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Council moves to adopt collection-fee ordinance and approve legal-services agreement for delinquent accounts
Summary
A vendor presentation led to a motion to adopt an ordinance allowing collection fees on delinquent non-real-estate accounts and to approve a contingency-based legal-services agreement; council moved and advanced the ordinance and contract for adoption and execution.
John Rife of a government-collections firm described how his office works with localities to collect delinquent accounts (non-real-estate), using an electronic interface and operating on a contingency-fee model where the delinquent account pays the cost. He said the model avoids taxpayer funding for collections and uses a secure, FedRAMP-certified portal.
Staff noted an ordinance and a legal-services agreement were in the packet that evening. The ordinance would permit localities to pass collection fees on to delinquent account holders for certain non-real-estate charges; the agreement would formalize the services. Council moved to adopt the ordinance and to authorize the town manager to execute the legal-services agreement.
Councilors asked operational questions about data transfer and system integration; Rife confirmed his firm can accept an electronic file and remit collections electronically. The motion to adopt the ordinance and approve the agreement proceeded in council and was put to a vote during the meeting record.
