HomeMy WebLinkAboutCOW 2010-10-11 Item 3C - Resolution - Authorizing Cancellation of Past Due Accounts Receivable and Returned Check Write-Offs C O UNCIL AGENDA S�'vo sIS
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ITEM INFORMATION
1 CAS NUMBER: 10-113 I ORIGINAL AGENDA DATE: OCTOBER 11, 2010
AG END ITEM TITLE A Resolution ordering cancellation of Past Due Accounts Receivable and Returned
Check Write -offs.
CA I'1?GORY Discussion 1 1 Motion Resolution Ordinance Bid Award 1 1 Public Hearing 1 1 Other
Mtg Date 10/11/10 Mtg Date Mtg Date 10/18/10 Mtg Date Mtg Date Mtg Date Mtg Date
(SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police 1 1 PW
SPONSOR'S There are certain receivables that have been deemed uncollectible and need to be
SUMMARY removed from the Accounts Receivable Ledger. The Council is being asked to consider
and approve the resolution.
RI,\'IJ.WI?D BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte P1 Arts Comm. Parks Comm. Planning Comm.
DATE: 10/05/10
RECOMMENDATIONS:
SPONSOR /ADMIN. FINANCE DEPARTMENT
COMMITTEE unanimous approval
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$N /A $N /A $N /A
Fund Source: N/A
Comments:
I MTG. DATE I RECORD OF COUNCIL ACTION
I 10/11/10 I
I
MTG. DATE I ATTACHMENTS
I 10/11/10 Informational Memorandum dated September 30, 2010
Resolution in draft form. with Attachment A
10/18/10 I
I I
35
36
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/I3 City of Tukwila
:11 1 GI Jim Haggerton, Mayor
1�� s/
9O INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM Shawn Hunstock, Finance Director
DATE: September 30, 2010
SUBJECT: Cancellation of Accounts Receivable
ISSUE
The cancellation of uncollectible accounts receivable totaling $56,683.18 These items include:
False Alarms $1,075.00, Miscellaneous Billings $51,936.75 and NSF Checks $3,671.43. The
items listed have been through the City's collection program or are party to bankruptcy and have
not been successfully resolved.
BACKGROUND
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.
DISCUSSION
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.
RECOMMENDATION
The Council is being asked to consider this item at the October 11, 2010 Committee of the
Whole meeting and subsequent October 18, 2010 Regular meeting
ATTACHMENTS
Draft Resolution, with attachment A
37
DRAFT
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 $56,683 18
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 2010
ATTEST/ AUTHENTICATED:
Dennis Robertson, Council President
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council.
Office of the City Attorney Resolution Number:
Attaclunent: "Attachment A" Past -Due Accounts Receivable and Returned Check Write -offs
as of September 30, 2010
W\Word Processing\ Resolutions\ 1696 Write Offs.doc
LA:mrh 09/29/2010 Page 1 of 1
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Attachment A Past Due Accounts Receivable and Returned Check Write -offs as of September 30, 2010
.MISCELLANEOUS
Invoice Date Customer 1 I Fund I I Invoice No. 1 Amount 1 For I I Notes
03/26/08 'Abovenet Inc 1 General 1' RF -00201 1 1 60.00 Ireinspection fee ITo EPR 9/3/10
1 Second notice sent -just coming out of
09/03/08 I Alert Cellular General RF00257 60 00 reinspection fee bankruptcy
i I
12/16/07 l Barmore Personnel I General RF -00156 60.00 reinspection fee Second notice sent customer refuses to pay
05/16/07 ,Best Buy I General RF -00056 I 60 00 1 Ireinspection fee To EPR 10/7/08
05/30/07 I (Best Buy 1 I General RF -00067 I 85.00 Ireinspection fee 1 To EPR 10/7/08
01/28/09 I Blockbuster Video 1 1 General RF -00293 1 60.00 Ireinspection fee IBankrupt
