HomeMy WebLinkAbout2010 11_Contract with Collection Agency_2010.09.21CITY OF OWASSO, OKLAHOMA
RESOLUTION NO. 2010-11
A RESOLUTION DECLARING AUTHORIZATION OF ADDITIONAL COLLECTION FEES IN AN AMOUNT
NOT EXCEEDING THIRTY-FIVE PERCENT ON CERTAIN UPAID DEBTS, ACCOUNTS RECEIVABLE, FINES,
COST, FEES, PENALTIES, INTEREST AND OTHER SUMS DUE THE CITY, AND AUTHORIZING AND
DIRECTING THE PROPER OFFICIALS OF THE CITY OF OWASSO, OKLAHOMA, TO IMPLEMENT SUCH
ACTIONS AS NECESSARY TO IMPOSE AND COLLECT SUCH ADDITIONAL FEES.
WHEREAS, under 11 O.S. Section 22-138 (effective May 22, 2009), the City of Owasso,
Oklahoma ("City") may enter into a contract with a collection agency for the provision of
collection services for one or more of the following items: (1) debts and accounts receivable
including, but not limited to, unpaid fees, penalties, interest, and other sums due the City, and
(2) court penalties, costs, fines and fees in cases which the defendant has failed to appear or
otherwise failed to satisfy a monetary obligation ordered by municipal court; and,
WHEREAS, under 1 1 O.S. Section 22-138, if the City enters into such a contract with a collection
agency it may authorize the addition of a collection fee in an amount not to exceed thirty-five
percent (35%) on the items that have been referred to the collection agency for collection; and,
WHEREAS, the Owasso City Council necessitates that authorization for such additional
collection fees be implemented.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
that a collection fee in an amount not to exceed thirty-five percent (35%) of the original
indebtedness may be added on items referred to a collection agency for collection as
authorized by 1 1 O.S. Section 22-135 or other state law as amended.
PASSED AND APPROVED this 21st day of September 2010 by the City Council of the City of
Owasso, Oklahoma.
O\~~{ O F U yy
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Attest: SEAL
Sherry Bis p, City Cl OkLAHQM~
u Bonebrake, Mayor
Approved As To Form:
~TL l imbardi, City Attorney
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TI,e City Wit out Lirtlit3.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Michele Dempster
Human Resource Director
SUBJECT: Resolution #2010-11
DATE: September 17, 2010
BACKGROUND:
Oklahoma Statute Title 11, Section 22-138, House Bill 1800, authorizes a municipality to assess a
collection fee in an amount not to exceed thirty-five percent (35%) on debts and accounts
receivable including, but not limited to, unpaid fees, penalties, interest, and other sums due the
municipality, if the City contracts with an agency for these services.
Resolution #2010-11 declares the authorization of additional collection fees in an amount not to
exceed 35% on certain unpaid debt, accounts receivables, fines, costs, fees, penalties, interest
and other sums due the City. Examples of when this collection fee may be utilized would
include subrogating damage to City property, collecting delinquent court fines and warrants,
and collecting on delinquent utility accounts for individuals who have discontinued service.
RECOMMENDED ACTION:
Staff recommends City Council approval of Resolution #2010-11 authorizing the assessment of
collection fees up to 35%.
ATTACHMENT:
A. Resolution #2010-11