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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Dept: Finance
Subject: An Ordinance of the City of
San Bernardino adding Chapter 2.73
to the Municipal Code regarding
Collection of Debts.
From: Barbara Pachon,
Director of Finance
Date: July 12, 2010
Council Meeting: 7/19/10
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.
.~~)&/ BP
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:
Agenda Item No. #/1110
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:
At 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.
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.
1
2
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
ORDINANCE NO.
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
11 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
implementation of procedures to compel the payment of debts owed to the City.
17
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
COLLECTION OF DEBTS
22 2.73.010 Definitions.
2.73.020 Manner of Collection - General
23 2.73.030 Manner of Collection - Collection Agency
24
2.73.010 Definitions
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"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
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1 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
11 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 ofthe 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
appealed within a designated time period.
18
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 ifthe 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
processing of such amounts.
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1
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
and Common Council of the City of San Bernardino at a
, 20 I 0, by the following vote, to wit:
meeting thereof, held on the _
AYES
NAYS
ABSTAIN ABSENT
City Clerk
18
19
The foregoing Ordinance is hereby approved this _ day of
,2010.
21 Approved as to form:
20 PATRICK J. MORRIS, Mayor
City of San Bernardino
22 JAMES F. PENMAN
City Attorney
23 ~ T'PP~
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