Sec. 2-25. Abatement of collection suits and actions; release of liens; determination of uncollectibility; authority of Finance Director and City Manager; recovery of collection costs.
A. The City Manager or the Finance Director, and their designees, are authorized, under the limitations imposed hereunder, and upon a determination that the costs of collection for any delinquent account for fees imposed under Chapter 6, 7, or 10, or taxes imposed under Chapter 13 or 14, would be disproportionately large compared to the reasonable likelihood of collection of such fees or taxes, to enter into an agreement with any person or entity responsible in whole or in part for the payment of any such fee or tax whereby:
1. The City agrees to release, in whole or in part, any or all liens filed in connection with such fee or tax; or
2. The City agrees to dismiss and to refrain from refiling, in whole or in part, any lawsuit seeking judgment for such fee or tax; or
3. The City agrees to abate all collection efforts with respect to such fee or tax, in whole or in part; or
4. Any combination of the foregoing.
B. The consideration to be paid to the City for any such agreement shall be in such sum as the Finance Director, or the Finance Director’s designee, determines to represent the greatest amount which the City would be able to achieve as the result of its collection efforts.
C. The Finance Director, or the Finance Director’s designee, shall have authority to act pursuant to the foregoing where the fee or tax, exclusive of interest or penalties, is less than $25,000.00 and, with the approval of the City Manager, or the City Manager’s designee, where the fee or tax amount is $25,000.00 or more, but less than $50,000.00 exclusive of interest or penalties. Any such action shall be memorialized in documentation reflecting the agreement, which documentation shall be entered in City records.
D. In no event shall the total amount subject to any release of a lien, settlement of suit or abatement of collection for any single person or entity entering into such an agreement with the City exceed the sum of $50,000.00 exclusive of interest or penalties unless an agreement for a larger amount is approved by formal action of the Council.
E. The benefit of any such agreement shall inure only to the specific party or parties executing it; and no such agreement, dismissal, release, or abatement shall operate or be construed to operate to release, abate, or diminish such liability as may exist for the payment of any fee, tax, interest, or penalty amount or any portion thereof due to the City by any other person or entity not executing such agreement, regardless of any legal relationship between the party or entity executing the agreement and any other person or entity.
F. No agreement, release, dismissal, or abatement shall be construed as an admission that any such fee, tax, interest or penalty amount or any portion thereof was not lawfully due and owing to the City, and the obligation for such amount may be carried as a separate nonrevenue item in the books and records of the City.
G. A person who fails to pay any delinquent account for fees, penalties and interest imposed under Chapter 6, 7, or 10 is liable for all costs and expenses incurred by the City to collect the delinquent fees, penalties and interest. The City may collect these expenses and costs at the time of collecting the delinquent fees, penalties and interest.
H. A person who fails to pay any delinquent account for taxes, fees, penalties and interest imposed under Chapters 6, 13 and 14 is liable for all costs and expenses incurred by the City to collect the delinquent taxes, fees, penalties and interest. The City may collect these expenses and costs at the time of collecting the delinquent taxes, fees, penalties and interest.
I. In addition to collection of costs and expenses as provided in subsections G and H of this section, documentation and lien processing fees are established for liens under Chapters 13 and 14. Such fees are limited to:
|
Account |
Fee |
|---|---|
|
Less than $10,000.00 |
$78.00 |
|
$10,000.00 or more |
$302.00 |
J. For purposes of subsections G and H of this section, expenses include contingent fees paid by the City pursuant to a contingent fee contract entered into in order to collect delinquent taxes, fees, penalties and interest.
K. Before the City Manager or Finance Director sends any account receivable debt to any collection agency or law firm that the City has contracted with for collection purposes, the City must provide written notification to the debtor that the debtor must contact the City within ten days from the date of the letter to avoid being liable for the additional costs charged by the collection agency or law firm.
L. The City must wait the ten-day grace period provided for in subsection K of this section prior to sending any matters to any collection agency or law firm that the City has contracted with for collection purposes. (Ord. No. G-5444, § 2, 2009; Ord. No. G-6041, 2015)