HomeMy WebLinkAboutReg 2017-10-16 Item 5B - Resolution - Cancellation of Past Due Accounts Receivable and Returned Check Write-OffsCOUNCIL AGENDA SYNOPSIS
1 nitials
Meeting Date
Prepared by
AI ;or review
Council review
10/16/17
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ITEM INFORMATION
ITEM No.
5.B.
11
STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 10/16/17
AGENDA I°n i TITLE Resolution Ordering the Cancellation of Past Due Accounts Receivable
CATEGORY [( Discussion
Mtg Date
❑ Motion
Mtg Date
® Resolution
Mtg Date 10/16/17
— Ordinance
Mtg Date
❑ Bid Award
Mtg Date
(- Public [leaning
Mtg Date
❑ Other
Mtg Date
SPONSOR [—Council
HR EDCD ®Finance ❑Fire ❑TS P&R ❑Police❑P11'7. ❑Court
•Mayor
SPONSOR'S There are certain accounts receivable and returned checks that have been deemed
SUM\1ARY uncollectible and need to be removed from the Accounts Receivable ledger. The Council is
being asked to consider and approve the resolution ordering their cancellation.
REVIEWED BY (l C.O.W. Mtg. ❑ CDN Comm
C Trans &Infrastructure C Arts Comm.
DATE: 10/03/17
►1 Finance
Comm. ❑ Public Safety Comm.
Comm. E Planning Comm.
CHAIR: SEAL
r- Parks
COMMITTEE
RECOMMENDATIONS:
SPONsoR/ADMIN•
COMMrr
Finance Department
r]HT Unanimous Approval; Forward to Regular Meeting Consent Agenda
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/16/17
MTG. DATE
ATTACHMENTS
10/16/17
Informational Memorandumdated 9/25/17
Resolution in final form with Attachment A
Minutes from the Finance Committee meeting of 10/3/17
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
BY: Laurie Anderson, Fiscal Specialist
CC: Mayor Ekberg
DATE: September 25, 2017
SUBJECT: Cancellation of Accounts Receivable
ISSUE
Each year a resolution comes before the Council for the cancellation of uncollectible accounts
receivable. For 2017, these items include: False Alarms equaling $4,750.00, Miscellaneous
Billings equaling $4,224.76 and returned checks equaling $ 30.49 for a grand total of $9005.25.
BACKGROUND
The process for tracking accounts receivable is quite thorough. The steps below are followed
prior to preparation of the attached write-off resolution.
• Invoice is sent to the recipient by the Finance Department payable in 30 days.
• If payment is not received within 30 days, the receivable is forwarded to our collection
agency, Armada Corp., and placed into pre -collect status.
• At this time, Armada sends a Delinquency Notice to debtor notifying them of the past -due
status of the receivable and asks them to contact the City to make payment. Payments
can still be made directly to the City while in pre -collect status.
• Once 30 days has passed in pre -collect status, the receivable then rolls over to active
collections. At the onset of active collections, a letter is sent to the debtor notifying them
of status change and advising that all payments must now be made through the
collection agency.
• When in active collections status, debtor is contacted both by phone and letter. A search is
made for assets with which the debt could be satisfied. Once the debt has been in active
collections for 45 days, it is then reported to the national credit bureaus.
• The last process in the collections cycle is the pursuit of legal action. This includes
attaching checking accounts, garnishments and lawsuits.
• The City will not issue or renew a business license until all outstanding debt owed to the
City is paid.
• It should be noted that while a debt may be written off our books: it is still active in
Armada's collection process.
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INFORMATIONAL MEMO
Page 2
DISCUSSION
The proposed amount of the 2017 Cancellation of Accounts Receivable of $9005.25 is
$37,675.21 lower than last year's total of $46,680.46. This is attributable to three main factors:
• This year we are only writing off one street department invoice in the amount of
$498.15. Normally there are multiple street department invoices being written off
with much higher dollar amounts.
