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Home My WebLink AboutCOW 2009-10-12 Item 5I - Resolution - Cancellation of Past Due Accounts Receivable and Returned Check Write-Offs o- COUNCIL AGENDA SYNOPSIS IILA ly9 c9 1 f ••:y Iznteul ITEM No. p s 1Vleeting Date I Prepared by 1 Mayors reviem Council roue a I 10/12/09 1 SH I ..A.t- I 4 '1 0?�� I 10/19/09 SH I u I I I T a ITEM INFORMATION Cas Number 09-149 ORIGINAL AGI•:ND.\ D, \'1'V: OCTOBER 12, 2009 .\(;I :NU.\ III: \1 TII'I.IK: Resolution ordering cancellation of past due Accounts Receivable and Returned Check Write -offs. C al ;OR\ Dimu.ciion 1 !Motion Re.rolatioz Ordinance Bic' in'ard Public Nearing 1 1 Other AL /g Date 10/12/09 11 itg Date 111tg Date 10/19/09 [lltg Date illtg Date Al ltg Date tlltg Date SPONSOR Corinth 1 1 Atityor _'3cIm Svae 1 DCD Finance 1 1 Fire 1 1 Legal P &R Police 1 Pit Si)( )Ns()R'S There are certain receivables that have been deemed uncollectible and need to be removed SI' \I\I.vO from the Accounts Receivable Ledger. The Council is being asked to consider and approve the attached resolution. RI \'1I .\\'I?1) By 1 COW Mtg. 1 CA &P Cmte F &S Cmte 1 I Transportation Cmte 1 Utilities Cmte Arts Comm. Parks Comm. p Planning Comm. DATE: 10/06/09 RECOMMENDATIONS: SPONSOR /AI) \IIN. CO\I \IT 1 1NI Unanimous approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE E \PI NDI.1'URI? RI,V UIRKI) AMOUNT BUDGETED APPROPRIATION REQUIRED $N /A $N /A $N /A Fund Source: N/A Comments.. MTG. DATE RECORD OF COUNCIL ACTION 10/12/09 10/19/09 MTG. DATE ATTACHMENTS 10/12/09 Informational Memorandum dated 09/30/09 Resolution in draft format with Attachment A Minutes from the Finance and Safety Committee meeting of 10/6/09 10/19/09 TO: ISSUE City of Tukwila BACKGROUND DISCUSSION RECOMMENDATION ATTACHMENTS INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: September 30, 2009 SUBJECT: Cancellation of Accounts Receivable Jim Haggerton, Mayor The cancellation of uncollectible accounts receivable totaling $185,450.81. These items include: False Alarms $775.00, Miscellaneous Billings $91,059.60, NSF Checks $482.00 and Gordon's on the Green Concessions Fees $93,134.21. The items listed have been through the City's collection program or are party to bankruptcy and have not been successfully resolved. The process for tracking accounts receivable is quite thorough. The steps below are followed prior to the attached write -off resolution: Invoice is sent to recipient by Finance Department payable in 30 days. Second notice is then sent specifying due date before receivable is forwarded to collection agency. Collection agency sends a series of three letters for the original amount due, with the final letter advising that legal action will be taken if payment is not made. If there is no response from debtor after the letter series, the debt is then reported to the National Credit Bureaus. Collection agency then pursues legal action after the debtor is given a final opportunity to dispute the claim. This includes attaching checking accounts, garnishments, lawsuits and other legal methods. The items on the proposed resolution reflect those that have been through the process above and receivables are still due with the likelihood of collection being very low. We do collect amounts after write -offs but very seldom. The Council is being asked to consider this item at the October 12, 2009 Committee of the Whole meeting and subsequent October 19, 2009 Regular meeting. Draft Resolution, with attachment A AcT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ORDERING THE CANCELLATION OF PAST -DUE ACCOUNTS RECEIVABLE AND RETURNED CHECK WRITE -OFFS. WHEREAS, certain receivables and checks have been deemed uncollectible after efforts by both the City and a collection agency have been unsuccessful; and WHEREAS, the City will continue to pursue these receivables when practical; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Miscellaneous Accounts Receivable and Returned Checks. The total of $185,450.81 is deemed uncollectible. See Attachment A. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2009. