Customer Emergency Payment Fund.

1.    The City Council shall have the sole authority to disburse the funds of the utility customer emergency payment fund to utility customers applying for assistance to pay their North Pole Utility bills.

a.    Guidelines for Awarding Emergency Funds.

i.    Documented significant decline in household income that results in a demonstrated financial hardship.

ii.    Unexpected major household expenses like medical bills, emergency home repair, water line breaks causing an excessive water bill, emergency automobile repair, etc., that results in a demonstrated financial hardship.

iii.    Changes in family status like divorce, separation, or deployment of a military spouse that results in a demonstrated financial hardship.

iv.    Other criteria as approved by the City Council.

2.    Awarding Emergency Funds. The City Council can award assistance no greater than funds available in the utility customer emergency payment fund and cannot recommend awards that create a financial liability for the City. Awards are not cash payments but direct transfers from the utility customer emergency payment fund to the North Pole Utility to offset the applicant’s utility bill.

3.    Application for Utility Customer Emergency Payment Fund Awards. A residential North Pole Utility customer seeking an award from the utility customer emergency payment fund to help pay all or part of their North Pole Utility bill shall provide a written and notarized explanation of the reason they need an award and the supporting income information as needed to demonstrate financial need. The explanation shall include the dollar amount of their utility bill and the dollar amount of their award request. Applicants shall submit their request for an award no later than seven calendar days before the next regularly scheduled City Council meeting. The customer making the request shall submit their written request for assistance from the utility emergency assistance fund through the City Clerk to the City Council. The contents of the request shall be confidential. (Ord. 21-04 § 2, 2021)

13.24.050 Water meters required.

Water meters are required on all services connected to the North Pole Utility water system or sewer system. Meters shall be installed at the time of service connection to the North Pole Utility and utility billing shall begin at the time of service connection. All new construction with access to the City water system must install a meter loop to facilitate meter installation. The North Pole Utility will furnish an approved meter for each service. The customer shall ensure that the North Pole Utility has access to the meter for repair, replacement and performance of maintenance on the meter. All meters must be installed in a heated/conditioned space. (Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 12-04 § 2, 2012; Ord. 08-25 § 2, 2008; Ord. 04-08 § 2, 2004; Ord. 01-13 § 2, 2001; Ord. 00-16 § 2, 2000; Ord. 99-14 § 2, 1999; Ord. 97-18 § 3, 1997; Ord. 96-19 § 2, 1996; Ord. 95-21 § 2, 1995; Ord. 82-8 § 5.E, 1982)

13.24.080 Significant industrial user (SIU) charges.

In addition to the commercial rate cited in NPMC 13.24.020, significant industrial users (SIU), as defined in NPMC 13.20.010(D), shall be subject to the following added charges:

A.    Facilities Replacement Rate (FRR). This rate shall offset the cost of the City’s facilities used by the SIU. These funds will provide for replacing, increasing and/or augmenting the facilities so used to accommodate the private and commercial usage originally planned for.

1.    The following table contains the factors that shall be used in calculating the FRR:

 

LIFE

INTEREST

 

COMPONENT

(Months)

(Annum)

CRF

Lift stations

120

7%

0.0116

Treatment works

240

7%

0.0078

Sewer lines

480

7%

0.0062

i = Interest rate = 7.00%/year

CRF = Capital recovery factor (uniform series)

C = Construction value = Cost of major component

Qsiu = SIU flow (k gal./mo.)

Qdes = Design capacity flow (k gal./mo.)

FRR = Facilities replacement rate ($/k gal.)

Each major component (lift station, treatment works, lagoon, sewer line) of the SIU flow path shall be considered separately as to its design life and SIU proportion of flow capacity. The aggregate sum of the component shares shall be divided by the estimated total SIU monthly flow to arrive at a rate.

FRR =

Qsiu

x

C

x

CRF

+

for each major component

x

1

 

Qdes

 

 

 

 

 

 

 

Qsiu

The FRR shall be revised whenever there is a significant change in any of the affecting factors, but not more than once a year.

B.    High Strength Surcharge. In order to maintain a high quality of treatment and effluent discharge to the public waterways, it is the intention of the City to require any SIU to pretreat their sewage to meet the regulating parameters set forth in this section. If the SIU’s discharge into the City’s system exceeds these parameters due to an accidental discharge, the SIU shall in addition to the requirements in other sections and any fines and penalties be subject to the following high strength surcharge (HSS):

HSS =

BODsiu (excess)

x

R

+

TSSsiu (excess)

x

R

+

CODsiu (excess)

x

R

+

Tsiu (deficit)

x

R

 

200 mg/l

 

 

 

200 mg/l

 

 

 

500 mg/l

 

 

 

36°F

 

 

where:

    BODsiu (excess) = BODs of significant industrial user’s discharge, minus 200 mg/l.

    TSSsiu (excess) = Total suspended solids of significant industrial user’s discharge, minus 200 mg/l.

    CODsiu (excess) = COD of significant industrial user’s discharge, minus 500 mg/l.

    Tsiu (deficit) = 45°F minus temperature of significant industrial user’s discharge at the point of connection.

