Northside Hospital Cherokee asks Canton for $143,894 sewer credit; council to consider Oct. 16

City utilities staff presented an informational item Oct. 2 describing a request from Northside Hospital Cherokee for a sewer-only credit totaling $143,893.99, covering the 12-month period August 2024 through August 2025. Staff said action will be requested Oct. 16; council asked questions and received clarification on the requested credit and proposed safeguards.

Mr. Ingram, utilities staff, said the hospital campus is served by a 6‑inch master meter and averages about 2.1 million gallons per month. The hospital’s cooling tower is separately metered (3‑inch meter) and consumes about 1.2 million gallons per month that do not enter the sewer. Historically, the hospital provided reads for the cooling tower meter and the city deducted that volume from sewer billing. A meter malfunction in August 2022 interrupted that reporting; the hospital installed a new ultrasonic meter but did not resume providing reads until an energy audit prompted the request for credit.

Staff said city policy allows back credits for up to one year; given the amount and the potential accounting implications, utilities staff are bringing the request to council for consideration. If council approves, staff said the $143,893.99 would be applied as a statement credit rather than an immediate refund. Mr. Ingram said the hospital’s monthly bill is roughly $70,000, so the credit would be worked down over subsequent billing cycles.

Utilities staff told council they will require a written agreement with the hospital if a credit is approved. The agreement would confirm the cooling tower meter is hospital property, would require an AMI‑readable register so the city can remotely verify cooling-tower consumption, and would clarify liability if a meter malfunctions in the future. Staff said they will present the proposed agreement and a recommendation for council action on Oct. 16.