Commissioners in Bay City, Mich., will vote on Monday to approve a contract with Velo Law Office to help collect $300,000 in unpaid bills, according to a published report.
The $300,000 is from unpaid utility bills, construction inspections, tree replacements, false alarms, and special trash pick-ups. The city does not have enough resources to go after the unpaid accounts on its own, according to the report. The city used to work with an outside agency but has not done so in several years.
The agency has agreed to take a 20% commission on anything it collects and 40% of what it collects if it has to go to court. The likely collection strategy will be to send a number of letters before initiating any legal action, according to the city’s manager.