    R = The commercial rate cited in NPMC 13.24.020.

    The duration of HSS shall be from last permit-compliant sample to the succeeding permit-compliant sample measured by either the City or the SIU.

This charge applies only when the SIU discharge into the City’s system exceeds two hundred milligrams per liter BOD5, and/or two hundred milligrams per liter total suspended solids, and/or five hundred milligrams per liter chemical oxygen demand, and/or the temperature is less than forty degrees Fahrenheit.

C.    SIU-Specific Industrial Pretreatment Program (IPP) Fees. In addition to all other charges under this chapter, each SIU shall pay for any services specifically associated with that SIU for the administration, monitoring, or enforcement of the IPP. SIU-specific IPP services shall include, but are not limited to, IPP development costs, permit application and renewal, plan review, IPP compliance monitoring laboratory and inspection work, and spill or permit violation response work. The charges for such services will include the City’s direct costs, including charges from subcontractors, plus an administrative overhead fee from the City, and will be charged directly to the SIU. (Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; amended during 2015 reformat; Ord. 12-15 § 3, 2012; Ord. 12-04 § 2, 2012; Ord. 08-05 § 2, 2008; Ord. 01-16 § 2, 2001; Ord. 97-18 § 3, 1997; Ord. 96-19 § 2, 1996; Ord. 95-21 § 2, 1995; Ord. 93-6 § 2, 1993; Ord. 88-1 § 2, 1988; Ord. 87-12 § 3, 1987)

13.24.090 Fee for connection to City utility mains.

Repealed by Ord. 12-04. (Ord. 08-05 § 2, 2008; Ord. 98-16 § 2, 1998; Ord. 97-18 § 3, 1997; Ord. 96-19 § 2, 1996; Ord. 95-21 § 2, 1995; Ord. 93-6 § 2, 1993; Ord. 87-12 § 3, 1987; Ord. 82-8 § 5.G, 1982)

13.24.100 Negotiated rates.

Rates for special or temporary usage of utility services which are not strictly addressed in this chapter shall be established by the City Council on an individual case basis. (Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 12-04 § 2, 2012; Ord. 97-18 § 3, 1997; Ord. 96-19 § 2, 1996; Ord. 95-21 § 2, 1995; Ord. 93-6 § 2, 1993; Ord. 87-12 § 3, 1987; Ord. 82-8 § 5.H, 1982)

13.24.110 Flat rates.

A.    Utility Customers within the City Limits of the City of North Pole. Customers within the city limits of the City of North Pole whose water service is unmetered or whose water meter is nonfunctional or the Utility is unable to replace the water meter shall be charged the flat rates based upon their customer class. Customer’s failure to connect to available water and/or sewer service within the mandated two-year time period shall be cause for the property owner to be billed and required to pay the applicable monthly water and/or sewer flat rate fee on an ongoing month-by-month basis as per NPMC 13.12.090, Compulsory connection to City water and sewer utility.

B.    Utility Customers outside of the City Limits of the City of North Pole. Customers outside of the city limits within the City of North Pole’s recognized service area are not obligated to connect to the North Pole Utility and are not subject to the application of the flat rate unless their water service is unmetered or whose water meter is nonfunctional or the Utility is unable to replace the water meter shall be charged the flat rates based upon their customer class.

C.    Monthly water and sewer utility flat rates beginning January 1, 2019, shall be the following:

Customer class

Water

Monthly base water charge

Sewer

Monthly base sewer charge

FRR water

FRR sewer

FRR significant industrial discharger, sewer

Total monthly charge

Single-family residential

$70

$5

$70

$5

$5

$5

$140

Senior single-family residential

$25

$5

$25

$5

$5

$5

$70

Multifamily residential1

$70

$25

$70

$25

$5

$5

$140

Commercial2

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD

Commercial/ significant industrial discharger2

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD

1.    Multifamily water, sewer, FRR water, FRR sewer and total monthly charge are assessed per living units. A single water base charge and a single sewer base charge are assessed for the entire multifamily dwelling.

2.    Commercial and commercial significant industrial discharger flat rates are to be determined (TBD) on a case-by-case basis by the North Pole Utility.

(Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 12-04 § 2, 2012)

13.24.120 Account deposits.

A.    Creation of Water and Sewer Utility Accounts. New utility customers shall be charged a deposit as according to NPMC 13.12.100, Customer accounting and payment.

B.    Application of Deposit to Final Utility Charges.

1.    A utility account holder’s utility deposit shall be applied to their final utility bill. Should there be an outstanding balance in the deposit after payment of the final utility bill, the balance shall be returned to the former account holder.

2.    The utility shall make a good faith effort to return the balance of a former utility account holder’s outstanding utility deposit; however, any utility deposits returned or not claimed after a period of three months shall be transferred to sewer or water miscellaneous utility revenue account as appropriate. (Ord. 18-30 § 2, 2018; Ord. 16-16 § 2, 2016; Ord. 15-05 § 2, 2015)

13.24.130 Round-up utility rate.

Repealed by Ord. 18-30. (Ord. 16-16 § 2, 2016; Ord. 15-05 § 2, 2015)