HomeMy WebLinkAboutFIN 2019-09-23 Item 2A - Resolution - 2019 Cancellation of Abandoned or Unclaimed PropertyCity of Tukwila
FO
ATI� AL E
TO: Finance Committee
FROM: Vicky Carlsen, Finance Director
BY: Cindy Wilkins — Fiscal Specialist
CC: Mayor Ekberg
DATE: September 23, 2019
SUBJECT: Cancellation of Accounts Receivable
a
DU
Allan Ekberg, Mayor
ISSUE
Each year a resolution comes before the Council for the cancellation of uncollectable accounts
receivable. For 2019, these items include: False Alarms equaling $2,350.00, Miscellaneous
Billings equals $50,840.56 for a grand total of $53,190.56.
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.
DISCUSSION
The proposed amount of the 2019 Cancellation of Accounts Receivable is $53,190.56. This is
an annual housekeeping item.
FINANCIAL IMPACT
The financial impact of cancelling $53,190.56 will be to reduce our accounts receivable balance
by this amount. 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
1
INFORMATIONAL MEMO
Page 2
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
10/7/19.
ATTACHMENTS
Attachment A — 2019 AR Write -Offs 2017 and Prior
2
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, ORDERING
THE CANCELLATION OF PAST DUE ACCOUNTS
RECEIVABLES.
WHEREAS, certain receivables and checks have been deemed uncollectable 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. The total of $53,190.56 (per Attachment A)
is deemed uncollectable.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2019.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Kathy Hougardy, 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: 2019 AR Write -Offs 2017 and Prior
W:\Legislative Development\Past Due Accts Receivables 9-9-19
CW:bjs Review and analysis by Barbara Saxton Page 1 of 1
3
4
2019 AR Write -Offs 2017 and Prior
Gust No
Name
Inv
Inv Date
Due Date
Descriptioin
Billed
Paid
Balance
AARBRO
AARON BROTHERS
PF-036
12/21/17
01/20/18
POLICE FALSE ALARMS
C 150.00
0.00
150.00
ARAMAR
ARAMARK
PF-03477
08/28/17
09/27/17
FALSE ALARM 3
C 150,00
0.00
150.00
FOSGRN
FOSTER GREENS APARTMENT
PF-0 639
12/1 7
01117/18
POLICE FALSE ALARMS
C 150.00
0,00
150.00
HAAKE
HAAKENSON GROUP
PF-03670
12/18/17
01117/18
POLICE FALSE ALARMS
C 200.00'
0,00
200 00
HAAKEN
HAAKENSON GROUP
PF-03655
12/18/17
01/'i7/18
POLICE FALSE ALARMS
C 150,00
0.00
150.00
HOMELA
HOMELAND SECURITY
PF-0 67
12/18f17
01117/18
POLICE FALSE ALARMS
150.00
0.00
150.00
HOMELA
HOMELAND SECURITY
PF-0 76
12/18/17
01/17f18
POLICE FALSE ALARMS
200,00
0.00
200.00
HOMELA
HOMELAND SECURITY
PF-03605
12/18/17
01t17/18
POLICE FALSE ALARMS
200.00
0.00
200.00
HOMELA
HOMELAND SECURITY
PF-03617
12/18/17
01/17/18
POLICE FALSE ALARMS
200.00
0.00
200.00
HOMELA
HOMELAND SECURITY
PF-03671
12/18/17
01/17/18
POLICE FALSE ALARMS
200.00
0.00
200b00
HOMELA
HOMELAND SECURITY
PF-03690
12/2 7
01/20/18
POLICE FALSE ALARMS
200.00
0.00
200.00
VECSEC
FOR SLEEP NUMBER VECTOR
PF-03555
12/18/17
01/17/18
POLICE FALSE ALARMS
C 200.00
0.00
200.00
VECSEC
FOR SLEEP NUMBER VECTOR
PF-03643
12/18/17
01117/18
POLICE FALSE ALARMS
C 200.00
0.00
200.00
KMITCH
KRISHNA MITCHELL
MB-02496
03/17/17
04/16/17
P 16-0139
C 3;351.76
0,00
3,351.76
MANTUI
DIDIER L. MANTUILA
MB-02732
12/29t17
01/28/18
WORK ORDER 21701611
C 7.2 6.03
800,00
6,406.03
MCKEE
BRUDE MCKEE
MB-02380
1 i/23/i6
12/23/16
REPLACE STREETLIGHT POLE
C 0,057,59
0.00
6,057.59
MOHAMA
MOHAMEDSALAH ALI
MB-0264
07/26/ 7
08/2=8/17
WORK ORDER 21701603
C 2.241.17
0.00
2,241.17
PORTER
TYRES S PORTER
MB-02 43
04/2 7
05/25/17
WORK ORDER 216016/6
C 3,476.85
0.00
3,476.8
SINGHG
GURSHARAN SINGH
MB-02 24
09/16/16
10/16/16
CRYSTAL PRINGS PARK GUARDRAI
C 10,483,14
0.00
10,483.14
BISHOP
CHRISTOPHER L. BISHOP
MB-02731
12/29/17
01/28/18
WORK ORDER 21 701609
C 15,8J0.02
0.00
15,890.02
FIDNAT
FIDELITY NATIONAL TITLE
MB 01454
12/31/13
01/30/14
REVISED BILL -REP MB-01348
C 2,934.00
0.00
2,934.00
53,190.56
2,350.00
50,840.56
5