Hamilton Twp. v. Hensco, Ltd.

CourtCommonwealth Court of Pennsylvania
DecidedAugust 5, 2014
Docket1575 and 1576 C.D. 2013
StatusUnpublished

This text of Hamilton Twp. v. Hensco, Ltd. (Hamilton Twp. v. Hensco, Ltd.) 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
Hamilton Twp. v. Hensco, Ltd., (Pa. Ct. App. 2014).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Hamilton Township, : Appellant : : No. 1575 C.D. 2013 v. : No. 1576 C.D. 2013 : Hensco, Ltd. : Argued: June 16, 2014

BEFORE: HONORABLE BERNARD L. McGINLEY, Judge HONORABLE RENÉE COHN JUBELIRER, Judge HONORABLE PATRICIA A. McCULLOUGH, Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE McCULLOUGH FILED: August 5, 2014

Hamilton Township (Township) appeals from the August 8, 2013 order of the Court of Common Pleas of Adams County (trial court), dismissing the Township’s municipal lien under the Municipal Claim and Tax Lien Act1 (the MCTLA) against property owned by Hensco, Ltd. (Hensco) for expenses and fees that the Township charged Hensco to tap into its sewer line.2 We affirm. The facts and procedural history of this case, taken from the uncontested facts in the pleadings, (Trial court op. at 1 n.1), may be summarized as follows.

1 Act of May 16, 1923, P.L. 207, as amended, 53 P.S. §§7101-7505.

2 Because the common pleas court assigned two docket numbers to this matter, the Township filed two separate notices of appeal from the trial court’s August 8, 2013 order, which we consolidated by order dated November 8, 2013. Hensco owns property located at 6110 York Road, in the Township, Adams County (Property). Although the Property and other nearby properties were located within the Township’s borders, the Township did not have sewer service in the area. On November 20, 1984, the Township entered into an agreement (1984 Agreement) with Oxford Township, wherein Oxford Township was designated as the Township’s “agent” and assumed the obligation to collect and transport the Property’s sewage. Thereafter, Hensco connected to the Oxford Township sewer line and paid Oxford Township approximately $40,000.00 to cover the applicable tapping fees. Hensco continued to use the Oxford township sewer line and paid monthly usage fees. (Trial court op. at 1-2, 9.) In 2000, the Township instituted plans to construct a sewer system that would encompass the area where the Property was located. On December 4, 2001, the Township and Oxford Township entered into an agreement (2001 Agreement) that essentially terminated the 1984 Agreement and required the Property to disconnect from the Oxford Township sewer line. On January 7, 2002, the Township passed an ordinance (2002 Ordinance) requiring the Property and others similarly situated to connect to the Township’s sewer line. Upon receiving notice from the Township, Hensco connected to the Township’s sewer line after having been connected to the Oxford Township sewer line for nearly 18 years and paying a $40,000.00 tapping fee. The Township then invoiced Hensco for tapping fees into the Township’s line in the amount of $56,000.00 for 33 Equivalent Dwelling Units (EDUs) at $1,700.00 per EDU.3 (Id. at 3-4, 9.)

3 “An EDU represents the flow of wastewater converging into the sewer system. For example, if the Township uses 200 gallons per day as the equivalent of one EDU and a proposed McDonald’s would generate 600 gallons of wastewater per day, the McDonald’s would contribute (Footnote continued on next page…)

2 On December 4, 2003, the Township filed a municipal lien in the amount of $56,128.00 against the Property for unpaid tapping fees and costs. On December 31, 2010, the Township filed a praecipe to issue a writ of scire facias, indicating that the lien has not been paid and notifying Hensco to file an affidavit of defense.4 On January 28, 2011, Hensco filed an affidavit of defense, asserting that the 2002 Ordinance authorizing the tapping fees was improperly adopted and/or procedurally defective because the cost figures used to calculate the tapping fees were not available for public inspection prior to the passage of the 2002 Ordinance. Hensco further argued that the Township lacked the legal authority to charge it tapping fees because Hensco was an “existing customer” under section 502(a) of the Second Class Township Code (Code),5 53 P.S. §67502(a), and former section 4(B)(t)(E)(II) of the Municipality Authorities Act of 1945 (Authorities Act).6 (Trial court op. at 5.)

(continued…)

three EDUs of flow into the sewer system.” Chateau Woods, Inc. v. Lower Paxton Township, 772 A.2d 122, 123 n.2 (Pa. Cmwlth. 2001). 4 “A scire facias proceeding is an action in rem. The issuance of a writ of scire facias is an original process and serves the dual purposes of a writ of summons and a complaint. The purpose of a scire facias proceeding is to warn the owner of the existence of a claim so that the owner may make any defenses known and show why the property should not be under judicial subjection of a municipal lien. The property owner or any person allowed to intervene in the scire facias proceeding may file an affidavit of defense to the municipal claim.” N. Coventry Township v. Tripodi, 64 A.3d 1128, 1133 (Pa. Cmwlth. 2013) (citations omitted).

5 Act of May 1, 1933, P.L. 103, added by the Act of November 9, 1995, P.L. 350, as amended, 53 P.S. §§65101-68701.

6 Formerly, Act of May 2, 1945, P.L. 382, as amended, 53 P.S. §306(4)(B)(t)(E)(II). In 2011, the Authorities Act was repealed by the Act of June 19, 2011, P.L. 287; see now 53 Pa.C.S. §§5601-5623. The parties do not dispute that former section 4(B)(t)(E)(II) of the Authorities Act applies here. (Footnote continued on next page…)

3 By order dated August 8, 2013, the trial court dismissed the Township’s municipal lien. In its opinion, the trial court noted that the dispute involved an interpretation of section 502(a) of the Code and former section 4(B)(t)(E)(II) of the Authorities Act. In pertinent part, section 502(a) of the Code permits a second class township like the Township here to adopt an ordinance requiring property owners to connect with and use a sanitary sewer system; section 502(a) of the Code also allows a township to collect “a tapping fee and other similar fees, as enumerated and defined by clause (t) of subsection B of section 4 of the [Authorities Act].” 53 P.S. §67502(a).7 Pursuant to former section 4(B)(t)(E)(II) of the Authorities Act:

7 In its entirety, section 502(a) of the Code states:

Sanitary sewer connections

(a) The board of supervisors may by ordinance require adjoining and adjacent property owners to connect with and use the sanitary sewer system, whether constructed by the township or a municipality authority or a joint sanitary sewer board. In the case of a sanitary sewer system constructed by the township pursuant to either section 2501 or 2516, the board of supervisors may impose and charge to property owners who desire to or are required to connect to the township's sewer system a connection fee, a customer facilities fee, a tapping fee and other similar fees, as enumerated and defined by clause (t) of subsection B of section 4 of the act of May 2, 1945 (P.L. 382, No. 164), known as the "Municipality Authorities Act of 1945," as a condition of connection to a township-owned sewer collection, treatment or disposal facility. If any owner of property adjoining or adjacent to or whose principal building is within one hundred and fifty feet from the sanitary sewer fails to connect with and use the sanitary sewer for a period of sixty days after notice to do so has been served by the board of supervisors, either by personal service or by registered mail, the board of supervisors or their agents may enter the property and construct the connection. The board of supervisors shall (Footnote continued on next page…)

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Hamilton Twp. v. Hensco, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-twp-v-hensco-ltd-pacommwct-2014.