Access Capital Collections City Of Vallejo Have you ever dealt with this Collection company Visalia California

Recently After reviewing my credit report, I found a negative reporting submitted to the three major credit bureaus from a company called Access Capital Visalia, California. I've never heard nor dealt with this company ever. I contacted this company and received poor customer service and told that the debt reported will
remain on my report for several years.
The debt in question is a water bill from the City of Vallejo and was a carry over in a closing statement I knew nothing about nor received as a billing statement. However, this debt was paid in full and satisfied over a period of time but somehow ended up in this company's file.
Obviously a collection company once in receipt of a debt wil not release a debt until they are paid for their service and interest fees.
What a racquet! I don't know this company, I don't owe this company, I don't care to do business with this company. Is there some way that I can take this company's reporting off my credit report and out of my life for good?
What are my rights in this situation?

Makeitright
South San Francisco, California
U.S.A.