ASHLAND - The Ashland Area Municipal Authority (AAMA) approved delinquent account policy and collection procedures at Monday's meeting.
The resolution was adopted unanimously and updates and memorializes certain aspects of AAMA's policies regarding the collection of delinquent payments by the Borough of Ashland, which manages the water treatment plant and distribution system, including billing, through a management agreement with the authority.
"As had been discussed with the borough, we want to establish a delinquent account policy consistent with ourselves and the borough, so I've prepared a policy," said authority solicitor S. John Price.
In preparing the policy, Price met with borough solicitor James Diehl, borough manager Thomas Joyce and some members of council to discuss the matter.
"I prepared the policy for our resolution and then presumably it will also be adopted by the borough," said Price.
The policy sets the guidelines for a delinquent customer who wants to pay the outstanding balance on the account over a period of time and stay current with future bills. Periodic payments on delinquent amounts will be accept, subject to the following conditions:
1. The total delinquency shall be satisfied within a period of 10 months from the date of the initial payment.
2. Periodic payments shall be made at monthly intervals on the same date each month.
3. Periodic payments shall be $125 or 10 percent of the total amount due and owing, whichever is greater.
4. In order to be provided with water service, and in addition to the periodic payments, current bills from the date of the initial periodic payment forward shall be totally paid in full prior to any such bills due date.
5. As of the date of the first payment, there shall be a moratorium with respect to additional interest and late fees. Such moratorium shall cease if any of the provisions hereof are violated by any customer. If service has been terminated, the authority shall restore such service at the time of the initial payment. Any reconnection or restoration fees shall be added to the amount due, Service shall continue so long as the customer continues to comply with the terms of this policy.
The policy also includes the granting of waivers to delinquent customers who apply in writing to the authority board asking to make payments in lesser amounts if there is a showing of economic or medical hardship.
With the acceptance of the resolution, the authority also accepts a borough ordinance that authorizes the imposition of attorney's fees in connection with municipal claims, taxes and user fees. The legal fees per action (filing liens, attending hearings, etc.) in connection with pursuing delinquent accounts are specifically listed in the ordinance and will be added to the delinquent customer's account.