N.Y.C. Charter § 1527: Section 1527. Contracts with collection agencies.

1. Notwithstanding any other provisions of law to the contrary, the commissioner may enter into contracts with collection agencies for the collection of (i) any or all tax warrants and judgments for all city taxes subject to collection by the department, other than real property taxes, or (ii) city water and sewer charges, or both; provided however, that any such contract shall be subject to the provisions of sections three hundred twelve and three hundred thirteen.

2. Any such contract shall apply only to such tax warrants and judgments and to such water and sewer charges as the commissioner may refer to the collection agency, and shall be terminable at the will of the commissioner.

3. The consideration to be paid to such collection agency may be a percentage or percentages of the amount collected by such agency, or as otherwise provided in the contract, but shall be within the amount appropriated and available for such purpose.

4. No legal action to collect tax warrants and judgments or water and sewer charges under any contract entered into pursuant to this section shall be initiated without the express written permission of the corporation counsel, and the selection of any attorney to take such legal action shall be subject to the approval of the corporation counsel.

5. Before beginning performance of a contract authorized by subdivision one of this section, the contracting collection agency shall give security for faithful performance and shall provide such insurance policies, including but not limited to a comprehensive general liability insurance, naming the city as a party in interest, as the commissioner may require. The adequacy and sufficiency of such security and insurance policies, as well as the justification and acknowledgement thereof, shall be subject to the approval of the comptroller. The commissioner, in his or her discretion, may require additional security or insurance in such amounts and running to such city officers and employees as the commissioner may require, to indemnify them for any liability incurred by reason of any act or omission of such collection agency.

6. No contract entered into pursuant to this section may be so worded as to grant to any contracting collection agency the exclusive right to perform any work authorized by this section.