A. For the purpose of this section, an account receivable debt is defined as any monies owed to the City pursuant to the Phoenix City Code or pursuant to common or statutory law other than taxes or fees imposed pursuant to Chapter 6, 7, 10, 13 or 14 or any debt which results from an action commenced in City Court.

B. The Finance Director, or the Finance Director’s designee, is authorized, under the limitations imposed hereunder, and upon a determination that the costs of collection for any account receivable debt owed to the City imposed under the Phoenix City Code would be disproportionately large compared to the reasonable likelihood of collection of such monies, to enter into an agreement with any person or entity responsible in whole or in part for the payment of any such debt whereby:

C. 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.

D. Upon referral of an account receivable to the Treasury Division of the Finance Department for collection, the Finance Director, or the Finance Director’s designee, shall have authority to enter into an agreement pursuant to Section 2-25(C) and may act pursuant to the foregoing where the debt amount is less than $25,000.00 exclusive of interest or late fees and with the approval of the City Manager, or the City Manager’s designee, where the debt amount is more than $25,000.00 but less than $50,000.00 exclusive of interest or late fees. Any such action shall be memorialized in documentation reflecting the agreement, which documentation shall be entered in City records.

E. In no event shall the total amount involved in any release of 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 late fees unless an agreement for a larger amount is approved by formal action of the Council.

F. 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 debt or any portion thereof 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.

G. No agreement, release, dismissal, or abatement shall be construed as an admission that any such account receivable 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.

H. A person who fails to pay any delinquent accounts receivable debt, fees, penalties and interest is liable for all costs and expenses incurred by the City to collect the delinquent debt, fees, penalties and interest. The City may collect these expenses and costs at the time of collecting the delinquent debt, fees, penalties and interest.

I. In addition to collection of costs and expenses as provided in subsection H of this section, documentation and lien processing fees are established for all other liens under the Phoenix City Code except for liens pursuant to Chapters 13 and 14. Such fees are limited to:

J. For purposes of this section, expenses include contingent fees paid by the City pursuant to a contingent fee contract entered into in order to collect delinquent debt, fees, penalties and interest.

K. Subsections H, I and J of this section shall not apply to a person who fails to pay any delinquent accounts receivable debt, fees, penalties and interest for emergency transportation services.

L. 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.

M. The City must wait the ten-day grace period provided for in subsection L 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)