HomeMy WebLinkAboutCOW 2008-10-13 Item 4B - Resolution - Cancellation of Past Due Accounts Receivable and Returned Check Write-Offs `-r1, x, CO UNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
I CAS NUMBER: 08-120 (ORIGINAL AGENDA DATE: OCTOBER 13, 2008
AG I?NDA ITf.NI Trr1.k Resolution ordering cancellation of Past Due Accounts Receivable and Returned
Check Write -offs.
C.\'I'I GORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mt; Date 10/13/08 tlltg Date tlitg Date 10 /20 /08 MMltg Date lltg Date l-Itg Date Mtg Date
(SPONSOR 1 1 Council 1 /vi f1 Adm Svcs DCD Finance Fire Legal P &R f1 Police P1V
SPONSOR'S There are certain receivables that have been deemed uncollectible and need to be removed
SI maIAlzY from the Accounts Receivable Ledger by Resolution on an annual basis.
RI: \'11 \VI ?D BY ow mtg. CA &P Cmte F &S Cmte Transportation Cmte
Ll Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DA 1'E: 10/7/08
RECOMMENDATIONS:
SPONSOR /ADMIN. Passage of Resolution
COMM1'ITE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
EXPI RI•.QUIRF,D AMOUNT BUDGETED APPROPRIATION REQUIRED
$N /A $N /A $N /A
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
10/13/08
MTG. DATE ATTACHMENTS
10/13/08 Informational Memorandum dated 9/29/08
Resolution in draft form, with attachment
Minutes from the Finance Safety Committee meeting of 10/7/08
MEMORANDUM
To: Mayor City Council
From: Shawn Hunstock, Finance Director
Date: September 29, 2008
Subject: CANCELLATION OF ACCOUNTS RECEIVABLE
The annual proposed resolution totaling $9,080.51 reflects amounts deemed
uncollectible. The items listed have been through the City's collection program and
have not been successfully resolved. Although we are writing them off the "official" City
books, these amounts will still be subject to collection. These items include: False
Alarms Account total of $175.00, NSF Checks Account total of $1,177.00 and all other
Miscellaneous Billing Account total of $7,728.51. The funds affected will be properly
adjusted.
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 the 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 City cannot revoke or deny a business license for non- payment of an accounts
receivable claim.
C:\Documents and Settings\AII Users \Desktop\Ke11y\MSDATA\Finance \Cancellation of Accounts Receivable memo.doc lsn 9/29/2008
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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 $9,080.51
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 2008.
ATTEST /AUTHENTICATED:
Joe Duffie, Council President
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM:
Filed with the City Clerk
B Passed by the City Council
Office of the City Attorney Resolution Number
Attachment: Attachment A Past -Due Accounts Receivable and Returned Check Write -offs
C: \Documents and Settings \All Users Desktop Kelly MSDATA Resolutions Write offs.doc
LA:kn 10/9 /2008 Page 1 of 1
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Finance Safety Committee Minutes October 7. 2008 Paae 2
G Start-up costs estimated at $200,000.
O Time investment to reach a maintenance level for an operational program.
The City of Tukwila is not the only City requesting information from Des Moines regarding their Animal
Control Division. Recently, Des Moines representatives made a similar presentation to the City of Kent.
Kevin and Jan distributed copies of Des Moines Municipal Code sections pertaining to animal control, the
2008 line item budget narrative for the Des Moines program, and the actual/estimate revenues generated
by City of Des Moines animal licenses. In closing, Des Moines staff offered their assistance in answering
questions as Tukwila researches animal control options in more detail. When starting to implement a
program such as this, Kevin and Jan recommended beginning by establishing the appropriate ordinances,
then preparing and implementing a structured program, and undertaking problem areas first.
II. BUSINESS AGENDA
A. Resolution Ordering the Cancellation of Outstanding. Unredeemed Finance Claims Checks. Municipal
Court Checks and Foster Golf Gift Certificates
Staff is seeking approval of an annual resolution writing -off unredeemed and outstanding items which
will be reported to Washington State in 2008. This year's cancellations total $4,624.80. All cancellations
will be returned to the appropriate City funds with the exception of golf course gift certificates which will
be remitted to the Washington State Depai tinent of Revenue Unclaimed Property Section. UNANIMOUS
APPROVAL. FORWARD TO OCTOBER 13 COW.
B. Resolution Regarding Annual Cancellation for Accounts Receivable
Staff is seeking approval of an annual resolution to cancel (write -off) account receivables deemed
uncollectible. This year's annual account receivable write -off totals $9,080.51. UNANLVIOUS
APPROVAL. FORWARD TO OCTOBER 13 COW.
C. Memorandom of Agreement for FEMA National Urban Search and Rescue Response System
Staff is seeking full Council approval to enter into a memorandum of agreement (MOA) with Pierce
County Department of Emergency Management for Tukwila's participation in Washington Task Force 1
(WATF -1) of the Federal Emergency Management Agency's (FEMA) National Urban Search and Rescue
Task Force System.
This is the continuation of a previous agreement which has allowed Tukwila's participation in the Task
Force which responds to nationally declared disasters. Experiences and training opportunities from
participation in this Task Force are invaluable. The new MOA includes several regulatory changes.
UNANIMOUS APPROVAL. FORWARD TO OCTOBER 13 COW.
M. ANNOUNCEMENTS
No announcements.
IV. MISCELLANEOUS
Meeting adjourned at 5:23 p.m.
Next meeting: Tuesday, October 21, 2008 5:00 p.m. Conference Room 3
@A Committee Chair Approval
Minutes by KAM.