[Ord. 2043, 8/13/2007]
1.
To be fair to all property owners in this Borough, it is necessary
for this Borough to recover promptly the amount of delinquent unpaid
municipal claims and, if necessary, by legal proceeding.
2.
The Municipal Claims and Tax Liens Act, 53 P.S. § 7101
et seq. (the "Act"), authorizes the adding of additional attorneys'
fees, charges, expenses, commissions and fees to the total payable
with respect to unpaid municipal claims, but only if the Borough has
approved by ordinance a schedule of such fees.
3.
The Borough has determined that it is in the best interest of all
property owners and other residents to have vigorous enforcement of
all delinquent and other unpaid charges, utilizing the procedures
set forth in the Act, except in the case of serious hardship, which
the Borough will address on a case-by-case basis pursuant to uniform
policies.
4.
In addition to the collection of attorneys' fees for water, sewer and trash, which already are in effect, the Borough wishes to impose costs of collection on property owners for municipal claims as part of its Clean and Lien Program, as well as for all municipal claims for violations of Chapter 10, Health and Safety.
5.
The Borough has reviewed the subject of penalties, interest, and
attorneys' fees for collection matters and has determined that the
fees set forth in the schedule hereby adopted are reasonable in amount
for the services herein described.
[Ord. 2043, 8/13/2007]
The following rates and fees shall apply to the collection of municipal claims for snow removal, abandoned motor vehicles, accumulation of trash and refuse, removal of grass and weeds, and all health and safety violations that are set forth in § 215, Penalties and Violations, of Part 2B, Office of Code Enforcement, of Chapter 1, Administration and Government, and Chapter 9, Health and Safety, all of which are part of the Code of Ordinances of the Borough of Pottstown, as amended:
A.
Administrative Charge. Any administrative fee and all costs incurred
in mailing a notice of delinquency, not to exceed $50, shall be added
to the unpaid claim.
B.
Interest. Interest will be assessed upon all delinquent municipal
claims at a rate of 10% per annum and added to the unpaid claim.
C.
Assessment of Legal Fees,.
(1)
The Borough hereby approves the following fee schedule to compensate
its attorneys for the collection of unpaid claims, which fees shall
be added to the unpaid claim.
|
Legal Services
|
Fee For Services
| |
|---|---|---|
|
Initial review and sending first demand letter
|
$160
| |
|
File lien and mail second demand letter
|
$175
| |
|
Prepare writ of scire facias
|
$175
| |
|
Obtain reissued writ
|
$30
| |
|
Prepare and mail letter under Pa.R.C.P. § 237.1
|
$30
| |
|
Prepare motion for alternate service
|
$175
| |
|
Prepare default judgment
|
$175
| |
|
Prepare writ of execution
|
$800
| |
|
Attendance at sale; review schedule of distribution and resolve
distribution issues
|
$400
| |
|
Continue Sheriff's sale
|
$50
| |
|
Petition to assess damages
|
$50
| |
|
Petition for free and clear sale
|
$400
| |
|
Prepare bankruptcy proof of claim
|
$100
| |
|
Handling fee for returned check
|
$30
| |
|
Handling fee to issue refund check
|
$20
| |
|
Bookkeeping fee for payment plan of more than 3 payments
|
$50
| |
|
Services not covered above
|
At an hourly rate between $60 and $225 per hour
|
(2)
The amount of fees determined as set forth above are fair and
reasonable for the services to be provided and shall be added to the
Borough's claim in each account.
(3)
There shall be added to the above amounts the reasonable out-of-pocket
charges, costs, expenses, commissions and fees, such as but not limited
to postage, title searches, Prothonotary fees and Sheriff fees.
(4)
The amount of charges, expenses, commissions and fees determined
as set forth above shall be added to the Borough's claim in each account.
[Ord. 2043, 8/13/2007]
1.
The following collection procedures are hereby established in accordance
with the Act:
A.
At least 30 days prior to assessing or imposing attorneys' fees in
connection with the collection of an account, the Borough or its designee
shall mail or cause to be mailed, by certified mail, return receipt
requested, a notice of such intention to the property owner or other
entity liable for the account (the "property owner").
B.
If the certified mail notice is undelivered, then, at least 10 days
prior to the assessing or imposing of such attorneys' fees, the Borough
or its designee shall mail or cause to be mailed, by first class mail,
a second notice to the property owner.
C.
All notices required by this Part shall be mailed to the property
owner's last known post office address as recorded in the records
or other information of the Borough or such other address as it may
be able to obtain from the County Office of Assessment and Revision
of Taxes.
D.
Each notice as described above shall include the following:
(1)
The type of fee or other charge, the date it became due and
the amount owed, including penalty and interest.
(2)
A statement of the Borough's intent to impose or assess attorneys'
fees within 30 days after the mailing of the first notice or within
10 days after the mailing of the second notice.
(3)
The manner in which the assessment or imposition of attorneys'
fees may be avoided by payment of the account.
(4)
The place of payment for accounts and the name and telephone
number of the Borough representative designated as responsible for
collection matters.
2.
Related Action. The proper officials of the Borough are hereby authorized
and empowered to take such additional action as they may deem necessary
or appropriate to implement this Part.
In addition to the authorization for the collection of taxes
and institution of tax sales authorized by the Real Estate Tax Sales
Law ("RETSL"), 72 P.S. § 5860.201 et seq., for calendar
year 2013, the Montgomery County Tax Claim Bureau is appointed as
alternative collector and is authorized and directed to file liens
for existing real estate taxes with the Prothonotary of Montgomery
County in accordance with the provisions of the Municipal Claims and
Tax Liens Act, 53 P.S. § 7101 et seq.
In accordance with the MCTLA and RETSL, interest shall be charged
on taxes so returned from and after but not before the first day of
the month following the return. Interest shall be charged at the rate
of 9% per annum.
Pursuant to Section 7106 of the MCTLA, it is hereby established
that the reasonable charges, expenses and fees incurred in the collection
of any delinquent account under the MCTLA are hereby fixed at 5% of
the total amount of the delinquent taxes (including interest and penalties),
and that additional reasonable attorneys' fees incurred in the collection
of any delinquent taxes shall be fixed at 1% of the total amount of
the delinquent taxes (including interest and penalties), and that
said charges for attorneys' fees and for all charges, expenses and
fees set forth herein shall be paid to the County of Montgomery, through
the Montgomery County Tax Claim Bureau, in lieu of payment of commission
pursuant to Section 207 of RETSL.
The officials of the Borough of Pottstown are hereby authorized
and empowered to take such additional action as they may deem necessary
or appropriate to implement this subpart, with the understanding that
this subpart shall not apply to any accounts presently undergoing
collection activities with the Borough's existing delinquent real
estate collector, Portnoff Law Associates.
The adoption and implementation of this subpart is at the request
of Montgomery County, through the Montgomery County Tax Claim Bureau,
which has and shall agree to indemnify and hold harmless the Borough
of Pottstown from any and all claims, damages, or causes of action
as a result of actions brought by any third parties challenging the
validity of this subpart or any processes set forth in this subpart
for the collection of delinquent real estate taxes.
