Chapter 3.100
COLLECTION OF DEBT
Sections:
3.100.030 Establishment of procedures.
3.100.040 NSF (non-sufficient funds) service charge – Late fee.
3.100.070 Requirements for debt assignment to collection agencies.
3.100.010 Purpose.
The purpose of this chapter is to create a framework for the Finance Department to establish policies and procedures to collect public debts, refer delinquent accounts of any City department to a collection agency, and to write off certain debts or accounts if found to be uncollectible. (Ord. 22-1018 § 1)
3.100.020 Definitions.
“Debts owed to the City” or “public debts” means any charges, fines or penalties, assessments, taxes, permit fees, license fees, miscellaneous billings, receivables, and any monetary obligations owed to the City of whatever nature.
“Past due account” or “delinquent account” means the required payment on an account was not made by the obligor at the designated time. Fines, penalties, charges, and fees are past due when they are not received by the date set forth in the notice to the obligor.
“Obligor” means the person owing and responsible for paying the debt owed to the City.
“The Finance Director” means the Director of Systems and Finance and includes his or her designee.
“Uncollectible debts” means debts that are not likely to be paid by the obligor due to death, insolvency, bankruptcy, or other reasons. (Ord. 22-1018 § 1)
3.100.030 Establishment of procedures.
The Director of Finance shall make all reasonable attempts to collect debts owed to the City. He/she shall establish and maintain policies and procedures relating to the collection of debts owed to the City. (Ord. 22-1018 § 1)
3.100.040 NSF (non-sufficient funds) service charge – Late fee.
The City may accept payment by cash, credit card or certified funds from any obligor or their designee. The Finance Director is authorized to establish a service charge to be imposed upon any obligor who makes late payments or who, in making a full or partial payment of an invoiced amount, tenders a payment which is not honored by their financial institution for any reason. The service charges shall be stated in the schedule of license fees, permit fees, other fees, and charges for City services. (Ord. 22-1018 § 1)
3.100.050 Payment plan.
The Finance Director is authorized to enter into a payment plan with individuals who cannot meet their financial obligation to the City in one (1) payment. The terms of the payment plan shall be determined at the discretion of the Finance Director and will include an interest rate as well as an additional charge for monitoring the payment plan as allowed by law. (Ord. 22-1018 § 1)
3.100.060 Lien authorized.
The City shall have a lien for any debts owed to the City related to any aspect of the code compliance process including the cost of abatement of any nuisance or chronic nuisance, and the revocation of a business license, or a permit. The lien provided under this chapter shall be subordinate to all previous existing liens imposed on the same premises or real property by a governmental entity, including taxes imposed by the State or the County, or priority liens established by statutes, but shall otherwise be superior to all other liens.
A. A lien for any debt owed to the City, including but not limited to the cost of abatement proceedings under the SeaTac Municipal Code, shall be filed for record with the King County Recorder’s Office against the premises or real property where the work of abatement was performed. A lien under this chapter shall be filed within ninety (90) days from the later of the date that the monetary penalty is due or the date the work is completed, or the nuisance abated.
B. The lien shall contain sufficient information regarding the violation, a legal description of the property to be charged with the lien, the owner of record, and the total amount of the lien.
C. Any lien under this chapter shall be verified by the Finance Director and may be amended from time to time to reflect changed conditions or monetary amount.
D. No liens filed under this chapter shall bind the affected property for a period longer than ten (10) years, without foreclosure, or extension agreed upon by the property owner and the Finance Director. (Ord. 22-1018 § 1)
3.100.070 Requirements for debt assignment to collection agencies.
If the attempts to collect debt fail, and at least one hundred twenty (120) days have passed since the original due date, the Finance Director can assign the debt to a collection agency pursuant to RCW 19.16.500. No debt owed to the City may be assigned to a collection agency unless (A) there has been an attempt to advise the debtor (1) of the existence of the debt, and (2) that the debt may be assigned to a collection agency for collection if the debt is not paid, and (B) at least thirty (30) days have elapsed from the date that notice to the obligor was attempted. (Ord. 22-1018 § 1)
3.100.080 Write-off debts.
Upon the Finance Director’s determination that there are no cost-effective means of collecting certain debts, following reasonable attempts, such uncollectible debts may be disposed as follows:
A. After more than twenty-four (24) months have passed, the amounts due the City which are up to one thousand dollars ($1,000), can be cancelled or written off by the authority of the Finance Director.
B. After more than twenty-four (24) months have passed, the amounts due the City which are more than one thousand dollars ($1,000) but no greater than ten thousand dollars ($10,000) can be cancelled or written off by the authority of the City Manager.
C. After more than twenty-four (24) months have passed, the amounts due the City which are more than ten thousand dollars ($10,000) can be cancelled or written off by the authority of the City Council. (Ord. 22-1018 § 1)