05/23/08 (Blue Nile Coffee Shop 1 General RF -00220 1 60.00 Ireinspection fee 1 ITo EPR 9/3/10
12/31/07 1 (Kenneth Bohannon I i General MB -00170 1 3.848.35 'jersey barrier damage I ITo EPR 10 /7 /08- failed to appear in court
12/10/07 Buckle 1 General RF -00160 60.00 Ireinspection fee 1 ITo EPR 9/3/10
01/31/08 I !Buckle 1 General RF -00188 60.00 Ireinspection fee 1 ITo EPR 9/3/10
09/12/08 :Buckle 1 General RF00262 1 85.00 _I reinspection fee I To EPR 9 /3/10
09/12/08 i ICharacter Corner 1 General RF -00261 1 60.00 Ireinspection fee lout of business per City Clerk's office
12/10/07 _'Computer Sonics 1 General RF- 00159 1 60.00 Ireinspection fee ISecond notice sent
08/05/08 1_ Cost Plus 1 General RF -00250 I 60 00 reinspection fee ITo EPR 9/3/10
05/21/08 1 Denny's Restaurant I General RF -00218 1 60.00 reinspection fee 1 ITo EPR 9/3/10
11/09/07 1 !Phi Duc Dinh 1 General M -00127 1 5,000.00 'signal pole damage 'remainder after WCIA payment
05/09/07 East African Bazaar General RF -00047 60.00 I reinspection fee To EPR 8/10/07
04/15/08 1 Emerald Green General RF -00204 60.00 I reinspection fee 1 To EPR 9/3/10
08/14/07 i Express Men 1 General RF -00107 1 60.00 Ireinspection fee 1 ITo EPR 9/3/10
07/11/07 1'Extended Stay America 1 General RF00091 1 60.00 Ireinspection fee 1'Bankrupt
04/04/07 i'Family Trust Investments General RF -00032 60.00 Ireinspection fee 1 ITo EPR 8/10/07
05/09/07 1 'Fresh Produce General RF00048 1 60.00 1 reinspection fee 1 I Second notice sent
06/21/07 1'Fresh Produce 1 General RF00085 1 1 85.00 Ireinspection fee ISecond notice sent
Gametowne Family Fun
12/06/07 Center General RF -00157 60.00 reinspection fee Second notice sent
03/06/08 1'Good Clips 1 1 General RF -00196 1 60.00 1 Ireinspection fee 1 Second notice sent
05/13/08 !Good Clips 1 1 General 1 RF -00215 1 85.00 1 Ireinspection fee 1'Second notice sent
01/24/08 iHome Furniture USA 1 1 General I RF -00176 1 60.00 1 Ireinspection fee Second notice sent
05/30/07 1 !JR Furniture General 1 RF -00068 1 85.00 1 Ireinspection fee To EPR 9/10/10
10/15/07 1Just Futons General 1 RF -00136 1 85.00 I Ireinspection fee ISecond notice sent -new owners
12/31/07 'Robert Knight Water 1 MB -00121 1,412.44 ('damage to fire hydrant ISecond notice sent -To EPR 9/10/10
12/10/07 i ;Lane Bryant General RF -00162 60.00 1 Ireinspection fee 1'Second notice sent
05/13/08 ,'Lids 1 General RF-00210 60.00 1 Ireinspection fee 1 ITo EPR 9/10/10
09/12/08 !The Maytag Store 1 General 1 RF -00264 1 60.00 Ireinspection fee 1 lout of business
06/04/07 IMizu Steakhouse I General 1 1 RF -00070 1 60.00 Ireinspection fee 1'Second notice sent
09/11/07 1'Mobile Solutions 1 General 1 I RF -00151 1 60.00 1 Ireinspection fee 1'Second notice sent
06/25/08 1 !New York Company 1 General I 1 RF -00228 1 60.00 1 Ireinspection fee ISecond notice sent -To EPR 9/10/10
streetlight pole guardrail Amount remaining after insurance final
01/02/10 1 !Kassim Omar General MB -00449 1,226.89 damage payment
07/24/08 !'Pacific Rim Environmental 1 General RF -00235 60 00 1 Ireinspection fee 1 ISecond notice sent -To EPR 9/10/10
07/01/08 1 LPetsmart, Inc. General RF -00232 60.00 I Ireinspection fee 1 'Second notice sent -To EPR 9/10/10
07/24/08 I IPitnev Bowes General RF -00240 1 60 00 I Ireinspection fee 'Second notice sent -To EPR 9/10/10
01/07/09 ;'Pure Medspa General RF -00281 1 60.00 1 Ireinspection fee IBankrupt
11/29/06 1Qdoba General CD -00272 1 60.00 1 Ireinspection fee ISecond notice sent
05/21/08 i_!Seasons Apartments General RF -00217 60.00 1 Ireinspection fee 1 ISecond notice sent -To EPR 9/10/10
08/05/08 .Seattle Team Shop General RF -00252 60.00 I Ireinspection fee 1'Second notice sent -To EPR 9/10/10
