Citizens Against Unfair Treatment v. Scott Township

616 A.2d 756, 151 Pa. Commw. 235, 1992 Pa. Commw. LEXIS 651
CourtCommonwealth Court of Pennsylvania
DecidedOctober 22, 1992
DocketNo. 2436 C.D. 1991
StatusPublished
Cited by3 cases

This text of 616 A.2d 756 (Citizens Against Unfair Treatment v. Scott Township) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens Against Unfair Treatment v. Scott Township, 616 A.2d 756, 151 Pa. Commw. 235, 1992 Pa. Commw. LEXIS 651 (Pa. Ct. App. 1992).

Opinion

PALLADINO, Judge.

Appellants, Citizens Against Unfair Treatment (Citizens), an unincorporated association consisting of owners of improved residential property located within the Skyview Acres subdivision of Scott Township, appeal the order of the Court of Common Pleas of Columbia County (trial court) which granted summary judgment in favor of Appellee, Scott Township Authority (Authority). We affirm.

Citizens filed an Action for Declaratory Judgment seeking a declaration that as homeowners of the Skyview Acres subdivision they are exempt from various sewage system connection charges imposed by the Authority. In Count I of the complaint, Citizens assert that they have been released from payment of the charges, while in Count II of the complaint, Citizens assert that the charges are unreasonable as applied to them.

The facts alleged in the complaint are as follows: On April 14, 1977 an agreement was executed by the developers of Skyview Acres, Delmar R. Zeisloft and James D. Zeisloft, t/a Zeisloft Construction Company (Developer), and the Authority, (Agreement), subsequently recorded, which contained a [237]*237provision that at no cost or expense to the Authority, Developers would construct a sewage collection facility to service the development. The system was designed in accordance with plans and specifications approved by the Authority, and after completion and final inspection, Developer dedicated to the Authority all of its rights, title and interest in and to all such facilities.

By letter dated August 1, 1980, Developer requested the Authority to exempt property owners of Skyview Acres from any charges when hooking onto the Scott Township sewer system if and when the township were to construct such a system. In response, the Authority forwarded a letter dated November 10, 1980, indicating that the property known as Skyview Acres would be exempt from any front foot assessment and any newly established tapping fee.

On June 18, 1990, Scott Township enacted a number of ordinances to set up a township-wide sewage collection system. All owners of improved property located within the township were thereafter required to connect with and use the sewer system.

Also on June 18, 1990, pursuant to the request and consent of the Township, the Authority enacted resolutions imposing charges designed to finance the new sewage system. These charges were payable by the owners of such improved property. One such charge, labelled a connection charge, was determined by multiplying the applicable charge (based on the date of payment) times the number of “Equivalent Dwelling Units.” Thus, the connection charge was based in part on sewage capacity and was payable only upon connection to the system. Another charge, labelled a tapping fee, was a flat rate fee of $500.00 (based upon time of payment), also payable upon connection to the sewage system.

In December of 1990, the Pennsylvania Legislature amended section 4(t) of the Municipality Authorities Act of 1945 (Act), Act of May 2, 1945, P.L. 382, as amended, 53 P.S. § 306B(t). Section 306B(t) of the Act authorizes municipal authorities to impose certain rates and charges to property owners who desire to or are required to connect to an authori[238]*238ty’s sewer or water system. The amendments to subsection (t) became effective on June 17, 1991 and substantially altered the nomenclature required to be used by municipal authorities with regard to charges for connection to a sewage system. Id.

In order to comply with the new requirements of Section 306B(t) of the Act, the Authority passed a resolution on June 10, 1991 which repealed the resolutions of June 18, 1990 and simply reversed the terminology used with regard to the sewage connection fees imposed by those resolutions. Under the June 10, 1991 resolution, the “Tapping Fee” was now based in part upon capacity, and the “Connection Fee” was now a flat rate. Both charges remained payable only upon connection to the township sewage collection system.

In an opinion and order dated October 22, 1991, the trial court granted the Authority’s motion for summary judgment and dismissed Citizens’ complaint. On appeal,1 Citizens present two issues: (1) whether the trial court erred in granting summary judgment in favor of the Authority because genuine issues of material fact exist concerning the correspondence between the Authority and the Developer and its effect on the pre-existing Agreement; and (2) whether the trial court erred in concluding that the $1,000.00 capacity based fee was reasonable as applied to them.

As to the first issue, Citizens argue that the letters exchanged between Developer and the Authority evidence an intent to release them from any charges relating to initial connection to the township-wide sewage collection facilities and act to supersede the original Agreement. In this action the Agreement specifically reserves the Authority’s right to impose tapping fees and/or connection charges upon property owners in the development. Section 16 of the Agreement provides in pertinent part:

Section 16. Tapping fees and Connection Charges

[239]*239SCOTT AUTHORITY reserves the right, pursuant to the Pennsylvania Municipal Authorities Act, to impose tapping fees and/or connection charges upon property owners in the PROJECT or upon DEVELOPER, as the case may be, as part of its financing of the SCOTT SYSTEM. SCOTT AUTHORITY, further, reserves the right, granted in said Municipality Authorities Act, to reimburse DEVELOPER from tapping fees collected for the cost of the PROJECT sewer facilities (but not the CONNECTION lines for which there shall not, in any case, be any reimbursement); provided, however, nothing contained herein shall require or be deemed to require such reimbursement.
(R.R. 49a).

The Developer, in an apparent attempt to modify the Agreement, drafted a letter, mentioned previously, dated August 1, 1980, to the Authority. That letter provides in pertinent part:

The cost of the sewer lines have been prorated into the individual lots when sold, therefore the property owners have paid for their front footage plus a $250.00 hook up fee paid to the township. It was discussed at the beginning of this project in 1971 by our company and Scott Township Supervisors that the property owners would be exempt from any charges when hooking on to [the] Scott Township main sewer system if and when the township constructed such a system, the lot owners would be to [sic] pay for gallonage used only, (emphasis added).
(R.R. 9a).

According to the minutes of the November 6, 1980 Authority Board meeting, the Chairman of the Board, Mr. Louis V. Mingrone, proposed that, in return, a letter be sent to Developer to inform him that Skyview Acres would be exempt from front foot assessment that may be imposed, and that all improved properties be exempt from a tapping fee in that development, as presently designed. That letter, mentioned previously, provides in pertinent part:

In compliance with your request, this letter is being sent to you to reiterate the discussions with the Authority Board [240]*240and Mr. Marcucci at our meeting of November 6, 1980, regarding the proposed Township-wide sewer system.

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Related

Scott Township Sewer & Water Autority v. Tellip
45 Pa. D. & C.5th 197 (Lackawanna County Court of Common Pleas, 2015)
Keenan v. Scott Township Authority
616 A.2d 751 (Commonwealth Court of Pennsylvania, 1992)

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Bluebook (online)
616 A.2d 756, 151 Pa. Commw. 235, 1992 Pa. Commw. LEXIS 651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-against-unfair-treatment-v-scott-township-pacommwct-1992.