HomeMy WebLinkAboutReg 2003-10-20 Item 8C - Resolution - Cancellation of Past Due Accounts Receivable and Returned ChecksCOUNCIL AGENDA SYNOPSIS
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I Timeline:
Sponsor's Summary:
1 Meeting Date 1
1 10/20/03 1
Initials
Prepared by 1 Mayor's review 1 Council review 1
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I CAS Number: 03-135 I Original Agenda Date: 10/20/03
1 Agenda Item Title: Canceling the past due accounts receivables and resolution returned checks write offs.
I Original Sponsor: Council Admin. X
Approve at October 20, 2003 Regular Meeting
See attached Staff Report
Recommendations:
Sponsor: Approve as submitted
Committee: Finance Safety Committee agreed to move forward at October 6, 2003 meeting.
Administration: Same as sponsor
1 Cost Impact (if known): $18,974.00
I Fund Source (if known): See Attached
Meeting Date 1
10/20/03 I
1 0- 20 03
rc.3' *'•I% a /i'i
Action
Staff Report from Ocotber 2, 2003
Finance Safety Committee meeting from October 6, 2003
Resolution. Final format.
ITEM No.
i
analar
Meeting Date Attachments
MEMORANDUM
To: Mayor City Council
From: Alan R. Doerschel (2 R J
Date: October 2, 2003
Subject: CANCELLATION OF ACCOUNTS RECEIVABLE
The annual proposed resolution totaling $18,974.01 reflects amounts deemed
un- collectible. 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. False alarms account for $450.00, NSF checks $6,969.30 of which
$6,710.30 is for the Loews Theatre bankruptcy. All others total $11,554.71.
Of the $11,554.71 total, $5,515.12 is for a claim involving the damage of City
property and it appears we probably cannot recover our costs. 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.
A 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 first
letter in the 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.
Finance and Safety Committee
October 6, 2003
Present: Joe Duffle, Chair; Jim Haggerton, Richard Simpson
Alan Doerschel, Rhonda Berry, Lucy Lauterbach
1. Refinancing 1994 Bond Issue In 1994 the City issued bonds for building a new community
center and fire station. The committee considered a new bond to replace those older bonds at a
lesser rate that will save the City money. This was not done with the other recent bond to avoid a
limit for the bonding. A chart showed savings of about $26,000 each year until the bonds mature
in 2014. This will be handled in the same manner as the recent bond, with the final interest
numbers being added on the night of the Council meeting the bond is on the agenda..
Recommend bond to COW.
2. Cancellation of Accounts Receivable Each year the City gives up on collecting some
revenues owed it because neither the city nor the collection agency is able to get the funds. The
largest bill is owed by Loews Theater, which went bankrupt. Another large fee was from David
L. Wilson, who damaged city property (sewer facility) and is not able to pay the cost. Alan said
the $18,974 amount is about what is has always been. Recommend issue to COW.
3. Write Off of Warrants, Checks and Gift Certificates Just as the City is owed some monies
it cannot collect, so do some people not cash city certificates or small checks. The largest credit
balances come from the court, and golf course certificates are also often unused. After
understanding how that happens, the committee recommended the resolution. Recommend
resolution to COW.
4. Witness Fee Increase Because the current level of funding witnesses is 5200 every two
week period, it is often not enough, and court personnel have to come to Finance for more
funding. By raising the amount to $500, it should allow the court to pay witness vouchers as they
get them. Alan will need to do a budget amendment. Recommend increase in revolving fund to
COW.
5. 2003 Budget Amendment Alan went through the items in the budget amendment. They
have all but one been to Council before. On the revenue side, a grant for Foster playground came
in, and in the spring some summer help was hired to help clean the parks. There was a large
payoff of unused vacation/sick leave for John McFarland who was a PERS 1 employee. Extra
funds for ACC and for the DC lobby firm of Michelle Guigere who was re -hired after the first of
the year added costs. Funds were added to demolish the burned house on Poverty Hill (the
money will be put as a lien against the house). We got money from six cities for V -Net, as we are
the financial city for that fund now. The proceeds and expenditures from the bond recently
passed are included, as are costs for the new bond being considered now. Recommend
ordinance to COW.
6. Lodging Tax Advisory Board Two new members are being added to the LTAB, bringing the
number on the Board to 9. Alan said the new members should be good additions: one is from the
Doubletree and one from Starfire, so a contributor and beneficiary balance one another. An
ordinance will be needed to make the formal change. Recommend issue to COW.
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Committee chair approval
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 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:
Section 1. Miscellaneous Accounts Receivable. The total of $18,974.01 is
deemed uncollectible. See Attachment A.
PASSED BY THE CITY COUNCIL OF THE C1TY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2003.
ATTEST AUTHENTICATED:
Jane E. Cantu, CMC, City Clerk
City of Tukwila
Washington
Resolution No.
