Township of Lower Macungie, PA C Procedures and Fee Schedules for Third Party Collection of Delinquent Accounts . [1]

[1] Editor's Note: The prefatory material to Ord. 2012-02, 4/19/2012, provides, in pertinent part:

"WHEREAS, Lower Macungie Township (the 'Township') is a First Class Township operating under the Pennsylvania First Class Township Code, 53 P.S. § 55101 et seq.; and

"WHEREAS, the Township imposes certain taxes, sewer rentals and tapping fees, solid waste collection fees, as well as other lawful assessments on Township residents and properties; and

"WHEREAS, the Township has certain delinquent accounts (the 'Accounts') associated with sewer rentals and solid waste collection fees and desires to collect said Accounts; and

"WHEREAS, the Township has engaged a third party collection agency (the 'Agency') for the purpose of efficiently collecting the Accounts; and

"WHEREAS, the Municipal Claims and Tax Lien Act (the 'Act'), 53 P.S. § 7101 et seq., authorizes the addition of 'charges, expenses and fees incurred in the collection of any delinquent account' to the total amount payable with respect to unpaid sewer rentals and charges; and

"WHEREAS, the Township desires to establish an orderly and consistent procedure for the collection of taxes, fees and other municipal claims owed to it by the residents and/or property owners of the Township."

§ 1-421 Township Account Collection Procedure and Fees.

[Ord. 2012-02, 4/19/2012]

1. The Township shall engage the Agency for the purpose of collecting delinquent Accounts.

2. The engagement of the Agency shall be confirmed by a written agreement and the agreement shall be approved by the Township Solicitor and by a resolution of the Township Board of Commissioners.

3. If sewer rentals and charges are not paid in full within 60 calendar days after the same become due and payable, said Account, in addition to incurring the late charges and interest set forth in § 18-1110, Subsection 4, of the Code of Ordinances of the Township, shall be deemed "delinquent."

4. Schedule of Fees. The Township approves and adopts the following schedule of agency fees for services in connection with the collection of accounts, which is hereby determined to be fair and reasonable compensation for the services of such Agency:

A. The Township fee schedule was established by Res. 2011-30. Fees shall be assessed and posted in accordance with the schedule as set forth therein.[1]

[1] Editor's Note: The current Township fee schedule is on file in the Township offices.

B. The amount of fees determined as set forth above shall be added to the Township's claim in each account.

C. The schedule of fees may be modified from time to time by resolution of the Board of Commissioners.

5. Collection Procedures. The following collection procedures are hereby established to be the policy of the Township:

A. Accounts may be assigned by the Township Manager or his designee to agency on the 61st day of the delinquency.

B. Between the 61st and 100th day of delinquency, the agency shall make reasonable efforts at collecting the account, including:

(1) Contacting the delinquent account holder by telephone.

(2) Contacting the delinquent account holder by mail.

(3) Using the water turnoff procedures as established by Ord. 2011-08 [§ 18-1111].

C. The agency shall accept offers by Account holders to establish payment plans to satisfy outstanding balances if the outstanding balance exceeds $300; however, if the nature of the delinquent account involves a municipal "claim" as defined by the Act, no payment plan shall exceed six months from the date that the service giving rise to the claim occurred as the Act imposes a six-month statute of limitations on municipal "claims." In the event that there is a question as to whether the account is subject to this six-month statute of limitations, the agency shall consult with the Township Solicitor to insure that the statute of limitations does not expire.

D. At the discretion of the Township, the Agency may be authorized to file any or all liens that may be required.

E. Any agency fees assessed in accordance with the foregoing fee schedule shall be forwarded to the Agency in accordance with the term of the Township's written agreement with the Agency.

F. All collection procedures shall be reviewed and approved by the Township Solicitor prior to implementation.

6. The Township Secretary shall immediately notify the Agency upon receipt of all: (A) petitions or "proof of claims" for bankruptcy that concern a delinquent account; and (B) notices of Sheriff sale, judicial sale, or tax sale that concern a delinquent account.