(1) Within three years after the tax becomes payable or within three years after a determination becomes final, the City may bring an action in the name of the city in the courts of this state, another state or the United States to collect the amount delinquent and penalties and interest.

(2) In lieu of filing an action for the recovery, the City may submit any outstanding tax to a collection agency if such taxes are more than thirty (30) days delinquent. So long as the City has complied with ORS 697.105, the City may add to the amount owing an amount equal to the collection agency fees, not to exceed the greater of fifty (50) dollars or fifty (50) percent of the outstanding tax, penalties and interest owing.