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Home My WebLink AboutReg 2021-10-04 Item 6E - Resolution - Cancellation of Past Due AccountsCOUNCIL AGENDA SYNOPSIS Initials Nleetirzg Date Prepared Ig Mayors review Council review 10/04/21 CW ITEM INFORMATION ITEM No. 6.E. 0I STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 10/04/21 AGENDA ITEM TITLE Resolution Ordering the Cancellation of Past Due Accounts Receivable CATEGORY ❑ Discussion Mtg Date ❑ Motion Meg Date 11 Resolution ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Meg Date ❑ Other Meg Date Mtg Date 10/4/21 SPONSOR Council Mayor HR ❑DCD a Finance Fire TS P&R Police ❑PIF Court SPONSOR'S There are certain accounts receivable 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 ordering their cancellation. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 9/27/2021 11 Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: IDAN ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Finance Department 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 MTG. DATE ATTACHMENTS 10/4/21 Informational Memorandum dated 9/27/2021 Resolution in final form Attachments Attachment A - 2021 Write -Offs 2019 and Prior Minutes from the 9/27 Finance & Governance Committee Meeting 0I 52 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Cindy Wilkins — Fiscal Specialist CC: Mayor Ekberg DATE: September 9/27/2021 SUBJECT: Cancellation of Accounts Receivable Updated after the Finance Committee Meeting on Monday, September 27, 2021 ISSUE Each year a resolution comes before the Council for the cancellation of uncollectable accounts receivable. For 2021, these items include: False Alarms equaling $3,950.00, Miscellaneous Billings equals $1,542.03 for a grand total of $5,492.03. 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 2021 Cancellation of Accounts Receivable is $5,492.03. This is an annual housekeeping item. FINANCIAL IMPACT The financial impact of cancelling $5,492.03 will be to reduce our accounts receivable balance by this amount. Please note that while we are writing off the accounts receivable for accounting 53 INFORMATIONAL MEMO Page 2 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 10/4/2021. ATTACHMENTS Attachment A — 2021 AR Write -Offs 2019 and Prior 54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ORDERING THE CANCELLATION OF PAST DUE ACCOUNTS RECEIVABLE. 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 $5,492.03 (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 , 2021. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Kate Kruller, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment A: 2021 AR Write -Offs 2019 and Prior CC: Legislative Development\Past Due Accts Receivables 9-17-21 CW:bjs Review and analysis by Barbara Saxton Page 1 of 1 55 56 Attachment A - 2021 AR Write -Offs 2019 and Prior Acct Customer Name Date I Invoice # I Billing Description I GL Account Amount TUKSVC 000180 000180 000193 000193 000193 000211 000248 000369 000371 000377 000378 LOWES SIMTH3 SOMALI WWGRAI TUKWILA SERVICE CENTER ELECTRONIC SERVICE PROVIDER IN ELECTRONIC SERVICE PROVIDER IN SEATTLE CHAR LLC SEATTLE CHAR LLC SEATTLE CHAR LLC PETSMART INC #377 LOUIE SANFT SINGH, TARAN DG FOODS AVURE TECHNOLOGIES LAVENDER LAUNDROMAT LLC TRANG T H DAO LOWE'S HOME CENTER LLC #10 SIMPLY THAI SOMGRO INC WW GRAINGER 11/14/18 08/26/19 09/12/19 04/24/19 06/13/19 12/31/19 09/13/19 12/31/19 12/26/19 12/31/19 12/31/19 12/31/19 08/26/19 09/13/19 10/03/19 12/31/19 PD -00192 PF -03930 PF -03951 PF -03890 PF -03905 PF -04018 PF -03961 PF -04000 PF -03997 PF -04001 PF -04026 PF -04028 PF -03937 PF -03965 PF -03991 PF -04017 POLICE FALSE ALARM #5 POLICE FALSE ALARM #3 POLICE FALSE ALARM #4 POLICE FALSE ALARM #3 POLICE FALSE ALARM #4 POLICE FALSE ALARM #5-8 POLICE FALSE ALARM #8-11 POLICE FALSE ALARM #3-6 POLICE FALSE ALARM #5 POLICE FALSE ALARM #3 POLICE FALSE ALARM #3 POLICE FALSE ALARM #3 POLICE FALSE ALARM #4 POLICE FALSE ALARM #3 POLICE FALSE ALARM #3 POLICE FALSE ALARM #3 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 200.00 150.00 200.00 150.00 200.00 800.00 800.00 150.00 200.00 150.00 150.00 150.00 200.00 150.00 150.00 150.00 $ 3,950.00 000262 AV HOOD CLEANING LLC 04/09/19 FI -00171 18H205 3/1/19 INSPECTION 401.343.403.00.00 436.44 000359 CURTIS B REEP 10/31/19 PM -00123 WO 21940131 TPD19-4929 401.343.403.00.00 754.93 000311 THALIA NUREKES-LARA 05/22/19 PW -00116 DAMAGED HYDRANT 4300 S 133RD 401.343.403.00.00 350.66 $ 1,542.03 Total Write-offs: $ 5,492.03 58 City of Tukwila City Council Finance & Governance Committee Meeting Minutes September27, 2021- 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Zak Idan, Chair; Kathy Hougardy, Cynthia Delostrinos Johnson Staff Present: Rachel Bianchi, Tony Cullerton, Vicky Carlsen, Laurel Humphrey Guest: Devon Schrum, SCORE Chair Idan called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Ordinance: Municipal Court Judge Salary Aot Staff is seeking Council approval of an ordinance that will maintain the Municipal Court Judge salary at 90% of the District Court Judges Salary as set by the Washington Citizen's Commission on Salaries for Elected Officials adopted on an annual basis. The Mayor will present the reappointment of Judge Walden at the October 4, 2021 Regular Meeting. Committee Recommendation Unanimous approval. Forward to October 4, 2021 Regular Meeting. B. SCORE Update Director Schrum discussed the COVID-related budgetary challenges of SCORE, which is seeking ARPA funding assistance from owner cities as it is not itself directly eligible. Committee Recommendation Discussion only. ‘1" C. Resolution: Cancelling Unclaimed Property Staff is seeking Council approval of the annual resolution declaring the cancellation of abandoned or unclaimed property that is owed to business owners or individuals. The 2021 unclaimed property report totals $5,713.77. Committee Recommendation Unanimous approval. Forward to October 4, 2021 Regular Consent Agenda. D. Resolution: Cancelling Accounts Receivable Staff is seeking Council approval of the annual resolution that cancels uncollected accounts receivable. For 2021, the total is $5,492.03 including false alarms and miscellaneous billings. Committee Recommendation Unanimous approval. Forward to October 4, 2021 Regular Consent Agenda. 59