(A) Legislative intent. By Act 1 of 1996, the General Assembly amended the Municipal Claim and Tax Lien Law Act of May 16, 1923, P.L. 207, No. 153, being 53 P.S. §§ 7106 et seq., as amended, to specifically authorize inclusion of interest, penalty, charges, expenses and fees, including attorney fees incurred in the collection of delinquent accounts as part of a municipal lien. Act 1 requires that municipal entities adopt a schedule of expenses, costs, attorney fees and interest. Act 1 further requires that, prior to imposing attorney fees, the municipality must notify the owner of the property with the delinquent account by certified mail of the municipality’s intent to recover these fees and the manner by which assessment of the fees may be avoided by payment of the delinquent account. It is the intention of the township in enacting this section to comply with the requirements of Act 1 of 1996.
(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BOARD. The governing body of the township.
DELINQUENT ACCOUNT. Any sums due and owing to the township which have not been paid within the time required by the township’s ordinances, rules, regulations or policies including, but not limited to, charges for sewer service, water service, tap fees, taxes, removal of nuisances or any other charge which may lawfully be imposed by the township and for which a municipal claim may be filed.
HOURLY RATE. The hourly fee charged by the Township Solicitor to the township consistent with the ordinary and customary charges by the Township Solicitor for similar services in the community, but in no event shall the hourly rate exceed the rate charged by the Township Solicitor to the township when fees are not reimbursed by or otherwise imposed upon delinquent customers of the township.
TOWNSHIP. The Township of Conemaugh.
TOWNSHIP SOLICITOR. The person or law firm appointed by the Township Supervisors to serve as legal counsel to the township.
(C) Imposition of attorney fees for collection of delinquent accounts. The township specifically authorizes the recovery of attorney fees incurred by the township in the collection of delinquent accounts from the person or persons who are responsible for the payment of such delinquent accounts. The township authorizes the Township Secretary or the Assistant Secretary to take all actions required by applicable law to enable the township to recover attorney fees incurred from the persons responsible for this cost and to include such attorney fees in municipal claims. This authorization includes, but is not limited to, sending notification to such persons of the intention of the township to impose attorney fees incurred in collection efforts upon such persons.
(D) Schedule of attorney fees for services related to collection of delinquent accounts. The township shall impose attorney fees upon persons who have delinquent accounts in accordance with the following schedule of the minimum time required by the Township Solicitor for the listed service times the hourly rate of the Township Solicitor in effect at the time the Township Solicitor performed the service on behalf of the township:
Service | Time (tenth of minimum hours) |
Service | Time (tenth of minimum hours) |
File municipal lien | 0.2 |
Forward copy of municipal lien to township | 0.2 |
Obtain and review deed of property | 0.2 |
Prepare and file satisfaction of municipal lien | 0.2 |
Prepare certification of amount owing, to township and transmit certification to township | 0.3 |
Prepare civil action complaint before district justice for collection of amount | 0.7 |
Prepare collection warning letter, including review of township information | 0.4 |
Prepare for and attend hearing before district justice concerning civil action to collect delinquent account | 2.5 |
Prepare municipal lien | 0.5 |
(E) Recovery of additional attorney fees in specific circumstances. The services and minimum times expended by the Township Solicitor for the services set forth in division (D) above are based upon the experience of the Township Solicitor and upon standard collection practices. Should the person or persons responsible for payment of a delinquent account take action which will require the Township Solicitor to perform additional or more time consuming services than contemplated by division (D) above (i.e., such as scire facais proceedings or inquiries from the delinquent or their agents), it is the intention of the township to recover all of its attorney fees so incurred. A charge is hereby assessed in the amount of actual attorney fees incurred. Such actions include, but are not limited to, filing of counterclaims, challenging the legal power of the township to impose and collect the fee, rate, charge or other cost or similar actions.
(F) Recovery of costs. Filing fees, postage charges and other direct expenditures incurred in the collection of delinquent accounts shall be chargeable to the account.
(G) Interest on filed liens. Liens filed with the Court of Common Pleas shall bear interest at a rate of 10% per annum, from the date of filing (53 P.S. § 7143).
(H) Applicability. The provisions of this section shall apply to all collection efforts and liens filed following adoption of this section. The provisions shall apply to all previously filed liens which have not been fully settled or discharged within 90 days of the adoption of this section.
(Ord. 668, passed 12-17-2008) Penalty, see § 34.999