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Home My WebLink AboutReg 2023-09-18 Item 6G - Resolution - Cancellation of Past Due Accounts ReceivablesCOUNCIL A GENDA SYNOPSIS ,t•)* ' �, 4 Initials ITEM No. Z Meeting Date Prepared by Mayor's review Council review sc' (%/' 23 9/ 18/ SW �� 6.G. 1908 ITEM INFORMATION STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 9/18/23 AGENDA ITEM TITLE Resolution Ordering the Cancellation of Past Due Accounts Receivable CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date iI Resolution Mtg Date 9/18/23 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD 11 Finance ❑ Fire ❑ PeER ❑ Police ❑ PW 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 ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ LTAC ❑ Arts Comm. DATE: 9/11/23 COMMITTEE ❑ Finance & Governance ❑ Planning & Community Dev. Parks Comm. ❑ Planning Comm. CHAIR: KRULLER RECOMMENDATIONS: SPONsoR/ADMIN. Finance Department COMMITTEE 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 9/18/23 MTG. DATE ATTACHMENTS 9/18/23 Informational Memorandum dated 9/11/2023 Resolution Attachment A - 2023 AR Write -Offs Attachment B - Historical Write -Offs Minutes from the FIN Committee meeting of 9/11/23 (distributed separately) 87 88 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director BY: Cindy Wilkins, Fiscal Specialist CC: Mayor Ekberg DATE: September 11, 2023 SUBJECT: Cancellation of Accounts Receivable ISSUE Each year a resolution comes before the Council for the cancellation of uncollectable accounts receivable. For 2023, these items include: • Fire Department invoices • Police False Alarms • Public Works invoices • Parks & Recreation invoice GRAND TOTAL: $6,723.17 35,450.00 26,995.72 1,666.66 $70,835.55 BACKGROUND The process for tracking accounts receivable is quite thorough. The steps below are followed prior to preparation of the attached write-off resolution. • The Finance Department sends an invoice to a customer, 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. • Next, 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 in pre -collect status have passed, the receivable then rolls over to active collections. At the onset of active collections, a letter is sent to the debtor notifying them of the change in status from pre -collect to active collections and advising that payments must now be made through the collection agency. • When in active collections status, the 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. • 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 2023 Cancellation of Accounts Receivable is $70,835.55. This is an annual housekeeping item. 89 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The financial impact of cancelling $70,835.55 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 on for collection purposes except for 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 September 18, 2023. ATTACHMENTS Proposed Draft Resolution Attachment A — 2023 AR Write -Offs Attachment B — Historical Write -Offs 90 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 $70,835.55 (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 , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC Cynthia