The URL can be used to link to this page

Home My WebLink AboutReg 2019-10-07 Item 5D - Resolution - 2019 Cancellation of Past Due Accounts ReceivableCOUNCIL AGENDA SYNOPSIS -- Meelin,9 Dale Prepared by Ma 1,91-'1- review Council review 10/07/19 VC lir* ITEM INFORMATION ITEMNO, 5.D. S1\iF SPONSOR: VICKY CARLSEN ORIGINALAGLNDAD vit: 10/7/19 AGENDA I LEM TITLE Resolution Ordering the Cancellation of Past Due Accounts Receivable CATEGORY E Discie.won :Ills Dale 7 Motion Mt Dole E Ordinance AllsDate El Bid Award AN Odle E Pub/i Heath A i(e,Dale lij Other AlisDale ri Reolution ANDale 10/7/19 SPONSOR Counci/ llayor Hi I Fla 7 TS Pe-R Po/he LIPIJ7 flCouri IOC IMI Finance SP °Molt' s There are certain accounts receivable that have been deemed uncollectible and need to be SummAity removed from the Accounts Receivable ledger. The Council is being asked to consider and approve the resolution ordering their cancellation. RiNtim A.) BY L C.O.W. 'Aitg. CDN COMM Arts Comm. Finance Comm. Ell Public Safer) Comm. Comm. 7 Planning Cornm. CRAM: MCLEOD — Parks COMMITTEE . Trans &Infrastructure DATE. 9/23/19 RECOMMENDATIONS SPoNsoit/ADmiN COMN11 Finance Department I'll' b Unanimous Approval; Forward to Regular eeting Consent Agenda COST IMPACT / FUND SOURCE ExpIND1 FUR] !, RI ,Q lilltl , I AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/7/19 MTG. DATE ATTACHMENTS 10/7/19 Informational Memorandum (updated after 9/ 23 Finance Committee) Resolution in final form with Attachment A 2019 AR Write -Offs 2017 and Prior Minutes from the Finance Committee meeting of 9/23/19 ,-,-, 38 City of of« u w««a �� n m� �� Allan Ekberg, Mayor TO: Finance Committee FROM: Vicky Cadsen'Finance Director BY: Cindy VVi|kins— Fiscal Specialist CC: Mayor Ekberg DATE: September 23,201S SUBJECT: Cancellation ofAccounts Receivable (Updated after the Finance Committee Meeting onSeptember 23'2O19) 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\840.50 for 8 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. *|00ice is sent tothe recipient by the Finance Department payable in30days. * If payment is not received within 30 days, the receivable is forwarded to our collection agency, AJOn8dg Corp.. and placed into pre -collect status. • At this time, Armada sends a Delinquency Notice to debtor notifying them of the past -due status ofthe receivable and asks them tOcontact the City tomake payment. Payments can still be made directly tOthe 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 on||eCt|ons' 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 StatUa, debtor is contacted both by phone and letter. /\ search is made for assets with which the debt could be satisfied. Once the debt has been in active collections fOr45 days, itiSthen 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 8 hUSihasG license until all outstanding debt owed tothe City is paid. * |tshould benoted that while adebt may bewritten off our books: itis still active in Armada's collection process. DISCUSSION The proposed amount Ofthe 2O1SCancellation ofAccounts Receivable iS$531gO.5O.This ks gOannual housekeeping item. FINANCIAL IMPACT The financial impact ofcancelling $58,19O,55will be toreduce our accounts receivable balance bythis amount. Please note that while VVeare writing off the accounts receivable for accounting 39 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 1O/7/1S. ATTACHMENTS 40 Historical Write -Offs Resolution l777 ZOlZ $ 8,77789 Reso|utionl8D5 13 $ 30707.97 Resolution 1843 2014 $ 36,240.62 Ruso|ution1O6S ZAIS $ 27,887.91 Resn|ution189S 2016 $ 47,680.46 Rean|utionI9l6 2017 $ 9,005.25 Re -solution 1948 2013 $ 12,8]2.]5 zo19Cancellation mAccounts Receivables Finance Committee oo231n 41 42 Washington Resolution No. 