Chapter 3.34
COLLECTION COSTS RECOVERABLE
Sections:
3.34.010 Collection authorized—Costs.
3.34.020 Reasonable collection costs.
3.34.030 Requirement for debt assignment.
3.34.010 Collection authorized—Costs.
The finance director, or his or her designee, is hereby authorized to assign debts owed to the city to a collection agency for the collection thereof. In all instances where a debt is so assigned, all reasonable costs involved in the collection of the debt through use of the collection agency are costs that shall be added to and included in the debt to be paid by the debtor. As used in this chapter, debts owed to the city include, but are not limited to, the following: past due utility charges, fines, assessments, taxes, permit and license fees and charges, miscellaneous billings, penalties, interest, and any other charge or account receivable of whatsoever nature legally imposed by or owing to the city. (Ord. 3965 § 2, 2021)
3.34.020 Reasonable collection costs.
The amount to be paid for collection services shall be reasonable as determined by the city pursuant to the agreement of the city and its collection agency or agencies; provided, however, that a contingent fee of up to fifty percent of the first one hundred thousand dollars of the unpaid debt per account and up to thirty-five percent of the unpaid debt over one hundred thousand dollars is reasonable, and a minimum fee of the full amount of the debt up to one hundred dollars per account is reasonable. (Ord. 3965 § 2, 2021)
3.34.030 Requirement for debt assignment.
No debt may be assigned to a collection agency unless: (A) there has been an attempt to advise the debtor: (1) of the existence of the debt, and (2) that the debt may be assigned to a collection agency for collection if the debt is not paid; and (B) at least thirty days have elapsed from the time notice was attempted. (Ord. 3965 § 2, 2021)
3.34.040 Uncollectible debts.
A. The finance director, or his or her designee, shall have the authority to write off debts that are over two years old in an amount not to exceed one thousand dollars per account. This write-off option shall be utilized only after it has been determined by the finance director that there is no cost-effective means of collecting the account and a collection agency has been unsuccessful in collecting the debt.
B. Receivable write-offs that exceed one thousand dollars must be authorized by council resolution. (Ord. 3965 § 2, 2021)