Delostrinos Johnson City Clerk 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: 2023 AR Write -Offs CC:\Legislative Development\Cancellation of outstanding Accts Receivables 8-25-23 Sherry Wright Review by Andy Youn Page 1 of 1 91 92 Attachment A - 2023 Write -Offs * Outstanding invoices from Eden were re -keyed into Finance Enterprise creating new invoice numbers. Customer ID Customer Name Eden Inv Date Eden Inv # Invoice Date Invoice (Description GL Account Total C00569 PACIFIC NW IRONWORKERS APPRETICESHIP #81 12/18/21 FF21-0186 01/07/2022 FD000018 12/18/2021 FIRE FALSE ALARM C00470 PIERCE CO EMERGENCY MGMT 12/31/20 FI -00255 01/01/2022 FD000025 9/2020 OR WILDFIRE DEPLOYMENT C00270 C00273 C00274 C00312 C00315 C00315 C00315 C00316 C00317 C00321 C00325 C00326 C00327 C00330 C00344 C00347 C00347 C00392 PC002849 C00400 C00401 C00402 C00403 C00403 C00403 C00405 C00406 C00407 C00414 C00415 C00415 C00415 C00428 C00424 C00432 C00432 CD CA) AAIC FIARWAY LLC ABAS MOHAMMED ACCESS TRIPS INC ALSIDE SUPPLY CENTER ASHLEY FURNITURE PARTNERS LLC ASHLEY FURNITURE PARTNERS LLC ASHLEY FURNITURE PARTNERS LLC AZ TRADING INC BANK OF AMERICA NA BLEAKLEY SWANTE R BURLINGTON COAT FACORY OF WA CANYON ESTATE CONDOMINIUMS CASH AMERICA WEST INC CHOP IT UP BARBERSHOP CONTINENTAL WESTERN GROUP CORE GROUP WESTERN FOOD SVC CORE GROUP WESTERN FOOD SVC DOLLAR TRES STORES INC DOLLAR TREE EVERGREEN HOBBIES INC FAIRWAY CENTER FANZZ GEAR INC FARGO ELECTRIC INC FARGO ELECTRIC INC FARGO ELECTRIC INC FORWARDER SERVICES FOSTER CREEK APARTMENTS LLC FRANKS, LINDA R HOMESTREET BANK HORYAAL RESTAURANT LLC HORYAAL RESTAURANT LLC HORYAAL RESTAURANT LLC INTL GATEWAY EAST LLC HOWARD S WRIGHT KEY BANK NATIONAL ASSN KEY BANK NATIONAL ASSN 11/17/21 04/28/21 12/29/21 11/18/21 04/02/21 11/17/21 12/29/21 09/23/21 12/29/21 09/27/21 12/29/21 11/17/21 11/18/21 06/17/21 06/15/21 09/23/21 11/18/21 08/27/21 11/17/21 09/09/21 06/15/21 04/02/21 09/09/21 09/22/21 11/17/21 12/29/21 12/28/21 09/23/21 08/26/21 06/15/21 08/27/21 09/09/21 12/29/21 12/29/21 11/17/21 12/29/21 PD -00690 PD -00479 PD -00790 PD -00741 PD -00463 PD -00707 PD -00768 PD -00624 PD -00777 PD -00638 PD -00767 PD -00700 PD -00728 PD -00516 PD -00504 PD -00631 PD -00738 PD -00551 PD -00726 PD -00573 PD -00506 PD -00464 PD -00571 PD -00599 PD -00676 PD -00785 PD -00761 PD -00620 PD -00537 PD -00507 PD -00540 PD -00574 PD -00778 PD -00787 PD -00724 PD -00772 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 PD000002 PD000005 PD000006 PD000008 PD000011 PD000012 PD000013 PD000015 PD000017 PD000021 PD000026 PD000027 PD000028 PD000029 PD000035 PD000036 PD000037 PD000041 PD000042 PD000047 PD000048 PD000049 PD000050 PD000051 PD000052 PD000053 PD000054 PD000055 PD000066 PD000067 PD000068 PD000069 PD000070 PD000073 PD000077 PD000078 1 of 3 POLICE FALSE ALARM #6-8 POLICE FALSE ALARM #7-16 POLICE FALSE ALARM #2-3 POLICE FALSE ALARM #2 POLICE FALSE ALARM #9-16 POLICE FALSE ALARM #18-19 POLICE FALSE ALARM #20-21 POLICE FALSE ALARM #2-3 POLICE FALSE ALARM #4 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 POLICE FALSE ALARM #4 POLICE FALSE ALARM 37-9 POICE FALSE ALARM #2 POLICE FALSE ALARM #2-3 POLICE FALSE ALARM #2 POLICE FALSE ALARM 3-5 POLICE FALSE ALARM #2 POLICE FALSE ALARM #3-4 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2-3 POLICE FALSE ALARM #3 POLICE FALSE ALARM #2 POLICE FALSE ALARM #4 POLICE FALSE ALARM #5 POLICE FALSE ALARM #3 POLICE FALSE ALARM #3 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 POLICE FALSE ALARM #3 POLICE FALSE ALARM #4 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 FD011100-342800 250.00 FD011100-342210 6,473.17 6,723.17 PD010100-342800 750.00 PD010100-342800 2,500.