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 43 44 ..., — ..... Gust No ..— —..... — .. .......... . Name Inv Inv Date Due Date Descriptioin Billed Paid Balance AARBRO AARON BROTHERS PF-03691 12/21/17 01/20/ 8 POLICE FALSE ALARMS C 150.00 0 00 150,00 ARAMAR ARAMARK PF-03477 08/28/17 09/27%17 FALSE ALARM 43 C 150.00 0,00 150.00 FOSGRN FOSTER GREENS APARTMENO PF-03 3 12/18/17 01/17/18 POLICE FALSE ALARMS 150.00 0 00 150.00 HAAKE HAAKENSON GROUP PF-03670 12/18/17 01/17/18 POLICE FALSE ALARMS 200.00 0,00 200.00 HAAKEN HAAKENSON GROUP PF-03655 12/18/17 01/17/1 POLICE FALSE ALARMS C 150 00 0.00 .00 HOMELA HOMELAND SECURITY PF-03567 12/18/17 01/17/18 POLICE FALSE ALARMS 150,00 0.00 150.00 HOMELA HOMELAND SECURITY PF-03576 12/18/17 01/17/18 POLICE FALSE ALARMS 200.00 0 0 200.00 HOMELA HOMELAND SECURITY PF-03605 12/18/17 01/17/18 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 0.00 200.00 HOMELA HOMELAND SECURITY PF-03690 12/21/17 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 01/17/18 POLICE FALSE ALARMS C 200 00 0.00 200,00 KMITCH KRISHNA MITCHELL MB.02496 03/17/17 04/16/17 P1V16-0139 - 3,351.76 0 00 3,351,76 MANTU1 DIDIER L. MANTUILA MB-02732 12/29/17 0 I '25/18 WORK ORDER 21701611 C 7,206 03 800 00 6.406.03 MCKEE BRUDE MCKEE MB-02380 11/23/16 12/23/16 REPLACE STREETLIGHT POLE ' 6 057 59 0 00 6,057.59 MOHAMA MOHAMEDSALAH ALI MB-02640 07/26/17 08/25/17 WORK ORDER 21701603 C 2,241,17 0.00 2,241.17 PORTER TYREE S PORTER MB-02543 04/25/17 05125'17 WORK ORDER 21601616 3.476 85 0 00 3476,85 SINGHG GURSHARAN SINGH MB-02324 09/16/16 10116716 CRYSTAL SPRINGS PARK GUARDRA1 C 10 483 14 0 00 10,483.14 BISHOP CHRISTOPHER L. BISHOP MB-02731 12/29/17 01/23/18 WORK ORDER 21701609 15.890 02 0.00 15,890.02 FIDNAT FIDELITY NATIONAL TITLE mE3-01454 12/31/13 01/30/14 REVISED BILL -RERL MB-01348 C 2,934 00 0,00 2,934,00 53,190.56 2,350.001 50,840.56 45 46 City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes September 23, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn Staff: David Cline, Vicky Carlsen, Jay Wittwer, Bruce Linton, Juan Padilla, Erika Eddins, Wynetta Bivens, Gail Labanara, Aaron Williams, Henry Hash, Trish Kinlow, Tony Cutlerton, Jeff Friend, Laurel Humphrey CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Resolution: Cancellation of Uncollectable Accounts Staff is seeking Council approval of the annual resolution that would declare the cancellation of uncollectible accounts receivable. The total for this year includes Police Department false alarm fees equaling $2,350.00 and miscellaneous billings equaling $50,840.56 for a total of $53,190.56. This is an accounting practice that will reduce the accounts receivable balance but these accounts are still being actively worked for collection, except for those accounts where a responsible party cannot be identified or accounts covered by bankruptcy law. Chair McLeod asked that the memo be updated to include historical data for the past few years. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 7, 2019 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, 2019. This year's report includes the cancellation of outstanding claims in the total amount of $10,150.18. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 7, 2019 REGULAR CONSENT AGENDA. C. 2019 2nd Quarter Financial Report Staff presented a summary of the 2019 2nd Quarter financial report, including budget variances, sales and property tax and other revenues, expenditures, departments, fund balance, special revenue funds, capital projects, enterprise funds, and internal service funds. Through June 30, 2019, General Fund revenues exceed expenditures by $617 thousand. General Fund revenues were $178 thousand over allocated budget and expenditures were under allocated budget by $156 thousand. 47