09/13/07 (Seven Eleven Food Store General RF -00120 1 60.00 1 Ireinspection fee 1'Second notice sent
09/24/07 !'Shoe Pavilion 1 General RF -00128 1 60.00 Ireinspection fee 1 lout of business per City Clerk's office
06/04/07 'Simply Thai 1 General RF -00071 1 60.00 Ireinspection fee 1 Second notice sent
07/11/07 'Simply Thai 1 General RF -00100 1 85.00 Ireinspection fee 1 ISecond notice sent
12/31/07_ ;Tyler Smith- Twiggs 1 General MB -00167 1 I 2,934.09 1'guardrail damage 1 ITo EPR 9/29/08 -never responded to court
I Southcenter Village
11/05/07 'Apartments General RF -00169 60.00 reinspection fee Second notice sent
05/09/07 1 ISSK LLC 1 1 General 1 RF -00049 1 1 60.00 1 Ireinspection fee 1 Second notice sent -To EPR 9/10/10
05/16/07 I ISSK LLC i I General RF -00057 I 1 85.00 1 Ireinspection fee 1 Second notice sent -To EPR 9/10/10
0 ISSK LLC I 1 General 1 RF -00111 1 110.00 1 Ireinspection fee 1 Second notice sent -To EPR 9/10/10
streetlight pole base
12/31/2008 I ;Lovell Sykes General MB -00329 8,216.69 I damage Second notice sent -in prison
9/6/2007 1 iT Design General I I RF -00114 1 60.00 1 Ireinspection fee 1 ISecond notice sent
7/20/2007 !Traverse Bay Confections 1 I General 1 1 RF -00101 1 60.00 1 Ireinspection fee 1'Second notice sent -To EPR 9/10/10
1 II
8/5/2008 1 Universal Hospital Services I General RF -00254 60 00 reinspection fee 1 ISecond notice sent
5/23/2007 .UPS Supply Chain Solutions General RF -00065 I 85.00 reinspection fee ISecond notice sent -To EPR 8/24/07
1 1 ITo EPR 9 /29 /08- started making pymts then
12 /31 /20071'Shanteal Valteau 1 General MB -00171 1 1,329.59 !guardrail damage IQuit
3/8/2007 !Viewcrest Apartments 1 General 1 RF -00027 1 1 60.00 1 Ireinspection fee Second notice sent
9/12/2008 IThe Walking Company 1 General 1 RF -00260 1 60.00 1 Ireinspection fee I Bankrupt
out of business 3/28/08 per City Clerk's
9/11/2007 'Watch World General RF -00117 60.00 Ireinspection fee office
Attachment A as of 09.30.10.x!s 1 9/29/2010
39
Attachment A Past Due Accounts Receivable and Returned Check Write -offs as of September 30, 2010
1 1 out of business 3/28/08 per City Clerk's
it
10/31/2007 I World General RF -00140 85.00 reinspection fee /office
I Mall OT inspections by
3/6/2009 !Westfield Shoopingtowne General RF -00339 24,248.70 I DCD and Fire approved by City Administration
'Wilsons The Leather
1/24/2008 !Experts inspection fee Bankrupt
i' Ge RF -00183 60.00 re Miscellaneous billing total 11 1 1 1$ 51.936.75 1 1
g'. :.q f'' FALSEALARMS.,'w 4 Jr' _,r"* ='x:' 7
Invoice Date 1 I h Customer I I i9( .3 Fund 11 Invoice No. 1 1 Amount 11 For 1 1 Notes
12/30/09 IILeslie Abarrotes General PF -01225 25.00 I false alarm lout of business per City Clerk's office
07/01/08 ADT General FF -00049 50.00 false alarm i To EPR 9/3/10
12/31/07 1 EZ Rent.com General PF -00496 25.00 false alarm ITo EPR 9/3/10
08/20/07 1'Furniture City General PF -00126 25.00 1 false alarm ISecond notice
10/23/07 l 'Furniture City General PF -00265 25.00 false alarm 'Second notice
10/23/07 !Furniture City General PF -00264 25.00 false alarm ISecond notice
12/27/07 !Furniture City General PF -00422 25.00 false alarm ISecond notice
12/31/07 City General PF -00498 25.00 false alarm ISecond notice
12/31/07 Wireless General PF -00499 25.00 false alarm rlSecond notice
11/14/07 IHave a Nice Dav Jewelry Plus! General PF -00361 25.00 false alarm ISecond notice
11/14/07 IHave a Nice Day Jewelry Plusl General PF -00362 25.00 false alarm ISecond notice
12/27/07 I IHave a Nice Dav Jewelry Plus' General PF -00426 25.00 1 false alarm ISecond notice
10/23/07 'Homeland Security 1 I General PF -00276 25.00 false alarm I In dispute
10/23/07 'Homeland Security 1 1 General PF -00277 25.00 false alarm 1 IIn dispute
