§ 147-6. Servicing charges, expenses and fees approved.

A. 

Pursuant to §§ 1, 2 and 3 of the Act of May 16, 1923, as amended, 53 P.S. §§ 7101, 7103 and 7106, and specifically in the schedule found in accordance with Act 83 of 2004, the municipality does hereby authorize the recovery of charges, expenses and fees set forth in Subsection D below that are incurred by the municipality or charged to the municipality by collectors retained by the municipality in connection with efforts to collect delinquent claims as a result of any persons' failure to promptly pay delinquent claims.

B. 

The following schedule of charges, expenses and fees (hereinafter referred to as "servicing expenses," "out-of-pocket expenses," and "postage expenses") is hereby approved and adopted by the municipality pursuant to Act 83 of 2004 which amends §§ 1, 2, and 3 of the Act of May 16, 1923, as amended, 53 P.S. §§ 7101, 7103 and 7106, which amounts are the direct result of each person's or property's failure to pay delinquent claims promptly. The servicing expenses, out-of-pocket expenses and postage expenses established, assessed, and collected hereunder shall be in addition to the record costs, § 147-3 expenses and § 147-4 attorney fees associated with legal proceedings initiated by or on behalf of the municipality to collect its delinquent claims.

C. 

Servicing of a delinquent claim or delinquent claims may result in voluntary payment without the initiation of enforcement proceedings. It is the intent of this § 147-6 to pass the cost of servicing on to the delinquent person or property as part of each delinquent claim. The recovery of servicing expenses, out-of-pocket expenses and postage expenses established herein shall not be contingent upon the initiation of enforcement proceedings. However, such servicing expenses, out-of-pocket expenses and postage expenses are due even where enforcement proceedings are initiated. The purpose of this section is to pass the entire cost and expense associated with delinquent collection on to the delinquent person or property and to make the municipality whole on all delinquent claims collected.

D. 

Schedule. The following schedule of servicing expenses, out-of-pocket expenses and postage expenses shall constitute reasonable and appropriate charges, expenses and fees for each indicated category. The servicing expenses, out-of-pocket expenses and postage expenses shall be added to and become part of the municipality's delinquent claims, together with the face, penalties, interest and costs, if any, and title search expense, attorney fees and out-of-pocket expenses in connection with enforcement proceedings, if any, and shall be payable in full before the discharge or satisfaction of any delinquent claim. The below schedule of servicing expenses, out-of-pocket expenses and postage expenses is separate and distinct from any amounts imposed by the Sheriff, Department of Court Records, Court or any other public office in connection with the collection of the municipality's delinquent claims.

(1) 

Out-of-pocket expenses. The expenses of postage, title searches, investigators, process servers and other necessary expenses incurred in servicing shall constitute reasonable out-of-pocket expenses as part of each delinquent claim recovered.

(2) 

Municipal no lien letter and tax certification. The sum of $25 shall constitute a reasonable servicing expense for the preparation and issuance of each municipal no lien letter relating to the municipality's delinquent municipal claims. The sum of $10 per year certified shall constitute a reasonable servicing expense for the preparation and issuance of each delinquent tax claim certification.

(3) 

Postage expense. Out-of-pocket expenses shall include the actual cost of postage related to the collection of the municipality's delinquent claims.

(4) 

Servicing expense.

(a) 

A servicing expense of 10% of gross collections shall constitute a reasonable servicing expense for all servicing related to the collection of the municipality's delinquent claims. Servicing expenses shall accrue on the first of the month for the entire month, or part thereof. There is no per diem servicing expense. Gross collections for the purpose of calculating servicing expenses shall include the face together with penalty, interest and lien costs, if any, for each delinquent claim collected. Lien costs shall mean charges imposed by the Department of Court Records and/or by the municipality's collector for the filing, satisfaction, revival, amendment and transfer of delinquent claims. Gross collections shall not include any record costs, attorney fees, or out-of-pocket expenses related to the collection of the municipality's delinquent claims.

(b) 

In addition, the following schedule of fees shall constitute a reasonable and appropriate Fee for each indicated service:

[1] 

Assignments: $5 per delinquent claim;

[2] 

Preparing/filing tax liens: $5.50 per item;

[3] 

Satisfactions (for no consideration passing receipts): $10 per delinquent claim;

[4] 

Tax claim revivals (i.e., S&A): $25 per delinquent claim;

[5] 

Act 1/Act 20 compliance: $35 per case;

[6] 

Preparing/filing municipal claims and claim revivals (S&A): $25 per delinquent claim;

[7] 

S&As (tax or municipal) prepared but not filed: $10 per S&A;

[8] 

Municipal claim/short title examination: $40 per delinquent claim;

[9] 

Sheriff sale claim certificates: $60 per case.

(c) 

Liability for payment of charges, expenses and fees, including servicing expenses, out-of-pocket expenses and postage expenses, shall be for those delinquent claims identified in § 147-7 below, regardless of whether the delinquent claims are filed as claims in the Allegheny County Department of Court Records Office.

E. 

The municipality's delinquent collector recovering charges, expenses and fees pursuant to the schedule set forth in § 147-6D, of this article shall be permitted to automatically increase such charges, expenses and fees by 3% on a yearly basis, beginning one year following the date of enactment of this article.