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Home My WebLink About12- Finance CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Barbara Pachon, Subject: An Ordinance of the City of Director of Finance San Bernardino adding Chapter 2.73 to the Municipal Code regarding Dept: Finance ORIGINAL Collection of Debts. Date: July 12, 2010 Council Meeting: 7/19110 Synopsis of Previous Council Action: 7/6/10 M&CC approved agreement with PMR Progressive LLC to provide Collection Services of delinquent accounts for the City of San Bernardino. Recommended motions: That said motion be laid over for final adoption. -Lug a B P Signature Contact person: Barbara Pachon, Director of Finance Phone: 5242 Supporting data attached: Staff Report, Attachments Ward: All FUNDING REQUIREMENTS: Amount: Source: Finance: Council Notes: I!� 7/19h mil/ ,T 330 Agenda Item No. 0 ��d i CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT: Ordinance adding Chapter 2.73 to the Municipal Code regarding Collection of Debts. BACKGROUND: jAt the July 6, 2010 Council Meeting, the Mayor and Common Council, approved a resolution to enter into an agreement with PMR Progressive LLC to provide debt collection services of delinquent accounts for the City of San Bernardino. To ensure that the City is in compliance with debt collection practices, the City Attorney's Office recommended that an Ordinance be prepared. The City Attorney's office and Finance worked together to prepare the attached proposed Ordinance. The Ordinance brings together in one place a number of provisions from the Charter, the Municipal Code and the general law that relate to the use of a debt collector by the City. I FINANCIAL IMPACT: No financial impact for amending the Municipal Code to add this new ordinance. RECOMMENDATION: That said Ordinance be laid over for final adoption. I Pr IJ ORDINANCE NO. cc 3 AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA ADDING CHAPTER 2.73 TO THE SAN BERNARDINO 4 MUNICIPAL CODE REGARDING COLLECTION OF DEBTS 5 WHEREAS, the San Bernardino Municipal Code in some places explicitly and in other places implicitly sets forth authorization for, and the manner of, collection of debt by 6 the departments of the City, and 7 WHEREAS, the Mayor and Common Council hereby find that it is a benefit to the citizens of the City of San Bernardino that there be a general rule granting the authority 8 and approving the manner of collection of debt by the departments of the City; and 9 WHEREAS, it is not intended hereby that any existing regulation regarding collection of debt shall be superseded, but that existing regulations are continued and 10 supplemented as appropriate, and 1 I WHEREAS, the Mayor and Common Council further find that the citizens of the City of San Bernardino are benefitted when the departments of the City have access to 12 the full range of options for efficient and effective collection of debts; and, 13 WHEREAS, California Government Code Section 16585 provides that a city, county, or city and county may sell or transfer part or all of its accounts receivable to a 14 private debt collector or private persons or entities subject to the conditions provided in that section; and, 15 WHEREAS, the City Attorney, the City Clerk, the City Manager, and the Finance 16 Director each has some current level of authority and responsibility respecting the 17 implementation of procedures to compel the payment of debts owed to the City. NOW THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 18 BERNARDINO DO ORDAIN AS FOLLOWS: 19 Section 1. Chapter 2.73 is added to Title 2 of the San Bernardino Municipal Code to 20 read as follows: 21 Chapter 2.73 22 2.73.010 Definitions. COLLECTION OF DEBTS 2.73.020 Manner of Collection - General 23 2.73.030 Manner of Collection - Collection Agency 24 2.73.010 Definitions 25 'Debt owing to the City" (sometimes referred to as "account' or"accounts") shall mean the 26 amount of any unpaid judgment, fee, charge, fine, penalty, tax, assessment, or other sum of any nature whatsoever, imposed on a person other than the City of San Bernardino 27 pursuant to any provision of this Municipal Code. The term includes all amounts 28 '1 1 \ 0 Pop I AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA ADDING CHAPTER 2.73 TO THE SAN BERNARDINO 2 MUNICIPAL CODE REGARDING COLLECTION OF DEBTS 3 encompassed in the foregoing notwithstanding the separate or additional classification of 4 such amount that may be set forth in the applicable provision of the municipal code. The term includes all interest, accruals, administrative fees, fees including attorney's fees, 5 penalties, and/or costs of collection associated with the original amount. 6 2.73.020 Manner of Collection - General. 7 A. Any Debt owing to the City is subject to recovery using any procedure for debt collection permitted by law. 8 B. The procedures set forth in this chapter are in addition to and not in derogation 9 of any other provision for collection of a Debt owing to the City. 10 2.73.030 Manner of'Collection - Collection Agency I 1 A. The City Manager may, with the approval of the Mayor and Common Council contract for the services of a collection agency to recover amounts due as a Debt-owing to 12 the City. If the election is made to use a collection agency, such use shall be consistent with the provisions set forth herein. The City Manager may delegate this authority among the 13 departments of the City as he/she may deem appropriate. 14 B. Employment of a collection agency shall not include the services of a licensed attorney and shall not include participation in any court proceeding by the collection agency 15 on behalf of the City except with the prior written approval of the City Attorney. 16 C. Prior to transfer of the account to a collection agency, the City Manager or his/her designee shall notify the debtor in writing, at the address of record, that the alleged Debt 17 owing to the City will be turned over for private collection unless the account is paid or 18 appealed within a designated time period. ' D. Assignment or other legal transfer of the rights in an account to the collection 19 agency may be made with the prior approval of the City Attorney. 20 E' No Debt owing to the City shall be transferred to a collection agency if the account has been contested. 21 F. No contract with a collection agency for the collection of Debt owing to the City 22 shall take effect unless and until there are written policies and procedures for the internal 23 processing of such amounts. 24 25 26 27 28 Page 2 I 2 AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA ADDING CHAPTER 2.73 TO THE SAN BERNARDINO 3 MUNICIPAL CODE REGARDING COLLECTION OF DEBTS 4 5 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor 6 and Common Council of the City of San Bernardino at a meeting thereof, held on the 7 — _day of 2010, by the following vote, to wit: 8 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 9 MARQUEZ 10 DEJARDINS 11 BRINKER 12 SHORETT 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 17 City Clerk 18 The foregoing Ordinance is hereby approved this_day of 2010. 19 20 PATRICK J. MORRIS, Mayor 21 Approved as to form: City of San Bemardino 22 1 JAMES F. PENMAN 23 City Attorney 24 25 26 27 28 PW;