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 2,000.00 PD010100-342800 500.00 PD010100-342800 500.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 750.00 PD010100-342800 250.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 750.00 PD010100-342800 250.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 CO Attachment A - 2023 Write -Offs *Outstanding invoices from Eden were re -keyed into Finance Enterprise creating new invoice numbers. Customer ID Customer Name Eden Inv Date Eden Inv # C00444 LAKLARA INC C00447 LEO STELLA LLC C00451 MACY'S FURNITURE GALLERY C00455 MANSHA ALLAH LLC C00455 MANSHA ALLAH LLC C00461 MATEVOSOV C00474 MUTUAL MATERIALS COMPANY C00474 MUTUAL MATERIALS COMPANY C00482 NEW CINGULAR WIRELESS PCS LLC C00482 NEW CINGULAR WIRELESS PCS LLC C00482 NEW CINGULAR WIRELESS PCS LLC C00482 NEW CINGULAR WIRELESS PCS LLC C00506 NW GARDEN SUPPLY LLC C00506 NW GARDEN SUPPLY LLC C00485 0 & E LIQUOR LLC C00485 0 & E LIQUOR LLC C00485 0 & E LIQUOR LLC C00481 OLD NAVY LLC C00478 OPTION CARE ENTERPRISES INC C00476 PERFORMANCE PRO SUPPLY SEATTLE C00473 PETSMART INC #377 C00473 PETSMART INC #377 C00468 PRO GOLF DISCOUNT INC C00459 ROYAL BISTRO INC C00457 RUDY CUBE LLC C00454 RYDER TRUCK RENTAL INC C00436 SEATTLE'S BEST FLOORS LP C00446 SANFT, LOUIE C00256 SEATTLE CHAR LLC C00423 SINGH, TARAN DG FOODS C00423 SINGH, TARAN DG FOODS C00423 SINGH, TARAN DG FOODS C00421 SOMGRO INC C00420 SOPHIYA MINI MARKET LLC C00417 SP PLUS CORPORATION C00412 SRG SOUTHCENTER LLC C00404 SRS DISTRIBUTION INC C00395 TUKWILA SCHOOL DISTRICT-SHOWALTER C00383 UPS SUPPLY CHAIN SOLUTIONS 11/17/21 11/17/21 11/17/21 04/02/21 06/15/21 09/22/21 12/29/21 12/29/21 04/28/21 06/15/21 09/27/21 11/17/21 09/22/21 09/27/21 04/02/21 04/28/21 11/17/21 11/17/21 09/09/21 11/17/21 08/27/21 09/09/21 08/27/21 11/17/21 12/29/21 09/23/21 11/17/21 12/31/19 11/17/21 09/23/21 09/27/21 11/17/21 12/28/21 11/17/21 09/27/21 12/29/21 11/18/21 12/29/21 11/17/21 PD -00708 PD -00684 PD -00711 PD -00461 PD -00505 PD -00602 PD -00795 PD -00796 PD -00484 PD -00510 PD -00647 PD -00702 PD -00606 PD -00641 PD -00460 PD -00477 PD -00678 PD -00706 PD -00582 PD -00685 PD -00546 PD -00583 PD -00545 PD -00697 PD -00766 PD -00614 PD -00692 PF -04000 PF -04120 PD -00622 PD -00656 PD -00720 PD -00756 PD -00693 PD -00636 PD -00770 PD -00735 PD -00789 PD -00677 Invoice Date Invoice (Description 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 PD000087 PD000089 PD000092 PD000096 PD000097 PD000101 PD000105 PD000106 PD000108 PD000109 PD000110 PD000111 PD000115 PD000116 PD000118 PD000119 PD000120 PD000123 PD000124 PD000125 PD000128 PD000129 PD000130 PD000134 PD000135 PD000146 PD000147 PD000148 PD000152 PD000160 PD000161 PD000162 PD000163 PD000164 