10/23/07 'Homeland Security 1 I General PF -00278 25.00 false alarm I I In dispute
12/31/07 I I Ifloor.com 1 General PF -00509 25.00 false alarm 1 ITo EPR 9/10/10
08/20/07 !'Innovative Marketing 1 General PF -00135 25.00 false alarm 1 ITo EPR 9/10/10
08/20/07 'Interstate Protection Services 1 General PF -00136 25.00 false alarm I ITo EPR 9/10/10
10/23/07 Interstate Protection Services General PF -00282 25.00 false alarm 1 ITo EPR 9/10/10
08/04/09 I .International Jewelers 1 General PF -01123 25.00 false alarm 1'Bankrupt
11/14/07 I I Sold of Washington 1 General PF -00364 25.00 false alarm 1 ISecond notice
12/27/07 I Sold of Washington 1 General PF -00428 25.00 false alarm 1 ISecond notice
12/27/07 1 ;Liberty Mutual 1 General PF -00434 25.00 false alarm 1 ITo EPR 9/10/10
12/31/07 ILibertv Mutual I General PF -00512 25.00 1 false alarm To EPR 9/10/10
12/31/06 I !Marshall's General CD -00034 25.00 false alarm 1_I To EPR 9/26/07
10/23/07 r I Maytag Store General PF -00299 25.00 'false alarm 1 Second notice sent -out of business
10/23/07 !'Medina Restaurant I General PF -00302 25.00 'false alarm 1 Second notice sent
12/27/07 !Michael's Deli Mart i General PF -00440 25.00 'false alarm I ISecond notice sent
12/27/07 1'Modern Art Furniture General PF -00442 25.00 'false alarm ISecond notice sent -mail returned
12/31/07 !Northwest Carpet General PF -00517 25.00 'false alarm 1 ISecond notice sent
10/23/07 I 'Riverton Crest Cemetery General PF -00326 25.00 'false alarm 1 ISecond notice sent
10/23/07 I ITawakal Grocery Store General PF -00333 25.00 'false alarm 1 ISecond notice sent
10/23/07 1 Tawakal Grocery Store General PF -00334 25.00 'false alarm 1 ISecond notice sent
5/10/2007' IT Mobile Kiosk General PF -0319 25.00 'false alarm 1 ITo EPR 8/30/07
11/14/20071 !Tukwila Home Fashion General PF -00390 25.00 false alarm 1 ISecond notice sent
12/27/20071 'Tukwila Home Fashion General PF -00478 25.00 false alarm 1 ISecond notice sent
12/27/20071 !Tukwila Home Fashion General PF -00479 25.00 !false alarm 1 ISecond notice sent
8/23/20071 J'US Postal Service General PF -00228 25.00L(false alarm Second notice sent -in dispute
8/23/2007 IUS Postal Service General PF -00229 25.00 1 /false alarm 1 Second notice sent -in dispute
8/23/20071 IUS Postal Service General PF -00230 25.00 1'false alarm 1 ISecond notice sent -in dispute
8/23/20071 IUS Postal Service General PF -00231 I 25.00 1 (false alarm 1 ISecond notice sent -in dispute
_9/14/20071 IUS Postal Service General PF -00391 1 25.00 1'false alarm 1 I In dispute
1 IFalse Alarms Total I 1 1 1 1$ 1.075.00 I I
k!vr to n. °.sue r. i 0 �4,-'i i �5:.'' 4: IiWf,'� x t A
:�s���d� �RETUR1�fEfJ"tGFfECKB'' _,.:mss r �,...�Y
Return Date I I Customer 1 1 Fund 1 1 Check No. 1 1 Amount 1 I For 1 I Notes
10/29/08 IDebra Harris 1 I General 1 I 1463 1 1 90.00 1'Daycare (TCC) 1 ITo EPR 1/21/09
12/23/08 Jordan 1' General I' 1510 1 1 126.13 1'Mechanical Permit (DCD) 1 ITo EPR 2/16/09
02/13/09 I IWanna Arkanit 1 I General 1' 2443 1 40.00 1'Swim Lessons (Pool) 1 1To EPR 2/13/09
02/25/09 1 !Michael Lechasseur I I General I I 145 3.067.30 1 'Plan review (DCD) 1 To EPR 5/6/10- needed legal opinion first
08/03/09 1 !William Conrad Halliday 1 I Golf I I 1161 35.00 1'Greens fees 1 To EPR 9/1/09
I Camp Tukwilly Teen
08/17/09 ;Brian Adams General 2735 190.00 Camp (TCC) To EPR 10/18/09
08/18/09 (Shawn Mason I 1 General I 1 5830 1 1 120.00 I !Adventure Camp (TCC) ITo EPR 9/20/09
09/25/09 I ILaw Office of Dean D. Nguyen) General 1 1 4733 1 1 3.00 1 I Photocopies (TPD) 1 /Too small for collections
I Returned Check Total 1 1 1 1 1 1$ 3,671.43 1 I 1 I
I1 11 11 11 11 11