Pam Carter, Council President
APPROVED AS TO FORM:
Filed with the City Clerk
B Passed by the City Council
Office of the City Attorney Resolution Number
Write Offs 10/9/03
1 11/30/01 I IAM PM Prestige Station
09/19/011 Alexa Berlow
07/25/02; Best Buy
11/07/011 I Best Cafe and Teriyaki
1 12/17/01 'Consolidated Property Mgmt.
1 02/28/02 Construction Associates, Inc.
1 07/29/02 Construction Associates, Inc.
1 03/29/02 David L. Wilson
12/31/01 'Steve Forman
04/10/02 1 Futon Gallery
04/23/02 I Futon Gallery
05/09/02 I Futon Gallery
1 02/28/02 I Robert Holman
1 02/28/02 I Lamar E. Jones
1 05/23/02 I La Rochelle Apartments
1 07/29/02 'Tina La Rosa
1 08/08/02 :Bill Lipscomb
11/14/01 lOreck Floor Care Center
12/31/01 IParkside Office Building
1 01/16/02 IParkside Office Building
05/17/02 IRodriguez Market
02/19/02 Superior Glass
11/21/01 'Texaco Southcenter, Inc.
1 10/31/01 'Williams Communications
01/17/021 Wilsons -The Leather Experts
Miscellaneous Total I
04/04/02 Greg Deano
04/04/02 Greg Deano
10/31 /01 Fiber Cable
12/31/01 Fiber Cable
01/18/02 Globix
09/27/01 Golden Nugget Restaurant
10/31/01 Jo -Ann Etc.
10/31/01 Minute Man Press
11/29/01 Whitfield Morris
12/10/01 Whitfield Morris
1 03/26/021 Whitfield Morris
1 04/04/02 Whitfield Morris
1 04/04/02 Whitfield Morris
04/04/02 Whitfield Morris
10/31/01 Saybolt, Inc.
10/31/01 William Shaughnessy Res.
08/06/02 Sylvia's Video Store
07/10/02 'Tukwila Mini Mart
False Alarm Total
02/20/011 Loews Theater Mgmt. Corp
04/02/02 Deborah A. Williams
04/30/02 Christine George Foster
1 05/29/02 Jedd Wesley Tomlinson
ATTACHMENT A as of 10/13/03
MISCELLANEOUS'"
1 R11242 I
1
I R07166 I
R11229
R12269
M -0214
M -0714
M -0303
M -1222
R04093
R04099
R05116
M -0216
M -0218
R05126
M -0716
R08182
R11230
R12279
R01018
R05121
R02049
R11235
M -1017
R01008
General 40.00
General 1 M-0902
0902 355.46
General 17.00
General 40.00
General 40.00
General 198.99
General 443.18
Water 5,515.12
General 1,045.68
General 40.00
General 40.00
General 40.00
General 850.99
General I 1,923.19
General 30.00
General 179.10
General 40.00
General 40.00
General 40.00
General I 40.00
General 40.00
General 40.00
General 40.00
General I, 461.50
General 14.50
11,554.71
FALSE ALARMS
General F -0414 1 25.00
General F -0415 25.00
General F -1016 J 25.00
General F12127 1 25.00
General F -1027 25.00
General F -0929 25.00
General F -1039 25.00
General F -1050 25.00
General F -1136 25.00
General F -1256 25.00
General I F -0321 I 25.00
General I F -0433 I 25.00
General 1 F -0434 25.00
General F -0435
General F -1063
General F -1067
General F -0867
General F -0760
RETURNED CHECKS
Finance I 201973 1 6,710.30
TCC I 589 I 27.00
Golf I 1470 I 25.00
Golf L 1251 I 25.00
rage 1
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
'To Evergreen Prof.
1To Evergreen Prof.
ITo Evergreen Prof.
ITo Evergreen Prof.
ITo Evergreen Prof.
ITo Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
Restitution thru Pro
Write off per ARD
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
Fire Dept shows as
To Evergreen Prof.
Payment in dispute
To Evergreen Prof.
ITo Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
To Evergreen Prof.
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
s Atty Office
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
vacant lot
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
25.00 1 To Evergreen Prof. Recoveries
25.00 1 To Evergreen Prof. Recoveries
25.00 I'To Evergreen Prof. Recoveries
25.00 1 ITo Evergreen Prof. Recoveries
25.00 I ITo Evergreen Prof. Recoveries
450.00
Bankruptcy filed 02/15/01
To Evergreen Prof. Recoveries
To Evergreen Prof. Recoveries
To Evergreen Prof. Recoveries
07/16/021 IChrepMaung
07/22/02 Oregon Mutual Insurance Co.
08/14/02 Tiffany D. Hicks
Returned Check Total
WRITE -OFF GRAND TOTAL
wroff03
ATTACHMENT A as of 10/13/03
TCC
Police
TCC
1077 I 64.00 1 ITo Evergreen Prof. Recoveries
D615637 I 4.00 IToo small for collection
1548 114.00 ITo Evergreen Prof. Recoveries
6,969.30
18,974.01
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