• We are still seeing the positive impact of not issuing or renewing a business
license until all past -due debt has been paid to the City.
• We are also still seeing a positive impact of having higher false alarm fees. While
$25.00 and $50.00 fees were often ignored in the past, since the fees have gone
up to $150.00 and $200.00, recipients are paying much more attention to the
invoices we send them and timely payments have increased.
FINANCIAL IMPACT
The financial impact of cancelling $9005.25 will be to reduce our accounts receivable balance
by this amount in keeping with Generally Accepted Accounting Principles (GAAP) for writing off
bad debt. Please note that while we are writing off the accounts receivable for accounting
purposes, the accounts are still being actively worked for collection purposes with the exception
of those accounts where a responsible party cannot be identified. Accounts covered by
bankruptcy law cannot be pursued.
RECOMMENDATION
The Council is being asked to approve the annual resolution authorizing the cancellation of
Accounts Receivable and to forward this item to the Regular Meeting Consent Agenda of
October 16, 2017.
ATTACHMENTS
Draft Resolution with Attachment A.
14 Z:\Council Agenda Items\Finance\10.3 Finance Committee\Info Memo 2017 AR Writeoffs.doc
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
$9,005.25 (per Attachment A) is deemed uncollectible.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
Attachment A — Past -Due Accounts Receivable and Returned Check Write-offs
as of August 31, 2017
W:\Word Processing\Resolutions\Past Due Accts Recv & Write-offs 9-27-17
LA:bjs
Page 1 of 1
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1
Date
05/14/15
12/10/15
12/22/15
12/22/15
05/14/15
05/14/15
12/22/15
11/25/15
12/08/15
12/10/15
12/10/15
12/22/15
12/22/15
12/22/15
12/22/15
12/31/15
12/31/15
03/01/16
03/01/16
04/04/16
04/04/16
06/22/15
06/22/15
06/22/15
06/22/15
Attachment A- Past Due Accounts Receivable and Returned Check Write-offs as 018/ 31 /2017
Customer
East African Bazaar Mini Mall
East African Bazaar Mini Mall
East African Bazaar Mini Mall
East African Bazaar Mini Mall
NW Asia Trading Co., LLC
NW Asia Trading Co., LLC
NW Asia Trading Co., LLC
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
Oriza Jewelers
South General Store
South General Store
South General Store
South General Store
Total False Alarms
Fund # Invoice/Ck #
000 PF -02742
000 PF -02886
000 PF -02930
000 PF -02931
000 PF -02750
000 PF -02751
000 PF -02954
000 PF -02826
000 PF -02865
000 PF -02908
000 PF -02909
000 PF -02955
000 PF -02956
000 PF -02957
000 PF -02958
000 PF -03007
000 PF -03008
000 PF -03046
000 PF -03047
000 PF -03073
000 PF -03074
000 PF -02768
000 PF -02769
000 PF -02770
000 PF -02771
Amount
$ 150.00
$ 200.00
$ 200.00
$ 200.00
$ 150.00
$ 200.00
$ 200.00
$ 150.00
$ 200.00
$ 200.00
$ 200.00
200.00
$ 200.00
$ 200.00
$ 200.00
$ 200.00
200.00
$ I50.00
$ 200.00
$ 200.00
$ 200.00
$ 150.00
$ 200.00
$ 200.00
$ 200.00
S 4,750.00
For
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Mann
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Police False Alarm
Notes
Closed per Business Licensing -unable to locate responsible party
Closed per Business Licensing -unable to locate responsible party
Closed per Business Licensing -unable to locate responsible party
Closed per Business Licensing -unable to locate responsible party
To collections 8/19/15- business closed 04/09/15
To collections 8/19/15- business closed 04/09/15
To collections 8/19/15- business closed 03/21/16
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
"Left Town" July 2016 -unlicensed, unresponsive, in collections
Per collections -refuses to pay -unresponsive to letters and phone calls
Per collections -refuses to pay -unresponsive to letters and phone calls
Per collections -refuses to pay -unresponsive to letters and phone calls
Per collation -refuses to pay -unresponsive to letters and phone calls
Date
03/10/15
04/26/16
05/07/15
12/31/13
12/31/12
03/11/15
07/09/15
01/11/16
Customer
Courtyard at So Station Apts.