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney W: Word Processing Resolutions Write Offs.doc ksn 09/30/2009 Joan Hernandez, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment: "Attachment A" Past -Due Accounts Receivable and Returned Check Write-offs as of September 30, 2009 Page 1 of 1 Invoice Date 1 12/31/07 12/07/06 12/28/06 02/20/07 01/04/07 07/05/07 12/31/06 04/22/05 05/31/05 05/31/05 06/30/05 08/31/05 08/31/05 09/25/06 09/30/05 11/16/05 12/31/05 12/31/05 04/20/06 04/20/06 04/20/06 05/31/06 08/31/06 08/31/06 08/31 /06 10/30/06 10/31/06 11/30/06 12/31/06 02/28/07 03/31/07 05/15/07 10/22/07 12/04/07 12/20/07 12/31/07 02/26/08 03/06/08 05/27/08 05/27/08 Attachment A as of 09.30.09 Attachment A Past Due Accounts Receivable and Returned Check Write -offs as of September 30, 2009 ":MISCELLANEOUS For Fire hydrant damage Reinspection fee Reinspection fee Reinspection fee Reinspection fee Reinspection fee Reinspection fee Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill King Co Sewage Trtmt Capacity Chg Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Their portion of Seattle City Light Bill Customer Michael Adams Boss Wear (965) Boss Wear (965) Boss Wear (961) Boss Wear (1111) Busy Body Home Fitness Cost Plus Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Fund Water General General General General General General Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Golf Invoice No. MB -00118 CD -00329 CD -00328 RF -00018 RF -00002 RF -00089 CD -00318 CD -00434 CD -00432 CD -00433 1 CD -00431 1 CD -00430 1 CD -00436 CD -00418 CD -00429 CD -00422 CD -00428 1 CD -00435 1 CD -00425 CD -00426 CD -00427 CD -00424 CD -00416 CD -00417 1 CD -00421 CD -00419 CD -00423 CD -00420 1 CD -00415 MB -00053 MB -00049 1 MB -00050 MB -00051 MB -00052 MB -00048 MB -00085 MB -00337 MB -00338 MB -00197 MB -00198 Amount 372.50 60.00 85.00 60.00 60.00 60.00 110.00 2,307.83 2,121.60 2,221.62 2,222.06 2,785.08 2,310.50 1,834.50 2,666.55 2,275.58 2,523.84 2,100.18 2,120.34 1,977.69 2,292.06 2,008.98 2,354.69 2,633.18 2,241.29 2,473.93 2,204.43 2,149.02 2,338.66 3,934.68 5,289.24 1,708.90 3,871.65 1,845.14 1,530.07 1,928.24 1,573.81 1,772.41 1,497.02 1,617.93 Notes Insurance will not pay- caused by other party To EPR 8/10/07 To EPR 9/26/07 1To EPR 10/7/08 To EPR 10/7/08 To EPR 10/7/08 To EPR 8/10/07 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 !Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 1 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 'Bankrupt 6/1/2009 1 Bankrupt 6/1/2009 (Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 1 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 1 09/30/2009 07/03/08 07/03/08 07/30/08 09/05/08 10/28/08 12/31/08 10/2/006 12/15/06 05/16/07 11/07/06 11/07/06 Involce Date 11/03/06 12/14/06 11/03/06 12/14/06 12/14/06 11/03/06 11/03/06 12/14/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 05/10/07 12/31/06 Attachment A as of 09.30.09 Attachment A Pas Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Gordon's on the Green Medina Restaurant North Star Design Priya's Auto Care Center Southcenter One Hour Cleaners Washington National Mortgage Miscellaneous Billing Total Customer American Broadcast System American Broadcast System Armed Forces Recruiting !Armed Forces Recruiting 1Armed Forces Recruiting }Casual Male Champs Sports Warehouse Checker Collision Center Checker Collision Center (Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center 1 Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Checker Collision Center Half Price Books t Due Accounts Receivable Golf MB -00200 1 Golf MB -00201 j Golf MB -00204 Golf 1 MB -00210 Golf 1 MB -00220 1 Golf 1MB -00265 General CD -00316 1 General CD -00267 General RF -00060 1 1 General CD -00296 General CD -00288 1 Fund 1 General General j General General General General General General General !General General General General General General General General General General General 1 General General General General General General General General Invoice No. CD -00054 CD -00088 CD -00013 CD -00012 CD -00007 CD -00181 CD -00165 CD -00120 CD -00115 CD -00122 CD -00123 CD -00124 CD -00126 CD -00137 PF -00010 PF -00011 PF -00012 PF -00013 PF -00014 PF -00021 PF -00022 PF -00015 PF -00016 PF -00017 PF-00018 PF -00019 PF -00020 CD -00169 I I$ and Returned Check Write -offs as 1,674.96 1,981.70 2,137.14 2,034.42 2,168.75 3,222.43 60.00 60.00 60.00 60.00 60.00 91,059.60 1 Amount 25.00 25.00 25.00 25.00 25.00 25.00 1 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 1 25.00 1 25.00 1 25.00 2 Their portion of Seattle City Light Bit Their portion of Seattle City Light Bit Their portion of Seattle City Light Bill Their portion of Seattle City Light Bit Their portion of Seattle City Light Bit Their portion of Seattle City Light Bill Reinspection fee Reinspection fee Reinspection fee Reinspection fee Reinspection fee FALSE ALARMS For False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm False Alarm of September 30, 2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 Bankrupt 