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A. In addition to all other remedies for collecting amounts owed to the city, the city may retain, by written contract, the services of a licensed collection agency to collect public debts owed by any person pursuant to the procedures set forth in this chapter. If the city retains a collection agency to collect public debts owed to the city, a fee, payable by the debtor, shall be added to the outstanding debt for the collection agency fee incurred.

The collection fee shall be 30 percent of the amount owed to the city before the addition of the collection fee.

B. Before assigning a debt to a collection agency, the city must have evidence that the city sent the debtor a written bill for the debt amount.

C. If a debt amount owed to the city is not paid within 60 days of the date on which the amount becomes due, the director of finance may send a written notice, by regular or certified mail, to the debtor’s last known address according to the city’s records. The written notice shall state the amount owed to the city, the amount of any applicable interest and penalties, that the city may assign the debt to a collection agency for collection if the amount owed, together with any applicable interest and penalties, is not paid in full within 30 days of the date of the written notice. The written notice shall also state that if the city assigns the debt to a collection agency, the city shall charge the debtor a fee to be added to the outstanding debt for the collection agency fee incurred or to be incurred as provided in this chapter.

D. If the amount owed to the city, together with applicable interest and penalties, is not paid in full within 30 days of the date of the written notice as provided in subsection (C) of this section, the city may assign the debt to a collection agency to collect the outstanding debt, together with any applicable interest, penalties and the collection agency service fee.

E. Collection agencies assigned debts under this chapter shall have only those remedies and powers which would be available to them as assignees of private creditors. (Ord. 5063 § 1, 1998.)