Write -off Grand Total 1 1 1 I l 56,683.18 1 1 1
Attachment A as of 09.30.10.xls 2 9/29/2010
40
Westfield Mall Special Inspection Fees
Dates Description Amount
06/21/2006 Deposit from Westfield Mall 25,000.00
Department of Community Development
6/1/08- 7/28/08 Inspection overtime costs 8,274 36
06/21/2008 Sound Inspections Invoice 20071087 -A 420 00
07/11/2008 Sound Inspections Invoice 20071087 -B 8,785 00
07/25/2008 Sound Inspections Invoice 20071087 -C 27,571.25
36, 776.25
Total Due Community Development services 45,050.61 45,050 61
Net Due Community Development services 20,050.61
Fire Department
1/1/08- 7/26/08 Inspection overtime costs 48,497.39
Negotiated reduction in fees (24,248 70)
Total Due Fire Department services 24,248 69
TOTAL DUE AS OF FEBRUARY 28, 2010 44,299 30
PAID 04/22/10
41
J
y� City o Tukwila
o
4 4 o Finance and Safety Committee
s ue: 2
140:
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
October 5, 2010 5:00 p.m.; Conference Room #3
PRESENT
Councilmembers: De' Sean Quinn, Chair; Allan Ekberg and Kathy Hougardy
Staff: Shawn Hunstock, Jack Pace, Mike Villa, Peggy McCarthy, Mayor Haggerton, Steve Lancaster
and Kimberly Matej
Guest: Chuck Parrish
CALL TO ORDER: Chair Quinn called the meeting to order at 4:59 p.m.
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 $56,683.18. Staff
reviewed the process by which accounts receivable determines items as uncollectible.
Committee members asked for more clarity on page 7 of the agenda packet regarding special
inspection fees for Westfield Mall. Staff explained that this item and negotiation of reduced fees was
due to a misunderstanding and lack of specificity in a contract between the City and Westfield. This
error is well -noted and will not happen in future contracts. UNANIMOUS APPROVAL.
FORWARD TO OCTOBER 11 COW FOR DISCUSSION.
B. Resolution Opposing Initiatives 1100 and 1105
This item is sponsored by Councilmember Verna Seal, who is unable to attend the meeting to answer
questions regarding the initiatives, as four Councilmembers at the Committee would constitute a quorum.
Councilmember Seal has requested Council consideration of a resolution in opposition to Initiatives 1100
and 1105. Both initiatives concern liquor (beer, wine and spirits), and propose to close state liquor stores
and privatize the sale and distribution of liquor.
Committee members discussed the initiatives among themselves, and asked staff is there was any way to
predict revenue levels that would come to the City if one or both of the initiatives pass. Staff replied that
the revenue information is not currently quantifiable.
Committee Member Hougardy stated that she believes that a resolution of Council opposition to these
initiatives will serve well in representing her constituents. Based on the current state of economy and after
reviewing financial impact statements, Chuck Parrish mentioned that he felt this was not the time to take
on this type of measure and commended the Committee on opposition. Since the writing of the
informational memo, the draft resolution has been reviewed and approved by the City Attorney's office.
UNANIMOUS APPROVAL. FORWARD TO OCTOBER 11 COW FOR DISCUSSION.
C. King County Criminal Justice Sales Tax
Committee Chair Quinn requested this item be put on the Committee agenda for discussion, and possible
recommendation of a Council resolution in support of the tax. He introduced the item and reviewed
information that was included in the Committee packet.
Conversation ensued in detail about the benefits and consequences that implementation of this tax could
42 have on City revenues as well as the Tukwila community. Unfortunately, as required by State law, an