6/1/2009 To EPR 2/20/07 To EPR 8/10/07 To EPR 8/10/07 To EPR 08/10/07 To EPR 08/10/07 To EPR 8/10/07 To EPR 8/10/07 In dispute In dispute In dispute To EPR 8/10/07 To EPR 8/10/07 To EPR 09/26/07 To EPR 09/26/07 To EPR 09/26/07 To EPR 09/26/07 To EPR 09/26/07 To EPR 09/26/07 To EPR 09/26/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 10/15/07 To EPR 09/26/07 Notes 09/30/2009 en t A past '"'G e neral I \GD Atta G I CD I� (Precision Aut a0dy I Gene ral 09118806 IPrecdlon Auto Body 09!18 (Site Lock Systems A larm I False s Tot 1211 810tri- 1 Fun I I era \GK Customer \Ger pate IJ_ General I Return Porsche Phelps I G I 0 311318 Tani' Ma -na I General 03113108 tTania Maw General C )3113108 Mun Sa pit I I General p4102108 Jolyn Gapitulo Hohnstein General I I Gen 05106108 T 6arnes,_� 07(16108 t.awanna Gale Check Total\ 08113108 Retu� 30 200 OUP ants o eneral lse Golf m a 25.00 F 0007 I a S�° 000 L$ 775.0 .uET'RI\lf EGKFor Amount I `youth Baslcctball Check No. I 65.0 Preschool 120.00 Swim Lessens #.1011 i CK #1243 .001 I, TCG gootcam� CK #1244 40.0t? I Adult Fitness Pass CK* 005 27 paycanrp— CO 2657 900 Tkw 10._ 0 QO` "_IGamp u CK# 107 h GK# 1022 Q 482 IPayor reports 1 II 11 1 I 1 Concessions Pees 1213112008 Write otf Grand Total I I 183,086.31 I .Son the Green bankr uptcy I i Gordon I Note: 1 I _1_ tem ber -1 Nlrite -offs as S EPR 08110107__ s Alarm To EPR 08110 e existent and RetuT !arm Address non Receivable False A RO 25 00 \false Alarm plar ITo EPR5128108 108 00 g ON THE GREEN G ORDGN' 12!31108 EPR512 93,134.2174118107 ITo To EPR5128 \To EPR5128108._ To EPR5128108 `To EPR 9126108 I 9 R 9R 1510B TI\lotes Bankrupt 61112009 I r i 0913012009 FINANCE AND SAFETY COMMITTEE Meeting Minutes October 6, 2009 5:00 p.m.; Conference Room #3 City of Tukwila Finance and Safety Committee PRESENT Councilmembers: Pam Linder, Chair; Joe Duffle and De'Sean Quinn Staff: Shawn Hunstock, Bob Giberson, Nick Olivas, Mary Miotke, Bruce Fletcher and Kimberly Matej Guests: Chuck Parrish CALL TO ORDER: Chair Linder called the meeting to order at 5:03 p.m. Due to time constraints (a Council Shoreline Master Program Work Session beginning at 6.•00 p.m.), agenda items were discussed in an order different from that presented in the original meeting agenda. Additionally, there was not ample time to discuss all items scheduled. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Resolution Regarding Annual Cancellation for Accounts Receivable, Staff is seeking full Council approval of an annual resolution to cancel (write -off) account receivables deemed uncollectible. This year's annual account receivable write -off totals $185,450.81. A significant amount of this write -off ($183,086.31) is related to the previous golf course concessionaire, Gordon's on the Green, who filed bankruptcy on June 1, 2009. Although the City has filed a claim for reimbursement of the outstanding amount owed, for accounting purposes it is best for the City to cancel this receivable, and consider it uncollectible. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 12 COW. B. Ordinance Establishinn Water. Sewer and Surface Water Utility taxes Staff is seeking full Council approval of a draft ordinance which establishes a utility tax on the Water, Sewer and Surface Water Funds to pay for the cost of emergency preparedness and potential responses resulting from such. Over the next several weeks, costs for emergency preparedness and responses specifically relating to the conditions of the Howard Hanson Dam are anticipated to cost the City between $2.1 to 2.5 million. Initially, it was believed these costs would be much higher. However, a significant costs saving was recognized when it was identified that flood response equipment will not have to removed and replaced at the beginning and end of each flood season, but can stay in place for up to five years with proper maintenance. Unfortunately, ongoing costs are still unknown. Taxing the City's Water, Sewer and Surface Water Funds will provide the City with sufficient monies to pay for these potentially significant costs and is allowed by state law. Most cities have imposed this type of tax for years. The draft ordinance calls for a 35% Utility Tax on the total gross revenue from each Fund for seven months (October 7, 2009 through April 30, 2010) generating approximately $2 million. The tax will then be reduced to a 10% tax on total gross revenues for a 32 -month period (May 1, 2010 through December 31, 2012), generating approximately $900,000 annually. These Utility Funds will still be self sustaining after the 35% tax.