PD000168 PD000171 PD000172 PD000176 PD000180 2 of 3 GL Account Total POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE INV ADJ POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #2-6 FALSE ALARM #17-18 FALSE ALARM 2-3 FALSE ALARM 2-3 FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #3-4 FALSE ALARM #5 FALSE ALARM #6 FALSE ALARM #2 FALSE ALARM #3 FALSE ALARM #2-3 FALSE ALARM #4 FALSE ALARM #5 FALSE ALARM #2 FALSE ALARM #4-9 FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #3 FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #2 FALSE ALARM #2 - BAL DUE ONLY FALSE ALARM #3-4 FALSE ALARM #2-6 FALSE ALARM #7-10 FALSE ALARM #11 FALSE ALARM #3-6 FALSE ALARM #2 FALSE ALARM #3 FALSE ALARM #4 FALSE ALARM #5 FALSE ALARM #4 FALSE ALARM 2-3 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 1,250.00 PD010100-342800 500.00 PD010100-342800 500.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 500.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 350.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 1,250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 600.00 PD010100-342800 500.00 PD010100-342800 1,250.00 PD010100-342800 1,000.00 PD010100-342800 250.00 PD010100-342800 1,000.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 250.00 PD010100-342800 500.00 Attachment A - 2023 Write -Offs *Outstanding invoices from Eden were re -keyed into Finance Enterprise creating new invoice numbers. Customer ID Customer Name Eden Inv Date Eden Inv # C00381 US HEALTHWORKS MED GRP OF WA P C00381 US HEALTHWORKS MED GRP OF WA P C00378 VERA WHOLE HEALTH INC C00374 VIDEO ONLY C00361 WELLS FARGO BANK NATL ASSOCIATION C00352 XAYAMOUNGCHANH, HENRY C00322 BNSF RAILWAY COMPANY C00441 KING LASIK INC PS C00384 TUKWILA VILLAGE PHASE 2 OPPORT C00379 VALHALLA BREWING & BEVERAGE CO C00439 SEATTLE KING CO PUBLIC HEALTH CD 01 11/17/21 12/29/21 09/28/21 06/15/21 12/29/21 11/18/21 07/02/19 11/02/21 07/20/21 08/05/21 PD -00716 PD -00771 PD -00663 PD -00514 PD -00780 PD -00744 GR -00238 PM -00164 PM -00153 PM -00158 Invoice Date Invoice (Description 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/03/2022 01/01/2022 01/01/2022 01/01/2022 PD000182 PD000183 PD000185 PD000188 PD000192 PD000194 PW000004 PW000022 PW000027 PW000028 GL Account Total POLICE FALSE ALARM #3 POLICE FALSE ALARM #4 POLICE FALSE ALARM #19-23 POLICE FALSE ALARM #2-3 POLICE FALSE ALARM #2 POLICE FALSE ALARM #2 PDO10100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 BNSF INTERMODAL FAC ACCESS PRO PW104100-367120 WSDOT REIMB SW CHGS FOR TAX PARCELS Q3 2021 UB DISCHARGE 01/01/2022 RC000006 BSK-KPL DEC 2021 3 of 3 PW401800-343405 PW412380-343100 PW402800-343505 PR007100-333933 250.00 250.00 1,250.00 500.00 250.00 250.00 35,450.00 6,532.60 5,384.16 11,626.08 3,452.88 26,995.72 1,666.66 1,666.66 Total AR Write -Offs: $ 70,835.55 Attachment B - Historical Write -Offs Resolution 1805 2013 $ 30,702.97 Resolution 1843 2014 $ 36,240.62 Resolution 1865 2015 $ 27,887.91 Resolution 1893 2016 $ 47,680.46 Resolution 1916 2017 $ 9,005.25 Resolution 1948 2018 $ 12,832.35 Resolution 1969 2019 $ 53,109.56 Resolution 2001 2020 $ 17,285.74 Resolution 2031 2021 $ 5,492.03 Resolution 2051 2022 $ 34,324.45 96