Courtyard at So Station Apts.
East African Bazaar
Fidelity National Title
Hertz Equipment Rental
Jacory Jiles
Regalia Jewelers
Regalia Jewelers
Total Misc. Billings
Date Customer
04/08/16 Richard Logo
Total Returned Checks
Write-off Grand Total
Fund # Invoice/Ck #
000 RF -01210 $
000 RF -01330 $
000 RF -01247 $
640 MB -01454 $
401 MB -01217 $
000 MB -01768 $
000 RF -01265 $
000 RF -01292 $
,':111iscielkineous
Amount
110.00
60.00
60.00
2,934.00
417.61
498.15
60.00
85.00
$ 4,224.76
Returned
Amount m
30.49
30.49
Fund # Invoice/Ck #
411 1169 $
S
ti
$ 9,005.25
For
Fire Re -Inspection Fee
Fire Re -Inspection Fee
Fire Re -Inspection Fee
Lien -Financial Assistance Agreement
Water loss & damaged fire hydrant
Provide traffic control for accident
Fire Re -Inspection Fee
Fire Re -Inspection Fee
For
Greens Fees & Candy
Notes
To collections 5/18/15- handled by Cnde Enforcement
To collections 8/14/16- handled by Code Enforcement
To collections 8/19/15- business closed per licensing
Too old for collections -unable to get response from prior customer
To collections 5/23/12 but was working with cutowrer to collect
To collections 8/19/15- no insurance
To collections 9/23/15- business dosed 4/19/17
To collections 3/23/16- business dosed 4/19/17
Notes
Golf was working to collect funds -to collections 9/25/17.
Writeoffs- Attachment A 8-31-17
9/26/2017
City of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
October3, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Acting Chair; Dennis Robertson, Kathy Hougardy
Staff: David Cline, Jay Wittwer, Vicky Carlsen, Gail Labanara, Laurel Humphrey
CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Resolution: Ordering the Cancellation of Past Due Accounts Receivable
*Staff is seeking Council approval of the annual resolution that would declare the cancellation
of uncollectible accounts receivable. The total for this year includes false alarm fees equaling
$4,750.00, miscellaneous billings equaling $4,224.76 and NSF checks equaling $30.49 for a total
of $9,005.25. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 16, 2017 REGULAR CONSENT
AGENDA.
B. Resolution: Cancelling Abandoned or Unclaimed Property
Staff is seeking Council approval of the annual resolution that would declare the cancellation
of abandoned or unclaimed property that is owed to individuals or business owners in time for
reporting to the Washington State Department of Revenue Unclaimed Property Section by
November 1, 2017. This year's report includes the cancellation of outstanding General Fund
claims in the total amount of $3,184.12. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 16,
2017 REGULAR CONSENT AGENDA.
C. 2017 2nd Quarter Sates & Miscellaneous Revenue Report
Staff presented the 2017 2nd Quarter Sales Tax and Miscellaneous Revenue Report, including
details on retail sales tax, gambling tax, and admissions tax revenues with sale tax broken out
by industry classifications. Total sales tax collections for the 2nd quarter were $277K below
those for the same period in 2017. Committee members and staff discussed the decision of the
state legislature to phase out streamlined sales tax mitigation payments. DISCUSSION ONLY.
D. Public Safety Plan Financing
Staff is seeking Committee direction on an approach to identify additional funding needed for
the Public Safety Plan due to cost escalation and market conditions. The financial estimates for
the buildings were developed in 2015 as part of the city's facilities replacement study, and since
then the region has seen unprecedented growth leading to significant increases in land and
construction prices. The City Council will need to identify additional sources of funding for the
Public Safety Plan, and staff is seeking direction on next steps as well as confirmation that the
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